Underwriting Changes Boost Housing
The most recent underwriting changes in the mortgage industry have allowed housing to show some improvement. Albeit, the bargain prices and low interest rates are also an added benefit, but we are experiencing a loosening of loan guidelines much similar to years past. From loan & mortgage insurance guidelines to the new government programs, we are seeing more people enter the mortgage arena with greater success.
Let’s start with HARP II, which is helping to stabilize the market as it prevents further foreclosures. This presidential creation of a loan program is allowing homeowners to refinance if the mortgage that they are carrying is held by Fannie Mae or Freddie Mac. Consumers can check to see if this is the case by visiting the corresponding websites to determine if there is a match. If so, consumers can call their trusted mortgage broker to verify additional information to handle the refinance. Many banks are boasting great rates and fees, but brokers have generally provided the best service coupled with rates & fees.
Since the advent of the program, there has been a large increase in volume of loans submitted causing slight delays in the underwriting process. With a little patience and the submission of a complete package the process should still be relatively painless. Real Estate professionals who have sold homes to their clients prior to April 2009 are currently calling on these past relationships to offer their clients this option to refinance with local mortgage brokers.
As a side note, this Realtor referral strategy has led to the refinance of thousands of homeowners. This has given Realtors a way to reconnect with past clients and strengthen their client relationships. It's great to know that far past their original purchase they are still looking out for their clients. We are thankful to those agents for helping to strengthen the industry.Continued on the next page