#UWM 1 percent down payment program

[mfi-miami]

Zillow Home Loans Launches 1% Down Mortgages

Zillow Home Loans Launches 1% Down Mortgages In An Attempt To Compete With Rocket And UWM Zillow Home Loans announces it is launching a 1% Down Payment program. The new Zillow program would allow eligible first-time home buyers to pay as little as 1% down on their next home purchase. Right now, Zillow is only offering the program to first time Arizona home buyers. However, the company plans to…

[mortgagebrokerplanotx]

United Wholesale tool keeps Realtors updated on mortgage status

Contents

United wholesale mortgage employees

Rising principal reductions reverse mortgage funding

Fee simple interest

Influence awards celebrate

Mortgage brokers now have the ability to compete with Quicken Loans’ Rocket Mortgage and other digital mortgage options from large lenders, as United Wholesale Mortgage unveiled. and track the.

Auction.com sells $65 million in commercial assets Back to the Futures: Investors See Four Years’ Worth of Housing Slump Back in 2012, house flipping seemed like the perfect opportunity for a person with extra cash and an eye for remodeling. The market was flush with homes left vacant from waves of foreclosures prompted by the housing bubble that burst a few years earlier. You could buy a home from a bank, make any.Businesses doing $350,000 to $1 Million in yearly sales sell at an average of twenty five percent (25%) of yearly sales. For example if a business is doing $750,000 in yearly sales then the sales price will be approximately $187,500 ($750,000 yearly sales x 25% = $187,500 sale price).

85 reviews from current and former united wholesale mortgage employees about United Wholesale Mortgage culture, salaries, benefits, work-life balance, management, job security, and more.

ReverseVision launches interactive comparison tool for reverse mortgages ReverseVision technology is used by 10 of the top-ten reverse mortgage lenders and supports more HECM transactions than all other systems combined. The company’s comprehensive product suite also.

(AB Digital via COMTEX) — It delivers regional exploration of the Global (United States, European Union and China. It’s vital you keep your market knowledge up to date.

FL homeowners flock to principal reduction program Learn more about the home affordable unemployment Program. Principal Reduction Alternative (PRA) The Principal Reduction Alternative encourages your mortgage lender to reduce the amount of principal you owe. Currently there are over 100 loan servicers participating in this program. Learn more about the Principal Reduction Alternative. The Home.

UConnect Monitor past clients to see if they are looking for a loan . UTrack Real-time access to the loan status for your clients

At UWM, Pronto is a solutions-focused client service supergroup dedicated to making sure your toughest questions get answered, your trickiest circumstances get resolved and your highest expectations are met. They’re much more than a help desk.

Wharf Street acquires majority stake in Kroll Bond Rating Agency Fitch sees no sign of strategic default for rising principal reductions reverse mortgage funding expands payment options on proprietary reverse product Reverse Mortgages – A Home Equity Conversion Mortgages (HECMs), also known as a reverse mortgage, is a risk-free way of tapping into home equity without creating monthly payments and without requiring the money to be paid back during a person’s life time.You do pay your real estate taxes and homeowners insurance.Bank of America set to write down principal on California mortgages Bank of America calls their version the "Affordable Loan Solution" But it’s unique in that it’s backed by nonprofit Self-Help Ventures Fund; In what is looking a lot like a jab at the FHA, Bank of America is set to launch a 3% down payment mortgage nationwide with the help of Freddie Mac and nonprofit Self-Help Ventures Fund.About 43% of Americans expect home prices to rise The gap between the share of Americans who get news online and those who do so on television is narrowing. As of August, 43% of Americans report often getting news online, just 7 percentage points lower than the 50% who often get news on television, according to a Pew Research Center survey conducted in August.Bank Of America Foreclosure Plan: Nine Months Of No Payments For Unemployed, If Approved A new program from Bank of America could allow unemployed mortgage holders to go for up to nine months. Underwriting Guidelines for Mortgage Loans – CreditInfoCenter – Understanding mortgage underwriting guidelines will help you understand your loan options when purchasing or refinancing a home.. is secured by the fee simple interest in 597 Westport (4.5%), a 235-unit, mid-rise multifamily property located in Norwalk, CT. The top five loans represent 15.3%.

United Wholesale Mortgage to Move Headquarters to Pontiac Nation’s No. 1 wholesale mortgage lender and Top 50 workplace to build out 60-acre campus featuring state-of-the-art amenities

United Wholesale Mortgage just launched a new tool called UWM Track that assists brokers in providing the current status on loans to real estate agents. "One of the ways brokers can grow their business in a purchase market is to establish sound relationships with realtors.

Like always, our team at United Wholesale Mortgage. the best partnership tools in the industry, so that our brokers can keep their clients: UConnect: After a borrower closes their loan, UWM.

Obama signs extension for higher FHA loan limits Legislation restoring the former limits was passed by Congress on Thursday and was signed into law by President Obama today. The maximum FHA loan limit had fallen to the old maximum of $625,500 on.

In the latest installment, we sit down with Sarah DeCiantis, chief marketing officer of United Wholesale Mortgage, to talk about the importance of marketing in mortgages and how. and research real.

United Wholesale tool keeps Realtors updated on mortgage status nbsp; This report focuses on the global Social Media IT Spending status, future forecast. Telecom and Media  Retail/Wholesale  Other Market segment by Regions/Countries, this.

"Technology and consumer-driven tools are building momentum within the mortgage industry," said Mat Ishbia, President and CEO of United Wholesale Mortgage. "With BLINK, new home buyers or existing homeowners will be able to initiate the loan process from any mobile device, in the comfort of their home, on their own time.

Company Spotlight: MGIC The real reason the Fed is going to begin tapering Treasury relaxes rules to free-up HAFA short sales 2018 Women of Influence: Teresa Whitehead The Women of influence awards celebrate the work of women who have made a difference. They’ve devoted their lives to doing things most wouldn&rsqu 2019 Women of Influence – Business RecordTreasury relaxes rules to free up short sales via HAFA (Home Affordable Foreclosure Alternatives) HAFA and HAMP’s failures have resulted in the Treasury easing eligibility rules to help investors pursue short sales and deed-in-lieu purchases.The reasons are not likely to go away anytime soon. Home prices are up 12% over. to investors as the hope provided by the negative reports that the Fed will not begin tapering soon. Then, with the.The York Water Company YORW reported fourth-quarter 2018 earnings per share of 29 cents, beating the Zacks Consensus Estimate of 27 cents by 7.4%. The figure was also up 7.4% from the year-ago quarter.

The post United Wholesale tool keeps Realtors updated on mortgage status appeared first on Mortgage Broker Plano Texas.

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[annalenaalice03]

Lenders react to end of Freddie Mac 1% down payment mortgage offerings

Lenders react to end of Freddie Mac 1% down payment mortgage offerings

Quicken Loans and UWM weigh in

0% down and 1% down mortgage offerings just started to gain traction in the industry when Freddie Mac announced it is changing the requirements and completely nixed its program option.

The government-sponsored enterprise shocked the market this week when it announced it is changing the requirements to its low down mortgage program and will no longer allow lenders to contribute gifts or grants to reach the 3% down payment requirement.

The move shut the door on what was becoming a fast-growing mortgage lending option for first-time borrowers due to its appeal to borrowers who struggle to overcome one of the biggest barriers to homeownership: the down payment.

Fannie Mae and Freddie Mac first introduced 3% down payment options back in 2014, getting the industry comfortable once again with low down options after they disappeared after the financial crisis.

It didn’t take long for some of the nation’s biggest mortgage lenders to jump on board, including Bank of America, Wells Fargo and JPMorgan Chase.

And by 2015, the industry took the idea a step further and started to roll out 1% down and eventually no down mortgages by working with Freddie on its 3% down program, also known as the Home Possible Advantage program.

Quicken Loans led the pack, with a 1% down mortgage that launched in late 2015.

Guaranteed Rate followed suite shortly thereafter and launched a 1% down product of its own in the summer of 2016. Around the same time, United Wholesale Mortgage announced a 1% down payment option. UWM said it would provide eligible homebuyers with a 2% lender-paid down payment that gives consumers a 3% equity at closing.

Each program saw the lenders “granting” 2% of the down payment to the borrower. Add that to the borrower’s 1% contribution, and you have the 3% needed to qualify for the Fannie and Freddie programs.

Then, Fifth Third Mortgage went beyond Quicken, Guaranteed Rate, and other lenders that began originating 1% down mortgages with Freddie, when it rolled out a 0% down mortgage program last year.

Even as recent as this June, Movement Mortgage announced a zero down payment assistance program for first-time homebuyers, saying it would provide grants up to 3% of a home"s sales price, thus creating 97% conventional financing.

Help spur homeownership and give first-time homebuyers an affordable conforming, conventional mortgage option.

And according to an interview with Quicken Loans and United Wholesale Mortgage that is exactly what the programs were doing.

Bill Banfield, the executive vice president of capital markets for Quicken Loans, said in an interview, “From our perspective, when we rolled out the program, it was an instant success.”

Banfield added that Quicken also set up a lot of monitors to make sure the program performed well. In fact, the loans in Quicken’s 1% down program have a delinquency rate of less than one quarter of one percent.

As Banfield explained in a previous interview on Quicken’s 1% down, after Fannie and Freddie changed some of the stipulations to the original 3% down programs they launched, they witnessed a pick up in the borrowers using the low down option.

And while Freddie Mac decided to go in a different direction, Banfield said that Quicken Loans isn’t done innovating. They don’t have anything planned yet to fill the hole but remain excited about the future thanks to their other mortgage offerings, such as Rocket Mortgage, their online digital mortgage.

Banfield emphasized, “The one thing to keep in mind is that this appears like it is something being taken away, but there are other options out there. Whether it’s FHA or other programs, people can still explore their options to see what they qualify for.”

United Wholesale Mortgage CEO Mat Ishbia echoed similar sentiments toward the program going away in an interview, saying, “I think that it’s a great program for consumers, and we are disappointed that Freddie Mac dropped the program.

Ishbia, however, added, “We are proud to still offer it for our brokers despite Freddie pulling out of the program. We want to continue to support consumers.”

UWM saw so much success in the program that they had to double the budget to $20 million this year because of the demand from brokers and homeowners it was helping across America.

When UWM first introduced the 1% down back in July 2016, Ishbia said, “The 1% down program we’re introducing is a new alternative to the 3% down programs that already exist. It’s a conventional loan that is designed for people with a strong credit payment history who want to keep as much money in their wallet as possible when buying a home.”

There is a key difference between UWM’s offerings and the low down offerings other lenders put out. Rather than price some of the savings into the loan, UWM offered the grant and did not require a rate increase for borrowers, but rather increased the FICO score requirement.

This concept, premium pricing, is something Freddie addressed in its new announcement.

The new changes from Freddie stated, “We are revising our requirements to state that gifts or grants from the Seller as the originating lender will be permitted only after a contribution of at least 3% of value is made from Borrower personal funds and/or other eligible sources of funds. Gifts or grants from the Seller must not be funded through the Mortgage transaction, including differential pricing in rate, discount points, or fees for individual loans or across the Home Possible offering.”

Ishbia expanded on this change, saying, “If the loan on a 3% down is at the exact same place and fees as the 1% down, there should be no problem offering them, but my understanding is that’s not how all lenders are doing the program.”

To Ishbia, “If ‘skin in the game’ was the main reason for low down mortgages, they wouldn’t have just taken away the 2% gift from the lenders, they would have taken away all gifts.”

Skin in the game is not the only measurement, he said.

“I think there are great ways to do low down payment programs such as VA loans, which have offered low and zero down mortgages with no mortgage insurance for years,” said Ishbia.

“There is history of these programs doing well. And for those that say it’s a different type of gift, well, if you’re worried about a gift from an interest party, a lender is not an interested,” said Ishbia. “If they don’t charge more in premium pricing, they are not making any more money. Whether it’s 3% down or 1%, borrowers are getting the exact same deal.”

And as Ishbia previously noted, brokers are seeing great success with the program.

But despite demand, Quicken Loans and UWM will both be required to stop offering loans below 3% through Freddie, starting Nov. 1, 2017. Click here to read Freddie Mac"s announcement in full.

BILL BANFIELD, FREDDIE MAC, HOME POSSIBLE ADVANTAGE, HOME POSSIBLE ADVANTAGE PROGRAM, HOME POSSIBLE MORTGAGESMAT ISHBIA, QUICKEN LOANS, UNITED WHOLESALE MORTGAGE, UWM, JVPRO

The post Lenders react to end of Freddie Mac 1% down payment mortgage offerings appeared first on JV PRO.

from http://jvpro.net/lenders-react-end-freddie-mac-1-payment-mortgage-offerings/ from https://ihelpsellllc.tumblr.com/post/163651644234

[carinaconnor02]

Lenders react to end of Freddie Mac 1% down payment mortgage offerings

Lenders react to end of Freddie Mac 1% down payment mortgage offerings

Quicken Loans and UWM weigh in

0% down and 1% down mortgage offerings just started to gain traction in the industry when Freddie Mac announced it is changing the requirements and completely nixed its program option.

The government-sponsored enterprise shocked the market this week when it announced it is changing the requirements to its low down mortgage program and will no longer allow lenders to contribute gifts or grants to reach the 3% down payment requirement.

The move shut the door on what was becoming a fast-growing mortgage lending option for first-time borrowers due to its appeal to borrowers who struggle to overcome one of the biggest barriers to homeownership: the down payment.

Fannie Mae and Freddie Mac first introduced 3% down payment options back in 2014, getting the industry comfortable once again with low down options after they disappeared after the financial crisis.

It didn’t take long for some of the nation’s biggest mortgage lenders to jump on board, including Bank of America, Wells Fargo and JPMorgan Chase.

And by 2015, the industry took the idea a step further and started to roll out 1% down and eventually no down mortgages by working with Freddie on its 3% down program, also known as the Home Possible Advantage program.

Quicken Loans led the pack, with a 1% down mortgage that launched in late 2015.

Guaranteed Rate followed suite shortly thereafter and launched a 1% down product of its own in the summer of 2016. Around the same time, United Wholesale Mortgage announced a 1% down payment option. UWM said it would provide eligible homebuyers with a 2% lender-paid down payment that gives consumers a 3% equity at closing.

Each program saw the lenders “granting” 2% of the down payment to the borrower. Add that to the borrower’s 1% contribution, and you have the 3% needed to qualify for the Fannie and Freddie programs.

Then, Fifth Third Mortgage went beyond Quicken, Guaranteed Rate, and other lenders that began originating 1% down mortgages with Freddie, when it rolled out a 0% down mortgage program last year.

Even as recent as this June, Movement Mortgage announced a zero down payment assistance program for first-time homebuyers, saying it would provide grants up to 3% of a home”s sales price, thus creating 97% conventional financing.

Help spur homeownership and give first-time homebuyers an affordable conforming, conventional mortgage option.

And according to an interview with Quicken Loans and United Wholesale Mortgage that is exactly what the programs were doing.

Bill Banfield, the executive vice president of capital markets for Quicken Loans, said in an interview, “From our perspective, when we rolled out the program, it was an instant success.”

Banfield added that Quicken also set up a lot of monitors to make sure the program performed well. In fact, the loans in Quicken’s 1% down program have a delinquency rate of less than one quarter of one percent.

As Banfield explained in a previous interview on Quicken’s 1% down, after Fannie and Freddie changed some of the stipulations to the original 3% down programs they launched, they witnessed a pick up in the borrowers using the low down option.

And while Freddie Mac decided to go in a different direction, Banfield said that Quicken Loans isn’t done innovating. They don’t have anything planned yet to fill the hole but remain excited about the future thanks to their other mortgage offerings, such as Rocket Mortgage, their online digital mortgage.

Banfield emphasized, “The one thing to keep in mind is that this appears like it is something being taken away, but there are other options out there. Whether it’s FHA or other programs, people can still explore their options to see what they qualify for.”

United Wholesale Mortgage CEO Mat Ishbia echoed similar sentiments toward the program going away in an interview, saying, “I think that it’s a great program for consumers, and we are disappointed that Freddie Mac dropped the program.

Ishbia, however, added, “We are proud to still offer it for our brokers despite Freddie pulling out of the program. We want to continue to support consumers.”

UWM saw so much success in the program that they had to double the budget to $20 million this year because of the demand from brokers and homeowners it was helping across America.

When UWM first introduced the 1% down back in July 2016, Ishbia said, “The 1% down program we’re introducing is a new alternative to the 3% down programs that already exist. It’s a conventional loan that is designed for people with a strong credit payment history who want to keep as much money in their wallet as possible when buying a home.”

There is a key difference between UWM’s offerings and the low down offerings other lenders put out. Rather than price some of the savings into the loan, UWM offered the grant and did not require a rate increase for borrowers, but rather increased the FICO score requirement.

This concept, premium pricing, is something Freddie addressed in its new announcement.

The new changes from Freddie stated, “We are revising our requirements to state that gifts or grants from the Seller as the originating lender will be permitted only after a contribution of at least 3% of value is made from Borrower personal funds and/or other eligible sources of funds. Gifts or grants from the Seller must not be funded through the Mortgage transaction, including differential pricing in rate, discount points, or fees for individual loans or across the Home Possible offering.”

Ishbia expanded on this change, saying, “If the loan on a 3% down is at the exact same place and fees as the 1% down, there should be no problem offering them, but my understanding is that’s not how all lenders are doing the program.”

To Ishbia, “If ‘skin in the game’ was the main reason for low down mortgages, they wouldn’t have just taken away the 2% gift from the lenders, they would have taken away all gifts.”

Skin in the game is not the only measurement, he said.

“I think there are great ways to do low down payment programs such as VA loans, which have offered low and zero down mortgages with no mortgage insurance for years,” said Ishbia.

“There is history of these programs doing well. And for those that say it’s a different type of gift, well, if you’re worried about a gift from an interest party, a lender is not an interested,” said Ishbia. “If they don’t charge more in premium pricing, they are not making any more money. Whether it’s 3% down or 1%, borrowers are getting the exact same deal.”

And as Ishbia previously noted, brokers are seeing great success with the program.

But despite demand, Quicken Loans and UWM will both be required to stop offering loans below 3% through Freddie, starting Nov. 1, 2017. Click here to read Freddie Mac”s announcement in full.

BILL BANFIELD, FREDDIE MAC, HOME POSSIBLE ADVANTAGE, HOME POSSIBLE ADVANTAGE PROGRAM, HOME POSSIBLE MORTGAGESMAT ISHBIA, QUICKEN LOANS, UNITED WHOLESALE MORTGAGE, UWM, JVPRO

The post Lenders react to end of Freddie Mac 1% down payment mortgage offerings appeared first on JV PRO.

From http://jvpro.net/lenders-react-end-freddie-mac-1-payment-mortgage-offerings/

from https://ihelpsellllc.wordpress.com/2017/07/31/lenders-react-to-end-of-freddie-mac-1-down-payment-mortgage-offerings-2/

[ihelpsellllc]

Lenders react to end of Freddie Mac 1% down payment mortgage offerings

Lenders react to end of Freddie Mac 1% down payment mortgage offerings

Quicken Loans and UWM weigh in

0% down and 1% down mortgage offerings just started to gain traction in the industry when Freddie Mac announced it is changing the requirements and completely nixed its program option.

The government-sponsored enterprise shocked the market this week when it announced it is changing the requirements to its low down mortgage program and will no longer allow lenders to contribute gifts or grants to reach the 3% down payment requirement.

The move shut the door on what was becoming a fast-growing mortgage lending option for first-time borrowers due to its appeal to borrowers who struggle to overcome one of the biggest barriers to homeownership: the down payment.

Fannie Mae and Freddie Mac first introduced 3% down payment options back in 2014, getting the industry comfortable once again with low down options after they disappeared after the financial crisis.

It didn’t take long for some of the nation’s biggest mortgage lenders to jump on board, including Bank of America, Wells Fargo and JPMorgan Chase.

And by 2015, the industry took the idea a step further and started to roll out 1% down and eventually no down mortgages by working with Freddie on its 3% down program, also known as the Home Possible Advantage program.

Quicken Loans led the pack, with a 1% down mortgage that launched in late 2015.

Guaranteed Rate followed suite shortly thereafter and launched a 1% down product of its own in the summer of 2016. Around the same time, United Wholesale Mortgage announced a 1% down payment option. UWM said it would provide eligible homebuyers with a 2% lender-paid down payment that gives consumers a 3% equity at closing.

Each program saw the lenders “granting” 2% of the down payment to the borrower. Add that to the borrower’s 1% contribution, and you have the 3% needed to qualify for the Fannie and Freddie programs.

Then, Fifth Third Mortgage went beyond Quicken, Guaranteed Rate, and other lenders that began originating 1% down mortgages with Freddie, when it rolled out a 0% down mortgage program last year.

Even as recent as this June, Movement Mortgage announced a zero down payment assistance program for first-time homebuyers, saying it would provide grants up to 3% of a home"s sales price, thus creating 97% conventional financing.

Help spur homeownership and give first-time homebuyers an affordable conforming, conventional mortgage option.

And according to an interview with Quicken Loans and United Wholesale Mortgage that is exactly what the programs were doing.

Bill Banfield, the executive vice president of capital markets for Quicken Loans, said in an interview, “From our perspective, when we rolled out the program, it was an instant success.”

Banfield added that Quicken also set up a lot of monitors to make sure the program performed well. In fact, the loans in Quicken’s 1% down program have a delinquency rate of less than one quarter of one percent.

As Banfield explained in a previous interview on Quicken’s 1% down, after Fannie and Freddie changed some of the stipulations to the original 3% down programs they launched, they witnessed a pick up in the borrowers using the low down option.

And while Freddie Mac decided to go in a different direction, Banfield said that Quicken Loans isn’t done innovating. They don’t have anything planned yet to fill the hole but remain excited about the future thanks to their other mortgage offerings, such as Rocket Mortgage, their online digital mortgage.

Banfield emphasized, “The one thing to keep in mind is that this appears like it is something being taken away, but there are other options out there. Whether it’s FHA or other programs, people can still explore their options to see what they qualify for.”

United Wholesale Mortgage CEO Mat Ishbia echoed similar sentiments toward the program going away in an interview, saying, “I think that it’s a great program for consumers, and we are disappointed that Freddie Mac dropped the program.

Ishbia, however, added, “We are proud to still offer it for our brokers despite Freddie pulling out of the program. We want to continue to support consumers.”

UWM saw so much success in the program that they had to double the budget to $20 million this year because of the demand from brokers and homeowners it was helping across America.

When UWM first introduced the 1% down back in July 2016, Ishbia said, “The 1% down program we’re introducing is a new alternative to the 3% down programs that already exist. It’s a conventional loan that is designed for people with a strong credit payment history who want to keep as much money in their wallet as possible when buying a home.”

There is a key difference between UWM’s offerings and the low down offerings other lenders put out. Rather than price some of the savings into the loan, UWM offered the grant and did not require a rate increase for borrowers, but rather increased the FICO score requirement.

This concept, premium pricing, is something Freddie addressed in its new announcement.

The new changes from Freddie stated, “We are revising our requirements to state that gifts or grants from the Seller as the originating lender will be permitted only after a contribution of at least 3% of value is made from Borrower personal funds and/or other eligible sources of funds. Gifts or grants from the Seller must not be funded through the Mortgage transaction, including differential pricing in rate, discount points, or fees for individual loans or across the Home Possible offering.”

Ishbia expanded on this change, saying, “If the loan on a 3% down is at the exact same place and fees as the 1% down, there should be no problem offering them, but my understanding is that’s not how all lenders are doing the program.”

To Ishbia, “If ‘skin in the game’ was the main reason for low down mortgages, they wouldn’t have just taken away the 2% gift from the lenders, they would have taken away all gifts.”

Skin in the game is not the only measurement, he said.

“I think there are great ways to do low down payment programs such as VA loans, which have offered low and zero down mortgages with no mortgage insurance for years,” said Ishbia.

“There is history of these programs doing well. And for those that say it’s a different type of gift, well, if you’re worried about a gift from an interest party, a lender is not an interested,” said Ishbia. “If they don’t charge more in premium pricing, they are not making any more money. Whether it’s 3% down or 1%, borrowers are getting the exact same deal.”

And as Ishbia previously noted, brokers are seeing great success with the program.

But despite demand, Quicken Loans and UWM will both be required to stop offering loans below 3% through Freddie, starting Nov. 1, 2017. Click here to read Freddie Mac"s announcement in full.

BILL BANFIELD, FREDDIE MAC, HOME POSSIBLE ADVANTAGE, HOME POSSIBLE ADVANTAGE PROGRAM, HOME POSSIBLE MORTGAGESMAT ISHBIA, QUICKEN LOANS, UNITED WHOLESALE MORTGAGE, UWM, JVPRO

The post Lenders react to end of Freddie Mac 1% down payment mortgage offerings appeared first on JV PRO.

from http://jvpro.net/lenders-react-end-freddie-mac-1-payment-mortgage-offerings/

[annalenaalice03]

Lenders react to end of Freddie Mac 1% down payment mortgage offerings

Lenders react to end of Freddie Mac 1% down payment mortgage offerings

Quicken Loans and UWM weigh in

0% down and 1% down mortgage offerings just started to gain traction in the industry when Freddie Mac announced it is changing the requirements and completely nixed its program option.

The government-sponsored enterprise shocked the market this week when it announced it is changing the requirements to its low down mortgage program and will no longer allow lenders to contribute gifts or grants to reach the 3% down payment requirement.

The move shut the door on what was becoming a fast-growing mortgage lending option for first-time borrowers due to its appeal to borrowers who struggle to overcome one of the biggest barriers to homeownership: the down payment.

Fannie Mae and Freddie Mac first introduced 3% down payment options back in 2014, getting the industry comfortable once again with low down options after they disappeared after the financial crisis.

It didn’t take long for some of the nation’s biggest mortgage lenders to jump on board, including Bank of America, Wells Fargo and JPMorgan Chase.

And by 2015, the industry took the idea a step further and started to roll out 1% down and eventually no down mortgages by working with Freddie on its 3% down program, also known as the Home Possible Advantage program.

Quicken Loans led the pack, with a 1% down mortgage that launched in late 2015.

Guaranteed Rate followed suite shortly thereafter and launched a 1% down product of its own in the summer of 2016. Around the same time, United Wholesale Mortgage announced a 1% down payment option. UWM said it would provide eligible homebuyers with a 2% lender-paid down payment that gives consumers a 3% equity at closing.

Each program saw the lenders “granting” 2% of the down payment to the borrower. Add that to the borrower’s 1% contribution, and you have the 3% needed to qualify for the Fannie and Freddie programs.

Then, Fifth Third Mortgage went beyond Quicken, Guaranteed Rate, and other lenders that began originating 1% down mortgages with Freddie, when it rolled out a 0% down mortgage program last year.

Even as recent as this June, Movement Mortgage announced a zero down payment assistance program for first-time homebuyers, saying it would provide grants up to 3% of a home"s sales price, thus creating 97% conventional financing.

Help spur homeownership and give first-time homebuyers an affordable conforming, conventional mortgage option.

And according to an interview with Quicken Loans and United Wholesale Mortgage that is exactly what the programs were doing.

Bill Banfield, the executive vice president of capital markets for Quicken Loans, said in an interview, “From our perspective, when we rolled out the program, it was an instant success.”

Banfield added that Quicken also set up a lot of monitors to make sure the program performed well. In fact, the loans in Quicken’s 1% down program have a delinquency rate of less than one quarter of one percent.

As Banfield explained in a previous interview on Quicken’s 1% down, after Fannie and Freddie changed some of the stipulations to the original 3% down programs they launched, they witnessed a pick up in the borrowers using the low down option.

And while Freddie Mac decided to go in a different direction, Banfield said that Quicken Loans isn’t done innovating. They don’t have anything planned yet to fill the hole but remain excited about the future thanks to their other mortgage offerings, such as Rocket Mortgage, their online digital mortgage.

Banfield emphasized, “The one thing to keep in mind is that this appears like it is something being taken away, but there are other options out there. Whether it’s FHA or other programs, people can still explore their options to see what they qualify for.”

United Wholesale Mortgage CEO Mat Ishbia echoed similar sentiments toward the program going away in an interview, saying, “I think that it’s a great program for consumers, and we are disappointed that Freddie Mac dropped the program.

Ishbia, however, added, “We are proud to still offer it for our brokers despite Freddie pulling out of the program. We want to continue to support consumers.”

UWM saw so much success in the program that they had to double the budget to $20 million this year because of the demand from brokers and homeowners it was helping across America.

When UWM first introduced the 1% down back in July 2016, Ishbia said, “The 1% down program we’re introducing is a new alternative to the 3% down programs that already exist. It’s a conventional loan that is designed for people with a strong credit payment history who want to keep as much money in their wallet as possible when buying a home.”

There is a key difference between UWM’s offerings and the low down offerings other lenders put out. Rather than price some of the savings into the loan, UWM offered the grant and did not require a rate increase for borrowers, but rather increased the FICO score requirement.

This concept, premium pricing, is something Freddie addressed in its new announcement.

The new changes from Freddie stated, “We are revising our requirements to state that gifts or grants from the Seller as the originating lender will be permitted only after a contribution of at least 3% of value is made from Borrower personal funds and/or other eligible sources of funds. Gifts or grants from the Seller must not be funded through the Mortgage transaction, including differential pricing in rate, discount points, or fees for individual loans or across the Home Possible offering.”

Ishbia expanded on this change, saying, “If the loan on a 3% down is at the exact same place and fees as the 1% down, there should be no problem offering them, but my understanding is that’s not how all lenders are doing the program.”

To Ishbia, “If ‘skin in the game’ was the main reason for low down mortgages, they wouldn’t have just taken away the 2% gift from the lenders, they would have taken away all gifts.”

Skin in the game is not the only measurement, he said.

“I think there are great ways to do low down payment programs such as VA loans, which have offered low and zero down mortgages with no mortgage insurance for years,” said Ishbia.

“There is history of these programs doing well. And for those that say it’s a different type of gift, well, if you’re worried about a gift from an interest party, a lender is not an interested,” said Ishbia. “If they don’t charge more in premium pricing, they are not making any more money. Whether it’s 3% down or 1%, borrowers are getting the exact same deal.”

And as Ishbia previously noted, brokers are seeing great success with the program.

But despite demand, Quicken Loans and UWM will both be required to stop offering loans below 3% through Freddie, starting Nov. 1, 2017. Click here to read Freddie Mac"s announcement in full.

BILL BANFIELD, FREDDIE MAC, HOME POSSIBLE ADVANTAGE, HOME POSSIBLE ADVANTAGE PROGRAM, HOME POSSIBLE MORTGAGESMAT ISHBIA, QUICKEN LOANS, UNITED WHOLESALE MORTGAGE, UWM, iHelpSell

The post Lenders react to end of Freddie Mac 1% down payment mortgage offerings appeared first on iHelpSell.

from http://ihelpsell.net/lenders-react-end-freddie-mac-1-payment-mortgage-offerings/ from https://ihelpsellllc.tumblr.com/post/163651643719

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Lenders react to end of Freddie Mac 1% down payment mortgage offerings

Lenders react to end of Freddie Mac 1% down payment mortgage offerings

Quicken Loans and UWM weigh in

0% down and 1% down mortgage offerings just started to gain traction in the industry when Freddie Mac announced it is changing the requirements and completely nixed its program option.

The government-sponsored enterprise shocked the market this week when it announced it is changing the requirements to its low down mortgage program and will no longer allow lenders to contribute gifts or grants to reach the 3% down payment requirement.

The move shut the door on what was becoming a fast-growing mortgage lending option for first-time borrowers due to its appeal to borrowers who struggle to overcome one of the biggest barriers to homeownership: the down payment.

Fannie Mae and Freddie Mac first introduced 3% down payment options back in 2014, getting the industry comfortable once again with low down options after they disappeared after the financial crisis.

It didn’t take long for some of the nation’s biggest mortgage lenders to jump on board, including Bank of America, Wells Fargo and JPMorgan Chase.

And by 2015, the industry took the idea a step further and started to roll out 1% down and eventually no down mortgages by working with Freddie on its 3% down program, also known as the Home Possible Advantage program.

Quicken Loans led the pack, with a 1% down mortgage that launched in late 2015.

Guaranteed Rate followed suite shortly thereafter and launched a 1% down product of its own in the summer of 2016. Around the same time, United Wholesale Mortgage announced a 1% down payment option. UWM said it would provide eligible homebuyers with a 2% lender-paid down payment that gives consumers a 3% equity at closing.

Each program saw the lenders “granting” 2% of the down payment to the borrower. Add that to the borrower’s 1% contribution, and you have the 3% needed to qualify for the Fannie and Freddie programs.

Then, Fifth Third Mortgage went beyond Quicken, Guaranteed Rate, and other lenders that began originating 1% down mortgages with Freddie, when it rolled out a 0% down mortgage program last year.

Even as recent as this June, Movement Mortgage announced a zero down payment assistance program for first-time homebuyers, saying it would provide grants up to 3% of a home”s sales price, thus creating 97% conventional financing.

Help spur homeownership and give first-time homebuyers an affordable conforming, conventional mortgage option.

And according to an interview with Quicken Loans and United Wholesale Mortgage that is exactly what the programs were doing.

Bill Banfield, the executive vice president of capital markets for Quicken Loans, said in an interview, “From our perspective, when we rolled out the program, it was an instant success.”

Banfield added that Quicken also set up a lot of monitors to make sure the program performed well. In fact, the loans in Quicken’s 1% down program have a delinquency rate of less than one quarter of one percent.

As Banfield explained in a previous interview on Quicken’s 1% down, after Fannie and Freddie changed some of the stipulations to the original 3% down programs they launched, they witnessed a pick up in the borrowers using the low down option.

And while Freddie Mac decided to go in a different direction, Banfield said that Quicken Loans isn’t done innovating. They don’t have anything planned yet to fill the hole but remain excited about the future thanks to their other mortgage offerings, such as Rocket Mortgage, their online digital mortgage.

Banfield emphasized, “The one thing to keep in mind is that this appears like it is something being taken away, but there are other options out there. Whether it’s FHA or other programs, people can still explore their options to see what they qualify for.”

United Wholesale Mortgage CEO Mat Ishbia echoed similar sentiments toward the program going away in an interview, saying, “I think that it’s a great program for consumers, and we are disappointed that Freddie Mac dropped the program.

Ishbia, however, added, “We are proud to still offer it for our brokers despite Freddie pulling out of the program. We want to continue to support consumers.”

UWM saw so much success in the program that they had to double the budget to $20 million this year because of the demand from brokers and homeowners it was helping across America.

When UWM first introduced the 1% down back in July 2016, Ishbia said, “The 1% down program we’re introducing is a new alternative to the 3% down programs that already exist. It’s a conventional loan that is designed for people with a strong credit payment history who want to keep as much money in their wallet as possible when buying a home.”

There is a key difference between UWM’s offerings and the low down offerings other lenders put out. Rather than price some of the savings into the loan, UWM offered the grant and did not require a rate increase for borrowers, but rather increased the FICO score requirement.

This concept, premium pricing, is something Freddie addressed in its new announcement.

The new changes from Freddie stated, “We are revising our requirements to state that gifts or grants from the Seller as the originating lender will be permitted only after a contribution of at least 3% of value is made from Borrower personal funds and/or other eligible sources of funds. Gifts or grants from the Seller must not be funded through the Mortgage transaction, including differential pricing in rate, discount points, or fees for individual loans or across the Home Possible offering.”

Ishbia expanded on this change, saying, “If the loan on a 3% down is at the exact same place and fees as the 1% down, there should be no problem offering them, but my understanding is that’s not how all lenders are doing the program.”

To Ishbia, “If ‘skin in the game’ was the main reason for low down mortgages, they wouldn’t have just taken away the 2% gift from the lenders, they would have taken away all gifts.”

Skin in the game is not the only measurement, he said.

“I think there are great ways to do low down payment programs such as VA loans, which have offered low and zero down mortgages with no mortgage insurance for years,” said Ishbia.

“There is history of these programs doing well. And for those that say it’s a different type of gift, well, if you’re worried about a gift from an interest party, a lender is not an interested,” said Ishbia. “If they don’t charge more in premium pricing, they are not making any more money. Whether it’s 3% down or 1%, borrowers are getting the exact same deal.”

And as Ishbia previously noted, brokers are seeing great success with the program.

But despite demand, Quicken Loans and UWM will both be required to stop offering loans below 3% through Freddie, starting Nov. 1, 2017. Click here to read Freddie Mac”s announcement in full.

BILL BANFIELD, FREDDIE MAC, HOME POSSIBLE ADVANTAGE, HOME POSSIBLE ADVANTAGE PROGRAM, HOME POSSIBLE MORTGAGESMAT ISHBIA, QUICKEN LOANS, UNITED WHOLESALE MORTGAGE, UWM, iHelpSell

The post Lenders react to end of Freddie Mac 1% down payment mortgage offerings appeared first on iHelpSell.

From http://ihelpsell.net/lenders-react-end-freddie-mac-1-payment-mortgage-offerings/

from https://ihelpsellllc.wordpress.com/2017/07/31/lenders-react-to-end-of-freddie-mac-1-down-payment-mortgage-offerings/

[ihelpsellllc]

Lenders react to end of Freddie Mac 1% down payment mortgage offerings

Lenders react to end of Freddie Mac 1% down payment mortgage offerings

Quicken Loans and UWM weigh in

0% down and 1% down mortgage offerings just started to gain traction in the industry when Freddie Mac announced it is changing the requirements and completely nixed its program option.

The government-sponsored enterprise shocked the market this week when it announced it is changing the requirements to its low down mortgage program and will no longer allow lenders to contribute gifts or grants to reach the 3% down payment requirement.

The move shut the door on what was becoming a fast-growing mortgage lending option for first-time borrowers due to its appeal to borrowers who struggle to overcome one of the biggest barriers to homeownership: the down payment.

Fannie Mae and Freddie Mac first introduced 3% down payment options back in 2014, getting the industry comfortable once again with low down options after they disappeared after the financial crisis.

It didn’t take long for some of the nation’s biggest mortgage lenders to jump on board, including Bank of America, Wells Fargo and JPMorgan Chase.

And by 2015, the industry took the idea a step further and started to roll out 1% down and eventually no down mortgages by working with Freddie on its 3% down program, also known as the Home Possible Advantage program.

Quicken Loans led the pack, with a 1% down mortgage that launched in late 2015.

Guaranteed Rate followed suite shortly thereafter and launched a 1% down product of its own in the summer of 2016. Around the same time, United Wholesale Mortgage announced a 1% down payment option. UWM said it would provide eligible homebuyers with a 2% lender-paid down payment that gives consumers a 3% equity at closing.

Each program saw the lenders “granting” 2% of the down payment to the borrower. Add that to the borrower’s 1% contribution, and you have the 3% needed to qualify for the Fannie and Freddie programs.

Then, Fifth Third Mortgage went beyond Quicken, Guaranteed Rate, and other lenders that began originating 1% down mortgages with Freddie, when it rolled out a 0% down mortgage program last year.

Even as recent as this June, Movement Mortgage announced a zero down payment assistance program for first-time homebuyers, saying it would provide grants up to 3% of a home"s sales price, thus creating 97% conventional financing.

Help spur homeownership and give first-time homebuyers an affordable conforming, conventional mortgage option.

And according to an interview with Quicken Loans and United Wholesale Mortgage that is exactly what the programs were doing.

Bill Banfield, the executive vice president of capital markets for Quicken Loans, said in an interview, “From our perspective, when we rolled out the program, it was an instant success.”

Banfield added that Quicken also set up a lot of monitors to make sure the program performed well. In fact, the loans in Quicken’s 1% down program have a delinquency rate of less than one quarter of one percent.

As Banfield explained in a previous interview on Quicken’s 1% down, after Fannie and Freddie changed some of the stipulations to the original 3% down programs they launched, they witnessed a pick up in the borrowers using the low down option.

And while Freddie Mac decided to go in a different direction, Banfield said that Quicken Loans isn’t done innovating. They don’t have anything planned yet to fill the hole but remain excited about the future thanks to their other mortgage offerings, such as Rocket Mortgage, their online digital mortgage.

Banfield emphasized, “The one thing to keep in mind is that this appears like it is something being taken away, but there are other options out there. Whether it’s FHA or other programs, people can still explore their options to see what they qualify for.”

United Wholesale Mortgage CEO Mat Ishbia echoed similar sentiments toward the program going away in an interview, saying, “I think that it’s a great program for consumers, and we are disappointed that Freddie Mac dropped the program.

Ishbia, however, added, “We are proud to still offer it for our brokers despite Freddie pulling out of the program. We want to continue to support consumers.”

UWM saw so much success in the program that they had to double the budget to $20 million this year because of the demand from brokers and homeowners it was helping across America.

When UWM first introduced the 1% down back in July 2016, Ishbia said, “The 1% down program we’re introducing is a new alternative to the 3% down programs that already exist. It’s a conventional loan that is designed for people with a strong credit payment history who want to keep as much money in their wallet as possible when buying a home.”

There is a key difference between UWM’s offerings and the low down offerings other lenders put out. Rather than price some of the savings into the loan, UWM offered the grant and did not require a rate increase for borrowers, but rather increased the FICO score requirement.

This concept, premium pricing, is something Freddie addressed in its new announcement.

The new changes from Freddie stated, “We are revising our requirements to state that gifts or grants from the Seller as the originating lender will be permitted only after a contribution of at least 3% of value is made from Borrower personal funds and/or other eligible sources of funds. Gifts or grants from the Seller must not be funded through the Mortgage transaction, including differential pricing in rate, discount points, or fees for individual loans or across the Home Possible offering.”

Ishbia expanded on this change, saying, “If the loan on a 3% down is at the exact same place and fees as the 1% down, there should be no problem offering them, but my understanding is that’s not how all lenders are doing the program.”

To Ishbia, “If ‘skin in the game’ was the main reason for low down mortgages, they wouldn’t have just taken away the 2% gift from the lenders, they would have taken away all gifts.”

Skin in the game is not the only measurement, he said.

“I think there are great ways to do low down payment programs such as VA loans, which have offered low and zero down mortgages with no mortgage insurance for years,” said Ishbia.

“There is history of these programs doing well. And for those that say it’s a different type of gift, well, if you’re worried about a gift from an interest party, a lender is not an interested,” said Ishbia. “If they don’t charge more in premium pricing, they are not making any more money. Whether it’s 3% down or 1%, borrowers are getting the exact same deal.”

And as Ishbia previously noted, brokers are seeing great success with the program.

But despite demand, Quicken Loans and UWM will both be required to stop offering loans below 3% through Freddie, starting Nov. 1, 2017. Click here to read Freddie Mac"s announcement in full.

BILL BANFIELD, FREDDIE MAC, HOME POSSIBLE ADVANTAGE, HOME POSSIBLE ADVANTAGE PROGRAM, HOME POSSIBLE MORTGAGESMAT ISHBIA, QUICKEN LOANS, UNITED WHOLESALE MORTGAGE, UWM, iHelpSell

The post Lenders react to end of Freddie Mac 1% down payment mortgage offerings appeared first on iHelpSell.

from http://ihelpsell.net/lenders-react-end-freddie-mac-1-payment-mortgage-offerings/