Terry L's Florida Mortgage Corner!

Bright Idea!

2008-06-06T07:26:26Z

I'd like to share what I think is a bright idea. I am a Mortgage Broker and was approached about providing lists of foreclosed homes that are currently for sale from the banks and investors I work with. There's a lot out there. These particular Realtor's are incorporating "foreclosure tours" as part of their business. Advertising to investor's and to anyone, the offer to go on these tours and view foreclosed properties every week! What a great idea! They are having great success from not only investor's but many people who have thought about taking advantage of this market and just don't know where to start. Maybe some of you are already doing this, but maybe the idea will help those of you who need a "fresh" goal to focus on!

HAVE A BEAUTIFUL WEEKEND! IN HIS NAME!

The Home Valuation Code of Conduct (HVCC)! Yuck!

2008-05-07T05:07:58Z

Attorney General Cuomo, FANNIEMAE and FREDDIEMAC (housing authorities), entered into an agreement in March of this year called the "Home Valuation Code of Conduct". This "code" does several things, but the most damaging point is stopping Mortgage Brokers from choosing the appraiser or having any contact with the appraiser during the loan process. This "code" say's that the appraisal process will be at the sole discretion of the end lender (yes, the big guys). Let's explore why this is bad for Mortgage Brokers, Appraiser's, Realtors and MOST OF ALL CONSUMERS!

1-Appraiser's will have to join AMC's (Appraisal Management Companies), and give 40% of their fee for the privilege of being included in the AMC. We will be at the mercy of time frames, costs and appraisal procedures of these AMC's. This will end the existence of independent appraiser's! The appraiser's that "play ball" with the lender have work, those that do not, are out of business. At present, if we do not receive prompt and professional service from our appraiser's we can call another one. THE AMERICAN WAY of FREE ENTERPRISE!! Also, forcing appraiser's to join and pay these AMC's, closely resembles a "union" type setup. This will most certainly drive the cost of appraisals up!

2-This "code" also "traps" our borrowers into that particular lender unless they want to pay for ANOTHER APPRAISAL! Currently, we, the Mortgage Brokers, order and own the appraisal during the loan process. Often times, we may switch lenders in the middle of this process, if another lender offer's a better incentive, rate or lower fees. AGAIN, FREE ENTERPRISE! This is why clients come to "BROKER'S", because we "shop" lenders for them. We are not "trapped" into one lender's rates, fee's or otherwise. As Mortgage Broker's, if we do not order and therefore, do not own the appraisal, the whole loan process becomes less competitive and the BORROWERS lose the most. Because a new appraisal would be required to change lenders, borrowers would be discouraged from shopping for the best mortgage deal. Currently, we have the ability to reassign the appraisal to a new lender with no extra cost.

3-Lastly, the large institution lenders gain Power and this creates bias. The large lenders will have the ability to choose which appraiser's stay in business and which ones don't!! Again, talk about breeding corruption! This almost seems like an organized crime structure where a few people at the top call the shots.

WOW!!! PLEASE STOP THIS "CODE"! I understand the theory behind this proposal in that it is believed that as Mortgage Broker's we may be able to exert undue influence of home valuations on the appraiser's that we have built relationships with. But certainly there are far more appropriate safeguards against this that protect free enterprise and preserve independent appraisals. This can only foster competition and lower costs for borrowers.

Responses in protest to this new code were due by April 30th. FannieMae, FreddieMac and Attorney General Cuomo's office were flooded with upwards of 25,000 comments opposing this. This tremendous response came from mortgage broker's, realtors, LENDERS and people that have nothing to do with the business. Way to "step up" people! FannieMae reported their servers shut down over it!

Anyway, we continue to "forge ahead" in spite of the "reformation" of our industry! Have a great day!

Why do I want to consider a 40, "fixed rate" mortgage?

2008-04-25T06:43:18Z

A 40 year, "fixed-rate" mortgage spreads your payment out over a longer period of time compared to the traditional 30 year amortization. This has the benefit of lowering your monthly payments. These mortgages offer a "FIXED" rate for the life of the loan. In the past, a potential home buyer faced with the dilemma of not qualifying for their dream home had very few options to lower the payment to an affordable point. Often times the solution sought was a lower rate mortgage that will adjust according to market conditions after a period of time. Many times home buyers are uncomfortable with an adjustable rate but have had few options if they want to qualify for the home. But a 40 year, "fixed-rate" mortgage may be the perfect solution! Also, a 40 year, "fixed rate" mortgage can allow you to qualify for a bigger home or higher purchase price than you would you would otherwise qualify for. This is especially helpful in areas where home prices are high.

Another use of these mortgages is to refinance home owners out of adjustable rate and "interest only loans". In the recent years, many borrowers opted for adjustable rate mortgages or interest only loans that are now adjusting up! This can leave a home owner in a very vulnerable position. Again, a 40 year, "fixed-rate" mortgage spreads your payments out over a longer period of time and may be the perfect solution for your refinance to KEEP your payment where it is or possibly even LOWER it and have the security of a fixed rate for the life of the loan.

Have a GREAT WEEKEND!

THE REAL ESTATE MARKET IS REBOUNDING!!

2008-03-28T04:21:35Z

Well the news is good again for the Real Estate and Lending industries! Recently, stories have been appearing in many major publications showing Listings are decreasing and home sales are increasing. Specifically, a report from National City Corp together with a financial analysis firm; Global Insight, report listings are 18% lower in February 08' than February 07'.

Also, Home Sales up 22% in February 08' as compared to January 08'. Now these are national averages, so if you're not quite seeing these results in your area, don't despair. The important thing is to see the trend of "recovery"! Economists' for firms such as the ones mentioned above and Moody's financial data are projecting modest increases in home values beginning in 09'.

Sooo, WE HAVE HIT BOTTOM! Now we start the slow crawl up! Interest rates are great, FHA limits were just raised and there is a "glut" of affordable housing on the market. When would there be a better time or more opportunity to be productive in our industry? :)

HAVE A GREAT WEEKEND!

LUCK O' the IRISH TO YA! FEDS CUT RATES AGAIN!!

2008-03-17T08:09:11Z

The feds cut rates again! Fresh and early this morning, we are seeing improvements in the bond market and should see this mornings' rate sheets improving. LET'S KICK THOSE CLIENTS OFF THE FENCE ALL YOU REALTORS! What a time to get out and get a great deal on a home. We have the lowest real estate prices in 4 years and low interest rates. Let's get to it!

First time on Active Rain

2008-03-16T15:58:57Z

Hello!!!! I am new! A real estate agent invited me. Is anybody out there??? We are a Mortgage Company based in Clearwater Florida. The company is called PINELLAS FINANCIAL. Anyway, any pointers from any of you out there on how to have fun with Active Rain and meet some new associates?

First time on Active Rain

2008-03-16T15:58:46Z