Bernie's Blog

Get $8,000 Towards Your New Home Purchase

Bernie Germani (New Key Lending) — Wed, 13 May 2009 12:05:27 -0500

Lakewood, California

This just in from The Federal Housing Administration Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a down-payment.

This is a huge step in the right direction!!!

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, remarks came in an address to several thousand Realtors^® gathered this morning at The Real Estate Summit: Advancing the U.S. Economy, a special daylong session at the Realtors^® Midyear Legislative Meetings & Trade Expo here.

Secretary Donovan said that important changes, which the National Association of Realtors^®has been calling for, will help consumers purchase a home. "We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down-payment," Donovan said. According to Donovan, the FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

Donovan said the Obama administration plans to further stabilize the housing market. "I do think we have some early signs hat the market overall is stabilizing," said Donovan. "Since January we've seen both home sales moving up and down around a relatively stable number and we are seeing the first signs that the rapid decline in home prices is starting to abate."

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said, "As the leading advocate for housing issues and home-ownership, NAR continues to take a leadership role in promoting ideas for improving our economy by stabilizing the housing and real estate markets. Today we have the best of the best to begin a dialogue, develop solutions and initiate action toward real estate and economic recovery."

There is a short window of opportunity here for you to use the 8,000 towards your down-payment, and this program could be removed at a moments notice. I have been mentioning on previous blogs the time is now to buy, well it is for sure the time to buy with the 8,000 going towards your down-payment. What are you waiting for???

Please call me ASAP 310-918-9102

Bernie Germani

www.socalhomesbybernie.com

www.calihomeloan4u.com

www.30secondhud14u.com

Home Seller Assist Program, What IS ALL THE HYPE ABOUT???

Bernie Germani (New Key Lending) — Mon, 02 Mar 2009 04:46:48 -0600

Home Seller Assist Program, so what is this program all about?

Do you know?

Frequently Asked Questions

What is Home Seller Assist?

Home Seller Assist is a program, which markets a seller financing option to homeowners. It includes two websites and training. You also are able to bring other people into the business through a website just like this one. You earn through both systems.

I'm from another country. Can I join Home Seller Assist?

Yes! Home Seller Assist welcomes members from all around the world. This system can be used from anywhere with the use of the internet and phone access. The seller financing is completed on homes in the US.

I'm a Real Estate Agent, is there a conflict of interest and can I legally earn on a note sale as well as my real estate commission?

Agents and Brokers have helped their clients using note buying for many years. Use our written disclosures with your client to insure proper and complete disclosure and you should have no problems in your state. We suggest you get approval from your broker before using the program.

Are there any hidden fees?

Absolutely not. There are no monthly fees either.

How and when do I get paid?

You get paid right after closing on your own sales and on sales from your team members. You get paid immediately and directly from one of our payment processors on Gold and Platinum sales.

Can I have more than one account?

Yes. You may have as many as you like, but you only need one.

Will I be able to see my referrals or change my details?

Yes. Just login to our members area anytime. You can view and email your entire team at once.

Do you provide support?

Yes. We provide unlimited customer support (within reason).

How long will this take to set up?

Just a quick payment from within your backoffice, and you're ready to start. Click the "Click and Try" it Button to instantly create your backoffice and make payment.

Do I need a domain or web hosting account?

No. Your site will appear on http://www.weprovidethecash.com/, with your ID to track your sales, so all payments go directly into your payment processor accounts. You simply promote your website to make sales.

Do I have to join all of the payment processors you offer?

No. If you only have one, your site will only show the one payment option when people get to the payment stage, however we recommend using at least 2. Each one is FREE to join. We have all the sign up links ready for you when you join.

Can I get a refund?

Your membership is non-refundable after 72 hours. All sales are final. The reason for this is due to the nature of our instant payments to our affiliates. We cannot refund money to you that has already been paid out to our affiliates. We never even handle that money - it is paid directly to our affiliates.

SEARCHING FOR REALTORS, MORTGAGE BROKERS, ENTREPRENEURS...AS a matter of fact anyone who is willing to get ahead in life and truly work at a business in the real estate industry, you need to take a look now, at what this business offers as we know most Realtors, and Mortgage Brokers are facing hard times.

PLEASE VISIT WWW.REOFUNDING4U.COM You will be glad you did!!!

OK,

WHAT IS THE DEAL WITH THIS SITE? DOES ANYONE KNOW FIRST HAND? I'm seeing advertising ALL OVER THE PLACE!!! WE Buy SHORT SALES/REO'S WITH NO MONEY DOWN OR CREDIT!!!!!!

AM I missing something here, or is this for real???? Please respond if you know, and only if you know..

Realtors, How are things working with your short sales?

Bernie Germani (New Key Lending) — Tue, 24 Feb 2009 02:43:29 -0600

Agents will commonly complain that:

1. Commissions get discounted by the lenders;
2. That they need an offer to send to the banks and do not have one;
3. That when they send the package without an offer and the bank doesn't want it;
4. That when they find a buyer, the short sale process takes too long and the buyer walks and
5. That it's a waste of time to negotiate when they should be promoting themselves and their properties

This is what I will do:

" I'll put in the offer if it meets my criteria
" I have a negotiator who will handle the negotiating
" Either I or my BPO agent will conduct the BPO appointment
" My private lender will provide funds for closing
" My title company will close both transactions

" I'll buy the house

The Agent's Role:
1) Do what good agents do well... Find deals and find buyers
2) I need a buyer's agent that can get involved in training the listing agent as to how we work. Get the leads, train the listing agent and get paid.

Please contact me and I will explain the whole process to make both of us profit, deal after deal after deal!!! We have a proven track record of getting escrow closed and you paid.

If you run across commerical deals(does not have to be in foreclosure either, just a seller that can not sell) PLEASE, PLEASE GET IN TOUCH WITH US.....

Regards,

Bernie Germani

email me at hsaincome4u@gmail.com

My thoughts on Fannie and Freddie, but information to get your buyers in a house NOW!!

Bernie Germani (New Key Lending) — Tue, 09 Sep 2008 02:10:22 -0500

I'm getting the feeling that this is about as much as can be done to stabilize our housing/credit markets. If taking over FNMA/FHLMC isn't enough to stabilize things, we're in for some really rough sailing.
Mortgage rates have reacted very favorably to the news so if you've got borrowers waiting for better rates, NOW is the time. As long as your borrowers are committed and value is solid,

I suggest get those files in and lock up that rate! Pricing always seems to swing on a pendulum with major news so I wouldn't be surprised to see rates inching back up tomorrow.

In regards to guidelines for FNMA/FHLMC products, it looks like 95 LTV is on its way out FOR A FEW BANKS and max to 90 LTV. As of today there is still coverage to 95, but it appears to be going away soon. Perhaps as early as October. Bottom line, super high LTV's are not here for long. (with the exception of FHA)

1. Hot Products -

Various Conforming 30 fixed
                   Rate             Price
                   5.500            99.632 (Chase)
5.625            100.071 (Chase)
5.750            100.555 (Countrywide)
                   5.875            101.004 (CitiMortgage)
                   6.000            101.321 (Countrywide)
                    (Purch, 417K, 80 LTV/CLTV, 720 fico, SFR, OO, 30 day, w/imps, as of 9/8/08; 2:12 pm PST)

Agency-Jumbo 30 fixed - Chase-FHLMC
                        Rate                 Price
                   5.625            99.859
                   5.750            100.249
                   5.875            100.589
                   6.000            100.856
                   6.125            101.210 (AmTrust-FNMA)
                   (Purch, 729K, 80 LTV/CLTV, 750 fico, SFR, OO, 30 day, w/imps, as of 9/8/08; 2:34pm PST)


Homecomings - GMAC
Homecomings Financial bailed out of the wholesale and retail markets last week, however GMAC (homecomings parent company) is still a strong player in the correspondent side.

Agency-Jumbo -
We've seen a couple investors moving to DU/DO findings for Agency-Jumbo products and it looks like everyone else will follow suit. Keep in mind, DTI is still maxed at 45%, but we will be able to follow DU recommendations for documentation.
CitiMortgage - now allows 2 unit properties on Agency-Jumbo product. Primary residency only, 6 months reserves. (manually underwritten only)

Disclosures -
Just to make sure you're aware, DRE now requires use of the following disclosures. (and these are NOT in Point)
·         When the loan being proposed to the borrower is a "traditional" loan product - i.e., a loan product that does not allow the borrower to defer repayment of principal or interest and the proposed loan: http://www.dre.cahwnet.gov/pdf_docs/forms/re882.pdf

·         When the loan being proposed to the borrower is a "nontraditional" loan product and is secured by a one to four unit residential property whether owner or non-owner occupied. Pursuant to Commissioner's Regulation 2842 a "nontraditional" loan product is "a loan that allows borrowers to defer repayment of principal or interest. http://www.dre.cahwnet.gov/pdf_docs/forms/re885.pdf

MI coverage -
MI companies are changing guidelines as often as lenders so order your MI certs as soon as you possibly can.   We will be happy to order the mortgage insurance coverage for you with a 1003/1008, credit & appraisal along with a written request for MI. Please also provide the program type and the document type. Keep in mind that if there are ANY changes to the loan terms after the initial cert is issued - The MI coverage is subject to change.

Consequences of Housing and Economic Recovery Act of 2008 - Just a few of the changes coming October 1st:
·         Effective 10/1/08, all FHA loans will pay the same upfront MI premium, 1.75%
·         Monthly MI premium: .50% up to 95 LTV; over 95 LTV = .55%
·         Minimum borrower funds required increased to 3.5%

Did You Know? Random FHA guidelines and News:
·         Down payment assistance programs no longer allowed
·         Jumbo may exceed 31/43 DTI with AUS approval
·         TBW has been temporarily removed from available lenders; we hope to have them back soon.
·         Appraisal must show exterior pictures front and rear at opposite angles to show all sides of the dwelling. In other words, from a diagonal so that front and side plus rear and other side of property are both shown.
·         Married borrowers may apply in only one spouses name but debt from both spouses still counts towards DTI.

  Realtors, and mortgage professionals, you have a few weeks to try and close as much as you can, because it is going to get very difficult come October 1, 2008, as if it wasn't a cake walk now....

I hope this information finds you well, as this might be one of my last mortgage blogs, as I will be making a transitional change to residential real estate....

Everything You Need to Know to Advise Clients…

Bernie Germani (New Key Lending) — Fri, 15 Aug 2008 17:20:49 -0500

I heard Barry Habib from Mortgage Market Guide speak about the new provisions for The HR 3221 Bill, and how it will effect your business.

Realtors, right now is the best time to get your borrowers off the fence, because they might not be able to buy a home, here in the next couple of months.

I wanted to give you the highlights of his interview.

FHA Changes:

To use Seller Funded Down Payment Assistant (DPA, Nehemiah), final underwriting must be completed by September 30, 2008. This type of DPA will not be available after September 30. Two out of every three FHA loans are currently using Seller Funded DPA so it is important to act now!

FHA minimum cash investment requirements are increasing to 3.5%, from 3%.

MIP will increase after October 1, 2008. HR 3221 increased the cap on MIP from 2.25% to 3%. Per FHA policy, FHA has filed the amount they want the cap to be with the Office of Management and Budget (reported to be between 2.25% and 3%, but closer to 3%). This is another reason to act now!

Visit www.Hud.gov for FHA loan amounts in your area.

OPPORTUNITY: The main message to communicate to Realtors, renters, and prospects is to act now! For a short time longer, they can still take advantage of seller down payment assistance and lower minimum cash investment requirements. They also may be able to get double advantage with the new tax credits (see below). This is the perfect time to position yourself as an expert!

Tax Credits:

First-time buyers and people who have not owned a home in the past three years will get a $7,500 tax credit if they purchased a home on or after April 9, 2008 or if they purchase one before July 1, 2009.

Income limitations are:

Married couples with incomes less than $150,000 qualify for the entire tax credit. The tax credit phases out for married couples with incomes between $150,000 and $170,000. Couples with incomes exceeding $170,000 do not qualify for the tax credit.

Singles with an income less than $75,000 qualify for the entire tax credit. The tax credit phases out for singles with incomes between $75,000 and $95,000. Singles with incomes exceeding $95,000 do not qualify for the tax credit.

The tax credit is really an interest-free loan from the government that must be paid back over fifteen years, in increments of $500 a year.

If you die, your heirs do not have to pay back the remaining balance.

If you sell your home before fifteen years have passed and your home's appreciation is less than the amount you have to pay back, the loan is forgiven.

If you turn your home into a rental or investment property, you must pay back the balance due.

OPPORTUNITY: People who have been on the sidelines can take advantage of this tax credit by acting now. Share this information with:

•1. listing agents so they can put it on open house flyers.

•2. divorce attorneys since the liability for the loan goes to whoever gets the home.

•3. past clients who purchased a home on or after April 9, 2008 and who qualify for this tax credit.

Conforming Jumbo Loan Limits:

The floor for Jumbo Loans will remain at $417,000, despite the depreciation in home prices.

The ceiling for Jumbo Loans will decrease from $729,750 to $625,500 as of January 1, 2009.

OPPORTUNITY: Jumbo homebuyers in some markets have retained the ability to finance at lower interest rates. Inform listing agents, buyer's agents, and prospective homebuyers in applicable markets of the upcoming change to the Jumbo Loan ceiling.

Hope for Homeowners:

The bill helps homeowners who are currently upside down on their homes and owe more than their homes are now worth.

Mortgages must have been originated prior to January 1, 2008.

Borrowers must:

•1. Certify that they did not default intentionally (there is penalty of jail if they are found to lie here).

•2. Have had a DTI ratio over 31% as of March 2008.

The lien holder will work with the borrower to write down the mortgage to no more than 90% of the appraised value. For example, if a borrower owes $300,000 but the home is worth $250,000, the borrower will receive a new loan for 90% of $250,000, which equals $225,000. The $75,000 difference is forgiven.

The lender shares equity in the property going forward, on a sliding scale:

•1. If the home is sold within one year, the lender receives 90% of the appreciation and the home owner receives 10%.

•2. If the home is sold within two years, the lender receives 80% of the appreciation and the home owner receives 20%.

•3. If the home is sold within three years, the lender receives 70% of the appreciation and the home owner receives 30%.

•4. If the home is sold within four years, the lender receives 60% of the appreciation and the home owner receives 40%.

•5. If the home is sold after five years, the lender receives 50% of the appreciation and the home owner receives 50%.

OPPORTUNITY: There's a big opportunity to educate clients and strategic partners. By adding value and positioning yourself as an expert, you build trust, strengthen your relationships, and pave the way for future business. Also, informing clients and partners of this information will help strengthen home values and the economy overall.

Licensing:

SAFE Mortgage Licensing Act was created to "encourage" a nationwide licensing and registry system. In the next few years, individual states will:

•1. Establish a minimum net worth for recovery fund requirements.

•2. Require originators to register with the National Registry and obtain a unique identifier number. This will help regulators track individuals and prevent originators who receive complaints in one state from starting a new origination practice in another state.

•3. Develop a state license program.

•4. Require pre-licensure education.

•5. Require eight hours of continuing education every year.

OPPORTUNITY: More bad actors out of the business and the ability for our industry to regain the public's trust.

Downpayment Assistance Programs in Danger of Elimination!

Bernie Germani (New Key Lending) — Mon, 14 Jul 2008 04:12:16 -0500

We need all mortgage professionals to help out with this.

TAKE ACTION NOW

Downpayment Assistance Programs in Danger of Elimination!

The Department of Housing and Urban Development (HUD) has re-issued a proposed rule that would eliminate all private downpayment assistance programs.

As you know, Nehemiah has a long history of successfully protecting and advancing homeownership opportunities for homebuyers. For over 10 years, we have worked together to help more than 290,000 families achieve their homeownership goals. Together, we can defeat HUD's proposed rule.

Act Now! We Have One Month to Stop This Action

Speak up now! The proposed rule comment period ends on August 15, 2008. Making your voice heard is simple. Submit a comment through our website and let Federal housing officials and your congressional representatives know how you feel about preserving private downpayment assistance as an option for today's homebuyers.
Your Trusted Source

Nehemiah will continue to be your trusted source of information on this important matter. Visit our website www.getdownpayment.com for up-to-date information and register to receive future email updates as they become available.

Thank you for your continued support. Should you have any questions, our Customer Service Department is available at 877-634-3642 from 9:00 a.m. - 8:00 p.m. EST to answer your questions.

Become the Expert in your Niche

Bernie Germani (New Key Lending) — Fri, 06 Jun 2008 15:50:15 -0500

Did you choose your niche? If you haven't, save this lesson and come back to it when you're ready. (Or just begin today with a niche you're considering. This exercise might help you decide if it's the right one for you.)

Today you begin to become an absolute expert in that niche. It is, of course, an ongoing process, so this is merely a starting point.

Begin with attending every broker open and/or every open house. If no one does those in your community, ask the listing agents for preview visits. Your goal is to know all you can about each home (or property) for sale in your niche.

Print out the MLS sheets and pick up the flyers for each one. Then attach a blank sheet for your own use.

As you well know, the MLS and the flyers don't begin to tell the truth about a house. Descriptions are vague or non-existent - if they're even correct. You'll need to take your own notes, paying careful attention to a few things that make a big difference in the final selling price:

Condition - hardly ever mentioned on flyers or in MLS but high priority for buyers
Location - and why it is desirable/undesirable for whom
Special features - special rooms - unusual amenities
Decor - neutral or dramatic?
Neighbors - tidy and quiet or a noisy mess?
Size of rooms - both living areas and bedrooms

Your goal will be to know so much about each house that when you want to use it on a CMA you will know - not guess, but know - if it actually compares to a property you want to list.

Next, keep a file on those homes. When a sold notice comes through, get out the flyer and write down both the selling price and the days on the market.

Since you'll want to use the freshest data possible for every CMA, you won't be using the information you gathered a year ago - but keep it! You will be able to use it to show market trends. Clients will ask you if the market is up or down - and the data you've saved will give you a true answer in place of a general feeling or a guess.

This information will help you with buyers as well.

When you set out to show homes your goal should be to zone in on the best choices for your buyers - not to waste your time and theirs showing them every single listing in their price range.

When you know every house for sale in your niche, you can do that. That is, you can do it if you take the time to really talk with your buyers before you put them in your car.

I want you to realize, that when you start out knowing what your buyers really want, you'll spend far less time showing inappropriate listings.

Your assignment for today: Choose 2 or 3 homes in your niche (or even the niche you're considering) and make arrangements to see them. Then print out the MLS information and anything that the listing agent may have on their website.

Devise a filing system so you can keep track of the information. Perhaps you'll want to set it up by subdivision, by street, or even by section, township, and range - but set it up so you can go back to the flyer when you need it.

By the way, if your research takes you to a house you believe is perfect for a buyer you've been talking with - stop and make a phone call. Tell them you may have just found their dream home, and ask if they'd like to see it.

If you've been using your tools well, the flyer will already be in their in-box, but as I said, may not tell them enough to spark their interest. They need your enthusiasm to get them excited about seeing it.

Never Give Up On A Lead

Bernie Germani (New Key Lending) — Fri, 06 Jun 2008 15:29:47 -0500

I was sitting here speaking to someone who said" Bernie how do you keep track of all your leads you get"?? I was a bit puzzled because apparently many real estate agents, and loan officers don't follow up with potential clients.

I asked her why do you not follow up with people, she said "laziness" WOW!!!! I was blown away, so here you go, please enjoy and let me know what you do to keep up with your prospects.

Never Give Up On a Lead!

You might wonder, "When is a lead no longer a lead?" A lead is always a lead until the person tells you to stop calling. The key to success in sales is professional persistence. Take time to earn the loyalty of prospects by showing them that you add more value to the equation than anybody else in your field. One critical element to remember about a successful lead follow-up campaign is that it should be easy to implement.

Build a series of letters (i.e., templates) and load them into your database management system. Whether you use Top Producer®, Microsoft® Outlook® or ACT!®* doesn't matter. The important thing is that with a few clicks of your mouse, you will generate an outbound correspondence that encompasses your prospective client list and helps them realize that you are sincerely interested in working with them. You must leave an indelible imprint in their mind, which will give you a competitive edge if they have not yet decided with whom they will work. You must rouse prospective clients to wonder:

"What will I miss out on if I don't work with this person?"

Once you motivate the prospect to ask that crucial question, your battle has been won. How can you prompt prospects to ponder this question? It's simple: Teach them! People instinctively want to learn, especially when it comes to "big ticket" transactions like purchasing real property and financing homes. The more you teach them, the more they will want to work with you, so it is important to establish yourself as a consultant.

Many subtle changes occur regularly during real estate transactions that can make buyers feel vulnerable and anxious. They're filled with all types of questions and they look to you as the expert. How do you read an appraisal? What are key components of a home inspection report? What are the various non-recurring fees associated with buying a home? What is tax deductible during the loan process? What are some characteristics to look for when selecting a skilled real estate agent? The list never ends. Draft documents that address consumers' concerns before they even ask.

By maintaining contact with your prospects on a weekly basis using a drip campaign that contains valuable educational material, you will have made yourself invaluable to them. You'll be amazed by how much your conversion ratio from prospect-to-client will skyrocket!

Unsettling times in the Mortgage Business right now

Bernie Germani (New Key Lending) — Mon, 02 Jun 2008 20:02:00 -0500

Good Morning Folks...Happy Monday

Lehman Brothers released a report saying that "Although there has been a significant improvement in markets since the turmoil of March, conditions are still "far from normal." The Fed's actions to date have resulted in significantly lower borrowing costs for non-financial borrowers, but we think much of this is due to a rationing-out of lower quality borrowers. We expect the crunch to intensify and spread. Securitization markets are still impaired, and banks are in no shape to pick up the slack, in my view." A sobering and scary statement!

Rates this morning are almost unchanged from Friday, with the 10-yr wallowing around 4.02% and mortgage prices a tad better. You may recall that on Friday, the Michigan Consumer Sentiment Index fell to a 28-year low, but the Chicago Purchasing Managers index rose to 49.1 in May, higher than forecast, from 48.3 in April. Although we have the unemployment data on Friday, it is relatively quiet this week economic news-wise.

The Institute for Supply Management's (ISM) manufacturing index comes out later this morning, and is a measure of manufacturer sentiment. Analysts are expecting to see a 48.0 reading in this month's release, meaning that sentiment slipped slightly during May (a reading below 50 means that more surveyed manufacturing executives felt that business worsened during the month than those who felt it had improved).

Tomorrow we have the Commerce Department's release of April's Factory Orders data, the revised 1st Quarter Productivity and Costs report will be released Wednesday morning along with the Institute for Supply Management's services index. Thursday we have Jobless Claims, and then on Friday the Labor Department will post May's Employment data. Analysts are expecting to see the unemployment rate climb to 5.1% with approximately 52,000 jobs lost during the month.

IT'S PAY BACK TIME ORIGINATING CARRIES RESPONSIBILITIES

Bernie Germani (New Key Lending) — Sat, 31 May 2008 18:59:14 -0500

I have been writing about this on other social networking sites.

It's payback time - The Wall Street Journal is reporting that mortgage
lenders are now facing the music, as loose lending practices are coming back
to them in the form of buy-backs.
These loan disputes, according to Journal reports, are centering on bogus
appraisals, inflated borrower incomes and other misrepresentations made
during the loan originations. "Some of the disputes are spilling into the
courtroom, and the potential liability is likely to hang over lenders for
years."
In a recent conference call, Fannie Mae told analysts that it is reviewing
every loan that defaults and triggering buy back provisions on those that
did not meet quality guidelines when originated.
Bond insurers are also weighing in. According to the Journal, MBIA and
Ambac Financial Group are examining mortgage pools that were supposedly
composed of home equity loans and credit lines made to borrowers with good
credit. An MBIA official said, "there are a significant number of loans that
should not have been in these pools to begin with."
Countrywide Mortgage represents a slice of what's to come. It is reported
that in a May securities filing, Countrywide estimated its liability for
investor's claims approached $935 million as of the end of March. They took
a 1Q 08 charge of $133 million for claims paid.
The mortgage crisis is an economic iceberg just exposing its tip.
.
Last week, Boston Fed President Erich Rosengren said, while the U.S.
housing market is a small part of the GDP it has substantial impact, which
may last longer than anticipated. "Previous periods of real estate problems
have taken significant time to be worked out; with foreclosures remaining
elevated well after their peak... The current foreclosure problem has been
exacerbated by the difficulties related to many of the problem loans being
held in securities."
Commenting on the Fed's monetary actions, Rosengren said, "These policies will likely result in some pick up in the economy activity in the second half of this year, which should help stabilize the housing market."

Fed to Conclude Bear Stearns and JPMorgan Arrangements by June 26

Bernie Germani (New Key Lending) — Thu, 29 May 2008 19:11:23 -0500

This Thursday morning, the Federal Reserve Bank of New York announced its intentions to conclude arrangements for the financing of JPMorgan's acquisition of Bear Stearns by June 26 and finish valuating the investment bank's portfolio.

"The New York Fed, in coordination with JPMorgan Chase, is working carefully and expeditiously to put in place the operational arrangements necessary for the transfer of the portfolio to take place," read the press release on the Empire Fed's website.

This was one of Wall Street's largest mortgage backed securities players.

Bear fell into trouble in June of last year when two of its hedge funds collapsed. From that point forward, the firm never really recovered from the mortgage mess.

JPMorgan's buyout essentially pegs Bear Stearns' stock at about $10/share; that came after Bear shareholders had balked at an earlier $2/share offer. Of course, even the larger offer is of little consolation for many, given that the stock traded well above $150/share last year. Many will be wiped out after the deal is closed, which is expected to take place on Friday.

One more victim to this whole mortgage meltdown.

How To Generate Automatic Referrals And Renewals By Providing Outstanding Customer Service

Bernie Germani (New Key Lending) — Mon, 19 May 2008 02:01:24 -0500

Dan Sullivan, a top success coach, and founder of The Strategic Coach®, created a set of four habits salespeople and entrepreneurs need to practice in order to maintain their existing clients, and generate automatic, unsolicited referrals.

Here Are Dan Sullivan`s Four Referrability Habits:

1. Show Up On Time

How often do service providers show up late, return calls late, or keep their clients waiting?

This creates a feeling of anger and resentment and make your clients feel like you don`t respect or value their time.

Don`t make this mistake - return calls when promised, and show up to all appointments and seminars on time.

2. Do What You Say

How many salespeople and service providers promise you the world before they have your money, then fall far short of providing the service they originally promised after they have your money?

This may get a company the sale once, but no one will ever repeat purchase from them since they didn`t do what they originally promised.

3. Finish What You Start

Builders and contractors are notorious for not finishing what they start. All of us have experienced entering into an agreement with a service provider who does half the work, and then stops for one reason or another and never completes the job.

Make sure you finish what you start with all of your clients - that means sticking with them all the way through negotiating for a better rate and payment, and making sure they get what they deserved.

Don`t make the mistake of only focusing on signing up new clients without also completing the service for your existing clients.

Remember, you want your existing clients to refinance with you next time.

4. Say Please And Thank You

When was the last time a service provider said `please` and `thank you` and genuinely meant it?

You must show appreciation for your clients - they are the lifeblood of your business. Make sure you treat them like gold!

Sullivan`s Four Referrability Habits sound deceptively simple, don`t they?

The problem is not 10 in 100 mortgage businesses actually practice these four simple skills consistently.

I`ve added some additional habits that I feel are necessary for you to automatically generate referrals and renewals:

5. Under-Promise And Over-Deliver

Most mortgage brokers do the exact opposite of this - they promise you the world, and automatically set you up for disappointment.

Always promise your clients less than what you think you can accomplish. This way, when your results are better than expected, they think you walk on water, and end up referring and refinancing with you.

If, on the other hand, you promise you will get your clients a fully paid private university education, you are bound to disappoint them which means they won`t be referring or renewing with you and they will tell, at least, 5 - 10 of their friends not to use your services.

Don`t make this mistake - instead under-promise and over-deliver.

6. Bond With Your Clients

Most businesses don`t have any idea how to `bond` with their clients. They feel business relationships should be treated differently than personal relationships.

They`re Dead Wrong!

People are people, and they enjoy the emotions of love, respect, friendship, closeness, honesty, integrity, recognition, etc., regardless of whether the relationship is business or personal.

Don`t try to fight this. Instead, look at all of your clients as friends, and treat them that way.

Send them written correspondence once a month to keep in touch with them (I love using a monthly newsletter for this!), send them unexpected gifts (like books, audiotapes, brownies) to let them know how much you appreciate them, admit when you`re wrong instead of arguing and send apology letters or gifts, recognize them in your newsletter and let them know they`re special, and make personal calls to your best clients to see how they`re doing.

If you consistently practice the six habits over the next 90 days, you will start to see a drastic change in your business.

Business will start to flow to you almost automatically without you having to push so hard for it.

You will also begin to enjoy your business and your clients more, and it will start to feel more like fun instead of work.

Also, make sure you constantly listen to your clients - what they like, what they don`t like, why they bought from you, why they refinanced with you, what other products and services you can provide for them, etc.

Your clients have all the answers if you listen to them.

Be A Teacher/Public Speaker To Increase Your Business

Bernie Germani (New Key Lending) — Thu, 15 May 2008 13:35:34 -0500

I just finished a conference call with Sue Woodard and special guest Jodee Brydges. The call was about setting your self up as the expert, and educating people out in your communities instead of CNN ( Constant Negative News) as I have heard been called. We are the professionals not the media.

Teach workshops or seminars and you'll be seen as an authority about mortgages. You'll also meet people who are likely to recommend you to friends and family. Who knows...by teaching a mortgage related topic, you may be able to build a useful income stream.

No doubt about it, the mortgage-housing-credit meltdown is affecting all of us. And, if you're still in the Mortgage Business you know how it can affect our industry and how harmful this can be. When the buying, selling, and refinancing of homes is hampered and impaired, we all feel the pain.

There are many that say that what we are experiencing is a natural cycle in the Real Estate/Mortgage Industry, and all of the purging that's taking place is really a good thing. While there is some truth there, it's important to effectively work around these hardships to perpetuate your Mortgage Business.

If you're not already...It's time that you became a teacher...an educator.

And, the name of the game is "WHY IT IS BETTER TO BUY THAN RENT"

"SHOULD I BUY A HOME IN TODAY'S MARKET" is today's hot topic and the basis of the current turmoil in our industry. People are so mixed up in their thoughts, even many professionals in our own industry are telling people not to buy. You have got to be kidding me, when I hear this non sense coming from some of the so called real estate professionals.

1. You are setting yourself apart from other mortgage folks by providing such information.

2. You are adding value to your position and mortgage services.

3. You are giving your customers/prospects another reason to trust you.

4. You are educating a group of home buyers that will benefit you directly over time.

5. You are providing a public service to your prospects and customers.

You need to start doing seminars on why it is better to buy than rent. Instead of 1^st time homebuyers seminar (which is very limiting) that is how you market it (why it is better to buy than rent)

Libraries are a good spot to hold these (since it is for education)

Realtor's offices

Title Companies

Community Centers in your city

I have been doing these once a month for the last 6 months, and have obtained a lot of new business from Realtors, Attorneys, and CPA'S.

If anyone is interested in the presentation I use, just email me and I will forward over the slide show.

Countering Objections: Know Why People Say No

Bernie Germani (New Key Lending) — Tue, 13 May 2008 14:15:03 -0500

I felt compelled to write this, as I was just on the phone, and this particular person

appeared to give me every excuse on the planet why she should not do a short sale on her home.

I finally asked her why she thought the way she did, and she came up with some reasons that I could not believe( because they told her not to do it, and their reasons.) Have you ever wondered who they are??

Let me preference this, those people are not in the real estate business, and have no interest in her financial decisions for her life. Long story short I got the short sale listing, by helping her work through her own objections.

Not every objection can be overcome, but they can all be countered, so you should always have a rebuttal in store. If you don't have years of experience, or a trainer to guide you, you can find yourself blindsided by the most obvious objections and hesitations.

There are three basic reasons for most objections:

Lack of trust or rapport.
Have you ever decided against a sale because you didn't like the person selling to you? Most people have experienced this at least once. Those of us in sales need to know how to avoid this issue altogether:

Don't try too hard. You're not a comedian. The occasional joke is fine, but nothing rubs people wrong more than repeated, failed attempts at humor.
Don't talk so much. Get people talking about themselves, show interest, and ask questions; the more interest you show in them, the warmer they'll feel towards you.

Lack of immediate need.
If your prospect doesn't understand why they need you, and why they need you now, then they probably won't buy, no matter how much they like you. Retrace your steps, and make sure they agree with each point of your pitch. "Would you agree you need..." is a fantastic way to delve deeper into their objections.

Lack of money.
If this is the real reason, there's little you can do. The good news, however, is that it's usually not the real reason! It's simply the easiest one to throw out when the customer doesn't want to say, "I don't know you well enough yet."

Learn how to find the real objection. Ask additional questions, and don't be embarrassed to say, "I sense you're a little hesitant. Can I ask why?" Maybe they're worried about sounding dumb if they ask an obvious question; maybe they had a different picture in their mind. Whatever the case may be, find out if it's a giant objection, or a minor obstacle, and go after it accordingly.

By practicing how to handle objections, you'll exude confidence, which in turn brings trust.

A guide to assist you in lowering property taxes for todays market

Bernie Germani (New Key Lending) — Fri, 09 May 2008 00:22:48 -0500

I'm not the expert here. I just have had some recent success lately in getting my clients to have their property taxes re-assessed, and lowered that I'm thinking of doing this myself. In todays decling real estate market every dollar helps, and it is better in our pocket.

Call the assessor's office and ask how it pegs value? Some times it is based off recent sales of similar homes or based on a percentage of your property's estimated value. You'll want to know what that percentage is so you can figure out whether the actual value the assessor is assigning to your home is fair. You will also need a copy of the sales contract to show your purchase price

1) your property card at the tax office this will give all current information on your home, make sure it is accurate( this is at the office)( including bedrooms, baths, square feet, and lot size. Oh yea and year built that is a big mistake...

2) Get the appraisers worksheet, this will show how the appraiser graded different components of the home.

3) Sales records: get comps of homes comparable to yours, dated near the time of your assessment.( call the county to find out when it was assessed)

4) Visuals get photos of your home, and of the comps. Make sure to highlight all your damages or not so good side of the house( DON'T SHOW ALL NEW WORK DONE) SHOW THE FAULTS OF THE HOME... THIS IS VERY IMPORTANT!!! ANY AND ALL FAULTS. THE MORE THE BETTER EVEN YOUR ROOF, CRACKED FLOORS,CONCRETE UN EVEN ANYTHING THAT IS A FAULT!!!! Plot the comparables on a map.

5) Your presentation: Write out your outline for your case. and make sure it is less than 8 minutes. Put together a spread sheet listing the address of the comps, the sales price, and dates the price per square foot and a description of what makes the homes similar to or different from yours. To make your case you need at least 5 properties but 10 is the ultimate for your case.

If you can't find comps that sold for at least 10% less than your property's assessed value, just throw in the towel as you will not win the case. The goal is to prove your case, be kind, and patient DON'T BE OUTSPOKEN OR YOU WILL BE BLOWN OFF.... If your appliances are a decade old and your cabinets are older the score on your card should be lowered.(HINT THE COUNTY'S APPRAISER DOES NOT KNOW HOW OLD CABINET'S ARE, UNLESS THEY ARE FOR SURE ARE BRAND NEW) I hope this helps you out, and I wish you the best.... THIS WILL NEED TO BE DONE ASAP AS YOU USUALLY HAVE BETWEEN 60-90 DAYS OF WHEN THEY WERE ASSESSED.

What is Your 30-Second Elevator Speech

Bernie Germani (New Key Lending) — Mon, 05 May 2008 21:58:54 -0500

What is your specialty? What part of the business do you enjoy the most? Which areas do you want to concentrate in?

What is your thirty-second pitch?

For example, if you say "Luxury Homes," tell us what that means for you and your clients. Or look at the word, "Foreclosure." That is a good buzz word that isn't elaborated on enough as a marketing tool.

I could say that I sell businesses and international real estate, but that doesn't tell you much, does it?

Here's my 30-second take:

"I am a Financial Educator committed to raising your Financial IQ. I teach everyone that their mortgage is a tax deductible financial tool, not just a debt. Properly structured your mortgage will: 1)Allow you to invest more money for retirement and college. 2)Protect your money in case of disability or job loss. 3)Permit you instant access to your money in case of emergency or opportunity. It also, 4)Reduces the federal income taxes you pay. I have a free DVD that explains all of this to you. Let me get you information and I will mail you one."

Thank you to Ed Conarchy for helping me perfect that

Does anyone want to know what a quitclaim deed is?

Bernie Germani (New Key Lending) — Mon, 05 May 2008 21:20:04 -0500

Quitclaim deed is a legal document that helps to transfer your share of interest in the property (house, land, mobile home, etc) to another individual. The person giving away the interest is the grantor while the one who accepts it is the grantee. While the interest is transferred, no warranty is made on the rights which others may claim from the property.

The deed implies that the grantor simply transfers his interest but does not guarantee whether the grantor actually has ownership rights on the property. Moreover, the deed does not guarantee that the property is free of debt.

To help you get a clear idea of the quitclaim deed, I have divided the information into different sections as given below:

How to make the deed valid
When to use the quitclaim
How a life estate can help after you sign over the deed
Reverse/Undo a quitclaim deed
How to make the deed valid

In most states, only the grantor and not the grantee sign the Quitclaim deed form as prepared by an attorney. But there are some states which do require the grantee to sign the deed. After the grantor signs the deed, a notary public should sign and stamp it without which the deed is not taken as valid.

At present, only a few states like Arkansas, Georgia, Michigan, Ohio, South Carolina and Vermont require the deed to be signed by witnesses other than the notary public to make the quit claim valid. Officials from states other than where the property is located can also notarize the deed. This however depends upon the County Recorder of that state.

The deed is then recorded at the land records office in the county where your property is located. The Office is called the County Recorder's Office, County Clerk's Office, Register of Deeds, and Land Registry Office depending upon the state where you own the property. After being recorded, the deed is often sent to the grantee or the grantor, title insurance company or anyone as decided by the parties.

When to use quit claim deed

The deed is commonly used in the following situations.

In a divorce, married couple can transfer ownership of the property to one spouse.

A spouse may add or remove the other spouse's name to/from the property title after marriage.

While a property is purchased, at closing the interest is transferred from the seller to the buyer through this deed.

If a property is sold off to the new owner and the title shows the old owner as having certain rights, the previous owner should sign a quit claim and transfer all his rights to the new owner.

A person planning for an estate or a living trust uses the deed to transfer ownership of the property into a trust.
How a life estate can help after you sign over the deed

Even after signing a quit claim, you can have the right to possess the property only if you retain a life estate for yourself. The life estate gives you the absolute right to stay at the property till your death. Otherwise, you have no legal right to the property after the deed is signed off to the grantee. After your death, the grantee gets the right to possess the property.

Reverse quit claim

Once you have signed a quit claim, it becomes very difficult to reverse or undo the deed unless the grantee agrees to quit claim the property back to you. In case the grantee refuses to sign, you will have to prove that the transfer of property is invalid. For instance, you can prove that you signed the deed under threats, external pressure or may be the grantee made you sign by telling lies. In order to show the transfer is invalid, you can take help from a lawyer.

No doubt, a quit claim is a good option if you wish to take over or give up interest in a property. But as far as the transfer of title or ownership rights is concerned, it offers no warranty. Experts therefore suggest another deed for transfer of ownership rights - the warranty deed which claims that the property is transferred in clear title, that is, it is free from any kind of lien.

Challenges for today's mortgage originator

Bernie Germani (New Key Lending) — Thu, 01 May 2008 16:15:39 -0500

Real estate agents are not the only people who have seen their incomes take a hit as a result of the housing slump.

Last year we saw a significant decline in the market; this year, even more so. I've seen a lot of people get out of the business as a whole, and even many of my old friends who were in the business are now facing foreclosure, or doing short sales of their homes, and investment properties.

In my opinion this is probably the worse our country has ever seen. There have been layoffs as lenders are rocked by the foreclosure crisis brought on by excesses in sub-prime lending or the famous stated/stated loan. (You know I never ever used that loan.)

I currently see the refinance market has taken a bigger hit than the purchase market, and companies that focus on the purchase market, are faring better as a result. The refinance market is basically nonexistent as their is no product for us.

Our industry has had the crap kicked out of us in the last twelve months, what are you doing as a mortgage professional during these trying times? I hope you are not saying well poor me, I think I should quit, if this is you I'm sorry,but you might need to take a good look in the mirror, and say to your self am I cut out for the mortgage business. I guarantee if you leave now, it will be very hard for you to re-enter the business in a few years as their will be new laws imposed for us on education requirements, and registration with your state.
People with less than five years in the business will have to undergo training, more experienced originators will have to pass a test, and everyone will be required to take continuing education every year.
Oh yea these changes are coming

The few mortgage originators left we need to step up our level of professionalism, from our business attire and the way we compose e-mails, to ethical standards in dealing with clients. Customers should know upfront what loans will cost them, with no surprises when you get them to the closing. We have to keep it at a very high level to keep our reputation strong. This is the biggest financial transaction people make in their lives ... Don't you believe they deserve to have information in writing? I surely do.

I feel it's important for mortgage lenders to remain positive and upbeat despite the challenges of today's business environment, and no homes(lenders) for our files. I believe this has to change soon, because our whole world's economy will collapse. I believe it's still a great time to buy ...but not if you're going to sell next year. It's not a market to flip houses.... But if you're in it for five years, nobody's going to lose money in real estate.

Guys, and gals I know it is tough out there I'm with you I feel the pain as well, but imagine you hold on for the next 6-9 months, when we come out of this cycle(which we always have) you will more than likely have such an influx in business that you will not know what to do with.
This is a great time to get your systems in place, clean out your data base, reconnect with past clients, get involved in the community, start blogging, become a presence on the internet... I look forward to hearing your response to this thread...

ever wonder why there are restrictions on FHA loans?

Bernie Germani (New Key Lending) — Wed, 02 Apr 2008 10:58:41 -0500

Housing and Urban Development Secretary Alphonso Jackson announced his resignation this past Monday. Mr. Jackson was accused by two senators from Washington (Patty Murray) and Connecticut (Christopher Dodd) of being ineffective from wrongdoing. With FHA loans making a comeback, Alphonso Jackson resignation can be a critical factor in what upcoming decision to be made in tackling the housing crisis.

With FHA Loans starting to make a comeback in today's marketplace, ever wonder why some investors/lenders put restriction of FHA loans that HUD doesn't have?

If the United States government stands behind (issues) debt, why wouldn't the rates be very low? Many investors have put more restrictive guidelines in place, and it's not new to put overlays on guidelines on loans that Fannie or Freddie will buy, or that HUD will guarantee. For example, HUD will allow manufactured housing but some investors won't. Although the government insures loans, the difference in opinion on the value comes in servicing: does the lender invest in the servicing on these loans? HUD does not insure lenders against the cost of delinquencies, foreclosures, etc., or the servicing-released premium that lenders pay.

If you are wondering why arms may be pricing badly this is why...

Bernie Germani (New Key Lending) — Thu, 13 Mar 2008 03:56:39 -0500

Intermediate ARM prices got you down? This came from Fannie's trading desk: "In the last week, we've seen (prices) on ARMs collapse relative to their fixed-rate counterparts.... the rate on a 5/1 Hybrid had been running at 1% or more below the 30yr fixed rate, but over the past week, that spread has collapsed to 0.125% or even flat to 30yr fixed...Large supply and overall deleveraging by accounts appear to be the culprits of this underperformance of ARMs."

What's going on with the Stimulus package?

Bernie Germani (New Key Lending) — Thu, 21 Feb 2008 19:33:45 -0600

Well, today I had the distinct opportunity to be at a meeting with a couple of representatives from Fannie Mae. According to these representatives HUD has 30 days from the day the President signed the package into law to identify the impacted Metropolitan Statistical Areas (MSA's). In other words HUD will determine new loan limits based on median area sales prices. So this will delay the loan limit changes until probably March or April.

It's hard to say when exactly the change will happen since we are all waiting on HUD and Fannie Mae/Freddie Mac to update guidelines. Hang in there
people and let's continue to work diligently!

I heard loudly today we(orginators) still can make an impact by writing our state Representative to let them know we need this sooner than later.

This is an urgent request for your help. Only you and the members of Congress can make this desperately needed change. Please respond to help our state's residents and economy as a whole begin to recover from the credit crisis.

Can't Sell Your House? Try Swapping Your Home

Bernie Germani (New Key Lending) — Thu, 21 Feb 2008 15:56:45 -0600

OK,

Does anyone remember the movie(that is featured in this newsclip) about house swapping.

I found this today, and thought how interesting is this.

Wow, this amazing check this out, and post your thoughts.

http://cosmos.bcst.yahoo.com/up/player/popup/?rn=3906861&cl=6538950&ch=4226720&src=news

Please explain how this would be done on the Realtors side if anyone understands how this concept could work in 2 different states as in the example of the video.

Thank you!!!

In need of help from all real estate professionals in the South Bay(So. Cal)

Bernie Germani (New Key Lending) — Mon, 11 Feb 2008 14:45:57 -0600

I'm not sure if this is considered a blog, but I will run with it. I'm hosting a foreclosure seminar 3-08-08 for an investment group called Overjordan in Nor. Cal. I'm the facilitator of this meeting.

I'm in search of a nice conference room that will hold at least 50 people. Title offices are great!!!! hint hint j/k. I will also need a room that has a wi-fi connection. The time will be from 9-3 on that Saturday, there will be a lunch served, and the cost will be 25.00 per person.

I have called a few places in the area, but everything seems to be overpriced in my opinion. I wanted to reach out to the South Bay associates, and see if someone can give me any suggestions.

I really appreciate the time,

Sincerely,

Bernie Germani

My first experience today with a housing scam

Bernie Germani (New Key Lending) — Sat, 09 Feb 2008 03:05:13 -0600

We just inherited a short sale about a week ago. The sign post was put just about 6 days ago, the house has been vacant for 5 months. I get a call today from an agent who was showing the property, asking if I changed the lock box code... I said there is no code it is a Supra Box, key is inside of it. The agent proceeded to tell me there was a combination box on the front door.... hmmm what is going on?? I wondered.

She then ask me did the house sell? No I answer why, she said the sign post is gone... hmmm what the heck is going on.
I asked her if she could take a look around the property to see if she sees anything weird.

Low and behold the back window was broken, I told her to call the Sheriffs Department, and wait down the street. I was on the way. 1 hour later our fine local Sheriffs show up. I try to get into the house, and the locks have been changed,,, what the heck is going on, and yes there was a combination box, not mine. The back side gate had been pad locked closed... I don't understand, we talk to the Sheriffs for a bit, when all of a sudden a big moving truck pulls up in front of the house, and the lady comes out screaming what happened to my house...
Your house:eek: I said, what do you mean? Well we are renting it, and we are moving in today:eek: Oh my this poor women with 3 kids, paid a Realtor she says 1st and last months rent to the tune of 3700.00 to rent this house.

Oh you have got to be kidding me, here we go. I explained to her this house is on the market I'm the listing agent, it was not for rent... Oh boy!!! Well the Sheriffs took their report. I had to get the locks changed again, and get another sign post back the property.
The nerve of this criminal, I wish I would have caught him...;)

My first experience today with a housing scam

Bernie Germani (New Key Lending) — Sat, 09 Feb 2008 03:02:42 -0600