I came up with the greatest idea today. I was washing my hair, thinking about ways to increase business, and had a Eureka moment!! It was just the greatest idea I had had in a long time. I was so excited about it. It was all I could do to finish washing my hair. As I finished getting ready, I was so afraid that if I waited to long to share it with my Branch Manager, I would forget it. (One of the hazards of having terminal CRS)
So, instead of taking an additional 15 minutes to "do" the mop that is my hair, I tied it up in a knot on top of my head and headed into the office. I called my BM to make sure he was going to be in the office. I just knew that my idea was not one that I could adequately explain over the phone. What if he had questions that I had not yet considered? Dead air is not good on the cell phone. Not fear, however, he was in the office.
I walked in and immediately told him I had a great idea. I proceeded to tell him about my brilliant idea that would save the lending market. We offer to refinance borrowers out of adjustable rate loans, into fixed rate loans. In our area, many new home owners are upside down because the got very high ltv loans and values have dropped dramatically. We offer to refinance 100% of what the borrowers home is currently worth, and resubordinate the difference between the original current balance and the current value.
For example: Current loan balance=$300,000. Current value=$200,000. We refinance the $200,000 into a fixed rate and subordinate the remaining $100,000 with the current lender.
Thus, the borrower is not forced to short sell or go into default and foreclosure. Their payment amount is decreased. The original lender gets some return on their investment, and values do not decline as rapidly simply because of too many short sales. Sounds like the perfect solution....right??
That is when my BM told me that FHA had already thought of that and called it FHASecure. If you haven't checked it out, go ahead and check it out. It really is a great idea, even if I do say so myself. I won't save everyone, but it will save those who are credit worthy, actually making enough money to make mortgage payments, and have shown credit responsibility. Only 3% equity is required.
Don't cha just love it when you're a day late and a dollar short??
Comments(6)