America's #1 Mortgage Broker

Active Rain Day at Del Mar (We're Back !)

America's #1 Mortgage Broker/858-777-9751 — Tue, 07 Jul 2009 18:26:05 -0500

Do you remember this party, from 2007 ? Active Rainers from all over the country came to the World Famous Del Mar Race Track to enjoy thoroughbred racing in our private infield pavilion. We had a buffet lunch and a free concert followed the races.

We're doing Del Mar again! From Meetup:

It's an ALOHA theme for our annual "Day at the Races" event, scheduled for August 14, 2009. We'll be in the Pacific Pavilion (in the infield) enjoying our sumptuous lunch buffet (ice cream included). The races start at 3PM and betting windows are right in our private pavilion. Soft drinks (and lunch) are included in the $29.95 price. No host bar is available with World Famous "Del Margaritas and Del Martinis" served.

After the races, Southern California reggae band Common Sense will be playing and is free to everyone.

This is a chance for you to meet other real estate professionals in a casual, fun atmosphere. Tickets are $29.95 and are available on a first-come, first-serve basis. Reserve your spot today at Meetup. (only 30 spots available)

Don't remember the 2007 party? Well, here's what some folks said:

William Johnson:

A Glorious Magical Day here in Old Del Mar. Back in the 1940's Bing Crosby penned the Famous words to the "Where the Turf Meets the Surf " music and it remains the theme song today for the Del Mar Race Track, Thoroughbred Club...

...Marlene, Kaye and I tried our hand at betting and as lady luck would would say, "Better stick to Blogging". Yes, we lost all three races we bet on. We couldn't see the horses from where we were so we were betting the dark (guessing). After losing race 6 and 7 we went to the betting window and asked if this as the line to give to charity. They said it was so we sort of suggested at this point it just didn't matter, so we bet on three more losers

Jeff Dowler:

Lots of good discussion about blogging, of course, along with hearing about local real estate business in different areas. It was fun hearing about the adventures Joe and Rudy have had in their cross-country journey (they off to Riverside tonight and then to Las Vegas, with several other cities to follow). Those of us going to Blogger Connect are looking forward to the final meet-up in San Francisco on July 31 and August 1 (Rudy and Joe have lots of miles to cover before then). And the highlight, of course was the chance to see the RV, inside and out to cap off a terrific day at the races. Some folks even bet on horses and won (and some did not...we won't mention who they are, or the ones who bet on the wrong race - oops!).

Laurie Manny had some great pictures of our event.

Kaye Thomas:

What a great day.. Terrific people together in a beautiful location.. Del Mar is just a stunning place and deserves the name.. Where the Turf meets the Surf.. The day was overcast but balmy..

Marlene Bridges:

At the end of the day, I don't think any of us went home with more money in our pockets than we started out with...but we all came away richer by far. Each time we meet, it is a reunion of caring, like-minded, exuberant, stimulating, and supportive friends. We laugh together about our blunders and strategize together on our future plans. This is a vital, growing family here in AR. January 4, 2007 is my Active Rain birthday---one of the most pivotal days in my life so far. Thank you dear friends, Lynda Eisenmann and Gregg Franklin, for walking me through the sign up process and keeping me on track until I actually started participating in the Rain. Just like at the track - nothing ventured nothing gained...and there's so much to gain here on Active Rain.

Del Mar Racetrack is truly a Southern California treasure. Join your new and old Active Rain friends, on August 14th, 2009. Remember, this is an "aloha" theme party so throw on your brightest aloha shirt or prettiest sarong and celebrate the summer with us.

Reserve Your Spot Today before they disappear.

AREBOT.com Launch Could Revolutionaize Real Estate Brokerage

America's #1 Mortgage Broker/858-777-9751 — Fri, 19 Jun 2009 02:56:50 -0500

I talked about how I see potential in disclosing property offers to all parties, in an open, real-time marketplace. The discussion on Bloodhound Blog was predictably philosophical; xenophobia was displayed by some folks on Active Rain.

The Big Idea was that this added transparency might engender trust among the home buying public, the banks, Wall Street, and the Government regulators. What I hadn't considered was the benefits to the seller.

Sellers sometimes question if they see ALL potential offers on their properties.

AREBOT.com hopes to change all that. AREBOT.com announced its worldwide release on BloodhoundBlog:

AREBOT.com, which stands for the American Real Estate Board of Trade, is the name of the company that intends to open up the demand-side statistics, by voluntary submission of properties, to an online NASDAQ-like market.

AREBOT.com is not intended to be an “auction”. It is an open, transparent, real-time market. Each zip code will have a live “ticker” moving across the screen, displaying actual offers on homes. Each listed property will display a time-dated offer history. Entries are voluntary and cost nothing to the sellers of the home. The “price”, if you will, is that they offer the property on this transparent market.

The Company has authorized me to extend an invitation, to Active Rain real estate agents, to a conference call:

Wednesday, June 24, 2009 at 1PM RSVP on Bloodhound Blog

Why Buyers Don't Trust The Real Estate Industry

America's #1 Mortgage Broker/858-777-9751 — Thu, 11 Jun 2009 05:45:33 -0500

Buyers don't trust real estate agents, lenders, nor appraisers, because we willfully withheld material market data from them. I talked about this on Bloodhound Blog:

What If The Real Estate INDUSTRY Didn’t Control The Real Estate Market?

Please click the link and read the full article before you comment because you'll look silly if you don't understand the full depth of the problem and proposed solution.

Here's the problem:

We hid market information from the buyers while the Baby Boomers moved through the home ownership life cycle. A huge generation, yearning for “The American Dream of Homeownership”, assured strong demand for houses in the post-World War Two housing boom. Banks were all too happy to hand out money, even when forced to lend by the Government. Lew Ranieri saw a 25-year boom ahead and found a way to create a shadow banking system that could “bury bad loans”. Any agent dealing with a short sale understands the problem of buried loans because she’s heard:

“Well, we aren’t quite sure WHO owns this loan”

Kind of sounds like the forensic audit of Bernie Madoff’s books, doesn’t it? That’s what you hear when the jig is up on a Ponzi scheme: confusion, wagon-circling, and practiced deflection. It eventually catches up with the schemers. I’m firmly in the camp that no matter how many incentives we offer to stave off the inevitable forced sales, or to provide a middle-class tax cut, or to bribe the next generation of buyers, the simple fact remains that we have more houses than we need in this country…and the people just ain’t buying like they used to.

Here is a way the industry can solve the problem:

Prominently display the terms and dates of the rejected offers, verified by participating market professionals, in the MLS system, and you solve the demand side of the equation because you identify the “size of the market”. Share that information with the banks and they’ll start trusting you. Show it to the prospective buyers and they’ll throw their arms around you in joy. The sellers will “get real” about the market, also.

This is why it won't happen:

We all know that ain’t gonna happen because “The Man” doesn’t want to release his clutch on the market.

That’s the real problem. We don’t have a real estate market, we have a real estate industry created market.

Here is the final solution:

I met a guy last month who thinks he has a solution. It’s so simple it’s silly; an open market, like the NASDAQ, for real estate. Watch offers for houses, in real-time, be accepted or declined. NASDAQ Level Two Quotes go beyond the bid and ask; they show the “size” of the market for those prices. The implementation of that transparency greatly reduced the previous NASDAQ market manipulation, that stymied the individual investor to favor institutions. It isn’t perfect but exposure to that data makes the market operate more efficiently. Apply that model to real estate and you will quickly determine what the “real” market is for a property.

Personalized Audio Interviews (On CD)

America's #1 Mortgage Broker/858-777-9751 — Wed, 10 Jun 2009 22:22:51 -0500

I talked about how to use the principles of the Millionaire Real Estate Agent, when soliciting business from REALTOR partners, over on the Mortgage Cicerone. I suggested that originators implement a 33-touch program for REALTOR partners so that you stay in front of them. The Top of Mind Surefire system does an excellent job of co-marketing yourself, to both the REALTOR and the customer, post-closing.

What can you do, prior to closing a transaction, to demonstrate value to potential REALTOR partners?

I swiped the Loan Toolbox “Gift of Knowledge” idea and found a way to make it more relevant to your local market (and a helluva lot cheaper).

I like to conduct a 30-minute interview with a working, full-time REALTOR and distribute a CD of that interview it to my REALTOR referral base . It’s much more effective than the Loan Toolbox Gift of Knowledge idea because it positions you as the interviewer.

Here’s how I do it

June 16, 2009: CAMB North San Diego Happy Hour

America's #1 Mortgage Broker/858-777-9751 — Wed, 10 Jun 2009 17:36:08 -0500

San Diego REALTOR Soiree- June 23, 2009

America's #1 Mortgage Broker/858-777-9751 — Tue, 09 Jun 2009 20:25:42 -0500

What a great opportunity to relax and network among other San Diego Real Estate Professionals at the D Street Bar & Grill, in Encinitas, on June 23, 2009. There will be no educational agenda for this meetup; just good ol' fashioned fun and networking.

We're trying to "rebuild" the fun and educational times of two summers ago so please invite a friend or two

Location

D Street Bar and Grill

485 S Coast Highway 101
Encinitas, CA 92024
Change Place

How to find us
"You can always call me at 858-777-9751"

Do Loan Originators Consistently Market To Agents?

America's #1 Mortgage Broker/858-777-9751 — Sun, 07 Jun 2009 14:58:01 -0500

If you're an originator and haven't read The Millionaire Real Estate Agent, by Gary Keller and Dave Jenks, you're missing out on a great way to market to REALTORs. The cornerstone of the MREA plan is database management. The authors advise agents to "touch" their "met" database 33 times in a twelve month period. It's a highly disciplined approach and most real estate agents fail to implement it but they wish they could.

Mortgage originators traditionally do a better job at managing databases better than their agent cousins. Why aren't originators "touching" thier REALTOR database thirty-three times, then? If each "met" REALTOR, touched 33 times, can produce three purchase loans annually, a stable of 25, full-time agents can put an originator on the path to 6-7 purchase loans each month.

Consider this "touch plan" for marketing to real estate agents (opens in a new window)

Do We Have Duty To Our Customers?

America's #1 Mortgage Broker/858-777-9751 — Sun, 07 Jun 2009 02:06:42 -0500

Admit it. You’ve wondered if there was a lot of fat in title policies, didn’t you? I mean, how many claims does a title company REALLY get in this “nobody trusts anyone” market? We order a title commitment and the title company:

performs a detailed search of the property’s chain-of-title
mitigates most any risk
insures the title and earns an insurance premium.

One would think that this highly-regulated, extremely commoditized business would file premiums within cents of each other, right?

I received a direct mail piece from READ THE FULL POST

Mortgage Revolution Conference

America's #1 Mortgage Broker/858-777-9751 — Sun, 31 May 2009 20:13:39 -0500

How Rudy Butler Uses Craigs List To Advertise His Loan Modification Software

America's #1 Mortgage Broker/858-777-9751 — Fri, 15 May 2009 01:51:58 -0500

I mentioned yesterday that we needed an Experienced Loan Processor and submitted an advertisement on Craigs List. It was really quite a bargain at $50 (I advertised in two categories). I was quite pleased with the results. We had five people submit their resume and four of them actually called us. I'm reasonably certain that we'll be able to select one from the highly-qualified candidates.

One of the features I really liked is that I could write a long-copy advertisement. You'll notice from the prose that I tried to speak to EXACTLY whom I wanted; I wasn't disappointed. My rationale for writing the advertisement like a blog post is that I wanted to disclose as much as possible while entertaining the reader. I wanted them to get a feel for my personality and marketing prowess. After all, the processor's income will be dependent upon my ability to generate sufficient business. I assumed that they were interviewing me as much as I would be interviewing them; I wanted to impress the candidates.

Mr. Rudy Butler emailed me expressing his difficulty submitting through Craig's List:

I was trying to send over my info but it keeps getting kicked back from craigslist. Can you send me a diffrent (sic) email address ?

Always the pleaser, I responded immediately:

try mortgage_loan_officer@yahoo.com

What I didn't expect was the html-laden spammy advertisement for loan modifications. Certainly, Mr Rudy Butler found an innovative way to harvest e-mail addresses to "reverse advertise" his loan modification processing software, by e-mailing unsuspecting employers, under the guise of a help wanted advertisement. Awfully clever, isn't it? I mustn't have been in my normally appreciative mood today; I e-mailed him this reply:

I hope you didn't take my email address from the reply I sent you to add to your marketing database. I returned an email inquiry to the processing job. I did NOT opt in to receive marketing pieces. Please remove me immediately.

You see, I can get really protective of my inbox. I receive close to 400 e-mails daily; 75% of them are unsolicited spam. I hadn't realized I was in the presence of such online marketing innovation! Mr. Rudy Butler set me straight, though:

I didn't add you to any kind of marketing list. You were looking for a processor and that what I was offering a software that can do all the Loan Modification processing for you . Its worth checking out. It will cut down on you overhead and increase your profits

Aha! Silly me. I dont REALLY need an experienced government loan processor, I need a loan modification processing software program. It will cut increase my profits! I must not have understood because I replied:

Please remove me from your list, Rudy. We don't do loan modifications.

Mr Rudy Butler corrected my testy demeanor (with a last ditch sales pitch):

Okay Brian chill out I dont have a list I got your info off of craigslist but If you dont do Loan Mods then I wont contact you about that. Do you have any clients that need Debt Settlement ? We can settle for 50% with no upfront fees. If not Thanks for your time

I felt I needed to be specific in my denial of his request for consideration of his services:

Please don't contact me, Rudy.

Alas, Mr Rudy Butler had to have the last word:

Okay Brian I will keep that in mind.

Thank you, Mr Rudy Butler; you do that. Just in case you forget, this blog post can be a perpetual reminder.

PS: if you were more impressed than I was, you might follow @MrLoanMod on twitter

Experienced Loan Processor Needed

America's #1 Mortgage Broker/858-777-9751 — Wed, 13 May 2009 23:04:39 -0500

We're slammed so that's a good thing. If any of the folks on Active Rain know candidiates for an experienced Loan Processor position, we're hiring one (maybe two) of them. Our purchase business volume spiked and my wife Debra is taking off for the summer, as of June 10. She'll come back after Labor Day as a loan originator.

Anyway, I posted this on Craig's List and would appreciate it if you'd forward it to any worthy candidates:

This is the perfect setup for a grizzled, experienced mortgage loan processor. You walk with a swagger because you can recite FHA and VA underwriting guidelines verbatim. Heck, you might even have a DE certification in your background. You were probably aghast at the stupid NINJA loans being funded earlier this decade. You didn't know why originators weren't developing real estate agent relationships and wondered what would happen when Armageddon came to the mortgage industry...so were we.

Armageddon came to the mortgage industry but we're still standing. A little battered and bruised but we weathered the hurricane well; now we're thriving.

How'd we pull it off? Old-school hustle, that's how. We embraced the internet, called a bunch of real estate agents, read the guvvie underwriting guidelines, and started funding loans for first-time home buyers. Imagine working with a team of originators who actually READ underwriting guidelines, court real estate agent business, and do what they say they're gonna do..that's us. The result? We fund a lot of VA(they're the most fun), FHA, CalSTRS, and CalPERS loans. We got a lotta happy sailors, marines, teachers, firemen, and cops as clients.

We mostly broker to the conduits right now (Sierra Pacific, Uniwest, Mountain West, and First Mortgage) but we're not scared to broker to the big boys (Countryide/BofA and Wells Fargo). We have a correspondent relationship with Flagstar but we only fund there if it's in the borrower's best interest. You won't find 4 point loan jockeys here; we pride ourselves on our ethics (and volume).

Here's the other cool part. Our firm has been in the same Kearny Mesa building since 1991. We ain't going anywhere. Our problem? We need you, the seasoned, beat-up but proud loan processor who gets off on funding loans. If you like walking into an originator's office, with a clean underwriting approval for a hard loan, and being APPRECIATED for your professional dedication, you're gonna love working with us.

Are we being boastful? You're darned skippy we are! We love this business and understand that we're saving the American economy...one loan at a time. If we're speaking to you (and you know we are if you've read this far), we want you to stand up and be counted.

PS: Most of you will e-mail your resume and that's okay but the shining star that joins our team will e-mail the resume AND call (858)-777-9751. We expect that our "shining star" will be working with us by June 1.

PPS: If we love each other, we'll set you up in a nice private office, in our Kearny Mesa location. We'll give you an LOS-equipped desktop, access to AUS, FHA connection, the VA TAS, and tools that you need to be a kick-butt processor who can be proud of the job you do. We'll also protect you from "newbies" who want to sap all your experience, time, and energy, Confidently call and e-mail if you want to see if we're meant to be together.

Location: Kearny Mesa- San Diego
Compensation: Fee Per Funded File
This is a contract job.
Principals only. Recruiters, please don't contact this job poster.
Phone calls about this job are ok.
Please do not contact job poster about other services, products or commercial interests.

Can The National Association of Mortgage Brokers Change?

America's #1 Mortgage Broker/858-777-9751 — Thu, 07 May 2009 15:49:08 -0500

An excerpt from an article I wrote on industry site Top of Mind:

Today, mortgage brokers are frustrated. Recently, one floated the idea that NAMB had their lunch handed to them (and subsequently recanted), by a Congressional Committee, debating H.R. 1728. Facts proved that nothing could be farther from the truth. Read this fifteen-page transcript of the testimony of NAMB Governmental Affairs Representative, Denise Leonard. Ms. Leonard argued the case for:

fairness in licensing standards among all originators: bank, brokerage, or retail lending sales representatives
more consumer-friendly disclosure documents
suitability in loan recommendations
lenders offering a variety of loan products without the threat of reprisal due to opaque regulations
increased borrower scrutiny of high-cost or “sub-prime” loans
abolishing (or suspending) the Home Valuation Code of Conduct so that consumers’ loan settlement costs won’t rise

Why are mortgage brokers upset then? NAMB is clearly representing our interests as is evidenced by the testimony of Ms. Leonard. It is my opinion that NAMB is suffering from an identity crisis. Rather than “Fight City Hall”, I think we, as mortgage brokers should embrace and capitalize on much of the unfair legislation imposed upon us and advertise our superior value proposition to the public. Let me outline my thoughts:

READ MY NINE POINT PLAN TO DEFINE THE NAMB MISSION HERE (opens in a new window)

Another Way To Find Home Buyers on Facebook

America's #1 Mortgage Broker/858-777-9751 — Sun, 03 May 2009 13:35:52 -0500

Can real estate agents benefit from Facebook Quizzes? I think so and the good folks who attended the BloodhoundBlog Unchained Online Marketing Conference helped me realize this.

Facebook Quizzes have often been considered the frivolous indulgence of the bored. Witness Karen Parsons-Fiddler's observations from last April:

I admit it....long night, not bored exactly, but spare time? I'd like to say I have been busy writing offers and needed a break....truth? I've had a good week....but frankly I'm just goofing around..and yes, I've shared a bottle of wine with a couple of friends! :) Interested in the results?...too bad, here they are!

I was completely in Karen's camp. I even shared the wary thought commenter Gabe Sanders had:

I'm actually very leery of who runs these quizzes and what information they may be gathering.

That's when it hit me. I want to be one of the information gatherers Gabe Sanders feared so...

I created a Facebook Quiz to test people's mortgage knowledge. To date, over 100 people have taken the quiz and I know all of their answers (along with their identities). People with whom I have a common interest.

The big A-HA moment came at Unchained:

It didn’t hit me until my Unchained Omega Session; Facebook quizzes, long held to be a novelty, could start the right kind of conversations for real estate agents. I played around with one a few months ago and over 100 people took my quiz. The lightbulb went off for RuthAnn Macklin, a Virtual Real Estate Assistant and member of CyberProfessionals. RuthAnn figures that she can demonstrate the need for her services by pointing out how difficult it is to “go it alone” as a REALTOR, through a Facebook quiz.

I gave some great examples of how Facebook Quizzes could be useful for real estate marketers. Check it out and see if you might have that same epiphany.

America's #1 Mortgage Broker, Brian Brady Interviewed | Realtor Coaching and Real Estate Training

America's #1 Mortgage Broker/858-777-9751 — Fri, 24 Apr 2009 00:11:32 -0500

I'll be on Tim and Julie Harris' show tomorrow

Via Tim and Julie Harris (Harris Real Estate University):

Hello,

This is a reminder for you to attend tomorrows Superstar Interview.

Tomorrows Featured Superstar Is:

Brian Brady “Americas #1 Mortgage Broker”

Here is the information for your schedule:

?EVENT: Super Star Interview
DATE & TIME: Friday, April 24th at 12:00pm Pacific
FORMAT: Simulcast! (Attend via Phone or Webcast — it’s your choice)
TO ATTEND THIS EVENT, CLICK THIS LINK NOW…
http://instantTeleseminar.com/?eventid=6741849
When was the last time you visited www.HREU.tv?
We are posting new educational and motivational videos for you on a weekly basis.

Remember, stay connected with Harris Real Estate University.

Speak with you tomorrow!

Tim and Julie
P.S. Would you like to schedule a free coaching call with a HREU coach?
Go here now to schedule: http://harrisrealestateuniversity.com/freestuff.php

VA Home Loans in San Diego: Residual Income Analysis

America's #1 Mortgage Broker/858-777-9751 — Sat, 11 Apr 2009 17:14:31 -0500

Underwriters look at three things:

READ: The Three C's Of Underwriting Approvals

Credit Reputation

Credit Score
Foreclosures, bankruptcies, liens and/or judgments
Mortgage delinquencies
Credit delinquencies, repossessions, collections, or charge-offs
Credit accounts: type, age, limits, usage and status of revolving accounts
Borrower's request for new credit in last 12 months

There is not a minimum credit score requirement, for VA Home Loans but a two-year good payment history is required. A late payment on a credit card shouldn't hurt you but a pattern of late payments, in the past 24 months, might.

Capacity

Debt ratios: Qualifying monthly housing expense-to-income ratio or monthly debt payment-to-income ratio
Salaried versus self-employed borrower
Cash reserves
Number of borrowers
Loan Characteristics:
- Product: a 15 or 30 year fixed rate, , an adjustable rate mortgages,
- Purpose of Loan: purchase or refinance (cash-out or no cash-out)

The VA also uses residual income analysis for determining "capacity". From the VA website:

The primary method of evaluating a veteran's income is the residual income method. Under this method, the underwriter determines that a veteran has sufficient income to cover day-to-day living expenses after paying housing expenses, taxes, and other debts such as car payments and credit card payments.

For example, if an 0-2 (with three years service) were receiving a base pay of $3484, a BAH of $2000 and BAS of $300, her total monthly income would be $5784. We would deduct her taxes (on the base pay), of about $800. She's single, without dependents so there are no childcare expenses. This gives her contributory income of $5084. If she had $1200 in monthly expenses (credit cards, car loans, etc), her contributory income is reduced to $3884. The VA requires a residual income of $491. In order to "trump" the debt-to-income ratio analysis, we would need residual income of 120% of that, or about $600; this would allow for a maximum housing expense of $3,200.

Using the "eight dollars per thousand" estimate, Lt (jg) Smith would be approved for a $400,000 VA home loan.

Collateral

Borrower's total equity or down payment
Property type: a 1-unit or 2- to 4- unit detached property, Condominium Unit or Manufactured Home
Property use: Primary Residence Only

No down payment is required for a VA Home Loan because the VA insures 25% of the balance for the lender. The VA charges the veteran a funding fee, which is added to the loan, to pay for that insurance. Why does the VA charge a funding fee?

The VA funding fee is required by law. The fee is intended to enable the veteran who obtains a VA home loan to contribute toward the cost of this benefit, and thereby reduce the cost to taxpayers. The funding fee for second time users who do not make a down payment is slightly higher. The idea of a higher fee for second time use is based on the fact that these veterans have already had a chance to use the benefit once, and also that prior users have had time to accumulate equity or save money towards a down payment. Second time users who make a down payment of at least 5 percent pay a reduced funding fee of 1.5 percent, the same as first time users making the same down payment. For a 10 percent down payment, the fee drops to 1.25 percent.

How much is the funding fee?

The effect of the funding fee on a veteran's financial situation is minimized since the fee may be financed in the loan. National Guard and Reservist veterans pay a slightly higher funding fee percentage. To determine the exact funding fee percentage, please review the funding fee table.

Determining your monthly mortgage payment is based upon three components:

1- Principal and Interest- this is the amount needed to service the debt and retire the loan.You can determine that amount by using this calulator. In Lt (jg) Smith's example, a $400,000 mortgage, for 30 years, at 5.25% would have a principal and interest payment of $2208.

2- Property Taxes- In California, we estimate 1.25% of the purchase price, for property taxes. In Lt.(jg) Smith's example, The annual amount would be $5000 or $416 monthly.

3- Property Insurance- For single family homes, we would use the actual hazard insurance premium. That would be about $65/month. For condominiums, we would use the amount of the association fee because it includes the hazard insurance. Let's assume that the amount is $300 monthly

Lt (jg) Smith's housing expense, then, would be $2,916, well under the "eight bucks per thousand" guesstimate. She has monthly income of $5784 and expected monthly debts of $4116. She would fail the debt-to-income ratio test but be approved based upon the residual income analysis.

Brian Brady is considered to be San Diego's VA loan expert and can be reached at 858-777-9751

Eight Styles of Entrepreneurship

America's #1 Mortgage Broker/858-777-9751 — Sun, 29 Mar 2009 22:28:38 -0500

Here's Mark Victor Hansen on a "Seminar at Sea", sponsored by iLearningGlobal faculty member, Bob Proctor. In this presentation, Hansen discusses Roger Hamilton's Eight Styles of Entrepreneurship:

Creator- Bill Gates
Star- Martha Stewart
Supporter- Steve Ballmer
Dealmaker- Donald Trump
Trader-George Soros
Accumulator- Warren Buffett
Lord- J. Paul Getty
Mechanic-Sam Walton

Hansen finished his presentation with a story about a young boy names Tommy Tighe and goal-setting. (transcript here). Light-hearted and fun, the moral is that if you get a clear vision about what you want, write down your goals, develop and act upon a plan, you can get anything you want.

Watvch the video on iLearnSales.com

Successful Online Mortgage Shopping- Do You "Dress For Success?"

America's #1 Mortgage Broker/858-777-9751 — Wed, 18 Mar 2009 13:57:57 -0500

Good grief! I suggested that you, as a borrower, put your "best face forward" when shopping for a mortgage online and a hockey game broke out in the comments section. It seems that REALTORs and loan originators were DYING to show you, the online consumer, that they don't care about your dress or appearance.

They obviously didn't read the full article. I referenced the Rice University study that suggested that pictures on a profile lent credibility to borrowers on an online lending site. Armed with that bit of information, I explained that bias towards appearance was natural. More importantly, authenticity online lends credibility to both sellers and buyers alike. If you want a mortgage loan, you'll judge my online efforts by the way I look, write, and interact with you. Loan originators will do the same towards you...WHETHER THEY INTEND TO OR NOT; bias towards appearance is a natural emotion.

Nobody cares how you "dress" online, right? Well...while we can't "see" you shopping for your loan in your pajamas, we can see your online "presence". Google has made online privacy a thing of the past so...I'm gonna find out eventually when I "Google" your name.

Why not "dress for success" when you apply for a loan online? Here are three things you can do to give you an edge over hundreds of thousands of borrowers looking for a loan online

1- Link to an online profile in your email to me. I can't tell you how useful this is. If I know information about you, I'm more apt to speak with you than the nameless, faceless e-mails that inquire about loan programs each day. I'm on Facebook and LinkedIn. If you connect with me there, I'll learn more about your career and family. I'm eventually learn about this stuff in the loan application (a mortgage is a VERY personal financial transaction) so get it out in the open.

2- Be clear and concise in your communication with a loan originator. Loan variables include:

value of the home (link to your Zillow Zestimate and you'll provide some "social proof")
capacity to pay the debt (link to your LinkedIn profile to show your employment)
credit- no link necessary but you might guess at how your credit is.
loan amount requested along with a the purpose of the loan (purchasing a home, refinancing an original loan, refinancing and paying off high interest debt, etc).

3- Offer multiple contact points: phone numbers (cell phones sound tinny) and email.

Here's a great example of a loan request:

Hello. My name is Brian Brady and I'm in escrow to purchase the home at 413 Bay Meadows Way, Solana Beach for $450,000. The Zillow Zestimate shows it for sale at $535,000 but I it was on the market for over six months so I got a deal.

I'm looking to put $33,000 down and buy the house with a $417,000 loan. I earn $90,000 as a Managing Director for a financial services company (see my LinkedIn profile) and fell my income will justify my loan. If you sign into LinkedIn, you'll see my picture that shows I have a trustworthy face (haha)

I have good credit although I don't know my score. I just know that I pay cash for most things and pay off my credit card balances quickly.

You can contact me at brian@12mortgage.com or 858-777-9751. My home number is 858-222-XXXX. I'm talking to a couple of mortgage companies and would appreciate any insight you might give me.

PS: I've attached a family picture with my new baby- We can't wait to move into our new home and hope you can get us affordable financing.

Why should you be "selling yourself" to a lender? Contrary to popular belief, we aren't hurting for business in the mortgage industry; we're hurting for good, clean business. Finding borrowers who need money isn't the problem; funding borrowers is. The "mock" e-mail, while admittedly extreme, would open a loan originators eyes. When followed up with a phone call, you would COMMAND attention.

Put your best foot forward when you want a loan. It could save you thousands of dollars.

How Should You Dress For Your Loan Application?

America's #1 Mortgage Broker/858-777-9751 — Mon, 16 Mar 2009 17:48:21 -0500

Apparently, looks matter when you’re seeking a loan. From a Rice University study:

People who are perceived to be trustworthy are more likely to have a higher credit score and pay lower interest rates on loans, and are less likely to default, according to the study by Rice University in Houston, Texas.

Even when hard facts such as credit scores are available, people rely on an assessment of trustworthiness to decide whether to make a loan.

I’ll admit that I am not immune to this bias. Much of my business is local and I “pre-judge” the intent if not the credit worthiness on the effort put forth. Let me give you an example. Two (different) people made appointments, the day after Thanksgiving, 2008, to go through a pre-qualification. Both needed counseling about how to pay down debt and improve their credit scores so that they could buy a home.

The first, an accomplished young man, arrived in like he was headed to the beach; shorts, T-shirt and flip-flops. While this is the “standard uniform” of a San Diegan on his day off, his documentation reflected his cavalier dress. We met for 45 minutes, outlined what he could do to prepare for home ownership, and concluded the meeting with a promise to “touch base” after the first of the year. His dress, behavior, and attitude was “What can you for for me?” I didn’t take his inquiry seriously.

The second, an equally accomplished young lady, came to the appointment dressed to do business. Her dress, while casual, reflected her solemnity and determination. She read my article about how to prepare documentation, opened up a notebook, and took copious notes. Within 30 minutes, we developed a detailed budget and a plan to pay down debt while saving for a down payment. She requested three follow-up phone calls to gauge her progress towards her goal. Her dress, behavior, and attitude is “How can you help me to help myself?”. Obviously, she got me to “buy in” to her.

Successful Online Mortgage Shopping- Do You "Dress For Success?"

How might a borrower do this online? Borrowers would do well to understand that a loan originator is “interviewing” you as much as you are “interviewing” them. I have been persuaded to take on difficult, time-consuming, loan transactions because I felt a sense of mutual respect from my discourse with the borrower. Borrowers who referenced an online profile, where I could see their picture and resume, received 2-3 times the attention as those who didn’t.

Sounds unfair, doesn’t it? The Zillow Mortgage Marketplace would seemingly eliminate such subjectivity and democratize a borrower’s chances for the best loan terms. I won’t argue against its efficacy for the “pristine” borrower. Pristine, however, is becoming subjective as valuations decline rapidly. Your “numbers” might not be enough to attract the most talented mortgage consultants in the country but… your picture might help. From the aforementioned Rice University study:

“There is an array of information that you can get out of the pictures,” Duarte said, adding that Prosper.com borrowers use photographs ranging from family portraits to snapshots of their pets.

“The pictures are revealing something about the behaviour of these people that is not taken into account in the credit score model,” Duarte said.

To make sure that the evaluators’ prejudices did not skew the results, the researchers controlled for race, age, gender, obesity, attractiveness and education, as well as financial factors like employment status, income and homeownership.

Understanding what determines trustworthiness may be relevant to the current economic crisis and be the key in restoring trust in the markets, Duarte said.

Trust. It’s the cornerstone to a healthy banking system. If “old skool” is now vogue, pay heed to your grandfather’s advice; wear a tie to your loan applcation. Online, a profile picture is your tie.

If your face is trustworthy, why hide it?

Part Two:

Successful Online Mortgage Shopping- Do You "Dress For Success?"

Everything REALTORS Should Know About VA Home Loans

America's #1 Mortgage Broker/858-777-9751 — Thu, 12 Mar 2009 00:59:50 -0500

I hosted a webinar tonight about VA home loans, targeted at REALTORS, to better help them understand:

how to present VA offers that get accepted.
the alternative underwriting model the VA uses for income analysis
how a VA home loan is a better choice, in some California counties, than a jumbo conventional loan
why 10% down payment conventional is more expensive than 10% down VA

The AUDIO IS HERE and will open in a new window. The links are here. Listen along and click through the links as I discuss them.

About VA Home Loans Webinar 7:30PM PDT

America's #1 Mortgage Broker/858-777-9751 — Wed, 11 Mar 2009 11:14:51 -0500

Tonight's webinar explains:

The zero-down loan limits for California counties
How a purchase price, above the VA loan limit, might not require a 20-30% down payment
Why returning Iraq and Afghanistan veterans are buzzing about the fact that they can buy a home
How residual income analysis is used instead of debt-to-income ratios for underwriting purposes
How to assuage the fear associated with a VA offer
Why VA underwriters hardly ever challenge the VA appraisal
How VA home loans can be a less costly alternative to jumbo and FHA jumbo financing
Why the VA home loans are a better alternative than Cal-Vet loans
How to verify that a condominium complex is VA-approved
How to secure a VA approval for a condominium complex

The webinar will be hosted at MeetBrianBrady.com and the call in line will be:

Phone Number: (724) 444-7444
Call ID: 81328
PIN: 858-699-4590

Next Wednesday Night: CalSTRS low down payment financing

Is Your Bank Safe?

America's #1 Mortgage Broker/858-777-9751 — Tue, 10 Mar 2009 23:44:54 -0500

The FDIC developed an acroynm for the composite ratios it runs to “rate” the financial health of its member banking concerns. An index, ranging from one to five is calculated and the FDIC premium charged to the institution is commensurate with its CAMELS rating. “CAMELS” stands for:

Capital Adequacy
Asset Quality
Management
Earnings
Liquidity
Sensitivity

The Federal Reserve Bank of San Francisco explains the CAMELS ratings and the highly-sensitive nature of the findings:

"Not Winning" The War in Afghanistan ? My A55

America's #1 Mortgage Broker/858-777-9751 — Sun, 08 Mar 2009 14:36:45 -0500

An excerpt from my latest constibution to "Tin Foil Hats' productions":

All this could be chalked up to Obama’s inexperience (which we knew when we elected him). After all, it was only five years ago that Obama was still mixing it up in Springfield as an Illinois State Senator. I’m not riled up because of that. I got all worked up when I opened up the Sunday fish-wrap; I damn near spit my eggs out:

Obama says outreach to Taliban a possibility

President Barack Obama says the U.S. is not winning the war in Afghanistan and he’s willing to open the door to negotiating with some moderate Taliban leaders.

Obama made the comments to the New York Times Friday in a half-hour interview on Air Force One.

You have got to be f***ing kidding me. Negotiating with the Taliban, prior to the delivery of Osama bin-Laden’s head on a pike, should only be allowed when Pat Tillman rises from his watery grave and permits it. To suggest defeat in Afghanistan is an insult to the hundreds of thousands of men and women who have the Taliban holed up in caves. It further abandons the memory of the few thousand victims of its heinous acts of War against this Country. Even exiled Afghan Muslims want the Taliban out.

Read the whole story here

Divestiture Is The Answer To A Healthy Banking System

America's #1 Mortgage Broker/858-777-9751 — Sat, 07 Mar 2009 21:43:32 -0600

Wanna have some fun? I have an idea about how to “save” the banking industry. Through mergers and acquisitions, the banking cartel grew to become infallible. Dave Shafer pins the tipping point of this crisis to the repeal of The Glass-Steagall Act of 1933. I’m not so certain he’s incorrect.

The intention of The Glass-Steagall Act of 1933 was to avoid this:

Commercial banks were accused of being too speculative in the pre-Depression era, not only because they were investing their assets but also because they were buying new issues for resale to the public. Thus, banks became greedy, taking on huge risks in the hope of even bigger rewards. Banking itself became sloppy and objectives became blurred. Unsound loans were issued to companies in which the bank had invested, and clients would be encouraged to invest in those same stocks

Do the 1920’s sound like this decade? As Dave Shafer points out, the Gramm-Leach-Bliley Act of 1999 ENCOURAGED the financial behemoths explaining “economies of scale” as the primary reason for the repeal of Glass-Steagall. While financial institutions with strong technology infrastructures can reduce the cost of banking processing functions, the GLB act of 1999 discouraged what Greg Swann calls “flinty banking practices” and encouraged rampant speculation, this time in risky home loans rather than new stock issues.

We were so interested in free online banking that we fed the growing gorilla until he bloated to 1600 pounds. Today, we’re shocked that he busted out of the cage and is chewing up the zookeepers and zoo patrons.

Read the rest of this article

Webinar Today: LinkedIn and Meetup

America's #1 Mortgage Broker/858-777-9751 — Fri, 06 Mar 2009 02:17:39 -0600

From Mark Madsen on the Mortgage Sales Blog:

My friends Mark Green and Brian Brady are hosting another webinar about mortgage social networking tomorrow.

Brian has mastered the art of mining social networking sites such as Facebook and Linkedin for the purpose of meeting new mortgage clients and referral partners.

I just wanted to quickly update everyone who reads the Mortgage Sales blog.

Here is the info from their invite:

Session One of our “Social Networking” webinar series focused on Facebook. Thanks to the 190 of you who attended - we loved the feedback. If you missed it, you can view the replay here:

http://www.topofmind.com/blog/index.php/2009/02/webinar-replay-brian-brady-on-facebook-and-social-networking/

You’ve asked for more, so please join Top of Mind Networks President Mark Green and “America’s #1 Mortgage Broker” and social networking expert Brian Brady for another exclusive webinar.

During this 45-minute session Brian Brady will explain how he uses Linked In and Meet Up to

1)  Position himself as an authority figure with clients and referral sources
2)  Stimulate conversations that drive selling opportunities
3)  Create warm introductions instead of cold calling

Who Presides Over the Subprime Bank in America?

America's #1 Mortgage Broker/858-777-9751 — Fri, 06 Mar 2009 01:48:33 -0600

Remember those impetuous, ne’er do well subprime borrowers and those greedy subprime lenders? Writing about them is sooo… 2007 but I’m happy to report that both greed and reckless abandon are alive and well today….

…at Bank of America.

Remember Ken Lewis? He’s that sober-faced, bespectacled CEO of the Charlotte-based behemoth that started out as North Carolina National Bank and the Bank of Italy in San Francisco. Ken has presided over Bank of America since 2001. Since then, he’s been binging on banks like a subprime borrower stripped equity out of the old ranch: He bought Fleet Bank in 2004, MBNA in 2005, and ABN-AMRO, LaSalle Bank, and US Trust Company in 2007.

That wasn’t enough. Like a subprime borrower addicted to Vegas, strippers, and shiny new Hummers, he was having too much fun to see the market turn. What did Ken do while the house of cards was a-tumblin’?

Read the whole story...