The Mortgage Group Ltd. is comprised of the area's most knowledgeable and caring mortgage professionals. We have helped thousands of families in New England realize their dream of home ownership. Since our inception in 2004, we have arranged$1,089,937,912.00 in mortgage loans while serving 5,127 families.
"May We Serve You Next?"
Join us in celebrating our latest achievement... Customer satisfaction surveys tell us 98% of our clients would happily refer their family and friends to The Mortgage Group.
The Mortgage Group Ltd. has helped over 5000 New England families achieve their goal of home ownership and financial security. In the process, we have closed over $1,000,000,000in mortgages.
We thank you for helping us reach this Billion Dollar Milestone!During that same time, Inc. Magazine recognized us as one of the fastest growing mortgage companies in New England.
Thanks a billion!
If you'd like to be our 5,128th client and experience our great service and track record, just call!
Sean Wheelan Personal Mortgage Consultant 401-965-9384 SWheelan@tmgltd.biz www.seanwheelan.com
Mortgage rates barely moved in Bankrate's weekly survey.
The benchmark 30-year, fixed-rate mortgage edged up 1 basis point, to 5.53 percent, according to the Bankrate.com's national survey of large lenders. A basis point is one-hundredth of 1 percentage point.
The mortgages in this week's survey had an average total of 0.32 discount and origination points. One year ago, the mortgage index was 6.6 percent; four weeks ago, it was 5.56 percent.
The benchmark 15-year, fixed-rate mortgage slipped 1 basis point, to 4.83 percent. The benchmark 5/1 adjustable-rate mortgage jumped 9 basis points, to 4.95 percent.
Who gets the credit?
Home buying activity is picking up in many U.S. markets, sparking debate about whether a federal tax break deserves kudos for the modest turnaround.
Last February's economic stimulus package included a tax credit for first-time homebuyers who purchase a primary residence before Dec. 1. Eligible homebuyers can receive a break of up to $8,000 on their taxes so long as their gross adjusted income does not exceed $75,000 for singles or $150,000 for married couples.
Coincidentally or not, housing activity has rebounded since the introduction of the credit. Nationally, new home sales and existing home sales have recorded gains for four consecutive months.
The tax credit is scheduled to expire Nov. 30, although there is widespread speculation Congress will vote to extend the program into 2010.
David Kuiper, a mortgage planner at First Place Bank in Holland, Mich., says the credit has been a big spur to sales activity.
"The first-time buyer tax credit has had a huge impact on our local market," Kuiper says. "This month, over 80 percent of our purchase business was first-time buyers."
Weekly national mortgage survey
Results of Bankrate.com's Aug. 26, 2009, weekly national survey of large lenders and the effect on monthly payments for a $165,000 loan:
30-year fixed
15-year fixed
5-year ARM
This week's rate:
5.53%
4.83%
4.95%
Change from last week:
+0.01
-0.01
+0.09
Monthly payment:
$939.96
$1,290.24
$880.72
Change from last week:
+$1.04
-$0.86
+$9.03
Mortgage consultant Jim Sahnger says the tax credit has been the "largest contributor" to renewed homebuyer interest in his South Florida market. The credit "has provided the additional financial incentives to get buyers off the fence," says Sahnger, who works for the Palm Beach Financial Network in Stuart, Fla.
Dan Green, a loan officer with Waterstone Mortgage in Cincinnati, says the buzz surrounding the tax credit has even piqued the interest of shoppers who earn too much to qualify for the break.
"It's similar to the Cash for Clunkers program -- just an awareness is enough to affect sales," says Green, who is also author of TheMortgageReports.com.
Brian Peart, president of Nexus Financial Group in Atlanta, agrees. "People do what other people do," he says. "If the perception is that everyone is out picking up bargains, more people will do it."
Secondary role
Others are more tempered in their assessment of the credit's impact. Jeff Lazerson says first-time homebuyer activity is "very heated" in Southern California. However, the president of Mortgage Grader in Laguna Niguel, Calif., flatly states the tax credit is "definitely not" the primary factor driving sales. Instead, sales are soaring because "prices are down some 50 percent for these starter homes, to 2002 price levels," he says.
Sue Woodard, business development consultant for Lakeland Mortgage in Minneapolis, also believes the tax credit's impact has been relatively modest so far. Many home shoppers remain either unaware of the credit or misinformed about how it works, she says.
"I don't think people understand clearly that this is a tax credit -- meaning dollars in their pocket," she says. "(It's) not a tax deduction. (It's a) totally different thing." The credit "just hasn't had enough time to work," but could become a bigger success over time if Congress extends it into 2010, she says.
Policy wish list
Mortgage professionals also are not shy about suggesting additional housing-related policy actions they'd like to see. Woodard and Kuiper hope the government puts the brakes on the Home Valuation Code of Conduct, which has changed the rules regarding how lenders are allowed to choose appraisers.
Realtors, mortgage brokers, home sellers and others have complained HVCC unnecessarily complicates the home appraisal process. They accuse it of scuttling untold numbers of potential sales. Woodard says HVCC has been "absolutely devastating" since it went into effect in May, and Kuiper says it's "done more harm than good."
A bill introduced in the House of Representatives would implement an 18-month moratorium on HVCC. "It will be coming before Congress in September and desperately needs to get passed," Woodard says.
Meanwhile, Lazerson says the government needs to take a more active role in securing a pathway to subprime lending. Although subprime loans are thought to be at the heart of the housing crisis, such lending "is not in and of itself predatory," he says.
A government effort to guarantee such loans or incentivize the private sector to fill the breach is good public policy, Lazerson says. "Where else can these folks turn?" he asks. "How can this country possibly absorb its housing vacancies otherwise? We don't want to go back to the olden days of knee-breaking loan sharks."
Sahnger says it's difficult to identify a single government program or policy that could act as "a magic bullet" and spark the housing market back to life. However, he would like to see the homebuyer tax credit extended and expanded so that all buyers -- first-time or not -- receive a $15,000 credit.
He also worries the fragile housing upturn now under way could falter if the government does not extend the first-time homebuyer tax credit and the Federal Reserve sticks to its pledge to stop buying up mortgage-backed securities at the end of the year. The latter $1.25 trillion campaign has been credited with driving long-term interest rates -- including mortgage rates -- lower.
"Should either of these two programs go away in 2010, I can see where housing sales and prices will fall further," he says.
Fall River, MA—August 17, 2009--While many Massachusetts mortgage companies are closing their doors, The Mortgage Group Ltd. is growing at a pace recognized as extraordinary by Inc. Magazine. The company achieved the highest growth rate out of all the mortgage companies in Massachusetts. A mere two New England-based mortgage companies met the stringent requirements for the award, which highlights privately-held companies for their outstanding growth between 2005 and 2008.
The Mortgage Group Ltd., based in Fall River, MA, has offices in Massachusetts, Rhode Island, New Hampshire, and Vermont. This prestigious award proves that this provider of residential home loans for purchase and refinance is serious about assisting New England homeowners, no matter what it takes.
Don Lambert, CEO, and Division Manager (Warwick, RI branch), Sean Wheelan, see only opportunity in the climate created by the credit crisis and tightened banking regulations, bonding and compliance issues. Don and his team have created a new business model for the mortgage business.
Combining a teamwork culture that promotes tapping into the knowledge base of the group and utilizing the latest technology, Don Lambert created a system that truly supports his team of loan officers in doing what they do best-- assisting home owners.
FHA Won't Implement HVCC The Federal Housing Administration has no plans to implement the Home Valuation Code of Conduct, Commissioner David Stevens told a delegation from the National Association of Mortgage Brokers. NAMB's FHA chairman John Councilman, who attended the meeting, reported that Mr. Stevens said he was well aware of the problems originators have been having with the code, which only applies to loans sold to Fannie Mae and Freddie Mac. That being said, the commissioner added FHA is looking at alternatives it feels would insulate appraisers from pressure from originators. Mr. Stevens also told NAMB that plans for FHA to start risk-based pricing for mortgage insurance on Oct. 1 will not be implemented anytime soon. The meeting also clarified upcoming changes in the Real Estate Settlement Procedures Act as it applies to FHA. Mortgage brokers will no longer be allowed to charge discount points starting on Jan. 1, 2010. The 1% fee limitation has been removed, and there is no limit as long as the fees are customary to the market. Furthermore, all fees, including those that are charged by the lender, must be lumped into one sum. A yield-spread premium may be charged, but it must be disclosed on a separate line on the good- faith estimate. FHA reserves are higher than they have ever been, Mr. Stevens told NAMB. That being said, he would not rule out that the government would have to bail out FHA because those reserves are projections and those projections could be changed. Still the average credit score for the program has risen from 633 to 693, due to the elimination of what were termed "troublesome programs" such as seller-paid downpayment assistance and cash-out refinancings.
I was still able to close a conventional loan, from P&S execution, to the closing table in 18 calendar days!!!
The true pros are creating teams and relationships that can make things happen! Join me in my 10th year as a Mortgage Originator. I'd love to earn your business as a client or referral partner!
Special thanks to Stacey Susi, the Realtor, she helped make everyone look good!
Apparently HVCC is a means for Appraisal Management Companies (A.M.C.'s) to gouge my valued clients.
We are doing mostly FHA purchase and streamline refis at this time, so I hadn't yet had the occasion to experience the HVCC appraisal ordering process. Boy was I in for a shock! Taylorbean has contracted with an AMC called Security One. I submitted my loan, locked the rate and went to order the appraisal via there on line system. When it came to the cost, my jaw hit the ground. My mortgage practice is located in an area where appraisals typically cost $325-$350 for single family homes. When I finished the order form, and $450 was the indicated price, I thought I had done something wrong. I started over 4 times, getting the same result before I contacted my A.E. I was doing it right. I then called Security One, to let them know I would not allow them to GOUGE my client, and that I would no longer do business with Taylorbean or any other lender they were associated with.
Are any other Mortgage Brokers finding similarly high prices with this new system? I hope this is isolated, but then again I don't as I'd like some more amunitiion to get rid of this assinine rule.
Housing was hoping to get a big boost from the latest addition to the mammoth stimulus bill working its way through Congress. Senate legislators unanimously approved a proposal earlier this month that would allow a tax credit for home buyers of 10 percent of the value of new or existing residences, up to a $15,000 limit. However, it did not make it in to the recent "stimulus package". Current law provides for a $7,500 tax break but only for first-time homebuyers. "It is time to fix housing first," said Sen. Johnny Isakson, R-G. Isakson's office said the proposal would cost the government an estimated $19 billion. In all, the stimulus reached a total of just under $800 billion. Proposals to move rates on real estate loans down to 4.0% did not carry in the Senate. (Thanks guys, I'd rather have pork anyhow!) Source: The Associated Press.
The U.S. House will vote on a bill to overhaul the Hope for Homeowners program, which by many accounts, has been a flop so far. Congress approved the program in July with the hope that it would aid 400,000 home owners. So far the program has attracted only 451 applicants and just 25 loans have closed. (That's 25! Out of how many millions of homeowners!!!) "HOPE for Homeowners, was designed to help families refinance into safer, more affordable loans, in many cases helping those families avoid a devastating foreclosure," says NAR President Charles McMillan. "Despite being well-intentioned, the HOPE for Homeowners program has had limited success. Lenders have found the program difficult to participate in because of many of the program's constraints." The proposed revision to the program will lower participation standards, cut costs for consumers and reduce the cost of implementation for lenders. The proposed reform will also provide a safe harbor for loan servicers that modify loans and make permanent the increase in deposit insurance to 250,000. Source: Reuters News
So what can we conclude? Politicians like to grand stand and reporters like a good scoop (whether its the truth or not)! It is generally agreed upon that the housing market is exceedingly important to our economy and consumer sentiment, however, the powers that be have (to date) essentially ignored it. The proposals so far, when projected out in to the future, would appear to do more damage than good...
My $.2: Increase the tax credit to $15,000, do not require it to be paid back over 15 years as is currently is required, pressure Fannie and Freddy to slightly loosen underwriting guidelines for well qualified buyers and investors, and to get rid of their Loan Level Price Adjustments (which increase rates significantly when greater than 70% of a home's value is borrowed and the credit score is under 740), and most importantly find a way to keep rates around 5% or lower for as long as is needed!!!
PS: FHA is still doing a great job approving folks with verifiable income and credit over 620. USDA still allows for 100% purchase financing in the less populated areas and for low to moderate income families. For us RhodeIslanders, most of the western part of the state meets that guideline. For more info please visit www.myRImortgage.com
Sean Wheelan Personal Mortgage Consultant The Mortgage Group, Ltd 401-965-9384 Cell SWheelan@TMGLtd.biz Email www.myRImortgage.com Web Site 508-276-0171 Fax
Have a great day!
PS: While my business is good and growing steadily, it is important for you to know that I am NEVER too busy to help those you refer to me: your family, friends, neighbors, and coworkers.
Residential Loan Application: This document (when complete) gives us an accurate picture of your whole financial situation. By signing this form you are stating what you know to be true regarding all pertinent information regarding your financial status.
Good Faith Estimate: This document breaks down the costs of obtaining the mortgage, the required pre-paid items, and the required amounts to be deposited in the escrow account. When comparing costs between lenders it is always best to compare interest rate and closing costs (not including escrow and pre-paid items) to get a more accurate picture of the lender's program.
Truth In Lending: This is a Federal form that was created for the consumer to help them better understand the effective rate of borrowing money with closing costs included (A.P.R) and the amount of interest paid over the life of the loan. This document also sets forth any special clauses like whether the loan has a pre-payment penalty or if the mortgage is an assumable mortgage.
Servicing Disclosure Statement: This document explains that we are a broker not a bank. Most banks will service their loans that includes taking your monthly payments, handling your escrow account, and answering your specific loan related questions after your loan has closed. Up until your loan closes we will be your point of reference for any loan related questions. After the loan closes however, we transfer all the rights to your loan to the specific lender we chose for you. From this point on you may contact your lender directly. We transfer 100% of the servicing to the specific lender we approve you with, but please remember if you have any problems with your loan and the lender is not handling it to your standards, feel free to contact us and we will intercede for you.
Borrower Signature Authorization: This gives us your permission to verify the information you've given us with your mortgage lender(s), employer(s), creditor(s), landlord(s), bank(s), and any other source we may need to obtain information from. In other words, this is your written consent that we send to let them know you (their customer) is the person ultimately requesting they respond.
Mortgage Loan Origination Agreement: In some circumstances the lender may offer the opportunity for the customer to pay less up front costs in trade for a slightly higher interest rate. However, this program may not always be available. By paying points or origination fees you may obtain a lower interest rate and save more money over time. Please request more information from your loan officer to determine what type of interest rate and closing cost scenario would best suit your needs.
Right to Receive a Copy of Appraisal: Every borrower has the right to receive a copy of his/her appraisal once it has been completed and paid for.
Equal Credit Opportunity Act: This document discloses the fact that we do not discriminate against borrowers based on race, color, religion, national origin, sex, marital status, age, or for any other matter.
Request for Copy of Transcript of Tax Form (4506): This form allows the lender to get a copy of the taxes you filed with the Federal Government and compare them with the copy of taxes we've submitted to them for quality control purposes. This form is typically only required for self-employed borrowers or customers who are paid on commission.
Rate Commitment Option: This form explains our rate lock policy and confirms our conversation with you at the time of application.
Many states also have unique disclosures. For example, my home state of RI has 5 state specific disclosures. Their intent is to make sure transactions have a tangible net benefit, borrowers are educated, they do not participate in "flipping" and that they understand what a "high cost" and sub prime loan consists of.
Lots of good points, and I begrudgingly agree with the blogger on most counts. In my area (southern New England) we are seeing bidding wars on some properties which gives me some hope! To be fair though, it is on the REO's that are in good condition and freshly on the market. Many bank owned properties are about to enter year 2 on the market, making it increasingly difficult to move them. This has caused a certain segment to get out and grab their home at a good value, but for those homes with a lengthier time on the market, it only hurts the bigger picture.
If you are looking to buy a home be prepared to make your offer at list price (you will still be getting a good deal). The good ones are moving quickly. If you are looking to refinance, A bird in hand (5%) is worth 2 in the bush (4.5%). Market speculating simply does not work. If it makes sense to refinance or buy a home TODAY, do it today and you'll be happier tomorrow!!!
All and all, we have some positive blips, but 2009 will be another very challenging year. I'm up for the challenge, how 'bout you?!
* * * * DANGER! HARD CORE REAL ESTATE TALK AHEAD. * ** *
REAL ESTATE IN 2009 WILL BE . . . . . ?
It appears that we've seen fewer year end predictions for the coming year, 2009, it's understandable since:
The economy is like a moving target.
Many predictions are more like a wish list.
The government is rearranging the deck chairs and a few passengers are going to go overboard.
Inspired by Jim Crawford who asks 10 questions about our predictions for 2008, this writing continues this series to have a comparative look-back for January 2010. Of course, the below are my thoughts and although I haven't been able to shake the negative predictions from a year ago, I realize that the economy and our business must be given the attention that it will take to survive and profit by concentrating on what is working and focusing on where the real estate business is.
1. Mortgage Rates Lower or Higher? Higher. Eventually, inflation will have to cause a reduction in the money supply and cause rates to go up for everything. With the mortgage mess and the concomitant losses by our foreign investors, sovereign wealth funds, etc., unless the government stops printing money, rates will have to go up. Now that worldwide investors have learned what happened to their money, they will be loathe to invest in U.S instruments and particularly any type of mortgage backed security.
2. Credit Loosen or Tighten? See #1.
3. Numbers of Agents in Your Market Up or Down?Down!!! Let me say it again -Down!!! The condition of the real estate market is no longer a secret although the NAR has tried to keep it so. While prospective new agents don't understand the business of real estate, they do hear the news and since the condition of the real estate industry is now on YouTube, FaceBook and the family next door was foreclosed. The growth of Buyers Agents will continue.
4. Real Estate Inventory Levels in Your Market Increase, or Decrease? Increase. I've seen them increase for the past 4 years and until the economy begins to grow again, what would cause foreclosures and short sales to decrease? I do expect foreclosures and short sales to begin to be a larger percentage of the overall inventory in areas where they have just begin to grow. Resetting 3-5 year ARMs and negative equity will cause more foreclosures.
5. Better Real Estate Market or Worse? Worse. Overall slowing of the economy, higher unemployment, higher taxes, more restrictive and expensive mortgage financing will worsen the real estate industry in 2009. Slower auto sales will impact many segments of the economy causing middle class home buyers to stay where they are.
6. Buyer's Market or Seller's Market? Buyer's Market. By the classical definition, "more sellers than buyers", we have a buyer's market. This will make pricing increasingly harder as comparative sales become harder to find. Home owners with negative equity will not be able to sell NOTE: There is some movement on the bankruptcy code, but that will help only a small percentage of home owners.
7. More Foreclosures or Less? More. As ARM mortgage instruments reset and payments increase beyond many home owners' ability to pay, natural relocations for employment and inability to sell for what is owed will send more homes to the foreclosure market.
8. Homes Sales Prices Flat, Rise, or Fall? Fall. Foreclosure sales, short sales, relocation sales and other market forces will force prices down. As unemployment continues to grow, the median incomes will qualify fewer buyers.
9. Condo Sales Prices Flat, Rise, or Fall? Free Fall!!! As the price of town homes and single family detached homes fall, condominium homes will return to their historical position as the "last resort home" available for lower price buyers. Defaults on condo fees will cause higher overall condo fees and disqualify many prospective condo purchasers.
10. Commercial Real Estate Stay Strong or Start to Soften? Continue to Soften. General slow down in the overall economy will cause a retraction in commercial real estate investment. Commercial real estate is sensitive to the world economy. That's already happened and continues. Shopping centers have increased vacancies, retailers are consolidating locations and closing shops. About the only REITs that might show a profit are those that invest in medical and health facilities.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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