mortgage: Fix The Market - Post Three! - 12/13/11 02:29 PM
A customer called me.  I've made several loans for him over the years.  He's been a fairly successful guy over the years, but like many, he's fallen on hard times.  He currently doesn't own a home, having short sold a few years ago after nearly suffering a divorce.  He's been a small sub-contractor who used to employ a crew of 20 to 30 employees.
With the slump in the economy, his income was reduced by more than 70% from normal, even farther when you consider where he was at the peaks of the economy. 
He's struggling with debt left over from a lifestyle developed at … (2 comments)

mortgage: Mortgage Slang 101 - Mortgage Insurance - 11/28/11 09:24 AM
Mortgage insurance is viewed nearly universally as a bad thing, but in reality, it's a tool to be used that can be very good for home buyers, the housing market and the economy in general.
Why do many complain about mortgage insurance?  Because its expensive, and sometimes difficult to get rid of when it's no longer necessary.  If that's the case, why do I say it can be good for buyers and the economy?  Because it's a tool that allows people to buy a home with less than twenty percent down.
Mortgage insurance insures the lender against the risk of the … (2 comments)

mortgage: Support Small Business? How About in Your Real Estate Transaction? - 11/26/11 03:54 AM
The Small Business Saturday promotion is a great one that's going on today.  Your local small business is run by your neighbors, family and friends.  They spend their profits and wages in your local economy.  They employ your neighbors, who spend their pay in your local economy.  Oftentimes, they support local charities that help make your community.
Did you know you can support small business in your real estate transaction too?  Choose a local lender instead of one of the big national banks, or that on-line lender that looks so tempting.  In addition to the benefits of using small business above, … (2 comments)

mortgage: Fix The Market - Post One! - 11/18/11 05:44 AM
So, we all have an opinion about what can be done to fix the market.  Several opinions, actually.  I think of random ideas at various times, and lucky you, you get to hear the one that just popped into my head!
Some entity should make it easier for investors to purchase single family residences.  I really like Fannie Mae's HomePath loan for investors that allows for as little as 10% down.  It has no mortgage insurance (but it does have a higher rate).  But it's only good for Fannie Mae homes approved for HomePath financing. 
Freddie Mac should come out with … (0 comments)

mortgage: Mortgage Slang 101 - My Loan's Gone To Doc's! Oh No! Is It Sick? - 10/22/11 04:28 AM
Your loan hasn't ben sent to the Doctor-to get healthy.  We don't have a secret "loan hospital" for sick loans.  No when we refer to a loan as having gone to "Doc's", we are referring to sending your loan to have the Loan Documents prepared or drawn.
What this means to you as a borrower is, your loan is almost done!  This is the part of the process where a "Closer" or a "Doc Drawer" prepares all the documents that you will sign at the closing table.  The Promissory Note, The Deed of Trust, the page after page of government required disclosures are all … (1 comments)

mortgage: It's Not Get Us What You Can, It's Get Us What We Need! - 08/31/11 06:42 AM
So....if you haven't heard, there's been a bit of a recession, brought on by the housing and mortgage crisis.  Many so-called "experts" tell us it's really hard to get a mortgage, and speak of ridiculous rumors as fact (things like you have to have 20% down, and it's harder than ever to get a mortgage). 
Here are the facts.    From a guideline perspective, it's easier to get a mortgage now than anytime before 1997 or 1998.  Debt-to-income ratio requirements are more flexible, private mortgage insurance options are better, etc., etc.  Yes, appraisals are difficult, but they are still easier than they were prior … (1 comments)

mortgage: Mortgage Slang 101 - Underwriting - 07/07/11 12:01 PM
Underwriter - underwriting - When you mention underwriting to people outside of the business, they imagine mysterious, all-knowing prophets sitting in some cloistered ivory tower, conjuring up new methods of torturing buyers, realtors and loan officers with difficult conditions on loans. 
In reality, an underwriter is your neighbor, your friend, that nice person you run into at Starbucks in your morning rush to work.  They sit in an office or cubicle and underwrite loan files.  They are qualified for their job due to their long experience in the business and their familiarity and expertise in the mortgage business.
To underwrite a loan … (2 comments)

mortgage: Self Employed Borrowers 101 - 06/17/11 08:49 AM
It's a commonly held belief in today's world that a self employed borrower can't get a home loan.  While it is significantly harder today for the self employed to get a loan than in the past few years, it certainly isn't impossible. 
The disappearance of "stated income" and "no-doc" loans has definitely made it more difficult on entrepreneurs.  No longer is it possible to finance the person who does a significant amount of "cash" business and doesn't report the income to the IRS.  Really, that type of small business person is getting all the help they should.  If they don't pay … (3 comments)

mortgage: You Want MORE Difficult Financing? - 05/20/11 05:40 AM
I read this morning a blog post from a Realtor in Los Angeles, advocating the higher QRM standards that are proposed under the Dodd Frank bill.  QRM stands for Qualified Residential Mortgage, and requires lenders to hold back as "Capital", 5% of the loan amount on any loan made with less than 20% down that's not sold to Fannie Mae, Freddie Mac, or other government agencies.  Obviously a good post, since 150 people commented, many agreeing with him.
Experts predict that this requirement will increase interest rates on these loans by anywhere from 3/4% to 4%.  Is that good for your … (1 comments)

mortgage: Don't Be Fooled Again! - 05/19/11 09:54 AM
Many people will tell you that an Adjustable Rate Mortgage (ARM)  is horrible, and something a borrower should never take out.  A friend recently stopped by worried that his ARM was adjusting and that his payment would go through the roof.  We analyzed his paperwork and found out that his interest rate would be going down by MORE THAN 2 PERCENT!  This made a big impact on his payment!
The ARM's that were bad were:
Sub Prime loans where the rate was artificially low Had super short introductory periods like two years or less Had a pre-payment penalty that was in force … (3 comments)

mortgage: Rural Property Problems? - 05/05/11 07:57 AM
Homes with a little bit of acreage, a barn or two, and/or some type of small farming operation can be tough to finance.  If your property owner files a "Schedule F" for farm income with their federal income taxes, you might have a BIG problem. 
In our area, there are a lot of "Hobby Farms" where the owner makes their primary income offsite, from more of a traditional job or business, but has a small agricultural use and income.  This can be a real problem, since residential lenders don't want to make loans on farms, but prefer a more traditional residential … (0 comments)

mortgage: Rents Are Climbing! - 05/04/11 10:58 AM
Another client just left my desk who's decision on buying or selling has been influenced by climbing rents!  Usually, it's someone who realizes that they can buy for the same or cheaper than renting, but this guy realizes he can rent out his house for his payment and then go buy another!
So....finally, a move up buyer!  He told me about his neighbor who recently did the same thing.  The neighbor had 8 applicants off of a Craigslist ad in one weekend.  I'd call that a pretty active market.  This is in one of the furthest east suburbs of Portland, Oregon.  … (1 comments)

mortgage: What Are You Going To Do If The Government Shut's Down? - 04/07/11 12:48 PM
Does the looming US Government shut down affect Realtors and Loan Officers?  You bet it does....if nothing else it adds a little more stress to an already stressful business.
So - lot's of speculation but here are a few potential issues:
- no FHA Case number assignments
- no FHA Insurance on funded loans (some lenders might stop funding)
- wired funds are sent through the FED....maybe affected even on cash sales
- what about USDA?  there could be issues here
The Government is deeply intertwined in our daily business.....I hope our rep's in congress make the right decision!

mortgage: What Every Mortgage Shopper HAS To Know, Now That The Fed Has Changed Mortgages! - 04/06/11 11:31 AM
A little advice for folks shopping for a mortgages, the Federal Reserve changed the rules on how loan originators can get paid as of today.  Our company has adopted a plan with one rate sheet where all loan officers get paid the same.   We felt that this was the most fair to the consumer.  Many of our competitors have adopted a multi-tiered approach to compensation.  The loan officer can choose their commission rate based on which price the customer pays.  So, for example, a loan officer can chose between:
•-          A low commission to the loan officer and low cost to … (1 comments)

mortgage: Carmen will get you..... - 04/04/11 04:07 PM
Someone told me that once - and they weren't referring to a's kind of like the bumper sticker - "my carma ran over your dogma".  A play on words - Carmen will get you really means, karma will get you.  You know what goes around comes around.  You reap what you sow.
This has been so true for me in my life.  Good things I've done have paid me back well, bad things I've done, I've been paid back for in many ways and many times. 
I was thinking of these types of truths this afternoon when my google alert … (2 comments)

mortgage: Changes That Affect You! - 03/30/11 10:54 AM
The Federal Reserves changes in the rules regarding loan originator compensation have the potential of affecting more than just people in the mortgage business.
A major good thing will be that most mortgage company's will have fairer pricing.  In the past, it was common that a borrower could go to three loan officers in the same office and get three different offers for the same loan.  For most lenders this is no more.
Probably the biggest change is that individual loan officers won't have the ability to pay for lock extensions, unexpected fee's and other miscellaneous costs to make a transaction … (1 comments)

mortgage: Why Are Appraisals So Bad? - 03/26/11 02:19 PM
Ok - so....blinding flash of the obvious here....Appraisals are serious problems for real estate transactions right now.  Lawrence Yuen, the Chief Economist from the National Association of Realtors said this week "Home sales are being constrained by the twin problems of unnecessarily tight credit and a measurable level of contract cancellations from some appraisals not supporting prices negotiated between buyers and sellers".
Many of you have experienced first hand the effects of a low real estate appraisal.  Maybe you were denied the ability to refinance to a lower interest rate or worse yet, maybe you had a sale blow up on a … (4 comments)

mortgage: How To SCREW UP Your Mortgage In Process! - 03/19/11 08:34 AM
So - after years in the business, I thought I'd share with you the most common mistakes borrowers have made that make a good loan go bad!
Here's how to do it:
Quit or change your job right before you apply or while the loan is in process.  Some jobs have probationary periods where they can let you go without reason.  That can be a problem!  If you quit your job before closing and take another one?  Lenders check at closing! Open or Apply for any new credit accounts!  How would we know?  The quality control credit report done at closing! … (3 comments)

mortgage: Another "60 Minutes" Blunder..... - 12/18/08 09:44 AM
Once again, 60 Minutes gives a great example of poor journalism......This is ancient news.  The ALT A market/Option ARM market has been an issue since day one of the "credit crisis".  Yes, we are facing more resets.  And, we might only be ½ way through the problem (though that doesn't automatically mean we will or won't have continued price drops).   Experts have been predicting that the real estate market won't be out of the woods until late 2009 at the earliest for about a year now.  Some have moved that date to 2010.  Given the state of the current economy, that … (1 comments)

mortgage: The Mortgage Mess - Don't Talk Yourself Out of Business - 08/27/07 01:37 PM
 Is the sky falling?  Your favorite loan officer may tell you so.  A local REALTOR® was overheard recently telling a client that this is the worst market since 1983!  Is that true?
Here's the scoop from someone who has been in the market since 1979.  The sky is not falling.  It's true that we are seeing unprecedented changes in the mortgage market.  American Home, New Century, Own It, Accredited, and on and on are out of business.  What's that mean to you and to your clients?  It means that now, more than ever, it's important that your buyer's work with an experienced, … (6 comments)

Brett Reichel, MLO 210215 (Homebridge Financial Services)

Brett Reichel

MLO 210215

Rancho Cucamonga, CA

More about me…

Homebridge Financial Services

Address: Portland, Gresham, Sandy, SE Portland, Milwaukie, West Linn, Oregon City, Canby, Clackamas, OR, 97015

Office: (503) 496-0405

Mobile: (503) 784-0482



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