Rob Robertson's Discussions

PRESS RELEASE FROM FANNIE MAE, DATED 04 MARCH 2009Here is a working link, for the press release from Fannie Mae.Yes, Lenders and Mortgage Brokers will be able to participate, starting in April.Makes sense - how could Fannie and Freddie work on 5,000,000+ loan applications?

In retrospect, I should have left my opinion out, from the start.I think about the 1000s of calls and emails I fielded, back in 2007 and 2008, when homeowners were scrambling for options, as credit markets were drying up.  Lending options were so few.  I ended up donating almost 1000 hours of my time during that period, providing foreclosure counseling as it was about the only thing I could do for my clients, friends and even family members, without any compensation whatsoever, as there were virtually no lending options, and I was so entrenched in my local area.I remember the frustrations of not being able to help out honest, hard working homeowners, because their home values were dropping so fast and they were looking for answers.  The banks were shutting down wholesale credit lines as homeowners were scrambling, as their equity was vanishing right before their very eyes.I could go on... but it's depressing, Jimmy.We survived through this, and my family is safe, at the moment.  But surviving didn't come without having to make some touch choices and incredible sacrifices.  Americans are having to make some tough choices right now, and I know because I've had to make them too.So anything I can do to help... that is why I am still in the mortgage industry.  Not to get rich, but to get on with life, hopefully recover a bit, and use my knowledge, skills, and abilities to help as many families as I can, before it's too late.

Thanks Jimmy.I also would hate for this to become the "New Normal" - get behind in your payments?  No problem, just call HUD and tell them you need a second chance.Only way I see private equity coming back into the game (to raise confidence) any time soon would be for those privately-funded mortgage loans to become full recourse loans again.  Talk about personal responsibility.But that probably won't happen. Just imagine this:  If you were an investor, loaning out your money at an adjusted-for-inflation rate of maybe one or two percent, and then got a call from HUD, a Lender, or some other Government Agency asking you to accept maybe 30 or 40 cents on the dollar, with no recourse, in lieu of full payoff, you would be ticked-off and would probably say no as well.But as a taxpayer, being on the hook, in the future, we can't say no.  We can't say anything, because it will be a handful of individuals who will be making all the decisions, on our behalf, and politics will be involved.Private/Public Housing... or is it Public/Private Housing - who would have thought?I'm so tired of hearing the words "Federal" and "Trillions" spoken in the same sentence!

Former associate of mine somehow got a stated-income loan last September.  He was ok with higher rate (6.875% fixed 30yr) at the time, as he bought a house with 30% down that peaked at $1.2M less than 18 months prior... only $417K financed with 780 fico, strong assets, and two businesses he owned, but he couldn't make it work full doc.I wouldn't do the loan for him.  You have to draw the line somewhere.

Appreciate it if we could close/turn off this particular discussion, as it seems to have drifted off-topic.  (Good neighbor policy).I am in receipt of Fannie Mae and Freddie Mac Seller's guidance regarding the Home Affordable Refinance (HAR) program.The real details are in the Fannie Mae and Freddie Mac guidance, which I received copies of late this afternoon; whereas the Federal Government guidance is more generalized and vague, but covers the important features of each program and was released early this morning.I'm sure that there are currently several more discussions about this very same topic.Thank you for your comments and interest.Warmest regards to everyone,Rob Robertson.

Hi.I completely feel for you situation.I would strongly recommend speaking with your bankruptcy attorney, the one that handled your initial bankruptcy filing.  Any advice given on zillow is going to be, in my opinion, a "best guess."Bankruptcy law is currently undergoing certain revisions, in particluar to your situation, regarding "Mortgage Cram-Down" legislation.  I can't go into specifics, but one of the benefits to the homeowner is that a bankruptcy judge may have the power to modify the terms of an existing mortgage, based on your verifiable income, to make the terms more affordable, so long as all of the steps are followed.As you are currently in a repayment plan, you would want to speak with your bankruptcy attorney.This probably was not the direct answer you were hoping for, but I feel it is the most prudent advice I can pass on to you, given the information you have provided.Best of luck to you and your family.  Sounds like you are certainly doing everything you can to try to make it work.  Hang in there!

I don't see 4% in our future, either, not for fixed rates.You are seeing dips in the bond/treasuries, but trends are up, since December 2008.Sure, other economies are much worse off than ours... so sovereign funds are still buying Treasuries, as a hedge against their own local inflation.But once the Stock Market starts to rebound... you better already have your loan application submitted, appraisal done, and your rate locked! 4.5% - 5% will be in the rear-view mirror, as bond/treasury prices drop (yields rise) to attract continued investment in treasuries.  Mortgage interest rates will have to go up, as a result.Then the topic will be changing to higher rates and higher inflation...If you are thinking about refinancing, stop thinking about it and get it done, before it's too late, for those of you who are lucky enough to have a stable job, equity, and a high enough credit score!Good luck to you all!

Newsflash:  They won't do your refinance for free.Even if you refinance through your servicer, you will incur the costs of the refinance.  The costs can, in most circumstances, be rolled into the new loan.That's one of the reasons why Fannie Mae and Freddie Mac opened up the refinancing options to Lenders and Mortgage Brokers.  It will give the homeowner a chance to "get the best deal" for their new loan, by allowing spirited competition, which will help the economy, and the mortgage industry, by putting people back to work.That means that you will be charged for services rendered, one way or the other.Countrywide used to refinance existing customers, and charged a "standard 2.5% origination fee" as part of the service.  It's all in the fine print.I'm sure it will be something like that... maybe not 2.5% but something comparable, plus closing costs.Good luck.

Frank,The 105% Loan-To-Value limit (or to put it another way, 105% of appraised value) applies to the 1st mortgage only, for the refinance program.  So you are correct in your assumptions and what you have read. Your second mortgage, even though it was purchase-money, cannot be included in the new 1st mortgage.  Is it expressly forbidden, at this time. The servicer of the second mortgage is going to have to agree (subordinate) to allow the new 1st mortgage to get priority, should you qualify for the refinance program (remember, Fannie Mae or Freddie Mac 1st mortgages only for the refinance program).Regarding your value, Countrywide probably used one of several different Automated Valuation Models available currently, which would use comparable sales in your zip code to get a value estimate for your property.  It's basically an electronic guess of your current value.I would go ahead and wait the two weeks, and then try calling back Countrywide.  You probably won't get the same person on the phone again, and hopefully that institution will have the information properly disseminated to their staff by that time.Best of luck to you Frank.

It's all about Risk vs. Reward...Someone is guessing.  And ultimately, you end up paying for it.If you can lock a good rate today, lock it in.  Be happy that you got a good rate.  You'll be able to think about other, perhaps more important things, than worrying about what rates may or may not be doing over the next two or three weeks.If rates go up, and you float, over the next couple of weeks, you will still be able to get that good rate, it will just cost you a little more to get it.If you lock and rates go down a little, then that same rate will be a little cheaper.Bottom line:  It's a personal choice.  If you think you will lose sleep at night by floating, lock your rate.  Your lender does not have a crystal ball.Good luck!