mortgage: The end of the Realtor - 06/14/19 12:52 PM
Graphs and Articles provided by National Real Estate Post and GeekWire
I wanted to pose the question: Are we seeing the end of the real estate agent? More importantly, was this perpetuated by the real estate agents themselves? So we have 2 very large internet companies, tech companies that have been involved in real estate now for awhile, I’m talking about Zillow and Redfin. Both of them are getting involved in real estate in different ways. This has had a huge impact on the reality of the home market , the appearance of companies like this has started to interrogate the very … (2 comments)

mortgage: Does a Trade War mean a necessary bad outcome? - 06/13/19 11:07 AM
I keep seeing articles about mortgage applications in decline, when we are booming and seeing a very healthy market.  Buyers are getting the offers they want as the market has shifted from a definite seller's market to a healthy and balanced buyer's market.  We were seeing 5+ offers on properties in early 2018, and now the one offer is usually accepted by the seller. This coupled with low interest rates is fueling a strong market and huge amount of mortgage applications for us in South Florida. So I'm surprised when I see news like this.
This MPA article talks about the effect … (0 comments)

mortgage: Live Well Financial halts reverse mortgage originations - 05/24/19 11:01 AM
One of the biggest mortgage lenders in the game has abruptly shut down operations regarding reverse mortgage originations. The Virginia based company, Live Well Financial, was founded in 2005 by Michael Hild, a local entrepreneur and former Capital One executive.
The originations came to a stop alongside more than a 100 employee’s careers, the statement came to the public with no excuse for the terminations, all but a “liquidity crunch” rumour, putting a stop to new all new loan possibilities.
But the real story was sadder, the company decided not just to stop all reverse mortgage related operations, the truth is they’re … (0 comments)

mortgage: Buying VS. Renting. What's the difference? - 05/22/19 12:09 PM
Let’s talk about buying and renting property. Many people prefer to rent their living space instead of securing a mortgage, based on different facts: no long-term commitment, lower payments, fewer maintenance costs, to name a few. And, when people come to get some kind of advice with me, their opening line normally goes like this:
“Phil should I buy my own house? My rent isn’t bad, it’s actually a little lower
than a mortgage payment right now!”
First of all, you should take in consideration the current rent prices, rent is higher than the mortgage payment in most states, especially in … (0 comments)

mortgage: Mortgage application drops as rates increase - 05/21/19 09:58 AM
Mortgage sales and applications saw a big drop through all of April. There’s been a huge growth on external economies (mainly european), this normally leads to an increase in local concerns and fears. As a consequence, we’re seeing an increasing drop on new mortgage acquisition and even less activity on the refinancing area.
“Borrowers remain extremely sensitive to rate changes (…) The strong economy and job market is keeping buyer interest high, but rising mortgage rates could add pressure to the budgets of some would-be buyers.” said a representative of the Mortgage Bankers Association (MBA).
But overall, the stability of the full housing … (0 comments)

mortgage: Are we expecting a recession this year? (Part II) - 05/01/19 08:52 AM
As I wrote in the previous post, when the 10 Year Treasury yield gets below the 2 Year’s Yield (which is right now at 2.25), it’s usually when we see a recession coming.
Again, this is nothing to be scared about, recessions are normal. But when we talk about mortgages and real estate it’s not a bad thing. A recession means that less money is being spent and consumer confidence is down, it means that as an economy people are spending less, they say: “Let me hold my money just in case”. When that happens, the FED and the government, wanting to … (0 comments)

mortgage: Are we expecting a recession this year? (Part I) - 04/15/19 11:34 AM
People ask me all the time: “Phil, why do you keep saying a recession is coming?” I don’t wanna sound like the crazy guy screaming “the end is nigh!” around the street but, there are two big indicators to consider.
First of all, unemployment. Unemployment has been historically low for a couple of years and, whenever this happens we always see a recession coming. Right now it’s at about 3.8%, and when we see it go to 4.1% unemployment or higher, you can expect recession talk to really heat up.
Second, the Inverted Yield Curve (IYC). Sounds difficult, right? But, bear with me … (0 comments)

mortgage: VA Loans: The Good & the Bad - 04/08/19 12:18 PM
I want to talk a little bit about the positive and negative sides of a VA Mortgage Loan. So, I’ve talked about the main benefits a VA Mortgage can provide for you and your family, how you get the best financing available in the market today.
The VA Home Loan is one of the few mortgages that requires you to get a termite inspection.  A prospective borrower needs to show a valid termite inspection that shows you’re either clear of WDO’s (Wood Destroying Organisms) or that you remedied the infestation (if you had one).
If you have drywood termites in your … (2 comments)

mortgage: Will Housing Affordability improve in South Florida? - 04/04/19 09:05 AM
Housing affordability in South Florida is still being affected by last year's hurricane season. Nevertheless, the huge drop on mortgage delinquency shows that the market is recovering at a big pace, and not just in South Florida, but other US housing markets as well.
"The last few years have been difficult for homebuyers. From unsustainably rapid price gains to higher mortgage rates to tight supplies of homes for sale, it's been an increasingly difficult time to buy a home" said David Berson, from Nationwide.
Places like Iowa, Oklahoma, New Jersey, South Carolina, and Texas are expecting positive outcomes in the first part of … (2 comments)

mortgage: Reverse Mortgage Program becomes a priority in POTUS agenda - 03/29/19 03:57 PM
This week, the housing system became a new point in president Trump’s agenda, after he signed a memo regarding the long overdue reform, handing the task to the Department of Housing and Urban Development and the Treasury Department.
A year ago, the president’s budget gave a boost to the HECM program by increasing the cap limit on reverse mortgages, and this new focus on the program shows that reverse mortgages are still a priority in the Trump administration:
“The Budget will again propose permanently lifting the cap of 275,000 loan guarantees to provide further stability for the HECM program. This proposal reflects the … (1 comments)

mortgage: The Fed & the interest rates it controls. (Part II) - 03/26/19 08:54 AM
If the fed only controls the adjustable, fed fund rate, then what controls the long term fixed rate mortgages? The fixed rates move with the Mortgage Bond Market, which is Mortgage Backed Securities (MBS). You might ask “but aren’t fixed rates, fixed? How can they go up and down?” Fixed rates go up and down until you lock your loan during the mortgage approval process. So a 30 year fixed rate will move daily with the markets until you lock it for 15, 30, 45, or 60 days before closing. The fixed rates are very volatile (before locking) when left to … (0 comments)

mortgage: The Fed & the interest rates it controls. (Part I) - 03/25/19 02:33 PM
We hear mortgage professionals (mortgage brokers and mortgage lenders) misspeak all too often when attempting to educate the public on interest rates. These professionals hear “the Fed is raising rates”, and so they turn around a regurgitate what they hear, but they are telling the public that the Fed (aka US Federal Reserve) is raising the fixed rates most borrowers use when obtaining a home mortgage. This is completely incorrect, but sometimes they get lucky, like a broken clock is right 2 times per day. Let us dig deeper and learn the difference between the fed fund rate and the fixed … (1 comments)

mortgage: Ocwen acquires PHH Corp, lays off 2,100 employees - 03/21/19 11:18 AM
Ocwen Financial Corp, the West Palm Beach financial giant, had announced the big acquisition of PHH Corp (for more than $360 million), this last year. Now the company’s future has been put on hold, or at least for more than 2,000 of its employees. 
The company’s senior vice-president of corporate communications, Dico Akseraylian, stated that the merge of PHH (another big service provider) was obviously going to impact the internal operation of Ocwen, and the lay offs were to be expected.
Ocwen will be cutting down employee capacity in various branches including: Atlanta, Orlando, Houston, Glendale, Fort Washington and Waterloo. The West Palm … (1 comments)

mortgage: Mortgage delinquency, lowest in 20 years - 03/20/19 08:41 AM
Mortgage delinquency* and foreclosure rates have reached their lowest point in 20 years (in the USA alone). 4.1 percent of mortgages were in some kind of delinquent breach (in November 2018). [Source]
This has been a consequence of the solid rise in home equity, and the fall of high risk loans in the market, generating a secure and solid base for old and new homeowners looking for a mortgage.
*Mortgage delinquency occurs when a borrower fails to facilitate the necessary payments stated on a loan contract. Loans are dependent of the due dates of scheduled payments. Failing to establish payment gives the lender permission … (2 comments)

mortgage: Interest rates hit lowest numbers in a year - 03/19/19 05:00 PM
Mortgage interest rates are going down!
The 30-year fixed-rate average fell to 4.31 percent with an average 0.4 point. It was 4.41 percent a week ago and 4.44 percent a year ago. These interest rates haven’t been this low in more than 12 months.
“At 4.31%, the average 30-year fixed mortgage rate is at its lowest since February of last year, while these low rates will certainly get the attention of prospective homebuyers, the supply of homes for sale remains stubbornly low.” 
“Freddie Mac” Chief Economist, Sam Khater
Nevertheless, the refinancing of home loans went down 0.2% for the week,4.4% lower than last year. The … (4 comments)

mortgage: New rules issued over PACE program - 03/14/19 11:38 AM
The Consumer Financial Protection Financial Bureau (CFPB) plans to create new rules for the Property Assessed Clean Energy program (PACE), which will allow selected homeowners to obtain financing to better their home’s energy efficiency.
Programs like PACE will enable energy financing to gain a higher priority status over typical home mortgages, all borrowers will be able to repay their loans as part of their property tax bill.
The PACE “Advance Notice of Proposed Rule-making” will act as an “Ability-to-Repay” that would emulate the current mortgage lending system, requiring lenders to make a “good faith” determination on the borrowers capacity for repaying before making … (0 comments)

mortgage: Ben Carson to continue as HUD secretary despite rumors - 03/13/19 08:05 AM
Rumors regarding Ben Carson’s occupancy of the Housing and Urban Development Secretary (HUD) were debunked by the neurologist turned US secretary this past week.
The rumors surfaced when Carson, talking to the conservative press, mentioned venturing into the private sector after leaving public office, feeling he could have “as much influence, maybe more, there.”
He will continue to serve the POTUS “enthusiastically” and will finish the complete term, though Carson is considering staying for another term, if the President would ask him: ”…If President Trump desires that I continue, I will feel a duty to do so and would consider serving another term.”
“I’m … (0 comments)

mortgage: Tax Credit Extension - 07/04/10 04:14 AM
Great news for homebuyers under contract who couldn't close before June 30th.  The tax credit has been extended!
I have two clients that will benefit from this new extension.  One that was supposed to close June 30th, but because of title company issues (the REO lender's title company of course) could not close until July 1st.  And another is someone who ran into issues at underwriting because of a work related injury.  He is a police officer who was injured and is now collecting disability, but what he is collecting is guaranteed and the same as his base salary.  DTI looks … (2 comments)

mortgage: AMCs and the HVCC - 06/24/10 07:59 AM

Many of us in the business have been affected by the Home Valuation Code of Conduct (or HVCC) in one way or another.  The primary way that we have lost business or had to endure some extreme complications is because of the use of Appraisal Management Companies (AMCs).  But what most people don't realize is that the use of an AMC is not required for a loan to be HVCC compliant. 
WHAT?!  Am I saying that the Mortgage or Real Estate deal you lost because of an AMC did not need to die?  ABSOLUTELY! 
We have been hoodwinked and bamboozled into thinking that … (0 comments)

Phil Stevenson, CRMP, "Mortgage Nerd" in Miami, Florida and Texas (PS Mortgage Lending 305-791-4874 or 888-845-6630) Rainmaker large

Phil Stevenson, CRMP

"Mortgage Nerd" in Miami, Florida and Texas

Miami, FL

More about me…

PS Mortgage Lending 305-791-4874 or 888-845-6630

Address: 14100 Palmetto Frontage Rd Ste 104, Miami Lakes, FL, 33016

Office: (888) 845-6630

Office: (305) 791-4874

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