Zillow Advice: Lenders - ZILLOW, on FHA Quotes, YOU are part of the problem

Nics numbers are correct. ...

Tue, 23 Jun 2009 18:54:00 GMT

Nics numbers are correct. I dont know of a soul who qualified and actually closed an FHA Secure loan, if they did more power to them.

David, Mortgage 1A is a lead generation site that will say anything to get a name and phone # to sell.

Not real sure what that site ...

Tue, 23 Jun 2009 18:13:00 GMT

Not real sure what that site is referencing but would suggest getting information on FHAs from www.hud.gov instead of some company's site. Looks as if they may be refering to the FHA Secure program which doesn't apply here.

Purchase FHA loans 96.5%

Refinance FHA rate and term 97.75%

FHA streamline N/A (no appraisal)

FHA cash out 85%

Have been flagging the same offender for about a month now who quotes conventional on requests over 95%. Still doing it as of this morning.

It's actually appalling that ...

Tue, 23 Jun 2009 18:08:00 GMT

It's actually appalling that Zillow does not know the correct FHA guidelines. Please check here.

Nic - "FHA purchase ...

Tue, 23 Jun 2009 17:58:00 GMT

Nic -

"FHA purchase LTV is actually capped at 96.5%."

Do you have a reference for that? Everything I read says that even streamlined FHA is capped at up to 98,75% depending on the down payment.

You should absolutely flag conventional quotes in excess of 95% and repeat offenders who can't back up those quotes will lose access to ZMM.

Hi David,FHA purchase LTV ...

Tue, 23 Jun 2009 17:52:00 GMT

Hi David,

FHA purchase LTV is actually capped at 96.5%. 3.5% down is required, the 1.75% UFMIP is financed on top of the 96.5%. Don't know where you are getting 98.25%. The quotes in question are in excess of 95% conventional which are not deliverable they do this to make it look cheaper because the UFMIP is not on the conventioal loans.

Nic - Refi's are now ...

Tue, 23 Jun 2009 17:45:00 GMT

Nic -

Refi's are now capped at 105% LTV because of HARP but purchases have always been at 100%. The FHA limit for purchases is actually up to 98.75%.Impossible quotes are investigated and repeat offenders do lose access to ZMM.

Thanks Nate,Can you also ...

Tue, 23 Jun 2009 17:00:00 GMT

Thanks Nate,

Can you also please shed some light on why the site is allowing conventional purchase quotes over 95% loan to value? I see for some reason you are allowing refinance quotes over this level with the thought that maybe it would qualify for the HARP program but allowing the purchase quotes to stand makes no sense at all.

And secondly are there any ramifications for repeat offenders or are the quotes just deleted?

That explains that, good! Thanks ...

Tue, 23 Jun 2009 13:23:00 GMT

That explains that, good! Thanks for working on and fixing the APR issue, it was bothering many here.

Eric,Thanks for fixing your ...

Tue, 23 Jun 2009 04:48:00 GMT

Eric,
Thanks for fixing your quotes.

Clay,
We allow lenders to pass in MI rates through the API. However, they can only pass in MI rates that are equal to or higher than those estimated by Zillow. This means they can only increase their APRs, which makes them equal to or less competitive than the manual quotes. In the example you gave, Zillow estimated $119 and some lenders decided to pass in higher MI numbers.

Nate, this quote is from ...

Tue, 23 Jun 2009 04:35:00 GMT

Nate, this quote is from 6/22. There are 3 different mortgage insurance monthly payments between the quotes, from $119/mo, $185/mo, to $234/month. That can only mean the quoter is determining the MI factor which controls the payment and APR. In other words, if 2 quoters both have a rate of 5.5% and one has the $119 MI payment and the other has the $234 payment, the one with the $119 will always have the lowest payment and APR.

6/22/09

I agree the FHA quotes look much better and consistent.