Scott Geary's Blog

Planning-----Credit-Check-----Money-Check-----Income-Check

2008-09-03T11:50:12Z

With all the talk of how difficult it has been in the mortgage and real estate markets. I have to believe there are a large number of people who have postponed their plans to realize the American Dream of home ownership. Unfortunately, the media doesn't share all of the miracles that occur every day that allow people to move into new homes. Seems the media hasn't run headlines like, "Hundreds of Lehigh Valley Residents On the Move" with a sub-line that reads "Planning and Professionals Help Lead to Success." The article would start something like this, 'Although the news in the mortgage and real estate markets has not been overwhelmingly positive over the last several months, hundreds of Valley residents were on the move in August. These buyers are taking advantage of inventory that is working in their favor and interest rates that continue to be favorable. How are they doing it you may ask? Proper planning and assistance from Real Estate and Mortgage Professionals'......... One can only dream right?

Proper planning is unfortunately something that we have gotten away from over the last several years of what some call a Boom Market. I personally felt that the smoke emanating from that market was evidence of investor greed, along with an indication of influence akin to the Jamaican Bobsled team. But that's just my opinion. So here we are. Back to the point where buying a home is no longer an impulse purchase. Buying a home once again, as it always should have, takes planning. For some, that plan can be short term. For others, the plan may take a little bit longer. But anyone willing to put a plan in place can position themselves to own a home. Here are a few items to consider when formulating your plan:

Credit - Used to be you paid your bills on time, and your credit was great. No questions asked. Enter the credit score. Your credit score has an enormous impact on what programs are available to you as well as the rates and fees you will pay for those programs. Ideally, your score is higher than a 720 which allows you access to virtually every loan program in the market, at the best prices. However, it's not the end of the opportunity if its not. Consulting a mortgage professional as you begin your plan will provide you with information as to exactly how to increase your credit score over a period of time. Depending on how naughty, or nice you've been with your creditors in the past, that time frame will vary. Any mortgage consultant, who genuinely cares about people will be able to help. Be aware that there are still people in the mortgage business that want instant gratification rather than help you with your plan. Stay away from those folks!

Money - Yes Ladies and Gentlemen, it takes money to buy a home. It really always has. There are several programs that allow for smaller down payments and greater seller assisted closing costs. But in truth, being a home owner takes money. A plan that involves saving money is effective. Liquidating various cash and personal assets is also an option. Funds received from family members can also enter the mix. Due to requirements of sourcing and seasoning of funds as well as reserve requirements and gift allowances for some programs, it's best to get a mortgage professional on your side as soon as you elect to begin planning to purchase your home. No matter how short term or long term your plan maybe. A mortgage professional can help guide you in the proper direction regarding properly maneuvering your assets throughout your plan period.

Income- Stabilty of employment and consistency of income must also figure into your plan. Although 'stated income' loans are still available to self employed borrowers in the mortgage industry. The requirements and costs to obtain that credit can be somewhat difficult and cost prohibitive. It's expected that this product becomes totally unavailable in the not too distant future. 2 years of employment, with steady increases in income are of course optimal. However, requirements vary as to the source of income such as salary, hourly wage, overtime, commission, bonuses, etc. Calculations of the qualifying income vary. Again, it's best to get together with a trusted mortgage professional as you begin your plan to determine what exactly your qualifying income will be. As well as what your options are as to any potential promotions and or job changes you may be contemplating.

No matter how qualified, or for that matter, unqualified you feel you may be to own a home. Reaching out to a trusted mortgage professional is likely the best start to positioning yourself to make the move toward the American Dream. A strong plan, and commitment to that plan will absolutely get you where you want to go. In some cases, right away. In others sooner or later. The phrase goes "good things come to those who wait." In the case of buying a home, the phrase goes, "Good things come to those who plan!"

My name is Scott Geary, a Pennsylvania Mortgage Broker. I want to help you get your plan in place to realize the benefits of home ownership. Let's buy a home!

Your Pennsylvania Mortgage Professional. Why you ask?

2008-08-20T11:47:49Z

I truely love what I do for a living because:

It affords me the opportunity to meet some of the most interesting people known to man.
There is something new to learn each and every day. All you have to do is pay attention!
I get a RUSH from being able to help someone get a mortgage they felt they might not be able to get.
There is no time card to punch, no mandatory work schedule, no pressure from anyone but me.
The variety of what I do is endless. Of course variety is the spice of life.
Of relationships I have established over 30 years that go beyond business ties.
The opportunity to educate people who don't work with mortgages every day. I am the expert in this area!
My family has been extended just through the great people I get to work with every day. They are happy, I'm happy. They hurt, I hurt.
Associates, Consumers, Referral Sources and Vendors can all benefit from all the experience I have acquired over 3 decades in this business.
It's the only thing I really KNOW how to do with any sense of expertise. That's moral, legal and ethical anyway!
Everyone needs to be passionate about something. I'm passionate about doing mortgages.
I am approaching my 3rd generation of clientele. In a few more years, I'll be helping the parents children's children.
Some times the ineptitude you can witness in certain segments is entertaining and humorous.
Attending the closing of a newly purchased home is glorious. I won't miss that fun for anything!
I take great pride in knowing that each and every day, my purpose here on earth is to help some lucky client get the best mortgage loan they possibly can, at the best terms available, with all the facts to ensure they've made the right decision.

My name is Scott Geary. I've been in the mortgage business over 30 years. Everyday, I push to be the best Mortgage Professional I can possibly be. In Pennsylvania, I want to be your Mortgage Professional for life!!!

Credit Scores, Politics and Comedian's

2008-08-18T12:13:30Z

Really it's all perception...

This Sunday Morning I absorbed an article in the Real Estate section of our local paper that described more fun and excitement coming our way from our friends and Fannie and Freddie relative to 'risked based' pricing adjustments. I find that as I continue on this journey of life, my sense of humor seems to gain cynicism with nearly each passing day. Seems the mortgage oracle's know as Fannie and Freddie have finally figured our who is entitled to the best possible mortgage prices and who is not. Thankfully, they have this wonderful resource know as the Credit Score to draw these conclusions from. Our scores will now be the be all and end all to the pricing of our mortgage loans as well as the fee's we will or will not pay. Hallelujah! The mortgage industry is saved!!! Past errors can now be totally eliminated by simple adjustments to pricing based on a concise, totally accurate and non-questionable gage know as the Credit Score. Happy days are here again...... (Ya gotta love Joe Franklin! He always had such talent on his shows!)

Or are they? It wasn't too long ago that Credit Score's were a guide to lending money of any type. Mortgages, personal loans, credit cards, card loans were all granted using credit scores as a tool by which to make a credit decision. In fact, as recently as 20 years or less, while scores were available, declining an applicant based solely on scores may have been a violation of the ECOA. The spin doctors had to find another reason to decline an applicant, should they choose to do so. And they did! I was one of them.

So here we are in 2008. There is no such thing as a local credit bureau. No place where an individual can get in their car and go to handle issues relative to their credit file with a service representative face to face. Tending to your credit file can be an absolute nightmare! Just try to get a representative from Equifax on the phone. I dare you. Though it can be a struggle, tending to and managing your file is essential these days since your credit score impacts so many portions of your life. Credit Scores aren't just for obtaining credit anymore either. Your 'score' may impact your car and homeowners insurance. Gazing into a crystal ball, one can see your 'score' impacting security deposits for basic utilities, perhaps even your health insurance. Can the price of fuel, health care and daily staples be far behind? Perhaps seating at concerts and sporting events will be organized by 'score' sections. 760 and above here, 720 and above here, etc. If your scores lower than a 680, you might want to bring your binoculars because your seats are going to be the worst in the house.

So let me get this straight. A third party gathers information and makes it available, for a fee, to lenders, insurance companies, etc. This 3rd party establishes a means by which to quantify all the data reported translating that into a 'Credit Score'. The formula for this score is hidden somewhere in a 'mayonnaise jar under Funken-Wagnels porch', unseen and not published for public consumption. In fact, few if any people legitimately understand the formula. Explanations for the scores are always peppered with words like, usually, generally, should, may etc. Should data be inaccurate, it is the responsibility of the person about whom the information is gathered to dispute and / or correct the data with the appropriate credit bureau. In the mean time, the inaccurate information may be preventing that person from receiving the best possible rates, terms and prices. In other words, costing them money. Whats wrong with this picture??? I'll tell you whats wrong! Credit Bureau's were a tool, simply companies providing information that cpmpleted a piece of the lending process. They provided only 1 of the 4 C's traditionally used in determining credit worthiness. The other c's, character, capacity, and collateral don't seem to matter as much as they used to. How many times have you heard, "If LP or DU accepts the application, your good to go." I've heard it way too much. Yet nobody can explain to me how these engines measure character and collateral. Heck, capacity for that matters doesn't seem to matter either. I've seen loans closed in the last year with debt ratios of over 55%. That's against gross income! Leaves an applicant 15% of their net to live on. These examples alone exemplify what Credit Scores are actually doing. They are driving our business, pure and simple. What was a tool, is now King. That's sad.

The shame of it is, I have no real solution to offer for this problem. I fear the situation may be too far gone. Many times in social conversations I tell folks that I feel incredibly lucky to have been born when I was. I got to see the best rock and roll acts in the history of our country come alive, develop and in some cases cease to be. The 60's and 70's gave birth to music that has had remarkable staying power. Just as lucky as I feel about being front and center to the birth and development of music. I feel the exact opposite about being front and center to the development of the industry of credit reporting. The major agencies are appearing to be larger than life. The service they provide those who's very lives they are impacting is mediocre to say the least. Contact with them is mostly difficult, if not impossible. Yet, it seems the the Oracle's have absolutely no problem reaching out and interacting with them.

A few notes - 1) The only comedy here is Dana Carveys stand up which involves the Regan Oracle, hence the politics's reference in the title. Sorry for the bait! 2) I would love to meet the guy or gal who sold the Credit Score idea to the bureaus. Now that person has got to be better than Zig Zigler any day! Or, maybe it was the Zigmiester himself.....

Slump in housing forcing yet more borrowers to default on mortgages.........

2008-08-14T13:26:58Z

In my youth, my friends and I had some imaginary character's that we referred to within our circle of friends. 'Wheels' Foonman, the race car driver for one, Jacques Tutight, the Olympic ski racer, was another. There were many others that just don't come to mind right now. My favorite of all time, and still used in my conversations to this day, Doc Chicanery. Yep, the Doc was a 'wild and crazy guy'! Always able to tilt facts and stories to lead folks to exactly the conclusions he desired. So, your taking care of the neighbors cats while their off to see the rain on the plains found mainly in Spain. Well, Doc Chicanery will give you 25 different things or more that a group of early teen boys can do with the home as well as things found in it. 'Strange Brew'was evident in the west end of Allentown long before it was on the movie screen courtesy of the McKeenzie Bros.

"NEW YORK - U.S. foreclosure activity in July rose 55 percent from a year earlier as a slump in once-sizzling housing markets forced yet more borrowers to default on their mortgages, according to a monthly report." Ladies and gentlemen, I believe Doc Chicanery is alive and well, living within several media outlets across this great nation of ours. I fail to see how a slump in the housing market FORCES yet more borrowers to default on their mortgage. Yet, read the article in this mornings news paper and you might be convinced that folks just can't afford to make their mortgage payments because their homes aren't worth as much as they were a year ago. Ah, that Chicanery fellow is one cagey individual. Bla, Bla, Bla the article continues with statistic after statistic listing 10 of the worst states for this foreclosure activity. Some the usual suspects, some surprises. Yet no good news anywhere in the article. Darn that slump in the housing market! How can people be expected to make payments on their homes with a slumping market. Oh, I missed a piece of encouraging news in this article, But default notices declined 4 percent from June. Well thanks Doc, at least Arnold's state is doin something right! No body else though.....

I feel better today, a ton better, knowing that the increase in foreclosure activity has nothing to do with things as they are in our country. The insane costs of fuel and health care. Escalating unemployment rates. Companies closing in the US and setting up shop somewhere else in the world. The working poor. Property taxes that are out of control. Rising costs of education. Thankfully, it's just the slumping market. Whew! Just keep on swinging market!!! That's how I've always dug out of my slumps! Isn't Doc Chicanery a great guy!

One Tough Cookie!

2008-06-06T10:31:29Z

For the last 50 years I have had the privilege of knowing one of the hardest working, caring and honest woman the world has ever known. She has been employed by Wachovia Bank, which was First Union, which was CoreStates, which was Meridian, which was 1st National Bank of Allentown for the last 37 years. She has not had a sick day in the last 30+ years. She attributes that to only getting sick on holidays and weekends. But I know better. Shy of loss of limb, or debilitating gunshot or stab wound, she shows up. She believes her customers / friends need her to be there. She's been in the branch she's in longer than the buildings been standing. Many her of customers would be long gone from that bank had she not continued her employment there. She is 70, and has no plans to retire. She's proud to be a banker, and happy with the relationships she's established. Outside of her family, the bank is her life.

On Tuesday, after seeing a specialist for some serious discomfort, fatigue, nausea and stomach problems she'd been having, she was admitted to the Lehigh Valley Hospital post haste. This woman has always avoided doctors much like the plague. Her entire life, she believed that nothing good comes out of visits to the doctor's office. Things have always just taken care of themselves. But this illness, discomfort and fatigue had lasted way too long. As long as 3 years to the best of our recollection. But the last 6 months have been unbearable, even for this pillar of strength. It was determined that sometime in the past, her appendix burst! I am relatively certain this happened over Thanksgiving this past year. It had always been my belief that should this happen and medical assistance was not immediately given, death was just around the corner. Not for this exceptional woman. Oh no! She dealt with what must have been excruciating pain, fluctuating body temperatures, and total loss of appetite. Never missed a day of work through the entire ordeal. This week was her vacation week! What a coincidence! This is truly a great demonstration of human perseverance, will, strength and determination. A great demonstration on stubbornness as well!

Although she's not out of the woods yet, last night her condition was much improved. The doctors have drained much of the toxins from her abdomen and continue to do so. She remains on IV and anti-biotics. However she began eating yesterday for the first time since Sunday. She continues to hope that she'll be out by the end of the weekend so she can get to work on Monday. That simply is not going to happen. After a nerve-wracking week, I just had to tell her, "Thanks Mom for teaching me yet another couple lessons in life." "What lesson is that?" she asked. "First, most importantly, how much you mean to the family. Second, don't think medical issues will just resolve themselves. Get the check ups, address problems quickly and don't avoid doctors." Next week I'll be scheduling that dreaded over 50 exam. Drat!

Easy Free Money

2008-05-21T15:54:51Z

When I was young boy in school, I always got a charge out of watching the popular day time game show Lets Make a Deal. Of course the only time I got to watch it was when I was taken ill or had a day off for some school district holiday, or teachers in service days. Early on I was taken by the frenzy and demonstrations of greed that this particular show brought out in people. The end of the show was probably as entertaining as the any other part of the show. "I'll give you $100.00 if you have a bottle cap in your purse, $100.00 for a bottle cap! But you have to act fast! Oh, you don't have a bottle cap? But you sir, you do have a bottle cap. Well that deal wasn't for you. I'll give you $100.00 for a bobby pin, $100.00 for a bobby pin......." You could witness people in an absolute frenzy, crawling over each other, trying to get the hosts attention to make a deal for having some object that they would receive a cash reward for. Even as a youth, this just seemed insane to me. To this day it still does. Don't these folks work? Seems they have little idea of what the prize really is. Easy, free money has always and will always make folks do crazy things.

Back some 20 years ago I went on a trip with a company I worked for to Las Vegas for 3 days of R&R. I had never been there, so people watching were more entertaining than gambling. Also, it was early in my kid's years, so money was reserved for the family. I took $300.00 to blow and came home with $1000.00 in winnings. Beginning a career as a professional gambler actually entered my mind. $1000.00 over 3 days, hmmm that's $333.33 per day; over 300 days (pro gamblers need time off too you know) that's $100 k! Worth considering because this gambling thing is a blast! When I get back there again I'll make that decision after that visit. At the breakfast buffet on the last day of the visit a man and woman were obviously euphoric over their first visit to Las Vegas. The story went that they arrived 2 days earlier than the trip allowed for, gladly paying extra for the added R&R. Each morning they were there, they would head down the elevator of the hotel to the main lobby. The Mrs. would take off for shopping at the malls attached to the hotel. Meanwhile, Mr. would take his place at the nickel slot machine and kill hours of time awaiting the return of his betrothed. Same machine, same chair, same time, each of the first 4 days they were there. On the morning of the 5th day, the couple repeated the routine they established since their arrival. This morning, there was a player at the machine the man used each of the days before. He politely explained his dilemma to the man playing what he felt was his machine. Asking that he please move to the next machine, he received a less than cordial response. It was short...... It was sweet..... It was foul..... So, Mr. Routine Player sits in the chair he'd had request the gentleman to move to. Inserts his 1st nickel. JACKPOT!!!! Mr. RP hits for nearly $200,000.00!!!! If only that gentleman had been a tad flexible he'd be the one doing the dance of joy. I'd have moved. It's a nickel slot for cryin out loud!!! He no doubt believed that he would take advantage of Mr. RP's daily play on that machine. WRONGO! Oh yeah, as for my professional gambling career. It came to an abrupt end during a visit over 2 years later. Let's just say I lost the $1300.00 I took back to 'reinvest', then some. Haven't gambled since! The allure of easy, free money has always and will always make folks do crazy things. Even me!

The real 'prize' if you will has never been money. Sure, nothings free in this world yet an unexpected windfall is kinda nice. But in my minds eye, the real 'prize' rests at the feet of health, family, friends and the ability to help others enjoy and improve upon their own lives. It takes little effort to be kind, courteous, understanding, empathetic and compassionate. Yet, in the world we live in, more people than not are entirely consumed with chasing a free buck. Oblivious to other people they pass during that frenzied chase. I have coached many, many sales people over the years. Surely we established an income number that they will work to in order to comfortably live. After that is done, it is seldom revisited. The focus immedialty turns to the knowledge, service, sales skills and the traits that make you, you. Being kind, courteous, understanding, empathetic and compassionate. The facts are, you do the right thing and be the best person you can be each and every day and you'll get the 'prize'. Along with a ton of residual benefits, money being only one of them. You'll add to your list of friends. You'll help another person in need. You'll set a good example to those around you. You'll make your parents proud. You'll have a great attitude about life in general. You Great Spirit will be infectious to others day to day. That list of residual benefits is virtually endless! Oh yeah, did I mention your making money while reaping all these other rewards. Life is good!!!

My name is Scott Geary, a mortgage broker serving the Greater Lehigh Valley and all of Pennsylvania.

My Mom Rocks!

2008-05-09T10:32:34Z

Sunday marks yet another celebration of terrific Mothers everywhere! Often times, my mother reminds me of the fact that she indeed brought me into this world. For that single issue alone I am forever grateful. My father on the other hand often reminded me of his part in me being here, bringing me into this world, along with the fact that he could take me out just as easily. He always had the ability to bring sunshine and clouds all at the same time. But my Mom, she was, is and always will be the glue that holds everything together. Her strength, commitment and support has been a motivating force as well as an inspiration in my life. Heck, I'd go so far as to say my Mom is my hero. Or simply, my Mom rocks!

50 years ago my Mom gave birth to a 9+ pound baby boy. Although I am sure I was the apple of her eye, I was born with a clef palate. In 1958 this was, and likely still is, a very delicate medical birth defect. Surgery was completed shortly after my birth. Often times Mom spoke of how terrible she felt, watching her young son go through the trials and tribulations of the operation. She was with me through the whole ordeal. In the 50's it was likely that Dad was the wage earner, while Mom took care of the house and family. So it was in my house. From birth through 5th grade, Mom was always there. Diner was at 5:00. Being late was simply not tolerated. Nor would I ever disrespect Mom by being so. While I was in 6th grade, Mom decided it was time that she contributed to the household budget. She took a job as a teller with 1st National Bank of Allentown in 1971. The bank has changed from 1st National, to Meridian, to Corestates, to First Union, to Wachovia over those 37 years. At 70, Mom still shows up to the same bank she's been at all these years. She's offended by those who question why she still works. After all, retiring would mean that she wouldn't get to see many of the banks customers she calls friends. I guess 37 years of friendships keeps her going. She loves her job, but really loves the people more. Now that's commitment!

1983 was a year of highs and lows for the entire family. Especially for Mom. In March of that year, at 46, my father suffered a massive heart attack at the kitchen table over morning coffee and the news paper. He died on the spot. We were all devastated. My mother lost her best friend since high school and her partner in life. I did my best to be strong for her. Yet in retrospect, she was much stronger than I. Even though I was 24, Mom handled everything. Not because I couldn't. Just because she wouldn't let me. Unfortunately, Dad was really my best friend too. He listened without judging, he offered advise, only when asked for it and he covered for me so as not to get on trouble with Mom. He was tough, intelligent, funny. Just a great guy. We all hurt badly. I am sure Mom hurt worse. Yet hardly did she ever let on. Now that's strength!

On Halloween, October 31st of 1983, my daughter was born. Mom lived in Allentown, while my wife and I lived in Kingston PA, about an hour up the turnpike. An hour after Shannon arrived, my Mom arrived to see her 1st granddaughter. I always thought that Shannon was a gift from god to help my Mom redirect her attention from my Dad to a new bundle of joy. Mom didn't want to be Grandmother or Gramma, Nana would do just fine. She took all of her vacation and stayed with her family for the next 3 weeks. Smiling the entire time, and running to take care of every need of her new grand kid. A year later, in October of 1984, Mom pulled a repeat performance when our son Alexander arrived. For 25 years, Mom has spent a good portion of her time and energy being an active, yet unimposing part of her grandchild's lives. Now that's support!

Our family is not, nor have we ever been, the most affectionate family on this earth. To this day, hugs look uncomfortable and goofy. Kisses on the cheek rarely if ever happen. 'I love yous' are exchanged infrequently, probably not enough. That's just the way things have been, are, and likely will be. On Sunday, for one day, that's going to change. My Mom's getting tons of hugs and kisses, with a heavy dose of 'I love yous' thrown in for good measure. Because my Mom is an exceptional woman. Because my Mom is my hero. Because my Mom is the best! Because my Mom rocks!

Happy Mothers Day to every Mom everywhere! Enjoy your day to the fullest!

Escape to the Golf Course! Opportunities Abound in the Lehigh Valley!

2008-05-07T15:15:12Z

Ladies and Gentlemen, Boys and Girls, Children of all ages. The hour is upon us. Ti's the season, SPRING! When a young mans fancy turns to....(opps! wrong blog!) When those of us addicted to chasing the 'little white pill' head out to the course of our choice and spend somewhere around 4 hours or so in the great out doors trying to beat the daylights out of our best score ever, our playing partners in a 4 some, the course we're playing, or perhaps the club that caused our last bad shot. For most players, avid or otherwise, everything in our lives appears to disappear while we burn off that period of time used to pursue the objective of the day. Objectives of course vary with the level of experience and expertise of the golfer striking the ball.

We in the Lehigh Valley and surrounding areas are blessed with an astounding number of public and private Golf Courses available for play. Not three miles from my office is the old tried and true ( http://www.allentowngolf.org/) Allentown Municipal Golf Course. Why tried and true? Well, the course will always be special to me as it was the first course I ever played in my youth. Every summer my friends and I would walk, bags in tow, from our homes some 4 to 5 miles to the course at the age of about 12 or so. Put our $4.00 down, grab a half and half (ice tea and lemonade) and do 18+ holes until dusk, then walk home. We did this nearly every week, at least once, maybe two or three times, for 4 years until the first of us got our licence to drive. Then it was look out Lehigh Valley Courses, here we come!

http://www.ironlakescountryclub.com/rates.htmlWas the next course we attacked. Of course at the time it was known as Twin Lakes. Several of my friends worked as bus boys for the restaurant that was there. So the convenience of playing it was terrific. An unusual feature of the course was that there were no yardage markers. Legend had it that the owner would invite his friends to the course to play for money and didn't want them to have the advantage of knowing as much as he did about the course. Today, as Iron Lakes, yardage is marked, the staff is pleasant, and the course can be a great starter course or a terrific ego booster for an avid golfer.

http://www.centervalleyclubgolf.com/Can be reached by traveling Rt 309 where 309 meets 78. Some 18 years ago I had the opportunity to walk this course during the stages of its construction. A friend of mine was on the construction crew for the course and took me to see what they were doing a few times. The result of that construction was amazing to observe when the course began play. The 1st nine holes are links style, while the back nine is traditional. I have always found scoring on this course to be difficult. However, I did enjoy my lowest nine holes of all time on the front nine in 2001, a 33. Don't ask how I did on the back. ERRR...

The list of golf courses in the Valley seems endless! Locust Valley, Shepard Hills, Willow Brook, Wedge Wood, Butter Valley, Fox Hollow, Bethlehem Municipal, Green Pond, Morgan Hills, Berkliegh, Golden Oaks, Old Homestead, White Tail, Arrowhead, Upper Perk, Indian Creek, Southmore, Sawmill.........Good Lord we got a lotta golf courses!!! This is easier http://www.lehighvalleygolfer.com/Courses/Courselist.asp?areaID=5 Yet it continues to take 5+ hours on many public courses!?!*#(*!)*! If your lucky, your a member , or know a member of a private club, Saucon or Lehigh for those with pockets deeper than most. Brookside for those who have the mid-range pockets. Or Blue Ridge for those with the shorties. A walking round at virtually every private course is generally just slightly over 4 hours 15 minutes.

If your a local golfing enthusiast, get out to these courses early and often. Before you know it, October will be here and the season will be shot. I can't tell you how many times I have said and heard, "I just didn't get out this year." Not in 08, no, no, not me! Saturday I'll play round #15 for the year. Who nows how many I'll close with? Dang that little white pill!!!!!!

My name is Scott Geary, a Mortgage Broker serving Allentown, Bethlehem and Easton & all of Pennsylvania!

The Tornado Known as Mortgage Lending

2008-05-02T09:11:53Z

What's the catch today? Which programs are discontinued? What new 'pet peeve' will mortgage lenders come up with today? What hoops will mortgage applicants have to jump through now? Much like my roommate in college starting his studies for his accounting degree. If you're not paying close attention each and every step of the way, in the not too distant future you'll be lost. These days, being an effective mortgage originator is more challenging than I can ever remember. For years, I have used catch phrases like, knowledge is power, and the beauty of this business is you learn something new every day. These aren't just chase phrases any more. NEVER have those phrases been truer.

Some of the stipulations I have seen over the last several months are from left field, if not beyond the left field wall. Written explanations regarding the plethora of information provided by vendors of credit information are perhaps the most challenging. Mr. & Mrs. Customer please explain some of these items: In 2001 you have an account with a gas company that lists an authorized user. Please explain why you allowed the user, who the user was and what the user used the card for. Oh, you don't recall. Not good enough!!You had better make something up, or your loan can't close. RIDICULOUS for sure. But factual nonetheless. This account had a zero balance, and was closed since 2003. Our customer honestly did not recall the account, or any circumstances surrounding it. That explanation wasn't good enough. So, leveraged by the lender, we made something up.

PATHETIC to say the least.

Common sense has left the building! Another applicant provides an example. The applicant has credit scores in excess of 750. Has been at the same residence for 30 years. Cash reserves in investment accounts in excess of $100,000.00. With a proposed loan to value of 75%. An address appeared on the credit bureau of 515 Main St., which was different from the subject address of 115 Main St. This address was reported 2 years ago. Get out your pen Mr. Customer; it's time for an explanation letter! But Mr. Customer has no idea as to why this information was on there. So that's what he writes. Not good enough!You had better make something up or your loan can't close. RIDICULOUS for sure. But factual nonetheless. It seemed obvious to me that a creditor making an inquiry simply keystroked the wrong address. Our customer really had no idea of how that would have happened. That explanation wasn't good enough. So, leveraged by the lender, we made something up.

PATHETIC to say the least.

Appraisals are no longer any good unless you go back to the appraiser at least 3 or 4 times for additional information. Even then, a review appraiser who lives thousands of miles from the subject may arbitrarily reduce the value of the property because of a home that sold right down the street for a considerably lower amount. It doesn't matter that the property was in poor condition, sold after a foreclosure and was addressed in the original appraisal report. The cut is made and the loan is now not possible. But wait! The lenders retail channel is now soliciting our client. We know this because he is asking us to assign his appraisal to the same lender we used. I guess an appraisal that is not good in wholesale, can cut mustard in retail. Who'd of thunk it? Mr. Customer got his loan after all. No matter that we did all the legwork and received zilch in the way of compensation. He's happy! Good for Mr. Customer, not so good for us.

PATHETIC to say the least.

So, the mortgage industry continues to evolve at a wild, wild pace. A day is coming in the not to distant future when an applicant with good credit, strong assets, reasonable Loan to Values and sound stability will be able to procure home financing without having to supply an urine sample or pledge their first born to their lender of choice. Until then, we'll keep our eyes pealed for the new hoops we have to jump through to arrange financing for people who actually, straight up, qualify. Now there's a novel concept! It seems like the industry has done a 180 in requirements for mortgage loans. There was a time not too long ago that I was stunned at some of the folks who could buy a home (weak credit, no money, payment shock, etc.). Now the industry has decided that to correct that wrong, we'll have to be extreme in our requirement. Somewhere there is a middle road, where the basics of granting credit have always been. CREDIT, CHARACTER, CAPACITY & COLLATERAL. I'm not sure of how long it will take anymore, but I am certain that we will eventually get back to the basics that have been in place since the granting of credit began.

My name is Scott Geary, a mortgage broker serving the Lehigh Valley as well as the great Commonwealth of Pennsylvania

38, 83, Sometimes It's All the Same

2008-04-23T16:19:29Z

Saturday evening my significant other invited me to the annual Mack Ski Club award banquet held at Sheppard Hills Golf Club in lovely Allentown Pennsylvania. She has been marginally active in this NASTAR ski club, while mostly running races for the Wilmington Ski Club an ASRA ski club. I'm not sure of the difference, but I have attended various functions with both. They are all really great people, both groups are equally fanatical about the sport of ski racing. It was a terrific evening filled with interesting people, good food and, 'free beer'. Who could possibly ask for more! While my better half and I mingled during the happy hour preceding diner, I was introduced to one of the most interesting woman I have ever met. We chatted for over 45 minuets. I do believe my life may never be the same again. In fact, when I grow up I want to be just like her. Inspiring!

Patricia an avid ski racer. After speaking with her for a few moments about starting her skiing activities as a 45 year old mother of 4 boys who by then were in their early 20's I committed the single largest sin known to man. I don't know why, but this lady looked my Moms age. 70ish, so it just seemed OK err...Awkwardly, I present the question no man should ever ask a woman. "I hope I am not out of line Patricia, and if you'd prefer not to tell me, I will certainly understand....But, how old are you?" There. I asked it. How in the world could I have done such a thing?!?!? With a big smile, and a proud tone to her voice, she answered. This year she celebrated her 83rd birthday. Patricia is 83 years young....Still ski racing after 38 years, AND lovin it!!! She told stories over the time I spoke with her about varied parts of her life. Some in the past, some in the present and some in the future. The stories included success and failure, life and death, shushing and falling. Patricia was articulate, wise, swift of wit, and intelligent for some on who's 38, let alone 83. She spoke of enjoying life to the fullest. Reaching 40 ski races next year vs. the 23 she took part in this year. Making the most of the relationships you have with family and friends. How her grand children are jealous of her appearing in certain ski magazines. She was proud of being a skiing champion in her division. Yet rational enough to note that as she gets older, the competition 'thins out' somewhat. The time I spent talking to her was priceless. I was just flat out impressed, not just by her skiing, but by everything she relayed in a short 45 minuet conversation that has taken her through the last 83 years.

Those who know me, or have read my other blog attempts, know that I am somewhat reserved when it comes to compliments and adulation for coworkers (JUST ASK EM!), family and friends. Probably a HUGE character flaw. I do try hard to work on that. When our conversation ended as we were instructed to take our seats, I felt it necessary to tell Patricia how I felt about her achievements and our conversation. "God bless you" I said. "I hope you reach those 40 races next year Patricia. You deserve it! I have to tell you that I am so glad my wife brought me here tonight because had she not, I'd have never met you. Meeting you tonight has made my weekend. Your terrific!" I shook her hand and she smiled at me. She might have even blushed a bit. "Thank you so much Scott, it was great meeting you too." In somewhat of a Columbo move, she took a step or two away, turned back and said "Scott, I'll hit those 40 races next year!"

When I grow up, I want to be just like her!

My name is Scott Geary, a mortgage broker serving the Lehigh Valley and Commonwealth of Pennsylvania

What Exactly Is 'Within My Means'?

2008-04-09T16:31:17Z

Affordable housing doesn't mean zero initial investment anymore. Not that it ever should have. Way back in the days of 'plenty' only a short year and a half or so, politicians, press, and even John Q Public, American raved about the opportunities for many Americans to get a piece of the American Dream which was afforded by the creative loans offered by non-traditional mortgage companies. OK, maybe not John Q., but most Americans to be sure. Not everyone had money to put down on a home. It will take too long to save, so let's get it now. These companies, as well as traditional sources, Fannie and Freddie offered the means by which any below 'average Joe' could become a home owner. 100%+ financing, 3 to 6% sellers assist, and PRESTO, your a home owner! Congratulations, and welcome to the club of Americans living the dream. If only for a short time anyway. Seems everyone forgot the rule that your mother and father taught, as was taught to them by your grand mother and grand father, and was taught to them by your great grand parents. It's what drove us as teens and young adults. 'LIVE WITHIN YOUR MEANS'. Somehow, we forgot to do that somewhere along the way.

What exactly is 'My Means'anyway. Simply put, it's what a person can afford. Not what they qualify for necessarily, what they feel comfortable obligating themselves to in a monthly payment for the next 360 months. When I bought my first house, 'My Means' dictated I needed a monthly payment of no more than 500.00. I did not take into account future promotions and pay increases, as they were not yet part of 'My Means'. My wife and I knew that based on the here and now, without any sacrifices to our life style or children's life style, the 500.00 number was something that we could afford each month. That was 15% of our monthly income. Anything more just didn't cut it for us. Low and behold, our Realtor and Loan Officer qualified us for up to 1200.00 in monthly payment. We were even shown a few homes that were in that price range. Nice, for sure. But when all was said and done, we huffed some smelling salts and returned to the 500.00. Why? Because that was within our 'Means'. It was the right thing to do for our family. After all, it was a starter home. We were relocated often by my company. At the time I had a bright future with an International Corporation. We'll get that big house one day. Yet then we we're free. We would get that big house. But not yet....not yet. This happened 23 years ago. Back when my daughter was but an infant, my son a glimmer in my eye.

Not much has changed regarding ones 'Means'since that time. Unfortunately, seems as though some folks have a little difficulty determining for themselves what exactly their 'Means' are. So they rely on a trusted associate, lets say a mortgage broker or banker, or their financial planner to tell them what they can afford, what their 'Means'are. I have never understood that. Seems to me that everyone, no matter their level of financial acumen or intelligence, knows exactly what it means to live within your 'Means'. If 25% of your income is comfortable, then that's your 'Means'. If 35% of your income is comfortable, then that's your 'Means'. Your 'Means'is not stretching to afford your dream home. Banking on promotions, salary increases, investment windfalls, or lottery winnings should never be part of your 'Means'. The here and nowis what you must consider. Tomorrow is guaranteed to none of us. In fact those of us who have been in this business for a while can verify that bad things do happen to good people. That's why is important to know your 'Means', and live within them.

Thats why one of the first questions I ask a mortgage applicant is, "What kind of monthly mortgage payment are you comfortable with?" Almost everyone is actually familiar with whats within their 'Means'. Sometimes they just need a second opinion to confirm what they already know.

My name is Scott Geary, a professional mortgage broker serving The Lehigh Valley as well as the Commonwealth of Pennsylvania.

That's Right I Said Obama

2008-04-02T09:56:12Z

I am aware that from a PC perspective this might be a some sort of improper. But, as an American, I feel compelled to share my experience and translation of same with as many people as possible.

Monday night the love of my life and I had the opportunity to hear Barack Obama speak at a town hall style presentation at lovely Muhlenberg College in the beautiful city of Allentown Pennsylvania. Senator Obama was scheduled to begin at 5:50, so we arrived in the cold and rainy weather at 5:00. There was a mob of people waiting from the front door into the street in the less than ideal weather conditions, most carrying umbrellas. We were directed to another entrance and thankfully avoided the hoards of folks out front waiting their turn to enter. As instructed, we left our umbrella outside, with hundreds of others already laying there. We passed through the metal detectors and the 'electro frisking' rather quickly, seated at 5:20. Only 1/2 an hour to wait, not too bad. The wait was tolerable, even though Mr. Obama didn't arrive and begin until 6:20. I must say, the hour went fairly well. Except for this older gentleman right behind my right ear. Without cause, he would shriek at the top of his lungs, "OBAMA, OBAMA" and "WE WANT CHANGE, WE WANT CHANGE". Nothing was happening, not another person was joining his chant yet he persisted. After each mini-chant he coughed. Not just a normal cough mind you. A deep, flemmy yack that made me nauseous and uncomfortable. I could almost feel the germs covering me. Was he covering his mouth. I simply had to know. Some how, some way, I had to look when he gagged next. But how??? I managed a quick peek, and he had covered. I felt better and resumed the wait. I admired the guys commitment and adulation of his candidate of choice. After all, he too is an American!

I have been a registered Republican since I was 18 years old. In the Presidential Elections I have participated in, I have always voted for the Republican candidate. Until last election that is. Last election I would have voted for Magilla Gorilla, Wally Gator or Astro Boy rather than go through the next four years with the current occupant of the White House. America spoke, and so we began nearly 4 years ago eagerly awaiting our next leader. Yeah, Yeah, I know Ralph ran and I could have voted for him.....

My girl though, she's as devote a Democrat as you'll meet any where. Should any of the afore mentioned animated charecters run in the general election, she would vote for them as long as they were THE Democratic candidate. What I love most about her is her unbridled enthusiasm, loyalty and commitment to any cause that she deems important. The Democratic party qualifies as such. Upon entry, she's a Hillary supporter. Not sure about Obama and what exactly his platform is. Yet she's an American interested in listening to what he has to say. I of course am an equally interested American not only in what he has to say. But the quality of delivery, the tone and the posture.

As the Illinois Senator began, he peppered his presentation with tidbits of humor from his travels in Pennsylvania. He played basketball and Penn State main campus on Sunday, Bowled somewhere in Pennsylvania on his way to Readings presentation. Oh yeah, he also feed a cow. Wasn't to keen on the opportunity to milk one! In any event, he admitted that his bowling skills were far inferior to his basketball skills. On the radio today I heard he bowled a 53 in 7 frames. Guess thats the last bowling he'll do. Or is it? There's a bowling ally in the White House right? Perhaps he can hone his skills in there. Of course he touched on all the hot topics of the campaign. Energy costs, Health care premiums, education expense, the war, housing difficulties and the like. Unlike our visit to hear John Kerry's message 4 years earlier that basically bashed 'W' for an hour, we heard a general plan as to how he intends to accomplish his proposed resolutions of these issues. He came across as sincere, committed and energetic. He spoke for over an hour which seemed more like 15 minuets. Without fear he used the names Martin Luther King, John F Kennedy, Richard Nixon, Ronald Regan and Bill Clinton to illustrate some of the actions he'd take as president. I have to admit, his message on the banner above strongly reminds me of JFK. The message delivered was laden with a call to action from all Americans to improve the governments function in representing and acting for the good of all people.

As we departed, walking through the rain and cold of the evening I asked what she thought. Without hesitation she indicated she flipped to the Obama side of the primary. This came as quite the surprise to me. As she told me why the change I understood exactly where she was coming from. We need new. We need passion. We need energy. And we need commitment to the change of politics in the nations capitol. Now I'm not saying who I'll vote for in the general election. However, I must say I am strongly leaning toward one candidate as of today. Yet the election is a long ways away. Allot can happen between now and then. Heck, I could write in Jason Sadi with my vote! But these things I do know, I want something new in the White House. I want a planned end to the war we're in costing us or sons and daughters our husbands and wives. I want reasonable gas and oil prices. I want affordable health care for every American. I want to feel represented by the politicians that are elected into public offices. I want those politicians to act in the the best intrest's of 'We the people'. That hasn't been the case in a long, long time.

Ralph's running again right?

My name is Scott Geary, a mortgage broker serving the Lehigh Valley and all of Pennsylvania.

And I approved this message.

So You Want a Mortgage........

2008-03-28T12:53:26Z

YOU WANT MONEY?

Well, it's not as simple as it would appear. More so today, than ever before you'll need a mortgage professional to guide you from the point of application. Through the programs you may (or may not) qualify for and the documentation you'll need to supply. To the actual closing itself, the fun part as it were. There ARE options in financing all over the mortgage landscape. A true mortgage professional will help you determine what your options are, and help you make the decision that is best suited for you and your situation. There are some folks posing as mortgage professionals that might fall into one of the following categories:

ONE TRICK PONIESYou'll find no options here. When you speak with this 'mortgage person' they will tell you about THE program for you. It may or may not be obvious that they know anything at all about the mortgage industry or the options available to you. Most often times, initially you'll like them. That's their goal. If they can appeal to the side of you that wants a 'good buddy' to do business with, your less likely to realize their short comings. Until it's too late. Best to ask about your options to get a feel for the response you get.

SPIN DOCTORSYou'll find copious options with this 'alleged' professional. In between options, you'll be informed of how terrific, experienced, worldly, talented and dynamic (among other outstanding adjectives) this mortgage professional is. Chances are strong that you'll know more about this person than you care to after the first five minuets of you conversation with them. They in turn will know little, if anything about you. They would have to hear you speak to know anything about you. They would rather tell you about themselves, leaving little time for you. If you like conceit and verbosity, this may be your person. If not, best to move on to the next candidate to handle this most important of transactions.

A TRUE MORTGAGE PROFESSIONAL OK, you caught me! I'm not what they all look like. However, you'll know this type in the first 30 seconds of speaking with them. It will be all about you to start with. Nothing about them, their company or their programs. Nothing about possible options. All about you and your special set of circumstances. This type knows that the things that may, or may not be available to you all start with what's special about you and your unique situation. We're all different, so individual information is key to determining the right program options for you. You'll feel the care and concern as the conversation goes along. Ladies and Gentlemen, this is the person you want to guide you through the mortgage transaction.

So....now that you've settled on a mortgage professional (dang, caught me again!) you still need to walk in with some basic knowledge of the mortgage transaction process just to make you feel comfortable. Don't get me wrong. A True Professional will explain things to you clearly and concisely. But, for your own comfort here's a few basic things you might want to know.

Creditis hugely important is obtaining mortgage financing. Know whats in your credit file and why it's there before you start. Bad things occasionally happen to good people. That's a fact. Explaining things that appear on your credit is in some cases all you'll need to do. Most often times, derogatory items match up with time lines of negative life events (ie: Divorce, injury, job loss, etc). Don't be discourage by these things. Remember, your working with a true mortgage professional (tempted to enter photo! see prev. paragraph please). They will help you deal with those issues that are unique to you.
Income is yet another integral part of obtaining your mortgage. The ability to repay the mortgage is a consideration when a mortgage is granted. Verifying income is nearly always required in this day and age. Your last 2 paystubs and last 2 yrs. of W-2's will generally suffice. In general, 28-30% of your gross monthly income can be spent toward your Mortgage payment (principle, interest, tax and insurance). 2 years in your position or a similar field is also a general requirement. Again, you have a true mortgage professional in your corner that will help you deal with issues unique to you.
Assets can be the deciding factor in obtaining a mortgage, as well as opening options to you in the type of loan program you qualify for. You'll need to have enough money available to you in your bank accounts and / or investments to cover down payments and closing costs. Available cash assets after your loan closes are called 'reserves' and may be required under certain programs. It's always good to have money available after closing just to take care of incidentals or to be able to handle major repair items or replacements that may come up. Once more, your working with a true mortgage professional that will help you deal with issue's unique to you. (I couldn't resist!).
Changes ( AS BOWIE SANG )have flooded the mortgage industry. Now more than ever you need a true mortgage professional (no I won't put the picture in! See just slightly above.) working for you. It seems like nearly everyday a program is either altered or eliminated. Or, prices change based on varying criteria. Or, Mortgage Insurance companies are changing their qualifications of what & where they will or will not insure. Dealing with an individual that loves this business and has the passion to keep up with whats going on is essential to your receiving a smooth, stress free mortgage transaction.

Hopefully you feel you have more information relative to the selection of a mortgage professional as well as mortgage qualifications than when you began reading this. Additionally, I hope you have a good idea of who you'd like to use a your true mortgage professional when the time comes to get one. hint:

My name is Scott Geary, a mortgage professional serving the Greater Lehigh Valley Area as well as all of the great Commonwealth of Pennsylvania.

What's Wrong With This Picture?

2008-03-21T09:41:44Z

During my morning ritual of coffee and news paper, the front page of our local rag headlined the compensation package in 2007 for the CEO of one of our local utility companies. Nearly 10 million dollars in total compensation for last year.......Hmmmm........Thats $10,000,000.00..........That sent my head spinning for some odd reason.See, I really never give a hoot what other people make. They earned it right? Bully for them right? The fact that the Philadelphia Eagles signed Asanti Samuel to a contact worth more money annually than I'll make in my life time really has no impact on me. So why should I care. Good for him! Gates, Winfrey, Buffet, who ever they are or what ever their last name is raking in cake that seems to have no end doesn't really effect little old me does it? Not often times anyway! But this, this is different. This hits a sore spot for me. Sure, our utility is going to increase 38% over the next few years which irritates me to no end. But if thats what it costs, thats what it costs. This particular company has belly ached over profit margins, returns to investors and the like for years. OK, seems that's justification enough. John Q Public will just have to suck it up, AGAIN! But this, this is something that has got my goat. Annually, my utility bill will escalate nearly 1000.00 in the months and years ahead. Meanwhile..........Thats $10,000,000.00..........My head is still spinning for some odd reason.

With all my heart, I believe that the trials and tribulations of our economy here in the good ole' US of A is somewhat to blame on executive level compensation packages. Over the last 2 years we've read story after story of CEO's receiving large compensation packages and BONUS'S for running companies that have either sub par performances, or are actually losing money, some even closing!!! Of course the grunt workers are getting their nickel and dime raises each year if they are lucky! Normally, I really didn't care about any of it. Tonight, I'll sit down to write my check to the utility company. Perhaps I should just write, 'forward to Mr. Whatshisface, he's got enough money to pay it'.

Nah! Like always I'll just send the check in and forget about this. In fact, I think I'll head to the golf course today. Seems I can forget about just about anything there. Maybe todays the day a get my first hole in one, break par..........

The Joy of Customer Service

2008-03-20T13:50:50Z

I Can Help! There went yet another satisfied customer moving into the home they've always wanted. The smiles, the talk of future plans, the reminiscing of when the kids we're babies, reflections on the starter home they bought 7 years ago all seems to reflect the satisfaction of being handled by true real estate and mortgage professionals right there at the closing table. This is why I have stayed in this business all these many years. Watching this event, listening to the conversations, receiving 'atta boys' from the parties involved. It's like laying on the beach on an 85 degree day, content, warm, relaxed, enjoying the moment...

Even outside of the 'happy ending' closings, there is so much more that a mortgage professional can and should do for their clients. Let's face it, not all applications turn into closings. There are those that are just not in a position to buy or refinance right now. But even those instances can and should be turned into a positive expirience for all parties concerned. One day that client can be in a position to do what they want to! There are Loan Officers and / or Mortgage Originators that will simply turn those people away, looking for 'closeable today' clients. I guess I can't blame them since most all of us receive our pay only when a loan closes. But, I truly believe that any mortgage guy or gal worth their salt doesn't operate that way. My entire career, I have believed that, when it comes to mortgages, everyone needs a coach, or a trainer to be next to them every step of the way in the mortgage process. Pointing out the directions that an applicant can take to lead them to the result they desire. That direction could be in the form of assisting clients in establishing a savings plan, aiding in liquidating assets to gather down payment money, resolving issues in a credit file, manipulating debt to allow the client to afford the home they want, etc. What ever the case might be, most people appreciate an honest, empathetic, professional mortgage counselor to help them get to where they need to be in order to buy the home want or refinance the home they have.

I know very little about cars. Yes, I have a key, I put it in and the car starts. I need to check the oil occasionally, make sure that air is in the tires, all that good stuff. I cannot, nor will I try to fix mechanical problems with a car. I have a mechanic friend for that! I tend to leave certain things in my life to experts. HVAC, well and septic, electrical systems and the like in my home or office. I got friends to handle that stuff. For flowers, I have a friend that's florist, Lawn care items, I have a friend in the business, he takes care of that. Bikes, got a friend. Taxes, yep, a friend. Law, yep, a friend there too. A barber cuts my hair, yep, he's a friend too, although I probably should see him a little more often. The reason that I go to these people for their goods or services is because they are all experts at what they do or sell. They have never steered me wrong. In some cases, they became friends because of the way they treated me in a business transaction. We regularly refer customers to one another. They are experts in what they do, and recognize my expertise and professionalism in what I do.

Sure, getting paid is the reason we all work! But, along the way it's great to establish a new friendship or two. Years ago, I had a sales manager that told us we're here to make money, not friends. I always disagreed with that. If I didn't, I'd have been out of this business years ago!

My name is Scott Geary,a Mortgage professional serving the Lehigh Valley &

The Commonwealth of Pennsylvania

Automation in Credit Decissions and Scoring

2008-03-18T09:40:18Z

This just in! I'd like you to meet the newest underwriting staff at 'Lost in Space Mortgage, LLC'. Each has their own specialty in underwriting. On the far left, that's R2DU, a clever thing that specializes in Fannie-Mae underwriting. Next in line, that's LPD2, a Freddie specialist who I'm told has a real empathetic side to it. The last two are government machines that handle all the 'govey' loans. Names are protected and they don't speak to anyone. It's amazing they came by for this group photo because they never really associate with the rest of the group.

Really, it's all a joke. No I'm serious, it's all a joke! I can't help but wondering what part automated underwriting has played in this mortgage mess we're in. I'll grant you a machine MAY be able to evaluate an applicant who has solid employment and residence stability, 20% down, with high reserve amounts and a 720 score. But that certainl is not your average client. Here's just one of many examples of this. Just Friday, I closed a retired schoolteacher with a back end debt ratio of 67%. The loan left her 900.00$ monthly to live on. 325.00 goes to her health insurance. Another 345.00 on a credit card leaving her 230.00 monthly to live on. LPD2 decision was it's a go, so it went. No, No, No.....I know what your thinking! I could never put someone in that position unless I knew they would be OK. She'll be getting her 1st social security check in August which will cover the mortgage. My point is that this WAS NOT a consideration for the loan. COULDN'T EVEN BE CONSIDERED!!!!! An underwriter is simply making sure that the applications information matches what R2DU spit out as conditions for an approval. That my friends is a sad state of affairs. No one, and I mean no one should qualify with a back end debt to income ratio of 67%. Heck, we only bring home 65-70% of our gross!!! This lady has absolutely nothing once she pays the bills I've mentioned.

Some where around 15 years or so ago, the industry introduced automated underwriting. When it first came out, I was skeptical at best. Fast forward to today, and I believe that the human factor's have been totally eliminated from the process. Take the above example. The woman's credit was exceptional, no doubt. However she had over $70,000.00 in revolving debt, $55,000.00 of which we paid off with the sale of her home. The reason for the excessive revolving credit? To make credit payments, pay property taxes, and the like. Had she continued on the path she was going, financial ruin was inevitable! An automated system takes little of this into account. And underwriters doen't seem to have the latitude of decision making they once had. Me thinks it's time to take a hard look at the overall system of automated underwriting and the empowerment of underwriters to monitor and correct the consistency of decisions.

Credit scoring is also automated. A function that drives the mortgage industry that no one seems to be able to pin point EXACTLY how scores are generated. Sure, there's the usual pay your credit accounts on time, maintain a sizable ratio of available credit to balances on your credit cards, limit your credit inquiries, etc. But often times I feel like there is a 'Holy Grail' out there somewhere that can give us the keys to successfully working to drive a credit score upwards when an unfortunate life event occurs to us. Unfortunately, this is certainly not the case. If it was, I grab my fedora and whip and begin my adventure. Searching for Scoring Keys

Credit reporting agencies are most certainly driving the entire credit industry, yet the responsibility for accurate reporting is always thrust upon the consumer. To have information removed or corrected is a time consuming process that Mr. Average Joe will struggle with each and every time. It gets even more difficult when there are multiple collection accounts sold from servicer to servicer each never leaving a file, appearing as though there in fact muliple collection accounts......The system is certainly not consumer friendly. It seems obvious to me that this system is also flawed. Yet, it seems a long time coming before anything will be done about it. So until then, pay your credit accounts on time, maintain a sizable ratio of balances to high credits, limit your credit inquiries, etc.

My name is Scott Geary and I am a Mortgage Broker serving the the Lehigh Valley and all of Pennsylvania.

Mortgage vs. Credit Card Companies - Quien es Mas Macho?

2008-03-17T09:19:31Z

In this corner.....the mortgage industry...The government is up in arms, the economy has been adversely effected by unscrupulous investors taking advantage of the poor, the tired and the hungry. As always, close scrutiny will be paid to bankers, lenders, and brokers at every governmental level, local, state and federal. We'll exhaust every effort to ensure that the activity which lead to this has stopped. There will be more forms to gauntee that consumers know exactly what they are getting into. Licensing requirements will become more rigid. Banking examinations will be come more frequent. What ever it takes to fix this injustice, you can bet the government agencies will have the answer, and all will be well. Of course it may take months, years, but the folks we've elected will take care of us. Someday, some way, some how. The amended FHA 'emergency' restoration bill passed through congress (I believe) 3 - 4 weeks ago. Now it's on to the senate, and then the President. Why so long? Good things come to those who wait I guess.

In this corner.....the credit card industry...This has got to be the greatest industry known to man. Taking care of the poor, the tired, the hungry, one $200.00 credit card at a time. The rates are variable, with King Kong like margins. But who cares! It's affording all kinds of people without ability or intentions to repay a little fun money for the weekend. To make sure these companies can get the highest rate of return, they have moved from state to state over the years to allow for the highest possible interest rates. First it was Delaware, then on to South Dakota. I'm not sure of the state of choice these days. But you can be sure that it allows for big numbers. There are all kind of wonderful fees allowed in the credit card industry. The late fee, the over limit fee, the monthly usage fee, the individual transaction fee, the annual card holder fee,etc.....AND my favorite stipulation, 'the card issuer resevers the right to alter your agreement at any time'! This industry is just a money making juggernaut! Limited to no federal regulation, minimal state regulation and no real care or concern for its customers.

32 years ago I began my career in consumer finance. Personal loans were 28 - 29%. We were the peria's of the credit industry. How could anyone charge such an outrageous interest rate??? Check out some of the intrest rates on credit cards today. I've seen some as high as 39%! As time went on, these companies as they were could no longer hold a profit margin that would support personal loan lending. Most went out of business, while some changed it's market strategies to call themselves Home Loan Company's. These places continue to evolve. The credit card industry contiues to grow and prosper. But I digress..

Credit Card vs. Mortgage industries, quien es mas macho?? It seems obvious to me that its the Credit Card industry es mas macho. Why else would the federal government fail to rescue our economy from this monster? FEAR?

Buyer Be Saving

2008-03-11T09:48:30Z

As one views all the advice on the Internet, television, radio and print media, it becomes obvious to a potential new home buyer that credit, credit scores in particular, are hugely important in the purchasing of Real Estate. Know your credit file. Address any errors and have inaccurate data removed prior to applying for your mortgage. Speak with a mortgage professional that can help you to manipulate the data within your file to get you the best credit score possible. Increase credit lines without using them. Etc, etc, etc. Pointers are endless. Some good, some not so good.

Seems that one reads very little about the single most important resource needed when buying a home. Something not many of us have too much of. Something that creative marketing over the last several years had lead us to believe that we really didn't need to buy a home. It's the reason most of us go to work 5-7 days a week for 35 - 70+ hours per week. It feeds us, fuels us, entertains us and allows us to obtain what ever it is that we need or want in life. It comes in many forms and has been called many things. Doe - Rae - Me, Scratch, Cake, Moola, Jing, Bacon, Coin to name a few. You guessed it! The all mighty dollar.

When I initially entered the wonderful business of mortgage lending the only product on the market which allowed for no cash investment in down payments and / or closing costs was a VA loan. All closing costs could be paid by the seller as agreed to in the sales agreement. Always respected the fact that our government takes such good care of those that have made sacrifices for the freedom of our great nation with a benefit like that. The lowest down payment program available to non-service people was an FHA loan at 2.5% down. As always, allowing 6% seller assist and all funds needed to close can be gifted from a relative. Outside of those programs, a new home buyer needed 5% down (minimally) and the seller could contribute up to 3%. Over the years oh how times have changed. Nearly anyone could get 100% financing with 6% assistance from the seller. But as with fashion, sports, politics, and many other things in our lives, the more things change, the more they stay the same.....

Ladies and Gentleman, Men and Women, Boys and Girls, it takes money to buy a house. Home Ownership is not, I repeat is NOT an impulse buy for the majority of Americans. Unless your name is Tiger Woods, Oprah Winfrey, Donald Trump, Warren Buffet, or some similar name with endlessly deep pockets, there needs to be a plan in place to ensure that a sufficient amount of cash is in fact available to use toward the purchase of your home. In fact, many times excess cash is necessary for what the industry terms 'reserves'. Cash left over after the transaction is completed. Reserves are nice to have for not only emergencies like an unexpected home repair, loss of income, unforeseen medical emergency, etc. They are also important for those little odds and ends that end up totaling a tidy sum once you move into your new home. Storage, Movers, ccurtains, rods, blinds, throw rugs, garbage cans, pictures, bathroom and kitchen items, lawn maintenance supplies, etc, etc, etc...... Things we don't often consider can add up to a pretty penny. It's terrible to find yourself void of funds when you take ownership of your new home because you spent every dime you had to get into it. A true recipe for disaster.

Keeping cash in mind, as a potential home buyer, your consideration must be heavily weighed upon your liquid cash assets available to complete the transaction. Available cash can include IRS tax refunds, the sale of an automobile or other verifiable asset for cash, savings, checking, stocks & bonds, mutual funds, etc... Some retirement accounts or 401k's will allow you to liquidate, or borrow against them for the purchase of a property. You'll need to check the plan description to determine if in fact you can use that as a source for funds. Additionally, gifted funds from family members may be eligible to be used, depending on the loan program you select. This stuff can make your head spin......

All things considered, your best bet is to meet with a Mortgage Consultant prior to beginning your search for your new home. Qualifying for a Mortgage is certainly more than what maximum monthly payment you can get your loan approved for. Much more in fact. A true Mortgage Professional will work with you to help you to achieve exactly what it is your looking for in financing a new home. They will also help you to implement a short or long term plan to get you there in the event NOW is not the time. It's true on occasion that 'good thing's come to those who wait'. But better things happen to those who plan. If you believe NOW is the time, run, don't walk to a mortgage professional near you to help you make it happen!

My name is Scott Geary and I am a Mortgage Professional in THE Lehigh Valley, Allentown Pennsylvania.

Credit Scores, Debt Ratios / Disposable Income......

2008-02-25T12:14:28Z

Today, through things I've read on AR, discussion's I've had with associates and clients, and a little personal reflection I felt moved to comment on the 3 issues appearing in the title.

Credit Scores- As wrong as it may appear, these 3rd party generated numbers are driving the mortgage industry. I read a blog by a friend of mine that related to 'common sense' lending, which we all agree is pretty much a part of the past. Now I know there are those of us who'll bring up FHA as the NEW 'common sense' lending vehicle. I believe it won't take the industry nearly as long to wear that out as it did sub-prime. I digress... An associate of mine had an application last week with a mid-score of 630. Unfortunately this score disqualified her from the program she was interested in. While we reviewed her credit file with her a collection account from Verizon was identified as not hers. We gathered the documentation from Verizon to confirm the reporting error. Had the trade cleared from all three bureau's and low and behold her score increased to a 729. Now to some, that's a great story. To me, it's more fuel to an incredibly concerning fire. How many folks have scores lower than what they should be? Sure, it's incumbant upon people to monitor the credit files they have. But quite frankly why should it be that way? We all have allot to do in a day and certainly enough to worry about. Now another thing? I for one feel that credit reporting agencies are way, WAY out of control. Logically, the credit reporting companies are selling information and compiling scores on the basis on that information. Yet, I must have missed the article that reported they are accountable for the accuracy of the information they are selling. It always seems to go back to the individual consumer and their responsibility. Day to day, until JOE CONSUMER wants to buy a house, a car or finance anything, I am certain that their credit file is not high on the days list of priorities. Heck, I have a tough time remembering to stop and get milk on the way home! But getting things removed or corrected.....A visit to the dentist is more appealing!!! Thankfully, a good mortgage broker or lender will help take care of these people. The credit cards or car dealers might be a little different story.

Debt Ratios & Disposable Income- In a blog I read questioning an Refer / Eligible finding on DU a gentleman posed a question of an exception possibility with a 67% debt ratio. Years ago, several in fact, the debt ratio was one of two considerations when evaluating an applicants ability to repay. The other was disposable income. Picture a person earning $3000.00 each month with a 67% debt ratio. The total payments for this applicant would be $2010.00 monthly. Of the $3000 gross income, the applicant would likely bring home $2100. The $90 left over would be used to pay the electric, phone, cable, car insurance, heat, gas, and feed themselves. Won't be long until they won't have to worry about electric, phone, cable, heat, and car insurance. They all be shut off!!! No matter what the income, 67% is excessive, and likely to be declined every time. Here is where a little 'common sense' comes in! Using gross income to qualify, it's a fair assumption to make that the actual cash in hand after deductions will be about 70% (or lower) of the gross income. However, lower debt ratio exceptions, lets say in the 50-55% range can make sense, the higher the applicants income. The key is in disposable income, which was once a consideration and is now a compensating factor. Same thing I think. The more things change, the more they stay the same.

To Stip, or Not to Stip. That is the Question!

2008-02-20T16:30:53Z

Contrary to popular opinion, Underwriters are not, I repeat, are not monsters. They have no resemblance to the Gila (pictured here), the Loch Ness, the Cookie, or any other 'the ____ Monster' you may have heard of. The perception has always been that these evil doer's are the cause of the demise of every declined loan known to man. This of course is another un-truth. Most of those applications could have been declined right at the originating loan officers desk. Too often times the 'throw it against the wall to see if it sticks' mentality of origination was the culprit, not the underwriters. Honestly, MOST of these folks are good people, getting paid to do an absolutely thankless job. LO's get kudos. Processors get atta boy's. Heck even closers get a crumb of thanks now and then. But underwriters......all they can do is gum up the works. Sometimes thats true. More often times it's not.

I got a stip today about an SS # on a pay-stub (5 digits) that didn't match the applications or the w-2's SS #, which were incidentally the same. As I looked at it, it seemed obvious that the 5 digits were simply a code of sorts for the real number. Our year end pay-stub matched our w-2. Seemed easy! As my Algebra One teacher always taught, take what you know, apply to what you don't know, and arrive at the answer. Easy right??? Oh no, we need a written explanation from the employer as to why the number appears in the format it does. PLLLEEAAASSSEEEE!!!!! So, I am forced into my regular tirade of how to determine the answer to that age old Shakespearian question, 'To stip, or not to stip. That is the question.'

In my years of underwriting, the answer to the following question determined whether or not I would add the stip I was considering: Is this something I need to know or have to approve the loan, or would I like to know or have this information? If I NEED it, its a stip. If I'd like to have it, its not. Simple right? Well, it used to be. Back in the good old days Men were Men and sh.......ops, thats another topic!

Looks like the stip will be removed later today. The point is, just like the rest of us in the mortgage business, if not more so, Underwriters are under some serious scrutiny and pressure to cross every 'T' and dot every 'I'. As a result of those pressures, they are more likely than ever to stip, stip, and re-stip. As originators, we need to be sensitive to this from the point of completing our initial application, through gathering supporting documents, all the way to closing. As thorough, complete and observant as we can be from start to finish we need to be. This will only help a good underwriter to limit stips, and be more able to answer the question of 'To Stip, or Not to Stip' in our favor. Happy Lending!

Whats in a name?

2008-02-12T15:11:55Z

I just commented on a post and wrote a few names of old players on a particular team in the National League east known as the Atlanta Braves. As I typed the names, the thought of all the great names throughout the entire league over all the years I've followed the game rushed to mind. Great players, sure. But the names remained in my head for years.

Nick names like Mud Cat, Blue Moon and Catfish took over for whatever the real names were. Heck, they appear as those names on nearly every Topps card produced for them. Other nick names just stuck. Some old, some real old, some new. But I don't think there is another sport with as many characters as baseball. How many do you know in this list? More importantly, how clear are the memories of the names you remember.

Bags, The Rat, Senior Smoke, El Sid, HoJo, The Thrill, Dewey, The Penguin, Peanuts, Little Louie, The Hammer, Smoke, Juan Gone, Baby Bull, The Riverside Ripper, Campy, Roadrunner, Crime Dog, Quiz, Lefty, Pee Wee, Charlie Hustle, Yaz, Sparky, Cool Papa, Yogi, Three Fingers, Happy, Dizzy, Joltin Joe, The Lip, Puge, Whitey, The Iron Horse, Goose, School Boy, Mr. October, Fergie, Killer, The Mick, Say Hey, Maz, Stretch, Satchel, Scooter, Bambino, Ryno, Tom Terrific, The Wizzard, Pie, Honus, The Toy Cannon, Flash, El Duque, The Big Unit, Moose, A-Rod, Pudge, The Big Hurt, The Hat, Sweet Lou, Donnie Baseball, The Barber, Mr. Cub, The Rocket, Dizzy, Rapid Robert, Hoot, Doc, Junior, Shoeless Joe, Big Train, Peanuts, Piano legs....

This list could be endless..........

It's the players that make the tradition of baseball rich. There's names in that list I never saw play. But, when my father, grand father, or great grandfather told me stories, or I read about them and who they were, they'll be forever part of my baseball memories. I can't wait to get this season started!

Go Phils!

My Favorite Holiday You Ask.......

2007-11-21T11:10:52Z

Why certainly it's Thanksgivingof course! There is no better holiday than one where the purpose is simply a celebration of all we have to be thankful for. Hallmark has nothing to do with it. There are no expectations of gift giving or receiving. It's not a direct celebration of something that factually occurred on a specific date or was assigned by a government as a holiday. It's celebration is deeply embedded in the fabric of Americana. A celebration of religious and personal freedoms that were never before enjoyed by the early settlers of our country. A feast fit for a king or queen. With no other purpose but to enjoy the company of family and friends over what ever those folks consider to be traditional Thanksgivingfare. It just doesn't get any better!

Tomorrow, I'll eat until I am truly uncomfortable. Laugh until my face and belly ache and watch football until I drift off into never - never land. All the while giving thanks for all that has happened in my life and my profession over the last year. After all, I am truly blessed with great family and great friends. Have a Happy Thanksgiving everyone! Gobble, Gobble, Gobble!

I Love My Profession Because.....

2007-10-26T13:46:11Z

It affords me the opportunity to meet some of the most interesting people known to man.
There is something new to learn each and every day. All you have to do is pay attention!
I get a RUSH from being able to help someone get a mortgage they felt they might not be able to get.
There is no time card to punch, no mandatory work schedule, no pressure from anyone but me.
The variety of what I do is endless. Of course variety is the spice of life.
Of relationships I have established over 30 years that go beyond business ties.
The opportunity to educate people who don't work with mortgages every day. I am the expert in this area!
My family has been extended just through the great people I get to work with every day. They are happy, I'm happy. They hurt, I hurt.
Associates, Consumers, Referral Sources and Vendors can all benefit from all the experience I have acquired over 3 decades in this business.
It's the only thing I really KNOW how to do with a sense of expertise. That's moral, legal and ethical anyway!
Everyone needs to be passionate about something. I'm passionate about doing mortgages.
I am approaching my 3rd generation of clientele. In a few more years, I'll be helping the parents children's children.
Some times the ineptitude you can witness in certain segments is entertaining and humorous.
Attending the closing of a newly purchased home is glorious. I won't miss that fun for anything!
I take great pride in knowing that each and every day, my purpose here on earth is to help some lucky client get the best mortgage loan they possibly can, at the best terms available, with all the facts to ensure they've made the right decision.

Real Estate Investors - Payers or Players?

2007-10-17T11:15:39Z

Ok, I'll admit it. Most every time I hear about Real Estate investment seminars, I think about a guy or gal with half a bag on and no job watching late night TV at 2 in the morning....listening to somebody tell them that they can be a millionaire in just 3 short days if they buys his DVD, Book, or attends the seminar. Never work another day in their life and live in the lap of luxury. Who cares about bad credit, lack of assets, personal compatibility with the real estate investing game, and the like? All they have to do is pay that fee, and viola! A Millionaire! Payers- with little if any result. They awoke the day after and wondered how they have called that number and paid money they didn't have for something they wouldn't do. They next night, on the couch, with half a bag on at 2 AM, they order the Ginzoo Knives only because the spiral slicer was thrown in for free! The cycle continues! PAYERS

Last night I had the opportunity to speak in front of a group of investors that had just completed a class called Real Estate to Riches. They can be located at http://www.realestateriches.com/ My take on Real Estate Investment educational programs has changed! There are actually some good groups with good intentions to put people in positions to become legitimate PLAYERS in the real estate market. I strongly believe that this outfit is one of them. At first, I was somewhat skeptical. Called in last minute to present to a group that I had preconceived ideas about. But, when my close friend and Associate asks me to do something for him, how could I say no. Plus, Beth wouldn't let me! SO.....with some trepidation, I went to do the old 'Dog and Pony' show.

Floored is what best describes my reaction. This group of some 65-80 people were terrific! Well informed, not deceived as I would have expected. Understanding of how credit impacts their investment abilities, not oblivious as I would have expected. Plan in hand as to how to begin and continue investing, not sporting the instruction to find real estate auctions that no one else knows about as I would have expected. Aware of how to leverage cash and equity assets to properly execute their investment strategy. PLAYERS! This was truly a well informed and properly directed group of people. I had a really great time hanging out after all the presentations, meeting people, answering questions, and slugging down bottled water. What a great group of people. They all have a plan and a vision complete with goals and benchmarks. I hope they all reach those goals because they seem to have the passion and knowledge to get them there! They are truly PLAYERS in the real estate market.

I'm not sure any of them will see this post. But in the event they do, I'd like to thank John H. for inviting us to the meeting. And, I'd like to thank everyone that was there for sharing their valuable time with us. It was one of the better experiences I've ever had meeting a group of people to talk about my industry of choice, the mortgage industry. Have a great day!