With all of the news it makes everyone think--- Hey, we have new rules and a new way to get the job done. WRONG!

I have gotten numerous calls about the new housing reforms and what is currently available. From what I have gathered the following rules reign true:

• Home-owner's can refinance Fannie Mae and Freddie Mac loans without appraisal in some instances making the value of the home a non-issue.
• Home-owner's will have mortgage insurance if the loan is over 80% of the value in the home.
• Current mortgage servicers will be the ones refinancing as it currently stands or modifying the borrower's current loan.

One caller yesterday actually informed me that she was to get no mortgage insurance, a rate of 4.25%, and could go to 105% in the value of her home. I advised her that no where did I see anything about not paying mortgage insurance, nor the given that she was to obtain a 4.25% rate at little to minimal cost.

If you have personally been affected, or either know of someone who is at risk, then please visit www.financialstability.gov. This site has many questions and answers and allows borrowers to input information to see if they qualify.

Also, please review the "Making Home Affordable" information from the U.S. Treasury I am including below:

 The Home Affordable Refinance program will be available to 4 to 5 million homeowners who have a solid payment history on an existing mortgage owned by Fannie Mae or Freddie Mac. Normally, these borrowers would be unable to refinance because their homes have lost value, pushing their current loan-to-value ratios above 80%. .... The program will allow much flexibility in getting loans through...  The Home Affordable Refinance program ends in June 2010.

Whereas, when a modification is required. The Home Affordable Modification program will help up to 3 to 4 million at-risk homeowners avoid foreclosure by reducing monthly mortgage payments.

 Eligibility and Verification (taken from the U.S. Treasury Announcement)

• Participating servicers are required to service all eligible loans under the rules of the program unless explicitly prohibited by contract; servicers are required to use reasonable efforts to obtain waivers of limits on participation.
• Participating loan servicers will be required to use a net present value (NPV) test on each loan that is at risk of imminent default or at least 60 days delinquent. The NPV test will compare the net present value of cash flows with modification and without modification. If the test is positive

- meaning that the net present value of expected cash flow is greater in the modification scenario - the servicer must modify absent fraud or a contract prohibition.

• Parameters of the NPV test are spelled out in the guidelines, including acceptable discount rates, property valuation methodologies, home price appreciation assumptions, foreclosure costs and timelines, and borrower cure and redefault rate assumptions.
• Servicers will follow a specified sequence of steps in order to reduce the monthly payment to no more than 31% of gross monthly income (DTI).
• The modification sequence requires first reducing the interest rate (subject to a rate floor of 2%), then if necessary extending the term or amortization of the loan up to a maximum of 40 years, and then if necessary forbearing principal. Principal forgiveness or a Hope for Homeowners refinancing are acceptable alternatives.

If we are going to save this country loans have to fixed, banks have to be able to lend money, and homes have to sell. Let us all hope that we are looking at a better year with these changes. The biggest positive  changes seem to be in reducing the allowed monthly debt expenditures and allowing only one modification to an existing loan.

*Information reported from www. financialstability.gov and from "Making Home Affordable Guidelines" which covered the second half of this piece via the U. S. Treasury.

It's a winter world the first of March in Alabama.

Cast your two cents here!

I am at a loss--not really.

I do need your ideas and suggestions for fund raisers for our local rotary. Throughout the year we try to come up with new ideas and projects to help the community and others.

For those of you who are unfamiliar with rotary please visit http://www.rotary.org. Also, the excerpt comes from the rotary website.

Members of Rotary clubs, known as Rotarians, provide humanitarian service, encourage      high ethical standards in all vocations, and help build goodwill and peace in the world.

There are 33,000 Rotary clubs in more than 200 countries and geographical areas. Clubs are nonpolitical, nonreligious, and open to all cultures, races, and creeds. As signified by the motto Service Above Self, Rotary's main objective is service - in the community, in the workplace, and throughout the world.

Last Fall, we staffed a tiger bounce, at our Fall Festival,  and used some of that money to help underprivileged children in the community for Christmas.

Currently, we support wells being drilled in Namibia. Some of these people walk five miles to and five miles back each day to have drinking water. Imagine how hard that would be to do.

We also sponsor scholarships for young people in the community. Times are still tight for many and cost saving ideas are most appreciated.

 Image complements of www.flickr.com

For additional rotary information please visit http://www.rotary.org

I get this all of the time with customer's telling me "Well, they are only charging me ..."

Shortly after this it is is usually followed with "What is your best rate?"

and, lastly, my all-time favorite

"I do not pay closing costs!"

Once we look at the details it more often than not becomes quite clear some lenders do not disclose total closing costs as closing costs.

F.Y.I.

Normal Total Closing Costs = $2200-$3500 per $100,000 borrowed

Case in point, I had a customer call in the other day. He was dealing with his current mortgage company. He said "They are only charging me a quarter of a point to do this loan." After we got to talking that quarter of a point turned into much more as the loan was $374,000.

List of fees

Commitment Fee                              $  575.00

Origination Fee   .375                      $ 1402.50

Tax Service Fee                                 $    79.00

Flood Certification                            $    18.00

Application Fee                                 $  325.00

Mers (Electronic Registration)      $      5.00

Mortgage Release Fee                    $    10.00

Mortgage Recording                        $    69.00

Title Search Fee                                $  275.00

Attorney Fee (Closing)                   $  300.00

Document Delivery Fee                 $      7.50

Title Insurance                                 $  611.00

Discount .25%                                 $  935.00

Appraisal (No Charge)                  ________

Total Charges                                  $ 4612.00

Keep in mind as a valued customer he was only paying a quarter of a point in closing costs and was getting a free appraisal. This too was before any escrows which he wished to include. With a little more conversation, this little-to-no-cost loan was locked a half point higher than even a loan with "normal closing costs"was offering. His current lock was at 5.375%, and at $2800 in closing costs total (including an appraisal) on the day we spoke, he could have gotten a rate of 4.875% with him actually paying closing costs.

Loan amount $374,000 @ 30 years @5.375%=$2094.29 per month

Loan amount $374,000 @ 30 years @ 4.875%=$1979.24 per month

When evaluating closing costs one has to consider everything. Sometimes it makes sense, as a consumer, to pay no closing costs. However, many well intentioned borrowers are confused based on their own perception, previous transactions, or lack of knowledge. When considering a no closing cost option you should evaluate the following:

• How long do I plan to stay in this home?
• Am I expecting a large influx of money, ie, a settlement, or possibly an inheritance.
• Is this a home I need money to do work on and then try to sell?
• Would no closing costs make this loan work where closing costs included does not? (Example, taking from and adjustable rate mortgage to a fixed rate mortgage)

If you can answer yes to any of the above then a no closing cost option likely makes sense for you. My concern though is with consumers who refuse to pay closing costs as a general rule is that they do not fully understand those ramifications.

NO CLOSING COSTS EQUATES TO HIGHER RATES AND HIGHER MONTHLY PAYMENTS

Do you ever find yourself with not enough time to read the paper but you want to know about the news?

If this is the case then here is a great site for you. It is one of the most interesting websites I have come across http://www.newseum.org/todaysfrontpages/flash/.

Here is today's The Birmingham News (local for me).

NEWSEUM.ORG PRESENTS "TODAY'S FRONT PAGES"

• The Birmingham News, published in Birmingham, AL USA

Site Map • Buy Your Tickets • Privacy Statement • Copyright © 2009 Newseum

Once the main page loads simply pick the city that you are interested in. Then just put your mouse on that
city and the newspaper headlines pop up.  Double click, and the page gets even larger.

If international news catches your fancy, and if you look at the European papers, the far left side of Germany will pop up as The Stars & Stripes (European edition, of course). And, this site
changes everyday with the publication of new editions of the paper. Hope you enjoy this as much as I do.

information from http://www.newseum.org/todaysfrontpages/flash/

Did you ever have one of those days where you thought to yourself

"Now just what did I get myself into here?"

Well, I can say that on Wednesday, December 17, 2008, yours truly, and another party were formally inducted into our local rotary. The Leeds Moody Rotary is still growing and we currently have approximately thirty members. I have been attending for months; however, they only induct new members about twice a year.

My fellow victim, Jane Caudle of Covenant Bank, (I will say that as we were basically Christmas hazed into the club) and I had to play "This Is Your Life" and sing our choice of Christmas carols. She got to sing "Silent Night" and I got to sing "Jingle Bells". Mind you though this was all in holiday fun and I, for one,  really cannot sing. The co-induction chair did record our performances via his iphone. Therefore, my performance will likely haunt me via youtube or somewhere else down the line.  

After our induction was over the whole group got together and we all sang one word each of "Jingle Bells" and ended our meeting year. I can say that this was quite a fun way to be brought into this great bunch of people. 

Our local organization was able to help 11 needy children and their families, via the local Leeds City School District, this Christmas. We also contributed to a local food pantry that desperately needed help this year.

I look forward to seeing who I can get to join. And, I definitely cannot wait to see what we come up with for them to do in the next induction.

http://www.theleedsnews.net/news/local_story_358170425.html

Merry Christmas to all first and foremost.

2008 has been a trying year for our country. May God bless us and guide us into the New Year.

My 2008 Christmas Wish

I have several actually, snow would be great.

 However, as one knows in Alabama snow is a rarity. Only with unknown exceptions does it make an appearance.

My first wish is for unconditional joy, harmony, and peace of mind for everyone today. We have so much to be thankful for. Reach out and say "I need help" if you need it. While sharing with friends and family please embrace today as it will not be back tomorrow.

Joy--a state of happiness or felicity

My second wish if for sustenance. I wish for all of our basic needs to be met. This means now, and throughout 2009.  I pray that food is on our tables, our bills are paid, and we are able to sleep at night.

My puppy, Ginger, has been under the weather a bit the last few days. I have had to keep an eye on her and watch more closely what she eats as she gets into everything. Luckily, she felt better this morning and I think she knew it was Christmas too. She rested with her belly out and chin towards me in my lap for about thirty minutes. She wanted attention today and gave me some too. Of course, it helped that she got a new bacon flavored dog bone and goodies to go with it.

Image  above complements of www.flickr.com

Definitions complements of www.dictionary.com

News Flash...Looks like it is going to be a bumpier ride complicating home values even more.

If you believe all that we are hearing--Be ready to "Get out your cans."

Are you ready to hold out your tin can?

Reading articles one can hardly wonder what 2009 will be like, let alone the years to come. Due to the state of the economy now conforming mortgages are also becoming delinquent. It is now reported that these loans have become a new player in the mortgage mess. (cnnmoney.com)

The number of prime loans past due also increased to 4.34%, up 1.22% from a year ago.

With this in mind, our leaders have only just announced that we are in a recession. It took too long to recognize the troubles we are facing. Jay Brinkman, MBA' chief economist made the following statement:

"It's clear the mortgage market is being driven by fundamental issues with jobs and the economy."

Without steady infrastructure we have nothing.

Automakers are failing.

Banks are failing.

Jobs are being lost.

We need help but are we going to have to hold out tin cans to do it? 

Keep this in mind as Mr. Brinkman gives his point about previous recessions.

 "We have not gone into past recessions with the housing market as weak as it is now, so it is likely that a much higher percentage of delinquencies caused by job losses will go to foreclosure than we have seen in the past."(Jay Brinkman, MBA's chief economist).

For all of us I hope that the economy starts to turn. We are losing value in many areas as we speak. Even skilled workers cannot find work.

*See the full article that I have referenced at http://money.cnn.com/2008/12/05/news/economy/mortgage_delinquencies/index.htm?postversion=2008120515

*image complements of www.flickr.com

This is yet another quick recipe to use this holiday season.

My mother picked this up working for a neighbor many years ago.

1 loaf french bread

1 cup mayonnaise

1 cup sour cream (can be light)

1 small onion chopped or either 1/2 bottle of chopped dried onion

1 tsp garlic powder

1 tsp parsley

1 large can of meat of your choice (ham, chicken, or turkey). I prefer ham or chicken.

1 pack of shredded sharp cheddar cheese

Black olives (optional)

Butter or vegetable spread

Mix mayo, onion, sour cream, and other dried ingredients, and meat in large mixing bowl. Split the french bread lengthwise into halves. Spread butter over each bread half. Pour mixture evenly over each half. Sprinkle cheese over top and olives if desired. Place on cookie or baking sheet. Place in oven and let "toast" but not burn. Take out of oven and split into strips.

• Mixture works best to mix and then seal and refrigerate overnight to "season".
• Small strips of baked ham or either grilled/baked chicken work well too (depends on your preferences)

A couple of days ago I got tagged to do this but I have been under the weather a bit and not up to blogging nor anything for that matter.

So here you go Danny Thornton.

1) I hate to stay up late. When I was younger I could go with very little sleep and for years would get by on about 5 hours of sleep. Now though, if it is 10 o'clock I am likely to be in the bed and asleep already.

2) I hate small spaces. Yes, I am a bit claustrophobic.

3) I love home improvement projects. I like to see what I can do and save myself money without paying someone else to do it. I have done tile work, put up crown molding, leveled floors, venetian plaster, and the list continues.

4) I cannot stand beer nor most alcohol for that matter. I will drink occasionally but it is very rare that I do and only a very few products. 

5) Seafood and Turkey are no no's for me. I am allergic to both and cannot even stand the smell at times.

6) I was quite shy in school. Nowadays, especially once I get accustomed to someone I cannot shut up. A bit of a social animal in smaller to medium circles though. I guess this explains why I love working with people.

I ate this crow and let's hope no one else has too. Have a great evening.