#TwoforTuesday – Home Owners Protection Act was technically updated with Fannie Mae’s recent announcements pertaining to the cancellation of MI. There are several ways MI can be cancelled. Either there’s lender initiated cancellation of MI, or Borrower initiated cancellation of MI. And when the borrower cancels it can be based on current value or the original value. I go over some of the changes that took place and go into effect on Jan 1, 2019.
The best part I see is FNMA spells out the process, provides the forms and the links to order value etc. Also, if there is original value being used they are now allowing the use the APS (Automated Property Service). The same system that issues the PIW’s that you could be getting with files can validate a value to be used to cancel MI now. This is great use of technology. BUT – Big but – FNMA does have some read between the lines guidelines on this whole cancellation policy. I go over the nuances in today’s episode.
As always I’m here to help you know the guidelines and help you close more loans. #LetsDoBusiness – If you have an “I gotta guy” question, TEXT Juiceman to 33655! I’d be happy to help you today!
As always –
#TwoforTuesday – HOPA to the rescue! PMI or Private Mortgage Insurance is a good thing, and explaining to clients how it works, what it’s for, and how it can be cancelled afterwards is all apart of making yourself stand out!
This comes in good timing as rates are going up, and Home Possible and Home Ready programs are more attractive as a result. In my group Sales Talk with Mortgage Pro’s, a seasoned LO, asked for a price check across the board and asked over 4000 people what their price was for a 30 yr fixed, 80 LTV. As a result I priced my own and found these two programs a potential “angle” they could pitch. The crowd loved it, and then PMI came up. One has it and one doesn’t. Well there’s advantages and disadvantages to this, in fact PMI is tax deductable up to a certain income bracket still. (married 109k or single 54k). Today I go over the two ways PMI can be cancelled to help you LO’s be able to explain how it works as a viable option to your clients.
Two for Tuesday – Give your clients options, a Government option and a Conventional with PMI option. Look at saving them money in the bank and using the Home Ready or Home Possible options, then explain PMI to them. As a result (assuming they qualify) this can help you stand out as the professional.