AMP Opinion

As we continue to trudge forward in our industry, many mortgage loan originators are finding that they just do not have what it takes to make a decent enough living.

Starting October 1, 2011, USDA has changed the fee structure it charges to support the Guarantee RD home loan program. The "upfront" 3.5% fee has now been reduced to 2%. However, like the FHA home loan program, USDA has decided to charge an annual fee. This new cost is 0.30 of the loan amount. This will increase the cost of this program to homeowners adding $25 per month for every $100,000 borrowed. Unlike FHA, this program still does not require a down payment and is still the most affordable loan program out there if you meet the qualifying guides.

2011 is looking like its going to be a transition year for many of us in the mortgage industry. Are you prepared for 2012? Have you considered having your own mortgage branch? Would you like to be able to recruit loan originators and get paid for managing your own office? American Mortgage Partners has opportunities for those who want to build an office and get paid for more than just originating loans. We are looking for those of you who are use to managing people.

Private Mortgage Insurance companies are getting back to the insuring of mortgage loans. Many have reduced their premium and have expanded their mortgage insurance coverage so that they will now insure 97% of the total sales price of the home. Though the credit qualifying is tough, with a minimum credit score of 720 and maximum debt to income ratio of 41%, It is still an alternative to FHA financing.  If a borrower pays a 1% charge at close of escrow their annual MI is 0.61%. This is 0.54 less expensive than FHA loans.