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Answers (19)
sorry, you won't be affected to be able to do anything.
- dnkplus2
- Contributions:16
And to think I thought I was being smart at the time to just take out the second mortgage after remodeling my home - less fees and paid off sooner at 20 years..... My second mortgage did not borrow over the 80% combined LTV at the time. I don't see how they can discriminate because I have 2 mortgages rather than 1. It of course seems very UNFAIR to me! It would sure be nice if this administration would think things out a little better so those of us who did act responsibly can catch a break along with the others in the group.
- Larry Jacobson, "Clearpoint"
- Contributions:1214
As they say the Devil is in the details. We must wait and see and I've never been very good at waiting.
Rob, that was my impression as well, but Ryan seemed to think the answer to the OP's question was 'yes'. In fact, it is no. I'm wondering what the difference is between this 'new' guideline, and the 'old' one that allowed Andrew to do a loan at what, 124% CLTV? Subordinated second. Refinanced first. Am I blind or is there no real difference???
- Rob Cochems
- Contributions:3523
Jen,
Sadly this plan will not allow you to combine a 1st and 2nd...
Sadly this plan will not allow you to combine a 1st and 2nd...
Just to clarify here- refinancing of first mortgages will be possible as long as they are no more than 105% of current market value, second mortgages will have to resubordinate. Correct?
I think the OP wanted to consolidate the two loans.
I think the OP wanted to consolidate the two loans.
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
I think this is going to turn into a pretty nice year!
- Ryan Shaughnessy, "RyanShaughnessy"
- Contributions:229
It is an interesting loss mitigation initiative intended to stem foreclosures. There was a statistic bantered about last week that 62% of the most seriously delinquent loans are actually privately securitized loans. Anybody have any insights as to how the Obama plan intends to address these loans?
- Rob Cochems
- Contributions:3523
You know how many 80/20's and 80/15's will love this? All of them. Fingers crossed.
- Larry Jacobson, "Clearpoint"
- Contributions:1214
Thanks Rob, I had read that letter last week however it is my understanding that legislation will be required to make these changes to the charter which hasn't been done yet.
- Ryan Shaughnessy, "RyanShaughnessy"
- Contributions:229
Letter - Posted to FHFA
Lockhart Letter re Freddie&Fannie on Refinance Under the Just Released Program (02-20-09, 3 pages)
Lockhart Letter re Freddie&Fannie on Refinance Under the Just Released Program (02-20-09, 3 pages)
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
When is it effective? I have a realtor who was asking me about this this morning on her own property. She's at an 87% LTV.
- Rob Cochems
- Contributions:3523
- Ryan Shaughnessy, "RyanShaughnessy"
- Contributions:229
The new guideline has not been issued - but was included in a letter (from last Wednesday) sent by FHFB to PMI carrier. It was posted to BrokerDirt (ABA/UMKC) site within the past week. I will find the link and post it later tonight.
Ryan- do you have the text of the guideline? The OP is talking about combining a first and second, not just refinancing a single loan. Not sure if lenders will interpret the new guidelines in the way you just did, but I'm rooting for it. Any one hear a peep either way on this yet???
- Larry Jacobson, "Clearpoint"
- Contributions:1214
What? Where did you get that Ryan. As far as I know from what I have read there is no guideline that has been approved yet. No charter has been ammended to allow Fannie or Freddie to hold refinance properties at LTV's higher than 80% without insurance yet. They are still trying to work it out. Mortgage Insurance companies have been asking that those with MI continue to pay those primiums while they do not want to take on the risk of the new higher LTV mortgages. Let me know where you read that is has been finalized.
- Ryan Shaughnessy, "RyanShaughnessy"
- Contributions:229
Yes. The new Federal Housing Finance Board that regulates FannieMae, FreddieMac and 12 chartered banks has issued a new guideline indicating that PMI is required if required by the original loan and PMI is not required if not required by the original loan. However, this guideline only applies if the loan is owned by FannieMae, FreddieMac or a GSE.
- Carl Henker, "Carl Henker"
- Contributions:755
You may only modify the first, no cash out refinances to combine the first and second based on information available. More details on the plan will not be available until March.
Wanting to combine 1st and 2nd loans into one
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