Carlsbad, CA

HVCC -

Appraisers do not want to lose their ability to receive business from the Appraisal Management Companies(AMC) by writing too many reports that are rejected by underwriters. Hence low appraisal values. Some appraisers simply do not place enough research into their reports because they have suffered a 50% pay cut and are now focused on volume rather than quality and research.

Underwriters -

Are under pressure to underwrite "good loans" to build and maintain a good book of business for their company. Too high an incidence of risky loans in a lenders portfolio due to an underwriter could cause them to lose their job.

Wholesale lenders -

Are under continued and immense scrutiny by HUD and the banks that provide their lines of credit used to fund mortgages. Their management will refuse any loan that is "outside of the box" in fear that Fannie, Freddie and Ginne won't buy the loans they underwrite due to unacceptable "risk". A drop in bond ratings due to risky loans could cause their warehouse lines (banks that provide them the money) to freeze or close their lines of credit. As a result they would be out of business with no money to lend. Their new motto: "If in doubt, deny the loan".

Small & mid sized banks

These banks provide funds for wholesale mortgage lenders, commercial loans including construction & development loans. They also are relied upon by small and medium sized businesses who carry lines of credit to fund employee wages, inventory, business equipment and advertising. Without these customers especially wholesale lenders, they fail.

Big banks

Big banks are sitting back watching all of this and loving it. If the wholesale lending industry goes extinct so does their competition. Banks can then charge whatever they want to and the consumer has little to no recourse. Right now some of the big banks are offering financing on manufactured housing (as an example) in their retail branches but took these products away from brokers.

As a real estate agent you will be affected by losing the personal service you receive from a broker. I predict it will be similar to the inconveniences you experience with HVCC-no personal contact and no service. Customers will have less loan options and will never know what a bank is truly making because banks are not required to disclose their yield spread premium/service release premium.

Federal Reserve

Is being blamed for a lot of the economic turmoil. Their solution: implement the Mortgage Disclosure Improvement Act. Provide TARP funds by printing money. Lower the federal funds rate and buy mortgage backed securities until the "market" has an appetite for these products. This keep interest rates artificially low.

Barney Frank and friends

The ones responsible for pushing legislation to make loans to people with high credit risk pofiles during the Clinton administration is now the one handing out the punishment for their bad decision. He and his posse don't want to hold the culprits responsible because they give him money. So he punishes the mortgage broker industry because our association NAMB is under funded and can't fight back with any meaningful reprocussions. He didn't dare mess with NAR because they have much more power.

Why three fingers? I'll never rat on my three best friends: Fannie Mae, Freddie Mac and Steve Gobie (I'll even fix all 33 of his parking tickets for him)

The American public looks to our Attorney General and asks,"What are you going to do about it?"

Attorney general Cuomo

I have a great idea! HVCC! Fannie and Freddie did not want to support HVCC because they knew what it would do to our industry. Atty General Cuomo said support it or we will subpoena all of your accounting records. In fear of prosecution for fraud and who knows what else Fannie and Freddie are probably hiding they eventually concede. (I have a feeling Barney was just as relieved that HVCC passed.)

I think Cuomo did it to show America that he did something even though it won't work with hopes to get re elected.

Our politicians are trying to cover up their mess by implementing smoke and mirrors legislation that hurts the professional associations with the least power. Namely that would be NAMB because mortgage brokers are too cheap to provide them additional money to fight on our behalf. NAMB's attempt to sway politicians is equal to bailing out a sinking ship with a teaspoon.

Solutions

Atty General Cuomo received 48 cases of petitions against HVCC yesterday from Brian and Frank of Think Big Work Small an internet real estate news program owned by our company. The 48 cases contained 100,000 signatures and is the first of what I think will be many petitions against this ridiculous law.

Show your support by signing the petition if you haven't already. SIGN THE PETITION

Donate money to NAMB

Quit pretending to be broke. You have enough for a $4 cup of coffee at Starbucks but can't invest anything to the PAC that backs up your livelihood? NAMB filed a lawsuit against the Federal Housing Finance Agency opposing HVCC.

No money = no voice. Let's face it, money talks good intentions walk in Washington DC. Anyone who is affected negatively by HVCC should donate to NAMB even if you are not a mortgage broker. This donation will be used to fight HVCC in court. Suppose it was left up to mortgage brokers, if every mortgage broker sent them $25 it would make a HUGE difference.

If you don't it might be YOU serving the coffee.

Donate to NAMB

Look for yourself

National Association of Realtors donations

Mortgage bankers donations

MBA and NAR are doing most of the work for us in Washington because they have money to contribute.

Keep mortgage interest rates low by buying mortgage backed securities.

Want to keep interest rates low? Buy mortgage backed securities (MBS)and Collateralized mortgage obligations (CMO). They are about as safe as you can get in an investment especially given the tough underwriting guidelines. By building demand for these investments we can keep rates low. WWII campaigned to influence Americans to buy war bonds. The real estate community can start the buy MBS and CMO campaign.

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888-206-5781 x 1017

Serving customers since 1977

First Priority Financial is licensed by the CA DRE # 654852 Nevin's CA DRE license 016552

The opinions expressed in this blog are not necessarily those of First Priority Financial.

3700 Hillborn Rd #700, Fairfield, CA 94534. This is not a guarantee to lend.

Hey there San Diego! Mortgage rates have dipped slightly this week as Wall Street saw it's share of profit takers. Take advantage of low mortgage rates like the 15 year fixed as low as 4.125%. Just think...you could pay your house off in half of the time and enjoy one of the lowest mortgage rates in history. Click on our logo below or stop by our Carlsbad location to get a free quote.

Mortgage Interest Rates for Fixed Rate Mortgages*

Rates as of Thursday, 19th November, 2009:

Term Conforming APR Payment per $1,000 Jumbo APR Payment per $1,000 30-Yr. fixed 360 4.50% 4.670% $5.07 Call 0.000% $0.00 15-Yr. fixed 180 4.125% 4.419% $7.46 for 0.000% $0.00 7-Yr. fixed ARM 360 3.625% 3.786% $4.56 jumbo 0.000% $0.00 5-Yr. fixed ARM 360 3.50% 3.660% $4.49 & 0.000% $0.00 10 Yr. fixed ARM 360 4.125% 4.291% $4.85 FHA 0.000% $0.00 5-Yr. Interest Only 360 3.50% 3.660% $2.92 Rates 0.000% $0.00

*Rates are subject to change due to market fluctuations and borrower's eligibility.

Certain credit requirements and other conditions apply. This is not a guarantee to lend. Rates based on a 12 day lock period and a minimum loan amount of 165,000. Credit determination must be made prior to approving rate. Equal opportunity lender. CA DRE Lic.#01366552 FPF CA DRE Lic#00654852 Nevin's NC Lic#I139451 First Priority Financial NC Lic# B-146523-101 OR ML3337 WA 510-MB-30588-51099

Click here to visit our website

Serving California customers since 1977

Southern California*-

1902 Wright Place #200 Carlsbad CA 92008

First Priority Financial is licensed by the CA DRE # 654852 Nevin's CA DRE license 016552

The opinions expressed in this blog are not necessarily those of First Priority Financial.

3700 Hilborn Rd #700, Fairfield, CA 94534. This is not a guarantee to lend.

* This office is not licensed. All loans originated at corporate office.

Greetings and Salutations Fellow Realtors ! I just spend 2 full days at the NAR convention in San Diego last weekend. I particularly was interested in the offerings of Short Sale Negotiators. There were a good dozen exhibitors plus a few "distressed property designator schools."

I currently am working with a negotiator for my distressed properties in Carlsbad, CA. Overall pleased but it seems recently that it takes forever to get a file approved. I just had 2 buyers walk that had been "sticky" since March. Yes, March ! Now I lost 2 buyers and the banks are going to Foreclosure in 2 weeks... (one listing was $1.350.000) That will make a Xmas difference without that closing.

I wonder what some of your trial and tribulations are ? Recommendations on good negotiators or are you doing that job on your own ? Lets open it up for some airings.

Thanks and Happy Turkey Day ! Peter B

Our neighboring 1-800-GOT-JUNK? franchise partner was on the NBC Morning show with Marianne Kushi this morning. 1-800-GOT-JUNK? was brought in as an expert on local recycling sources as we put so much effort into using various resources to donate and recycle the junk we pick up.

Here is a link the segment.