3 steps to an easier home loan … Mortgage Rates at new record low!


Getting a home loan these days can be a painful process for many, but it doesn’t have to be.  Here’s 3 great tips on how to make your transaction go much easier.  Mortgage rates just hit new record low!

Does your mortgage bank send your financial info overseas?


Did you know that most big banks outsource their loan processing and other parts of the mortgage application process?  Don’t let your finances go to a foreign country – watch today’s video for details

Big Rate Improvement, and new AMAZING mortgage loan products!


Happy Easter everyone!  You have got to hear about these new loan products we have available … such as 20-financed properties, only ONE-year taxes for self-employed borrowers, asset-based loans, and more … watch today’s video!

Piedmont Victorian – 5775 NE Garfield Portland, OR 97211


I recently toured a beautifully remodeled Victorian home in the Piedmont neighborhood in Portland, OR. Here’s a short video about the home, which is listed at $399,000:

This house really caught my eye from the moment I stepped on the front porch. Here is a photo gallery of pics I snapped with my phone while I toured the house with Joe:

This slideshow requires JavaScript.

The owners have taken great care in restoring and remodeling this house, with a great mix of classic and modern elements. Joe even told me how much time he spent filling the original posts on the porch, and it is a lot!

Financing for 5775 Ne Garfield

There are a range of home loan options available for this property. As I said in the video, it does qualify for FHA financing, which has flexible credit guidelines and financing for up to 96.5% of the home’s value. To learn more about financing this property, or any other in Oregon and Washington, feel free to contact me at 503.799.4112 or email jason@mypmb.us

You can learn more about this great home at the following website:

http://www.5775negarfield.com

Contact the listing broker,

Michael Rysavy
Oregon Realty
503.860.4705

Thanks for taking a minute to check out this property!

Jason Hillard

Mortgage Advisor MLO #119032

Pinnacle Mortgage Bankers

a div of Pinnacle Capital Mortgage Corp

1706 D St Suite A Vancouver, WA 98663

http://www.homeloanninjas.com/

NMLS 81395 WA CL-81395

Equal Housing Lender

What the heck does “loan-to-value” mean?


There are lots of terms we use in the mortgage industry that aren’t part of everyday parlance. Today, I’ll talk a little bit about “loan-to-value”, or LTV for short.

In fact, I have a video that’s less than 90 seconds long if you’re in a hurry:

Loan-to-value

So, just to recap what I said in the video, your loan-to-value is the percentage of your home’s value that you finance with your home loan.

Whether you a purchasing a home, or refinancing your existing mortgage, LTV is an extremely important factor in making an educated decision about your home loan.

I’ll give you an example:

FHA – When purchasing a home using an FHA home loan, you can finance up to 96.5% of the appraised value of the property. If you are refinancing, you have two options: “rate & term” or “cash-out”. Rate & term means you are refinancing to lower your rate or change the length of your loan. A rate & term refinance is capped at a 97.75% LTV for FHA. Cash-out FHA refinances are limited to 85 per cent of the value of your home. If your current mortgage is an FHA loan, you can refinance with an FHA streamline, which does not have an LTV limitation.

So your needs define your loan-to-value, which helps define what home loan program you are going to apply for.

If you would like to learn more about loan-to-value, other mortgage terminology, or home loans in Oregon and Washington, I invite you to visit my site or contact me. I am long on answers and short on sales pitches 🙂

Thanks for taking a minute to read this post!

Picture: Jason HillardJason Hillard – homeloanninjas.com

Mortgage Advisor in Oregon and Washington MLO#119032

Pinnacle Mortgage Bankers

a div of Pinnacle Capital Mortgage Corp

503.799.4112

jason@mypmb.us

1706 D St Vancouver, WA 98663

NMLS 81395 WA CL-81395

Equal Housing Lender

New Rules for Home-Loan Brokers, by Amy Hoak, WSJ.com


New rules governing how mortgage loan officers are paid for their work in originating home loans are meant to protect consumers and make it clearer how the mortgage professional is making money off the loan.

But some in the industry say the rules are creating new problems.

The Federal Reserve’s rules are aimed at limiting predatory lending. They prohibit loan officers from being compensated based on the loan’s terms and conditions other than the loan amount. For example, a loan officer can’t earn a higher commission for selling a mortgage with a 5.25% rate versus a 5% rate, says Tom Meyer, chief executive of J.I. Kislak Mortgage, a mortgage lender based in Miami Lakes, Fla.

Mortgage brokers and loan officers are prohibited from “steering” people into mortgages based on the compensation they’d receive. Another element effectively creates a rule on who pays a mortgage broker: Either the lender pays the broker directly or the consumer does — but both can’t pay for the services.

With the new rules, “consumers shouldn’t have to worry about brokers putting their own financial interest in front of the consumer’s,” says Kathleen Keest, senior policy counsel for the Center for Responsible Lending, a nonprofit consumer advocacy group. Unlike some in the industry, she says she doesn’t think the rules will increase borrowers’ mortgage costs.

Some in the industry also claim that the rules’ nuances put mortgage brokers at a competitive disadvantage — giving them less flexibility on compensation than large banking institutions — and it will ultimately usher more business to larger banks.

It’s a matter that held up the implementation of the new rules, which were supposed to go into effect April 1. The U.S. Court of Appeals issued an emergency stay at the last minute, in response to requests from industry trade groups. But after additional review, the rules went into effect April 5.

“I like the idea of a level playing field. I like the intent of structuring what is realistic for a loan officer to make,” says Lisa Schreiber, executive vice president of wholesale lending at TMS Funding, based in Milford, Conn. But some elements of the new rules, she says, could end up costing consumers more. A wholesale mortgage operation provides underwriting decisions and makes funding available to mortgage brokers.

One example of how consumers might be affected: A broker will lose some flexibility in altering his or her compensation, if it’s being dictated by the lender, Ms. Schreiber says.

“Say for whatever reason — maybe you were having a hard time getting documentation and you had to wait — the loan took longer than expected. There may be costs associated with that extra time. That was usually taken care of by the broker — that broker has been able to reduce his or her compensation,” Ms. Schreiber says. “With the new regulation, you as a consumer will have to pay for any fees. The broker will legally not be able to help you pay.”

Consumer advocacy groups, however, say these rules were needed to help protect consumers from unscrupulous loan officers unfairly trying to profit from mortgage loans, Ms. Keest says. It’s a practice that played a role in the mortgage mess that rocked the country, according to the Center for Responsible Lending.

“The new rules should mean that [the mortgage process is] more competitive, more transparent and should mean, overall, that it won’t be more costly for the simple reason that more transparency and lack of conflict of interest should mean it’s less costly,” Ms. Keest says.

Cameron Findlay, chief economist for LendingTree, an online marketplace that connects consumers with lenders, says compensation issues didn’t create the mortgage crisis.

“The crisis was created not by the origination of loans but the creation of loan types and securitization and sale of those structures to investors. Compensation was fuel on the fire, but did not create the fire,” he says.

Consumers in the market for a loan need to be extra vigilant about comparison shopping in the weeks ahead — making sure that what they’re being quoted and offered is competitive, Mr. Meyer says.

“In the short term, [the rules are] going to be so novel and so uncertain there may be a short-term cost to the borrowers,” he says. “I expect this is going to be a fluid environment in the next couple of months, with confusion about what is permissible and what is not.”

But this isn’t the only change the mortgage industry faces in the near future.

A proposal presented by federal regulators in March laid out a way to require banks to retain more “skin in the game,” or financial capital, when packaging and selling mortgage loans — a move to prevent some of the lending problems that arose and led to a meltdown in the credit markets. Also this year, there was a proposal on the future of Freddie Mac and Fannie Mae, the two government-sponsored enterprises currently under government conservatorship.

Both proposals, if and when they come to pass, may affect consumers, industry experts say. And one result may be that mortgages get more expensive.

Write to Amy Hoak at amy.hoak@dowjones.com

Broker Compensation Rule Delay Not Good for Business, by Michael Dolan, Broker Pro Mortgage


Some mortgage brokers were happy Friday that a law suit against a Federal Reserve rule, scheduled to take effect that day, had been stayed 5 days. I wasn’t. The rule controlled how to price mortgages. Here’s what I posted on a major mortgage broker discussion site (It got noticed):

This stay is terrible news for our industry because it further delays necessary clean up. I agree the new compensation rule itself is counterproductive and redundant.

But that’s not our biggest problem. The first problem is that exploitive and greedy hiring practices caused the need for government intervention. Too many broker companies treat employed LOs [Loan Originators] like crap: no training, no decent pay schedule. This exploitation in turn pressured LOs into decisions that were not in the interest of homeowners.

Second, our industry representation is ineffective and even embarrassing. Suing is the tactic of those who do not understand how the system works and cannot produce effective compromise. Industry leaders have responded like children who have lost a candy bar. They go to Washington, DC and are not professional enough to wear a suit and tie. They don’t even realize they are announcing to the world they are untutored rubes. Then we hear nutty over-statements like “we have the best lawyers in the country.” It wasn’t until about the last month they realized that complaining about their jobs is bad politics. So – too late – they began to contend the new compensation rule was bad for homeowners but never really made a compelling argument.

Today’s result: confusion. You know what, the rule is bad. But it’s not that tough to figure out. “Oh my God! How can an industry survive if you have to pay branch managers a salary?” Complaining about how the rule hurts your business makes you seem greedy and self centered. Look around. Who agrees with industry groups? Who is with us? Nobody!

After five losing seasons, you fire the coach. The current professional organizations and the people running them need to step aside and make way for educated professionals who can work with regulators, build coalitions, and explain what we are doing for homeowners.

Michael Dolan
BrokerPro Mortgage, LLC
1001 SW 5th Ave #1100
Portland, OR 97204

503-895-5428 (NEW)

425-998-0191
800-843-9010
mobile: 503-287-4876

http://www.BrokerProMortgage.com

License # 114972

LO Compensation Guidance Gets 11th Hour Treatment by Federal Reserve, by Nationalmortgageprofessional.com


The Board of Governors of the Federal Reserve System has announced the release of its “Compliance Guide to Small Entities” regarding Regulation Z: Loan Originator Compensation and Steering. The Compliance Guide summarizes and explains rules adopted by the Board, but is not a substitute for the final rule itself, which will be enforced come April 1, 2011. Regulation Z; Docket No. R-1366, Truth-in-Lending was originally published in the Federal Register on Sept. 24, 2010, and as mandated by the Small Business Regulatory Enforcement Fairness Act (SBREFA) Section 212(a) (3), an agency is required to publish a compliance guide on the same date as the date of publication of the final rule (in this case, Sept. 24, 2010), or as soon as possible after that date and no later than the date on which the requirements of the rule become effective (April 1, 2011). 

The rule prohibits a loan originator from steering a consumer to enter into a loan that provides the loan originator with greater compensation, as compared to other transactions the loan originator offered or could have offered to the consumer, unless the loan is in the consumer’s interest.

The “Compliance Guide” states that “the regulation applies to all persons who originate loans, including mortgage brokers and their employees, as well as (as defined by the Federal Reserve) mortgage loan officers employed by depository institutions and other lenders. The rule does not apply to payments received by a creditor when selling the loan to a secondary market investor. When a mortgage brokerage firm originates a loan, it is not exempt under the final rule unless it is also a creditor that funds the loan from its own resources, such as its own line of credit.”

According to the Compliance Guide: “To be within the safe harbor, the loan originator must obtain loan options from a significant number of the creditors with which the originator regularly does business. The loan originator can present fewer than three loans and satisfy the safe harbor, if the loan(s) presented to the consumer otherwise meet the criteria in the rule.”

“The National Association of Mortgage Brokers (NAMB) believes that this does not satisfy the requirement as written,” said NAMB Government Affairs Committee Chair Michael Anderson, CRMS. “NAMB is reviewing the Compliance Guide and will taking appropriate action.” 

Click here to view “Compliance Guide to Small Entities” regarding Regulation Z: Loan Originator Compensation and Steering.

Wintrust Mortgage Corp – Wholesale – Wholesale – Agency, FHA/VA


Brokers today received an announcement via email that Schaumburg, IL based Wintrust Mortgage Corporation would be closing its Wholesale Lending Division effective immediately:

“Effective today, October 15, 2010, Wintrust Mortgage Corporation is exiting the Wholesale business after many years of service to the mortgage brokerage community. This is a business decision based on our need to better focus our assets and attention to the continued growth of our Retail and Correspondent Channels.”

One insider we spoke with told us all of the Wholesale Account Executives were let go earlier today. That amounted to 6 people aligned with the Schaumburg, IL corporate office and another 7 people out of the Overland Park, KS wholesale office (based on the contact lists posted on their web site). We’re told underwriters and an untold number of support staff will remain until sometime in December to close out the pipeline. Our source didn’t have details on the wholesale division’s production, but the company overall averaged more than $302 million per month in 2009.

 

The Path to Fannie Mae and Freddie Mac Approval, Reoblogsite.com


So, you have been a mortgage broker for a while now, and you think you are ready for the next step: approval by Fannie Mae and Freddie Mac as a Seller and Servicer, so you can service your own loans.

In general, to be an approved Seller and Servicer for either FNMA or FHLMC, you are going to need to meet the following requirements: a corporate net worth of $500,000 to $1 million; adequate warehousing lines; three letters of reference; errors and omissions insurance and fidelity insurance; an excellent quality control program; and personnel experienced in all aspects of mortgage origination, processing, underwriting, funding and shipping, administration, service accounting and, of course, servicing itself.

These are only general, minimal requirements, so let us take a more detailed look at the requirements and the process. I preface the following information with the understanding that the reader realizes that approval of a firm by FNMA or FHLMC is at their complete discretion and is, to a great extent, a judgment call based upon your total package and all the factors included in it. All requirements are subject to change.

As far as FHLMC approval goes, net worth requirements are either $1 million or $500,000, depending upon whether you use the generally accepted accounting principles (GAAP) net worth of $1 million, or the FHLMC definition of acceptable net worth ($500,000). Unfortunately, a lot of potential applicants are not aware of the $500,000 net worth possibility. Even a call to Freddie Mac still found the operator not aware of that option, and claiming $1 million was a hard, fast requirement to be approved.

Acceptable net worth is defined by FHLMC as GAAP net worth minus any of the following: goodwill, purchased servicing, capitalized excess servicing, investments in joint ventures, investments in limited partnerships, REO, property, plant and equipment, receivables from affiliates, investment in affiliates, other intangibles and other assets, and deferred taxes on capitalized excess servicing. Audited financial statements are to be provided as part of the approval package.

One requirement that many still think is in force, but is not, is the requirement that a mortgage company be approved by HUD-FHA in order to be a FHLMC Seller and Servicer.

Additional requirements include having an acceptable quality control program; Errors and Omissions insurance and Fidelity insurance of $300,000 minimum coverage; a business plan (specific and reasonable for short and long term strategies); three reference letters from investors; credit reports on managing executives; adequate experience in origination and sales; and experience in underwriting, administration, default management, REO servicing and investor accounting, and servicing. Servicing is usually the weak spot for mortgage companies. You must show that whether or not you use a sub-servicer, and you have staff with more than adequate ability and knowledge to handle servicing. FHLMC no longer says you need a specific amount of servicing on the books to be approved and, in fact, you can be approved with no servicing, but the stronger the package, the more likely you will be approved.

If you are accepting Third Party Originated (TPO) loans, you also have to provide information on your standards and procedures for accepting and servicing them, since there have been so many problems with the history of these loans.

In order to apply to FHLMC, you request an application package (call 800-Freddie) and follow the instructions completely. You will need to submit resumes, financial statements, credit reports, a business plan, various certifications, the approval you want, a list of parent or subsidiary companies, corporate liaisons in various corporate capacities, any legal problems with company or managing officers, a list of investors (including their reference letters), a list of your warehouse lenders, quality control program and questionnaire, number and quantity of loans originated and sold in the last two years, number and quantity of loans serviced plus your delinquency ratios, copy of insurance coverage and all other pertinent information you feel would help your package. There is a $1000 application fee.

As far as FNMA is concerned, their requirements are very similar to those of FHLMC. There are differences, though, and as I list the general requirements (FNMA also can request any additional information it needs; the application package is a guideline and basis from which to work), any item that is different will be identified with an asterisk.

You need a corporate net worth of at least $500,000, a quality control program, experienced personnel in all areas pertinent to the business, proof that the personnel have not had any problems when employed at other FNMA-approved entities, a servicing system in place (your own or sub-services), Errors and Omissions and Fidelity insurance (same dollar amounts), references, credit reports, history and scope of the business, list of any owner of five percent or more of the company, audited financial statements, estimated volume to be sold to FNMA during the first 12 months, and availability of all key personnel for an on-site interview with FNMA staff.

In order to apply to FNMA, call the nearest regional office and request an application package. You will return the following information (some of it on their forms): areas you operate within; the approval you are applying for; any legal disclosures of problems with the company or personnel; narrative on history and scope of the company; resumes in same areas as FHLMC; investors you are currently servicing for; proof of Errors and Omissions and Fidelity coverage; financial statement; quality control program; FNMA Selling ad Servicing Contracts; estimated first 12 months sales volume; quantity and dollar amount of loans originated in the last three years; credit authorizations; number of employees in servicing and origination; liaison personnel in selling, underwriting, servicing and investor accounting; number and dollar amount of loans serviced; list of delinquencies; list of warehouse lines; and various certifications, along with a $1000 application fee.

To summarize, if you have, or are willing to acquire, the net worth, the insurance and plenty of experienced personnel, and can show you have the corporate capacity to meet all of the approval requirements of FNMA or FHLMC, maybe you should consider becoming a Seller and Servicer. The mortgage business is in an improving cycle, with the housing market (new and resale) beginning to show signs of coming alive again. This may be your time. But remember, it is not right for everyone, so be sure the approvals and servicing would fit into your corporate goals.

REOBlogsite.com
http://www.reoblogsite.com/reo-management/the-path-to-fannie-mae-and-freddie-mac-approval.html?utm_source=twitterfeed&utm_medium=twitter

In Foreclosure? Say No To Fakes and Frauds


 

It is amazing that just as we move out of an era of fraudulent loan officers, fake “Mortgage Planners” and Financial Trusted Advisers we are now being over run by a hoard of “Foreclosure Experts”.   Could these people be one in the same.  Just the times and the opportunities are different?

When in foreclosure there are experts out there that can help you develop a plan of action.  These people are beholden in one way or another to the state of Oregon as in they have an ACTIVE Real Estate license, Mortgage Certificate or member of the Oregon Bar.  Bottom line, if they rip you off they it is harder for them to hide.   Your legal representatives and the state of Oregon can track them down and hold them accountable.

It is never good to be in foreclosure.  But remember you only make the situation worse by not seeking the information you need to develop a plan of action.   Maybe you can not keep your home.  Maybe you should sell and buy another home on seller contract or lease option.  Maybe you can work something out with the lenders.  You have to treat foreclosure as an problem that can be solved and not the end of the world.

Information is power and with right power anything and everything is possible.   Do rot sit in place, do not allow shame to prevent you from doing what you can to resolve the problem for you and your family.

Lastly, do not listen to anyone that does not hold an Oregon License, Mortgage Certificate or member of the bar that promises to save your home or help you make your payments.  Those people have nothing to lose and everything to gain by gaining your trust.   If it sounds to good to be true….it is.  If it sounds like it is not legal….there is a good chance is it not legal.   If that little voice in the back of your head says hang up the phone…..hang up.   Use your common sence and reach out to people that can help provide you with real solutions.

Well that is enough ranting.  Keep an eye on this blog.  Will be posting possible solutions to the problems you are facing.   If they work for you….great.  If they won’t help you in your situation, feel free to send me an email or post the question on this message board. 

 

Fred Stewart
President
Stewart Group Realty Inc.