“What greater thing is there for two human souls than to feel that they are joined…to strengthen each other…to be one with each other in silent unspeakable memories.”

“What greater thing is there for two human souls than to feel that they are joined…to strengthen each other…to be one with each other in silent unspeakable memories.”

~George Eliot


 We have had some good success with the small amount of appraisal rebuttals that have already gone through the RPM Appraisal System.  We recently had a appraisal come in less than purchase price where upon the loan agent submitted the appraisal to the Bank, after review, the Bank lowered the sales price to the appraised value.  We have also had success with “meeting in the middle” where both the appraiser, myself and the realtor provided information to come to a mutually agreed upon price.  In some smaller instances the value has also remained unchanged.   The best advice here is the more information the better as I do review the appraisal, review all the supplied information and then write a rebuttal to the appraiser if the information does have merit.  Upon writing a rebuttal to the appraiser, they acknowledge receipt of the information and then offer their opinion.  The appraisers are all trying to work with RPM and all have been very cooperative.  Please also remember, if you or your borrower are still unsatisfied after this process has been exhausted, you can order a new appraisal.  Another good idea is to have the realtor bring comparables to the inspection date as they are one of the few people that can still talk about value with the appraiser. Attached is the RPM Appraisal Review Process form which can be used to rebut an appraisal.  Please fill out the information and send back to me and I will review the attached data.  Thanks for all your help and patience as RPM Appraisal tries to make this system most beneficial to you.


When is the best time to add insult to injury?  When you’re signing someone’s cast. What some may feel is along the same lines, do you remember how the former Countrywide Financial president formed PennyMac Mortgage last year to buy troubled home loans and related securities? And how people in the business cried foul: “First they originate the stuff, then give the mortgage business a bad name, and now they’re buying their loans back at 10 cents on the dollar?” Well, soon you may be able to buy stock in them. On Friday they filed with the SEC to sell as much as $750 million in stock to the public. PennyMac Mortgage Investment Trust would make some of its investments under a federal plan to offer financing to buyers of toxic mortgage assets from banks, the filing says.


Flagstar reminded their customers that “FHA has extended the temporary property flipping waiver that allows lenders and the property disposition firms they hire (or with whom they are affiliated) to sell properties on which they’ve foreclosed without regard to FHA’s 90-day seasoning requirement. The waiver is in effect for loans with purchase agreements signed by the borrower and seller on or before May 10, 2010. Individuals or entities that purchase foreclosed homes are not exempt from the 90-day seasoning requirement. When the property seller is not exempt from FHA’s seasoning requirement, the borrowers may not execute the purchase agreement before the 91st day after the seller acquired the property. FHA requires a second appraisal when a property is being sold within 180 days of the seller’s

acquisition date and the sales price is more than 100% greater than the seller’s acquisition cost. This applies to all FHA purchases, including transactions where the seller is permanently or temporarily exempt from FHA’s 90-day seasoning requirement.” For additional information, refer to the FHA Mortgage Letter 2006-14 – Property Flipping Prohibition Amendment.


Flagstar also changed the pricing on all table-funded government loans with properties located in North or South Carolina to reflect a hit of 10 basis points.


Lastly, on June 5th Flagstar will limit eligible manufactured home transactions to rate and term refinances of loans currently serviced by Flagstar Bank. Purchase, cash-out refinance transactions; or rate/term refinances of non-Flagstar serviced loans will be ineligible. This change applies to all products where a manufactured home is an eligible property type. Pipeline loans outside of these guidelines must be locked prior to Friday, June 5th.


AgFirst announced that they will not be able to purchase loans originated under the DU ReFi Plus program when the previous loan has active Mortgage Insurance (MI) and is NOT currently being serviced by AgFirst. Per AgFirst, “The MI companies have not yet clearly defined operational procedures for the transfer of the MI from one servicer to another.   The servicer that originates the refinance (AgFirst) would be held responsible for the transfer of the MI to the new loan.  With the uncertainty in procedure and the absence of uniformity, the risk is too great.”


Union Bank of California, where many brokers have turned for jumbo product, reminded their brokers that their investment property financing, for purchase or no cash out refinance, has no restrictions on the number of properties owned or financed. “Union Bank will finance up to 3 investment properties for the same borrower  Loan amounts up to: 1 unit $750,000, 2 units $1,100,000, 3 and 4 units $1,500,000. Available on all programs, Interest Only or amortizing, including the Two Step Mortgage.”


Franklin American came out with their High Balance conforming loan limits originated under Fannie Mae’s Temporary High-Cost Area Loan Limits. An Addendum to the Conforming Fixed Rate provides underwriting criteria and loan parameters as allowed by FAMC. As with other investors, the list can be seen at http://www.fhfa.gov/webfiles/2082/HighCostLoanLimits2009_ARRA.xls Underwriting by FAMC is required on loans for lenders with delegated underwriting authority less than $650,000, and on all loans having loan amounts > $650,000 regardless of lenders delegated authority. Lenders should refer to their most recent FAMC approval letter to confirm their delegated underwriting loan limits.


So here we are, on a Tuesday that every year feels like a Monday. We have Treasury auctions today, tomorrow, and Thursday. Today we also have a series of “soft” economic releases: S&P/Case-Shiller housing index, Consumer Confidence, Richmond Fed, and so forth. Tomorrow and Thursday we’ll see Existing Home Sales and New Home Sales. Durable Good comes out Thursday, and on Friday we finish the week with GDP and the Chicago Purchasing Managers Index. Prior to this we find the 10-yr at 3.41% and mortgage security prices better by a shade.



Let’s ease into the week with some puns:

No matter how much you push the envelope, it’ll still be stationery….

A dog gave birth to puppies near the road and was cited for littering….

A grenade thrown into a kitchen in France would result in Linoleum Blownapart….

Two silk worms had a race. They ended up in a tie.

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