The Ryan Mortgage Team

Atlanta Mortgage Lender

admin — Sun, 27 Feb 2011 06:53:49 +0000

Our Team

World-class service. No hassle closings. Expert advice. Unbeatable rates. The Ryan Mortgage Team at Envoy Mortgage (formerly Primacy Mortgage) is comprised of mortgage experts who are there to provide you with intelligent answers in a timely manner. We are a mortgage banker based in Peachtree Corners Georgia. Our team is the #1 rated Atlanta mortgage lender according to Kudzu.com.

Tara Ryan is our lead Mortgage Consultant. As one of the top 20 originators in Georgia in 2008 and 2009 as ranked by the Atlanta Business Chronicle, Tara is well versed in every conceivable mortgage lending scenario. Each loan that is closed by The Ryan Mortgage Team is closely analyzed by Tara. She holds an MBA from Emory’s Goizueta Business School and an undergraduate degree is in electrical engineering from Georgia Tech. As a mortgage banker with Envoy, Tara is able to deliver a high level of expertise and customer service to her clients.

Richard Ryan, also an Electrical Engineering graduate of Georgia Tech, is is the branch manager for Envoy’s Peachtree Corners Branch. Richard is a renovation mortgage specialist and lends his expertise on all of our FHA 203k renovation mortgages. He has also developed technology which ensures that we operate at peak efficiency in an effort to keep our rates as low as possible without sacrificing customer service.

Our Company

Envoy Mortgage is a Mortgage Bank with an incredibly experienced staff offering expertise in all areas of mortgage lending. As a mortgage bank, Envoy Mortgage controls the entire loan process from the initial application all the way through the delivery of the loan into the secondary market.

We are able to ensure an accurate and faster closing process because each step occurs in-house – processing, underwriting, closing, funding, shipping and secondary marketing. Because we control the entire process, there are limited surprises for our loan officers, borrowers and banking partners.

Envoy Mortgage has direct endorsement authority from the Federal National Mortgage Association (also known as “Fannie Mae”) as well as the Federal Housing Administration (also known as “FHA”).

FHA Proposes Limiting Seller Concessions from 6% to 3%

admin — Mon, 07 May 2012 19:54:14 +0000

This dates back to the summer of 2010, but it looks like the wheels are in motion to implement a change. The bad news is that there will be a new lower cap on seller concessions (seller contributions). The good news is that it will not be a hard reduction in seller contributions from 6% to 3%. The new cap will be the greater of 3% or $6000. This is being done in an effort to avoid negatively impacting lower dollar homes. Example: On a $150k purchase, the limit on seller contribution is the greater of 3% ($4500) or $6000. In this case $6000. On a $250k purchase, it’s the greater of 3% ($7500) or $6000. In this case, $7500.

This is not official at this point and there is not a date set for implementation, however HUD has taken the next step of publishing their intent to the federal register. I would expect this to go into effect sometime in the next 12 months.

FHA Underwriting Changes

admin — Fri, 02 Mar 2012 16:11:21 +0000

FHA just released a new mortgagee letter 12-03 which has 3 important changes:

Self Employed: Highlight: P&L and balance sheet required if it has been more than 3 months since the end of the last tax year that we have returns for. Translated: nearly 100% of the time the P&L and balance sheet will be required.
- DETAILS: P&L and Balance Sheet required if more than a calendar quarter has elapsed since date of most recent calendar or fiscal-year end tax return was filed by the borrower – with no exceptions. Additionally, if income used to qualify the borrower exceeds the two year average of tax returns, an audited P&L or signed quarterly tax returns obtained from IRS are required.
Collections – previously did not have to be paid. Now, if they exceed $1000, generally speaking, they must be paid.
- DETAILS: If the total outstanding balance of all collection accounts is equal to or greater than $1,000 the borrower must resolve the accounts (e.g. entered into payment arrangements with minimum three months verified payments- paid as agreed) or paid in full at the time of, or prior to closing. Mortgagees must document the case binder showing each account was resolved or paid in full. If the total outstanding balance of all collection accounts is less than $1,000, the borrower is not required to pay off the collection accounts as a condition of mortgage approval. FHA continues to require judgments to be paid off before the mortgage loan is eligible for FHA insurance.*
Disputed Accounts – If the disputed account is less than $1000, then we can generally ignore it now.
- DETAILS: If the Automated Underwriting System using the TOTAL Mortgage Scorecard rates the mortgage loan application as an Accept, the mortgage application will no longer be referred to a DE underwriter for review due to disputed accounts, as long as these accounts meet both of the following conditions: The total outstanding balance of all disputed credit accounts or collections are less than $1,000,and Disputed credit accounts or collections are aged two years from date of last activity as indicated on the most recent credit report. If the borrower has individual or multiple disputed credit accounts or collections with singular or cumulative balances equal to or greater than $1,000, the accounts must be resolved (e.g. payment arrangements with a minimum three months of verified payments made as agreed) or paid in full, prior to, or at the time of closing. The lender must obtain documentation supporting the payment arrangements or that the debt has been paid off. The payments arranged for the accounts must be included in the calculation of the borrower’s debt-to-income ratios. Disputed credit accounts or collections resulting from identity theft, credit card theft, or unauthorized use, etc., will be excluded from the $1,000 limit under the terms shown below. The mortgagee must provide in the case binder, a credit report or letter from the creditor, or other appropriate documentation, to support that the borrower filed an identity theft or police report to dispute the fraudulent charges. Mortgagees must provide documentation in the case binder to show all disputed or collection accounts are resolved, verified as not a debt to the borrower, arrangements made for payment, or paid in full.

FHA MIPs Increasing On April 1, 2012

admin — Tue, 28 Feb 2012 15:35:05 +0000

If you are considering purchasing a home using an FHA loan, you best move quickly. For FHA case numbers assigned on or after April 1st, 2012 there will be two increases in MIP. The first increase is due to our friendly politicians in Washington applying a payroll tax to the mortgage industry during a time when we are struggling to recover from a housing bust. Great idea, right? The second increase is from the Department of Housing and Urban Development who administers FHA loans as they attempt to bolster their capital reserves.

A quick refresher on FHA loans. With an FHA loan, you are able to purchase a home with only 3.5% down, however, you pay for that low down payment in the form of mortgage insurance. On an FHA loan, that mortgage insurance is split between an upfront mortgage insurance (Upfront MIP) and a monthly mortgage insurance (Monthly MIP). The upfront is generally added to your total loan balance and financed over the life of the loan, the monthly is paid monthly for a minimum of 5 years and continues until your loan balance reaches 78% of the original purchase price.

For case numbers assigned on or after April 1, 2012, the Upfront MIP will increase by 0.75% and the monthly MIP will increase by 0.1%. Here are the specific changes:

For case numbers assigned on or after April 1, 2012:

15-year loan terms with loan-to-value over 90% : 0.60 percent annual MIP (up from 0.50 percent)
15-year loan terms with loan-t0-value under 90% : 0.35 percent annual MIP (up from 0.25 percent)
30-year loan terms with loan-to-value over 95% : 1.25 percent annual MIP (up from 1.15 percent)
30-year loan terms with loan-to-value under 95% : 1.20 percent annual MIP (up from 1.10 percent)

Finally, for case numbers assigned on or after June 1, 2012, there will also be a Jumbo premium added to the monthly MIPs shown above. This is only for loan sizes of $625,000 and up and will not impact us here in Georgia.

Let’s look at a quick example to see the impact. Assume you are purchasing a $200,000 home with 3.5% down. Prior to 4/1/2012 your upfront MIP would be $1930. After 4/1/2012 your upfront MIP would be $3377.50, an increase of $1447.50. Since the MIP is generally rolled into your new loan amount, that will not only be a $1447.50 hit to your equity, but financed for 30 years at 4% interest, it also adds $7 per month to your payment.

In addition, your monthly MI prior to 4/1/2012 would be $184.96. As of 4/1/2012, it goes to $201.04, an increase of $16.08.

For the scenario above, your payment increases by $23 per month, plus you lose $1447.50 in equity from day one. But how does HUD describe this impact?

“FHA estimates that the increase to the upfront premium will cost new borrowers an average of approximately $5 more per month. These marginal increases are affordable for nearly all homebuyers who would qualify for a new mortgage loan.”

I’ll let you decide if you agree with that statement.

Now for the good news. FHA is declining rapidly in market share as they price themselves out of the market. If you can simply come up with the additional 1.5% down payment to get to a total of 5% down and you have a good credit score, then you can save a lot of money going with a conventional (Fannie Mae or Freddie Mac) mortgage with Private Mortgage Insurance.

Bottom line: If you have a credit score below 680 or can only put down 1.5%, then get under contract before 4/1/2012 and make sure that your lender provides you with a case number prior to 4/1/2012. It is imperative that they actually give you the case number before that date – do not trust that they will take care of this for you. If they don’t, it’s a very expensive mistake. If your score is above 680 and you can handle a 5% down payment, then you can simply ignore all of this because an FHA loan is not in your best interest.

How To Get Rid of your FHA Mortgage Insurance Premium (MIP)

admin — Mon, 23 Jan 2012 16:01:48 +0000

There are two types of MIPs

First, a little background on FHA loans. When you take out an FHA loan, you pay the Mortgage Insurance Premium (MIP) in two ways. When your loan is closed you pay the 1% Up Front MIP which is normally rolled into your mortgage amount but can also be paid at closing directly. As an example, if you closed on a $200,000 puchase with 3.5% down, then your upfront MIP would be $1930. The second type of MIP is the monthly. For many months following your closing you will pay the monthly MIP in an amount which varies depending on the chart shown below.

How you can cancel the Upfront MIP early

How you do this depends on what type of mortgage you have. For the purposes of this discussion we will limit your types of mortgage to two: 1) 15 year fixed 2) Any other FHA mortgage.

If you have a 15 year fixed mortgage, then canceling the premium is as simple as paying the balance of your mortgage down to 78% of the original loan to value (LTV). The LTV is your current loan balance divided by the lesser of the purchase price or the appraised value of your home at the time you took out your current FHA mortgage. With a 15 year loan, the 78% LTV is the only requirement, and you can get there either by paying down the principal on your own, or just waiting for the principal to reach 78% based on the normal payment schedule for your loan. At today’s rates, if you just make your normal payment, then the MIP will be removed in about 26 months.

If you have any other type of FHA loan, then two things must happen to cancel the monthly MIP.

LTV reaches 78% (based on lesser of purchase price or appraised value at the time you took out your FHA loan)
Monthly MIP has been paid for a minimum of 60 months.

Note that in either case, there is no action required on your part to remove the MIP. FHA will remove the MIP automatically for you when the conditions discussed are met.

I have a 30 year loan and I want to get rid of my MIP

We are often asked this question, so we have created a mortgage calculator which is specifically intended to help you rid yourself of your MIP at the earliest possible time. If you plan ahead then you can remove your MIP in 5 years without a tremendous amount of pain. Let’s take our original example of a $200,000 purchase with 3.5% down on a 30 year fixed at today’s rate of 4.00% (APR 4.438%). Rolling in the MIP gives you an initial loan amount of $194,930. The monthly principal and interest payment on that loan is $930.63. Your monthly MIP payment is 1.15% of $194,930 divided by 12 months which is $186.81. Using our FHA MIP Removal Calculator (click the link to calculate for your own loan), you can remove this MIP in 60 months by paying an additional $288.09 per month starting with your first payment. At the end of month 60, your $186.81 MIP payment would drop off and if you chose to go back to the standard payment, then you could drop your principal and interest payment back to $930.63 and you would be rid of the $186.81 MIP payment.

Of course, your other option at that point would be to continue paying the additional $288.09. If you continued paying this amount for the life of the loan, your loan would pay off in 19 years. However, since you are already accustomed to the higher payment with the MIP, you could now add that $186.81 to your additional principal payments. If you did this, then your loan would pay off in just over 15 years.

This method gives you the flexibility of reverting to the 30 year payment if you need to, but gives you most of the advantages of the 15 year mortgage.

Exceptions

Note that there are two exceptions to the cancellation rule

Condominiums
203k Renovation Loans

Because these are not considered MMI loans by HUD, you will be required to keep the MIP for the life of the loan.

HARP II Refinance Program

admin — Fri, 04 Nov 2011 14:20:42 +0000

The Government has recently announced that HARP II will be launched by the end of 2011. While more specific details on dates are coming “around November 15″, I wanted to highlight what we do know today.

History

HARP was launched in the spring of 2009 to assist homeowners with limited equity. The three requirements were that 1) your mortgage was backed by Fannie Mae or Freddie Mac. 2. Your mortgage needed to have been purchase by Fannie or Freddie prior to June 1, 2009 and 3. Your Loan To Value must be 125% or less. Mostly because of the LTV limit, HARP failed to deliver as promised.

Enter HARP II

On October 24, 2011, the government announced they were expanding the HARP program. These are the key features:

LTV Limits Removed – No matter how far you may be underwater, you can still use the HARP program.
Limited Liability to the mortgage company who originates your loan – In the past, due to “reps and warrants” many lenders have been fearful of fulling participating in the HARP program. This change allows more lenders to participate with lower risk to them should the loan default.

Stay tuned for further details on the HARP program coming on or around November 15, 2011. To keep abreast of changes, simply subscribe to our blog.

The Ryan Mortgage Team is powered by Envoy Mortgage and we are an Atlanta, Georgia based mortgage lender.

Fannie Mae Cash Out Loans for Cash Only Investors – Rule Change

admin — Fri, 15 Jul 2011 20:01:19 +0000

Fannie Mae is now offering a refinance for cash buyers within 6 months of purchasing the property — called the Delayed Financing Exception. Prior to now, you were required to wait 6 months before purchasing a new investment property, however, with this rule, you can refinance immediately after closing the cash deal assuming you meet a few criteria. Take a look at the video above to review these criteria and to see the new rule in detail. Remember that this works for cash buyers who are investors or for those who purchased a primary residence or vacation home with all cash.

The Credit Scoring Model

admin — Fri, 06 May 2011 15:10:59 +0000

We often get asked, what are the 2 most important things I can do to improve my credit score? First, pay your bills on-time. That’s the easiest and most concrete portion of your score. If all of your bills are paid on time, then you get full credit for 35% of your total credit score.

Once you have ensured that you are making payments on time, then the next biggest thing you can do is to watch your outstanding balances versus your credit limits. To get the best score possible, you have to keep those balances at 30% of the limit or less. If you cannot get them down to 30% of the limit, however, don’t worry, you get nearly just as much benefit from simply keeping below the 50% mark.

Here’s a chart showing how your score is broken down:

Atlanta FHA Mortgage Payments Increasing

admin — Wed, 30 Mar 2011 07:01:15 +0000

HUD has announced that for case numbers assigned on and after April 18, 2011, the monthly MIP will be increasing by 0.25% annually on all loans. The reason given by HUD for the increase is to keep the FHA Mutual Mortgage Insurance Fund financially sound. With all of the foreclosures over the past two years, the fund has been depleted and this move is made to increase the reserve.

For potential home buyers who have a short time horizon to purchase, every effort should be made to get a signed contract prior to 4/18 so that your lender can have a case number assigned. Don’t just assume that your lender knows about this deadline, follow up with them to ensure that they provide you with a copy of the case number assignment so that you know you are protected. Also note that you must have a property selected in order to get a case number.

What is the impact of the change?

For every $100k borrowed, your monthly payment will increase by $20.83 per month. So, if you are borrowing $250k, multiply $20.83 by 2.5 which results in a monthly payment increase of $52.08. Below are the specifics of the change from HUD.

FHA Changing Monthly MIP rates……Again

admin — Tue, 15 Feb 2011 07:05:03 +0000

Just a few short months removed from the last increase in the monthly MIP, here we go again. The last increase took us from 0.55% to 0.90% (annually) on a 30 year fixed with 3.5% down. This next increase is an accross the board 0.25% increase, so this will take us from 0.90% to 1.15% on a 30 year fixed.

What does this mean in terms of your monthly payment?

For each $100,000 borrowed on an FHA loan, your monthly payment will increase by $20.83. In Atlanta, Georgia using the maximum FHA mortgage amount of $346,250, that would mean a monthly payment increase of $72.14 per month.

Why is this increasing?

The word is that the FHA reserve fund continues to head in the wrong direction and they will continue to make these types of course corrections until they stop the bleeding.

How can I avoid this increase?

There is still time to avoid the increase. You will need to obtain an FHA case number on or before April 17, 2010. That means that you will need to determine which property you are purchasing prior to that to avoid the increase – or if you are refinancing, you will need to start the process and have your lender order a case number before this date.

Posted via email from tararyan’s posterous