Profile picture for rubix777

New housing act/bill passing on April 4th?

Loan officer is saying they can do the paperwork for the 30 year fixed, 4.875% with closing costs of $2600 now, but isn't going to get underwrited until April 4th because that bill that has yet to pass.

There is high possibility that my LTV is more than 80%. They require a nonrefundable $500 for preliminary processing of my application.

I don't see any reason for me to have them get started on the paperwork until I know for sure they can lock in a rate at that instant.

Why is the loan officer pressuring me to pay the $500 prior to the April? (other than locking me into a $500 contract)

Also, he said there is 95% chance that I'll qualify for a appraisal and inspection waiver, in which that appraisal fee will be credited back to me upon waiver approval.

I think I should wait for April 4th and then call them again, what do you think?

  • March 19 2009 - Santa Ana
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Answers (4)

Profile picture for Tirade
On a side note is there anyone else already submitting these in as streamline conventional refi's and then waiting until April/May to resubmit?
  • March 20 2009
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Profile picture for Tirade
While I agree I wouldnt lock for a charge of $500 if you can find a LO to do it for free then go for it.

As I understand it, we were locked in under a Fannie Mae streamline and will be resubmitted in DU after the 4/4 or 5/2 updates.

Here is a quote from the FAQ

DU Refi Plus
General
Q34.
Will the enhancements made in the Desktop Underwriter® (DU®) Version 7.1 April Update impact existing DU Version 7.1 loan casefiles resubmitted after the weekend of April 4?
Yes. All DU Version 7.1 loan casefiles resubmitted after the weekend of April 4, 2009 will benefit from the enhancements, and will be subject to the requirements, implemented with the DU Version 7.1 April Update release.
This is also true for DU Version 7.1 loan casefiles resubmitted after the weekend of May 2, 2009. Those loan casefiles will benefit from the enhancements implemented with the DU Version 7.1 May Update release.
  • March 19 2009
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Profile picture for Rob Cochems
Rubix,

Drop them, full guidelines don't exist yet for that product.  And you can't have your rate locked.  If you pay the $500, all that company can do is sit on your file and wait for the official update on April 4th.


  • March 19 2009
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Profile picture for Tirade
Do what I did and lock in today (especially if its a company who lets you float down)
That april 4th date is going to turn into a May 2nd date and I can almost promise you that rates are going to jack up on April 3rd and again on May 1st.

BTW the bill has already passed, but the Desktop Underwriter software that they use to underwrite the loan will not have the updated rules in it until April 4th and then another update to the software comes on May 2nd

We locked in today for 4.625% 30yr .5points, with 1 free float down in the next 60days if it changes by at least 3/8%

  • March 19 2009
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