Olan Carder on Mortgages and Charlotte Home Loans

Follow up to Bank of America Subordination Problems...

Olan Carder (WR Starkey Mortgage) — Sat, 07 Mar 2009 11:01:47 -0600

I wanted to write a follow up post to the one I wrote last month about Bank of America and their useless wonderful subordination department. For those of you who read it, you remember my clients were forced to cancel their refinance (which saved them $300) because Bank of America would never respond on their subordination and finally denied it. We have appealed the decision and here goes...

After fighting with Bank of America to reconsider, we finally got them allow me to write a "Benefits Letter" that outlined the potential savings and therefore lower Debt-to-income ratio for them as the 2nd lien holder. They have sent us approval now to do the subordination, except we have to reduce the loan amount by $2000! Now the clients are going to have to bring and extra $2000 to closing and as you can imagine they are not excited about it.

This whole ordeal has taken almost 2 months. It has been a real nightmare to say the least. So, even though this might end up with a happy ending (sort of) my advice to anyone that needs to subordinate a Bank of America 2nd mortgage... BEWARE!

Olan Carder
www.charlottemortgageonline.com

Realtors are ALL Liars! and other stupid statements...

Olan Carder (WR Starkey Mortgage) — Thu, 05 Mar 2009 16:16:03 -0600

People say some crazy things when they get upset.

We all know that ALL Realtors aren't liars. Just like we know ALL lenders, politicians or attorneys aren't liars either. ALL Bank CEO's aren't greedy con-artists, but it sure makes us feel better to have someone to blame for our problems in life! When a crisis like this happen people want someone to blame, someone to punish. I think as a country we have to very careful NOT to become one big lynch-mob.

I have noticed lately that our political leaders have become very populist in their reactions to this financial meltdown, but before we lynch everyone in the financial industry maybe we should take a second to think about this, after a "crowd" was responsible for...

Crucifying Jesus
Empowering Hitler
Allowing Slavery

Following the "crowd" is something most of us are taught NOT to do growing up. The problem is that most people do it anyway and it is just too easy to jump on board the "Hate-Train" and make accusations at people we don't like or understand.

I realize that a lot of people have done some horrifically dishonest things to cause this mess, but I also am smart enough to realize a significant portion of the problem is the news media acting as the Pied Piper leading the general public to their financial doom. I hear comments all the time like, "Well everyone knows..." and "I heard on the news..." and those statements are typically followed by something completely false.

There are a lot of people to blame for the mess we are in, but casting blame at generalized groups of people is just plain dumb. It took a combination of stupid and dishonest people on all sides to cause a mess this big and to single out one group and "make them pay" is not the answer!

I think it would be better if we took aim before firing our finanical weapons of mass destruction! I talk to hundreds of people about this mess and I find almost no one actually understands what caused this crisis. I hear Fannie Mae, the government, liberals, Bank CEO's, Mortgage Brokers, Realtors, Builders, Appraisers, all blamed for this mess. If you don't have a clue, you really shouldn't make accusations against people. That's my policy.

Olan Carder
www.charlottemortgageonline.com

First Time Homebuyer Tax Credit

Olan Carder (WR Starkey Mortgage) — Tue, 03 Mar 2009 16:48:42 -0600

Everyone has heard about the first time homebuyer tax credit but many people still have questions. There are several important changes made that make the new credit a lot better than last year's model. If you would like to learn more about the new credit you can click below to read a full article on my outside blog.

Please comment on either site if you have questions. I would love to find you the answers!

Click here to read full article!

Northern Trust Should NOT Repay the Party Money!

Olan Carder (WR Starkey Mortgage) — Tue, 24 Feb 2009 19:48:43 -0600

Northern Trust, an investment bank that has remained profitable even through the last year, sponsors a PGA golf event. Their event just received an enormous amount of criticism from certain members of congress becuase they help client events at "fancy hotels" and provided live bands at parties, etc.

Barney Frank wrote the CEO of Northern Trust a letter stating, "We insist that you immediately return to the federal government the equivalent of what Northern Trust frittered away on these lavish events."

"At a time when millions of homeowners are facing foreclosure, businesses and consumers are in dire need of credit, and the government is trying to keep financial institutions - including yours - alive with billions in taxpayer funds, this behavior demonstrates extraordinary levels of irresponsibility and arrogance,"

GIVE ME A BREAK!

This is just stupid. Northern Trust is a profitable bank that didn't need or pursue the bail-out money. To tell them they can't host an event that helps them market their business is just plain dumb. Do we want banks that took bail-out money to FAIL???? You can't stop doing business! That's not the answer.

Northern Trust should be praised for managing their business so well that when mega-banks are failing they are still making profits! Instead we bash them for appreciating clients, hardworking employees and giving millions to charity... is this really where we headed?

Olan Carder
www.charlottemortgageonline.com

CNBC Shines Spotlight on Charlotte, NC

Olan Carder (WR Starkey Mortgage) — Sun, 15 Feb 2009 00:20:59 -0600

Click here for the link to the CNBC article.

As a loan officer and Charlotte native this article really caught my interest. It is basically connecting the overall impact on the economy with the sub-prime meltdown and showing how this has a huge effect on Charlotte as a banking center. Charlotte residents have bragged for years about being #2 in the U.S. in banking, but that is not so good when the financial system is in crisis.

I think some things people need to consider before making a rash judgment on Charlotte's future is the fact that this area has become too large and diverse economically to be crippled by one company or even one industry. Many large corporations have relocated to Charlotte or are planning to in the near future. Businesses that have nothing to do with banking view Charlotte as a great place to be.

Kannapolis is home to the new NC Research Campus which is bringing thousands of high end workers to the Charlotte area. Billy Graham Evangelistic Association is now headquartered here and the article mentions GMAC Financial Services and Morgan Stanley are looking to move to Charlotte. There is a lot going on here and even though Charlotte is certainly going to lose some jobs and take a severe hit with the weakness of Wachovia and Bank of America, I think in the long run we will be just fine.

Olan Carder
www.charlottemortgageonline.com

I Just Heard a Politician Make Sense!

Olan Carder (WR Starkey Mortgage) — Wed, 11 Feb 2009 15:24:40 -0600

OK I have calmed down and want to follow-up on my last post...

I just heard a congressman make a lot of sense and I realized that my last post threw them all under the buss! This guy said that the government shouldn't be trying to make lenders lend, they should be creating conditions under which lenders WANT to make loans and good loans. He said every time they try to make lenders lend it ends in bad loans. He mentioned the community reinvestment act in particular.

Hallelujah! There are some people that get it!

The problem right now was certainly not created because lenders didn't lend! The current problems were created because lenders made too many bad loans. The answer is for government to create conditions under which lenders want to make good loans... then when lenders are making good loans and are making money... SHUT UP and STAY OUT OF THE WAY!

Banks had rules before all of this for a reason. It amazes me now how mad people get because they got what they asked for all along!

Charlotte Inventory High or Low?

Olan Carder (WR Starkey Mortgage) — Mon, 09 Feb 2009 11:31:41 -0600

All you hear about is how high inventory is and the negative effect it has on prices in Real Estate. I understand that what you hear from the media are national numbers, but honestly even I assumed Charlotte inventory has to be pretty high right now.

This past weekend I decided to drive around and drop in on some open-houses and meet some new agents. I started by looking on the Internet to find some open houses that were near my house. I blocked a couple hours and hit the road.

First of all, I was suprised by how few open houses there were to visit. I figured there would be a lot more... Second, I was very suprised by how few houses were listed for sale around my area. I really thought I would see a lot more, and it has me thinking...

Is Charlotte Inventory high or low right now??

Olan Carder
www.charlottemortgageonline.com

Bank of America Subordinations BEWARE!!

Olan Carder (WR Starkey Mortgage) — Thu, 29 Jan 2009 14:49:46 -0600

I closed a refinance for one of my past clients on the 23rd and we had to subordinate a second lien they had with beloved Bank of America. We called B of A and asked about the process which they said was normally 10 business days but also noted that we could pay an additional $75 fee to RUSH the process and we would have it in 5 business days.

My processor had the closing attorney prepare the package and we sent it out on the 15th. I personally paid the RUSH fee of $75 to help out my client.

Well it is the 29th and still NO SUBORDINATION! I called Bank of America and talked with a delightful lady in the subordination department. Her comment was, "Sir, I understand your problem but you aren't the only one!" Well, I don't know about my client, the closing attorney or my company... but I feel better! Glad to know that I'm not the only one. That's helpful.

She went on to tell me that she could escalate it (whatever that means) but she would need the tracking number. I asked her to hold for a minute and I would get it.

She hung up.

I could rip a phonebook in half right now!!!!!! ARRRGGGGHHHH!!!

If you are refinancing and we need to subordinate and existing second mortgage or equity line... BEWARE! It will happen but it WILL NOT HAPPEN FAST!

Olan Carder
www.charlottemortgageonline.com

Obama Does Something Right!

Olan Carder (WR Starkey Mortgage) — Wed, 28 Jan 2009 14:10:43 -0600

I am not writing this as an Obama fan or as an Obama hater. I will be honest in that I did not vote for him, but I am trying very hard to approach his administration with an open mind. Sometimes in this country we get so dogmatic in our political views that we fail to examine each decision or policy of man or party because we already "know" they are right or wrong based on whether they are a donkey or elephant.

I heard President Obama speak today on the economic stimulus plan and he said something that I thought was a remarkably simple yet brilliant idea. They are making a website www.recovery.gov that will show where all the money in his plan is spent. Accountability and transparency go a long way and I just wanted to write and let others know about this great idea.

If you visit the site right now there is nothing there. It will not be up until the stimulus plan is passed.

Olan Carder
www.charlottemortgageonline.com

Don't Trust Uncle Sam with Your Mortgage!

Olan Carder (WR Starkey Mortgage) — Tue, 16 Dec 2008 15:39:22 -0600

New consumer protection laws are being passed to protect the consumer... they won't!

You can not replace good sense with regulations. The government continuously wants to add more rules, more paperwork and more requirements to getting a mortgage loan. Not all the changes are bad, but they can NEVER take the place of the actual consumer using their head!

For the rest of the story click here!

Isn't Rescession Good for Mortgage Rates??

Olan Carder (WR Starkey Mortgage) — Mon, 17 Nov 2008 15:56:47 -0600

I thought bad economic news was good for mortgage rates? Wow, with the news we have had lately we should be seeing rates in the 4% range!! The problem is that with all markets the people who buy the goods determine the market... overall economic conditions don't "control" any one market.

Here is an example... just because we are in a recession right now, that doesn't mean one product might now do really well. Just because the auto industry is in shambles right now, that doesn't mean that one new HOT car might not sell like crazy! It is the same with mortgage bonds... just because people don't want stocks right now, they aren't all turning to mortgage bonds.

Mortgage bonds are what directly control mortgage rates. If bonds are selling well, rates go down. Typically if the stock market is way off, our rates improve because people that were afraid to buy stocks turned to mortgage bonds as a safer investment. I think rates SHOULD be lower right now, but my opinion and $1 could buy you a coke right now. They should be lower because investors SHOULD be buying mortgage bonds like hot-cakes, but they aren't. We have seen some good days but the market is still very volatile.

The problem is that investors are very uncertain about what lies ahead. I think eventually rates are going much lower, but only time will tell.

Olan Carder
www.charlottemortgageonline.com

100% Financing is still available!!

Olan Carder (WR Starkey Mortgage) — Fri, 24 Oct 2008 18:28:53 -0500

Many lenders have stopped offering 100% financing but Myers Park Mortgage has it for Charlotte, NC!

With a credit market that is affecting which programs lenders offer, homebuyers are reluctant to move forward right now because they fear rates are high or they will be required to put too much money down. This is a MYTH that has been spread because of the media madness lately about the credit crisis.

The TRUTH is that mortgage lenders are still lending and Myers Park Mortgage is still offering several 100% financing programs in the Charlotte real estate market. We are offering 100% VA loans, 100% USDA loans and 100% Conventional loans! We are a HUD approved lender and also have several loan options with very small down payments for people with below average credit. All these options come with LOW FIXED RATES!

If you are interested in buying or refinancing in the Charlotte area, please give me a call for a FREE rate quote and pre-qualification.

Olan Carder
www.charlottemortgageonline.com

Mortgage Rates for North Carolina

Olan Carder (WR Starkey Mortgage) — Thu, 09 Oct 2008 11:12:02 -0500

Mortgage Rates move higher even though stocks are down!

In a typical market, if stocks are getting killed mortgage rates improve. We are NOT in a typical market. The driving force behind conforming mortgage rates (Fannie, Freddie, FHA, etc...) are mortgage bonds, also know as Mortgage Backed Securities (MBS).

In the investment world, mortgage has become a four letter word. Even though they offer a good return and far less risk than stocks, investors are too afraid to put money into anything with the word "mortgage" right now. That causes rates to move higher.

This is NOT a rate quote! This is just to give the average consumer a general idea of where rates are in North Carolina right now:

Conventional 30 Year Fixed: 6.250%

Conventional 15 Year Fixed: 6.125%

FHA 30 Year Fixed: 6.500%

These rates would assume a loan over $150K and good credit. If you would like a rate quote specific for your situation, please call Olan Carder at 980-721-7478.

Olan Carder
www.charlottemortgageonline.com

Is anyone still lending money??

Olan Carder (WR Starkey Mortgage) — Thu, 02 Oct 2008 13:17:35 -0500

YES! YES! YES!

Consumers have gotten the idea that mortgage lenders don't have money to lend! NOT TRUE.

I am a lender in Charlotte, NC, and we are doing just fine. Rates are low and loan programs haven't changed all that much. The main scenario that have gotten tough to find or more expensive are:

Stated Income
Investment Properties
Condos (a little tougher but still available)
Buying new homes before current home is sold (holding 2 homes)

People looking to buy for the first time can find plenty of financing programs. Credit guidelines have gotten a little more strict but not bad. It is just back to common sense. The bottom-line is that if you want to buy real estate... NOW is the time!

Olan Carder
www.charlottemortgageonline.com

Gas prices Drop!

Olan Carder (WR Starkey Mortgage) — Fri, 25 Jul 2008 16:41:58 -0500

Wow, local gas prices in Charlotte, NC have dropped. They had gotten up to $4.07 but today can be found as low as $3.89! A friend of mine told me that just over the border in S.C. you can find it for $3.59!! I hope this trend continues because as inflation goes, so goes interest rates. If inflation concerns are reduced, mortgage rates should drop.

I have heard several analysts on CNBC state that the speculators out there have driven the price of oil up, and that when it finally starts to turn the other direction, it could drop hard. I hope they are right. The counter argument is that it is demand only that has driven prices to where they are, but I personally think it is some of both factors.

Everyone have a great weekend out there! Maybe we can all afford to drive somewhere nice!

Olan Carder
www.charlottemortgageonline.com

House AID bill passes but there are strings attached

Olan Carder (WR Starkey Mortgage) — Thu, 24 Jul 2008 18:29:31 -0500

This week the House passed a $300 Billion aid bill that offers relief to many American families at risk of loosing thier homes. The bill gives FHA $300 Billion in new lending authority to help homeowners at risk. FHA would be permitted to refinance risky loans into a fixed rate mortgage if the existing lenders agrees to take 90% of the current appraised value. The lender would also have to pay FHA a 3% fee and the homeowner would have a 1.5% annual fee to FHA too.

The bill also gives Fannie and Freddie access to "unlimited" credit. The Treasury Department would also have authority to buy stock to avert collapse. I don't think this will be necesary, but the explicit backing helps Fannie/Freddie do business. It hasn't helped their stock prices in the last couple days. Fannie Mae was down about 19% today on news of slumping home sales.

Ok, here's the strings attached part...

FHA will lose the DPA (down payment assistance) programs that have allowed home buyers to purchase a new home with zero down. While this will almost certainly reduce defaults tomorrow, it will slow down home sales today. Not a quick fix at all, but probably a good move in the long run. Here's why...

FHA DPA programs are a play on an old FHA rule not really written for that purpose. FHA allows gift funds for down payment money. This was intended to come from family members and assistance programs from non-profits in the local community. The DPA companies have turned it into a profitable enterprise. They collect the 3% down payment money from the seller, charge a nice fee ($300-$500) and then "gift" the funds to the buyer at closing for down payment.

This increases defaults because the DPA has no future interest in the homeowner. If a young couple gets a gift from mom and dad and then fall on hard times, mom and dad will still be around to help out. Try calling the Nehemiah Program when you are behind on your bills...

Olan Carder
www.charlottemortgageonline.com

People still don't know how to get a mortgage!

Olan Carder (WR Starkey Mortgage) — Wed, 23 Jul 2008 17:24:48 -0500

People still do not know how to get a mortgage loan! I get a little frustrated sometimes because I have been doing this for 10 years now and nothing changes. People still think you are supposed to sit down and call like 5-10 lenders and ask them what their rate is...

THIS IS FOR CONSUMERS....

THEY ARE ALL THE SAME!!!

Now you might save an eighth of a point if you shop HARD... GRRRR, but how do you know you saved any money at all? By the time you call the 4th lender, the 1st lender's rate has changed!! I have to laugh right now to stop myself from crying.

How do you find an Attorney, Doctor, Dentist, CPA, Financial Planner, etc...

Go pick up the phone right now and call 5 of each of the professionals listed above and tell them, "I need your rates please?" I bet you several would hang up on you. You shop for new shoes, you shop at the mall, you shop to kill time with your girl friends.... you don't shop for a highly qualified professional that is going to operate on you, drill a hole in your mouth, make your retirement plans, deal with the IRS or LEND YOU $350,000! Sorry to vent so much but this is cathartic!!

If you want the right mortgage financing with a good rate, ASK around to people you know and trust that own homes! Go with the one that got the best referral, and let the guy/gal do their job and help you. In the current market, rate shopping is like asking for bottled water while your hair is on fire!

Olan Carder
www.charlottemortgageonline.com

Charlotte Mortgage Rates

Olan Carder (WR Starkey Mortgage) — Wed, 23 Jul 2008 17:08:42 -0500

Charlotte Mortgage Rates as of 7/23/08

FHA and Conventional 30 year fixed are around 6.5%. This is what most lenders are quoting out there.

The Mortgage Bond market improved a little today but overall rates are flat. The stock market rally over the past week has hurt mortage bonds quite a bit. I think a lot of bond investors are still waiting to see what the U.S. Gov help for Fannie/Freddie will look like too.

People are cautious out there right now which usually helps bonds... the problem is that people are cautious about anything with the term "mortgage" in it!

Olan Carder
www.charlottemortgageonline.com

Mortgages Rates for Charlotte NC

Olan Carder (WR Starkey Mortgage) — Mon, 23 Jun 2008 09:30:43 -0500

I am going to start regularly posting about mortgage rates and the market that drives them. Hopefully some folks will find this information helpful.

Market Trend
We saw rates improve a little last week. The market worsened Friday, however and so far today we haven't seen any change. The key thing to watch for this week is the Fed announcement coming on Wednesday afternoon. Most analysts are not expecting a rate change, but what the Fed says can rock the market without any actual rate hikes. If inflation is focussed on as a major concern - Watch out!

AVG RATES

30 Year Conventional - 6.42%

15 Year Conventional - 6.02%

The average rates above are a weekly average based on the published averages on FreddieMac's website. Typically I am able to beat these rates for my clients. If you are interest in a free rate quote, please visit my site at: http://www.mycharlottelender.com/forms/rateTracker.html

Olan Carder
Myers Park Mortgage/
www.mycharlottelender.com

Do you REALLY know how much your mortgage costs??

Olan Carder (WR Starkey Mortgage) — Thu, 12 Jun 2008 13:34:05 -0500

With the rise of the "No Cost" mortgage (which doesn't exist, by the way!) and the increased availability of information to the consumer to shop interest rates, a question came to mind... I wonder how many consumers really know how much they are actually paying for their mortgage????

Now we all know that lenders are required to show each client a Truth in Lending form with the all-important APR figure, but a majority of homebuyers have no earthly idea what an APR is or how it works, and frankly it wouldn't help them if they did!

The APR is only accurate IF the homeowner retains that mortgage for the full term. How many buyers today are out looking for a home for the next 30 years???? Well, for the past few years I have asked every client the question: "How long do you plan on keeping this house?" NOT ONE said it was a 30 year home! That means if they plan of keeping the house for 5 years and then moving on... that APR number is not relevant!!! The lender with the highest APR might have the best loan for your needs!!!!

I offer my clients a "Total Cost Analysis" that shows them several loan options over the time period they plan on being in the home. I don't think many lenders offer this, but I know some do. I think it is critical for homebuyers to have plan, and you can't plan properly unless you know what you are truly paying!

Here is how you can manually calculate it...

Add your closing costs + the interest you will pay for the time period + any mortgage insurance you will pay over the time period = TOTAL COST!

How to get your interest paid figure:

You can get your total interest paid by taking an amortization schedule and finding your ending balance at the end of the time period your will own the home, for example year five would be 60 months on the amortization schedule. You can find out how much principal you will pay on your loan in 5 years by subtracting the balance at the 60th month from the beginning balance (your loan amount). This will give you the principal you have paid towards your loan. All that is left is subtracting that principal figure from the total of all your payments over the 5 years.

Or you could CHEAT... my website has a calculator that shows you the interest for each year: http://www.mycharlottelender.com/mortgageLoanCalc.html

Your Charlotte Mortgage Specialist
Olan Carder
Myers Park Mortgage
www.mycharlottelender.com

What is fair game for a lender to share with a listing agent????

Olan Carder (WR Starkey Mortgage) — Wed, 11 Jun 2008 17:15:52 -0500

I just wrote a blog about this subject and got some great responses. This a little more specific, but I am wondering what people think out there in the real estate universe...

Most professionals I have heard from think that it is a good thing for the lender to keep everyone informed on the status of the loan, but how far does that go?? What is fair game to share and what isn't?

As for me, I think the lender should communicate the general status of the loan. That means: application made or not, approved or not, appraisal received or not, appraised for value or not, etc... I do not think the lender should be telling the listing agent specifics, ie the appraisal came in at $5,000 over the sales price, or the buyer is short funds to close, etc.

I think the general status in fair game, but details are confidential... what do you think??

Olan Carder
Myers Park Mortgage
www.mycharlottelender.com

Should a lender proactively update the listing agent??????

Olan Carder (WR Starkey Mortgage) — Wed, 04 Jun 2008 13:31:49 -0500

I am utterly confused, maybe even bewildered. I work for a company, one of very few, that believes in proactively updating all sides of a transaction. Over the many years we have had this practice, I have never heard anything but praise from Realtors on both sides of the deal. Recently, while assisting one of her clients, a buyer's agent that I work with got upset about us (the lender) communicating to the listing agent. Even though it is the only compaint I have received I wanted to get some feedback from the ActiveRain community, because generally speaking... you guys ROCK!!

This is the scenario...

#1. We sent an email in the beginning to let both agents know that loan application was made. According to the North Carolina contract requirements, application must be made within a set amount days. As a service, and frankly because we are just plain nice people, we send this email out to satisfy this requirement and relieve any work for the agents... She didn't like this at all...

#2. Our processors are required to update both agents on the loan status. Now, obviously they are not allowed to give away information confidential to the buyer, but they are told to give a general update on the status of the loan approval... She REALLY didn't like this part at all...

PLEASE HELP... I would like to hear from a ton of Realtors to get your opinion on this! Should we, as the lender, communicate loan updates to the listing agent???? We have always thought and been told yes, but this agent says a very strong NO... WHAT DO YOU THINK???

Olan Carder
Myers Park Mortgage
www.mycharlottelender.com

Monday morning in the mortgage business!

Olan Carder (WR Starkey Mortgage) — Mon, 07 Apr 2008 12:12:53 -0500

How do you get focused to start your week. Let me make a few suggestions....

#1. Plan your week and prioritize!

Decide on your major goals for the week first and design a plan of attack. If you block time out for what is most important the other little stuff will fit in just fine. The start to your week is important so build your momentum by doing one dollar-productive activity first!

#2. Don't forget your past clients!

I suggest blocking a few hours each week to call and check in with your past clients. We all get so busy in this industry with the next client we forget about the wonderful homeowners that got us this far. They might need advice or have someone else that does. Although the purpose of the call is service, you never know how profitable it might be!

#3. Get organized and stay that way!

If your desk is covered with files, get out a sheet of paper and make a list of everything that needs to be done on each file. Then get those files in alphabetical order in a file cabinet. Work on one thing at a time, and you will be amazed how how much more effective you are. Multi-tasking is overrated. Typically you just take longer to do each individual task.

Todd Duncan recommends blocking one hour to work on loans/paperwork and then blocking one hour for sales related activities. That way you know at least 50% on your time is spent "originating".

I hope this help someone and PLEASE post some ideas of your own!

Olan Carder
Myers Park Mortgage
www.mycharlottelender.com

NCAA Final Four - Trying to win or trying NOT to lose?

Olan Carder (WR Starkey Mortgage) — Fri, 04 Apr 2008 13:28:04 -0500

I am a HUGE Tarheel fan, so you can imagine how pumped I am for tomorrow's events! We have a great chance to go all the way this year and that gets me as excited as just about anything. Many Tarheel fans I know where praying for Davidson to win because they thought that would give us the easier game, but not me! Although I was pulling for Davidson with my heart, I really wanted Kansas to win.

Why you ask? Because I want my Heels to win, but I want to beat the best! I respect Davidson and what they accomplished this year, but Kansas is the better team. I want to see my team cut down the nets knowing they beat the very best teams to get there... AND I don't want to hear all my DUKE loving friends running their mouth about us having an "easy road".

How does this apply to real estate and mortgage lending? Simple... are you looking for the easy road to the top or the most fulfilling? I don't mean to imply that we should try to work harder for the sake of working harder... because that is definitely not me. I do mean to imply that we should all set high standards and never shrink back from a challenge. Are you still pursuing your dreams in this business, or are you settling for pretty good??

One thing I have learned from college hoops is this: You have to want to win MORE than you are afraid to lose!

If you are more afraid of losing than you are excited about winning, you play tight and never realize your full potential.

Olan Carder
Myers Park Mortgage
www.mycharlottelender.com

Are Stated Income loans bad??

Olan Carder (WR Starkey Mortgage) — Thu, 03 Apr 2008 00:14:53 -0500

Stated Income loans are becoming VERY hard to find in North Carolina. The state has passed legislation that makes it criminal to offer loans with no income verification (No Docs) but the interpretation of the new law has been varied when it comes to Stated Income. Fannie and Freddie just pulled their stated products, and I understand why, with the uncertainty in the mortgage bond markets they are trying to reassure investors that mortgages are a safe place to invest.

My question is not "do stated income loans make hot securities right now?" My question is regarding the nature and performance of the stated income loans. Do they have a place in our crazy mortgage world??

I believe the answer is a resounding YES! Stated Income loans serve an important function and my experience has suggested that often the clients that have needed stated income verification have been some of my more affluent and creditworthy borrowers. The problem is that many lenders began to offer stated income loans in wrong scenarios and to the wrong borrowers!

First-time home-buyers with salaried jobs should not be getting a stated income loan to qualify for more house than they can afford... BUT....

A self-employed borrower putting 20% down, with perfect credit and tons of reserve cash in the bank should be able to get a stated income loan because they can't show 2 full years of tax returns yet...

The loan should make sense, but to deny many self-employed borrowers who are very creditworthy isn't going to help the housing market either.