A young friend speculated that American patriotism was arrogant and bigoted. Here is my response.
Rodney King ask :"Can't we all just get along?" He had an excuse, he's a spaced out drug addic. Windrow Wilson had no such excuse. He was simply naively optimistic.
I wish I could sit you down for an evening with Brenda and me to discuss this, alas I'll have to try and put it into a few written words.
There is no prejudice in American patriotism no bigotry! Despite personal prejudices America has answered the question "is it nature or nurture?" It's nurture! In America every race, people from every where in the world have succeeded beyond their wildest dreams. American independence has allowed any one and every one a chance to succeed. American independence has provided a standard of living for our poor that is the envy of most of the world.
Celebrating independence, is second only to celebrating God. For those that don't believe in God it should be their biggest celebration, for no where is the freedom to believe as you wish more acceptable than here!
If we are to be "planeteers" are we to live in squaller like Obama's brother or are we to lead and inspire? If we give up capitalism who will provided food and medicine to the rest of the world? Who will provide hope?
Arrogance is only self delusion when it's wrong, when it replaces accomplishment instead of celebrating it.
My dear if you get your wish please remember:
"Each evening, from December to December, Before you drift to sleep upon your cot, Think back on all the tales that you remember Of Camelot.
Ask ev'ry person if he's heard the story, And tell it strong and clear if he has not, That once there was a fleeting wisp of gloryCalled Camelot.
Camelot! Camelot! Now say it out with pride and joy!
Camelot! Camelot!
Yes, Camelot, my boy! Where once it never rained till after sundown, By eight a.m. the morning fog had flown... Don't let it be forgot That once there was a spot For one brief shining moment that was known As Camelot."
Thank you Alan Jay Lerner and Frederick Loewe how wonderful your vision of Camelot. How sad if America is only to be remembered!
America in all it's flawed glory is to be experienced.
Thank you for your inquiry. I'd like to clarify what your looking for.
Your letter indicated you want the lowest rate with the lowest cost! Everyone wants the best deal, the best mortgage, the lowest cost. You're shopping for a bargain. I'm sorry to tell you I can't compete.
It's easy and may even be legal to quote you that low rate low, cost loan, but all to often the lowest cost / lowest rate estimates don't close.
You won't know you've been missquoted/missled until just before or at your closing when the real rate and cost will be disclosed, and it's to late to go elsewhere. Do you want to be turned down for the "best rate/cost estimate or to purchase a home of your own at an extremely good rate?
When you as a home buyer mistakenly seek lowest quote thinking it's the best deal by looking at the pre-locked estimates you seldom get the best deal!
Based on the information you've provided I attached three "Good Faith Estimates," and "Truth in Lending" forms, these are all the same loan. The rate I've quoted is available as I type this and can be locked for 30 days, assuring you this rate if you close within the 30 days, it's important to compare rates available for the same lock period. I can provide other rates that can be locked in for 45 or 60 days if needed.
You'll notice you have choices! My fees are not dependent upon your rate I make the same on all 3, but your rate will determine who pays for my services, you or the lender. If you can afford it over a very long term the lowest rate is the best loan! Most people find the lowest cost loan the best for them. Rates are available in 1/8% increments between the two extremes.
You may see a variation of the prepaid items from one lender to another, none of us know for sure what these cost will be! One prepaid item is "prepaid interest" it's legal to show only 1 days cost here, I show 25 days interest so that you'll know you may need this much cash at closing, again no one knows on what day this will close so it's better to be prepared! If you are comparing "Brokers" against "Direct Lenders" you'll see there are more line items with the brokers, be sure to read the total cost be cause it's this cost that's important not how many line items it's divided into. When dealing with brokers you may also notice a line labeled "paid broker outside of closing" this is the Yield Spread Premium, YSP this is the lender paying the broker to lower your cost. This is dependent on the rate you select, bankers make even more on the same rate but are not required to disclose their gross profit. It's your total cost as shown at the bottom that matters! I make the same thing no matter witch option you chose, with or with out YSP.
If you truly seek the" best deal" I suggest that you shop for the best Loan Originator! The only protection you the consumer has is the personal integrity of their loan originator.
Towards that end I have also attached three pages of recent clients, who will gladly speak to you. Please respect their time and note the hours they are available shown under their full name, address, and phone numbers.
If I can be of service, if you truly want to own the house please call me.
Air, water, food, housing, are not something we worry about, but try living with out them!
For all the negative news, people still have to have some place to live! The real estate and mortgage market cycle that's life! Indeed there is more business in an up market, that's life! But, families are still growing. Kids are still making more kids and leaving home, hopefully, that's life!
Success in this market depends on how you get up in the morning. If you wake up an exclaim: "Good God I'm in real estate!" You've got a lot to worry about. If you get up exclaiming: "Thank God I'm in real estate!" You may have to make some adjustments but it's a wonderful life!
Sex? It got your attention! It insures an ever growing real estate market! It... well you can fill in the blanks.
I measure my and others success by the success of our clients!
People that judge their success by themselves, may have many things, but seldom have success.
Shallow people mistake prosperity for success and vice versa, they are mistaken and probably never will be successful. Prosperity is a very nice perk!
In today's market only those people that strive for their clients success will succeed. If I'm being to esoteric forgive me. In 2005 we could judge our success by income and volume, but today those standards don't apply. Today as it's always been your success is dependent upon how many clients you help and how well.
In the front of my mind and some where in the back of my storage unit I have a photo of me from 1966. Sitting on a counter in the back office of the old "Portgage Herald" the newspaper I worked for in High School and College. That's who I am! A third lighter. Dark haired. Idealistic. Energetic, burning the candle from both ends and the middle.
No worries, if you didn't count the draft, Vietnam, grades, and girls!, Full of answers, dreams and plans! No pains and no money. 60, that was the work week before, girls and Goldie. Goldie the little Araibin horse that carried me from (10 to 30) childhood to maturity!
That's who I am! Tempered and experienced now, but still that kid.
You say that 80 is old. Well my parents are 82 and active I don't see them as old, just slightly slower. Dad's occasionally lethargic. 80 doesn't look all that old. 20 years doesn't seem like so long. 20 years ago our Eric was in High School and his sister Amy in Jr. High, they still look the same to me, well except Eric had more hair, but that's from his Mother's family.
I don't think old when I get up in the morning. That kid didn't have the usual aches and pains, but I don't remember life with out them so that's not a problem, I'm still that kid. Then I wash my face, open my eyes, look in the mirror! O'my God! Who's that?
There is an older man in the mirror. Then I look back and Brenda says "Good Morning!" I can forget the mirror, I've been waking up with Brenda for over 38 years, my dilapidation and that mirror can go to hell, I wouldn't have missed a minute of it!
I talked to Dad for an hour Friday as I listen I could hear Grandpa. As I though back on that call I could hear Dad in me! We have so much to thank our Fathers for, so much that can never be said. So much to thank their Fathers for.
I've said over and over "we are who we associate with"I'm so grateful for the time I've spent with Dad and my Grand Fathers (2 Grand Fathers and to a much lesser extent 1 Great Grand Father, 1 step Great Grand Father) the long hours fishing, or sitting against a tree with a small fire burning at our feet deluding ourselves that we were deer hunting! The decades spent just being together.
God bless Dad for Dad has most certainly blessed me.
At 10:54AM on August 24, 2006 I posted Net Offers A Better Real Estate Option A great tool for opportunity investors, that I had first taught in 2005 or ‘76. The response was underwhelming! The only two that commented were pointing out that "net listings" were illegal and consider unethical! Didn't they read my post?
On September 1st my 4th post here Beat The Sharksbrought Brian Brady to me, he not only read it he understood! Little did I know that over the next year acting completely independently commenting on each others bloggs we would produce probably the best mortgage education to appear in this forum. I'm mighty proud of what we wrote and my new friend who went on to be the best business generating blogger.
We've all come along way! There were about 10,000 members and a couple hundred active writers, now there are 10,000 active writers and 150,000 members! Wow!
My post the next day :A Consumers Guide To Mortgage Brokers And The Evil Yield Spread Premium Was a heart breaker, originally syndicate in early 1975, it was possibly the most republished private article on YSP that year. Published thousands of times in 6 countries on 3 continents and in English, French and Spanish, it drew less than 400 readers on Active Rain. I seriously considered dropping out. I reposted it just 6 weeks it was featured and well read.
It's been nearly 3 years and allot of articles since then. I've added pod-casting and video casting, soon live TV, I'm glad I'm here.
I've been fortunate all my life I've been around great people! I believe we are or become who we associate with and Active Rain allows me to associate with some of the best real estate people practicing today.
I believe the best way to hone your skills and refine your arguments is to teach, I've been teaching real estate and lending since 1975 and it's as true today to day as it was then.
I hope my readers have gotten as much out of these 400 posts as I have!
Gods help us! From the Gods of Socialism at: http://www.house.gov/apps/list/press/financialsvcs_dem/summary_of_hr_1728_--_03_26_09.pdf
(Residential Mortgage Loan Origination Standards)
· Federal Duty of Care: All mortgage originators (including individuals as well as companies and banks that originate mortgages) will be subject to a federal duty of care that requires (1) licensing and registration, as applicable, under State or Federal law (including under the Secure and Fair Enforcement for Mortgage Licensing Act of 2008), (2) presenting consumers with appropriate mortgage loans (i.e., loans that a consumer has a reasonable ability to repay and for which (s)he receives a net tangible benefit (for refinancings), and that do not have predatory characteristics), (3) making full disclosures to consumers, (4) certifying to lenders compliance with mortgage origination requirements, and (5) including a mortgage originator's unique identifier in loan documents. • Steering Incentives/Yield Spread Premiums: Yield spread premiums and other compensation that could cause mortgage originators (i.e., mortgage brokers and bank loan officers) to "steer" applicants toward more costly mortgages are banned for all mortgage loans - the total direct and indirect compensation from all sources permitted to the mortgage originator may not vary with the terms of the mortgage loan (except for size of the loan and number of loans). • Liability: A mortgage originator that violates the duty of care will be liable to a consumer for the greater of actual damages or an amount equal to three times broker fees plus costs (including attorney's fees). • Regulations: The Federal banking agencies are assigned rule writing authority to implement aspects of this title. Discretionary Authority for All Mortgages. The Federal banking agencies are authorized to address troublesome and abusive mortgage terms and practices that may arise in future through issuing joint regulations that address abusive, deceptive or unreasonable mortgage practices, and any other regulations necessary or proper to effectuate the purposes of Title I or to prevent evasion or circumvention thereof. Duty of Care Regulations. The Federal banking agencies, in consultation with the Treasury Secretary and the Chairman of the State Liaison Committee to the FFIEC shall jointly prescribe regulations that further define the duty of care. Anti-Steering Regulations. The Federal banking agencies, in consultation with the Treasury Secretary and the FTC, shall prescribe regulations that prohibit mortgage originators from (1) steering any consumer to a loan that the consumer lacks a reasonable ability to repay, does not provide a net tangible benefit in the case of a refinancing, or has predatory characteristics, (2) steering any consumer from a prime loan to a subprime loan, and (3) engaging in abusive or unfair lending practices that promote disparities among consumers of equal credit worthiness but different race, ethnicity, gender, or age. Title II (Minimum Standards for All Mortgages) • Ability to Repay/Net Tangible Benefits: Every residential mortgage loan will subject to two new Federal standards that apply to creditors, assignees and securitizers. At the time the mortgage is entered into, the creditor must make a reasonable, good faith determination: that the consumer has a reasonable ability to repay the loan at a fully indexed fully amortizing rate, based on verified and documented information including the consumer's credit history, current and expected income, debt-to-income ratio, and other financial resources; and
2 for refinancings, that the loan will provide a net tangible benefit to the consumer, based on information known or obtained in good faith by the creditor. The Federal banking agencies shall jointly prescribe regulations that define "net tangible benefit," and the bill provides that loans for which the cost of refinancing exceeds the newly advanced principal specifically do not provide a net tangible benefit.
· "Qualified Mortgage" Safe Harbor. A limited safe harbor provides that prime, fully documented 30-year fixed-rate mortgages that have no negative amortization or interest-only features are presumed to meet the ability to repay and net tangible benefit standards. This presumption is rebuttable. Qualified mortgages are defined as loans for which the APR does not exceed an average prime offer rate, published by the Federal Reserve, by more than a specified percentage (1.5 percentage points for a first lien and 3.5 percentage points for a subordinate lien) the income and financial resources of the consumer are verified; the underwriting process is based on a fully-indexed rate; the loan meets a combined debt-to-income (DTI) test prescribed by the Federal banking agencies; and the loan has a fixed rate term of not less than or more than 30 years. The Federal banking agencies shall jointly prescribe regulations that carry out the purposes of the qualified mortgage provision and may revise the criteria for defining a qualified mortgage when necessary or appropriate. • Creditor Liability: In addition to other remedies that a consumer may have against the creditor under the Truth in Lending Act, a creditor that violates the ability to repay or net tangible benefit standards is liable to the consumer for rescission plus the consumer's costs for the rescission (including attorney's fees) unless the creditor provides a cure within 90 days after receiving notice from the consumer. Cure means a no-cost modification or refinancing of the loan to provide terms that would have satisfied the minimum standards if the loan had contained such terms as of the origination date, as well as the payment of costs that the consumer incurred as a result of the violation. • Assignee/Securitizer Liability (does not extend to trusts and investors): Except as provided below, for loans that violate the bill's standards (reasonable ability to repay and net tangible benefit), a consumer has an individual cause of action against assignees and securitizers for rescission of the loan and the consumer's costs for rescission (including attorney's fees), unless the assignee or securitizer provides a cure to make the loan conform to the minimum standards within 90 days of receiving notice from the consumer. Absent Parties: If the creditor ceases to exist or is bankrupt, then a consumer may maintain a civil action against an assignee to cure a loan that violates the minimum standards. If the creditor and each assignee cease to exist or are bankrupt, then the same civil action may be maintained against the securitizer. No class actions may be brought against an assignee or securitzer. • No investor liability. In the case of loans held in pools for purposes of securitization, the terms assignee and securitizer specifically exclude the securitization vehicles that holds the loan, the loan pools, purchasers of the securitization vehicle, and investors in an instrument that represents an interest in such pool.
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· Defense to Foreclosure: When the holder of a mortgage loan or anyone acting on behalf of the holder initiates a judicial or non-judicial foreclosure, (1) a consumer who has a rescission right under this bill may assert such right as a defense or counterclaim to foreclosure against the holder to forestall foreclosure, or (2) if the rescission right has expired, a consumer may seek actual damages (plus costs) against the creditor, assignee, or securitizer. • Tenant Protections: Provides protections to tenants when the homes they rent go into foreclosure. For foreclosures occurring after the date of enactment: tenants with a lease have a right to remain in the unit until the end of the existing lease; if a purchaser intends to use the property as a primary residence, the lease may be terminated and the tenant must receive 90 days notice to vacate; and tenants without a lease or with a lease terminable at will under state law must receive 90 days notice to vacate. For foreclosures involving Section 8 housing assistance contracts: successors in interest are subject to the pre-existing lease and housing assistance payment contracts for Section 8 recipients; foreclosure does not constitute good cause for termination of Section 8 tenancy; however, under certain circumstances, such as when the property is unmarketable while occupied or the subsequent owner will occupy the unit as a primary residence, the foreclosure may constitute good cause for terminating the lease; and public housing agencies may pay utilities that are the responsibility of the owner and reasonable moving costs for Section 8 tenants - after taking reasonable steps to notify the owner - if the agency is unable to make housing assistance payments to successors in interest after a foreclosure. None of these provisions affects any State or local law that provides longer time periods and/or other additional protections for tenants. • Additional Standards: Includes a number of additional standards and requirements designed to protect consumers, including by- prohibiting certain prepayment penalties; prohibiting the creditor from directly or indirectly financing single-premium credit insurance in connection with a consumer mortgage loan; prohibiting mandatory arbitration; and requiring specific disclosures for loans that include negative amortization features. • Effect on State Laws: Provides a unique Federal remedy for assignee/securitizer/securitization vehicle liability arising from a claim regarding lack of reasonable ability to repay and lack of net tangible benefit, but does not limit- state laws that apply to creditors (including those that also act as an assignee, securitizer); availability of state remedies based upon fraud, misrepresentation, deceptive acts and practices (as defined in the bill), false advertising or civil rights laws for the assignee/securitizer/securitization vehicle's own conduct; or in connection with that party's sale or purchase of mortgages or securities. • Borrower Fraud: Removes civil liability of creditor, assignee, and securitizer and cancels the borrower's right of rescission if the borrower knowingly, willfully, and with actual knowledge furnished false information.
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· Additional Disclosures: Requires additional disclosures to consumers in connection with mortgage loans, including in the case of an adjustable rate loan, a notice at least six month before the expiration of a fixed introductory rate that explains the rate adjustment process and the consumer's alternatives; and an annual notice regarding interest rate terms. • Legal Assistance for Foreclosure-related Issues: Directs HUD to make grants on a competitive basis to state and local legal organizations to provide a full range of foreclosure related legal issues to low- and moderate-income homeowners and tenants. Gives priority consideration in the awarding of grants to state and local legal organizations in the 100 metropolitan areas with the highest rates of home foreclosure; and These legal assistance funds may not be used for class action litigation. • Credit Risk Retention: Requires the Federal banking agencies jointly to issue regulations that require creditors, with respect to loans other than qualified mortgages (as defined above), to retain an economic interest in a material portion (at least 5 percent) of the credit risk of each such loan that the creditor transfers, sells, or conveys to a third party. A creditor may not directly or indirectly hedge or otherwise transfer the credit risk it retains under these regulations. • GAO Study: Directs GAO to conduct a study to determine the effects of the bill on the availability and affordability of credit for homebuyers and mortgage lending, and submit a report to Congress within one year of enactment. Title III (High-Cost Mortgages) • This title expands the scope of and enhances consumer protections for "high-cost loans" under HOEPA by, among other provisions: lowering the APR trigger from 10% to 8% over comparable Treasuries (codifies existing Board standard), except if a dwelling is personal property and the loan is less than $50,000; lowering the points and fee trigger from 8% to 5% for transactions of $20,000 or more and including additional costs and fees in the trigger; prohibiting the financing of points and fees; prohibiting excessive fees for payoff information, modifications, or late payments; prohibiting practices that increase the risk of foreclosure, such as balloon payments, encouraging a borrower to default, and call provisions; and requiring pre-loan counseling. Title IV (Office of Housing Counseling) • Establishes an Office of Housing Counseling at HUD that will carry out and coordinate homeownership and rental housing counseling programs. • Requires the launch of a national public service, multimedia campaign to promote housing counseling and the establishment of a website and toll-free hotline; • Authorizes the issuance of homeownership and rental housing counseling grants to HUD-certified state, local and nonprofit counseling organizations; and • Requires HUD to update the Mortgage Information Booklet to provide consumers with a greater understanding of the terms of the home buying process.
5 Title V (Mortgage Servicing) • Requires borrowers with higher-cost and subprime loans to have accounts established in conjunction with their mortgages to provide protection against tax liens and the forced placement of hazard insurance, among other things. • Forces lenders to provide written disclosures about the need to pay taxes and insurance premiums to all borrowers if borrowers decide to waive the creation of or choose to close their escrow accounts. • Mandates the inclusion of escrow payments for taxes and insurance in any repayment analysis provided to consumers at the time of a quote on a mortgage, to ensure that lenders alert borrowers to all of the costs involved in owning a home. • Updates the Real Estate Settlement Procedures Act to create new safeguards for borrowers, including detailing when the servicer can impose force-placed hazard insurance, mandating swifter responses to consumer written inquiries, increasing penalties for abuses, and requiring the prompt crediting of payments. Title VI (Appraisal Activities) • Establishes stronger, enforceable Federal appraisal independence standards with tough penalties, which will allow appraisers to act as independent referees to verify the value of the property for the buyer, the seller, the lender, and the investor, among others. • Provides the Appraisal Subcommittee of the interagency Federal Financial Institutions Examination Council with a consumer protection mandate and enhances its ability to monitor the performance of State appraisal oversight agencies. • Strengthens appraiser licensing and education standards, and establishes a Federal grant program to assist States in their appraisal regulatory activities.
One "Good Faith Estimate" is never enough! Hopefully you've decided on a Loan Originator for the LO's personal integrity is the only real protection the consumer has. But even when you've settled on one LO and more so if you haven't you need at least three "Good Faith Estimates" and their accompanying "Truth in Lending" forms.
You have choices! Normally your lender can offer you a selection of interest rates spanning about 2% in 1/8 of a % increments and often as much as 9 points difference in closing cost!
You need to know your choices. Demand at least 2 estimates and preferably 3. I suggest one at a 1 point origination, one with the lowest possible closing cost and one at the lowest possible rate. Since the rate goes up as the cost comes down those of you with minimal acceptable income may have to spend more to qualify. Those with less cash may have to accept a higher rate to get lower closing cost. Oddly the highest rate / lowest cost loan is almost always best in the short run to about five years. After five years the lower rates of a higher cost loan become better for the remaining term of the loan. Most consumers have choices!
Lenders fees rarely very between loans it's simply a matter of how the consumer will pay them. Your total cost and payments will be lower with a higher rate over five years and vice versa. Remember it's not all or nothing, you can select the best combination of rate versa cost for yourself.
I always explain this to clients, and try to impress on them the need to compare apples and apples to that end I suggest Loan Originators and REALTORS give there clients the following information in a letter or better yet on several business cards so that they can present it to competitors and or one or more lenders. Consumers should get comparable as close to the same time as possible as rates can and do change frequently.
Side 1
If you would like to be considered for financing my home I will need the following:
Three Good Faith Estimates and accompanying Truth in Lending forms.
The first form should be at 1% origination.
The second should be for the same loan, but using maximum YSP to reduce my closing cost.
The second should be for the same loan, but using up to a total of 3 points.
All rates to be quoted to be available for at least a 30 day lock. The time and date of the rate sheet to be noted.
What was the strangest thing I ever included to make a sale?
Years ago my late friend, Hubert Williams and I sold a used $15,000.00 sail boat for $400,000.00, but we threw in a large cottage over looking Lake Michigan!
After a four hour drive we arrived at the cottage a few minutes after our client. We found her overlooking the dock and boat 200 feet below. Hubert explained that the dock and parking area below were part of the property and asked if she'd like to see them first. We drove our car down to the lake. The lady loved the sail boat tied to the dock, I asked her if she wanted the cottage if the seller would include the boat. Hubert and I stopped talking. We waited, then she said yes! I wrote up a full price offer and included the boat by it's registration number. I passed the one page form to our lady in the back seat she read every word then handed it back unsigned. Before I could say something stupid she said put in the boat's name, I did. She signed the offer and a very large deposit check to my trust account.
We very nervously drove back to show the cottage. While Hubert was retrieving the keys from his brief case our lady climbed into the back of her limo and left.
A week after the closing she called Hubert from her car. She found the dock and her sail boat, but didn't know which cottage she'd bought.
(The story is part of Chapter 39 of my book "One House At A Time / Finding And Buying Single Family Rentals")
After dealing with one rachmanism after another rachmanism, reading one exaggerated article after exaggerated article even occasionally rational real estate agents can lose sight of realty! Losing sight of sanity and fiduciary, normally pleasant professional people turn in to nothing more than licensed curmudgeons!
We've seen such insanity between agents and lenders involving entitlism, it is now invovling spreading to rental agents regarding landlord financial privacy.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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