loans: (RAIN) Power of the People! - 09/28/09 02:35 AM
Reminds me of John Lennon;  "Power to the People," I can hear the music and John singing in my head. For some of you, you are just not old enough to remember John singing this. At that time, it was a protest type song.
Well in today's world Active Rain has given the power to the people and well, you all are using it quite nicely.
Stop for just one minute and think about what we've got here.
The WE that I'm talking about is all 160,289 members. That's today's count and you know that, without fail, tomorrow there'll be more … (7 comments)

loans: It Ain't a Done Deal, Till it's a Done Deal!!! - 09/22/09 02:34 AM
Once upon a time, in a very far off land (Dover, NH) there was a very young and enthusiastic Loan Officer (me) who was introducing the marketplace, made of of mostly Realtors, to what was referred to as secondary market loans. Back then Fannie Mae, and Freddie Mac were not the household words that they are today. The Realtors had been used to dealing almost exclusively with the local banks and had to adjust to the abundance of paperwork that the young loan officer requested. And ooooooooo the paperwork the underwriters wanted, and the questions they asked. They had to be kidding, right? But … (5 comments)

loans: "What's the Rate?" - 08/26/09 03:53 AM
Why is this the first question that potential customers ask? Actually it's quite simple. In most cases they don't know what else to ask.
This use to be a fairly easy question to answer. I'd really only need some basic information such as primary residence or investment property, FHA or VA, etc. Well that's all changed.
In today's marketplace a wholesale or correspondent lender better be pretty sharp when trying to quote an accurate rate and actually it's nearly impossible with the initial phone call. If you are not a loan officer and/or haven't seen what the pricing sheet looks like … (2 comments)

loans: IT'S Back-My olde friend the stated income loan. - 11/07/07 01:35 AM
After close to 30 years of lending I have learned that when markets experience a downturn many/most lenders/investors overreact. They do so to sufficiently cover their butts. Apparently after further review, some of the lenders who had been acting in a prudent underwriting fashion have examined their portfolios, and found that most of their stated income clients were performing well. And what a great market niche to have at this time. They now have the ability to acquire the best of the best.
Try these out for size.
95% ltv
stated/stated
single family/owner occ
680 min fico
The same parameters are available for second homes with a … (9 comments)

loans: Debts Discharged in Bankruptcy-DON'T PAY THEM! - 11/07/07 01:00 AM
In the November 12th issue of BusinessWeek there is a feature article entitled Prisoners of Debt. It's contents brings out issues of how companies and the credit bureaus either ignore the filings and the requirements that go along with them or, if you can believe this, how many creditors are finding ways to recover the debt and/or generate a profit. Please let me qualify this by stating that these are my personal opinions and you might want to pick up a copy of this issue yourself, it's good reading.
So how could this be?
In it's simplest form, a bankruptcy discharge relieves the … (8 comments)

loans: Bank's don't want to foreclose, or do they? - 10/23/07 01:14 AM
The chic comments are that banks don't want to foreclose because it costs too much money. Is this really true? The next comment usually involves why short sales are a better avenue. Let me pose 2 questions and draw some conclusions.
Have you (as a Realtor) or your home owner ever called the mortgage servicer and asked for the "short sale department?"
Good luck with this. It doesn't exist. Be prepared for the following response.
"Could you hold please?"
Five million extensions later you are disconnected.
You are looking for information, which you cannot acquire, because it does not, may not exist in any consistent form. … (13 comments)

loans: CW's Plan, Will it work? - 10/23/07 12:37 AM
CNNMoney.com Reports that Countrywide announced a plan to refinance or modify $16 Billion of it's loans due to reset a higher rates. This program is targeting subprime loans of which they originated or purchased.
Sounds good, right?
Okay, back to reality now.
Many/most subprime borrowers took 100% financing and also had the sellers pay their closing costs. At the time of closing they didn't have any equity or had negative equity in the property. If you haven't been living on a deserted island you probable know that in many areas property values have decreased. If you didn't have any equity to begin with and … (11 comments)

loans: The Different Faces of FHA - 10/10/07 01:21 AM
As a mortgage lender I have been getting a lot of emails from investors looking for FHA business. In most cases they are promoting that they do "manuel" underwriting and specialize in the tough FHA deals. These days they are all tough, or at least most.
This raises the question as to the similarities, or lack thereof, of FHA applicants.
Here's 3 different looks of FHA buyers from a lenders perspective. 
Please keep in mind that as a lender we are running all of or most FHA loans on an AUS (automated underwriting system) upon receipt of the file. Here's what the findings are;
Approved … (6 comments)

loans: Financial Reports-Who can you trust? - 10/08/07 12:14 PM
CNNMoney.com reports, "Jobs gain back on track."
Good News, right?
How about this?
"The Labor department NOW (my emphasis) reports that August had a gain of 89,000 jobs, a big upward revision from the originally reported 4,000 job loss in August."
"The earlier reading, the first job lost in 4 years (which apparently didn't really happen), had shaken the markets and raised concerns about the threat of a recession."
Let me repeat that the job loss didn't happen, it was only reported that it did by credible news reporting agencies, with the corresponding effects.
Now, did anything significant happen last month? Think real hard now.
CNNMoney happened to … (7 comments)

loans: Where's the Bottom? - 10/05/07 02:06 AM
I originally titled this article as Mr(s). buyer have you learned anything, but i changed my mind and thought  Where's the Bottom  to be more appropriate.
So, where is the bottom and how will we know?
I think that it's kind of obvious that we will know when the prices have bottomed out because the national media will let us know. They've done such a fine and impartial job of reporting all of the changes in the real estate markets that this can be the only answer. Also quite obviously they have more knowledge about the markets than anyone else. We know … (14 comments)

loans: a little "secret" about stated income loans (don't tell anybody) - 10/04/07 03:43 PM
Please don't tell anybody. It'll be our little secret.
There is a full doc Fannie Mae/Freddie Mac loan which turns into a stated loan product just like magic.
I know, you don't believe it. It's just another one of those mortgage lenders tricks.
READ ON!!!
If your buyer has a good score, decent assets, and at least 5 to 10% down they may qualify for conventional full doc rates without having to verify their income.
Here's the secret:
This isn't new. BUT your lender needs to be sharp (know what their doing).
Here it is;
When I run a qualified buyer, up front, on a AUS (automated underwriting … (41 comments)

loans: BANK FSBO'S-WHO REPRESENTS THE BUYER??? - 10/04/07 02:05 AM
Okay, I couldn't help myself. Today's local rag had a bold headline which pertained to the local real estate market. Since it was negative it bears no repeating here, but in the article it reported about a great new bank fsbo program where the buyers could go directly to the bank to buy foreclosed properties. The bank involved proudly announced that they were no longer listing their foreclosures with Realtors but were going directly to the public.
Before I forget I would like to point out to all the Realtors who have faithfully referred clients to this bank, that they may want … (6 comments)

loans: A HUD VIEWPOINT-SINS OF THE NON PROFITS - 10/04/07 12:37 AM
First of all and most important, I am not a spokesperson for Hud and my opinions are just that, my opinions.
For those who may not be familar with the non profit downpayment assistance programs one of the most important or the most important point is that the assistance is a gift.
From the outside it appears to be a lot of fancy dancing to make this seller's concession, ops we're not allowed to call it that, appear to solely be a gift from the non profit organization involved. The gift comes from the non profit organization's general pool and not from the … (6 comments)

loans: DID HUD JUST PUNISH THE WORKFORCE??? - 10/03/07 10:59 AM
At least in Florida where I live, and I would believe that it is the same in most other states low and moderate income buyers will still have many options for downpayment assistance from local, county, and state government programs.
BUT WHAT ABOUT THE GENERAL WORKFORCE BUYERS?
What I'm taking about are the individuals and families who will have income which exceeds the limits for many/most county/state downpayment assistance programs. Previously these buyers would have the opportunity to utilize a DPA program through a non profit organization. Soon that may no longer be the case. In their infinite wisdom HUD has come … (6 comments)

loans: THE SNOWBIRDS ARE COMING-WILL SALES INCREASE? - 09/29/07 01:21 AM
Look out! Here they come!
The population will increase and the traffic, oh the traffic, we know what that will be like but;
Will sales increase?
I would like to immediately discount or throw out any historical perspective because I believe our current market is unique.
Snowbirds usually already own their own homes or have secured rentals for the season or the amount of time they intend on spending with us. However, i can't believe that they will be able to miss the fact that we currently have excellent prices, great rates, and a wonderful selection of properties. Also ask any snowbird if their residence … (5 comments)

loans: OH NO! CONSUMERS ARE SPENDING!!! - 09/29/07 12:56 AM
Oh no! not again! more good news! Well they had to report it!
On Friday, September 28th CNNMoney reported that consumer spending tops forecasts.
THIS IS A BIG DEAL.
"Spending by consumers is crucial to the nation's economic growth, accounting for nearly three quarters of economic activity," CNN reported.
So:
The real estate market is ailing, but consumers are spending.
The subprime market melted down, but consumers are spending.
There's been substantial layoffs in the mortgage/real estate industry, but consumers are spending.
What does it really mean?
Here's one mans opinion, for what it's worth. 
While real estate is a very important part of the national economy, those of … (4 comments)

loans: GOT PROBLEMS? CALL YOUR LENDER!!! - 09/22/07 04:18 AM
It's hard to believe, but many homeowners with mortgage problems don't call their lender or don't return phone calls and/or  letters  from their mortgage  lender.  Both Secretary of Treasury and Fed Chairman Bernanke delivered the same message to Congress, before you start making changes to fix the problem we need to encourage all homeowners with problems to contact their lender.
Secretary Paulson told the House Financial Services Committee that 50% of foreclosures occur without borrowers ever talking to their lenders. 
Incredible!
Call to action; we can help here, spread the word, got a problem;
Call your lender!!!
What do you have to lose?
Here's some remedies;
modification-the … (11 comments)

loans: THE FED CUT-Simply Stated! - 09/19/07 07:51 AM
The Fed cut the rate 1/2%.
The Bond market didn't like it.
Why?
The Bond market sees the Fed's #1 concern as fighting inflation. It's kind of a selfish position, although true, since inflation helps deteriorate the value of the bonds.
The Bond market perceives the current Fed cut as possibly being inflationary.
Result;
The bond market pushes up mortgage interest rates.
Da dit Da dit Da dit. That's all folks!
 
 
ps; the Bond Market's response has soften this afternoon. Tomorrow's another day.  
… (9 comments)

loans: SOUTHWEST FLORIDA-THE NATIONS BEST BUY! - 09/19/07 01:40 AM
Hey I've lived in Southwest Florida for 15 years and there's a gooooood reason for it. It's simply marvelous!!!
Let's see:
plentiful white sandy beaches, check got em.
golf courses, best quality anywhere, check got em.
boating and fishing, check got em.
This is just the obvious stuff! This list could go on forever!
There's a reason why we experienced the growth in real estate sales that we did because this is a great place to live. Anyone like to discuss quality of life?
great prices, check got em.
lots of quality choices, check got it.
great rates, check got em.
experienced Realtors and lenders, check got em.
I can help with … (4 comments)

loans: FED CUT, WHAT HAPPENED? - 09/19/07 01:11 AM
Okay it was 2:30 time to go take a look at what the Fed did. 1/2%, I don't believe it!
My initial reaction: I don't like it, bad move.
Just one man's opnion, or maybe not.
The stock market loves it. That's not necessarily a good sign for mortgage rates. The bond markets initial reaction is to push rates higher and today bonds once again open with a burst of activity pushing rates up. Keep an eye on this.
The only thing I think was a plus in the mortgage area was that the markets had already adjusted over the last week or so for … (2 comments)

 


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