Mortgage Guide

Mark B asked:

I hear Bush vetoed bills that caused our economy to slow down, name the bills the the dems proposed tho stimulate the economy,lower fuel prices by possilbly drilling here?. Also name the bills the Bush vetoed to cause the sub-prime mess?.Fuel prices killed our economy and the dems are doing nothing to help us tap into our own natural resources.

Question posted courtesy of: Jeanette

James H asked:

A decade ago the mortgage underwriting standards were pretty simple: 10% minimum down; P&I not to exceed 25% of your net income, 35% of your gross income.

Is anyone that does not meet these traditional metrics considered a sub-prime borougher?

Or is there some “new and improved” underwriting standard?

I’ve heard a number of different explanations about what a sub-prime borougher is. I’ve heard things like FICO scores below 600 or below 500. Or boroughers with a history for bankruptcy. I’ve heard boroughers that qualify on stated income.

I am just curious because it seems that this definition is key for estimating how deep the housing correction will be. If the definition hinges on the traditional underwriting standards, then there is a whole lot more correcting in the future.

Question posted courtesy of: Joshua

artofficialfaux asked:

My mortgage is a traditional 30-year fixed, with no prepayment clause, and was just sold to another mortgage company (the one in question). I recently setup my personal bank account to autopay (EFT) 1/3 of my mortgage bill every week. I did this to reduce accruing interest, and pay a little extra to principle each month. My mortgage company called and said they will not apply my partial payments - they put the funds into a ‘Suspense’ account until the value of partial payments reaches the monthly statement amount.

BUT (here’s the kicker), if I sign up for the mortgage company’s own accelerated pay schedule they will let me make bi-weekly payments.

I thought that if one has a loan, the lessor has to accept and APPLY funds they receive (unless there is a prepay clause). Are they allowed to hold my funds like this and not apply them to the balance? Does this fall under some usury law?

Any mortgage brokers out there? Help!!!

Thanks in advance!

Question posted courtesy of: Glen

tomg asked:

[Please answer this question only if you are a mortgage professional, an MBA, a real estate professional, or someone in a similar profession who is very familar with mortgages]

I’m currently an assistant to a mortgage broker and I was very lucky to have worked with one of the ethical mortgage brokers though I will admit that sometimes he over stated some asset figures. I’m not too happy about that–but he would give his clients the best mortgage terms on the cheapest basis. i.e. he didn’t charge them points when he didn’t need to.

However, I’m hearing that the mortgage broker industry may end next year due to the alledged plans of several large banks like BofA (already did it), WAMU, Wachovia, Citi, Indy Mac, Wells, and so on. I’ve also noticed that these major banks are starting to expand their retail divisions thus making me believe that pretty soon we are aheaded towards a direction where mortgage brokers will become no more.

Does anyone else out there believe this to be so?

Question posted courtesy of: Jay

J.R. M asked:

I’m not familure with this sub-prime mess that is going on with mortages these days. Can someone explain this to me? Thanks.

Question posted courtesy of: Lydia

Deadman asked:

I want to make sure I have tried everything before the ship sinks. Stay off your soap box please, knowone was there 2.5 to 3 years ago saying anything other than, “Do what ever it takes to get in a house now.” That even means accepting one of these crappy Sub-Prime loans.

Question posted courtesy of: Allen