Jacob Webster's Blog

Spring Yard Work 04/15/08

Tue, 15 Apr 2008 09:36:41 -0500

This morning as I gazed out of our sunroom window looking at the pond in our back yard, I looked at our half green and half brown yard. "Man I need to start Spring lawn care again," I thought. Throw on some high nitrogen fertilizer and make this yard green quick! Give it some food to make it happy, and throw on some more seed to thicken it up.

The same goes for our pipelines. Let do so Spring feeding to our business, feed our pipelines, make them greener, and thicken em up all at the same time. I see alot of forever changing, good changes, that will allow everyone to do these few things to add to their pipeline! Good luck to all and make your day the best day ever!

Time Consuming REO's

Sat, 12 Apr 2008 08:56:17 -0500

With prices down, real estate agents across the country report that more investors are interested in acquiring properties this way. But it isn't simple or quick. There is a lot to watch out for, such as many issues can slow your process.

Short sales, which occur before a foreclosure is finished, can be daunting. They involve both lender and homeowner. Buyers expect a foreclosure sale, of property a lender's already repossessed, to be smoother. That's not always the case. Most lenders need an OK from any secondary-market owners for foreclosure sales that involve a loss. And if the loan carried private mortgage insurance, its guarantor may also need to sign off.

There are many great deals on REO home out there to be made. But is it really worth the wait or hastle for the offer or financing? Many borrowers turn to other homes to purchase for the simple fact that they don't want to wait or play this time comsuming game.

Fannie Mae Update 04/11/08

Fri, 11 Apr 2008 12:09:05 -0500

Friday! Finally! Hope everyone had a fantastic week. Below is an update on Fannie Mae and Freddie Mac.

Fannie Mae and Freddie Mac could have a ton more to finance purchases as of Wednesday on the amount of mortgages the government sponsored lenders and companies can hold on their books.

The restrictions were lifted despite Fannie Mae's huge quarterly loss nearly three and a hlaf billion as defaults and foreclosures sky rocketed. They also stated there could be a significant worsening in the real estate market.

Fannie Mae and Freddie Mac have both regulated their restrictions on their combined nearly one and a half trillion portfolios to give them the ability to buy more purchase mortgages from lenders.

Fannie Mae's chief executive stated Wednesday that the company will be very conservative in using its capital to purchase mortgages as it wants to limit theri losses.

Make your day a great one!

Late Night Referrals

Thu, 10 Apr 2008 21:32:55 -0500

Referrals are the main key to success, income, and trust as you build your relationship and networking capabilities as a Loan Officer. I find many new LO's asking me the key to generating so many great referrals. Here are some very simple and easy tasks to do after closing a loan. As you read on down you might think, DUH, but you won't beleive how many LO's don't actually do this and think these people will automatically come back to you the next time they need finanacing. After you build your relationship and close the loan you need to:

1. Keep a log of every single borrower you close. Date, type of loan, address, phone numbers, FICO's, Documentation, etc...

2. Ask after closing if they know of anyone whom your services could benefit. If so make note.

3. After closing send them a thank you card/note with some more business cards.

4 On your email calendar, make a reminder and program it so every three months it will email you and remind you to give your client a call back. Every three months that you call, become their friend. Also ask if they have any questions on their loan. Again ask if they know of anyone whom might need your service.

5 Once you have built this relationship, take them out for coffee! I mean, you probably did make between $1,000 and $5,000 from the closing of their loan. $10 at Starbucks for the two or three of you to chat 30 minutes won't break you.

Believe it or not just by maintaining these five steps you will generate referrals from those borrowers themselves, other referral clients that they will send your way, and referrals from those clients, and so on and so on! I lately have been closing about 90% of my closing based totally on referrals. I have only been in the business since 2005 and have only been keeping this log for the last 6 months. Just in the last 6 months I can see a major difference.

Good luck and finish out the month strong!

Purchaser's Heaven!!! 04/10/2008

Thu, 10 Apr 2008 10:28:45 -0500

For those of you planning to buy a home, now is the time, or at least you should consider it before the middle of the year. Home sales numbers recently released by the National Association of Realtors are still showing a slowdown. In most markets, this means that home sales could still be heading down, creating motivated sellers and mortgage consultants desperate to find qualified borrowers.

For most of you this may be the best opportunity to buy a home. Prices aren't going to go too much lower if you agree with the market analysts and mortgage interest rates are still really low. This means that you are likely to get a good deal on both a home and your mortgage financing. So if your even thinking about possibly buying right now, you should seriously be looking into it. And as for us brokers and agents, we need to be addressing this to previous and current clients who are just sitting on the band wagon waiting for the next day to come.

Make your day a great one!

Hump Day 04/09/08

Wed, 09 Apr 2008 17:40:40 -0500

Hump day is here as it looks like we will approach yet another cold and chilly weekend here in Indianapolis. As the weather continues to go up and down so does the mortgage market. All the negativity, credit crisus, and etc... try to bog down the business, keep your head up people because it is time to make money! So many Loan Officers, AE's, and Agents have left the business scared out of their witts to leave us strong producers more money to make! Although every day loans are getting harder and harder to get approved, there are so many good borrowers out there who need our help. You have to fend for yourself now days and go out there and get your referral business banging! Everyone get ready to have an outstanding month and good luck to all!

Monday 04/07/08

Mon, 07 Apr 2008 14:33:07 -0500

Here we are Monday April, 4th of this up and down 2008 year. DECLINING MARKET, DECLINING MARKET!!! Thats all I've heard recently. Seems like no matter where you want to buy the property is in a declining market. Well I hope buyers in todays world and crazy upside down market understand its going to take lots of money if they want to own their own home. Although its getting harder and harder to find great borrowers THEY ARE STILL OUT THERE AND THERE ARE MANY LOANS TO CLOSE SO LETS ALL KEEP POSITIVE AND GO CLOSE SOME LOANS! GOOD LUCK.

Sunday 04/06/2008

Sun, 06 Apr 2008 18:48:27 -0500

What an amazing Sunday and weekend it has been. The first true Spring weekend weather Indianapolis has had this year! Even got to play a round of gold this afternoon. Didn't shoot so hot but hey, rather be on the golf course than at the house!

Active rain has produced many new interesting networking ideas and has given me so many different opportunities that I just wanted to say THANK YOU!!! Make your day a great one!

Friday 04/04/2008

Fri, 04 Apr 2008 09:59:18 -0500

Hey good news everyone. Its FRIDAY! I hope you all have some fun and exciting plans for the weekend as it looks like the weather here in Indianapolis is going to be great! Walk on the Canal, dinner out and a movie possibly, etc... Many things on my to do list this weekend. Hope you all make it your best weekend ever!

Thursday 04/03/2008

Thu, 03 Apr 2008 11:03:54 -0500

Happy Thursday connected to Friday!

Mortgage rates jumped up a little this week as I'm sure you all have seen. The 30 year fixed mortgage rose 17 basis points to 6.12 percent, according to the Bankrate.com national survey of large lenders. The mortgages in this week's survey had an average total of 0.4 discount and origination points. One year ago, the mortgage index was 6.25 percent; four weeks ago, it was 6.32 percent.

The 15 year mortgage also rose 17 basis points to 5.7 percent. The 30-year jumbo rose 15 basis points to 7.52 percent.

Thats all I have for today. Make your day a great one!

Wednesday 04/02/2008

Wed, 02 Apr 2008 11:09:06 -0500

It is an absolute beautiful Wednesday here in Indianapolis and I hope its the same for everyone else out there. We are way past due for nice weather here as in the last 10 days this is the first sign of sun!

Rates are a little bit up today as the DOW is up almost a record high 400 points today. This could be a great sign for a little releif in the credit crisis, but I don't think its over. It will be quite a while before this mess gets cleared up but as for now this could be a great opportunity for investors. Take care and make your day a great one!

Tuesday 04/01/2008

Tue, 01 Apr 2008 13:54:58 -0500

Happy April Fools Day! I'm sure you've all seen the 100% SISA new programs out there from all your lenders. Thats not even an April Fools Joke since we all know we can't do that but hey, trying to bring a smile to everyones face. Below is an article posted on Yahoo Finance this morning that is very interesting and can be very helpful to some, or all of your clients who may not understand why it is so imperative to have a high credit score. High Credit = money saved! Take care and make your day a great one!

http://biz.yahoo.com/ibd/080320/funds.html?.v=1&.pf=banking-budgeting

Monday 03/31/2008

Mon, 31 Mar 2008 09:39:18 -0500

Hope you all had a great weekend! At the start of a new week this morning we run across more changes in the industry. Announced today, HUD Cheif Alphonso Jackson will be resigning as of April 18, 2008.

Henry Paulson, Treasury Secretary, today proposed a set of changes to the nation's financial market system, including an expansion of the Federal Reserve's authorities, which could easily be the biggest engine overhaul of Wall Street since the Great Depression. This plan comes as concerns on the housing and credit crisis fallout in the financial system and continues to call for change in Washington. These changes, if acted upon, would be invisible to consumers but would drastically change how the financial services industry is regulated.

Hope you all have a great Monday!

Sunday 03/30/08

Sun, 30 Mar 2008 09:42:52 -0500

Here we are on yet another cold and rainy Sunday. Wait a minute, I thought it was Spring. Not if you live here in the good old State of Indiana. It seems once winter is here it never wants to go away, and once spring, summer, and fall arrive it all passes in a week! I hope you all had a fantastic weekend and I look forward to yet another crazy week in the markets. Take care and make your day a great one!

Saturday 03/29/08

Sat, 29 Mar 2008 08:49:44 -0500

Happy Saturday to all! For those of you who actually take time to read my daily blog I thank first and far most. I also apoligize as yesterday I SLACKED!!! Yes yes I know. I need to kick it into gear and get back on the never ending blogging trail.

Most of you who took time to look at rates on Friday probably noticed quite a hike in rates. Anymore, seems like no matter what lender you use, there are so many pricing adjustments on Conforming products. A nice 6% 30yr fixed rate could easily go to 7.375% just for being a Cash Out transaction, and borrowers score under 680. FHA!!!!! This is the way to go! No pricing adjustments!!! I admitt, some conforming products are fit for the right borrower, but realisticly anymore FHA is taking over the old Sub-Prime with great rates! Just interested in eveyone else's opinion! Make it a great one!

Thursday 03/27/2008

Thu, 27 Mar 2008 09:44:43 -0500

Today I would like to discuss a very interesting subject and would appreciate your comments and thoughts in return. If you had a chance to read yesterdays blog, this co-insides with what I discussed yesterday.

Every single day, as we all know, you see more and more borrowers who run into trouble and cannot make their monthly payment. I personally have run into a couple of cases where borrowers have told me they have taken a significant amount out of their 401K to make payments due to loss of job, injury, etc... Although this saves their credit, or even saves their house, is this really the smartest thing to do in that situation?

My personal thoughts on this are as follows. If you can't afford it, get out of it! Why take what you have saved for retirement, plus pay a penalty, to save something you can't afford any way.

I ask you all to please respond as I am very interested in eveyone else's thoughts! Thanks and make your day a great one!

03/26/2008 Food For Thought

Wed, 26 Mar 2008 13:49:13 -0500

Just some food for thought. Republican John McCain on Tuesday said that the government would not be rewarding banks or small borrowers who had practiced bad mortgage lending, though he offered few alternatives to fixing the growing housing crisis.

Mr. McCain has said to consider any and all proposals based on their cost and benefits to the market. Many Democrats have accused McCain of lacking the necessary skills needed to obtain and lead a country on the brink of recession.

Instead of offering a concrete plan to address the crisis at all necessary levels, McCain promised to take the same hands-off approach that President Bush used to lead us into this crisis. This could create even worse positions in the market and economy.

The housing turmoil has rocked Wall Street and is dominating the presidential race as the nation faces an economic downturn and the Federal Reserve has taken steps to intervene.

Wednesday 03/26/2008

Wed, 26 Mar 2008 13:16:01 -0500

Below is a great article for borrowers who are or might soon be having trouble making their mortgage payments. Just thought I would share with you all. Many borrowers out there tend to "freak out" as we call it, and do nothing about the situation. Many feel embarrased about their position and possibly think there is no way out of the situation. Make your day a great one!

What you should do if you can't make the mortgage payment

by Lita Epstein Nov 12th 2007 @ 9:00AM

Filed under: Debt, Home

Your mortgage payment re-set to a higher interest rate and you can't afford the new payment. Or you lost your job and can't pay the mortgage. Or you're facing surgery and don't know how you'll have enough money to pay the mortgage. These are the three most common reasons people can't pay their mortgage, and your reason may be even different.

Whatever the reason, when you know you no longer can afford your mortgage payments, don't go hide in the closet. The best thing you can do is to call your mortgage servicer (whether it's the bank you first took the loan through or a new bank that is now collecting the payments) and let them know you have a problem and what the problem is. Many loan servicers will tell you they can't do anything for you until you miss at least two payments or are more than 60 days late. If you can't get help from your mortgage service, don't give up seeking help.

Your next call should be the the Center for Foreclosure Solutions at 888-495 HOPE (4873). This hotline handled more than 50,000 calls in the third quarter of 2007, so you're not alone. The center is a collaboration of housing counselors, mortgage servicers, investors and other mortgage participants.

If you have trouble getting through or don't find the help want, you should then call a HUD approved Housing Counseling Agency at 800-569-4287. If you prefer, you can find one near you using the HUD website.

You may find that you don't even want to open the mail you receive from your lender. Well don't give in to that temptation. The first notices you will receive will be critical information about how to prevent foreclosure. Later notices will focus on pending legal action. Failure to open the letters will not give you a defense in court.

Pull out your loan documents and read them to find out what they say regarding missing your payments and the actions your lender will take. You also may want to contact your state government housing office to find out what the foreclosure laws are for your state. Every state has different laws.

Remember, after the basics of life -- food and health care -- keeping your house should be your first priority. Too often I've seen stories of people who made their minimum payments on credit cards, so they wouldn't be closed, and skipped their mortgage payments. Remember, credit card debt is not secured against your home, but your mortgage is. Your mortgage payment should always be a higher priority than your credit card debt.

Think about assets you may have that you may be able to sell, or possibly a second job you can take. Let your lender know that you are willing to make sacrifices to keep your house. A lender is more willing to come up with a modification of your loan package if they know you're serious about making it work.

Don't seek the easy way out by paying fees to a foreclosure prevention company. An authorized HUD counselor will provide those services for free if you call them. Also, don't sign any document appointing a firm to represent you and act on your behalf. These people are scam artists. You will be signing over your title to your property and becoming a renter in your house.

Tuesday 03/25/2008

Tue, 25 Mar 2008 10:49:49 -0500

Here we are on a very chilly Tuesday, I thought it was Spring, and rates are still standing pretty strong. As I read daily mortgage market news it is evident that we are heading towards older lending times with significant amounts of money down to obtain a mortgage. For many buyers this can and will create many problems. Keep looking for those assets as I posted in one of my daily blogs last week, as liquid assets will save many deals. Everyone hang in there as there are many lenders and investers out there to lend money so we can all make that money!

Monday 03/24/2008

Mon, 24 Mar 2008 10:50:20 -0500

Hope you all had a great weekend! I have some pretty good news here that I would like to share with you. The National Association of Realtors reported that sales by homeowners rose 2.9% in February. It was the first month-over-month rise in annualized pace since July. This is a great sign that housing's problems are getting addressed.

Although we are selling more homes now, the prices of these homes has fallen dramatically. Sales prices have now fallen 15% from their peak in July 2006. The median price of a single-family home dropped as well, falling 8.7% to $193,900. That was the largest drop in prices since the trade group began tracking them in 1989! WOW! Just some food for thought. Make your day a great one!

Sunday March 23, 2008 EASTER!

Sun, 23 Mar 2008 08:22:31 -0500

Happy Easter to all! Here is a little Easter poem I read and felt I should share it with everyone.

"Easter comes but once a year

But when it does, we all know its here

Children filling themselves with chocolate

Dad's down the pub for a pint of beer!"

"We go to the church for the wine and bread

Dad's half asleep, and jerking his head

Baby sister is here too, munching away

On the free Easter egg the Priest gave us today."

"But remember we must, that the Lord died for us

And ascended into heaven to give us fresh lives

For each and every one of us."

HAPPY EASTER!

Saturday March 22, 2008

Sat, 22 Mar 2008 08:46:52 -0500

GOOD MORNING! I hope you are all haveing a great Saturday morning. I was following up on my daily finance news this morning and found an artice on Yahoo that I would like to share with everyone. This article deeply explains in vast detail exactly staight and to the point why the market has the position it has. I hope you all enjoy reading this very informative article as it can answer any questions you might have. Have a great rest of your easter weekend and look forward to catching up with you all on Monday!

http://biz.yahoo.com/ap/080322/recession_how_bad.html

HAPPY EASTER!

Friday March 21, 2008

Fri, 21 Mar 2008 08:33:37 -0500

Happy Good Friday to all! What a crazy but interesting week in the markets. Rates, stocks, and markets have been all over the board in every known direction. Tipically, after the Federal Reserve cuts the Key Interest Rate, we will see a little jump in rates. This happened on Tuesday the 18th, but only for a short while. Wednesday, the 19th, morning through today, rates have been very attractive and very strong. There is still time out there for those of you who have ARM refi's in your pipeline to really help these borrowers out and put some extra money in your pocket at the same time!

Also remember Verifiable Liquid Assets save deals! It seems that if your borrower is under a 680 FICO, you can't do a loan anymore. But, if your borrower has 30K in assets, this can easily take a 625 FICO to Approve/Elligable on DU. Sounds pretty obvious I know, but I see alot of people giving up on deals that could possibly make them a lot of money!

Have a great, safe, Easter weekend and I hope you all get to spend some quality time with the family! Take care!

Jacob Webster...Sagamore Home Mortgage...866-905-6555

NCAA March Madness

Thu, 20 Mar 2008 11:04:45 -0500

As an avid sports fanatic, I am interested in everyone's brackets and your predictions on your picks for the Final Four and future 2008 NCAA Mens Basketball Champions. Since I attended Purdue I have to say, GO BOILERS!!!! Although I will also be pulling for Butler as they have produced an amazing season as well.

Jacob Webster...Sagamore Home Mortgage...866-905-6555

Thursday 03/20/2008

Thu, 20 Mar 2008 09:57:23 -0500

Spring is officially here! Doesn't really feel like it here in the great city of Indianapolis but its a start.

One subject I want to touch base on today is declining markets. Most home buyers in our area are unaware of areas of declining market. I recently have seen many different future home buyers dreams go tumbling down the drain when they find out they are entitled to a minimum 5-10% down payment on the house they just got an accepted offer on. There are alot of great credit score borrowers out there, tipically younger couples, that are looking to buy that have verified assets in a savings account, etc... but after their down payment due to a declining market they are left with very little or nothing at all. Personally, and what I have been seeing, this is scaring some people out of the market to buy. Just a personal perception on what I have seen recently and am very interested in hearing what everyone thinks as well. Also if you know of any particular area's in the Indianapolis area that are in a declining market please post for everyone else's benefit! Thanks and make it a great first day of spring!

Jacob Webster...Sagamore Home Mortgage...866-905-6555