port charlotte: Somebody explain this to me!
- 03/28/08 01:11 AM
Fortune magazine (online) headline by author Colin Barr. "Big Check for Countrywide Exec." Before I even began reading the article the following thought immediately popped into my mind: WHY? B of A will pay CW's #2 man, President David Sambol, $28 million in cash and stock if he sticks around for 3 years. Why, why, why, why, why? Here's the recipe to make the BIG bucks. Offer one of the most liberal stated income programs, Fast & Easy, with low and no down payments required. Verify nothing, and allow those with scores as low as 680 and 1 day jobs to qualify. This is/was A paper supposedly, but … (17 comments)
port charlotte: FHA/Conventional loans-where are we?
- 03/24/08 05:29 AM
Okay, so to start off with, we have your good olde conventional loans, well not exactly. I'm in Southwest Florida, so we have reduced LTV's, with more restrictive guidelines. PMI doesn't like us much, and is resistent to insure our loans, if they'll insure them at all. FNMA & FHLMC have gone to tiered pricing and I can no longer accurately quote interest rates without a tri-merged credit report in my possession. Without it, at some time I'm going to be accused of bait and switch, no matter how well I explain the situation to the prospect. Appraisal requirements are a mystery sometimes, … (3 comments)
port charlotte: Are Subprime loans making a comeback?
- 03/23/08 03:15 AM
This past week I received three different contacts from "subprime" lenders looking for new business. I told the national sales manager of the first company that called that I didn't know what a subprime loan is. He stated that they were looking for FHA near misses. But unless he has a different idea of FHA quality in today's market the guidelines that he sent to me were not close. Try these guidelines; Bank statements, 60% debt ratios, and ficos starting at 525. Yep, that's subprime stuff alright. I don't know of any FHA lender using these criteria as their basic guidelines. Okay, there's no … (11 comments)
port charlotte: Twisted Thinking?
- 03/19/08 01:23 AM
James Cooper has written an article in Business Week entitled, " It sure looks like a recession." The media loves this word, RECESSION! It's one of the words which can strike fear in an individual, so let's use it as often as possible. It's great for sales! Once again, a recession by definition is 2 consecutive quarters of negative growth. We have not had 1 quarter of negative growth yet, but the media has been stating, or hinting that the economy is in a recession for months. Well, it's good for sales! It's also irresponsible in my opinion, for whatever that's worth. Okay, here's … (5 comments)
port charlotte: FEAR!!!
- 03/18/08 01:00 AM
Finally, it's out in the open. In a CNNMoney.com article this morning entitled "Why the Fed can't put out the fire," David Wyss, Standard & Poor's chief economist let's the cat out of the bag. In regards to the Fed's actions he says, "It doesn't adress the fundamenatl problems, which is that the financial markets are just scared." "The Fed is trying, but they don't have a magic wand to wave and make everyone confident again." BINGO!!!!! Here's Rich Yamarone's take," Anytime you act on Sunday night during '60 minutes' if you don't think that will endanger fear, I don't know what does." Rich Yamarone … (6 comments)
port charlotte: Chairman Bernanke-Mortgage Underwriter?
- 03/17/08 02:37 AM
I waited a few days after reading a CNNMoney.com article entitled "Bernanke outlines mortgage help plan-Fed chief says central bank "strongly committed to easing mortgage crisis," to see if it still struck me as being so odd that the Fed wanted to venture into the world of "mortgage underwriting." While I'm happy to hear about the Fed's concern, the issues which need to be addressed seem to be outside the Fed's realm of responsibility. Just one man's opinion. Doesn't the Fed have enough to do within the realm of their responsibilities? Are Fed members qualified mortgage underwriters? I think not! Let's check those resumes and see … (6 comments)
port charlotte: Stated/No Income Verification Loans-They've been around forever!
- 03/17/08 01:31 AM
From a historical perspective Stated/No income verification loans have been around forever. However, we may have not called them that. For you newbees you may not remember the good old "loan committes" at your local bank. Back in those days we did something called portfolio loans. So what is a "portfolio loan?" Essentially it was a loan where as a banking institution we used our own money, and we made the rules. The loans went before a loan committeee, made up usually of bank officers, who evaluated the request and made a decision as to what was felt to be in the bank's … (8 comments)
port charlotte: Fed's Answer-throw $200 Billion at it! (and see if it goes away)
- 03/11/08 04:14 AM
In an effort to increase liquidity the Fed is initiating a program to make available $200 Billion in funds to primary dealers, that would be large investment firms which deal directly with the Fed. Seems like some serious change to me. The big question is will it help? On the surface you gotta believe the answer is of course, but then again maybe not. The Term Securities Lending Facility (TSLF) will accept as collateral pledged securities such as fedral agency debt, and federal agency residential mortgage backed securities. It seems like we're on the right track here. But is easy money the answer? CNNMoney.com … (6 comments)
port charlotte: SURPRISE!, the Fed can't fix it!
- 03/11/08 01:21 AM
There's a nice article on CNNMoney.com today about the results of the Fed's cuts, or the lack thereof, which began about 6 months ago. The first and most major flaw, in my opinion, is that they are trying to compare the results with those of previous rate cuts dating back to 1950. Try this on for size; The global economy which exists today bears no stiking resemblence to the economies from 1950 through to the year 2000. Why then would we expect the same results? Next; The Fed loans are not easing "the credit crunch." So we're not going to immediately return to the fast and loose … (12 comments)
port charlotte: Home (NO) Equity Loans Shutdown
- 02/26/08 01:28 AM
The guidelines for new home equity lines don't bear any striking resemblance to what we have seen in the recent past, and the guidelines for the existing lines are changing as fast as you can say ouch! I must say though this looks like prudent behavior to me. New equity lines are going to have some special provisions. The first and most important one is: You must have some, equity that is. Remember the 125% LTV equity line, well you can forget about it. The second new guideline is: You must have the ability to pay. I know that sounds tough, but they were never really designed to … (4 comments)
port charlotte: Let's hear it! LOUD & PROUD!
- 02/25/08 11:35 PM
I don't know about you, but it seems all I keep seeing are articles about doom and gloom. There's foreclosures, a lack of sales, credit crisis, subprime problems, and so on, and son on, and so on. There is just absolutely nothing positive going on in the marketplace today. I have a suprise for you. American spirit and determination lives on. I grew up in a period of free expression and protest. Because of this there was a term that was created to describe a certain segment of the population. Anyone remember? "the silent majority" Today we have a segment of our population which goes about … (4 comments)
port charlotte: Debt Ratios; How High is TOO High?
- 02/19/08 11:57 PM
I was reading an article online this morning about subprime loans that were defaulting before the rates reset. They quoted analyst Michael Youngblood of Freidman, Billings, and Ramsey as being shocked by this fact. I guess we were to believe that Friedman, and whomever were some sort of experts in regards to these matters although, personally I'm not familiar with them. However, I would question that they are, based on Mr. Youngblood being "shocked" by this phenomenon. Many/most of the subprime loans allowed for debt ratios of up to 50%, some even went to 55%, or higher. That was of the gross. That fact … (24 comments)
port charlotte: I Don't Make Enough Money!
- 02/17/08 10:52 PM
While the Presidential candidates and the Congress are throwing around bailout plans like there's no tomorrow, there's a problem for many homeowners, which they can't fix. The real problem is; I don't make enough money! These homeowners fall into many different categories, but let's just check out a few. I NEVER made enough money to afford the mortgage payments! I grossly, intentionally, overstated my income to buy the house. I confess. I knew I didn't make the amount of money that I put on the loan application, and the loan officer knew it too. He/she said that they do it all the time. That I … (16 comments)
port charlotte: FHA Limit Increases, Are the Loans Saleable?
- 02/16/08 01:57 AM
Well, are they? Don't know yet. BUT: There appears to already be some resistance to Fannie's and Freddie's increases, feel free to read "Fannie & Freddie Get the Cold Shoulder." Larger FHA loans with low or no out of pocket investment may not be saleable, even with the FHA insurance. Investors have been burnt in the marketplace, and are not necessarily going to step up to the plate, without at least a warm and fuzzy feeling. I think right now that they are still feeling a chilly breeze. Like most others I am personally excited about FHA increases, and the positive effect that they could have in … (4 comments)
port charlotte: Fannie & Freddie Get the Cold Shoulder!
- 02/16/08 01:33 AM
Fannie & Freddie's loan limits are increasing! This should help! Yea! Hold on for just a minute now. Things may not be quite that rosy. CNNMoney.com reports that the Securities Industry and Financial Markets Association said that the larger loans, above the previous $417,000, will not be allowed on the "To Be Announced" market, which permits investors to buy and sell mortgage backed securities, before the loan pools are put together. The fact is that most securities issued by the agencies are traded in this market. Including Ginnie's, that would be your government loans. So, are these loans, in excess of $417,000, saleable? Or … (3 comments)
port charlotte: And Then, REALITY Sank In!
- 02/14/08 12:58 AM
I was reading an article this morning by Les Christie of CNNMoney.com entitled, "Hope Now: When loan workouts don't work out." I think the article points out the naivete' of the writer in that it appears for some reason the writer felt that more/most of the workouts should work. Why would someone believe that? Remember now that some of the stated income, no downpayment, subprime loans never had a chance and still don't. The fact is that the income was sooooo grossly overstated that the homeowner either needed to be able to live off of the equity developed, or sell the property for a … (2 comments)
port charlotte: Refinancing (or not!) the Subprimers and Others
- 02/08/08 08:27 AM
I was reading an article about how few people could actually take advantage of the current low rates. And it appeared that the emphasis was on the new, more restrictive quidelines. Actually, I couldn't disagree more! I'm not sure how all/most loan officers dealt with their subprime clients, but in my case a bit of counseling went along with the mortgage application. They were told that if they corrected the problems that they might have a chance of refinancing to a lower rate. They were also told that if they didn't, they couldn't. Well, many continued to pay as they had, and are … (0 comments)
port charlotte: FHA (Loans) CRUSHING Conventional Financing!
- 02/08/08 02:24 AM
For comperable loans, within FHA loan limits, the FHA advantage in regards to rates, quidelines, and attitudes is overwhelming. Check this out! Rates; Since fannie/freddie, and essentially all conforming lenders, have gone to the tiered pricing the FHA rates for scores between 620 and 679 look better and better. No hits with FHA! The descrepency with loans beween 620 and 639 is substantial. Also, for low downpayment loans Magic (PMI) is increasing their premium from approximently .9 to 1.7. If you are applying for a low/no downpayment loan they've got you coming and going. No change at FHA! Also despite what you hear from the national media … (24 comments)
port charlotte: Oh NO! Good News, Quick Hide it Somewhere.
- 02/06/08 01:18 AM
Bury it on the back pages! Delete the articles! Quick do something! Okay last week I saw the manufacturing index move over 50. That's an indication of growth. opps! Oil prices today once again are lower. They have slipped under $90 barrel, actually closer to $87. I noticed this when I filled up yesterday the price was about 10 cents less per gallon than the last time. Mortgage applications have increased, and since that is being influenced by refinances and lower rates, we have additional residual effects. Extra cash, no payment for one month, and lower payments for the duration. Any way you cut … (13 comments)
port charlotte: Advertising Interest Rates, I Can't/Won't Do It!
- 02/06/08 12:41 AM
I'm not going to go as far as to say it's not ethical, but I cannot in good conscience engage in advertising interest rates. Here's a couple of reasons why. If I quote you a rate Right Now! unless I have an application in hand, and can lock that rate it doesn't mean anything. The experienced loan officer knows, actually the inexperienced loan officer knows, that rates can change at any time, literally any second, and then again, and again, and again. I find it especially problematic to have advertising which will not be published for 3-5 days with a rate in it. At … (11 comments)
Fortune magazine (online) headline by author Colin Barr.
;)
;)
;)
