Jay's Blog

That's it Baby!

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Tue, 24 Nov 2009 20:43:13 -0600

The closing agent from the title company says, "we have a funding #," as she walks by with a copy package of signed documents.

The buyer looks up, and innocently says,

What does that mean?

The hard working Realtor smiles.

The loan officer, throws his arms up in the air to signal a score.

That's it baby!

The house is yours!

Actually when a house is financed very often the closing agent must fax particular documents to the institution who is funding the loan. In most cases, at least the mortgage and the note, and then whatever other signed/executed documents the lender feels pertinent. These documents are reviewed and if/when they are found to be acceptable the lender issues a

Funding #

and then we're done. Let the party begin

because;

That's it Baby!

The house is yours!

What's wrong with me? I'm just not angry with anyone.

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Mon, 23 Nov 2009 07:21:43 -0600

Caution! This is not a rant. Well maybe a reverse rant, if you know what I mean. A rant according to Webster's is talking wildly, I do do that sometimes, I guess, after all I'm an excitable boy, when properly motivated. Angry is defined as being enraged. Maybe I am angry, and just don't know it.

For example I saw a post about the predictions of NAR economist, Lawrence Yun. Apparently he's not real good at predictions, or at least not lately, and I can understand that many Realtors believe it's not in their best interests to follow NAR'S lead and paint to rosy a picture, especially based on Yun's opinions. I have an option for you.

Just ignore him.

Beware though, what happens if he turns out to be right?

I think the Banks and the banking industry, in general, act mighty peculiar. We all know or many of us feel that they just flat out don't care about their clients/customers. But that goes on in many industry's including ours. But the Banks are the worst you may say, and I will agree, particuarly at this time. BUT, they are not going to change their behavior, and I'm not sure we will be able to make them. So, I have an option for you. Yep,

Just ignore them!

Those new lending guidelines are just killing my buyers. When are the mortgage lenders going to lighten up? Not soon, I'm afraid. Fannie's about to release their new approval engine and the total back end ratio will be 45%, 50% with compensating factors, whatever those are? There, that one hits me right in the kisser! I can't change this though, and I'm not sure that I don't agree with the change. Actually I do agree, even though buyers will qualify for less, and not be able to stretch as far as they use to. That didn't seem to work that well anyways. I do have an option for you. Nope, it's not ignore it.

Live with it!

I've found that I don't work as well when I'm all fired up over something that I find irritating. I also don't believe I do my best work serving my clients when I'm all lathered up over an issue that's annoying me.

So, what's wrong with me? There's plenty of things going on in today's market which are extremely annoying, but right now;

I'm just not angry with anyone!

SOUTHWEST FLORIDA-Has our Market Improved? If so will it continue?

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Sun, 22 Nov 2009 07:09:08 -0600

Boy I've read some of the articles bashing Lawrence Yun, the NAR's economic guru, and some of it wasn't pretty. Oh well, when you put yourself our front like that you're subject to both praise, I didn't hear any, and criticism, he got plenty of that.

The postings and bashing did make me think though, and that's a good thing. I live and work in Southwest Florida, Lee County, and do I, or don't I, think our market's improved, based on Lawrence's big 3.

That would be sales price, sales volume, and foreclosures.

Let me start with the obvious;

Comparing 2008, yuck, yuck, yuck, to 2009 is a no brainer! Did our market improve in 2009.

Absolutely!

Big Time!

Before I start, I'm not sure what Lawrence's cred's are, but mine consist of the following;

I have over 25 years in the mortgage lending arena. I have lived in Southwest Florida for over 15 of those years. I have a B.A. from the University of New Hampshire with a Major in Political Science and a Minor in Business Administration.

Expert? No. Idiot? No. (some may disagree there)

Will our prices increase 4% in 2010?

I believe that they will. They will be driven by the single family detached dwellings. The buyers will be purchasing homes as primary residences, second homes, and investment properties. Actually I think there is a capacity for a more substantial increase, but I believe this will not occur as Condominium sales and foreclosures will continue to hold us back to a certain degree.

Will sales volume increase 15%?

I can't see that!

Our numbers are strong, even comparing them to our record years, I believe. The only way I can see that type of increase over 2009 would require a recovery in Condominium sales and that is not going to happen for awhile, in my opinion. There's little if any Condo financing available, and what is available doesn't offer favorable terms.

Will Foreclosures peak in the first half of 2010?

Check out Debbie Cullen's post on Lis Pendens, and if the numbers hold, then they already have. For many Realtors here this may actually be an area of concern, as the foreclosures have contributed to our inventory, and low prices, and removing them from the market should/will slow things down a bit. Add this to why I don't think sales volume will increase.

That would fall in the we're happy for the existing homeowners, but it will effect our sales.

Has our market improved?

Yes!

Will it continue?

Based on Webster's definition of improvement;

make or become better or more valuable.

The answer's

Yes!

As for Lawrence's predictions;

Two out of three in my book.

That's in the okay category.

Does "Clear to Close" mean you can close?

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Fri, 20 Nov 2009 11:11:33 -0600

Maybe,

Maybe not!

I mean I'm a loan officer with over 25 years of experience and some of this terminology throws me for a loop.

To me the question to ask if you hear that a loan is

"clear to close"

is when will the closing package be sent out.

If there is dead silence or a long pause, prepare yourself. You're probably about to receive an explanation as to what else needs to be done. If that involves any conditions involving something needing to be done by the buyer than I'm reaching the conclusion that it's not really

"clear to close"

at least not as I would expect any normal, non underwriting, or closing department person, to determine the meaning of "clear to close" to be.

The next step involves an individuals definition of "clear to close." Does it mean that a closing package is being prepared for the signatures of the buyer and seller, or does it involve the ability to be funded? That's a whole different discussion.

To me I think it's safe to say that when you're told a loan is "clear to close" that it has cleared the underwriter and is headed to the closing department, but it might actually mean it's "clear to close."

Actually it's a mystery!

So, does "clear to close" mean you can close?

Well;

Maybe

Maybe not!

What it was once worth-IT JUST REALLY DOESN'T MATTER!

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Fri, 20 Nov 2009 06:55:02 -0600

To the Buyers;

It's kind of interesting, to a certain degree, that the house that you can purchase today for $100,000 once sold, or could have sold 2,3, or 5 years ago for $250,000. It's really great that you don't have to pay that for the house, because maybe you couldn't or wouldn't have tried to buy it. But in regards to what it might have been worth previously as compared to what you can buy it for today;

It just really doesn't matter!

All that matters is today's value.

To the seller;

You paid $250,000 for a home 2,3,or 5 years ago and it isn't worth more than $100,000 today and you really must sell it today. Yes I will concede, particuarly if you are selling short, that the difference has some relevance, but that fact alone doesn't change what the value of the home is today, the market does. So when it comes to what it is worth today, what you paid for it really;

It just really doesn't matter!

To the mortgage holder;

Whether you acquired the property through foreclosure, or are considering a short sale, and originally the property sold for $250,000 and you accepted a $250,000 mortgage, you foolish creatures. In regards to the value of the property today;

It just really doesn't matter!

The point here, that I am attempting to make, is that all that matters in regards to the value of the property today is what is the actual value of the property today, supported by comperable sales, today's comperable sales.

When it comes to the historical value of the property and its relationship to what it is worth today.

It just really doesn't matter!!!!!

I'm approved, I think!

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Thu, 19 Nov 2009 10:26:21 -0600

Well I started looking for a home, and my Realtor told me I had to be preapproved. Since Pre means before I took it to mean I had to be checked out before I was to be approved, which as it was explained to me would take place after I signed a contract to purchase. I gave them my social security number, birthdate, paystubs, and bank statements, and in return I was given this really nice letter saying I had been preapproved for x amount of money for a mortgage.

Best I could figure the preapproval was a license to shop.

Okay, good start, let's go looking.

I found a house, made an offer, and it was accepted.

What now?

I met the loan officer, nice person, signed about 60 pages worth of documents, forked over some more personal and financial data, and went home to wait.

What next?

I was contacted by a person called a processor, who requested additional information. I really didn't think I had any additional information, but she found some. I forked over $$$ for an appraisal, and sat back and relaxed.

They couldn't possibly want any additional information, could they?

The processor called in about 2 weeks and told me that my file had been reviewed by the underwriter, and I was approved, with conditions. When I reviewed the conditions I came to the conclusion that the underwriter was a very creative human being who had somehow found some more information, which they just had to have. I sent in the information and the underwriter signed off on the conditions.

That means I'm approved right?

Well kinda, the file is going to the closing department and I'm told that we have some closing conditons. We can close when we satisfy these conditions.

Everyone involved is assuring me that I'm approved, but I don't feel approved.

So, while I'm not totally sure.

I'm approved, I think!

Help a Veteran Purchase a Home-Here's How and Why.

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Thu, 19 Nov 2009 08:00:10 -0600

The Va Loan Program for eligible Veterans is just flat out a great program and a wonderful opportunity for qualified Veterans and;

They EARNED it!

I mean we're talking about

100% financing with no monthly MI

Here's some of the requirements;

181 days of active duty during peacetime

90 days of active duty during wartime

6 years in the reserves or National Guard

spouse of a service member killed in the line of duty

Other Veterans may qualify under special circumstances such as being discharged early due to a service related diasability.

Funding fee;

This is a one time upfront charge, traditionally financed with the loan.

2.15% on 100% financing for the first use

3.3% for 100% financing on second or subsequent uses

1.5% for up to 90% financing

1.25% for 90% financing or less

a higher rate applies to reservists and National Guard eligible Veterans

Traditionally we would not see a Veteran making a downpayment, however in today's world with either the total lack of conventional financing below 80% loan to value or high MI premiums, this option should be considered for those wishing to make a downpayment on a home.

Exempt;

In most cases a Veteran will be exempt from the funding fee under the following circumstances;

service connected disability

those who would qualify for disability status, but do not receive disability due to receiving retirement pay

surviving spouses

Income and Credit qualifying;

This is an earned benefit and the Veteran's Administration wants the Veteran to be able to use their entitlement. But they do not want to put a Veteran in a bad position right from the start. As with ALL loans in todays market the lenders have their own point of view. Remember

the Veterans Administration Guarantees the loan they do not Fund the loan!

That being said the guidelines are more relaxed than for most other financing options.

Credit for the last 12 months carries the most weight.

the income ratio is 41%, but may be expanded with compensating factors

the VA also uses a residual income formula, a 120% residual ratio is a HUGE factor towards approval.

The residual formula, in it's simplist form, is based on what's left for monthly income after all the bills are paid. The VA has standards based on family size.

WHY?

First, it's the right thing to do! there should not be any limit to what we will do to support and thank OUR Veterans.

Second, it WILL generate more sales, and that's our job.

Never, never , never forget how a Veteran acquired their eligibility.

They EARNED it!!!!!

Face Piles, and Piles, of Trials with Smiles!

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Wed, 18 Nov 2009 13:36:55 -0600

In the Beginning, from the Moody Blues, tells us to face piles of trials with smiles.

Great Advise, wouldn't you say.

We're experiencing a "new beginning," some refer to it as a recovery, some say we're not there yet.

We have a new market, or maybe that's markets, as some bare no striking resemblence to others.

New rules, to some of them we say yuck!

To many of us it feels like our leaders and our financial markets are taking advantage of us, kicking us when we're down. Well get back up!

Here's the rest;

there you go man, keep as cool as you can

face piles, and piles, of trials with smiles

it riles them to believe, that we can perceive,

the webs they weave,

and keep on thinking free

Great stuff!

Ages real well.

To me it's very applicable; keep on doing the best that you can despite any/all obstacles that you may encounter. Don't be beaten down. Beat the odds!

Be the BEST Realtor, Loan Officer, Title Agent, Blogger, etc. etc. etc. that you can be.

Let nothing stop you from being successful, from giving your clients the best representation possible

ALWAYS!

Face piles, and piles, of trials, with smiles.

and keep on thinking free.

thanks Moody Blues!

Helpful Hints for First Time Homebuyers

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Wed, 18 Nov 2009 09:33:42 -0600

This is not to be considered to be an all encompassing, what you need to do before and/or after buying your first home, but more of a food for thought type of thing.

First Lesson;

Think, about what you are about to do!

Sounds obvious, doesn't it. Well tell me then, why is it when I ask a potential first time homebuyer what they will feel comfortable with for a monthly payment, usually there is silence? Not always, but usually. I assume this means that they haven't given it any thought, or at least not enough thought.

Downpayment;

You don't have to use all of your available funds to close the transaction. Cash reserves are very important to your success. If you don't have any, then you need to start developing some immediately.

House Fund;

Develop a specific account just for your new home. As a renter, when there was a problem, you called your landlord and requested/demanded it be fixed immediately. Now you need to dail your own number and talk to yourself about it. This isn't a case of will something need immediate attention, BUT when will it happen. The house fund is solely for the house.

Residual Income;

This is what's left after you have paid ALL of your bills and expenses, your fun money. Will you have any? money? fun? Will you be living and working solely to support your home? Is this acceptable to you? I refer you to section 1, entitled "think about what you are about to do."

Savings;

Do you have any? Do you need any? If you need help on the last question, the answer is yes. Do you remember years back when one of the chic expressions was "shit happens." While I don't hear that any more but it's still true.

Your fixed rate payment is not fixed!

If your payment consists of principle, interest, taxes, and insurance in all likelihood the payment will increase annually. The principle and interest will always be the same, but the taxes and insurance may increase.

All I'm trying to suggest here is that you be prepared and go into the transaction with your eyes wide open. Align yourself with a Realtor and Loan Officer who are experienced with first time homebuyers. Feel free to ask a lot of questions.

There is no such thing as a stupid question!

Each individual and couple are different and have their own needs/wants. Make sure yours are being met. This post is not meant to answer all questions, just to make you think a little. After all, these are just

Helpful Hints!

I am a Mortgage Lender-I have no common sense!

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Tue, 17 Nov 2009 12:11:34 -0600

That's about as much truth as you're going to hear for awhile. I have been expressing this opinion to Realtors and buyers for quite awhile. And if you are trying to evaluate a lender's behavior by using common sense criteria then I have a piece of advise for you;

STOP!

common sense (from webster); good sense or practical judgement

There you have it, that's not us!

We look like we have taken a step back into the past. We look that way because;

We have.

Here's a little "common sense" application as to why.

We were loosy, goosy for 5-6 years. I believe the approval process involved having a pulse. Yes, that's it. If you had one you could have a loan. I believe that it might have been, that even if you didn't, you might get a loan anyway.

Even if you had never paid anyone back, at anytime in your life, you could still have a loan.

And for some reason we thought we might get paid back. Why we thought that, I'm not sure.

Well that didn't make any sense.

So now we regressed into a more traditional mode of lending behavior. An adjustment needs to be made by all.

If we know that more paperwork will be requested, and we know that all the inspections will be, well inspected, we need to prepare or clients for the experience.

As Realtors, YOU are my client!

Beware, as you already are, that we will require more paperwork.

My promise to you is that I will work hard in your behalf, that I have been a mortgage lender for 25+ years and have been down this road before. I will be truthful with you, no BS. I will attempt to make the process as easy as possible for both you, and my other client, the buyer. Let me add, and this is extremely important.

A good, experienced, knowledgable, hard working L.O. is vital to your success today!

But, one thing I can't change.

I'm a mortgage lender and I don't have any "common sense!"

USDA/Rural Development Thanks Florida Lenders/Realtors for BEST Year EVER!!!

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Mon, 16 Nov 2009 22:44:27 -0600

I just got my fall copy of "The Guaranteed Eagle," the Official News of the SFH Guaranteed Loan Division of USDA/Rural Development. The cover letter says it all.

Check it out! See how much the guaranteed loan production has grown this year making FY 2009 the

Best Year Ever!

It goes on further to say;

Thank You

for assisting 6,652 FL/VI families with $842,402,865.34 of Rural Development guaranteed loans this year.

My first thought is,

You're welcome!

Even at the ripe age of 57 my parents teachings still rule, so to me you're welcome is appropriate/necessary.

My second thought is;

Wow! what great numbers.

Maybe we don't need alot of new programs and giveaways, maybe all we need to do is make the best use possible of programs already in place.

Interesting thought, huh.

Nationwide;

The Single Family Housing Guaranteed Loan Program increased volume over 111% and dollars obligated increased over 132%.

Here's a great quote, coming from a government agency.

"Rural Development wishes to thank all of our lending and real estate partners for supporting the Guaranteed Loan Program. We are proud to partner with you to offer stable, affordable, and reasonable loans to create more successful homeowners."

Well right back at Ya!

I'm just one man, and I don't have any right or authority to speak for our industry, but I ask you all to join me in thanking those who worked so diligently at a time, that we needed it the most.

Hat's off to all those working at USDA/RD for a job well done.

Thank you! Thank you! Thank you!!!!!

100% USDA/RD financing LOVES Collier County!!!

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Mon, 16 Nov 2009 11:03:36 -0600

Okay I've checked the maps, and I visited the website, and I just can't find any part of Collier County which is not eligible. They do have a specific list of county's with ineligible areas and Collier County is not on the list. This does go to prove something that I have been continuing to stress;

Rural Housing is available wherever the USDA says it is, it has nothing to do with RURAL areas!

Naples, Marco, Immokalee, Golden Gate-go for it!

So what's the benefit to perspective Collier County Buyers;

100% financing-no downpayment required

Closing costs can be paid by the seller or financed when supported by an appraisal

No first time homebuyer requirement

No FHA 90 day seasoning

No monthly Mortgage Insurance-MI

These are not all the benefits, and USDA/RD offers very competitive 30 year fixed rate mortgages.

You're thinking there must be some restrictions. Well you're right. The two most important, in my mind are;

The property must be a single family owner occupied primary residence.

While there is no value restriction, there are income restrictions.

For a family of 1-4 members the guideline states the income should not exceed $81,450.

For a family of 5-8 members the guideline states the income should not exceed $107,500.

These incomes can be adjusted based on particular family expenses.

So, for those potential buyers in Collier County I need to know.

What are you waiting for?

USDA/RD LOVES you guys!

I suggust giving some back, while you can!

I need a mortgage brokers license-I'm not sure why

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Fri, 13 Nov 2009 20:56:37 -0600

Well I know the actual reason, which is that the State of Florida has changed the law in regards to my lending status, and I am now required to become licensed. Really I don't have a problem with being licensed, but so much of this seems fishy to me.

I currently work for a company which is considered a correspondent lender, and as such I am exempt from needing a brokers license, but that will change as of January 1st. At that time essentially anyone who looks at a file will need a license unless

They work at a Bank.

The legal aspect of this is that banks come under a different jurisdiction, that being federal, and are unaffected by the changes in state law. The part that I don't feel comfortable with is that it appears the bankers don't feel that they need to fall under the same requirements or scrutinization. After all we all know

that certainly no bank employee could have done anything questionable, which helped to contribute to the mortgage problems.

That just couldn't be possible now, right?

Day 1 Mortgage Brokers School

I must admit that I got extremely lucky in that my instructors are excellent. I'd like to tell you that this was a result of my own research, but it's not. They're just real good.

And Honest!

They make no bones about the fact that their purpose is to prepare us to pass the state's test. Their job is hampered by the fact that in many cases the test is outdated, and that you must learn the wrong answer, which happens to be the right answer, as far as the test is concerned.

That's right forget the correct answer, or it will be marked wrong, and you may not pass.

The state tries to pass off the test as important, but not important enough for them to do their due diligence so we all may actually learn something, and do things right.

They certainly are not setting a very good example.

Most of the class is made up of experienced loan officers, who also lost their exemption, and must now become licensed, but we do have some newbies. They're a little bit more than just confused and

We're setting a real bad example for them.

I guess that's not important.

I first arrived in Florida in 1992, and have been involved as a mortgage lender for about 15 years, without a single complaint. I do sincerely try to do it right, all day, everyday.

So I will get the license, because I have to, it's the law.

BUT,

I'm not sure why.

100% USDA/RD is RED HOT in Lehigh Acres, Fla.

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Thu, 12 Nov 2009 20:25:59 -0600

If you're looking for property in Lehigh Acres as a primary residence take a look at USDA/RD also known as Rural Development. Also keep in mind that this program is available in parts of San Carlos Park, Estero, Bonita Springs, and all of Collier County.

The BIGGEST fallacy to dispel is that Rural Development is for rural properties. It sounds like this should be the case, but it's not.

RD loans are available, pretty much, anywhere that the United States Department of Agriculture has determined that they are needed.

These decisions have absolutely nothing to do with if the property has any rural influences, but there are geographical restrictions.

Why are they so hot? they offer;

100% financing

No monthly mortgage insurance (MI)

the closing costs may be financed or paid by the seller

No First Time Homebuyer requirement

No FHA seasoning requirement for properties

possible additional funds for repairs

credit exceptions with 620 scores and above.

There are income limits, but they have been increased.

This is a great program for those with limited funds or those who are looking to minimize up front costs.

And this program is;

RED HOT!

Sizzling Actually!

I'm just TOO Stupid!

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Wed, 11 Nov 2009 07:23:44 -0600

I realized this while reading an article about the birdseed guy, Jim Carpenter. He stated that "he was just too stupid to realize that he couldn't make a living selling birdseed." Well he started with one store around 700 square feet, and now has about 270 franchises across the United States and Canada. Jim has a passion for the "natural world."

I read about Jim in "Success Magazine." Yes I read a magazine called "Success," and yes it is filled with those disgusting positive ideas and stories about people who have overcome incredible odds to be successful, and how they did so. I really need to stop reading this stuff as it can't possibly help ME!

Wrong!

I must admit my buddy Deb snickered, as she handed me the mail. Here's your copy, he he, of "Success Magazine," he, he, he, snicker, snicker.

"Thank You," I replied.

Well, I've got to tell you,

I'm just to stupid to think I can't be successful in our current marketplace!

The most important reason is that I refuse to accept that I can't.

Another reason is I've seen worse. Go ahead, argue with me about this.

On another forum I made a comment suggesting that you think about what you would consider a successful 2010. An old friend of mine suggested that "you've got a message that most people won't consider, for alot of folks, in this economy it's day to day." I reject the former, but accept the latter.

That doesn't mean that they shouldn't identify what they would consider a successful 2010.

and

develop a plan

and (to quote Rocky)

Go for it!

So, to a certain degree, just like Jim,

I'm just too stupid to think I can't be successful in 2010!

and

I'm very thankful for that!

Homebuyers Tax Credit- Existing Homes-Somebody Help Me!

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Tue, 10 Nov 2009 10:56:52 -0600

Okay I went on the IRS site, the real one, and read the updated info available. I have a BIG question.

The existing homeowner has/had to have been in the home 5 of the last 8 years.

If they are in it currently what happens?

Must it be sold?

Closed?

Listed?

WHAT?

I live in Southwest Florida, where many people buy residences as their primary residence for tax purposes. This does not mean that they sell their existing residence wherever. They may homestead the new property, get Florida licenses, and register to vote, but hey still own the original home and may use it for X amount of months during any calendar year.

Do they qualify for the $$$$$

Once again I was on the IRS site, but didn't see this addressed.

Does anybody know what the rules are?

If not, why am I not surprised.

If so, please share.

Please,

Somebody Help ME!

Govern(mental) Real Estate Speak

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Tue, 10 Nov 2009 08:35:58 -0600

The Homebuyers Tax credit has been extended. Well many think that that's a good thing. Maybe it is, maybe it isn't. It's interesting that all the reports say it was extended, as that's not actually the case, as it was changed, possibly for the better, we'll find out, and then passed.

Why do we feel a need to confuse people with the provisions of some of these bills?

Having had the tax credit around for awhile it's safe to say that most/all of us realize that a first time homebuyer isn't necessarily a first time homebuyer. They could actually be a second or third time homebuyer as long as they have not owned a home in the last three years. Are there not words in the english language to cover this?

Oh yes, I forgot, First Time Homebuyer is politically popular.

I see that existing homeowners may now be eligible for a tax credit. Now look out here. An existing homeowner, according to the provisions of the bill, doesn't necessarily have to be an existing homeowner. In this case an existing homeowner may be someone who has, or had owned/resided a home for 5 of the last 8 years.

That doesn't mean that they own the home currently!

I'm not sure anyone is going to read this posting or they may think so what. But the short history of the tax credit has shown that many who claimed and received the credit were not eligible. Some were as young as 4 years old, according to a report from C(constantly)N(negative)N(news). You better look out for those computer literate 4 year olds. I wonder if some who are qualified won't file for the benefit.

Do you think the kid in diapers, buying stock on TV, is buying a home and claiming the credit?

Okay, so maybe only Andy Rooney and I would have these types of thoughts/concerns. Me I like to keep things simple.

Hey Andy, what do you think?

How do YOU measure Success?

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Sun, 08 Nov 2009 05:37:10 -0600

Well have you thought about this? If not, why not?

If you have clearly defined written goals than the process probably lead you down the path towards the following question.

What am I trying to accomplish?

Here's Success, by definition, Webster's style;

success 1. favorable result 2. the gaining of wealth, fame

Personally, I'm okay with the first one, but have some issues with the second.

Let's try some questions;

If you reach your financial goals, but have problems with your spouse or children, will you consider yourself successful?

Please give that some serious thought!

If you reach your financial goals, but ignore your health, and feel poorly, are you successful?

If you reach your financial goals, but haven't had any time off to enjoy it, are you successful?

These types of questions are endless and I could go on forever, but won't.

Is that applause I hear?

When you're working on your goals for 2010, STOP and THINK, what would I consider a successful year?

Is it JUST about business?

I think, not.

So take some quiet time, if you're in Southwest Florida, try walking on the beach. If you're in upstate NH, try sitting in front of a quiet fire in the fireplace.

Alone, and Think

How do I measure success?

Then develop a plan, follow it, and

Be successful in 2010.

Buyers/ Realtors Beware! There's a BIG CHANGE comin Your Way!

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Fri, 06 Nov 2009 09:50:24 -0600

These days I just keep hearing Bowie over and over and over.

Ch-Ch-Ch-Changes, Turn and face the strain, Ch-Ch-Ch-Changes

In about a little over a month FNMA is scheduled to release Desktop Underwriter 8.0.

I'm just soooooo excited!

Why you may ask? What's the BIG deal?

Well here you are.

The maximum allowable total expense ratio in DU will be revised to 45%, with flexibilities to 50% for certain loan cases with strong compensating factors. Deals exceeding the ratio will be given an ineligible.

Just a couple of thoughts which immedikately come to mind;

I used to feel I had a real good handle on what an Underwriter would consider as a compensating factor, but i don't necessarily feel so confident these days. Yesterdays compensating factor may not be accepted today.

They are now effected by mood swings, the location of the planets, things like that!

Fewer buyers will qualify under the new guidelines!

Get em while they're hot! Today's buyers may be looking at less house next month. That may make them very unhappy.

Watch out for this one!

Buyers currently preapproved may no longer be able to exercise their current preapproval.

If you didn't like preapproval letters before, you may like them less next month.

Check the date on the preapproval letter!

Now let's look at the BIG picture!

From a lenders standpoint the changes are prudent, responsible, and should have been implemented sooner.

Just my opinion? I don't think so.

Well let's get ready for this now, as it'll be upon us before we realize it. Those buyers who just must have the home that they will no longer qualify for need to enter into contract now and close in a timely fashion.

Look out! those sneaky lenders are apt to start making these type of changes now, in anticipation of Fannie's doing so.

Maybe Bowie shouldn't get all the glory, how about Bobbie Dylan,

"and the times they are a changin"

Yes they are and;

A BIG ONE's comin our way!

Homebuyers Tax Credit-They're not done yet! 11/06/09 They are Now!

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Thu, 05 Nov 2009 09:22:20 -0600

The Senate has passed an extension, which is attached to the unemployment extension bill.

It now moves to the House!

Here it must be reconciled with a House bill, previously passed. Rumor has it that they like the Senate's version better.

Then it can go to the floor for a vote, possibly tomorrow.

If passed, which it should, it moves on to the Prez, who is expected to sign the bill.

Stay Tuned!

As an additional tasty tibit let's move over to the

Fraudulent Side.

CNN reports;

Some 74,000 people claimed more than $500 million in credits even though they may not be first time homebuyers, according to Treasury Officials.

And, get ready for this, this is special;

More than 580 children, including some as young as 4 years old, have claimed the cr

YOU'VE GOT TO BE KIDDING ME!!!

I couldn't help but wonder, being the sick little puppy that I can be sometimes;

What about the deceased claimants? There's got to be some, don't ya think?

They must not have found them yet.

Well just for the record, please remember,

They're not done yet!

Ammended 11/06/2009

They're Done Now!

The new provision may be a little confusing for existing homeowners, or previous homeowners who do qualify for a lessor benefit, not all will.

And, as before, the $8,000 credit for first time homebuyers, may actually not be $8,000.

That's it, it's done.

Ta Ta for now.

Will you succeed in 2010?

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Wed, 04 Nov 2009 09:45:58 -0600

Well, will ya?

How about another question,

Do you have the will to succeeed in 2010?

by definition, Webster's style;

will 1. wish; desire 2. strong purpose 3. power of choice 4. attitude

Let me make a very strong suggestion to start off with;

Forgive yourself for everything that you have done in the past!

Forgive yourself for what didn't work, for that which you didn't try, for the mistakes that you may have made, everything.

Forgive yourself; clean slate, go forward!

So where do you start?

According to Chris Gardner, the author of "The Pursuit of Happyness,"

"Start Where You Are"

That's his new book, and quite frankly where else can you start from? If you have any familarity with his story you know that he got knocked on his butt, got up, and did quite well for himself. For most of us we're not starting off quite that bad, but some may be. Just remember, anything's possible if you have the will to succeeed.

Do you have clearly defined written goals?

Despite the fact that over and over again studies tell us that the most successful business people have "clearly defined written goals," most of us ignore this. Why? Why? Why? I don't know. Is it we don't want to be held accountable? Writing things down seems to do this.

The Power of Choice!

You will choose to succeed, or not. Sounds pretty simple, doesn't it. Make each and every choice wisely.

Finally, determine what success means to YOU, not what it means to someone else. How can you achieve it, if you haven't defined it.

So,

Will you succeed in 2010?

It's up to YOU!!!

GO FOR IT!!!!!

Underwriting Guidelines, What are they anyway?

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Tue, 03 Nov 2009 07:06:04 -0600

Okay we know that just having a pulse doesn't work any more. And we know that the programs are no longer tailor made to meet evey applicants individual needs. BUT;

What are the guidelines now, anyway?

Conventional;

We still have Fannie Mae and Freddie Mac guidelines as a basis, and we still use automated approvals as an approval basis, but they don't stand alone as approval criteria anymore. Now we also have guidelines which are established by and enforced by the individual lenders. Company policies, so to speak. A Loan Officer or Underwriter may state that, that's a Fannie Mae guideline, but that may often not be the case.

Also, in many cases we have guidelines/requirements attached to our warehouse lines. A warehouse line is used to fund a loan, while it is waiting to be sold. Because some companies failed, and still had millions on their warehouse lines, the warehouse lenders put on additional restrictions, so they would be could be sold, in the event that the warehouse lender was stuck with the loan.

The adding of guidelines is often referred to as layering and varies from one entity to another. In my opinion, this practice of, and by itself supports the need for more sources, such as mortgage brokers, to sift through the layering and identify a lending source that fits, or feels comfortable with a buyers needs.

Government;

FHA, VA, USDA/RD are all govern(mental) lending systems and as such you would think that they would be more consistent. You would be thinking wrong.

They do all offer a low and/or no downpayment option, which is greatly needed in todays market.

They do have different ways of looking at the property, which in my market specifically, has played an important role. We've had a lot of foreclosures, so on an FHA loan look out for;

Flipping

There will be no FHA loan in most cases unless the property has been held for 90 days. Then we need two appraisals up to 120 days.

For whatever reason VA and USDA/RD do not have that guideline. Why not? You figure it out, because I don't know.

What about their other guidelines? Let me sum it up as nicely and as simply as possible.

The govern(mental) guidelines are whatever the underwriter says they are!

That's it in a nutshell!

Is it consistent? No. Fair? No. Insane? Maybe (yes came close as an answer).

So when I'm asked;

What are the guidelines, anyway?

Sometimes the proper answer is;

I'm not sure!

Cash continues to pour into Cape Coral, Florida; What's a poor olde Loan Officer suppose to Do?

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Mon, 02 Nov 2009 16:21:07 -0600

What's up with this!

Don't these buyers know the economy is in the toilet.

Don't they have accountants?

Where's the $$$$$ coming from?

Stopped in to see the "bus driver" today. Lots of sales, mostly cash, probably as high as 95%. The team mostly solicites $$$$$ buyers. Well as a Loan Officer I think that, well mom told me not to talk like that or she'd wash my mouth out with soap.

I can't help mentioning having seen a lot of writings about teams, that the Lagace-Whitt Team may be a good prototype. Small, professional, firing on all cylinders. You just don't need 10-15 people to have a successful team.

Susan Milner, at Florida Future Realty, agrees Cash is King!

I've been involved in this marketplace for over 15 years and cash has always been a part of our market, but never to this extent, that I can remember. The market needed a boost and this certainly is accomplishing that.

Also this should help our appraisal situation by providing real comperable sales that are closer to where the market truly is?

But, what about me?

Well just send me some cheese to go along with the w(h)ining.

But I can't help asking as this trend continues;

What's a poor olde Loan Officer suppose to do?

Meet the NEW and IMPROVED "Good Faith Estimate"

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Sat, 31 Oct 2009 10:41:57 -0500

There's a new sheriff in town, actually it's the same old sheriff attempting to flex his/her muscles, if he/she has any.

The US Department of Housing and Urban Development has been working on a new GFE (Good Faith Estimate) for over a year, maybe closer to two and beginning Jan. 1, 2010 we're going to be using this new disclosure, or the new version of the old disclosure.

You can tell it's outdated as it addresses neg am programs, which the market has essentially banned.

You know closing the gate after the horse got out!

The new disclosure is 3 pages long as opposed to the previous one page document.

You know, more is better!

The beauty is that the Total Estimate of Settlement Charges is on the bottom of page one.

Personally I do expect many/most of the buyers to fall asleep somewhere on page 2.

The area currently drawing the most interest is in regards to the disclosure of yeild spread premium.

If you are a bank or an institution with a banking license, that being in most cases a mortgage company funding their own loans, but selling them at some point in time, you will not need to disclose ysp (yield spread premium) on the HUD.

This to me seems to be sneaky!

Where's the openness, the transparency? Apparently that's not necessary for the Banks.

You know how upfront they've been, now don't you!

If you are a Broker, you will pile all origination costs of your own, as well as the actual lender, into the origination fee. That's your point, processing, underwriting, etc. plus the lenders processing, underwriting, etc.

That could be a fairly big number! BUT

Yield Spread Premium to the rescue!

Now it will be shown as a credit to the buyer as opposed as a payment to the broker. The effect on the bottom line, disclosed on page 1;

NONE!

Page 3, which may turn out in practical application to be fairly useless, will disclose particular fees which may not change, those that can change up to 10%, and others which can change at random.

Does anyone really believe that a "good broker" will not be able to deal with this?

Ultimately little has changed. The bottom line should remain the same, so

It's NEW, but I'm not so sure it's IMPROVED!

From the WHO

Meet the new BOSS, same as the old BOSS!

No, I Can't Quote You a Rate!

Jay Beckingham (Allied Home Mortgage Capital Corp.) — Thu, 29 Oct 2009 04:59:09 -0500

I just got a new "rate sheet supplement" for adjustments and fees. I wish you could see these things. You'd really be surprised that a Loan Officer can accurately quote rates at all. Take a look at this, it's for FHA/VA Loans;

Loan Size

$90,000-$417,000 no adjustment

$60,000-$89,999 subtract .125 from price

$40,000-$59,999 subtract .250 from price

less than $40,000 not accepted

The obvious conclusion; smaller loans cost more money to the consumer.

Credit Scores

Fico 720+ no adjustment

Fico 660-719 subtract .125 from the price

Fico 620-659 subtract .375 from the price

Fico <620 and no score not accepted

The obvious conclusion; lower scores cost more money to the consumer.

Look out for the olde DOUBLE WAMMY!

Small Loans with Low Scores are MUCH more costly to the consumer!

So, John Q. Homebuyer calls and nicely asks, "can you tell me what your rates are today on an FHA purchase." I ask if he has any idea what the mortgage amount will be and does he happen to know what his score is. He answers no.

I can can give him the basic rate today with a verbal disclosure that it is subject to change, depending on the market conditions, his score, and the size of your loan.

When I respond I'm not being nasty, I'm being truthful.

No, I can't quote you a Rate!