Arizona Real Estate Blog

Sterling Home Mortgage forwarded this interesting information that one of their lenders sent out. They have contacted several lenders and expect most or all to do the same in the coming months. If you have buyers or refinance clients on the fence, this may help them off of it, especially if they need the highest loan to value in order to get the home refinanced or purchase a new home using FHA loans. The lender name has been removed.

"In regards to FHA declining markets:  

Lender will cut 5% from the max LTV on purchases and refis in declining market areas.  

Lender will not underwrite an FHA loan with a credit report older than 30 days.  

Lender will not underwrite a file that has been previously been turned down from another lender in FHA Connection

Lender will not underwrite files without DU/DO or LP findings. If DO/DU findings are use from another lender broker must supply Lender with their ID and Password for the DO/DU that was used.  

Attached is Lender's declining markets list.  

If you have files with us that you need to cancel due to this policy please email your list of files and names.  

I am very sorry for the hardship that this policy change will cause you."

State County

AZ Crittenden                     

AZ Coconiono                   

AZ Maricopa                     

AZ Mohave                        

AZ Pima                            

AZ Pinal                              

AZ Yavapai                       

AZ Yuma                         

CO Adams                          

CO Arapahoe                   

CO Broomfiled                

CO Clear Creek                   

CO Denver

CO Douglas

CO Elbert

CO Gilpin

CO Jefferson

CO Park

MN Anoka

MN Benton

MN Carver

MN Chisago

MN Dakota

MN Hennepin

MN Isanti

MN Ramsey

MN Scott

MN Sherburne

MN Stearns

MN Washington

MN Wright

CO Weld

WA Pierce

As Always, if you have a client looking to purchase a home in the Glendale, Peoria, Surprise or any area of Phoenix, please visit my site. Re/Max Integrity Realtors

We are taking names to complete our survey and beging the lease/purchase opportunity in the Arizona area. This program will launch in Glendale and is already set to expand to the Gilbert, Mesa and/or Chandler area.

For the details and information about this rare opportunity, please see our lease/purchase page.

If this is something you are interested in, please complete the short survey on the lease/purchase page and fax it back to me. This will get your name on the list and be one of the first few to select your choice of properties available.

Don't wait too long before you contact me. If you are in trouble with your home mortgage payments and facing possibe foreclosure, there are several ways I can help you. I work with pre-foreclosures in Arizona and can help save your credit rating from negative foreclosure. If you wait too long, it may be too late to help you.

Many homeowners don't realize a foreclosure is the worst thing you can do with your home. You will have a "radioactice credit history" with a foreclosure that will haunt you for 7-8 years.

A bankruptcy will not stop a foreclosure and will not prevent it from being placed on your credit. Don't just give up and let the house go back to the bank without trying to sell it. If you show the bank you are trying to sell it, they are more understanding. The bank knows if the foreclose on your home, they will lose money. If they don't sell you home at the auction, they will own the property. This is known as and REO property or bank owned property. Banks are not in the business to own properties.

I can work with your mortgage lender and arrange for a short sale if you owe more than the property is worth.

Together, we can list your property for sale and try to get as much as we can for the lender. We can do the same marketing as we would on any property listed. We can hold open houses, send out flyers, place the listing in the MLS, list it on my real estate website as well as Realtor.com and Remax.com. I will let every agent in my office know about it and possibly even get it on a home tour.

Together, you, I and the power of RE/MAX, can help save your credit rating from a foreclosure.

For more information, email Mike or make a phone call. All I ask is to be upfront and honest with me. I do not judge people going through a tough time and honesty will be the best policy when dealing with the banks. They will find out anyways so let's be honest and make something positive happen.

I am a Realtor with RE/MAX Integrity Realtors in Glendale Arizona and a Mortgage Planner with Sterling Home Mortgage in Phoenix Arizona. I have a good knowledge of both real estate and mortgage in AZ.

I just sifted through many different lenders rate sheets and guideline changes taking effect. Many lenders are taking a proactive stance on the recent buzz about mortgage brokers disclosing the yield spread premiums paid to the broker by the lender. This is not law in AZ yet but I would look for it to be passed soon in order to make the mortgage loan process more transparent. Even though it is not law yet, you will see or hear about lenders requiring the actual dollar amount of the (YSP) be disclosed in a new and separate disclosure. This required disclosure is already mandatory with some of the top lenders and others will follow suit.

Many mortgage brokers are haunted by this as it is common for a broker to charge a point origination on the front of a loan as well as get paid 1-4 points on the back. Even though this is paid by the lender, it still costs the borrower more money. When the rate is sold to the borrower at a higher than wholesale cost, the broker makes more money. This is the way it is and the way it has been. I think it is this way with insurance and financial planners as well as other fields I suppose.

This will only hurt the unscrupulous mortgage broker trying to make a nice salary on one unsuspecting, unknowledgable borrower who puts trust in you to help them out. I personally have never hidden my yield spread premium and have always informed my clients what I make on the rate as well as what I charge up front. I even give them 3 or 4 choices to see how placing the money differently can make significant differences in the long run. This allows the customer choices to select the best fit for them both now and in the long run.

One more thing I should point out. I am unaware if this change will make the banks disclose the premiums as well. When I was at a previous company that was a broker and a lender in one, when I submitted a loan to the lender side of my company, yield spread was never disclosed on the application nor on the final HUD1. I do not understand why the lenders can hide what they make and the broker can't. It should be clear for the client no matter who or where they go. After all this can only help bring the costs down by borrowers being able to actually see who has the better rates and who is trying to sell a padded rate.

It is all good from the stand point of a mortgage planner and can only benefit those who are honest and truly care about the clients best interest. This will help the client as well.

If you need to compare interest rates or want to check the estimate you just received, please call Sterling Home Mortgage