Tony D. Howell's Blog

House Flip Results in Rare Find

Tony D. Howell (The best place EVER!) — Thu, 20 Mar 2008 13:13:27 -0700

So I posted this last night, but I think it was a bad time. Let's try again...

Last weekend I was helping a friend clean out the attic in a house he bought to flip. While checking the joists for termites and rot, we found something under the insulation. What we found was this:

A JC Penney catalog from 1977. It's not often blog fodder just falls in my lap, but holy hell this was two solid inches of it, right there for the taking. I thumbed through it quickly and found my next dining room set, which is apparently made by adding upholstery to old barrels:

Also, I am totally getting this for my bathroom:

There's plenty more home furnishings where those came from, however I'm not going to bore you with that. Instead, I'm going to bore you with something else. The clothes.

The clothes are fantastic.

Here's how to get your ass kicked in elementary school:

Just look at that belt. It's like a boob-job for your pants. He probably needed help just to lift it into place. The belt loops have to be three inches long. And way to pull them up to your armpits, grandpa.

Here's how to get your ass kicked in high school:

This kid looks like he's pretending to be David Soul, who is pretending to be a cop who is pretending to be a pimp that everyone knows is really an undercover cop. Who is pretending to be 15.

Here's how to get your ass kicked on the golf course:

This "all purpose jumpsuit" is, according to the description, equally appropriate for playing golf or simply relaxing around the house. Personally, I can't see wearing this unless you happen to be relaxing around your cell in D-block. Even then, the only reason you should put this thing on is because the warden made you, and as a one-piece, it's slightly more effective as a deterrent against ass-rapery.

Here's how to get your ass kicked pretty much anywhere:

If you look at that picture quickly, it looks like Mr. Bob "No-pants" Saget has his hand in the other guy's pocket. In this case, he doesn't, although you can tell just by looking at them that it's happened - or if it hasn't happened it will. Oh yes. It will. As soon as he puts down his matching coffee cup.

Here's how to get your ass kicked at the beach:

He looks like he's reaching for a gun, but you know it's probably just a bottle of suntan lotion in a holster.

How to get your ass kicked in a meeting:

If you wear this suit and don't sell used cars for a living, I believe you can be fined and face serious repercussions, up to and including termination. Or imprisonment, in which case you'd be forced to wear that orange jumpsuit.

How to get your ass kicked on every day up to and including St. Patrick's Day

Dear god in heaven, I don't believe that color exists in nature. There is NO excuse for wearing either of these ensembles unless you're working as a body guard for the Lucky Charms leprechaun.

In this next one, Your Search For VALUE Ends at Penneys.

As does your search for chest hair.

And this -- Seriously. No words.

Oh wait, it turns out that there are words after all. Those words are What. The. F* . I'm guessing the snap front gives you quick access to the chest hair. The little tie must be the pull tab.

Also, judging by the sheer amount of matching his/hers outfits, I'm guessing that in 1977 it was considered pretty stylish for couples to dress alike. These couples look happy, don't they?

I am especially fond of this one, which I have entitled "Cowboy Chachi Loves You Best."

And nothing showcases your everlasting love more than the commitment of matching bathing suits. That, and a blonde girl with a look on her face that says "I love the way your junk fights against that fabric."

Then, after the lovin', you can relax in your one-piece matching terry cloth jumpsuits:

I could go on, but I'm tired, and my eyes hurt from this trip back in time. I think it's the colors. That said, I will leave you with these tasteful little numbers:

Man, that's sexy!

House Flip Results in Rare Find

Tony D. Howell (The best place EVER!) — Wed, 19 Mar 2008 21:53:54 -0700

Last weekend I was helping a friend clean out the attic in a house he bought to flip. While checking the joists for termites and rot, we found something under the insulation. What we found was this:

Child Bankupts Make-A-Wish Foundation

Tony D. Howell (The best place EVER!) — Wed, 06 Feb 2008 13:59:48 -0800

OMG!! This is just horrible! Maybe somebody could fix them up with a loan?

Child Bankrupts Make-A-Wish Foundation

The Lowdown on Your Credit Score

Tony D. Howell (The best place EVER!) — Thu, 17 Jan 2008 18:11:16 -0800

When you receive your Credit Report from your mortgage lender or bank, take a closer look at the information codes and ask what they mean. Below are some basic pointers about the factors used and how they are viewed by lenders.

What Is Credit Scoring?
Credit scoring is the process of evaluating collected credit account and payment history data on an individual in order to objectively determine that persons credit worthiness. The scores, sometimes referred to as FICO scores (invented by the Fair Isaac Credit Organization) are calculated at the very instant that the credit report is generated, and therefore these scores can change from one credit report to the next even within a very short period of time. Scores generally range from 350 - 850 and are intended to inform the creditor of the level of risk they would take by offering credit to that individual: the higher the score the lower the risk level. The credit report is a "snapshot" of the persons credit file at that particular time. By the way, 420 is NOT a good score!

Who Collects the Data?
The three primary collectors of payment history data are: Experian, TransUnion, and Equifax; known as the "Bureaus" or "Repositories". Creditors contract with the bureaus of their choice in order to send them the data. The bureaus analyze data on millions of consumers to determine payment patterns, which help predict the likelihood that the individual will make their future payments on time.

Why 3 different Scores?
Each bureau utilizes its own computer software "scoring model" to crunch the data and calculate a score, one reason for the difference in score between bureaus. Furthermore, the details of the data from a single creditor often differ from one bureau to the next, another reason for the difference in score between bureaus. To determine WHY the score is not higher simply look at the Reason Codes listed under the score. These reasons are listed in order of impact from top to bottom and indicate the primary calculating factors. Factors not listed are affecting the score, but to a lesser degree. Use these reason codes to decipher how to raise your scores.

What Data do the Scoring Models evaluate?
The scoring models evaluate all of the information in the individuals credit file, both good and bad. The scoring models DO NOT consider: income, employment, race, gender, nationality, address or interest rate on accounts when calculating the score.

Breakdown of Scoring Calculation:

*Past Payment History (35%)

*Outstanding Debt Utilization (30%)

*Age of accounts Established (15%)

*Type of Credit Being Used (10%)

*Pursuit of New Credit / Inquiries (10%)

Points of Interest on Calculation breakdown:

*Severity, recentcy, and frequency of delinquencies noted on trade lines are primary indicators of risk.

*Recent late payments and other "derogatories" are more indicative of future default than are older, more isolated occurrences. Derogs begin to lose potency after 24 months. The scoring models are looking for recent patterns, GOOD payment patterns are considered when scoring. IE: Someone who has missed just a couple of payments in the last 2 months would be a higher risk than someone with much older more severe delinquency.

*The number of sizable outstanding balances is predictive of risk, as is the proportion of those balances relative to credit limits. 30% or less of credit limit is optimal balance amount to carry.

*Look at the "Date Opened" column for an indication of how long accounts have been established. Short history could indicate some risk, but only if other negative factors exist.

*The number of inquiries and new account openings in the last year and the length of time since the most recent inquiry is potential indicators for caution. The balance of the file must be considered.

*Scan for the types of tradelines on the report. Finance company accounts will negatively impact the score more heavily than bankcards, store cards, or auto loans. Credit through Finance Companies indicates potential risk due to consumer's inability to obtain credit from less expensive sources.

How do Inquiries Affect the Scores?
All credit reporting sources have Subscriber Codes which indicate to the bureaus the purpose of the credit information request, i.e., mortgage loan, auto loan, credit card account, consumer inquiry, etc.

Consumer Inquiries from sources such as: http://www.annualcreditreport.com/, http://www.myfico.com/, etc. DO NOT affect scores.

Inquiries for obtaining credit can affect scores from 2 - 50 points depending on other variables in the file. Refer to reason codes to assess whether inquiries have affected score(s).

Multiple inquiries, regardless of quantity, for Mortgage loans, made within a 30 day period are counted as only 1 inquiry. This is called the De-Duping Period.

Furthermore, any Mortgage inquiry made within 30 days of the last lender inquiry will be shown on the report but will not adversely affect the score.

Promotional or Employment inquiries do not affect scores.

How can an individual improve their Scores?

Credit scores will improve as an individuals' overall credit picture improves, however this process takes time.

Pay down revolving account balances to below 30% of the High Credit Limit.

DO NOT close accounts, unless the reason codes indicate that there are too many revolving accounts and all of these have little or no balance. Closing well-seasoned accounts is not the best idea.

DO NOT consolidate debt onto a few cards and close other accounts. Rather, spread the balance among cards to achieve 30% or less balance / credit ratio on as many cards as possible.

DO NOT pursue any type of Consumer Credit Counseling as this can wreak havoc on the credit file and lenders often require such relationships be terminated prior to any approval.

What about Rapid Re-Score?

Rapid Re-Score is a service offered by the bureaus, for quickly correcting erroneous information in the individuals credit file. The bureaus require a letter from the creditor which states exactly, and specifically, what needs to be corrected in the file, and there is very little wiggle-room on what they will accept. Whenever you are considering a Rapid Re -Score your broker will use a specific credit analyzer tool and work with their agency to detail issues

Rapid Re-Score takes approximately 72 hours from the time the bureaus receive the documentation, so don't waste time getting it started! Start working on explanatory letter(s) for creditor(s) ASAP. We can guide you on what the letter needs to say, just call us.

Rapid Re-Score is not cheap, so make sure to confirm and know how much the charges are and be prepared to pay up front for the service.

Brokers use Rapid Re-Score to remove derogatory accounts that do not belong to the borrower; or to remove incorrect late payments, etc. We do not use Rapid Re-Score to show collections as PAID. This action will usually LOWER the score(s). It is better in some cases such as bankruptcy, for the borrower to make their own inquiries, as this shows their initiative in correcting old patterns.

NOTE: RESULTS OF RAPID RE-SCORE AND CREDIT ANALYZERS ARE NOT GUARANTEED. They are tools to assist your improving your score.

What about Disputes?
Every consumer has the right to dispute information which appears in their credit report. You can find details on how to file disputes on the various bureaus' websites.

In general the borrower will need to:
Get a credit report direct from the bureau(s) with which they are disputing information. The report will be free if requested within 30 days of a denial of credit.

Send a letter with any supporting documentation to the bureau(s) via overnight mail or certified mail with a return receipt requested.

The Fair Credit Reporting Act gives the bureau 5 days to notify the creditor of the dispute and to request an investigation. Within 30 days the creditor must report back to the bureau regarding whether the information should be modified, deleted, or remain unchanged. If there is no response from the creditor then the bureau must remove the information from the file. However, if within 10 days after that the creditor reports that the information was correct then the bureau will add that info back to the file. The bureau must then notify the consumer of this within 5 days.

Note: Make sure that any corrections made to bankruptcies or collection accounts reflect the correct Release or Clearance dates rather then the current date. You do not want the 7 -10 year clock to start over at day 1.

How long will that remain on the credit report?

Closed Accounts: Indefinitely
Collections: 7 years.
Bankruptcies: 10 years from released date.
Judgments: 7 years from Satisfied date.

For more information, check out my other blog here, or contact me directly.

Tony D. Howell
Mortgage Consultant
Olympic Mortgage Consultants, Inc.
910-264-7802
http://www.tonydhowell.com/

Bank of America Agrees to Purchase Countrywide

Tony D. Howell (The best place EVER!) — Fri, 11 Jan 2008 17:36:02 -0800

If you've seen any news on mortgages lately, you already know that the mighty Countrywide has been feeling the pressure from the mortgage meltdown. Today the deal was struck with Bank of America to purchase Countrywide. From what I've been reading it looks as if they will keep the name and operate business as usual. The largest noticeable difference is that Countrywide shareholders will receive partial shares of Bank of America in the deal. BoA's deep pockets keep Countrywide from going completely bankrupt, BoA gets the trillions of dollars worth of servicing rights to Countrywide's loans, and together they form an institution to become one of the largest and most powerful banking franchises in the world. Doesn't sound like a bad deal...sorry about the Bank of America pic, I just thought it was too funny not to use it somehow. LOL

For more info, click the link below for the actual press release I just received from Countrywide.

Bank of America Agrees to Purchase Countrywide Financial Corp.

Tony D. Howell
Mortgage Consultant
Olympic Mortgage Consultants, Inc.
910-264-7802
www.TonyDHowell.com

Holiday Drink Recipes

Tony D. Howell (The best place EVER!) — Fri, 21 Dec 2007 14:59:53 -0800

Here are a few recipes for holiday drinks. I found these somewhere (I forgot where), but I thought I would share anyway! Merry Christmas all!!!!

Homemade Eggnog

6 egg yolks
½ pound superfine Sugar
½ quart milk
½ quart heavy cream
1 tablespoon vanilla
¼ teaspoon ground nutmeg
½ teaspoon ground cinnamon
½ teaspoon ground dry ginger
zest from ½ orange
½ quart rum (optional)

In a bowl, gently whisk together the eggs and sugar until smooth. Whisk in the milk, cream, vanilla, nutmeg, cinnamon, ginger, and orange zest. For best results, make the mix the day before and allow to "rest" overnight in the refrigerator. Strain before serving if you like a smoother texture.

Mulled Cider

1 quart apple cider
10 whole cloves
5 large cinnamon sticks
½ teaspoon nutmeg
¼ cup dark brown sugar
1 knob fresh ginger, peeled and pricked with a fork
zest from ½ lemon
1 apple, such as Macoun or McIntosh varieties, washed, cored, and diced

Heat the cider on the stove until hot but not boiling. Add all of the other ingredients (except the lemon zest) and stir to blend. Bring to a gentle simmer over low heat. Remove the ginger (and whole spices, if desired). Add the lemon zest and diced apple. Serve immediately!

Quick Grape Spritzer

1 quart chilled grape juice
1 tablespoon honey
2 cups chilled seltzer or naturally sparkling water
24 to 30 grapes, stemmed, washed, and frozen

Mix the grape juice and honey together. Fill some glasses ¾ full with grape juice and top with the sparkling water. Drop a few grapes into each glass for a festive garnish that doubles as an ice cube!

How to remove a bankruptcy from your credit report...

Tony D. Howell (The best place EVER!) — Wed, 12 Dec 2007 11:44:36 -0800

I was given a bit of advice from a friend who had a bankruptcy removed from his credit report on his own without paying anyone a dime. The idea is very simple. He found out that after a certain number of years, the county moves it's records from a paper file to microfiche. (In his case, it was 3 years.) He waited until 3 years had passed and then sent a dispute letter to all 3 credit bureaus. He didn't dispute that he had a bankruptcy, he just said it was a chapter 7 instead of a 13 (or vice-versa, I can't remember). At this point the credit bureaus had to start an investigation. When the courthouse got the validation request, they didn't bother going through the microfiche. If it had been on paper they would. Or so the story goes. So when they never responded to the validation request, it was deleted entirely from all 3 credit bureaus.

I'm not sure if this would work in every state or every county, but it worked for him. It might be worth a few bucks in postage to give it a shot if you are in such a situation. Anyone know of anyone else that did anything similar??

Tony D. Howell
Mortgage Consultant
Olympic Mortgage Consultants, Inc
910-264-7802
www.TonyDHowell.com

20,000 Points!!

Tony D. Howell (The best place EVER!) — Mon, 13 Aug 2007 10:05:59 -0700

OK, so I know there are plenty of people out there with more, but I just hit 20,000 points and I thought that it was pretty darn cool! I never thought I would see even 10K when I first got started on here, but wow...I'm just amazed! I've learned a lot and hope to keep learning too. Thanks for all the comments and support from those who check out my blogs, you guys are AWESOME!!

Tony D. Howell
Mortgage Consultant
Olympic Mortgage Consultants, Inc.
910-264-7802
www.TonyDHowell.com

More Program Changes in the Mortgage Industry...

Tony D. Howell (The best place EVER!) — Mon, 13 Aug 2007 09:37:57 -0700

Just a recap of what's changing this past week. If you have some deals going on, these changes could affect you.

Bear Stearns changed their product offerings on Friday. They suspended "No Ratio", NIVA, and "No Doc", all second home and investment loans, and their "No MI" programs.

Citi (at the risk of possibly repeating myself) is discontinuing the following programs: for Prime Lending, NIVA & NINA for Non-Agency Alt A, "Home on Time" (I guess they're going to be late...), and CRA Stated Income. Under the Expanded Lending (Non-Prime), they've discontinued Expanded Lending First Lien Stated Income Documentation Process and Expanded Lending Second Lien Programs.

Countrywide made several guideline changes, effective today. For their HELOC's they reduced the CLTV's and loan amounts, and increased minimum credit scores. Along the same lines, for their Fast & Easy, Non-conforming, Expanded, and Alt-A programs, changes included reductions in LTV and CLTV, and increases in credit scores.

Nat City Correspondent Lending has suspended all new registrations and locks under both the Standard and Select Extended Capped Rate programs until further notice.

RFC's warehouse bank is rumored to be making changes to their advance rates on 2nd liens and pay option loans to investors besides GMAC/RFC, lowering them to as low as 50%.

Wells Fargo Home Equity Today is the LAST DAY that Stated Income Stated Asset transactions can be submitted to Wells Fargo Home Equity, and they must close and fund within 60 days. They will still be offering Stated Income Verified Asset up to 90%.

On Friday, Impac Mortgage pre-announced a loss of $152.5 million, and that filing of its 2Q07 10-Q has been delayed as a result of "recent volatility and disruptions in the mortgage and secondary markets and integration and analysis of the financial information from its May 2007 acquisition of certain assets and liabilities".

On Friday, the liquidity crunch intensified with the 1-week LIBOR reaching levels as high as 6.0%. The European Central Bank made a second loan to banks to alleviate a money shortage sparked by concerns over investments in U.S. mortgages. The ECB injected another $83 billion, and the Fed added $38 billion, the most since September 2001. The Federal Reserve added $19, $16, and $3 billion in temporary funds to the banking system through the purchase of mortgage-backed securities to help meet demand for cash amid a rout in bonds backed by home loans to riskier borrowers. It added this money through the purchase of securities, including mortgage-backed debt to meet the demand for cash. The New York Fed's additions lowered the Federal funds rate to 5.375%, after it began trading at 6%, the highest opening rate since January 2001. The Fed's benchmark overnight rate is currently 5.25%. Fed funds traded above the central bank's target for a second straight day. Speculation continues that the Fed will ease rates; the market is now discounting almost a 100% chance of a 25 basis point cut to 5% at the next FOMC meeting on Sept. 18.

It's important to keep in mind the Fed is providing liquidity on Agency (GNMA, FNMA, FGLMC) MBS collateral, not on the non-Agency subprime, whole loan, Alt-A product. Funding non-Agency securities will still be a problem, and all lenders across the economy are pulling back, saying "no", raising haircuts and rates. OFHEO just issued a statement rejecting raising the portfolio cap as of now. They say that they closely monitor the mortgage market and will keep the portfolio issue under active consideration.

Cracker Barrell Jumping Game

Tony D. Howell (The best place EVER!) — Sun, 12 Aug 2007 15:25:17 -0700

You've seen this game on every table at every one of the Cracker Barrel Old Country Stores. I don't know the actual name for this little thing but it's a triangular piece of wood with 15 holes and 14 golf tees that is designed to frustrate and make us all fell like morons.

The game seems simple enough: you start by leaving any one hole empty and then proceed to jump over a tee (which you then remove from the board) until there is only one tee left. If you leave one you are a "genius", leave 2 you are "perty smart" , leave 3 or more and you are the "village idiot".

It took me a little while, but I got this thing figured out. At least one way. Here it is.

So if you want you can print this out and impress all your friends on how to solve this mind numbing game, but you have to start with #5 open and have to do it in this order.

14 jumps to 5.

7 jumps to 9

12 jumps 14

2 jumps to 7

11 jumps to 4

3 jumps to 8

10 jumps to 3

1 jumps to 6

6 jumps to 13

14 jumps to 12

4 jumps to 13

12 jumps to 14

15 jumps to 13

Disclaimer: If you bet your first born child on the outcome of a game using my strategy and you lose, then you cant sue me. Good luck!!

I am also well aware that there are other ways to solve it, here is just one example.

Fun Facts...

Tony D. Howell (The best place EVER!) — Sat, 11 Aug 2007 16:28:26 -0700

If you yelled for 8 years,

7 months and 6 days you would

have produced enough sound

energy to heat one cup of coffee.

(Hardly seems worth it.)

If you farted consistently for 6 years and 9 months, enough gas is produced to create the energy of an atomic bomb.

(Now that's more like it!)

The human heart creates enough pressure when it pumps out to the body to squirt blood 30 feet.

(O.MG.!)

A pig's orgasm lasts 30 minutes.

(In my next life, I want to be a pig.)

A cockroach will live nine days without its head before it starves to death. (Creepy.)

(I'm still not over the pig.)

Banging your head against a wall uses 150 calories a hour

(Don't try this at home, maybe at work)

The male praying mantis cannot copulate while its head is attached to its body. The female initiates sex by ripping the male's head off.

(Honey, I'm home. What the...?!)

(reminds me of a girl I know)

The flea can jump 350 times its body length. It's like a human jumping the length of a football field.

(30 minutes..lucky pig! Can you imagine?)

The catfish has over 27,000 taste buds.

(What could be so tasty on the bottom of a pond?)

Some lions mate over 50 times a day.

(I still want to be a pig in my next life...quality over quantity)

Butterflies taste with their feet.

(Something I always wanted to know.)

The strongest muscle in the body is the tongue. (Hmmmmmm.....)

Right-handed people live, on average, nine years longer than left-handed people.

(If you're ambidextrous, do you split the difference?)

Elephants are the only animals that cannot jump.

(Okay, so that would be a good thing)

A cat's urine glows under a black light.

(I wonder who was paid to figure that out?)

An ostrich's eye is bigger than its brain.

( I know some people like that.)

Starfish have no brains

(I know some people like that too.)

Polar bears are left-handed.

(If they switch, they'll live a lot longer)

Humans and dolphins are the only species that have sex for pleasure.

(What about that pig???)

Now that you've smiled at least once, it's your turn to spread these crazy facts and send this to someone you want to bring a smile to, maybe even a chuckle.

In other words, send it to everyone ! (and God love that pig!)

Olympic Mortgage Rated Top 5 by the Wall Street Journal

Tony D. Howell (The best place EVER!) — Wed, 08 Aug 2007 13:36:37 -0700

How many of you Realtors have heard the phrase, "We offer the BEST rates and customer service"? I'm sure you all have, but how many loan orignators can back that statement up by reliable third party validation? Olympic Mortgage Consultants, Inc. can!

We were recently "shopped" by someone from the Wall Street Journal and Olympic was rated one the the "Top 5 Most Competitive Companies in the Nation"! We assumed it was a typical rate shop phone call, and a genuine customer. We quoted a rate on a specific loan product and were asked to provide a Good Faith Estimate along with a Truth In Lending statement. They received the documents and said they were shopping around but would be in touch.

About a week later, we received the notification that it was in fact a "shopper" from the WSJ and we ranked in that top 5 category! We are a local mortgage broker in Wilmington, NC but are in the top 5 in the whole COUNTRY?? That would be a yes! So when I say that I offer the best rates and terms, you know I'm not just being a salesman. As far as customer service, I think my customer testimonials speak for themselves! Thanks for taking a look and remember me if you know of anyone in need of a loan in North Carolina!

Tony D. Howell
Mortgage Consultant
Olympic Mortgage Consultants, Inc.
910-264-7802
http://www.tonydhowell.com/

42,000 Members!

Tony D. Howell (The best place EVER!) — Wed, 08 Aug 2007 11:52:43 -0700

On 8/3/2007 ActaiveRain hit 41,000 members. In just 5 days over 1,000 new members have been added to our community. The popularity is growing folks! I truly believe that we are seeing exponential growth here and will see 50,000 in less than 2 weeks. I also think we will see that figure double by the end of this year!

If you are currently a member, keep blogging and stay active! If you do not, you will get passed in the rankings by the newbies coming on everyday! Remember to also visit http://www.localism.com/ and add pictures and communities to your area. These "extra" things not only add to your points but your overall rankings in the search engines. Keep up the good work everyone and keep spreading the word! :-)

Tony D. Howell
Mortgage Consultant
Olympic Mortgage Consultants, Inc.
910-264-7802
http://www.tonydhowell.com/

National City Home Equity also ceases loan apps...

Tony D. Howell (The best place EVER!) — Wed, 08 Aug 2007 10:19:06 -0700

In the wake of all the mortgage gloom and doom, National City has also ceased to accept new loan applications. This latest news adds to a list of major players out of the business. OwnIt Mortgage, Fremont General Corporation, Ameriquest, H&R Block Mortgage, SouthStar Funding, Flick Mortgage/Mortgage Simple, American Home Mortgage / American Brokers Conduit, and Aegis, just to name a few. For more, please check out www.lenderimplode.com to see the latest news on who has closed their doors to mortgage lending.

"SAN FRANCISCO (MarketWatch) -- National City Corp. (NCC : National City Corporation News , chart , profile , more 28.93, +0.49, +1.7%) said on Monday that its National City Home Equity unit has suspended approvals of addition loans or lines of credit in response to market conditions. "This is one of a number of steps National City has taken in recent weeks to help ensure that originations are in line with existing and anticipated market conditions," the bank said in a statement that was e-mailed to MarketWatch. "We are continuing to closely monitor the market and take the appropriate steps to best navigate market conditions."

On the bright side, we at Olympic Mortgage are still going strong with increased sales and revenues over last quarter. We have always had in-house processing and underwriting. As of this week, we are now able to fund our loans in our own name! This represents a strong financial background and continued quality of service. While others are bowing out of the market, we are remaining to be one of the strongest players in the mortgage industry.

Please contact me if you have any loan scenarios or questions about financing. I am always glad to help someone in need of a purchase or refinance!

Tony D. Howell
Mortgage Consultant
Olympic Mortgage Consultants, Inc.
910-264-7802
www.TonyDHowell.com

Aegis Mortgage pulls the plug

Tony D. Howell (The best place EVER!) — Wed, 08 Aug 2007 10:08:26 -0700

Well as they say, "Another one bites the dust!" Aegis Mortgage has folded because of the weakening secondary market. Here is an article from http://www.chron.com confirming the latest news.

Lenders that focused on mortgages enjoyed tremendous growth during the housing boom, but now a credit crunch is forcing them to retreat from the market, leaving full-service banks to fill the void, industry sources said.

As if to underscore the point, Houston-based Aegis Mortgage Corp., one of the nation's largest mortgage lenders, laid off a "substantial number" of its employees Tuesday, as it shut down mortgage operations.

The company would not say how many employees were terminated, but as of July, it had a 1,200-person staff, with 300 in Houston.

"The change in market conditions, coupled with the rapid decline in the secondary mortgage market, has forced Aegis to take this action," CEO Dan Gilbert said in a prepared statement.

Aegis said it is still maintaining its servicing business, but the division has been up for sale for a while, spokeswoman Pat Wente said.

Aegis, which stopped taking new loan applications Monday, is the latest in a string of lenders caught up in the mortgage industry turmoil.

American Home Mortgage Investment Corp. on Monday filed for bankruptcy protection, and National City Corp. said its wholesale home lending division, which serves mortgage brokers, had stopped accepting new loan applications.

The shakeout "is very disturbing," real estate agent Shad Bogany said.

As more lenders leave the market, consumers have fewer options on the kinds of loans they can find, he said.

Bogany noted that it is the wholesale side of many lenders, the side that sells to brokers, that seems to be affected the most.

Some brokers, in turn, now look to full-service banks for loans to match home buyers with.

"Right now, we only want to sell to those guys because they have deposits," said David Zugheri, president of First Houston Mortgage.

No matter where the home buyer goes, to a bank or a broker, the loan is mostly likely to come from the likes of Washington Mutual, Wells Fargo, Bank of America and other large banks, he said.

Guy Cecala, publisher of Inside Mortgage Finance Publications, said the phenomenon could last a few years.

"It's going to drive a lot of people out of the marketplace for now," he said. "It's not going to be forever, but the market is in such turmoil now that it's very hard for anyone that's not a large bank to operate."

Another viewpoint

Some mortgage brokers see an overreaction.

"There's all this hype out there, and people are panicking unnecessarily," said Tom Wilson, a broker and president of Optima Mortgage Corp. of Houston. "You can still get into a house for 500 bucks or less or with no money down."

Consumers can get 100 percent financing with no down payment on so-called "agency loans" - those less than $417,000, he said.

Home buyers also can get the 100 percent financing, Wilson said, if they have a credit score of at least 620, can document their income and conform to programs such as Freddie Mac and Fannie Mae - government-sponsored agencies that buy loans in the secondary markets.

In a sort of guilt by association, jumbo loan interest rates are increasing, said Greg McBride, a senior financial analyst at b ankrate.com. The rates are going up even though jumbo loans haven't had default or delinquency problems, he said.

"It smacks of an overreaction, and it's likely to be a cloud that blows over soon," McBride said. "For prime borrowers - the majority of borrowers - it's business as usual."

Unexpected development

It wasn't business as usual this week for New York-based American Home Mortgage Investment Corp., which filed for bankruptcy protection Monday and stopped funding loans - much to the surprise of Gwen Washington.

She had already been approved for a loan from the company and had moved into her new 2,000-square-foot home in Pearland when she got word that the company had decided to stop funding loans.

A representative with her builder told her it still owned the house because American Home Mortgage hadn't funded the loan despite closing.

"I said, 'You got to be kidding,' and I almost fainted," Washington, 55, said. "I said, 'I'm not moving.' "

She didn't have to.

The builder worked to get her into another loan with its lending arm and managed to keep her in the house. Washington said she has excellent credit and put $45,000 down.

Seeing it as adjustment

While some mortgage brokers are losing their jobs and homeowners are failing to repay loans, some view the tightening as a market correction.

"That's what we're seeing," said Olga Kucerak, president of the Texas Association of Mortgage Brokers. And she's tired of brokers getting all the blame.

"People think it's mortgage brokers, but really it's mortgage originators, and that includes banks."

Others said the correction could help consumers in the long run.

People with damaged credit will start to shift to government programs with more conservative guidelines, Bogany said.

"The consumer is going to win because now you're going to have to have some money saved and your credit is going to have to be halfway decent to get a home," Bogany said. "Then you won't have people who can't afford it getting loans."

purva.patel@chron.com

brad.hem@chron.com

Read all comments

So I had a fender bender today...

Tony D. Howell (The best place EVER!) — Tue, 07 Aug 2007 15:58:46 -0700

Yep, I hate to admit it, but today has just been one of those days.

So I'm getting ready to pull out of this bank parking lot and there was a SUV in front of me. We were both turning right onto a busy street. As I looked at him, he pulled forward and to the right. I assumed he was going on into traffic. I looked to the left to see a break in the oncoming traffic. I hit the gas....to my surprise I suddenly realized that he did not go as expected. He had stopped just as I looked away at the traffic to the left. The end result was a bent tailpipe and small dent in his bumper. Mine looked very similar to the picture above (not my car by the way, just an incredibly similar fender bender).

On the bright side, the guy was very understanding and decided not to call the cops. We exchanged info, and he will get a estimate to bend his tailpipe back straight. Me...well..."slightly" worse. LOL

Just a reminder to always be on your toes while driving. In these busy days of cell phones, and Blackberrys (not that it had anything to do with this) please pay attention to the road at all times! I never thought this would have happened to me, but I guess it could have been a lot worse. Anyone know of a good body shop in Wilmington, NC?? Also, if you are a Realtor in the area...send me a client that needs a loan. Tony needs a new fender! LOL

Happy Tuesday everyone!

Tony D. Howell
Mortgage Consultant
Olympic Mortgage
910-264-7802

Here's what happened with American Home Mortgage....

Tony D. Howell (The best place EVER!) — Mon, 06 Aug 2007 15:12:28 -0700

Here is a video briefly explaining what happened with American Home Mortgage last week.

http://www.cnbc.com/id/15840232?video=456595341

In short, it talks about the secondary market that funds Alt-A loans and how Wall Street investors just stopped buying those types of mortgage backed securities. When that money dried up, it didn't give some mortgage companies enough cash to fund their loans. The same thing happened to sub-prime in the past few months.

Personally, I feel that the worst may be behind us with the weaker companies filing for bankruptcy and the stronger ones will grow stronger now that there is less competition in the marketplace. The companies that still have the liquid assets required to fund the loans will soak up all the business that is getting left behind. As for now, just know that 100% financing with less than perfect credit is becoming much more difficult to get approved. Also know that sub-prime is not dead. I can still get approval for scores as low as 500, but the borrowers must have some cash to bring to the table.

On a side note, Countrywide announced that its financial condition is "strong," and that is has nearly $50 billion of "highly reliable" short-term funding liquidity.

Tony D. Howell
Mortgage Consultant
Olympic Mortgage Consultants, Inc
910-264-7802

Accredited Home Lenders in trouble??

Tony D. Howell (The best place EVER!) — Fri, 03 Aug 2007 13:10:42 -0700

So I posted a blog yesterday about American Home Mortgage and the dire situation that they are in. Rumor has it that Accredited is in financial trouble as well. I know for a fact that my account rep resigned the other day. Does she know something we don't? I received the following email last night:

It has come to our attention that there have been numerous rumors in both formal and informal communications throughout the industry today regarding our financial position and intention to fund loans.

Please rest assured that we are currently conducting our business as usual and expect no disruptions, despite the nature of these communications to the contrary. We will be issuing more information in a clarification statement tomorrow.

Thank you for your business and continuing confidence in us.

This e-mail was sent to: tonyh@olympicmc.com

This e-mail was sent by: Accredited Home Lenders, Inc.
15090 Avenue of Science San Diego, CA 92128 USA

We respect your right to privacy - view our policy

Now that is word for word what they are sending out. Let's see what happens in the next month or so. I know one of the account reps that had worked for New Century went to Mortgage Simple after New Century folded up. His new company was "GREAT!" and he was talking about strong they were financially and they were not going to fold like the rest. I called him about a scenario last week and he informed that once again, he is unemployed due to the company closing its doors. Yikes! What a rough time to be an account rep in the mortgage business! On the brighter side, most of my deals flow through Wells, Countrywide, and Amtrust Ohio so me and my clients are safe....for now.

Any thoughts on Accredited anyone??

41,000 Members and growing!

Tony D. Howell (The best place EVER!) — Thu, 02 Aug 2007 14:43:48 -0700

I was just noticing that when I logged on earlier today, there were 41,008 current members. At the time of this posting there are 41,111. That means over 100 new members signed up TODAY! Its amazing how fast this site is growing all the time. I think at this point, we will start to see more of this exponential growth. What do you guys think??

American Home Mortgage in trouble....

Tony D. Howell (The best place EVER!) — Thu, 02 Aug 2007 13:00:08 -0700

Of course everyone has heard of the mortgage fiasco as of late, but it has spread out of the sub-prime market and into the Alt-A area. American Home Mortgage is NOT a sub-prime lender. Its shares have fallen over 90% and it looks as if it will closing its doors in the very near future. They did not fund hundreds of millions in loans on Monday and Tuesday and announced yesterday that it no longer has the assets to fund any more loans.

What this means for you realtors out there is to stay in contact with your mortgage broker. If you have any closings in your pipeline, check to see if they were using American Home for the funding. If so, your deal is in jeopardy!! There are hundreds of families across the nation that were expecting to close on their homes this week and now will have to scramble to find new financing.

What this proves is that the mortgage nightmare is truly much worse than anyone expected. I didn't worry too much about the sub-prime places going out, I never had too many of those deals anyway. But I did use American Home all the time. I mean, they were the 10th largest mortgage lender in the country at one point with shares trading at about $36 per share as recently as 6 months ago. The stock closed yesterday at $1.48 per share. YIKES! Talk about scary!

For more on the story, check out Mortgage News Daily, CNN Money, and Forbes

Funky Loan Scenario

Tony D. Howell (The best place EVER!) — Wed, 25 Jul 2007 12:28:02 -0700

So I had an interesting scenario today. I have a first time homebuyer that is looking at buying some inexpensive property here in Wilmington (OK, I know...strike one). He wants 100% financing (strike 2) so I took a loan app, and he has no bad credit but a mediocre score of 642. He has a great job and makes plenty of money and can qualify for maybe 150K. He just doesn't want to spend over $700 per month. (maybe a ball or a foul here...lol)

So based with the monthly payment on mind, he and realtor take off on the search. They found a condo right next to UNCW. Its like $70,000, 2 bedrooms, 2 baths, and a shared kitchen. A lot of students rent a place there. I thought all was fine. Its low-rise, we can do the My Community loan at 100%, and stay right in his price range. EXCEPT....it has 90% investor concentration. (STRIKE 3!!) This is a non-warrantable condo that won't fit into any Fannie or Freddie guidelines. OUCH!

This is the deal killer....any LO's out there know of way this can be done? I've exhausted all of my regular sources and even the funky Alt-A places. So I'm turning to the AR community to see if LO's have any ideas. Right now, I'm thinking they just need to find another property, but the only thing in that price range is a run-down crackhouse. Yes, I can say that...I'm not a realtor! LOL

PS I've checked My Community, Freddie 100, FHA, Emerging Markets, 80/20 scenarios, Home Opportunities, and House America....nothing so far.

15,000 points!

Tony D. Howell (The best place EVER!) — Wed, 18 Jul 2007 12:31:27 -0700

So I finally hit 15,000 points today. Should there be some sort of fanfare or ticker tape parade? LOL Probably not. Anyway, I've been working on this blogging stuff for a quite a while now and have learned a lot along the way. I once thought 10,000 was an impossible goal. Now I know different. I'll be shooting for 20K next and then the only respectable goal would be 50K I think. Wow....is that possible?? I KNOW it is....just one step at a time!

Lender Implode Revisited

Tony D. Howell (The best place EVER!) — Wed, 18 Jul 2007 11:21:39 -0700

On April 11 of this year, I had posted a blog about a website that is keeping track of all the subprime lenders that have fallen since the end of last year. The name of the website is:

www.lenderimplode.com

At the time of my original posting, the count was at 52. 3 short months later, the death toll had risen to 100. If you haven't seen it, please go check it out. It has great information on the demise of some financial institutions and valuable insight on the industry as a whole! Happy Hump Day everyone!

Even MORE uses for the iPhone

Tony D. Howell (The best place EVER!) — Thu, 12 Jul 2007 10:12:27 -0700

If you saw my other blog about the iPhone posted here, you should love watching this video! I originally didn't think very highly of the over-hyped up little piece of gadgetry. However, I might be forced to rethink my opinion after viewing this informative video on the additional uses of the phone that I never knew about. Have a great Thursday everyone!

The IPhone

Add to My Profile | More Videos

Think before you speak...

Tony D. Howell (The best place EVER!) — Wed, 11 Jul 2007 15:32:48 -0700

                                Think before you speak...

                 Have you ever spoken and wished that you could
                           immediately take the words back...
               Here are the Testimonials of a few people who did...

                                     FIRST TESTIMONY:
                 I walked into a hair salon with my husband and
                            three kids in tow and asked loudly,
           "How much do you charge for a shampoo and a blow j *b?"
           I turned around and walked back out and never went back.
                             My husband didn't say a word...
                                       he knew better.

                                    SECOND TESTIMONY:

              I was at the golf store comparing different kinds of golf balls.
                I was unhappy with the women's type I had been using.
                          After browsing for several minutes,
            I was approached by one of the good-looking gentlemen
                 who works at the store. He asked if he could help me.
                       Without thinking, I looked at him and said ,
                       "I think I like playing with men's balls."

                                                THIRD TESTIMONY:

                          My sister and I were at the mall and
                              passed by a store that sold a
                                 variety of candy and nuts.
                         As we were looking at the display case,
             the boy behind the counter asked if we needed any help.
                      I replied, "No, I'm just looking at your nuts"
                         My sister started to laugh hysterically.
              The boy grinned, and I turned beet-red and walked away.
                   To this day, my sister has never let me forget.

                                                FOURTH TESTIMONY :

                        While in line at the bank one afternoon,
                               my toddler decided to release
                            some pent-up energy and ran amok.
                             I was finally able to grab hold of
                            her after receiving looks of disgust
                             and annoyance from other patrons.
                       I told her that if she did not start behaving
                            "right now" she would be punished.
                      To my horror, she looked me in the eye and
                            said in a voice just as threatening,
                            "If you don't let me go right now,
                             I will tell Grandma that I saw you
                           kissing Daddy's pee-pee last night!"
           The silence was deafening after this enlightening exchange.
                    Even the tellers stopped what they were doing.
                          I mustered up the last of my dignity and
                     walked out of the bank with my daughter in tow.
                                    The last thing I heard as
                                     the door closed behind me,
                                      were screams of laughter.

                                          FIFTH TESTIMONY:

                Have you ever asked your child a question too many times?
              My three-year-old son had a lot of problems with potty training
                                     and I was on him constantly
                       One day we stopped at Taco Bell for a quick lunch
                                         in between errands.
                             It was very busy, with a full dining room.
                         While enjoying my taco, I smelled something funny,
                         so of course I checked my seven-month-old daughter,
                                         and she was clean.
               Then I realized that Danny had not asked to go potty in a while.
                          I asked him if he needed to go, and he said "No".
                      I kept thinking "Oh Lord, that child has had an accident,
                            and I don't have any clean clothes with me."
                Then I said, "Danny, are you SURE you didn't have an accident?"
                                          "No," he replied.
                        I just KNEW that he must have had an accident,
                              because the smell was getting worse.
                                     So, I asked one more time,
                                 "Danny, did you have an accident?"
                           This time he jumped up, yanked down his pants,
                               bent over, spread his cheeks and yelled
                                    "SEE MOM, IT'S JUST FARTS!!"
                   While 30 people nearly choked to death on their tacos laughing,
                             he calmly pulled up his pants and sat down.
                                An older couple made me feel better,
                           thanking me for the best laugh they'd ever had!

                                    LAST BUT NOT LEAST TESTIMONY:

                    This one had most of the state of Michigan laughing for 2 days
                         and a very embarrassed female news anchor who will,
                           in the future, likely think before she speaks.
                       What happens when you predict snow, but don't get any?
                                  We had a female news anchor who,
                      the day after it was supposed to have snowed and didn't,
                                 turned to the weatherman and asked:
                     "So Bob, where's that 8 inches you promised me last night?"
                               Not only did HE have to leave the set,
                       but half the crew did too, they were laughing so hard!

                                     Now, didn't that feel good?

                                           and remember...
                               we all say things we don't really mean,
                                     so think before you speak.