mortgage: Greece Is The Word
- 06/29/15 05:51 AM
Greece's debt crisis has caused the stock markets to fall percipitously today. As of this writing the DOW is down 321.43 points or 1.79%. There is fear in the global markets that Greece is headed toward a default as they have closed its banks amid these fears. Greek banks and markets will be closed for the week. Greek prime minister Alexis Tsipras called for a referendum for July 5th on whether to accept the bail out deal being offered by its international creditors. Many of the terms are tough for Greece and Germany has been the most staunch opponent of reworking … (6 comments)
mortgage: More Credit Reporting Changes To Help Consumers
- 06/08/15 03:37 AM
As you may have heard there has been a number of actions brought forth by state attorney generals dealing with the way credit reporting agencies issue credit scores. Some of these changes include attempts to help those with "thin credit" acquire a credit rating while others are geared towards limiting the damage that medical collections can do to your score. There is another action brought forth by the AGs of 31 different states that has resulted in a new agreement regarding the requirements for collection account reporting. Below are some of the highlights: 1. Collectors will be required to delete accounts or … (1 comments)
mortgage: Already a bad week for MBS and it's only Tuesday
- 06/02/15 03:38 AM
Mortgage backed securities, or MBS, are the primary driver of interest rates and mortgage pricing in the market. The higher the price of MBS the better interest rates and pricing for mortgage loans. Last week there was a small yet unsubstantiated rally in MBS. There was really no support for it. Yesterday the market corrected itself to the tune of losing 38 basis points. Today MBS are down 58 basis points as of this writing. Month over month MBS has ended every month lower than where it started since February. So what are the recent primary factors affecting MBS and where can … (1 comments)
mortgage: Advantages of a 15 year fixed rate mortgage
- 05/01/15 02:45 AM
Personally I am conservative with my finances. I haven't always been that way but having made some mistakes in my younger days my attitude has changed over the years. Many of those mistakes are a direct result of my habit of trying to predict the future. I'm an optimist so I almost always painted a rosier picture of where I'd be financially in a certain time frame than what my reality ended up being. It led to me taking unnecessary and sometimes downright foolish risks. Because of these experiences I have a difficult time selling a client on the idea of … (2 comments)
mortgage: New FICO Model Could Help (or Hurt) Potential Buyers
- 04/06/15 11:48 PM
For years FICO scoring has been the main tool lenders have used to determine credit worthiness of potential customers. But FICO is not only used in lending as insurers, utilities, and other services consider a consumer's FICO score when pricing or granting services. Fair Isaac Company, the company behind the FICO model has been under pressure from the government to change its model to allow more consumers to access credit and they have been testing a new model for some time in partnership with 12 credit card issuers. Under the old model things like payment history for utilities, rent and cellphones were … (37 comments)
mortgage: Coming Back From A Foreclosure, Bankruptcy, or Other Credit Event
- 04/06/15 02:43 AM
At the height of the real estate bubble many people were making some ill advised decisions while others simply fell victim to the ship sinking when the bubble burst. Foreclosures, short sales, and bankruptcy filing were a fairly regular occurrence in America. For many people this was the worst thing they could imagine. Losing their home or their good credit, points of pride for many, can have devastating emotional effects. I personally lost a home in 2008 after seeing a nearly 80% loss of income year over year, while my wife was pregnant with our second child. Since so many people were forced … (5 comments)
mortgage: Not to get too political but....
- 03/10/15 07:36 AM
First of all I'm registered as an independent. People ask if I consider myself more conservative or liberal to which I usually reply, "neither, I'm reasonable." I find toeing the party line to be a fruitless endeavor which leads me to the point of this blog. Often I talk to people that like to volunteer their political ideologies with me. It may be someone that was harmed during the crash (usually playing the victim without recognizing their own role in the mess) or someone that is unhappy with the current administration. Back to my other point, I understand that many were … (1 comments)
mortgage: 2015 looks good for jobs
- 02/09/15 04:25 AM
There are a number of factors that go into the pricing of a mortgage. Mortgage backed securities are a market driven bond that has pricing that fluctuates hour by hour. The higher that MBS are priced the better that is for mortgage rates and pricing. Other factors in the global economy drive the price of mortgage backed securities. Bad economic news usually leads to better mortgage pricing. Two weeks ago on two separate days MBS hit all time highs. Last week we saw a major correction. So with the unemployment rate dropping and consumer confidence so high why would we have … (0 comments)
mortgage: The fine print on FHA distress sale seasoning
- 01/28/15 03:07 AM
After the market crashed in 2008, really 2007, many people were forced to foreclose or short sell their homes. The modification help came a little too late for many people that were greatly impacted by the economic recession. Many of those people have now recovered and are looking to re-enter the housing market. In 2014 8% of home purchases were by buyers that had previously experienced a short sale or foreclosure. The GSE's waiting period for financing after a foreclosure is 7 years and after a short sale or deed in lieu is 4 years. Oddly enough when I worked in … (2 comments)
mortgage: A positive view of mortgage insurance
- 01/16/15 11:56 PM
As you all already know FHA announced that it's lowering the mortgage insurance premium on FHA backed loans effective January 26th. This announcement will lead to significant savings for those that need FHA financing to secure a mortgage loan for a home purchase over the current rates. This was a good move by FHA especially with the GSEs loosening guidelines and introducing a 3% down payment product. I've written a previous blog post about how due to the outrageous (previous)MI rates charged by FHA that they were being reduced to nothing more than a sub-prime lender. As I was reading some … (1 comments)
mortgage: What you need to know about the 3% down program
- 12/17/14 12:32 AM
On 12/8 Fannie an Freddie released details on the 3% down mortgage product that both will offer to qualified borrowers. Fannie Mae started offering the product on 12/13/2014 while Freddie will begin to offer it on 3/23/2015. Here are some bullet points. FNMA Lenders will be required to use automated underwriting systems to ensure borrowers have additional compensating factors such as good credit or cash reserves. (Ability to Repay sound familiar) Loans must be fixed rate Must be secured by a 1-unit principal residence. Manufactured homes are not allowed under this program. No income limit requirements At least one buyer must … (3 comments)
mortgage: First Time Buyers Being left behind
- 10/29/14 08:29 AM
The NAHB Eye on housing website recently posted an article about the decrease in percentage of existing home sales to first time homebuyers, which you can read here.
I'd be interested in hearing other professionals' opinion on how we can increase the number of first time home buyers entering the market and the reasons you all feel that this number is so low. In my opinion it is a combination of the following:
1. The age group that would make up the majority of first time homebuyers was put off by the housing crisis. Many of these young people saw their own … (3 comments)
mortgage: Solar Leases on Conventional Loans
- 10/27/14 03:30 AM
A number of homeowners have chosen to get solar on their homes. Many of which have chosen to lease the panels versus purchasing them. Solar power is great and whether to buy or lease the panels depends on the needs of the individual. However, if you plan on selling your home in the near future her are some things to consider about solar leases pertaining to the ability for your buyer to obtain financing on your home: Our company requires us to request an exception and this is the minimum documentation/debt calculation requirements. Additional requirements may be required by the specific investor. … (24 comments)
mortgage: Businesses that treated us well Wednesday Edition
- 10/15/14 06:08 AM
I've been doing this on Fridays but there are so many to mention that it would take years to get through them all, so I'll do Wednesday and Friday now. Again, this is dedicated to businesses that stepped up to help us while our daughter was battling Leukemia. She was 8 at diagnosis and didn't make her 9th birthday which would have been in July. During the roughest time of our life so many people lended emotional and financial support. Many of these people are business owners and the best way I know how to pay them back is to … (0 comments)
mortgage: Why Protect Your Transaction is Such a Great Tool For Agents
- 10/07/14 09:03 AM
You may have read my previous blog about Protect Your Transaction, below is from an agent's blog. I'm sure every agent that has been in the business long enough has run into this on occasion. Protect your transaction (PYT) can definitely help eliminate this. By offering a $10k assurance to the buyer it not only strenghtens their offer but motivates them to provide the correct information up front before searching for a home. This will save you, the agent so much time since the borrower can only qualify for the $10k assurance if they provide us with the documentation up front. … (0 comments)
mortgage: Pre-qualifications falling off: Protect Your Transaction
- 10/02/14 03:49 AM
Protect Your Transaction Explained in Detail Protect Your Transaction (PYT) was developed for a true need in the industry. If you would buy a phone and pay $99.00 plus maybe the added insurance of $11.00 a month why is it that a loan has ZERO recourse for the lenders non-performance? I have personally seen many peoples lives turned upside down due to a HORRIBLE lending process. The lender didn't check the documentation UP FRONT! (who does that!) Then YOU the REALTOR take the client out looking at homes, banking on the fact that the lender did their job UP FRONT. You show them 10, 12, sometimes up … (0 comments)
Greece's debt crisis has caused the stock markets to fall percipitously today. As of this writing the DOW is down 321.43 points or 1.79%. There is fear in the global markets that Greece is headed toward a default as they have closed its banks amid these fears. Greek banks and markets will be closed for the week. Greek prime minister Alexis Tsipras called for a referendum for July 5th on whether to accept the bail out deal being offered by its international creditors. Many of the terms are tough for Greece and Germany has been the most staunch opponent of reworking … (6 comments)
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