SHAUN's Blog

CASH,CREDIT, AND EQUITY.

SHAUN WREN (LICENSE IS NOT PLACED) — Sun, 20 Jul 2008 17:58:13 -0500

Ok, I am writing this to try to put things into perspective.

Are you thinking about refinancing your home to pay-off some bills?

1 Credit - This is not your money. This is someone else's money that is willing to loan to you. The reason that they want to loan this to you is to make money from it.

2.In society today ,People use credit to buy groceries,gas, and things that they would not normally be able to afford. This isn't a good practice. Unless you pay it off at the end of the month and you do this for convenience.

3. Equity-This is not free money. Yes-it is your money and if you sell your home you are entitled to it. But if you take it out, you are going to have to pay for it to continue to live in the home. If you have over spent your limit, this is only a temporary fix. It will lower your monthly payment .But, you will pay for it for 15,20 to 30 yrs depending on how long your loan is.

I have customers that want to refinance and pay off their bills. Well there are two different things in that sentence, refinancing and paying off bills. You should refinance if you will save money by paying a lower interest rate. Also remember that there are closing costs associated with th refinance and it may cost you more to refinace than it would to continue to pay on the credit cards. The part about paying off your credit cards isn't true. You are not paying them off. You are only transferring them to a different line of credit so you will pay a lower interest rate.

I would never recommend for someone to refinance and pay a car off. The car will depreciate and you will still be paying for it for years to come.

egagtrom ruoy htiw uoy pleh

SHAUN WREN (LICENSE IS NOT PLACED) — Fri, 11 Jul 2008 16:08:10 -0500

Yes, the non-conforming and subprime markets have taken a hit. But the Full-doc loans are still ok. 100% financing is still available along with Down Payment Assistance. This is what I think. The lower priced homes will be the next big selling item. The reason I say this is because the stated income loans require more money down. They are still out there but for the investor to reduce risk, they are now requiring higher credit scores and lower ltv's. The full doc loan programs make us verify income. No more getting just a little bigger home. If the customer doesn't have great credit or a lot of money to put down, they will have to do a full doc loan. This means they may not qualify for as big of a home as they once did. So, If you are not selling lower priced homes, It may take longer to get a qualified borrower and your sales my be farther and farther apart.Are you looking yet

My ARM Hurts. Its Not Broke, I Am.

SHAUN WREN (LICENSE IS NOT PLACED) — Fri, 11 Jul 2008 15:54:07 -0500

Are you upset with the fact that your Adjustable Rate Mortgage is going up? Hmmm. Lets see now, adjustable What does that mean? Well, if you didn't ask this question shame on you. When the rates started dropping, An arm was the way to go. But, who would have thought that the rates might go up? I say anyone that looked at the disclosures that you signed. I thnk that there are about 5 different disclosures that you sign that say the same thing. The rate may rise and your payment may go up. It is not the fault of the Mortgage Broker/Lender. They did there job. They gave you just what you asked for. The lowest payment possible. I watched people over the last couple of years quoting arms and said "Not Me". What happens when the economy gets better? The rates will go up and I don't want to put someone in a house that they will price themselves out of.

Don't blame the Broker. Blame yourself for not reading or understanding. If you asked what could happen, do you really think the lender would say rates are not going to rise?

Please note. I have only closed 1 ARM it was to an investor that was going to flip the property. he was very aware of the arm. Rate isn't the only thing to consider when getting a mortgage.

Credit, Not Savings.

SHAUN WREN (LICENSE IS NOT PLACED) — Fri, 11 Jul 2008 15:51:10 -0500

Ok, I am writing this to try to put things into perspective.

Are you thinking about refinancing your home to pay-off some bills?

1 Credit - This is not your money. This is someone else's money that is willing to loan to you. The reason that they want to loan this to you is to make money from it.

I would never recommend for someone to refinance and pay a car off. The car will depreciate and you will still be paying for it for years to come.

I'll tweak it a bit and make it work.

SHAUN WREN (LICENSE IS NOT PLACED) — Fri, 11 Jul 2008 15:43:40 -0500

Here is another program that is often abused or manipulated. I think the general concept of this loan was this:

A self employed borrower owns his own business. He only takes a moderate paycheck so he can continue to grow his business. After a while, his company really starts to make a profit. He decides he wants to buy a nicer home, But the lender wants to see what he has made in the last 2 years. The owner then says "I have made a lot of money, But I have reinvested it into my company." This I believe is where stated came from. It gives the Underwriter the flexibility to say "Yes , it is likely that this could happen and that he could have made that much money doing that job.

Another great reason to use stated is if someone makes overtime, it hasn't been consistant for a full year and it is expected to continue.

Now, We find that instead of telling John Doe "You really don't make enough money to buy this home," instead, Lets say you make enough so you can get the home. It doesn't matter that you don't really make that much. And we can just keep inflating your income until the ratios work.

The customer is happy because he gets the approval.

A bad time to use stated would be a single parent making $10.00 working as an assistant that has their credit cards maxed out. The borrower can't ratio because she is maxed out,But if you keep stating her income until the ratios work. Then some people would thing they have a loan because the ratios will work now. Just because you can make the ratios work doesn't make it right.

I am sorry, But I don't work this way. It would be hard for me to sleep at night knowing that I just helped someone get a loan that they didn't deserve and eventually won't be able to pay for it. Ratios are used for a reason. If the customer doesn't qualify. Then they Don't Qualify. Just because the numbers can be manipulated doesn't mean that they should. Unfortunately there are some people that only care about closing a deal. No matter what the cost. I think that is sad.

How do you recruit a good group?

SHAUN WREN (LICENSE IS NOT PLACED) — Sat, 07 Jun 2008 20:30:53 -0500

How do you put a dream team together? If you want to start your own group, how do you get started? I see many groups and some in my area are headed up by people that I have never heard of. Is it based on sales or by someone that is more motivated than others? I have never been on a Real Estate team so ,I am curious how they work. I wonder if a mortgage team would work? Why wouldn't a Real Estate team have their own Mortgage person on their team?

Are you preapproved or prequalified?

SHAUN WREN (LICENSE IS NOT PLACED) — Sat, 07 Jun 2008 20:17:56 -0500

Do you know the difference? I see where some mortgage people are advertising that they can preapprove a client in 1 hour or less. Wow, I must be missing something. It takes me a little longer unless they bring in w2s,bank statements,paystubs and documentation of their investment accounts. I can say they are pre qualified but not preapproved until I see these things. I have to verify that the information they have said is correct based on the way we have to figure income and based on the guidelines. I guess a Realtor may be willing to wait until the information is verifeid to get a decision instead of guessing that their buyer will qualify.Would you want someone prequalified or preapproved. I will send a letter of approval. But only after I have verified all related documentation.

Looking For a Lease in Christian County Kentucky.

SHAUN WREN (LICENSE IS NOT PLACED) — Sat, 07 Jun 2008 20:07:11 -0500

I am lookin for some land to lease for 1 week of the Hunting season. I would like to lease about 50-60 acres. It would be for the second full week in November. If you know anyone that has sopme property for lease please have them call me. I have been Hunting near Pennyrile for the last 3 years. The owner of the lease, did not renew this year. I don't need guide services and I have a place to sleep already.

Americas Most Wanted

SHAUN WREN (LICENSE IS NOT PLACED) — Sat, 17 May 2008 20:40:07 -0500

America's Most Wanted has just captured it's 1000th fugitive. Congratulations and job well done. This is one of my favorite shows. I find it amazing how criminals feel that they are smarter than law enforcement. Mr. John Walsh has dedicated his life to the program. Thanks for your contribution to society.

Funny how things change

SHAUN WREN (LICENSE IS NOT PLACED) — Tue, 13 May 2008 14:56:07 -0500

This is a post that I posted in the carnival of content. Many people didn't agree with me then. What do you think now?

When you decide to buy a home there are a lot of decisions that you have to make. One of the most important decisions will be-"How will I pay for this home.?" Another important question would be"How long do I plan on living here?" These are very important because they will help you to determine what type of loan will be best for you. Although there are many loans to choose from, I am going to make it a little easier for you. I am going to narrow the field down to two type of loans.

First, lets start out with the ADJUSTABLE Rate Mortgage. Also know as an ARM.

Did you notice that I underlined the word Adjustable in the name of this loan? This is the single most important thing about this type of loan. You might ask,"What difference does it make if it is Adjustable or not?" Having and Arm can be like a two edged sword.By that, I mean that depending on what the market is doing will depend on if you rates are rising or falling. The best case scenario for you the consumer would be to Purchase a home with an adjustable rate and have the market going down. If this were the case , your payment would continue to go down. But, as most people have seen in the past 24 months that is not the case. People were promised low start rates that have went up and up . How does this affect you? As the rates increase, So, does your payment. Some people just barely qualified for loans at the lower rates. Now that the rates are rising they continue to see their payment go up. Eventually they will not be able to afford the payment and will be forced to refinance,sell, or ultimately face foreclosure. If you take the name of the loan, stop and think about it, You will realize that the loan payment will never remain the same. If you are buying the home for a short period of time this might be an option. Do You Feel Lucky?

Now we have my personal favorite, The FIXED Rate Loan.

98% of the loans I do are fixed rate loans. Unlike an Arm, This rate stays the same throughout the life of the loan. The principal and interest payment stays the same. I feel that this is the best loan to go with because you have no way to determine what may happen in the future. But you can be sure what your payment will be. Here is your worse case scenario with a fixed loan. If the rates drop, you can do what we call a rate and term refinance. This will allow you to take advantage of the lower interest rate and save even more money.

If you feel that you are lucky and the market will go down then try the Arm. I am betting that the rates will continue to go up and it will cost you in the end. If you want to take my advice and get your rate fixed, Give me a call.

Shaun Wren

WrenMB.com

Have you heard about the JONES?

SHAUN WREN (LICENSE IS NOT PLACED) — Tue, 13 May 2008 14:18:11 -0500

Have you heard? The Jones' just bought a new car. Did you here that they bought a new boat? Oh My, look how big that house is that they are building on the lake. I heard they just bought a log cabin in the mountains. When does it end. Who gives a rip what the Jones' have bought or done. So many people are trying to keep up with the Jones' buying things that they can't afford. News flash, The Jones' just got their notice from foreclosure. Just kidding. I think it is amazing that people couldn't afford to buy homes through traditional financing But, to keep up with the Jones', they took a chance on adjustable products. When these loans adjusted,people started accusing the Lender of ripping them off .

Ok Enough is enough.

You signed the discloures. You wanted to keep up with the Jones'. Now you are in forclosure like the Jones'.

For the record- I don't recommend adjustable rate loans to customers. The difference between an adjustable vs. a fixed doesn't make sense.

I missed you.

SHAUN WREN (LICENSE IS NOT PLACED) — Sun, 27 Apr 2008 12:28:18 -0500

After a few months of hard work, learning a new industry, I have returned. I would drop in the Rain from time to time to see what was hapenning. I am happy to be able to devote more time to keep up with the industry and share viewpoints on different topics. It is good to see that we are still growing as a community.

Sebastian Inlet State Park

SHAUN WREN (LICENSE IS NOT PLACED) — Sun, 27 Apr 2008 11:40:48 -0500

Welcome to Sebastian Inlet State Park

The premier saltwater fishing spot on Florida's east coast, this park is a favorite for anglers nationwide for catching snook, redfish, bluefish, and Spanish mackerel from its jetties. Surfing is also a popular recreation and several major competitions are held here every year. Two museums provide a history of the area. The McLarty Treasure Museum features the history of the 1715 Spanish treasure fleet; the Sebastian Fishing Museum tells the history of the area's fishing industry. Three miles of beautiful beaches provide opportunities for swimming, scuba diving, snorkeling, shelling, and sunbathing. Canoeing and kayaking in the Indian River Lagoon are also favorite pastimes. Visitors can relax with a stroll down the mile-long Hammock Trail. Waterfront pavilions and picnic areas are great for family outings. Full-facility campsites and a boat ramp are available. Located on State Road A1A 15 miles south of Melbourne Beach.

Contact the Florida Park Service Information Center for general inquiries.
For Information about Sebastian Inlet State Park, please call 321-984-4852.

Sorry about the Cut and Paste for this post. This is really a great place to Fish,Camp,Surf or Sunbathe. I have been coming here for the last 25 years. When I was young I would come her for the great surfing. Now that I am older, I enjoy fishing. Hope you get the chance to visit.

Another Step

SHAUN WREN (LICENSE IS NOT PLACED) — Sun, 27 Apr 2008 10:57:07 -0500

I have passed the Florida Health, Life, and Variable Annuities Test. I Received my license about a month ago. I have been working with a temporary license. I still have my Mortgage Brokers License and plan to keep it current. Now I am able to help more people plan for their future. I find my new job very rewarding.

Hope I Helped.

SHAUN WREN (LICENSE IS NOT PLACED) — Thu, 20 Dec 2007 20:08:21 -0600

I hope that I have helped and or inspired some people here on the Rain. I will continue to check in and see the progress that is being made here. I have met some people here that have helped me grow in Mortgage. I have decided to take an Offer From Western and Southern Life Insurance. This will be a change for me but due to the declining market, I have come to a point that I had to satrt looking in a different directon. I will continue to hold my Broker license and I will refer deals to people that I trust. God Bless and Good Luck.

USHUD.COM

SHAUN WREN (LICENSE IS NOT PLACED) — Thu, 29 Nov 2007 09:29:26 -0600

Fellow Activerainers- Please do not get this company confused with Hud.gov. These people are using the similarity of their name to get your attention.

If you work for this ushud.com Please do not contact me again. I have now recieved 7 calls from your orginization and I still don't want to buy your leads. Although I think it is great that you were able to find me, I work from referrals.

Kentucky Deer Hunting

SHAUN WREN (LICENSE IS NOT PLACED) — Wed, 21 Nov 2007 08:52:27 -0600

I just got back from another great trip to Kentucky. Again we stayed at Pennyrile State Resort Park. I Missed a nice Buck, But , I still came home with a Doe. If you know anyone that has a lease available in Christian County, let me know. I have some friends that would like to go . But, we don't have enough room on our lease.

How can you make a difference?

SHAUN WREN (LICENSE IS NOT PLACED) — Mon, 05 Nov 2007 12:34:28 -0600

It is getting closer to Thanksgiving. I challenge you to help one person before Christmas. This could be anything that will make someone's life better. You can do this by doing a random act of kindness, to donating clothes that you don't wear to Goodwill or The Salvation Army. We are a very Blessed Country. Let's help out some people in need.

How much is it REALLY worth?

SHAUN WREN (LICENSE IS NOT PLACED) — Mon, 05 Nov 2007 10:49:52 -0600

How do you determine the value of a home? When we do the financing, it is very easy to tell. We have an

appraisal done. So , I ask. Why wouldn't you have and appraisal done when you list the property? I have a friend

that is an appraiser and he is doing appraisals for Realtors. He includes 9 comps- 3 of them will be current

listings. Then when the home sells, He will update the appraisal into the buyers name.This will help the seller

understand the value of the home and will help them list accordingly.

Stated loans - Did you stretch the truth?

SHAUN WREN (LICENSE IS NOT PLACED) — Fri, 05 Oct 2007 12:46:46 -0500

What is a stated loan designed for? It was intended for a self employed borrower that didn't claim all of his income. For example Bob Jones opens a new store. The first few years he barely pays himself a salary. By the 4th or 5th year,hes has established a well known store and business is great. He still take a modest salary, his perception is that he should leave as much money in the company so that he is able to pay cash for stock and upgrades to the store without extending any credit that is not necessary. I forgot to add that Bob always pays his bills on time or ahead of time.

Bob has a great credit score,money in his business that is his that he can use as he see fit. But he has only paid taxes on a small salary. Investors offered the Stated program because realistically Bob could and may be making double the salary that he made over the last 2 years. So,they took that into consideration and said ."Since you have such a good credit score and we see you have owned the business for more than 2 years,we are willing to take the risk and loan the money to you on stating a reasonable salary.

Next scenario

Now this is not how this was supposed to work. But was overlooked and helped push the industry over the edge.

Hourly employee- ratios are too high-has good credit. (lets state his income higher) Gee Whizz. Did you see that, When I increased his income- the ratios went down. I think I can get an approval with that.

The problem with this 2nd scenario is that the buyer still has the same bills that put him over the ratios, when you add the higher payment that he doesn't really qualify for. His ratios are really worse. (Less money available to pay his bills.)

Now there are other scenarios. But this puts this program into perspective.

Why add a pre-pay penalty to a subprime loan?

SHAUN WREN (LICENSE IS NOT PLACED) — Fri, 05 Oct 2007 10:27:03 -0500

I have the answer to this age old question. There are two ways that a sub-prime borrower may benefit from this.

The first is in the rate. A subprime borrower is someone that has not so perfect credit

including but not limited to:repossession,Bankruptcy,tax-leins, just to name a few there is considerably more risk to

do a loan for someone in this position. Based on the credit history, they show that they have already had

situations that caused them to default on payments. The Rate on a sub-prime loan is much higher than a

conventional loan due to the risk involved. With the payment so high,it makes it harder for the borrower to ratio

(qualify). By adding a prepay penalty- we are able to pass on a reduction to the rate . This is because the

investor will offer a better rate if they are guaranteed that they will be able to service the loan for a given amount

of time.The second advantage is that it is normally a 2-3 year pre-pay penalty. If you understand how the fico

system works, you know that your credit score is based on your last 2yrs credit history. The prepay penalty

allows the borrower the chance to rebuild their credit over the two years. This will raise their score and may allow

them to refiance into a convention loan program with a better interest rate.

No credit scores- No Problem.

SHAUN WREN (LICENSE IS NOT PLACED) — Fri, 05 Oct 2007 08:36:19 -0500

Do you have a customer that has payment history but no credit? We can use alternate credit, such as: Cell phone bill,insurance payments,home telephone bill,cable bill,satellite bill,water bill,electric bill, just to name a few. These are all acceptable lines of credit that normally do not report to the credit bureau. A customer may be renting now and we may be able to use that rental history too. This is a loan program that has been set up to help a customer with as little as 3% down to buy a home. We have helped many people reach the dream of home ownership. If you have any questions, give me a call.

Adjustable or Fixed? Make it adjustable and the Govt. will fix it later.

SHAUN WREN (LICENSE IS NOT PLACED) — Thu, 04 Oct 2007 14:45:00 -0500

According to the carnival of content, Most mortgage professionals agree that an adjustable rate mortgage is better than a fixed rate mortgage. Here I sit behind my desk reading yet another good family that is losing there home to and adjustable rate adjustment. I agree that and adjustable rate mortgage is a great mortgage. But for the right person. If there is only .250 difference to the rate , I don't think it is worth the risk. Yes you can give them a lower payment. But can you guarantee that lower payment? With a fixed rate mortgage, you can.

Is it just a new beginning?

SHAUN WREN (LICENSE IS NOT PLACED) — Wed, 03 Oct 2007 11:22:42 -0500

Mortgage Brokers and Realtors are both paid by commissions. With the slack in the market, Both sides have been effected. Some very good people have even had to leave the profession entirely. I thought that the strongest people would survive. Unfortunately it looks like they are just being replace with people that have less experience and have the reserves to wait until the market makes a recovery. If you are looking for a home or financing, check the credentials of the people you are working with. People that have been in the business and are still here will have the experience to get you the best deal.

What did you do 5 years ago?

SHAUN WREN (LICENSE IS NOT PLACED) — Tue, 02 Oct 2007 13:04:49 -0500

When I started my career in Mortgage, I was told the bubble will burst. I agreed 100%. But what would happen when the bubble burst? That was my question. My friend said that the value of homes would fall. I thought to my self -(The same values that have doubled and tripled over the last 5-7 years?) . Was this a bad thing? After thinking about it for a long time I question a couple of things.

1 Homes have appreciated too fast in our area and are their values really realistic?

2. How much appreciation should we expect from such an investment?

I think it is all about timing. People who bought 5-7 years ago look back now and say. "It was a good thing that I bought when I did." I think that now is a good time to buy and in 5-7 years when you look back you could say the same thing again. Interest rates are still at a very low level and the prices of homes continue to fall.