Jen's Brain. For Sale. CHEAP.

Repost: How can we make sure this never happens again?

Jennifer Monastero (Polaris Funding Group) — Mon, 17 Nov 2008 17:29:31 -0600

One thing I have picked up on the Zillow discussion boards is that there is a huge amount of resentment towards consumers who bought into the frenzied 'must act now! prices are skyrocketing, don't get left behind!' marketing ploys. Some of that anger is not misplaced- after all, without the all-too-willing consumer, we would not be in the pickle we are in!

I met people along my winding road in the business who absolutely, positively were abusing the privilege of owning a home. People cashed-out their equity once a year to 'consolidate' their debt. From 2002 to 2005, people refinanced as many as 5 times 'chasing' the lowest rate and adding thousands to their loan balance each time, not to mention the new car, or the new boat.

As a rule, consumers are not smart. We are not supposed to be. If we were smart, snazzy advertising and 'bright shiny objects' would have little affect on us. Let's build up our defenses so that the next time we are all brought into the 'money money money- get it while it lasts' fiesta, we can walk away unscathed!

Here's a few ways we can ensure that this mess we find ourselves in doesn't happen again.

1) Cut up your credit cards. I'm just as guilty as anyone of buying something on credit- Idiocy, and this practice should be as limited as possible. If you have very little debt, there won't be a 'rush' to consolidate next time housing prices go up. Many, many people had 30-60k in credit card debt, and felt that refinancing was the 'magic pill' to help them out of trouble. That didn't end well, did it?

2) Don't EVER go by what a loan officer or real estate agent tells you that you can 'afford'. Don't go by underwriting guidelines, go by what is comfortable for YOU to pay. If you make $5000 a month, but take home $2300 and have a lot of unreported expenses- a $300 phone bill, $600 month bill for your electricity (all those hot tubbies add up!), $45 jelly of the month club bill etc, you have much less money to work with. If someone says you qualify for $1800/month, it is up to YOU to determine whether or not that is accurate and doable. No one knows your exact financial situation better than you!

3) Read your loan documents. Even if your attorney says 'everything's fine!', you still must read them. If you refinance your home, you have 3 days (and more if you close before a weekend) to review your documents with a fine-tooth comb. DO IT. If you have questions, ask. Come onto the Mortgage Discussion Boards and ask for free advice, from people who have no 'stake' in whether you close or not. If you are purchasing, ask for your loan documents in advance, or take your time at your closing. If you feel rushed, tell your attorney, agent and whoever else is there to relax. If they are not answering your questions, walk away from the table. Sellers these days are willing to work with people, so tell them you want to buy the house, but need more time. Find a new lender and a new attorney if necessary. Is this overboard? Perhaps. But I can't tell you how many people signed on the dotted line because they felt they 'had' to. What were they signing? Pre-payment penalty riders, mortgages for loans they did NOT even apply for, you name it!

4) Don't get greedy. I'd say one of the biggest reason we are in this situation is the old 'keeping up with the Joneses' phenomenon. Your neighbor buys a hot-tub, so you do. Your cousin goes to Cabo, so you do. Living within our means has never been especially easy, but if we aren't going to be taken advantage of again, and if we feel any remorse at all for where we are right now, we must get beyond this immature behavior. If you cannot afford something, don't buy it. Just because Chase or CITI or whoever sends you a credit card with a $15k limit doesn't mean you have to take it and use it.

Whether you want to blame the banks, the brokers, the real estate agents, or the consumers, one thing IS absolutely true- WITHOUT the willing consumer, there is no 'frenzy', there is no 'over-inflation', there is no 'market collapse'. So, let's avoid it next time, shall we?

Jennifer Monastero

Citizens Community Bank

The New Breed of Scam Artists

Jennifer Monastero (Polaris Funding Group) — Thu, 30 Oct 2008 11:15:25 -0500

Originally published on Mortgages Unzipped http://www.zillow.com/blog/mortgage/author/jennifermonastero/

With the current economic conditions, it’s no wonder we have seen an increase in many types of scams and ‘too good to be true’ offers. Unfortunately, we live in a world where sociopathic behavior is fairly commonplace, and even rewarded! For some strange reason, tough economic times brings out the worst in some people. Today brings a new breed of scammers to the forefront, and this is a group of people that will be growing in numbers for many weeks and months to come. I speak of “Mortgage Modification Experts”, or whatever fancy term they come up with for their unnecessary business. You know them well- just a year ago they were selling houses, selling mortgages, or selling electronics at Best Buy. Now, all of a sudden, they want to ‘give back’ and help distressed homeowners. Pardon me if I sound cynical, but I think it’s more likely they just need to make a little extra money at any cost.

Some of these people mean well, some are downright thieves. The thieves business model is simple- approach fearful homeowners with promises that their money woes can be fixed- and only THEY (the modification people) can help them! They ask for a nominal up front fee (I have seen fees ranging from $495 to $3000!) and in return promise NOTHING. (that’s right- they make no promises of success!!!) They lead the homeowner to believe that they will work diligently on their behalf to get their mortgage loan ‘modified’, and even make claims such as ‘we can help you keep your home and get you a 2% interest rate!’. The problem is, they do NOTHING, and simply take that money and RUN. The homeowner goes into foreclosure, and now they are out even more money in the process.

Consumers will see ads, hear commercials and be approached by family members who have heard of such ‘teams of professionals’. Don’t be fooled!

Here’s a list of what ANY consumer can do to modify their own mortgage, free of charge!

1) Contact the loss mitigation department or loan modification department of your current lender. You may feel uncomfortable calling them and explaining your situation- but believe me- they want to hear from you.

2) Fill out the ‘loan modification documents’ they require. Wow, that was fast.

It really is that simple. Why? Because if you fit certain criteria, the bank will work with you to help you keep your home- no “help” required. That’s what the new legislation is all about! Typically you need to have one or more of the puzzle pieces to qualify for loan modification:

1) You owe more than the house is worth

2) You have lost your job and can no longer afford the full payments

3) You have an ‘Option ARM’ from a lender like Countrywide or Washington Mutual

4) You have missed two or more payments

What a Loan Modification means for you:

1) They ‘write-down’ the balance of your loan to a percentage of the home’s CURRENT VALUE. That’s right. If you live in an area that has seen dramatic losses, the lender may forgive a portion of your loan balance.

2) A lower interest rate. This is huge- especially for people who are stuck in Adjustable rate mortages like ‘Pay-Option ARM’s’. If you are at 9%, expect a large rate decrease!

If a lender is going to modify your loan, YOU have the power to inquire about it. You do NOT need the help of any ‘team of professionals’, and anyone who tells you that you DO need them is lying. You either qualify or you don’t! No company can negotiate to “make” you qualify- but they can steal your money by telling you so. So keep that in mind.

I cannot stress this enough- do NOT give anyone money up front for loan modification services. Remember that there are always shady characters looking to take advantage of people’s fears. Do not fall victim to the latest too good to be true scheme/scam/waste of money.

If you approach your lender and they are willing to work with you, have an attorney review the documents if you don’t understand them. Be sure to check for what happens when you SELL the home, and other such contractual obligations you may have under the new terms.

The bottom line is simple- banks want you to stay in your home. They see the writing on the wall too- housing prices are continuing to fall, and a foreclosure auction will do them no good! They want your interest payments, that is all they care about. And with the new bailout, they don’t really mind ‘losing money’.

Don’t let your worries and fears hold you back- you can do this! And you don’t need the help of a fly-by-night industry to do it!
For free information, feel free to contact ANY lender on the Zillow Mortgage Discussion Boards.

Jennifer Monastero

Citizens Community Bank

Disappointed in FHA Secure

Jennifer Monastero (Polaris Funding Group) — Mon, 11 Aug 2008 19:58:32 -0500

So, with all the horror stories of people losing their homes, rates adjusting, astronomical mortgage payments, job loss etc..., the government decides to formulate a new FHA program aimed at helpig borrowers who are 'facing foreclosure'.

The short version of the program is this: Borrower has an adjustable rate mortgage. Rate adjusts. They are late on some credit card payments and some mortgage payments, but want to keep the house. The idea would be, FHA would refi the loan to a lower, fixed rate and help keep that borrower from losing the house, which is supposedly a lose-lose situation.

First round of pickiness states that the borrower can have no late payments PRIOR TO the adjustable rate hike. Meaning, no irresponsible loan hog will get a new deal. Fine. I can grasp that. You don't want to 'bail' out someone who is reckless with their spending, and not responsible with their debts.

But the second round is really bothering me. See, they won't help if the house is IN foreclosure. So, if you miss one or two payments, and your lender has not filed foreclosure paperwork yet, you're fine and can get approved. BUT, if they have, you're disqualified.

Who does this help? The people will lose the house, the banks will have another property they don't care about, and sales prices continue to plummet because no one has confidence in the lending system, and therefore won't buy at any price.

If the program is supposed to help those 'facing' foreclosure, why do they leave out the biggest group- people who are IN foreclosure?

I just don't get it. Has anyone had any experiences with this program yet? Positive experiences, I mean. So far, I've just heard of a lot of turned down applications, and a lot of disappointment.

looking for appraiser in CT

Jennifer Monastero (Polaris Funding Group) — Thu, 19 Jun 2008 17:29:02 -0500

Gay or gay-friendly...

Western CT would be key...

Easy to reach, and genuinely nice is mandatory as well...

Anyone know of such a person???????

Current Market Conditions- CT/NY

Jennifer Monastero (Polaris Funding Group) — Sat, 14 Jun 2008 21:44:41 -0500

Well the spring season is coming to a close, and I have to say I did see a lot of activity in and around my area.

Inventory is still very high- it seems that everyone is trying to sell right now, and most are not having much luck.

What is it like where you are? Are you seeing the 'bottom' of the market yet? Are we still 5-15% overvalued? Some areas are obviously hit harder than others- Las Vegas for example.

I feel optimistic, but I still wish that people who do not HAVE to sell right now would just take there homes off the market. That would be a great way to get some inventory off the table, and supply and demand could get back onto equal ground.

Rates have gone up quite a bit over the last few weeks, and that is going to be a major concern in the coming months. Why would someone buy now, when they feel they can get a better rate by sticking it out 5-6 more months??? Why would someone buy now if they don't really NEED to? Rates have to remain attractive, and while they still are (6.5%- basically where we were late summer/early fall '07), a month ago they were comfortably at 6% or below... That's a big jump, and I fear it's going to keep going!

Well, we'll all see what happens. It's definitely going to be an exciting summer. But let's hope rates come down a touch, and people get excited about owning homes again!

Good luck out there!

Christmas and Commercialism....

Jennifer Monastero (Polaris Funding Group) — Mon, 02 Jun 2008 13:35:07 -0500

Before you know it, the 'Christmas season' will be upon us again. On or about Thanksgiving of this year, all store music systems will start blaring out the Christmas music to get us in the mood for a wonderful season of "celebration". Yes indeed, nothing says 'Jesus, I love you' like running out to the store for some worthless trinket for your spouse who will let it collect dust for over a decade and then give it away to Good Will. Nothing says 'Jesus died for our sins' like taking your 3 crying children to get haircuts so that they can look 'presentable' when you bring them over to your discerning inlaws for dinner. And nothing says 'Jesus is love' more than a good old fashioned 'Merry Christmas' sign on every doorstep, mall entrance and check-out aisle.

This year will be like every other- 2+ months of 'Christians' complaining that they don't get enough attention at the shopping mall. 'They're taking God our of our daily lives- why can't people at least say 'Merry Christmas' when I am buying my grandson his new bicycle?'...

Well, quite simply, not everyone is a Christian! Why would someone ASSume that the person at the check out counter is Christian and celebrating the birth of Christ by buying a sack full of those comfy white socks for their college-bound son?

If I were a Christian, I think I would be more upset at how each and every Christian holiday has become so commercialized. No one cares about the spirit of Christmas, they care about getting a Wii. Nobody cares about kindness- they WILL run you over for that last carton of eggnog. Take Christmas out of the mall altogether! It doesn't belong there, and it certainly has lost all of it's meaning by BEING there.

More to say, but I found this comment extremely interesting:

When you were little, sorry I do not know your age, did you see Merry Christmas all over the place around December 25th? How about now? Everyone is getting so PC and worrying about offending people. I guess that is an example of culture. That was the American culture around Christmas for a VERY long time. Now not so much.

I suppose one could argue that it was also American culture to have slaves and beat them with whips if they 'done wrong'. Sometimes culture changes. Call it political correctness, call it whatever you want. But please, don't say that Christmas is, was or should be 'Culture'. It is a religious celebration- it has nothing to do with the public square, it has nothing to do with getting validation from the check out girl at 'The Sharper Image'.

Doesn't anyone have a problem with the fact that each and every holiday is all about spending money? Valentine's Day, Mother's Day, Father's Day, Easter, Fourth of July, Memorial Day, Halloween- they have all turned into excuses to buy expensive gifts and teeth-rotting candy. Why is that? Doesn't anyoe find THAT offensive??? I know I do.

Mortgage Rates Today

Jennifer Monastero (Polaris Funding Group) — Thu, 29 May 2008 17:26:38 -0500

Wow... Lots of ups and downs over the last week or two... and unfortunately, most were 'ups'. Rates have gone up about .375% from two weeks ago! Why? Well one reason is the bond yields- I know more people keep talking about Mortgage Backed Securities- I get it... But you can't argue with the fact that the bond yield on the 10 year note has gone from about 3.75 to up over 4.05 today! That's huge! Hopefully rates will back off a bit tomorrow, I did hear that the end of the day forecast for the MBS was better than the morning...

I wish that lenders would let the news of the day play out- instead, what we have is a constant shuffling, and ruffling of the rates throughout the day. We have had days where there were 3 price changes! It's enough to make anyone's head spin. Put a moratorium on knee-jerk rate reprices! Like that will ever happen :)

I just hope rates stay under 6.5% or so... Obviously, we'd all love to have rates in the low 5's again, but with cheap money, came very expensive houses and bad decisions... we don't really need that again...

So, let's hope for steady rates, and an end to this up and down roller coaster of constant repricing.

Yes, Liberals do want to control our oil! errrrr, something like that.

Jennifer Monastero (Polaris Funding Group) — Thu, 29 May 2008 12:39:23 -0500

Is that so wrong? On another thread, I asked a very simple question... actually, two if you want to get technical. I know how some of you guys love your semantic arguments.

First, I stated that in the mortgage/real estate biz, we are 'capped' on profits... I can't make more than 5% on a given loan. Boy, was I taken to task for THAT slip up. See, my misuse of the word 'profit' was too confusing for some. Call it what you want, I am CAPPED on what I can make on any given loan. Period. Very simple to understand. My question was- if I am capped, why can't we cap the oil industry as well? They affect EVERY SINGLE other industry, they affect our quality of life, they affect EVERYTHING. Why are they free to do as they please?

Secondly, people were discussing drilling in Alaska, and other places in the US and offshore. I asked a very simple question here as well- When we let the oil companies drill ALL OVER our country, are they not going to sell that oil for the going market rate, and probably to other countries??? The answer, although no one wants to admit it, is that since oil will not be regulated by our government, these private companies will have free reign to sell to the highest bidder. What good does that do us, the consumer? NO GOOD AT ALL.

I say get people signed up for our new public works project- drilling for our own oil. We will not be beholden to any foreign country. We will not be beholden to a for-profit industry that cares for one thing only- PROFIT. We will create thousands of good-paying jobs- if not hundreds of thousands! Let's get our greatest natural resource to work FOR us. Not against us. And not for the Chinese. US.

Is that so wrong???????

Communication IS Key...

Jennifer Monastero (Polaris Funding Group) — Wed, 28 May 2008 19:40:49 -0500

Like everyone, I deal with my fair share of 'Communication Breakdowns'. Conversations that should have been had, that weren't. Conversations that should be had, but with SOMEONE ELSE, that never happen. Arguments over fivolous matters occur, probably for no other reason than entertainment or to relieve stress that was built up ELSEWHERE.

What are some good keys to communicating effectively?

I know from my past experiences that if you talk TOO MUCH, you're labeled a 'squeaky wheel' and ignored. If you voice concerns no one is comfortable dealing with, you are ROCKING THE BOAT. People tend to get defensive when they hear things they don't WANT to hear.

How do YOU address situations where discussing something makes someone uncomfortable, or angry, or nervous? How do we say 'I don't like this at all' without coming off as abrasive and trying to pick a fight? How can we voice our opinions and actually be heard???

Ah, a question for the ages.

You owe me $3500... Pay up.

Jennifer Monastero (Polaris Funding Group) — Fri, 23 May 2008 13:26:09 -0500

So, again, someone is TRYING to pick a fight about whether or not 'Mortgage Accelerator' programs are worth a penny, let alone $3500. I just wish that people would get off of the 'well, they make it sound so complicated- I must NEED the software' track and take a step back and THINK about what the whole concept is based on- ADDING MONEY TO YOUR MORTGAGE PAYMENTS!

This is what I wrote in response to this particular character, and I am re-posting so this topic gets more attention.

Let's see here....

$118,000 30 year fixed at 6%= 707/month.

Let's say your sister grosses monthly income of $2000

Subtract 707 for the mortgage, plus another heap for regular living expenses- heat, water, cable etc...

That leaves a nice cozy $593 (In my calculations, phew... glad I had a calculator handy- THAT WAS HARD!!!)

NOW:

ADD that $593 to the monthly mortgage payment, and voila! Instead of paying off the mortgage in 30 years time, you pay it off in JUST 10!!!! Wow! Who knew paying off a mortgage could be so much fun!

Tell your sister to give back her software and pay a $3500 contribution to the charity of her choice instead. THAT'S money well spent.

Please, if you know ANYONE who is either being bombarded with sales calls to PURCHASE the product, or if you are a mortgage pro, real estate agent etc... that is being asked to SELL this product, come back here and read this blog again. Don't do it!

Kind of like the smoking ban....

Jennifer Monastero (Polaris Funding Group) — Thu, 22 May 2008 09:11:51 -0500

A certain person was just booted off of AR, and understandably a lot of people are upset about that. I am NO fan of censorship, and even though I thought what this person had said on several occasions was pretty foul, I did not ONCE flag the comments or blogs. I don't believe that we should necessarily be without any side of an issue- even the most crass, simplistic and vulgar viewpoints.

BUT, I am reminded of when Connecticut was pushing forward with the effort to ban smoking in bars and restaurants. Being a smoker at the time, I WAS TICKED. How can they tell us that we can't smoke and drink at the same time!!! That's my favorite thing in the whole wide world!!!!! :)

But you know what happened after the ban took place and all that nasty, worthless smoke was gone? People drank more... haha... Just kidding... we drank less- but the point is- we didn't STINK. That foul odor wasn't nesting in our hair every morning after a long night at the bar... :)

Looking back, getting rid of that putrid smoke was the best thing CT ever did. I hope the people that are upset about that certain person's exit will come to realize that he added nothing useful to the debate- and was often times overboard in his comments. He basically stunk up the place. And now he is gone, and so is the stench. Hopefully, that will turn out to be a good thing. Only time will tell.

Thank you AR for paying attention.

And to those who feel let down by AR for this, remember it was this person's own actions that caused this. Warnings, I am sure, were issued. So, don't blame the wrong people here. What is done is done, and I hope that the debate gets healthier now- and we don't drag it down anymore with outrageous behavior.

From the resident 'Pinko-commie with the homosexual Agenda'.

Jennifer Monastero (Polaris Funding Group) — Sun, 18 May 2008 16:38:34 -0500

Hey all- long time since I've posted... I really need to get something off my chest...

A TON of people on this board are going to vote for McCain, simply for the fact that he is 'pro-life' and will post some more conservative judges in the courts. Hugh, we've gone down this road before- why do you guys feel the need to LEGISLATE your own moral code?

I understand that you want to impose your moral and religious beliefs on others- good luck with that! But do you REALLY think that 'banning' abortion will put an end to it? Do we not have drug dealers? Murderers? Rapists? Those things are all illegal, yet they still exist. Doesn't that say anything to you? Are you all THAT illogical that you truly believe a mandated ban on something is going to make it disappear??? It will not happen! When will you all learn- you cannot tell another person what to do with their lives, bodies, or minds. It is NONE of your business if a woman chooses to not have a child- as much as it may anger us, or hurt us, or just plain make us crazy- it is NOT our business. To think otherwise is to put yourself on a mighty high pedestal.

No one wants abortion numbers to rise. NO ONE. Whatever you say about the 'liberal baby-killers' and whatever other derogatory or inflammatory phrase you come up with, NO ONE wants more abortions. It's safe to say that we all want LESS. But why be so naive that you think you can LEGISLATE that goal into reality??? THAT, I do not understand. If the goal is to force people to act as YOU want them to act, (not legally obtaining abortions), maybe you'll have won. But if the goal is a world in which abortion DOES NOT exist or have a place, I'm afraid you still will be failing miserably.

Get your butts in gear- get out and volunteer, write pamphlets, write books, do whatever YOU feel you should be doing to lessen the numbers of abortions. STOP voting on this issue. You are being used. They will not overturn Roe V. Wade, and even if they did- there would still be abortions! So really, what would you accomplish????? Any idea on how the fight against evil is coming along? Last time I checked, it was still lurking. Does that mean I think we should just give up the fight? Of course not. But passing laws doesn't seem to do much good these days. Maybe there is a better way.

Can someone please answer me- what will be accomplished by overturning Roe v. Wade???

I could try to ban 'immature middle-aged males' from commenting, but as you'll see in a minute, that's just as futile.

Mortgage Accelerator Scams

Jennifer Monastero (Polaris Funding Group) — Thu, 08 May 2008 09:05:21 -0500

So, these have been popping up ALL OVER. People are trying to recruit real estate agents, mortgage brokers and even Bingo Ball cleaners to sell a software program that can 'help' people pay off their mortgages in record time.

This is my take:

If someone were to take every ounce of their paycheck, after taxes and basic expenses, and put it towards their mortgage- they would pay their mortgage off FAST. In fact, I would guess that they would pay it off just as fast as they would if they used this stupid program. Think about it though- instead of having ANY leverage in your house- every penny you make will be tied up in your home's equity. Sorry, there has to be a happy medium. Why would you want to have 100% equity in your home, but no cash in the bank? What is the brilliant strategy there??? I get the 'ownership' quotient, and the value there- but again, you don't need a $3500 program to tell you how to do it. If you have the discipline to use the program, you probably have the discipline to add $800/month to your mortgage payment.

My question is simple- why would someone actually recommend this ridiculous program??? Surely there are less expensive, less vertigo-iducing ways to explain to someone HOW TO KNOCK YEARS OFF OF THEIR MORTGAGE. In fact, I show my clients how to do it for free, and with a few clicks of the mouse. Am I missing some genius formula here? Or is the cow pattie it seems to be?

How long before this scam gets called out for what it is???

If you plan on commenting, and you are a seller of this miracle product- no spam, just the facts please. Thanks in advance.

A simple way to look at the healthcare issue

Jennifer Monastero (Polaris Funding Group) — Tue, 06 May 2008 08:46:13 -0500

Two things I want to mention before I go off on a rant here. One, I do not have health insurance for another two weeks and two, I am a 'liberal'- whatever that means.

The way our system works right now, we have one large group of people pooling their money together in the event one or more people get sick. Employers 'pay' for most of the premiums, but let's be real for a minute and admit those payments are passed down to their employees in the form of lowered salary. That's why people are offered 'salary and benefit' packages- they make the salary look better by saying 'look at all this neat stuff that comes with it!!!'.

In this country, unfortunately, there is a large group of people that do not pay into this insurance pool, and yet sometimes require serious help. I would guess that because of their lack of preventive care, the uninsured in this country probably spend MORE on average than the typical insured person. Just a hunch. Guess who pays when they can't? We all do. Out of tax dollars, or in the form of higher payments at the hospital. Hey, they have to recoup those costs somehow, right? So now, the insured actually pay twice- and a TON. Who thinks that's a good thing?????

The issue is, a lot of people are scared of a nation-wide, low-cost health care system, because they think that has something to do with the 'quality of care' and we'll all die waiting for antibiotics and heart surgery because the wait for a doctor will be too long. How? Why would someone think that we'll see a dramatic spike in health care usage? When the baby-boomers start aging, we'll see a dramatic spike. Are we even prepared for THAT then? Should we start recruiting kids to go to medical school at age 4? What do we do to NOT have exorbitant wait periods? Don't just come up with the problem, come up with a solution! Making sure hospitals are properly staffed would be a great start- and we have t o do that regardless. .

Another problem is that people think health care costs will RISE. Where they get this idea from, I don't know. There is nothing more expensive than an industry driven by PROFIT. If we had a system where we pooled money together for payment of services and NOT PROFIT, I'm not sure things would get more expensive. In fact, I'd say that after everything is totalled, we'd make out much better having state run, health care 'co-ops'. Same thing as 'insurance', just more efficiently run.

The bottom line is, early detection and prevention are pretty key. Why have 43 million plus people mucking up the system when we can all pay ONE time, for each service and be done with it! No sneaky taxes added on, no sneaky loss of income from our employer, no sneaky charges at the hospital. Just patient and doctor, with a fiduciary in between- and not someone bent on making money. the pooling of resources is identical- but in my view it would be a heck of a lot cheaper in the short AND long term. Better healthcare for ALL, means better prevention and lower costs for ALL.

Am I crazy to think health care has NOTHING to do with profit, and everything to do with our quality of life?

We can do this in Connecticut- we would be the perfect place to test it out. For those of you that say 'oh, the government is going to get involved. Whoever told you the government can help is crazy. The government can't get anything right!'. Well, promise me you will never run for office. It's that kind of attitude that really sinks us. Our government is supposed to be by the people, for the people. If you don't see the power that we have, fine, but at some point something has to be done. If you honestly think corporate America is better at making decisions than our government- HIRE NEW GOVERNMENT, because they obviously have their heads up their....

Just a thought.

The Countrywide debacle

Jennifer Monastero (Polaris Funding Group) — Mon, 05 May 2008 11:11:15 -0500

So what's the latest on the Bank of America buyout of debt-addled Countrywide? Well, it seems that signs are pointing to an 'oops, we made a mistake... no deal' coming out of BofA in the next few days. Bank of America was never particularly strong in the mortgage lending arena, and this purchase would have automatically catapulted them to the top of the heap. The problem is, is it worth all the trouble that CW brings? Countrywide was HUGE in pay-option ARMS and other risky mortgages that people are all too willing these days to walk away from. I know from first-hand experience that people were misled on these programs. Any other loan officers out there remember the pitch- 'the pay option ARM is great- it's based on a twelve month AVERAGE of the MTA, so your clients can be assured that it won't move greatly in the future'. FAST FORWARD to reality, and those ARM payments were going up every single month, and by a lot. Great product guys, I would expect a class-action lawsuit any day now. And that's just one example of how they did things there- risky, risky risky... all they cared about was the bottom line, and how wealthy they could make their executives. I think Bank of America woke up and realized they don't need CW. In fact, because of BofA's very competitive purchase programs, they could get a significant increase in market share just by good, old-fashioned product innovation.

They are taking risks, but nowhere NEAR as dangerous as CW.

What's the feeling on the street? Is this marriage ending? Will BofA pull out?

I can't believe it's May already...

Jennifer Monastero (Polaris Funding Group) — Sun, 04 May 2008 19:03:33 -0500

I get it. I'm getting older, time is going by faster. But when I went to sleep last night, it was New Year's Eve... and now it's Cinco de Mayo? What is going on here? What happened? Where have I been?

The good news is- the real estate market is picking up- and it should be! Rates are still very low, there are tons of homes on the market waiting to change hands. One of the things I have been thinking about is how home sellers can move on in this market whether or not they get their homes sold. Has anyone had any experiences where it made sense for the seller to lease the home out, instead of trying to unload it? Up here, values have dropped but not DROPPED. So, for some people who have plenty of equity they can just suck up their small 'loss' and move on. Sure, they didn't make out like bandits like they would have 2 years ago, but they can still make some money. But, there are many people who owe MORE than a home is worth, and due to work relocations or job loss, they have to get rid of their homes. Why not lease the property? Worst case scenario, the rent doesn't quite pay for the outstanding mortgage. It's better than nothing though, right? I think this is a good way to go for people that NEED to move and don't have time to line up a buyer. Any thoughts? Any experiences good, bad or indifferent?

Mortgage-wise it is not feasible for EVERYONE. But it could be a good option for the time being. Just a thought.

I just hope the rates hold out for a long while. Fingers crossed.

Before you know it, it'll be Thanksgiving. I can't stand it. :)

Zillow argument

Jennifer Monastero (Polaris Funding Group) — Sat, 26 Apr 2008 09:02:49 -0500

I've been on Zillow Mortgage Marketplace since the day it went live (I think, must have been damn close).For the most part, I really can't complain about the system. I've gotten a few good leads, a definite closing, and hopefully a few more clients. I've also been active on the discussion boards, which is pretty fantastic too. I've met some really cool people, some of which may also be on AR- so I should probably check that out!

I got into a little back and forth yesterday with a couple of people, and I'm really not too sure why. This was the deal.

A seller had gotten an offer on the table for her home. It was an FHA loan, with both down payment assistance AND a 3% seller concession. My comments were basically asking 'hey, SHOULD people that have no savings and no money for the inevitable crap that happens when you buy a home REALLY be getting a mortgage these days? Isn't that why we are in the mess we are in?'

A lot of the comments I got back to that were saying that I am too protective of my clients, and that if they QUALIFY, they should do it. It isn't the loan officers job to dictate what they can and can't afford... etc...

Isn't it our job to make sure they have a strong financial plan for the days after closing? I asked innocently. And what I got was snide remarks asking if I negotiate their insurance rates too.

I was kind of surprised at certain people's reactions.

Am I wrong in thinking that as mortgage professionals it's not only our job to get them into a loan, but to also remind them of what can happen and make sure they are prepared and comfortable with the total monthly payments- including gas and heat and food!!!

Am I completely out of line when I say that if we had all done this over the last 5 years, we wouldn't be in themess we are now? 106% financing and no reserves! 125% financing, no asset check! No down payment? No problem, ask the seller for it and we'll raise your loan amount!

Don't get me wrong, I like FHA, I like helping people buy homes. But if they have no money in the bank for closing costs or their down payment, shouldn't their debt-to-income ratios be a bit lower than the regular guidelines? Maybe make it so that if you use BOTH of those options, and will have no nest egg, your ratios must drop by 7% or something like that. It's to safeguard the lenders AND the borrowers! Since when did we only have an obligation to get the deal done?

BTW- one of my FHA clients was at the top of their ratios, and uncomfortable with the payments EVEN THOUGH THEY WERE APPROVED. Instead of pushing them into the bigger loan, I advised them to keep their eyes open for a cheaper house. They found one. I'm sticking to my guns here, but that's just the way I do business.

The Fair Tax

Jennifer Monastero (Polaris Funding Group) — Sat, 12 Apr 2008 15:20:11 -0500

Happy April, hope everyone got their taxes done already.

Wouldn't it be nice if the IRS didn't exist though?

Wouldn't it be nice if a salary of $60,000 actually meant TAKE HOME PAY?

When it comes to the fair tax, there are some drawbacks. But to my mind, having a fully transparent and no-loop hole system would actually mean a more efficient and user-friendly tax system.

Like everything, people like to pretend it's a left/right, conservative/liberal issue. Let's get that out of the way, and say it's more of a common sense issue if anything. I consider myself a liberal, but when it comes to taxation and how money gets spent, I like to think I'm fairly open-minded about people's complaints, and also very interested in alternative tax systems.

If conservative absolutists had it their way, we wouldn't pay any taxes and we would have an 'every man for himself' situation. Not to mention- who would pay for the wars???

My problem with the 'no tax' people is simple- we NEED certain things. Roads, schools, heck even prisons... Someone DOES have to pay for that. But why not have a very small tax at the federal level, and larger taxation in local communities? Wouldn't it make more sense for New York to KEEP more money instead of sending it to the federal government? Wouldn't it make more sense if STATES had more say in where their money was spent?

Just think about this- when people go to H+R Block to get their taxes done, the tax preparer is making sure that their client is getting every possible penny back. That person at H+R Block costs money. SO, a guy right down the street may be eligible for all those same deductions- yet not know it because he doesn't feel like spending 150 bucks to find out. In other words, one person gets their rightful amount back (argue about THAT one hehehe), and the other guy doesn't. How is that fair? How is that transparent? It's not. The current system is confusing and ridiculous.

How much does it cost to run the IRS anyway? Anyone know?

Now I'll get back to watching Red Sox/Yankees game 2!

What is the point of low-balling rates on Zillow?

Jennifer Monastero (Polaris Funding Group) — Fri, 11 Apr 2008 13:50:25 -0500

I'm on the Zillow site, trying my best to scare up some business. For the life of me, I can't figure out why people low-ball and flat-out lie about their rates.

Do they think the customer won't realize they've been lied to?

Do they get paid for the number of phone calls they take and not loans they close?

Do they think that working for free is something everyone should do?

So many low-ball quotes on there, and it seems that until people actually start using the service and leaving feedback, there is no recourse against these guys. I just can't figure out the point. If you want to work for free, you should instead volunteer at a retirement home and do some good with your time. If you are LYING just to get a phone call, get a life and go get your JD. :)

Any sociologists out there want to take a guess as to why a person would shoot themselves in the foot, repeatedly?

Just curious.

Yankees v. Red Sox Game 1

Jennifer Monastero (Polaris Funding Group) — Fri, 11 Apr 2008 13:42:15 -0500

Being a Sox fan, I have to admit I'm a little nervous about tonight's game. Clay Buckholz starting the series? It'll either be an awesome, dominating win- or his nerves will get the better of him, and he'll be out of there in two innings.

Well, it should be an exciting weekend for baseball fans. I will watching every second of the game, hopefully enjoying it!

Go Sox!

Reposted: Reverse Mortgages

Jennifer Monastero (Polaris Funding Group) — Wed, 09 Apr 2008 13:25:27 -0500

Avoid all the consumer-ish stuff, I basically want to know if I am on the right page, or missing something. :)

I'm not going to go all Robert Wagner on you all and push reverse mortgages, I just wanted to mention a few thoughts on when I would recommend such a product.

If someone is over 62, and facing foreclosure, a reverse mortgage is practically a godsend. In these times where lending guidelines are so strict, even low loan-to-value deals have no home if you have mortgage lates on your credit. Add to the situation a job loss, or some other negative circumstance and you are SOL in most cases. BUT, a reverse mortgage doesn't take those credit issues into account- after all, they don't count on you to pay any mortgage payments, they 'pay' you.

This is the ONLY time I would actually recommend a reverse mortgage- they are just so costly to the homeowner and their family.

For some people with plenty of equity and good credit, taking out a mortgage to place in a trust or a special bank account for living expenses would be just as good, if not better, than the 'government-insured' reverse mortgage set-up.

Here's a quck overview on the HUD website about reverse mortgages:

http://www.hud.gov/offices/hsg/sfh/hecm/rmtopten.cfm

Has anyone dealt with situations where a reverse mortgage has been the right thing to do, other than when someone is facing foreclosure? Perhaps I'm overlooking a value of the program, educate me! :)

Obviously, if someone cannot qualify for conventional financing, this product should be on the table- but under what other circumstances should I recommend it?

Reverse Mortgages

Jennifer Monastero (Polaris Funding Group) — Wed, 09 Apr 2008 09:19:05 -0500

I'm not going to go all Robert Wagner on you all and push reverse mortgages, I just wanted to mention a few thoughts on when I would recommend such a product.

This is the ONLY time I would actually recommend a reverse mortgage- they are just so costly to the homeowner and their family.

Here's a quck overview on the HUD website about reverse mortgages:

http://www.hud.gov/offices/hsg/sfh/hecm/rmtopten.cfm

Has anyone dealt with situations where a reverse mortgage has been the right thing to do, other than when someone is facing foreclosure? Perhaps I'm overlooking a value of the program, educate me! :)

Obviously, if someone cannot qualify for conventional financing, this product should be on the table- but under what other circumstances should I recommend it?

WAMU gets rid of it's wholesale lending...

Jennifer Monastero (Polaris Funding Group) — Tue, 08 Apr 2008 13:21:44 -0500

How bad does this affect mortgage brokers? WAMU had tons of correspondent lenders as well. All gone as of the 10th. Wow.

Soon, there will be no more wholesale/correspondent lending. Banks will hold on to whatever they can- and that means NO MORE MORTGAGE BROKERS.

Who's next?

Attention liberals and like-minded free-thinkers:

Jennifer Monastero (Polaris Funding Group) — Mon, 07 Apr 2008 21:57:38 -0500

We are under attack and have been for quite some time. Liberal has become a dirty word in this country, and this partisan craziness has to end if we are going to move forward! We are made out to be bad people who don't care about our country, but I believe just the opposite. Like that kick-ass Faith No More song, WE CARE A LOT!

I'm going to start off with a few beliefs- my core values if you will.

I believe that we are only as strong as our weakest link. We need to make sure each person has what they need to accomplish their goals- however small or large.

I think that education is THE most important thing. If we spent the time and energy on schooling that we spend on blowing stuff up, we'd have a much more productive, creative country. To me, that's a good thing.

Welfare is really a necessary evil. Because we are not communists, not everyone can have a job. Some people don't have the mental capacity to work either. Unfortunately, that doesn't mean they can't procreate. When they do have children, we cannot turn our backs on them. That would be the worst thing to do.

I think that CEO's should have some ethics. Is that too much to ask? When will the madness end of 'anything goes' on Wall Street? When will our corporate heads have a stake in what goes on in this country, not just what goes on with their stock price?

War is the worst thing man ever invented. Women should be in charge next time. We'll just poison each other. There won't be these long, drawn out fights with ridiculous weapons and one-size-fits-all body bags.

There's more. You guys continue. I just hope that we can actually clear our good names. Liberals aren't bad people, we just have opinions that some don't want to hear.

Reading a GFE takes some common sense.

Jennifer Monastero (Polaris Funding Group) — Mon, 07 Apr 2008 10:44:50 -0500

I had a client who was relocating from Georgia up to Connecticut and needed a 95% LTV loan. He was adamant about doing an 80/15, and I said 'perfect, I wouldn't recommend going any other way'. He had the credit for it. Everything was peachy. At the time, I was using Principal (before they sold CITI- blegh!) and their high CLTV stuff was awesome. (I just got teary-eyed thinking of the good old days.) Everything seemed to be going fine...

But then something happened. He had shopped around like a good consumer, and decided my GFE was too high. There was a gap of about $300 between me and the next guy's GFE. Ok. I said let's go through the numbers. Depending on the time of month you close, you could pay more or less at closing. This is an estimate, and I'm not going to lie to you to get you to use me.' See, we use 15 days interest on our GFE's, some guys only used 5 or so. There's the $300+. It's not like I was charging him points, or ridiculous fees- it was literally that small of a difference.

Dan, we'll name him to protect his identity, ended up going with another company, a company that promised him all I had and MORE- they 'saved' him a whopping $300.

Dan calls me FRANTIC on the day of his closing. 'I need help, they said they aren't licensed to do second mortgages and they just did the one loan. I signed the paperwork, they said they'll refi me in a few months. What should I do?' Let's just say I had no sympathy and leave it at that.

THIS IS A TRUE STORY. I AM NOT MAKING THIS UP, AND IF I HAD THE NAME OF THE COMPANY, I WOULD POST IT KNOWING THAT THEY PROBABLY ARE NO LONGER IN BUSINESS.

Lesson #1: If a client bickers about $300, drop them like a bad habit. It will only end badly.

Lesson #2: If a company says they can do second mortgages, and then admits they can't AT THE CLOSING- sue their asses and file a complaint with the Banking Department.

Lesson #3: Honesty is sometimes lost on fools. I have lost more business than I care to admit by being honest. Why does honesty scare so many people?

Lesson #4: Don't get wrapped up in the 'bottom line' on a GFE. Numbers change. Any buyer out there should educate themselves about this fact- the only things they should care about are the actual lender fees- everything else is variable. Add up the app fees, the processing fees- all that stuff. Use that to negotiate- not things that MOVE from day to day- like interest or even attorney fees.