Mortgage Insights by Andrew Clemente

REO INVESTORS ALSO WANT CRUDE OIL, JET FUEL, GOLD, GOLD BULLION, DIAMONDS.

Andrew Clemente (United American Mortgage Corporation) — Fri, 11 Sep 2009 01:50:52 -0700

Whats truly amazing is that once you work your way up to the higher ranks of BULK REO you are introduced to the most interesting investors. These investors have an appetite for making money. Several colleagues of mine in BULK REO have been working some time with establishing relations and formulating contracts similar to BULK REO. The game is the same but the product can be GOLD, GOLD DUST, OIL (in it's many stages). I myself have stayed away until recent. In BULK REO I entered almost 2 years ago, rather I stumbled into. Yet I had years of experience in Real Estate, even outsourcing foreclosures. My business style and honest, straight forward practice has opened doors into other avenues. The reason I feel is the lack of trust and the breath of fresh air an honest businessman brings to the table. I never thought I would be given the opportunity to sell crude oil, Gold Bullion, and believe it or not cell phones (in bulk). I thank those that have opened these doors for me. Those in the BULK REO business: If you thought these deals were hard to bring close you haven't seen anything yet. At the end of the day it's FUN!!!! This is truly a fun ride!

For more information on both Real Estate BULK REO or non-Real Estate Investments contact me at:

mme2000b@yahoo.com

BULK SALE FORECLOSURES

Andrew Clemente (United American Mortgage Corporation) — Sat, 14 Mar 2009 03:34:16 -0700

The truth is BULK REO does exist! For most it is like trying to find a needle in a haystack. What makes it difficult when you are really doing it is to establish trust. Many true investor have been lead down the road nowhere. Most of the actual sellers are clearinghouses because the banks do not want to move REOs in BULK direct to the investor/consumer. The first strategy is to localize and capture the highest price through Realtors that are able to perform. When this doesn't work they may consider selling in bulk. I encourage you should you stumble on this blog to try, just be upfront. Work indirect with someone who you can confirm is working in BULK REOs. It is a hard thing to do. Soon I will be publishing with consent testimonials and maybe grant direct contact with my most solid buyers. It is my hope in the short time this arena exists in its magnitude to set a standard for an ethical process model. You are welcomed to read my blogs for tips and advice. I have become overwelmed lately so call or e-mail only if you are an investor or investors rep. looking to buy.

Thank you and Goodluck!
Andrew Clemente
mme2000b@yahoo.com
cell: 949-677-6394

COUNTRYWIDE REO BULK SALE PROCESS

Andrew Clemente (United American Mortgage Corporation) — Mon, 23 Feb 2009 08:26:12 -0800

Sample Example Letter of Intent (LOI) Components

LOI Components. These are the components we highly recommend a buyer use to communicate their order in detail to the REO Seller.
1. Dollar Order Amount. Example $USD 20 Million.
2. Offering Price. Based on availability and order amount Buyer offers to pay a "realistic" percentage of the "current value" of property based on Broker Price Opinion ( BPO ) held by the REO seller. BPOs are typically less than 30 days old. Pricing is stated as a range of BPO value. Based upon completed orders Valor can provide current pricing trends.
3. BPO Delivery Range. Actual BPO value range of the total property portfolio being purchased. Such as $30.7 Million to $40 Million ($0.50 to $0.65 cents on the dollar equivalent)
4. Property Type. Example: single family residential.
5. Price Range ( LTV ). This is the range of pricing based on current BPO value that the Buyer is targeting for individual property value. Buyer will be paying a percentage of this value such as $0.50 to $0.65 cents on the dollar or 50% to 65 % LTV of current BPO .
6. Property Condition. Identify the condition of property you are willing to accept. Example: Minor cosmetic to light rehab.
7. Occupancy. Provide the occupancy requirements for the property portfolio.
8. Title. Buyer states how they would like to accept title.
9. Proof of Funds. Buyer states the type of funds that will be utilized: Cash, BLOC, etc.
10. Requested Geographical Location. List the geographical locations and percentages of properties in each location to be purchased. Use "Exhibits" if necessary to detail locations.
11. TAPE Delivery Time Requested. Buyer states how soon they need the tape, typically between 24 to 72 hours. However, all orders are filled subject to availability.
12. Initial TAPE Review Period Requested. Typically 24 to 72 hours. This represents the Buyer's "free look" period.
13. Refundable Deposit: Sometimes requested by Financial Institution or Government Sponsored Entity when beginning "due diligence" (takes the property off the market exclusively for Buyer)
14. Due Diligence Period: Typically - residential a 3 to 7 days; commercial 20 days
15. Closing: Two calendar days after the expiration of the due diligence period the full amount of the deposit becomes non refundable. Closing to be coordinated with title & escrow.
16. Title: To be determined by the Buyer
17. Escrow Company. To be determined by the Buyer. Contact Information A Must!
18. Commission: Buyer shall pay 3% (or 4% for orders under $30 Million)
19. Closing Paragraph. This is a brief paragraph describing your purchase.

Sample REO Bulk Purchase Process (Countrywide/ Bank of America )

The Buyer submits a current letter of Intent (LOI) and Proof of Funds (POF).

The LOI is made out directly to the bank: Countrywide/ Bank of America.
- Contains a detailed description of the purchase request
- Includes geographical description of properties wanted by State, County, City, and Zip Code
The POF is a current bank letter from the buyer's bank to Countrywide/ Bank of America:
- Stating the buyer has cash/ cash equivalents in the amount of the LOI.
  - Is submitted with either a tear sheet or bank statement
  - If a Letter of Credit provides for conditions to close an REO portfolio
  - Is signed by a bank officer
- Provides Countrywide/ Bank of America with the buyer's bank contact information
- Provides permission for a designated Countrywide/ Bank of America employee (to be provided after the buyer returns NCND & NCND Fee Addendum) to call the bank to verify funds.

The Buyer typically receives the REO portfolio (TAPE) from Countrywide/ Bank of America within 72 hours.

Buyer reviews TAPE (Buyer typically receives a 24 to 48 hour "free look" period.)
- The TAPE will be accepted/declined in total (the properties will not be "cherry picked").
Buyer and Seller enter negotiations and agree to a enter into a purchase contract
Buyer and Seller open escrow (Buyer's Choice). Typically a 10% refundable deposit is made at the open of escrow held during the due diligence period. At the completion of the due diligence period the Buyer accepts or declines the properties (again, in total) and the deposit becomes non-refundable. When the Buyer proceeds with the TAPE purchase, the transfer of money and property occur in the Buyer's escrow.

Once the Buyer's initial transaction is completed with Countrywide/ Bank of America, the Buyer can return to the Seller as often as their business model and market conditions allow.

Importantly, there are several dozen sources for REO residential and commercial properties to complete a buyer's order as needed. We provide our buyers the opportunity to purchase in order sizes from $5 Million to $1.5 Billion direct to platform.

We hope this protocol statement enriches your understanding of our REO bulk purchase process. There is an abundant amount of REO properties available. However, due to current banking conditions a buyer must be patient - all the banks are in crisis management and many are under audit or preparing for audit. Delay's can occur - sometimes a platform will temporarily shut down due to funding, reorganizations, or emergency company meetings. Additionally, LOI accumulation can temporarily be placed on hold due to an audit requirement or slowed due to market conditions. However, our professionals are actively managing information and working diligently with REO Sellers to provide our clients with real product, unparallel options and successful closing results

BULK REO SAMPLE LOI

Andrew Clemente (United American Mortgage Corporation) — Mon, 23 Feb 2009 08:21:20 -0800

Sample Example Letter of Intent (LOI) Components

LOI Components. These are the components we highly recommend a buyer use to communicate their order in detail to the REO Seller.
1. Dollar Order Amount. Example $USD 20 Million.
2. Offering Price. Based on availability and order amount Buyer offers to pay a "realistic" percentage of the "current value" of property based on Broker Price Opinion ( BPO ) held by the REO seller. BPOs are typically less than 30 days old. Pricing is stated as a range of BPO value. Based upon completed orders Valor can provide current pricing trends.
3. BPO Delivery Range. Actual BPO value range of the total property portfolio being purchased. Such as $30.7 Million to $40 Million ($0.50 to $0.65 cents on the dollar equivalent)
4. Property Type. Example: single family residential.
5. Price Range ( LTV ). This is the range of pricing based on current BPO value that the Buyer is targeting for individual property value. Buyer will be paying a percentage of this value such as $0.50 to $0.65 cents on the dollar or 50% to 65 % LTV of current BPO .
6. Property Condition. Identify the condition of property you are willing to accept. Example: Minor cosmetic to light rehab.
7. Occupancy. Provide the occupancy requirements for the property portfolio.
8. Title. Buyer states how they would like to accept title.
9. Proof of Funds. Buyer states the type of funds that will be utilized: Cash, BLOC, etc.
10. Requested Geographical Location. List the geographical locations and percentages of properties in each location to be purchased. Use "Exhibits" if necessary to detail locations.
11. TAPE Delivery Time Requested. Buyer states how soon they need the tape, typically between 24 to 72 hours. However, all orders are filled subject to availability.
12. Initial TAPE Review Period Requested. Typically 24 to 72 hours. This represents the Buyer's "free look" period.
13. Refundable Deposit: Sometimes requested by Financial Institution or Government Sponsored Entity when beginning "due diligence" (takes the property off the market exclusively for Buyer)
14. Due Diligence Period: Typically - residential a 3 to 7 days; commercial 20 days
15. Closing: Two calendar days after the expiration of the due diligence period the full amount of the deposit becomes non refundable. Closing to be coordinated with title & escrow.
16. Title: To be determined by the Buyer
17. Escrow Company. To be determined by the Buyer. Contact Information A Must!
18. Commission: Buyer shall pay 3% (or 4% for orders under $30 Million)
19. Closing Paragraph. This is a brief paragraph describing your purchase.

Sample REO Bulk Purchase Process (Countrywide/ Bank of America )

The Buyer submits a current letter of Intent (LOI) and Proof of Funds (POF).

The LOI is made out directly to the bank: Countrywide/ Bank of America.
- Contains a detailed description of the purchase request
- Includes geographical description of properties wanted by State, County, City, and Zip Code
The POF is a current bank letter from the buyer's bank to Countrywide/ Bank of America:
- Stating the buyer has cash/ cash equivalents in the amount of the LOI.
  - Is submitted with either a tear sheet or bank statement
  - If a Letter of Credit provides for conditions to close an REO portfolio
  - Is signed by a bank officer
- Provides Countrywide/ Bank of America with the buyer's bank contact information
- Provides permission for a designated Countrywide/ Bank of America employee (to be provided after the buyer returns NCND & NCND Fee Addendum) to call the bank to verify funds.

The Buyer typically receives the REO portfolio (TAPE) from Countrywide/ Bank of America within 72 hours.

Buyer reviews TAPE (Buyer typically receives a 24 to 48 hour "free look" period.)
- The TAPE will be accepted/declined in total (the properties will not be "cherry picked").
Buyer and Seller enter negotiations and agree to a enter into a purchase contract
Buyer and Seller open escrow (Buyer's Choice). Typically a 10% refundable deposit is made at the open of escrow held during the due diligence period. At the completion of the due diligence period the Buyer accepts or declines the properties (again, in total) and the deposit becomes non-refundable. When the Buyer proceeds with the TAPE purchase, the transfer of money and property occur in the Buyer's escrow.

Once the Buyer's initial transaction is completed with Countrywide/ Bank of America, the Buyer can return to the Seller as often as their business model and market conditions allow.

CALIFORNIA LOANS and REOS

Andrew Clemente (United American Mortgage Corporation) — Sun, 01 Feb 2009 07:38:51 -0800

I have posted a few blogs and I have come up with a great idea! I am likely foolish for posting this and I am likely not the first to think of it. Many of you can agree the Foreclosures especially in areas like Sacramento, Riverside, Las Vegas, and Florida to name a few are increasing drastically. While loans have changed and we are seeing a refinance boom for traditional conforming limits many people can not afford nor qualify. Especially in higher markets. I have seen many properties that require jumbo financing just sit for months. So what's new? It's been like this for the last few years. Many of you Realtors have pounded on my e-mail (assuming I still was employed with Countrywide) harder than any spam that I get. You are trying hard to get "In" to be approved with lenders like Countrywide because buyers want REOs. So who's making good money? Either the Superstar Realtors who always make great money, but face it not as much as they used to, or the Realtors approved to sell REOs. Well in the BULK SALES we help investors buy REOs from the banks between 40-50% on average. Some resell for 50-70% and others are Brokers buying for the resell at less than market 70-90%. Would you like to sell these? Unless of course they are providing them to their own agents why not create a sub-market for our BULK Process. What do you think? Would you work for me or an associate if I can arrange some business for you?? In mortgage ops the latest software always required a work-around. If the banks won't approve you why not!

Andrew T. Clemente

949-677-6394 Cell

mme2000b@yahoo.com

BULK FORECLOSURES

Andrew Clemente (United American Mortgage Corporation) — Sun, 11 Jan 2009 05:45:01 -0800

I wrote an article regarding BULK REO SALES ( http://activerain.com/blogsview/344381/NO-BULK-REO-SALES) and the rest is history.

With the BULK SALES You find four types. People with money, People who know people with money, REO SELLERS, and People who know REO SELLERS.

For awhile I just knew people with money and knew people who knew REO SELLERS. Now regardless of what happens, this is fun I will admit. I recently flew back east and met a great guy has found success in this endeavor. I have met many people and have been told I am somewhat of a celebrity in this arena. Who would have thought?

FOR BULK SELLERS ONLY: Should you have stumpled accross this I suggest the following.

1. I KNOW SOMEONE WITH MONEY INTERESTED IN REOS: Don't waste time trying being greedy! Stop trying to get half or multiple points. Your not in the game and may never get in. Unless you know someone with REALLY DEEP POCKETS that trusts you chances are you only get ONE CRACK at this. Take a substantial finders fee (more than you may ever see) and let the BULK SALE VETS move the TAPE.

2. INVESTORS (PEOPLE WITH MONEY): Be cautious! There are so many frauds and speculators you may waste your time and the opportunity will either pass you buy or you won't know it if you see it. You shouldn't give anything more than a scrubbed asset account or evidence of funds. By scrubbed I mean remove account number and name/address info. Also state what you are looking for. (ie: Acceptable Regions, Investment amount, and what is an acceptable percentage range (30%, 40%, .50 per $) The assets or scrubbed POF is then presented to Seller's.

3. REO SELLERS: Its simple these people are the banks, lenders, investors with large property holdings. They call the shots. Chances are unless they are comfortable working with an individual they may allow a Realtor to sell a few REOs. BULK is typically reserved for clearing houses. The clearing houses are the ones who distribute. (aka: sellers mandates, sellers agent)

4. PEOPLE WHO KNOW BULK SELLERS: These people typically are insiders or have been speaking with friends who open their mouths. I have seen employees working in an REO Dept. or Loss Mitigation Dept. for larger companies who are trying to make a fast buck with the info they know (shame on them). Be careful of these folk, most do not know what they are doing, but think they do. However they do come with valuable info if they can lead you to the source. This means nothing unless the REAL seller chooses to work with you.

GOODLUCK!!!

ANDREW T. CLEMENTE

mme2000b@yahoo.com

COUNTRYWIDE REO STORY

Andrew Clemente (United American Mortgage Corporation) — Sun, 11 Jan 2009 05:30:03 -0800

Just wanted to drop a line with regards to my research since this all began in July 2007. As many of you have seen I was/am a Mortgage Broker. Back around May 2007 I started noticing the trend with regards to Direct Lenders vs. Mortgage Brokers. The lenders were looking to minimize costs, many wholesale operations were either being consolidated or eliminated. Also the guidelines were less friendly to wholesale. Even the rates favored Retail Lending. I decided that if I couldn't beat them I would join them. I started working for Countrywide Home Loans ("CHL") under a great manager. We focused on distributing and training product and knowledge of CHL REOs / Shortsales. I tried to get as many Realtors approved but things started going downhill too fast. CHL changed the terms and soon only those with big pipelines and already approved with CHL would get REOs. How could a new agent recruit Realtors with empty promises. It just got tougher. We already knew as an industry which direction things were heading and then the sub-prime crisis unfolded. Wholesale was now almost eliminated and the damage now effected the "Big Guys". Being an honorable person I was to refrain from working as a Realtor so a choice had to be made: Focus on the dying loan industry with empty promises or go back to being a broker, but also sell property. So I left CHL and picked up some short sales and specialized Real Estate.

I wrote an article regarding BULK REO SALES ( http://activerain.com/blogsview/344381/NO-BULK-REO-SALES) and the rest is history.

With the BULK SALES You find four types. People with money, People who know people with money, REO SELLERS, and People who know REO SELLERS.

FOR BULK SALES ONLY: Should you have stumpled accross this I suggest the following.

RESIGNED FROM COUNTRYWIDE

Andrew Clemente (United American Mortgage Corporation) — Sat, 19 Jan 2008 02:33:30 -0800

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!

UPDATED STORY 1/2009 : http://activerain.com/blogsview/875972/COUNTRYWIDE-REO-STORY

COUNTRYWIDE REO UPDATE

Andrew Clemente (United American Mortgage Corporation) — Fri, 02 Nov 2007 17:38:28 -0700

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 (United American Mortgage Corporation) — Thu, 01 Nov 2007 19:11:01 -0700

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 (United American Mortgage Corporation) — Mon, 22 Oct 2007 16:14:35 -0700

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 (United American Mortgage Corporation) — Tue, 25 Sep 2007 11:15:35 -0700

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 (United American Mortgage Corporation) — Sat, 22 Sep 2007 21:54:10 -0700

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 (United American Mortgage Corporation) — Thu, 20 Sep 2007 01:35:11 -0700

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 (United American Mortgage Corporation) — Thu, 20 Sep 2007 00:39:53 -0700

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 (United American Mortgage Corporation) — Mon, 17 Sep 2007 19:43:56 -0700

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 (United American Mortgage Corporation) — Sun, 16 Sep 2007 17:47:30 -0700

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 (United American Mortgage Corporation) — Sun, 16 Sep 2007 01:18:31 -0700

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 (United American Mortgage Corporation) — Sun, 16 Sep 2007 01:14:52 -0700

ANAHEIM HILLS: San Antonio's Fiesta Days

Andrew Clemente (United American Mortgage Corporation) — Sat, 15 Sep 2007 03:30:43 -0700

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 (United American Mortgage Corporation) — Fri, 14 Sep 2007 01:18:39 -0700

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 (United American Mortgage Corporation) — Thu, 13 Sep 2007 12:58:18 -0700

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 (United American Mortgage Corporation) — Wed, 12 Sep 2007 21:16:10 -0700

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 (United American Mortgage Corporation) — Tue, 11 Sep 2007 16:38:00 -0700

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 (United American Mortgage Corporation) — Tue, 11 Sep 2007 16:36:21 -0700

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.

UPDATED LINK 2/2009: http://activerain.com/blogsview/948579/COUNTRYWIDE-REO-BULK-SALE-PROCESS

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

COUNTRYWIDE'S REO APPROVAL PROCESS