How soon will Fed cut affect mortgages rates? - 01/31/08 09:23 PM
Mortgage rates have declined dramatically over the past several weeks. But the Federal Reserve's latest rate cut does not guarantee that rates will keep dropping.  
In fact, mortgage rates often climb following a cut in the federal funds rate, and actually rose about 50 basis points after the Federal Reserve announced its emergency 75-basis-point cut Jan. 22.
"The Federal Reserve just lowered interest rates by three-quarters of a point and yet we saw one of the biggest one-day increases in mortgage rates that we've seen in 10 years," says Bob Walters, chief economist of Quicken Loans.
"It shows you that there isn't a … (9 comments)

Extra Extra Read all about it Fed Cuts Rates by Half Point - 01/30/08 01:22 PM
Here we go again... for the second week in a row... With fears of a recession growing, the Federal Reserve cut interest rates Wednesday by a half percent.... as was widely expected. The reduction comes just eight days after a three-quarter point emergency cut and amid new data showing that the economy nearly stalled in the fourth quarter.
… (5 comments)

Federal Reserve Weighs In Another Rate Reduction - 01/29/08 04:33 PM
Fed Chairman Ben Bernanke and his colleagues are scheduled to open a two-day meeting Tuesday afternoon to plot their next move on interest rates. The closed-door gathering comes amid growing fears the country is either on the brink of a recession or has already started slipping into one given the strains from a housing market collapse, a global credit crunch and turbulence on Wall Street. The country's last recession was in 2001.
Many economists believe the Fed will lower its key rate, now at 3.5 percent, by as much as one-half percentage point to 3 percent when policymakers wrap up their meeting … (5 comments)

Countrywide Posts $422 Million 4Quarter Loss - 01/29/08 12:01 PM
LOS ANGELES (AP) -- Countrywide Financial Corp., the nation's largest mortgage lender, said Tuesday it swung to a loss in the fourth quarter due to rising loss provisions and impairment charges as more borrowers fell behind on mortgage payments. The earnings fell well short of Wall Street estimates.
The Calabasas, Calif.-based company lost $422 million, or 79 cents per share, during the fourth quarter, compared with earnings of $622 million, or $1.01 per share, during the same period the previous year.
Analysts polled by Thomson Financial, on average, forecast a loss of 30 cents per share for the quarter.
Revenue for the … (1 comments)

does this apply to your life in the mortgage industry? - 01/28/08 03:31 PM
"Life should NOT be a journey to the grave with the intention of arriving safely in an attractive well preserved body, but rather to skid in sideways, chocolate in one hand, martini in the other, body thoroughly used up, totally worn out and screaming 'WOW', what a ride!!!" It just seems like some days are like this in our industry... just thought I'd share a smile.
… (0 comments)

on the lighter side... sharing a smile - 01/28/08 09:10 AM
A few years back I was having a conversation with my 3 year old daughter about the the possilblities on having another baby. She was offering to "do very thing" feed it, change it, raise it even take it to school with her when she would go... it was so cute. My answer was always the same... sorry no... Then one day we were at Walmart in the baking isle where she was asking me what powdered milk was... I explained that you added milk to the powder and you had milk. She smiled and we went on our way... about … (6 comments)

time settles all things - 01/24/08 10:24 PM
This past summer in June we helped a young couple purchase their first home... is was a very rough loan... when we first met with them in April they had mid 400 scores... we help them clean up some easy things on their credit... their parents help gifts funds... the problems came in when so may on the subprime lenders we were going out of business... we were switching lenders three times in the last two weeks... and the terms of the loan were getting worst... as hard as we tried to explain, the realtor they were working with was throwing … (2 comments)

Orphans - 01/23/08 08:10 AM
Here is an idea that will help all of us that have stayed thru these rough times in the mortgage real estate business. When a loan officer leaves a company the clients they brought to the company are called orphans. These clients now belong to the company. Ask to see if you can contact any orphan files in your office to see if they need any mortgage or real estate help. Be nice enough, and they will allow you to add them to your database. Best of Luck to all … (0 comments)

Orphans - 01/23/08 08:08 AM
Here is an idea that will help all of us that have stayed thru these rough times in the mortgage real estate business. When a loan officer leaves a company the clients they brought to the company are called orphans. These clients now belong to the company. Ask to see if you can contact any orphan files in your office to see if they need any mortgage or real estate help. Be nice enough, and they will allow you to add them to your database. Best of Luck to all
… (4 comments)

don't throw me out again!!! - 01/22/08 09:17 AM
About a month ago I printed two copies of a letter I was mailing out to prospective customers. One copy of the letter I put in a stamped individually printed envelope. Knowing full well that the majority of these would be discarded having seen the letter was coming from a mortgage company. The second letter I crumpled up and wrote acrossed the top in red marker "...don't throw me out again..." folded and stapled shut... then addressed outside in red marker... I mailed to 250 people... 26 responded... 2 thought I actually went thru the garbage to look for these letters and mail them … (17 comments)

How to start a successful day - 01/20/08 11:33 AM
Before you go to bed write down three things you are going to do first thing in the morning... they can be any thing... phone calls, etc... it is amazing how such a easy thing can jump start your day... I realize it sounds silly or too easy but I think if you give it a try a and stay with it you'll be amazed... some times during a very trying day it is nice to know you got something done when every thing else is going wrong... best of luck and hang in there...
… (8 comments)

How to start a successful day - 01/20/08 11:33 AM
Before you go to bed write down three things you are going to do first thing in the morning... they can be any thing... phone calls, etc... it is amazing how such a easy thing can jump start your day... I realize it sounds silly or too easy but I think if you give it a try a and stay with it you'll be amazed... some times during a very trying day it is nice to know you got something done when every thing else is going wrong... best of luck and hang in there...
… (1 comments)

Book Store Marketing - 01/19/08 08:24 PM
I recently asked a local book store if would be alright if I put my business cards in real estate related books in the store... on the back of my card I offered to pay for the the book if they aggreed to meet about doing a mortgage... so far I have purchased 11 books for $211.00 and have closed 2 loans  for $7,000 in fees in 2 months... it is worth it, try it out, but ask the store for permission first... … (7 comments)

Go Packers - 01/19/08 07:44 PM
A friend of mine and I were talking about the changes and difficulties in the mortgage lending business. He said that the business would turn when the Packers go to the superbowl again...and he laughed that will be a cold day in Hell... he said this back in August... the Packers are playing the Giants tommorow in 10 below wind chill... a very cold day in Green Bay... Go Pack and good lending to all … (3 comments)

double your loan amount double your profit - 01/17/08 07:45 AM
I recently was working with a customer that wanted to refi his loan he had us to a lower interest rate due to the recent drop in rates... after reviewing his numbers, he was at a low LTV and had about 800,000 in equity... at age 74 I thought we could help him use that equity more wisely... I contacted a friend at US Bank Investments and he confirmed my idea... US Bank could guarantee a 6 percent return... in addition last year the average return was 9.33... I advised my customer that I would like to discuss this with him … (3 comments)

no closing costs - 01/15/08 03:36 PM
Here we go again... the real estate market is coming around... rates are dropping... some loan officers are not telling the truth again... today I received three phone calls asking what my 30 fixed rate would be... my response is depending on what they qualify for based on credit, income and LTV... my best rate would be 5.875% and $1100 in closing costs... these customers replied that they were getting 5.375 30 year fixed with NO closing costs... well guess what this again not true... no out of pocket closing costs... so far I have received two GFE three points plus … (1 comments)

Banks and Mortgage Brokers - 01/13/08 09:50 PM
One of the best sources of business I've been able to come across are banks with loans that they can't close... Sure in years pasted it was sub-prime, but now it is stated of any kind or no doc. I addition to these loans we are getting request to finance equity out of homes to complete commercial loan transactions. If you would like to know more I would be happy to share. … (0 comments)

Bankrupt or Buyout? - 01/10/08 05:55 PM
Bankrupt or buyout? Wall Street has been hit with competing rumors some that say Countrywide Financial is heading towards bankruptcy, while others report that Bank of America, the second largest United States bank, is about to gobble up the ailing mortgage lender. Obviously a purchase of Countrywide by Bank of America would solve the company's funding and liquidity problems with a stroke of a pen, and make the bankruptcy concerns...moot," … (5 comments)

do points count??? - 01/09/08 10:21 PM
I recently worked with a customer that claimed she was getting 6% on a 30 year fixed mortgage with $1000.00 in closing costs for a $200,000.00 mortgage at 70% LTV rate term refi... at the time par was at 5.875. I asked the customer for a copy a the Good Faith Estimate. Her other lender has charging 2 points on the front end for origination and claimed that point don't count towards closing costs... needless to say she was not pleased to learn that she really had $5000.00 in closing costs... we closed her loan at 6.375 and a true $1000.00 … (2 comments)

 
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Rick Kellow FHA & Reverse Mortgage Expert

West Bend, WI

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Cherry Creek Mortgage

Address: 1725 Cedar Ridge Drive, Slinger, WI, 53086

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