Texas Home Loan Blog: February 2008

I got notice late yesterday that beginning March 1st, loans above 97.01% will no longer be eligible for PMI.

3% down payment may be the name of the game going forward.... and FHA Loans have never looked so sexy!!

Monthly PMI on Gov't loans is 1/2 of what you are charged on conventional loans. Yet, many consumers have opted for 100% financing because they do not have money for the down payment. Not to be confused with the client who 'elected' 100% Financing, these people who are paying twice as much for PMI are doing so for a reason. They simply cannot put any of their own money down on a real estate transaction. And that lack of cash reserves equates to more people walking away from their mortgage obligations when times get tough.

See the full text letter from PMI Mortgage Insurance Company.
http://www.pmi-us.com/guidelinechanges/media/pmi_miguidelinechangesltr.pdf

Is this the end? The good old days are over? Well, that remains to be seen..... but it looks like the PMI companies are tired of paying off when homeowners simply walk away from their obligations.

Other changes include reduced Loan-to-Value (LTV) for reduced documentation loans and loans for homes in Declining Markets.

Stay tuned for future developments!!!

Tom Burris
DallasLoanGuy.com
Dallas, TX

"A Home Loan for Every Texan"

http://www.dallasloanguy.com/


Texas Home Loans

I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!! Subscribe to My Blog and stay informed about current lending changes!!

One thing that I haven't seen in the comments is that with the Federal Govt not going after people who get foreclosed on for capital gains.... has made it easier for people to walk away. <= The banks call it "Jingle Mail" when their borrowers just mail in the keys!!!

A while back I informed my friends here that Maverick Residential Mortgage had shut his doors.
I appreciate all of the kind words of support from those who called or wrote me with words of encouragement.

In recent days I have taken many phone calls from hiring managers and recruiters and was flattered by the offers. One company who didn't call was PrimeLending. Prime doesn't recruit.... Good loan officers seek them out on their own. I spoke to many loan officers about the biz and was pretty much assured that my thinking was sound. PrimeLending is the place to be!! They have awesome technology and support. They are truly a Loan Officer's Company..... And just what I was looking for.

I already have a couple of loans in processing and have been very pleased about their processes. Let me tell you a little about them.

Since 1986, PrimeLending, a PlainsCapital Company, has been helping thousands of families finance their homes.  Through our commitment to high quality customer service and quick and careful action, we have created clients for life. 
PrimeLending, a PlainsCapital Company, is one of Texas' largest Mortgage Bankers. Established in 1986 by Roseanna McGill, PrimeLending has secured the respect of mortgage professionals nationwide and is committed to providing the cutting edge of loan products.
Since its inception, the company has grown from producing $80 million
annually in mortgage loans with a staff of 20 to over 500 employees originating $2.2 billion in production. In addition to the corporate office located in North Dallas, PrimeLending has expanded to several branches around the United States including Louisiana, Colorado, and Missouri.
PrimeLending takes pride in being a premier lender that offers a wide array of loan products which cater to the specific needs of each individual, including fixed rate conventional mortgages, adjustable rate mortgages, JUMBO loans, FHA and VA loans, interim and permanent construction financing, relocation programs and refinances. 

I made my decision to join Prime over a week ago, but as it is with large companies I was subjected to the long H.R. processes that included background checks and all that jazz. So I have only been in the door for about a week. But I am thrilled at the possibilities! Although I consider myself a pretty good loan officer, I really think that I can learn and grow with these guys.

For my Realtor Partners.... I offer pre-approvals with the PrimeLending name on the top. I doubt that you will ever get challenged by a listing agent whether that pre-approval is "as good as the paper it is written on".... ;-) Prime carries that much respect in this industry.

I look forward to a wonderful 2008 and wish all of my friends here the same.

Tom Burris
DallasLoanGuy.com
Dallas, TX

"A Home Loan for Every Texan"

http://www.dallasloanguy.com/


Texas Home Loans

I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!! Subscribe to My Blog and stay informed about current lending changes!!