mortgage lending: More challenges to lenders and brokers...the lending industry contracts
- 01/11/10 05:25 AM
How many companies out there won't be able to do FHA loans if HUD moves toward a minimum $2.5 million net worth to do FHA loans? Some estimates peg the loss at 70% of all current lenders! HUD estimates that about 40% of all currently approved lenders have less than $1.0 million net worth. Maybe they'll grandfather small companies in... maybe not... Would this be good for consumers, eliminating those firms from FHA origination that are on shakier financial ground? Or would the loss of competition hurt a consumers ability to shop? Both good questions that have been partially answered by history. … (0 comments)
mortgage lending: Doing Business Durring the Holidays
- 11/24/09 04:04 AM
With all the events and family and feasts and fun associated with the holidays, is it worth it to work and try to make sales in December? Or is it better to regroup and plan for the 2010 year? First, let me say that my largest closing month ever was a December!!!!! Year end considerations can sometimes motivate customers to act rather than just wait. In that particular December, there were some tax law changes that effected real estate so I ended up closing almost $10 Million in one month. Another consideration is our competition. They often are't working. So there … (0 comments)
mortgage lending: My Profit VS A Happy Customer
- 11/16/09 11:56 PM
Yesterday I faced a common dilemma for business; was it better to give my services away and have my customer leave the transaction happy or make a profit and risk a potential failed sale? Let me first explain the circumstances. I had received a loan application from a couple about 6 weeks ago for a USDA guaranteed loan. In case you don't know, these loans are zero down and the seller is allowed to pay closing costs. The USDA charges a 2% guarantee fee that can be financed. The seller (Metlife) had agreed to pay 5% of the buyers closing cost. … (5 comments)
mortgage lending: Curve Balls
- 11/02/09 10:52 AM
Every once in a while you have to hit a curve ball. Last month my father-in-law, who is 81, had triple bypass surgery. After the operation we moved him into a facility in Lynnwood, Washington call Manor Care. The correct name should be "Manor Could Care Less", but that is a different story. Last week we finally decided Frank needed to move out of "Manor Could Care Less" so he moved in with us. It has been awesome having him at our home. He loves our 5 kids dearly and shares all kinds of fascinating family history and stories with us. … (8 comments)
mortgage lending: Fall and Flu
- 09/29/09 09:56 AM
It seems to happen every year...the kids go back to school and withing two weeks they are sick. Typically I seem to catch the bug the following week. Why should this year be an exception? Of course it is not! Last night I woke up with a terrible cough. I can feel the wave of this virus coming over me like sliding into a hot bathtub. The aches and fever are hitting now and I am sure in won't be long until nausea sets in. I am just hoping it is not the swine flu. Here is my dilema: I have … (3 comments)
mortgage lending: Fall is in the air and its time to get serious
- 09/21/09 11:30 AM
Now that the dog days of summer are past, it is time to get serious with this business. I have always had my best months in October, November, and once in December. I have always felt there were just a few factors: I am not as distracted so I work harder - back to the law of attraction Customers are not as distracted so they stop putting off their purchase ore refinance decision Kids are in school and people know they need to get stable September and October is perfect house hunting weather These may all be reasons in my own … (3 comments)
mortgage lending: CreditScore 101
- 07/31/09 07:39 AM
In a world of shrinking mortgage options, I have found a way to grow my market. I call it CS (credit score) 101. Many consumers do not meet minimum thresholds to get a mortgage loan in today's world of FNMA/FHLMC/FHA/VA/USDA only lending. Often I find that credit scores are unnecessarily low because consumers do not understand their rights under the "Fair Credit Reporting Act" or they do not keep close enough tabs on their credit report and scores. CS 101 uses several tools to help consumers understand the components that effect credit and provides strategies to improve their score and correct … (1 comments)
mortgage lending: The Future of the Mortgage Industry
- 07/24/09 07:39 AM
Yesterday I posted a blog titled "The Death of an Industry" and it obviously struck a nerve. The Mortgage Lending community has been put under the microscope lately and tensions are running high. My blog discussed how changes in business practices by large commercial banks and mortgage bankers, combined with new government regulation could conceivably spell the end of the Mortgage Broker industry. Most of the posts I got were Mortgage Brokers defending their business and their business practices. This was understandable and expected. I did however underestimate the loyalty that many real estate agents held for their Mortgage Broker lender … (1 comments)
This class is held by appointment at our offices in Lincoln Center, near Washington Square in Portland, OR. It consists of the following:
•1. A one on one credit evaluation including a free credit report. •2. An hour of training on credit scoring and what makes up a credit score. This includes a complimentary copy of our invaluable credit pamphlet, "Raise your credit score 100 points in 45 days". •3. Credit improvement analysis on our unique "Credit Xpert" score simulator. •4. Special evaluation on Credit Xpert's "What-if Simulator". •5. A 3-year enrollment in "Score … (0 comments)
mortgage lending: Recession, Depression, or Opportunity?
- 10/20/08 07:49 AM
This morning I was listening to CNBC and herd a pundit say that he expects the US economy to go into a recession for the 4th quarter...After I picked myself off the floor from laughing so hard, I started thinking about the ramifications of the denial of Wall Street to the facts of our times. Clearly to average people, the American economy has been in recession for a long time and heading toward depression. So how does this impact me and my business? First, the amount of competition has decreased dramatically. In the past I have often lost good clients because their … (1 comments)
mortgage lending: How to survive in 2008
- 01/03/08 09:55 AM
The following are ten keys that we in the indymac managment team are going to do to survive the market of 2008: Preserve CapitalMaintain maximum liquidityIf not profitable cut expenses down to where you break evenbe prepared to fire friendsCredit quality matters more than everStop paying outrageous pricesCommit to be3tter financial reporting: if you can't measure it, you can't manage itOnly hire people from companies that have been successfulHave a written plan. Figue out what you need to be profitable, and stick to the planFocus only on the things you can control These are really basic princeples but in the growth of the … (3 comments)
How many companies out there won't be able to do FHA loans if HUD moves toward a minimum $2.5 million net worth to do FHA loans? Some estimates peg the loss at 70% of all current lenders! HUD estimates that about 40% of all currently approved lenders have less than $1.0 million net worth. Maybe they'll grandfather small companies in... maybe not...
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