The Orange County Mortgage Blog

The HUD Secretary is expected to announce changes to the FHA mortgage insurance program to curtail defaults. And they won't be loosening up anything.  The changes may include an increase in the minimum credit score for FHA loans from 500, a boost in the minimum down payment from 3.5% to probably a 5% minimum, plus a reduction in the maximum amount of seller concessions from 6% of the home's value to 3%. Experts say monthly insurance premiums charged to borrowers and the current upfront premium -- currently 1.75% of the loan value -- also could be hiked. 

On the Up side, the $8000 Tax Credit for First Time Home Buyers will Remain unchanged, yet expire in April 2010. So Hurry and get Pre-Approved before HUD changes the Tax Credit program too!!

It's hard to keep track of all the acronyms flying around the mortgage industry these days - HAFA is the Newest Acro:  Home Affordable Foreclosure Alternatives. The Treasury released details of the HAFA program to servicers. It was originally announced in May, and this refinement includes the general terms and conditions, evaluation process, documentation, and reporting requirements. The program will be effective April 2010 and servicers already participating in HAMP will be required to follow the Treasury's guidance. The program standardizes eligibility for short sales, available to borrowers who meet HAMP eligibility requirements but do not qualify for or complete the 3 month Trial Period Plan.

"Upon the successful closure of a short sale or deed-in-lieu through the program, incentives of $1,500 in relocation assistance to the borrower, $1,000 in expense reimbursement to the servicer, and up to $1,000 in investor reimbursement for subordinate lien releases will be provided." And servicers have some leeway to create their own policies.

Although there was little volatility in the stock market yesterday, interest rates crept higher. Analysts are carefully following the spread between mortgage rates and Treasury rates: it has become historically narrow in recent weeks but now seems to be widening out, which is bad news for mortgage prices. Secondary folks get calls from agents saying, "Dude, the 10-yr is unchanged, but you made your pricing worse by .125. You have a Mercedes payment coming up or what??"

And Now, what you all skimmed down to get to;  Some of the New Tiger Woods Jokes popping up all over the Internet................

• Phil Mickelson called Tiger's wife to get advice on how to beat Tiger with a golf club.
• Apparently the police asked Tiger's wife how many times she hit him. She said "I don't know exactly, 4, 5, maybe 6 times...but put me down for a 5."
  What's the difference between a car and a golf ball? Tiger can drive a ball 400 yards.
• Ping just offered Elin Woods an endorsement contract pushing her own set of drivers. They are said to be named Elin Woods...."Clubs you can beat Tiger with."
• News travels fast. The Chinese are already making a movie about Tiger Woods' crash.
  They are calling it, "Scratching Swede, Lying Tiger.
• Tiger just changed his nickname but still kept it in the cat family. His new name? Cheetah.