Sherri 's Blog

Are Mortgage Rates Going Down? How Low Will They Go?

Sherri Sherpy (Mortgage & Investment Consultants) — Wed, 21 Jan 2009 22:43:24 -0600

If there is one question that I get asked the most, it is "Sherri, how low will mortgage rates go?" Or another version, "Will interest rates go down further?"

Let me start by saying, THAT is the million dollar question. In the last 3 weeks, I have seen 30 year fixed rates as low as 4.375%, only to jump up to 5.375%. What a wild, wild roller coaster we are on!

I subscribe to many rate and market commentaries, alerts, updates and news. I have been in this industry for nearly a decade. And the Rate Game is the most difficult THING to put my thumb on these days. Nothing makes sense. Statistical data has been blown-out-of-the-water. Experts predict down and then they go up.

There seems to be a lot of buzz waiting for the government to bring the interest rates down to 4.5%. Well, we've been there and lower. Economic data can be major market movers, as we have witnessed with the change in mortgage interest rates several times per day. Some experts predict that rates will continue to fall and others believe our Treasury is going to BUST and rates will sky rocket. What gives?

If that isn't enough, let's take this a little further...inside the workings of the mortgage industry itself. Rates are low...they were REALLY low 2 weeks ago. But now we are seeing some crazy things going on. Fannie Mae and Freddie Mac just announced more LLPA's (loan level pricing adjustments). These are all the "adjustments" that get layered on top of the rate for certain loan scenarios. For example:

Want to do a cash out refinance? Be prepared for an LLPA.
Have a credit score under 740? Could mean another LLPA.
Buying an investment property? HUGE LLPA!
Buying or refinancing with a 1st and 2nd mortgage? Yep! You're getting it now...another LLPA.

So let's say 30 year fixed rates are at 4.5%. You want to refinance. You have a 699 mid credit score, you need to take a little cash out to pay off a bill and your loan-to-value ratio is 80%. Think you will get a 4.5% rate? Not even close...Unless you want to pay points to cover all those little LLPA's.

To make things even a little more interesting, there is now talk of major lenders beginning to absorb their costs of lost interest rate locks by charging fees. These fees will be "absorbed" in their interest rates, meaning an inflated, higher rate or charging the fee outright. See my blog, What? Mortgage Rates Go Up When They Are Going Down? for more information on this.

If I can offer my 2 cents of advice on the Rate Game, it would be this:

If you feel inclined to shop different lenders, do it ahead of time, find a lender or loan officer you trust and stick with that person. Yes, that means conversation, getting a GFE and doing your homework up front. If not, you may end up losing...I have seen it happen on many occasion. Rates can change several times a day. Don't chase 3 or 4 lenders. By the time they all get back to you, rates may have gone up.
With that research, make sure you find a loan officer who is current on economic news and has the technology to inform you of possible upcoming rate changes before they happen.
Be prepared to lock at a moment's notice. That means, giving your loan officer every conceivable way to get a hold of you. Remember what I said earlier...we are on a roller coaster ride and the ride just keeps getting wilder!
If you are refinancing, know what the value of your home is, or at least an accurate estimate. Remember LLPA's? They can hurt when you find out you really have a loan-to-value ratio of 80% and not 50% that you wished for. Also, know what you want to do with your refinance. Is it just rate-and-term? Are you taking cash out? What do your credit scores look like? When you choose your loan officer, have this discussion. Know what your certain set of circumstances are and how those may affect the interest rate. It will save your loan officer from having to deliver the bad news that you really can't get that wonderful rate unless you pay points and it will save you from frustration.
This one may sound bold, but here it is, anyway...Don't get too greedy. You may miss the boat all together. If you are waiting for rates to go down to 4.25% without closing costs, you most likely will never move forward. Rates are at a historical low. If it feels right and the payment fits, LOCK !

Mortgage Documents 101...GFE? Til? 1003? 4506?

Sherri Sherpy (Mortgage & Investment Consultants) — Wed, 21 Jan 2009 20:44:32 -0600

When most industries are boasting the paperless era, the mortgage industry continues to inundate our consumers with more paper! Every year it seems that we are presented with new state and federal disclosures. What do all these forms mean?

Well, here it is...Everything you wanted to know about mortgage documents, but were too afraid to ask!

The following descriptions are meant to be abbreviated explanations of lending disclosures. Of course, I recommend that you read them in their entirety, ask your loan officer questions where they arise and seek professional counsel should you feel it necessary.

Uniform Residential Loan Application (1003)

The lender uses this form to record relevant financial information about an applicant who applies for a residential mortgage. This form will represent the information shared in the interview concerning residence history, income, assets, liabilities, details of the proposed transaction and declarations about the applicant, his/her intentions and his/her past.

Good Faith Estimate (GFE)

This document is a written estimate of expected closing costs that a lender must provide a prospective home loan borrower. Brokers and lenders are required by law to make as accurate an estimate as they can.

Truth In Lending (TIL)

The purpose of the Truth In Lending Act (TILA) is to promote the informed use of consumer credit by requiring disclosures about its terms and costs in a standardized manner. This document will show you your Annual Percentage Rate (APR) which is the cost of credit on a yearly basis, expressed as a percentage. This is required to be disclosed by the lender and it includes up-front costs paid to obtain the loan, and is, therefore, usually a higher amount than the interest rate stipulated in the mortgage note. APR Does not include title insurance, appraisal and credit report.

Borrower's Certification and Authorization

This document affirms your application intentions, its accuracy, consequences of lying, and authorizes your lender or its assignee to verify your application information and modify the method by which your income may be documented for the purposes of loan processing and approval.

Credit Authorization

This document allows your broker/lender to obtain and share your credit report with lenders, investors or other relevant 3^rd parties for the purpose of fulfilling your request for an extension of credit.

RESPA Servicing Disclosure

The Real Estate Settlement Procedures Act (RESPA) requires the lender or mortgage broker to tell you in writing whether it expects that someone else will be servicing your loan (collecting your payments). In this document, you'll find the lender's history of servicing and transferring servicing rights.

4506-T Request for Transcript of Tax Return

This document authorizes your lender to obtain transcripts (i.e. Form 1040 series, Form 1065, Form 1120, Form 1120A, Form 1120H, Form 1120L, and Form 1120S) as well as supplemental filed materials (i.e. Form W-2, Form 1099 series, Form 1098 series, or Form 5498 series transcript) for verification and quality control purposes.

Credit Score Information Disclosure

In connection with your application for a home loan, the lender must disclose to you the score that a credit bureau distributed to the lender used in connection with your home loan, and the key factors affecting your credit scores.

Equal Credit Opportunity Act Notice

The Equal Credit Opportunity Act (ECOA) ensures that all consumers are given an equal chance to obtain credit. This notice informs you of that right and what to do if you feel you've been discriminated against.

Disclosure Notices

There are several elements to this disclosure. It is an affidavit of your intention of occupying the property or not, a description of your rights under the Fair Credit Reporting Act, a reiteration of your rights and redress under the ECOA, a description of your right to privacy, an authorization to your current affiliates to release information to your lender for the purpose of compiling a mortgage loan credit package, an affirmation that your lender has not coerced you to use a specific insurance company and an affirmation that you received a copy of the Consumer Handbook on Adjustable Rate Mortgages, if applicable.

Fair Lending Notice

The Fair Lending Notice outlines what constitutes different forms of illegal bias, prejudice and discrimination and provides contact information to federal agencies for further questions about your rights or whom to contact if you wish to file a complaint.

Patriot Act Disclosure

Federal law requires all financial institutions to obtain, verify, and record information that identifies every customer. This document simply informs you that we'll be collecting the required information to be in compliance with this act.

Patriot Act Information Form

This form gives you the option of which form of identification you'd like to use to satisfy the Patriot Act requirements. Please choose the identification form that is most convenient for you and fill out the requested information.

Net Tangible Benefit...IMPORTANT!

Loan officers in Minnesota are prohibited from brokering or making a loan that does not provide a borrower with a "net tangible benefit." This disclosure outlines that this requirement exists and how the benefit is identified.

Ability to Repay the Loan

Minnesota requires that consideration be given to a borrower's capacity to repay the loan that they are applying for. This disclosure verifies this fact, affirms your income as represented by you or on your behalf to your lender and outlines the method by which they evaluate your capacity to repay the loan. It also serves as a warning that, if you think you might not be able to afford this loan, that you should not proceed with the loan process.

Escrow Accounts

Of late, many less scrupulous companies have disclosed terms of loan offers without representing the complete monthly payment that includes taxes and insurance. This disclosure outlines how an escrow account works and shows our estimate, at this time, of what will be included on a monthly basis in your escrow account.

Whew! Now that's a lot of language! Always work closely with your loan officer, ask questions, read your mortgage documents and make sure you know what you are signing.

What? Mortgage Rates Go Up When They Are Going Down?

Sherri Sherpy (Mortgage & Investment Consultants) — Tue, 20 Jan 2009 09:43:19 -0600

Mortgage Rate confusion!!

Here's the question...how low will rates eventually go? This is an interesting question to say the least, in the current times. We are currently experiencing a refinance boom in this country. That's the good news. The bad news: It is expected that at least 50% of all those interest rate locks will fall through. In other words, thousands of homeowners have locked in their rates in hopes to refinance to a better position with their mortgage. 50% of these will not close...due to denials, low home values and a whole slew of other reasons. How does this affect us? Let me explain:

When a consumer decides to lock in their rate, the lender is committing those funds on the secondary market. When these locks expire or don't get fulfilled, the investor charges the lender a fee. With 50% of the rate locks expected to fall through, this equates to big losses for lenders. What can happen? There is speculation that lenders may start charging a FEE to lock in an interest rate to protect themselves from the losses. To the consumer, this may mean an upfront fee to lock or a fee that is incorporated into the rate. So, even though rates may go very low, if lenders decide to charge this fee, the consumer gets to decide to pay the fee or take a higher rate to "bury" the fee.

Unbelievable! It will be interesting in the coming weeks and months to see how lenders respond to the losses of thousands of unfulfilled rate locks. No matter what, the consumer gets to pay. :(

The MN Mortgage Mom Receives Accolades!

Sherri Sherpy (Mortgage & Investment Consultants) — Sat, 03 Jan 2009 18:05:44 -0600

Far too seldom do we recieve warm praises in this somewhat "thankless industry". I have held several careers in my lifetime and this is bar-none, the most challenging of all. Long hours, endless need for research and guideline changes almost every day. I am the Financial Planner, the Accountant, the Researcher, the Preacher, the Teacher and the Psychologist all wrapped into one role of Mortgage Loan Consultant.

Nevertheless, it is bar-none the most rewarding career ever. I am helping and changing people's lives on a daily basis. I want to thank those who have taken a moment to give me their praises. It makes those not-so-good days all worth it! And yes, I am, for the first time ever going to toot my own horn on my blog!

I have had the good fortune to receive a string of kind words from clients:

My plans for refinance had changed at one point and in a moment's notice, I was back on the scene again. Let me start by saying that Sherri Sherpy was with me through the entire journey. I have been going through a divorce and this was one of those "evils" that I had to deal with. I received several good faith estimates and Sherri explained line by line the costs associated. Everything from setting up a new escrow account to why the numbers were the way they were. I DID NOT receive the same courtesies from others. Most of them showed the numbers to be very low. I would have been COMPLETELY surprised at closing and quite unhappy to say the least. Sherri also kept me abreast of the rates daily (sometimes more often than just daily) and I locked when it was great for me to do so. I just closed yesterday. She was fast, efficient and truly a consumer advocate. What a great teacher.

Annette (12/31/2008)

I had been working with another lender. I had many questions. Sherri not only answered every single one of my questions with the most detail, but she answered them at all hours of the day and night. I am very impressed with her responsiveness and knowledge on financing. I look forward to working with Sherri as we find and purchase our new home.

Andrew Stettner (12/28/2008)

What a breath of fresh air! I have recently spoken to two other loan officers (one from a big bank) and wondered, where do these people come from??? I like to work with local people considering I am spending this much money. Sherri's name was given to me and I gave her a call this morning. She answered EVERYTHING for me. She was very patient and took 45 minutes of her time to help me get through all of my concerns. The other two I had spoken to either beat around the bush or were a bit rude in answering some of my questions. Plus she has a great sense of humor! I am meeting her tonight at Starbucks and let me say, I definitely look forward to it!

Taylor (12/11/2008)

From The MN Mortgage Mom, "Thank you SO much!"

Veterans' Refinances Get A Reprieve From A Declining Housing Market

Sherri Sherpy (Mortgage & Investment Consultants) — Sat, 03 Jan 2009 09:56:51 -0600

When many of us cannot refinance to take advantage of the historical, low rates due to declining values,

Veterans are afforded some relief. As they should be!

If you currently have a VA loan, you are in luck.

Consider this:

NO APPRAISAL NEEDED. It does not matter what the current value of your home is. We will not require an appraisal.
NO INCOME DOCUMENTATION. That is right. You can refinance your current VA loan into another and NOT supply any income or asset documentation

This is particularly unique when we consider our laws in MN. One and a half years ago, laws were passed prohibiting any mortgage transactions with no income verification. In other words, there are no longer any MN mortgages transacted without full documentation of income and assets. Not true for MN VA refinance loans!

There are only a few guidelines to qualify:

Must have a minimum 580 credit score
Must have a current VA loan with no lates in last 12 months
We must be able to pull a clear CAIVR (meaning you have no delinquent federal debt)

That is it! If you haven't taken action and taken advantage of the very low rates, it may be a great time to do so now. What a great way to bring in the New Year by saving some cash!

Ph: 612-363-1106

Email: ssherpy@minnmortgage.com

Web: www.sherrisherpy.com

Agents, I NEED Your Feedback...PLEEEEASE!

Sherri Sherpy (Mortgage & Investment Consultants) — Thu, 14 Aug 2008 12:37:49 -0500

I really need your help...from a Realtor's point-of-view.

Starting in September, I am going to be hosting short, 30 minute webinar trainings on timely mortgage information. Because I only have 20 "spots" for invitees to the webinar, I am rolling it out to the local agents I work with in the beginning. Depending on the success of it, my plans are to offer more "spots" or do the same webinar at different time slots, if demand warrants it.

I want to offer it as a value-added service to my current agents AND my hope is that these webinars will gain word-of-mouth and help me to grow my business! :)

But I need feedback from you!

When I think about content, topics, etc. I am trying to take this from a Realtor's point-of-view. But because I live, breathe, eat and sleep mortgages, what I think may be interesting, may be absolutely worthless and boring to an agent!

Can you help me with some of these thoughts:

Does the idea of 30 minute, focused webinars on mortgage related topics even appeal to you as an agent? In other words, if your loan officer came to you and invited you to a webinar like this, would you even attend?
Content: From a mortgage stand-point, what do you as an agent find interesting as far as topics? What content would compel you to WANT to attend a 30-minute webinar? Mortgage products? State of the industry? Rates? Appraisal logistics? Credit?
In a nutshell, how would you answer, "Gosh, that is really something I would like to learn about?"

Thank you SO SO much for your help!

CASH FOR KEYS...With a Twist!

Sherri Sherpy (Mortgage & Investment Consultants) — Wed, 13 Aug 2008 21:23:33 -0500

I have heard and read a lot about the Cash for Keys programs that banks offer renters or current occupants after the home has been foreclosed on. Cash for Keys is basically a monetary incentive that the bank will offer to the resident to move out by a certain date, thereby gaining possession of the property quicker and cutting losses.

To read a great article loaded with details on this, go to John Occhi's post, "I Don't Get It! The Bank Forecloses on Their home and Then Pays Them To Move...Or Why Cash for Keys.

So what is Cash for Keys...with a twist? Well, today I had lunch with a friend and was literally blown away. Now some of you may read this and think, "Gosh, that's not so surprising." But I was speechless and for those of you who know me, that is an anomaly in and of itself.

I knew my friend was not doing well. He was plagued with over $100,000 in medical bills and the finances were going downhill fast. He did not want to face foreclosure, so he called his mortgage companies (he had a 1st and 2nd mortgage) to see if something could be worked out.

He called the 2nd mortgage company and asked if they would be willing to remove the lien from his house. They were willing to do so for $5,000. He did not have that kind of cash, so he then called the 1st mortgage company and asked if they would help. Long story short, the 1st mortgage company paid the 2nd mortgage company the $5,000 to release the lien. Then the 1st mortgage company turned around and paid my friend a good amount of money to "turn in his keys".

No foreclosure process EVER took place.

What blew me away the most? On his credit report, the mortgage companies reported:

Mind boggling, but I am very happy for my friend!

FIRST TIME HOMEBUYERS...What You Need To Know

Sherri Sherpy (Mortgage & Investment Consultants) — Sun, 10 Aug 2008 00:37:49 -0500

First Time Homebuyers are my niche...they are the lifeblood to my Twin Cities mortgage business. I love working with them because I can be a coach, a nurturer and a great knowledge base to learn from.

I've been told that I am a great teacher. And mortgages are what I know best!

First Time Homebuyers have many questions. Home financing can be a sea of confusion. "Where do we start?" "What do we do first?" "What is the process?"

When a First Time Homebuyer is beginning the homebuying process, these are the questions I get asked most often.

Here is a list of the most important things to do NOW to be prepared for pre-approval and getting that mortgage for your first home:

Is your credit good? If you have concerns, call me and let's take a peek. An action plan may be in order and I can help with correction, building new credit or re-establishing credit due to a "not-so-good" credit history.
If you have had any job gaps, be prepared to write a letter of explanation as to the reason for the gap.
If you have experienced credit issues in the last 12 months, be prepared to write a letter of explanation.
Get these documents in order: 2 years most recent W-2's; 30 days most recent paystubs; 2 months most recent bank statements (including retirement account statements); 2-3 years tax returns if you are self-employed.
Down Payment: Where is your down payment coming from? Your own funds? If so, your bank statements (as noted above) will be sufficient documentation. Gift money from parents? If this is the case, tell Mom and Dad to hold tight. Do not exchange any monies until we have talked. There is a clear process of documenting gift funds. I can help you do this the right way!
Pre-approval: Do not start shopping for a home until you have been pre-approved for financing. A seller will not give you the time of day if you put an offer on a home without being pre-approved. A pre-approval is as if you are saying, "Mr. and Mrs. Seller, I am ready, willing and have the ability to finance the purchase of your home."
Find a great real estate agent to represent you. As a buyer, you do not pay a dime for their service. Use a Realtor. You need and deserve representation. Don't know any agents? ASK ME! I have been in the business many years and can refer the best of the best.

Not so bad, huh? The mortgage process really can be stress-free and quite simple. With a little organization and the help of a professional, you can be moving into that dream home faster than you think!

Your MN Mortgage Mom

Stealin' the Show in Cottage Grove!

Sherri Sherpy (Mortgage & Investment Consultants) — Thu, 07 Aug 2008 13:26:27 -0500

For nearly 15 years, I have enjoyed this wonderful community. It's great neighborhoods, sense of safeness, friendly people and an overall feeling of peace living here.

And who can forget about the new Culvers moving in! Yummmmm!!

Last evening, I took our puppy, Mic, for a walk (okay, puppy in mind and soul...maybe not so much puppy in size). We stopped along the way to visit with people outside and just enjoyed the beautiful summer evening.

Now, everyone who lives here can tell you how nice our parks are and Mic (puppy) is no exception. He has one particular favorite that we frequent all the time. Well, last night, as in all of our walks, Mic walked patiently...waiting to get to his favorite destination. He knows that when we get there, I will take his leash off and he can run free!

Well, last night was different. There were lots and lots of people at the park. There was a soccer game of small kids. Mic quickly got over the fact that he couldn't run free...better yet! There were kids all over the place! Lots of playmates!

All eyes were on the kids playing soccer...Every parent was cheering their children on...And I thought, "Oh dear, should I turn around and go in a different direction?" I decided to move forward...no one would even notice...I could handle the situation. As we moved through, Mic did not bark, but he so badly wanted to greet his friends. I kept a hold of the leash and as we walked by, I realized all eyes started moving in our direction. The kids stopped playing and the coaches were staring.

"LOOK AT THAT DOG! WHAT KIND IS IT? HE LOOKS LIKE A HORSE! wOW, THAT IS A BEAUTIFUL DOG!"

My fears suddenly turned into large smiles. Mic pranced as if he were a galliant stallion. We both handled the situation like pros. Ane he was very proud. I smiled one last time as we moved on by and thought, "Huh! We just stole the show in Cottage Grove!"

Turn Your Current Home Into a Rental and Buy New? MAYBE NOT ANYMORE!

Sherri Sherpy (Mortgage & Investment Consultants) — Thu, 07 Aug 2008 09:49:54 -0500

Remember the good ole days when a buyer could EASILY turn their current residence into a rental and buy a new home? Well, those days are over. Our lives and our buyers lives just got a little tougher.

There are new guideline changes that became effective Aug 1st that we should all be aware of. The guidelines are listed below, but in a nutshell, here's what it says:

We can still use rental income to "offset" the current mortgage payment, but now Fannie (with Freddie soon to follow) is requiring that the only way to use that rental income is if the property has a minimum of 30% equity. Also, the rental income now has to be documented with evidence of a security deposit and a receipt of that security deposit into the borrower's bank.

No more just getting a 1 year lease!

If we don't have 30% equity, the buyer/borrower has to qualify with BOTH mortgage payments....the current and the new. In addition, the borrower must have 6 months of PITI for BOTH properties in reserves.

Couple of options to consider:

Freddie Mac has not implemented these new guidelines, but is expected to follow soon. This is kind of a "dangerous" option to fall back on, as Freddie could implement the changes tomorrow, 2 weeks, 2 months....we just don't know.
If the loan on the current home is not an FHA loan, we could possibly look at doing the new home as FHA.

Is Your City in a "Declining Market"? Part 4...Is It Over? And What's Saavy Got to Do With It?

Sherri Sherpy (Mortgage & Investment Consultants) — Fri, 30 May 2008 17:00:26 -0500

Recently, Fannie Mae lifted it's Declining Market Policy (word that Freddie is soon to follow). This new update is effective June 1, 2008 for all new underwriting submissions. Yipee! Yahoo! No more declining market hurdles to deal with!

In it's announcement, Fannie Mae will no longer require lenders to make a downward adjustment to LTV (loan-to-value) based on the location of the property. In other words, no additional 5% down is needed because Fannie is not concerned any longer with Decling Markets. It has, however, replaced the policy with a National Down Payment policy which reduces maximum LTV's for 1-unit primary residences:

Fannie Mae withdraws their declining market policy effective 6-1-08
Declining market policy is replaced by a "National Down Payment' policy which reduces maximum allowable LTVs for 1-unit primary residences
95% is the maximum LTV, CLTV, HCLTV for manually underwritten loans
97% is the maximum LTV, CLTV, HCLTV for DU underwritten loans, including MyCommunityMortgages® and Flex mortgages

Pretty exciting, huh?

NOT SO FAST...Don't start the loan submission frenzy just yet...

MI (Mortgage Insurance) Companies are not so quick to follow suit. In fact, they all have their own, internal version of Declining Market/Restricted Market policies. What exactly does this mean? Lenders are basically forced to keep the 5% reduction in place for areas designated as declining market because the MI companies dictate what they will insure and what they will not. On top of that, many lenders have their own internal policies as well, regardless of what Fannie or Freddie decide to implement. There are some lenders who will not open up the threshold, even if the major GSE's have loosened a bit. It is all about RISK.

So what does SAAVY have to do with any of this? If you are a Consumer or Realtor, you'd be miles ahead by making sure you team up with the SAAVY LOAN OFFICER.

The saavy loan officer knows what policies each MI company has in place and how the new Fannie changes are going to affect these guidelines. They also know what the lenders will allow and won't allow, based on their own internal guides.

The SAAVY LOAN OFFICER can get the deals done.

Case in point: Recently a client wanted to refinance his rental property because of a looming ARM ready to adjust. The problem was the property lost equity and was located in a declining market. (Yes, the Twin Cities--Minneapolis/St. Paul-- continues to be hammered with this not-so-wonderful designation.) His LO told him it could not be done. His loan-to-value was too high and the MI company would not allow for it..."You're in a declining market, you have a rental property and you are SOL." His real estate agent got wind of this and told him to give me a call. Maybe Sherri could figure something out for you. Within the hour I had him AUS approved and 13 days later, we all sat happily at the closing table. Why? Because I knew what each MI company is up to and know the guidelines. And I knew exactly what lenders I could take his scenerio to.

Janet Guilbault wrote a GREAT post recently called Romancing the Loan: Learn or Burn, Baby. It's a Different World Now. She talks about this point to a perfect "T".

On a final note, here is a link to one of the most recent lists of declining markets. Enter your zipcode on the far right side of the screen and press "enter". Are you in a Declining Market?

The "Saavy Loan Officer" and MN Mortgage Mom,

Twin Cities Mortgage

Sherri Sherpy (Mortgage & Investment Consultants) — Tue, 11 Mar 2008 11:35:41 -0500

Monday, March 10, 2008

Treasury bonds finally got a much needed break on Monday and long-term mortgage rates reacted favorably.

Even though rates crept up last week, let's put this into perspective. Remember the 80's? (Okay, maybe I am dating myself...yes, I realize that many of you were still in diapers.)

Nonetheless, there were times when 30 year fixed rate mortgages were in the double digits. How about 11%? 14%? Now, that's what I call high.

The good news is that interest rates are still below 7%...considerably below. And although rates may ticker up a bit from time-to-time, the bottom line is that they are still VERY LOW.

Another perspective? When have you been able to buy real estate as low as you can right now??? Here's my point: Don't play the rate game and hold out for rates to drop. You may find yourself in a much worse position as real estate turns around and prices start going back up. The tiny little fluctuations in the rates don't even come close to the financial punishment you'd feel by waiting on purchasing a home when prices begin to rise.

Twin Cities Mortgage Rates

30 Year Fixed 6.375%

15 Year Fixed 6.25%

Jumbo 30 Year 7.75% (paying .75% discount point)

Make it a great day,

Minnesota Mortgage Mom

Twin Cities Mortgage

Sherri Sherpy (Mortgage & Investment Consultants) — Thu, 06 Mar 2008 19:04:08 -0600

March 6, 2008

To all my readers, I want to say thank you for the kind words and shared laughs regarding my stories that I include from time-to-time. I'm glad I can make you smile! Here is my latest...

For those of you who know me, I am a VERY down to earth person. Not presumptuous, not egotistical and certainly not materialistic. Well, I think my oldest daughter may have come from a different mold.

I grew up on a large dairy farm up until I was 16 years old. Certain traditions were instilled and to this day, I am what you call a meat and potatoes kind of gal...everything from scratch, rarely use a recipe for anything and my family is spoiled rotten with good food. The other evening, my daughter came into the kitchen when I was preparing chicken, mashed potatoes and gravy, 7 layer salad and brownies to boot for dinner. She said to me, "Mom, you spend way too much time cooking. It's way too much work and I never want to learn to cook." I said to her, "Well you know what they say, the quickest way to a man's heart is through his stomach." She looked at me as if I were crazy and said, "Who cares about that! The only thing that really matters is the quickest way to MY heart. And that is straght through HIS wallet." Wow, have times changed...Trophy wife in the making? Yikes.

Unfortunately, the fall out continues with more bad news on Wall Street.

Twin Cities Mortgage Rates

30 Year Fixed 6.625%

15 Year Fixed 6.125%

30 Year Jumbo 7.875% (paying 1 discount point)

Make it a great Thursday,

Minnesota Mortgage Mom

Twin Cities Mortgage

Sherri Sherpy (Mortgage & Investment Consultants) — Tue, 04 Mar 2008 16:00:25 -0600

March 4, 2008

I hope you took my advice from Monday and locked your mortgage interest rate. Today has been a bad scene on the secondary markets.

Didn't get in on time while rates were below 6%? Call me and I will see what I can get for you. That's the beauty of a Mortgage Broker. I can shop all day for you! Besides, a second opinion can be very healthy and can often time save you thousands in the long run.

Before I get to today's bad news, I have to share a wonderful compliment that I received on one of my recent blogs. (Okay, so I am bragging a bit! But, gosh! A nice compliment is worth sharing...anyway, it sure made my day.) So here it is:

FOR THOSE OF YOU LOOKING FOR A LOAN OFFICER...SHERRI SHERPY IS ONE OF THE MOST ETHICAL AND KNOWLEDGABLE IN THE INDUSTRY!!!

02/08/2008 08:22 AM

by Paulette Hjelle Ranta

Kind of thoughtful, huh? Okay, off my throne and let's get down to what prompted you to my blog in the first place...

Twin Cities Mortgage Rates

30 Year Fixed 6.375%

15 Year Fixed 5.75%

30 Year Jumbo 7.625%

Make it a GREAT Tuesday,

The Mortgage Mom

Nehemiah's (Down Payment Assistance) Court Victory!!!

Sherri Sherpy (Mortgage & Investment Consultants) — Tue, 04 Mar 2008 09:46:16 -0600

Directly from Scott Syphax, President and CEO of Nehemiah:

Dear Colleague,

I am pleased to announce that Nehemiah was victorious in its litigation against HUD!

Judge Lawrence K. Karlton of the United States District Court for the Eastern District of California upheld Nehemiah's motion for summary judgment. The Court Clerk's Office is directed to enter judgment and close the case.

To be clear, the U.S. Department of Housing and Urban Development's (HUD) rule to ban private downpayment assistance as proposed in the "Standards for Mortgagor's Investment in Mortgaged Property" regulation published October 1, 2007, is permanently set aside.

We are thrilled with the Court's decision to support low-to-moderate income families across the country by ruling against HUD's attempt to ban private downpayment assistance. This is a major and conclusive judgment, leaving no uncertainty that downpayment assistance is a life line to the families that Nehemiah serves. It is heartening to see that the Court's arguments echo our sentiments and concerns. This decision preserves access and supports the use of sensible and reasonable approaches to homeownership for millions of working class families. It is a privilege to continue providing a helping hand to America's underserved families by building both safer communities and financial strength through homeownership. As we have said before, we look forward to working with HUD to support deserving families across the country.

Since May 2007, Nehemiah has led the fight against this controversial rule. Since it was announced, there has been confusion throughout the industry regarding the potential impact of this rule. As the DPA industry leader, Nehemiah took seriously our responsibility to provide you with timely, accurate and responsible information about the events and activities surrounding this issue.

We took action by educating influential people and organizations regarding the truth about downpayment assistance. We asked for our homebuyers and industry partners to help us by voicing their support and the response has been overwhelming. I want to thank each of you for your letters, phone calls and spoken support of Nehemiah throughout this unfortunate situation. Your support has helped raise awareness in Washington D.C. which has increased the dialogue regarding DPA regulation though legislation. We hope to see some positive congressional developments aimed preserving the option of private downpayment assistance for homebuyers. Currently, the Senate is contemplating FHA Reform legislation that will determine the fate of private downpayment assistance programs. Please help us one more time by contacting your Senators to convey your support for downpayment assistance; a very important vote is expected in the next few weeks.

As a reminder, we provide a section on our website called Regulatory Updates where we detail significant issues relating to DPA regulatory and legislative events. Check back for new postings or sign-up to have accurate and timely information delivered to you.

On behalf of the entire Nehemiah team, we look forward to providing you with the same unmatched quality you have come to expect from us for years to come.

Sincerely,

Scott Syphax
President & CEO
Nehemiah Corporation of America

Nehemiah Corporation of America | 424 N 7th Street, Suite 250 | Sacramento, CA 95811
Toll Free: 1-877-634-3642 | (877) NEHEMIAH

getdownpayment.com

Twin Cities Mortgage

Sherri Sherpy (Mortgage & Investment Consultants) — Mon, 03 Mar 2008 14:10:11 -0600

Monday, March 3, 2008

Today has been a quiet day for interest rates. Mortgage rates have remained unchanged since last Friday. However, industry leaders are edging toward a "lock" recommendation, as this week may be prove to be volitile.

My clients ask me every day, "Should I lock or float?" And my answer is this..."Your crystal ball is as good as mine." (Okay, maybe not quite that blunt, but you get my point.)

Our markets have been so crazy and so unpredictable that it is hard for even the experts to get a good handle on things. So when should you lock? When the economic indicators give us reason to believe that rates are going up...When you feel you are not willing to take the risk to float...When you feel good about your new housing payment with the current rate.

Why should you float? Because you can HANDLE the risk.

Twin Cities Mortgage Rates

30 Year Fixed 5.875%

15 Year Fixed 5.25%

30 Year Jumbo 6.875%

Make it a great Monday,

Minnesota Mortgage Mom

Twin Cities Mortgage

Sherri Sherpy (Mortgage & Investment Consultants) — Fri, 29 Feb 2008 21:45:30 -0600

February 29, 2008

It was a good day for interest rates.

Treasuries rallied as the stock market continued to plummet, thanks to a weaker than expected GDP. The economy barely moved and jobless claims rose. All of this "doom and gloom" gave rise to treasury prices and mortgage interest rates celebrated.

And it was about time for a celebration! After two weeks of rising rates, it was good to see mortgage rates make up some of the previous losses.

Twin Cities Mortgage Rates

30 Year Conventional     5.875%
15 Year Conventional     5.250%
30 Year Jumbo                 6.875%

Call me regarding your purchase or refinance today!

Minnesota Mortgage Mom

Don't Make Me Say, "I Told You So!"

Sherri Sherpy (Mortgage & Investment Consultants) — Tue, 26 Feb 2008 14:02:02 -0600

My goodness...yet another trip down the Freddie/Fannie lane...

Why is it so important to contact your database of clients TODAY? Because there are changes coming down...BIG changes and this one is a WHOPPER.

I cannot stress enough to get your 100% buyers to the closing table as soon as possible. With these changes, they may not get that chance (thus, the reason for the subject line above!).

For that matter, call ALL of your clients who are in need of near-future mortgage financing. With the upcoming post-delivery fees, rates are going to be much higher under a variety of curcumstances.

On to business...

Yesterday, Freddie Mac announced wide-sweeping changes to their pricing and product line structure. These are in addition to changes announced previously, and already in place with most lenders. (Fannie has not yet followed suit, but is expected to so that it can avoid buying the loans that Freddie no longer wants.)

Here is a summary of the upcoming changes:

Discontinuing purchases of most mortgages with LTV/CLTV over 97%. What does that mean? They do not want your 100% deals anymore. This is with exception to Home Possible, but ONLY if you have at least a 700 credit score.

50-75 basis point delivery fee for certain credit score and LTV combinations. The revised credit score "buckets" are increasing to: 680-700, 701-719 and 720+. Increased delivery fees mean higher rates to our clients! And what ever happenedd to 660-679? Now those with 680-719 will have to pay higher rates, too??? Uugh!

30 basis point delivery fee for ALL mortgages with an LTV over 80% and a credit score of less than 740. What? And I thought anything over 700 was worth celebrating over!

Discontinuation of Freddie Mac 100 and Alt 97 with affordable 2nds. These are 100% programs. I'm sure we'll see the same thing from Fannie with regard to their Fannie Flex 100% LTV loan.

For loans that receive an A-minus offering, they are increasing the down payment requirement AND increasing the delivery fee to 125-275 basis points. Ouch!

For the complete details, please refer to Freddie Mac's Overview of Recent Pricing and Credit Changes for Sellers.

Now more than ever, we should be contacting our clients. With so many housing options available in our markets and the very reality of underwriting guidelines getting steeper, we need get out and communicate this information to our buyers today. Otherwise, I may be saying..."I told you so"!!!

Happy Selling,

Sherri Sherpy

Minnesota Mortgage Mom

Is Your City in a "Declining Market" PART 3 (And A Cool Tool!)

Sherri Sherpy (Mortgage & Investment Consultants) — Tue, 12 Feb 2008 16:41:57 -0600

Recently I posted 2 articles regarding Declining Markets.

Is Your City in a "Declining Market"?

Is Your City in a "Declining Market"? Part 2

One of the most common questions I get asked by Real Estate Agents and clients is:

"How Can I Tell Find Out What Areas Are Considered A Declining Market"?

Minnesota markets have been hit hard, just as many others have across the country. As of February 1st, the Office of Federal Housing Enterprise Oversight came out with a fresh new list and let me tell you...it has grown significantly!

Here is a very user friendly tool to help you with your own neighborhoods and markets in determining if you are also in this labeled group.

LIST OF DECLINING MARKETS

After you click on the above link, hit CTRL "F" on your computer. Type the zip code into the dialogue box that pops up and click on "next". If your zipcode does not appear in the list, that is GOOD NEWS! You are not in a declining market and do not face all of the new mortgage restrictions.

For a refresher on mortgage restrictions in a declining market, please refer to my first post: "Is Your City in a Declining Market".

Minnesota Mortgage Mom

Sherri Sherpy

St Paul, MN

Comparing Mortgage Lenders

Sherri Sherpy (Mortgage & Investment Consultants) — Sat, 09 Feb 2008 01:25:57 -0600

Mortgages are a science. And for the average consumer, mortgages ARE rocket science.

Without "being in the industry", how does one compare a Mortgage Lender to the next? For that matter, where do you even begin?

With the Good Faith Estimate

Ask for it, request it and heck, demand it if you have to! If your lender doesn't readily furnish you with a completed Good Faith Estimate, run and run fast. Am I clear on this point? If you don't get the GFE (Good Faith Estimate), DON'T use that lender.

Interjection: Now I wouldn't recommend picking up the yellow pages and calling the first AAA or Acme Mortgage company on the list. Rather, begin your search by asking friends and family who they would recommend for a loan officer. Get a referral! What are their credentials? How long in the business? What do past clients say about him/her? If you are lucky enough to get a great referral and you begin building a relationship of trust and confidence right from the "get-go", you may not even have to look any further. You've just been blessed to work with a true professional with your best interests at heart.

However, if blessings aren't knocking at your door, it's time to get to work and start shopping. Which brings me back to the GFE.

Once you get a couple in hand, actually comparing them can be a sea of confusion in and of itself. I firmly believe that knowledge is power and that power brings about a more educated consumer with the ability to make educated decisions. Deciphering the GFE can be a bit overwhelming, but with these tips, I believe I can uncover some of that mystery.

(Disclaimer: I only originate loans in MN and WI. Closing costs can vary by state. Some of the items below may or may not apply to you. Refer to your local Realtor, Title/Escrow Company or Mortgage Bankers Association to find out fees customary to your state.)

Lender Fees

Origination Fee: 1% of the loan amount...typical fee charged in MN and WI.

Discount Points: Are you buying the rate down? If not, you may want to find out WHY you are being charged any discount points.

Appraisal Fee: Yes, if you are buying or refinancing a home, you will most likely be required to get an appraisal.

Credit Report: This fee varies widely from lender to lender...usually $8-$25. Some lenders don't even charge for the credit report.

Processing and Underwriting Fees: With so many lenders downsizing, sub-contracting these functions of the mortgage process has become more prevalant. And yes, just like everything else, you-the consumer- pays for this.

Commitment/Lender Fee: Covers administrative costs of the lender and varies widely. Secret: This is one fee that can usually be negotiated!

Miscellaneous Broker Fee: If you're willing to pay a "miscellaneous" fee, will you please call me? Cause I've got some land in Timbucktoo to sell you! Don't EVER pay "miscellaneous" fees. Enough said.

Title Company and State Fees

Settlement Fee: This is the fee that the title company charges to close your loan. This is a fixed fee and does not vary by loan amount.

Title Insurance Lender Policy: A fee charged by the lender, but this figure is determined through the title company. A loan officer has no power to raise or lower this fee. Only varies slightly.

Owners Policy: Optional title insurance that you can purchase at closing to protect your own interest in the property against title issues.

Recording Fee: $46 per document recorded. If you get a standard 30 year fixed mortgage, this fee is typically $92.

State Tax Stamp/Mortgage Registration Tax: A MN fee that is fixed. The calculation is .0024 per $1,000 borrowed.

Assessment, Name Search, Plat, Title Exam: These fees are all charged through the title company in obtaining a clear title for your property. These fees can vary.

Conservation Fee: This fee is fixed. Every mortgage transacted in the state of MN is charged a $5.00 fee.

Now, are you ready for an education in real estate taxes and escrow account set-up? (if the above wasn't enough, huh?)

Here's the scoop (keep in mind that this is for MN): The amount of taxes that are collected at closing (and reflected on the Good Faith Estimate) is strictly dependent on the month that you close. So keep in mind, that whenever you get a Good Faith Estimate it is just an estimate. Once you have a definitive month of closing, your loan officer can tell you how many months of property taxes will be collected for your escrow account. In other words, a loan officer does NOT have control as to how much they are going to take out to set up your new escrow account. It is what it is. Although there are laws against collecting too much, enough taxes have to be collected, so that when they become due, there is enough in your escrow account for the lender to pay them.

(Taxes in MN are due on October 15^th and May 15^th. At closing, the appropriate number of months will be collected PLUS a two month cushion.)

So for example, if you close in July, they will collect 7 months of taxes at the closing. On the other hand, if you close in October, they would only collect 3 months of taxes. Why? Because as you are making your monthly mortgage payment, a portion of that payment goes into your escrow account for property taxes. If you close in July, you would have only made 1 payment prior to taxes being due. The lender needs to have 8 months of taxes in your account (6 months that are due and paid on Oct 15^th and that 2 month cushion that I mentioned earlier). So the fast math is: 8 months - 1 from your Sept. mortgage payment = 7 months which needs to be collected at the closing.

"Moral of the story"...when comparing Good Faith Estimates, you cannot compare sections 900 (Items Required By Lender to be Paid in Advance) or 1000 (Reserves Deposited with Lender). As with ALL loan officers, we do not have any control over these numbers. By the way, "Prepaid Interest", line 901 is strictly dependent on the day of the month that you close. If you close on the 31^st of the month, you would then only pay 1 day of interest. If you close on the 15^th of the month, you would pay 16 days of interest (assuming 31 days in the month).

Whew! I am probably as tired as you are overwhelmed. Okay, read it one more time. I promise it will make more sense the second time through.

Sherri Sherpy

MN Mortgage Mom

Just Walk Away

Sherri Sherpy (Mortgage & Investment Consultants) — Thu, 07 Feb 2008 21:35:10 -0600

Unbelievable..............

Is walking away from your mortgage becoming the next biggest trend?

We all know that the sub-prime crisis has had an incredible impact on homeowner's losing their homes due to increasing rates. People just flat out cannot afford the higher payments and are "forced" into foreclosure.

We also know that home values have been plummeting and people cannot even refinance because they owe more than what there homes are worth. Again, being "forced" into foreclosure.

How about the rest of us? HEY, JUST WALK AWAY!

Is this the next socially acceptable, easy to do trend to hit our industry?

Consider this:

Skipping out on a home has been made easier, thanks to the Mortgage Debt Relief Act of 2007. Now the IRS cannot go after you for the dollar difference of your mortgage balance and what the bank sold the home for.
Experian (a consumer credit rating agency) recently reported that many homeowners are choosing to pay off credit cards and other consumer debts before making their mortgage payments. Huh?
People with the capacity to pay their mortgages are now choosing to just walk away because they feel they've lost the equity value in their homes
Heck, this "trend" has even spawned a new company called YouWalkAway.com. For $1,000 the company will help you to ditch your mortgage!

I don't know...I'm worried about the continued declination of home values from an ever increasing rate of foreclosures. I'm worried about people and their growing attitudes of "just walking away"...it's the easy and acceptable thing to do. I'm worried about the long-term affects on our economy, banks, lenders and the entire real estate market.

I can't yet see the light at the end of the tunnel on this new phenomenon and that just plain makes me WORRIED.

Sherri Sherpy

MN Mortgage Mom

Need Help Explaining the Recent Fed Cut?

Sherri Sherpy (Mortgage & Investment Consultants) — Fri, 25 Jan 2008 12:22:36 -0600

If your clients are inquiring about the Federal Funds Rate cut on Tuesday here is some information that can help you explain what it is and how it does/doesn't affect mortgage rates.

1. When the Feds cut the Federal Funds Rate, it does not mean that they are cutting mortgage interest rates. The Federal Funds Rate is the interest that banks charge each other, it has nothing to do with long term mortgage interest rates (however, it DOES affect short-term rates like those who have a home equity line of credit). Can a change in the Fed Funds Rate affect mortgage interest rates? Yes...indirectly. I all depends on how Wall Street reacts and responds to the change. If investors start buying up groves of stocks, mortgage interest rates will go up. Conversely, if investors start dumping money into bonds, mortgage interest rates will go down. Just as we have witnessed in the last 6 months, the Feds cuts have had both a negative and positive effect on mortgage rates.

2. If you really want to get a "read" on mortgage interest rates, watch the 10 year treasury bond. Mortgage rates are closely tied to this bond's performance. When the price of the bond goes up (meaning investors are dumping money into bonds, thus driving the price up), mortgage rates will go down. On the other hand, when the treasury bond's prices fall, mortgage rates will go up. In the last 36 hours, the 10 year treasury bond price has TANKED and we saw the effect of that...mortgage rates sky rocketed. Why? Because investors were buying up stocks and the stock market regained strength, sending mortgage interest rates up.

Keep in mind, that while the Fed determines the fate of short-term interest rates, they do not directly call the shots on long-term interest rates (what you might pay on a 30-year fixed loan). Instead, long-term rates are determined by investors who buy and sell bonds in the bond market, which changes daily. The Fed funds rate is an indirect factor in the big picture of determining long-term rates, but not as large a part as many people think.

On the flip-side, however, the Fed cut also means you're now making less on your savings. In other words, if you have a savings account, money market account or CD, you're earning less in interest on your money.

Hope this helps!

MN Mortgage Mom

Is Your City in a "Declining Market"?? PART 2

Sherri Sherpy (Mortgage & Investment Consultants) — Wed, 16 Jan 2008 10:21:27 -0600

Yesterday, Jon Zolsky asked me how he could find out if his area (Daytona Beach, FL) is also in a Declining Market. On my previous post, Is Your City in a "Declining Market"?? I talked about the fact that Minnesota has just been added to that glorious roster. Yes, I am being quite sarcastic, as this designation brings us tighter lending restrictions, per Fannie/Freddie guidelines, making it harder to offer mortgage products at maximum LTV and severe scrutinization of appraisals.

This is a Great question! As agents and mortgage professionals, we should all be aware of how our local housing markets are performing. You can use this information to better serve our buyers and counsel them on mortgage restrictions due solely out of the current, local market conditions.

It can also serve to counsel your sellers on correct and intelligent pricing of their homes! Recently, I spoke with an agent who was dealing with a seller who absolutely refused to lower their price. The home has been on the market nearly 120 days. I recommended doing another CMA. Here was my point...even if the seller is LUCKY enough to find a buyer who is willing to pay the current price, the appraisal may not even support that price. In a Declining Market, as we are in Minnesota, the appraisal will go under the microscope...underwriters are LOOKING to find things wrong with it...it will go to a Desk Review and it darn well better pass or the deal is killed.

So how do you find out if your state, county or city has been "labeled"? Here is a good place to start:

Office of Federal Housing Enterprise Oversight

In addition, click on the link Black List. This is a list that a prominent lender has regarded as the soft, getting bad and worst markets in the country.

To answer your question, Jon? Yes, unfortunately your market has been "labeled", too. Join the club of declination!

So what's the good news in all this doom and gloom? Call your sellers with new ammo...get those prices reduced and get them sold...Also, if you have not reached out to the First-Time Homebuyer community, you're missing the boat. No, you're missing the Titanic. This is a wonderful opportunity for first timers to snatch up a great deal. And from a mortgage standpoint, FHA, VA and Rural Housing is stronger than ever!

Happy Selling in this CRAZY, CRAZY Market!

Is Your City in a "Declining Market"???

Sherri Sherpy (Mortgage & Investment Consultants) — Tue, 15 Jan 2008 23:31:38 -0600

There has been much disturbance currently about the consequences of the designation of Minnesota and the 11 county Twin Cities Metro area (as well as Pierce and St Croix counties in WI) as a "Declining Market". Yes, our state recently "earned" that label. Along with this designation comes more challenges for Loan Officers, Buyers and the entire Real Estate Community.

We are now faced with further guideline tightening and LTV restrictions. Lenders are looking at us like we are the plague (okay, that is a bit of an exaggeration) and every appraisal is scrutinized under a microscope.

Is your state, county or community also falling into a declining trend? This is going to become critical. We may all need to address the potential anxiety out there and provide expertise to help our home buyers and educate them on what their local housing market is facing and the loan options that are available.

With the additional attention and focus on the sub prime crisis and problems with Countrywide/BofA etc. there is a lot of emotional energy being churned up throughout the marketplace and RE industries. The emotions are reacting to a situation that makes a difficult set of circumstances even a bit more challenging.

However, there are clear opportunities right in front of us. We can still get the job done with FHA, VA and Rural Housing and, in many cases, the FLEX conventional programs. True ZERO down loans will be harder to do, but we can accomplish nearly the same thing with these other products. Optimism and expertise will help our buyers get the job done.

In a nutshell, here are the changes that are affecting markets that are declining:

LOAN-TO-VALUE RESTRICTION: The basic change involves an increase in downpayments by 5% in declining areas. Loan products, which typically allow for 100% financing, will now need 5% down (95% LTV). Loan products now at 95% LTV will require 10% down and an LTV of 90%. See this link, from Fannie's website, which explores these changes in more detail: https://www.efanniemae.com/sf/guides/ssg/relatedsellinginfo/pdf/declmktsmaxfinfaq.pdf

APPRAISALS AND VALUATION: More detail on valuation and the nuts and bolts of this designation: https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2007/0722.pdf

MIDWEST BEING HIT HARD: This is a general information article about this issue: http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=20071217&id=7951026 I wonder about the ranking of Minnesota in third place here, I think the losses in Florida and California far exceed ours, but Minnesota losses are more widespread...

Where is the optimism? Well, we are seeing more activity (Minneapolis and St. Paul) among borrowers seeking to get started in the home buying process. That is good, very good. Moreover, this whole environment means that Loan Officers who can sell, articulate, and close FHA loans will be much more valuable. Now is the time to ensure LO's are knowledgeable and experienced! The landscape of mortgages is changing rapidly and there will be no room for those that do not educate themselves and become EXPERTS in the loan programs that will prevail in this market.

FHA will be the best option very soon. I am already seeing this in almost every pre-approval I do. We need to emphasize how, with some family gift money and seller paid costs, buyers can get into their new homes with comparable financial impact and out of pocket funding as before.

GET EDUCATED, STAY ON TOP OF YOUR MARKET AND MAKE SURE YOU HAVE PARTNERED WITH A GREAT FHA APPRAISER. WE REALLY CAN SURVIVE THIS HOUSING MARKET STORM!

UPDATE...Be sure to check out more great information and the Black List in Is Your City in a "Declining Market" Part 2. Want to check an area by zipcode lookup? Check out Is Your City in a "Declining Market" Part 3.

Poor Santa! (A Little Satirical Humor)

Sherri Sherpy (Mortgage & Investment Consultants) — Thu, 20 Dec 2007 14:14:21 -0600

Have a Terrific Holiday Season,

Sherri Sherpy

MN Mortgage Mom