In August of this year, I began the search for a new mortgage company to work with / work for.  I've made the comment more than once, that we were working 3 times as hard to close mortgage loans with about half of the revenue of previous years. 

There is a natural expansion and contraction in business.  While we have continued to be profitable and have delivered the highest level of customer service available, we have also faced significant challenges in the credit market and continued scrutiny at various levels of underwriting.  Programs and products that we once accessible to brokers are either discontinued or are no longer available.  The cheese moved.  So as a business owner, I had to change my approach.

 Here are 10 reasons why I chose and why you should choose Patriot Bank Mortgage.  David Letterman drum roll please.

 •10.     We have $940 Million in assets and use our money to fund all closings.  We will always have     money available to fund loans!

•9.       We have 3 Direct Endorsement underwriters at our corporate office on San Felipe and Voss  and we're capable of underwriting all FHA loan programs internally.

•8.       Our team of experienced processors and underwriters look for creative ways to approve and close "make sense" loans.

•7.       We have a construction lending department for One Time Close construction loans as well as Purchase Plus financing for the "fixer up" projects.

•6.       Because of our volume incentives, we offer better interest rates in comparison to brokers or any other mortgage company.

•5.       We've maintained a fiscally responsible attitude towards spending and pass along those savings in significantly lower closing costs.

•4.       We are licensed to lend in any state.

•3.       Our FastTrack system can close a loan in 24 hours when necessary.

•2.       We issue preliminary closing instructions to the title company at least 5 days prior to closing so the HUD-1 Settlement Statement is ready days before closing, not hours.

•1.     You will receive the highest level of customer service from a team that is dedicated to making homeownership a reality for those who choose it.

 

The company name has changed.  But the people and the commitment to helping families purchase, refinance, or build the home of their dreams remains the same.  It has been 8 great years owning and operating New Horizon Mortgages and Truemark Lending, Inc.  I thank each of you for your patronage and referrals.  And I look forward to helping you and those that you refer to us in the future.

Sincerely,

Jeffrey N. Anderson

Mortgage Banker

Patriot Bank Mortgage

Over the last few weeks and months, the mortgage industry has experienced significant changes.  Guidelines have changed, MI companies have tightened their belts, FHA has posted price adjustments to their upfront and annual MI premiums based on LTV and credit score, and Fannie Mae/Freddie Mac have loan level price adjustments for credit score and LTV.  I jokingly say (but there's a legitimate amount of truth to my comments) that we're working 3 times as hard to close the same amount of loans as we did 2 years ago.  The sub-prime market is gone (thank goodness) and the 100% financing that was available thru conventional means no longer exists.  Thankfully, we've been FHA approved for more than 8 years. 

So, the cheese has moved.  Over the last few months, I've been researching other mortgage programs to bridge the gap and have found a solution.  There is a government program for low to moderate income families that offers 100% financing in select areas.  THIS IS NOT A BOND PROGRAM.  THIS IS NOT A DOWN PAYMENT ASSISTANCE PROGRAM.  THERE ARE NO ADDITIONAL COSTS TO THE SELLER.  This is a straight 100% financing with no mortgage insurance.  The seller can pay up to 6% of the sales price towards closing costs and pre-paids.  And if the property appraises for more than the sales price, then we can finance the closing costs into the mortgage.  Side by side, it is almost always better for the buyer and seller than an FHA loan.  It really is an incredible product for the right buyer.

My office and I have spent more than 2 weeks calling listing agents to let them know that their property is eligible for this program and would you believe - THE LISTING AGENTS DON'T WANT TO TALK TO US ABOUT THE PROGRAM!  This is not true in all cases, some have allowed us the 10 minutes requested to share some of the details of the program, but the majority seem disinterested.  It absolutely amazes me!

So, real estate community, what do I need to do?  Here are my thoughts:

1.  Keep doing what we're doing with the phone calls to listing agents.

2.  Direct mail to the seller and let the seller know that their property is eligible for 100% financing and see if I can put a bandit sign in the yard.

3.  Advertise and hold a seminar for realtors and educate those that attend about the product

 

I'm open to any other ideas that might help bring this product to the market.  Because the industry has changed, I'm prepared to do whatever is necessary to continue offering mortgage financing to qualified buyers.  I look forward to your feedback.