It is getting more and more common that my company is asked to save a real estate transaction at the 11th hour. I got three calls in the last two days from listing agents that have had their sales put in jeopardy by pure incompetence from the lender handling the transaction for the buyer. Two of the loan officers that work for me have also rescued deals this week! It is worth a few minutes to analyze what is happening.
Often, these transactions were originated by either mortgage brokers or credit unions. Brokers are at a real disadvantage because their chain of communication to underwriting is usually filtered by a wholesale loan rep who may or may not have a good relationship with the underwriter decisioning the loan. In the past, the communication problems that are inherent in the wholesale lending world were often masked by the endless supply product options (both Alt A and Subprime) available to brokers. Since those product offerings, for the most part, have been eliminated, these loans that were not packaged correctly in the beginning turn into failed sales.
Credit Unions are wonderful institutions to get a car loan or use in lieu of a bank for a checking or savings account. Some even do a great job of making home equity loans but, for the most part, they are not experts at mortgage lending. Credit Unions often outsource their mortgage lending to brokerage or banking operations that are more capable of handling origination volume. This in turn just adds another layer of communication to an already challenging process. Add to this the problem of cross training in most CU operations. The same loan officer that is working on a mortgage loan was standing in a teller line that morning or working in collections that afternoon. They often don't have the experience or the knowledge to handle a difficult loan transaction.
I am always ready and willing to step in and save a deal. I only wish consumers would save themselves the grief and come to me first. 4,869 registered loan originators are all that are left on Oregons registary from nearly 20,000 that have been registered at some point. Many of those are from out of state. The numbers have declined significantly over the last couple of years. I can only hope the quality goes up as the quantity goes down.
As those of you who read my blog know, I am a huge football fan. I love it on every level! I will watch peewee football, middle school football, high school football, or NFL football. Heck, I am such a football nut that I will even sit down and watch a CFL game (even though they have goofy rules). You should also know that I live in Canby and belong to the "Canby Booster Club". So go Cougars beat Sprague this weekend. That would setup a showdown with the Centenial - Clackamas winner ( I am guessing Clackamas) After that win we would face a real test in what will probably be either Sheldon or Lake Oswego.
This weekend is week two of the Oregon 6A football playoffs and I thought I could do a great service by posting the bracket here:
Yesterday I faced a common dilemma for business; was it better to give my services away and have my customer leave the transaction happy or make a profit and risk a potential failed sale?
Let me first explain the circumstances. I had received a loan application from a couple about 6 weeks ago for a USDA guaranteed loan. In case you don't know, these loans are zero down and the seller is allowed to pay closing costs. The USDA charges a 2% guarantee fee that can be financed. The seller (Metlife) had agreed to pay 5% of the buyers closing cost. We had our work complete in about 2 weeks, including order and receipt of the appraisal and all other required documents, underwriting, and completion of the file per USDA requirements. USDA in our area is overwhelmed to say the least. They took nearly 4 weeks to complete their underwriting for the simple guarantee. The performance (or lack thereof) of the area USDA field office would be a good source for another blog. The delay by the USDA caused us to deliver our docs on the date the contract call for closing instead of a week or so early as is our usual practice.
Here is where the trouble started. The title company was busy when the docs arrived on Friday afternoon and couldn't get the buyers into sign until the following Monday afternoon. The seller, per the purchase agreement, charged a $100 a day late charge, which in this case added up to $400. Additionally, because we were funding in November, the taxes were paid at closing but the buyer had 7 months in tax pro-rations to pay back to the seller which was a month more than I had originally estimated. The title fees ended up being more than customary and there were some HO transfer fees we hadn't anticipated. When everything was all done, the borrowers were required to bring to escrow about $1000. The borrowers are a young married couple, the husband was a laid off engineer. When the escrow officer told them (without my knowledge) that they were going to need to bring in $1,000 they freaked out! They were anticipating bringing in less than $100. This is a small loan and my commission is considerably less than $1000.
What would you have done? Give your services away and maybe have a happy customer or hold you ground, risk alienating the customer and hope they could come up with the extra money? I chose the former. I am not a charity, but I refuse to risk this young couples dream of homeownership over money when I have the power to fix it. I promptly ordered the escrow officer to give the borrowers a $1000 lender credit!
I suppose you are curious what happened next. Yesterday afternoon the borrowers signed their loan documents. They were quickly converted from scared and angry first time buyers to happy homeowners. Today they get the keys to their new condo! I may have worked for free on this one...but it was worth it.
This real estate market continues to confuse and perplex. One day I am so busy that I do not have time to eat lunch. The next, nobody calls, and my outgoing marketing efforts meet with deaf ears. One day I am encouraged by a drop in rates that should create refinance opportunities, the next day I am met with lending guidelines that are more restrictive and property values that have dropped in turn discouraging refinances. Last week the "home buyer tax credit" was extended and improved but this week we face the reality of tougher credit qualifying on FHA. This is a brutal merry-go-round and I want off!
All we want to do at Academy Mortgage is help our clients find affordable home ownership...that goal is getting more and more difficult be we are finding tools to help. We are also dedicated to the congruent goal of helping our Realtor partners succeed. Again, our unique tools are helping. Ask me about "Buyer Acquire", "Score Guardian", and "Credit Xpert". Watch the video here for a taste of how I can help you build your business at no cost to you:
Every once in a while you have to hit a curve ball. Last month my father-in-law, who is 81, had triple bypass surgery. After the operation we moved him into a facility in Lynnwood, Washington call Manor Care. The correct name should be "Manor Could Care Less", but that is a different story.
Last week we finally decided Frank needed to move out of "Manor Could Care Less" so he moved in with us. It has been awesome having him at our home. He loves our 5 kids dearly and shares all kinds of fascinating family history and stories with us. It has been a bit of a disruption from our normal lives but I am of the belief that is what family if for!
I just got a call from my wife while at the office to tell me he isn't feeling well. So she is packing up and taking him to the emergency room. Since it is the end of the day, I am going to go along too. This is not how I had planned to spend my evening but with five kids I have learned to be flexible over the years. I expect to spend the next two or three hours sitting with him in emergency learning more fascinating history and helping him gain the confidence he needs to recover. All I can say is thank god for Medicare. I cannot imagine how families deal with medical ordeals like this without insurance (good insurance) not the kind of care denial that you get from Aetna or United Health. I expected my day and circumstances to be different this time of year but in life as in business, you have to be able to hit a curve ball.
Call me if I can help even out your credit life with a new home loan.
With Halloween, Thanksgiving, Christmas, and New Years heading our way soon. It is time to make some cheese balls :)
The Best Cheese Ball Recipe
From the kitchen of Audrey Howe
Handed down from my mother
My recipe is just from memory - from watching and helping my mother make this for every holiday. There are no exact proportions.
Use about 1 pound of cheddar cheese. (If I have leftover cheeses of different varieties - I mix them.) One package room temperature cream cheese. Begin by grating the cheese. Mix the cheese and cream cheese in a food processor, or with a mixer, or by hand. It needs to be blended well. (I usually blend it, then let it sit for a while, and blend it again; repeating this
several times.) Add a liquid (7-up, Sprite, wine, etc.) to moisten. Sprinkle with garlic powder to taste. Roll into a ball. Roll the ball in chopped walnuts. (Any kind of nut would work). Wrap with waxed paper or plastic wrap. Refrigerate. I usually make it a day or two in advance, so the flavors blend together. Serve with crackers.
Also, don't use garlic salt; be sure it is garlic powder.
Call me if you would like help with your cheese ball or have any real estate finance questions.
Fall is my favorite time of year in Oregon and it always has been. I am not a fan of hot temperatures so the fall brings relief. Nothing is better than a cool crisp October day to bring about that euphoric feeling of all things macho. Of course, I speak of college football, a deer, elk or bird hunting trip, or a day on the river chasing the elusive salmon or maybe a big sturgeon. Nothing rivals the pastimes of fall for the outdoorsman in me.
My best weekend would be spent leaving early on Saturday for an OSU football game in Corvallis. These days start with a hearty breakfast at the Peacock; several hours tailgating with friends, then settling back to watch the beavers win a conference game in the Skybox. This is college football at its finest...nothing else compares. After the game, a quick trip to camp in a luxury motor home or fifth wheel in the cascades or maybe the coast range to go deer or elk hunting on Sunday morning. Up early Sunday morning with meat hanging in camp by noon. A weekend like that would be one I could savor for years.
It is rare to be so fortunate as to experience the perfect fall weekend...but at 51 I still have hope that I will live long enough to experience it.
On Monday I am ready to work for my clients getting them the perfect home with the perfect home loan. That is almost as good as a football and hunting weekend.
Looking for a good pumpkin patch opportunity for the kids? Some of the best in the Portland metro area are in the vicinity of Canby. I good way to start your Saturday adventure would be to head cross the Willamette River on the Canby Ferry. This is always a thrill for the kids and at the bargain basement price of $1.25 you will have money left to buy pumpkins.
First stop is the Flower Farmer on Holly Street in Canby. It is less than a mile from the ferry dock! The Flower Farmer is one of the more unique pumpkin patches anywhere. The kids board a small train and ride around the circle to pick out a pumpkin then board the train to return to the main depot. The kids just love this place.
Next stop on pumpkin day is Hoffman Dairy Garden on Knights Bridge Road just outside of Canby. Hoffman's has a very very good Haunt. They turn their old large dairy barn into one of the premiere haunted houses/barns that I have seen. Not for the faint of heart. Hoffman's also has several exotic animals to view. They feature a lion, a tiger, a bear, a camel and several other unusual animals for a farm in Oregon.
Lions Tigers and Bears (Real)
Come visit our exotic animals from all over the world!
Open everyday starting October 3rd through October 31st
Hours: Monday - Sunday 10:00 am to 6:00 pm
Bring the family to pick your pumpkin and enjoy the activities.
Farm and Reptile parties available all year round!
Email: Allevents_1@msn.com
Hoffman's Dairy Garden
Harvest Festival Information 503-737-4921
You final stop on pumpkin patch day should be at Fir Point Farms on Ehlen Road in Aurora. This is a very traditional and large pumpkin patch. Fir Point is a 35-acre farm that is near the freeway. They have a nice nature path, hayrides, fresh apple cider, corn cannon, hay maze, corn maze, a very nice hay slide, and lots of great food. One of my favorite features of Fir Point is the Hazel Nut House. This is simply a small cabin filled knee deep in hazel nuts. It is an incredible feeling to walk through and play in thousands of pounds of nuts!
Fir Point Farms is a great way to end your day and feel the tradition of the pumpkin patch experience.
It seems to happen every year...the kids go back to school and withing two weeks they are sick. Typically I seem to catch the bug the following week. Why should this year be an exception? Of course it is not! Last night I woke up with a terrible cough. I can feel the wave of this virus coming over me like sliding into a hot bathtub. The aches and fever are hitting now and I am sure in won't be long until nausea sets in. I am just hoping it is not the swine flu.
Here is my dilema: I have work to do and loans to close. Tomorrow is the last day of the month!!!!!!!! So here is sit in deaths door writing my blog because I am too light headed to do anything else. At least four, maybe five of my fellow loan production staff have suggested I go home. While I am trying my best to avoid infecting anyone, the things are so ultra contageous that I fear it may be too late.
So, tonight I am taking home my computer and working from there tomorrow. I won't have all the resources of the office but I really don't want to infect anyone else.
Art Marine
Branch Manager
10220 SW Greenburg Road, Suite 250
Portland, OR 97223
503-764-4005 direct
503-799-7085 cell
1-866-510-4716 fax
www.academy.cc/artmarine
art.marine@academymortgage.com
Click Here for Online Free Credit Approval
Now that the dog days of summer are past, it is time to get serious with this business. I have always had my best months in October, November, and once in December. I have always felt there were just a few factors:
I am not as distracted so I work harder - back to the law of attraction
Customers are not as distracted so they stop putting off their purchase ore refinance decision
Kids are in school and people know they need to get stable
September and October is perfect house hunting weather
These may all be reasons in my own mind, but year after year my best months have always been in the Fall. This is one Loan Officer that welcomes the end of summer and welcomes the new season.
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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