Oregon Mortgage ConneXion

Oregon VA Loan Lowers Mortgage Rate

2011-11-11T16:25:00.000-08:00

The ORVET Home Loan Program lowered their rate... again. This loan program is not the same as the VA Home Guaranteed Loan Program but is underwritten, funded, and serviced by the State of Oregon ODVA through a special federal bond. The ODVA loan program is a close match to a conventional loan in underwriting, requires mortgage insurance if not putting 20% down, and allows loan limits up to $417,000. The loan is available to eligible active duty veterans for the purchase of a primary residence. The ODVA Loan carries no funding fee, typically offers a rate below market, and even lends on manufactured homes. Added benefits include payment re-amortized with a principal reduction of $3000 plus and optional loan cancellation insurance.

You can find the current rate and additional program information at the the OR VET Home Loan webpage.

To apply for this or any other loan program contact me today.

A Ray of Sunshine for the Housing Market with New Changes to HARP

2011-10-25T22:56:00.000-07:00

Good news is aglow in the mortgage industry since FHFA announced loosened guidelines to the Home Affordable Refinance Program or HARP yesterday. New guidelines are effective November 15, 2011, for the loan program which dawned March 4, 2009; at the time a refinance under HARP allowed up to 105% in loan to value. This isn't the first change we've seen however hopefully the most effective. Past changes have shed some light for underwater homeowners with an increase to permitted LTV's upwards of 125%, expanded upon loan origination dates, and extended deadlines of its availability to consumers. The program was conceived alongside HAMP which has aided borrowers in obtaining modifications but HARP did not require a financial hardship and/or mortgage payments to be past due. Performance of HARP has been lack-luster as participation is not mandatory and individual lender overlays have made it difficult to place some borrowers into a new loan. However the most recent changes have sparked lenders currently participating to accommodate the enhancements to the Fannie Mae and Freddie Mac backed loans. If we are lucky maybe even a few new lenders will lighten up and follow suit. I am hopeful for borrowers who have been left out in the dark until now to refinance into these historically low rates. Per the News Release...

The new program enhancements address several other key aspects of HARP including:

Eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers;
Removing the current 125 percent LTV ceiling for fixed-rate mortgages backed by Fannie Mae and Freddie Mac;
Waiving certain representations and warranties that lenders commit to in making loans owned or guaranteed by Fannie Mae and Freddie Mac [the Enterprises]
Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by the Enterprises; and
Extending the end date for HARP until Dec. 31, 2013 for loans originally sold to the Enterprises on or before May 31, 2009.

Borrower Eligibility

The existing mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
Homeowners can determine if they have a Fannie Mae or Freddie Mac loan by going to:

http://www.FannieMae.com/loanlookup/
or calling 800-7FANNIE (8 am to 8 pm ET)
https://ww3.FreddieMac.com/corporate/
or 800-FREDDIE (8 am to 8 pm ET)

The program will continue to be available for loans with LTVs above 80 percent.
Borrowers must be current on their mortgage payments with no late payment in the past six months and no more than one late payment in the past 12 months.
Borrowers should contact their existing lender or any other mortgage lender offering HARP refinances.

To apply for this or any other loan program contact me today.

Additional Resources:

Extended dates and higher LTV announced March 2010

Extended dates announced March 2011

Know your options

Making Home Affordable

VA Home Loan Public Announcement on YouTube?

2011-10-12T12:28:00.000-07:00

In my quest to find a hidden RSS feed on the VA Home Loans website I wandered, as I often do, to their YouTube channel and found this morsel...

It might be from March 2011 but it still applies. Oh, and 209 hits in 7 months? I feel validated in knowing that mortgage news just isn't sexy since little old me is generating more traffic than a huge government conglomerate! #Fail

To apply for this or any other loan program contact me today.

VA Funding Fees Clarified... For Now.

2011-10-07T13:37:00.000-07:00

The VA News and Announcements page has been updated today to advise HR 2646 has been signed into law. Circular 26-11-15 has been issued and the fees structure published. The VA is waiving the difference in fees for loans disclosed with the lower fees prior to October 6, 2011 as the increase to fee would cause a tolerance violation where the GFE and final HUD was concerned. There is a high probability that the fee will change again in the near future with pending legislation and lenders are being advised to pay close attention.

Loan Fee Structure for VA-Guaranteed Loans

Veteran Reservist/NationalGuard
First Time Use
Downpayment

Less than 5 percent ¹

* October 1, 2011 until October 5, 2011 1.40% 1.65%

* October 6, 2011 until November 17, 2011 2.15% 2.40%

* On or after November 18, 2011 1.40% 1.65%

At least 5 percent but less than 10 percent

* October 1, 2011 until October 5, 2011 0.75% 1.00%

* October 6, 2011 until November 17, 2011 1.50% 1.75%

* On or after November 18, 2011 0.75% 1.00%

10 percent or more

* October 1, 2011 until October 5, 2011 0.50% 0.75%

* October 6, 2011 until November 17, 2011 1.25% 1.50%

* On or after November 18, 2011 0.50% 0.75%

Second and Subsequent Use

Downpayment

Less than 5 percent ¹

* October 1, 2007 until October 1, 2011 3.30% 3.30%

* October 1, 2011 until October 5, 2011 2.80% 2.80%

* October 6, 2011 until November 17, 2011 3.30% 3.30%

* November 18, 2011 until October 1, 2012 2.80% 2.80%

* October 1, 2012 until October 1, 2013 2.15% 2.15%

* On or after October 1, 2013 1.25% 1.25%

At least 5 percent but less than 10 percent

* October 1, 2011 until October 5, 2011 0.75% 1.00%

* October 6, 2011 until November 17, 2011 1.50% 1.75%

* On or after November 18, 2011 0.75% 1.00%

10 percent or more

* October 1, 2011 until October 5, 2011 0.50% 0.75%

* October 6, 2011 until November 17, 2011 1.25% 1.50%

* On or after November 18, 2011 0.50% 0.75%

Refinancing Loans

Interest Rate Reduction 0.50% 0.50%

Other

Assumptions 0.50% 0.50%

Service-connected Veterans 0.00% 0.00%

¹ includes 'Cash-Out' Refinancing loans

To apply for this or any other loan program contact me today.

All Eyes Watching Status of HR 2646

2011-10-07T00:18:00.000-07:00

As we await the fate of the VA funding fee... Once signed by the president the fee will revert back to the old until November 17, 2011. Whether or not the new lower fees will be upheld at that point are questionable. The right hand does not know what the left hand is doing. Mortgage transactions are hard enough as it is... this isn't helping.

Additional Resources:

Extension of Funding fees Strike October 1, 2011, Insert November 17, 2011

VA Funding Fee Changes Recinded

2011-10-05T09:22:00.000-07:00

That certainly didn't last long... according to VA News and Announcements:

LOANS CLOSED ON OR AFTER OCTOBER 1, 2011: Due to legislation affecting funding fees that has passed both houses of Congress and is awaiting the President's signature, lenders should not submit payments for loans closed on or after October 1, 2011, until further notice. This issue should be resolved within the next several days. If the President signs the legislation, it will in effect keep funding fees at their FY2011 rates through November 17, 2011. This means the changes set to take effect per Circular 26-11-12, might only be in effect for a very short time. For cases where lenders have closed loans with lower funding fees than provided in the new bill, the Secretary, under existing authority, will waive the difference in the fees. PLEASE monitor this page for updates. We will pass on information as soon as we get it and also release a circular if and when the bill is signed.

I will montor the website closely for upcoming changes... an RSS feed would be helpful although I've heard that "Military Intelligence" has been dubbed an #oxymoron

To apply for this or any other loan program contact me today.

USDA Rural Development Implements Annual Fee

2011-10-01T15:34:00.000-07:00

Effective today mortgage loans granted by USDA Rural Development, aka Guaranteed Rural Housing Loan Program, will carry an annual fee in addition to the upfront guarantee fee. The upfront fee will decrease from 3.5% of the loan amount to 2% on purchases and remains at 1% for streamline refinances. The annual fee will be assessed at .3% of the principal balance of the loan beginning with the original loan amount in the first year and recalculated each year thereafter for the life of the loan. Borrowers will pay a monthly installment to the lenders who will in turn pay the annual fee to USDA. The USDA Rural Development loan remains a viable option for home buyers seeking to purchase a home with little to no down. The mortgage program is income contingent and only available in eligible areas. To apply for this or any other loan program contact me today.

Additional Resources:

AN 4551

Property Eligibility

Income Limits -Guaranteed / Moderate Income

Income Limits -Direct / Low Income

FHA Loan Limits Decreased

2011-10-01T11:10:00.000-07:00

As of today the temporary FHA loan limits have expired and home seekers in the market to purchase a higher priced home may have to shell out a little more for the down payment on their home mortgage. The loan limits were increased in 2008 through the Economic Stimulus Act in a effort to resuscitate the housing market. The limits are based on the median sales price and vary by county. To find the FHA limit for your area search HUD's link here.

There are still low to no down mortgage options for home buyers in a higher price range. There's the VA loan for qualified Veterans, USDA Rural for qualified properties and incomes, HomePath and HomeSteps for Fannie and Freddie REO's, or Conventional paired with your choice of mortgage insurance. This may be structured either as a monthly premium, a split or single premium which may be financed into the loan. Comparing loan programs is critical when buying a home, make sure you take the time to clearly understand all of your financing options options. If you would like more information you may contact me for an appointment.

Additional resources:

FAQ on temporary limits

HUD Market Analysis

Mortgagee Letter 11-29

VA Decreases Funding Fees

2011-09-24T08:27:00.000-07:00

It is refreshing to know that the VA is decreasing the upfront funding fee on its guaranteed loan program for Veterans while other government mortgage programs like FHA and USDA have increased their fee structures. Currently Veterans have the lowest default rate according to the most recent Mortgage Bankers Association Delinquency Survey. The change comes after the passing of Public Law 112-26, Restoring GI Bill Fairness Act of 2011 and there is a possibility the funding fees will change again should Congress pass additional legislation. Lenders are encouraged to monitor the VA website for any upcoming changes to the fee structure.

Effective on loans funded on or after October 1st the VA will reduce the funding fee as follows:

VA Funding Fee Table - View the VA Circular

For more information on the popular loan program for Veterans or to see if you qualify contact me, I would be happy to help.

Oregon Foreclosure Process Debatable: MERS vs. Non-judicial statutes

2011-05-31T12:31:00.000-07:00

In the wake of the mortgage meltdown and heightened foreclosures an Oregon Judge is questioning not only the validity of MERS but seemingly Oregon's non-judicial foreclosure process according to the AP in this article found in The Statesman Journal. Personally I've questioned this common practice known in the mortgage industry as MERS or Mortgage Electronic Registration System since I began originating mortgage loans in 2005. The system bypasses county recording processes and allows the trust deed to simply transfer with each sale of the note. Not only are counties cheated from revenue due of recordings but the title history is not being updated with each change of investor. However there are more facets to be considered involving the outcome of the MERS mess and the manner in which the mortgage, title, and judicial interests can move forward.

If MERS is upheld to be the straw-man it's been dubbed then massive pandemonium will certainly unfold. Think about it... Court systems will become overrun by borrowers who now feel they own their house outright because the proper chain of title never occurred. They may already feel shafted by robo-signers and sloppy work headed into the foreclosure. Some of those being homeowners who were told their loans were being modified but then served eviction papers by the sheriff. One might not even be delinquent to challenge this giving a new meaning to the term strategic default at the taxpayer's expense. A few title companies have stopped issuing title insurance to date on foreclosed properties because of the liability in the clouded title... Will the rest follow? Let's not forget the overall, long-lasting, and crippling toll that all of this will take on Oregon's housing market should this unwind past foreclosures as well.

Enter Oregon SB 519 an emergency bill in Senate headed to public hearing and work session scheduled for today is currently passing 28 - 1. The bill addresses the bidding and redemption rights of home-owners but it broadens the definition of entitled parties to include the likes of MERS but keeps Oregon's non-judicial foreclosure process intact. I feel strongly this bill is needed in order for Oregon's housing market to move forward. Although many feel they have been wronged by creditors BUT simply put you are in default of your promissory note. New Jersey and Vermont have passed similar bills and MERS has amended it's policy regarding the naming of MERS as the foreclosing party. Be it not enacted the possibilities outlined would have unarguably devastating effects. I will be watching this bill steamroll through passage in Oregon and keeping watch for other states to follow suit.

CFPB Opens Discussion for New Mortgage Disclosures

2011-05-18T21:47:00.000-07:00

Just in... the mortgage industry is getting a new form in the near future. In case you don't follow daily mortgage news, change is not usually well received in our industry but I think this might actually make a few disgruntled mortgage brokers happy. The CFPB or The Consumer Financial Protection Bureau posted this easy-to-take-survey today regarding the new GFE (Good Faith Estimate) and TIL (Truth in Lending) disclosures dubbed KNOW BEFORE YOU OWE on their blog today. They want YOU to weigh in on the form you like and why. There are two surveys to choose from that are catered to consumers or insiders to the industry. They've even got it set to share on facebook, tweet and email away to you friends, past clients, prospects, and colleagues if you are in the biz... hint, hint. Honestly, I'm impressed!

I personally "voted" for Option A for the following reasons and provided the following feedback:

1: The layout is simple and to the point but the summary information is key and should be showcased. I would prefer the two columns actually be set above the banner. Most important the "Monthly Taxes & Insurance" should breakout the taxes, hazard insurance, and mortgage insurance, lumping the two types of insurances together is confusing.

2: The layout is easier to read when it is side by side and is without all the extra images that are in Option B. However the years range 9-30 the reason for the drop in the taxes and insurance is not clear without a breakout of the mortgage insurance & the taxes and hazard insurance.

3: I found this form easy to read but the seller credits and the lender credits should be separated so buyers can be clear of who brings what to the transaction. Plus there is no signature and date line, nor does either form disclose whether your rate is locked in or floating as this is very important information.

Overall this is a major improvement over what the GFE is currently...A three page nightmare that not one client has understood. Thank you CFPB for a job well done.

Private Mortgage Insurance Making a Comeback

2011-04-29T10:48:00.000-07:00

Private Mortgage Insurance has always had such a stigma, I have had numerous conversations with clients who were dead set against it and wouldn't consider PMI. Certainly the payments were higher but in some cases it would prove to be the savvy choice in the long run. As a newer loan officer I can remember calling up a wholesale account executive and she said to me "Why on earth would you want to have MI? That's just dumb!" It was then when I made the one of the greatest mistakes I could have ever made in any business... I doubted myself. I took what she said to heart and stopped having the conversations with my clients. I would put them into 80/20 loans and sold them on the blended rate compared to other products. FHA wasn't an option to many of us as smaller broker companies until after FHA bond requirements were lowered, the market had dried up, and loose underwriting became a thing of the past. Revisiting those clients' needs today had we gone with the MI I may have been able to better serve them under HARP. Not an easy pill to swallow but I know I am not alone in this boat and when the competition is force feeding not-so-great products it's hard to go against the grain, harder still when you are trying to establish yourself in shark infested waters.

Having put my big girl panties on and moving up in the world of lending, I am rethinking that dialog about PMI as it IS a legitimate option. Especially now when comparing the new FHA premium to a single or split premium product. In addition, the competition is returning to the Mortgage Insurance market, couple that with online pricing engines and we have a simple way to shop MI rates to ensure clients really do have better options laid out for them. Now, when discussing product options with borrowers I am not going to allow that doubt to get the better of me. In regards to the AE as we call them, I question why I let her get to me, she rarely returned my calls and she really wasn't very kind, but I thank her for the lesson in confidence. I have said it a few times here, it was even my tag line for a while... "Ignorance is bliss, hindsight is 20/20, but knowledge is power."

Reason 8,675,309 why "Financial Reform" Fails to Reform

2011-03-16T05:53:00.000-07:00

I am not against the idea of protecting consumers. I have been an advocate for clarifying the muddied mortgage waters. I subscribe to the "knowledge is power" mentality. However where the Frank Dodd bill is concerned I can agree the so called reform is overkill. Note this link includes only a summary as I imagine the 2,319 pages are burdensome in more ways than one. I am facinated by the bills' sponsors... I got their number ;) Regardless this legislation WILL have an impact on home buyers in Oregon's real estate market.

There are many loan officers [originators, brokers, bankers] that are crying the sky is falling, again, over the loan officer compensation but a few of us are just going with the flow. We will adapt like we have to NMLS, HUD's "better" GFE, HVCC [appraiser independence], MDIA, and a few other acronyms that are lost on you. While all of these recent changes have some positive impact they also have their share of flaws and unintended consequences. The addition of the Frank Dodd financial reform continues to paint loan officers into a corner and hits the consumers right where they tout they are trying to protect you... YOUR WALLET! I don't know if I would call it a "slush fund" but higher profit margins to compensate for losses passed on has a similar taste. Interesting and topic worthy none the less.

Senators Rally to Delay LO Compensation Fed Rule
Thanks

FHA changes MI Premiums... again!

2011-03-09T16:25:00.000-08:00

Last year I remember an almost daily reminder to my real estate agent contacts that the FHA upfront premium was increasing to upwards of 2.25%. This increase lasted for all but six months or so before it was adjusted back down to 1% if you were over 95% loan to value however the monthly mortgage premiums were increased to as much as .90% at the same time. HUD is again implementing changes to help stabilize the FHA program which gained popularity as the mortgage meltdown led to the abomination of the 80/20 programs and like.

The new increase of .25% will be effective on all FHA loans with a case number assigned on or after April 18th, 2011. Pushing the monthly mortgage insurance to a whopping 1.15% when putting less than 5% down or 1.10% with a down payment of 5% or more.

With that said time is again running out for prospective home buyers to keep a little extra cash in their pockets. This FHA change coupled with an increased lender fees to counteract the increase in admin costs to adhere with the newer GFE (good faith estimate) and the upcoming changes to loan officer compensation will undoubtedly hurt the average consumer's bottom line.

Record low mortgage rates still no one is biting

2010-09-29T21:31:00.000-07:00

USA Today ran an article that caught my eye today. It really sums up the the variety of issues regarding today's mortgage lending environment both nationally and here in Oregon. It amazes me still the number of qualified consumers who are not ready to pull the trigger on a purchase or refinance. Let me rephrase that... "What are you waiting for?!"

If you have 1) a consistent monthly income 2) dare I say equity 3) halfway decent credit 4) patience 5) an ally, like me, you are doing yourself a disservice by not at least investigating your options. A little planning could make the difference between being penny-wise or a knucklehead.

Whether you want to reduce your monthly outgoing expenses, save tens of thousands by cutting your term in half, or take advantage of an all time high affordability index have a plan.

I offer free consultations for those serious and also for those who are flirting with the idea, so drop me a line. I hope to hear from your sooner than later.

USDA Funds Available with the Signing of H.R. 4899

2010-07-30T13:10:00.000-07:00

Back in March USDA announced it was quickly exhausting funds for the popular Rural Development loan program. This type of mortgage loan offers 100% purchase financing for eligible properties and caters to low income families. Its demand has grown over the last couple of years with the days of 80/20's long gone to the extent that funds would run out halfway into the fiscal year. With many supporters this self sustaining program now has the funding needed to see it through October and hopefully avoid future "droughts". A Guarantee Fee increase from 2% to 3.5% (which can be added into the loan) will help to provide future funding. To offset the fee this loan carries no mortgage insurance and a competitive rate. The bill signed yesterday by President Obama also included funds for military, relief for Haiti, and the oil spill in The Gulf.

Senator Dodd's S3217 and its 205 Amendments

2010-05-11T15:17:00.000-07:00

I'm on my Soap Box again! What a joke this is... over regulation is not the answer. My two cents.

It's Beer Thirty on Friday April 30, 2010

2010-04-30T16:41:00.000-07:00

Our phones were eerily quiet this week, even today with the looming end of days where the Home-Buyer's Tax Credit is concerned. I am kind of happy to see it end, although in the lending realm I don't see a true end until the loans must close which is June 30. I didn't really see as many borrowers rush through after the extension was announced but maybe a handful of pre-qualifications. Many buyers were not able to find a suitable home for their needs at the prices they were expecting. Honestly speaking I would sacrifice the credit for the right timing and most importantly the right home. Rates are still very low and I don't see prices going anywhere soon so not to worry... not that you were ; )

Breath in Faith, Breath out Fear.

2010-04-12T11:19:00.000-07:00

This past year I have spent assisting one of our Branch Managers and also acting as support for the other Loan Officers in our office here in Oregon City. I am very grateful for the experience which has been the foundation for new friendships, networking opportunities, and training that is hard to come by in this industry. I have found it necessary to take a step back so that I can better focus on my individual growth within my career as a Mortgage Consultant here with Sunrise. So many changes have come about in this last year where I have had the notion but never quite the time to blog about it. I have missed it and I look forward to logging in and posting with less randomness in the future. A quote from a realtor on a flipping show (long ago obviously) has stuck with me "Breath in Faith, Breath out Fear." This has been my mantra these days... Pray with me unless you are not one to believe in prayer then I will gratefully accept "Good Luck" :)

Travel Portland on YouTube

2009-09-18T09:19:00.000-07:00

Portland, P-Town, PDX... Whatever you call it chances are if you live in Portland, or in one of its many suburban areas, you love it here. I was born and raised in Portland myself and am proud to call it home. This snippet was sent to me by our lovely office manager just because it's really cool... if you are considering a move to Portland this little clip is one to watch and if you already do call Portland home you'll be reminded why.

Taylor, Bean & Whitaker Cease Operations

2009-08-05T11:20:00.000-07:00

I am not usually one to post about lenders closing its doors (cause I don't have that kind of time) but this one was a biggie! I have one less lender left that lends on Manufactured now :( Read on for a press release from TBW.

August 5, 2009 TAYLOR BEAN MUST CEASE ALL ORIGINATION OPERATIONS EFFECTIVE IMMEDIATETLY OCALA, FLORIDA – TAYLOR, BEAN & WHITAKER MORTGAGE CORP. (“TBW”) RECEIVED NOTIFICATION ON AUGUST 4, 2009 FROM THE U.S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, FREDDIE MAC AND GINNIE MAE (THE “AGENCIES”) THAT IT WAS BEING TERMINATED AND/OR SUSPENDED AS AN APPROVED SELLER AND/OR SERVICER FOR EACH OF THOSE RESPECTIVE FEDERAL AGENCIES. TBW HAS UNSUCCESSFULLY SOUGHT TO HAVE THE TERMINATION/SUSPENSION DECISIONS OF EACH OF THOSE AGENCIES REVERSED. AS A RESULT OF THESE ACTIONS, TBW MUST CEASE ALL ORIGINATION OPERATIONS EFFECTIVE IMMEDIATELY. REGRETTABLY, TBW WILL NOT BE ABLE TO CLOSE OR FUND ANY MORTGAGE LOANS CURRENTLY PENDING IN ITS PIPELINE. TBW IS COOPERATING WITH EACH OF THE AGENCIES WITH RESPECT TO ITS SERVICING OPERATIONS AND EXPECTS TO CONTINUE TO SERVICE MORTGAGE LOANS AS IT RESTRUCTURES ITS BUSINESS IN THE WAKE OF THESE EVENTS. WE UNDERSTAND THAT THIS COULD HAVE A SIGNIFICANT IMPACT ON OUR VALUED EMPLOYEES, CUSTOMERS AND COUNTERPARTIES, AND ARE VERY DISAPPOINTED THAT A LESS DRASTIC OPTION IS UNAVAILABLE.

Fannie Mae Unleashes Home Path

2009-07-14T21:51:00.000-07:00

A new loan program has been introduced by Fannie Mae, welcome Home Path. A loan program made available to purchase Fannie Mae owned homes. It gives the FHA Loan a run for its money, although the rate is slightly higher much like LPMI (lender paid mortgage insurance) programs.

3% down in comparison to the FHA requirement of 3.5%
No appraisal is required
Seller concessions allowable up to 6%
No Mortgage Insurance

For more information or to search Fannie Mae's listed homes visit http://www.homepath.com/

Capacity Cure

2009-06-30T09:22:00.000-07:00

Every now & then an article comes across my Google alerts that catches my attention and I felt like sharing... http://www.bloomberg.com/apps/news?pid=20601087&sid=aedS3XGrNmSA

Historically if any creditor felt insecure in your ability to repay a debt they would close down your line and your lower score was earned; usually fueled by late payments or changes in spending habits. However this article raises some good points... What could FICO do to fix this since obviously these cases are indicative of current times and are not caused by the borrowers actions. Perhaps they ought to not update the credit companies with the lower limit or give them a grace to pay down their balance?

Cash is King :)

Rates Lend A Little Relief This Week

2009-06-26T08:43:00.001-07:00

Better pricing on a Friday is a good thing... not that I care to quote Martha as nothing is ever perfect. Rates are not competitive unless you are looking at fixed rate pricing, have stellar credit, and are in a good equity position. Consensus says we probably will not see these rates again with pending inflation. I lack a crystal ball so I could miss the mark here but if I had to eat crow on this subject I think I could handle it. Regardless, if you have been on the fence for whatever reason revisit your current situation and if it makes sense it might be a good time to jump.

Rates Continue to Soar

2009-06-08T08:53:00.000-07:00

At 8 a.m. sharp this morning I received yet another rate alert to "lock in ahead of a re-price for the worse"... seems to be a broken record these days. Without a crystal ball it is hard to say what the future holds for fixed rate pricing, although the pending doom of inflation lacks promise. If you were holding out for the media hyped "0-3%" you missed the (imaginary) boat. I wouldn't stay on that refi fence for too long. If you are looking to buy prices are down, but the question plaguing most of us is will they continue to come down? The first time home-buyer tax credit is helping Lookie Lous but we have yet to see lenders implement the fed guidance for the use the tax credit for down payment.

However you slice it rates are going up, hopefully slowly over time, but the last 4 weeks have definitely been unkind.

Modification Monkey Wrench

2009-05-11T17:21:00.000-07:00

I have been noticing verbiage on mortgage statements as they come across my desk stating that if you have filed bankruptcy and did not reaffirm your mortgage loan you will not qualify for a loan modification. The reasoning... Most bankruptcy petitioners only agreed to keep their mortgage loan current and retain the collateral, in this case the home. If a lender were to modify the original loan agreement it could put them in a sticky legal situation. Entering into a new, even modified contract is not permitted on any discharged debt and any attempt to collect on a discharged debt carries a hefty penalty. Don't know if you reaffirmed? Call your attorney.

Like I Said... "VA Loans ROCK!"

2009-03-05T14:38:00.000-08:00

Towards the end of last summer I noted "VA Loans ROCK!" and while I have been digging into the whole "Making Home Affordable" thing I was reminded they still do...

Purchase Loans:

No down payment required!
Up to 4% of closing costs can be paid with seller concessions.
Funding fee from 1.25% (regular military with 10% down) to 3.3% for subsequent use.

VA Streamline or IRRRL (Interest Rate Reduction Refinance): VA to VA

Funding fee of only .5%
No credit report, appraisal, nor income verification is required.
The loan to value never comes into play.
Notes: The new loan amount must be less than the original plus "allowable" closing costs. There is an exception to this if your loan is delinquent so that late charges and/or legal fees can be included. Your payment is only allowed to increase if you are refinancing out of an ARM.

VA Cash-Out: Regardless if you are taking cash out or not, go figure.

Funding fee of 2.15%, 2.4% for Reserves/National Guard, or 3.3% for subsequent use.
Loan to value up to 100% allowed through 9/30/12, will reset back to 90% afterwards.

Other perks:

Never any MI (mortgage insurance).
Loan amounts up to $417,000, higher limits available in certain counties around the states.
Flexible underwriting, we will leave it at that, too many what ifs, ands, or buts.
All VA loans may be assumed by another qualified veteran with only a .5% funding fee.
Veterans with a service connected disability of 10% or more the funding fee is waived.
Jumbo, Construction, and Manufactured Home Loans are also available, other restrictions apply.

If you have already benefited from a VA Loan but are experiencing a hardship the "Home Affordable Modification" also includes VA loans. To learn more explore this link then contact your lender.

New Options Available for Homeowners

2009-03-04T13:18:00.000-08:00

The details of the "Making Home Affordable" initiative were announced today from the Obama Administration that allows FannieMae and FreddieMac the ability to help homeowners that have been stuck in a stalemate with the current housing market. To be eligible for either the Home Affordable Refinance or the Home Affordable Modification your loans must currently be held by either agency and must be your primary residence. Each of the agency websites have different information and resources so I have linked them above but for the golden nuggets on eligibility click here. The refinance requires that you have not missed payments in the last 12 months, allows up to 105% loan to value, and is in effect through June 2010. The modification is available to those whose loans were originated prior to January 1 2009, that are currently in a hardship or have adjusting payments that will increase expenses, and whose loan amount is less than $729,750. FreddieMac has announced that all loans currently in foreclosure that qualify for the refinance or modification are suspended so that homeowners can seek this help. FannieMae servicers are directed not to proceed with pending foreclosures until the borrower has been evaluated for either program. This looks to be very tangible for all lenders but hang in there we all have a sharp learning curve. I still am trying to understand how the Mortgage Insurance will fall into place and also the protocol when a second mortgage is involved. I know of a few clients I will now be able to help that previously had been SOL. I want to stress NEVER pay for foreclosure counseling services, this is provided free with HUD approved counselors. Modifications can be done direct with your loan servicer as lenders now have an incentive program in place to help you.

HGTV's My First Place Casting in Portland

2009-03-02T13:47:00.000-08:00

First time homebuyers listen up! HGTV producers are spreading the word that they are looking for buyers to be featured on their show My First Place. Go to HGTV's website for more info about the show or contact the show producers directly here. Happy to have found a more positive topic over the 299 dive the Dow took today... UGLY!

Fresh Online Money Management... WHAT!?

2009-03-01T17:10:00.001-08:00

In looking to find a few ways to save some money in the ol' budget I came across a website that has already changed my life... No not Facebook! Although my husband might argue that ;) Mint.com All of your accounts in one place. Easy! Cool! Fresh! Just sign up and start adding your accounts. Whether it is a retirement, savings, checking, mortgage, auto loan, or credit card account. It updates your information, imports your transactions, and categorizes your spending. I have one account that is giving me a little grief but I am certain I can get it sorted out. You will spend a little time editing a couple merchants I am sure, but they do recognize Starbucks and even have "Coffee Shop" as a preset category. You can also compare your spending against your local and national averages. I can't wait to get more depth in my own spending to see how I stack up. All in all I love it and being that I have spent the last 15 years counseling others regarding their financial well being I can finally feel confident I can get past dreading the managing of my own.

*I would also recommend using an extra beefy password and maybe even go as far as establishing a new email account unknown to anyone.

Making Sense of Refinancing

2009-01-07T08:02:00.000-08:00

The ads on the radio make it sound incredibly sensible but is it really worth it for you? Refinancing your home is costly and there are important questions you have to ask of yourself and depending on the loan you are currently in different "rules" apply.

1) Are you in an adjustable rate mortgage? -if the answer is no skip to #7.

2) What was your intent when you took out an ARM?

3) What has changed since?

4) When will your loan see its first adjustment?

5) What are the caps, how often will it adjust, and which index is your loan based on?

6) Can you afford the new payment?

7) When is your break even point?

8) How long do you plan live in your house?

9) Why do you think you want to refinance?

10) Are you willing to sacrifice your equity (your money) to do so?

11) A mortgage is typically your biggest liability do you really want to incur more debt?

12) The questions just keep coming don't they?

13) Do you feel secure in your job?

14) What if you have to sell?

15) Would you be more willing to sacrifice your cable and cell phones instead?

What does your gut tell you?

Bottom line this is your home, your money, your future. If after answering these questions for yourself and it still makes sense for you then call me and we can talk numbers. If you don't know the answers to some of the questions or need guidance then call me. The last thing you deserve is to walk away from a transaction and have second thoughts. I need you to sleep at night so that I may do the same. I want to earn your respect, your trust, and your referrals. That my friend means more to me than just closing another deal.

Looking Forward

2008-12-29T15:19:00.000-08:00

The smiles on our faces sure weren't there long... Little did we know an extra week (minus a Wednesday) of Winter Break, 14" of more snow, and 3 days without power and water were still in the works for us. I spent my lunch today clearing large branches, twigs, and garbage thanks to our lab from the driveway. I don't know what we will do with all the greenery still in the yard. My garage is piled high with recycling and laundry, my least favorite. Lucky for me mortgage rates always like to dip down when I have the most to do so I get to procrastinate on the laundry until this evening. My point is that I won't miss all of the negatives that 2008 brought upon us... I won't bring up the mortgage crisis, the wonderful hit to our 401k plans, or the bailout... ha ha! Rather I am looking forward to a great run on rates, home buyers taking advantage of lower home prices, and just a better year overall. Cheers!

Mortgage Rates Dip to Lowest Point of the Year

2008-12-01T11:12:00.000-08:00

Woo-Hoo! Title says it all & low rates makes for busy originators, enough said :) Recent News

Hauntingly Familiar Pattern of Discontinuation Notices from Lenders

2008-10-31T13:59:00.000-07:00

The interest only payment loan appears to be on it's way to the graveyard. Sure, they are scary but have their perks if you are educated and disciplined. Also trickling in this week are memos about Non-Conforming and FHA Jumbo products being discontinued. Don't panic the Economic Stabilization Act (cough, bailout) temporarily increased the conforming loan limits depending on your area, but so far I have only seen one reference to a Super Jumbo product to supplement it. Either way it is reminiscent of the imploding sub-prime lenders.

Happy Halloween!

Opportunist at Work

2008-10-07T07:49:00.000-07:00

I do my best to educate myself on issues that matter most to me. I discuss these issues with my family, my friends, and my coworkers. I bite my tongue in line at the grocery store. I vote therefore I have the right to bitch. However, I struggle posting my personal views and "issues" here as this blog was intended to be a resource for my clients and other consumers looking for information. When bill 965 was on the table I used my blog to "lobby" against it as had the bill passed it would have affected my livelihood and consumers alike. Since this bailout package was introduced it has become a hot-button for me and I let my emotions get involved with my work. In the past it has bitten me in the ass, it might very well do so again, but I don't care. Why? Because I am a real person. I don't always tell people what they want to hear. I feel that doing so compromises my principals. I may not agree with the bailout being passed but I question the consequences if not. I do not like being fleeced. I do not like how we got here. I do not like the finger pointing and back pedaling. The more the bailout was talked about and the more I read the more it started to stink. Obviously IMO the bailout is a turd. However, I will keep doing my job in spite and because of it. I will look to the current market to afford a lower rates for my clients who need to afford their mortgage payment. I will become an opportunist. I hate the thought, but I love my job. I love helping people...

I love you. You Know?!

*Contains Adult Language

Yep, It Floats!

2008-10-05T08:17:00.000-07:00

Boy, I never thought that this picture would ever find another use. I emailed it to my girlfriend who fell out of her chair at work from laughing so hard after she had been dubbed the floater in my bunko group. I know, I am a disturbed individual, but I am so irritated with this whole bailout thing and if I can't find a way to laugh off the stress it will take valuable years off my life. Follow the link to the 1424 bill history and text. If I didn't care to kill a tree I would print it out and keep it next to the toilet, where it really belongs.

I turned off CNBC and tuned into YouTube

2008-10-01T14:46:00.000-07:00

I can't bear to watch the news any longer but I imagine I will tune in later to see if shit will float. Sorry for my candid unprofessionalism. Warning: it gets better... This cartoon circulated via email a while back but as a .pps file and I couldn't post it here. Fortunately there's YouTube.

It is hard to read but I would be happy to shoot you the email, just ask!

3 Weeks of False Hope?

2008-09-29T13:11:00.000-07:00

The House shot down the $700 billion Fannie and Freddie bailout and the Dow took the biggest dump since 9/11 closing 777 points lower today. Rates have stayed put for the day as investors put their money into treasuries vs. bonds. Still a waiting game to see what and if anything is done to stop the bleeding. IMO the bailout was a band-aid and we need a tourniquet, yet the amputees are going to have to live with their loss. I have been glued to Fox News and C-Span over these last few weeks and am trying to take it all in. I certainly don't have all the answers but hindsight is indeed 20/20, this clip is a must see. I will continue to remain hopeful as I too have another mortgage payment due in 2 days ; )

Teaching our kids about money

2008-09-09T10:03:00.000-07:00

Ginnie Mae has a great website to better educate kids about money and the importance of managing it. Definately a great resource, I encourage you check it out. Who knows? You might learn a little something too : )

My Compilation of Freebie REO Links

2008-09-08T10:03:00.000-07:00

I get a lot of questions about where to find REO properties (Real Estate Owned) being in this profession and so far this is my best answer: If you are serious I can recommend a local Realtor otherwise if you are just curious try YahooRealEstate. Here you can search out NOD's (Notice of Default) and foreclosures but when you want more info, such as an address, you will have to pay for it.

I'm cheap so when I come across free I take note : )

Oregon Dept of Veteran Affairs
VA Properties (and more)
USDA Rural Properties
Fannie Mae HomePath Properties
Freddie Mac HomeSteps Properties
HUD/FHA Properties
FDIC Properties
IRS Seized Real and Personal Property
US Marshall's Office Seized Real and Personal Property

As I come across any additional links (feel free to enlighten me) I will most certainly post them here.

Investors Buy Into Fed Bailout

2008-09-08T09:50:00.000-07:00

Mortgage Rates dropped sharply this morning, so far so good... except for we are buying time in my opinion with taxpayer money no doubt.

Let's see how long this will last! I am off to call a few fencesitters : )

Fannie Freddie Bailout

2008-09-07T15:44:00.000-07:00

The bailout is hoping to spark lower rates and greater availability if you are not of those plagued by marginal credit, otherwise expect tighter standards and the continuation of increased fees and rates. CNN Money has some decent reading for the layman. What has already tightened in recent months? For one, Down Payment Assistance for FHA Loans has been banned as of October 1 2008, but lenders have already curtailed its existence. Although Nehemiah isn't going away quietly. Upfront and monthly mortgage insurance premiums have increased on loans terms greater than 15 years. Increased limitations regarding investment properties, non-occupying co-borrowers, and tougher appraisal requirements are also becoming mainstream amongst lenders. Two programs however that continue to make 100% financing available at lower rates and without MI: VA loans and USDA rural development loans. Contact me if either of these are of interest to you, I would be happy to see if you may qualify.

Ten things I learned during my summer hiatus from blogging.

2008-09-02T17:02:00.000-07:00

In no particular order whatsoever... I have been focusing on a few other things in the most recent months and blogging has definately been put on the back burner. The list might give you some insight, if not feel free to ask... No, I didn't have any more kids :)

1. Family + Money = Bad Combination

2. During a crisis you find out who your friends really are. Thank you, tremendously.

3. Good things do happen to good people.

4. There is some wheelin' and dealin' to be done in this market!

5. VA Loans ROCK!

6. Pricing kitchen cabinets at IKEA or anywhere for that matter is better done without the kids.

7. Taking time to wander down to the ol swimmin hole with the fam when it's 103 is a good thing.

8. Always clean excess mastic from inbetween tiles before it dries.

9. I will take refinished 40 year old hardwood floors over newly installed anyday.

10. Never, and I really mean never, flip a lightswitch on whilst holding a steel wool pad in the same hand.

Attention All Fencesitters

2008-03-07T13:22:00.000-08:00

A title rep distributed this TIME Magazine article to Ignore the Headlines! and pointed out it is not your typical "the sky is falling" mentality. I will now be forever reminded of my pre-school days when my Dad would read Chicken Little to me every night at bedtime as I hear the stories told by the media regarding the imploding mortgage and housing industry. Good news just doesn't sell : )

Regarding the correction to the inputting error I am left to conclude that the down payment on the lesser amount counts as a savings of $4,378 in addition to the whopping $226.80 in spare change after 360 payments are made. When you consider the tax savings realized a year earlier I imagine it's at least a wash. The rates however used for comparison are not realistic in my opinion as we saw rates move upwards around .75% in just a matter of one week and we can only pray that we will see them move down just as fast as they did in the month prior.

We don't wait to fill our gas tanks at $3.33 per gallon in hopes to save a nickel a gallon tomorrow, we buy gas because we need to fill our tanks, though can be wise consumers by limiting our trips, driving more fuel efficient cars, and drive slow like your Grandpa recommends. We can be smart when it comes to home buying too. Do some legwork with regards to your credit, come in with a little money if you can, be a bargain hunter: take advantage of the buyers market negotiate a lower price and ask for seller concessions. When you get the keys make improvements to your home (instead of buying the nicer car for the driveway) and maximize your profits later.

I tell my clients that it is always a good time to be a first-time home buyer, but if you still find yourself holding out for one reason or another just be ready to strike when the iron is hot. I have both purchases and refinances sitting, waiting for another good dip in rates (fingers crossed) to lock in. We will again have good news to sell... it will be "What a great deal we got back when!"

“Is the glass half full, or half empty? It depends on whether you're pouring, or drinking.” -Bill Cosby

Torcher or Torture?

2008-02-01T15:30:00.000-08:00

-unknown

Seek HUD Approved Foreclosure Help

2008-01-30T07:43:00.000-08:00

A quick post this morning as I await news on possible rate cuts from the feds... If you or someone you know is having trouble making mortgage payments there is FREE counseling available to you. Skip the foreclosure rescue scam, call 1-888-995-HOPE or visit their website at http://www.hopenow.com/ Other HUD approved resources include: Home Ownership Preservation Foundation Neighbor Works America My Money Management Never pay upfront fees to someone promising you a loan or credit counseling.

Smokin' Hot Mortgage Rates!

2008-01-08T16:02:00.000-08:00

We are seeing mortgage rates at their lowest point since September 2005 according to Freddie Mac. I am starting to see a surge of buyers for all those anxious sellers out there, hence this super short post... Not a bad opportunity to fix your adjustable rate mortgage to boot!

One last post before the drunken sing us into 2008.

2007-12-21T17:36:00.000-08:00

It's December you say?! I know the mortgage industry has had its share of press as of late but I have been asleep at the wheel here on this ol' blog. I did attempt a post in November but gave up, I imagine its title "Random rants on the mortgage meltdown inspired by Jose Cuervo." had nothing to do with the writer's block I was experiencing. At the risk of scaring a few of you away I am willing to share an excerpt as some of it may prove to be educational...

"I admit as I sit here nursing my margarita this evening my mind is reeling on all that is a buzz in the mortgage world these days and honestly short of becoming a chain smoking, cursing, raging witch of an alcoholic I can't keep up! But seriously, unless you live under a rock it is inescapable... Oprah, 5 o'clock news and then some, the paper, the Internet, it [the mortgage meltdown] seems to be copy editors' favorite subject. I mention Oprah only because I caught part of a show last week on TIVO and Suze Orman preaching to a single mother who has lost her house that she is blessed. A house is a house but a home is what you make it... I get that! I have been tested enough times in my life (and I know there are many more tests to come, thank you) to make that connection. Suze has some great advice, I have loaned out 9 steps to financial freedom to many a friend, but where did the collar come from? Sorry Pastor John : )

From my perspective as a "Mortgage Broker" we have taken a large portion of the blame for what is happening in the housing market and what is lacking in the media frenzy is that yes, mortgage brokers are loan originators but not all loan originators are are mortgage brokers. As a broker I am required to be fingerprinted and pass a background check. As a broker I am required to take a 20 hour course and pass a test to be licensed, to maintain that license I am required to complete 20 hours of continuing education every 24 months. As a broker I am required to disclosed yield spread premium (YSP). Loan originators employed by banks or "Mortgage Bankers" are not required to do any of the above, The big question is: why would you want to do business with someone who isn't? Predatory lending is not limited to the bad actors playing the role of a broker. Take a look at Ameriquest, Countrywide and even more bewildering KATU's report."

Now sober, with that said I plan on keeping a close eye on HB 3915 which would require a National Registry of ALL Mortgage Originators, higher standards for ALL Mortgage Originators, and preserves YSP which allows consumers to finance points and fees, and a Mortgage Originators the ability to be paid for services performed. Like most bills it is not perfect so I have some concerns I will follow. You too can track it here.

Otherwise, I am lucky in this market to have a pipeline. I owe a big "Thank You!" to those this year who have given me a shot after stumbling upon my blog. To those of you who haven't you should ; ) Have a blessed Holiday Season and peace in the New Year.

Oh what to do with my kicker refund!?

2007-10-19T15:06:00.000-07:00

thanks for voting!

After visiting Oregon's Department of Revenue Kicker Calculator I am now eagerly anticipating my kicker refund (okay honey, "our")... I had to include paying extra to the mortgage so that this post was somewhat relevant to the blog but personally I am undecided. Maybe I will spread it out a little... Dinner at Jake's, a deep tissue massage, a few extra packages under the tree? Hmmm! I read that the average refund was $285, although mine was significantly higher and I would lump myself among the average tax bracket. The checks are to be mailed by December 15th unless you filed late. Do beware there are scammers out there offering direct deposit of your check and asking for your bank info. Also if you have moved be sure to tell ODOR, refer to ODOR's website for more info.

Mortgage-lending task force will need to find common ground.

2007-10-03T08:38:00.000-07:00

Although many in Oregon's mortgage industry were thrilled when Bill 965 died upon the close of the 2007 Legislative session in June, we also knew that the debate was far from being over. This article in The Statesman Journal includes views from both sides of the issue and the readers' comments are engaging. I, of course, have my 2 cents to throw into the pot and I encourage your comments as well.

I feel bad for the Bringham's and all the other home buyers who are in the same boat but the obvious question remains to be asked, Why did you sign? Did you read what you were signing? I know there are deceptive loan officers and lenders out there that pull stunts between the original good faith estimate and the closing, I have zero tolerance for these "professionals", however all terms are disclosed in the note. If you are faced with this type of "surprise" at closing you do not have to sign. For a purchase it's okay if you put on the brakes until further review of the loan documents. If you get pressure or the hard sell from either your loan officer or your realtor they simply don't care about your best interests. The deal will probably fall though but you have to decide what is more important your financial forecast or the "house of your dreams"? It is not the later, the emotional attachment one may feel is easily forgettable. I personally have walked away from a purchase, it sucked at the time but looking back I am sure glad I did. If the transaction is a refinance you also have the 3 day right of rescission to exercise. Sure, there are times when issues arise during underwriting and a loan program needs tweaking or other terms might change, a good loan officer will discuss the options with you at the time these issues arise and not sneak it in at closing. It is okay to trust your gut and it is okay to say no. I strongly advocate consumer education.

Trying to use legislature to cure shady tactics is altogether impossible, furthermore it will limit choices to consumers and drive up rates. The Bringham's themselves wanted to facilitate the interest only option to keep their payments down, is it up to the legislature to say "Sorry, but we don't think that is good for you."? The industry can only help rid itself of the lice by establishing equal licensing and disclosure requirements in addition to mandating a brick and mortar location within the state.

Many of the equity concerns are not solely due to the slow of housing market or ARMs, neg-am or not, but because buyers typically do not bring any of their own money to the closing table financing 100% or even more. I find many borrowers who do not make any improvements to the home and property to help increase its value. To compound the lack of gain they rely on grace periods and pay late which means even less money goes to the principal.

Touching on the sub-prime and risky loans made, consumers' credit issues are not dealt with, they continue with slow pays, escalating debt, and simply put, poor budgeting. How many people do you know buy a home and then have a new car in the driveway in the first six months? I counsel my clients at great lengths but some people only hear what they want to. I know "life happens" (read some of my other posts) but I can't stress the importance of taking care of your assets and your credit.

If you are one of the 2 million borrowers whose ARM will reset this year or next, you have some options. Call me I will be happy to review them with you or stay tuned as this post has opened up a whole new can of worms.

Regardless of who you choose to blame the reality is not an easy pill to swallow. I know this topic will be revisited ad nauseum as I plan to follow the happenings of the task force closely.

Or you could just ignore this advice and try to qualify for this home... too bad I'm not currently licensed in Cali : )

Get Inspired at Portland's Fall Home & Garden Show

2007-10-01T13:35:00.000-07:00

If you are like me you have a running list of projects around the house. Unfortunately most of my projects are only half finished before I start planning the next. This weekend it looks as though I will have to put my projects on hold once again and make a trip to the Portland Expo Center to catch Portland's Fall Home & Garden Show. It runs Thursday October 4th though Sunday October 7th from 11am to 8pm, only until 6pm on Sunday. With over 250 exhibits it dubs itself to be the biggest and best fall show yet! Click here for more info on the show.

If you decide to take on a large project and need to tap into some of your home equity to do so call me, I'll be sure to put you at the top of my list!

One bird with two stones

2007-09-18T15:32:00.000-07:00

Not my wittiest title but the topic is rather dry and it is nearing Beer:30! The mortgage market was highly anticipating the announcement from the feds today that they will lower rates by a .5% hoping "to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time." Also today hope for FHA Reform as the US House of Representatives passes HR 1852 overwhelmingly by a vote of 348-72. The bill now moves to the U.S. Senate, and if passed will go to the President for signature. Specifically, the bill includes the following important provisions:
Lower Down Payments. Authorizes zero and lower down payment loans for borrowers that can afford mortgage payments, but lack the cash for a required down payment.
Housing Counseling. Authorizes more than double the current funding level for housing counseling, to help subprime homebuyers and borrowers late on mortgage loan payments.
Subprime borrowers. Directs FHA to provide mortgage loans to higher risk (but qualified) borrowers, without authorizing unnecessary fee hikes on such borrowers.
Reverse Mortgages. Enhances the FHA reverse mortgage loan program to help seniors pay for health and other expenses, by removing the loan cap to avoid program shutdowns, raising loan limits, and by reducing the maximum fee lenders can charge for these loans.
Multifamily Loans. Raises FHA multifamily loan limits, so these loans can fully fund construction costs in high cost areas, and enhances sale of foreclosed FHA rental housing loans to localities, so that affordable housing can be maintained in local communities.
Affordable Housing Fund. Authorizes up to $300 million a year from the bill’s excess profits for affordable housing, instead of returning such funds to the General Treasury.
Higher Loan Limits. Adopts the Frank/Miller/Cardoza amendment that would raise FHA single family loan limits, which now bar loans above 95% of the median home price in each local area and shut FHA out of higher cost home markets. The amendment raises the FHA loan limit in each area to the lower of (a) 125% of the local area median home price or (b) 175% of the national GSE conforming loan limit. The amendment also retains the bill’s provision for a nationwide FHA loan floor of 65% of the GSE conforming loan limit, and gives HUD authority to raise these loan limit amounts by up to $100,000 “if market conditions warrant.” In addition, the House adopted an amendment to the bill to direct FHA to make available refinancing loans to existing qualified homeowners who are in default or at risk of default due to rate resets or mortgage market conditions, and to authorize lower down payments for such purpose. The amendment also includes provisions to address problems arising from inflated appraisals.
Click here to read the full press release.

The skinny on 1%

2007-09-13T14:17:00.001-07:00

I see and hear many misleading ads these days touting mortgage interest rates are at the lowest point in history and unfortunately many consumers are naive to the loan programs that are being referenced. The Truth in Lending Act requires that if "triggering terms" (eg. rates or payment) are quoted so must the fine print (eg. APR and terms). The FTC recently published this consumer alert warning potential borrowers of the tricks of the trade, recommended reading for anyone thinking of purchasing or refinancing.

BTW: the loan program they are most likely advertising is one I would only recommend to a seasoned investor looking to keep his/her cash flow... Here is all you ever needed to know about NegAm. Gotta love Wiki : )

You know what they say... "If it sounds too good to be true it probably is."

Back in the blogging saddle

2007-08-28T08:52:00.000-07:00

It's been a nice break getting to know my little man and settling the family into a new routine. Personally the 2:30am feeding could take a hike but it lends a good excuse to sleep in until 7:30. I did return to work within a week of being home but I don't recommend working up a good faith estimate while doped up on Vicodin. I had been tossing around the next subject for my comeback until I read this article in today's Oregonian. I find it extremely one sided and have a running list of arguments against... drum roll please... Oregon Senate Bill 965! My only thought at this moment is "Uh, What?!"

Don’t make the same mistakes I did…

2007-08-06T14:23:00.000-07:00

I don't spend money on advertising but rely 100% on referrals. I have posted my services on Craigslist for a couple of years now, one because it's free and two I was angered by the many misleading ads I had come across. This following post always generated a lot of interest so I thought I would share an excerpt on my blog...

I can remember the day my husband and I bought our first home. It had been a few months since my husband had gotten out of the Navy; he was stationed in Long Beach, California, which is no place to raise a family. So we moved back to Oregon, we stayed with his Dad until we could find a place of our own. You might know that place, a crappy little apartment on a busy street where the rent was only $435/month. It was temporary so we could save up for that big purchase. We saved a little and we searched a lot. We finally found it, the perfect house; we now were going to have a back yard in a quiet neighborhood for our little girl to play in with the puppy we were going to get. We were so excited! I also remember signing the stack of papers, I worked in the loan department at the bank I thought I understood enough to know that we were doing the right thing and that it all looked good on paper. What I don’t remember was our loan officer’s name, who he worked for, or how much money he made off of us. About 2 years later my husband got a great job offer with another company so we sold our little home and relocated to Eugene. This time with two little girls and a little more money than the last, thank God for equity. We could now get a bigger and newer home, even more exciting! We had been writing that monthly check to pay the mortgage so we were experts, right? With yet another loan officer we secure a mortgage, I do at least remember her name and who she worked for. She was nice and explained a little more to us than the last loan officer, we felt confident it was a good loan. I remember her using words like par and points but I never really understood. I was afraid to ask because here I had worked at the bank for the last 2 years and I should know what she meant. Well, the little girl is now a teenager with a cell phone and eyeliner, the second daughter is now the middle, and puppy is no longer. It took a relocation back to Portland, another mortgage, and more time spent working in the loan department; but it wasn’t until becoming a Loan Officer myself that I truly understood what she meant. I wish I still had the closing statements from our first 2 purchases so I can see what not knowing really cost us. It’s true, ignorance is bliss and hindsight is 20/20, but knowledge is power.

The ever changing mortgage landscape

2007-08-06T13:30:00.000-07:00

Some large lenders are rolling back their Alt-A products as liquidity remains an issue on the secondary market. In the short term borrowers are going to find themselves paying higher prices on sub-prime loans or simply out of the market if they can't qualify for that altruistic prime niche. Seeing that the sub-prime market has remained intact, be it is without the 100% financing down to a 540 credit score, I can only speculate that the sub-prime markets will see the need to become more competitive and will look to expand their portfolios to include these former alt-a borrowers. The result leaving only a shift in definitions rather than a cluster of home buyers high and dry. Half empty or half full?

Welcome to the World Little Man

2007-07-16T14:48:00.000-07:00

What kind of Mommy would I be if I didn't brag about the birth of my son?

Welcome Kalen James born July 8, 2007 at 1:54 pm, weighing in at 7 lbs 8 oz at 20" long. Holding Kalen are his sisters Jordan, Sydney, and Delaney.

Oregon Legislature closes the 2007 session early

2007-06-28T16:31:00.000-07:00

and without the passage of Senate Bill 965... Woo-Hoo!

I am again in search of new post worthy topics with the goal of educating you the consumer : )

Paris Hilton trumps SB 965

2007-06-21T15:08:00.000-07:00

The bill was scheduled for a work session yesterday June 20th with the House Elections, Ethics and Rules committee but later removed from the agenda. In an E-mail today from Representative Wayne Scott, House Republican Leader, I am told

...SB 965 is still in the House Elections, Ethics & Rules Committee and as of today no further action is scheduled. Until the legislature adjourns (which we believe will be next week) any bill can come up for a hearing without much notice ... however I don't believe SB 965 has the votes to pass. This bill is on my "watch" list and I will carefully monitor any and all activity on it. I do not support this bill!

To further support the arguments against Senate Bill 965 it is holding true that Mortgage Brokers will encounter difficulty complying with this law to keep their surety bond intact per this letter from the SFAA.

I am frustrated with the lack of press this bill is getting considering the severity of its outcome. The title says it all.

SB 965 Agenda

2007-06-19T09:07:00.000-07:00

Looks like the House Elections, Ethics and Rules committee will hold a Work Session tomorrow 6-20 @ 8:00 A.M. in HR E.
Check back for more updates...

Senate Bill 965: What can you do now?

2007-06-15T16:43:00.000-07:00

At this time only constituents of the seven rules committee members are being asked to kindly contact their reps and remind them of the devastating effects this bill will have on Oregon. Diane Rosenbaum, Chair D-Portland District 42 Vicki Berger, Vice-Chair R-Salem District 20 (at last count a NO) Peter Buckley, Vice-Chair D-Ashland District 5 Sal Esquivel R-Medford District 6 (at last count a NO) Dave Hunt D-Clackamas County District 40 Arnie Roblan D-Coos Bay District 9 (a tough nut to crack) Kim Thatcher R-Keizer District 25 (at last count a NO) Not sure if you are a constituent? Find your Legislator

Senate Bill 965 referred to Rules 6/14

2007-06-15T16:06:00.000-07:00

Here is where we stand as of yesterday June 14th:

06/14 (H) Third reading.

06/14 (H) Motion to refer to Elections, Ethics and Rules carried. Referred. Ayes, 42; Nays, 16--Barker, Berger, Boquist, Butler, Cameron, Flores, Garrard, Hanna, Jenson, Krummel, Nelson, Olson, Richardson, Scott, Smith P., Whisnant; Excused, 2--Cannon, Morgan.

The following is an e-mail I received from the OAMP:

...at 10:35 AM, Senate Bill 965 was referred to the House Rules Committee, as we have anticipated for the past ten days. House Consumer Protection Committee Chair Hovey, in speaking on the bill prior to the vote to refer, acknowledged that there were a few provisions in the bill in its current form that would bring “unanticipated problems.” He went on to say that “quick amendments will take care of those problems and everybody can get on the train.” We are quite aware that a few “quick amendments” will not solve the myriad of problems that SB 965 would cause, and remain strongly opposed to the bill’s being amended, sent to the House for a vote, then returned to the Senate for their action. Though it’s “not over until it’s over,” when the legislature has adjourned for the session without passage of the bill in any form, your OAMP legislative team has been and will remain in contact with all Rules Committee members. As a result, we remain cautiously optimistic that the bill will not leave the Rules Committee, and that the issues of mortgage reform and consumer protection without devastating side-effects on both consumers and the mortgage industry will be addressed responsibly by all parties during the interim period between this and future sessions. Tom Hendrickson OAMP Legislative Chair

Helpful Link: Glossary of Legislative Terms

The Top Ten reasons borrowers pay their bills late.

2007-06-13T17:54:00.000-07:00

In light of all of the talk about defaults I want to point out that predatory lenders are not solely to blame. People can be just plain stupid, I know that is not very PC so I took the liberty of providing you with a link if you prefer to insert a kinder word of your choice. Before I made the move to Mortgage Consultant I worked as a Collection Specialist for 12 years and I tell you I have heard it all. I need to lighten the mood up with all of this seriousness of Senate Bill 965 so I thought I would share my favorite RFD's or reason for default...

10) "I forgot."

9) "I mailed that... (pause) Oh, sorry it's still in my purse."

8) "I don't know. You'll have to talk to my wife. She's not here, she's shopping."

7) "I didn't get a statement."

6) "My Ex is supposed to pay that."

5) "I was waiting for my tax refund."

4) "I forgot to add a 1¢ stamp" <----note inflation here!

3) "My dog ate a rock."

2) I'll never know they didn't return my call.

and the number one reason borrowers pay their bills late is...

1) "Christmas!"

But seriously, if you are facing a hardship and are not able to pay for one reason or the other, contact your creditors and explain the situation. Most of them are going to work with you, some of them might offer reduced payments or an extension. If you aren't able to beat them to the punch, call them back and please be kind.

Update on Senate Bill 965

2007-06-13T15:41:00.000-07:00

A Third reading of SB 965 is scheduled for tomorrow, Thursday June 14th. I have heard thorough the grapevine that...

The bill is being sent to Rules: Diane Rosenbaum, Chair. Jeff, who has told us he will vote against the bill, is of the impression that there are not enough Dem. votes to pass it and also believes that it will die in Rules.

Let's hope so!

The 411 on the 911

2007-06-12T15:38:00.000-07:00

Oh my, do the Feds really get it?! Although this article at money.cnn defines sub-prime as lending only to those with poor credit, it does validate what those against Oregon's Senate Bill 965 have been touting: that over regulation will limit the loan programs available to consumers.

Let's clarify "sub-prime" or "non-prime" if you will. The market emerged mainly due to the Community Reinvestment Act of 1977 which states that institutions must be able to offer loans that help those within its own community. Yes, sub-prime loans are made available to those with poor credit histories, but it also includes those who might be self-employed, have lower incomes, or mortgage lates. Granted "prime" lenders have "non-conforming" or "alt-A" programs available, but their pricing is not always as competitive. Wiki: Subprime

As the market tightens due to the increase of defaults, the lenders whose guidelines may have been more loose than others are finding themselves in trouble if not shut down. The market is correcting itself, SB 965 is not necessary to protect Oregon consumers. Consumers themselves need to become better educated and all "loan originators" need to be held to the same standards. The proposal has been made to create a task force to draft a better law which does both, however it appears that a recommendation has been made to pass SB 965. There may be some additional amendments that I have yet to read over. I have not heard when the bill is back on the agenda but you can keep checking its status here on the webagenda.

An "amended" open letter to the Legislature...

2007-06-06T07:49:00.000-07:00

I thought about not posting this letter here due to the fact it is very personal but I find it hard not to as SB 965 will hit Oregonians (including myself) hard. I have seen close to 100 hits in the last two days because of this topic and feel that I should continue to post on the subject until we have an outcome. Thank you all for reading, I look forward to any comments...

Dear Sirs, Last week I wrote asking for your support on the UFL sponsored amendment in regards to SB 965, today I ask for your vote against this bill in its entirety. I have made several attempts get my thoughts down in a letter to you highlighting the points that make this bill a detriment to our state without being redundant. I find it necessary to amend my original letter as you have amended SB 965. With a few keystrokes you have managed to keep the basic principals but yet send a whole new message, not to mention change the players in the middle of the game. Please vote NO on Senate Bill 965. As both a consumer and a licensed mortgage loan originator I fail to see how passing this bill will protect those for whom it was written. I have worked in the financial industry for the last 14 years with consumers who have fallen prey to the types of lenders this bill is intended to impact and in my opinion that is where we must continue our focus. The compliance of “originators and lenders” under the current laws must be strengthened before new and unobtainable laws are rushed into. This bill if passed will place a larger burden on current regulation and force our local economy into further crisis by taking away many of loan programs that are imperative to sustain Oregon’s housing market. This so called Home Loan Fairness Act is an oxy-moron at best; please take to heart our efforts and allow a task force to draft a new bill that will truly protect Oregonians. On a personal note, if this bill were to pass I myself would be unable to qualify for a mortgage. Life happens and it happens to good people. On my husband’s thirty-third birthday he suffered a brain aneurism while we were away on vacation. I was 14 weeks pregnant at the time with our third child and had just cut my hours down to part time. He spent 3 days in the ICU and another week in the Neurological Ward. Some $67,000 later he was released to go home where he spent the next 3 months recovering, unfortunately insurance, disability benefits, and planning can only get you so far. Needless to say our savings, our budget, and our credit were shot. We make a decent living and have recovered financially but the impact still lingers. I tell my story only to put a name on the face of those whose lives you will affect. There are numerous families out there who might have different stories to tell but have experienced the same outcome. The types of lenders who would extend us credit for a home loan now are the same types of lenders this bill is going to drive away from conducting business in the state of Oregon. To top it off I most likely will find myself unemployed as I work for a small mortgage brokerage which stands to lose its bond if this bill becomes law. I have been following the evolution of SB 965 and have questioned its ability to protect Oregonians from the start. I am in favor of protecting consumers but this bill will only hurt them by limiting their options. Again I urge you to please vote NO on SB 965. Respectfully, Corri Klebaum Mortgage Consultant Sunrise Mortgage 301 Warner Milne Rd Oregon City, Or 97045 (503) 722-1540 cc Govenor Ted Kulongoski Senator Ron Wyden Senator Gordon H. Smith Representative Darlene Hooley Senator Kurt Schrader Representative Wayne Scott

More print on Oregon's SB 965

2007-06-04T09:13:00.000-07:00

Gonna keep it short and sweet this morning as I have a full day ahead of me. After attempting several different avenues I managed to upload a current copy of SB 965 with the proposed amendments for your reading enjoyment. This blogging thing is starting to gel but I do recall getting a "D" in journalism my freshman year, I think it was the senior who sat in front of me : )

Here is an article from today's Oregonian

Happy Monday!

Kill Bill 965

2007-06-01T18:39:00.000-07:00

I don't see any reason to blog about anything else these days as the vote on Oregon's SB 965 draws near. Although amendments have been made to improve the bill's impact on loans approved through automated underwriting the bill no longer includes banks and credit unions. This bill will be detrimental to Oregon's economic well-being. Consumers must speak up, this affects you! Find your legislator

Today I received this e-mail from Representative Wayne Scott...

Dear Corri, Thank you for your e-mail on SB 965, the bill that makes changes to Oregon’s “non-traditional” home loan laws. This bill recently passed the Senate by a 24-2 margin and the House Consumer Protection Committee 4-2 with one member excused. It is now headed to the full House for a vote in the upcoming days. Frankly, given the support the bill has received so far, it will be difficult to stop. However, at this point I will not be supporting SB 965. The current version of SB 965 would limit consumer choice when it comes to home loan options. With housing prices rising as fast as they have been in recent years, I recognize that many families rely on “non-traditional” loans to finance their home purchase. I am not in favor of government making it more difficult for families to buy homes. Most of the mortgage brokers I have heard from believe in full disclosure of terms, and support requiring full disclosure for those who do not do so voluntarily. While there are a few cases of unscrupulous mortgage brokers deceiving borrowers, I think the Legislature’s efforts, as well as the industry’s efforts, should be focused on better regulating those brokers, rather than punishing all brokers and limiting consumers’ options in the process. In closing, thanks again for sharing your concerns with me. If you have any questions, or if I may be of further assistance to you, please don’t hesitate to contact me. Sincerely, Wayne Scott State Representative, District 39 House Republican Leader 900 Court Street NE, H-395 Salem, OR 97301 503-986-1400

A wolf in sheeps clothing and three little pigs.

2007-05-30T07:51:00.000-07:00

It seems I am going to need to give Bill 965 its own label, at least now I feel enlightened. The House is meeting today but I am not able to verify that 965 is on the agenda. Let's hope that the pleas of all of us involved have not fallen on deaf ears... Anyway, my Google alerts have been working overtime this week and today I got this link to an article published in the Gresham Outlook on the bill and its "unintended consequences".

As to the other alert I received regarding the schmuck who left the pigs in his house without food and water, just because you are being foreclosed upon doesn't give you the right. I hope your mortgage bank intends to seek non-dischargeablity for fraud and goes after you for the deficiency balance.

More on Bill 965, no pun intended

2007-05-26T08:29:00.000-07:00

What I had dismissed as a yawn has turned the mortgage industry on its ear this week. The bill was passed through the Senate with the promise that revisions would be made to correct its many problems. However it appears that it might pass without those revisions causing many ethical brokers concern to the bills impact on Oregons housing market and its consumers. The Oregonian ran this story today.

An open letter to Legislature and fellow Oregonians

2007-05-24T16:02:00.000-07:00

Please support the UFL-sponsored amendment in regards to Senate Bill 965. As both a consumer and a licensed mortgage loan originator I fail to see how passing the bill as it is currently written will protect those for whom it was written. I have worked in the financial industry for the last 14 years with consumers who have fallen prey to the types of lenders this bill is intended to impact and in my opinion that is where we must continue our focus. The compliance of “originators and lenders” under the current laws must be strengthened before new and unobtainable laws are rushed into. This bill if passed as is will place a larger burden on current regulation and force our local economy into further crisis by taking away many of loan programs that are imperative to sustain Oregon’s housing market. This so called Home Loan Fairness Act is an oxy-moron at best, please take to heart our efforts and replace the current bill with one that will truly protect Oregonians.

Respectfully,

Corri Klebaum
Mortgage Consultant
Sunrise Mortgage
301 Warner Milne Rd
Oregon City, Or 97045
(503) 722-1540

cc
Senator Ron Wyden
Senator Gordon H. Smith
Representative Darlene Hooley
Senator Kurt Schrader
Representative Wayne Scott

Holy crap!

2007-05-24T10:24:00.000-07:00

I just realized that I managed to get through the last 12 and a half hours without learning the outcome of the American Idol season finale... Why? Well honestly I have become so preoccupied with reading news articles and blogs to keep up with my own that I forgot how to relax. Breathe in, breathe out... Just so that this post is not completely off topic I want to thank all of my 200+ readers to date for checking out my virgin bloggage and I hope I have at least given some helpful advice. It can be challenging to make something that really is boring somewhat entertaining, so feel free to contribute your comments or links, serious or not. I am still waiting for fantasylandmortgage.com to resurface so I can post the link... Luckily I have TIVO so I am going to sit down with my third cup of coffee and fast forward through all the boring stuff to see who won. I hope it was Blake, if not I can blame his choice of Bon Jovi over Sublime.

Let's focus on consumer protection, not blame.

2007-05-23T09:21:00.000-07:00

The sub-prime meltdown is still a hot topic in the headlines as lawmakers look to reform lending practices. Tuesday the head of the Mortgage Bankers Association pointed fingers at commissioned sales-people, in response the president of the National Association of Mortgage Brokers, Harry Dinham was quick to retort with this press release.

More on the debate between the brokers and bankers.

Maybe it's just a little too late

2007-05-17T10:35:00.000-07:00

I passed on commenting on the Home Loan Fairness Act last week as I was waiting for something a little more exciting to happen, hmmm... Yawn! The press release discusses the drive behind the legislature but I fail to see how this bill, if passed by the house, will do any bit of good on a few levels. 1) How can they say it will prevent a crisis that we are already in? The first paragraph says it all... Hello! 2) The existing lenders have already been forced to tighten their guidelines. Investors suddenly remember why they did not lend money to less-than-creditworthy borrowers before the sub-prime market emerged and are no longer buying the paper. The "defunct lenders" have shut their doors and many are facing bankruptcy. Here's a great website to visit. 3) There are already issues enforcing compliance with current laws in place to protect consumers and who must disclose what varies on who is originating the loan. The bill at least includes all types of "lenders" to disclose the non-traditional terms, however, will the fine-print get the attention it deserves? Please don't get me wrong, I am all for protecting consumers from predatory lending. I counsel my clients who have found it necessary to obtain non-traditional loans and continue with follow-up. I affiliate myself with two associations whose platforms are ethics in lending. I have searched for my own peace of mind for anything other than fluff on this bill and have yet to find it. I just don't get it, if someone out there does, please enlighten me... Again, I stress the importance of educating consumers.

I do it so should you.

2007-05-09T16:07:00.000-07:00

"Should" is not a word I use often, unless of course, I am talking to my kids (okay, the hubby too if I feel real strongly). In this instance here are two things you really should do if you haven't already...

1) Opt-Out from prescreened credit offers you can go to the website or call 888-5-OPTOUT. Have your personal information ready of course. It's easy, it will save a tree, your time, and it could help prevent identity theft.

2) Join the National Do Not Call Registry, you have a life right?

And if you feel like it there are also opt-out links for direct marketing and commercial email, learn more.

P.S. you should take my poll too : )

Weigh in on the mortgage meltdown.

2007-05-04T09:29:00.000-07:00

Even before my first cup of coffee this morning I am hearing about the downturn in real estate prices, the increase in default and foreclosure rates, the lenders shuffling to bailout problem accounts, and the government's attempt to change sub-prime lending practices. Whew! Did I mention the part about no coffee??

So I've had my two cups of coffee for the day, maybe I'll need to take a couple of Tylenol too, and I am thinking I haven't heard much from the consumers' perspective...

Shedding light on credit scores.

2007-05-02T11:14:00.001-07:00

Your credit rating will determine the interest rate you pay not only on consumer loans, but also the premiums on homeowners and auto insurance, and lately more employers are considering your credit history to determine your eligibility for employment. Over the years I have seen credit scores that have ranged from the 410's to the 860's. The FICO score is a formula used by the each of the reporting agencies but it will differ due to the information collected by each. The formula itself is a moot point but I will share its major components.

1) Payment History: Simple, pay on time every time. If you have not in the past the sooner you start the better. Public records such as a bankruptcy and foreclosure will hurt you the most. Judgements and collections will also take a big bite out of your score followed by slow pays. Derogatory information will carry less weight over time as long as you develop good credit habits going forward.

2) Capacity: The balance owed vs. the credit limit. Being maxed out will hurt you just as much as slow pays if not more. Ideally you would want to pay your balance each month. You also want to make sure you don't have too much credit available, but be careful if you decide to close any accounts, make sure it has a zero balance and is not one of your long standing accounts.

3) Longevity: The length of time your accounts have been established. You want to show a good payment history over a length of time. Rolling credit card balances every 6 months or so to keep the teaser rate might save you money but you are hurting your score in the long run.

4) Types of accounts: You will find trade lines categorized into 4 groups, Mortgage, Installment, Revolving, and Open-end accounts eg. mobile phone and utilities in some states. A good balance between the types of accounts is needed to keep your score up. Your history on a mortgage trade line will have a more positive impact on your rating while a signature loan with those nameless "financial institutions" will have a more negative one.

5) Inquiries: How many times in the last 12 months and for which types of accounts are you applying? Creditors are weighted by their type of credit they offer. Mortgage or auto inquiries within a 30 day period are counted as only one inquiry. Even more interesting an inquiry at a credit union will have less of a sting than an inquiry at that nameless "financial institution".

Most importantly make sure that all the information on your credit report is accurate. You can obtain all three free at freeannualcreditreport.com it will not include your score unless you opt to pay for it. Contact the creditors directly to dispute any incorrect information, if that doesn't help file a dispute with the agency reporting it. If you want to keep tabs on your score you can subscribe with any of the agencies for a monthly fee, shop to see which of the programs work best for your needs and goals. You also might consider purchasing score simulating software available and play with different credit scenarios. Monitoring your credit is beneficial for your wallet and will also alert you of any fraud. For more information visit these sites: Equifax, Experian, and TransUnion.

Risky Business

2007-04-25T07:19:00.000-07:00

One of my biggest pet peeves are lenders who can't seem to comply with the law. In fact I turned a "loan officer" in a few weeks ago for failing to disclose the APR in an advertisement, as a bonus this "loan officer" was not even licensed in Oregon. So when I read about this over the weekend I admit that I smiled a little inside. Read on Search Loan Originators p.s. I am licensed under "Baber-Klebaum" :)

Tuesday's Tip: Staging

2007-04-24T14:00:00.000-07:00

Whether you are getting ready to put your home on the market or even trying to get the most out of an appraisal, staging your home is a simple and affordable way to make a good impression on all of those who cross your threshold.
1. Room Editing – Often times, rooms just get overcrowded with stuff. If you had planned on selling, giving away, or discarding items before actually moving to your new home, consider doing it before your current home goes on the market. If you simply have too much furniture in one room, move it to another area of the house or to a storage spot for the time being, such as a basement or garage. This will free up the room and make it seem more spacious and airy. An appealing selling point for potential buyers.
2. Furniture arrangement – As in editing, well placed furnishings can also open up a room. Avoid lining furniture along all four walls. Try placing a piece or two on an angle. In the living areas, include an area for cozy conversation. If space allows, an out of the way corner for reading. If a room has a focal point for selling such as a fireplace or bay window, arrange furnishings to enhance this feature, not distract from it.
3. Clutter Elimination – Keep in mind that you want potential buyers to be noticing the house itself, and not your belongings. This is a perfect time for significant collections such as newspapers and magazines, knick-knacks, and overstuffed bookcases to be boxed up for the move. This includes kitchen and bath countertops! Small appliances and little jars, bottles, and tubes should not be left on display. By eliminating clutter, you will also add to the feeling of spaciousness in a room.
4. Making Scents – Just like certain smells can trigger memories in a person years later, the scent of a home can leave a lasting effect on a potential buyer. For this reason, you want to avoid cooking smelly foods such as fish, liver, garlic, onions, or anything fried or spicy before showing your home. If weather allows, open windows and doors to let in some fresh air. During winter months, baking a frozen loaf of bread, cookies, or pie can be an inviting fragrance. And though you never want to over perfume your home, you may want to light a candle as a quick and aromatic remedy. Staying away from sharp floral scents and sticking with a low hey scent, such as vanilla or eucalyptus fragrance is best.
5. Lighting – Show your rooms in the best possible light… Natural! If heavy drapes or curtains block the view leave them open! The same goes for any kind of blind. Light makes a room seem bright and cheery. On that same note, make sure to clean the windows and screens, inside and out. This can make a big impact on the light coming into a room. The difference is often times amazing. If you have a room or two with dark walls and no windows, leave a few lights on at all times during showings. If overhead lighting seems too stark, try just leaving on a lamp or two for drama.
6. Material Things – Stained, dingy towels are a no-no for a home showing. Also wet towels should be tossed in the dryer before heading off to work while your home is on the market. In the kitchen and bath, consider setting out guest towels and soaps. Inevitably, a visitor or two will be in need. Throw rugs and carpets should also be in good condition. And if they are not completely necessary, such as in an entryway, or hiding a beautiful wood floor, they should be removed. Never lay a rug over carpeting. Tattered or worn bedspreads should be removed and replaced, as well. Beds should always be made.
7. Using Flora and greenery – In spring and summer, an outdoor container garden or hanging planter is lush and appealing and can add a lot of first impression impact. If your house id going on the market early in the season, consider purchasing mature plants rather than starter plants. A homes interior can benefit from flowers and greenery, as well. A simple seasonal market bouquet can brighten up any room of the home and has a charming appeal.
8. Clean! – There is nothing more attractive than a clean home. IF you are not into cleaning yourself, hire a professional. Make a list for each room, paying particular attention to your homes entrance, both interior and exterior, kitchen and bath areas. Your home should be as spotless as possible for show.
*Reprinted from centerstagehome.com

TGIF!

2007-04-20T14:23:00.000-07:00

Nothing new and exciting jumped out at me today, except for that rates came down a little this week, so I thought in honor of Friday I'd share a favorite joke : ) A Mortgage broker dies and meets St. Peter at the Pearly Gates. St. Peter tells him since his behavior has been marginal that he could choose for himself between heaven or hell. The broker asks if he can check each place out before he decides and St. Peter agrees. They go in to see heaven first. The streets are lined with lavish homes, lush gardens, and luxury cars. Nothing but the picture perfect life that one might dream of. Then the broker and St. Peter go to check out hell. There were good looking people everywhere, a full buffet, every top shelf booze you could imagine. Everyone is having a great time. The broker who would love either place wants to think about it until tomorrow and St. Peter agrees. The broker comes back the next day and lets St. Peter know that he has chosen hell. St Peter asks, "Are you sure?" but the broker is very confident. So St. Peter escorts the broker down to hell, it is now engulfed in flames and everyone is being tortured. The broker says to St. Peter, "What happened? It was a huge party!" St. Peter turns to the broker and says, "You should have locked yesterday."

Relief for adjusting ARM's

2007-04-18T08:09:00.000-07:00

Fannie Mae and Freddie Mac have announced they are developing new products to bail-out consumers who are facing impossible payments when their ARM's adjust. Although there is no reference of a timeline I imagine it can't come soon enough for some. Read on

Reform Bankruptcy Reform?

2007-04-13T08:56:00.000-07:00

Representing a creditor at the time the bankruptcy reform act was finally passed into law I saw its need to curb the abuse of the system. Now it has bitten those who truly need it to save their home in the butt and special interest groups are again calling for reform. Read on Ironically I had touched on bankruptcy reform being an obstacle for consumers in dire straits back in August in my comments left on another local blog re:PDX. With all of this said I feel that lenders (predatory or not) are going to have no choice but to become more familiar with work-out loans.

YSP again?!

2007-04-11T09:17:00.000-07:00

In search of today's topic I came accross this story "Realty Q&A" at MarketWatch.com along with another article"Sub-prime crisis shines light on mortgage brokers" both spark more debate on the issue of YSP. I am not going to comment on either today, I think they speak for themselves, rather I am in search of something else off the topic... Wish me luck :)

The Great Debate

2007-04-10T10:14:00.000-07:00

There are many opinions on ways to curb the abuse of YSP or Yield Spread Premium as suggested in the article "Dealing with yield-spread premium abuse" published by Bankrate.com. In my opinion an originator who isn't skirting around YSP is a good find. Unfortunately until reform can be made the burden has fallen upon the borrowers to become better educated.

How to compare Good Faith Estimates

2007-04-09T08:28:00.000-07:00

A Good Faith Estimate is required by law to be provided within 3 business days of pulling your credit. It is where lenders list the costs involed with obtaining a real estate loan. I have outlined the most important elements for you. 1) Points: Not only is the origination fee important but know what is being paid by the lender to the broker. This is called the yield spread premium or YSP, the higher the rate the higher the YSP. The purpose of YSP is to pay the broker for services performed, it may also be necessary to cover adjustments charged by the lender if you have certain risk factors, or to lower your closing costs. You may wish to pay the entire amount upfront to keep your rate low. 2) Fees: Lenders commonly charge underwriting, tax, wire, and flood certification fees and a broker may charge processing and credit report fees in addition to the origination fee, anything more might be considered junk fees. Junk fees can really add up and will affect your APR. There are also fees that are more so fixed and won’t vary much, these are going to be your appraisal, pest inspection, title and escrow fees, prepaid interest, tax prorates, hazard insurance, and reserves if collected for an escrow account. If the fees are quoted too low you will need more money at closing. 3) APR: The annual percentage rate, this is the true cost of credit. The APR must always be disclosed if a rate is quoted. You will find it on the Truth In Lending disclosure that must accompany your good faith estimate. If there is a large difference between the note rate and the APR double check the fees being charged, you might want to continue shopping. 4) Terms: Are you comparing a 30 year fixed loan to a 5 year ARM, are taxes and insurance included in the payment, or will you have pre-payment penalties? You will not be able to make an educated decision if you are not comparing apples to apples. Keep in mind all good faith estimates are just that, an estimate; however its purpose is to give you a good idea of what obtaining a mortgage will cost you. If you want to see another loan type quoted, ASK!

***Changes to the RESPA laws effective 1/1/10 have changed some of the timelines and requirements by law. Stay tuned for an update.

Think twice before you click "Continue"

2007-04-07T16:16:00.000-07:00

Those sites advertising competing offers from lenders simply trigger what we in the mortgage industry call leads. Once you click "Continue" these leads are then compiled into lists and sold to companies willing to pay for them. In this instance consumers are aware they will receive calls for loan offers, but I doubt they realize their information was being sold. In a recent consumer alert the FTC is making it known that the credit bureau reporting agencies have also been marketing these leads to mortgage companies, however unknowingly to consumers... Read on Hint to fellow mortgage professionals: Don't include any phone numbers on the application until after you've pulled credit ;)

The first post

2007-04-07T08:01:00.000-07:00

Welcome to Oregon Mortgage ConneXion!

While sifting through newsletters, articles, and blog subscriptions I was inspired to create a place of my own where I can share such information with my clients and network of professionals. My goal is to provide links to information I find valuable and inject some humor from time to time. I'd love to hear your comments and suggestions and I look forward to many more posts.