Kirk's Blog, star date 0711.08

Fannie Mae management inept or folding up the tent for good?

Tue, 01 Dec 2009 10:59:43 -0600

If you have gazed upon the stock price of Fannie Mae recently you can at the same price purchase a pack of gum....or maybe not.

Comprehensive Quote: 12/01/09 11:15 AM EST Last 0.92 Change 0.04 % Change 5.05% Volume 8,368,658 Open 0.90 High 0.93 Low 0.89 Prior Day's
Volume 32,357,983 52-Week High 2.13 (08/25/2009) 52-Week Low 0.35 (03/09/2009) Prior Day's Close 0.88

NYSE and Amex prices are delayed at least 20 minutes and Nasdaq prices are delayed at least 15 minutes. Volume updates until 8:00 p.m. ET.

Meanwhile the genious at Fannie Mae has decided to tighten underwriting standards hiding behind the credit score system that in my humble opinion should be abandoned after all it is is used to jack up rates and costs and if you lose your job score does not matter does it?

Well that's a good thing someone may say. Sure prudent underwriting is a good thing however true risk analysis is accomplished when you have a real person look at another real persons credit profile and particular circumstances and makes the determination based upon the real facts before them. Credit score, down payment (equity position) does not make a good loan always as evidenced by the current economic down turn. Technology cannot replace that kind of analysis either.

December 12, 2009 Fannie Mae will only approve loans at 80% if your score is 620 or below. Your total debt (housing plus any other credit) cannot exceed 45% of gross income. This means Fannie Mae will not be generating much in loan volume which means ....Fannie Mae is inept or thinking they can't do this anymore or maybe hope the taxpayers will once again throw some money at them to keep the doors open...Why we would do that is a mystery.

My point is FHA for now will be THE LOAN that will carry us through the housing market until better minds appear on the scene. Of course HUD and congress may screw that up too. Hmmm - My bet HUD will mess it up based upon their work revising the Good Faith Estimate!

I wish us all well.

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.

Despite the Calamity we face I can be thankful.

Wed, 25 Nov 2009 14:10:06 -0600

If I'm not sharing my vast wisdom (nudge nudge wink wink) I would be on a rant about the inept nature of government or particular individuals but today as another deal closes for a new home buyer knowing they will be celebrating their first Thanksgiving in their new home I pause to give thanks that I am still paddling up this creek we call an economy.

It has been a challenging year for our family on many fronts just like families across America. In the end we still have it better than most in the world we live in today. I am thankful for that.

Our community lost a couple great souls this year some way too premature. I am lucky to have been touched by their lives. I am thankful for that. I am lucky I have one of my parents still living. I am thankful for that. If I were to drop today I cannot complain. I have had every opportunity to do whatever I wanted to do in life - it is always there for me to grab. I am thankful for that. Of course like the idiot I am I decided to be a mortgage professional.

All this gratitude will be leaving me by the time Monday hits because my football team (Seattle Seahawks) will probably lose another game and all the usual political knuckleheads will be back on the air telling me how they plan to 'fix' things. I am not thankful for that. Until then I will meditate with my Turkey and family. I am thankful for both.

My family celebrates Thanksgiving. For those that do celebrate Thanksgiving I wish you and yours a very Happy Thanksgiving.

I wish us all well.

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.

"Look at the mess you got us into now Stanley" HUD on HOLD?

Tue, 17 Nov 2009 14:56:37 -0600

Not surprising to me HUD is going to put a 120 day 'enforcement' delay for the new Good Faith Estimate and HUD-1 roll out scheduled for Jan. 01, 2010. What a mess. What a disaster. This photo depicts perfectly how our government (the big guy - Oliver Hardy) and HUD (the skinny -Stan Laurel) are managing this little thing we call a financial calamity. Recovery my (Fill in blank).

HUD always has a scandal each administration costing millions or billions (depending upon how many years you include). Inexplicably they eliminated the down payment assistance program thinking a down payment would solve this economic calamity. BIG thinking.

So here the nation of lenders wait to see what's next. How are the investors going to react. Some lenders may require us to use the new form. Others may not. How will the consumer navigate through this?

ME of course and my fellow mortgage professionals. As usual although always made out to be the villain it is up to us to interpret as best we can the mess handed down to us by the idiots, the knuckleheads, the "intellectuals" - congress & HUD.

We are the ones picking up the pieces to try and make sense of the non-sense. We are the receivers of funny looks from the consumer asking us - WHY DO WE HAVE TO DO THIS OR THAT - glaring at us like WE are the crazy ones!

AMERICA -WE did not make this up....this is Barney Frank, Chris Dodd - both sides of the political spectrum- brilliance is coming out from all corners.

The consumer is getting nothing. The consumer cost is increasing - will increase and continues to get more expensive. After getting reamed at the financing table because of the 'new' regulation the consumer will have to pay more taxes to cover the bureaucratic tape that goes with it.

I'm in a bad mood.

I wish us all well.

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.

Petition Drive to stop the HVCC madness coming to a head

Mon, 16 Nov 2009 14:32:24 -0600

If you were one of the activists that mailed in the online petition supporting the elimination of HVCC the day in court is coming soon.

A group will be delivering the petitions to one of the enemies of the consumer and our industry - the attorney general of New York - Mr. Cuomo maybe as early as this week. His office has been contacted and we will see how they respond.

See previous blog about its history and BS that fly's around this issue.

You want government to do what? The failure of HVCC appraisal

It continues to baffle me why the Honrable Mr. Cuomo does not go after the real villian in this and that is Wall Street. Oops I forgot that's where he will be getting his campaign donations for future political asperations...what was I thinking!

I wish us all well.

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.

IF YOU APPRECIATE YOUR FREEDOM -SHAKE A VETERANS HAND

Wed, 11 Nov 2009 11:16:22 -0600

Talking to friends, colleagues or total strangers about their experiences in the military I am always impressed by their humble nature. What an all star group of people - men and women.

Not all serve in the battle of war. Often times they spend tireless hours supporting those engaged on the ground.

Then there are the families. The families are hero's too and in my opinion neglected way too often and need better support particularly today in the times we live.

To all I cannot thank you enough.

I wish us all well.

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.

Fannie Mae is your new landlord?

Tue, 10 Nov 2009 09:30:56 -0600

Yes. Instead of doing the heavy lifting and figuring out how to work out loans for the folks still employed Fannie has decided to become a landlord. Instead of foreclosing they will lease to folks for one year then month to month there after.

How they set the rent or how things get fixed in a timely manner or even how they evict people are details nobody knows. It is safe to say knowing our government Fannie Mae does not know but sounds good doesn't it? Just like the other failed programs.

Unfortunately if you live in an area where home sales are brisk there will be less inventory because Fannie isn't foreclosing on homes that perhaps should be foreclosed on. (I don't believe that will be a problem in most areas unfortunately)

The real tragedy from where I sit is the government cannot come up with a loan work out plan and force anybody to play along (it seems) so this is the solution. I wonder if lobbyists have anything to do with this....hmmm.

So here we go again and what a mess.

I wish us all well.

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.

TAX CREDIT EXTENDED! For NEW and REPEAT Homebuyers

Mon, 09 Nov 2009 10:32:00 -0600

I have just been resuscitated after the shock and awwweeee of the news I'm about to tell you. Our government.....the government....yes our government actually did something that will help stimulate the economy and keep this little thing we call a country breathing.

Not only did they extend the tax credit for new homebuyers ($8,000) it now offers a $6500 tax credit for repeat buyers or buyers moving up (how do you move up when prices are down?).

This tax credit will end in June 2010 and all contracts must be in writing by end of April. I wonder if the record number of foreclosures in a quarter in American history had to do with it....HMMMMM.

Anyway that is good news and I have posted an excellent site that gives you full details.

http://www.federalhousingtaxcredit.com/

IRS Form 5405:

http://www.irs.gov/pub/irs-pdf/f5405.pdf

I will be glad to assist you toward your next home purchase. We lend in 47 states and look forward to working with you.

I wish us all well.

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.

BARNEY FRANK - PUBLIC ENEMY NUMBER ONE

Tue, 03 Nov 2009 11:40:34 -0600

In his quest to appease the too big to fail banks making sure the CEO's get the bonuses promised so his campaign coffers remain flush Barney Frank is working hard to keep his promise of killing any and all competition for home loans leaving only the too big to fail banks to lend to the consumer. You know the TARP KIDS.

30 years ago the banks had their little monolopolistic operation - no competition and they were slow. The consumer was victimized because they were the only players in town until the local community based lenders (mortgage bankers/brokers) cropped up and what the consumer found was lower rates and better delivery of service.

Community based lenders (non-bank) provide 40% plus of the origination's and 50% of all FHA (HUD) loans and the reason for that is the big banks and credit unions are lousy at government loans they are flat out afraid of them based upon my personal experience.

So what is this all about? This is HR 1728 Financial Stability Improvement Act. There is a risk retention feature meaning that any lender that originates a loan must put aside a 10% reserve - in other words have a financial stake in making good loans. The concept itself is a good one and community based lenders already and always will have a stake in that but 10% is a huge number cost prohibitive and the only entities that will be able to fork out that kind of reserve is none other than....you guessed it the TARP KIDS wiping out or eliminate most of the community based lenders the result of course is the consumer pays more.

So the American consumer once again has Barney Frank to thank in a series of self serving bizarre blunders that will only build the few banks left to be even bigger to fail for the future bail outs and what about economic recovery? HAH!

On January 1st 2010 the American consumer is going to wake up to a bunch of new stuff featuring the new HUD version of the good faith estimate and the Financial Stability Improvement Act and other fantastic ideas Barney, Chris and Friends .... the same people that have been in charge of oversight and never did any over seeing....have come up with.

Man oh man if you think this is a sour grapes rant it may be but I have been in this business a long time and have seen it all until now of course and I know what it was like then and I can see the future and it stinks for the consumer. AMERICA write, call your representative....or don't. It is so bad it will be reversed once the results and the screaming starts but it will be at the expense of the middle class consumer and it will take another three years to fix. It will cost the middle class millions if not billions across the country. Chris Dodd already got his sweetheart loan from Countrywide so he's set but what about the rest of America?

The link below is a related blog confirming Mr. Franks motives. Remember there are around 3 banking lobbyists per representative so if you think there is no influence here think again.

Barney Frank & Friends lack knowledge & skill

I wish us all well.

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.

You want government to do what? The failure of HVCC appraisal process.

Mon, 02 Nov 2009 12:19:27 -0600

The highly touted and much patting on the back until it bruised (Thanks NY AG of NY Cuomo) occurred when loan originators were lectured about how badly they behaved. After all it was the loan originator that put pressure on the appraiser to pull values out of their 'pockets'.

What do you know....a bizarre and simply unbelievable report has just come out stating that since the inception of HVCC (started in the 2nd qtr or 2009) the number of 'inflated value appraisal fraud" is up 46% compared to a year ago? Really?

How can this be? The big banks as you recall were for this 'reform'. WHY? Because they (Banks) formed another entity under their umbrella called it an AMC (appraisal management corporation) to separate loan originators from appraisers generating more income for themselves (at expense of consumer) what a dealio! While this is going on appraisers were given stricter parameters in what can only be categorized as a bizarre market on many levels to begin with.

Add to the above the fact banks instituted these electronic measuring systems designed to "review" (dumb down) the values or 'scrub' the appraisal work after it had been scrutinized by their own underwriters.... how redundant can you get on what is a subjective process anyway.

HOW COULD APPRAISAL FRAUD BE UP 46%? WELL IT ISN'T BECAUSE OF THE LOAN ORIGINATOR...AND FRANKLY I DON'T BELIEVE IT.... Who could be putting this out there? Here is the link scroll down and the name Interthinx pops up. A "risk mitigation" firm benefiting from the HVCC regulation thing publishes this information the same time an amendment is being proposed to kill the HVCC. You be the judge.

http://brokeruniverse.com/news/#1256918407

http://www.interthinx.com/overview/fraud_reports.php

By their admission Interthinx states the sheer size and population of California has a significant impact on the national fraud trend numbers. Ok so why the headline then? Is that food for the BANK lobbyists to keep HVCC alive? You be the judge.

Based upon my experience since the inception of HVCC I cannot see how fraud could have increased. Honestly. The appraisers task is monumental and their work is scrutinized in an abnormal market place. It is ridiculous out there and our government continues to make it worse. Unbelievable. Just unbelievable.

By the way - more garbage on the airways from the media pundits or guests proclaiming small community banks are handing out businesses loans.... really...which ones and ask the businesses that never missed a payment why their credit was pulled or canceled.

http://www.fdic.gov/bank/individual/failed/banklist.html

Hokey Smokes Bullwinkle....I wish us all well.

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.

What do Home Owner Insurance and CARFAX have in common?

Sun, 01 Nov 2009 12:17:28 -0600

History....

Anytime we turn in a claim to our insurance company pertaining to our home and damage that information is collected for all insurance companies to see. This information is stored in a 'repository'. Experian and Equifax are both repositories storing information about our credit.

If you are looking at a home to purchase you should call your insurance agent and have them pull up the property to see what kind of claim history it has before you call your home inspector. Armed with that information going into an inspection can help you make an informed decision on what is the most important financial decision other than retirement you can make.

It is kind of like a CARFAX for houses.

I wish us all well.

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.

Two more home sales this weekend land on my desk

Sun, 01 Nov 2009 11:42:17 -0600

I am usually available to my clients (borrowers/Realtors) as they need me and on Saturdays it is not uncommon to get a phone call or two about qualification on a home a borrower may be interested in or a call from a Realtor to confirm the price range our mutual client can afford before the offer goes in.

This past Saturday I sat in my office looking at two new purchase contracts on my desk. The tax credit certainly is playing a role and my sources tell me it will be extended into 2010 up through June. Perhaps congress would just extend it permanently since it is clearly a better stimulus program than the cash for clunker crap.

It is imperative you call your representatives. Write too. I have found when writing (via email from their website) I get a standard formatted non-response response telling me what they are doing for me. That does not mean I stop writing. I continue.

My second phase of "Operation Crazy Person" is to call the local office of my representative. I have met some of the staff through chamber events and so forth and as long as I have taken the time to write I should have someones ear.

There are many issues if addressed succinctly could add to the very modest momentum this tax credit has started- a few are:

Bringing back the down payment assistance program
Aggressively force banks/lenders/note holders to re-negotiate or modify existing loans consistent with the economic realities of our times vs a re-underwrite process to "unmeetable" standards
Banks that have foreclosed and have properties on the market must respond within 10 business days to offers and negotiate realistically plus any repairs of such properties are to be corrected by the lender or its facilitator.
Stop the cost prohibitive and unfair pricing of home loans based upon credit score
Force lenders to stop abusing their correspondent lending relationships (Buy back practices)

We need to drip on the representation in DC because the banking lobby has 3 lobbyists to every one Representative so if you think you are being represented (I don't care which party you drink kool-aide from) think again.

If you watched the interview of Tim Gietner on Meet the Press you should note what he did not say. The point is we have a long road ahead.

I wish us all well.

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.

Oversight and enforcement of existing law should be the focus

Wed, 28 Oct 2009 10:51:38 -0500

Nutty professors at HUD, the spoon fed (by lobbyist) congress and its agencies run around making speeches, proclaiming villains, pointing fingers yet right under the noses of all these knuckleheads bad players continue to play bad.

Case in point is Lend America's Mike Ashley. Caught, arrested, fined, fired, rehired, fired, ordered to stay out of the business, restrictions ordered - See link for the full story:

http://www.housingwire.com/category/buzz-post/

The point is no regulation in the world will prevent stupid OR bad behavior unless of course there is oversight and enforcement. A drum I have been beating for the past 18 months and will continue to do so.

The enemy is from within and that enemy is our very own government to include the 'pretenders' in congress (pretending to practice oversight) the pretenders in the SEC (pretending to watch Wall Street) to name a few and of course the HUGE lobby effort by the Banking & Insurance industry.

Until we have real oversight and enforcement the noise we hear today is just that...noise.

I wish us all well.

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.

Request for Permanent Reversal of HVCC....now is your chance to act!

Mon, 26 Oct 2009 10:36:38 -0500

The HVCC appraisal regs that went into effect thanks to the Attorney General of NY Cuomo (probably will run for Gov of NY and certainly at some point will run for president...oh yea former HUD secretary under Clinton...Cuomo was a disaster there too)... His response to serious issues is from the same handbook used in Washington DC and to reverse this or right this wrong you can sign and forward this petition.

If you want to right the wrong this is your chance. If you as a consumer wish to be subjected to inaccurate appraisals that cost you money up front then don't participate. If you are an industry professional wishing to be subjected to inexperienced appraisers in one of the most difficult markets in history then don't participate.

This is a very serious matter. See link below:

http://www.hvccpetition.com/

I wish us all well.

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.

Future trip on interest rates....want a peek?

Sat, 24 Oct 2009 19:13:01 -0500

Rates are good now for the short term and one way to shed some light where our interest rates will be in the future is to look into our past.

I have attached a link showing the history of long term rates going back to 1971. See below:

http://www.freddiemac.com/pmms/pmms30.htm

In my old marketing stuff I found a chart reporting long term rates from 1799 up to 1992. (That's right I started in this business back in 1799) It revealed long term interest rates were at or below 8.5% - 95% of the time.

When you review the history of rates you can't help but notice the period when rates soared into high double digits. Rates moved higher during the Carter administration and after his administration ended in 1980 rates were almost at 15%.....Although Carter was an economic disaster he did appoint Paul Volcker to the Fed and thanks to Volcker (despite the screaming from the new Republican President (Reagan) and the Democratic majority in congress led by Tip O'Neill ...the good ol' days some say) Volcker trudged and pushed us through that particular economic calamity.

Ok- we have some history and as we look ahead what do we see? Can it be argued that the current white house is struggling like Carter? Is it possible we will be faced with high double digit rates again?

It doesn't matter who is to blame it matters what happens as a result of government intervention (or non-intervention) and/or policy whatever that is. What is important is not how we got here it is how we get out of it safely. The debate today is ridiculous and I hope both sides start exercising real leadership soon.

It's nice to see our old friend Volcker back in the picture - he was asked to help you know but it seems nobody is listening.

If the lobbyists (Banking - Insurance - the 2 most powerful lobbyists) are allowed to continue this stranglehold on our representatives the result will be higher rates AND they will be to the level we saw during the Carter Administration....YES THEY WILL..... it won't happen tomorrow but it will happen unless sound fiscal decisions can be made to include a total overhaul of the tax code...I can only dream.

SAVE YOUR MONEY AMERICA!!!

I wish us all well.

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.

HR 3126 amendment MAY KILL HVCC?

Fri, 23 Oct 2009 10:16:28 -0500

HR 3126 deserves the support from the consumer, Realtor, obviously the lending industry, (the banks won't support it because it will save the consumer money and Banks lose revenue) and support is needed from all the other vendors supporting the real estate market place IF the amendment killing the HVCC (preventing originators from ordering their own appraisal) is included.

America write your representative and senator and refer to HR 3126....and demand this amendment is included. It has some distance to travel before it gets to a vote however we all need to contact our representatives and tell them to get this on their radar screen and support it.

I have to be frank (no pun intended) the government has continued to demonstrate its ignorance when dealing with the financial industry and the overall results of HR 3126 I'm sure will be mixed but if it eliminates the ridiculous HVCC requirement the consumer will be the winner and that's rare in today's world.

The removal of this HVCC thing would be the beginning of meaningful and necessary push back. Let's hope Barney Frank doesn't screw this up too. See link below:

http://www.housingwire.com/2009/10/22/house-panel-sunsets-hvcc-in-consumer-finance-bil/

I wish us all well.

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.

OOPS, HUD did it again....

Thu, 22 Oct 2009 12:06:23 -0500

Stealing and changing the title a bit from the Britney Spears "hit" song whenever it came out was inspired by HUD's latest announcement that it is considering "Civil Money Penalties" against the FHA underwriter if HUD FEELS (I emphasize the word FEELS) the underwriter didn't underwrite the loan properly. HUH?

I wonder if Britney Spears is now in charge of HUD. Nope it is Housing Secretary Shaun Donovan the man on an island along with the rest of Washington DC. Does anybody really believe our government and its agencies know anything?

Timothy Geitner Treasury Secretary recently stated "regulatory overhaul without limiting consumer choice of financial products or stifling competition" was the focus.

Yet Mr. Donovan of HUD (or somebody inside the HUD house) comes up with a bizarre plan to force an individual to pay financial consequences if HUD sees fit to go after them? ARE YOU KIDDING ME?

Read the HUD guidebook also known in the industry as the "4155". By design it is written to allow an underwriter to be subjective ....why? Because not everyone is the same, can document the same and have special circumstances. This is what we call risk analysis so if Mr. Donovan has his way the consumer will live the perfect life - nothing bad happens and even if you are that perfect consumer there is no guarantee HUD would not come after the underwriter for some minutia and be fined because some 22 year old bureaucrat is ‘following' the rules. You can bet the cost of your home loan will go up because now the underwriter will have to be insured for error and or omission insurance.

It is unbelievable that such an idea is even put into the public for discussion. WHO are these people and WHERE do they come from and HOW the hell do they get this job and WHAT are their credentials?

The "stupid" continues and I continue to write my representation in DC only to get back some template non-response response stating they hope all is well in Snohomish ....it's not well anywhere and the government IS the reason. They are not addressing the issues...the lobbyists are winning.... This is not a Democrat or Republican thing this is our government and America I hope you contact your representative.

I wish us all well.

The American Public not so smart says HUD & Washington DC....

NO...Real Estate Market is NOT improving just limping along...

Can I shake it up a little? - Down Payment Assistance

Meanwhile the lobbyist plays on...

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.

VA Zero Down proves to be solid performer -

Tue, 20 Oct 2009 11:42:31 -0500

The VA (Veterans Administration) loan continues to quietly perform - zero down, seller paid closing costs, seller can pay revolving debt for buyer under certain circumstances and the default rate is only 4.69% confirming the myth the down payment is a crucial component for a loan to perform is FALSE!

The VA has always been a full document loan and not only looks at the veterans debt to income but also looks at residual income. In other words folks the focus here and with most loans that perform since the beginning of time is the ability to REPAY the loan not whether there is a down payment or not.

You must be active or have served in the military to be eligible. Over the two plus decades it has been a privilege to provide home loans to our brave men and women serving our country. Next time you see an active service member or veteran be sure and reach out to shake their hand and thank them for our freedom.

It is a shame HUD does not get on board and bring back the down payment assistance program feature but alas they are part of the great disconnect our government has with us here on main street.

I wish us all well.

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.

You need to sell your home....Is a Short Sale the best option?

Sat, 17 Oct 2009 16:09:28 -0500

Unfortunately the short sale is more common place than it should be. I was researching some other topic and I came across this video by Annie Fitzsimmons posted on the "Washington Realtor" website and it is a three part series.

For the seller I recommend part one and for the potential buyer I recommend Part III in this three part series and recommend anyone to go through all of it to learn how the banking industry handles (or does not handle) this stuff and why it takes patience and perseverance for those participating in this exercise.

The link is below.

http://www.warealtor.org/short-sales/

The bottom line is if you plan on selling via short sale, Deed in Lieu or letting your home go to foreclosure it would be good to talk to an attorney to make sure you understand the implications of your decision.

I wish us all well.

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.

Is the State of Washington part of a trend?

Sat, 17 Oct 2009 15:16:02 -0500

We have seen folks in my profession come and go due to market conditions and even though 99 banks have failed since Wall Street handed to us this financial calamity, it does not match the 500 or so banks that failed back in 1989 (Savings & Loan) however today the situation is worse now than it was then.

According to the State of Washington Department of Finance, the number of licensed loan originators in December of 2007 was at 13,722. December 2008 - 7,863 and 4,597 renewed for 2009 and I'm guessing the number of active licensed loan originators is lower than the number of '09 renewals as I sit here today.

It is likely the trend we see here in Washington is repeated all across America and consumer access to seasoned experienced professional loan originators will diminish and history tells me this cannot be good for the consumer.

In the ‘old days' the consumer had banks only. Banks were slow (took 90 days to close a simple deal) they charged more up front fee's (2% origination fee) and of course the spread on their money was terrific...(sounds like the insurance industry today). They had their own little cozy non-monopoly monopoly...remember?

According to the Office of Financial Management for the State of Washington our population is around 6.5 million. My experiences in the banking system, mortgage broker system and now mortgage banking system confirm home owners or potential home owners living here or moving here need to focus on finding an experienced professional and that will not necessarily be found at your bank or credit union.

When mortgage bankers and brokers came along not only could the consumer find lower interest rates compared to their local bank or credit union, they found quicker turn around times plus trained professionals providing consumers a cost analysis to confirm the decision they were making was in their best interest.

The mortgage banker and broker industry developed software and delivery systems superior to the banking industry the result was (prior to the Wall Street calamity) over 60% of the consumer relied upon the mortgage banker or broker for their mortgage and management of their equity resulting in higher satisfaction than any bank or credit union could deliver.

For those that are looking to buy for the first time or again, refinance or for those that simply need guidance on how they should be managing the equity of their home, searching for the seasoned loan originator should be their focus.

There are tough times ahead for the consumer because of the ridiculous regulation and underwriting atmosphere (see my blog on the new good faith estimate) plus lenders continue to extort money from the consumer based upon the discriminatory practice of our current credit scoring system. The banking lobby is stronger than ever trying to force us (mortgage banker and broker) out of business with the backing of Barney Frank and others.

I have been in the mortgage industry over two decades and watched our economy go up and down. I have watched industry production expand and contract. Witnessed the decimation of entire sectors due to 'irrational exuberance' bad behavior or fraud perpetrated by Enron and others. Finally I have witnessed the lack of government oversight including the various agencies responsible and no matter what party is in power fail miserably.

So the challenge for the consumer looking for a home loan is the limited access to a professional - seasoned - licensed mortgage professional. There are a few of us out there and I happen to be one of them.

I recommend you write your representative in DC and tell them you want fairness and competition not more regulatory non-sense (see previous blogs) and most important tell them to slam the door on the bank lobby while they are kicking out the insurance lobby. Are you with me?

http://activerain.com/blogs/kirkwilliams

I wish us all well.

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.

The American Public not so smart says HUD & Washington DC....

Thu, 15 Oct 2009 11:23:15 -0500

Sixty million dollar Obama program says "we know best" and wants to review your loan docs....I KNOW how cool is that? (he says in a tone of resentment) They (the government) think they are better equipped to tell you how to manage your money!

Well bust my buttons - 24 national and regional organizations, 5 multi state organizations plus 463 state and local housing counseling agencies. Yippeee!!! (getting a little more smarmy) 4400 counselors will be available to add their opinion about your loan. I am in awe of my government - how do I put my pants on in the morning?

So let's review. You will have 2 inches of disclosures thanks to Barney Frank and friends from both sides of the isle plus I will be disclosing the disclosures I disclosed to you after I initially disclosed it to you - (and I CAN'T WAIT to spring the new good faith estimate on you -COMING JAN. 01- see previous blogs) then your file will be underwritten - all the information is re-verified in multiple redundant systems over the course of the process then here comes your newly trained counselor to review all of this for you and provide their sage advice because they (your counselor) after working at the coffee stand since high school went through the HUD two week training program equipping them to counsel people making the most important financial decision of their lives....It's all good! If you don't believe me ask the folks going into foreclosure how the HUD counseling worked for them.

Banks don't train their people adequately to be loan officers so how do you feel about the government handling this when it is the government overseeing our financial system and this same government after many warnings allowed this financial meltdown to ocurr?

Sorry - I can't take this why should you? Why would I be so opposed to this non-sense? Is it because I am afraid of the educated public....no....is it because I am a sinister individual that preys upon the weak?....no ...Is it because I don't know what I'm doing so we need the government originating your loans?....no...

All the above activity plus add to this the discriminatory practice of a credit scoring system that artificially jacks your rate. Add the goofball (courtesy of Andrew Cuomo AG of NY) HVCC -appraisal process that is killing the consumer and adding more cost to the process doing nothing to prevent stupid nor does nothing to prevent bad behavior. Am I making sense?

This is a classic example of cover for the political bodies that should have been overseeing this to begin with and they dropped the ball. The result is what we see today (as the stock market soars over 10,000) the 200 million under represented American, the middle class is handed down crap like this.

America - you are not "stupid" so when will you finally say enough?

Please, I beg of you, write your representative. Ask them to strengthen oversite instead of subjecting us to all this "stupid". Lack of oversight has always been the problem wouldn't you agree?

I wish us all well.

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.

OK, Health Care is on a path so what about the economy?

Wed, 14 Oct 2009 10:36:10 -0500

Historically it is the lobbyist that writes the bills and our representation puts a bow on it and calls it representing "their constituency". Whats transparent are the lobbyists stomping around trying to get 'their say' in writing to water what they can down be it Health Care, Wall Street regulation or what the next 'stimulus' package should look like...or what I like to call the "simulus" package" (simulates or poses as a solution the result being modest and very short term results and terrible waste of money).

Harold Meyerson writes a great piece today and I wish to point it out to all plus I encourage you to send it to your Representative to remind them there is a little thing called the economy out there. The same old lobby activity goes on and this piece points out the usual players and the resistance toward the fixing of America and getting back on track.

Here is the link - very good read:

http://www.washingtonpost.com/wp-dyn/content/article/2009/10/13/AR2009101302653.html

I hope very much you all are taking a moment to email your representation and voicing your concern. Try not to rant. (Believe me it is hard at times) Articulate specifically your concerns and how you want your representative to represent you. IF you don't then you are part of the problem.

By the way for those that are interested in carrying the water and regurgitating talking points for their particular party....stop it. All parties in DC played a part in this debacle and the sooner you learn the facts (sometimes facts fly directly in the face of the rhetoric you are use to spewing) the better we all are and perhaps real reform in many areas can begin.

I wish us all well.

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.

In a credit score world is there a loan if you have no credit score?

Tue, 13 Oct 2009 11:36:38 -0500

The credit score system has not only cannibalized the lending world creating false barriers preventing the deserving applicant experiencing life on life terms from getting a decent interest rate it has now given cover to lenders to create more barriers for the non-score applicant.

Traditionally HUD (FHA loan) allowed us to construct non-traditional credit ratings from sources such as the cable company, insurance agents the list goes on. Traditionally we would take the non-traditional credit and submit the file for what we call a manual underwrite which simply means a real person underwrites the file performing traditional risk analysis underwriting to determine the applicants credit worthiness and ability to repay the loan.

Today the lenders no longer allow us to represent the un-represented in this system of discrimination and that is the cash buyer. The person who refuses to be subjected to the non-sense of credit cards and chooses to make purchases by paying cash vs. credit is penalized. Does this make sense and is there a solution in this messed up system?

YES. Amazingly despite the inept ignorant (you pick the word) incoherent stewardship by our government, by accident (it is my belief) there is still one place you have a shot of home ownership with no credit score and that is the USDA loan.

This is not an automatic however and there are exceptions however there is a rational approach and resolution as long as you are strong in other areas such as having job stability and debt to income is within guidelines. There are other USDA requirements such as income caps and the property must be in area designated as rural.

So until some smart lawyer goes to trial to bust up the credit score system in its current form you will be living in the country.

I wish us all well.

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.

Ignorance is in the forecast - HR Bill 3706 Rep Garrett NJ

Tue, 06 Oct 2009 18:38:35 -0500

The forecast tonight is more ignorance (just like rain) falling upon us from DC. The long-term forecast - the real estate market will continue to take a beating because congress just doesn't get it.

I'm back and here to rant. The newest self-proclaimed hero coming to the rescue on behalf of the consumer is Representative Garrett of New Jersey. He follows a long line of stupid from the east coast featuring the unflappable Barney Frank (MA) and Mr. Cuomo the Attorney General from New York. The hits keep rolling in with no meaningful results but the banks (all three of them) will continue to take advantage of the consumer - "the biggest loser". The bank lobby has a stranglehold on congress and we, as a nation will pay for that.

Defaults have hit HUD depleting the reserves below 2% (mandated minimum is 2%) so instead of funding or backing HUD (like they did for banks & AIG for example) the genius from New Jersey decided to torture (water board style) Main Street a little more by making it more difficult to purchase a home in an already dead horse economy.

Mr. Garrett's solution? Increase the minimum down payment from 3.5% to 5% for the FHA loan. The ‘thinking' behind this is more down payment means they (the buyer) are less likely to walk away from their home. I don't know what they smoke in Jersey but talking to folks that put 20 or 30 percent down three years ago and have since lost their jobs wish they still had the money in the bank. Down payment is not the problem here!!!

This great thinking piggy backs the elimination of the down payment assistance program and lack of aggressive performance standards holding banks accountable to ensure they really modify loans to a successful conclusion but alas more foreclosures are coming.

Jobs right? The banks continue to say they are undermanned. You could hire 500,000 people to manage the backlog of foreclosures and get houses on the market and sold within a 60-day period. Better yet, get the loans modified to stop foreclosures for those still employed. This would be one component to help stabilize real estate values and help our economy.

I thought "TARP" was to eliminate the toxic assets so why are they (toxic assets) still there and what would motivate any bank to actively hire folks to get loans modified or foreclosures sold in a timely fashion? If there is no pressure to perform plus the cost of money to lend is at zero - do you seriously think banks would pass on the savings or pocket the profits? We already know the answer and the results have been reported.

The bank lobby continues to hold congress on their lap and members sit there quietly sucking their thumbs and occasionally burping up garbage like HR 3706, tedious bizarre disclosure rules and have you seen the new good faith estimate put out by HUD? Yikes!

America - please contact your representative and tell them to close the door on bank, Wall Street and insurance lobbyists then demand they help us here on Main Street.

I wish us all well.

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.

America - Look what the Department of Silly (HUD) has for you Jan.01.2010!

Fri, 02 Oct 2009 10:37:49 -0500

In keeping with its inept tradition to include wasting tax payer money, eliminating programs like the down payment assistance program (a cost neutral program that would help stimulate home sales and toward creating a floor in pricing) HUD has its latest attempt to better inform the consumer by revamping the good faith estimate.

I introduce to you the new THREE page good faith estimate - click link below:

http://www.hud.gov/content/releases/goodfaithestimate.pdf

What's different? Everything. How can a consumer compare with other lenders? They can't unless they take a class. It does allow for a superficial comparison similar to what you find on the Internet.

Highlights of the new Good Faith Estimate:

THE GOOD:
In encourages people to shop around

THE BAD:
How can you shop around with this form?

The good thing about the form is the section called"Summary of your loan". It covers important things a consumer should know and I like this part of the form. The EXCEPTION to this is the fourth item in the summary - The payment- If you read it carefully we as lenders are only to put Principal and interest plus the mortgage insurance premium payment (if applicable) The next section called "Escrow Account Information" Poorly written (must have been an intern). I will let you guess what goes in the box.

For those that are familiar with the current good faith estimate and for those that have financed a home before I want you to pull out your good faith estimate and try to fit the numbers you have on your current good faith estimate on to the 'new and improved' good faith estimate.

This is a game you can play for hours. By the way, write your representation in DC and tell them how much you like these "sweeping reforms".

My point is all the non-sense above and any amount of disclosure will not protect the consumer from bad decisions or bad advice. You should always shop or look for the established mortgage professional instead of rate or program period. If you are working with a professional they will guide you through this and find for you the loan program that best fits you and the most competitive rate based upon your profile.

I wish us all well.

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.

Barney Frank & Friends lack knowledge & skill

Thu, 24 Sep 2009 15:40:33 -0500

The staggering ignorance exhibited by the folks that are intimately involved with the outcome of this financial calamity was further demonstrated by Barney Frank (D) MA.

I am not a mortgage broker (I am a mortgage banker) and the statement Mr. Frank made is outrageous and baffling considering we have had two years of hearings teaching him what it was he was to have been overseeing as Chair of the committee that was to oversee all of this. Alas he still does not understand the market place and how it works.

Mr. Frank was attending a meeting and in that meeting Timothy Geitner Treasury Secretary stated "regulatory overhaul without limiting consumer choice of financial products or stifling competition" was the focus. Barney Frank the Banking Chair seems to be at odds with Mr. Geitner because in that same meeting Mr. Frank stated he wants a death panel for mortgage brokers or "a mechanism for putting non-banking financial institutions out of everyone's misery" in other words Mr. Frank enjoys and wishes to maintain his lifestyle the banking lobby has provided for him.

Mr. Frank it seems wants to limit a consumer option which is consistent with the mindless logic he puts forth when he expresses his vision on heath care and unfortunately he is not alone. (Insurance industry is the 2^nd largest lobby group).

My point is it is very disappointing. I am not an ideologue and don't carry the water for any party because they all have messed this up and the chickens have come home to roost. We have no meaningful leadership to guide our country through the calamity Wall Street carelessly dumped in our lap.

This never would have happened but for a bill signing in December of 1999 with the support of Barney Frank and Friends eliminating good old fashioned risk analysis underwriting in exchange for wild wild west. Unregulated areas of Wall Street, the triple A ratings that were never really measured, the lack of oversight on lending standards, builders owning their own mortgage companies ....the list goes on.

The banking lobby is the strongest in our country and the above demonstrates it continues to have a stranglehold on congress which inevitably means the banking world will have a strangle hold on the consumer. If you have any doubt just look at the rate on your credit card and remember the cost of money for banks is near zero.

Welcome to the Republic of Wall Street.

I wish us all well.

Information - News - and Alerts! Visit www.kirkwilliamsgroup.com for home financing.