ANOTHER ROLLER-COASTER YEAR? Lending in 2010 Shashank Shekhar ,  MBA CEO – Arcus Lending
Shashank Shekhar <ul><li>9+ Years of lending experience </li></ul><ul><li>Featured on TV & Radio shows </li></ul><ul><li>A...
Agenda
MBA Mortgage Finance Forecast 2009 Total 2010 Q1 2010 Q2 2010 Q3 2010 Q4 Total 2010 Total 1-4 ($ bil) 1966 323 441 408 325...
Loan Limits for 2010 <ul><li>One-Unit -  $ 729,750 </li></ul><ul><li>Two-Unit -  $ 934,200 </li></ul><ul><li>Three-Unit - ...
New & Improved Tax Credit <ul><li>$8000 for FTHB & $6500 for move up/down buyer </li></ul><ul><li>Max Purchase Price of $8...
CA FTHB Tax Credit? <ul><li>The proposal is for the purchase of an existing home, as well as a newly built residence.  </l...
Mortgage Rates  in 2009
Mortgage Rates in 2010 <ul><li>Fed plans to stop buying MBS end of March 2010 </li></ul><ul><li>Rates could go up 25 bps –...
Source – WSJ.com
FHA Changes - Background <ul><li>Supplementary reserves fell below mandatory 2% of the loans it insures.  </li></ul><ul><l...
FHA Condo Changes <ul><li>Spot approvals eliminated on Feb 1 st </li></ul><ul><li>50% Owner Occupied requirements </li></u...
Other FHA Changes <ul><li>HVCC Implemented on 2/15 </li></ul><ul><li>2 nd  appraisal requirement waived </li></ul><ul><li>...
Let’s connect <ul><li>Shashank Shekhar </li></ul><ul><li>Broker/CEO – Arcus Lending </li></ul><ul><li>[email_address] </li...
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Lending in 2010

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The presentation talks about some of the recent and upcoming changes in Real Estate and Mortgage Industry.

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  • START RECORDING
  • QUOTE THE NEWS SOURCE AND THE BACKGROUND
  • Morgan Stanley forecasts the 10-year Treasury to reach 5.50% by this time next year or mortgage rates over 6.50%, while Goldman Sachs predicts the 10-year Treasury will retrace to 3.25% and mortgage rates will continue to hang around 5.00%. Who&apos;s right?
  • Lending in 2010

    1. 1. ANOTHER ROLLER-COASTER YEAR? Lending in 2010 Shashank Shekhar , MBA CEO – Arcus Lending
    2. 2. Shashank Shekhar <ul><li>9+ Years of lending experience </li></ul><ul><li>Featured on TV & Radio shows </li></ul><ul><li>Author of 2 books, co-authoring next book with Carole Rodoni </li></ul><ul><li>Author of Bay Area’s leading mortgage blog </li></ul><ul><li>Specialize in First Time Home Buyer and FHA Loans </li></ul>
    3. 3. Agenda
    4. 4. MBA Mortgage Finance Forecast 2009 Total 2010 Q1 2010 Q2 2010 Q3 2010 Q4 Total 2010 Total 1-4 ($ bil) 1966 323 441 408 325 1497 Purchase 719 149 230 241 185 804 Refinance 1247 175 212 167 140 693 Refi share (%) 63 54 48 41 43 46
    5. 5. Loan Limits for 2010 <ul><li>One-Unit - $ 729,750 </li></ul><ul><li>Two-Unit - $ 934,200 </li></ul><ul><li>Three-Unit - $ 1,129,250 </li></ul><ul><li>Four-Unit - $ 1,403,400 </li></ul>
    6. 6. New & Improved Tax Credit <ul><li>$8000 for FTHB & $6500 for move up/down buyer </li></ul><ul><li>Max Purchase Price of $800,000 </li></ul><ul><li>Income Caps - $125,000 and $225,000 </li></ul><ul><li>Change in the claim process – HUD 1 required </li></ul><ul><li>Deadlines </li></ul><ul><ul><li>Contract Date : April 30 th </li></ul></ul><ul><ul><li>COE : June 30 th </li></ul></ul>
    7. 7. CA FTHB Tax Credit? <ul><li>The proposal is for the purchase of an existing home, as well as a newly built residence. </li></ul><ul><li>The current proposal is to allocate up to $200 million in tax credits. The cap on the previous tax credit was $100 million. </li></ul><ul><li>Like the previous tax credit, the proposed new credit would be worth up to $10,000 or 5% of the purchase price </li></ul><ul><li>Goes onto effect on May 1st. </li></ul>
    8. 8. Mortgage Rates in 2009
    9. 9. Mortgage Rates in 2010 <ul><li>Fed plans to stop buying MBS end of March 2010 </li></ul><ul><li>Rates could go up 25 bps – 100 bps overnight </li></ul><ul><li>Impact of “Blank check” to Fannie & Freddie </li></ul><ul><li>Are we headed to 6% in 2010? </li></ul>
    10. 10. Source – WSJ.com
    11. 11. FHA Changes - Background <ul><li>Supplementary reserves fell below mandatory 2% of the loans it insures. </li></ul><ul><li>The extra capital cushion last year was about 3%, down from 6.4% in 2007. </li></ul><ul><li>Higher claims because of more defaults. </li></ul><ul><li>7.8% of the single-family mortgages 90 days or more overdue, up from 6.6% a year earlier. </li></ul>
    12. 12. FHA Condo Changes <ul><li>Spot approvals eliminated on Feb 1 st </li></ul><ul><li>50% Owner Occupied requirements </li></ul><ul><li><15% of the owners can be delinquent on HOA dues </li></ul><ul><li>Reserve study for capital expenditure and maintenance </li></ul><ul><li>Did I say – 90 days escrows? </li></ul>
    13. 13. Other FHA Changes <ul><li>HVCC Implemented on 2/15 </li></ul><ul><li>2 nd appraisal requirement waived </li></ul><ul><li>FHA Loan after a Short-Sale – 3 year waiting period </li></ul><ul><li>90 day flipping rule waived for one year </li></ul><ul><li>Seller contribution 3% </li></ul><ul><li>UFMIP 2.25% </li></ul><ul><li>Downpayment – Will it go up to 5% from 3.5%? </li></ul>
    14. 14. Let’s connect <ul><li>Shashank Shekhar </li></ul><ul><li>Broker/CEO – Arcus Lending </li></ul><ul><li>[email_address] </li></ul><ul><li>Phone: 408.905.6261 </li></ul><ul><li>Blog: www.LendingExpertBlog.com </li></ul><ul><li>FB:Facebook.com/LendingExpert </li></ul><ul><li>Twitter: @ShashankTweets </li></ul><ul><li>Media: www.SanJoseRealTime.com </li></ul>

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