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!

Advertisements

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