Monthly Archives: December 2011
David Vitter the US Senate member from Louisiana,wants to make FHA loans more expensive for your Mortgage Albuquerque clients and he wants to derail the entire housing recovery, if in fact we’re really experiencing a housing recovery.
He wants to allow the HUD Secretary and FHA Commissioner to use all available methods under law to recapitalize the MMI Fund to its statutorily required 2% capital reserve ratio within 2 years, think about this. Okay, how he is going to accomplish that? Well, there is only one way and that’s to raise mortgage insurance premium to the highest levels allowed under the current congressional mandate. It’s pretty simple stuff, guys doing business in Mortgage Albuquerque.
FHA makes money and then, they give the money they make to HUD. HUD then reallocates the money to stuff they want to do and spend on which may be on individuals, groups which they cannot really spot themselves. Then HUD refunds FHA, but because they pool more money from FHA than they give back, that is strange and FHA’s bottom line is strangely upside down which we call creative book making.
Creative book making that Vitter wants your Mortgage Albuquerque clients to finance through higher mortgage insurance premiums. Look, this will keep focus away from the escrow tables and end up killing potential deals which leads to a situation “higher the costs, fewer the purchase attempts”. He also wants to impose penalties if the congressional mandated FHA fund fails to maintain a ratio of 2%.
So, if they go broke, where will they find their money? How will it help charging them money or penalty for not having money, if they don’t have money at all and how does it help FHA? The Vitter bill also prohibits secret bailout of the FHA by the Treasury Department.
Let’s think about this. If you’re going to bail out everyone out there including foreign governments, GM, AIG and Merrill Lynch, why not bail out the one agency that can actually help people help themselves. Why not make it a priority to finance in a responsible fashion the one agency that will make more people homeowners in Mortgage Albuquerque, that’s if you think homeownership is vital to our recovery.
Listen man, FHA ,whatever they might be looking to get in the form of bailout money, which may be around $50 billions, compared to the $7.7 Trillion the Federal Reserve gave to several groups, businesses etc is way below the money offered by the Federal Reserve that is spent blindly and is certainly not in the same ball park or same league, and our point is why not FHA get the bail out money without any further questions. At least they can do some good to American people specially in Mortgage Albuquerque.
Listen guys, FHA on its own feet is okay, but with HUD bleeding its profits, the picture is not rosy and its position is not good. Start off by not bleeding FHA and then complaining that it’s dying. Let’s just leave the premiums alone. Let’s not bleed our Mortgage Albuquerque clients of more money, haven’t they given enough?
Okay, when it comes to bailout, if the senate guys follow those 2 affirmations and suggestions, you probably won’t need one buck. If you do guys, let the previous bailouts whatever that did; please do not show the stick which is housing recovery.
Finally my suggestions to the sales people toiling in the Mortgage Albuquerque hard market. This Vitter bill is ridiculous and FHA loans can be marketed as usual by focusing on their strengths like low down payment, low mortgage insurance premium etc and get some deals in the pipeline through marketing efforts.
Instead of bothering about the Vitter bill and getting into a pigeon hole by being negative, you can move forward and focus on the strengths and silver linings of FHA Loans and close some deals without bothering too much. FHA loan products are too good to ignore and all the marketing people are advised to focus on them relentlessly in Mortgage Albuquerque.
Mortgages are essentially getting in coming with a title “Qualified” in order to be compliant. Now what that means is that all the lenders in Mortgage Albuquerque have to qualify the borrower and make sure that they can actually make the payment and make sure that the loan doesn’t have a pre-payment penalty or not-interest only and that’s not amortized for any length longer than 30 years.
Let us seriously for a second, talk about Full Doc 30 year Fixed rate Loan available in New Mexico in Mortgage Albuquerque. Basically we’re going to talk about the only loan that is being offered right now.
The whole world must recognize the fact that what’s happening right now, right before us is each and every loan currently seems to meet the qualifying mortgage standards, but the sad fact is stated income loans are making a roaring comeback, just like John Travolta made a comeback from the dark years of the Saturday Night Fever to make Pulp Fiction.
It could happen that stated income deals could also comeback. Well, they need to be qualified to meet the legal definition of SAFE Harbor Act. So, as far as I can tell all loans regardless of the title, need to be full Document, of course. The QM is intended to ensure bad loans won’t return because of this reason. If a lender in Mortgage Albuquerque chooses to go off the reservation and make loans that do not meet the qualifying mortgage standard, they do not have the SAFE harbor, exposing that lender to possible litigation. Guys, to tell you right now, no lender at all wants to have a loss.
Here’s one problem as far as we can tell. Well, there is a little thing that’s being bantered about which is “Rebuttal Presumption of Compliance”. What this will do, according to some sources is to throw all foreclosures into court to determine if the standard of qualifying mortgage has been met. Now, here’s the kicker guys, here’s what you need to understand and if this takes place, the insistence of not bringing back stated income loans can be compromised. After all if all the foreclosures are going to be challenged because of the Rebuttal Presumption of Compliance plans , then there is no SAFE harbor for all the lenders and at that point why not bring back stated income deals, after all every deal is going to end up in court.
Further potential for additional litigation against lenders in Mortgage Albuquerque through this is possible. Change to the qualifying mortgage is going to make lenders hesitant to lend and when they do, it’s going to cost money, more expensive once again to your clients. The CFPB which is taking control from the Federal Reserve is in charge of this very very important change. Guys, do you see the potential for this to do the damage, wrong? Well, I do. The qualified mortgage, the whole SAFE harbor and the whole of CFPB is a rudderless ship. It’s a ship without a captain. Nobody is in charge and it doesn’t look to be changing any time soon. Yet, this is what we get and this is what your clients get.
Okay, so here’s the deal, guys, right now the CFPB is trying to create a situation to where we are going to have better loans for clients. The problem is what they are proposing here is what’s exactly going on right now. The fall out from what they do with the qualifying mortgage is to create a situation where we can have more litigation against our banks. I am telling you right now, litigation against our banks is what’s hurting the industry. At the end of the day only one who pays the price for this is your clients. It’s going to be in the form of higher payments, higher mortgages, higher rates and longer terms. I am telling you right now that’s going to be problematic and what makes it more troublesome is the fact that there is nobody running the CFPB, yet they are the ones in-charge of this. It’s enough for you to throw your arms to rise and say I wish I have my white hat and tie.
So in the end, what’re we going to tell to the sales people? Just go and work man. Just roll up your sleeves and sell some darned houses, man. In the meanwhile, we will keep you posted on what the heck is going on over there in Mortgage Albuquerque.
Hi, I’m Wes Moore, Welcome to moore4yourmoney, Moore TV. First, this week I want to say a big thank you to the elite 25 realtors in Mortgage Albuquerque for choosing myself and Superior Mortgage Services once again as their preferred lender again this year. It’s an honor to be associated with the top 25 luxury home realtors in Albuquerque area.
Second and at the other end of the spectrum from luxury, I want to say congratulations to Jonathan on the closing of his first home in Mortgage Albuquerque last week.
Jonathan utilized the New Mexico Mortgage finance authority’s mortgage saver plus program that allows low to moderate income first time buyers to get into a home with only $500 down, get an awesome interest rate on the 30 year fixed rate loan and his payment is comparable to his rent. And I want to say thanks very much Daniel for entrusting Jonathan, your client with me.
Also some of you may know I am a certified instructor for the mortgage education foundation that means I teach other loan officers. 2011 is the first year, we as loan officers have had to take continuing education. Last year we had to take our initial education, get licensed, this year we are continuing it. Well, our first 8 hour’s course is on Friday and if you know a loan officer, who hasn’t taken the scores yet, have them call or email me and I’ll make sure they will get signed up.
One of the things that I would like to do every week is tell you something that you don’t know that’s a value to you. So I am introducing a segment called “Did you know”. So, on that note, did you know that on VA financing in Mortgage Albuquerque, a seller may pay up to 4% of the sales price to pay off a veteran’s debt.
That’s right, let’s say that you’re selling a $200,000 home and have a VA buyer that wants to buy, but he won’t qualify because his ratios are out of whack because he’s got a $400 car payment that he owes 8000 bucks or even 7000 bucks. Well this seller can pay off that car payment at closing to bring the buyer’s debt ratio down so that the veteran can buy a house in Mortgage Albuquerque. That type of loan should make you $25000 over your lifetime and that’s my goal to make you more money.
Now let’s talk about the loan of the week in Mortgage Albuquerque. Yesterday I had an appointment with a man, the key man who had just finished watching 342 hours of tapes on how to invest in real estate. He was very excited and was sure he knew everything about real estate properties as ducks in a row. It was actually funny in a way he used every catch phrase as you see on these late night TV shows. The late night TV show had told him that he could get credit cards and pull the cash on those credit cards for the down payment. Well, that’s true except you can do it if you’re financing through a lender. So Fannie and Freddie will not allow unsecured borrowed funds to be used for down payment. The good news is he came to a seasoned loan officer in mortgage Albuquerque and I suggested that he go get a home equity loan against his friend’s clear primary residence, use it for the down payment. So, it’s all going to work out. The moral of the story is “don’t believe everything you see on TV”, unless of course it’s Moore TV. So until next time, I’m Wes Moore.
Keep visiting this blog for further news on mortgage Albuquerque which should save money for you while looking for a home in New Mexico.
Money Saving Tips in Mortgage Albuquerque:
I am Wes Moore and this is American Idol, just kidding, this is moore4yourmoney, Moore TV. Let’s talk about your plan for a minute in Mortgage Albuquerque.
The potential of a nuclear meltdown in Japan has increased overnight, sending all investors running to cash. The Tokyo Stock Market has posted its biggest 2 day drop since 1987, while commodities slid, the treasuries jumped. So that means the good news for Americans seeking mortgages is Japanese investors have been seeking stability in all mortgage backed securities. This has dropped rates since last Thursday, so they went down Friday, they went down Monday and they were going down this morning although they have headed back up a little bit now at lunch time. The other good news for American consumers is crude oil continues to fall on the idea that Japan’s need for its going to be pretty much zilch as its economy grinds to a halt.
Now a little segment on did you know. Did you know I can save your high end consumers approximately $147 per month in Mortgage Albuquerque on their monthly mortgage payment, simply by financing their mortgage insurance, still paying a monthly?
If your borrower is at 10% down, it is so much better for them to finance their mortgage insurance like on a FHA loan, but this is conventional loan, and then pay it monthly. Why, check out this example on home buying in Mortgage Albuquerque.
Assume a $450,000 sales price and 10% or $45,000 down, and a loan of $405,000. Normal monthly mortgage insurance on a 90% Loan to value is 52 basis points or .52% divided by 12; that works out to 175 bucks a month. But get this, if they finance it, it cost him 1.3% of that $405,000, that’s only $5200 in change. If you look at $5265 @5% for 30 years, it’s only going to raise their payment 28 bucks as suppose if they pay monthly, it is 175 bucks that’s $147 per month savings simply by having their Loan Officer in Mortgage Albuquerque know this information. If they don’t, it’s costing him. If they’re going to be in this home for at least 3 years , this makes huge sense. So make sure you tell your higher end clients, that you know a Loan Officer who can help save them a $147 a month on their loan and they will love you for it.
Now let’s talk about the Mortgage Albuquerque loan of the week. Some names have been changed here to protect the innocent. Maria was referred to me a few months age by her realtor. Her realtor had already helped Murray her boyfriend with a home and I had helped him with the mortgage. Everybody was vey happy , it was a win-win situation, however Maria and boyfriend broke up, so she was bound and determined not to use ex-boyfriends loan officer, ex-boyfriends ex title company, ex boy friends pest control guy whatever. So she went and picked her own mortgage company. Long story short, that mortgage company missed the closing date, in fact they didn’t even tell Maria that they didn’t even offer the NM MFA Loan program and tell a week before the closing. So they had a loan in their pipeline for a month but didn’t have the product.
Anyway, at that point the realtor stepped in and said call Wes immediately, we got the appraisal transferred into our name, we ordered the binder, we registered with MFA and the loan will close next week. Luckily, Wes also knew the listing agent. Thanks to him and was able to get the $50 per day fee that was going to be charged her for missing the closing waived. Moral of the story is listen to your realtor, they know what’s best for you and realtors remember for you and your client to get more for your money, all you have to do is call Wes at 249-4506 for Mortgage Albuquerque. Until next time, I’m Wes Moore.
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