Aloha Friday

Rates are basically flat from last week and holding very low. This is the great news that is positive in this email. On to the doom and gloom!!

As of today, we must begin to order appraisal’s through appraisal management companies. Thanks to Washington Mutual, our entire appraisal process will now be changed. We will now order appraisals with a management company who will then contact the appraiser directly (this is so no lenders have direct contact with the appraisers) and assign the job. The appraiser’s will rotate and are expected to be local appraisers. I tell you directly, this will be a new challenge for us all. I have already investigated the ways and items needed to rebut a low appraisal. Three new or additional comps will be needed and it is then submitted to the management company and they will assign a senior reviewer to address the issue.

Oh well. Times they are a changing.

On a cheery and good note, the Fannie/Freddie home relief program were rolled out this week as well as the Temporary 2009 high balance limits. I know that we have all been waiting for the high balance loans to be re introduced and we do have them ready to go. The loan to values are reduced from regular loans and the rates are about a .5% higher than the regular conforming loans, but, we are locking and moving forward on them now. Finally.

The Fannie/Freddie home relief program is a loan where you can refinanced your home up to 105% of the value of your home. If you did not have PMI when you purchased the home, you will not have PMI when you refinance. If you originally had PMI, then that will stay in effect. The loan must be a loan guaranteed by Fannie or Freddie and must return back to their portfolio. These loans are now officially in action.

Have a great weekend and let us know if we can help in any way.