Marion Rabalais Loan Production Officer VA RLC Atlanta, GA MBAC Convention October 2008 VA Home...
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Transcript of Marion Rabalais Loan Production Officer VA RLC Atlanta, GA MBAC Convention October 2008 VA Home...
Marion RabalaisLoan Production Officer
VA RLC Atlanta, GA
MBAC Convention October 2008
VA Home Loans 2008
NEW LEGISLATION(Pending)
New Legislation(Pending)
• Increase “Cash-out” refinancing loans to conforming rate.
• No longer limited to $144,000• Raise LTV from 90% to 100%• Renewal of ARMs and HARMs until 2012
82% Veteran
Homeownership
Rate
68.1%National
Homeownership Rate
Race:White – 73%Black – 17%
Hispanic – 8% Asian/PI – 2% AI/AN – .6%
Median FICO Score
679
88% Male12% Female
$62,448 Median Income
$6,000Median Assets
30% Active Duty
70% Veteran
92% No Down Payment
Average Purchase
Loan
$199,000
Veteran and Loan Profile
Year # Loans $ Amount
FY 2003 490,000 $63 Billion
FY 2004 336,000 $44 Billion
FY 2005 165,000 $24 Billion
FY 2006 143,000 $25 Billion
FY 2007 133,000 $25 Billion
FY 2008 179,000 $36 Billion
Total 1,446,000 $217 Billion
Recent Loan Guaranty Workload
Since 1944, VA has guaranteed over 18.3M loans for over $959B
Carolina Loan VolumeFY 2008
• 17,570 Loans• $3,050,779,900• Average Loan $173,635• Commissions earned
$183,046,800
18
5,5
53
13
,20
0
17
7,1
58
72
,85
1
17
7,0
26
14
0,2
25
14
8,8
10
34
0,6
08
15
2,3
95
18
3,3
93
11
9,1
30
46
,72
4
12
2,6
25
20
,09
8
11
7,9
40
15
,37
2
11
0,5
85
32
,61
3
0
50000
100000
150000
200000
250000
300000
350000
2000 2001 2002 2003 2004 2005 2006 2007 FYTD 2008
Volume by Type FY 2000 - FYTD 2008
Purchase
Refi
Purchase vs. Refinance Loans
Loan Volume is Increasing…
02,0004,000
6,0008,000
10,00012,000
14,00016,000
18,00020,000
April May Jun
20072008
Top Five States for VA Loans
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
TX VA NC FL GA
Market Share
VA Mortgages
Total Mortgages
% of Total
CY 05 160,478 7,076,000 2.27%CY 06 137,845 6,478,000 2.13%CY 07 133,279 5,652,000 2.36%CY 08 thru May 72,426 1,882,000 3.85%
471510
590
505548
470 484
587
535
724 726
0
100
200
300
400
500
600
700
800
Num
ber
of G
rant
s
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 FYTD2008
Specially Adapted Housing Grants 1998-Present
Since inception, the SAH program has made over 34,000 grants for approx. $668M
132,534
62,805
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 FYTD2008
Defaults Pending 1997-Present
Foreclosures
Monthly Foreclosures CompletedFY 2003-Present
545
1,641
920
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Flat-line projection puts EOFY figure at just over 9,000 foreclosures
Mortgage Industry Delinquencies
0.77%0.89%
1.99%
6.22%
8.33%
16.42%
5.48% 5.26% 5.59%
2.74% 2.45% 2.88%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
Prime Subprime FHA VA
Loan Type
Serious Delinquencies (%) Q1 2006 -- Q1 2008
Q1 2006 Q1 2007 Q1 2008
Source: MBA National Delinquency Survey
• VA does not make subprime loans, and the average VA borrower does not have subprime credit
– VA Credit Standards– Avg. VA FICO score = 679
• Toll Free Number for Outreach: (877) 827-3702
The Subprime Crisis
Opportunities
• With the implosion of the subprime market, VA is one, if not the only, remaining no-down payment option in the market
• Recent policy & legislation in response to the housing market crisis have benefited VA
(HR 3221)
• This has created a unique opportunity for VA
Opportunities
– New Loan Amounts• Limits range from floor of $417,000 (basic, standard
areas) up to max of $729,750 (high cost areas) • https://entp.hud.gov/idapp/html/hicostlook.cfm
(change limit type to Fannie/Freddie)• Exception: States of AK, HI, Guam & Virgin Islands still
have higher loan limit ranges
– SAH-related provisions• Increased PH and AH grants to $60,000 and $12,000• Annual adjustments to SAH grants based on
construction cost increases• TRA grants for active duty servicemembers• SAH benefits for permanent and total service-
connected disabilities resulting from severe burns
HR 3221 Maximum Loan Limit by County NC, GA, &
TNLimit State County Name
$662,500 GA GREENE$729,750 NC CAMDEN$428,750 NC CURRITUCK$460,000 NC DARE$729,750 NC PASQUOTANK$729,750 NC PERQUIMANS$432,500 TN CANNON$432,500 TN CHEATHAM$432,500 TN DAVIDSON$432,500 TN DICKSON$432,500 TN HICKMAN$432,500 TN MACON$432,500 TN ROBERTSON$432,500 TN RUTHERFORD$432,500 TN SMITH$432,500 TN SUMNER$432,500 TN TROUSDALE$432,500 TN WILLIAMSON$432,500 TN WILSON
Find HomeGo to Lender
Lender: Determines eligibility
electronically using WebLGY/Obtain COE
Uses AUS to get decision in minutes
Orders Appraisal thru TAS (7 workday timeliness)
Obtains Loan Guaranty Electronically 14-21 Days
Lender Closes Loan
Where we are Today..
99% of VA Loans are Automatics
1% are Priors 98.8% are LAPP
http://vip.vba.va.gov
www.homeloans.va.gov
VETERANS INFORMATION WEBSITES
Eligibility Pending Timeliness• FYTD (through August 25, 2008) over
241,000 requests for a Certificate of Eligibility have been received by the Eligibility Center
• Of these 85,000 were electronic applications
• WebLGY allows you to obtain the certificate more quickly and is e-mailed to you when completed. No lost certificates!
• Currently the Eligibility Center is processing electronic applications three (3) days faster than mailed applications
Seller Concessions• Limited to 4% of the appraised value• Does not include normal costs such
as: appraisal, credit report, title exam or title searches.
• May include VA funding fee, extra points or buy downs, prepaid items, buyer’s escrow accounts, payoff of buyer’s obligations
• Adding to sales price then amending contract is not allowed
• The VA funding fee can be paid by anyone!
Adjustable Rate
MortgagesAuthority through September 30, 2008
Annual adjustments limited to 1%
Interest rate increase capped at 5%
Must be underwritten at 1% above initial
rate
Did You Know ?There are now more
contractors than military personnel in Iraq????
That’s right….per the Government Business
Magazine, there are 180,000 contractors
& 156,247 military personnel in Iraq.
Occupancyand the Veteran
• See Chapter 3, section 5 of Lender’s Handbook
• Generally, must occupy within 60 daysExceptions –• IRRRLs• Active Duty service person’s spouse• Specific future event and specific future date will make occupancy possible
Occupancy by Spouse• Veteran’s spouse may occupy if
veteran is on active duty or if veteran cannot occupy within a reasonable time due to distant employment
• No family member, other than the spouse, may satisfy the occupancy requirement
VA Disability IncomeVerification of VA Benefit Related
Indebtedness – VA form 26-8937dedicated fax # in Atlanta: 404-929-
55581) If Veteran has a VA benefit-related
indebtedness2) If exempt from the Funding Fee3) Disability Compensation Amount4) Receipt of non service-connected
pension (requires prior approval) 5) Incompetent? (requires prior
approval)
VA Resale Program
Effective July 24, 2008,the sale of VA owned homeshas been contracted to:Countrywide(Bank of America)
Contact Information
www.homeloans.va.gov
Atlanta RLC 888- 768-2132
General Fax 404-929-5401
Email: [email protected]
Winston-Salem Eligibility Center 888-244-6711 option 1-1-2
[email protected]@vba.va.gov for portal
assistance
Questions?
A handout with telephone numbers, fax numbers, e-mail addresses, and web site addresses is available.