Increase Fannie Mae Conforming Limits

Here is a copy of a form letter that you can use to help get the fannie mae limits increased here in California. We are a high cost state and now is the time to act.





The Honorable Brad Sherman
House Office Building
United States House of Representatives
Washington, DC 20515

Dear Representative Sherman:

As you know, the liquidity crisis in the mortgage industry is harming
clients and business throughout our state, as well as our economy in
general. Congress, however, has the power to make a rather simple change
that will relieve a large portion of this burden for thousands of people in
CA and throughout the United States.



The cap for government sponsored Conforming Fixed Interest Rate loans is
currently set at $417,000--which may adequately serve some parts of the US,
but is not high enough for many middle-class homes in our area.
Consequently, many people in CA are powerless to refinance adjustable rate
mortgages that are at risk of foreclosure or default, and others are unable
to purchase new homes for their families at all.



The problem is that the current limits are based on formulas that were
created based on demographics from 1980. Additionally, the limits apply
nationally except for Hawaii and Alaska, which were given High Priced State
status. To be both effective and fair, the limits for our state and others
with higher housing prices need to be brought in line with the higher loan
caps of states like Alaska and Hawaii, which both have a 50% increase to the
conforming limit. In 1992, the US Virgin Islands was successful in asking
congress to allow it to have the benefit of High Priced State status. In
2001, Guam did the same. Our state should be considered a High Priced State
as well. This would increase the current conforming limit of $417,000 to
$625,500 in CA, just like Hawaii and Alaska.



Raising these limits will help thousands of your constituents--from current
homeowners and first-time home buyers to mortgage professionals and hundreds
of related service providers who have been, or will be, devastated by this
crisis.



This is an urgent request for your help. Only you and the members of
Congress can make this desperately needed change. Please respond
immediately to relieve the burden created by these outdated limits and to
help our states residents and economy as a whole begin to recover from this
crisis.



Sincerely,







(Insert Your Name)

(Insert Title)

(Insert Company Name)

(Insert Address)

(Insert City, State & Zip)

(Insert Phone Number)

(Insert E-mail Address)

V Cards (a tech benefit)

The vCard, or virtual business card, is an electronic business
card. It provides a standard format allowing the exchange of
contact information over the internet without having to manually
enter business card information. vCards include information
such as name, address, telephone number and e-mail addresses and
URLs. They can also have graphics and multimedia including
photographs, company logos, audio clips such as for name
pronunciation. Geographic and time zone information in vCards
can also be included to let others know when to contact you.
vCards can support multiple languages.

One of the most popular uses of vCards are as attachments in
e-mail messages. Since the vCard is not a signature file that
is put into the message of the e-mail, the information can
automatically be recorded into most contact managers and e-mail
software. It can be used with many programs including Microsoft
Outlook, Outlook Express, Netscape Messenger, and On-Line Agent
(also referred to as RE/MAX Agent 2000 and AgentOffice 4.5),
just to mention a few.

vCards can not only be used to record contact information of
business contacts, friends and family, but, can also be used to
store information about prospects and clients. Because vCards
are compatible with most e-mail clients, you can save a contact
in vCard format.

There are different ways of saving vCards. Some programs
automatically import the vCard, others let you drag and drop the
vCard icon directly into the address book. Some require that you
save the vCard to disk and then import it to the program. If
your computer doesn't know what to do with the vCard, you may
need to set it to automatically save .vcf files with the address
book of choice. See your system's help pages on associating file
types with programs.

As you’ll quickly discover, the major advantage of using vCards
is the significant amount of time that is saved by eliminating
the need to type contact information into contact managers and
address books. Other advantages of vCards are that since they
are text files, they cannot transmit a computer virus in an
"infectious" form, and their file size is very small.


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Home Warranty = Peace of Mind

After months of planning and hard work, you have just sold your house. You put your cash into a new beautiful home, and complete the arduous task of moving in. Now, you can put your feet up on the couch, open your favorite beverage and enjoy the afternoon football game. Just then, the phone rings. To your surprise, the buyer of your old home is talking your ear off about how the dishwasher broke and flooded the kitchen. Can you rest easy that the burden of this mishap will not fall on your shoulders? If you negotiated a home warranty for your buyer through closing, then the answer is yes.

The last thing you want to worry about after you sell your home is what could malfunction or break. A home warranty plan will protect both the buyer and the seller in the even of an unexpected repair. Depending on negotiations made through a sales transaction, the cost of the policy can be paid by either the buyer or the seller, or they can split the cost. The cost varies, but it is usually between $350-$450. The term of the policy can also vary, but the most common is a one-year policy with a renewable option. Basic coverage in most plans includes heating, plumbing, electrical, and major appliances such as your water heater, oven, built-in microwave, dishwasher and garbage disposal. Some warranties will cover your roof, and others will require an additional fee to cover items such as septic systems, pools or spas. Be sure to read the policy carefully and ask questions if something is not clear. For a referral to a good company, you can contact me.

Most home warranty plans work the same way with regards to a repair. If an appliance stops working, the homeowner will call the home warranty company. The home warranty company will send out a provider or contractor with whom they do business. The provider will contact the homeowner to make an appointment. If the appliance can be fixed, the provider will do that. If the appliance must be replaced, the home warranty company will install and replace the appliance. The homeowner will pay a small trade service fee for the repair or replacement, and it is most often between $50-$75.

So sit back and enjoy the game. Purchasing a home warranty can be a big home run!

Mortgage Crash Info

Here is everything you ever wanted to know about why the crash has occoured. Please feel free to comment or just read and understand what is going on in today's market.

John Mauldin's "The Panic of 2007!"

http://www.frontlinethoughts.com/pdf/mwo081707.pdf

Subprime Crash Information

symphony mortgage company for the benefit of borrowers with home loans in van nuys and loans in sylmar, presents this email as recd. from a public website regarding the current industry meltdown.


« Indymac’s Q207 Earnings Presentation and Press Release
Email from Mike Perry, Chairman and CEO: Conditions in the Private Secondary Markets and Their Implications for our Industry and Indymac
Following up on our earnings release earlier this week, we wanted to provide some commentary on what we see happening right now in the secondary market and what actions we are taking in response. Given Indymac’s commitment to candor and transparency, here is a copy of an email CEO Mike Perry sent out to all Indymac employees yesterday on this subject:
Unfortunately, the private secondary markets (excluding the GSEs and Ginnie Mae) continue to remain very panicked and illiquid. By way of example, it is currently difficult, at present, to trade even the AAA bond on any private MBS transaction. In addition, to give you an idea as to how unprecedented this market has become…I received a call from U.S. Senator Dodd this morning who seeking an understanding of “what is really going on and how can I and Congress help?” I also have talked to the Chairman of Fannie Mae this morning and have traded calls with the Chairman of Freddie Mac (Fannie Mae’s Chairman telling me that they are “prepared to step up and help the industry”).
Unlike past private secondary mortgage market disruptions, which have lasted a few weeks or so…our industry and Indymac have to be prudent and assume that this present disruption, which appears broader and more serious, might take longer to correct itself. As a result, we have seen just since yesterday, many major mortgage lenders announce additional product cutbacks…some leaving subprime, Alt-a, and other products altogether or restricting some products to only their own retail channel (and possibly wholesale) and significant, additional price widening.
While we have very strong liquidity, a good amount of excess capital and there are no realistic scenarios that I can foresee that would impair Indymac’s viability (thanks to our Federal Thrift structure), as I said on the earnings conference call yesterday…we cannot continue to fund $80 to $100 billion of loans through a $33 billion balance sheet….unless we know we can sell a significant portion of these loans into the secondary market…and right now, other than the GSEs and Ginnie Mae….the private secondary market is not functioning.
As a result, Indymac like all major lenders, will continue to widen its pricing and tighten product and underwriting guidelines to ensure that a much great percentage of our production qualifies for sale to the GSEs or through a GNMA security (we sold 40% to the GSEs in the 2nd quarter, up from 30% in Q107 and 19% in 2006, and we want to get it up to at least 60% asap). We are hopeful that private AAA MBS bonds begin to trade soon…and have encouraged the GSEs to step in and provide additional liquidity to the secondary markets (their primary role) for both these private securities and other loans.
While this is an abrupt and uncomfortable change, it is a change that all of our competitors are making just as abruptly, if not more abruptly…so it should not result in one mortgage company having a competitive advantage over another. The reality is I have a lot of confidence in our industry’s mortgage originators (and in particular Indymac’s customers and retail loan officers)….to quickly move as many borrowers as possible to this more full doc, conforming loan environment. I remain hopeful that these very major changes which are clearly negative for our and industry’s loan volumes…will be largely offset for Indymac by the fact that we have fewer players left in the business….we are certainly seeing it play out this way so far this week.
More specific details on products and channels will follow in the next few days. Thanks. Mike
P.S. We will still originate product that cannot be sold to the GSEs…just less of it and we will have to assume we retain it in portfolio (until the AAA private MBS market recovers).

Holding Title

Various Ways To Hold Title To A Property

There are several different ways to hold title to real property (a home, commercial building, etc). When considering which option is best for you, think about how the ownership rights should be dispersed and what happens when it comes time to sell the property. Each has its own advantages and disadvantages. Here are the basics, but you should contact an attorney or CPA who understands the differences as they pertain to you. In other words, we can't give you legal advice.

Joint Tenancy
In many cases, married couples hold title as joint tenants. This is a way for two or more people to share ownership. When two or more people own property as joint tenants and one owner dies, the other owners automatically own the deceased owner's share. For example, if a parent and child own a house as joint tenants and the parent dies, the child automatically becomes full owner. Because of this right of survivorship, no Will is required to transfer the property. It goes directly to the surviving joint title holders without the delay and costs of court probate.

Tenants in Common
Tenants in Common allows for multiple people to hold title in unequal percentage shares. Each has the right to sell their share, or Will their share as they want. For example, three buyers could own a property with one buyer owning 60%, one owning 30% and one owning 10%. Each would be able to sell or Will their own shares as they want.

Sole Ownership
You can take the title in your own name, which is referred to as sole ownership, or title in severalty. You can use this if you are unmarried, if you have been married but are now legally divorced or if you are currently married but want to acquire the property in your name alone. In the last case, if you are married, your spouse will have to relinquish his or her rights to the property. An interesting note is that one who was previously married and now divorced is called an "unmarried" person. A "single" person has never been married.

Living Trust
A living trust can be created only in the name of individuals who are alive. A Living Trust is like having another entity own and control your assets, including your home. That entity belongs to you, or others designated as trustees, who own the entity. While the creator of the Living Trust lives, the Trust is revocable (can be changed) during his or her life. Upon the death of the creator of the Living Trust, it becomes irrevocable (cannot be changed). Court probate costs and delays are avoided because the assets in the Trust automatically pass according to the dictates of the Trust. Privacy is a major attraction in setting up a Living Trust. Still another advantage is that court challenges of living trusts are virtually impossible, whereas Will challenges by disappointed relatives frequently occur. A trust document does not become public upon the death of the trust-holder like a Will does. Some mortgage lenders will not allow a buyer to close the transaction in a Trust. There is usually no problem with transferring it in to a Trust after the close.

Community Property (or co-ownership)
There are nine states that allow married people to purchase property, either together or individually, as community property. This basically means that each person owns 50%, but each needs to write in their Will how their share is to be divided when they die. If the ownership is community property with rights of survivorship, however, then the deceased spouses interest terminates when he/she dies, and the surviving spouse owns the entire property. A special advantage is that community property assets (such as the house) Willed to a surviving spouse receive a new "stepped-up basis" to market value on the date of death. The stepped-up basis means that when the property is eventually sold, there will be less taxable gain. As of 12/31/06, there are nine states that allow community property. They are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.

A New Year

As the new year is upon us, I have found it very useful to think about this past year. As you are aware, mortgage rates have risen. At least that is what the media would like you to believe. The 30 year no prepay, 80% Loan to value, 680 credit score loan is still very low. Generally the note rate would be between 5.875 and 6.250% depending on the day. These rates are not rate quotes but a general idea of where rates have recently been. However, the short term indicies that are associated with adjustable loans have increased dramatically over the last two years.

The media is aware that many people originated a mortgage that was tied to an adjustable rate. Moreover many people have originated loans that are by nature adding to the principal balance or the original note. This is not always bad and is a valid strategy for designing your financial future. However some people never understood that there is a limit to the percentage of negative additional balance that the banks will allow. Generally between 110% and 125%. When these loans reach their maximum negative balance, they recast. That is to say the lender adjusts the payments so that the entire balance will be paid off within the original time frame of the note. When this happens, the payment increases and some people are caught off guard with the payment increase. That's why we are here. We brokers that are responsible want to work with borrowers to maximize leverage in their home but still keep to a payment and loan strategy that will work in the long term for you.

There are two ways that I could buy stock. First I could research all the various fundamentals and their meanings. I could then choose several companies to follow through charts. I could rigoursly read their prospecti and watch documentaries on their CEOs. This would likely take me all day and all night, everyday of the week. Of course I would have no way to invest in the company of my choice because I would have no money.

I could also go to a specialist and work with him or her to strategize my future. I would rely on their intimate knowledge of the stock market and investment strategies. I retain final say on the actual investments but I rely on the specialist for their knowledge of the best investments to reach my goals. I would have money to invest because I could get back to work right away.

The latter is also the reason to use a mortgage broker/advisor. We spend all of our days working through scenarios so you can get back to your life. A mortgage can be a useful tool in your portfolio. Come to us and let us help you unlock it's potential