Don's Missouri Real Estate Musings

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Mortgage information

MHDC News 4/13/2011:

Allowable Mortgage Fees:

The following changes to the allowable mortgage gee guidelines are effective April 15, 2011 for all new mortgage reservations:

Second Mortgage Fee

  • Currently a $175.00 “Servicing” Fee is required to be charged on all second mortgages.  As of April 15, 2011 this fee may no longer be charged on new reservations.

 

Purchase Review Fee

  •  As of April 15, 2011, an $85.00 “Purchase Review” fee must be collected on each first mortgage.  The fee will be collected by MHDC’s master servicer upon purchase of the mortgage.

 

Application/Processing Fee

  •  As of April 15, 2011, originating lenders may charge an “Application/Processing” fee of up to $350.00 on each first mortgage.  If the fee is charged, the originating lender must provide documentation to MHDC verifying that the fee was an “Application/Processing” fee.  Only a joint “Application/Processing” fee is allowed, not a separate “Application” and/or “Processing” fee.

 

Minimum Credit Score

 The following minimum credit score policy is effective for all new mortgage reservations as of April 15, 2011:

MHDC loan recipients (CAL and Non-CAL) must have a minimum credit score of 620;  MHDC will allow loan recipients with credit scores <620 if the back-end debt-to-income ratio does not exceed 31%.  MHDC will not purchase loans wit a FICO <620 if the back-end debt-to-income ratio is >31% at the time of origination.

All loans must be originated and underwritten in compliance with FHA, VA, RD, FNMA or FHLMC guidelines, which may have a minimum credit score requirement greater than 620.

Mary Goldkamp

US BANK

636-795-2515

Mary.goldkamp@usbank.com

http://mtg.usbank.com/mary_goldkamp

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