Mortgage Meltdown?

When listening to the news  you might think that no one can get a loan these days. This is far from true. Hindsight has given us a clear picture of the kinds of loans that shouldn't be offered again. But the loans that have performed more consistently are still abundantly available, and you might be surprised what you can qualify for.

Investors are looking for at least 2 of these 4 items:

1. Credit Score
2. sufficient verifiable income for the payment amount
3. equity in the property or down payment
4. Liquid assets (money in the bank, stock market, IRA's, 401k's, etc...)

The items that will make your loan more difficult to obtain:

1. Non-Owner Occupied (investment property)
2. Stated or No Income (meaning you can't prove it with W2's or Tax Returns)

Bottom Line: If you can really afford to make a regular house payment, there's a very high chance that this can be proven to a lender, who will in turn be happy to give you an excellent loan.

To make things better, interest rates are historically low.

There's even further impetus to act on this information. Even if prices decline another 10%, due to the market panic, there are sellers out there right now selling for 20% under current appraised value. So you might find a house for $160,000 today that will end up being worth $180,000 when the market bottoms out. A paradox, but true. This also means that your value is likely to be at it's highest as far as refinancing is concerned, and remember that EQUITY is one of the positive factors banks consider.

 

So it still is a great time to BUY!!!!!

 I read a very interesting article the other day on the Home values nationally.  Yes it is true that the home prices are down but there are a few factors we need to look at. 

 The hardest-hit markets drag down the average depreciation.

Mid to high priced homes were more inflated than entry level housing. When those homes depreciate, they have farther to fall than a lower priced home. This also brings down the average.

And of course PANIC!! This wonderful word creates a dominio reaction among those that are selling and thinking of buying.

 

What does this mean, it is still a great time to BUY!!!!

That is the only word that I can think of to describe what I am hearing.  I am not sure why so many people that say that the mortgageworld is their profession are so down.  Yes I understand that things are changing, welcome to the world, we have to learn to adapt.  What I really don't understand is why we have to be so down about it.  If you are unhappy make a change, there is so much business out there you just have to learn how to change with the times, that and something new called work.  I love what I do. 

 

 Thank you AR for letting me vent!!!

 

Happy Holidays to all!

Hello to all in AR, this is a bill which is being voted on next week.  Although a lot of you are not mortgage brokers it does affect you also.  This bill is trying to make YSP illegal, although banks and credit unions can still get away with it.  This will hurt many buyers who can not get a loan thru a local bank.  Please sign this right away and keep our industry alive!!!!!

 

 

www.petitiononline.com/mod_perl/signed.cgi?HR3915 

 

Thank you in advance!!!

Check out our site!!!!  http://www.asapmtg.net/Win$1000 You can sign up for a drawing every month for $1,000!!!! No catch No obligation!!  I'm sure everyone could use a free $1,000!!!!

 

I must say its nice giving something away, of course you always hope for something in return, which I may say does normally happen.

 

Happy Monday to all!!

Hello to all my fellow industry professionals.  It is amazing to me to hear how everyone says times are so different.  Although I would say that many things are chaning, I believe its our industry correcting itself.  For those that have been doing this since the late 80's or early 90's you know what I am talking about.  I still remember when stated loans first came out, we were all saying what does that mean? And to think when it first came out it was only for those that were self employeed.  How about I/O or POA's, how have they really changed our industry?

I was on one of my conference calls last week and something interesting was brought up.  For those that have been in this industry for less than 3 years, this is to you.  Over the past few years we have really forgotton how to work, or should I say didn't know how to work.  We are in one of the industry's that we get to make whatever we really want too and yet we often times don't think we should have to work for it.  One of my professors was just telling me that work is something we need to master, isn't that the truth.

It is really time to get back to the basics, get paid to work, wow isn't that a new idea? 

 

During the next year or so that we all get to enjoy this restful industry-wide slow-down, I think it would be a great idea to work on re-building our industry from the inside; actually it's long overdue! Lawmakers in many States and on the Federal side, daily are creating new duties, requirements and regulations to help protect the public from the residential real estate mortgage lending industry - our ‘self-policing' unfortunately didn't exist much the past several years, so now they're gonna 'teach us a lesson' and make originators directly personally responsible for more! In addition to now being 'banned' in several States, there's even a Federal Ban on No Doc, Stated, etc. being considered today! In fact, these past several weeks, more than a dozen State lawmakers have been 'tightening the screws' on originators in many areas.

Broad and substantive mortgage lending requirement and laws being passed I see, are creating a 'duty of good faith and fair dealing.' One of them says mortgage originators (mortgage brokers & loan officers) 'shall act in the borrower's best interest and in the utmost good faith toward borrowers, and shall not compromise a borrower's right or interest in favor of another's right or interest, including a right or interest of the mortgage originator.' A mortgage originator shall not accept, give, or charge any undisclosed compensation or realize any undisclosed remuneration, either through direct or indirect means, that inures to the benefit of the mortgage broker on an expenditure made for the borrower - a full blown fiduciary duty like most other trusted professionals have.

This approach subjecting originators to harsh discipline & aggressive punishment, I have been in agreement with for many years myself - but I frequently see it falls far short in many cases.

Here's what I mean. The individual loan officers (where it seems much of this legislation is aimed), we all need to recognize are not mortgage experts, they are in fact the entry level position in our business. Far too many of them are not ‘career minded' but instead see themselves as 'commissioned salesmen' - a secret they keep from the public. If they were more 'career thinkers', they would take the time to improve their understanding of our business, instead of a narrow focus mostly on their commission earnings. The more career minded ones among their ranks, spend the time needed to read & learn from several regular industry trade publications. During that time invested, they frequently see articles, as I do, about the thousands of disciplinary actions taken against wrong-doers in the business.

Unfortunately they are considered as 'independent contractors' by a great many employers; they advertise and communicate with potential borrowers with virtually no training - when in fact they really have no business being out there independently, in the unsupervised wilderness.

Hello once again AR members.  How can you tell who is just words on here or those that are really something.  As a teacher once said to me, words with no results are just WORDS, words with action is SUCCESS!!!  I have been reading what a lot of others on here have been writing, kinda weird, there are some on here that say they are professionals in FTHB, but they don't even own a home, how can they be a pro if they can't even take there own advice?  Or the ones that talk about all of the success they are having, but are having issues with money?

I have met a lot of great people on here and for that thank you!!  I just hope that people are not on here for just points, we lead examples, not just the words that we talk. 

Funny how so many people talk about Referrals, but they can't tell you who the referrals are from.  I do believe referrals are the answer, for those that no me, even if they don't work with me, know that is something that I have talked and trained about.  Yes Real estate agents and mortgage brokers need each other, learn that and life becomes a lot easier!!!!

Hello once again AR members.  What do others think of Banner Ads? Have they been helpful?  Please take a look at mine, if you have any ideas or suggestions please let me know, thanks!!!!!  Does anyone have these and have you been using them?  I would love to hear from you either of your Banners and how they have been working or what you think of mine, thanks again.

 

How many times have you told your clients what they shouldn't do during the process of buying a Home?  Yes it can also happen during a REFI.  Some clients don't listen or just don't believe how some things can ruin the process! 

*Buying a New Car
*Buying New Appliances for the House they haven't closed on yet
*Getting a new job that is closer to the house they close on next week

With the mortgage industry going thru a correction, these are not the times to make these bold moves.  How do you get your clients to understand that these can and may kill the purchase of that new house?