TurnKey Mortgage Solutions Weekly Update

Changes for Ordering Appraisals Coming May 1, 2009

Fannie Mae and Freddie Mac have agreed to adopt the Home Valuation Code of Conduct for all conventional, single-family loans originated on or after May 1, 2009.For purposes of the Code, origination date means the date of the application.

Note that this requirement is for Fannie Mae and Freddie Mac loans with applications signed on or after May 1, 2009.   After this date, all appraisal must be ordered directly from the lender so that no communication between broker/banker and appraiser "can taint the appraised value."  Please be aware that because this will be a new process for all involved, turn times for appraisals may be delayed.  Please consider this when determining appraisal contingency periods for contracts written on or after the 1st of May.

 

Jumbo Conforming Now Available

Announced in early March through the American Recovery and Reinvestment Act of 2009, higher loan limits are now available in high cost areas.  Based on the median home price, many counties in Northern California meet the requirements to be eligible.  Lenders are now able to offer loans up to $729,750.  For conventional loans, those guaranteed with Fannie Mae and Freddie Mac, a 10% down payment is required.  For FHA loans, as little as 3.5% is required.

 

 

Mortgage Rate Update*
Rates as of Tuesday, April 7, 2009: 

                          Conforming       APR       Super/Conf         APR   
30-Year Fixed       4.625%          4.81%          5.00%          5.21%
15-Year Fixed       4.375%          4.48%          4.625%        4.78%
5 Year Fixed         4.375%          4.44%          5.75%          5.47%
FHA                      5.000%           5.06%          5.50%          5.59%
*Rates are subject to change due to market fluctuations and borrower's eligibility.