Ok so I've recieved some phone calls about the fed and rates. My clients that are at 6 and above are ready to refinance and seem very in to what they see on TV. This is what I've explained to them lately.
The Fed does not matter when it comes to mortgage rates. What matters is who is buying the coupons and right now it's you and I. Simply put the whole mortgage market has come down to 3 players. Fannie, Freddie and FHA. The first two are currently owned by us.
We basically are there without the help of the fed. I can quote 4.875 today at a cost to the borrower. Most of my clients are familiar with pricing because I go to great lengths to make sure they understand how much I make for assisting them with the process of getting a Mortgage Loan. I always find it rewarding for them to understand why they should pay the point and get that rate down. Of course when appropriate I will guide them the other way.
One of the things that occured when the fed funds rate was low, was the borrowing of money by certain companies that lent that money out at much higher rates based on high risk. We called that sub-prime lending. I don't see it coming back soon. Right now credit is tight and Fannie and Freddie are not helping by charging a premium for lower fico scores. Hopefully they will loosen up a bit and we can go back to helping those that are not postal workers or public school teachers to get a loan.
Tuesday, December 16, 2008
Saturday, November 29, 2008
The Ultimate Solution
Happy Thanksgiving from Sylmar, Van Nuys, The San Fernando Valley and the State of California. We are still lending, home loans, loan modifications, mortgages in Sylmar, Van Nuys, The San Fernando Valley and the State of California.
Well this has been an interesting year to say the least. I have been watching the Government reaction to the credit squeeze and I just can't understand why we just keep giving big bucks to the corporate structure. It seems like the correct action to take but I wonder if they might go a different way.
I mention this because I've spent most of the last few months realigning myself to work hard for REO business. I understand the business and I am exclusively working with Realtors that sell and list REOs. The grapevine says that we are about to have a big slowdown. Basically the banks are not foreclosing due to the fact that FNMA and FMAC have decided on a moratorium until January 9, 2009. It takes about 3 weeks or so from a bank getting a property to the property getting on to the market. With no new activity we can expect a cleaning of the pipeline and then we hold.
So, what might help? I hate the idea but we really need the economy to get out from under the housing collapse. I believe that all can be healed if housing prices will stabilize and increase. Just this year I have worked in an area where the average month depreciation is around 3%. That's monthly not annually. I think the Gov. should stop bailing out the guys that bought the secondary market paper. I think if the tax payers are paying for it that we should go direct to the source. Bail out the individual homeowner.
Guess what, we made mistakes. Some people got loans they should not have. Some of it was created by the brokers, some by the lenders, much by the greedy homeowner who bit off more that they can chew. Whatever the reason, it no longer matters. The theory is simple. Line up all borrowers and modify all the loans. Many people suggest that there would be no incentive for those that are paying to pay. Well there is not now. I know several people that have made a conscious choice to not pay so that they can get a modification. What if we modify all the notes to current value and set a base rate? It hurts but only once and the dollar loss is spread across all instead of the tax payers giving it to the bank and trying to regulate what they do with it.
In the end I believe that the market would be stabalized. Some will still not make it. That's ok. We can use the traditional foreclosure method and keep moving. Thousands will get relief and we can say that the bottom is here. So far we have spent over a Trillion in bail out and as far as I know none have really gotten relief. The new rules are hard to qualify for even if the bank is willing to modify. Lets just take it right to the people. It's radical and I firmly believe it's coming.
Well this has been an interesting year to say the least. I have been watching the Government reaction to the credit squeeze and I just can't understand why we just keep giving big bucks to the corporate structure. It seems like the correct action to take but I wonder if they might go a different way.
I mention this because I've spent most of the last few months realigning myself to work hard for REO business. I understand the business and I am exclusively working with Realtors that sell and list REOs. The grapevine says that we are about to have a big slowdown. Basically the banks are not foreclosing due to the fact that FNMA and FMAC have decided on a moratorium until January 9, 2009. It takes about 3 weeks or so from a bank getting a property to the property getting on to the market. With no new activity we can expect a cleaning of the pipeline and then we hold.
So, what might help? I hate the idea but we really need the economy to get out from under the housing collapse. I believe that all can be healed if housing prices will stabilize and increase. Just this year I have worked in an area where the average month depreciation is around 3%. That's monthly not annually. I think the Gov. should stop bailing out the guys that bought the secondary market paper. I think if the tax payers are paying for it that we should go direct to the source. Bail out the individual homeowner.
Guess what, we made mistakes. Some people got loans they should not have. Some of it was created by the brokers, some by the lenders, much by the greedy homeowner who bit off more that they can chew. Whatever the reason, it no longer matters. The theory is simple. Line up all borrowers and modify all the loans. Many people suggest that there would be no incentive for those that are paying to pay. Well there is not now. I know several people that have made a conscious choice to not pay so that they can get a modification. What if we modify all the notes to current value and set a base rate? It hurts but only once and the dollar loss is spread across all instead of the tax payers giving it to the bank and trying to regulate what they do with it.
In the end I believe that the market would be stabalized. Some will still not make it. That's ok. We can use the traditional foreclosure method and keep moving. Thousands will get relief and we can say that the bottom is here. So far we have spent over a Trillion in bail out and as far as I know none have really gotten relief. The new rules are hard to qualify for even if the bank is willing to modify. Lets just take it right to the people. It's radical and I firmly believe it's coming.
Wednesday, June 11, 2008
Get Green
Even while doing loans in Sylmar and Van Nuys and working for First Time homebuyers in California, we try to be green.
There is an ongoing need to conserve energy and reduce waste. Many people are starting to make greener choices, do whats best for the environment and lessen their impact on the earth. The common phrase is Go Green and there are both very simple and inexpensive steps we can all take that will add up in a big way.
While doing loans from Sylmar CA to Van Nuys and all the San Fernando Valley in the City of Los Angeles, Bring your own reusable shopping bags to the grocery store. Plastic and paper bags both use a lot of energy to produce and end up as litter. Stash some canvas bags in your car.
Ditch the Plastic Bottles and replace with a reusable water bottle and place your current bottles in a recycle bin. Billions of plastic water bottles end up in our landfills every year. Most of us already have filtered water available on our fridge, a water-filter pitcher such as Brita or an in-sink filter. If we all use what weve already paid for, that would be a big win for the environment.
Change your light bulbs to Compact Fluorescent Light bulbs or CFLs. They last up to 10 times longer than regular light bulbs and although they may be more expensive they will help reduce your energy bills. Remember to turn off lights in rooms that are not in use.
Buy a package of recycled napkins. If every household purchased one package of 100 percent recycled napkins, we would save 1 million trees. Even more trees would be saved if you bought recycled paper towels and tissues.
Buy food that is grown locally. It has been determined most of our food travels an average of 1,500 miles before it ends up on our tables. Local food is fresher and tastes better than food shipped long distances. Buying local food keeps your dollars circulating in your community. A good place to start is looking for a Farmers Market in your area.
Give your car a tune up. Speeding, fast accelerations, and hard braking waste gas. Maintaining your car saves it. Tune up your car according to your owners-manual schedule and raise your cars fuel efficiency anywhere from 4 to 40 percent. Maintaining the correct tire pressure not only increases gasoline mileage, but also helps the car handle and ride better. Correct tire pressure also increases the life of the tire. All tires have the correct tire pressure imprinted on the tire.
While doing loans from Sylmar CA to Van Nuys and all the San Fernando Valley in the City of Los Angeles, Think first, and learn a new way of living that helps sustain the worlds environment. By changing our daily habits we can all Go Green with ease.
There is an ongoing need to conserve energy and reduce waste. Many people are starting to make greener choices, do whats best for the environment and lessen their impact on the earth. The common phrase is Go Green and there are both very simple and inexpensive steps we can all take that will add up in a big way.
While doing loans from Sylmar CA to Van Nuys and all the San Fernando Valley in the City of Los Angeles, Bring your own reusable shopping bags to the grocery store. Plastic and paper bags both use a lot of energy to produce and end up as litter. Stash some canvas bags in your car.
Ditch the Plastic Bottles and replace with a reusable water bottle and place your current bottles in a recycle bin. Billions of plastic water bottles end up in our landfills every year. Most of us already have filtered water available on our fridge, a water-filter pitcher such as Brita or an in-sink filter. If we all use what weve already paid for, that would be a big win for the environment.
Change your light bulbs to Compact Fluorescent Light bulbs or CFLs. They last up to 10 times longer than regular light bulbs and although they may be more expensive they will help reduce your energy bills. Remember to turn off lights in rooms that are not in use.
Buy a package of recycled napkins. If every household purchased one package of 100 percent recycled napkins, we would save 1 million trees. Even more trees would be saved if you bought recycled paper towels and tissues.
Buy food that is grown locally. It has been determined most of our food travels an average of 1,500 miles before it ends up on our tables. Local food is fresher and tastes better than food shipped long distances. Buying local food keeps your dollars circulating in your community. A good place to start is looking for a Farmers Market in your area.
Give your car a tune up. Speeding, fast accelerations, and hard braking waste gas. Maintaining your car saves it. Tune up your car according to your owners-manual schedule and raise your cars fuel efficiency anywhere from 4 to 40 percent. Maintaining the correct tire pressure not only increases gasoline mileage, but also helps the car handle and ride better. Correct tire pressure also increases the life of the tire. All tires have the correct tire pressure imprinted on the tire.
While doing loans from Sylmar CA to Van Nuys and all the San Fernando Valley in the City of Los Angeles, Think first, and learn a new way of living that helps sustain the worlds environment. By changing our daily habits we can all Go Green with ease.
Friday, May 30, 2008
Fraud And Identity Theft Are Big Business
While doing loans in Sylmar and Van Nuys and California we attempt to educate where we can. Here are my thoughts regarding ongoing identity theft in Sylmar and Van Nuys.
Fraud in Sylmar, Van Nuys and California is increasing at an alarming rate and new ways to separate you from your money are being invented every day. Identity theft is big business. Millions of Americans have been the victim of some form of identity theft. You are the first line of defense in keeping your personal information secure. There are steps you can take to minimize the chances that your personal information will fall into the wrong hands:
Buy a shredder. They are inexpensive and shred items with your personal information. That includes charge receipts, bank statements, expired credit cards, credit offers, etc. Identify thieves have been known to comb through trash looking for just such information. We shred everything while doing loans in Sylmar, Van Nuys and California.
Do not carry your Social Security card, birth certificate or passport with you.
Don't give your credit card or bank account number over the phone, through the mail, or over the Internet unless you confirm you are dealing with an actual representative of a legitimate business.
Get the receipts from your credit card transactions and check your credit card statements for unfamiliar transactions.
Shield the keypad when entering your PIN.
With the expansion of the Internet, your personal information is more accessible than ever and the number of "phishing" scams sent out to consumers is continuing to increase. Phishing lures unsuspecting Internet users to a fraudulent website by using authentic-looking emails in an attempt to steal passwords, financial and/or personal information. Check to see that the business is legitimate and you can conduct transactions on a secure website. You can identify a secure website by the address. It should begin with the https; the s means the site is secure. Be extra careful about what you reveal about yourself when you are online. You never know who is watching. Identity thieves could be cruising these sites for clues to piece together just what they need to steal your identity. If identity theft should happen to you, do the following immediately:
Cancel all credit/debit/ATM cards.
File a police report in the jurisdiction in which your identification was stolen.
Place a fraud alert by calling the three credit reporting bureaus so that you will be contacted before any new credit is authorized. The three bureaus are; Equifax, (800) 797-7033 , Experian, (800) 583-4080 and TransUnion, (800) 916-8800 .
For further information regarding any type of fraud you can visit the Fraud Center website at www.fraud.org.
Keep your personal information private. Taking steps will help protect you and keep fraud and identity theft an unlikely possibility.
Fraud in Sylmar, Van Nuys and California is increasing at an alarming rate and new ways to separate you from your money are being invented every day. Identity theft is big business. Millions of Americans have been the victim of some form of identity theft. You are the first line of defense in keeping your personal information secure. There are steps you can take to minimize the chances that your personal information will fall into the wrong hands:
Buy a shredder. They are inexpensive and shred items with your personal information. That includes charge receipts, bank statements, expired credit cards, credit offers, etc. Identify thieves have been known to comb through trash looking for just such information. We shred everything while doing loans in Sylmar, Van Nuys and California.
Do not carry your Social Security card, birth certificate or passport with you.
Don't give your credit card or bank account number over the phone, through the mail, or over the Internet unless you confirm you are dealing with an actual representative of a legitimate business.
Get the receipts from your credit card transactions and check your credit card statements for unfamiliar transactions.
Shield the keypad when entering your PIN.
With the expansion of the Internet, your personal information is more accessible than ever and the number of "phishing" scams sent out to consumers is continuing to increase. Phishing lures unsuspecting Internet users to a fraudulent website by using authentic-looking emails in an attempt to steal passwords, financial and/or personal information. Check to see that the business is legitimate and you can conduct transactions on a secure website. You can identify a secure website by the address. It should begin with the https; the s means the site is secure. Be extra careful about what you reveal about yourself when you are online. You never know who is watching. Identity thieves could be cruising these sites for clues to piece together just what they need to steal your identity. If identity theft should happen to you, do the following immediately:
Cancel all credit/debit/ATM cards.
File a police report in the jurisdiction in which your identification was stolen.
Place a fraud alert by calling the three credit reporting bureaus so that you will be contacted before any new credit is authorized. The three bureaus are; Equifax, (800) 797-7033 , Experian, (800) 583-4080 and TransUnion, (800) 916-8800 .
For further information regarding any type of fraud you can visit the Fraud Center website at www.fraud.org.
Keep your personal information private. Taking steps will help protect you and keep fraud and identity theft an unlikely possibility.
Wednesday, May 14, 2008
Will Republicans and Democrats ever be on the same page?
Last week the House passed legislation that aims to refinance troubled mortgages and increase demand among first-time homebuyers. The President has threatened a veto, and the position of the Senate is unclear. http://www.house.gov/apps/list/press/financialsvcs_dem/press050808.shtml But, regardless, at some point federal intervention still appears likely. The policy differences aren't as large as rhetoric implies, and enactment of some type of legislation could slightly help the decline in home prices by reducing the number of foreclosures and increasing demand among first-time homebuyers - at a cost to taxpayers.
There is no agreement on the bill yet as several Republicans view the plans as a bailout for lenders, speculators and irresponsible homeowners. The program involves giving struggling homeowners a new mortgage backed by the FHA. The Democrats believe that it would cost much less compared to the potential government exposure with the Fed's guarantee in the Bear Stearns case, and as mentioned above the president may veto it. On top of Congressional differences, lies the threat of a White House veto of the bill, asking the question, "Why should the taxpayer, through the program, provide a guarantee of principal if lenders agree to reduce the principal of a borrower's current mortgage?" This is a volunteer program by which a mortgage company would be required to write-down the value of a delinquent loan by 15% of the home's current appraised value for borrowers who are 60 days late on their mortgage payments. The bill specifically excludes investors and those that lied about their income on the loan application. The bill also proposes an overhaul of Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks as well as bringing the FHA into the 21st century.
Stay tuned as soon as I know more...you"ll know more!
There is no agreement on the bill yet as several Republicans view the plans as a bailout for lenders, speculators and irresponsible homeowners. The program involves giving struggling homeowners a new mortgage backed by the FHA. The Democrats believe that it would cost much less compared to the potential government exposure with the Fed's guarantee in the Bear Stearns case, and as mentioned above the president may veto it. On top of Congressional differences, lies the threat of a White House veto of the bill, asking the question, "Why should the taxpayer, through the program, provide a guarantee of principal if lenders agree to reduce the principal of a borrower's current mortgage?" This is a volunteer program by which a mortgage company would be required to write-down the value of a delinquent loan by 15% of the home's current appraised value for borrowers who are 60 days late on their mortgage payments. The bill specifically excludes investors and those that lied about their income on the loan application. The bill also proposes an overhaul of Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks as well as bringing the FHA into the 21st century.
Stay tuned as soon as I know more...you"ll know more!
Tuesday, February 12, 2008
Stimulus Package
Tomorrow President Bush is likely to sign into law the recently passed economic stimulus bill. It raises the limit on the size of mortgage that Fannie Mae and Freddie Mac may purchase and that the Federal Housing Administration (FHA) may insure. In both cases, the increases are temporary and apply only to loans originated by the end of 2008. If signed, Fannie and Freddie may purchase loans up to 125% of the median home price in an area, up to a national limit of $729,750. YAHOO!!!
FHA limits, and I assume VA, would see the same increase, and the floor on FHA limits would be raised so that larger FHA-insured loans would become available in low-cost areas. Goldman Sachs believes that area-specific loan limits for the GSEs and FHA should be issued by mid-March. The exact impact on pricing and rates is unknown, nor are the changes in underwriting guidelines and the impact of lost equity: in cities where the increased limits are likely to apply, the Case-Shiller index now stands below its late 2005 levels.
FHA limits, and I assume VA, would see the same increase, and the floor on FHA limits would be raised so that larger FHA-insured loans would become available in low-cost areas. Goldman Sachs believes that area-specific loan limits for the GSEs and FHA should be issued by mid-March. The exact impact on pricing and rates is unknown, nor are the changes in underwriting guidelines and the impact of lost equity: in cities where the increased limits are likely to apply, the Case-Shiller index now stands below its late 2005 levels.
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