Loan Mod? No Problema.

Interesting, from <a href="http://www.pmi-us.com">www.pmi-us.com</a>:

<blockquote>For properties in California: Minimum 720 Credit Score; Maximum 90% LTV - 1 Unit/Maximum 85% LTV - condo & co-ops; Maximum Loan Amount

$417,000 ($625,000 for HI); and Maximum 45% DTI</blockquote>


And:

<blockquote>The following are not eligible for mortgage insurance:



Attached housing (condominiums,

attached PUDs, 2-4 units, co-ops,

townhomes and rowhouses) in

the state of Florida



ARMs with an initial fixed period

of less than 5 years



Interested Party Contributions

greater than 3%



Manufactured housing



2- to 4-unit properties



Reduced Appraisal Forms



2055 Exterior only, drive-by

inspections, Property Inspection

Waivers (PIW)/Alternatives (PIA)



Credit scores less than 700



LTVs greater than 90%



Loans with DTIs greater than 45%



Third Party Originations



Loans with an EA-III

recommendation from Desktop

Underwriter?



Cash-out Refinances



All loans for Arizona, California,

Florida, Hawaii, Maryland,

Michigan, Nevada, New Jersey

and Rhode Island properties

that have:

? Credit score less than 720;

? Loan amounts greater than the Conforming Loan Limit

? DTIs greater than 45%;

? LTVs exceeding 90%

? LTVs exceeding 85% for condos and co-ops



Interest-only loans



Limited documentation



Investment property



Second home



Borrowers with nontraditional credit



Construction-to-permanent loans



Potential negative amortization mortgages



Scheduled negative amortization loans



Option Payment mortgages</blockquote>


Anyway, it appears that USCTrojanCPA is correct even though his football team lost to the University of Washington. In my earlier example, I assumed 10% down on a $500k purchase which would leave the PMI company on the hook for a total of $50k.
 
[quote author="Nude" date=1253540396][quote author="USCTrojanCPA" date=1253530508]I thought PMI is only on the hook for all the losses up to 80% of the previous value (i.e. if someone puts 10% down then PMI will only cover a 10% loss).</blockquote>


That may be correct. Since we did the 80/20 (and paid off the 20 within the first 12 months) I don't have direct experience with it. Maybe someone else knows for sure.



Sorry about that whole "UW knocked USC out of the top 10 in the AP Poll" thing... that had to hurt.</blockquote>
Love pouring salt on an open wound, eh? haha
 
[quote author="USCTrojanCPA" date=1253546394][quote author="Nude" date=1253540396][quote author="USCTrojanCPA" date=1253530508]I thought PMI is only on the hook for all the losses up to 80% of the previous value (i.e. if someone puts 10% down then PMI will only cover a 10% loss).</blockquote>


That may be correct. Since we did the 80/20 (and paid off the 20 within the first 12 months) I don't have direct experience with it. Maybe someone else knows for sure.



Sorry about that whole "UW knocked USC out of the top 10 in the AP Poll" thing... that had to hurt.</blockquote>
Love pouring salt on an open wound, eh? haha</blockquote>


It's actually nothing personal, I'm just sick of the "USC has really gone downhill" meme coming from the civilized world. Last year UW was beset by injuries, but aside from one or two true freshmen, this is mostly the same team... they gave LSU a run for their money, they beat Idaho, and their defense made USC's offensive (and defensive) problems glaringly obvious. We'll see how the season turns out, but I'm thinking that the Pac-10 will realize that this win wasn't a fluke by the time the Cal game rolls around on 12/5.



Still, the undeafeated team in town... is UCLA. *puts away the salt shaker*
 
[quote author="Nude" date=1253547967][quote author="USCTrojanCPA" date=1253546394][quote author="Nude" date=1253540396][quote author="USCTrojanCPA" date=1253530508]I thought PMI is only on the hook for all the losses up to 80% of the previous value (i.e. if someone puts 10% down then PMI will only cover a 10% loss).</blockquote>


That may be correct. Since we did the 80/20 (and paid off the 20 within the first 12 months) I don't have direct experience with it. Maybe someone else knows for sure.



Sorry about that whole "UW knocked USC out of the top 10 in the AP Poll" thing... that had to hurt.</blockquote>
Love pouring salt on an open wound, eh? haha</blockquote>


It's actually nothing personal, I'm just sick of the "USC has really gone downhill" meme coming from the civilized world. Last year UW was beset by injuries, but aside from one or two true freshmen, this is mostly the same team... they gave LSU a run for their money, they beat Idaho, and their defense made USC's offensive (and defensive) problems glaringly obvious. We'll see how the season turns out, but I'm thinking that the Pac-10 will realize that this win wasn't a fluke by the time the Cal game rolls around on 12/5.



Still, the undeafeated team in town... is UCLA. *puts away the salt shaker*</blockquote>
You forget Nude, I'm also a UCLA alum so I'm happy to see the Bruins do well.
 
There is a new anecdotal story about a loan mod on <a href="http://www.cotohousingblog.com/?p=4853">Coto Housing Blog.</a>
 
From CR:









<em>"When the Obama administration began its $75 billion Making Home Affordable program in March, it said the plan would spare as many as four million households from foreclosure. On Thursday, Treasury announced that 500,000 homeowners had since had their payments lowered on a trial basis, celebrating this as a milestone.



But the report from the oversight panel directly challenged the administration?s characterizations.



Most prominently, the panel had grave uncertainty about whether large numbers of the trial loan modifications ? which typically run for three months ? would successfully be converted to permanent terms.



As of the beginning of September, only 1.26 percent of trial modifications that had made it through the three-month trial period had become permanent, the report found. Of course, very few of those trial loans had reached their three-month expiration because the program only recently began processing large numbers of applications. As of Sept. 1, the Obama plan had produced 1,711 permanent loan modifications."</em>
 
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