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Moe Bedard · 09-01-2007, 05:49 PM

Here are some comments I recieved on my other blog in regards to the FHA Secure Loan from real estate professionals.

Comments on FHA Secure

Thanks for the update Moe. Makes it easier than reading it in the paper.... Have a great weekend.
09/01/2007 by Joe Manausa - Tallahassee Real Estate

Thanks for the info. I agree that there needs to be something done to help the home owners who are running out of options.
09/01/2007 by Roy Kotz

You know the saying and ounce of prevention is worth a pound or cure. If these and other steps could slow or stem the anticipated tide of forclosures it would be good for everyone and the overall health of the economy. But there should be some very strong strings attached. Maybe, protect them from themselves by not allowing any HELOCs for 2 or 3 years if they are bailed out.
09/01/2007 by Rick Fifer

Moe, I am very confused by this post. You said...Bush's plan would allow risky borrowers to qualify for FHA's mortgage insurance even if they have recently become delinquent, as long as they have relatively sound credit.

I went and clicked on to the link that said FHA secure. I didn't see anything there about this. But just some other topics. 2nd, FHA already allows for less than perfect credit. Now, when you say that they have become delinquent, is that on credit cards? On their current mortgage?

How many times can they be delinquent? I have been doing this for 15 years and what you wrote about, I am confused and can't follow it. I am not trying to sound rude here. Just a fyi....
The last note is that you can go up to 97.75% of the value of the house on a rate and term refinance. I don't think a lot of the problem is just the credit, but the maximum loan amounts. This is what is keeping a lot of people from refinancing.

Lastly, I will disagree in your statement that so many people are blaming those that knew they couldn't afford the house. I guarantee you that there is a certain percentage that did buy a house that they knew they would have problems, but thought things would be better or get better. And to take a risk. Yes, we can blame some lenders on unscrupulous terms and the bait and switch...etc etc. But I know loan officers that told a client that they couldn't afford that house even if they qualified. And those clients said, then I will find someone else to do my loan. My opinion, stop believing the screaming public, because everyone will jump on this band wagon now.
This is just my opinion, but people need to be accountable .... that means lender, loan officer, and even the borrower. now what?

Thanks for the synopsis. I missed the broadcast while on the road to holiday fun.
09/01/2007 by Rosario Lewis

Thanks for the comments. I will post some more information about the FHA Secure Loan highlights of the underwriting guidelines now.
09/01/2007 by Moe Bedard

You're right the real answer is the fix their current loan as the majority won't be able to refinance. The problem is these loans are pooled into securities that are sold to thousands that if tried to change would damage the securities market.

FHA may be launching a new program designed to help "riskier" borrowers than originally it was designed for but HUD publicly tells the public one message but the lender's secondary marketing departments a totally different message (I.E. your delinquencies are too high, you have too many lates, you are going to be put on a watch list due to your delinquencies).
David Kosmecki - AmStar Mortgage

The best place to go to read the information about FHA Secure is HUD's site: www.hud.gov/news/release.cfm?content=pr07-123.cfm
And yes, the program is referring to it being okay if the borrower has late mortgage payments (not credit cards) following an ARM reset.
I am a little confused though as to how a borrower can have good credit with 90 day late mortgage payments. I presume "they" are not referring to a good credit score, but good credit other than the mortgage. However, most borrowers I have seen who have 90 late mortgage payments have many other late pays on other accounts. I agree that the program will probably help few people. Nowhere does the program address the problem of insufficient equity, which is a problem faced by many..

09/01/2007 by Carol Lloyd

Jeff,

I'm sure you know FHA will finance borrowers down in the 500's. Mortgage lates were not allowed under their traditional programs. With the FHA Secure Loan they will now be allowed and I am assuming that everything else will be FHA protocol.

When they become delinquent on their mortgage. It's a clear as day. I'm taking quotes from the President and the President does not know loans or what the hell FHA does. He's just reading a prepared speech and I quoted him in this post. When you're saying you don't understand me, I'm assuming you don't understand the president.

I have also known loan officers myself who told people they couldn't afford their home. But those good loan officer's are far and few between.
I am a homeowner advocate. I'm here to fight for the people and help them stop foreclosure. So, I tend to lean towards helping the people who need help right now. HOMEOWNERS! I don't care who did what even though I may post about it on here and my other websites. I'm here to help find solutions because if we don't then it will affect every Tom, Dick and Harry in this great country! Whether they like it or not.

Moe

Founder & Homeowner Advocate
LoanSafe.org
LoanWorkout.org
951-271-6283 Phone
800-734-8819 Fax
Moe at LoanSafe.org Email

09-01-2007, 05:49 PM	#6 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,604	FHA Secure Loan Comments Here are some comments I recieved on my other blog in regards to the FHA Secure Loan from real estate professionals. Comments on FHA Secure Thanks for the update Moe. Makes it easier than reading it in the paper.... Have a great weekend. 09/01/2007 by Joe Manausa - Tallahassee Real Estate Thanks for the info. I agree that there needs to be something done to help the home owners who are running out of options. 09/01/2007 by Roy Kotz You know the saying and ounce of prevention is worth a pound or cure. If these and other steps could slow or stem the anticipated tide of forclosures it would be good for everyone and the overall health of the economy. But there should be some very strong strings attached. Maybe, protect them from themselves by not allowing any HELOCs for 2 or 3 years if they are bailed out. 09/01/2007 by Rick Fifer Moe, I am very confused by this post. You said...Bush's plan would allow risky borrowers to qualify for FHA's mortgage insurance even if they have recently become delinquent, as long as they have relatively sound credit. I went and clicked on to the link that said FHA secure. I didn't see anything there about this. But just some other topics. 2nd, FHA already allows for less than perfect credit. Now, when you say that they have become delinquent, is that on credit cards? On their current mortgage? How many times can they be delinquent? I have been doing this for 15 years and what you wrote about, I am confused and can't follow it. I am not trying to sound rude here. Just a fyi.... The last note is that you can go up to 97.75% of the value of the house on a rate and term refinance. I don't think a lot of the problem is just the credit, but the maximum loan amounts. This is what is keeping a lot of people from refinancing. Lastly, I will disagree in your statement that so many people are blaming those that knew they couldn't afford the house. I guarantee you that there is a certain percentage that did buy a house that they knew they would have problems, but thought things would be better or get better. And to take a risk. Yes, we can blame some lenders on unscrupulous terms and the bait and switch...etc etc. But I know loan officers that told a client that they couldn't afford that house even if they qualified. And those clients said, then I will find someone else to do my loan. My opinion, stop believing the screaming public, because everyone will jump on this band wagon now. This is just my opinion, but people need to be accountable .... that means lender, loan officer, and even the borrower. now what? Thanks for the synopsis. I missed the broadcast while on the road to holiday fun. 09/01/2007 by Rosario Lewis Thanks for the comments. I will post some more information about the FHA Secure Loan highlights of the underwriting guidelines now. 09/01/2007 by Moe Bedard You're right the real answer is the fix their current loan as the majority won't be able to refinance. The problem is these loans are pooled into securities that are sold to thousands that if tried to change would damage the securities market. FHA may be launching a new program designed to help "riskier" borrowers than originally it was designed for but HUD publicly tells the public one message but the lender's secondary marketing departments a totally different message (I.E. your delinquencies are too high, you have too many lates, you are going to be put on a watch list due to your delinquencies). David Kosmecki - AmStar Mortgage The best place to go to read the information about FHA Secure is HUD's site: www.hud.gov/news/release.cfm?content=pr07-123.cfm And yes, the program is referring to it being okay if the borrower has late mortgage payments (not credit cards) following an ARM reset. I am a little confused though as to how a borrower can have good credit with 90 day late mortgage payments. I presume "they" are not referring to a good credit score, but good credit other than the mortgage. However, most borrowers I have seen who have 90 late mortgage payments have many other late pays on other accounts. I agree that the program will probably help few people. Nowhere does the program address the problem of insufficient equity, which is a problem faced by many.. 09/01/2007 by Carol Lloyd Jeff, I'm sure you know FHA will finance borrowers down in the 500's. Mortgage lates were not allowed under their traditional programs. With the FHA Secure Loan they will now be allowed and I am assuming that everything else will be FHA protocol. When they become delinquent on their mortgage. It's a clear as day. I'm taking quotes from the President and the President does not know loans or what the hell FHA does. He's just reading a prepared speech and I quoted him in this post. When you're saying you don't understand me, I'm assuming you don't understand the president. I have also known loan officers myself who told people they couldn't afford their home. But those good loan officer's are far and few between. I am a homeowner advocate. I'm here to fight for the people and help them stop foreclosure. So, I tend to lean towards helping the people who need help right now. HOMEOWNERS! I don't care who did what even though I may post about it on here and my other websites. I'm here to help find solutions because if we don't then it will affect every Tom, Dick and Harry in this great country! Whether they like it or not. Moe Founder & Homeowner Advocate LoanSafe.org LoanWorkout.org 951-271-6283 Phone 800-734-8819 Fax Moe at LoanSafe.org Email __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.