Wells Fargo Refinance Investment Property – Home Affordable Financing Programs Customer Training Presentation This training course will last approximately 15 minutes. Information is accurate as of date of publication and subject to change without notice.
Overview | Freddie Mac Relief Refinance Mortgage| DU Refi Plus | Resources What is the Home Affordable Refinance Program? President Obama originally announced the Affordable Home Refinance Program on February 17th to help customers who are making mortgage payments, but home values have declined to the point where they may no longer be eligible for traditional refinancing products. Loans must be funded and closed by June 10, 2010. President Obama originally announced an affordable home refinance program on Feb. 17 to help customers who are making mortgage payments, but home values have declined to the point where they may no longer be eligible for traditional refinance products. These loans must be funded and closed by June 10, 2010.
Wells Fargo Refinance Investment Property
Home Affordable Refinance Program Overview | Freddie Mac Relief Refinance Mortgage| DU Refi Plus | Resources Freddie Mac Relief Refinance MortgageSM The two programs that will be rolled out wholesale are Freddie Mac Relief Refinance Mortgage and DU Refi Plus. Freddie Mac Relief Refinance Mortgage 3 is the first program we cover
Wells Fargo Active Cash Card Review: 2% Cash Rewards With No Annual Fee
Home Affordable Refinance Program Overview | Freddie Mac Relief Refinance Mortgage| DU Refi Plus | Resource Eligibility Report Wells Fargo Version Freddie Mac Relief Refinance Mortgage Investor Original Investor: Must Sell to Freddie Mac Freddie Mac Servicer Must Serve WFHM Loan Purpose Term Refinance Application Process Complete Application Completed by All Borrowers First® by Note Broker in program FHLMC subscription to FHLMC Options Enhanced Broker No desk financing allowed Broker not allowed Outside contract UW not allowed Automated underwriting Send loans via Direct Express to avoid rate adjuster; minimum messaging will be provided. Eligibility Review: Original investor was Freddie Mac and must be sold to Freddie Mac. The loan is payable by Wells Fargo Home Mortgage. The purpose of the loan is to refinance the rate/term. The note must contain a complete application completed by all borrowers. Broker’s First selection program options vary from FHLMC to FHLMC. Advanced broker, desk funding broker and outside contract collateral are not allowed. Send your loans through Direct Express to avoid the price adjuster; minimum messaging will be provided
Home Affordable Refinance Program Overview | Freddie Mac Relief Refinance Mortgage| DU Refi Plus | Fund Eligibility Overview (continued) Wells Fargo Freddie Mac Relief Refinance Mortgage Products Fixed: 15, 20, 30 LIBOR ARM: 5/1, 7/1, 10/1 Cannot refinance from fixed rate to ARM product Amortization Fully amortized interest Single payment feature not allowed Property Types Single Family Residential Multi Family Residential Condo Coop PUD Occupancy Primary and Investment (1-4 units) Secondary (1 unit) Limit on Number of Properties Financed (See Brokers Guide Section 201) Must be the same occupancy as the original loan , except if the transition from the second home or investment to the first home is allowed. Products include 15, 20 and 30 year fixed; LIBOR 5/1, 7/1 and 10/1 ARMS. The I/O payment function is not supported. Permitted property types are: single-family and multi-family homes, condos, cooperatives, and PUDs. Occupancy types include: 1-4 primary and investment units and 1 secondary unit. Financial holdings are limited – see Section 201 of the Broker Handbook for guidelines. The occupancy must be the same as the original loan, except that a change from a second home or investment property to a primary home is allowed. 5
Home Affordable Refinance Program Overview | Freddie Mac Relief Refinance Mortgage| DU Refi Plus | Resource Policy Review Wells Fargo Version Freddie Mac Relief Refinance Mortgage Max. LTV/CLTV 105% LTV Unlimited TLTV/CLTV Debt-to-Income Ratio No maximum, except as follows: 45% if new P&I is 20% more than existing P&I payment if P&I does not increase or decrease by more than 20% and DTI > 50%, you will need to determine job/income stability. Determine if the borrower has had a job loss or a drop in income in the last 6 months; Without losing your job or reducing your income, make sure you meet all the program’s guidelines for your Loan score and other credit requirements. Other than minimum loan score: 620 minimum loan score P&I 20% > current P&I standard credit policies do not apply. Borrower cannot currently be involved in bankruptcy or foreclosure proceedings Max LTV is 105%. TLTV/CLTV is unlimited. There is no maximum DTI allowance except: 45% maximum DTI if the new P&I is 20% more than the existing P&I payment. If P&I does not increase or decrease by more than 20% and DTI by >50%, you will need to determine job/income stability. Determine if the borrower has had a job loss or a drop in income in the last 6 months; If there is no job loss or reduced income, make sure all program guidelines are followed. There is no minimum credit score requirement except: if the P&I is 20% higher than the current P&I. does not apply The borrower cannot currently participate in bankruptcy or foreclosure proceedings. 6
Home Affordable Refinance Program Overview | Freddie Mac Relief Refinance Mortgage| DU Refi Plus | Resource Policy Overview (continued) Freddie Mac Relief Refinance Mortgage Season Terms Wells Fargo. 3 Month Requirements: The date of the original mortgage note must be at least 3 months prior to the date of the new mortgage note. Maximum loan amount The new loan amount is limited to: the actual repayment amount of the first mortgage balance, including accrued interest; actual closing costs, financing costs, down payment and escrow up to $2,500; Borrower may not receive money at closing Cost Example Amount: $229,545 Closing Costs, Etc.: $2,496 Maximum Loan Amount: $232,041 3 month grace period required. The original mortgage date must be at least 3 months before the new mortgage date. The amount of the new loan is limited to: the actual repayment amount of the original mortgage balance, including accrued interest. Actual closing costs, financing costs, down payments and transactions up to $2,500. The borrower may not have received any money at closing. Let’s look at an example: if the amortization amount is $229,545 and the actual closing costs are $2,496, then the maximum loan amount will be $232,041, the sum of the amortization amount and the actual closing costs. 7
Housing Briefs: Wells Fargo Denied Most Refinance Apps For Black Homeowners
Home Affordable Refinance Program Overview | Freddie Mac Relief Refinance Mortgage| DU Refi Plus | Resources Credit Policy Review Wells Fargo Version Freddie Mac Relief Refinance Mortgage Mortgage Insurance Note: Old loan MI coverage will apply to new loan If existing loan does not have MI coverage, new loan does not require MI. If the existing loan has mortgage insurance, that loan cannot be refinanced under this program. Other features/restrictions One loan per creditor. No new borrowers can be added. Loan modifications accepted for death or divorce: Death or divorce papers. Proof that the remaining borrower has made mortgage payments, including payments on any secondary financing. period of the last 12 months The policy is valid for several financed properties The policy is not applicable to loans with a period of less than 12 months. Investment properties require rental loss insurance under standard guidelines. Let’s look at the mortgage insurance requirements for these loans. If the existing loan does not have MI coverage, no MI is required for the new loan. If the existing loan has mortgage insurance, the loan is not currently eligible for refinancing under this program. Other features and limitations include: A recipient can receive only one HARP loan. No new borrowers can be added. Loan Modification Accepted for Death or Divorce: In addition to proof that the remaining borrower has made mortgage payments, including secondary financing payments, documentation of death or divorce for the past 12 months is required. . The policy applies to various financed properties The policy does not apply to loans with a maturity of less than 12 months. Investment properties require rental loss insurance under standard 8 guidelines
Home Affordable Refinance Program Overview | Freddie Mac Relief Refinance Mortgage| DU Refi Plus | Resources Credit Policy Overview (cont.) Freddie Mac Wells Fargo Version Relief Refinance Mortgage refinance is not a new or replacement refinance. Existing subordinated financing must be re-subordinated, repaid or repaid with the borrower’s own funds. If paying with own funds, ownership documentation is required. The balance does not need to be increased for secondary financing. Secondary financing must meet standard guidelines. See Article 221 of the Broker’s Handbook. Secondary Financing New or replacement subordinated financing is not permitted. Existing subordinated financing must be re-subordinated, repaid or repaid from the borrower’s own funds. If paying with own funds, ownership documentation is required. Secondary financing must not increase the balance. It must meet standard secondary financing rules. See Article 221 of the Brokers’ Handbook. These can be Current Payment Assistance (DAPS) loans
Wells fargo home refinance, wells fargo refinance loan, wells fargo heloc investment property, wells fargo mortgage rates investment property, wells fargo investment property loans, wells fargo heloc on investment property, wells fargo investment property loan rates, heloc for investment property wells fargo, wells fargo refinance application, wells fargo investment property refinance, wells fargo investment property refinance rates, wells fargo mortgage investment property