John's Blog

Credit information

Security National Mortgage Company — Thu, 03 Dec 2009 16:39:49 -0600

One aspect to doing loans in Hemet and home loans in California is to understand how credit can affect you. Here is a recently posted article that I included in an email to my customers in Hemet and Van Nuys regarding home loans and credit.

A Quick Recap!

A credit score is a number lenders use to help them decide: If I give this person a loan or credit card, how likely is it that he or she will become 90 days or more late in a 24 month period. A credit score is a snapshot of your credit risk at a particular point in time. It may range from 350 to 850 with the average consumer score being 686. Credit scores are provided to lenders by the three major credit reporting agencies also know as repositories: Equifax, Experian and TransUnion.

Five Factors Determining A Credit Score

1. Late payments.
2. Frequency and patterns of credit use.
3. How long credit has been established.
4. The number of times credit has been requested (inquires).
5. The types of credit (i.e. revolving, installment, secured, unsecured.)

How Credit Bureaus Rank your Credit Score

1. 35% is based on payment history.
A recent 30 day late payment is worse than a 90 day late payment that occurred more than 12 months ago. This can lower your score by 60 points or more.

2. 30% is based on existing balances.
Make sure the balances do not exceed 50% of the maximum limit on each card. Over 50% of the credit card limit will have a significant negative effect on your credit score. Distribute existing credit card debt among three to five cards.

3. 15% is based on how long your credit has been established.
Do not close accounts that have a perfect payment history and have been open for at least three years. These cards have a positive effect on your credit score.

4. 10% is based on types of credit.
A combination of credit types is best. For example, a mortgage, an auto loan and three to five revolving credit cards is ideal. Home equity lines of credit are reported as a credit card debt when the amount is less then $30,000. Try to apply for lines of credit for at least $30,000.

5. 10% is based on inquiries.
Credit inquiries from various industries can lower your credit score up to 60 points. If multiple mortgage inquiries are within a 30-day window, they count as one inquiry in total. This is also true for the auto and insurance Industry inquiries. Personal credit and bank account review inquiries do not count.

Tips To Help Protect Your Credit

1) Be very careful providing personal financial information over the internet. If you are going to provide credit card numbers, social security number, etc over the internet make sure it is through a secure website. Look for https:// instead of http:// at the website address and look for the little yellow padlock on the lower right corner of the screen.

2) Use a paper shredder when discarding any personal credit information such as credit solicitations, credit card statements, pay stubs, invoices, bank statements, etc

3) Keep a list of all credit card accounts with their respective customer service phone numbers in a safe place in the event your wallet or purse is lost or stolen.

4) Never use your full name on personal checks, use your initials instead. For example: J. Doe or J.C. Doe. If your checkbook is lost or stolen, no one will know how to sign your check (except for the bank.)

5) When paying your credit card bill, do not put your full credit card number on the memo line of your personal check. Only list the last 4 digits of your account number.

6) It is not wise nor is it necessary to carry your social security card in your wallet or purse. Commit the number to memory and keep the card at home in a safe place.

7) If your wallet or purse is stolen, contact one of the three credit bureausimmediately and have them issue a fraud alert. That credit bureau will notify the other two. This will be done free of charge and you will receive a credit report showing that the fraud alert has been issued.

Here are the three credit bureaus:

Equifax 800-685-1111 www.equifax.com
Experian 888-EXPERIAN www.experian.com
Trans Union 800-916-8800 www.transunion.com

As always, if you need help or advice, just respond . More to follow!

California Law In case you did not know

Security National Mortgage Company — Mon, 19 Oct 2009 16:08:04 -0500

While doing home loans in Hemet, California and San Jacinto, California we have discovered that knowledge is imperative. Here are some changes that will affect Van Nuys, CA, Hemet CA, San Jacinto CA and home loans and mortgages in California.

Realtors some of the changes affect you directly.

NEW CALIFORNIA LAWS FOR 2009-10 AFFECTING REALTORS AND LENDERS

The conclusion of the first half of the 2009-10 legislative session has brought many new laws that may affect California REALTORS® and their clients. Not surprisingly in the subprime aftermath, prominently featured among the new laws is stricter regulation of the mortgage lending industry. To view the full text and legislative summary of any of the following new bills, go to www.leginfo.ca.gov.

REO Buyer Can Select Escrow and Title: Effective October 11, 2009, the Buyer's Choice Act prohibits an REO lender selling residential property up to four units from directly or indirectly requiring the buyer to purchase escrow services or title insurance from any particular company. A buyer, however, who has received written notice of the right to make an independent selection, may agree to the REO lender's escrow or title recommendations. An REO lender that violates this law can be held liable for three times the charges the buyer incurred, whereas a violation by the seller's agent may be subject to license disciplinary action. This law expires on January 1, 2015. Assembly Bill 957.

No Advance Fee Loan Modifications: Starting October 11, 2009, a new law prohibits anyone from claiming any compensation for negotiating or arranging a loan modification until after that person fully performs each and every service as promised. Aimed at combating loan modification scams, this ban applies to upfront fees collected by real estate agents and attorneys. The ban expires on January 1, 2013. Also effective immediately, anyone who negotiates or arranges a loan modification must give the borrower a specified notice that paying a third-party for loan modification services is unnecessary. These new requirements apply to mortgage loans secured by residential property up to four units, with certain exceptions for lenders and loan servicers acting on their own behalf. Violations can be penalized by, among other things, a $10,000 fine plus one-year imprisonment for individuals, or a $50,000 fine for businesses. Real estate brokers with existing Advance Fee Loan Modification Agreements reviewed by the Department of Real Estate (DRE) can no longer, as of October 11, 2009, enter into these agreements or collect advance fees. Agreements entered into and advance fees collected before October 11, 2009 are not affected. For the DRE announcement, go to http://www.dre.ca.gov/pdf_docs/SB94WebAnnouncement(brokers).pdf. Senate Bill 94.

Advance Fee Redefined: Aside from loan modifications discussed above, Senate Bill 94 also broadens the definition of an advance fee which must be specially handled by real estate agents, such as by submitting an advance fee agreement for DRE review and placing funds received into a broker's trust account. Under the new definition that took effect on October 11, 2009, agents cannot separate advance fees or services into components to avoid the advance fee requirements. More specifically, an advance fee is now defined as "a fee, regardless of the form, claimed, demanded, charged, received, or collected by a licensee from a principal before fully completing each and every service the licensee contracted to perform, or represented would be performed." Exceptions include advertisements in newspapers of general circulation, tenant prescreening fees, and tenant security deposits. Senate Bill 94.

Mortgage Loan Originators Regulated: Beginning in December 2010, a real estate licensee acting as mortgage loan originator must obtain a license endorsement, which entails education, written testing, and reporting requirements. A mortgage loan originator is anyone who, for compensation or gain, takes a mortgage loan application or offers or negotiates terms of a mortgage loan for residential property containing one-to-four units. Exemptions include real estate agents who only engage in selling, buying, or leasing activities, unless compensated by a lender or mortgage loan originator. This license endorsement requirement comports with the creation of a Nationwide Mortgage Licensing System and Registry under recent federal law. Finance lenders and residential mortgage lenders under the Department of Corporation must also register in the nationwide system. Additionally, if a real estate broker or the broker's salesperson makes, arranges, or services loans secured by residential property containing one-to-four units, the broker must notify the DRE by January 31, 2010 or within 30 days of commencing such loan activity, whichever is later. Senate Bill 36.

Mortgage Broker Activities Restricted: Commencing January 1, 2010, a mortgage broker will be deemed a fiduciary with a duty to place the borrower's economic interest above his or her own. This fiduciary duty pertains to a mortgage broker who makes loans secured by residential property of one-to-four units. Also starting January 1, 2010, the law will strictly regulate higher-priced mortgage loans as defined, including requiring upfront disclosure if a mortgage broker only arranges higher-priced mortgage loans, restricting prepayment penalties and yield spread premiums, prohibiting negative amortization, and prohibiting mortgage brokers from steering borrowers to higher-cost loans. Assembly Bill 260.

Appraisal Industry Oversight: The Office of Real Estate Appraisers (OREA) will have regulatory oversight of appraisal management companies, which gained prominence after Fannie Mae and Freddie Mac adopted the Home Valuation Code of Conduct (HVCC). Starting January 1, 2010, the OREA must implement a registration system for appraisal management companies, including fingerprinting and background checks for persons with operational authority as defined. On a separate note, this law clarifies what conduct constitutes improperly influencing the appraisal process by anyone with an interest in a real estate transaction. Such prohibited conduct includes withholding or threatening to withhold an appraisal fee, withholding or threatening to withhold future appraisal business, and promising future business, promotions, or compensation. Senate Bill 237.

Mortgage Fraud Becomes a State Crime: As of January 1, 2010, anyone who deliberately makes any misrepresentation or omission during the mortgage lending process with the intent of influencing that process will be guilty of mortgage fraud under California law. A violation of this law is a crime punishable by one-year imprisonment. Under existing federal law, loan fraud against a federally-insured lender is a crime punishable by a $1 million fine, plus one-year imprisonment (18 U.S.C. section 1014). Senate Bill 239.

Increase in Homestead Exemptions: Coming into effect on January 1, 2010, the homestead exemption protecting a homeowner's equity from judgment creditors has been increased by $25,000 across the board to $75,000 for individuals, $100,000 for married couples or family units as specified, and $175,000 for persons over 65 years, disabled, or over 55 years with limited income as specified. Assembly Bill 1046.

60-Day Notice to Terminate Tenants Extended: Existing law generally requiring a 60-day notice to terminate a month-to-month residential tenant, which was originally slated to sunset on January 1, 2010, has been extended indefinitely. A 30-day notice to terminate is sufficient if the tenant has lived in the property for less than one year, or if the landlord has sold the property and certain requirements are met as specified in our standard-form Notice of Termination of Tenancy (C.A.R. Form NTT). The 60-day notice requirement does not apply to fixed-term leases, such as a one-year lease. Other laws address tenants in properties foreclosed upon. Senate Bill 290.
Other Significant Laws: Other new laws that may interest REALTORS® include, without limitation, the following:

Landlord Utilities: Requires certain utility companies to notify residential tenants of landlord's past due accounts and upcoming shutoffs, and allows tenants to begin service in their own names and deduct payment from rent (Senate Bill 120).

Mobilehome Parks: Prohibits management from requiring a homeowner to use a specific broker or dealer when replacing a mobilehome or manufactured home on a space in a mobilehome park (Senate Bill 804).

Swimming Pools: Requires anti-entrapment devices for owners of apartment buildings, condominium complexes, and others, including the filing of compliance statements (Assembly Bill 1020).

Mechanic's Liens: Provides new procedures, including service of a Notice of Mechanic's Lien to the owner and mandatory recording of a lis pendens when enforcing a mechanic's lien (Assembly Bill 457).

Low Water-Using Plants: Renders unenforceable any HOA provision prohibiting landscaping with water-efficient plants in common interest developments (Assembly Bill 1061).

Reverse Mortgages: Provides new disclosure and other requirements under the Reverse Mortgage Elder Protection Act (Assembly Bill 329).

Disposal of Records: Shields from liability businesses that dispose of abandoned records containing personal information by shredding or erasing, and gives a legal presumption that a tenant owns records remaining on the premises after tenancy termination (Assembly Bill 1094).

Plumbing Fixtures: Provides new disclosure and other requirements for water-conserving plumbing fixtures effective on or after January 1, 2014 (Senate Bill 407).

Thanks Arnold

Security National Mortgage Company — Tue, 13 Oct 2009 19:47:06 -0500

I have been involved in home loans in Van Nuys, The San Fernando Valley and most recently Hemet and San Jacinto for 20 years. I have seen up and down markets and I never fail to end up scratching my head when it comes to political action within the industry. Why is it that law makers find it neccessary to change the laws after the fact. California has always had stringent licensing guidelines and now we get a new set. We also now penalize our borrowers by no longer allowing them access to every loan program that might be available. Quite frankly I believe that the path to a recovery is more lending not less. Arnold came in as a Republican but has been a turncoat almost from the beggining. I have attached a link to the bills that he signed in to law today.

I wonder how much of our cash was used to debate a program that no longer exists. We are no longer allowed to offer Negative Amortization Loans in California. It's funny but I have not seen one available in quite sometime. I don't think they will be coming back very soon but one never knows. The reality is that the market place eliminated the program. Now if the market happens to find a way to bring it back we are out. Of course we can spend some more money to rescind the law then. We will also be spending money on testing mortgage originators (licensing is a good thing that we already do well) and then hiring a new enforcement crowd. Oh well, I guess that is what we get for being responsible for the current financial condition. Oh, wait a minute maybe it was not us maybe it was the multi-billion dollar companies that we bailed out even though they were responsible for selling the CDOs

http://www.latimes.com/business/la-fi-mortgage13-2009oct13,0,6365006.story

Hemet Hemet?

Security National Mortgage Company — Tue, 23 Jun 2009 01:04:48 -0500

Many know me as the owner of Symphony Mortgage Company. I was in Van Nuys, California for many years. Most who know me also know that I have been doing loans for 20 years. Some also know that I'm a drummer and that my passsion is music. A few years ago I had the occasion to meet a Realtor from Hemet, California. John Occhi and I met through a mutual relationship with an online realty service. After 4 years of working with John and others in Hemet, I moved in. That is to say that I have moved down to Hemet. It's a beautiful community and the change is awesome.

The question I'm asked most is where is Hemet and finally why Hemet. Well the answer is simple. Business in Hemet is awesome. I also felt that the community really benefits from local service companies. In Los Angeles I was used to constantly using email, fax, delivery and telephone to transact entire deals. I'm sure that my LA business will still be done that way. Down here though, I look forward to having the time and closeness to meet my customers first hand.

I've not posted in awhile. The loan business and the chaos it has created on a business and personal level has been a challenge. However I am back and in a big way. Security National is a great company. We specialize in FHA. We are a direct lender and we are not a bank! Like all there have been challenges with determining The Government's role in our business and the ever changing underwriting guidelines that cost time and effort. However, the market has picked up and the lenders, including us, have stabalized rules and guidelines. For now we are enjoying speedy underwriting times and great rates.

With John Occhi's help I was able to secure a nice home here and was introduced to a great bunch of people at a network lunch organization. They are responsible for my growth and even my son's. He owns a video production company called Another Happy Ending Productions and he's found that Hemet has been welcoming to him too. So when my friends say Hemet, Hemet? I say come on down and check us out. There's a lot to do and you won't be ignored like you are in the big city.

4.5 mortgage rates

Security National Mortgage Company — Tue, 16 Dec 2008 12:08:17 -0600

Ok so I've recieved some phone calls about the fed and rates. My clients that are at 6 and above are ready to refinance and seem very in to what they see on TV. This is what I've explained to them lately.

The Fed does not matter when it comes to mortgage rates. What matters is who is buying the coupons and right now it's you and I. Simply put the whole mortgage market has come down to 3 players. Fannie, Freddie and FHA. The first two are currently owned by us.

We basically are there without the help of the fed. I can quote 4.875 today at a cost to the borrower. Most of my clients are familiar with pricing because I go to great lengths to make sure they understand how much I make for assisting them with the process of getting a Mortgage Loan. I always find it rewarding for them to understand why they should pay the point and get that rate down. Of course when appropriate I will guide them the other way.

One of the things that occured when the fed funds rate was low, was the borrowing of money by certain companies that lent that money out at much higher rates based on high risk. We called that sub-prime lending. I don't see it coming back soon. Right now credit is tight and Fannie and Freddie are not helping by charging a premium for lower fico scores. Hopefully they will loosen up a bit and we can go back to helping those that are not postal workers or public school teachers to get a loan.

The Ultimate Solution

Security National Mortgage Company — Sat, 29 Nov 2008 13:03:11 -0600

Happy Thanksgiving from Sylmar, Van Nuys, The San Fernando Valley and the State of California. We are still lending, home loans, loan modifications, mortgages in Sylmar, Van Nuys, The San Fernando Valley and the State of California.

Well this has been an interesting year to say the least. I have been watching the Government reaction to the credit squeeze and I just can't understand why we just keep giving big bucks to the corporate structure. It seems like the correct action to take but I wonder if they might go a different way.

I mention this because I've spent most of the last few months realigning myself to work hard for REO business. I understand the business and I am exclusively working with Realtors that sell and list REOs. The grapevine says that we are about to have a big slowdown. Basically the banks are not foreclosing due to the fact that FNMA and FMAC have decided on a moratorium until January 9, 2009. It takes about 3 weeks or so from a bank getting a property to the property getting on to the market. With no new activity we can expect a cleaning of the pipeline and then we hold.

So, what might help? I hate the idea but we really need the economy to get out from under the housing collapse. I believe that all can be healed if housing prices will stabilize and increase. Just this year I have worked in an area where the average month depreciation is around 3%. That's monthly not annually. I think the Gov. should stop bailing out the guys that bought the secondary market paper. I think if the tax payers are paying for it that we should go direct to the source. Bail out the individual homeowner.

Guess what, we made mistakes. Some people got loans they should not have. Some of it was created by the brokers, some by the lenders, much by the greedy homeowner who bit off more that they can chew. Whatever the reason, it no longer matters. The theory is simple. Line up all borrowers and modify all the loans. Many people suggest that there would be no incentive for those that are paying to pay. Well there is not now. I know several people that have made a conscious choice to not pay so that they can get a modification. What if we modify all the notes to current value and set a base rate? It hurts but only once and the dollar loss is spread across all instead of the tax payers giving it to the bank and trying to regulate what they do with it.

In the end I believe that the market would be stabalized. Some will still not make it. That's ok. We can use the traditional foreclosure method and keep moving. Thousands will get relief and we can say that the bottom is here. So far we have spent over a Trillion in bail out and as far as I know none have really gotten relief. The new rules are hard to qualify for even if the bank is willing to modify. Lets just take it right to the people. It's radical and I firmly believe it's coming.

The Ultimate Solution

Security National Mortgage Company — Sat, 29 Nov 2008 13:01:37 -0600

Bailout by FHA will it work?

Security National Mortgage Company — Wed, 23 Jul 2008 19:18:03 -0500

While I'm sitting here doing FHA loans in Sylmar, Loan in Van Nuys and Loans in California, I read the news and found myself pondering over whether or not this will work What would motivate a lender to take a 40 to 60% hit just to clear the books? Maybe that is the answer, just to clear the books.

The bill states that FHA could insure loan for borrowers that had a loan close between 1/2005 and 6/2007. It states that bad credit and a demonstration that one can not currently pay their mortgage are acceptable risks. The current lender would have to agree to the write down on the current mortgage so that the delinquent mortgage would be paid of in full. Their are restrictions on the borrower about reborowing for a few yeas and the prepayment penalty is loss of equity for the first year and a joint equity split with FHA for four additional years. I think the FHA is going to have to hire a lot of landlords to keep up.

What do you think?

We Can Flip? Bush helps today

Security National Mortgage Company — Mon, 16 Jun 2008 18:30:31 -0500

Ok all you investors out there and those doing loans in Van Nuys and Home Loans in Sylmar and Still doing loan in California we have news for you.

Dateline 6/13/08 Washington DC anounces that the Bush admin. has suspended the current flipping rule for FHA. If you were doing an FHA loan in Van Nuys or Sylmar or a home loan in California or the US you could not qualify for an FHA loan unless the previous owner held that property for at least 90 days and even that was questionable. Now it's over at least for a year. You may qualify for an FHA loan even if the previous owner held the property for even 1 day. So, investors should be ready to go an grab up some great property, do some cosmetic repairs and sell without worrying whether or not the buyer will not get the FHA Loan due to time held.

PS. Don't forget that at this time the seller on an FHA loan may pay up to 6% closing costs and contribute to a Down Payment Assitance Program. The buyer may use Grant funds from a Downpayment Assitance Program along with the seller paid closing costs and qualify for an FHA loan. I'm excited about doing these loans in Sylmar and Van Nuys and throughout California

Getting Green

Security National Mortgage Company — Wed, 11 Jun 2008 14:55:20 -0500

Even while doing loans in Sylmar and Van Nuys and working for First Time homebuyers in California, we try to be green.

There is an ongoing need to conserve energy and reduce waste. Many people are starting to make greener choices, do whats best for the environment and lessen their impact on the earth. The common phrase is Go Green and there are both very simple and inexpensive steps we can all take that will add up in a big way.

While doing loans from Sylmar CA to Van Nuys and all the San Fernando Valley in the City of Los Angeles, Bring your own reusable shopping bags to the grocery store. Plastic and paper bags both use a lot of energy to produce and end up as litter. Stash some canvas bags in your car.

Ditch the Plastic Bottles and replace with a reusable water bottle and place your current bottles in a recycle bin. Billions of plastic water bottles end up in our landfills every year. Most of us already have filtered water available on our fridge, a water-filter pitcher such as Brita or an in-sink filter. If we all use what weve already paid for, that would be a big win for the environment.

Change your light bulbs to Compact Fluorescent Light bulbs or CFLs. They last up to 10 times longer than regular light bulbs and although they may be more expensive they will help reduce your energy bills. Remember to turn off lights in rooms that are not in use.

Buy a package of recycled napkins. If every household purchased one package of 100 percent recycled napkins, we would save 1 million trees. Even more trees would be saved if you bought recycled paper towels and tissues.

Buy food that is grown locally. It has been determined most of our food travels an average of 1,500 miles before it ends up on our tables. Local food is fresher and tastes better than food shipped long distances. Buying local food keeps your dollars circulating in your community. A good place to start is looking for a Farmers Market in your area.

Give your car a tune up. Speeding, fast accelerations, and hard braking waste gas. Maintaining your car saves it. Tune up your car according to your owners-manual schedule and raise your cars fuel efficiency anywhere from 4 to 40 percent. Maintaining the correct tire pressure not only increases gasoline mileage, but also helps the car handle and ride better. Correct tire pressure also increases the life of the tire. All tires have the correct tire pressure imprinted on the tire.

While doing loans from Sylmar CA to Van Nuys and all the San Fernando Valley in the City of Los Angeles, Think first, and learn a new way of living that helps sustain the worlds environment. By changing our daily habits we can all Go Green with ease.

Fraud And Identity Theft Are Big Business

Security National Mortgage Company — Fri, 30 May 2008 18:21:43 -0500

While doing loans in Sylmar and Van Nuys and California we attempt to educate where we can. Here are my thoughts regarding ongoing identity theft in Sylmar and Van Nuys.

Fraud in Sylmar, Van Nuys and California is increasing at an alarming rate and new ways to separate you from your money are being invented every day. Identity theft is big business. Millions of Americans have been the victim of some form of identity theft. You are the first line of defense in keeping your personal information secure. There are steps you can take to minimize the chances that your personal information will fall into the wrong hands:

Buy a shredder. They are inexpensive and shred items with your personal information. That includes charge receipts, bank statements, expired credit cards, credit offers, etc. Identify thieves have been known to comb through trash looking for just such information. We shred everything while doing loans in Sylmar, Van Nuys and California.

Do not carry your Social Security card, birth certificate or passport with you.

Don't give your credit card or bank account number over the phone, through the mail, or over the Internet unless you confirm you are dealing with an actual representative of a legitimate business.

Get the receipts from your credit card transactions and check your credit card statements for unfamiliar transactions.

Shield the keypad when entering your PIN.

With the expansion of the Internet, your personal information is more accessible than ever and the number of "phishing" scams sent out to consumers is continuing to increase. Phishing lures unsuspecting Internet users to a fraudulent website by using authentic-looking emails in an attempt to steal passwords, financial and/or personal information. Check to see that the business is legitimate and you can conduct transactions on a secure website. You can identify a secure website by the address. It should begin with the https; the s means the site is secure. Be extra careful about what you reveal about yourself when you are online. You never know who is watching. Identity thieves could be cruising these sites for clues to piece together just what they need to steal your identity. If identity theft should happen to you, do the following immediately:

Cancel all credit/debit/ATM cards.

File a police report in the jurisdiction in which your identification was stolen.

Place a fraud alert by calling the three credit reporting bureaus so that you will be contacted before any new credit is authorized. The three bureaus are; Equifax, (800) 797-7033, Experian, (800) 583-4080 and TransUnion, (800) 916-8800.

For further information regarding any type of fraud you can visit the Fraud Center website at www.fraud.org.

Keep your personal information private. Taking steps will help protect you and keep fraud and identity theft an unlikely possibility.

Will Democrats and Republicans ever be on the same page?

Security National Mortgage Company — Wed, 14 May 2008 13:11:51 -0500

Last week the House passed legislation that aims to refinance troubled mortgages and increase demand among first-time homebuyers. The President has threatened a veto, and the position of the Senate is unclear. http://www.house.gov/apps/list/press/financialsvcs_dem/press050808.shtml <http://www.house.gov/apps/list/press/financialsvcs_dem/press050808.shtml> But, regardless, at some point federal intervention still appears likely. The policy differences aren't as large as rhetoric implies, and enactment of some type of legislation could slightly help the decline in home prices by reducing the number of foreclosures and increasing demand among first-time homebuyers - at a cost to taxpayers.

There is no agreement on the bill yet as several Republicans view the plans as a bailout for lenders, speculators and irresponsible homeowners. The program involves giving struggling homeowners a new mortgage backed by the FHA. The Democrats believe that it would cost much less compared to the potential government exposure with the Fed's guarantee in the Bear Stearns case, and as mentioned above the president may veto it. On top of Congressional differences, lies the threat of a White House veto of the bill, asking the question, "Why should the taxpayer, through the program, provide a guarantee of principal if lenders agree to reduce the principal of a borrower's current mortgage?" This is a volunteer program by which a mortgage company would be required to write-down the value of a delinquent loan by 15% of the home's current appraised value for borrowers who are 60 days late on their mortgage payments. The bill specifically excludes investors and those that lied about their income on the loan application. The bill also proposes an overhaul of Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks as well as bringing the FHA into the 21st century.

Stay tuned as soon as I know more...you"ll know more!

We are not the problem !

Security National Mortgage Company — Wed, 02 Apr 2008 10:59:32 -0500

Ok everybody from the candidates to congress want to jump on the "blame the mortgage broker" band wagon. They want to create forms, disclosures and blugenoing racks for us. The salem witch hunts come to mind. I'm sure a public burning or two is not beyond their sights. In California we have had stringent licensing policy for a very long time. Our licensing laws are administered by the California Department of Real Estate and the licensing laws come from a combination of State Law and RE Commisioner rules. We have a set of State disclosures to go along with our Federal disclosures that are required in every loan package. We laugh at the concept of people being concerned about licensing. It's ok they just want the revenue.

With all the licensing and all the laws we still forget that there are several out there that break the laws and but a few to find them. I am an Eagle Scout. I live by 12 simple rules that have been part of my daily life for at least 30 years.

A Scout is; Trustworthy, loyal, helpful, friendly, courtious, kind, obedient, cheerful, thrifty, brave, clean and revrent.

That's it. If we would teach morals and values and be able to have a reasonable expectation that people want to do good for others than we have all the laws and regulations a society will ever need. If Congress would spend the time making sure that schools can teach a moral right from wrong then there is no question that when I'm selling an option arm I will remember to show the client what happens with the unpaid interest. When writing a stated loan I will ask my client "what makes you think you can afford this payment" and listen for the answer. I will take the time to explain what an index and a margin are and how they work together.

That's how it should be. I'm not sure when Morality became a dirty word. Notice I am not speaking about Religion only Right from Wrong. Even nature, in very cruel ways, demonstrates a right from a wrong. It is always wrong to lie to a client. It is even more wrong to lie to that client for personal gain. Notice no gray, no ambiguity. If you lie then you are wrong. Ok the banks went so far as to create programs so that no one had to lie. But the investment banks seem to not call it a lie when they rate securities as AAA with out any knowledge of how they will perform.

Congress stop, Obama, Clinton, McCain, Stop Bernake, Alphonso, Paulson, Stop. Let the market do it's thing so we can move on. We need a new way to sell in secondary and those willing to buy and pay for risk need to be allowed to do so. Enforce the laws that exist and scold those that have stopped teaching morality. I really don't need the filandering, drunkerds of the political arena to tell me how to be right.

Sylmar Chamber

Security National Mortgage Company — Sun, 16 Mar 2008 16:31:24 -0500

RSVP and Attend! (818) 367-1177

Sylmar Chamber of Commerce
LUNCHEON
Monday, March 17, 2008, 11:30 a.m.
Los Angeles Mission College
13356 Eldridge Ave., Sylmar
(Instructional Bldg., Room 1007)

The Sylmar Chamber invites you and your guests to attend our upcoming Chamber Luncheon on Monday, March 17, 11:30 a.m. at Los Angeles Mission College, 13356 Eldridge Ave., in the Instructional Building near the clock tower, Room 1007, in Sylmar. The luncheon will feature Los Angeles City Councilmember Richard Alarcón as a speaker. Student chefs will provide a choice of two entrees and dessert to attendees. Tickets are $18.00 for members and $25.00 for non-members. Please RSVP at (818) 367-1177 between 10 a.m. and 3 p.m. before today, March 14, as space is very limited for this venue.

The Sylmar Chamber invites you and your guests to attend our upcoming Chamber Networking Breakfast on Thursday, April 3, 7:30 a.m. at Denny's Restaurant, 13201 Gladstone Ave., between Hubbard St. and I-210, in Sylmar. This is a great opportunity for you to meet and network with local entrepreneurs, non-profits and business leaders if unable to attend our mixers or luncheons. If you need time before the workday, our breakfast is perfect for you! Tickets are $12.00 for members and $15.00 for non-members with a reservation, $17.00 and $20.00 without. Food and drinks will be provided. To RSVP, please call the office at (818) 367-1177 between 10 a.m. and 3 p.m.

Take advantage of these two events to make your business or non-profit known throughout Sylmar. We encourage you to bring a friend! Don't forget to bring your business cards!

Sincerely,

John Severino

Symphony Mortgage Company

Stimulus Quickie

Security National Mortgage Company — Thu, 21 Feb 2008 16:48:47 -0600

Wow that headline could mena a lot of things. In this case just a quick update for those of us doing loans in Sylmar, Van Nuys, California and the entire country.

HUD has 30 days from the day the President signed the package into law to identify the impacted Metropolitan Statistical Areas (MSA's), so it may be sometime in mid-March before all lenders receive the official pricing notification. At this point anything else is pure speculation. Although several mortgage lenders have promoted lists of what they believe the new limits will be, these are only estimates because HUD has yet to determine the higher loan limits. HUD will determine the new loan limits based on the median area sales prices - but which ones? 2007? The fourth quarter of 2007? The third quarter? Median area sales prices may be dramatically different throughout the year, so the timeframe used by HUD to determine the higher loan limits is very important.

FHA and the stimulus package

Security National Mortgage Company — Fri, 15 Feb 2008 15:57:37 -0600

Here are some FHA facts and a quick question.

Currently the FHA program has no declining value adjustments at the government level, has low down payment and loan to values as high as 97%, cash out refinances allowed to 85%, rate and tern refinances to 97%, total down payment can be a gift, no credit score requirements, no income limits or sales price restrictions, FHA loans are assumable, seller concessions may be as high as 6%, no cash reserves required, non-occupying borrowers are allowed with blended ratios (SFR only), non taxable income (including child support) may be grossed up, and bankruptcies allowed after 2 years. We'll see if investors continue allowing all of these with $729 loan amounts, of if they add "overlays" to restrict underwriting.

John Severino

Funding loans in California, Sylmar and Van Nuys

Stimulus Package update

Security National Mortgage Company — Tue, 12 Feb 2008 11:18:53 -0600

Tomorrow President Bush is likely to sign into law the recently passed economic stimulus bill. It raises the limit on the size of mortgage that Fannie Mae and Freddie Mac may purchase and that the Federal Housing Administration (FHA) may insure. In both cases, the increases are temporary and apply only to loans originated by the end of 2008. If signed, Fannie and Freddie may purchase loans up to 125% of the median home price in an area, up to a national limit of $729,750. YAHOO!!!

FHA limits, and I assume VA, would see the same increase, and the floor on FHA limits would be raised so that larger FHA-insured loans would become available in low-cost areas. Goldman Sachs believes that area-specific loan limits for the GSEs and FHA should be issued by mid-March. The exact impact on pricing and rates is unknown, nor are the changes in underwriting guidelines and the impact of lost equity: in cities where the increased limits are likely to apply, the Case-Shiller index now stands below its late 2005 levels.

Refinances are on the way.

John Severino

Symphony Mortgage Company doing loans in Hemet, Sylmar, Van Nuys and all of California.

Don't fall in the trap

Security National Mortgage Company — Tue, 22 Jan 2008 22:18:42 -0600

Do not fall in to that trap. The Fed's have nothing to do with mortgage rates

The fed fund rate is the rate that banks lend money to each other. The rate is closely associated to the prime rate which will now be lower. The prime rate is what most equity lines are tied to. Terefore the equity lines will be lower.

The number to watch is the 10 year treasury. The yield went down a little today and that's good. The 10 year note yield is what banks use to figure out the 30yr fixed rate. There is one other bond the fnma 30yr bond that is actually the index for the 30 year fixed rate. However the 10yr yield is a great indicator of rates.

The refi boom is here.

A New Year Motivation

Security National Mortgage Company — Sun, 06 Jan 2008 22:03:23 -0600

Ok so the question is where does it come from for you? i fine enduring motivatin very hard to come by. I have been in real estate since 1989. Mostly as a lender both on the wholesale side and the retail side. Every year I can see what i wuld like to accomplish and at the end of the year I find that I am short. This always makes me feel badly. Now this year was extremely wierd because the mortgage meltdown or crisis hits very close to home. So, the question for all you emotional types (not the type A task oriented types) but the right brained, creative, emotionally based folks. How do you keep it going? How do you make schedules and systems that lead to success?

A Way to Help Conforming Limit Increase

Security National Mortgage Company — Fri, 07 Dec 2007 15:56:11 -0600

Here is a form letter that we can use to help more First Time Homebuyers in California, loans in Sylmar and loans in Van Nuys. Please feel free to copy this and send it to all leaders in Congress.

<Date>

The Honorable Brad Sherman
House Office Building
United States House of Representatives
Washington, DC 20515

Dear Representative Sherman:

As you know, the liquidity crisis in the mortgage industry is harming
clients and business throughout our state, as well as our economy in
general. Congress, however, has the power to make a rather simple change
that will relieve a large portion of this burden for thousands of people in
CA and throughout the United States.

The cap for government sponsored Conforming Fixed Interest Rate loans is
currently set at $417,000--which may adequately serve some parts of the US,
but is not high enough for many middle-class homes in our area.
Consequently, many people in CA are powerless to refinance adjustable rate
mortgages that are at risk of foreclosure or default, and others are unable
to purchase new homes for their families at all.

The problem is that the current limits are based on formulas that were
created based on demographics from 1980. Additionally, the limits apply
nationally except for Hawaii and Alaska, which were given High Priced State
status. To be both effective and fair, the limits for our state and others
with higher housing prices need to be brought in line with the higher loan
caps of states like Alaska and Hawaii, which both have a 50% increase to the
conforming limit. In 1992, the US Virgin Islands was successful in asking
congress to allow it to have the benefit of High Priced State status. In
2001, Guam did the same. Our state should be considered a High Priced State
as well. This would increase the current conforming limit of $417,000 to
$625,500 in CA, just like Hawaii and Alaska.

Raising these limits will help thousands of your constituents--from current
homeowners and first-time home buyers to mortgage professionals and hundreds
of related service providers who have been, or will be, devastated by this
crisis.

This is an urgent request for your help. Only you and the members of
Congress can make this desperately needed change. Please respond
immediately to relieve the burden created by these outdated limits and to
help our states residents and economy as a whole begin to recover from this
crisis.

Sincerely,

(Insert Your Name)

(Insert Title)

(Insert Company Name)

(Insert Address)

(Insert City, State & Zip)

(Insert Phone Number)

(Insert E-mail Address)

A simple realtor survey

Security National Mortgage Company — Sun, 11 Nov 2007 18:34:25 -0600

Thanks for commenting. I have been in the mortgage business in California helping people to qualify for and close loans in California and the other 50 states for 19 years. I have spent a decade plus in wholesale and the most recent half decade in retail. The first four years were spent in training and working on a land project. This year has been a challenge but I have had some success working with Realtors this year. I am happy to do sales and I am over the typical loan officer training curve for purchases. Here is what I need to know.

What is most important to you in working with a loan officer?

What caused you to recommend a new loan officer last time you changed?

What would cause you to change loan officers again?

Thanks so much for your help. I really enjoy active rain but this is the first time I'm going right to the point and asking the Realtors what is it that you really want.

Symphony Mortgage Company

We are in tune with your needs.

URGENT for ALL ORIGINSTORS in USA

Security National Mortgage Company — Thu, 01 Nov 2007 13:24:41 -0500

Please don't wait on this.

Thanks

John

To: All NAMB Members

From: Denise Leonard, NAMB Government Affairs Chair

RE: National Teleconference to Discuss H.R. 3915 the "Mortgage Reform and Anti-Predatory Lending Act of 2007"

Mortgage brokers are facing extinction. The U.S. House of Representatives is considering a bill that will fundamentally change the way we are paid, outlaw YSP, and legislate underwriting guidelines into law. Additionally, we fear that all subprime lending will cease to exist due to excessive lender liability. It is important that you read this memo.

We are calling upon our members to respond as never before. To save our industry, we are asking you to learn about this threat and then contact your congressman.

TIME IS CRITICAL. The bill became public last week. The U.S. House of Representatives Financial Services Committee will vote next week.

LEARN. Step 1: We have scheduled two information teleconferences. Please choose ONE of the two. The first is scheduled for Thursday, November 1st at 1:00pm EST (12:00pm CST, 11:00am MST, 10:00am PST), and the second is scheduled for Friday, November 2nd at 7:00pm EST (6:00pm CST, 5:00pm MST, 4:00pm PST). These are free calls.

Call in Number:

THURSDAY: 1-877-238-4697 Pass code: 453723.

FRIDAY: 1-800-214-0745 Pass code: 648439.

There will be 500 lines for each of the calls. Please call in early to guarantee a spot. You will be placed on hold with music until the moderator begins the teleconference.

RESPOND. We have prepared sample letters for your use in writing to or calling your congressman. These will be sent to our entire membership on Friday. Important warning: The vote is now scheduled for Tuesday, November 6. Please respond before next Tuesday.

More information is contained below. However, please call in to our conferences and respond so that we can preserve the way we do business and the subprime mortgage market.

______________________________________________________________________

Commentary: We urge you to read the balance of this memo and the attached information before you listen to our teleconference.

On Monday, October 22, 2007, House Financial Services Committee Chairman Barney Frank (D-MA), along with Representatives Miller (D-NC) and Watt (D-NC), introduced H.R. 3915, the "Mortgage Reform and Anti-Predatory Lending Act of 2007." Below you will find the full H.R. 3915 bill, a section by section summary, the NAMB Press Release, and NAMB's Testimony presented before the HFSC.

The bill contains three sections. Title 1 will create a federal duty of care and outlaw steering. The anti-steering language will outlaw incentive compensation and YSP that varies with the terms of a loan. The section will allow indirect compensation if disclosed early in the process. This section also creates a minimum licensing standard for all originators and net worth or bond requirements of $100,000.

Title 2 creates an ability to repay standard and hardwires underwriting guidelines. Underwriting will include a verified ability to repay and take into account amortizing payments. Guidelines will also include taxes and insurance payments when calculating ratios. For refinancing, the act will define and require a net tangible benefit. For prime loans, there is a safe harbor. However, for subprime there is assignee liability and expanded rescission rights. Standards will also create a defense to foreclosure. Severe restrictions will be placed upon first-time homebuyer mortgages with negative amortization features.

Title 3 will expand the existing Section 32 of TILA by reducing the points and fees triggers and expand lender liability. Prohibitions include no balloon loans, no lending without regard to ability to repay, prohibit a pattern or practice of making such loans, restrict late fees, and prohibit the financing of any points/fees. Taken together, the expansive liability and prohibited terms and conditions will make Section 32 lending practically impossible.

This is a critical time. Do not miss this important teleconference!

Attachments:

Wednesday, October 24, 2007 NAMB Testimony presented before the HFSC <https://webmail.suntrust.com/exchweb/bin/redir.asp?URL=http://www.namb.org/images/namb/GovernmentAffairs/HFSC%2520Hearing%2520Testimony.pdf>

NAMB Press Release <https://webmail.suntrust.com/exchweb/bin/redir.asp?URL=http://www.namb.org/namb/NewsBot.asp?MODE=VIEW%26ID=216%26SnID=1672263818>

H.R. 3915 Summary <https://webmail.suntrust.com/exchweb/bin/redir.asp?URL=http://www.namb.org/images/namb/GovernmentAffairs/Section%2520by%2520Section.pdf>

H.R. 3915 Full Text <https://webmail.suntrust.com/exchweb/bin/redir.asp?URL=http://www.namb.org/images/namb/GovernmentAffairs/Full%2520Bill.pdf>

V Cards (A tech benefit)

Security National Mortgage Company — Tue, 30 Oct 2007 18:15:42 -0500

We help make loans happen in Van Nuys and we are always here to help Firtst Time Homebuyers in California. Here is a bit of info that may help stay in touch with your vendors. Besides this I also like Plaxo.com. Thanks

The vCard, or virtual business card, is an electronic business

card. It provides a standard format allowing the exchange of

contact information over the internet without having to manually

enter business card information. vCards include information

such as name, address, telephone number and e-mail addresses and

URLs. They can also have graphics and multimedia including

photographs, company logos, audio clips such as for name

pronunciation. Geographic and time zone information in vCards

can also be included to let others know when to contact you.

vCards can support multiple languages.

One of the most popular uses of vCards are as attachments in

e-mail messages. Since the vCard is not a signature file that

is put into the message of the e-mail, the information can

automatically be recorded into most contact managers and e-mail

software. It can be used with many programs including Microsoft

Outlook, Outlook Express, Netscape Messenger, and On-Line Agent

(also referred to as RE/MAX Agent 2000 and AgentOffice 4.5),

just to mention a few.

vCards can not only be used to record contact information of

business contacts, friends and family, but, can also be used to

store information about prospects and clients. Because vCards

are compatible with most e-mail clients, you can save a contact

in vCard format.

There are different ways of saving vCards. Some programs

automatically import the vCard, others let you drag and drop the

vCard icon directly into the address book. Some require that you

save the vCard to disk and then import it to the program. If

your computer doesn't know what to do with the vCard, you may

need to set it to automatically save .vcf files with the address

book of choice. See your system's help pages on associating file

types with programs.

As you'll quickly discover, the major advantage of using vCards

is the significant amount of time that is saved by eliminating

the need to type contact information into contact managers and

address books. Other advantages of vCards are that since they

are text files, they cannot transmit a computer virus in an

"infectious" form, and their file size is very small.

ABOUT THE AUTHOR: Stephen Raitt is a leading Internet marketing

expert for the real estate and financing industry. He has helped

thousands of real estate agents and loan officers develop and

promote their Internet presence more profitably.

His Special Report, "How to Become the Dominant Internet Agent

in Your Marketplace Overnight... Without Spending a Fortune,

Wasting Your Time, or Even Caring How It Works!" and his book,

"87 Ways To Make 0ver $1,OOO,OOO Annually In Commissions On The

Internet" are both available WITHOUT COST or obligation at:

http://successwebsite.com/

New Bill Enacted Friday by The Governator

Security National Mortgage Company — Mon, 08 Oct 2007 20:15:48 -0500

It may look like it's about appraisals but it affects all of us. How dare we suggest the value of a property. Anyway read for yourself and don't be afraid to comment.

http://www.leginfo.ca.gov/pub/07-08/bill/sen/sb_0201-0250/sb_223_bill_20071005_chaptered.pdf

John Severino doing loans for first time hombuyers in California; loans in Van Nuys; Loans in Sylmar and loans in every state of our blessed nation.

Home Warranty = peace of mind

Security National Mortgage Company — Thu, 27 Sep 2007 19:59:02 -0500

Home Warranty = Peace Of Mind

After months of planning and hard work, you have just sold your house. You put your cash into a new beautiful home, and complete the arduous task of moving in. Now, you can put your feet up on the couch, open your favorite beverage and enjoy the afternoon football game. Just then, the phone rings. To your surprise, the buyer of your old home is talking your ear off about how the dishwasher broke and flooded the kitchen. Can you rest easy that the burden of this mishap will not fall on your shoulders? If you negotiated a home warranty for your buyer through closing, then the answer is yes.

The last thing you want to worry about after you sell your home is what could malfunction or break. A home warranty plan will protect both the buyer and the seller in the even of an unexpected repair. Depending on negotiations made through a sales transaction, the cost of the policy can be paid by either the buyer or the seller, or they can split the cost. The cost varies, but it is usually between $350-$450. The term of the policy can also vary, but the most common is a one-year policy with a renewable option. Basic coverage in most plans includes heating, plumbing, electrical, and major appliances such as your water heater, oven, built-in microwave, dishwasher and garbage disposal. Some warranties will cover your roof, and others will require an additional fee to cover items such as septic systems, pools or spas. Be sure to read the policy carefully and ask questions if something is not clear. For a referral to a good company, you can contact me.

Most home warranty plans work the same way with regards to a repair. If an appliance stops working, the homeowner will call the home warranty company. The home warranty company will send out a provider or contractor with whom they do business. The provider will contact the homeowner to make an appointment. If the appliance can be fixed, the provider will do that. If the appliance must be replaced, the home warranty company will install and replace the appliance. The homeowner will pay a small trade service fee for the repair or replacement, and it is most often between $50-$75.

So sit back and enjoy the game. Purchasing a home warranty can be a big home run!

John Severino/ symphony mortgage company helping first time home buyers in California, and funding loans in Sylmar and Van Nuys