borrower: Boost Your Credit Score Without Paying Off Debt ... - 08/29/08 05:43 AM
As most of you know, credit scores range from 300 to 850, and lenders place a significant amount of weight on the score when making lending decisions. Consumers that score over 700 are typically charged lower rates than normal, while those under 600 are charged higher than normal rates.If you haven't … (0 comments)
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borrower: FHA boosting mortgage insurance premiums - 08/28/08 06:53 PM
FHA has made a remarkable comeback in the last several months. Many of the creative home loan products that fueled the recent boom, especially those under the banners subprime and Alt-A, are rapidly being swept into the dustbin. FHA has stepped into the vacuum, offering low down payment options to borrowers … (4 comments)
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borrower: Is Your Title Company Relationship Really Working For You? - 08/26/08 12:36 PM
If you are still originating loans in the mortgage industry, there is no doubt you have a relationship established with a title insurance company. How are you choosing your title company? What sets them apart from other providers you have used in the past? How do they help you create … (0 comments)
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borrower: What Your FICO Score Says About Your Chance Of Delinquency - 08/12/08 11:55 AM
In follow up to my blog regarding the importance of FICO scores, here is very helpful information that was provided by Max Popov of Constellation Capitol (303-596-5830). This graph of FICO scores will help put things into perspective. It shows the effect of your FICO scores and how that information is interpreted by Lenders … (0 comments)
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borrower: Fannie Mae makes news with Alt-A adjustments - 08/09/08 08:38 PM
Fannie Mae, the giant player in the secondary mortgage market where it buys loans and either keeps them in its own books or packages them for resale, just announced a hefty second quarter loss of $2.3 billion. A loss was expected but this was much more than what experts had anticipated. … (18 comments)
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borrower: Don’t Get Scammed with an Advance Fee when trying to save your home from foreclosure! - 08/09/08 01:59 PM
There is no such thing as a legitimate advanced (miracle) fee to save you from foreclosure! There have been multiple thousands of foreclosures in California since from 2007 and 2008. Unfortunately some unscrupulous scam artists have taken advantage of vulnerable homeowners facing foreclosure. At risk are homeowners who either want to stay … (1 comments)
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borrower: 4% 50 Year Mortgage Solution - 08/06/08 07:14 PM
Could we fix the sub-prime mess by letting homeowners roll their 7 percent sub-prime 30 year mortgage into a 50 year 4 percent mortgage? What about just letting them keep the 30 year mortgage and reducing the rate to 4%?
A pretty normal short sale in Key West Florida is a mortgage on … (0 comments)
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borrower: WHAT IS MORTGAGE INSURANCE? - 08/02/08 08:44 PM
Mortgage insurance, simply put, is insurance for the lender which insures the lender against a borrowers default on their mortgage. If a borrower defaults on his or her mortgage, then the mortgage insurer pays the balance owed to the invester who owns the loan. Mortgage insurance is not he same as home owners … (4 comments)
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borrower: HOEPA Home Ownership and Equity Protection Act - 07/30/08 08:36 PM
The Federal Reserve approved HOEPA which amends Regulation Z Truth in Lending requirements. The new rules take effect on October 1, 2009, except for the escrow requirement, which will take effect in 2010. Regulation Z has protects people from unfair and deceptive predatory lending, but NEW to the mix are the … (0 comments)
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borrower: The Borrower's Prayer - 07/29/08 11:12 PM
Our lender, whom which we owe.
Oh, how much we owe!
The bills will come,
The monies all gone, this mortgage we should not have had.
Forget this debt, as we forgot our payments,
Do not deliver us to the courts
Or send us into foreclosure.
We would sell, but the … (2 comments)
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borrower: Housing rescue bill almost a reality - 07/24/08 11:59 PM
Washington has been hard at work for a while on this huge housing rescue legislation - it'll provide $300 billion to distressed homeowners who face a possible foreclosure - and it passed the House this week. Once it gets the blessings of the Senate and the White House, it'll become law, … (14 comments)
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borrower: Short Sales , Are they Good for the Lender or the Homeowner? - 07/19/08 02:47 PM
Short sale (real estate)
In real estate, a short sale is when a bank or mortgage lender agrees to discount a loan balance due to an economic hardship on the part of the mortgagor. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, … (0 comments)
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borrower: New mortgage lending rules from the Fed - 07/15/08 11:08 PM
The revered Fed is taking steps to streamline how lenders go about making higher-priced home loans, higher-priced by the way is another way to say subprime, to borrowers. These guidelines are intended for the entire spectrum of mortgage lenders and not just for those under the Fed's regulatory umbrella. As of … (10 comments)
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borrower: How's your FICO? - 07/14/08 01:12 PM
In today's increasingly automated society, it should come as no surprise that when you apply for a mortgage, your ability to pay can be reduced to a single number. All the years you've been paying your mortgage, car payments, and credit card bills can be analyzed, sliced, diced, spindled and mutilated … (2 comments)
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borrower: Are mortgage borrowers well informed? - 07/05/08 09:22 PM
At first look, the foreclosure epidemic that is currently roiling the home loan industry is clearly pointing in the direction that a good portion of buyers are relatively unconcerned about the mortgage program they signed for and that's why they are now in distress. The number of foreclosures, however, is only … (14 comments)
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borrower: Interest Rates - When is the best time to lock? - 07/01/08 12:11 PM
When it comes to mortgage loans and interest rates, it's never a good idea to gamble. That's why I typically advise my clients to lock in an interest rate at the earliest opportunity. This is just one step of the standardized system we have put in place to ensure the best … (0 comments)
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borrower: Countrywide faces more challenges - 06/27/08 12:19 AM
The one-time king of the hill of mortgage lending is now being continuously hounded by lawsuits from just about all corners of the spectrum. Company shareholders, employees and borrowers have already filed a pile of legal action against it and to make matters worse several states just now decided to join … (20 comments)
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borrower: Senate housing bill on mortgage industry draws fire - 06/18/08 12:02 AM
U.S. Senate has been working for a long time on a wide-ranging housing legislation that should spell a lot of relief to the battered mortgage industry. Their intentions are certainly sincere, but sometimes they just get too eager to find solutions, hoping to fix everything in a matter of months. Which … (6 comments)
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borrower: Obtaning a Loan to Buy or Sell a House - 05/21/08 09:15 AM
Some people are unable to close a transcation. Buying a house is getting difficult? In the past lenders offered loans to borrowers with not so good credit and lower incomes, borrowers were able to buy a house, lenders were making a lot of loans, borrowers bought a house by getting a subprime loan; … (5 comments)
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borrower: What is REO? - 05/07/08 11:23 PM
What is REO? Here's one for the longtail and a sort of WIKI entry to my BLOG!!!In any business it is hard not to slip into the industry vernacular and forget that our audience may not really be following. REO is an acronym for Real Estate Owned. Here in Simi Valley and … (2 comments)
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borrower: Jumbo, Dumbo, Mumbo…. - 04/30/08 07:36 PM
-WELCOME TO MY WEDNESDAY MIND-
According to Wikipedia® the definition for a Jumbo Mortgage is: a loan amount above the industry-standard definition of conventional conforming loan limits.
And according to Dione Sage (that's just me) a Jumbo Mess is defined as too many people trying to pass rules to "stimulate" the economy and … (7 comments)
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borrower: Short sale can be a headache this big - 04/21/08 09:33 PM
Mortgage foreclosure is something that isn't advantageous to have glaring at you from a credit report. It has a large negative impact on FICO's computations and can make future credit very costly to obtain, if it's available at all. Before a distressed homeowner resorts to that route, another option has increasingly … (14 comments)
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borrower: The Capital Market Correction - Painful But Necessary - 04/21/08 03:25 PM
While the recent credit crunch has certainly extend the nationwide downturn in housing, the much needed correction in unscrupulous lending programs and practices should set the stage for a much healthier and sustainable growth trajectory in residential real estate over the long term. The painful medicine in the short term, however, is a lack of confidence … (0 comments)
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borrower: Mortgage walkaways face unkind future - 04/20/08 10:42 PM
The tough real estate market gripping large sections of the country has incubated multiple trends and one of the more noteworthy of them is the mortgage walkaway. This is where a distressed homeowner or an out-of-luck investor decides to cease loan payments and at some point later on hands in the house … (2 comments)
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borrower: Rate projection for April 17-23rd - 04/18/08 10:37 AM
Yesterday the market was not for the faint at heart, but pricing remained almost unchanged from the prior day. As the week trend is viewed, rates increased by about .25 to rate. Here's a prediction for the next week. So quick pre-qualification and timely locking of the rate is essential … (0 comments)
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borrower: FANNIE MAE/FREDDIE MAC Agency Shortcut Mortgage Program Eliminated - 04/04/08 10:07 AM
Effective for all registrations after Friday, April 4th, another lender is eliminating the Agency Shortcut Mortgage program.All Agency Shortcut mortgages must be registered no later than Friday, April 4th. We will not accept any registrations on the Shortcut program after this date. There is no lock cut off date as of … (1 comments)
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borrower: Overview of Congressional Action on Mortgage Foreclosure - 04/04/08 12:03 AM
I thought it may interest some of you to review what has been going on in the United States Congress regarding Mortgage and Foreclosure law and issues in the last few months. Of these seven mortgage-related Acts listed below, only one appears to have passed. Since Realtors must be licensed, it makes sense to create a national mortgage … (4 comments)
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borrower: Mortgage Financing and Realty is AWESOME!!!!!!!!!!!! - 04/01/08 10:15 PM
Residential Mortgage Financing is changing everyday. Home prices have dropped and rates are at record lows. If ever there was a time to BUY, BUY, BUY it seems to be now. I have had to partner up with community banks to help facilitate my investors rapid acquisition of residential properties. National … (0 comments)
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borrower: Reverse mortgage choices multiply - 03/23/08 12:09 AM
The still little talked-about reverse mortgage option is fast becoming a household word. It only makes up less than 1% of the huge overall home loan market that right now stands at around $10 trillion, so it's no wonder. In the coming years it'll take a larger bite out of that … (8 comments)
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borrower: Mortgage industry faces more reforms - 03/16/08 06:15 PM
A high-powered economic panel has been meeting under the direction of the U.S. Treasury Secretary to seek solutions to the current mess in the mortgage and overall credit markets. The task is difficult, of course, because of the complexity the financial segment has grown into over the last several years. But something … (8 comments)
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borrower: The return of the ARM - 03/08/08 01:09 AM
The Adjustable Rate Mortgage, or ARM, lost much of its edge over the 30-year fixed in the last few years. Things actually got so tangled up for a couple of weeks in 2007 that the 5-year ARM, or 5/1 ARM, the most sought-after of them, demanded a higher interest rate than … (2 comments)
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borrower: What advice should you give in these turbulent times ?? - 03/07/08 09:40 PM
I think it is safe to say that the recent market conditions are something most of us have never witnessed in our lifetimes. For those of us in the mortgage and real estate industry's, it's been pretty scary since August of last year. I've had a number of friends, relatives and … (2 comments)
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borrower: Mortgage lenders and new "redlining" - 02/19/08 09:35 PM
The nation's home loan companies have been battling deteriorating housing market conditions for some time now and that has caused severe losses for many of them. Property values are dropping in several areas and borrowers in these markets increasingly face the threat of foreclosure as their exotic ARMs reset higher and … (10 comments)
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borrower: Mezzanine Loans - 02/12/08 08:26 PM
Acquisition, Construction, Restructuring and Refinancing Mezzanine Loans LOAN AMOUNT: $500K and UpPlease provide information relevant to property type: Brief statement of the prospective commercial loan request (including loan amount, sources and use of funds, ‘as-is’ value, complete’ value, budget, and exit strategy). Brief description of the mortgaged property including location, square … (1 comments)
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borrower: Benefit From Low Commercial Real Estate Loan Rates - 02/09/08 11:09 AM
Acquiring or buying a property for commercial purposes involves huge funds and hence borrowings play a key role in real estate business. Even if there is sufficient finance at hand to own a property usually one prefers to borrow as the surplus money can be used for other business purposes. Cost … (0 comments)
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borrower: Woodland Hills California Real Estate - Short Sale Process - 02/05/08 06:10 PM
In woodland Hills Ca. like in other parts of the country there are short sales, this is the first blog in a series of blogs which will explain what you can expect when you make an offer on a property that is selling in a short sale.
The short sale process can … (1 comments)
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borrower: Working in Harmony-Part I - 01/29/08 10:23 AM
Working In Harmony-Part I
Loan Officers, Mortgage Brokers and Loan Processors
Do you work with Notary Signing Agents either directly or indirectly, or are you thinking about working with Mobile Loan Closers for Loan Signings? I have some tips and pointers that will enable the loan signing process to go as smoothly as … (2 comments)
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borrower: HOPE NOW-Lenders and Borrowers 12/07/2007 - 12/07/07 01:17 PM
HOPE NOW-Lenders and Borrowers12/07/2007
American Securitization Forum, which represents companies that issue mortgage backed securities, as well as investors, loan servicers and rating agencies, issued a 34 page document outlining guidelines for servicers to follow in streamlining refinancing or loan modifications on adjustable rate mortgages that are scheduled to adjust in the next 2 1/2 … (0 comments)
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borrower: Now, Who is Helping Who? ... and a Few more Questions that need Answering... - 12/06/07 09:05 AM
We knew there would eventually be some sort of government intervention into the current housing situation in this country. Just this week the Treasury Secretary, Harry Paulson, proposed a plan that would either freeze or fix the rates on adjustable rate mortgages (ARM).On the surface, this appears to be good for … (6 comments)
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borrower: Real Estate professionals are "high risk borrowers" according to some lenders - 11/30/07 11:36 AM
I was shocked to hear from my loan office at a national bank, that REALTORS pose a high credit risk to lenders.
This came after I asked her what else the bank wanted from me to give me an equity line. My credit score is over 700, even with the equity … (5 comments)
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borrower: Look into your lifestyle before buying a home - 11/13/07 08:46 AM
Look into your lifestyle before buying a homeYour lifestyle doesn't only affect the type of house you can buy but also how much you can afford to buy. Recently, this article from Washington Post "Too Rich To Be Poor-Mouthing" highlighted that even couples earning just over $200,000 can still, sort of struggle … (5 comments)
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borrower: Jumbo mortgages still in short supply - 11/04/07 02:01 PM
While the subprime sector has been everyone's punching bag for quite some time now, another sector has toiled with its own struggles largely unnoticed from the public eye. The jumbo loan market plays an important role in the wide mix of mortgage products, especially in the perennially high-cost areas like California. … (6 comments)
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borrower: Subprime mortgage mess reaches deeper - 11/03/07 06:32 PM
It appears that every month a new angle of abuse bubbles to the surface in the continuing saga of the subprime tangle. Haven't you already seen like fifty of them? Regardless, there is more. The well evidently is deep. This time it's the appraisal segment's turn to get caught in the … (12 comments)
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borrower: ECONOMICS 101 - SHORT SALES - WILL THE LENDER SHARE THE LOSS - 10/31/07 10:18 PM
I had just too many borrowers that "should have known better" in the office this week - so I feel very conservative just now - just to the right of Bill O'Reilly.
We do a lot of short sales in my law and title agency offices. They come in from all sources - … (1 comments)
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borrower: Countrywide and NACA are now dating - 10/26/07 10:53 PM
The country's largest mortgage lender has received plenty of bad press lately, most of it the result of questionable business practices. Its subprime loans are defaulting in record numbers, it has well-documented liquidity problems and then it appears to be stonewalling in helping borrowers facing foreclosure. It isn't fun being the … (14 comments)
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borrower: Countrywide Reworks $6.2B in Loans to Help Borrowers with ARMs - 10/25/07 01:57 PM
"Workouts"...You may start hearing this term more and more. A workout is when a lender and borrower work out a new arrangement for an existing loan. For example, a borrower is behind on their mortgage payment because their interest rate just went from 5.5% to 7% and their monthly payment increase by several hundred dollars. … (0 comments)
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borrower: More mortgage payments made on time - 10/22/07 10:29 PM
It's uplifting to find a wisp of good news here and there in the otherwise cluttered collection of bad news that you keep reading in the national media about the mortgage and real estate industries. Positive stories have lately had a really hard time finding headline space for themselves.
According to First … (0 comments)
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borrower: Subprime mortgage assistance inconsistent - 10/16/07 06:23 PM
Apparently what has been done so far to help subprime mortgage borrowers hasn't been enough because the Treasury Secretary recently held a press conference to announce the birth of HopeNow. It's a group of institutions that are closely involved in the mortgage origination business. The membership includes a few housing counseling … (4 comments)
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borrower: New ChoicePay Option ARM - Friend or Foe? - 10/15/07 02:29 PM
When you're looking to minimize your monthly mortgage payment, the ChoicePay Payment Option Loan gives you the power to do more with your money. With a low initial Minimum Payment option, you can make your monthly mortgage payment fit your ever-changing cash flow needs on a month-to-month basis. This option not … (0 comments)
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borrower: Mortgage mess rescue discussions continue - 09/21/07 06:29 PM
Washington is in high gear again, after a long hot summer, immersed in talks about how to deal with the current mortgage dilemma. The latest round this week involved the Congress and some of the key players in the government, like the Fed chief Bernanke and Treasury Secretary Paulson.
The flavor … (6 comments)
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borrower: Brighter side of mortgage foreclosure news - 09/19/07 12:04 PM
The recent headlines about the foreclosure stats compiled by the Mortgage Bankers Association, or MBA, informed the world that the amount of loans sliding into trouble is the highest ever for this survey. It was started in 1953, a few moons ago. Numbers like that will make you wonder what will … (2 comments)
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borrower: Mortgage servicers urged to help stem foreclosures - 09/04/07 08:09 PM
Federal and state regulators are busy at work. They came out again today to try to charm the mortgage industry into working with at-risk homeowners to help them avoid foreclosure. Their main focus is on the subprime borrower who acquired a home loan with a spotty credit record. This time they … (2 comments)
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borrower: Help Your Borrowers - Have Their Loan Signed at their Home - 08/31/07 06:31 PM
When people think of a Notary Public they don't necessarily think mobile. A regular notary public works from an office that you travel to in order to have your document notarized. Usually, they work out of mail box stores, copy centers, banks and travel agencies.A Mobile Notary Public travels to you. … (7 comments)
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borrower: Late on your mortgage payment? Talk to your lender! - 08/29/07 04:15 PM
As result of the changes that have been occurring in the mortgage industry over the past several months, many homeowners are finding it hard to keep up with their home loan payments. Delinquency and foreclosures are widespread, creating a situation that affects both the consumer and the lender.
We know many people … (6 comments)
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borrower: Subprime home loans have many users - 08/27/07 06:43 PM
The word subprime mortgage has lately been one of the most used words in national headlines. To a point that you get vertigo seeing it. It has been featured in the print media, on the Internet, on TV, across the lips of consumers, on talk shows, just about everywhere. It has … (5 comments)
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borrower: From mortgage troubles to lawsuits - 08/20/07 10:14 PM
This development was entirely predictable. It'll eventually be a standard operating procedure when things like this go down. A few years ago a whole bunch of people were so excited about making money in residential real estate that they couldn't stand still. Then when the market turned sour, they froze on … (6 comments)
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borrower: Subprime mortgage an innovation that will last - 08/15/07 04:38 PM
What is everybody talking about in the office today? Or in the gym between sets? Or out on the golf course riding in the cart? They are talking about the health of the mortgage industry. That's what they're doing. And how the subprime loan started it all and what it spawned … (6 comments)
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borrower: Jumbo mortgage rates shoot up - 08/07/07 11:02 PM
In a full-size surprise, non-conforming, or jumbo, home loan rates for a 30-year fixed took off just last week, climbing from about 6.875% to around 8%. Wells Fargo made the initial move and soon other lenders followed. Jumbos are loans over $417,000. Mortgages below that limit are called conforming and are … (4 comments)
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borrower: Consumers confused by credit scores - 08/07/07 12:36 PM
Originally posted on Home Financing News.
A new survey relating to credit scores has been released, and the results have worried some in the financing sector. The survey, commissioned by the Consumer Federation of America and Washington Mutual, focused on just over 1,000 adults in America, and determined that the public's … (0 comments)
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borrower: Apples to Apples, Blog to Blog - 07/30/07 02:02 PM
It's not often when people are critical or curious that they stop and take the time to probe further. We are all very busy with work, family and everything else that it's much easier to make assumptions and to place things (in this case my company) into "categories" based on what … (2 comments)
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borrower: Countrywide is Singing the Default Blues - 07/28/07 09:32 PM
Countrywide is Singing the Default Bluesby John Occhi, Hemet REALTOR® Mission Grove Realty
I just found a short article in a newsletter I subscribe to (Real Trends) that is reporting that Countrywide is singing the default blues.
According to the article even their good credit loans are increasing the trend towards default … (4 comments)
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borrower: FHA: From Then to Now - 07/13/07 04:50 PM
Change in the Market
In 2006, mortgage volume was $2.8 trillion- 70% originated by Mortgage Brokers $640 billion in nonprime mortgages was originated. Roughly 23% of the 2006 market n$545b originated by the top twenty-five sub-prime origination companies. Home prices increased exponentially from 2001 to 2006, and now home prices are falling … (2 comments)
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borrower: So ... how much home can you afford? - 07/08/07 07:09 PM
The formulas for mortgage affordability could lead you to disaster. How can you get a better handle on what you really can afford? Thirty years ago, first-time home buyers were often encouraged to stretch as far as they possibly could to buy a house. Back then, that advice made some sense. Today, it … (0 comments)
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borrower: Thinking of Buying a Home? No-Nos before you buy!! - 07/08/07 06:31 PM
Things Not to Do Before Purchasing a Home
No Major Purchase of Any Kind
NO major purchase that would create debt of any kind. This includes furniture, appliances, electronic equipment, jewelry, vacations, expensive weddings...
...and automobiles, of course.
Don't Move Money Around
When a lender reviews your loan package for approval, one of the things they … (0 comments)
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borrower: Mortgage forms too confusing? - 07/06/07 12:10 AM
They apparently are. With the mortgage industry in turmoil thanks to the current influx of delinquencies and foreclosures caused by the subprime mortgage segment, federal investigators have been busy looking for answers to a host of questions. Indeed, they are trying to figure out what to fix. They have been listening to consumer advocates, they … (5 comments)
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borrower: Subprime mortgage rules revised - 07/03/07 06:35 PM
The Feds, in other words the federal monetary system regulators, have been working hard on this for quite some time and at last they can present the final product for distribution. It took a while because they had to listen to all sides on the issue and then merge the more useful … (3 comments)
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borrower: Mortgage foreclosures create friction - 07/02/07 07:18 PM
It's all over the news now that mortgage lenders are working hard to avoid as many defaults as possible, for the simple reason that it's in their best interest. Taking possession of a foreclosed home typically would come at a loss due to legal and other costs and in many cases because the property sold for … (2 comments)
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borrower: The Anatomy of a Dead Deal... - 06/29/07 04:55 PM
[Note: This was sent to a realtor I work with who decided to try and tell me how to do my job. (Implied in the wording of the question she sent me.) To set the background a bit, this is from a deal we were working on from our lead system … (3 comments)
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borrower: Loss Mitigation and the Service Provider - 06/24/07 01:04 PM
The times are definitely changing for mortgage lenders and investors as they realize that they have a very real potential for a flood of REO properties to deal with in Hemet CA and eslewhere. In order to prevent the foreclosure and pending inventory of REO properties, the industry is starting to … (4 comments)
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borrower: How The Foreclosure Process Works – Hanging On To Your Home - Part Three - 06/19/07 12:08 AM
Eric Fleisher Vice President, Home Retention, of Countrywide Home Loans facilitated an informative meeting on June 14th with about 400 local Realtors®. Part One reviewed the typical foreclosure process, Part Two covered the options that are usually available to a borrower who is having difficulties, today we are covering Part Three, … (4 comments)
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borrower: Mortgage lending practices under scrutiny - 06/14/07 06:50 PM
The Federal Reserve Board, or what many just call the Fed, has the rule-making authority under HOEPA, Home Ownership and Equity Protection Act, to look into and amend national mortgage lending practices. It's a big responsibility and now it is conducting hearings on how to adjust some of the current procedures that … (6 comments)
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borrower: Preditory Lending - 06/13/07 06:41 PM
Predatory lending deals with lenders who take advantage of inexperienced homeowners by using a variety of fraudulent tactics to convince the borrower to pay more for the loan than needed. In communities across America, people are losing their homes and their investments because of predatory lenders, appraisers, mortgage brokers and home … (9 comments)
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borrower: Lenders to the rescue - 06/07/07 09:34 PM
The present housing downturn has plunged the subprime lending sector into a less than desirable situation. The soft market is hurting some borrowers who bought late in the boom days with exotic mortgage products and now can't make the payments when the loan rates a resetting. But it also is threatening several financial … (4 comments)
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borrower: Subprime news improve - 06/04/07 05:33 PM
It's still early in the cycle, but there are some signs that the subprime market might be on the mend. Congress, federal regulators and consumer groups are all poking around the business practices of this troubled mortgage market segment, trying hard to pinpoint where exactly the real problems are. But it's taking … (10 comments)
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borrower: Subprime and Congress - 06/02/07 04:13 PM
Washington continues to work on finding a sensible solution to the subprime turmoil. It's taking a while because the situation really is tangled and the easy answers just aren't available. There are so many participants in the subprime market that to legislate smartly from here on out takes a deft hand. … (7 comments)
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borrower: FICO formula upgrades - 05/22/07 04:11 PM
FICO tweaks its secret credit-rating formulas every so often and now they have another one coming up in September. Many of us think that FICO only helps out in the residential real estate business, mortgages that is, but their score carries a lot of weight in other areas, too. Banks offering … (2 comments)
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borrower: Subprime mortgage difficult to restructure - 05/18/07 01:55 PM
As the foreclosure numbers keep climbing for subprime mortgage holders, the lending industry is facing a major dilemma. Congress and others are almost daily making demands that it should work with delinquent borrowers and help them restructure their home loans. It surely would like to do that. It's usually in no one's best … (6 comments)
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borrower: FICO primer II - 05/05/07 03:49 PM
This is the second part on how FICO works. To be able to fully follow the flow of this discussion, it would be to your benefit to first read FICO primer I.
There are three credit reporting agencies, Equifax, Experian and TransUnion, that feed data to FICO. How do these companies get their information … (0 comments)
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borrower: Private mortgage insurance comeback - 05/02/07 04:52 PM
That insurance sector, the so called PMI, almost disappeared during the real estate boom days a few years ago. It wasn't really needed much then. If the borrower lacked down payment, piggyback home loans came to the rescue and life went on. Piggyback typically consists of two loans. For example, 80-15-5 setup … (2 comments)
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borrower: Paying Discount Points On a Loan - 05/01/07 11:16 PM
As a broker on the CCIM track and personal investor, I can't stand the concept of buying points on a loan. Loan points are prepaid interest where you're paying interest upfront in exchange for a lower rate on the loan. If the loan has a 30 year amortization period and the … (3 comments)
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borrower: Nationwide Mortgage Banker - 04/29/07 12:05 PM
I am a Loan Officer with Dream House Mortgage Corporation. We lend in ALL 50 states. As a a Real Estate professional with 25 years in the business, I go the extra mile to get the Borrower approved and make them a CLIENT FOR LIFE.
All types of credit considered, hundreds of … (2 comments)
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borrower: A suitable mortgage. - 04/28/07 05:18 PM
Now that the subprime woes are generating fat headlines across the land, a debate is roiling around what to do about it. One idea that has received a fair deal of attention is the loan suitability requirement. Which means that lenders can only put borrowers in loans that are suitable for … (10 comments)
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borrower: FICO score boost. - 04/27/07 12:30 PM
Mortgage lenders today are setting higher loan qualification standards for borrowers with weak credit files. Since they're facing mounting defaults in the subprime segment, they have to. Now there's another issue to contend with. When they study a credit report, the one compiled by FICO, are they really looking at the … (8 comments)
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borrower: Las Vegas housing in the spotlight. - 04/25/07 11:40 AM
The annual Las Vegas Perspective took place yesterday. It's actually a report that discusses in detail economic, government, demographic, business and lifestyle issues in the valley. A thorough undertaking. It's put together by the Metropolitan Research Association, a nonprofit organization.
One of the main topics of the event was housing affordability. According … (0 comments)
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borrower: STUBBORN/CRAZY BORROWERS PART #2 - 04/22/07 11:59 PM
When I was in residential mortgage as an originator I always make it a point to explain to the borrowers "what to do" and "not to do" when getting a mortgage. I even have a "Do's and Don'ts list" included with my disclosures. But sometimes no mater how hard you try … (6 comments)
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borrower: National homebuilder under scrutiny. - 04/18/07 01:39 PM
This appears to be part of the subprime turmoil. Federal investigators have recently launched a criminal probe into the mortgage lending methods and other financial transactions of Beazer Homes. Several agencies are involved, among them HUD and IRS. They are emphasizing, though, that an investigation alone doesn't necessarily mean there has … (0 comments)
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borrower: Silent second mortgage woes. - 04/17/07 01:47 PM
Here's another intriguing twist to the subprime saga. They just keep on coming, don't they. A silent second can be executed several different ways, but it always means that the first note holder is kept in the dark about it. That's why the term silent second.
The latest trend is that soon after a borrower … (2 comments)
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borrower: Mortgage buybacks the rage. - 04/16/07 12:44 PM
There was very little talk about mortgage buybacks before the year 2006. Why? The real estate market was doing quite well in those days. We all remember that. If a borrower fell on hard times, he could quickly unload the property and make a profit in the process, too. Even a shoddy loan … (2 comments)
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borrower: Subprime bailout? - 04/03/07 12:54 PM
All government levels are hesitant at this point to get involved in any meaningful way. Perhaps that's the correct call. In case there was a bailout, how would that shape up?
In a full bailout of affected borrowers, the banks would also be rescued. Including those that could be labeled the biggest … (0 comments)
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borrower: Subprime solutions. - 04/01/07 04:54 PM
I've recently focused on figuring out how did this subprime mess happen and who is to blame. There's always someone who drops the ball. Or someones. Enough of that. Let's see if we can find a workable solution for it.
Prominent politicians are strongly vouching for the notion that the government, federal and state, should step … (4 comments)
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borrower: Get Mortgage Ready...It Starts with a Plan - 03/27/07 01:03 PM
With the recent happenings in the mortgage industry and the tighter lending requirements in our industry, the big question is...Now What?
"If I can't qualify for a mortgage, what do I do?" Well, first of all, it doesn't mean you are a horrible person or that you can never own a … (7 comments)
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borrower: A Call to Action - Educate Before They Come to Borrow! WAY BEFORE!! - 03/27/07 11:07 AM
One of the true joys in my life is being asked to judge the local and state National History Day competitions. It is a great program for middle and high school students, and while it does a lot to teach them history and historical method, seeing the same entrants grow in … (5 comments)
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borrower: Homeowner bears responsibility in subprime storm. - 03/26/07 07:24 PM
I've written before about the subprime jolt and who some of the culprits are. The real estate investor, better yet the flipper, is one. He feasted early in the cycle on the rapid increase in home prices by acquiring property and then unloading it in a matter of days or weeks for a nice gain. … (0 comments)
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borrower: What is happening with the subprime mortgage market? - 03/19/07 06:42 AM
Whether I am deal with customers here in Tampa, Florida or in Michigan, I am being asked this question on a regular basis..."What is going on with the subprime mortgage market?"
First, what is a subprime mortgage? For anyone who hasn't been in business for the past couple years, it was a great … (3 comments)
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borrower: $1.5 Trillion Worth of 3 & 5 Year ARMs Resetting in 2007 - 02/02/07 04:40 PM
I've written about this before. It is a scary scenario. According to the Mortgage Bankers Association, about $1.5 trillion in adjustable mortgages are due to have their rates reset this year. Now that it looks like the Federal Reserve will not lower interest rates anytime soon, many already cash-strapped homeowners/borrowers will soon see … (1 comments)
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borrower: The Mortgage Accelerator Program - 11/22/06 09:29 AM
Welcome to the United States, Mortgage Accelerator Program (MAP). That must have been a long flight from the UK and Australia. Is there anything that you would like to declare?
Why, yes there is. I have come to the USA to offer home owners a new way to pay off their mortgages. … (16 comments)
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borrower: ARMs - Just in case you wanted to know - 11/18/06 12:29 AM
Adjustable Rate Mortgages (ARMs) have been pretty popular lately in the media, but not necessarily in a good way. This post is not going to address the media or repuation that surrounds these mortgage products. Instead, it is going to inform you, the consumer, of what an ARM is and why … (2 comments)
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borrower: Over Your Building Budget? - 10/27/06 12:41 PM
I get phone calls from homebuilders from time to time that are in distraught. They sold a home that they owned. Took that cash and decided to build their own dream home after purchasing the land and putting the plans together. The plans get approved by the planning commission or other … (4 comments)
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borrower: Tour guides, Rate shoppers and Looky-loos - 09/28/06 08:26 AM
Good morning everyone!
I wanted to throw a couple words up about a part of the business we all have suffered through at one time or another. The indecisive client.
How many Realtors here have played tour guide to that one client that just couldn't make that final step? As a Realtor … (1 comments)
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