What is good advice and what is bad advice? Use common sense. Here is some mortgage advice from us. We think this will help you find the best loan and avoid the issues with family advice along the way!

* Get a mortgage pre-approval before you get your hopes set on a home. When it comes to purchasing a home, you have to know how much mortgage you can afford. When you do, you can find your dream house that you can afford. So, get to the lenders before you see the real estate agent!
* Find the best interest rate. No matter what type of mortgage you decide to take out, our advice is to shop around and compare interest rates. A small difference in one bank or lender to another is thousands of dollars over the course of the mortgage term. Advice is the most important feature to help you save money.
* Compare apples to apples, but compare them all is our advice. Finding a balance in the amount of money you pay each month and the shortest loan is our advice. Again, shop around for all of these different options and their rates.
* When it comes to advice on deciding on the right lender and the right mortgage, take the time to consider all aspects of the mortgage. Take this advice, it will help you! This includes the cost of the closing, the fees involved, and all terms of the mortgage. The best mortgage advice is that you should choose the mortgage term that is the best option for you.

The next time you get advice about your mortgage purchase from your uncle or a long lost cousin, think about what really matters. You need a lender that offers you the best rates,
terms, and the best overall service. You need advice on which lenders to choose, but you know that the best lenders for one person aren’t necessarily the right choices for you. Mortgage advice needs to be solid, full of good advice, free of biased advice, and the attitudes need to be left out!

You’ll find great mortgage advice starts with simply doing basic research to find the answers you need. Don’t go with Aunt Sue’s bank because she has been there for 30 years if an online mortgage can offer you a mortgage at a fraction of the cost. Take our mortgage advice; do your research before
obtaining a mortgage. That is the best advice you can get!

Most mortgage lenders have both wholesale and retail departments. Mortgage brokers prefer to obtain wholesale rates and then mark up these rates by adding points, presenting the borrowers with quotes that are similar to what borrowers could obtain directly from a retail lender. Mortgage brokers are free to set whatever prices they want, and have different methods for marking up wholesale rates.

Wholesale mortgage lenders generate residential mortgages through a network that includes independent brokers and lenders, offering a wide variety of home financing options: conventional, home equity, government, alternative and jumbo loans. All of these may be purchased from the mortgage professionals, including lenders and brokers, who make up a wholesale mortgage lenders network. The goal of the network is to ensure that both borrowers and lenders benefit from the transaction.

Different types of Wholesale Mortgage Lenders

o Wholesale Mortgage Lenders Network

This is a network of professionals working together in order to find the best deals for those involved in the mortgage process, including homeowners, lenders and even independent mortgage brokers. Professional loan consultants work with the homeowner in order to understand their needs and assist them in choosing the best mortgage program. Even people with less than perfect credit may be able to obtain a mortgage that will help them repair their bad credit, reduce their monthly payments or buy a home.

o Second Wholesale Mortgage Lenders

These mortgage lenders offer a range of second mortgage finance programs to help homeowners choose the right option. A second mortgage lender offers competitive rates for different loans. There are different types of second mortgage programs, like a cash-out second mortgage that can be taken out for debt consolidation and home improvement. It can also be used to consolidate high interest credit card debt. It could mean a re-mortgage and be used to purchase another property.

The lending criteria set by second wholesale mortgage lenders are very strict, though the cost is similar to first mortgages. There are also potential tax consequences as the second home or property could be classified as providing the rental income to the owner.

o Online Wholesale Mortgage Lenders

There usually are no upfront costs or obligations when you apply with an online mortgage lender. It offers flexibility both in applying online as well as in obtaining information about various mortgage programs. Quotes are also available for free and the homebuyer is under no obligation to apply with the lender. Rates and costs are easy to compare, since there are many available materials online to help the home-buying process. For advice on which online lender to choose, a professional mortgage advisor may be of help.

o Sub-Prime Wholesale Mortgage Lenders

These are lenders specializing in loan programs for those with less than perfect credit history. Sub-prime mortgages are usually written at a higher interest rates compared to ordinary mortgages. Because of the high cost, it can help in establishing or re-establishing a good credit record. Sub-prime mortgage lenders help credit-impaired borrowers obtain a mortgage. A sub-prime mortgage is for a short period compared to other programs. In order for a borrower to qualify for a sub-prime mortgage, a significant deposit amount towards the home is expected.

The number one way to prevent a foreclosure is to always without fail make every mortgage payment and be sure the payment is not late. Foreclosure can’t happen if you are fulfilling your end of the deal.

Unfortunately, this may not always be possible if you are facing unexpected financial problems. Job cuts, layoffs, accident, injury, fewer hours, lower wages and more may cause hardship and an inability to pay your bills. Even at this point though, foreclosure prevention is not impossible.
To prevent foreclosure, one option is to see if you are able to refinance your current mortgage. If you’ve been a long term customer it’s more likely that your lender will be able to help you out. A couple of possibilities that may be offered are paying interest only for a period of time or stretching your mortgage over a longer period of time. But even a new customer with a good credit history may have options.

You should know that most lenders want to avoid foreclosing on properties if they can. It’s expensive, time consuming and they rarely get back their investment in today’s housing market. That gives you a better chance of working out a new arrangement, although there are never any guarantees.

Keep in mind that it’s easier for lenders to come up with options for homeowners who are working on foreclosure prevention rather than those who are trying to stop a foreclosure. So contact your mortgage holder as soon as you know that you are headed for trouble.

What is a Reverse Mortgage?

With a “normal” home loan you pay a monthly amount (principal and interest). With each month, the amount that you owe goes down and the equity in your home goes up. As one might expect from its name, a reverse mortgage works in an opposite fashion. With a reverse mortgage you can turn the equity in your home into cash. You do not have to make monthly payments. The cash may be paid to you in one or more of the following ways:

* As a single lump sum payment
* As a regular monthly amount (a cash advance)
* As a credit line account that you draw upon as needed

With a reverse mortgage, the homeowner continues to own their home and receives cash in whatever way is preferable to them. As they receive cash, their loan amount goes up, and the equity in their home declines. A reverse mortgage cannot grow to more than the amount of the equity of the house. In addition, a lender cannot seek payment of the loan from anything other than the value of the house. Your other assets and the assets of your heirs are protected by what is called a “non-recourse limit.”

A reverse mortgage, plus accrued interest, does eventually have to get paid back. Repayment of a reverse mortgage happens when the last owner of the property named on the loan either dies, sells the home, or permanently moves out of the home. Before then, nothing needs to be paid on the loan.

There are other circumstances in which reverse mortgage lenders can also require repayment of a loan prior to the above conditions. These include:

* The borrower fails to pay their property taxes
* The borrower fails to maintain and repair their home
* The borrower fails to keep their home insured

There are also other default conditions that can cause repayment of the loan. Most of these are similar to default conditions for traditional mortgages (for example, declaration of bankruptcy, donation or abandonment of the home, perpetration of fraud or misrepresentation, and more).

A reverse mortgage should not be confused with a home equity loan or home equity line, both of which are other means of obtaining money for the equity in your home. With either of these loan vehicles, an individual must pay at least monthly interest on the loan amount received, or amount that they have drawn on their equity line.

Reverse Mortgage Eligibility

All owners of a home must apply for the reverse mortgage and sign the appropriate loan papers. To qualify for a reverse mortgage the borrower(s) must:

* Own their own home
* Be at least 62 years of age or older

A reverse mortgage is most typically a “first” mortgage, meaning that there cannot be any other mortgages or loans against the property, such as an equity line. An individual typically owns their home “free and clear” prior to seeking a reverse mortgage.

Reverse Mortgage Loan Amounts

The amount of money that an individual may receive from a reverse mortgage is a function of many different factors, including:

* The specific reverse mortgage program that the individual selects
* The type of cash advances received (e.g., lump sum vs. monthly payment)
* The individual’s age (the older an individual is, the more cash they get)
* The value of the individual’s home (the more valuable the home, the more cash they get)

Types of Reverse Mortgages

There are several different types of reverse mortgages. Some are more expensive than others. Types of reverse mortgages include:

* Reverse mortgages offered by state and local governments (often called “single purpose reverse mortgages”). These are typically the least expensive reverse mortgages. These may be the most restrictive on how the money received can be used.
* Federally insured Home Equity Conversion Mortgages (HECM). These are almost always less expensive than other private sector reverse mortgages, but more expensive than reverse mortgages obtained from state and local governments.
* Other private sector (proprietary) reverse mortgages.

Alternatives to Reverse Mortgages

While usually an option that causes a negative emotional reaction, selling a home is an alternative to a reverse mortgage. The proceeds of the sale can be used to either rent, or purchase a smaller, more “age-friendly” home, while money leftover can be invested to provide additional income. This option should at least be considered and compared to a reverse mortgage so that an individual is making an informed decision.

Reverse Mortgage Counseling

Counseling is required in order to obtain certain types of reverse mortgages. Counseling is required before an individual can obtain a Federally-insured Home Equity Conversion Mortgages (HECMs). Even if counseling is not required for a particular reverse mortgage, individuals considering a reverse mortgage should seek either counseling or the advice of a qualified financial adviser.

Good Sources of Information About Reverse Mortgages

The American Association of Retired Persons (AARP) is an excellent resource for finding more information on reverse mortgages. Their web site (www.aarp.org) has extensive information on the subject. Information may also be found on the National Reverse Mortgage Lenders Association web site (www.reversemortgage.org), the HECM Resources site (www.hecmresources.org/index.cfm), the National Center for Home Equity Conversion web site (www.reverse.org), and the Federal Trade Commission (www.ftc.gov/bcp/conline/pubs/homes/rms.htm).

While almost everyone has heard of the Mortgage Modification Plan by now, it is still being adjusted and improved. It is in effect until December 31, 2012, and it is estimated that 3-4 million people will obtain a loan modification before the program ends.

At the one-year point, the administration announced that over a million people had received modified loans to save over $500.00 a month on their house payments. However, it has become apparent to the administrators of the program that not everyone can complete a loan modification, even if they are eligible to apply. There was a need for assistance to help these homeowners extricate themselves from a bad situation. That is the motivation for the development of HAFA, the Home Affordable Foreclosure Alternatives Program.

This program took effect in April 2010, and it is funded from the TARP money that also funds the Mortgage Modification Plan. Lenders, who are participating in the government program for modifications, must also participate in the HAFA program. It is not optional, and this makes it better for the homeowners who need assistance.

Homeowners now must be considered for eligibility for HAFA within 30 days that a loan modification is deemed impossible. There are short sale options where the homeowner sells the home, and the lender agrees to accept the sales price as a total payoff with no other obligation. A deed-in-lieu foreclosure is also one of the options with HAFA. This is a scenario where the homeowner turns over the deed to the lender and there are no further payments or obligations required. Often, the lender will require the owner to list the home for sale before a deed-in-lieu arrangement is worked out.

If you are unable to complete a reworked loan through the Mortgage Modification Plan, you may still be able to get some assistance through the Home Affordable Foreclosure Alternatives Program. There is even funding to help homeowners with moving expenses associated with finding more affordable housing.

Many homeowners are hearing about new mortgage modification options yet have no idea what a mortgage modification is. Here is the basics of what modifying a mortgage means. Use this information to help figure out and research if a mortgage modification can benefit you.

With so many homeowners looking to take advantage of the low interest rates available today, and so many more looking for a way to save money and prevent their home from being lost, mortgage modification is a hot topic. Simply put, a mortgage modification is when the terms, conditions, interest rates, length, or other factors of your current home loan are changed. This is different from refinancing because of the fact the loan remains the same, and a new one is not being taken out to pay the existing loan.

Especially these days, many home loan modifications are needed, and approved, on the basis that the homeowner is unable to pay their mortgage at the current monthly amount it is at. Mortgage lenders and banks are not eager to approve homeowners for a home loan modification and often require the homeowner to be in some sort of financial hardship in order to get approved. If financial hardship is the reason for a mortgage modification, a letter stating your problems, solutions, and that will convince them that saving your home is truly a big deal for you.

When a homeowner finally gets a mortgage modification approval, many different things can change in their home loan. Since people are usually looking to get a lower monthly payment, the home loan is extended in length. Sometimes, lower interest rates, can actually be gotten through modification of a mortgage. This is especially true for homeowners with decent credit, but who bought a home years ago when interest rates were nearly double what they are now. The end result more often than not though results in lower monthly payments for the homeowner. This comes at the expense of a longer home loan length, but can also get you better interest rates that can save you money in the long term. Also, never forget that there are costs associated with getting a mortgage modification that can easily add up to thousands of dollars that needs to be paid upfront.

While mortgage refinancing and modification seem like nearly identical practices, they are not. This information can help people who are looking into whether or not a mortgage modification is a good option for them. While all homeowners situations are different, the types of loans are all the same. However, some people will not be able to qualify for the type of loan or mortgage type they want, and need to know about their other options, and a mortgage modification is one of them.

If you are trying to reduce your monthly expenses, then debt consolidation and/or debt settlement are each excellent methods of reducing your unsecured debt payments. But getting a mortgage modification can also reduce your mortgage payment. Since your mortgage is likely the highest monthly payment, it only makes sense to have it reduced too. This is extremely easily accomplished with a mortgage Modification.

A mortgage modification is when your mortgage servicer or lender lessens the loan payment by reducing your interest rate, lowering the balance, and/or extending the term of the loan. A mortgage modification can greatly reduce your mortgage payment and has helped 10,000′s of homeowners stop foreclosure. This process can not only reduce your monthly payment, but it can take a home you were once upside down in, and reduce the payoff amount to bring it back to 100% LTV (Loan To Value). This allows you to keep the home at an affordable payment and you will no longer be overpaying for your home.

Even though most mortgage servicers will require you to be delinquent prior to granting a loan modification, it’s not necessary. When you are not behind on your loan payments, a mortgage modification is possible, as long as you can provide proof of a hardship. The hardship will show that reducing the monthly payment is necessary; otherwise the payments will not be made in the future. Although it will require a lot of time and negotiation with your lender, If you can prove these facts, the modification can be approved.

If you are trying to stop foreclosure, or if you want to get a mortgage modification, you need to begin by contacting your lender or mortgage servicer and asking for assistance. Depending on your circumstances, you may have a loan modification granted on your own, by simply speaking with your servicer. But most of the time, you will have to hire a professional negotiator to work on your case. By employing a professional mortgage negotiator, you will know that your loan modification has the best chance of success.

Remember this advice when attempting to get a mortgage modification:

1. Always send your lender a complete loan mod package; incomplete documentation is the number one reason loan modifications are rejected.

2. Don’t waste any time! Although loan modifications can happen in a few weeks, the average time is more like 2-4 months. Take action immediately, so you have plenty of time.

3. If a customer service agent at your servicer is not any help, try calling back later to talk to a new agent. Different agents may provide more assistance and be more helpful to your cause.

4. Never act rude or yell at a customer service agent at your lender. You will need their help you get your modification approved, so be as patient and polite as possible.

5. Follow up on a regular basis and make sure all faxes and communications are added to your file. We recommend contacting your servicer/lender on a weekly, if not daily basis to make sure they have everything they need to get your case approved.

If your family has faced a hardship that has reduced your income or may cause you to face foreclosure, then a loan modification will help. Take action immediately by contacting your lender to begin your modification.

Here we go…

Cheap Mortgage Lead Generation Tip # 1. Join an Association

People join associations for one of three reasons:

Social – they want to build or maintain friendships and influences that may have taken years to build;

Promotional – they want to offer their own products or services to others in in a cost effective and positive way;

Educational – they want to see what their competition is up to, and find out about the latest developments within their industry

Grow your network and your database by joining groups of already established people. By socializing with people who have something in common with, it makes it easier to generate business. People like to do business with people they like and trust. Most people like others who have the same interests as they do.

Cheap Mortgage Lead Generation Tip #2: Use Book Stores

One of the questions I keep asking all my coaching clients is “How can you tell if someone is getting ready to need a mortgage? What do they do? How do they act?”

This is the million dollar question. If you can answer this question, you can easily be rich in the mortgage business. By being able to identify that they want a mortgage before they start looking for one, you can get a jump on all the other loan companies. This is one area of our business that still annoys me. Most other businesses, have a way to identify when someone will need their service and can market to them accordingly. Like when someone buys a new home, they most likely will be buying furniture, blinds, home accessories, etc. So if we were selling any of these items, all we need is a list of new homeowners to market to. And that list is easily available. But how the heck do we figure out who is “thinking” of getting a mortgage?

The answer one of my coaching clients came up with was that they might go to the bookstore or library to read books on home buying, or mortgages, or real estate in general. And that’s true. Every bookstore has a real estate section. And most of the books are for consumers who are buying and selling real estate.

So my next question is, “Now that we have identified what they do, how do we get our message in front of them?”

And my client came up with this simple method: Go to the bookstores and libraries and insert a business card into each book.

After doing it for a couple months, he came up with some simple observations:

First, he learned that the best place to put the card was somewhere in the front. Try for the first chapter because not everyone reads the whole book.

Second, pick the books with the best covers and graphics inside- they sell the best.

Third, not all books sell and some are sent back to the publishers.

Fourth, having a USP on the card helps boost response.

Fifth, it takes about 10 minutes per bookstore.

Sixth, he averages 3-4 calls a month, and one loan per month.

Seventh, he now has his assistant do it. And she goes once a week.

Eight, the people who call are in search of more information, so offering them unbiased advice and more resources really turns them on.
If you have the time, and are brave enough to be seen doing it, try it and see what results you get. I wanted to test it in my market. So I went to three bookstores and put in about 120 cards. I got 2 calls, and one of them is a very serious prospect. If I do it more often, I have no doubt that it would work for me as well.

Cheap Mortgage Lead Generation Tp #3: Orphan Files

When a loan officer leaves a company the clients he/she brought to the company are called orphans. These clients now belong to the company. Ask your manager to see if you can contact any orphan files in your office to see if they need any mortgage or real estate help. Be nice enough, and they will allow you to add them to your database.

Cheap Mortgage Lead Generation Tip #4: Tradeshows

Another coaching client of mine goes to tradeshows. But not the ones related to our business. He goes to unrelated trade shows: electronic shows, design shows, car shows, and his favorite: women’s trade shows.

Most of the time, he is the only mortgage company there. And he is averaging 2-3 loan applications per show. The trick is to tie in your business with the show. If it is a car show, you can advertise that you can help anyone buy any car in the place.

If you can pre-approve someone at a car show for a cash out refinance, they can go and buy that hot car they have been salivating on for the last 2 hours. Instant gratification.

Cheap Mortgage Lead Generation Tip #5: Join A Local Real Estate Investment Group.

Every major city has one. And they are full of people buying and selling houses. They need money to buy houses, and they need money to help others buy their houses.

Cheap Mortgage Lead Generation Tip #6: Realtor Open Houses

Stop by at realtor open houses on the weekends. Offer to leave some financing materials.

When you get to know a realtor, you can offer to do open houses for her where you sit in the house instead of her. It is not a fun way to spend an afternoon, but you might get some good leads out of it.

If you decide to go this route, make sure the house is in a well trafficed area and easy to get to. And make sure the agent does some advertising and lends you signs and balloons. You do not want to sit in a house, where no one shows up because it is hard to find or no one knew about the open house.

Another tip is to meet the neighbors of the home you are holding open. See if they know anyone wanting to move or buy. Chances are someone will know of a family wanting to move into the neighborhood.

Cheap Mortgage Lead Generation Tip #7: Realtor MLS

Want a source of thousands of people who will be getting a mortgage within the next couple months?

It’s sellers. And the Multiple Listing Service used by Realtors is full of them. Do a search of homes for sale, get the owners’ name from the tax records and you have yourself a good prospect list.

Mail them something about you or an offer for free information. Call them if you can get their phone number and they are not on the Do Not Call list, or just drop by their house if you have the guts.

This is exactly what one of my coaching clients does. He calls Realtors who have listings and asks them if he can market his services to the home sellers. Many Realtors say yes. When they do, he contacts the sellers, and tells them that their realtor said it was ok to call on them.

He tells me the majority of home sellers he talks to are willing to talk to him and he gets several loans a month using this trick.

What Is A Bad Credit Mortgage Loan?

A bad credit mortgage loan is a loan based on the equity in your home. This loan can help you in lowering your overall interest payments and monthly payments, and also in consolidating all your debts. A bad credit mortgage loan is very helpful in repairing your credit.

By taking out a bad credit mortgage loan, you can make all the payments that you can afford. The most popular options for bad credit mortgage loans are cash out mortgage refinance, and a home equity loan. Both these options would allow you to rely on the equity that you have paid on your home, and use its value to come out of all your debt troubles.

With the help of a debt consolidation bad credit mortgage loan, you can move all your credit card payments with a high rate of interest into one lower interest payment. This would not only simplify the payment of your bills and lower your monthly payments, but it would also improve your poor credit situation. Eventually, you would notice an increase in your credit score.

In order to convince the lenders to provide you with a bad credit mortgage loan, you have to increase your down payment and cash reserves. The lower your credit score, the larger is the down payment required on the bad credit mortgage loan. A credit score of 580 requires a down payment of about 5%. Higher cash reserves would convince the lender that you would be able to cope up with the payments in case of any emergency.

Bad credit mortgage loans can also be taken through online mortgage brokers. However, you must thoroughly check the rates in the loan market before choosing any one lender so as to get the loan on favorable terms.

How Can I Find The Perfect Bad Credit Mortgage Company?

If you have a bad credit score, then you need to choose the best bad credit mortgage company if you want to get a mortgage loan. Since a mortgage is a very large investment, you need to choose the best company.

The most important factor to be considered is the interest rate. Thus you need to choose the bad credit mortgage company that provides you the most favorable rate of interest. You must also check that there are no hidden fees included in the plans of the bad credit mortgage companies that offer very low rates of interest. Thus, you need to understand all the terms of the rate of interest.

Another thing to check is the quality of the service provided by the bad credit mortgage company. You should not choose a company that offers extremely low rates of interest, but provides a horrible service. Instead, you should choose a bad credit mortgage company that offers a slightly higher rate of interest, but also cares for your needs and formulates its policies according to your interests.

Building societies are very efficient bad credit mortgage companies. They offer very favorable rates of interest, and also provide expert advice. High street banks are also a good option for a bad credit mortgage company because they have a greater coverage due to a number of branches. Though they may charge a higher rate of interest than the building societies, their introductory offers for mortgage deals are very favorable.

There are also the specialized bad credit mortgage
companies that provide mortgages to people in special circumstances–i.e. when the people are not offered a mortgage by their building society or high street bank. This includes the people with a bad credit history.

If you can’t find a favorable bad credit mortgage anywhere else, you may want to consult one of these companies.

With simple online access you can do a search on bad credit mortgage and have several sites that can help with your financial situation. A little research and time spent educating yourself can help you get your financial situation back in order.

22 Feb 2012, 7:23 pm

Reuters – Republican Mitt Romney, looking for a boost in his presidential campaign, proposed an overhaul of the tax system on Wednesday that he said would cut Americans’ tax rates by 20 percent and limit deductions for the wealthy.

Source: Yahoo! News: Personal Finance News |

22 Feb 2012, 7:19 pm

Christian Science Monitor

Mortgage Rates: Low Mortgage Rates Hold On After Greece Bailout Approved FreeRateUpdate.com Current low mortgage rates are holding on after the long anticipated Greece bailout was approved. While this long anticipated deal has been a driving force with markets, there were no significant rallies. There are still concerns about whether this new … HSH.com Weekly Mortgage Rate Radar: Rates Down Slightly but Expected to Trend …San Francisco Chronicle (press release) No change in low mortgage ratesChristian Science Monitor Are all Variable Mortgages the Same?Oakville.com Irish Independent -The Mortgage Reports all 56 news articles »

Source: mortgages – Google News |

22 Feb 2012, 5:37 pm

The Real Deal New York

Mortgage Applications Decrease Again in the Latest MBA Survey LoanSafe (Source: MBA) — Mortgage applications decreased 4.5 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending February 17, 2012. The Market Composite Index, … Mortgage Application Volume Falls 2.5%Wall Street Journal Mortgage applications dropped last weekThe Hill (blog) US mortgage applications sagged last week: MBAReuters World Property Channel -RealEstateRama (press release) -Washington Business Journal all 40 news articles »

Source: mortgages – Google News |

22 Feb 2012, 4:54 pm

Clampdown on interest-only mortgages This is Bristol As it says on the tin, an interest-only mortgage means you pay just the interest every month on your loan. The capital, which is the part that reduces the amount you owe, is paid into a separate repayment vehicle such as a stocks and shares ISA, …

Source: mortgages – Google News |

22 Feb 2012, 4:40 pm

The Star-Ledger – NJ.com

Conn. to reap millions in mortgage settlement CBS News Connecticut Attorney General George Jepsen told state lawmakers Tuesday that a national settlement for mortgage abuses has established needed reforms, but he asked that they use millions from the deal to help struggling homeowners and not spend the … The $25 Billion Housing Settlement: Regulations with a Side of CashPatch.com A new era in homeownershipPhiladelphia Inquirer Banks Take It Easy, While Miami Struggles Against ForeclosuresHuffington Post The Investigative Fund (blog) -Greenwich Citizen -MyCentralJersey.com all 155 news articles »

Source: mortgages – Google News |

22 Feb 2012, 4:22 pm

AdvisorOne

Pimco Said to Quit Group After Mortgage-Deal Silence BusinessWeek The episode underscored Pimco's concern that the trade group doesn't advocate for debt buyers as well as banks that underwrite mortgages, the people said. The foreclosure agreement resolves state and federal probes into practices such as so-called … PIMCO Quits SIFMA Splinter GroupAdvisorOne all 11 news articles »

Source: mortgages – Google News |

22 Feb 2012, 4:17 pm

Reuters – JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp. and more than a half dozen other major banks are being hit with a new lawsuit over $949 million in residential mortgage-backed securities.

Source: Yahoo! News: Personal Finance News |

22 Feb 2012, 3:44 pm

Bloomberg

Citigroup 'Defrauded' Fannie, Freddie, Whistle-Blower Says BusinessWeek The bank “defrauded, falsified information or misled federal government entities” by selling or securing insurance for mortgages with defects such as improper appraisals and not reporting them as required, Sherry Hunt, a Citigroup quality- assurance … Fannie Mae and Freddie Mac Require Investment, DeMarco SaysBloomberg Watchdog: Fannie, Freddie Must Spend Less On Legal Fees For Former ExecutivesHuffington Post Feds Triple Incentive to Reduce MortgagesHousing Predictor CNNMoney -Fox News all 433 news articles »

Source: mortgages – Google News |

22 Feb 2012, 2:22 pm

Bloomberg

Wall Street Crowds Into Trader Joe's as Trophies Prove Elusive: Mortgages Bloomberg Enlarge image Wall Street Crowds Into Trader Joe's for Bond Deals Wall Street Crowds Into Trader Joe's for Bond Deals Francis Specker/Bloomberg Morgan Stanley is selling about $1 billion of commercial mortgage-backed securities with five of the 10 … Wall Street Crowds Into Trader Joe's for Bond Deals: MortgagesBusinessWeek all 5 news articles »

Source: mortgages – Google News |

22 Feb 2012, 1:19 pm

Mortgage Industry Professionals Gather to Discuss American Homeownership Business Wire (press release) PHILADELPHIA–(BUSINESS WIRE)–On February 10, 2012, Radian Guaranty hosted a panel on Capitol Hill called, “Homeownership: Creating Access to Mortgages, the Public-Private Balance.” The purpose of the panel was to discuss the current state of the … and more »

Source: mortgages – Google News |

22 Feb 2012, 12:40 pm

AP – The government’s new consumer-watchdog agency is launching a probe into costly overdraft fees charged by big banks.

Source: Yahoo! News: Personal Finance News |

22 Feb 2012, 12:03 pm

Reuters – Applications for U.S. home mortgages tumbled last week as demand for loan refinancing sagged, an industry group said on Wednesday.

Source: Yahoo! News: Personal Finance News |

22 Feb 2012, 11:11 am

Mortgage Defaults Decline for the First Time in Five Months LoanRateUpdate (press release) Monthly default rates on first mortgages declined for the first time in five months in January, helping to contribute to an overall decline in the S&P/Experian Consumer Credit Default Indices from 2.24 percent in December to 2.16 in January. and more »

Source: mortgages – Google News |

22 Feb 2012, 6:33 am

Reuters – The Obama administration will propose slashing the top income tax rate for corporations to 28 percent from the current 35 percent, as part of a corporate tax reform plan that is set to be announced on Wednesday, the Wall Street Journal said.

Source: Yahoo! News: Personal Finance News |

22 Feb 2012, 5:32 am

Reuters – A government watchdog on Wednesday said Fannie Mae and Freddie Mac’s regulator needs to curtail the rising cost of their legal expenses since there is no end in sight to the widening taxpayer tab keeping the two firms afloat.

Source: Yahoo! News: Personal Finance News |

22 Feb 2012, 5:08 am

AP – The U.S. government regulator for Fannie Mae and Freddie Mac must do a better job limiting legal expenses paid by the two mortgage giants to their former executives facing lawsuits, a new watchdog report says.

Source: Yahoo! News: Personal Finance News |

21 Feb 2012, 11:14 pm

Mortgage relief faces a tax-law nightmare The Seattle Times The Mortgage Forgiveness Debt Relief Act — under which a reduction on mortgage principal as a result of a loan modification, short sale or foreclosure is not subject to federal income tax — will expire in 10 months, and there are early indications … and more »

Source: mortgages – Google News |

21 Feb 2012, 10:15 pm

AP – Sophisticated encryption software has become so readily available and so effective, it’s surpassed the federal government’s ability to seize computers and gather evidence in criminal cases.

Source: Yahoo! News: Personal Finance News |

21 Feb 2012, 7:46 pm

Reuters – The regulator of housing giants Fannie Mae and Freddie Mac on Tuesday outlined a new strategic plan for the two government-controlled firms, stepping into a void left by congressional inaction.

Source: Yahoo! News: Personal Finance News |

21 Feb 2012, 6:56 pm

The Motley Fool – In a 2009 NBC/Wall Street Journal poll, 8 in 10 Americans said they were concerned about the federal deficit and growing national debt.

Source: Yahoo! News: Personal Finance News |

21 Feb 2012, 6:17 pm

AP – The government regulator for Fannie Mae and Freddie Mac has submitted a plan to Congress that would shrink the mortgage giants’ role in the housing market.

Source: Yahoo! News: Personal Finance News |

20 Feb 2012, 1:31 pm

Reuters – The European Central Bank will lend nearly half a trillion euros to banks at rock-bottom rates next week through its three-year refinancing operation, despite signs institutions already have adequate liquidity, Reuters polls showed on Monday.

Source: Yahoo! News: Personal Finance News |

17 Feb 2012, 3:33 am

Reuters – It wasn’t Sherry Hunt’s original intent to go public on the shoddy quality control at a mortgage unit at Citigroup Inc , her employer since 2004.

Source: Yahoo! News: Personal Finance News |

17 Feb 2012, 12:18 am

ContributorNetwork – Politico reports Rick Santorum has released four years’ worth of federal income tax returns. The news outlet posted all four returns as PDF files for anyone to examine from 2007 to 2010. It was noted that Santorum released four years of income tax data, more than competitors Mitt Romney and Newt Gingrich.

Source: Yahoo! News: Personal Finance News |

16 Feb 2012, 8:37 pm

AP – Optimism has returned to the market. And the clearest evidence is the rebound of small company stocks.

Source: Yahoo! News: Personal Finance News |

16 Feb 2012, 3:47 pm

AP – The number of Americans at risk of foreclosure is declining, as more homeowners climb out of debt and find steady work.

Source: Yahoo! News: Personal Finance News |

16 Feb 2012, 3:39 pm

AP – The average rate on the 30-year fixed mortgage held steady at a record low for a third straight week, offering more incentive to those looking to buy a home or refinance.

Source: Yahoo! News: Personal Finance News |

16 Feb 2012, 3:13 pm

AP – Mortgage rates for the past 52 weeks, at a glance

Source: Yahoo! News: Personal Finance News |

16 Feb 2012, 2:27 pm

AP – Construction of single-family homes cooled off slightly in January after surging in the final month last year. But a rise in permits suggests builders are growing more confident that more buyers are ready to come off the sidelines.

Source: Yahoo! News: Personal Finance News |

15 Feb 2012, 11:21 pm

Reuters – Citigroup Inc has agreed to pay $158.3 million to settle U.S. civil claims that it defrauded the government into insuring thousands of risky home loans made by its CitiMortgage unit.

Source: Yahoo! News: Personal Finance News |

Borrowers are emotional, erratic, demanding, panicky, unsure, deliriously happy or sad and a whole host of many other emotions. In their minds, they’ve picked out the carpeting and wallpaper and have mentally already moved in! Geesh! Try dealing with a person who thinks they’re the landlord and they don’t even have the keys yet!!!

Keeping this in mind, here are some tips when dealing with purchase loans. These come from my years of experience and many number of loans (I’ve lost count.)…

1. Don’t show your hand too early (meaning the interest rate you can offer). Explain to the borrower that it is up to them when they decide to actually “lock-in” the interest rate. If they press you for an actual rate, tell them what today’s rate is you can offer, and that you will watch the interest rates for them. If they drop, you will call them at the first moment. What you really want to do here is knock the borrower off their “rate” short-sightedness. Say something like, “Well, as you know, the interest rates change every day. With purchase loans, time is critical. What we can do is get the process started, so that you don’t lose the house, and when the interest rates get to a point you feel comfortable with, we can lock it in for you. We will be working hand-in-hand through the entire process. Now, how do you spell your last name?”.

2. Explain the difference between a pre-qualification and a commitment letter. Borrowers think just because they have been pre-qualified somewhere, that it guarantees them the loan. This isn’t the case. As you know, the underwriter has the final say. If the property does not appraise for the correct value, the borrowers’ situation changes, or the seller pulls out, the deal is dead. These are things entirely out of your control. What I tell borrowers, is that we are going to go one step further than a simple pre-qual letter. We want to give them an advantage with their loan, and get them a full commitment letter from a lender as soon as possible. This lessons the chance of them getting their expectations set too high and not getting the loan in the end.

3. Phone the real estate agents early on and explain you are in control of the process. Call them BEFORE they call you. You want to show that YOU are in control—NOT them. Doing this, puts you at a higher level and they will respect you for it. Believe me.

4. Set expectations with the borrower upfront. Explain the entire loan process from start to end. First-time homebuyers just simply don’t know. Emphasize to them, if they have any questions, to call you first—NOT the realtor.

5. Make it known that you are the point of contact for all parties involved in the transaction. This includes the seller and buyer agent, appraiser, lawyer, title companies, etc. Usually, the realtor thinks they are in control for the whole process, but remember the sale is mostly out of their hands after the purchase and sales contract is signed. Then it is entirely up to you—the loan officer—to succeed! By being the “driver” in the process, you can minimize any confusion or crossed signals that may arise.

6. If you get a sales call from a borrower looking to purchase a home, ask if they have already been pre-qualified elsewhere. Most of the time they have been and are simply shopping around for the lowest rate. (In other words, go back to rule number one above… don’t show your hand too early). If the borrower shops behind the other loan officer, they will certainly do it to you too.

7. Explain to the borrower whether you are acting as a direct lender
or broker. Each has pluses and minuses. Explain what you are and the role you play. Sell yourself. For example, you can say “As a lender, we have direct control of the process, we make the final decision and can tell you upfront whether you qualify.” or “As a broker, if you get denied by a lender, we can easily shop you to another lender, saving you time and effort. This will help you ensure you get the house you want and not jeopardize the process”. Sell your advantages…don’t mention your weaknesses.

8. Factor in all payments for the borrower, including the full principal, interest, taxes and insurance and be certain that the borrower is well aware of these entire costs upfront. If they can’t afford the house, you want to know as soon as possible. Or you’ll be left with nothing!!! I always say, it’s best early on to kill ‘em or keep ‘em. Don’t let timewasters run away with your income.

9. Watch critical dates, especially rate lock expirations and underwriting turn-times. Be well aware of the “commitment letter” date as stated in the purchase and sales contract on the property. Oftentimes, borrowers wait until far too late in the process before deciding to move ahead and these contract deadlines can be impossible to meet. Get an extension on this ASAP with the seller’s agent on the property.

10. Finesse your way through the process. Don’t lie. Only tell each individual party involved in the process what they need to know. Don’t share too much information…it creates confusion. And don’t tell someone something unless you are absolutely certain. It always comes back to bite you in the rear!

11. Stop the shopping. Make the borrower understand that once they decide to move ahead with the process, they risk losing the home, if they decide to leave you. Another broker/lender will be unable to meet the tight deadlines in the contract. They have to make a decision and stick to it.

12. Stop the shopping—part two. If the borrower is qualifying for a home based on a special program that your company is offering, tell them the criteria upfront. Not every loan officer has what you can offer. In other words, you have a specialized program and are making an “exception” just for them. Not all rates are created equal. The other “competitors” for the loan may not have all the correct information upfront, to be able to properly quote them an accurate interest rate. Let me emphasize that again—an ACCURATE INTEREST RATE. Educate the borrower on this, show them you’ve done your homework, and are quoting accurately. Ask qualifying questions that others don’t.

By keeping these tips in mind, it should make your next purchase loan go a lot smoother.

If you are looking for a firm step-by-step process to help you get your purchase loans to the table faster, please…please…please…take a minute to read about my Sink or Swim Loan Closing System at http://www.loanclosingsystem.com

And, as always, best of luck in your business. This is STILL a wonderful industry to be in! Stop being discouraged and go get ‘em!!! I know it’s tougher out there, but you can do it!

So how does a VA or FHA home buyer get the bank to review their offer when they do not list VA or FHA as an option? One option is to make the offer along with a request to fix the issues that would stop the home from being FHA or VA eligible. This requires a working knowledge of the lending requirements. A good source for this information would be the VA and FHA websites, your loan officer and your real estate agent.

Here’s one way this situation would play out: You are a VA buyer, and the house you would like to make an offer on has a major roof leak and 3 windows are broken. The banks inspection of the home revealed these issues as well and therefore VA financing was not provided as an option. After reviewing the guidelines online, consulting with your lender and real estate agent you decide to make your offer subject to; the bank repairing the roof, any damage resulting from the leak, and the 3 broken windows to be replaced with new vinyl windows. Presenting the offer to the bank in this manner addresses upfront the known issues and the solutions to the problem. The longer the home has been on the market, and the less repairs needed, the more likely this type of offer will be accepted. Banks, their listing agents, and asset managers have many resources for making most types of repairs. They would just prefer not to.

We are currently experiencing a market that has excessive inventory, stringent financing guidelines, tough competition on the best deals and a lot of uncertainty. It pays to be patient and creative. If you want to take advantage of the best bank owned deals, take time to understand your lender’s property requirements and understand that the longer the home sits, the more leverage you’ll have to get the bank to accept your offer.