Yogi Berra and FHA Loans

On top of that…the projected, new-all-over-again proposal will be subject to a 30-day comment period post-publication in the Federal Register.

And then after that, (once the flood of comments are evaluated), there may be the possibility that it could happen that there might be a potential change to the seller-paids as we know and love them today. I can’t imagine why it’s so confusing. (Insert sarcastic tone here.)

At the end of the day we’re still a month (or months) away even if anything will change on seller paid contributions.

Florida Mortgages and The Price We Pay

But I’d be interested in seeing what the average credit score and the other financial vitals were of the borrowers that are behind these FHA loan losses. Perhaps vigilant due diligence in determining a borrower’s likelihood to repay their mortgage loan combined with the borrower having a literal interest in the future satisfaction of the loan would make all the difference in the world. What a concept!

At the end of the day, it seems to me that some safeguards (like reasonable credit score thresholds and borrower produced funds) might very well have mitigated these costly circumstances.

FHA May Not Be Going Your Way…

So, in this 30-day comment period which may or may not result in reality, in the end August-September time frame looms the possibility that the seller-paids may be reduced from 6% to 3%. (Seller paid contributions is money that can be allocated toward buyers’ expenses of everything from closing costs to pre-paids to escrows and are paid out of the sellers’ funds.)

Mortgage Loans and Seller Paid Contributions

Here we go again! In the mortgage industry, mortgage brokers have seen as many interpretations of rules as there are actual rules that govern the home mortgage business. Seller paid contributions (money that can be allocated toward buyers’ expenses of everything from closing costs to pre-paids to escrows and are paid out of the sellers’… Continue Reading Mortgage Loans and Seller Paid Contributions