Mortgage Insights by Andrew Clemente

NO BULK REO SALES

Andrew Clemente - Mortgages Made Easy, Inc — Sat, 19 Jan 2008 02:56:41 -0600

You know I have written many blogs on the proper procedures to become approved with the lender I formally worked with. It's truly amazing how many Realtors and mortgage people do not take the time to look through the rest of my blogs or actually read the advice I give. Many just blatantly ask me if I can provide them with a fast bulk sale. They want to buy $100 million in properties, likely hoping for 50 to 70 cents on the dollar. I had one investor tell me he had almost a billion to spend. If they took the time to read they would see I was not in control of the REO decision making department, nor did I have access to bulk sales. Yet I still get the countless calls. Heck, I wish I did have that control. Could you imaging the commission!! TOO BAD, I don't! Now I no longer work for that company SO GO AWAY! Just kidding! Well you are suppose to be real estate professionals and go through contracts, so at least read a little further before asking for something I can not provide.

UPDATE 5/2008: Well I have received many calls (lost count) beyond what you see on the comments. The truth is you'll find speculators that can't "show the money" I have collected a few contacts that can "show the money" and are waiting till the time is right. Well it doesn't take a good realtor or mortgage broker to realize a shift is taking place in the past few weeks. If you are a serious BULK sale investor and can show the money e-mail me at mme2000b@yahoo.com. Likewise if you are representing a lender you have to be willing show me your portfolio. Let's talk if your serious.

RESIGNED FROM COUNTRYWIDE

Andrew Clemente - Mortgages Made Easy, Inc — Sat, 19 Jan 2008 02:33:30 -0600

After careful consideration of my career path I made a decision to leave Countrywide. Not because of any rocky roads ahead, we are all in this together. Not because of the company or team I was with. They were great! And not because BofA bought Countrywide. Coincidentally I planned to resign that Friday, January 11,2008, unaware of what was to take place. My opinion, it's a good thing which will start a trend creating a wave of mergers and acquisitions from the biggest banks competing to survive. I went to Countrywide because 2007 brought uncertainty for mortgage brokers. It seemed the big banks were restructuring guidelines to cut us out of the picture. They were also offering MSA programs to lease office space for big bucks to capture an in-house advantage. I figured if I couldn't beat them I'd join them. Things were changing too fast and too often. How was an agent to survive? Eventually I found even the big boys couln't figure it out. It has taken some time and much bleeding but I found my niche and I am working it. In order to work it effectively I had to leave Countrywide. You see I could be go against company policy and work both, being a Realtor/Broker and leading a double life at Countrywide. However, that is not me. I run an honest business! So I have put the broker hat back on and I am off to a winning year! Re-invent yourself find your niche and make it work! Goodluck!

COUNTRYWIDE REO UPDATE

Andrew Clemente - Mortgages Made Easy, Inc — Fri, 02 Nov 2007 17:38:28 -0500

Between Active rain and a few other sources I get many requests for help to find an agent or even get people approved. I wish I had the the time help everyone that asks find an agent. Unfortunately Countrywide will not let me work with Realtors that are not local with me on the REO side. CW wants to keep the relationships local. Some of you have thought I am the decision maker of who gets on the list. I am not. All I can do, as all Countrywide agents can do, is make a recommendation. Our management does have a close tie to the Mitigation Team that is true. I only wish I could capitalize on out of state REO relationships which would allow me the additional time to help all of you.

It is important to realize that in order to get approved the Retail Management is the key barrier. Management WANTS Loans in the pipeline. The key is working with a Countrywide Agent and establishing a working partnership. Management will look at the number of loans being generated from this relationship. If the number is small to none it is not likely you will have a chance. For the struggling agent looking to get business where they have none this is not the answer. I hope this helps. I suggest forming a team of agents, one that is a broker and has REO experience. Start submitting loans to a CW rep. Most of us are good at what we do so why not develop the relationship. And our rates and guidelines are getting harder to beat so why not try us.

As always I wish you luck if this is what you want.

HR3915 TAKES AWAY BROKERS ABILITY TO EARN

Andrew Clemente - Mortgages Made Easy, Inc — Thu, 01 Nov 2007 19:11:01 -0500

An Account Rep. send me this link. I took the time to read through the proposed BILL and while some clear points on reform are made I do believe without a more careful structure this bill will be harmful to independent mortgage brokers. The industry has taken it's toll on the mortgage broker. I will not persuade you to vote "No" and sign this petition as I have. That is up to you. This may or may not have a deep impact on how some of you do business and generate income so I do encourage you to follow the links I have provide. Should you feel strongly against the proposed HR3915 Legislation you may wish to add your signature.

This link is to a petition opposing the new legislation being voted on next Tuesday that would eliminate Broker Rebates (YSP), among other things. Please sign it and pass it along to anyone else you think would be interested.

http://www.petitiononline.com/HR3915/petition.html LINK TO SIGN AGAINST PROPOSED BILL

HERE IS SOME ADDITIONAL INFORMATION I FOUND THAT MAY HELP YOU DECIDE.

http://www.afsaonline.org/cms/filerepository/FrankBillTestimonyOct2007.pdf INDEPT. STUDY / EVALUATION

SECRET INTEREST RATE

Andrew Clemente - Mortgages Made Easy, Inc — Mon, 22 Oct 2007 16:14:35 -0500

I do my best not to advertise via a blog on the rain. At my office we found an incredible rate on a product. It is not being broadcasted, nor are many of my fellow agents aware of it. Here at the office we are calling it a "glitch". One that is being honored!!!! Also I can not say it is being offered at any other offices or states. Not that it isn't but I just don't know as it isn't being brought to anyones attention.

Here it is: 3 Year Fixed ARM JUMBO at 6% with INTEREST ONLY qualified at REDUCED DOC.

It does carry a 3 Year SOFT PRE-PAYMENT PENALTY ( refinances get hit not sales)

*At 6% why would anyone refinance unless forced to.

CLTVs can not exceed 90% and single loans can not go above $1,000,000.00

Why are we calling it a glitch? When we go to Full Doc or increase the PPP to a Hard PPP pricing gets worse to over 8% in some cases. The Jumbo Rates are all over the place with the best I have seen between 6.125% - 7.25% with the lower end carrying tremendous guideline pressure. I do not know how long it will last. I do know locks are being honored and closed.

The lower the LTV the better the overage/rebate which will allow me to pay some costs (ie: application fee & administration). As with all things rates are subject to change. If you are a realtor or prospective client in California I can assist. Go to www.andrewclemente.com and goto "Get Started" and have your client or yourself fill out an application. Or call me at 949-677-6394 for more information.

COUNTRYWIDE: PRESS RELEASE

Andrew Clemente - Mortgages Made Easy, Inc — Tue, 25 Sep 2007 11:15:35 -0500

Note you can always visit my website to get this information. www.andrewclemente.com

Countrywide Saves 35,000 Mortgages From Foreclosure

09/24/2007

- Borrowers Facing Challenges Urged to Contact Countrywide's Home Retention Team -

CALABASAS, Calif., Sept. 24 /PRNewswire-FirstCall/ -- In its ongoing effort to curb foreclosures, Countrywide Financial Corporation (NYSE: CFC) is actively working with borrowers who are experiencing financial challenges. Utilizing various methods to help homeowners, including loan modifications, repayment plans, postponement of payments and refinancing, Countrywide has provided homeownership preservation assistance on approximately 35,000 mortgages so far this year.

As part of this effort, Countrywide has completed more than 17,000 loan modifications and is on target to complete nearly 25,000 in 2007. Loan modifications involve changes in one or more of the loan terms that bring a defaulted loan current and provide sustainable affordability.

"Our number one priority is to help borrowers stay in their homes," said Steve Bailey, Senior Managing Director of Loan Administration. "Countrywide has the right tools, processes and staff to help homeowners avoid foreclosure."

A significant barrier to helping homeowners is getting them connected with a Countrywide representative. Countrywide personnel engaged in telephone outreach contact with delinquent borrowers are trained to assist customers in getting the help they need. Twenty percent of borrowers never make contact with the company during their foreclosure process.

In addition to direct outreach, Countrywide's efforts include working with non-profit and community groups across the country to create grassroots efforts to contact and counsel distressed borrowers, particularly in communities that are experiencing unusually high foreclosures.

"There is an unprecedented effort among lenders, investors, community groups and the industry to work together to help homeowners," said Bailey. "No one benefits from foreclosure, and counseling and intermediary support from these groups can be fundamental to the success of our borrowers."

Countrywide encourages consumers who face an increase in their mortgage payment or fear falling behind on their payments for any reason to call the Countrywide home retention team at 800-669-6650.

Additional foreclosure prevention tools and resources are available on Countrywide's H.O.M.E. (Home Ownership Mortgage Education) Web site at http://www.HomeByCountrywide.com.

These efforts are part of Countrywide's comprehensive homeownership preservation program, which consists of 2,700 highly-trained home retention specialists. Countrywide reaches out to distressed homeowners in their own communities by setting up face-to-face meetings through various means; hosting seminars around the country to help borrowers avoid foreclosure; participating in foreclosure prevention workshops, teaching them about possible foreclosure scams; and offering loan workouts on-site.

About Countrywide Financial Corporation

Founded in 1969, Countrywide Financial Corporation is a diversified financial services provider and a member of the S&P 500, Forbes 2000 and Fortune 500. Through its family of companies, Countrywide originates, purchases, securitizes, sells, and services residential and commercial loans; provides loan closing services such as credit reports, appraisals and flood determinations; offers banking services which include depository and home loan products; conducts fixed income securities underwriting and trading activities; provides property, life and casualty insurance; and manages a captive mortgage reinsurance company. For more information about the Company, visit Countrywide's website at http://www.countrywide.com.

SOURCE Countrywide Financial Corporation

Yorba Linda Oktoberfest

Andrew Clemente - Mortgages Made Easy, Inc — Sat, 22 Sep 2007 21:54:10 -0500

Ok if you read my post about the San Antonio's Catholic Church Fiesta Days in Anaheim Hills well a week later in a far off (well the town next door) town the sister church St. Martin De Porres has an Oktoberfest. Plenty of food! I had a brat last night. There is a beer garden. I recognised some of the rides from the Anaheim Hills Fiesta. I have been going since 1983! It is going on this Friday, Saturday, and Sunday. Enjoy!

To ASK for The Business or NOT!

Andrew Clemente - Mortgages Made Easy, Inc — Thu, 20 Sep 2007 01:35:11 -0500

This is going to be a very blunt post. Are you sitting down? Maybe you'll be LMAO or ROFL! Maybe you'll get mad and say "How Dare He!". I bring this up for because I have heard from two very different perspectives. I run my business from a very honest foundation. You don't know me so how do you know that? Time and time again I have heard from super producers and top performer and even managers, "If you don't ask you won't get" Now if you have a business relationship already asking is easy. If you are great at what you do you probably don't have to ask. Ahhh that's nice! And until recently I presumed it was meaning "Just Ask" existing. Now I have been told you have to get in front and ask your prospects. Again I can give you the "dog and pony show" but until you get to know me and work with me you don't know me. I understand this. Now the other school of thought is "wine, dine, get to know" Then if all goes well they'll start giving you business. I had a manager say "They are (Realtors) ego driven, they don't want you to ask. They want you to stroke their egos and eventually they feel obligated because they like the attention. I have seen that in action as well. It becomes a catch 22 either way. Until a Realtor breaks and finds out just what you are made of. Remember the day when you where 18 and wanted to get a credit card? Sorry you have no credit experience! Well how could you when they won't start the ball rolling for you. Most of my business come work of mouth. Once you work with me your hooked! I am that good. So do you want me to ask you or stroke you? Either way I want your business! Your thoughts?

Out of My State REOs

Andrew Clemente - Mortgages Made Easy, Inc — Thu, 20 Sep 2007 00:39:53 -0500

First I am flattered and also willing to do what I can to point interested Realtors that want to do REOs for Countrywide in the right direction. So far in my posts I have been very candid about what the process is. Some of you ask questions and haven't read my previous posts. Shame on you! Just Kidding! Also I have likely bee more candid than what "The Big Boys" at Countrywide would prefer me to be. I have mentioned in previous posts that there are 3 steps. These are not any formal in writing steps, just what info I have collected to help you. The steps that will promote greater success. To recap: 3 completly different parties have an interest from having you the Realtor gain access to our REOs. First, The Countrywide Home Loan Consultant. (That's me) or another CW loan agent. What do we want? LOANS!!! Yes we want loans. The mitigation team is allowing us to work the REOs. Why? It helps them not have to process as much by dumping much of the contact on the retail CW agent. Heck if it gets us another loan we'll take it. Second, Mangement! This includes my direct manager and Sr. Management. What do they want? PROFIT and Volume!!! How do they get it? From CW Home Loan Agents! So REOs are popular now. Will they be in 2,3 maybe 4 years from now. Let's hope not!!! So with that in mind they want to secure business, not just now but later. Management wants their loan agents to be successful and produce. Frankly it's always about numbers!! This goes all the way up the later to the owners. So mangement's question is this: Why should we allow non-productive Realtors the goldmine (REOs). When the ride is over the office production may crash. Now it's up to them if you even make it to stage three. So what do they want? Again: Numbers! They want you to flat out give me ALL your loans. Yes and first, before you even become an applicant. They want us to establish partnerships! Enter stage three! The Loss Mitigation Team or what we call the "REM". What do they want? Simple to prevent loss. They are salaried people who's sole job is to stop the bleeding. They also are now getting buried and when you are that busy things fall through cracks. Now it is their call who is approved to get the REOs. If volume is up and everyone and there mother want REOs now they have to deal with more approval processes. All these processes all have to fall into the corporate philosophy as well. I won't get into that preamble, but as it relates to business channels: Keep it local! Can I do out of state loans? YES. on REOs: NO!

What do I advise? I will always be upfront. If you are not local to me and want to do REOs you need to first find a Countrywide agent in your area that understands REOs and is willing to work with you. If you already give loans to a Countrywide Loan Agent GREAT!!! You are ahead of the game. Now, do you have REO experience? If so you made it past the second hurdle. If not, team up with a broker in your office that does. After that meet with the Countrywide loan agent and their manager. Have a resume (geared to REO experience) and a business plan ready. It would help if you or the team broker have a letter from a past or existing lender's business mitigation department. Have cash available. $50,000 - $60,000.00 Either liquid or a untapped HELOC. (I can get that for you, hint!) Reason: You or your broker is about to become a property manager. As long as your area is not already saturated with approved Realtors you have a shot. Another hint is to shop your buyers with a few CW REOs. So what if your not approved! To represent the buyer you don't have to be. Start collecting your experience that way! All this and no guarantees! You ask is it worth it? Some Approved Realtors are making so much money its unbelievable! Is your market thriving? Food for thought. Hopefully I have helped.

DO-NOT-CALL LIST

Andrew Clemente - Mortgages Made Easy, Inc — Mon, 17 Sep 2007 19:43:56 -0500

Has this ever happened to you? I received a strange call on my cell phone. It sounded like an older man and he had one thing to say:

"Andrew I am getting unsolicited phone calls from your company. You'll see my phone number on your message here. You can take it off your list. If not, if I get another call I am turning your name and the name of your company in to the Missouri Attorney Gereral's office. I am on the no call list just to let you know."

Maybe random mistake. I have never done business in Missori from Countrywide, nor my mortgage company. Even so. My methods are Refferal and mail which are kept local to California. Now while I can do loans in other states I do not solicit direct. Just strange! I will forward the message to my company and insure CW has him off the list. But it's a Catch 22 because I ca not call him to say he is mistaken I do not think. Even if I can I do not want to piss him off.

BUYDOWNS ARE BACK TO HELP REALTORS CLOSE!

Andrew Clemente - Mortgages Made Easy, Inc — Sun, 16 Sep 2007 17:47:30 -0500

Buydowns are nothing new. I recall buying my first home in 1996. I wondered how I was ever going to be able to afford to buy that Condo on my entry-level salary. Enter FHA and a 3-2-1 buydown. At 7% my payment was supose to be around $1,385.00 per month. For the first year it was only $981.00. What a difference! Now I was told it would go up each year until it reached $1,385.00. I thought to myself I am only just entering this industry, I should earn more in the years to follow. It helped a great deal!

Buydowns and how they work

Buydowns allows for a lower interest rate on a mortgage for a fixed period of time, usually 1-3 years depending on the type of buydown. They are not a mortgage product but rather an interest rate reduction. The borrower is locked at the fully amortized note rate. For example, lets say the fully indexed rate is 7%. On a 2-1 buydown the interest rate will be reduced by 2% with a payment based on a 5% note rate. Typically for one full year. On the 2nd year in our example the note rate changes to 6% with a 1% decrease on the 13th payment. And again to 7% on month 25 through the remainder of the fixed rate portion of the fully amortized loan. The bank still makes interest on the loan at 7% from day one. You may ask how?

The borrower, in our example, is making a payment based on a 5% interest rate for a loan with a fully indexed rate of 7%. There is a 2% difference. This amount is stored by a third party escrow or held by the bank. When each payment is made the monthly difference is drawn and added to the borrower's payment.

Benefits of a Buydown

FOR BUYERS

The interest rate is lower in the first few years giving buyers an initial lower payment.
Reduces payment shock from renting to owning.
Increases affordability, opening availability to more buyers.
No unknown payment adjustments.
Great for buyers who anticipate increased income in first few years.

FOR SELLERS AND BUILDERS

Sellers can maintain their home price while still offering a competitive advantage.
Gives "like" properties an edge by creating affordability and desirability through lower rate.
Price Integrity: Builders can offer tremendous value by buying down the rate instead of discounting the home leading to unhappy homebuyers from previous sales.

Who Pays for a Buydown?

Typically the seller or the builder will pay for the cost as an incentive to the buydown. In some cases the buyer may pay for their own buydown. The buyer can pay also through the qualification process minimizing the need for out of pocket expenses. The cost of the buydown is simply the amount saved by the buydown.

Example: $300,000 Loan, 30 Year Fixed with a 2-1 buydown Fully Amortized rate of 7.125%.

Note rate 7.125% Payment = $2,021 (Full Payment)

First 12 months Payment at 5.125% = $1,633 (Monthly Saving $338; Annual Savings= $4,656)
Months 13-24 Payment at 6.125% = $1,823 (Monthly Savings $198; Annual Savings=$2,376)
Months 25-36+ * Payment at 7.125 = $2,021 (no monthly or annual savings)

* Interest rate remains the same for the duration of the fixed rate term. For example on a 30 year fixed rate months 26-360 will be 7.125%. However on a 5 year fixed ARM months 26 through 60 will be fixed at 7.125% with 61 on subject to an ARM Product.

The total amount of the buydown is $4,656 + $2,376 (first 24 months savings) = $7,032. Also note that a seller contribution is capped between 2-6% depending on the property type and financing structure. The buydown is paid at closing and can be paid by the borrower or interested third party. A interested third party is anyone who has a financial interest in the property. Common interested third parties include Property Seller, Builder, Developer, Real Estate agent or broker.

FOR MORE INFORMATION PLEASE CONTACT ME AT andrew_clemente@countrywide.com. Countrywide has a number of buydown programs I would be happy to help qualify your borrowers or offer as an option for your sellers to maintain price intergrity.

You want to sell Countrywide's REOs?

Andrew Clemente - Mortgages Made Easy, Inc — Sun, 16 Sep 2007 01:18:31 -0500

I have had many Realtors ask about getting on the Countrywide's ("CW") REO list. I am also being open about the best ways to get on the list. Keep in mind we are not making it easy. I decided to do some more digging. I asked agents, many who have been approved for years how they got on our list. Well this is how!

This advice is in additions to my points before. ( Read my previous Blog: COUNTRYWIDE REO PROGRAM ) . Prior to this foreclosure boom what the Mitigation Division would do is find agents that worked on previous transactions. For example: A property is listed by an approved Realtor agent for CW. You go out shopping with your client and this listing happens to be the one for your client. You realize this is going to be a difficult transaction so you just happen to know a Countrywide Loan agent. You get your client approved through this CW agent. It turns out to be a difficult process but you do ok thanks to the help of your CW loan agent. At this time (remember prior to the Foreclosure boom) there are very few agents selling REOs. So the CW mitigation team actively seeks new talent. You did well so they call you up. You take on the task and now your on CWs Approved REO list.

Now in today's market the mitigation dept. is swamped. They are coming to look for Realtors. They are relying on us, the local CW loan agent. So think about this. You have buyers, why not show them a few CW REOs that are for sale and use a Countrywide agent (like myself if you are local to me) and after awhile when we have done a few loans together (hopefully short-sales, REOs, and standard business) I can recommend you to management who will be happy because you are giving his agent business through an established partnership. Also hopefully by the luck of your buyers preferences we sell a few REOs or short-sales and get your feet wet. Without previous experience and an already established relationship between a CW loan agent I think this is your best foot forward.

So You want to do REOs!

Andrew Clemente - Mortgages Made Easy, Inc — Sun, 16 Sep 2007 01:14:52 -0500

ANAHEIM HILLS: San Antonio's Fiesta Days

Andrew Clemente - Mortgages Made Easy, Inc — Sat, 15 Sep 2007 03:30:43 -0500

San Antonio's Catholic Church in Anaheim Hills is celebrating 30 Years. Each year around the 2nd - 3rd week of September the church holds its Fiesta Days. It is always a fun filled weekend that all member's of the community are invited to experience. A carnival setting includes rides for kids of all ages. Parking is easy, either on the street or the parking lot of Hephatha Lutheran Church for a small fee ($5 previous years).

Activities Include: A Silent Auction with an opportunity to win a raffle for a $2,000.00 Diamond; Raffle tickets are $10 each courtesy of Anaheim Hills Jewelry & Coin Mart (Map), mini coasters, food and beverage, entertainment and much more!

LOCATION: SanAntonio de Padua Catholic Church.

5800 E. Santa Ana Canyon Road. Anaheim Hills, CA 92807

Friday September 14, 2007 between 5:30pm - 10pm
Saterday September 15, 2007 between 12 noon - 10pm
Sunday Septemebr 16, 2007 between 12 Noon - 8pm

Church website: http://www.rc.net/orange/san_antonio/

COUNTRYWIDE An Analogy of the smart businessman!

Andrew Clemente - Mortgages Made Easy, Inc — Fri, 14 Sep 2007 01:18:39 -0500

In a comment made regarding Author Bill Nazur's recent AR post I responded: 12 billion reasons to be thankful for Countrywide's Persistence Please visit Bill's Post.

Quote: "Maybe we should leave them A LOAN... " Barry Shapiro http://activerain.com/findcamarillohomes

Barry - Like that one! Please by all means I work for Countrywide "Leave me a Loan!" With the retreat of Wall St. to invest in our paper, is there an issue with our liquidity? Surely! Not if we were downsizing (and I don't mean trimming the fat) and reducing our position in the market. No we want to grow and not just double market share, TRIPLE!! Is the market facing turmoil and looking at overall reduction in sales? You don't need to be in the business to see what's going on. Everyone I know and don't know seem to have an opinion. I guess everyone watches TV, it's the "Opium of the Masses". Wouldn't a smart businessman with a lot of money and/or able to leverage money be capitalizing on market conditions? Why shouldn't Countrywide do the same? This is not a quote or internal source of information just an opinion: You'll start seeing Countrywide's smaller competition disappearing, maybe up to 60% of the marketplace with a few of the "Big Boys" left in the next few years.

OPS! Mortgage In Action!

Andrew Clemente - Mortgages Made Easy, Inc — Thu, 13 Sep 2007 12:58:18 -0500

At first I wondered "What am I going to write about here on Active Ran" The more I become involved the more inspiration I find from the masses. I was suppose to be a journalist according to all my skills tests. Somehow God left out the spelling gene when I was created. Well on to my mission!

OPS (Operations). In the lending world this is the behind the scenes processing of a borrower's request for either financing or refinancing a property. I will focus my article on Residential Lending with emphasis on a purchase transaction (for our Realtors friends). Let's follow the loan path, shall we.

First the loan agent has made contact with a potential borrower. The loan agent either fills out a Standard Application , also known as a 1003 or completes an online application (visit my website to see an example: www.andrewclemente.com under "Get Started:) . Either way the agent will have to input the data into a Lending Operations System ("LOS"). Believe it or not many big lenders will have to re-input the same data onto another system once the initial application is received (We'll save that gripe for another blog). Depending on the file type an automated approval or call for a manual decision may be created by the data the loan agent entered. Once the data has been completed the file is assigned to a loan processor. The loan processor's function is to co-ordinate with the all parties involved with the loan. This ranges from the borrower, the loan agent, title agent on throughout the process until the loan closes. Once everything has been carefully organized in the proper folders and in the LOS file it is sent to the underwriter for review. At this point the Underwriter reviews the details of the file. If there is an Automated Approval in the file then the task is to make sure the LOS matches that file and anything other loan conditions the underwriter feels necessary will be added. If a manual review is required, typically if the file presents greater risk factors, then the underwriter determines if the file meets guidelines and warrants the risk. Generally loans that carry greater risk are priced higher to offset that risk. Let's say for our example the file is approved it then gets "Called Out", or notification is sent to the loan agent and the file is sent back to the loan processor. Now its up to the loan agent to make sure all the conditions are met. Conditions are those items required by the underwriter to allow the file to be released for a loan signing and to fund as well. The two types of conditions are as follows, Prior to Docs ("PTD") and Prior to Funding ("PTF"). The loan processor will be responsible to make sure the loan agent and title and escrow send all the required conditions to move the file to closing. Not until all PTD are sent in can the borrower be permitted to sign loan documents. After the borrower signs all the remainig PTF must be collected in order for the lender to fund this loan into an escrow. Typically once all the PTDs are met the file is sent to a different processor known as a Closer/Funder. It is this persons job to send the loan documents off for loan signing and receive the documents back from escrow to insure all PTFs have been received and everything is on track. If everything is received and on track the funder (sometimes a different person from the closer) will release an electronic wire (or check) to escrow. At this point the file is ready to close and record. If the state or company table funds it will be done all in one day. In Southern California it is mostly done in 1-2 days. The Escrow company receives funds and prepares for the new mortgage(s) to record in the new owners name. In Orange County, CA there are same day recordings, however in Los Angeles and Riverside County recordings take place the next day after the request.

Now there are many variations of the process I described. There are Retail, Wholesale, Tablefundings, Attorney Based, Escrow. This is what typically takes place for larger lenders in Southern California. I hope you have enjoyed my article.

WHO COMES FIRST? THE CUSTOMER OR YOU?

Andrew Clemente - Mortgages Made Easy, Inc — Wed, 12 Sep 2007 21:16:10 -0500

I was reminded of several employees I had at one time after reading the following post: Caring Realtor vs. In It For The Money . After you become very proficient in your field, mortgage lending being my craft, you start to realize the potential to make a lot of money. Unfortunately there are so many ways to take advantage of unsuspecting borrowers and make a ton of money. I truly believe in being ethical and doing what's right for your customer and not simply because I could lose my license or face jail time. I have helped countless people out of products they knew very little about. If your in the lending business, how many people have you come across that were unaware they had a pre-payment penalty. Looking at previous HUD-1 statements in horror! Fortunately I have actually looked at some and requested they cancel within their 3 Day Right of Rescission regardless of doing business with me. Some loan agents are ruthless with how much they charge. Don't be fooled by Retail Branches with their zero point pricing. It's not just the mortgage brokers scraping every last cent from unsuspecting borrowers. Back to the employees and the other side of the coin.

What about the naive good guys? Charging so little. Giving the farm away. Don't get me wrong, it's their money. I was guilty of doing it myself mostly with family and friends. When I left my full-time job as Policy Analyst for Washington Mutual Bank, I realized I was now singing for my supper not just the dessert. My employees would sometimes even do the loans for free and then complain when they didn't have any money or felt they "gave,gave,gave" but never got back in return. I think the bottom line is this: Do a GREAT JOB for your clients, make them feel secure with the job your doing for them and that's the biggest value they can appreciate. Wise investors in real estate know it's better to pay a fair commission than take a bargin that may come back to haunt you. And smart loan agents, even Realtors know to charge what fair because someday (maybe today) business won't be as good. How will you be able to put money away to save for a rainy day if you never have the money to do so.

COUNTRYWIDE"S REO PROGRAM

Andrew Clemente - Mortgages Made Easy, Inc — Tue, 11 Sep 2007 16:38:00 -0500

A number of you have inquired about becoming an approved Realtor/Broker to list and sell Countrywide's Foreclosures. In my BLOG response (below: Countrywide's Approval Procees) I mention it is a 3 part process.

You are recommended by a Countrywide Retail Home Loan Consultant (like myself)
The Retail Manager reviews a provided Resume, Marketing Plan, available capital, and will likely want to meet the Realtor Broker and potential staff. If all criteria and qualifications are met the manager will submit a recommendation to Regional Manager.
Regional Manager reviews and submits to Countrywide's Real Estate Mitigation ("REM") for approval.

At this point a telephone interview will be set up and an e-mail will go out with their decision.

I stressed that this is a 3 part and also each part is seeking to benefit from the relationship. Firstly the Countrywide agent wants to do loan (Foreclosures and standard loans; either way we get paid). Second the managers want to be profitable and look good. They are concerned about building strong agents and increasing numer of units. Lastly the REM wants to minimize losses.

With the wave of short-sale and foreclosure increases and the media explosion the REM is getting swamped. They want to maintain existing relations with experienced Realtors who can be successful at selling the pipeline. With this in mind the REM is concerned about saturating any one area. With qualified agents receiving 10-15+ listings opening the agent flood gates could decrease a successful agents listings to 1-5 thus minimizing their desire to maintain the relationship. OK now for my wake up call. Management wants to control the numbered of approved Realtors to those that can increase office units and production. With this in mind agents not only have to be experienced but have to be providing Home Loan Consultants standard channel business already. Here's the hard part, many Top Producing Realtors (which is what managers want) do not have the REO experience. Some that are doing well in today's market do not care to enter this niche.

If my existing partners are experienced in REOs and are sending me business I can recommend them. The bolder solution is to ask you the Realtor's that want to do business in this niche to call me, get to know me, and send me business before you are approved, as long as you also carry the REO experience. My solution is simple but comes off arrogant and is not my intent. I pride myself in earning your business, but as management would prefer it you have to be established with me first and already sending me, the loan agent business.

Do I like asking in this nature? No! What choice do I have if you want me to get you approved? I will say I am an expert in my craft and beyond honest in my practice. You will not be disappointed. What both the REM and management want to avoid is to stimulate a Realtor's career that is burning out because of lack of business. Naturally when the Foreclosure market dies down business relationships will be stronger and in place if the agent could stand on his/her own prior to receiving our listings. Your thoughts?

COUNTRYWIDE: AVOIDING FORECLOSURES

COUNTRYWIDE'S REO APPROVAL PROCESS

COUNTRYWIDE REO PROGRAM

Andrew Clemente - Mortgages Made Easy, Inc — Tue, 11 Sep 2007 16:36:21 -0500

You are recommended by a Countrywide Retail Home Loan Consultant (like myself)
The Retail Manager reviews a provided Resume, Marketing Plan, available capital, and will likely want to meet the Realtor Broker and potential staff. If all criteria and qualifications are met the manager will submit a recommendation to Regional Manager.
Regional Manager reviews and submits to Countrywide's Real Estate Mitigation ("REM") for approval.

At this point a telephone interview will be set up and an e-mail will go out with their decision.

COUNTRYWIDE: AVOIDING FORECLOSURES

http://activerain.com/blogsview/197051/COUNTRYWIDE-AVOIDING-FORECLOSURES

COUNTRYWIDE'S REO APPROVAL PROCESS

COUNTRYWIDE: AVOIDING FORECLOSURES

Andrew Clemente - Mortgages Made Easy, Inc — Fri, 07 Sep 2007 11:27:47 -0500

Here is some Countrywide information I have been permittedto share with all of you. :

Avoiding Foreclosures:

An Overview of Countrywide's Homeownership Preservation Programs

At Countrywide, we take great pride in helping to put people in homes of their own. We also work diligently to keep hard-working families in their homes should they experience difficulty making their payments. The reasons people suffer financial setbacks are as varied as the people themselves. But whatever the cause, Countrywide is there to help.

Countrywide reaches out to customers whose home loan payments are late in a variety of ways, including:

•· Phone Counseling Teams. We employ dedicated teams of trained counselors, available by phone, to assist homeowners who have fallen behind on monthly payments. The teams contact customers and ask if they can be of assistance. These specialists then work closely with homeowners, explaining options available to save their home.

•· Friendly, Personalized Resource Mailings. Countrywide recognizes that homeowners are sometimes reluctant to contact a lender when payments are in arrears. We try to make this process open and respectable. For example, we have sent videotapes and postcards letting our customers know that we are flexible and care about keeping them in their homes.

•· Counselors in Communities. Countrywide extends its outreach to distressed homeowners in their own communities. Small workout teams of counselors travel to Countrywide branch offices to meet face-to-face with homeowners who need their help. This effort, launched in 1999, has assisted hundreds of homeowners who were facing financial difficulties.

Loan Workout Options: We believe it's never too late to help someone in distress. The options available vary on a case-by-case basis but include:

•· Forbearance -- The borrower can enter into a formal repayment plan to reinstate the loan by suspending or reducing the payments until the borrower recovers from the financial setback.

•· Modification -- This is a permanent change in one or more of the borrower's loan terms to get the payment down to an amount that is affordable. Methods include changing the loan's interest rate, extending the time available to repay, or re-amortizing the loan balance.

•· Deed in Lieu of Foreclosure -- If it becomes evident that the borrower cannot dig out from under financial woes and keep their home, this option can enable a borrower to voluntarily deed the property back to the mortgage holder in exchange for a release from obligations under the mortgage. This avoids the costliness and credit damage of foreclosure.

•· Short Sale -- Also known as a short payoff, this workout option is sometimes available when property values have declined since the borrower took out the mortgage. It can allow the owner to sell for less than the full amount owed on the loan, and relieves the burden of paying back the difference.

Preserving Homeownership: Customer Success Stories

At Countrywide, helping customers sustain homeownership is as important as helping them achieve the dream of homeownership. The Home Retention Division and its HOPE Team actively assist borrowers who are having difficulties making their monthly payments. This year, as of July 2007, Countrywide has successfully helped 35,000 customers find solutions to help them avoid foreclosure.

Below are some examples of the solutions the Countrywide HOPE Team employs each day to help customers:

•Ø One family moved into the home they purchased only to discover that the previous owner had not disclosed that the property contained mold. Members of the family became ill with mold-related conditions, and unexpected medical costs left them temporarily unable to cover their mortgage payments. Countrywide was able to offer a rolling 90-day forbearance to allow the family time to get back on their feet. Their case will continue to be evaluated.

•Ø As parents of children who suffer from a rare eye cancer, one borrower family was facing financial difficulties. The mother is the care provider for the children and is unable to work outside the home, and the father's business was affected by hurricanes. After evaluating their account, Countrywide was able to modify their 10.875% adjustable rate loan to a fixed rate loan of 8.700%.

•Ø A borrower's son and her husband both passed away. In addition to dealing with her devastating losses, she was facing financial problems covering the costs of both funerals. She accepted Countrywide's offer of a loan modification that capitalized five delinquent payments.

•Ø One borrower's son became very ill in December 2006. In order to properly care for her son, she needed to be home more and could not work full time. The borrower was the only one contributing financially to the household; she was facing mounting medical bills; and she had no way to bring in additional income. She accepted Countrywide's offer of a loan modification that capitalized six delinquent payments.

These stories are just a few examples of the many ways that our Home Retention Division and HOPE Team members have a powerful impact -- fulfilling Countrywide's mission to help customers achieve and preserve the dream of homeownership.

COUNTRYWIDES REO APPROVAL PROCESS

Andrew Clemente - Mortgages Made Easy, Inc — Fri, 07 Sep 2007 02:32:38 -0500

THIS IS A RESPONSE TO JOHN KIM OF FULLERTON, CA. It had useful information so I decided to post it as a BLOG. Original Post can be found at: http://activerain.com/blogsview/196682/Countrywide-s-Bank-Appraisal

John,

I felt a tense mixed feeling from the room myself I won't say otherwise. What I try to convey to agents I speak with is there are 3 parts to the model. Not all planned. The deliberate part was opening up the Short-Sales and Foreclosures to Countrywide's Retail offices. It makes sense in anticipation of the increased volume of defaults. In essence it allows CW Retail Origination to pick up business and establish new business relations. Also it acts as a kind of processing unit for the Real Estate Mitigation dept. ("REM") to ease the overflow. I will be the first to admit its not easy to get Realtors on our approved list. Once on though agents are receiving on average 10-15 foreclosure listings. Why wouldn't they want to be on it? It takes previous REO experience, assets in the bank to act as a property manager, a marketing plan, and convincing the REM why you should be on the list. What I mean by 3 parts is first Home Loan Consultants (Retail) want business, two, their branch managers want the numbers (so your chances in their eyes decrease if your not producing) and 3. The REM wants RE Brokers experienced in foreclosures (many agents, even top producers may not have been in the market long enough for that).

Of course for most people in the room that day, including our own CW Home Loan Consultants do not have the experience. Most agent see the path this market is taking and want on the band wagon. What makes me different? EXPERIENCE. I worked for a Consumer Division of Transamerica Financial (1995-97). Loss Prevention where I would outsource short-sales and plan for foreclosure if need be. I have also Underwritten loans for Washington Mutual Bank with most of today's loan products. So I understand how some of these short-sale sellers are in over their heads. Also I have worked as a Realtor for a few years so I understand the picture from a Realtor's perspective. Don't just wait for the next short-sale. If your broker is interested in making the most of this market and helping people at the same time let me know. If you have a few seasoned agents and I can get them on the list your office volume will increase and you'll have even greater job stability. Let me know what you think.

COUNTRYWIDE'S REO APPROVAL PROCESS

Andrew Clemente - Mortgages Made Easy, Inc — Fri, 07 Sep 2007 02:31:14 -0500

John,

COUNTRYWIDE'S REO APPROVAL PROCESS

Andrew Clemente - Mortgages Made Easy, Inc — Fri, 07 Sep 2007 02:28:47 -0500

John,

Of course for most people in the room that day, including our own CW Home Loan Consultants do NOT have the experience. Most agent see the path this market is taking and want on the band wagon. What makes me different? EXPERIENCE. I worked for a Consumer Division of Transamerica Financial (1995-97). Loss Prevention where I would outsource short-sales and plan for foreclosure if need be. I have also Underwritten loans for Washington Mutual Bank with most of today's loan products. So I understand how some of these short-sale sellers are in over their heads. Also I have worked as a Realtor for a few years so I understand the picture from a Realtor's perspective. Don't just wait for the next short-sale. If your broker is interested in making the most of this market and helping people at the same time let me know. If you have a few seasoned agents and I can get them on the list your office volume will increase and you'll have even greater job stability. Let me know what you think.

Nostalgic Yorba Linda

Andrew Clemente - Mortgages Made Easy, Inc — Fri, 07 Sep 2007 01:45:36 -0500

The landscape has changed since I first moved there in 1983. At 15 I attended the local high-school; Esperanza High School (http://www.esperanzahs.com/) The school itself is actually located in nearby Anaheim. The average home price was $150,000.00 for a 2200 sqft. house. Larger homes were uncommon. East Lake Village (http://www.elvca.com/) , a state of the art master planned community was fairly new and my friends and I would ride our bikes to the lumber area (where the manmade lake itself sits now) The town was very peaceful. There was a few things for teenagers to do. We always wanted a movie theater which would never come to be. We used to blame the council members for keeping out movie theaters and places for kids to hang out. Now that I am older I am glad they did. There was a small mini-mart you could drive up to on the corner of Imperial and Yorba Linda. A concept that thrived in the 50s. An El Pollo Loco stands there now with the famous Casa De Liqueur, relocated from where a Joann's (Crafts Store), Blockbuster Video, and the Blue Agave (delicious Mexican food) now stands. In 1984 the first Little Ceasar's Pizza entered the local shop accross the street from St. Martins Catholic Church (http://www.smdpyl.org/) It was my first job. For some reason I stayed in that complex. Von's was also there which would later become a Chick's Sporting Goods, and now is a Trader Joe's. Vons is now in the East Lake Village Shopping Center and Chick's relocated to Savi Ranch (border of Yorba Linda and Anaheim Hills). I left the pizza place to work for The House of Video owned by a long time resident Nathen Moisoff. It was the very first Video Store in Yorba Linda. It was back in the day's when you had a fee based membership and non-membership rates. After that in 1986 I worked right next door (remember all in the same center) at Thrifty's Drug Store (now a Rite Aid) Each scoop was only 25 cents. They had the old fashioned push button registers. The church mentioned above should be holding it's annual "October Fest" this month. It's been a tradition for longer than I entered town. I will post an update to insure it still held this year as there is major construction being done. Yorba Linda has certainly changed much. When I first moved there it was obviously a small town getting ready to explode with growth and development. You could see the much older locals hanging around Main Street. A few years later 1990 I worked at the local Mimi's Cafe (http://www.mimiscafe.com/) You could still talk to the locals that gathered at the counter. There was a man by the name of Newt that would recall the days when Yorba Linda was all orange groves and when the locals first saw the Model T enter the scene. Yorba Linda was known for being the birthplace of Richard Nixon. Growth really took off when the Richard Nixon Library was built (http://www.nixonfoundation.org/). It was and still is a great place to live.

Mortgage Market Review

Andrew Clemente - Mortgages Made Easy, Inc — Wed, 05 Sep 2007 22:02:54 -0500

Several factors have added up to increased pressure on the market.

Early today Citi lowered earnings estimates on several Wall Street firms.
Pending sales of existing U.S. homes decreased 12% in July, the lowest since September 2001 (NAR)
The release of the Fed's (BEIGE BOOK) has been vague at best.

Most of the primary Bank/Lenders have reported tightening of lending guidelines which is taking it's toll on residential real estate. President Bush and Fed. Chairman Bernake finally acknowledged the crunch the real estate industy has seen the last 12-18 months. While on the positive side the U.S. 10 Year Note was up 21/32 lowering it's yield to 4.46% the lowest point this year. Highlights this week will be the jobless report http://www.dol.gov/opa/media/press/eta/ui/current.htm

COUNTRYWIDE STOCK