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Staging a Comeback??????

By
Mortgage and Lending with Capital Line Funding Group

Folks, foreclosures represent about 1.5 - 2% of the entire mortgage market.  While it represents a lot of money, it's not even a major portion of outstanding mortgages but you sure wouldn't know it.  Every day the media beats their drum to the same old beat and I am sick of it.  The housing market will pick up again, it always has and property values will be better than ever.  

Fed Speak:

Ben (The Fed) Bernanke is quite concerned about write downs to come that haven't been taken in the credit market but  feels the slowing economy is the more threatening element in the whole picture.  And he is absolutely correct at the moment.  Once the boat is dead in the water it's a lot more difficult to get it started.

Ben stepped up today to indicate he is going to cut rates even further in order to keep the economy moving forward.  Now this has the potential to fan the flames of inflation.  Our guess is whether he will wait for the March meetings or do it sooner.  That depends entirely on the marketplace activity. 

Bonds and Banks:

Bonds floated higher today, not reacting to the news of the potential Feds rate cuts as this generally sends them down, but we are happy they bounced off the 200 day moving average using it as a trampoline to gain back some of the losses.

Traditional lenders seem to be taking a holiday from lending, which is precisely why Ben is pumping liquidity into the credit markets.  There is a fine line between making enough credit available without encouraging people to over spend, thereby increasing inflation.  Way to go Ben!

Guidelines are changing so rapidly in this volatile market making it difficult to obtain financing with some programs being phased out, but you do have many choices and options available.  I believe when the guidelines have been stabilized the banks and Wall Street will be able to monitor the sub prime loans better increasing investor confidence.

Mortgage Brokers - The Way to Go:

More than ever before you should choose to work with a Mortgage Broker.  A Mortgage Broker represents a diversified group of lenders giving clients access to programs not available through traditional lending sources.

Let me assure you not all Mortgage Brokers are alike.  Some have never developed their "lender pool" to the extent that they have enough diversity to choose from.  I work with a company that currently represents over 151 and continually growing lender groups because we have always seen the necessity to expand our ability to meet our client's ever changing needs.

Yes we do represent traditional depository and non-depository lenders, wholesale lenders and an extensive group of "portfolio lenders".  I think the future in funding is with the wholesale and "portfolio lenders." because of their diversity in programs.  A "portfolio lender" does not sell the loan on the secondary market; they retain it and service it.  This offers them the ability to monitor the return on their investment in any given group.  They can adjust their rates and modify their program guidelines to meet the needs of their Mortgage Brokers and their borrowers needs.

Even in this constantly changing market they still want to make loans; money doesn't earn interest unless it's put to work.  We have money to loan for all types of properties and borrowers.  

Although we specialize in all phases of real estate lending from commercial to residential and purchase to refinance we have an additional niche, jumbo and super jumbo loans.  These loans can be sometimes challenging because of the dollars involved, but we have lenders available with many programs including pledged assets.  When a person uses pledged assets, the assets continue to grow in value (by remaining in the borrowers account) while being used as collateral, now that is putting your money to work TWICE.  Another niche we are able to fill is the construction loan using stated income.  Wow, that's amazing.  

Diversity is the answer in any situation and clearly the necessity is seen today.  A borrower with more options has the opportunity to find the financial solution that best suits a particular need.

I think it's time to make plans for the future, the worst thing we can do is buy into fear.  Fear is not the best motivator for planning your future unless you are standing on the railroad track and see the train coming, than by all means get off the tracks.

There are many opportunities available for the homeowner and potential home buyer.  All you need to do is explore your options.  Knowledge will give you the power to carefully assess your situation in order to determine the best financial solution for you and your family.

If you have any questions please feel free to contact me.  I love sharing knowledge with homeowners and potential home buyers as well as Realtors because owning a home is the American Dream.  Let's talk about proper mortgaging.  

   

 

 

Comments (3)

Dave Woodson
Dave Woodson - Chesterton, IN
Not the Average Agent

i am glad to see that more and more of us are speaking up.  we are not part of the problem, but a large part of the solution. 

Dave Woodson

www.indigofg.com & www.uwinfin.com

Feb 27, 2008 01:26 PM
Patti Geib
Capital Line Funding Group - San Diego, CA
Dave - thank you for your comment.  If we don't speak up we will be out of a job.  And I might add a job we take great pride in doing and have become highly educated in order to serve our clients needs.  Hopefully wecan successfully lobby Congress who seems opposed to borrower choice.  What is the difference is YSP and SRP - nothing but the banking lobby is huge.  Patti
Feb 27, 2008 01:34 PM
Debbie Summers
Charles Rutenberg Realty - New Smyrna Beach, FL
Patti - Welcome to Active Rain...  You have been a posting machine this month.  Great posts that prospective buyers should keep in mind while they are interviewing brokers. 
Mar 01, 2008 08:43 AM