ADUs and IRA home loans are hot topics – Press Telegram

Nothing beats writing a mortgage column in a big city newspaper. Can you believe it’s been 10 years?

In addition to my weekly anxieties about whether my editors (and you) will like what I offer, I get a lot of feedback from readers about my column. Usually, “Thank you. I didn’t know anything about this.” Or it “You have your head in your -ss. I don’t know what you’re talking about.” I am grateful that there are more comments than the latter. But I get both.

Below are 10 of the biggest points since we started this column in August 2011.

1) Fannie Mae has developed an automatic evaluation underwriting system called a collateral underwriter. Launched in 2015, I think it’s an extraordinary invention.

Automation The system (along with Freddie Mac’s loan mortgage advisor) speeds up valuation decisions and saves borrowers about $ 600 in valuation fees when a real estate inspection exemption is issued. It is also an excellent asset value and quality checker for human appraisals.

My 2 cents: Why can’t Fannie Mae and Freddie May come up with an automated process to abandon the borrower’s income document? Data giants can easily and accurately peg most people’s salaries. Government agencies can combine proximity income with equity / down payment indicators. As a result, income is less accurate for equity-rich borrowers. To love peace, this can speed up the loan approval process. No one leaves the property with a 30% down payment.

2) Oh, the moment for me was learning what IRA funds could do. Yes, you can buy rent with IRA funds for a down payment. There are lenders who are willing to take out a mortgage on your IRA rather than directly. Many readers told me they implemented this funding mechanism because they didn’t have enough cash outside their retirement account.

3) People in the mortgage industry, government officials, and even consumers can lie to me. A senior manager of a major mortgage lender wanted to promote his company on a particular loan program. He explained that his company managed to cut off the exclusive contract between Fannie Mae and Freddie May. Neither fans nor Fred confirmed the deal. The story was never carried out.

My newspaper boss has always told me, “If your mom says she loves you, check it out.”

4) Grandma’s Apartment or Attached Dwelling Unit Act in 2020 was probably the most reputable series of columns I wrote. (Column published in December 2019). Simply put, California law has cut a bunch of bureaucratic work from the process by which people add living space to their property. Compensating for housing shortages is one of the very good answers.

The law also provides real estate owners with a way to make it easier for their families to evacuate, or to provide rent as a subsidy. To date, I’ve been called by people who want to know more about the ADU building process.

5) I love hints. Thanks to the people who told me the story, I wrote many columns. The best I’ve ever received was from an industry associate about one lender who has monopolized co-operative mortgage lending at Laguna Woods Village for nearly a decade. Despite all the turmoil from Laguna Woods co-operative owners, Laguna Woods still has only one co-operative lender today.

6) In 2011, the day after the Great Depression, mortgage brokers had less than 5% of the market share of mortgages and refinancing loans. (Complete Disclosure: I’m a Mortgage Broker.) The broker was primarily blamed for the mortgage crisis. Can you call it a “scarlet letter”?

According to a consumer survey jointly released by the Consumer Financial Protection Bureau and the Federal Housing Finance Agency last week, 46% of consumers applied for a home purchase through a mortgage broker in 2019. 38% applied to the broker at the time of refinancing. Talk about coming back from death!

7) Nothing makes a column better than an expert in the field. My Rolodex has several names. (Yes, Old School has two people sitting on the desk).

Former FHA Commissioner and former Chairman of the Mortgage Brokers Association, Dave Stevens is a bionic brain of subject matter experts. He understands the problem and knows the policy like anyone else. He is clear and thoughtful.

Real estate attorney Mike Hensley, along with CPA Jeff Hypshman, Warren Hennagin and Marcelo Sloca, was a great resource in educating me and you. And generous. Every week, readers call me or email me some nasty column-related questions. Countless questions were answered free of charge by these respectable people.

No one thinks much about property title issues until they run into problems. Glenn Towerkamp, ​​Vice President of Lawyers Title Insurance, has been cited in these columns for years. And he was a walking encyclopedia of information for readers — always digging into solving their complex title problems. I’m sad to say that Towerkamp died suddenly last weekend.

8) It can be difficult to be on the side of a media company. The bravest, toughest, and most professional press I’ve ever dealt with is Tom Goida, Senior Vice President of Media at Wells Fargo Bank. Perhaps more than any other banker, I’ve asked Tom many difficult questions over the years about Wells Fargo’s various practices and customer concerns. He is a professional

Goida has always investigated and responded to discomfort as quickly as I asked Wells officials about hot topics. He is always calm like a cucumber.

9) Many considerations are needed when forecasting home prices and interest rates. It can be even more difficult to express everything in plain English. Sources of my favorite experts are Dr. Raymond Sfire of Chapman University, Jordan Levine, Chief Economist of the California Real Estate Agents Association, and Tendai Capfize, Chief Economist of Lending Tree.

Apart from this, in the same area, data companies Attom Data Solutions, Black Knight, and Steven Thomas of Reports on Housing also offer amazing insights into the housing and mortgage markets.

10) Mortgage conventions and conferences offer lots of action and lots of column feed. Surprisingly, Angelo Mojiro, the former CEO of the failed Country Wide Financial (think mortgage meltdown day), was invited to speak at a mortgage conference a few years ago. He received a standing ovation from most of the crowd. Boy, it was a fun column to write.

Freddie Mac Rate News

The 30-year fixed rate averaged 2.77%, 3 basis points lower than last week. The 15-year fixed rate averaged 2.1%, unchanged from last week’s all-time low.

The Mortgage Bankers Association reported that mortgage application volumes fell 1.7% from the previous week.

Conclusion: Assuming the borrower gets an average 30-year fixed rate on a fitted $ 548,250 loan, last year’s payments were $ 32 more than this week’s $ 2,244.

What I see: Locally, qualified borrowers can get the next fixed rate mortgage at a cost of 1 point: 30 years FHA 2.125%, 15 years conventional 1.875%, 30 years conventional 2.375 %, 15-year traditional high balance ($ 548,251 to $ 822,375) is 1.875%, 30-year traditional high balance is 2.625%, 30-year fixed jumbo is 2.75%.

This Week’s Eye-catching Loans: 2.375% 15-year fixed mortgage with no closure costs.

Jeff Lazerson is a mortgage broker. He can be contacted at 949-334-2424 or jlazerson@mortgagegrader.com.His website www.mortgagegrader.com..

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