mortgage thought

Credit and Security

noreply@blogger.com (John Severino) — Thu, 03 Dec 2009 22:46:00 +0000

One aspect to doing loans in Hemet and home loans in California is to understand how credit can affect you. Here is a recently posted article that I included in an email to my customers in Hemet and Van Nuys regarding home loans and credit.

A Quick Recap!

A credit score is a number lenders use to help them decide: If I give this person a loan or credit card, how likely is it that he or she will become 90 days or more late in a 24 month period. A credit score is a snapshot of your credit risk at a particular point in time. It may range from 350 to 850 with the average consumer score being 686. Credit scores are provided to lenders by the three major credit reporting agencies also know as repositories: Equifax, Experian and TransUnion.

Five Factors Determining A Credit Score

1. Late payments.
2. Frequency and patterns of credit use.
3. How long credit has been established.
4. The number of times credit has been requested (inquires).
5. The types of credit (i.e. revolving, installment, secured, unsecured.)

How Credit Bureaus Rank your Credit Score

1. 35% is based on payment history.
A recent 30 day late payment is worse than a 90 day late payment that occurred more than 12 months ago. This can lower your score by 60 points or more.

2. 30% is based on existing balances.
Make sure the balances do not exceed 50% of the maximum limit on each card. Over 50% of the credit card limit will have a significant negative effect on your credit score. Distribute existing credit card debt among three to five cards.

3. 15% is based on how long your credit has been established.
Do not close accounts that have a perfect payment history and have been open for at least three years. These cards have a positive effect on your credit score.

4. 10% is based on types of credit.
A combination of credit types is best. For example, a mortgage, an auto loan and three to five revolving credit cards is ideal. Home equity lines of credit are reported as a credit card debt when the amount is less then $30,000. Try to apply for lines of credit for at least $30,000.

5. 10% is based on inquiries.
Credit inquiries from various industries can lower your credit score up to 60 points. If multiple mortgage inquiries are within a 30-day window, they count as one inquiry in total. This is also true for the auto and insurance Industry inquiries. Personal credit and bank account review inquiries do not count.

Tips To Help Protect Your Credit

1) Be very careful providing personal financial information over the internet. If you are going to provide credit card numbers, social security number, etc over the internet make sure it is through a secure website. Look for https:// instead of http:// at the website address and look for the little yellow padlock on the lower right corner of the screen.

2) Use a paper shredder when discarding any personal credit information such as credit solicitations, credit card statements, pay stubs, invoices, bank statements, etc

3) Keep a list of all credit card accounts with their respective customer service phone numbers in a safe place in the event your wallet or purse is lost or stolen.

4) Never use your full name on personal checks, use your initials instead. For example: J. Doe or J.C. Doe. If your checkbook is lost or stolen, no one will know how to sign your check (except for the bank.)

5) When paying your credit card bill, do not put your full credit card number on the memo line of your personal check. Only list the last 4 digits of your account number.

6) It is not wise nor is it necessary to carry your social security card in your wallet or purse. Commit the number to memory and keep the card at home in a safe place.

7) If your wallet or purse is stolen, contact one of the three credit bureaus immediately and have them issue a fraud alert. That credit bureau will notify the other two. This will be done free of charge and you will receive a credit report showing that the fraud alert has been issued.

Here are the three credit bureaus:

Equifax 800-685-1111 www.equifax.com
Experian 888-EXPERIAN www.experian.com
Trans Union 800-916-8800 www.transunion.com

As always, if you need help or advice, just respond . More to follow!

California R.E. Law Changes

noreply@blogger.com (John Severino) — Mon, 19 Oct 2009 21:10:00 +0000

While doing home loans in Hemet, California and San Jacinto, California we have discovered that knowledge is imperative. Here are some changes that will affect Van Nuys, CA, Hemet CA, San Jacinto CA and home loans and mortgages in California.

Realtors some of the changes affect you directly.

NEW CALIFORNIA LAWS FOR 2009-10 AFFECTING REALTORS AND LENDERS

The conclusion of the first half of the 2009-10 legislative session has brought many new laws that may affect California REALTORS® and their clients. Not surprisingly in the subprime aftermath, prominently featured among the new laws is stricter regulation of the mortgage lending industry. To view the full text and legislative summary of any of the following new bills, go to www.leginfo.ca.gov.

REO Buyer Can Select Escrow and Title: Effective October 11, 2009, the Buyer's Choice Act prohibits an REO lender selling residential property up to four units from directly or indirectly requiring the buyer to purchase escrow services or title insurance from any particular company. A buyer, however, who has received written notice of the right to make an independent selection, may agree to the REO lender's escrow or title recommendations. An REO lender that violates this law can be held liable for three times the charges the buyer incurred, whereas a violation by the seller's agent may be subject to license disciplinary action. This law expires on January 1, 2015. Assembly Bill 957.

No Advance Fee Loan Modifications: Starting October 11, 2009, a new law prohibits anyone from claiming any compensation for negotiating or arranging a loan modification until after that person fully performs each and every service as promised. Aimed at combating loan modification scams, this ban applies to upfront fees collected by real estate agents and attorneys. The ban expires on January 1, 2013. Also effective immediately, anyone who negotiates or arranges a loan modification must give the borrower a specified notice that paying a third-party for loan modification services is unnecessary. These new requirements apply to mortgage loans secured by residential property up to four units, with certain exceptions for lenders and loan servicers acting on their own behalf. Violations can be penalized by, among other things, a $10,000 fine plus one-year imprisonment for individuals, or a $50,000 fine for businesses. Real estate brokers with existing Advance Fee Loan Modification Agreements reviewed by the Department of Real Estate (DRE) can no longer, as of October 11, 2009, enter into these agreements or collect advance fees. Agreements entered into and advance fees collected before October 11, 2009 are not affected. For the DRE announcement, go to http://www.dre.ca.gov/pdf_docs/SB94WebAnnouncement(brokers).pdf. Senate Bill 94.

Advance Fee Redefined: Aside from loan modifications discussed above, Senate Bill 94 also broadens the definition of an advance fee which must be specially handled by real estate agents, such as by submitting an advance fee agreement for DRE review and placing funds received into a broker's trust account. Under the new definition that took effect on October 11, 2009, agents cannot separate advance fees or services into components to avoid the advance fee requirements. More specifically, an advance fee is now defined as "a fee, regardless of the form, claimed, demanded, charged, received, or collected by a licensee from a principal before fully completing each and every service the licensee contracted to perform, or represented would be performed." Exceptions include advertisements in newspapers of general circulation, tenant prescreening fees, and tenant security deposits. Senate Bill 94.

Mortgage Loan Originators Regulated: Beginning in December 2010, a real estate licensee acting as mortgage loan originator must obtain a license endorsement, which entails education, written testing, and reporting requirements. A mortgage loan originator is anyone who, for compensation or gain, takes a mortgage loan application or offers or negotiates terms of a mortgage loan for residential property containing one-to-four units. Exemptions include real estate agents who only engage in selling, buying, or leasing activities, unless compensated by a lender or mortgage loan originator. This license endorsement requirement comports with the creation of a Nationwide Mortgage Licensing System and Registry under recent federal law. Finance lenders and residential mortgage lenders under the Department of Corporation must also register in the nationwide system. Additionally, if a real estate broker or the broker's salesperson makes, arranges, or services loans secured by residential property containing one-to-four units, the broker must notify the DRE by January 31, 2010 or within 30 days of commencing such loan activity, whichever is later. Senate Bill 36.

Mortgage Broker Activities Restricted: Commencing January 1, 2010, a mortgage broker will be deemed a fiduciary with a duty to place the borrower's economic interest above his or her own. This fiduciary duty pertains to a mortgage broker who makes loans secured by residential property of one-to-four units. Also starting January 1, 2010, the law will strictly regulate higher-priced mortgage loans as defined, including requiring upfront disclosure if a mortgage broker only arranges higher-priced mortgage loans, restricting prepayment penalties and yield spread premiums, prohibiting negative amortization, and prohibiting mortgage brokers from steering borrowers to higher-cost loans. Assembly Bill 260.

Appraisal Industry Oversight: The Office of Real Estate Appraisers (OREA) will have regulatory oversight of appraisal management companies, which gained prominence after Fannie Mae and Freddie Mac adopted the Home Valuation Code of Conduct (HVCC). Starting January 1, 2010, the OREA must implement a registration system for appraisal management companies, including fingerprinting and background checks for persons with operational authority as defined. On a separate note, this law clarifies what conduct constitutes improperly influencing the appraisal process by anyone with an interest in a real estate transaction. Such prohibited conduct includes withholding or threatening to withhold an appraisal fee, withholding or threatening to withhold future appraisal business, and promising future business, promotions, or compensation. Senate Bill 237.

Mortgage Fraud Becomes a State Crime: As of January 1, 2010, anyone who deliberately makes any misrepresentation or omission during the mortgage lending process with the intent of influencing that process will be guilty of mortgage fraud under California law. A violation of this law is a crime punishable by one-year imprisonment. Under existing federal law, loan fraud against a federally-insured lender is a crime punishable by a $1 million fine, plus one-year imprisonment (18 U.S.C. section 1014). Senate Bill 239.

Increase in Homestead Exemptions: Coming into effect on January 1, 2010, the homestead exemption protecting a homeowner's equity from judgment creditors has been increased by $25,000 across the board to $75,000 for individuals, $100,000 for married couples or family units as specified, and $175,000 for persons over 65 years, disabled, or over 55 years with limited income as specified. Assembly Bill 1046.

60-Day Notice to Terminate Tenants Extended: Existing law generally requiring a 60-day notice to terminate a month-to-month residential tenant, which was originally slated to sunset on January 1, 2010, has been extended indefinitely. A 30-day notice to terminate is sufficient if the tenant has lived in the property for less than one year, or if the landlord has sold the property and certain requirements are met as specified in our standard-form Notice of Termination of Tenancy (C.A.R. Form NTT). The 60-day notice requirement does not apply to fixed-term leases, such as a one-year lease. Other laws address tenants in properties foreclosed upon. Senate Bill 290.
Other Significant Laws: Other new laws that may interest REALTORS® include, without limitation, the following:

Landlord Utilities: Requires certain utility companies to notify residential tenants of landlord's past due accounts and upcoming shutoffs, and allows tenants to begin service in their own names and deduct payment from rent (Senate Bill 120).

Mobilehome Parks: Prohibits management from requiring a homeowner to use a specific broker or dealer when replacing a mobilehome or manufactured home on a space in a mobilehome park (Senate Bill 804).

Swimming Pools: Requires anti-entrapment devices for owners of apartment buildings, condominium complexes, and others, including the filing of compliance statements (Assembly Bill 1020).

Mechanic's Liens: Provides new procedures, including service of a Notice of Mechanic's Lien to the owner and mandatory recording of a lis pendens when enforcing a mechanic's lien (Assembly Bill 457).

Low Water-Using Plants: Renders unenforceable any HOA provision prohibiting landscaping with water-efficient plants in common interest developments (Assembly Bill 1061).

Reverse Mortgages: Provides new disclosure and other requirements under the Reverse Mortgage Elder Protection Act (Assembly Bill 329).

Disposal of Records: Shields from liability businesses that dispose of abandoned records containing personal information by shredding or erasing, and gives a legal presumption that a tenant owns records remaining on the premises after tenancy termination (Assembly Bill 1094).

Plumbing Fixtures: Provides new disclosure and other requirements for water-conserving plumbing fixtures effective on or after January 1, 2014 (Senate Bill 407).

Thanks Arnold

noreply@blogger.com (John Severino) — Wed, 14 Oct 2009 00:53:00 +0000

I have been involved in home loans in Van Nuys, The San Fernando Valley and most recently Hemet and San Jacinto for 20 years. I have seen up and down markets and I never fail to end up scratching my head when it comes to political action within the industry. Why is it that law makers find it neccessary to change the laws after the fact. California has always had stringent licensing guidelines and now we get a new set. We also now penalize our borrowers by no longer allowing them access to every loan program that might be available. Quite frankly I believe that the path to a recovery is more lending not less. Arnold came in as a Republican but has been a turncoat almost from the beggining. I have attached a link to the bills that he signed in to law today.

I wonder how much of our cash was used to debate a program that no longer exists. We are no longer allowed to offer Negative Amortization Loans in California. It's funny but I have not seen one available in quite sometime. I don't think they will be coming back very soon but one never knows. The reality is that the market place eliminated the program. Now if the market happens to find a way to bring it back we are out. Of course we can spend some more money to rescind the law then. We will also be spending money on testing mortgage originators (licensing is a good thing that we already do well) and then hiring a new enforcement crowd. Oh well, I guess that is what we get for being responsible for the current financial condition. Oh, wait a minute maybe it was not us maybe it was the multi-billion dollar companies that we bailed out even though they were responsible for selling the CDOs

http://www.latimes.com/business/la-fi-mortgage13-2009oct13,0,6365006.story

4.5 mortgage rates

noreply@blogger.com (John Severino) — Tue, 16 Dec 2008 17:54:00 +0000

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.

The Ultimate Solution

noreply@blogger.com (John Severino) — Sat, 29 Nov 2008 19:03:00 +0000

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.

Get Green

noreply@blogger.com (John Severino) — Wed, 11 Jun 2008 19:45:00 +0000

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.

Fraud And Identity Theft Are Big Business

noreply@blogger.com (John Severino) — Fri, 30 May 2008 23:22:00 +0000

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.

Will Republicans and Democrats ever be on the same page?

noreply@blogger.com (John Severino) — Wed, 14 May 2008 18:13:00 +0000

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!

Stimulus Package

noreply@blogger.com (John Severino) — Tue, 12 Feb 2008 17:22:00 +0000

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.

Increase Fannie Mae Conforming Limits

noreply@blogger.com (John Severino) — Fri, 07 Dec 2007 22:00:00 +0000

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)

noreply@blogger.com (John Severino) — Tue, 30 Oct 2007 23:04:00 +0000

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

noreply@blogger.com (John Severino) — Fri, 28 Sep 2007 00:53:00 +0000

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!

noreply@blogger.com (John Severino) — Tue, 25 Sep 2007 22:16:00 +0000

Mortgage Crash Info

noreply@blogger.com (John Severino) — Thu, 23 Aug 2007 01:41:00 +0000

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

noreply@blogger.com (John Severino) — Thu, 02 Aug 2007 19:07:00 +0000

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

noreply@blogger.com (John Severino) — Tue, 26 Jun 2007 22:15:00 +0000

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

noreply@blogger.com (John Severino) — Tue, 16 Jan 2007 01:59:00 +0000

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

Understanding a Reverse

noreply@blogger.com (John Severino) — Sat, 18 Nov 2006 00:44:00 +0000

The Basics:

A "reverse" mortgage is a loan against your home that you do not have to pay back for as long as you live there. No matter how this loan is paid out to you, you typically don't have to pay anything back until you die, sell your home, or permanently move out of your home. Homeowners 62 and older who have paid off their mortgages or have only small mortgage balances remaining are eligible to participate in HUD's reverse mortgage program. The property must be your principal residence. The program allows homeowners to borrow against the equity in their homes in a variety of different ways. (What is HUD? The Department of Housing and Urban Development is the Federal agency responsible for national policy and programs that address America's housing needs, that improve and develop the Nation's communities, and enforce fair housing laws.)

Obtaining a traditional loan (a "forward" mortgage) requires that the lender check your credit/income to see how much you can afford to pay back each month. But with a reverse mortgage, you don't have to make monthly repayments. Your income generally has nothing to do with getting the loan. You could have no income and still be able to get a reverse mortgage. With most home loans, if you fail to make your monthly repayments, you could lose your home. Reverse mortgages do not have monthly repayments, so you can't lose your home by failing to make them. You can turn the value of your home into cash without having to move or to repay the loan each month. The cash you get from a reverse mortgage can be paid to you in several ways:

All at once, in a single lump sum of cash
As a regular monthly cash payment to you
As a "credit line" account that lets you decide when and how much of your available cash is paid to you
As a combination of these payment methods
Another feature is that the money paid to you is not taxable. This is because it is not income, it is a loan! The amount of cash you can get from a reverse mortgage depends on the program you select and - within each program - on your age, home, and current mortgage rates. With a reverse mortgage, you are taking the equity out in cash, so your debt increases and your home equity decreases.

Reverse mortgages allow you to use debt to turn your equity into income. You are reversing the deal you used to initially buy your home. Then, you had income and wanted equity. Now, you have equity and want income. There are also no limits on the value of homes qualifying for a HUD reverse mortgage. However, the amount that may be borrowed is capped by the maximum FHA loan limit for each city and county. It varies from $172,632 in rural areas to $312,895 in many major metropolitan areas (and even higher in Alaska, Hawaii & the U.S. Virgin Islands) depending on local housing costs. The size of reverse mortgage loans is determined by the borrower's age, the interest rate, and the home's value. The older a borrower, the larger the percentage of the home's value that can be borrowed.

New Credit Score

noreply@blogger.com (John Severino) — Wed, 19 Apr 2006 14:58:00 +0000

There is a new credit score called the "VantageScore", developed by the three major credit bureaus, Equifax, Experian and TransUnion, to compete with Fair Isaac's scoring models (FICO), which is currently in use.

Many lenders are reluctant to begin using this new scoring method until more is learned about the product and how it will be adopted within the industry. Until this is determined, most lenders will continue to use their current credit score philosophy, based on the Fair Isaac scoring models provided through credit bureaus today.

According to Advantage Credit President Ron Litt, it could take years to move away from using FICO based scores, "While the new system has potential for improving consistency of scoring from top to bottom, most lenders, Government Sponsored Enterprises (Fannie Mae and Freddie Mac), the U.S. Department of Housing and Urban Development and the Federal Housing Association would have to retool their existing technology, retrain staff and make other significant investments to accommodate the change. Without immediate participation from these groups, adoption could be slow."

Litt also discussed the new score's level of acceptance by the industry. "Advantage Credit and other resellers can offer the new scoring model almost immediately, but the existing credit scores are so embedded that an effective change could take years," he said.

Eliminate PMI

noreply@blogger.com (John Severino) — Wed, 30 Nov 2005 07:10:00 +0000

What You Need to Know About Your Mortgage Insurance

Up to $700,000,000 per year is unnecessarily paid to Private Mortgage Insurance Companies by homeowners. If you are paying Mortgage Insurance or PMI (as it is regularly called), now is the time to check and see if you qualify to eliminate it from your monthly payment.

Below are some of the guidelines of carrying PMI.

1. You must determine the date you signed your mortgage. There are different rules for mortgages taken before July 29, 1999. These requirements are for those mortgages signed after July 29, 1999.
2. Your mortgage insurance will “automatically” drop off when your mortgage is paid down to 78% from its “original” value. That means that even if the value of your property has increased substantially, the lender is required to use the lesser of the two values.
3. Mortgage Insurance has a two-year waiting period before a lender can even consider dropping that portion of the payment. However, there are two exceptions to this rule: (In both instances-you must request that it be canceled.)
A. You have paid money towards the principal balance and have reached the 80% of the original value.
B. You have substantially improved the property (such as a room addition or a second story addition – just remodeling is not enough) and you can prove it with a new appraisal.
4. After two years, you can request that the mortgage insurance portion of your payment be dropped. However, it must meet these parameters:
A. You must provide a new appraisal. (The appraiser must be approved by your lender. The lender has the right to dispute the value.)
B. You must have a good payment history on your mortgage.
C. The Loan to Value Ratio must be 75% or less-based upon the new appraisal.
5. After five years, the same rules as #3 apply; however, the loan-to-value ratio increases to 80% of the appraised value.
6. If you have a second mortgages on your property, it will not affect your ability to get your mortgage insurance payment waived and it will NOT be considered in the loan-to-value calculations.

Each “type” of mortgage (i.e., adjustable rate, balloon, etc.) has its own set of regulations. In addition, some states have passed their own legislation, which makes canceling your mortgage insurance easier. However, I recommend that you call your lender and request their rules on what is required to eliminate it from your payment.

When you receive the letter of instructions from your lender, call me and I will help you determine what is needed and if you qualify.

APR

noreply@blogger.com (John Severino) — Sat, 30 Jul 2005 18:50:00 +0000

The annual percentage rate (APR) is an interest rate that is different from the note rate. It is commonly used to compare loan programs from different lenders. The Federal Truth in Lending law requires mortgage companies to disclose the APR when they advertise a rate. Typically the APR is found next to the rate.

Example: 30-year fixed 8 percent 1 point 8.107% APR

The APR does NOT affect your monthly payments. Your monthly payments are a function of the interest rate and the length of the loan. The APR is a very confusing number! Even mortgage bankers and brokers admit it is confusing. The APR is designed to measure the "true cost of a loan." It creates a level playing field for lenders. It prevents lenders from advertising a low rate and hiding fees.

Ideally, one should be able to compare APRs from various lenders, then select the loan with the lowest APR. Unfortunately it's not that simple. Various lenders calculate APRs differently! A loan with a lower APR may not be the best choice. A good way to compare different lenders is to ask them to provide a Good Faith Estimate of closing costs. Be sure you compare the same loan program (e.g., 30-year fixed), interest rate and rate lock period. You may ignore fees that are independent of the loan, such as homeowners insurance, title fees, escrow fees, attorney fees, etc. Pay particular attention to loan fees. The lender with the lowest loan fees will likely have the best deal.

The reason why APRs are confusing is because the rules to compute APR are not clearly defined. What fees are included in the APR?

The following fees ARE generally included in the APR:

Points - both discount points and origination points
Pre-paid interest. The interest paid from the date the loan closes to the end of the month. Most mortgage companies assume 15 days of interest in their calculations. However, companies may use any number between 1 and 30!
Loan-processing fee
Underwriting fee
Document-preparation fee
Private mortgage-insurance

The following fees are SOMETIMES included in the APR:

Loan-application fee
Credit life insurance (insurance that pays off the mortgage in the event of a borrowers death)
The following fees are normally NOT included in the APR:
Title or abstract fee
Escrow fee
Attorney fee
Notary fee
Document preparation (charged by the closing agent)
Home-inspection fees
Recording fee
Transfer taxes
Credit report
Appraisal fee

Calculating APRs on adjustable and balloon loans is even more complex because future rates are unknown. The result is even more confusion about how lenders calculate APRs.
Do not attempt to compare a 30-year loan with a 15-year loan using their respective APRs. A 15-year loan may have a lower interest rate, but could have a higher APR, since the loan fees are amortized over a shorter period of time.

Finally, many lenders do not even know what they include in their APR because they use software programs to compute their APRs. It is quite possible that the same lender with the same fees using two different software programs may arrive at two different APRs!

Conclusion : Use the APR as a starting point to compare loans. The APR is a result of a complex calculation and not clearly defined. There is no substitute to getting a good-faith estimate from each lender to compare costs. Remember to exclude those costs that are independent of the loan.

information provided from www.symphonymortgagecompany.com A site hosted by Myer's inc.

noreply@blogger.com (John Severino) — Tue, 26 Apr 2005 01:12:00 +0000

Just a happy mortgage broker

Answers to questions

noreply@blogger.com (John Severino) — Mon, 25 Apr 2005 21:40:00 +0000

I am here to answer questions regarding the lending industry. From time to time I am asked questions about loan products, appraisals, strategy and all facets of lending. I will use this space to provide some answers. Ask away, have fun.