NRDC submitted comments on a proposed rule by the Department of Housing and
Urban Development, which, when finalized, will increase the nation's
resilience to flood disasters. "The proposed rule achieves greater protection
for the nation by requiring future HUD-funded projects, like affordable
housing, hospitals, and other kinds of community infrastructure, to be
built with an additional margin of safety against potential flooding.
"Implementation of HUD's
proposed rule will provide long-term benefits for the nation in avoided
disaster costs, as well as safer, more prepared communities. As HUD is a
significant funder of affordable housing and economic development,
implementation of higher flood protection standards will reduce the risk of
losing housing and essential community services in the event of a
flood." If this perks your interest, you can read more here.
Citi Correspondent Lending's
Flood Insurance Best Practice (CL 317) and Hazard Insurance Best Practice
(CL 227) have been updated to address current common issues specific to
flood and hazard requirements and documentation. Click a link to view
each updated document: Flood Insurance Best Practice. Hazard Insurance Best Practice.
AmeriHome posted: FEMA
announced in DR-4293 that assistance has been made available to Tennessee's
Sevier county to supplement individual, state, and local recovery efforts
in the areas affected by wildfires beginning 11/28/2016 to 12/9/2016.
While we're talking about lender
and investor updates, let's see what everyone is doing in terms of the
conventional conforming loan limits for 2017. (This commentary has had
numerous updates already.)
Effective with Best Efforts locks
and loans locked in Mandatory commitments created on or after December 22,
2016, Nationstar Mortgage is aligning with the Conforming loan limit
increases for standard and high balance loans, as announced by Fannie Mae
and Freddie Mac. All new loan limits will be applicable in DU for
Version 9.3 or Version 10.0 loan casefiles submitted (or resubmitted) on or
after the weekend of December 10, 2016. Also, note that loan casefiles
underwritten through DU prior to December 10th that receive an Ineligible
recommendation due only to exceeding the 2016 loan limit may be delivered
after January 1, 2017, without resubmitting to DU if the loan amount
complies with the applicable 2017 loan limit. To view all Nationstar's updates, click here.
PRMG will accept the new
loan limits on Government products effective January 1st, 2017.
However, DU will not be updated to reflect the new limits for FHA or VA
until the weekend of January 21st, 2017.
Effective as of December 15th,
Sun West is accepting lock requests per the new 2017 Conventional
loan limits published by Fannie Mae and Freddie Mac.
Citi Correspondent Lending
is accepting agency loans according to the recently announced 2017 Agency
loan limits as follows: DU Loans - New registrations or DU re-submissions
on/after December 10, 2016. LPA Loans - New registrations or LPA
re-submissions on/after December 2, 2016. System updates scheduled to be in
place on Friday, December 23rd that will allow registration of a conforming
loan up to the 2017 maximum conforming loan amount. As an interim solution
prior to the system updates being implemented, register new loans exceeding
the former maximum loan limits at the former maximum loan amount. Upon
receipt and review of loan file, the loan amount per the documents
submitted will be updated.
The loan amount for all Pacific
Union Financial, LLC Jumbo loan products must exceed the maximum
conforming loan amount for the subject property county by $1. With
the increase to the 2017 Conforming Loan Limits, the minimum loan amount
for Jumbo products will increase to the 2017 conforming limit plus $1. For
its Pacific Prime product, the higher 2017 minimum loan amount will be
effective for applications dated on or after January 1, 2017. Mortgage
Insurance providers will accept the 2017 loan limits however, some MI
providers may not allow up to the maximum loan amount. Refer to the
applicable website for information. The Pacific Union MI Matrix will
be updated as information becomes available.
FAMC (Franklin American)
is ready to purchase those loans that meet Day1Certainty requirements.
And at the other end
of loan sizes, what's new in jumbo-land?
Effective 12/15/2016, Mountain
West Financial's Jumbo II products were no longer suspended.
Fifth Third Mortgage Company
spread the word that the minimum loan amount for FTMC Non-Agency Jumbo
Products has also increased because of the new maximum conforming loan amounts.
Turning to changes in evaluating
collateral, the drop in business has certainly eased up the strain on
appraisers in some parts of the nation. What's up with appraisal
requirements?
Nationstar Mortgage
now maintains and distributes a monthly Appraiser Exclusionary Listto
continue to ensure collateral quality. Correspondents are encouraged
to review the Nationstar Mortgage Appraiser Exclusionary List prior to
submitting a loan for loan purchase.
Have rates stopped going up?
Perhaps: yesterday U.S. Treasuries had one of their best days since the
November 8 U.S. election. Coming from out of nowhere, the Treasury auction
of 5-year notes was surprisingly strong. Apparently the 5-year part of the
yield curve ("the belly") led the way as it was seen as the most
attractively priced area. So there were buyers. By the time the dust
settled Wednesday the 10-year note had improved .5 in price and was
yielding 2.51%. Mortgage-backed securities had improved about .375.
Today is the last full day of
trading for 2016, and we've already had Initial Jobless Claims (-10k to
265k) and November Advanced Goods Trade (a new indicator showing a $65.3
billion deficit). Coming up is a $28 billion 7-year note auction. After
these figures the 10-year is hovering around 2.49% with agency MBS prices
better by roughly .125 in price versus last night.
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