The real estate market is a tougher place today. Underwriting guidelines are changing almost daily, rates are a roller coaster at times, and some buyers have listened to the doom and gloom of the media afraid to do anything in the real estate market. When I received a call from what seemed to be a very well qualified buyer interested in purchasing a couple of homes to rent out and to rehab, I was more than happy to help.
The referral came from a Realtor partner. I spoke to Mr. Smith (name changed to protect the guilty) about the first property, he wanted to make an offer. I gathered all of the information, which turned out to be his wifes information. According to Mr. Smith, his wife is a doctor for a well established clinic in an upscale area and just did not have the time to provide me with a phone call. I explained to Mr. Smith that I would prefer to speak with Mrs. Smith and in order to provide a "pre-approval" I would need supporting documentation. I do understand that at times one spouse may have more time than the other, but when speaking with one and the loan will be only under the other spouse I am uncomfortable with that.
I was referred to Mr. and Mrs. Smith's on staff full time accountant for all documentation necessary to provide a pre approval. I found this to be awkward and as difficult as getting a 2 year old to understand why they cant eat candy all day. It took almost 2 weeks to get just about everything I needed (2006/ 2007 W2's, 2 months bank statements, and other asset documentation) except the pay stubs. I spoke with the accountant on several occasions, but the last conversation with him concerned me. I asked about the copies of recent pay stubs and was asked if a copy of the check she received would be sufficient. I explained that I would need the stub as this would provide me with all the detailed information as well as year to date income, which would be necessary for underwriting at a later date anyway. Mr. Accountant informed me that Mrs. Smith is no longer a W2 employee, she is 1099. Now as a 1099 employee, she is self employed. Underwriting guidelines require 2 years self employment. Unless automated approval only requires a YTD profit and loss or 1 year current 1040's, which she would not have. After explaining this to Mr. Accountant within a day I received a call from the very busy Mrs. Smith.
Mrs. Smith wanted to check status on her pre-approval as well as tell me that they had put in an offer on another property and needed to close next week. I explained the issues with needing her pay stubs and that as her accountant told me she is now self employed. She was shocked, she does not know why her account said that, she was very sure she is still a W2 employee. I accepted that and asked that she provide me with her current pay stubs so that I could move forward with her pre approval process.
A couple of days later I received fax with 2 most recent pay stubs for Mrs. Smith. The pay stubs were created from quick books. One had a pay period date of 10/1/08 - 10/15/08, the other had a pay date of 10/16/08 - 10/18/08. The check stub was very vague, not your usual looking pay stub. Missing was some of the usual suspects, Medicare Tax and State Tax. I explained to Mrs. Smith that it looked like some of the deductions were missing from the pay stub. She was unsure why it was showing up this way, but she would see what she could do to correct this.
At this point the red flags were getting bigger and bigger. I did receive new pay stubs, with all the deductions now on the pay stubs but the dates were still unusual. I received several calls from Mr. Smith wanting to move forward. I informed my Realtor partner that I did not feel comfortable providing this information to my underwriter or providing a pre-approval for this borrower. My lively hood is and has been for almost 12 years now working with people to purchase and refinance homes. I love my work and can not and will not risk my license for something that just doesn't smell right.
Maybe I am being silly, maybe over reacting? My woman's intuition is telling me different. I have not knowingly been a part of mortgage fraud and even though as a loan officer my name is mud because of the others that have, I will continue to do what is right for me. So with all those red flags, I turned away a client.
Kim Murphy
1st Advantage Mortgage a Draper and Kramer Company
Providing Loans in Illinois for DuPage, Kane, Lake, Will and Cook Counties
Despite what the media is saying mortgage lending has NOT come to a complete hault. There are still great loan programs available, some of which do not require a 20% down payment or equity position, and some which still allow credit scores well under 720.
-FHA Cash out refinance to 95%. Equity line closed or frozen, still need cash for home improvements or college tuition. Want to consolidate high interest car loans and credit cards, and take advantage of tax deductible interest? As long as you have owned your home for at least 12 months you may be able to do an FHA cash out refinance up to 95% of your homes current value. Credit scores accepted as low as 580.
-FHA purchase loans to 97% FHA purchase mortgages still only require a 3.5% down payment! And, the down payment $$$ can come as a gift to the borrower from a family member or can be borrowed from most approved retirement accounts. Again, credit scores as low as 580 generally get approved, but the last 12 months must be clean. Sellers can pay up to 3% for closing costs, so today's homebuyer can take advantage of the great opportunities in the marketplace for as little as 3.0% out of pocket. With FHA rates still low, it's an outstanding time to buy!
VA loans with no money down. In the industry, we have talked a lot lately about things "going back to the way they used to be" Most qualified military veterans can still get a loan up to $417,000 with no money needed for a down payment. This is an outstanding benefit for the thousands of military heroes in the country today. In fact, this is one of the very few $0 money down loan still available in today's marketplace, as it should be; a special benefit to Veteran's of military service.
-Home Equity Line of Credit (HELOC) to 95%. We do still have a HELOC program that will allow you to borrow up to 95% of the current value of your home, less the outstanding 1stmortgage balance. HELOC's are generally tied to the Prime lending rate which is very low today at 5%!
Guidelines have certainly changed a lot in the mortgage industry the last 1-2years and are still changing by the day. Many programs are gone or down payments and credit requirements have gotten much more restrictive. But, there are still great loans available to help in reaching your financial goals and objectives.
Kim Murphy, 1st Advantage Mortgage, A Draper and Kramer Company
Loans for DuPage, Kane, Cook, Will and Lake Counties
Today is a sad day for Carol Stream residents and students and staff of Bartlett High School.
An announcement was made at school today that Lenny (Leonard) Gulczynski was killed in the line of duty in Iraq. Lenny is a 2007 Graduate of Bartlett High School and joined the Army at 17. He followed in the footsteps of his father and others in his family fighting for our Country.
Bartlett High School will have their flag at half-mast in honor of this fallen soldier Friday September 19, 2007. They will also have a photo and wreath at the flagpole for any community members who would like to pay their respects, or leave memorials in honor of Lenny and his bravery.
I did not know Lenny well however, I remember when he played football with my son. Thank you Lenny for your service and fighting for our Country and our Freedom!
Added 9/19/09
Thank you to everyone who has read this post and offered their condolences and prayers for Lenny and his family. I have not heard any details of a service yet. I will post when I learn more. I am looking for anyone from the Patriot Guards and will also recruit Rescue Riders to ride with Lenny in honor of his service. Please contact me to arrange the details.
Dean Akey of Akey Financial Services is an Insurance Agent in St. Charles Illinois. He provides insurance for Illinois, Wisconsin, Indiana, Iowa and Missouri. I met Dean through my husband when he joined Dean in his quest to help other bikers with Rescue Riders. We did a ride for a charity a month or so ago and I finally had the pleasure to meet Dean. As you can tell by his picture, he is not your typical looking Insurance Agent. But then again, Don't judge a book by its cover, as I explained last year.
I was first impressed by Deans size. He's a very tall man, my guess about 6 foot 6', bald and tattooed. I also discovered his passion for Rescue Riders a non for profit group he started. Dean has also raised 1,000's of dollars to help many charities. In 2008 Dean won a prestigious Award. He was awarded the Ray Lynch Award for exceptional customer service.
Dean has hit the ground running on AR with 2 blogs. His first gives you an in site on insurance, with a informative and sensible approach in You are doing it all wrong. Then he topped it with One of these things is not like the other, providing information on how to lower your current tax bill.
Please take a look at Dean's first 2 blogs and welcome him as I believe he will be a great asset to the Rain.
In June last year I posted about protecting your credit. In light of my recent issue where an Employee at Countrywide sold my informationI will be taking my own advice. When your information has been compromised it is important to be pro active. During times when people become more desperate they stoop to desperate measures. Unfortunately fraud and identity theft is a major problem and continues to grow.
Protecting yourself when falling victim to identity theft
Place a freeze on your credit with all 3 credit bureaus. To place a freeze on your credit the credit bureaus will ask for a copy of your police report must be provided to show that you are a victim of identity theft. When a freeze is placed on your credit, none of your credit information can be shared with potential creditors. You can place a freeze on your credit to also avoid identity theft, however you will have to remove the freeze to apply for credit. Placing a freeze on your credit will cost $10.00 with each credit bureau, unless you have been a victim of identity theft or over the age of 65.
The 3 major credit bureaus are:
Trans Union
To order your report call 800-916-8800 or go to the website
To report fraud call 800-680-7289
To request a security freeze:
Trans Union Security Freeze
PO Box 6790
Fullerton CA 92834
Experian
To order your report call 888-397-3742 or go to the website
To report fraud call 888-397-3742
To request a security freeze:
Experian Security Freeze
PO Box 9554
Allen TX 75013
Equifax
To order your credit report call 800-685-1111 or go to the website
To report fraud call 800-525-6285
To request a security freeze:
Equifax Security Freeze
PO Box 105788
Atlanta GA 30348
To place a security freeze each credit bureau will require a letter sent by certified mail. If you are a victim of identity theft you will have to include a copy of the police report, your full name, (including middle initial as well as Jr., Sr., II, III etc.) address, Social Security number and date of birth. You should also include information stating your addresses for the past 5 years, proof of current address, such as utility bill or phone bill, and a photocopy of a government issued identification card. (Drivers license, State ID card, or Military ID, etc.) If you are not a victim of identity theft and under the age of 65, you will also need to include a check or money order payable to the credit bureau for $10.00.
After 5 business days from receiving your letter, the credit reporting agencies will place a freeze on your credit. Ten business days from receiving your letter to place a freeze on your credit, the credit agency will send you a confirmation letter containing a PIN or password.
You can open new credit accounts if you temporarily lift the freeze on your credit. To do this you will have to contact the credit agencies, provide proper identification, your PIN or password provided by them and inform the credit agency of the period of time your credit report will be accessible. Or you may give the credit reporting agency the name of the company you want the freeze lifted for. If you are not a victim of identity theft or are under the age of 65 each time you temporarily lift the freeze the cost for each bureau is $10.00. The credit bureaus must lift the freeze no later than 3 business days from receiving your request. You can order your own credit report through each bureau while your credit report is frozen, but anyone else will receive a message or code stating that the file is frozen.
Playing in the rain as a child was always fun. Running and jumping in the puddles. Finding worms everywhere and bringing them home to mom. As an adult the rain has new meaning. The rain can be powerful, destructive, beautiful, refreshing and cool. After a rain you see the grass get greener, the flowers perk up, a rainbow from time to time.
I have been blogging on ActiveRain since May 2007 but paused in November 2007. I was active and addicted in the beginning, made many friends and new contacts. I received many who found me because of playing in the rain. I have closed many loans because of my playing in the rain.
As the Holidays were near and life tends to take over my last blog was November 19, 2007. But during my short time of giving my opinions, my experiences and providing information to the world wide web through Activerain, I became a staple on the first page of google and yahoo when searing for a DuPage Mortgage Lender or other similar versions.
I am #2, 3, 5 and 7 on page 1 of google!
I have recently posted 2 blogs in August but if you notice the older blogs are still showing. Google seems to like me better as I am on the first page several times, but the #1 on Yahoo.
My point being that playing in the rain is still just as much fun as it was as a kid, but realizing the power of it is tremendous. I just closed a loan on Monday from someone who found me on the Internet from blogs that were between May 2007 and November 2007. That is powerful stuff!
I am not suggesting that you should take time away because you will be on page one anyway because someone else could decide they want to play too and take your place.
I have built my business on referrals. I have made a name for myself in the mortgage industry as someone you can trust, a mortgage lender that will answer your calls and give you honest information and advice. I find blogging another way to get the information out there so that more consumers are educated. I am not an expert in any one thing when it comes to mortgages. I know mortgage very well and I know how what I am doing. I say I am not an expert only because every situation is different and programs seem to change almost daily as of late. But I know that no matter the situation I am the perfect lender to help!
So keep playing in the rain and blogging to educate and inspire!
Yesterday afternoon in the mail was a letter addressed to my husband from Countrywide. The envelope stamped important information about your account. I typically just shred this because its advertisement to refinance or take a home equity loan. But I opened it this time and the letter reads:
"We are writing to inform you that we recently became aware that a Countrywide employee (now former) may have sold unauthorized personal information about you to a third party. Based on a joint investigation conducted by Countrywide and law enforcement authorities, it was determined that the customer information involved in this incident included your name, address, Social Security number, mortgage loan number, and various other loan and application information."
The letter goes on to talk about the necessary precautions that should be taken and the termination of this individual to access customer information. (I would hope so)
An offer of 2 years credit monitoring has been offered free of charge to my husband! Hold the phone, I'm on that loan too.
At the bottom of this letter is a hot line. I called the hot line number and John answers asking me my name and reference number. I tell John that I would like to discuss the fact that I am a co-borrower on this mortgage loan information that has been sold to a third party.
John takes a moment and says let me read you the script I have been given. He reads the script to me that basically says as a co-borrower on the account my information has not been compromised and therefore I have nothing to worry about. I explain to John that as a co-borrower on the account my information is included on the account. Just as if I was to default on this loan or miss a payment, they would not ignore the fact that I am on this loan and only go after my husband.
After asking to speak with a manger as I was put on hold and assured many times by John that my information is safe. A manager never made it to the phone as they were very busy with other individuals calling, probably about the same thing I called about.
Knowing that your information has been compromised is frustrating. Talking to the Company that hired an employee that compromised your information and having them read from a script as a blanket statement is even more frustrating.
Countrywide, if you are going to take responsibility for this as you should, you should also take responsibility for all parties involved not just the primary on the account.
I know this subject has been covered before however I find it necessary to repeat. I find many buyers and sellers going it alone. You don't have to do it by yourself, you shouldn't fumble in the dark feeling your way through it all. The process of buying or selling a home is not as easy as we may make it look sometimes.
For sellers: Listing your home with a Realtor is a huge advantage! When you list with a professional you will have someone on your side. They will show you an accurate value of your home and list it accordingly, a professional to guide you in negotiating the contract, marketing your home, notifying other Realtors in the area about your home, holding an open house, and working with you to get it sold at a fair and accurate price. When you stick a sign in your yard and pick out a price to sell your house, do you know what the other homes in the area have sold for? Do you know if you are selling yourself short or setting yourself up for a long time waiting by listing too high?
For buyers: Did you know that working with a Realtor is not an expense to you? Working with a professional to show you homes in the area and price range you want is what they do best. When you just pick out homes on the Internet, do you know if they are listed for a fair price? How do you know if you are getting a good deal? Are you sure the area you are looking for has the best schools as you thought? Are there any special assessments that you may not know about ahead of time, will the taxes in that area be affordable?
The above just lists a few things professional Realtors do for buyers and sellers. Behind the scenes many more tasks are completed for you to have the best experience in purchasing or selling a home.
When a Realtor offers you names and phone numbers to an attorney, home inspector, mortgage lender or an insurance agent they are giving you professionals they have worked with in the past. In today's market this is more important than ever! With the real estate market changing almost daily, you want to make sure you are working with professionals that will work with you to obtain your ultimate goal of buying or selling.
The misconception of referrals is that the person referring you to another professional is that they will receive some type of commission. This is NOT true and not allowed! The reason for the referral is to work with another professional and know that the job will be done properly for YOU!
Check with friends or family to see who they are worked with, read the blogs on the Internet and get to know a professional. You will be happy you decided to not go it alone!
The last time I blogged was November 2007. I can't believe I have been out of the rain that long. I've missed it!
Many changes have happened in the mortgage industry since November. Stated loans were still around and so were about 40 other big lenders. I feel like I'm talking about way back in the day and in reality major changes have happened in the last 9 months. I think I love the mortgage industry just as much today as the day I started 11 years ago. 1st time Home Buyers are still my passion. Dispelling the rumors of the impossibilities of buying a home, and showing them it is possible, and still with little money down - and tax credit to boot. The rates are still GREAT and it is a great time to buy a HOME!
I started lurking in the rain again a week or so ago and noticed many changes too. Re-blogging? New Localism! Posting to an outside blog. WOW AR! Impressive. Almost 105,000 members, I think in November the number was around 70,000. I have a lot of catching up to do!
I think I know what happened...Thanksgiving, Christmas, Vacation, Spring break, Graduation,Graduation parties, Summer vacation, and then the kids are out for the summer. Keeping up with life and changes in the mortgage industry seem to have taken away from my blogging.
I see many familiar faces and look forward to learning all the new things. I really missed playing in the rain!
Growing up I was always considered more the tom boy then the girly girl. That changed for a while when I was in high school. Prior to high school, I would watch my dad work on his cars, motorcycles and fix things in the house. I was intrigued! I played football in the front yard with the boys next door, played kick the can across the street with the neighborhood kids and arm wrestled the boys, and sometimes won! During high school I became more of the girly girl. I had to if I wanted a boyfriend, I couldn't just beat them all up to make them go out with me. But then when I got older I mixed the two. I changed the oil, did the tune ups and rotated the tires on my own cars. I ride a Harley and look like a professional woman daily for work.
Working in a mostly male dominated field, it was important to me to establish myself in the "boys club" as I like to refer to it. I was the first woman in our office to make it to this "boys club". This will be my 5th year in the "boys club". The boys club consists of those that make it to the Presidents club. Each year the stakes are raised and the reward is a company trip determined by management.
As this year has been slower than those in the past few years, it was time for me to create new contacts and rekindle old ones. I have been keeping in touch with my database better, sending out newsletters, making more phone calls and networking!
DPWN (DuPage Professional Woman's Networking) is for Girls Only! Lets face it woman network differently than men. Women helping Women. DPWN was formed in 2003 and meets twice a month over lunch. DPWN was created to meet the needs of professional working mothers. Many professional working mothers are unable to commit to early morning meetings. The meetings are from 11:30am until 1:00pm, allowing enough time for building new business relationships, sharing networking opportunities, marketing ideas and generating new business through referrals. The excitement for a womens networking group has been so well received, 5 new chapters have been formed this year alone. I enjoy networking with other women in business. The Chicago Suburban News ran an article on DPWN ~~ click here to read the full story.
Girls get out there and take a stand! Let them know who you are and what you can do!
Kim Murphy
First Advantage Mortgage
"I make dreams come true without Murphy's Law"
Illinois Mortgage Lender | Serving DuPage, Kane, Lake and Cook Counties
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
According to Mr. Smith, his wife is a doctor for a well established clinic in an upscale area and just did not have the time to provide me with a phone call. I explained to Mr. Smith that I would prefer to speak with Mrs. Smith and in order to provide a "pre-approval" I would need supporting documentation. I do understand that at times one spouse may have more time than the other, but when speaking with one and the loan will be only under the other spouse I am uncomfortable with that. 
Now as a 1099 employee, she is self employed. Underwriting guidelines require 2 years self employment. Unless automated approval only requires a YTD profit and loss or 1 year current 1040's, which she would not have. After explaining this to Mr. Accountant within a day I received a call from the very busy Mrs. Smith.
One had a pay period date of 10/1/08 - 10/15/08, the other had a pay date of 10/16/08 - 10/18/08. The check stub was very vague, not your usual looking pay stub. Missing was some of the usual suspects, Medicare Tax and State Tax. I explained to Mrs. Smith that it looked like some of the deductions were missing from the pay stub. She was unsure why it was showing up this way, but she would see what she could do to correct this.
and even though as a loan officer my name is mud because of the others that have, I will continue to do what is right for me. So with all those red flags, I turned away a client.
Posted by 
There are still great loan programs available, some of which do not require a 20% down payment or equity position, and some which still allow credit scores well under 720. 
he is not your typical looking Insurance Agent. But then again, 
During high school I became more of the girly girl. I had to if I wanted a boyfriend, I couldn't just beat them all up to make them go out with me. But then when I got older I mixed the two. I changed the oil, did the tune ups and rotated the tires on my own cars. I ride a Harley and look like a professional woman daily for work. 
created to meet the needs of professional working mothers. Many professional working mothers are unable to commit to early morning meetings. The meetings are from 11:30am until 1:00pm, allowing enough time for building new business relationships, sharing networking opportunities, marketing ideas and generating new business through referrals. The excitement for a womens networking group has been so well received, 5 new chapters have been formed this year alone. I enjoy networking with other women in business. The Chicago Suburban News ran an article on DPWN ~~ 
;)
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