I get this a lot, as a loan originator a potential home buyer calls, especially a first time buyer and we discuss what is needed to buy a home. We cover the credit history, the job and income history, record two years of residence history, talk about debt to income ratio, then we get to the savings. DO I NEED MONEY TO BUY A HOME? There are several loan programs that do not require a down payment, or one can use a grant program in some cases. So, having a down payment … (76 comments)
loan originator: FEDS TO THE RESCUE WITH LOAN OFFICER COMPENSATION RULE
- 07/22/11 08:19 AM
FEDS TO THE RESCUE WITH LOAN OFFICER COMPENSTAION RULE - or not! L O Compensation Rule - Requires the originator of the mortgage loan set an amount they want to earn and not vary that from loan to loan, regardless of the type of loan or amount of time or work that loan takes to get done. Income for originators particularly at banks is slashed. RESULT - LOST ORIGINATOR INCOME AND POSSIBLY CAREER ENDING. When there is less income, will someone even want to originate loans for a living? How does this help in the day of high unemployment and hard … (2 comments)
loan originator: WHAT ARE LOAN LEVEL PRICE ADJUSTMENTS?
- 07/05/11 07:27 AM
WHAT ARE LOAN LEVEL PRICE ADJUSTMENTS? - OR OTHERWISE KNOWN AS LLPA'S IN MY INDUSTRY. HERE IS WHAT THE CONSUMER NEEDS TO KNOW about loan level price adjustments. What are they? Do all borrowers get them? Can they be avoided?
Fannie Mae reeling with losses on mortgage loans has implemented "loan level price adjustments". These adjustments can change the interest rate significantly, or can increase fees at closing for borrowers. These fees apply to the mortgage loans that are underwritten according to fannie mae guidelines. When housing is struggling to recover it would make sense that there not be roadblocks … (2 comments)
WHAT ARE POINTS? Points can be classified as an origination fee or discount points. Depending upon how good the mortgage loan originator is in explaining the costs and fees, it can be unclear as to what a borrower is being charged points for. Points are money - whether you pay in cash or finance them. WHY ARE POINTS CHARGED? Points can be charged to improve an interest rate (buydown) or to cover other costs associated with the loan program. THE FIRST STEP IS TO DETERMINE WHAT THE POINTS … (0 comments)
loan originator: BUILDER SAYS BUYER MUST GET APPROVED BY THEIR LENDER
- 05/23/11 09:31 AM
BUILDER SAYS BUYER MUST GET APPROVED BY THEIR LENDER EVERY TIME I SEE THIS IN A CONTRACT I SEETHE. Often when I see this it is because the builder OWNS or is OWNED by the same principals as the lender. When I'm working with a repeat borrower and a Realtor I've known for many years and the borrower has known the Realtor for years as well, I hate that a builder can have a pre printed contract "buyer must get approved by builder's lender" and it goes uncontested. Why should a buyer have to be forced into using a lender and loan … (6 comments)
Buying a home can be challenging. A few years ago it was less so because there were so many loan programs and real estate seemed to always be going UP in value. It is different now. There are a lot of homes to choose from, but 50% of those are distress sales (either in foreclosure or short sales). You need to have your ducks in a row to navigate the process. You want to end up with the home of your dreams - not the home of your nightmares! If you are buying … (0 comments)
loan originator: LOAN OFFICER COMPENSATION RULE - WHERE WILL IT LEAD?
- 04/19/11 05:52 AM
LOAN OFFICER COMPENSATION RULE - WHERE WILL IT LEAD? This is the question many of us are asking. On April 01, the Federal Reserve's rule for loan officer compensation went into effect. While the majority of originators are getting used to a different way of doing business, there are some who say it is business as usual. For me, I'm still pondering how the loan officer compensation rule will affect lending overall in the long run. Will there be fewer souces and fewer choices for consumers? Logic would say this would be one effect of the rule. Our industry has withstood … (1 comments)
loan originator: SAD, SAD DAY FOR AMERICA!
- 03/30/11 01:59 PM
SAD, SAD DAY FOR AMERICA! The court upheld the Federal Reserve's Loan Officer Compensation Rule set to go into effect on April 01. No fooling! National Association of Mortgage Brokers and National Association of Independent Housing Professionals both had law suits to delay the implementation of the "Rule", both were denied today. There were numerous supporters of a delay in the Senate and Congress along with the Small Business Association, who could see small business suffer at the hands of this "Rule" I don't have to tell anyone how difficult the housing market has been across the nation. As Loan originators … (7 comments)
loan originator: TRIGGER LEADS EXPLAINED
- 03/11/11 06:22 AM
TRIGGER LEADS EXPLAINED - "Trigger leads" most likely is a term home buyers or home owners have not heard BEFORE they apply for a home mortgage. "Trigger Leads" is the term that comes up when a home buyer or a home owner applies for a home mortgage and provides the information necessary to pull a credit report. When they supply the loan originator their personal information to pull credit, they would likely expect that information is between the two of them only. For instance when I work with a home buyer or home owner, I explain to them that I don't do … (0 comments)
loan originator: APRIL FOOL'S JOKE?
- 02/01/11 04:00 AM
APRIL FOOL'S JOKE? On April 1st the Federal Rule regarding Loan Officer Compensation goes into effect. In a nutshell this means that loan originator needs to negotiate his/her income with his/her lender and it cannot change from loan to loan. In the past originators have had the ability to pick up some of the costs for the borrower from the income paid to him by the lender. For instance if the originator was going to make $2000 on a loan, they could opt to give the borrower a $500 credit. In some instances the borrower could pay a slightly higher interest rate and get … (0 comments)
loan originator: YES I NEED ALL THE PAGES OF YOUR ASSETS
- 10/05/10 04:02 AM
YES I NEED ALL THE PAGES OF YOUR ASSETS. One of the hardest thing to get from borrowers is a copy of their bank statement. Why is this? When I gather information for a loan application and I request a copy of the last bank statement or 401K statement to prove the assets. I usually get one of the following: One page with the balance on it. (Hm-mm where did the money come from?) One or more pages that have no reference to the borrower's name or account number (Hm-mm, is this your account?) A printout on plain paper from the … (3 comments)
DO I NEED MONEY TO BUY A HOME?
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