The Mortgage Insider with Rey Gallegos

FHA Home Loans in Las Vegas

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Sat, 09 Aug 2008 13:19:43 -0500

Las Vegas FHA Home Loan

Recently in Las Vegas, FHA Loans have become the primary mortgage loan for the purchase of a home. There are three primary reasons for this:

FHA is not a credit score driven program
FHA's allows some flexibility with their guidelines
Exceptions can be made and approved by the FHA underwriter directly

Fannie Mae and Freddie Mac's conventional comforming loans have become extremely hard to qualify for and increasingly costly, especially here is Las Vegas. Without 20% down payment, conventional loans require a 720 credit score and low debt ratios.

FHA has stepped in to supplement the Las Vegas market with an affordable, flexible, consumer friendly option. If you are in the market to purchase a Las Vegas home, you should look at an FHA Loan as an option.

There are many good reasons to choose an FHA loan for your Las Vegas purchase, especially if one or more of the following apply to you:

You're a first-time homebuyer (You don't have to be)
You don't have a lot of money to put down on a house
You want to keep your monthly payments as low as possible
You're worried about your monthly payments going up
You're worried about qualifying for a loan
You don't have perfect credit
You're worried about what will happen if you fall behind on your payments

You may use an FHA-insured mortgage to purchase or refinance a new or existing 1-4 family home, a condominium unit or a manufactured or mobile home (provided it is on a permanent foundation).

FHA Home Loan Features:

Lower Interest Rates: FHA loans have competitive interest rates because the Federal government insures the loans
Smaller Down Payment: FHA Loans require a 3.5% Down Payment (This can come from a family member, employer, or a charitable organization as a gift)
Easier qualification: Because the mortgage loan is insured by FHA it is easier to qualify if you have blemishes on your credit or there are exceptions on your loan application
Less than perfect credit: You may even qualify with a bankruptcy in the past
If you can not qualify on your own, you may use a family member, or close family friend, to qualify as a co-signer

FHA Home Loan Requirements:

Owner Occupied Properties Only
Single Family Residences, 2-4 Unit Properties, Planned Unit Developments, Manufactured Homes and Condo's are eligible properties for an FHA Mortgage Loan
Qualifying Debt-to-Income Ratios of 43% (Back End) or higher with Automated Underwriting approval
Sellers & interested third parties may contribute up to 6% for closing costs.
2 Months Reserves (Not every borrower needs 2 months reserves, however it helps to qualify. These reserves may come in the form as a gift)

FHA Upfront Mortgage Insurance Premium:

With all FHA insured loans there is an up front mortgage insurance premium (UFMIP) equal to 1.25% to 2.00% of the loan amount that is paid at closing. This mortgage insurance premium can be financed in your loan amount, so you are really paying it over the life of the loan. A majority of consumers take this route.

Example: Mortgage amount: $100,000 X 1.5% = $1,500 can be paid at closing. Or if you finance it into the loan @ 6.5% for 30 years = $ 9.48 per month.

FHA Monthly Mortgage Insurance:

On loans with a term, or life of the loan, greater than 15 years and a loan-to-value ratio of 90% or greater (meaning you are borrowing more than 90% of the value of the home), you will pay an annual mortgage insurance premium of 0.5% to .55% of the loan amount in monthly installments.

Example: Mortgage amount: $100,000 X 0.5% = $ 500/12 months = $41.67 per month

What kinds of loans does FHA offer?

Fixed Rate Loans: A majority of FHA loans are fixed rate loans. In a fixed rate mortgage your interest rate will stay the same throughout the life of the loan. The advantage of this type of mortgage is that your payment will never change. Currently FHA offers 30 Year Fixed and 15 Year Fixed Terms. The 30 year Fixed Rate FHA Mortgage is very popular in the Las Vegas and Las Vegas, NV area right now.
Adjustable Rate Loans: FHA offers an adjustable rate mortgage commonly known as an ARM Mortgage. FHA uses the 1-Year Constant Maturity Treasury Index (1 Yr CMT the most widely used index, to calculate the changes in interest rates. An index is a measure of interest rate changes that determine how much the interest rate on an ARM will change over time.) Currently with the way the Las Vegas, and Las Vegas Real Estate markets are performing I do not recommend this type of loan product.
Purchase/Rehabilitation Loans: There may be a Single Family Home that you see that would be terrific for you BUT it needs some repairs. FHA has a loan for rehabilitating and repairing this type of property called the SF Rehabilitation Loan program (203k). The mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. With all of the foreclosures in the Las Vegas Valley this may soon become a popular FHA home loan.

If you have more questions about a FHA Home Loan in Las Vegas, feel free to contact me directly at 702-808-8328 or visit my Las Vegas FHA Home Loan webpage. Serving Las Vegas, North Las Vegas, and Henderson, Nevada.

Las Vegas VA Home Loans

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Sat, 09 Aug 2008 13:00:19 -0500

Las Vegas VA Home Loans

The VA Loan is one of the best kept secrets in lending. In the past, many 100% Financing options over shadowed this mortgage loan, but recently we have seen a tremendous resurgence especially in the Henderson and Las Vegas, NV area. Because Clark County, Nevada is classified as a Class 5 "Soft Market" by Freddie Mac and Fannie Mae. The VA Home Loan is the only true 100% financing option available in the Las Vegas Mortgage Market. This loan is quite simple to understand and qualify for.

VA Home Loan Features:

No Down Payment
No Income limit
The Loan is Guaranteed by the Government (This is the banks reassurance that in case of default they may still be able to recoup their money)
No upfront or monthly Mortgage Insurance
This loan may be assumed by a qualifying person

VA Home Loan Requirements:

Military veterans, active duty person's, and members of the national guard or selected reserves are eligible
Qualifying persons must submit VA Form 26-1880, along with proof of service (DD Form 214, a statement of active duty, or proof of participation in the national guard or reserves) to the VA Eligibility Center (I can help you with this using our ACE System).
Based on the applicant's length and type of service, VA issues a certificate for each person determined eligible to apply for a VA guaranteed home loan.
A VA Funding Fee is required to be paid to the VA (This fee can be financed into the Mortgage Loan)
Automated Certificate of Eligibility (ACE) System:
Gone are the days of having to request a Certificate of Eligibility through snail mail. Now, our office has direct access to the VA's Automated Certificate of Eligibility (ACE) system. In most cases, we can pull a Certificate of Eligibility in a matter of minutes.

VA Funding Fee:

A VA funding fee is required to be paid to the VA for funding the loan. This fee covers administrative costs to the VA for providing this benefit. This fee is a percentage based on the total financed mortgage loan amount currently the VA funding fee is:

VA Funding Fee Chart (Current as of 11/05/2007)	Funding Fee %	Reservist FF % *
Purchase Loan Zero Down (includes HARMS)	2.15%	2.4%
Subsequent Loan (incl. HARMS)	3.35%	3.35%

For example, if you are active duty military and have not previously used you benefit before, you are financing $100,000 for the purchase of a new home with the VA Zero Down Home Loan. Your VA Funding Fee (2.15%) would be $2,150.

Do I always have to pay the VA Funding Fee?

No. If you have a Service Related Disability or for some refinances the Funding Fee is waived.

Do I have to use the Zero Down Benefit?

No, you can also use the benefit with 5% or 10% down or more at a discounted funding fee.

So, as long as I am a qualified Veteran can I get a Zero Down Home Loan?

Well, you still have to qualify for a VA Mortgage Loan like you would a regular mortgage loan i.e. employment qualifications, income qualifications, provide ability to repay, etc. but the VA makes many exceptions for it's Veterans.

What is the Las Vegas VA Loan Limit?

You may use the zero down benefit up to a $417,000 purchase price. The VA will insure a portion of the loans for home purchases made up to $1 million. However, the qualifying veteran is required to cover 25% of the difference above $417,000.

For example, if you a buying a Las Vegas home for $480,000 with a VA Loan, the VA will fully insure the first $417,000 and then they will insure the remaining $63,000 as long as the Veteran comes in with 25% or $15,750 of that $63,000.

I a Veteran and I think I am eligible for the VA Zero Down home Loan but I have more questions. What do I do now?

I would be happy to answer questions. You can call me at 702-808-8328. You can also visit my website to get you pre-approved for a VA Zero Down Home Loan. Serving Las Vegas, Henderson, and North Las Vegas, Nevada.

Welcome to a Full Doc World

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Fri, 16 May 2008 20:39:53 -0500

Hello...and Welcome to a Full Doc World!

Over the course of the last couple of months, I have witnessed changes to the lending process that have been more severe than all of the other changes since I have been in the business. This is in part due to fear...but let's face it, this is mostly due to money. When financial entities lose money...things change! When they lose large amounts of money...things change quickly!

I want to introduce you to the new world we live in...The Full Doc World. We as a Mortgage and Real Estate Professionals have a choice to make at this very moment, learn to live in our new world or find another career. You see in a Full Doc World, everything is on the table. Just when you think your done, something else may come up. Is it convenient, NO! Is it reality, YES! If you choose not to face this reality, you will be doing a great disservice to your clients and yourselves!

Below I have outlined what a Full Doc World really means. Many of the items that I outline below are not going to sound very fair. Please understand that these are not specific to my company, this is an industrywide tsunami that is mowing us down as we sleep! Consider this post as the high rise hotel that may help keep you dry. If there is a broker or bank that is not currently playing by the following rules, they will start VERY SOON! Unfortunately, it may be at the tail end of one of your transactions which may cost you a closing or a client. Prepare yourselves folks because if you thought it was tough before, it is about to get a whole lot tougher!

I myself had to come to a realization recently. This change was going to happen whether I wanted it to happen or not. When I had my epiphany, a great big smile came over my face. I GET IT!...and because I GET IT, I will be better prepared to move forward in this world from here on out. My buyers and the Real Estate Agents that I work with will stand a better chance of getting their transactions closed. Some of these buyers and agents may walk away in the near term, but when their realization comes, they will understand and hopefully come back. Below are the dark and gruesome truths as I am finding them out. Read with caution and understanding...and welcome to The Full Doc World!

Buyer's Income and Asset Documentation:

These are the two most important pieces to a Full Doc loan. Please don't get these confused with the income and asset documentation from 1 year ago or even 3 months ago. A simple Verification of Employment and 1 paystub WILL NOT work in our new world. This documentation is required and must undoubtedly support the buyers income. If there is a discrepancy, the err will be on the side of caution. If a guideline states that overtime income must be supported by twelve months on the job, it needs to be twelve months, not 11 months and 25 days. There are FEW if any income exceptions in this world. For assets, we need to see them and they will be verified. There are no letters of explanations as to why a buyer's name only appeared on the most recent statement or exceptions for reserve accounts being a dollar short. In addition to these unnerving requirements, when these documents are provided to underwriting, EVERYTHING INCLUDED IN THESE DOCUMENTS IS FAIR GAME. Underwriters will not look the other way, if there is a large deposit that they can not identify, it will be conditioned to be explained AND supporting documentation provided.

Stated Income and Reduced Doc Loans:

These loans are all but gone. The FBI has reported that misrepresentation of income has been the most prevalent form of mortgage fraud over the last couple of years. Mortgage Banks and Lenders have seen their stated income portfolios deteriorate in terms of performance. Mortgage Insurance companies will no longer insure stated income loans in Clark County. In a Full Doc World, these loans exist but are rarely used!

Prior to Closing Conditions:

Expect quite a few of these conditions, prepare your buyers that they will be coming. If we catch these items on the front side, the conditions will be fewer on the back side. Before we could "wait to see if the underwriter will request it", now we must expect for it to be a need to close the transaction. If they don't catch it in the beginning, the second set of eyes will catch it in the middle. Should both miss it, rest assured the third, fourth or fifth set of eyes WILL NOT! Does it sound daunting, well it is! Some buyers may feel like they are being "singled out" and are continually being asked for more and more conditions. Please let them know that while they are special, they are not unique! All buyers will be going through the same level of scrutiny that they are.

Appraisals, Inspections, and Re-Inspections:

All are on the table and will be requested. "As is" is not an acceptable answer to an FHA inspector. "We don't do repairs on our foreclosed properties" is the mantra of an asset manager that does not want to sell his clients properties. If there is a safety, security, or collateral issue on the appraisal or any inspection involved in the transaction, expect the underwriter to request it to be corrected. This was not the norm 1 month ago today, but it is the new norm in a Full Doc World!

Closing Times:

What all of these things add up to is increased closing times. Before, 30 days was considered an eternity for a closing to occur. The new reality is that closing will best be determined by the work that Mortgage and Real Estate Professionals do in advance. Docs will be held for the i to be dotted, and funding will be postponed until the t is crossed. In a Full Doc World, don't worry about how quickly you are going to get paid just be grateful that you are receiving a check.

Our positions as Mortgage Professionals have just become astronomically more difficult. Your career as a Real Estate Agent has now become increasingly more dependant on aligning yourself with a true Mortgage Professional. Experience and knowledge will once again be King! Those that choose not to conform WILL FAIL. The ability to successfully identify landmines, hurdles, and challenges before they come to be is the most important factor in closing a successful transaction. This WILL inevitably separate the best from the rest! Welcome to a Full Doc World!

Rey Gallegos

Mortgage Professional

REDC Foreclosure Auction Las Vegas

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Sun, 16 Mar 2008 13:12:10 -0500

The Las Vegas REDC Lender Foreclosed Public Home Auction is coming up soon. The previous REDC Auction last year was hugely successful. There are many Properties slated to be auctioned at this event!

I have been named an Auction Mortgage Loan Officer for the Preferred Auction Lender and am able to issue pre-qualification passes to enter the auction. If you are interested in attending, or if you are a Real Estate Agent and have a client that is interested in attending please contact me directly so that I can pre-qualify you or your client.

You can also use my secure online Quick Pre-Qualification Form. In the comments section of the form, be sure to note that you would like to attend the auction. Keep in mind because it is a secure form, it takes about 30 seconds to load so please be patient.

Once qualified, you will receive an auction pre-qualification form that serves as your entry, as well as an auction guide that was assembled by my team from the last public auction. This guide was developed based on the events that transpired from the last public foreclosure auction. It has been designed to help you and your clients navigate the controlled chaos that is a public auction and will help you avoid common pitfalls.

I will also be at the auction pre-qualifying late comers and once properties are auctioned off, I will be submitting the mortgage loans for those that have won properties.

For more information about the auction or to view properties, register, and more please visit the US Home Auction website. You can also call 1.800.690.REDC. When asked about pre-qualification just say you have already been pre-qualified by an auction lender and contact me right away!

Your Mortgage Partner for Life,

Rey Gallegos

Mortgage Loan Officer

Las Vegas, NV

Reverse Mortgages in Las Vegas, Trending Upward!

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Sat, 08 Mar 2008 13:15:31 -0600

I spend a large part of my day analyzing my business and the Las Vegas Real Estate and Mortgage Industry in general. I keep my eye on trends and attempt to figure out why the trends are happening. One trends that has particular intrigued me is Reverse Mortgages.

Today, Reverse mortgages are likely the only segment of the mortgage industry trending upward. This upward trend doesn't show any signs of slowing anytime soon as:

15 million senior households meeting eligibility requirements
More than 50% of senior's net worth is in home, an illiquid asset
There is $4.3 trillion of senior home equity in the nation today
Estimated 78 Million babyboomers begin turning 62 this year and will continue for next 17 years

Based on these figures, this will soon become a large market for Mortgage Originators especially in Las Vegas. As always, when there is a new trend you can rest assured that there will be unscrupulous originators trying to exploit the trend and make a quick buck.

In my previous post, Reverse Mortgages in Las Vegas, a Great Option for Some, I outline some of the features of Reverse Mortgages and how they pertain to the Las Vegas market.

I can not stress enough that if you or some one you know are in the market for a Reverse Mortgage, seek out an expert in the field with a reputable company. If you are unsure where to find one, feel free to contact me directly and I can assist you.

Your Mortgage Partner for Life,

Rey Gallegos
Home Loan Consultant

Low Jumbo Rates in Las Vegas

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Sun, 10 Feb 2008 13:44:14 -0600

Low Jumbo Rates in Las Vegas

Many Las Vegas residents that fit into the Jumbo Loan category, loan amounts greater than $417,000, know the woes of high Jumbo Loan rates. Since the beginning of the Mortgage Crises, Jumbo Loans were hit hard as Wall Street all but stopped buying these loans on the secondary market. This led to a quick increase in Jumbo Loan Rates which many banks and lenders are still passing onto their clients.

This has now come to an end. Recently a national bank has identified certain Jumbo Loan scenarios in the Las Vegas market as strong performers. Based on this research, they have decided to capture as much of this market as possible.

In order to do so, they have dramatically reduced their 30 Year Fixed Jumbo loan rates. Las Vegas area residents can now secure a 30 Year Fixed Jumbo Loan with an interest rate in the high 5% range.

Based on Jumbo rates in the last couple of years, these rates can save a signinifcant amount on your monthly payments. These loans can be secured as high as 80% LTV with jumbo Loan limits as high a $5.5 Million.

If you have any questions, please feel free to contact me directly.

Reverse Mortgages in Las Vegas, a Great Option for Some

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Sun, 10 Feb 2008 09:11:59 -0600

I like to research loan programs and scenarios I am not familiar with. One of those programs happens to be Reverse Mortgages. For those of you that do not know, Reverse Mortgages sometimes carry a very negative connotation with them.

What is a Reverse Mortgage?

A reverse mortgage enables homeowners aged 62 and over to convert part of their home equity into tax-free income without having to sell the home, give up title, or take on a new monthly mortgage payment. The reverse mortgage is aptly named because the payment stream is reversed. Instead of making monthly payments to your Mortgage Bank, as with a regular mortgage, your Mortgage Bank makes payments to the you.

Types of Reverse Mortgages:

Single-purpose: Offered by some state and local government agencies and nonprofit organizations.
Federally-insured: Backed by HUD and known as Home Equity Conversion Mortgages (HECMs).
Proprietary: Private loans that are backed by the lenders that develop them (SimpleEquity).

Key Features of a Reverse Mortgage

All borrowers on title must be at least 62 years of age.
Property must be the borrower's primary residence.
No income requirements and no monthly mortgage payments.
The loan accrues interest as long as borrowers live in the house. Borrowers make no payments on the loan, but are obligated to pay taxes and insurance (T&I).
Borrowers can take funds in a line of credit (LOC) or a fixed monthly payment.
- 70% of borrowers take the LOC and 50% of those take all available funds at closing.
- 65% of borrowers pay off an existing mortgage.
Note rates are based on an index plus a margin.
Loan is due and repaid upon permanent move out of borrower. This includes any of the following:
- Sale of property
- Consecutive period of twelve months away from residence
- Death
Principal, interest and service fees are repaid upon loan maturity.
Loan is non-recourse; borrower or heirs can never owe more than the appraised market value at time of repayment.

There are two types of Reverse Mortgages, the Line of Credit (LOC) and the traditional Reverse Mortgage. The LOC allows you to draw money when you choose to. The standard Reverse Mortgage pays monthly based on the set up of the original loan.

Is It a Good Loan?

As with ANY loan program, if the borrower can benefit from the loan, it is a terrific product. If you are on a fixed income and paying $700 per month for your mortgage, that can take a big dent. If you set up a reverse mortgage, you can not only eliminate your monthly mortgage payment but also get a monthly payment from the bank to you! You can see how that would benefit a lot of 62+ homeowners.

This Sounds Right for My Scenario, Now What?

The most important thing to do is to contact a REVERSE MORTGAGE SPECIALIST. Do not just contact the first name you see in the phone book. The Mortgage Professional that you contact should be specially trained and have experience writing these mortgages.

If you have any questions or need the recommendation of a good Reverse Mortgage Specialist in your area, please feel free to contact me directly.

Your Mortgage Partner for Life,

Rey Gallegos
Mortgage Loan Officer

Serving Las Vegas, North Las Vegas, and Henderson, Nevada.

Buying a Las Vegas Home, You NEED an Experienced Loan Officer

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Tue, 29 Jan 2008 15:00:07 -0600

If you are in the market to buy a home in Las Vegas, I have two very important things to tell you;

You have made a great decision!
Find yourself an honest, reliable and most importantly EXPERIENCED Loan Officer.

First, I believe you have made a terrific decision to buy a Las Vegas Home. Although Las Vegas has been one of the hardest hit areas in this declining market, many of the factors that drive this market have not changed. I have listed some of those key factors below:

Nevada is one of the most Corporate friendly States. Many companies are relocating and bringing massive work forces with them.
Tourism is what drives our local economy and it is still booming!
Because of the tourism, commercial construction and casinos are still going strong.
Every time a casino opens its doors, it creates many thousands of new jobs in ever sector.
Job opportunity continues to bring 4,000 to 6,000 new residents to Las Vegas every single month.
I could go on but I am sure you get the picture.

Once you have made a decision to buy in Las Vegas, your next step should be to find a quality Loan Officer and get Pre-Approved! The current mortgage market is in shambles. Changes are coming down daily from Freddie Mac, Fannie Mae and all of the major lenders. It is important that you find an experienced Loan Officer that KNOWS what the current market is doing and can anticipate changes that are going to soon happen. No longer should you trust just anyone with the financing of your most valuable asset, which is your home.

In the past couple of years, too many homeowners played "pin the tail on the donkey" with their Mortgage Lender and LOST! Before you move forward with any lender your should ask a couple of very important questions:

How long have you been in business?
What are your strengths and weaknesses when it come to lending?
How long has your company been in business in Las Vegas?
How do you seen the Las Vegas market in the next 2 to 5 years?
Can you offer every loan program that is currently available?

If you get push back from the Loan Officer, RUN! That is not the Loan Officer for you. Any good Lender should answer every question with a solid answer and not have to think about it. Our jobs are to know what is going on in the current Las Vegas market. We should also know what programs are available and if we offer them or not. Do your homework and make sure that the Loan Officer has the experience and knowledge to make things right for you.

If you have any questions about buying a home in Las Vegas or the current state of the mortgage or Las Vegas market feel free to contact me directly and I will be happy to help you.

Your Mortgage Partner for Life,

Rey Gallegos
Home Loan Consultant

FHA Refinance Loans in Las Vegas

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Thu, 24 Jan 2008 08:40:29 -0600

It seems as though every day the number of viable refinance programs for Las Vegas homeowners decreases. So it is up to us as Loan Officers, to help home owners reconnect with great refinance programs that were not considered before BUT have always been around.

A prime example of this is the 85% FHA Cash Out Refinance. You may be asking, 85% Cash Out in Las Vegas? Yes, in Las Vegas!

For those of you that don't know, Las Vegas has been classified as a "Soft Market". In not so many words, Mortgage Banks are more conservative with their guidelines in "Soft Markets". Meaning if the maximum guidelines for a loan program are 100% Loan-to-Value (Amount of the Mortgage Loan versus the Value of the Home in Terms of a Percentage), in a "Soft Market" they would be reduced by 5% for a Maximum of 85%.

FHA Loans are not affected by the soft market policy. So FHA will allow a Cash Out Refinance up to 85% of the homes value even in Las Vegas. With interest rates being so low these days, FHA Loans offer a tremendous savings in your monthly mortgage payment. The key items that determine eligibility for an FHA Cash Out Refinance are as follows:

FHA will allow a cash-out refinance of up to 85% of the appraiser's estimate of value subject to meeting all of the following eligibility conditions:

You must be able to qualify for an FHA Mortgage
The subject property must have been owned by the borrower as his or her principal residence for at least 12 months preceding the date of the loan application.
No 30 day late payments in the last twelve months
1- or 2-unit homes only
Existing Second Mortgages may remain in place, but subordinate to the FHA first mortgage, regardless of the total indebtedness or combined loan-to-value ratio, provided the homeowner qualifies for making scheduled payments on all liens.
Any co-borrower or cosigner being added to the note must be an occupant of the property. Non-occupant owners may not be added in order to meet FHA's credit underwriting guidelines for the mortgage.

As I said before this loan has been around for quite a while but has not been used. This FHA Refinance Loan could help many Las Vegas homeowners. Should you have any questions about this or any other refinance, please feel free to contact me directly.

Your Mortgage Partner for Life,

Rey Gallegos
Mortgage Loan Officer

Las Vegas, NV

Refinance VA Loans in Las Vegas

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Thu, 17 Jan 2008 14:20:35 -0600

I have always been a big fan of VA Loans. In the Las Vegas area, VA Loans have become extremely popular for many reasons. First, the VA has not instituted a 5% Soft Market Policy in Distressed markets. What that means is that it is becoming increasingly more difficult to buy a home with no money down. Unfortunately, Fannie Mae AND Freddie Mac have put Las Vegas into this category.

However, with your VA Loan benefit you can still use a purchase a property with NO Down Payment. This is exciting for the Men and Women that have served our country.

So many people know about buying a home with your VA Benefit BUT most people don't know that they can refinance their home into a VA Loan weather or not their current loan is through the VA. Some outstanding key options for a VA Refinance are:

100% Rate and Term Refinance available if you currently have a Non VA Loan
90% Cash Out Refinance Available
Interest Rate Reduction Refinance Loan (IRRRL) available that will lower the rate of your current VA Loan with very little qualifying

I have been a huge advocate of government loans for Las Vegas properties in recent months. If you have any questions please feel free to contact me directly.

Refinancing Your Las Vegas Property In a Down Market

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Fri, 04 Jan 2008 16:23:35 -0600

It is no secret that the state of the current housing market is flat out terrible. Many people that need to refinance are unable to do so because they owe more than their Las Vegas properties are worth. There are still many homeowners that would like to refinance for a variety of reasons such as:

Take advantage of historically low interest rates
Position themselves better to ride out the stom with a fixed rate mortgage
Pull cash out or consolidate debt

Because of the low interest rates now is a terrific time to refi as long as you can qualify. If you are one of those Las Vegas homeowners that needs to refinance, I would keep a couple of things in mind going into the transaction:

Expect the process to take a bit longer
Make sure your credit is in shape
Don't be shocked when your home comes in at a lower value than you expect
Find an experienced Las Vegas Loan Officer

If you have any questions about your Las Vegas or Nevada Refinance feel free to contact me directly.

Your mortgage partner for life,

Rey "Steak Dinner" Gallegos
Senior Loan Officer

Five Star Mortgage

Email: rey@steak-dinner.com
www.4NevadaHomeLoans.com
Proud member National Association of Mortgage Brokers

VA Loans in Las Vegas, Key Changes in Your VA Benefit

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Fri, 21 Dec 2007 10:09:46 -0600

The VA Zero Down Home Loan is one of the best kept secrets in lending. In the past, many 100% Financing options have over shadowed this mortgage loan but recently we have seen a tremendous resurgence of the VA Loan in the Las Vegas area. This loan is quite simple to understand and qualify for as long as you are a Veteran with the VA Loan Entitlement.

VA Home Loan Features:

No Down Payment
No Income limit
The Loan is Guaranteed by the Government (This is the banks reassurance that in case of default they may still be able to recoup their money)
No upfront or monthly Mortgage Insurance
This loan may be assumed by a qualifying person

New VA Loan Limits:

Ginnie Mae who is the government chartered corporation that insures VA Loans has raised their loan limits. The new loan limit for VA Loans is $650,000. This new loan limit is terrific for the Las Vegas market, as the prices are a bit higher than the rest of the country. Even though the VA Loan limits have been raised, loans that are above the conforming loan limit, $417,000, do not carry the same guidelines as a traditional VA Loan. The qualifying veteran is required to cover 25% of the difference above $417,000.

For example, if you a buying a Las Vegas home for $480,000 with a VA Loan, the VA will fully insure the first $417,000 and then they will insure the remaining $63,000 as long as the Veteran comes in with 25% or $15,750 of that $63,000.

Other Key Items To Note For VA Home Loans:

If a Veteran has a service related disability, they may be able to waive the VA Loan Funding Fee.
In community property states, non-borrowing spouses debt must be accounted for.

You can find more information on my Las Vegas VA Loans Here.

What To Expect From Your Las Vegas Mortgage Transaction

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Mon, 17 Dec 2007 18:05:58 -0600

Well folks, things have certainly changed in the last 6 months to a year in the Mortgage Industry. There are quite a few stories about how the market, guidelines, documentation, etc. are changing but one thing that has not been touched on is the overall mortgage experience. There are still many qualified borrowers and many qualified borrowing situations. Even though these borrowers meet all of the qualifications they will still be drastically affected by the market.

The remaining mortgage banks are being ultra conservative and very careful! Those that are still in business are going through extremely long delays because of new procedures that check and double check all files before an approval is even issued. Exceptions that would have normally been made with ease a year or two ago are no longer being made or need second level approval, which takes even more time. Each mortgage bank that is still in business may just be one default away from closing their doors. With all of this said, what can you expect from your mortgage experience should you be in a position to purchase or refinance?

Longer Turn Times - Our office has always been very quick with closings. That doesn't matter anymore. The banks are taking 5-6 business days to issues approvals on full packages and 3-5 days to sign off follow up conditions. Expect longer underwriting, expect to write letters of explanation for items that need clarification, and expect longer closing cycles.

More Documentation- If there is even a hint of a discrepancy, typo, wrong address, etc. Mortgage Banks are suspending the loan first and asking questions later. In years past, they would issue an approval with a condition for clarification. Address the problem up front so it does not hold you up.

I's dotted and T's crossed - Literally, detail is the key! If there is a potential issue, it needs to be addressed with a letter of explanation in the initial loan package. Don't wait for an underwriter to bring it up. Address it up front so that it does not become a bigger issue with more support documentation needed.

Now it is more important than ever to have your ducks in a row before you submit your loan for underwriting. Now it is extremely important to have an experienced loan officer. I have a new checklist that I include with every file so that we can avoid as many conditions as is possible. If you miss one you may have to wait another 3-5 business days before it gets signed off. As with anything, fool me once shame on you, fool me twice shame on me. From here on out, our files will be well detailed and packaged so that we have as few conditions as is possible. This is just the way things are in this market.

FHA Says Yes While Others Say No

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Fri, 14 Dec 2007 09:40:54 -0600

The FHA Loan Expansion bill is expected to be passed in the Senate soon. The new bill would reduce the required down payment on FHA Loans from 3% by half down to 1.5%. The bill would also increase the FHA Loan Limit in some areas up to $417,000.

This bill would help potential Las Vegas FHA Loan candidates, particularly because many Las Vegas area home loans exceed the current FHA Loan limit of $304,000.

FHA Loans are currently the most affordable option for many Las Vegas residents as Fannie Mae and Freddie Mac are making it increasingly harder for people to get a conforming loan which in the past have offered the best rates. New loan level pricing hits have made conforming loans increasingly more costly. Below I have outlined some of the key features of an FHA Loan.

Key FHA Home Loan Features:

Lower Interest Rates: FHA loans have competitive interest rates because the Federal government insures the loans
Smaller Down Payment: FHA Loans currently require a 3% down Payment (This can come from a family member, employer, or a charitable organization as a gift)
Easier qualification: Because the mortgage loan is insured by FHA it is easier to qualify if you have blemishes on your credit or there are exceptions on your loan application
Less than perfect credit: You may even qualify with a bankruptcy in the past

More and more of my Las Vegas clients are inquiring to learn more about FHA Loans. I believe that currently the FHA Home Loan is the best way to Purchase or Refinance a home. Feel free to contact me directly if you have any questions about FHA Home Loans.

Your mortgage partner for life,

Rey "Steak Dinner" Gallegos
Senior Loan Officer

Five Star Mortgage

Email: rey@steak-dinner.com
4NevadaMortgageLoans.com

Your complete community mortgage broker
Proud member National Association of Mortgage Brokers

Fannie Mae Says They Want Less Business...

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Mon, 10 Dec 2007 12:55:06 -0600

Fannie Mae Says We Want Less Business...well not in so many words!

On December 5, 2007 Fannie Mae announced that it will re-institute it's Maximum Financing in Declining Markets Policy. This policy had been removed by Fannie Mae in January of 2006. Basically, this policy will reduce the Maximum Loan-to-Value (LTV) Ratios by a pre-determined percentage if markets are considered to be soft, distressed or severely distressed. These determinations will be made by lenders and appraisers using tools to access housing trends like the S&P/Case Shiller Home Prices Indices, the Office of Federal Housing Enterprise Oversight (OFHEO) Index, and The National Association of Realtors (NAR) Statistics, to name a few. In addition to this, when running a loan through Desktop Underwriter (DU) which is Fannie Mae's Automated Underwriting engine, their findings may come back with a market indicator that will automatically reduce the max LTV for that particular loan.

This sounds pretty bad, huh? Yes, but there are some outs. If you can make a case that a property is not in a declining market, Fannie Mae may remove the restriction. How? Well your appraiser needs to be able to show reasons why a particular property does not meet the criteria. Also, the restrictions do not apply to to rate and term refinances that have an existing Fannie Mae-owned or securitized first mortgage.

This is just another in a long line of factors that WILL send more and more mortgage financing into government loans.

This policy goes into effect for all loan applications dated January 15th, 2008 or later.

Your mortgage partner for life,

Rey "Steak Dinner" Gallegos
Senior Loan Officer

Five Star Mortgage

Email: rey@steak-dinner.com
4NevadaMortgageLoans.com

Your complete community mortgage broker
Proud member National Association of Mortgage Brokers

I blame you for the mess we are in...

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Thu, 06 Dec 2007 17:51:23 -0600

Last month Fannie Mae and Freddie Mac announced new loan level adjustments. They are moving to more of a risk based pricing model, no doubt in response to recoup losses and mitigate further losses. These adjustments will mostly be based on FICO score. Before to qualify for Fannie or Freddie conforming loan, you needed a 620+ FICO to get the standard conforming rate. Now their will be additional loan level pricing adjustments for FICO scores below 680. If the Loan-to-Value (LTV) is greater than 70%, the pricing adjustments are as follows:

Fico 620 - 639 add 1.75 to discount
Fico 640 - 659 add 1.25 to discount
Fico 660 - 679 add .750 to discount

This new risked base pricing will be on Conforming Fixed (Greater than 15 year) and ARM programs. Other Fannie/Freddie programs like the My Community Mortgage (MCM), Expanded Approvals (Levels 1, 2 or 3), Home Possible, and Jumbo loan products will not be affected. There are also other changes for two-unit properties and properties with subordinate financing but I don't believe those will have the impact that the above changes will have.

Some banks have already adopted these changes while others have yet to announce. Of all of the changes that are going on in the Mortgage Market, I believe this will have the most significant impact. This is like double dipping on the risk assessment. Conforming loans have always been risk based. When you qualified for a conforming loan you also have to get Mortgage Insurance if your LTV is greater than 80%. This Mortgage Insurance policy was written with a factor that is based on the amount of risk each particular loan scenario had. For instance, a borrower would have to pay a higher MI rate if they had an LTV of 95% versus 87%. More risk, higher rate!

I wouldn't have such a problem with these changes if we sure that the Mortgage Insurance Companies won't raise their MI rates and/or start a similar FICO driven risk based model. That seems to be the next logical step.

The bottom line is that we are over paying for the past gluttony of the Mortgage and Real Estate Industries and the sad part is that we are all to blame.

Your mortgage partner for life,

Rey "Steak Dinner" Gallegos
Senior Loan Officer

Five Star Mortgage

Email: rey@steak-dinner.com
4NevadaMortgageLoans.com

Your complete community mortgage broker
Proud member National Association of Mortgage Brokers

Help, I Must Refinance but I am Upsidedown

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Tue, 04 Dec 2007 11:23:59 -0600

Many Las Vegas residents have been reaching out to me for help. The common question seems to be "I owe more than my home is worth, can I still refinance?" or "Can I still refinance if I am upside down in my Home Loan?"

You may recall a couple of weeks ago when I posted Upside Down? Need To Refi? This Program May Help! In this post, I outlined an FHA Home Loan that would allow a person to refinance if they owe more than their home is worth. FHA does not care how far upside down you are as long as you meet their criteria for the FHA loan. Some people may still be a little confused on the process so I will go into more detail.

You may be a candidate for this type of FHA refinance if:

You can qualify for an FHA loan
Your have a first and second mortgage on your home currently
The first mortgage is less than 97% of the homes current value
Your first mortgage loan amount is less than $304,000 (Las Vegas)
Note: Even if you have fallen behind on your mortgage payment or have recent credit issues because of your ARM adjustment, FHA will still consider your scenario

What are the keys to making sure we can Refinance in this manner?

Get your FHA Refinance Loan approved. In order to do this you must submit an application through an FHA Approved Lender.
The lender will then order an appraisal. Appraisals in Las Vegas usually cost around $350.
Get your current Second Mortgage to Re-Subordinate.

What do you mean Re-Subordinate?

Currently your second mortgage is a lien placed on your property behind your first mortgage. In not so technical terms, the first mortgage has first rights to get paid. Then the second mortgage gets paid. Lien positions (First, Second, Third, etc.) go in order of time they are put on the property. So if your current first mortgage got paid off through an FHA refinance, the second mortgage would slide into first position because it is the oldest lien. FHA will require that second mortgage to re-subordinate or go BACK into second position when the new FHA loan is closed. Nowadays second mortgage companies are usually very receptive to this option because it means they have a better chance at getting paid.

How do I Re-Subordinate?

I will help you with that. Once we get an FHA approval and get our appraisal done, I will put together a re-subordination package for you. We will consult with your second mortgage bank about the fastest process and what their fees are. Their fees are usually around $250.

I fit into the above scenario and think I understand the process. Now what?

If you think this sounds like your situation or even close to your situation, feel free to contact me directly and I can help you move forward.

Your mortgage partner for life,

Rey "Steak Dinner" Gallegos
Senior Loan Officer

Five Star Mortgage

Email: rey@steak-dinner.com
4NevadaMortgageLoans.com

Your complete community mortgage broker
Proud member National Association of Mortgage Brokers

VA Home Loans in Las Vegas, Should I use it?

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Wed, 28 Nov 2007 15:32:52 -0600

I get quite a few inquiries from consumers about using their VA Benefits to purchase or refinance a home in Las Vegas. The answer is an very loud, YES!

The fact of the matter is that VA Loans are the premier 100% Financing in Las Vegas, or anywhere for that matter. The rates are very competitive with Conforming Loan Rates and there is No Mortgage Insurance (MI) so your payment in most cases works out to be lower. If you have the ability to use the VA Benefit, USE IT!

Most people don't think about their VA Eligibility from so long ago! Guess what, the government wants to pay you back for your service so you might as well take advantage of it.

VA Home Loan's Key Features:

No Down Payment
No Income limit
The Loan is Guaranteed by the Government (This is the banks reassurance that in case of default they may still be able to recoup their money)
No upfront or monthly Mortgage Insurance
This loan may be assumed by a qualifying person

Also, gone are the days of having to request a Certificate of Eligibility through snail mail. Now, our office has direct access to the VA's Automated Certificate of Eligibility (ACE) system. In most cases, we can pull a Certificate of Eligibility in a matter of minutes.

Please feel free to contact me directly if you have any questions about VA loans.

Jumbo Loan Rates Still Favorable

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Mon, 26 Nov 2007 16:34:56 -0600

Can you still find Competitive Jumbo Mortgage Loan Rates in Las Vegas, YES!

One of the areas that was severely affected by the "Credit Crunch or "Mortgage Meltdown" was that of Jumbo Loans. To be considered "Jumbo" a Mortgage must have a Loan Amount above $417,000, which is the conforming loan limit. Because Las Vegas has such a high concentration of high value properties, the increased Jumbo rates hit particularly hard in this City!

I was recently speaking with a colleague and she told me that there was still solid Jumbo rates around for Las Vegas properties. I asked her what she thought were "Solid" rates. She quickly stated "7.6% at 90% LTV on a 5 Year ARM with Interest Only Payments!" Well I didn't quite believe her, so I did a little investigating and found a wholesale bank out of California that portfolios all of their loans. Apparently they also make quite a few exceptions. Some of there other highlights on their Jumbo Loan Products:

They do not require a VOR (Verification of Rent)
They will allow Private Party VOR's
No Payment Shock
Only one appraisal needed
They will use 1099's as income without having to show tax returns
Full Doc Only
Will make exceptions on those files thatare a little out of the box

This bank is currently really aggressive with their Jumbo Portfolio. For example, they will finance 80% LTV to $1.5 Million with a 6.75% Interest Only 5 YR ARM. If you have a Las Vegas Jumbo Mortgage Loan purchase or a refinance, this Bank may be able to help keep your rates low! Feel free to contact me directly and I would be happy to help you get a rate quote.

Your mortgage partner for life,

Rey "Steak Dinner" Gallegos
Senior Loan Officer

Five Star Mortgage

Email: rey@steak-dinner.com
4NevadaMortgageLoans.com

Your complete community mortgage broker
Proud member National Association of Mortgage Brokers

Loan Programs; The Good, The Bad, and The Downright EVIL!

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Tue, 20 Nov 2007 16:41:16 -0600

Because of the current mortgage crisis my email inbox has been flooded with questions from consumers about loan programs, loan products, and loan features. Over the last couple years, quite a few of those consumers put their faith in Loan Officers to guide them through the muddy mortgage waters. Unfortunately, their loan officer may not have been a great navigator. This could be because Loan Officers do not require a high level of training or education to get a license. This could also be because loan officers made an extraordinary amount of money, if they kept their clients in the dark. Any Loan Officer that puts their pocketbook in front of a consumer's well being should be immediately ex-communicated from The Mortgage Industry! I will save that conversation for another time. Here is the skinny on some loan programs and products as well as features that many of my clients have had questions about.

The Good: These products are the way to go right now. They are the most stable and in times of uncertainty they will be the "Go To" options.

Fixed-Rate Mortgage: This is a mortgage that has a fixed rate for life of the loan. These mortgages have terms from 15 to 40 years. I have even seen some 50 years but that was more on the sub-prime side of the industry and quite frankly is not a good loan. This type of mortgage has regained popularity due to the decline in the market. In my opinion, this is probably the best loan to be in right now if you're planning to be your house for any extended period of time. Even if you do not plan on staying in the loan for a while, it is better to be able to make the decision when you choose to and not when the loan terms require you to refinance.

The Bad: These are products or features that are currently not the best options for the consumer. They had their "hey day" and could very well become popular again in a different market.

Adjustable Rate Mortgage ARM: I'm sure everybody has heard all of the evils about this mortgage. This loan had its time and place! Notice I said the word had! Right now this is probably NOT the best loan to be in, unless you have one of the longer term ARM mortgages like five, seven or 10 years. However, there are scenarios that would call for an ARM. For instance, I have investors that I work with that would prefer to take the reduction in interest-rate that an ARM provides to save the money in their monthly payments.
Interest Only Mortgage Loans: This loan was very popular many years ago. Instead of paying your monthly required interest and a portion of your principle down every month, the minimum required payment was the interest only. This feature was used to keep payments manageable while not adding on to the principle balance like would happen in a Negative Amortization Loan.
Pre-Payment Penalties: Ah, the Pre-Payment Penalty (PPP). A necessary evil that allows banks to refinance your mortgage every couple of years and STILL be guaranteed a certain amount of profit. You see a PPP in actuality ensures that a loan will remain saleable on the secondary market. Why would an entity purchase a loan that did not have favorable terms if it was not guaranteed a profit? While there is no absolute guarantee, especially in this market, a PPP allows Mortgage Banks to sleep cozy at night. In turn you get a little better rate.

The Down Right Evil: Let's be clear, it is one thing to place a client in a loan when you have good intentions. These loan products and programs are strictly EVIL and are designed to benefit the Loan Officer and Mortgage Banks only!

Negative Amortization Loans: Basically, these loans allow a borrower to make a monthly payment that is less than the required interest due. This creates a gap between interest due and interest paid. That gap is then taken and placed on the principle balance of the loan. So if your minimum payment was $500 per month and your interest due was $800 per month, then $300 per month would be added on to your principle balance every single month. If you make that payment for 3 years then you will now have added $10,800 onto your principle balance. In addition to adding to the balance, the bank is now getting interest payments on your deferred interest. Can you say double dipping?
Option Arm Mortgage:This has also been referred to as the "Toxic ARM" or Pick a Payment Loan. This is a loan with the low start rate payment like 1%, which has the Negative Amortization feature from above. You also have the option to pay interest only, 30 Year Fixed, and 15 Year Fixed payments. This loan is not your friend! This loan was designed for consumers that wanted to maximize monthly cash flow for other investments that would NET them more money than the homes monthly appreciation. You know investor type people. Then a couple of years ago, the Mortgage Banks realized that they made a tremendous amount of money on this loan. You see it works like this. The fully indexed rate is variable. It is based on an index like the COFI, COSI, MTA, etc. If these indexes go up, so does your fully indexed rate and in turn your payments. Now if you only pay the Start Rate Payment Option, you get into a Negative Amortization situation and the Bank starts to double dip!

"Wow, we can make a ton of money on this mortgage product!" said the Mortgage Bank. "We need to sell more of these loans! Let's tap into the greedy Mortgage Bankers and Brokers on the retail level! Moooh-ha-ha-haha-ha"

They then decided to pay 3 Points Yield Spread Premium to the Loan Officers who placed people in these loans as long as the loan had a Three-Year Hard Pre-Payment Penalty on it. You heard it right 3 Points! Now you have a bunch of slime ball Loan Officers who are jamming people into these loans with the 1% Start Rate as the hook. They were also putting people into homes that were well beyond their means based on the LOW start rate payment. So now you have principle balances skyrocketing, indexes going up at a record pace, the market turned, and many people losing their homes. This is a bad loan!

If you have more questions about Las Vegas Home Loans, feel free to contact me directly.

Your mortgage partner for life,

Rey "Steak Dinner" Gallegos
Senior Loan Officer

Five Star Mortgage

Upside Down? Need To Refi? This Program May Help!

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Sat, 17 Nov 2007 08:42:03 -0600

In Las Vegas, this is an all too common scenario. You purchased your Las Vegas home 2 or 3 years ago with 100% Financing. Your ARM is getting ready to adjust to some astronomical monthly payment. Due to the declining market you owe more than your home is worth Upside Down.

This situation has kept MANY homeowners up at night! When trying to refinance yourself out of the predicament, most Mortgage Brokers and Lenders have told you to take a hike! What they don't know is that you may still be able to refinance.

A little known secret about FHA Home Loans is that FHA will allow you to refinance your home if you are Upside Down. This is a very common scenario now-a-days. You may be a candidate for this refinance if:

You can qualify for an FHA loan
Your have a first and second mortgage on your home currently
The first mortgage is less than 97% of the homes current value
Your first mortgage loan amount is less than $304,000 (Las Vegas)
Even if you have fallen behind on your payment FHA will still consider this scenario

If this sounds like your situation you can learn more about qualifying for an FHA Loan here. Also, feel free to contact me directly with questions.

Your mortgage partner for life,

Rey "Steak Dinner" Gallegos
Senior Loan Officer

Five Star Mortgage

Email: rey@steak-dinner.com
FHA Approved Mortgage Broker

Your complete community mortgage broker
Proud member National Association of Mortgage Brokers

HR 3915 Passes the House 291-127

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Fri, 16 Nov 2007 14:27:18 -0600

You heard it right! The Mortgage Reform and Anti-Predatory Lending of 2007 was passed by the House of Representatives. The good news is several pieces of this legislation that were not supported by The Nevada Association of Mortgage Professionals (NAMP) and the National Association of Mortgage Brokers (NAMB), were removed and or amended in our favor. The bad news is there are still sections of title three that do not favor Mortgage Brokers and homeowners. The bottom line is we need more NAMP and NAMB members. Every loan originator in this country should be a part of their state's Professional Association and a member of the National Association of Mortgage Brokers. If you are a Mortgage Banker, then you should be a part of your Professional Association! These groups are our strongest and loudest voice when legislation like this comes up. Now turn to the loan originator that has the office on your left in the office on your right and ask them if they are part of their states professional association. If they are not please ask them to join! The bottom line is we need more members!

Join The National Association of Mortgage Brokers Today!

Join The Mortgage Bankers Association Today!

Below you will find a letter from NAMB President George Hanzimanolis regarding the passing of HR 3915:

HR 3915 Passed in the House of Representatives 291- 127
All-Originator Registry and Originator Compensation remain intact but the Battle in Washington Continues!

Dear NAMB Member,
Success! YSP PRESERVED. Today, the U.S. House of Representatives passed the final version of H.R. 3915, the "Mortgage Reform and Anti-Predatory Lending Act of 2007″ on a vote of 291 to 127. This bill includes three important provisions that offer effective consumer protection without favoring any market competitor:
A National Registry of All Mortgage Originators - Mandating an all-originator national registry will be the most effective protection consumers will have against bad actors in this industry. Its all-inclusive national scope means mortgage originators, even those at banks and lenders, who break the law, cannot move from state to state or from one company to another without being detected.

Enhanced Professional Standards for All Mortgage Originators - The bill as passed puts in place criminal background checks, fingerprinting, education and pre-licensure testing for all mortgage originators regardless of where they work. However, loan officers and employees of federal-depository institutions only need to be part of the national registry system and do not need to comply with this bill's enhanced education and testing standards.

Preservation of Mortgage Originator Compensation and Consumer Financing of Points and Fees - The original bill called into question the legitimate payment of the Yield Spread Premium, as well as the consumer's option to finance points and fees into the loan (or obtain a no-cost loan). Working with House Financial Services Committee Chairman Rep. Barney Frank (D-MA) and Representative Gary Miller (R-CA), NAMB was able to obtain clarifications that preserves the ability of consumers to finance origination fees, points and other closing costs into the loan rate or amount, and preserves the ability of mortgage originators to receive payment in such cases.
These provisions not only represent major victories for NAMB and for every mortgage originator, they are also victories for the consumers we serve. We commend Rep. Barney Frank (D-MA), Chairman of the House Financial Services Committee, and Rep. Spencer Bachus (R-AL), the Ranking Member of the Committee, for their leadership.
However, there are some provisions in the bill which NAMB did not support. These are located in Title III. We believe these provisions will have a broad and negative impact on the availability and affordability of all credit, and its effects will be felt most harshly by those with imperfect credit histories, even current borrowers who may seek to obtain a mortgage loan to refinance their home and resolve payment issues.
Meanwhile, the debate rages on in Washington!
The debate in the U.S. House of Representatives is over. Now, the Senate is considering FHA reform, and a bill on mortgage reform is expected any day. Industry eagerly awaits the release of HUD's new Good Faith Estimate and other aspects of RESPA reform. The Federal Reserve Board is also expected to release new regulations addressing unfair and deceptive acts and practices.
We Need More of You.
Your efforts on our behalf in the U.S. House of Representatives made the difference. But this is only the first step of many in a long process toward mortgage reform. Many challenges lie before us. We need you to remain vigilant, respond quickly when the Call to Action comes, and protect our ability to earn a living. Make no mistake, many wish to outlaw indirect compensation. At all cost, we must preserve the ability to earn yield spread premium.
It is said that for every one NAMB member there are 9 others who benefit from our efforts for free. This is not fair to those of you who have stepped up, paid your fair share and taken the steps needed to ensure the viability of the mortgage broker profession. For our voices to be heard even louder as we face new challenges, we need those loan originators who are not members of NAMB and the state affiliate to join. We need you to urge non-members to join NAMB Now! Ask them to visit www.joinnamb.org today. The stakes have never been higher.
Thank you for your continued support. Together, we can win this fight.
Sincerely,
George Hanzimanolis
NAMB President, 2007-2008

HR 3915, IMPORTANT UPDATE! The House votes soon!

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Wed, 14 Nov 2007 10:10:58 -0600

Industry Professionals,

We have made tremendous strides and now we need to TAKE ACTION and FINISH STRONG against HR 3915, The Mortgage Reform and Anti-Predatory Lending Act of 2007. Below there is another CALL TO ACTION!

Due to the tremendous response of our Industry Professionals and the tireless work of groups like The National Association of Mortgage Brokers, our congressmen have made changes to language of two of the most damaging pieces of this legislation:

They have clarified the language regarding Yield Spread Premium, so now we will still be able to get compensated for our work.
They have preserved the right for homeowners to finance closing costs into a loan

These changes are key to turning this bill from one that hurts Industry Professionals into one that HELPS homeowners and potential homeowners! Great job to all for voicing their concerns!

WE ARE NOT DONE YET!

There is still one piece of this legislation that will have dire effects on our industry. Title III, which proposes changes to HOEPA that will adversely affect consumers' ability to obtain mortgage financing, must be amended or removed entirely. If left in its present language, this Title will lower Section 32 High Cost Triggers to a level that would encompass a large number of the Mortgage Products that we are using today! We all know that Section 32 loans are near impossible to close so we must once again voice our concerns about this Title!

Below there is a quick, easy CALL TO ACTION regarding Title III. The link will allow you to again contact your congressmen with a pre-written email in regards to Title III! I urge you to ACT NOW!

CLICK HERE TO TAKE ACTION AGAINST TITLE III

FINISH STRONG!

Your mortgage partner for life,

Rey "Steak Dinner" Gallegos
Senior Loan Officer

Five Star Mortgage

Email: rey@steak-dinner.com
4NevadaMortgageLoans.com

Your complete community mortgage broker
Proud member National Association of Mortgage Brokers

5 Things You Must Know Before You Get a Home Loan

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Fri, 09 Nov 2007 17:42:49 -0600

As I write this article, I am looking over my shoulder because some people in the Las Vegas, NV Mortgage Industry may take offense to it. Those are the unscrupulous Loan Officers that give our industry a bad name.

This is my top 5 list of things to know before you close on your next Las Vegas Home Loan.

Get a Good Faith Estimate(GFE). A GFE is your way of making the Lender put everything out on the table BEFORE you commit to them. More importantly it is required by law!
Ask if your loan has a Pre-Payment Penalty. This is a fee that it will cost you if you sell or refinance your home within a specified amount of time after you close on your house.
Understand your Loan Terms. Ask, one, ask twice, ask as many times as it takes for you to understand. If your Loan Officer gets frustrated with you, RUN! That is not the person that you want to work with!
No NEGATIVE AMORTIZATION! Be sure that your loan has no Negative Amortization option. This is not the loan for you!
Be careful of the Bait and Switch! This is an old slimy sales technique that somehow found its way to the Mortgage Industry. A Loan Officer will propose one type of Home Loan with favorable terms and rates knowing full well they can not deliver that loan. When the time to close on your loan comes they switch the terms and/or rates. At this point, you jeopardize your Earnest Money Deposit if you back out. Yuck!

Most importantly find an honest, reliable, experienced Loan Officer that is with a reputable Mortgage Broker so that you can avoid these common pitfalls.

More about FHA Loans | More About VA Loans | More About Zero Down Loans

Your mortgage partner for life,

Rey "Steak Dinner" Gallegos
Senior Loan Officer

Five Star Mortgage

Email: rey@steak-dinner.com
4NevadaMortgageLoans.com

Your complete community mortgage broker
Proud member National Association of Mortgage Brokers

Nevada LCB Releases Opinion on the Controversial Assembly Bill 440

Rey Gallegos Mortgage Loan Officer Las Vegas, NV (A Mortgage Bank) — Fri, 09 Nov 2007 15:38:05 -0600

The Nevada Legislative Council Bureau (LCB) had release findings about the much aligned Nevada Assembly Bill 440. As most of you know, this bill has changed the landscape of low doc, no doc, and stated income lending in Nevada. This bill could also trickle into or has already trickeled into HR 3915.

In my opinion, this letter clearly outlines that this bill was over reacted too by many. The Nevada assembly had the consumer in mind when they wrote this bill. It was meant to protect them from fraud in relation to low doc, no doc, and stated income loans. Unfortunately when some of the larger Mortgage Banks and their attorneys got a hold of it they over analyzed it to death and made it into something it WAS NOT! I guess you can't really blame them.

The LCB's opinion first focused on defining, "a commercially reasonable means or mechanism" in regards to a Nevada Mortgage Agents means to verify a borrowers income. Even going so far as citing three case law precedents about ambiguity in the language of law. They also state that "the Legislature should not provide a definition for a term or phrase used in a law if the term or phrase is intended to have its common or ordinary meaning."

The LCB then clarified that a body such as The Nevada Mortgage Lending Division WOULD have the authority to issue an opinion which could be used to clarify a law and in some cases assist in a legilative action. This in response to the MLD's AB 440 Opinion Letter 1 and AB 440 Opinion Letter 2.

They further went into clarification about effects on Secondary Market servicers, Government home loans and loans pending when the bill was enacted. View the LCB AB 440 opinion letter.

Your mortgage partner for life,

Rey "Steak Dinner" Gallegos
Senior Loan Officer

Five Star Mortgage

Email: rey@steak-dinner.com
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