Jay's Blog

USDA HAWAII UPDATE

Jay Oku (EVERGREEN HOME LOANS) — Thu, 12 Nov 2009 08:00:59 -0600

USDA UPDATE for HAWAII 2010

Fiscal Year 2009 USDA Shattered all Records
133,045 Loans Guaranteed and $16.2 Billion Obligated Nationally

The US Depratment of Agriculture has an outstanding loan program available and if you are not aware of it then you are missing a golden opportunity to help families (that would be declined by FHA or Conventional progams) into a home in this Buyers Market.

· November 8th $55 million in Funds were replenished and are available

USDA Loan Facts

USDA Rural Home Loans have some outstanding benefits over ANY other type of mortgage loan you will find for Hawaii. USDA Loan Benefits include:

· True Zero Down Financing - USDA Rural Home Loans let you keep your cash in your bank account

· The program is available for FHA/VA approved Condos in Kapolei/ Ewa Beach etc. These were considered rural areas in the 2000 census and will most likely be removed after 2010 census results in 2011.

· Zero To Move In - If properly set up, you wont need to bring any cash to closing. The average is just about $158 or so to close with a USDA Rural Home Loan in Hawaii

· Down Payment Assistance - Seller assisted Down Payment Assistance has been eliminated for FHA but is still available for USDA Home Loans.

· No Monthly MI - On a $200,000 home you could save up to $11,000 in mortgage insurance payments over the next 10 years as compared to FHA

· A Good Portion of Honolulu County qualifies for USDA Rural Home Loans - Ewa Beach, Makakilo, Kunia Kapolei, Waianae, North Shore and Waimanalo http://eligibility.sc.egov.usda.gov/eligibility/welcomeaction.do

· Generous Qualifying Ratios - Due to low rates, No MI and superior performance of the USDA Rural Home Loan it is much easier to qualify than for Conventional or FHA Mortgage Loans

· Not just for First Time Home Buyers

· No HVCC Appraisal Backlog (like there are for Conventional or even VA loans)

· Income Limits for Honolulu County (115% of Median Income)

1-4 Person $109,400 5-8 Person $144,400

Post Fed Market Update in Hawaii

Jay Oku (EVERGREEN HOME LOANS) — Wed, 11 Feb 2009 02:39:50 -0600

Bye Bush Hello Change...

Well, I give our new President a lot of credit for taking this enormous Trillion dollar economic comittment on. At least the days of blaming Bush for everything will be over. We are the United States of America and are sure acting like a divided country.

One steady aspect of America is our committed and selfless military force. Amen.

As temporary as it may be, this Refinance Boom has been a blessing for many. Today I saved a soldier $300 per month by simply refinancing his Ewa Beach condo with a Streamline VA Refinance. Now when he is transferred after his 3 year stay on the Hawaiian Islands he will be able to rent his property out and break even on his payment. Exit strategy is the best sales angle these days. Another borrower that closed this week was able to pay off debt and lower her total monthly housing payments over $550 per month as well.

On the flip side, due to tightened regulations (tightened in the wrong areas) many are not able to take advantage of todays low interest rate environment. For example, I visit numerous Real esate agents who wish and pray that they could refinance their properties, but their loans have a snowballs chance in hell of getting approved due to their self-employment status and their soft sales income . I am working with a Major who has significant income, adequate assets but low equity. The original Loan Officer sank him into an 80/20 loan and values have moved laterally. Ideally we would like to get him into a VA loan but the guidelines require 10% equity in order for the switch from Conventional to VA to happen. We can't get the Conventional loan because PMI companies have restriced Insurance on properties with < 75% owner occupancy.

Today I had Wells Fargo deny a 20% down purchase loan for my client, a well qualified nuclear engineer, due to the owner occupancy of the building being less than 75% a new Fannie guideline. I can understand that the PMI companies require a 50% owner occupancy but 75% with 20% down!? How is the housing problem going to be fixed if lending on condos is not possible?

Lenders are taking 30 days to process refinances and about 10 days for purchases. I have three banks that have been able to get a loan approved in 48 hours recently but it did take some constant pressure on my account executives.

Look for rates to flirt with 4.5% again, and when they do be sure to call me to have me lock your loan! Do not let greed let you wait too long. Inflation is bound to rear its ugly head again.

Peace be with you...

A Hui Hou

Mortgage Underwriting Bottleneck of January 2009

Jay Oku (EVERGREEN HOME LOANS) — Sat, 31 Jan 2009 02:39:27 -0600

With this monumental rise in mortgage applications both purchase and refinance it is not suprising that the banks are taking an extreme amount of time even to look at a Clean file...

December 17th I locked 4.375% with a slight rebate for a client then within 2 hours the rates were back up to 4.625%. Now the week leading up to 1/9/09 we are ready to slide a little lower due to the enormous instability that these horrendous jobs reports and other economic fiasco (bailout) news.

All systems are a go with the Team! Rachel, former bank underwriter is my processor and she is mentally and organizationally prepared to handle the flow of PDf's and Docs to and from the Banks. Chase, Wells Fargo, Plaza, SNMC and numerous other account executives are primed up and ready to compete for our business to give our clients the best possible rates... These bank professionals earn their healthy pay when times are good. Locks are made frantically and ...

Thats where the bottle neck begins...

Eventually the bombarded appraisers type the finishing touches on the report, days even weeks after they inspected the property.

Slowly the files pile up; paper.... loads and loads of paper wrapped into folders to make them thick and more anonymous; the underwriter who peels one maybe two before lunch then three, four, maybe five off of the endless stack per day. Yesterday they officially require all files to extend to a 45 day lock at the expense of the client.

I call daily only, once maybe twice, at a strategic moment to kindly and very gently (with respect to their time) ask the underwriter which files she/he has looked at and if she/he has a need for anything at all that would help them approve the file. When I worked at a larger Banker I had to be even more careful around the underwriters as they had 9 - 12pm quite time.

Fortunately our relationships are solid and loyalty to those banks even in slow times now pays off.

Although I sound frustrated with the delays in this boom (caused by a panic response to economic catastrophe of undefinealble proportions), I am actually overwhelimingly grateful and am on a mission to help as many families and individuals save as much money as possible with the lowest rates ever and realistic and fair costs.

If I can help anyone you know with their mortgage I will make sure that they thank you sincerely for sending them my way. (808) 393-0707 (949) 874-2145

Thank You to the New Year

Jay Oku (EVERGREEN HOME LOANS) — Tue, 06 Jan 2009 02:16:27 -0600

How was your Christmas/ Hannukah and New Years?!

Happy New Year 2009 from our family to yours!

The Year started off fantastic for my lovely wife Yuka, and baby Ai (now 15 months) and myself.

Rates in the 4% range!!! Perfect Christmas present!!!

Fortunately we were able to give back a lot this year as well; the first five refinances of December 2008 I was able to save my repeat clients over $260 each ($880 mo. on one) on their monthly mortgage payment!

Just tonight 1.5.09 I recieved this New Years note from a customer that is closing tomorrow:

Thank you so much Jay, you are really getting us off to a good new year and I appreciate that. I feel really good about what you have helped us to accomplish, especially because we are dealing with a local bank and that's what we wanted to do for the longest time.

I hope all of your customers know what a great job you can do for them and appreciate you and all your staff that makes it happen. It is very hard to find honest people like you and especially people who deal with your finances. I feel very blessed and honored to have crossed path's with you on a personal level as well as professionally.

Many thanks - Erica

So as the refinance pipeline fills up more and more each day I always take a mintue to reflect on how fortunate we are to be able to help people in the midst of the worst precipitous economic decline since the Great Deppresion. Those of us who held on when things looked real grim are now able to come back up and breath again; to thrive again. I am especially grateful for relationships with friends and business associates like David and Tonya Kucic of Re/max Honolulu who maintain the most optimistic and always positive attitudes. They have consistently validated me as their loan officer to their clients and I appreciate it. If you are in the market to purchase real estate in Hawaii you definitely want to visit their website; you will be WELL looked after.

Last but not least I just want to thank the Active Rain Community for its positive outlook and support throughout this crazy point in history. Just having this community make tough days better.

and Very Lastly but most importantly... Thank you to our troops and their families for making sacrifices so we can carry on our lives in saftety! Bless you all and come home safely!

Happy New Year and keep up the great work.

A Hui Hou!

J Oku

Rates~ Too Good To Be True if you can't Renogotiate your Lock?

Jay Oku (EVERGREEN HOME LOANS) — Mon, 29 Dec 2008 04:16:40 -0600

If you have your Loan Officer (LO) lock in an interest rate on your approved loan and find out that rates dropped another .75% from 5.5% to 4.75% would you urge he/she to change banks to get the lower rate?

Are you aware of Rate Lock Renegotiation (RENO) and is your Mortgage Broker/Banker proactively looking to save you money by renogotiating your rate? This applies to VA and Conventional Loans.

As a mortgage broker this recent drop in rates has been both a blessing and a challenge. Fortunately, refinance applications have increased substantially, yet although rates have hit all time lows (4.375% with no points 12.17.08 and now back up to 4.875% at the time of this blog 12.29) many people are anxious to lock but are sitting on the proverbial fence nervously waiting for bonds to move higher and interest rates to drop further.

The major challenge to (ethical) Loan Officers is presented when we lock a rate, per the request of the client, and then interest rates continue to fall. If the bank the loan is approved with has a RENO Policy then RENOgotiate it is (See Below for example). If not, do I maintain the rate or switch banks and lock elsewhere to save the client money?

Many of the nefarious types have been weeded out of this business, however you may be working with a Loan Officer who keeps the same rate and tells you that once you are locked there is nothing he can do (meanwhile he switches banks and harvests a much larger rebate from the bank). On the other hand you could be working directly with a bank that simply does not have a RENO policy in place which requires you to maintain the higher rate. One more scenario that I must succumb to as a broker is an internal bank/broker rating system. We Brokers are rated with each bank on our pull through ratio ( # of locks that actually close), and once your ratio drops below 70% the lender could terminate the business relationship. The practice of locking in an interest for safety then pulling that loan and submitting and locking with another bank on price is now "extremely" frowned upon and is becoming difficult. I am forced to start favoring banks that have RENO policies in place even if there rates are slightly higher.

If rates drop during the rate lock period and the broker requests a lower rate, the loan can be renegotiated for a 0.375% - .625% fee. This fee can be built into the discount/premium quoted. This policy cannot be used to increase the compensation for the broker.
Broker may raise the premium to cover the 0.375% fee, but may not make more than the original premium.

Depending on the amount of market movement, the new premium may be lower than the original premium. If the increase in premium is insufficient to cover the 0.375% fee and provide the broker their original premium, the full 0.375% fee will still be charged and the broker will receive a lower premium.

Here's the rules:

* Market rate is lower compared to rates at the time of rate lock (improved market).
* Loan will maintain original lock period and expiration.
* Only available on loans with locks of 60 days or less.
* The broker rebate will be capped at the original price.

* Limit one renegotiation per loan.
* File must be received
* Expired locks are not eligible for renegotiation (loans that have been extended prior to original expiration
are eligible).
* Loans that have been Worse Case Priced for any reason are not eligible for renegotiation.

(Lock Renegotiation Policy, CitiMortgage Wholesale Lending 2008)

Currently Citi, Wells Fargo, Metlife, BOH, Plaza and a few other large banks are accepting Rate Renegotiations. Other banks sush as Central Pacific Bank, FHB, SNMC have yet to introduce a RENO policy and furthermore are some are threatening to charge the broker approximately $2000 if the client who the broker helped get a loan within 6 months refinances for any reason!!!?

Homeowners and home buyers are expecting me to help them lock the best rate possible to save them as many pennies as they can in this constricting economy and I will do everything in my power to help them do just that. If I can help... call me anytime 808-393-0707.

VA HOME LOAN TOOL - What can a e5, e7 or O3 afford in Hawaii?

Jay Oku (EVERGREEN HOME LOANS) — Fri, 03 Oct 2008 18:41:43 -0500

VA HOME LOAN TOOL

This is a tool that helps identify the maximum (conservative 40% dti if debt is low) loan amount that each rank can qualify for in Hawaii and Alaska. This tool uses Basic Housing Allowance (BAH) only and does not factor in COLA or BAS (if it did the loan amounts would be much higher).

You can always contact me www.directnationallending.com to get prequalified because approvals do vary based on credit worthiness and residual income as well.

Rates are hovering around 5.875% at Par and should stay at or below 6% until the election.

The VA homeloan still allows 100% financing and the maximum conforming loan limit has been increased up to $729,750 per the Dept. of Veterans Affairs until the end of the year.

If you need a knowledgeable, strong negotiating real estate agent (retired First Sergeant) to help you find a home in the price ranges listed below you will be doing yourself a favor by contacting he and his wife Tonya at www.davidkucic.com. Team Kucic and I have helped dozens of our Nations Finest secure sound real estate investments on Oahu.

May God Bless our Troops!

2008 BASIC ALLOWANCE FOR HOUSING (BAH)

BAH (W/DPNDNTS) PP$ BAH (W/O DPNDNTS) PP$

E9 $2868 $475k   E9 $2201 $370k
E8 $2650 $440k   E8 $2148 $350k
E7 $2460 $410k   E7 $1993 $325k
E6 $2286 $375k   E6 $1873 $310k
E5 $2114 $350k   E5 $1794 $300k
E4 $1985 $320k   E4 $1669 $270k
E3 $1985 $320k   E3 $1669 $270k
E2 $1985 $320k   E2 $1669 $270k
E1 $1985 $320k   E1 $1669 $270k

W5 $3064 $510k   W5 $2502 $410k
W4 $2906 $480k   W4 $2329 $390k
W3 $2769 $460k   W3 $2206 $370k
W2 $2538 $420k   W2 $2147 $350k
W1 $2289 $375k   W1 $1935 $320k

03E $2930 $480k   03E $2286 $385k
02E $2734 $450k   02E $2189 $365k
01E $2497 $420k   01E $2114 $350k

07 $3455 $575k   07 $2824 $470k
06 $3415 $570k   06 $2769 $450k
05 $3387 $560k   05 $2593 $425k
04 $3130 $520k   04 $2477 $400k
03 $2760 $450k   03 $2234 $370k
02 $2282 $375k   02 $2069 $340k
01 $2134 $350k   01 $1855 $310k

Ratewatch October 08

Jay Oku (EVERGREEN HOME LOANS) — Fri, 03 Oct 2008 18:20:53 -0500

Friday October 3, 2008

Aloha Friday!

I will be available by telephone and e-mail all weekend for your mortgage needs! I look forward to your call.

"The only function of economic forecasting is to make astrology look respectable." John Kenneth Galbraith

Below I have rates (on average) from the top 5 National and Local Banks; I recommend floating while we await the reaction to the rescue bill that was voted on favorably this afternoon:

5.875% 30 year Fixed Rate at Par

5.625% 5/1 ARM

5.875% VA 30 year Fixed Rate at Par (with a .125% rebate towards your closing costs)

6.5% Jumbo Rate at Par

Jay Oku, Real Estate Finance

CA Cel (949) 874-2145 HI Cel (808) 393-0707
Fax (888) 327-2085
jay@mortgage808.com
www.directnationallending.com

" The finest compliment I can ever receive is a referral from my friends and past customers."

Stay Grateful and Stay Positive

Jay Oku (EVERGREEN HOME LOANS) — Tue, 26 Aug 2008 17:44:27 -0500

Needless to say stress levels are running high if you are in the Real Estate industry.

For me, there is nothing a smile from my 1 year old, a little excercise or a good surf won't fix.

But sometimes it takes more than that. Sometimes you just need to be reminded that while there are always reasons to be grumpy, there are a million more reasons to be grateful and positive.

Take a look at this guy...

Take a look at his smile...

God Bless out Troops!

Best wishes to you and yours...

A Hui Hou

VA Streamline Refinance

Jay Oku (EVERGREEN HOME LOANS) — Fri, 11 Jan 2008 02:49:26 -0600

This is a terrific way to show your VA clients that you are sincerely looking after their best interests.

The Interest Rate Reduction Refinance Loan aka IRRRL is a low cost way to help your VA clients refinance their home with ease and save money on their monthly mortgage. This week par Rates on the VA IRRRL were 5.5%. At 6% - 6.25% all closing costs can be paid through the Bank Rebate if you have a willing/generous mortgage originator (if not call me):

IRRRL Facts for Veterans*

"IRRRL stands for Interest Rate Reduction Refinancing Loan. You may see it referred to as a "Streamline" or a "VA to VA." Except when refinancing an existing VA guaranteed adjustable rate mortgage (ARM) to a fixed rate, it must result in a lower interest rate. When refinancing from an existing VA ARM loan to a fixed rate, the interest rate may increase.

No appraisal or credit underwriting package is required by VA. You should be aware, however, that lenders may require an appraisal and credit report anyway.

A certificate of eligibility is not required. Your lender may use our e-mail confirmation procedure for interest rate reduction refinance in lieu of a certificate of eligibility.

An IRRRL may be done with "no money out of pocket" by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs. (Remember: The interest rate on the new loan must be lower than the rate on the old loan unless you refinance an ARM to a fixed rate mortgage).

An IRRRL can be done only if you have already used your eligibility for a VA loan on the property you intend to refinance. It must be a VA to VA refinance, and it will reuse the entitlement you originally used. You may have used your entitlement by obtaining a VA loan when you bought your house, or by substituting your eligibility for that of the seller, if you assumed the loan. If you have your Certificate of Eligibility, take it to the lender to show the prior use of your entitlement.

The occupancy requirement for an IRRRL is different from other VA loans. When you originally got your VA loan, you certified that you occupied or intended to occupy the home. For an IRRRL you need only certify that you previously occupied it.

The loan may not exceed the sum of the outstanding balance on the existing VA loan, plus allowable fees and closing costs, including funding fee and up to 2 discount points. You may also add up to $6,000 of energy efficiency improvements into the loan."

*Courtesy of http://www.va.gov/

VA Streamline Check List

Forms to be signed/filled out prior to submission

-URLA (1003)

-No Income, asset or liabilities listed (current lien holder and

account number listed)

-VA addendum to the URLA

-Nearest living relative form

-Certificate of Eligibility Form 26-1880

-VA Benefit-Related Indebtedness Form 26-8937

-Federal Collection Policy Notice Form 26-0503

-Borrower's authorization form for us to order credit supplement

-IRRRL loan worksheet

For a limited time we can waive the .5% Funding Fee and all Non Allowables.

Show your VA homeowner clients that you are looking out for them and tell them about this program.

Good Luck!!!

2008 will be remembered for economic resilience...

Jay Oku (EVERGREEN HOME LOANS) — Sat, 15 Dec 2007 12:21:51 -0600

There once was a day, not long ago, when it seemed as though lenders would simply check to feel if a borrower had a pulse before they would print loan docs for a $600,000 home purchase. Mortgage Company owners in 2003 - 2005 attempted to entice some of us mortgage originators to join their companies from the cockpit of their new Ferrari or with partnerships in their luxury yachts or Private Jets. Money was being given away and nearly all metropolitan hubs were buzzing to the hum of soaring equity and their mental cash registers.

Well now that the days of the 1% teaser rates with a 580 FICO score, No Income - No Assets and 125% financing are over and we are back to common sense underwriting, I am glad to see that many of the Riff Raff mortgage unprofessionals will be jumping the mortgage banking ship in 08.

With the entire global economy feeling the shockwave of our mortgage industry, 2008 is going to be a year of slow recovery and eventual (fingers and toes crossed that the Feds injections of liquidity help) US economic resilience similar to the dexterity that was displayed months after Black Monday 1987 or the days of "Irrational Exuberance" of the .com crisis.

In 2008 we, the Active Rain Real Estate Community along with the rest of the real estate professionals should be excited to educate our current databases and the new generation of real estate investors that real estate is still a sound long term investment with todays low conforming rates, the time to invest in a second home for Baby Boomers (in Hawaii (o:) has never been better and that getting back to the traditional basics of saving for a down payment, keeping debts in control and monitoring credit should be the focus of all first time homebuyers. Although many are in a position where they are leveraged by their current real estate and can not fathom purchasing right now, there will be many opportunities for first time home buyers and investors in 2008.

Last but not least we must remember that we are still at War, and that thousands of our friends, daughters, brothers, fathers, mothers and loved ones are in the Middle East protecting the Freedom that we enjoy each and every day. Write a soldier in 2008! I am committed to helping our Veterans with their VA Home Loans and helping them obtain their well deserved piece of the American Dream in 2008!

Happy New Year!!!

10 Days into Parenthood

Jay Oku (EVERGREEN HOME LOANS) — Wed, 03 Oct 2007 05:08:39 -0500

With all of the drastic changes in the mortgage lending arena, tightening of guidelines and panicked clients our baby could not have chosen a better time to enter this world 9.20.07 at 18:18pm.

The last week has been an experience that I am trying to hang onto for years to come. My life, more appropriately, my priorities have changed so dramatically that I feel like a new person. It comes from waking up to a little mini-me and looking into her wonderous eyes and at her tiny little fist of fragile fingers. I feel so connected to my family now from having two lives completely dependent on me and my real estate finance career for their well being.

Now as I work with clients I am more precise, more compelled to do an exceptional job and more excited than ever to get home to hold our baby after a productive day.

At a signing yesterday I met with my clients and their 3 month old and it dawned on me how my profession is so directly related to helping families with their immediate and long term goals.

This retired air force veteran and his wife were sold into an Option Arm with a 9% fully indexed rate and a $15,000 prepayment penalty. They intend to hang onto and pay off their property and said that they were not aware of the dynamics of the loan which is designed for short term investors.

I always new that providing people with sound mortgage advice was helpful and made for a meaningful career, yet now I see the need to help as many families as possible before some Hack of a loan officer sells a family a loan that only serves his pocketbooks best interest not theirs.

With so many concerns in life the last thing someone needs to worry about is a greedy finance professional to sabotage their goals.

I look forward to be more active in this incredible community now that I am into my third week of parenthood!

Aloha

MEME ME? This is a good thing right?

Jay Oku (EVERGREEN HOME LOANS) — Sat, 01 Sep 2007 21:52:12 -0500

Thank you to Jeff Belonger I have been given the task, honor?, duty of writing a MEME. Although this is all new to me, I am always game. So... I am to reveal five things about Me:

1. I am a big fan of this Active Rain thing. In college I would have been voted "Least Likely to Blog" however in the "midday sun" of my professional career I couldn't have found a more interesting, revitalizing community of like minded professionals anywhere. I tip my hat to Bruce Bourgault and David Kucic for opening this world up to me.

2. I am about 24 hours - 10 days away from being a father! My wonderful wife Yuka is 38.5 weeks pregnant. You know that I am into the fatherhood thing when I talk in weeks! We are having a girl and I couldn't be more excited and concerned about raising her. Praying daily for her good health! Having a child is a great reason to focus on originating more loans!!!

3. Life Work balance is improtant to me. Here in Hawaii Golf is as common as Surfing and I love both. I enjoy surfing enormous mountains on the North Shore and have been doing so since I was 17. I have built a quiver of over 15 boards ranging from 6 feet tall to 12 feet tall and have recently picked up Stand Up Paddle Surfing and took 3rd place in a 8 mile race in August. My golf game needs work but doesn't all of ours?

4. I don't take Freedom lightly and I support the United States Military. We are able to help people obtain the "American Dream" because our soldiers protect the "American Dream". God Bless Our Troops!

5. I hired a coach. Never thought that I would go that route in my career, yet it has been rewarding to say the least. Most coaches study psychology, sociology, salesmanship and mine is extremely knowledgeable about Real Estate and more importantly the Mortgage Industry and she adds a new perspective to each day. My coach holds me accountable and has high expectations (15 loans a month personally high!) for me. Sure, without a coach I would still enjoy what I do and would be successful, however just like working out I reached a plateau and she is helping me break through that plateau and reach way higher. It has been a wild ride and I intend to buckle up and hang on for the ride!

Oh... One more Thing. I am a HUGE San Diego Charger fan!

Aloha! and thanks for reading...

$$$ Referral$

Jay Oku (EVERGREEN HOME LOANS) — Wed, 22 Aug 2007 05:46:03 -0500

Lately, I have been overhearing many loan officers baiting Realtors with kickbacks for referrals (along with other desperate actions to get some business: see David Kucics blog) so I had to go back to the books (www.hud.gov) to refresh my memory about the do's and don'ts of referrals and RESPA. RESPA ~ HUD's Consumer Protection Laws Explained... Now noone can say they didn't know. In many states, Real Estate licenses are granted without close examination of an applicant's knowledge of RESPA guidelines. As a result, many Real Estate Agents go into business unaware that certain practices are prohibited via Federal statutes enacted by the US Department of Housing and Urban Development. RESPA stands for the Real Estate Settlement Procedures Act. Introduced in 1974, RESPA law is designed to protect consumers in the process of purchasing a home. RESPA requires lenders to provide consumers with disclosures (Truth−in−Lending Disclosure Statement) at various stages throughout the loan process, and also prohibits kickbacks and referral fees that would increase the cost of settlement services for consumers. There are two main points of the law that affect referral relationships between parties involved in the selling of a home: Prohibition of kickbacks. RESPA states that no one can give any "thing of value" in exchange for referrals. According to RESPA, if a Real Estate Agent refers business to me, I cannot even send them a gift certificate as a way of saying thanks. This applies to any people involved in a Real Estate transaction. If a client of yours refers another person to you, you can't reward them with any "thing of value" in exchange for the referral. Can you have a party and invite all your past clients and include referral sources? Yes. But you cannot exclusively invite referral sources, as this would constitute a provision of something of value in exchange for referrals according to RESPA. Can you give a client a thank you gift after a transaction closes? Yes. Giving new homeowners a house−warming gift is great marketing tool to implement after the deal is closed. However, you cannot give them a thank you gift in exchange for referring additional business to you. Prohibition of defraying costs. RESPA law indicates that normal promotional and educational practices are permissible, as long as there is no defrayment of cost involved. If you enter into a cooperative marketing campaign with a Loan Officer, Title Rep, or any other professional, the other party cannot pay for your portion of the costs. Costs for advertising and distribution must be divided proportionately. For example, if your name and image branding takes up ¼ of the advertising space in a co−op marketing campaign with a Loan Executive, then the LO should pay 75% and you should pay 25% of the costs, based upon fair market values. I am not an attorney so be sure to Penalties for violations include up to $10,000 in fines and/or up to a year in prison. Details on RESPA laws can be found at www.hud.gov.

Aloha from a BC native

Jay Oku (EVERGREEN HOME LOANS) — Tue, 21 Aug 2007 06:43:06 -0500

Aloha,

My name is Jay and my family moved to CA then HI when I was a young man. Real Estate has been my life for the past eight years however , I must admit my knowledge of Canadian real estate and Canadian mortgage lending is minimal. That is why I am writing.

My wife is 37 weeks pregnant and as we prepare for parenthood we discuss our goals always and often. We ultimately would like to live in our home on Oahu, Hawaii Sept. - April then live in Vancouver May - August. Doesn't that sound perfect!!!

Even though I don't plan on actually making the transition for a few years and until I have my operations here on the island turnkey, I will need to make a purchase as soon as the market settles a bit over there. So, now I need to put the rubber to the road and make it happen.

Can anyone let me know if now is the time to buy? As I watch the global markets it seems as though the exchange rate is as close as it has ever been to the US in a long time and the credit markets must be tight up North as well? Do Canadian banks offer low downpayment loans? Do they offer stated income loans? Do they use US credit?

This is the begining of a road that leads to a long term goal so your patience with me will be greatly appreicated.

Aloha from a BC native

Jay Oku (EVERGREEN HOME LOANS) — Tue, 21 Aug 2007 06:34:09 -0500

Aloha,

This is the begining of a road that leads to a long term goal so your patience with me will be greatly appreicated.

Keep us all working

Jay Oku (EVERGREEN HOME LOANS) — Tue, 21 Aug 2007 04:19:22 -0500

This post is intended to keep us all working ... period! I will keep you informed as info is available and will pass along issues that I have seen or been through as this situation develops so that we can all be better prepared to succeed in this volatile market. If you have clients in need of financing in Hawaii or California I hope to earn your confidence and referral.

Okay, on with today's update:

As the saying goes: "Everything old is new again". Most of us have been through this before. Here's a few things we've learned from our own experience or from speaking with some of your veteran peers over the last few days:

Get on the phone with your buyers!

Give them some of the info noted in the e-mail below. They're probably nervous so just hearing from you will probably make them feel better.

Encourage them to call their mortgage contact person and make sure everything is moving forward

Make sure that they have turned in any and all documentation. This point is especially critical if the buyer is obtaining any type of alternative financing. We're receiving e-mails daily from our wholesale lenders telling us about programs that are being removed and establishing criteria for loans already in process but not approved or locked. If they're missing paperwork that's holding up approval, they may not be allowed to close under that program!

Get on the phone with your sellers!

Again, update them on the current market conditions. Changing program availability will likely reduce the number of qualified buyers so as we move forward over the next weeks and months "priced right" homes will be the ones that sell! Do this in conjunction with your mortgage person. Sometime's 3^rd party validation helps get the seriousness of the market conditions across and will help clients make better decisions with more confidence.

All listing clients should be pre approved for their next home.

Ask them to call their mortgage person if they are pre approved to make sure that market conditions have not changed their approval status, program options or interest rate range so that they have current information about the financing of their next home.

Ask them to call your mortgage person if they are not pre approved to make sure that they have a way to move into their next home when you sell their current one! A good tip here is to ask them in an e-mail: "What time would be good for me to have Jane Smith from Wicked Good Mortgage Company call you?". When they respond, forward the e-mail to Jane. This allows Jane to call your client even if there phone number is registered with one of the Do Not Call lists and you're not waiting for your client to make a call. This will save you a lot of time, money and effort in marketing a property that the owner may not be financially able to move out of!

Your mortgage person (or their's) should also be assisting them with a "Seller Net Worksheet" so that they are:

Educated on their financing options and how much or how little they need to put down on their next home

Prepared for price reductions (knowing that there are options that don't require a lot of equity gives them more confidence with a lower offering price)

Prepared for the harder negotiations that will most likely come in this market (they are more prepared to be reasonable if they know what they need to, realistically to net from the sale)

Get on the phone with the co-broker!

Make sure that their listing client is all set with their financing so that doesn't delay closing or at least there's time to offer help or make accommodations if necessary.

Make sure that their buying client is doing all that's necessary in a very timely manner to clear any conditions on their loan pre approval or commitment letter or, again, there's time to offer help or make accommodations in the contract.

IT WILL TAKE THE VERY BEST EFFORTS FROM ALL OF US TO ENSURE THAT HOME BUYERS AND SELLERS HERE, IN HAWAII and CALIFORNIA CAN ACHIEVE THEIR GOALS.

The more we focus our energy here, the better the chance that we, all of us, endure and succeed in this market.

To our success!

Boost Credit Scores

Jay Oku (EVERGREEN HOME LOANS) — Sun, 19 Aug 2007 16:02:13 -0500

For immediate release August 27, 2007

Getting the Best Interest Rate on Your Home Loan?

A Qualified Mortgage Consultant Can Help Boost Credit Scores

By Jay Oku, Mortgage Consultant
MortgageSource LLC

Honolulu, Hawaii - Consumers interested in purchasing or refinancing a home will pay an interest rate based on current market conditions and their ability to pay back the loan. The borrower's income and debt ratios are taken into consideration by the lender, as well as the predictability factor provided by credit scoring. It's important to have a mortgage professional in your corner that has a keen eye for solutions to improving credit scores in an effort to get the best interest rate possible.

Interest rates associated with various loan programs are broken down into schedules based on credit score ratings. While each lender has its own guidelines, it's safe to assume that as the consumer's credit score goes down, interest rates will go up.

A borrower with an outstanding credit rating will get what is called an A-paper loan. This type of borrower is rewarded with a lower interest rate because they have a proven track record of using credit sensibly and paying their bills on time.

Loans designed for consumers with less-than-perfect credit - sometimes referred to as "sub-prime" - can range anywhere from A-minus, B-paper, C-paper or D-paper loans.

If you have already taken out a mortgage loan with a higher interest rate because your credit score was a little under par, you will really appreciate the value in doing a little work to improve your credit score. Refinancing from a D-paper loan to a B-paper classification can save literally thousands of dollars in financing fees over time, even though the B-paper loan is still considered sub-prime.

A qualified mortgage consultant will guide you through the nuances of the process of improving your credit score to refinance and save money. First and foremost, he or she will want to review the terms of the existing mortgage loan to determine if you have a pre-payment penalty clause written into your contract. In general terms, that means that if you sell the home or try to refinance before the pre-payment penalty expires and you have not already paid off 20 percent of the original loan amount, you will most likely have to pay a 3 percent fee back to the lender to compensate for the high risk and high costs incurred to provide that financing.

Next, you should obtain free copies of your credit reports from http://www.annualcreditreport.com/ and start working on improving the credit score six months prior to the expiration date on your existing pre-payment penalty.

There are five factors that make up the credit score and your mortgage consultant can coach you through some basic strategies to improve your credit score. This means very conservative use of credit cards, paying off debt as much as possible and not applying for additional credit cards unless you will benefit from such action. You will want to verify that negative items you have paid off are being removed from your credit report, and that good credit history is being reported to all three bureaus. You'll also want to dispute any errors that appear on your credit reports and seek to have those removed entirely.

Once your credit score improves, it's time to refinance at a better interest rate. Your mortgage professional should look for a program that carries no more than a two-year prepayment penalty so you can continue to refinance as your credit score increases. You can repeat this process until you reach A-paper status and secure the best interest rate available.

This is a strategy that also works well for first time home buyers who do not have enough credit history under their belt to get an A-paper loan at the time of purchase. The important thing is to work with a mortgage consultant who can give you a roadmap to follow and a strategy for success in building personal wealth.

Jay Oku is affiliated with MortgageSource LLC, a Licensed Broker, HI Department of Real Estate.

Boost Credit Scores

Jay Oku (EVERGREEN HOME LOANS) — Sun, 19 Aug 2007 14:52:27 -0500

For immediate release August 27, 2007

Getting the Best Interest Rate on Your Home Loan?

A Qualified Mortgage Consultant Can Help Boost Credit Scores

By Jay Oku, Mortgage Consultant
MortgageSource LLC

Loans designed for consumers with less-than-perfect credit - sometimes referred to as "sub-prime" - can range anywhere from A-minus, B-paper, C-paper or D-paper loans.

Jay Oku is affiliated with MortgageSource LLC, a Licensed Broker, HI Department of Real Estate.

Press Release: Mortgage Market Crisis

Jay Oku (EVERGREEN HOME LOANS) — Sun, 19 Aug 2007 14:48:05 -0500

For immediate release August 20, 2007

Local expert available to comment on mortgage market crisis

Dear Editor,

You're faced with the challenge of informing your readers about how the national credit crisis is going to affect them locally. I'm here to help.

I've worked in the mortgage industry for 8 years, and I've funded over 478 loans in my career - and I've seen this market hit many highs and survive some tough lows. Let me be your resource as you cover this rapidly changing market.

Here are some of the questions I know readers are considering, and I would be happy to lend my experience and expertise to help answer them:

What is the "meltdown" that I'm reading about in the headlines?

•¨ Sample Quote: "This refers to a culmination of factors that has led to massive tightening in credit standards among lenders. This tightening is due to an excessive number of mortgages that are both delinquent and in default. As a result of tighter credit standards and the devaluation of mortgage-backed securities, global investors are shying away from purchasing additional pools of loans, causing over 100 lenders to close and leaving many homebuyers and homeowners unable to locate financing alternatives."

Why should a home SELLER be concerned about this?

•¨ Sample Quote: "The pool of potential buyers will shrink as many find it difficult, if not impossible, to obtain mortgage financing. Experts have speculated that the number of potential buyers will contract anywhere from 15% to 30%. Sellers should also be aware that increased foreclosures can depress community values and result in a glut of local inventories, which could further drive down home prices."

Why should a home BUYER be concerned about this?

•¨ Sample Quote: "Buyers need to get pre-approved before entering the market. While there are a lot of great deals out there, getting credit is becoming tougher and tougher, and it's taking longer and longer to complete a transaction. What you qualify for today could change tomorrow in this volatile market."

What types of loans have been most impacted by credit tightening?

•¨ Sample Quote: "Subprime and Alt-A have suffered the greatest setback because these borrowers are at greater risk for defaulting. Subprime loans are those loans which have typically been taken by borrowers with poor credit. Alt-A type loans are for borrowers that typically have good or excellent credit but are unable or unwilling to provide documentation for income and/or assets."

What is the impact on the real estate market?

•¨ Sample Quote: "The National Association of Realtors estimates that home sales nationally will decline by nearly 13% in 2007. Median home prices nationally are projected to fall by 1.2% in 2007. According to the PMI Group, Inc., however, many local markets are experiencing price declines well in excess of that."

I look forward to hearing from you. My contact information is listed below.

Kindest regards,

Jay Oku

Jay Oku is affiliated with MortgageSource LLC, a Licensed Broker, HI Department of Real Estate. For more information, please call 808-393-0707.

Opportunity is knocking

Jay Oku (EVERGREEN HOME LOANS) — Mon, 13 Aug 2007 23:29:22 -0500

As an experienced Loan Officer, having to pass on a $1.85 million Purchase at 72% Loan to Value with a 665 FICO score and Stated Income Hurts. Having to tell past clients that due to their self employed status and 62% debt to income ratio we can not refinance their home hurts. Having a NYSE traded mortgage company that I worked with and respected implode last month and having many of my associates loose their jobs hurts. Having Dana Capital Group a broker that I funded 5 loans through at the begining of the year go bankrupt without paying me $20,000 in commision hurts.

With all of the hurt in the industry opportunity still knocks. Someone said "Every Adversity has within it the seed of equal or greater value." This is my new mantra...

Each morning I wake up before my wife (36 weeks pregnant today!) I turn on CNBC to get a clearer perspective on the economy. Each morning for the past few weeks I have been burdened with negative news about hedge fund managers that invested in sketchy Mortgage Backed Securities, the makets non existent appetite for these products and Feds temporary fix of injecting 38 billion into the the economy to help. Then people are interviewed and encouraged to disagree then I turn off the TV and do what my coach claims will help me reach my goals.

My coach has me E-mail him 5 things that I am grateful for every morning and call him with my daily affirmation. Today was "Every Realtor and Every One of My Clients Loves the Way I Work!". Then I have to contact 10 new contacts each day and record each conversation for his constructive critisism. I also send him my schedule for the following day each evening. It all sounds a bit cheesy but it definitely keeps the energy up and keeps me organized and focused. When I visited my Realtors this weekend I found that they are all in need of a kick in the butt when it comes to prospecting as well.

We will make it through this adjustment period and a few of us will actually earn a larger piece of the pie if we keep focusing on helping people and making the most of opportunities that come our way.