News for mortgage lending is better than it has been in several years, a decade, actually. We see mortgage loan limit increases and mortgages performance is better than they have in 20 years re Corelogic.
If you can qualify for a higher sales price/mortgage amount, then this is good news from the GSEs. Usually both Fannie Mae and Freddie Mac up their loan limits around the same time. This must actually mean that mortgages are doing much better in financing and it is good news for lenders.
Loan Limit Changes For the GSEs- Fannie & Freddie
| Mortgage Loan Limits 2020 | ||
| Units | Connected States, DC, and Puerto Rico | Alaska, Guam, Hawaii, & US Virgin Islands |
| One | $510,400 | $765,600 |
| Two | $653,550 | $980,325 |
| Three | $789,950 | $1,184,925 |
| Four | $961,700 | $1,472,550 |
| High-Cost Area Loan Limits | ||
| Units | Location *Same as Above | Location *Same as Above |
| One | $765,600 | |
| Two | $980,325 | **Not Relevant to these areas |
| Three | $1,184,925 | |
| Four | $1,472,550 | |
Updates For New Uniform Residential Loan Application (URLA – 1003) – Use of Redesigned 1003 Must be used by November 01, 2020
The new application is for the borrower(s) to have yet more clarity from the previous version and to make it somewhat simpler. The URLA-1003 is the main aspect of the borrower(s), personal information. Nothing should be hidden from the lender, and normal anything that is will surface somewhere.
The 1003 details the marital status, children, current address, employment, income, assets, other real estate owned, debts, and those things important to analyzing qualifications for the borrower and co-borrower (if applicable).
This new URLA form is still under review but will be applicable for lenders at approximately February 2020.
More News
MBA has stated for November that new home purchases have risen by 27.1%. Mortgage credit availability rose by 2.1% in November as well.
eMortgages on The Rise It Seems
It appears that Fannie Mae/Freddie Mac may be pushing eMortgages. Each GSE has specific guidelines but are very near the same.
If you have recently bought a home or completed a refinance, you probably know that so much has changed with the initial process of applying for a mortgage loan.
So much can be done electronically these days. That means the initial application (URLA-1003), initial disclosures, and even the final disclosures, eNote, eMortgage, etc.
Many lenders are not there yet with the final process but many are working toward this goal because it reduces the time-frame from application to closing.
This gives the borrower more time to review the initial loan documents without feeling pressed. If there are errors, they can be spotted easily and corrected.
This can also benefit the lender when last-minute issues develop and they can fix the error, transmit, get signature and go forward without a lot of back and forth.
What are e-Mortgages?
eMortgages are mortgage loans that are electronically closed via a secure eMortgage platform-system that must be approved prior to submission to the GSEs. The eMortgage is a loan that is originate using an electronically-signed note. The security instrument or deed of trust and other loan documents can be paper, or electronic papers as well. Simply put this means that lenders can after approval submit eNote – eMortgage documents signed electronically, or e-signed.
eNote, eMortgage, eClosing are used interchangeably. These have been possible for some years however, not all states or companies are set up to perform these services. eSignature must be allowed in the state the loan is closed.
End Notes
Do not let the latter confuse you as an applicant because all loan applicants are unique and if you need to sit down with a Loan Officer…they are available and will meet your needs when you have things that need to be discussed. The latter is not for everyone.
