Fannie updates Student Loans
Fannie Mae updated it’s student loan requirements, for people who currently have student loans that are NOT in full repayment.
Previously, if the student loan showed a ZERO monthly payment on the credit, or a non-fully amortized payment, say a income based payment, lenders would have to use 1% of the loan amount. Thus if a person has $60,000 in student loans, we would hit them for $600 per month payment.
Well Fannie back tracked a little, now if there IS a minimal payment on the credit report, we can utilize that payment.
If the payment is zero, then we still have to use the 1%, BUT, Fannie Mae will allow us to use a fully amortized payment, thus if the Lender has proof of how much a fully amortize payment is, we can utilize this payment.
Moral of this story, lenders can’t figure out just how to calculate Student Loan payments, and it seems to change every 6 months or so, which is frustrating for us lenders!
Mortgage Rates in Idaho
Well that has been something of nothing, rates have been in a pretty good trading pattern for the last 4 weeks, and although we had 5 days where they dropped a little, for the most part we have been hovering around the 3.75% range for Govies, and the 4.125% range for conventional loans.
We will probably start seeing some volatility and rates going up, as we get closer and close to the June Federal Reserve meeting, where it is anticipated on them raising rate a minimum of .25. I think most traders are going to hedge their bets for a larger increase, say the .375 to .50 range. And then if the Fed does only raise the .25, we will see rates improve right after the meeting.
Other items affecting our rates right now is N. Korea. If more saber rattling takes place, we will see people flee stocks and hedge in bond and gold. And if any military action takes place, we will see rates drop again, potential to all time lows.
Other items to watch out for is Greece, and their debt with the EU. Oil, as it goes up, so will interest rates. We are still locking them in as soon as you can. But, if a person wants to gamble, might bet some small benefits.
Zillow & Leads
Well according to the Chrisman Report today, CFPB is in full investigation for ZILLOW and RESPA violation. Looks like CFPB made initial CID (Civil Investigation Demand) in 2015, a NORA (Notice and Opportunity to Respond and Advise) in 2/2017 and another CID on 4/2017.
I find it interesting that Zillow continues to do the leads the way they are, with the CFPB is investigating. So that will lead me to assume that either Zillow believes the lead generation is still legal, or the CFPB is investigating some other RESPA violation, or the CFPB is investigating multiple RESPA violation.
All I have to say, is if the CFPB does find Zillow’s Lead Generation is a violation of RESPA, there are going to be lot of happy attorneys in the area, because lots of Realtors and Loan Officers are going to need consultations.
Don’t Forget:
-We have long locks, can lock a loan up to 270 days.
-We have Construction to Perm loans, so if your builder doesn’t have draw line, we can still do the loan.
-Manufactured Home Loans, yep we got them!
-FHA/VA/RD down to a 550 FICO score.
-$14,000 Down Payment Assistance Programs!