VA Loans for VETERANS News!

Zero Down still available for VA Mortgaes

VA Loans for VETERANS — Fri, 23 Oct 2009 00:00:00 GMT

VA MORTGAGE LOANS for veterans looking to purchase a new home with zero down. Today a veteran can still purchase a home with zero down and receive up to a 4% seller’s concession to help pay the closing cost on VA Mortgage Loans up to $729,000 in qualified counties. Also, time looks to be running out on the first time buyer $8000.00 tax credit. For today's current interest rates contact a VA Mortgage Specialist at www.vamortgageassistance.us . With today's new and tighter Credit Policies changing daily one question you should ask your borrower or buyer is if they are a Veteran. There are a millions of US veterans out there who qualify for a VA MORTGAGE LOAN, but are either unaware of or forgot about this option. By directing your customer to a VA MORTGAGE LOAN you may be able to save them money (no monthly Mortgage Insurance) and provide they with a way to qualify for a mortgage that may otherwise prove difficult or impossible (scores as low as 620) to obtain. For today's current interest rates contact a VA Mortgage Specialist at www.vamortgageassistance.us . Who Can Qualify for a VA Mortgage Loan? Call one of my VA Specialists at 1-800-999-2489 extension 8020 to see if you or your buyer qualifies. The first step to getting a VA MORTGAGE is to fill out a Certificate of Eligibility. The basic qualifications for obtaining a VA MORTGAGE include: • Active-duty veterans discharged during WWII and later periods, without the status of "dishonorable". • Active-duty veterans who served at least 90 consecutive days during major conflict. • Peacetime veterans and active duty personnel who have served more than 180 days of consecutive service. Enlisted veterans whose service began after 1980 or officers whose service began after 1981 who have served 2 years. There are a few other stipulations to qualifying for a VA MORTGAGE LOAN. For instance, National Guard members and Selected Reserve members may qualify, if they have completed a total of six years in the Selected Reserve, or upon discharge from the Reserves or Nation Guard due to service-connected disability before completing six years. If you have questions regarding your eligibility, check with a qualified VA Mortgage Specialist. How Can VA Mortgage Loans Funds Be Used? VA MORTAGE LOAN funds can be used to purchase a house, condominium, or townhouse. It may also be used to build a home or purchase a home and make improvements. A VA MORTGAGE LOAN may also be used to refinance a mortgage, as well as improving your home with energy-related features. Why Choose a VA Mortgage Loan? NO DOWN PAYMENT and FLEXIBLE CREDIT REQUIREMENTS are perhaps the two biggest factors that make the VA MORTGAGE LOAN a great mortgage. And only eligible VETERANS can get it! If a Veteran finds a nice home in the range of $200,000 to $400,000 and they do not having $40,000 to $80,000 for the down payment? Would that stop them from moving forward? NOT SO with a no down payment VA MORTGAGE LOAN! Even the first time borrower requirements are minimal. To get more information regarding VA benefits you can visit www.VA.gov. Call us at 800-999-2489 extension 8022 to talk with a VA Mortgage Specialist and we will be there to answer any questions you may have. Is There a Cap on VA Mortgage Loans? Loans are available for up to 100 percent of the purchase price to $417000. VA loans are now available up to $729,000.00 visit www.vamortgageassistance.us for more information. Veterans who have already taken out a VA MORTGAGE LOAN in the past may still be eligible for remaining entitlement for any unused previous balance. Because entitlement amounts have increased over time, this means that many people who took out VA MORTGAGE LOAN in the past may have more money now than they were entitled to before. Choose a VA Mortgage Loan? NO DOWN PAYMENT and FLEXIBLE CREDIT REQUIREMENTS are perhaps the two biggest factors that make the VA MORTGAGE LOAN a great mortgage. And only eligible VETERANS can get it! If a Veteran finds a nice home in the range of $200,000 to $400,000 and they do not having $40,000 to $80,000 for the down payment? Would that stop them from moving forward? NOT SO with a no down payment VA MORTGAGE LOAN! Even the first time borrower requirements are minimal. To get more information regarding VA benefits you can visit www.VA.gov. Call us at 800-999-2489 extension 8022 to talk with a VA Mortgage Specialist and we will be there to answer any questions you may have. Veterans who have already taken out a VA MORTGAGE LOAN in the past may still be eligible for remaining entitlement for any unused previous balance. Because entitlement amounts have increased over time, this means that many people who took out VA MORTGAGE LOAN in the past may have more money now than they were entitled to before. Kenneth Lazowski W: 800-999-2489@7976 C: 908-512-1436 Email: KLazowski@remn.com Web Site: KennethLazowski.remn.com

Making Home Affordable Program

VA Loans for VETERANS — Tue, 05 May 2009 00:00:00 GMT

Releases April 28, 2009 Obama Administration Announces New Details on Making Home Affordable Program FOR IMMEDIATE RELEASE: April 28, 2009 CONTACT: Treasury Public Affairs (202) 622-2960 Parallel Second Lien Program to Help Homeowners Achieve Greater Affordability Integration of Hope for Homeowners to Help Underwater Borrowers Regain Equity in their Homes WASHINGTON – The Obama Administration today announced details of new efforts to help bring relief to responsible homeowners under the Making Home Affordable Program, including an effort to achieve greater affordability for homeowners by lowering payments on their second mortgages as well as a set of measures to help underwater borrowers stay in their homes. “With these latest program details, we’re offering even more opportunities for borrowers to make their homes more affordable under the Administration’s housing plan,” said Treasury Secretary Tim Geithner. “Ensuring that responsible homeowners can afford to stay in their homes is critical to stabilizing the housing market, which is in turn critical to stabilizing our financial system overall. Every step we take forward is done with that imperative in mind.” "Today's announcements will make it easier for borrowers to modify or refinance their loans under FHA's Hope for Homeowners program," said HUD Secretary Shaun Donovan. "We encourage Congress to enact the necessary legislative changes to make the Hope for Homeowners program an integral part of the Making Home Affordable Program." The Second Lien Program announced today will work in tandem with first lien modifications offered under the Home Affordable Modification Program to deliver a comprehensive affordability solution for struggling borrowers. Second mortgages can create significant challenges in helping borrowers avoid foreclosure, even when a first lien is modified. Up to 50 percent of at-risk mortgages have second liens, and many properties in foreclosure have more than one lien. Under the Second Lien Program, when a Home Affordable Modification is initiated on a first lien, servicers participating in the Second Lien Program will automatically reduce payments on the associated second lien according to a pre-set protocol. Alternatively, servicers will have the option to extinguish the second lien in return for a lump sum payment under a pre-set formula determined by Treasury, allowing servicers to target principal extinguishment to the borrowers where extinguishment is most appropriate. Separately, the Administration has also announced steps to incorporate the Federal Housing Administration’s (FHA) Hope for Homeowners into Making Home Affordable. Hope for Homeowners requires the holder of the mortgage to accept a payoff below the current market value of the home, allowing the borrower to refinance into a new FHA-guaranteed loan. Refinancing into a new loan below the home’s market value takes a borrower from a position of being underwater to having equity in their home. By increasing a homeowner’s equity in the home, Hope for Homeowners can produce a better outcome for borrowers who qualify. Under the changes announced today and, when evaluating borrowers for a Home Affordable Modification, servicers will be required to determine eligibility for a Hope for Homeowners refinancing. Where Hope for Homeowners proves to be viable, the servicer must offer this option to the borrower. To ensure proper alignment of incentives, servicers and lenders will receive pay-for-success payments for Hope for Homeowners refinancings similar to those offered for Home Affordable Modifications. These additional supports are designed to work in tandem and take effect with the improved and expanded program under consideration by Congress. The Administration supports legislation to strengthen Hope for Homeowners so that it can function effectively as an integral part of the Making Home Affordable Program. Making Home Affordable, a comprehensive plan to stabilize the U.S. housing market, was first announced by the Administration on February 18. The three part program includes aggressive measures to support low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac; a Home Affordable Refinance Program, which will provide new access to refinancing for up to 4 to 5 million homeowners; and a Home Affordable Modification Program, which will reduce monthly payments on existing first lien mortgages for up to 3 to 4 million at-risk homeowners. Two weeks later, the Administration published detailed guidelines for the Home Affordable Modification Program and authorized servicers to begin modifications under the plan immediately. Twelve servicers, including the five largest, have now signed contracts and begun modifications under the program. Between loans covered by these servicers and loans owned or securitized by Fannie Mae or Freddie Mac, more than75 percent of all loans in the country are now covered by the Making Home Affordable Program. Continuing to bolster its outreach around the program, the Administration also announced today a new effort to engage directly with homeowners via MakingHomeAffordable.gov. Starting today, homeowners will have the ability to submit individual questions through the website to the Administration’s housing team. Members of the Treasury and HUD staffs will periodically select commonly asked questions and post responses on MakingHomeAffordable.gov. To submit a question, homeowners can visit www.MakingHomeAffordable.gov/feedback.html. Selected questions from homeowners across the country and responses from the Administration will be available at www.MakingHomeAffordable.gov/asked-and-answered.html. For additional details on the program announced today, please see the Program Update Fact Sheet. Fact Sheet Two Case Examples

Pre-Loan Frequently Asked Questions

VA Loans for VETERANS — Tue, 05 May 2009 00:00:00 GMT

Pre-Loan Frequently Asked Questions General questions about VA loans that may arise BEFORE you get one Q: What is a VA Guaranteed Home Loan? A: VA guaranteed loans are made by private lenders, such as banks, savings & loans, or mortgage companies to eligible veterans for the purchase of a home which must be for their own personal occupancy. The guaranty means the lender is protected against loss if you fail to repay the loan. The guaranty replaces the protection the lender normally receives by requiring a down payment allowing you to obtain favorable financing terms. Q: What is pre-purchase counseling and why is it helpful? A: Pre-purchase counseling gives a person information on (1) the process of buying a home, (2) the key players in the home buying process, and (3) debt management. The goal is to create a better informed homebuyer. While VA does not require such counseling, we strongly recommend it. There is usually no charge for the housing counseling. An excellent online source of information for first time homebuyers is provided by Ginnie Mae. To locate a housing counseling office call (800) 569-4287 or visit HUDs website. The Department of Housing and Urban Development (HUD) maintains both the phone number and website. Q: Does my entitlement guarantee that I will get a home loan? A: No, VA cannot compel a lender to make a loan that would violate their lender policies. Lenders must also comply with VA income and credit standards. If a lender is unwilling to make a loan to you, we can only suggest that you try other lenders. Q: How much is my entitlement? A: Your basic entitlement is $36,000. For loans in excess of $144,000 to purchase or construct a home, additional entitlement up to an amount equal to 25 percent of the VA county loan limit for a single family home may be available. This loan limit can change yearly. VA county loan limits for 2009 are available at this link. The conforming loan limit for 2008 is $417,000 ($625,500 for Hawaii, Alaska, Guam and U.S. Virgin Islands). This means that qualified veterans could get a no down payment purchase loan for those amounts. Q: How do I get a Certificate of Eligibility? A: Web LGY: It may be possible to obtain a Certificate of Eligibility from your lender. Most lenders have access to the Web LGY system. This Internet based application can establish eligibility and issue an online Certificate of Eligibility in a matter of seconds. Not all cases can be processed through Web LGY - only those for which VA has sufficient data in our records. However, veterans are encouraged to ask their lenders about this method of obtaining a certificate. You can apply for a Certificate of Eligibility by submitting a completed VA Form 26-1880, Request For A Certificate of Eligibility , to the Winston-Salem Eligibility Center, along with proof of military service. In some cases it may be possible for VA to establish eligibility without your proof of service. However, to avoid any possible delays, it's best to provide such evidence. Q: How do I obtain a VA Home Loan? A: Here are the steps: Select a home and discuss the purchase with the seller or selling agent. Sign a purchase contract conditioned on approval of your VA home loan. Select a lender, present them with your Certificate of Eligibility if available, and complete a loan application. The lender can also obtain a Certificate of Eligibility on your behalf. The lender will develop all credit and income information. They will also request VA to assign a licensed appraiser to determine the reasonable value for the property. A Certificate of Reasonable Value will be issued. Note: You may be required to pay for the credit report and appraisal unless the seller agrees to pay. The lender will let you know the decision on the loan. You should be approved if the established value and your credit and income are acceptable. You (and spouse) attend the loan closing. The lender or closing attorney will explain the loan terms and requirements as well as where and how to make the monthly payments. Sign the note, mortgage, and other related papers. Q: What are the benefits of a VA home loan? A: There are many benefits of a VA Home loan: Equal opportunity. No down payment (unless required by the lender or the purchase price is more than the reasonable value of the property). Buyer informed of reasonable value. Negotiable interest rate. Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5% and exemption for veterans receiving VA compensation). Closing costs are comparable with other financing types (and may be lower). No mortgage insurance premiums. An assumable mortgage. Right to prepay without penalty. For homes inspected by VA during construction, a warranty from builder and assistance from VA to obtain cooperation of builder. VA assistance to veteran borrowers in default due to temporary financial difficulty. Q: What can VA not do? A: Guarantee that a home is free of defects. VA guarantees only the loan. It is your responsibility to assure that you are satisfied with the property being purchased. The VA appraisal is not intended to be an "inspection" of the property. You should seek expert advice (a qualified residential inspection service), as necessary, BEFORE legally committing to a purchase agreement. If you have a home built, VA cannot compel the builder to correct construction defects although VA does have the authority to suspend a builder from further participation in the home loan program. VA cannot guarantee that you are making a good investment. VA cannot provide you with legal services. Q: Is a guaranteed loan a gift? A: No, it must be repaid, just as you must repay any money you borrow. If you fail to make the payments you agreed to make, you may lose your home through foreclosure. Q: Can I get a loan for a home outside of the United States? A: Unfortunately, the law only allows VA to guarantee loans on property in the United States, its territories, or possessions. Q: Can I get a VA loan if I have had a bankruptcy in the last few years? A: The fact you and/or your spouse have been adjudicated bankrupt does not in itself disqualify you for a VA home loan. The following rules apply: If the bankruptcy was discharged more than 2 years ago, it may be disregarded If the bankruptcy was discharged within the last 1 to 2 years, it is probably not possible to determine that you and/or your spouse are a satisfactory credit risk unless both of the following requirements are met: you and/or your spouse have reestablished satisfactory credit, and the bankruptcy was caused by circumstances beyond your and/or your spouses control (such as unemployment, medical bills, etc.) If the bankruptcy was discharged within the past 12 months, it will not generally be possible to determine that you and/or your spouse are satisfactory credit risks. Q: Why do I have to pay a fee for a VA home loan? Since I paid a fee for my first loan, why is there a larger fee for my second loan? A: The VA funding fee is required by law. The fee is intended to enable the veteran who obtains a VA home loan to contribute toward the cost of this benefit, and thereby reduce the cost to taxpayers. The funding fee for second time users who do not make a down payment is slightly higher. The idea of a higher fee for second time use is based on the fact that these veterans have already had a chance to use the benefit once, and also that prior users have had time to accumulate equity or save money towards a down payment. First and second time users who make a down payment of at least 5 percent pay a reduced funding fee of 1.5 percent, the same as first time users making the same down payment. For a 10 percent down payment, the fee drops to 1.25 percent. The effect of the funding fee on a veteran's financial situation is minimized since the fee may be financed in the loan. National Guard and Reservist veterans pay a slightly higher funding fee percentage. To determine the exact funding fee percentage, please review the funding fee table. Q: I want to buy a house with a VA loan. Do I need to occupy the property? A: The law requires that you certify that you intend to occupy the property as your home. This requirement is considered satisfied if you actually intend to occupy the property as your home and in fact so occupy it when the loan is closed or within a reasonable time afterward. Q: I am a single veteran stationed overseas and want to buy a home in my home town. My friends who are married can do this with their spouses occupying the property in their place, but VA says I can't do this with my parents or other relatives occupying on my behalf. Isn't this discrimination against single veterans? A: The law specifically provides that occupancy by the veteran's spouse satisfies the personal occupancy requirement. The law makes no provision for occupancy by any other relatives as a substitute for personal occupancy by the veteran. Q: May a veteran join with a non veteran who is not his or her spouse in obtaining a VA loan? A: Yes, but the guaranty is based only on the veteran's portion of the loan. The guaranty cannot cover the nonveteran's part of the loan. Consult lenders to determine whether they would be willing to accept applications for joint loans of this type. Lenders that are willing to make these types of loans will likely require a down payment to cover risk on the unguaranteed, nonveteran's portion of the loan. Unlike other loans, the lender must submit joint loans to VA for approval before they are made. Both incomes can be used to qualify for the loan. However, the veteran's income must be sufficient to repay at least that portion of the loan related to the veteran's interest in (portion of) the property and the nonveteran's income must be adequate to cover the rest. Q: If a veteran dies before the loan is paid off, will the VA guaranty pay off the balance of the loan? A: No. The surviving spouse or other co-borrower must continue to make the payments. If there is no CO-borrower, the loan becomes the obligation of the veteran's estate. Mortgage life insurance is available but must be purchased from private insurance sources. Compensation and Pension | GI Bill | Vocational Rehabilitation | Home Loans | Life Insurance Regional Office Home Pages | Manuals & Regulations | Reports | Survivors' Benefits If You Owe VA Money | GovBenefits.gov | USA Services Español | VA Forms | Locations | Contact the VA | Frequently Asked Questions (FAQs) Privacy Policy | Web Policies & Important Links | Freedom of Information Act Annual Performance and Accountability Report | Small Business Contacts | Site Map USA.gov | White House | USA Freedom Corps Reviewed/Updated Date: May 1, 2009

Veterans Benefits Administraation circular 26-08-16

VA Loans for VETERANS — Fri, 05 Sep 2008 00:00:00 GMT

Veterans Benefits Administration Circular 26-08-16 Department of Veterans Affairs Sept 5, 2008 Washington, D.C. 20420 MAXIMUN GUARANTY AMOUNTS FOR LOANS ORIGIATED AFTER JANUARY 1, 2009 1. PURPOSE: On July 30, 2008, the President signed Public Law 110-289, the Housing and Economic Recovery ct of 2008. Section 2201 of the Act provides a temporary increase in VA’s maximum guaranty amount through December 31, 2008. This temporary increase was detailed in VA Circular 26-08-11. Effective January 1, 2009, VA’s maximum guaranty amount will change as described below. 2. GUARANTY AMOUNTS: For loans where the original principal loan amount is $417,000 or less, the VA’s maximum guaranty amount remains unchanged. For loans over $417,000, originated on or after January 1 2009, VA’s maximum guaranty amount over 25 percent of the Freddie Mac conforming loan limit for a single-family home in the county in which the property securing the loan is located. The Freddie Mac conforming limits for each county are the same as the Federal Housing Administration mortgage limits. Please note that, if a veteran has previously used entitlement that has not been restored, the guaranty amount for that veteran must be reduced accordingly. 3. ANNUAL UPDATES: On January 1, 2010 and each January 1 thereafter, the Freddie Mac conforming loan limit will be updated by the Federal Housing Finance Agency to reflect changes in the national housing price index as well as changes in area median prices. This will result in changes to guaranty amounts discussed in paragraph 2 of this circular. 4. Rescission: This circular is automatically rescinded January 1, 2010. By Direction of the Under Secretary for Benefits Judith A. Caden, Director Loan Guaranty Service Distribution: CO: RPC 2021 SS(26A1) FLD: VBAFS, 1 each (Reproduce and distribute based on RPC 2021) (LOCAL REPRODUCTION AUTHORIZED)

Opening Doors to Home Ownership for Veterans

VA Loans for VETERANS — Mon, 11 Aug 2008 00:00:00 GMT

REMN has a new website to help Open Doors to Home Ownership for Veterans one way for Veterans to get into a home is with a government guaranteed Veteran’s Affairs loan. The borrower has to be a veteran or the surviving spouse of one who died from a service-connected condition. Loans are available for up to 100 percent of the purchase price to $417000. VA loans are now available up to $700000.00 visit www.vamortgageassitance.us for more information Today if a veteran doesn’t qualify for a Conventional or FHA Mortgage they may still be able to get a VA loan. VA loans are often made to borrowers with a couple of dings in their credit histories and FICO scores as low 620. After only 12 months of clean credit history even severely credit damaged borrowers can qualify for a VA loan. Today’s VA rates are extremely competitive. A 30-year fixed VA Mortgage carries about the same rate as a normal prime rate loan. It's an even better deal than that, because 100 percent of either the purchase price or the appraised value of the property (whichever is lowest) can be financed without mortgage insurance. A veteran can get even more information by visiting www.vamortgaeassistance.com or calling 800-999-2489 EXT 8020.

Market Indicator 8/1/8

VA Loans for VETERANS — Fri, 01 Aug 2008 00:00:00 GMT

Quote of the Week "Time, and a better balance of buyers and sellers in the dodgiest of housing assets, is the longer term cure for what ails us." William O'Donnell, UBS, 07.29.08 August 1, 2008 Market Indicators 7/30/08 Last Week Last Year MBA 30 Yr FRM 6.46% 6.59% 6.50% 10 Yr T 4.05% 4.15% 4.80% Fed Funds 2.00% 2.00% 5.25% Refi Index* 1074.4 1392.7 1724.1 Purch Index* 309.5 335.6 416.6 Government Index* 332.4 365.9 139.9 S&P 500 1284.26 1282.19 1473.91 MI Index** 32.50 34.49 94.43 Genworth 16.71 17.60 31.09 *seasonally adjusted ** Mkt Cap Index Based on MTG, PMI, RDN, TGIC & GNW ________________________________________ Click on the following links to jump to MIcroscope sections Feature Economy Competitors Housing Rates Upcoming Events ________________________________________ Feature Report Summarizes Factors Influencing Affordability in Today's Housing Market Last month, Homes For Working Families - an organization that works with the public, private, and nonprofit sectors to share research and promote state and local solutions that will increase the supply of workforce housing - released a report in partnership with Moody's Economy.com titled Analyzing Affordability in Metropolitan Housing Markets ("Analyzing Affordability "). The report provides a summary of housing and household factors that impact those earning between 60% and 120% of area median income. Analyzing Affordability utilized a variety of data sources including the Case-Schiller tiered price indexes, the U.S. Census Bureau's American Community Survey and the Consumer Expenditure Survey. Affordability in this report is "measured by ratio of income to the amount of income needed to cover mortgage payments." Here are highlights from the report: Home Prices and Sales • Deceleration in home sales and price increases in 4Q07 have resulted in better affordability ratios for low- and middle-income workers in many cities across the U.S. Despite the improving trends, housing continues to be prohibitively expensive, even for households earning 120% of the area's median income, in nearly half of the metro areas examined in the study. • As the housing market continues to deteriorate, home sales in the lower-price tier remain erratic. According to Case-Schiller, this tier showed the greatest run-up in prices during the peak of the boom (2004-2006) and will register the steepest declines from peak to the forecasted bottom in 2009. Once the market recovery commences, the lower-price tier is expected to appreciate at the quickest pace. Credit and Economic Conditions • In recent months, banks have adopted stricter lending policies that have tightened loan qualifications, raised mortgage rates and added or increased fees. These changing guidelines offset the impact of lower home prices, and the subsequent improvement in affordability, as many households cannot access credit in this restrictive environment. • Rising unemployment, flat median incomes and record-low household net worth are also cancelling out the benefits of lower home prices -- as these factors are contributing to larger debt burdens and decreasing purchasing power. Foreclosures • The rise in foreclosures has had a contradictory effect on affordability. The foreclosures contribute to lower home prices but at the same time they have also diminished the credit quality of an entire pool of future buyers. Though some progress has been made towards greater affordability in housing, it will take time to correct the boom's overexpansion of credit so that low- to moderate-income families can benefit from lower home prices. Either home prices must continue their decline or incomes must begin to materially rise in order to realize meaningful gains in affordability. " ... households today are not in a good position to take advantage of lower housing prices because of tighter conditions on both the demand and supply sides of credit markets." Analyzing Affordability in Metropolitan Housing Markets, June 2008 Click here to read the full report Return to topics ________________________________________ Competitors Dowling and Partners ("D&P") initiated coverage on MIs on July 24, 2008. Geoffrey Dunn, former analyst at KBW, will be covering the MI sector. Highlights from the report include: • Initiating coverage on MIs with a Buy rating on MGIC and a Neutral rating on PMI and Radian o MGIC has already raised capital ... D&P believes there is significant capital in MI operations to support growth and credit needs o Believes uncertainty created by incomplete capital efforts creates a level of risk that warrants caution for Radian and PMI • Believes Radian's US MI business needs an additional $500MM-$600MM of capital to weather credit cycle o Options are limited to either extracting capital from financial guaranty business or selling that asset o Mentions S&P's year-end conclusions that Radian's FG business had $550 -$600MM of excess capital over the AA required threshold • Estimates that PMI needs capital relief of $800MM-$1.1B after giving consideration to the $200MM of recently drawn debt funds o Could raise $800MM or more by recapturing capital committed to its Canadian venture, selling its ownership in CMG, and selling a large minority interest in its Australian business • Loss outlook is challenging ... incurred losses will peak in 2008 and decline steadily on a quarterly run-rate basis through 2010 ... paid losses will peak in 2009, with much of 2006 and 2007 losses materializing earlier than historical norm o Still expects a material amount of paid losses in 2010 as late 2008 and 2009 delinquencies make their way through the system o MIs will not return to more "normalized" paid loss results until 2012 • Delqs will peak in 1Q09 and then decline at an accelerating rate through 2010 o Expect growth in IIF, RIF and earned premiums to decelerate materially versus the trends posted for 2007 o Persistency will remain favorable, stabilizing in the mid- to upper 80% range for the next few years ________________________________________ RMIC Reports Net Loss in 2Q08 Earnings Call Highlights from the call: • Reported pre-tax operating ("op") loss of $141MM vs. pre-tax op income of $37MM in 2Q07 and pre-tax op loss of $122MM in 1Q08 • 2Q08 losses incurred up 6% variance to prior quarter ("VPQ") and 249% variance to prior year ("VPY") to $287MM from $267MM and $82MM, respectively • Management expects average loss ratio to be in the ~175 - 200% range for 2H08 ... 193% in 2Q08 • Does not expect to return to profitability until 2010 • Primary production down in 2Q08 to $6B ...driven by 24% VPQ decrease in flow NIW due to tighter underwriting • Management will not infuse any additional capital to MI company until it reaches 20:1 risk-to-capital ratio ... 2Q08 at 16.4:1 Click here for a Summary of RMIC's 2Q08 Earnings Call ________________________________________ KBW Responds to RMIC's 2Q08 Earnings Results • Expects higher reserving trends to continue for US MI • Ultimate duration and severity of the housing crisis will play a significant factor in investors' comfort with the company • Positive impact to the top line from the price increase, won't be sufficient to offset the impact of performance of existing book • Believes ORI's current plan not to raise any additional capital increases the probability of further ratings agency downgrades, which would require the company to work closely with the GSEs in order to maintain Type I insurer status • Does not believe that ORI is considering any additional equity issuance or plans to sell any assets • Believes company would, and has the ability to, raise capital to support the mortgage insurance business, if necessary 2008 EPS Target Price Old New Old New KBW $(0.02) $(0.72) $13.00 $13.00 FPK NA $(0.15) NA $11.45 KeyBanc NA $0.12 NA $11.80 Avg $(0.02) $(0.25) $13.00 $12.08 Click here for the Weekly Competitor Update Return to Topics ________________________________________ Rates "The Treasury market continues to idle in a relatively tight range as yields appear somewhat trapped in a vice for the near term." William O'Donnell, UBS, 07.30.08 • 10Y T yield rose 13bp this week to 4.11% ... highest weekly average in five weeks per the Federal Reserve Board • A dip in oil prices and generally better than expected 2Q08 earnings have lowered demand for safety of Treasury bonds (demand?, price?, yield?) • 10Y T yield likely to remain volatile as investors continue reacting to threats of inflation (yields?), weak economy (yields?), second quarter earnings (?) and an increase in supply of Treasury bonds "We now know that it's open season for more 10's and 30's in the months ahead ... Even so, we feel it premature to draw direct links between higher supply and higher rates as we expect the economic conditions that spurred the supply changes will continue to dominate the overall effects of higher supply itself." William O'Donnell, UBS, 07.31.08 • This week the Treasury Dept. announced upcoming 10- and 30-year Treasury bond auctions ... $171B will be auctioned during 3Q08 including next week's $17B in 10Y Treasury bonds • U.S. Treasury Department holds auctions to raise money for government funded activities such as war, helping financial markets (Bear bailout), assisting struggling state and local governments hurt by falling tax revenues due to lower home prices and rising foreclosures, etc. • In theory, higher supply puts downward pressure on prices and takes yields higher ... and while that may be the long-term effect, in the short-term, the same factors that led to the government auctions may also keep demand for Treasury bonds strong enough to offset the impact of higher supply (demand up, price up, yield down) • "Economic conditions will continue to dominate the rates scene (lower rates and a steeper curve still to come) until we see home prices stabilize-a key precondition for an economic recovery in our view." William O'Donnell, UBS, 07.31.08 Mortgage Rates Fall As Spreads Tighten • 30Yr FRM fell 13bp this week to 6.46% from last week's YTD '08 peak, 6.59% • Higher 10Y T yield (+13bp) was offset by 26bp decline in spread ... o Spread between 30Yr FRM and 10Y T yield fell to 235bp from last week's 261bp o As noted in the chart below, the spread averaged 156bp last July and has been on an upward trend (~20bp per month) since May's 207bp spread o A 156bp spread on a 4.00% 10Y T Yield would have resulted in a 5.56% 30Yr FRM this July ... a level not seen since the beginning of this year • Passage of the housing bill has potential to ease fears about Fannie Mae's and Freddie Mac's ("the GSEs") ability to purchase mortgages which could reduce this spread and bring mortgage rates lower • Conversely, mortgage-related write-downs increase risk perception of mortgages and put upward pressure on this spread • Recent forecasts predict the spread between 30yr FRM and 10Y T yield will peak near 230bp in 3Q08 and land nearer 200bp by end of 2009 but higher 10Y T yield will offset that tighter spread and keep the 30Yr FRM near its July 2008 level • Higher mortgage rates, along with tighter underwriting criteria, are adding to falling home prices and dampening demand for mortgages • MBA Application activity down for a second consecutive week and ~9% lower in July vs. June o MBA purchase application index fell ~8% to 340 ... lowest weekly level in two months o Purchase index dropped 9% in July which marked the fourth straight monthly decline o MBA refi index sank 23% this week to 1,074 ... on a seasonally adjusted basis this is the lowest weekly level since December 2000 at which time the 30Yr FRM was 7.07%! o Refi index (not-seasonally adjusted) averaged 1,261 in July, down 8% from prior month as it continues its downward trend that started in Jan. '08 (Jan. '08 = 3,654) o Refi's held their 36% share of conventional applications in July - matching June's level - although this week's 32.1% share was the lowest weekly level since June '04's 30.9% o Government index, measuring FHA/VA application activity, was also down 9% this week to 353 ... lowest level since May '08 • ARM apps ticked lower for a third straight week to 14% based on dollar volume - down from ~20% at the beginning of July - and were down 4 points to 7% this week based on number of loans • The 1Yr Treasury ARM rate in MBA's weekly survey rose to 7.35% this week and has now held above 7% for eleven straight weeks • Weak investor demand for ARM mortgages has driven the rate for ARMs above FRMs thereby reducing the attractiveness for these mortgages What This Means For MI A greater number of fixed rate mortgages is beneficial to U.S. MI since more than 90% of 1H 2008 GSE volume was in FRMs and the GSEs require credit enhancement on loans with LTVs above 80% Monthly Rates and MBA Survey Data July 08 June 08 May 08 July 07 10Y Treasury Yield 4.00% 4.11% 3.88% 5.03% 30Yr FRM Average 6.42% 6.38% 5.95% 6.59% Spread 30Yr v 10Y T 242bp 227bp 207bp 156bp 30Yr FRM Low 6.22% 6.24% 5.82% 6.50% MBA Purch App Index 355 390 406 451 MBA Refi App Index 1,261 1,371 2,053 1,611 MBA Government App Index 378 383 386 140 % Conv'l Refi App 36% 36% 46% 40% % ARM Apps (conv'l, $) 16.8% 17.8% 17.3% 35.2% % ARM Apps (conv'l, #) 9.1% 9.8% 9.8% 21.9% Click here for this week's US MI Metrics of Interest Return to topics ________________________________________ Economy "The good news is there's been no acceleration in the official data. The bad news is there's nothing about the data that suggests improvement anytime soon." Robert Barbera, Chief Economist, ITG - quoted in The New York Times, 08.01.08 regarding July's Labor Market Report Job Losses Continue for Seventh Straight Month ... But Were Fewer Then Expected in July Unemployment Rate Rose to 5.7% in July From 5.5% In Both May and June • July's labor market report showed a 51,000 job loss figure ... beating predictions for 75k job losses • Job losses in May and June were upwardly revised to reflect 26,000 fewer job losses in those two months • Job losses have averaged 66k over the seven months of 2008 ... last year's Jan.-Jul. monthly average was a 100k job gain • Additional job losses are expected in the upcoming months • Unemployment climbed to 5.7% in July ... highest rate since Mar. '04's 5.8% rate • Economists expected the unemployment rate to climb to 5.6% in July after holding at 5.5% in both May and June • Increase in unemployment rate in July driven by 285,000 more unemployed workers in July vs. June o Unemployment rate = # unemployed divided by # workers in the labor force o July's 5.7% unemployment rate = 8,784k / 154,603k o June's 5.5% unemployment rate = 8,499k/ 154,390k • Once again, the teenage unemployment rate claimed the high spot rising to 20.3% in July from 18.1% in June • Current forecasts call for the unemployment rate rising to 6.0% by year-end 2008, peaking in 1H 2009 at 6.2% with total year 2009 averages ranging from 5.8%-6.2% • Average hourly earnings rose 0.3% to $18.06 in July and are up 3.4% in the past twelve months • Average work week fell to 33.6 hours in July from 33.7 hours in June o Many businesses are reducing wage expenses by cutting employees' hours rather than laying off workers o A reduction in hours may mask how difficult labor market conditions actually are as workers receive a smaller paycheck but a bigger charge for both food and energy o According the Census Bureau release, there are 5.7 million persons now working part-time jobs who would prefer, if they were available, to work full-time - this figure increased by 308,000 during July ? Part-time is defined as fewer than 35 hours per week ? Part-time workers are counted as employed and in the labor force figures used to calculate the unemployment "A weakening labor market intensifies pressure on consumers, who are already confronted with over-extended balance sheets, declining home prices, tight lending standards, and expensive food and energy. After the temporary and modest beneficial impact of tax rebate payments, consumers will have nothing left to fall back on, and the underlying trend of consumption growth will therefore weaken even further in the latter part of the year." Joshua Shapiro, MFR Inc, 08.01.08 ________________________________________ "It's hard to put a shiny gloss on this confidence report." Robert Brusca, Chief Economist, Fact and Opinion Economics, 07.29.08 Consumer Confidence Index Rose in July Ending Its Six-Month Downward Trend Chart source: The Conference Board • Consumer Confidence Index increased to 51.9 in July from June's upwardly revised 51.0 • July's consumer confidence was expected to dip slightly to 50.0 from June's original 50.4 level • Rise in consumer confidence attributed to the recent decline in oil prices which increased the outlook for conditions six months out more so than the outlook on current conditions • Expectations Index climbed 1.6 points to 43.0 in July • Present Situation Index held at 65.3 in July vs. 65.4 in June • Confidence was strongest in the West and weakest in the East North Central Region in July • Younger households (head of household 35 and under) maintain their rank as most optimistic with a 68.8 July '07 reading while the index declined to 43.6 for those 55 and older head of households that were surveyed • Increase in consumer confidence in July ended the declines that began in Dec. '07 • Last July the Consumer Confidence Index hit a five-year high, 111.9, but has remained below 100 since Sep. '07 as uncertainty about the health of the economy, inflationary fears and a weaker labor market have dampened consumers' optimism • The Consumer Confidence Index is based on a monthly survey of 5,000 households • Economists track the Consumer Confidence Index to provide clues on consumer spending since consumer spending makes up two-thirds of U.S. GDP "We believe that the U.S. is still in a financial crisis but has now moved into the recuperative stage." Richard Hoey, Chief Economist, Bank of New York Mellon, 07.29.08 • GDP rose a point (seasonally adjusted annual rate) in 2Q08 to an estimated 1.9% ... past GDP figures were also revised in this release - see table below for more details including predictions for the remainder of the year • This GDP figure will be updated two more times as additional data is collected and analyzed • Wide range of expected readings for 2Q08 GDP from 1.0%-2.2% due to increase in stimulus check spending activity during this quarter • Activity in the third quarter of the year is now widely expected to dip into negative territory as the stimulus checks have been spent 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08E 3Q08E 4Q08E 2006 2007 2008E 2009E GDP - Revised (07.31.08) 0.1% 4.8% 4.8% (0.2%) 0.9% 1.9% (1.0%)-2.0% (0.8%)-1.5% 2.8% 2.0% 0.5%-1.4% 1.8%-2.8% GDP - Prior to Revision 0.6% 3.8% 4.9% 0.6% 1.0% 2.9% 2.2% "For many decades, economists have observed that a housing slump precedes a recession and that a stabilization of housing is a prerequisite for recovery. We believe that in 2008, history is repeating itself again." Maury Harris, UBS, 07.25.08 What This Means for MI Weak consumer confidence and GDP raise the odds that unemployment will continue to rise. Existing mortgage borrowers may have difficulty keeping their mortgage payments current (MI Losses?) and there may be fewer new borrowers able to afford homes (MI NIW ?). "The three top economic concerns are weakness in housing, elevated energy prices, tight credit conditions, and the labor market." Greg Robb, Marketwatch, 07.28.08 Return to topics ________________________________________ Housing New Home Sales Narrowly Beat Expectations In June "[June's numbers offer] a few positive flickers, but the housing market remains extremely fragile" Brian Bethune, Chief U.S. Financial Economist, Global Insight, 07.25.08 • New home sales fell 3.9% to 0.530MM units in June from 0.533 in May o June sales showed slight improvement on a variance to prior year ("VPY") basis ... 33.2% VPY vs. 37.8% in May and the record breaking 40.2% VPY decline in Apr. '08 o 31st consecutive month of VPY declines o June's data was received with some optimism as it was running slightly ahead of various Wall Street projections ... analysts agree that it is still too early to infer that a correction could be coming for the housing market • Median sales price of new homes rose in June - to $237,900 - a 2.94% improvement over May • Inventory of new homes declined 5.3% variance to prior month ("VPM") in June to 0.426MM with a 10 months' supply (seasonally adjusted) • Regional new home sales data was mixed o Sales declined in the South and West, (2%) and (0.9%) VPM, respectively o Improvement in sales on a VPM basis was seen in the Northeast at 5.3%, and Midwest at 2.5 ________________________________________ Housing and Economic Recovery Act of 2008 On July 30, the President signed into law the Housing and Economic Recovery Act of 2008. The comprehensive legislation addresses numerous housing-related issues, including foreclosure prevention, FHA modernization, GSE reform, GSE "rescue", loan disclosure requirements, tax proposals and homebuyer counseling. The provisions of this new law that are of most note to the MI business are: FHA Rescue • Permits FHA to insure up to $300B of refinanced loans that have been written down by current holders • Eligible borrowers must have DTI ratios above 31 • Lender participation (write downs) voluntary. Current holder cannot receive more than 85% of new appraised value as payoff of old loan • Caps LTV on new loan at 90% of new appraised value • 3% upfront (financed) premium and 1.5% annual premium • HUD gets a percentage of increases in home value when the refinanced loan repays (exit premium) • No direct involvement for private MIs, but could incent more workouts of loans that currently have MI • Timing for FHA's implementation of these provisions not yet determined FHA Modernization • Permanently increase FHA base amount ($271K) and upper loan limits ($625K) (after current "temporary" increases expire) • One-year moratorium on risk-based pricing (which went into effect in mid-July under FHA rulemaking authority. See discussion below.) GSE Reform • Creates a new, independent regulator for Fannie Mae and Freddie Mac • Requires prior notice and comment on new products • Increases GSE loan limits to $625,500 after current, temporary increases expire. GSE "Rescue" • Temporary (18 month) increase of line of credit to Treasury • Temporary authority for Treasury to invest in GSE equities • Gives Federal Reserve "consultative" role in setting GSE capital requirements Tax • Temporarily extends federal deduction for local property taxes to filers who don't itemize, creates standard deduction for first time homebuyers up to $7500 - subject to repayment over 15 years and subject to income phase out FHA Risk Based Pricing Separate from the legislation, on July 14, the FHA implemented risk-based premiums. Upfront premiums range from 125-225 basis points, and annual premiums range from 50-55 bps. Pricing is based on LTV (bucketed at 90 and below, 90-95 and above 95) and FICO (with FICOs less than 600 getting higher premiums). As discussed above, the new housing legislation imposes a one-year moratorium on this pricing, beginning October 1, 2008. Return to topics ________________________________________ Upcoming Events ISM Manufacturing Index (Jul) 8/01 Triad's 2Q08 Earnings Call 8/04 ISM Non-manufacturing Survey (Jul) 8/05 FOMC Policy Statement 8/05 AIG's 2Q08 Earnings Call 8/07 Radian's 2Q08 Earnings Call 8/11 The MIcroscope is a weekly publication of the Genworth Mortgage Insurance Business Intelligence Group. To request reports and articles mentioned in The MIcroscope, please contact Amy Davis Click here for Past Editions of the MIcroscope Editor-In-Chief: Carol Bouchner Publisher: Amy Davis Contributing Editors: Carol Bouchner - Housing (Housing and Economic Recovery Act) Amy Davis - Feature and Housing (New Home Sales) Malissa Davis - Competitors Phyllis Gordon- Market Indicators Renata Pirog - Competitors Marcy Zeplin - Rates and Economy For internal Genworth Financial use only Copyright 2008 Return to Topics

Ten top mistakes

VA Loans for VETERANS — Thu, 24 Jul 2008 00:00:00 GMT

The top 10 mistakes when buying a house 1. Looking for a home without being pre-approved As a potential buyer competing for a property, you'll have a better chance of getting your offer accepted by being as prepared as possible. Consider this hierarchy of preparedness: Neither pre-qualified nor pre-approved Pre-qualified Pre-approved The benefits available at each level can be easily understood when viewed from the seller's perspective. Imagine you're a seller in receipt of multiple offers to purchase your property. A complete stranger (buyer) is asking you to take your property off the market for at least the next two to three weeks while they apply for a loan. As the seller, lets consider the type of buyer you'd prefer to deal with. Neither pre-qualified nor pre-approved This buyer provides no evidence that they can afford to purchase your property. You may wonder how serious they are since they're not at least pre-qualified. Pre-qualified This buyer has met with a mortgage lender and discussed their situation. The buyer has informed the lender regarding their income, expenses, assets and liabilities. The lender may also have seen their credit report. The buyer provided you with a letter from the broker stating an opinion of what the buyer can afford. Pre-approved This buyer has provided a lender written evidence of income, expenses, assets, liabilities and credit. All information has been verified by a lender. As a result, much of the paperwork for this buyer's loan has been completed. This buyer will probably be able to close quickly. They provide you with a letter (pre-approval certificate) from the lender. You're as certain as possible that this buyer can close. As a potential buyer, you can see that being pre-approved will give you the best chance of getting your offer accepted. This is critical in a competitive situation. 2. Making verbal agreements If you're asked to sign a document containing instructions contrary to your verbal agreements-don't! For example, the seller verbally agrees to include the washing machine in the sale, but the written purchase contract excludes it. The written contract will override the verbal contract. More importantly, your state may require that contracts for the sale of real property be in writing. Do not expect oral agreements to be enforceable. 3. Choosing a lender just because they have the lowest rate While the rate is important, consider the total cost of your loan including the APR, loan fees, discount and origination points. When receiving a quote from a lender, insist that the discount points (charged by the lender to reduce the interest rate) be distinguished from origination points (charged for services rendered in originating the loan). The cost of the mortgage, however, shouldn't be your only criterion. Have confidence that the company you select is reputable and will deliver the loan with the terms and costs they promised. If in the final hours of the transaction you determine that the lender has suddenly increased their profit margin at your expense, you won't have time to start again with a different lender. Ask family and friends for referrals. Interview prospective mortgage companies. 4. Not getting a written Good Faith Estimate of closing costs Within three business days after the lender receives your loan application, you must receive a written statement of fees associated with the transaction. This is both the law and the best way to determine what you'll pay for your loan. Bring the Good Faith Estimate (GFE) with you when you sign loan documents. You should not be expected to pay fees which are substantially different from those contained in your GFE. 5. Not getting a rate lock in writing When a mortgage company tells you they have locked your rate, get a written statement detailing the interest rate, the length of the rate lock, and program details. 6. Using a dual agent - i.e., an agent who represents the buyer and the seller in the same transaction. Buyers and sellers have opposing interests. Sellers want to receive the highest price, buyers want to pay the lowest price. In the standard real estate transaction, the seller pays the real estate commission. When an agent represents both buyer and seller, the agent can tend to negotiate more vigorously on behalf of the seller. As a buyer, you're better off having an agent representing you exclusively. The only time you should consider a dual agent is when you get a price break. In that case, proceed cautiously and do your homework! 7. Buying a home without professional inspections Unless you're buying a new home with warranties on most equipment, it's highly recommended that you get property, roof and termite inspections. This way you'll know what you are buying. Inspection reports are great negotiating tools when asking the seller to make needed repairs. When a professional inspector recommends that certain repairs be done, the seller is more likely to agree to do them. If the seller agrees to make repairs, have your inspector verify that they are done prior to close of escrow. Do not assume that everything was done as promised. 8. Not shopping for home insurance until you are ready to close Start shopping for insurance as soon as you have an accepted offer. Many buyers wait until the last minute to get insurance and do not have time to shop around. 9. Signing documents without reading them Whenever possible, review in advance the documents you'll be signing. (Even though some specifics of your transaction may not be known early in the transaction, the documents you'll sign are standard forms and are available for review.) It's unlikely that you'll have sufficient time to read all the documents during the the closing appointment. 10. Not allowing for delays in the transaction In a perfect world, all real estate transactions are close on time. In the world we live in, transactions are often delayed a week or more. Suppose you asked your landlord to terminate your lease the day your purchase transaction was scheduled to close. A day or two before your scheduled closing date, you discover your transaction is delayed a week. In a perfect world, no one is inconvenienced and your landlord is willing to work with you. More likely, however, your landlord is inconvenienced and angry. Will you be thrown out? Will you have to find interim housing for a week or more? The eviction process takes a little time, so the Sheriff won't immediately remove you, but this type of stress-producing episode can be avoided. How? Terminate your lease one week after your real estate transaction is scheduled to close. That way, if there is a delay in closing your transaction, you have some leeway. This approach might cost a little more, then again, it might not.

THANK YOU!

VA Loans for VETERANS

Thank you for filling out the application form.

We will respond within one business day.

In the meantime if you have questions please call us at 800-999-2489 X8022.