1. Now What…Understanding the
Recent Industry Changes.
Keeping you updated with the ever changing mortgage industry…
HVCC, MDIA, Condo Guidelines, Credit Scores & Adjustments
Bill Kelly Mortgage Consultant
617-715-9814
bkelly@mortgagenetwork.com
2. Home Valuation Code of Conduct - HVCC
Loan officer can no longer select or influence the selection of the
appraiser for a specific transaction.
Third party professionals can no longer supply information on the
valuation
If the program changes from a Government Loan to non-government
loan, we must order a new appraisal.
No longer receive a courtesy call from appraiser if a potential value
problem exists.
Mortgage Network is managing an in-house appraisal dept.,
allowing us to maintain some control over the process and fees.
We are not going through a third party national company.
Bill Kelly Mortgage Network, Inc. 617-715-9814 bkelly@mortgagenetwork.com
3. Mortgage Disclosure Improvement Act - MDIA
Truth In Lending (TIL)
Once the borrower signs the initial TIL, if any changes need to be made, a new
TIL will need to be signed.
Here’s what can effect the APR:
Last minute changes
Loan Amount
will delay the closing…
Loan Program 3-7 business days!
Closing Date
Closing Costs (Points and other fees)
The loan can be scheduled to close after 7 business days of the signed & received
initial TIL, and 3 business days of the signed & received re-disclosed TIL.
The good news to all of these changes is that the closing
should be smooth, timely and have no surprises.
Bill Kelly Mortgage Network, Inc. 617-715-9814 bkelly@mortgagenetwork.com
5. Condo Financing Today…
If financing an Established Condo:
FNMA owner occupancy is never an issue, if our borrower is
owner occupant.
FHA requires 51% owner occupancy
If financing a New Condo:
project is not completed or subject to additional phasing
less 90% of units sold
HOA has not been turned over to unit owners
70% of total units must be owner occupied
Bill Kelly Mortgage Network, Inc. 617-715-9814 bkelly@mortgagenetwork.com
6. Condo Financing Today
To ensure a smooth and fast closing on your next condo transaction…
Have your clients pre-approved and have the Condo Project
pre-approved through Mortgage Network.
Things to look out for:
Delinquent HOA dues – no more than 15% of total units can be 30 days
or more past due
No owner can own more than 10% of total units
No owner can own more than 1 unit in project of 10 or fewer units
HO6 Insurance is required based on 20% of appraised value. If the master
policy does not insure improvements & betterments (known as “wall-in”
coverage)
Approved Condo Projects Secure Your Commission!
Bill Kelly Mortgage Network, Inc. 617-715-9814 bkelly@mortgagenetwork.com
7. Credit Score Adjustments
Assumptions: Loan Amount $300,000 Term: 30-Year Fixed
Credit Score Rate Point Cost of Points Mortgage with Points Built In
740-850 5.250% 0.00 $0 5.250% $1,656.61
720-739 5.250% 0.25 $750 5.250% $1,656.61
700-719 5.250% 0.75 $2,250 5.375% $1,679.91
680-699 5.250% 1.50 $4,500 5.625% $1,726.97
660-679 5.250% 2.00 $6,000 5.750% $1,750.72
6.000% $1,798.65
540-659 5.250% 2.50 $7,500
6.250% $1,847.15
620-639 5.250% 3.00 $9,000
The difference between having great credit and poor credit can mean a savings of
$190 month for 30 years or $9,000 out of pocket expenses in points.
Other Rate Adjusters (minimums based on FICO Score)
• Condo 0.75 Alternative Options
• 2 Family 1 point FHA Financing
• Tax Waiver 0.25
MassHousing
• Cash-Out 0.25
Bill Kelly Mortgage Network, Inc. 617-715-9814 bkelly@mortgagenetwork.com
8. Did You Know??
If you currently own a property that won’t sell
and you decide to rent it out in order to qualify
for your next home, you will need 30% equity
in the property in order to use the rental income,
if not, you will be required
to carry the entire debt for both properties.
Bill Kelly Mortgage Network, Inc. 617-715-9814 bkelly@mortgagenetwork.com
9. Did You Know??
If you have less than 20% down on a new home
and your debt to income ratio exceeds 41%,
you cannot obtain mortgage insurance.
In this instance, FHA and MassHousing
Programs may be a solution.
Mortgage Network is a direct FHA & MHFA lender!
Bill Kelly Mortgage Network, Inc. 617-715-9814 bkelly@mortgagenetwork.com
10. Did You Know??
If your property has been on the market (MLS) and
has been taken off the market, you cannot obtain a
mortgage on this home for 6 months or greater.
Some of our local investors will provide financing
in this instance, MNI has established relationships
with nearly 20 local investors to provide
solutions for your clients.
Bill Kelly Mortgage Network, Inc. 617-715-9814 bkelly@mortgagenetwork.com
11. Partnerships Are Critical
In these challenging times, when each transaction
takes more time and skill to bring to closing,
it is crucial that the financing be secured by
a knowledgeable mortgage professional
and a strong company.
Your clients can count on US to be sure that they are
receiving the best programs and service available.
Bill Kelly Mortgage Network, Inc. 617-715-9814 bkelly@mortgagenetwork.com
12. You Need One Go-To Lender
To Provide:
Information to keep you updated with industry changes
Solutions to assist in the ever changing market
Professionalism and Service
Experts in underwriting
Credit Analysis and Repair partnerships
Local in-house operations for smooth transactions
Bill Kelly Mortgage Network, Inc. 617-715-9814 bkelly@mortgagenetwork.com
13. Mortgage Network Advantages
Small Company Feel. Big Company Delivery.
Over 20 Years of Stability & Growth.
Local Decisions & Professional Knowledge.
Extensive Variety of Mortgage Products.
Direct Lender Offering Competitive Rates.
In-House Local Processing, Underwriting & Closing.
Approved FHA, VA, MassHousing Lender.
Specialized Lending Divisions: Portfolio, Commercial, Reverse Mortgage.
Bill Kelly Mortgage Network, Inc. 617-715-9814 bkelly@mortgagenetwork.com
