Lewis's Blog

Don't do it.... never take the points off the board!

Lewis Poretz - Open Mortgage - Mortgage Banker — Thu, 04 Dec 2008 08:27:48 -0600

The media has done it once again. Trust me on this one. This past week has seen a surge of mortgage refinance applications as rates have dipped. This will help the beleaguered mortgage industry, the banks, the title companies, the appraisers and everyone else connected with the real estate market that has been functioning on life support for quite a while now. But there is trouble brewing. Trust me. I have received a few calls already from clients I have locked an interest rate in over the past few days saying they want to bail on the deal.

You see, they read in the paper or saw on TV that the Fed is going to make rates go to 4.5% and the world will become a better place. This could potentially be destructive. When a loan originator locks a loan with an investor, for ease of explanation, it becomes somewhat of a "forward commitment" where investors hedge their money on the future market. When rate lock fallout becomes large bad things happen. Investors judge mortgage shops on rate fallout and are actually terminating shops who exceed a certain percentage.

If you delve into exactly what the Treasury Department is attempting to do, you will notice the low rate target is aimed at the Purchase money market. It is also aimed at reviving the big banks. There is no certainty this would even be available for refinances as of yet. Besides, when or if this will ever take place is an uncertainty as well, especially with the new guns coming to Washington to take over in about a month.

Don't take the points off the board! Ever watch a football game where the team kicks a field successfully but there is a penalty and they choose to take the points off the board and try and score a touchdown. Do not fall into that trap. If you have locked into the low rates that are available this very second and are second guessing whether to bail and wait, you better think long and hard. If you have a deal in hand that makes sense, do you want to take the points off the board and risk losing the football?

FEAR of FINANCING: The Disease That is Costing The Real Estate Industry

Lewis Poretz - Open Mortgage - Mortgage Banker — Tue, 11 Nov 2008 18:23:46 -0600

Excellent post preaching the word we are all trying to spread from

Active Rain legend Janet Guilbault

let's continue to keep spreading the work.

BANKS ARE LENDING MONEY!!!! get off your butt and starting buying and refinancing before it is really too late! Stop listening to the media hype!

Via Janet Guilbault, California Mortgage Expert :

There is a new disease out there: Fear of Financing (FOF). FOF is a psychological disease that prevents people from buying houses. While we have yet to discover a cure, you as a Realtor can sell more houses if you understand it, and help potential buyers overcome it.

Buyers have already heard that same tired old real estate mantra: "Prices are low. Rates are historically low. This is a great time to buy". They believe that, too. So what's holding them back?

Their secret fear that they won't have the ability to finance the American Dream.

And they probably won't talk to you about this, either. Fears show weakness. Fears are embarrassing.

Sometimes it is easier just not to get in the elevator if you are afraid of elevators. Enduring those few minutes of fear inside the elevator, and getting to the top floor? Just not worth it.

So they just keep walking, and never get to the 10th floor.

Maybe you are losing buyers because they just keep driving (right past that house they love, overcome with an attack of FOF).

Frankly, Fear of Financing is easy for your buyers to justify. It does take more to qualify than it did before. But FOF has reached a frenzy that is out of control and a bit irrational. It is hurting business.

People approach me all the time with this statement: "I hear you can't get a loan on a house anymore......." The statement sort of trails off because they don't want to finish it by saying this: "unless I intend to brave rejection and the possibility I may not qualify".

The media likes to promote FOF...have you noticed?

Let's face it, the fear of rejection looms large in all of our minds. It is why it is hard to interview for a job. To make your sales calls. To try out for cheerleader or the lead in the play.

Rejection stings.

So how do we get buyers to that warm and fuzzy place where they believe the RISK is worth the REWARD?

The Antidote for Fear of Financing

How about selling houses by attaching financing options and quidelines to each listing that you have? Lenn Harley said it best when she commented on Leander McClain's featured post, describing her best marketing strategy for 2008:

Shifting from advertising our services to buyer to offering financing opportunities for prospective buyers has made the difference.

Okay, I will pause here and remind you of something I have written about many times: Financing sells. Look at the car business. When they want to move cars they do this by selling financing, not the car. Does it work? Yes indeedy.

I love looking at flyers Realtors put in those little boxes on your signs. I bet prospective buyers do too. But only one in a hundred I look at has payment options, rates, or a call to action if the client would like to get pre-qualified. Why is that?

If you don't HAVE a mortgage partner to help you with this, you need one.

I know from personal experience that some people will call the mortgage person on the flyer BEFORE they will call the REALTOR on the flyer. Wouldn't you rather capture that lead by having them call YOUR mortgage partner?

Okay, still on the topic of signage: Why is it that I almost never see one of those little signs that hang below the big signs say something like this: GREAT FINANCING AVAILABLE. Or this: SPECIAL FINANCING. Or this: LOW DOWN PAYMENT. Or if you happen to have a really SMART mortgage partner: BELOW MARKET FINANCING (seller has agreed to "buy down" the rate for future buyer).

Do you really think a sign that says "I'M GORGEOUS INSIDE" will do a better job of hooking a buyer? I don't.

And to those of you who send newsletters: do you have a spot on every newsletter for a mortgage update?

Right now it is extremely important that every POTENTIAL BUYER understand that there is still money to loan, and that you as a real estate professional can provide financing direction and assistance.

Make it easy for every person who responds to your marketing to have a clear idea of what they need to do to GET FINANCING

Give them the option of calling the mortgage partner BEFORE they call you (this gives you 2 chances of getting a call instead of just one

Show them payment options on your listing flyers. Tell them you have financing for "a broad range of credit situations".

Don't try to become an expert on mortgage rates and guidelines. Become an expert on overcoming what keeps your customers up at night. That's the way a marketing genius thinks.

Encourage the discouraged. Remain upbeat and positive about financing. Give them that glimmer of hope that they are secretly hoping exists.

Written by Janet Guilbault, Mortgage Lending Expert with RPM Mortgage, Based Out of the San Francisco Bay Area 925-552-3867 (Direct)

Make believe loans never close – Please STOP the stupidity now people!

Lewis Poretz - Open Mortgage - Mortgage Banker — Tue, 11 Nov 2008 18:00:36 -0600

Make believe loans never close –

Please STOP the stupidity people!

In the past month I have worked with a real estate agent with 20+ years experience in the business who supposedly teaches class in college on real estate fundamentals tell me that FHA loans are nothing but trouble. This seasoned realtor also has a cell phone that when it goes into voice mail says “ mailbox full “.

Then I had another supposedly seasoned agent of many years dispute the fact that a non occupant co borrower cannot own another house and sign on an FHA loan. He told me I gave him and his client bad advice. Funny thing is his client is ready to dump him and keep me.

I had another agent call after not hearing from him or the clients in a month wanting to know the status of his client’s loan. This is a short sale and the contract has been with the bank for 6+ weeks and is still not signed. This seasoned agent wants me to update him on the status of the loan. --- I have NO signed contract. You want me to do what and piss how many people off when the loan blows up because I didn’t do my job??? You want me to jeopardize my integrity because you know the loan will be ok… you promise it will…….

And then I have this agent who wants me to chase down his clients, who really aren’t certain they want to buy this house. I have told the clients what I need to write a commitment letter. I have told the agents I am not getting any response. But the agent wants me to continue to request his client send me the necessary income docs because he has a lot of kids and a full time job as well and just doesn’t have the time to chase them down. After all, he gave me the deal.

I have had it with part time real estate agents! I have had it with closed minded agents who refuse to let me sell an FHA or USDA loan because they know it all! I have had it with people that still remain in this business and refuse to put in the time and effort to become experts! I have had it.

I fired 2 agents today. They shouldn’t have lasted as long as they did. Sure it was nice to get looks every day at deal, but listen up close one more time.

MAKE BELIEVE LOANS NEVER CLOSE!

Agents, I will make this real simple. Get me last two years W 2’s ( tax returns if self employed ), 4 most recent paystubs, and three most recent bank statements or 401K statements or whatever you can get to back up the reserves and assets the client provides you. Don’t argue. Don’t underwrite. Don’t tell me why this is such a great loan. Just get me what I ask for. Because this is what the rules say. This is what the underwriter is going to ask for. I have the ability to validate the loan so when I send it to my underwriter it is typically good as gold. Do not ask me to send an incomplete file. Do not ask me to issue a loan commitment until I have all supporting docs and can back up my commitment

This is not a hard job. Just understand the guidelines and stop trying to re write them. It will never work. One more time, repeat after me - MAKE BELIEVE LOANS NEVER CLOSE!

Trust your MORTGAGE EXPERT to handle the loans for you. Make your life a lot easier.......

FHA MORTGAGE EXPERT

FHA loans & Mortgage advisory - Part 1 - Understanding Loan Officers

Lewis Poretz - Open Mortgage - Mortgage Banker — Tue, 11 Nov 2008 00:42:37 -0600

High quality advice from Active Rain legend and FHA LOAN EXPERT Jeff Belonger check out below and all of Jeff's other blogs.

Via Jeff Belonger -- The FHA Expert.com -- FHA Loans -- FHA mortgages -- Mortgages :

FHA loans - FHA mortgages - Conventional loans - VA mortgages

Consumers & Borrowers, please read this !!!

I have noticed in the last few months that some loan officers and lenders are getting more desperate than ever before. In my 16 years of being a loan officer in regards to mortgages, the consumer needs to be aware of knowing when to seek help from another loan officer and not wait until the last minute. It's one thing to trust, it's another to be lied to or misled to.... and not just by accident.

I so love helping people in general. And even more so when it comes to helping my client get a mortgage, no matter if they are buying a home or refinancing. I will also say that I am not perfect nor that I know everything when it comes to mortgages. But I have some pet peeves and concerns.... please read below.

I could share at least 20 to 30 examples that I have come across in just the last year alone. I get about 5 e-mails or phone calls a week from consumers all across the United States, but usually after they feel that they aren't getting anywhere with their current loan officer/lender. I am licensed in many states and more to come shortly. But if I am not licensed in that state, I know of a true mortgage professional that would be able to help them the same way that I could. Just recently, I had a woman e-mail me because her current lender said that her father couldn't co-sign on her new house because of x, y, z reasons. I said that was not true. And the sad part was that her loan officer said no and would get back to her. It was a whole week and still nothing. I gave her the name of a loan officer that I had confidence in and she still hadn't called him, even after 4 days.I just don't get it? Read below for her answer.

Conclusion to the answer -

I asked this women why she would not seek advice from another loan officer, especially one that was highly recommended, if she truly trusted me. She said..."because her loan officer was nice". People !!!! A nice sales person will not always get you the correct answer or your deal done. Yes, it's our job to be nice. But if they throw at you sweet chit chat, words of encouragement such as, "don't worry", "no problem", "I guarantee", "I promise", etc etc.... then you might be shooting yourself in the foot.

Words of advice -

It doesn't take more than 24 hours to get a basic answer to any type of mortgage question. Go with your gut sometimes. Better yet, go with a very knowledgeable and professional loan officer. One that will educate you about the process and educate you during the process. Advice below....

If the loan officer keeps promising to get back to you, but it's been a few days now, seek help elsewhere.

If they are hard to get a hold of now, even more so when you might have an issue, seek help elsewhere.

If the loan officer keeps using such phrases as I mentioned above, seek help elsewhere.

One pet peeve!!! If your lender misses your settlement date for any reason, seek advice quickly from another loan officer. I have heard some borrowers have their settlement postponed up to 3 times. Don't wait nor trust promises that will more in likely be broken later on. It happens.

If your lender denies your deal the day prior or the day of settlement, don't listen to them telling you that they are working on a new solution. And then for them to tell you to hold tight. Seek help elsewhere immediately.

In regards to out-of-state loan officers? 70% of my business is out of state. It comes down to the ethical and knowledgeable loan officer. It doesn't matter on location....

And for more red flags, please read this.... As a consumer, beware of these Red Flags !!!

One last piece of advice...(please read) stop listening to the media... there is mortgage money to still lend.

FHA loans & mortgage advisory - Part 1 - Understanding loan officers

FHA loans & mortgage advisory - Part 2 - Understanding mortgages & principals of mortgages

- FHA Loans - Conventional Loans - VA Loans -

Experience & Knowledge at its BEST !!!

____________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!

Copyright © 2008 by Jeff Belonger

Be careful out there, pal!

Lewis Poretz - Open Mortgage - Mortgage Banker — Tue, 11 Nov 2008 00:28:55 -0600

Excellent advice I wanted to share with everyone. Below post is coming from a real estate agent. I second this as a mortgage banker. Choose em wisely....... read below--- MORTGAGE LOAN EXPERT

Via Robert Kaetzel:

As they used to say on Hill Street Blues, "be careful out there". I'll have to confess I really never watched the show much. That show was for old folks. I was too busy watching Miami Vice and trying to pretend that I was Don Johnson/Sonny Crockett. It was 1985 and I was only 15 Years old. Give me a break.

With the current status of the real estate market many agents and title companies are committing fraud in order to stay afloat. You have to be really careful who you do business with. There have been many title companies in Maryland that have been caught stealing escrow monies. One of the title companies that I was forced to work with by the bank (my seller) when I listed REO properties was recently closed. The owner plead guilty to stealing 1 million in client funds. The title company owner was actually caught living in and gambling in Atlantic City casinos with client funds and that is where she was arrested. Truth is sometimes stranger than fiction. http://baltimore.fbi.gov/dojpressrel/pressrel08/ba092908.htm

This market will unfortunately bring out the worst in people. Please make sure that you pick your real estate agent/broker, title company and mortgage banker carefully. Do your due diligence and make sure you aren't dealing with a crook or con. Unfortunately there are title companies out there right now "open for business" that are in the process of being forced to close down by their title insurers.

Be careful out there, pal!

Real Estate Professionals, Inc. is a premier real estate brokerage company in Baltimore, Maryland. The company is more like a private club where successful agents in the real estate industry do business. The company offers affordable 100% commission programs for agents that are serious about the real estate business and want to earn a high income.

The broker, Robert Kaetzel enjoys providing advice, support and leadership to help each agent create their own professional and profitable real estate practice. Many of the agents that Robert has worked with earn $150,000.00, $200,000.00 yearly and more from selling real estate. Those that aren't earning at that level have personal real estate goals that they are working toward.

Earn 100% Commission! Only $295.00/Month http://www.myrealestateprofessionals.com/100_percent_commission.html

Why choose a local lender?

Lewis Poretz - Open Mortgage - Mortgage Banker — Mon, 10 Nov 2008 23:55:27 -0600

Untitled-3

I get these phone calls more and more these days. I found you on the internet and just had to ask, my loan has been with my lender for a few months now and they are not returning my calls. Listen up people. We are not living in the refi boom of the early 2000's. Loans are scarce these days. Wholesale investors are underwriting loans in three days or less, many of them offering same day turn around.

Man my internet lenders rates are soo good. I shopped and shopped and found the best deal on the internet. I got news for you. If your loan doesn't close, then your rate is make believe. And that is the problem when dealing with internet lenders in 2008. You are most probably dealing with an order taker who doesn't fully understand loan guidelines and is nothing more than a data entry clerk. And what if you have questions during the loan process and your calls go unanswered AND your lender is 14 states away from you????

Margins are so tight these days every lender should be offering very similar pricing. True pricing. Not make believe pricing. there is a difference! Why not deal with your local lender. Support your community. Visit your loan officer personally and get to know them. This is a huge transaction. Get the warm and fuzzy that you have made the correct decision selecting your mortgage company. Visit their web site and make certain they have an " about us " section that describes who the key personnel are and physical address. Seek high quality advice ----- MORTGAGE LOAN EXPERT

FHA - dispelling the myths

Lewis Poretz - Open Mortgage - Mortgage Banker — Fri, 31 Oct 2008 10:36:26 -0500

A 30 second anatomy of an FHA loan –

What you NEED to understand…

FHA loans have two major advantages.

#1 – they allow a purchase loan with only 3% of borrower’s funds in the deal. These funds may come from allowable sources such as mom and dad, employer, church. They also allow up to 6% seller help.

#2 – They allow cash out refinances to 95% of the value of your house – for now anyway.

The myths - FHA loans are for poor people or clients with terrible credit. NOT TRUE!

Think about it. FHA will allow you to purchase a home with NO MONEY out of your pocket. And FHA offers JUMBO loan amounts as well. FHA is the ONLY program that will allow cash out at 95% loan to value. FHA is the hottest loan program on the market!

FHA has mortgage insurance --- ok, so what.

Conventional loans over 80% loan to value do as well and the factors are much higher than FHA, which means on loans over 80% loan to value, an FHA loan payment will typically always be lower.

If you are looking into a loan and someone is advising you against an FHA loan, seek advice elsewhere. Understand your options.

FHA experts

Realtor refuses a loan...... huh??

Lewis Poretz - Open Mortgage - Mortgage Banker — Mon, 27 Oct 2008 14:54:24 -0500

It's back to the basics for me the past few months. I am out calling on agents again and I am lovin it. You see, times have changed. The very same agents who wouldn't give me the time of day in the past now inviting me to have a seat and chat. And that is just what I am doing. You see, I am finding out the agents with staying power, the ones that are "lifers", appear to be like a sponge just longing to learn about the products available in today's market and truly understand the mortgage lending business. This is a wonderful thing for me because these agents will always be on the same page as me and it will ensure we work together instead of against each other.

I called on a particular office today and met with an agent who seemed like a seasoned vet. I asked how business was and he seemed a bit bitter, which is totally understandable.... I suppose..... I went on to tell him my mortgage shop was actually having a really good month and purchase business was heating up. Then I asked him if he understood the USDA loans. He quickly told me he doesn't do those bad loans. He said they were the loans that got us into this mess.....

Hmmmmm... ok.......

I tried another approach. I asked if he did Veterans loans. He told me he would not put a client in a car if they didn't have any money to put down. He said that is what caused this whole mortgage mess.

I suppose in some convoluted way I guess he had a point. But explain this - If I can take someone who is renting and turn them into a homeowner with no money out of their pocket AND a monthly payment the same as rent - well, to me that is a BENEFIT to the borrower. Sure the whacky 100% No Doc loans went way overboard, but those traditional 100%'ers have been around forever.

I am interested to see everyones comments on this topic.......

Maryland Mortgage Expert

Real Problems for North Texas Real Estate Agents

Lewis Poretz - Open Mortgage - Mortgage Banker — Tue, 21 Oct 2008 22:58:18 -0500

Media hype is killing the mortgage lending industry! I am approving loans every single day..... keep spreading the word. Banks ARE lending money....... Great post by Active Rain legend Tom Burris

Via Tom Burris | FHA VA & Conv. Texas Mortgage Loans :

No, the sky isn't falling and the credit crunch didn't get worse....!! The problem is reporting like this. Jay Gormley with CBS 11 News pretty much told all of North Texas that they can forget buying a home. The loans are all GONE!!! And if they aren't GONE, then the financing can be yanked out from under the borrower in the 11th hour.

http://cbs11tv.com/local/real.estate.mortgage.2.836975.html <= see the article if you wish

Email Jay

I sent Jay Gormley an email after reading his article.... And he called me within minutes!! A VERY spirited debate ensued and it pretty much ended up with us agreeing to disagree.

I would like to add that as 'spirited' as the chat was, Jay was very respectul and professional.

Now, I do NOT doubt that he did his research.... But after reading the article, what do you think Joe Six-pack is thinking right now? Do you think Joe will even pick up the phone to call a loan officer or realtor? I DOUBT IT!!

We all need to make a concerted effort to show these authors the positive side of all of this. We need to show Joe Six-pack that there aren't any more hoops to jump through than last year!!

Who's with me?!?!?!

Please Re-Blog!!

Tom Burris
DallasLoanGuy.com
Dallas, TX

"Your Dallas Mortgage Consultant"

http://www.dallasloanguy.com/

Texas Home Loans Dallas Mortgage Loans

I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!! Subscribe to My Blog and stay informed about current lending changes!!

While I personally focus on Texas Home Loans and First Time Home Buyers.... I do lend in other areas. We are in about 46 States and adding programs to bring full service to an area near you.

Communication Break Down ~~~~~~~~~~~~~~ it's always the same ....

Lewis Poretz - Open Mortgage - Mortgage Banker — Tue, 21 Oct 2008 20:35:33 -0500

.......... I'm having a nervous breakdown... drive me insane .......... ohhh sookie ---- Da Da Da Da Da Da Da Da Da DAA Da Da

Ok - so I stole a piece from the repertoire of what AR legend Jason Sardi adds to his blogs... a bit of musical transition if you will..... now here goes -

I have been working with a realtor for the past 4 months with a client I have been working with for almost a year that I had pre approved and somehow he hooked up with. This agent seems like a nice enough guy, 20 + years in the business, very friendly and engaging on the telephone. But I saw it coming...... Our first conversation started out with him asking if I would honor the rate on the good faith I had supplied these clients --- my clients! - THREE MONTHS PRIOR!

These clients came to me with mid scores in the 400's. I got to give it to them, with great effort, lots of letters to the credit bureau and some slick negotiating with past creditors, their scores got better. Mind you, they are still sub 580 however I can get this loan closed with a manual underwrite as it meets all the guides and there are strong compensating factors. Besides the fact with proof of a few more accounts paid, satisfied and removed I can get them approved through automated underwriting. They are almost there.

Well I tell you, Mr and Mrs Realtor, will you please concentrate on selling houses and leave us mortgage brokers alone when it comes to what rate we charge the borrowers. I apologize in advance to the responses this post will get but listen up people, unless you understand what hits to the price a sub 580 score gets and how much time and effort it takes to submit a tight package to my underwriter, please leave well enough alone. I can open that can of worms on every listing in your pipeline. I elect not to, please do the same. Now my client is asking why can't he get a rate in the 5's like he sees on TV. 97% FHA - 3% gift from mom, 4% seller help, sub 580 scores...... STOP THE NONSENSE!

So that's where I left it six weeks ago. Today I get a call - " hey Lewis, the bank ( it's a short sale of course ) said they will take the deal, can we still close this month? " Well Mr Realtor, yes we can but I need the contract so I can get docs drawn up, signed and submitted. He told me that he can send me the copy that is signed by the buyer and seller but he only has a verbal from the bank ........ I DID NOT FALL OFF THE TURNUP TRUCK LAST WEEK!

How many of you have seen a short sale turned around in - let's see today is the 21st and they want to close the 30th - well, that fast? Can we get it to the table that fast? You betcha! Let me ask are you mortgage gurus a question ---- How many of you submit this loan without the banks approval? Without knowing what the bank will actually accept as a payoff? And without knowing the balance on the property?

It is a short sale people! And neither listing or selling agent knows the balance owed on the property.

THERE ARE REAL LOANS AND THERE ARE MAKE BELIEVE LOANS - do you know the difference? I do.....

MARYLAND FHA EXPERT

How do you like the new company Jingle - live performance

Lewis Poretz - Open Mortgage - Mortgage Banker — Wed, 15 Oct 2008 19:56:47 -0500

Whats all this bank talk mean to me?

Lewis Poretz - Open Mortgage - Mortgage Banker — Tue, 14 Oct 2008 09:16:17 -0500

What does all this government intervention and bank talk mean to me?

Not quite sure yet. The Government is talking as if banks were not approving loans. This is NOT the case. It is still unclear as to what will be done to protect consumers who have fallen behind on their mortgages. It is still unclear on how banks will now magically be able to approve loans they couldn't approve last week. We will report on this as soon as the facts are
released. Until then ----

As the Government attempts to help our ailing economy we have seen an increase in the number of purchase applications. Nobody can pinpoint the "bottom" but it appears as if consumers are starting to leave the sidelines, fearing higher interest rates will negate any deals found on purchases.

The stock market has its legs back which is a good thing. Keep in mind one thing. Typically, when the market is on a roll 10 year treasury bonds usually get worse. Mortgage rates tend to follow the 10 yr bond. What this means to you is rates have gone up since the stock market rally of last week and continues to do so today.

Now rates are not skyrocketing through the roof but one thing is for sure, rates were lower last week. Timing is everything is today's mortgage market. Talk to a mortgage professional and seek high quality advice.

Have a wonderful and prosperous week ----

Cash out to 95% still available!

Maryland Mortgage Expert

Plenty of mortgage money to go around.....

Lewis Poretz - Open Mortgage - Mortgage Banker — Mon, 13 Oct 2008 11:46:56 -0500

The media ----

---- you got to love them... they can give you more exposure than you can handle. They can also create so much negetive hype they can single handedly destroy an industry. Simply being in the mortgage industry is a fight of it's own, let alone the momentum a media frenzy can deliver. According to the press, banks are not lending money.

Let me tell you something. Banks are lending money! Our company sells off our mortgage paper to banks. Banks are approving loans. Banks are honoring rate lock commitments and banks are closing loans through wholesale and retail channels every sngle day.

FHA loans have NO minimum credit score. Of course actual "credit" comes into play but Delegated Underwriters (DE) look at the whole picture. Was there and isolated incident that made credit go bad? Was it good before? Are there alternative forms of credit we can use? Are there any compensating factors? Does this loan benefit the borrower?

Let's say a couple in their 50's have had excellent credit until last year. The husband had a heart attack and was without a regular paycheck for nine months before returning to work. They went late and even bad on some bills. Since the husband returned to work ten months ago, all bills have been paid on time. The couple's credit scores are in the low to mid 500's. Listen up loud people - with compensating factors and a benefit to the borrower - this loan gets approved!

Understanding that the example above get's approved with a well put together loan package and a manual underwrite, how hard do you think it is to get a 600+ borrower approved for say 95% cash out? It is very easy.... Mortgage bankers are approving loans every single day. The problem is with the volume of applications. They have come to a screeching halt. The media has hyped consumers into thinking that nobody is being approved for mortgages anymore. This cannot be further from the truth. If we are going to pull out of this economic funk we are in, lending must increase. It keeps industries in business. It creates more cash. It pays off loans and credit card debt. It may be what will save the economy.

Mortgage Expert

VIDEO - Mortgage Week in Review 10 10 2008

Lewis Poretz - Open Mortgage - Mortgage Banker — Fri, 10 Oct 2008 16:15:21 -0500

The first video week in review from Lewis Poretz of Open Mortgage. Look for more videos from Lewis and some other familiar faces on AR. We will be offering up a point of view from the mortgage market from those of us in the trenches, doing the thing we do for a living and eating and breathing this stuff every day.

Is anybody listening??? HELLO!!!

Lewis Poretz - Open Mortgage - Mortgage Banker — Wed, 08 Oct 2008 19:05:11 -0500

Just smile if you can hear me.....

..... listen up doom and gloomers ~~

The media hype is killing the mortgage lending business and it makes no sense why. All I hear on the TV channels is how tight credit has become and that banks are not willing to lend money. Well I got news for you.

I am still approving cash out refinances up to 95%! I am still approving loans for first time home buyers. I am still offering rates in the mid 5's with appropriate credit, loan-to-value, income and assets. I still allow non occupant co borrowers.

And you know what - all mortgage lenders have the same rules!! The programs are out there. Now is the best time in years to purchase a house or refinance your adjustable to a fixed rate. Even cash out for whatever need. These loans are being approved every single day.

DO NOT listen to the media hype. It makes no sense as to why the mortgage lending business is slow at this time. The guidelines allow every loan scenario listed above to be approved. Nobody knows what the future will bring but as of right this very instance, banks are lending money!

*** Programs change like the wind.....

*** The chances of things getting worse are stronger than things getting better

*** and most of all, when attempting to get the lowest rate possible -Timing is Everything-Communication is key

We are approving loans every day!

Cash out to 95% still available.... call your trusted mortgage banker for details

MARYLAND FHA EXPERT

The week ahead......

Lewis Poretz - Open Mortgage - Mortgage Banker — Mon, 06 Oct 2008 11:12:40 -0500

The week ahead .....

The stock market is opening up down big time yet again. Speculators are calling for the Fed to cut rates up to .75% Jitters in the stock market have started another rally in the treasuries, which usually means lower mortgage rates. The credit market seems to be in a deep freeze. The Government understands this and is attempting to do everything possible to encourage banks to lend money. It would make sense to believe this will benefit everyone in terms of lower mortgage rates. But nothing makes sense in this market. When an interest rate is available that makes sense for you, jump on it and never look back! Look for rates to dip today on market fears but the rest of the week is a total crap shoot. Stand by for special alerts......

Maryland Mortgage Expert

A little ditty to sum up the week.....

Lewis Poretz - Open Mortgage - Mortgage Banker — Fri, 03 Oct 2008 21:56:52 -0500

in a nutshell .....

The stock market took it's biggest pounding ever, the stock market rebounded, the bailout was introduced, the bailout was defeated, the bailout was re introduced, the bailout passed.....Jobs losses are the worst in 5 years....Washington Mutual runs out of money, Wells Fargo buys Wachovia, Bank of America buys Merrill Lynch, all of us buy AIG, oil goes under $100, oil goes over $100, oil goes under $100 again and on and on and on.......

Many are now speculating the Fed will cut rates up to .75% later this month, if not before. You would think this is good for mortgage rates but that is not always the case. The MBS ( Mortgage Backed Securities ) market controls the appetite to buy mortgage paper.

Given the bailout passed today in Congress coupled with a Fed rate cut, it could bring back the appetite in the MBS markets and spur mortgage refinancing - which this country desperately needs. Did the Federal Government make the right moves? We will all see next week and maybe even a preview later today. One thing for certain, we are witnessing history before our very eyes. Have a great weekend....

MARYLAND MORTGAGE EXPERT

Today was better than yesterday....but what will tomorrow bring? Predictons anyone??

Lewis Poretz - Open Mortgage - Mortgage Banker — Tue, 30 Sep 2008 19:23:43 -0500

Made it through today ( Tuesday 9/30 ) with three price changes for the worse from numerous investors. The stock market rebounded nicely. I predicted more doom and I must say it was a pleasant surprise. Mortgage rates took a beating as investors left treasury bonds in favor of the stock market. Financials gained big time with the hopes of whatever is going to pass will open up lending.

I am not convinced of this. I am not convinced anything will open up lending unless the government guarantees the loans. I am not convinced today was not merely shrewed investors buying low and looking to dump at a profit. I just don't see any concrete evidence the economy will get better.

I see the market getting antsy tomorrow and ending up down.

Predictions anyone??

Maryland Mortgage Expert

Something is in the air..... we all feel it don't we--------

Lewis Poretz - Open Mortgage - Mortgage Banker — Mon, 29 Sep 2008 17:45:42 -0500

If you are a realtor or mortgage professional and after today you don't feel an eerie wind of change blowing in very rapidly you don't have a heartbeat.......... Mortgage rates should be really, really low after today but they are not. Homes should be selling like hotcakes but there not.

Yes - there is an eerie wind blowing in and I for one don't like it. This week could be one for the history books. If you look at the past few weeks you have to think there are a few more major banks - Nat City and others - that are ready to pop.

Some experts are talking about the Dow hitting the 8000's by weeks end. Tomorrow could bring more panic to the banking sector. A bank that has one of those big runs on withdrawels could go from the safest rated bank to insolvency in one day.

Not sure what tomorrow will bring but one thing for sure - it will bring something! If you have equity in your house and plan on staying there for a while and will have the remote need for cash in the fuuture - TAP your house now!

Any predicitons on what tomorrow brings?

hey - what about me??

Lewis Poretz - Open Mortgage - Mortgage Banker — Mon, 29 Sep 2008 07:05:13 -0500

Ok - so the Fed and the US Goverment is helping out the big banks in order to control stability. Very cool. I bet these big banks appreciate this! I am certain the rationale behind this makes sense to the US and Global economies. I get this.....

But let me ask you this - what about me? What about the self employed middle class whose income is way down. What about the borrowers who always paid on time and are getting crushed now because the economy has driven their income down. What are you going to do for the people who can't make the payments anymore? What about the people who can't pay their taxes this year? What about the people who can't afford college for their kids nor qualify for a student loan? What about the huge numbers of us who were depending on those credit lines that have been fozen?

All this bailout talk is great stuff. But - What about me??

This just in !!! -- Interest rates are going to....

Lewis Poretz - Open Mortgage - Mortgage Banker — Fri, 26 Sep 2008 23:28:30 -0500

Mortgage rates are going to ...... there gonna..... I really think....honestly I am simply baffled with the low level interest rates are currently. I thought rate would be near the 8% range by now. It is just what the cycle does. Rates had been low for a while. The correction has got to be coming....

For years I was the go to guy in the office. I would get phone calls from loan officers all over asking me that question - should I lock or float?? I was that good at predicting movement. In the past few months I have been wrong many times. In today's mortgage lending environment rates could have major swings within the same day!

The big relief plan being ironed out this weekend by government leaders will have a big impact on mortgage rates by Monday morning I would assume. Which way rates are impacted is the big question! The goal is to open up money to the economy, specifically in the beaten up mortgage industry. I have not completed any real conclusions as to where rates are headed. I just can't convince myself either way. I would think I am like many others who are just taking a wait and see approach in this every changing whirlwind.

In the not so distant past a few things were a lock. My rule of thumb was this -- Bad news for the economy would have investors buying treasuries which in turn forced mortgage rates down. I have since thrown that proven method out the window.

Any predications where rates are headed next week? next month? Next six months?

Maryland FHA Expert

Must see movie - Maxed Out!

Lewis Poretz - Open Mortgage - Mortgage Banker — Wed, 24 Sep 2008 21:44:25 -0500

I have heard about the movie "Maxed Out" many times in the past but have never seen it until this evening. It is currently on Showtime. Everyone needs to watch this movie. I don't care if your rich or poor a great credit risk or on the verge of losing it all.

The movie demonstrates how corporate America and the big banks set up their clients by offering more and more credit to unsuspecting consumers. They discuss 28% + interest rates on credit cards, over the limit fees, late fees, under balance fees etc......

This movie was released in 2006. Did they ever predict what is going on in this nation this very second or what??

Any comments on this movie?? Maxed Out how much of a coincidence that as soon as this move is over and i start scanning the channels for something to watch, George W. appears on all the network channels telling us how America is on the verge of financial collapse..... Hang on to your hats people - when we finally get to the bottom we are in for a hard landing!!!

Maryland FHA Expert

You want me to do what?? Your fired! -- UPDATED 9 / 24

Lewis Poretz - Open Mortgage - Mortgage Banker — Mon, 22 Sep 2008 16:34:06 -0500

I have been dealing with a particular client, ( let's call him Mr Smith ), for a few months now. He seems to be the type that just loves to hear what he wants to hear and not thr true facts. Mr Smith wants to purchase a property and has very little money. He is looking in an area that is approved USDA. When I mentioned USDA, he told me his "mortgage buddy" told him those are terrible loans. I told him I could approve hin FHA but he would need 3.5% of HIS money in the deal. He said no problem he could get it. I asked where it was coming from and he said don't worry, he could come up with it. I told him the speech about souricng allowable gift funds and he said he could get it from his dad. Cool ----- by the way, mid score of 589 did not get approved VA but did FHA and fits USDA guides with a strong LOE..... he was away in Iraq on assignment when he had a few 30 day bumps.... no problem

This has been going back and forth with Mr Smith now for about three months. This guy was a refferal from a client i have done many loans for and many more for his friends and family he has sent my way. I get a panic call from this guy today --- i want to put a contract on a property but it has mold. HMMM... FHA - mold???? ok - Mr Smith still cannot produce a gift letter from his dad nor do i have any of dad's bank statements.... the dti is high but i got an approve/eligible FHA - BUT before I write a commitment letter i MUST see income docs and the gift letter.... don't all your realtors agree?????

Ok - I then get a call from the realtor.... she wants an approval letter on TWO different properties tonight in case one doesn't get accepted. Of course then she goes on to inquire about the inerest rate and the fact that she has been selling houses 20 + years and that she plans on having another lender review my good faith. Oh boy --- whatever, it's 2008 and I want to make friends with realtors :-) The demeaning language and questioning about my 15+ years experience in the mortgage lending business alerted my better judgement... and then it came --------

Ms. Realtor - BEFORE I issue you a commitment letter, I MUST see income docs and gift letter at the very least. Then I was floored......

I was told by this realtor that she didn't want a commitment letter only an approval letter..... ( is there really a difference???? ) She said have the letter state that none of these conditions have been validated but the credit was approved. And this letter was going to be submitted to the BANK that now owned the foreclosed property. She told me not to argue with her because she has been selling bank owned roperty for 20+ years.....

So here is the deal - she wants me to issue a loan approval, commitment, acceptance whatever letter without looking at the clients income or source of funds for down payment so my client that was referred to me can purchase a house that has mold........ she wanted to offer FULL price because it was a bank sale and did not want to ask for seller closing help...... and she did not like the idea of a USDA loan... ( she has never had any luck with them and didn't see the real benefit ) - FHA - monthly MI 3.5% money in the deal USDA - no monthly MI and 100% financing....

I told this realtor that we probably were not a good match for eachother and that I was NOT going to

issue anything resembling a commitment letter to her, the listing agent or even the BANK that owns the property.

I fired that real estate agent and am certain I will lose my client...... at least for now -

Any agents have any thoughts on this scenario? Would you want a loan commitment issued on a client that was about to place a contract on a house that was make believe?????

Maryland FHA Expert

Excuse me!! - I have some news and you better listen up now --

Lewis Poretz - Open Mortgage - Mortgage Banker — Fri, 19 Sep 2008 10:05:33 -0500

Hey buddy, you know that line of credit you plan on using sometime in the future.... and about that 401K plan......

Some experts have stated recently -

the United States could be on the verge of a financial meltdown.

If you have not been in close contact with your financial advisor, go get a new one. If you haven't heard from your stockbroker recently, fire them. If your mortgage broker is not keeping you updated with the current lending landscape, replace them.

If you locked your rate in the past few days, congrats! If not, rates are still very low. It appears as if investors appetites are turning to stocks big time and the Mortgage Backed Securities Market ( this is what drives mortgage interest rates people, not the Fed ) are taking a bath. Some say the downward momentum will gain speed and possibly have double digit interest rates to contend with in the future.

TODAY more than ever, call your trusted advisors and ask questions! Seek High Quality Advice!!

review my jingle - UPDATED - here is a new cut please offer your review as before..

Lewis Poretz - Open Mortgage - Mortgage Banker — Tue, 16 Sep 2008 22:01:59 -0500

A jingle is that little hook that gets stored in your memory banks. Many times a catchy jingle will have you humming the darn thing all day long..... typically jingles that last are simple sentence and often even just a word or even a zinger.... like the yahoooooo....

Jeff Gay, a part of the Open Mortgage team, wrote this little ditty and has received very positive reviews......

We would love to hear everyones thoughts on this... please give it a listen and an honest review..... good or bad - we really want some feedback before we roll it out....

here the jingle

***** Below is a new version of the jingle -- please let's here your comments and suggestions goood or bad...

UPDATED JINGLE #2