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.
Look for yourself
National Association of Realtors 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.
Click our logo to visit our website, email me nevin@nevinloans.com or call
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* | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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.
| What Is a prepayment penalty & California mortgage rates
This is a clause written into some contracts to protect the lender's book of business in exchange for providing a lower interest rate, or for providing financing to a high-risk borrower. High risk borrowers do have the option of no prepayment penalty but the mortgage rates on these loans are typically much higher. You will usually find this clause on item #4 of your Note.
In some cases item #4 of your note will state no prepayment penalty but will be followed up with an addendum. If you see this form read it thoroughly and carefully.
Prepayment penalties vary with different lenders, but generally apply to a one-, two-, three-, or five-year period of time. This fee can be expressed as either a specific number of months' interest or a percentage of the outstanding balance. I have found that many prepayment penalties are calculated using 80% of the outstanding balance. Some lenders charge a flat percentage of the loan balance ie: 2%. "Hard" and "Soft" Pre payment penalty A 'hard' prepayment penalty applies if there is a refinance or a sale of the property. A contract written with a 'soft' prepayment penalty permits the borrower to sell their property without incurring a penalty, but does restrict refinancing for a set period of time. A prepayment penalty is the borrower's choice and should never be considered a requirement!
Need help with a loan? Visit our website by clicking our logo below
(888) 206-5781
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Rates as of Wednesday, 18th November, 2009: Conformning Term Rate APR Payment per $1,000 |
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Click here to visit our website
Serving California 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 Hilborn Rd #700, Fairfield, CA 94534. This is not a guarantee to lend.
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FHA loans benefit Carlsbad & San Diego residents in the following ways
* Firefighters, law enforcement, teachers and emergency medical personnell can buy a home at a 50% discount using HUD Good neighbor next door program
* Good neighbor next door program only requires a $100 down payment 
* Low down payment of 3.5% HUD 203b loan (Required for California loans)
* Low interest rates
* Easy approvals
* Less than perfect credit okay
* Option to choose your own appraiser
* FHA rehabilitation purchase & refinance loans available (203K)
How much house can you buy with an FHA loan?
The FHA loan limits for San Diego county are as follows:
Examples: 1 unit-single family residence 2 unit - duplex etc.
1 unit $697,500 2 units 892,950 3 units 1,079,350 4 units 1,341,350
Click our logo to visit our website, email me nevin@nevinloans.com or call 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. 1902 Wright Place 2nd floor Carlsbad CA 92008 is not a licensed branch location. This is not a guarantee to lend.
We specialize in jumbo and FHA loans in the Carlsbad, Encinitas and Del Mar areas. FHA loans require FHA loan training or adequate experience to avoid delays in your loan approval. If purchasing a home with an FHA loan, your down payment can come in the form of a gift from a family member and the seller can contribute up to 6% toward your closing costs. The minimum down payment requirement is 3.5% of the purchase price.
Click picture for a complimentary pre approval
The FHA loan limits for San Diego county are as follows:
Examples: 1 unit-single family residence 2 unit - duplex etc.
1 unit $697,500 2 units 892,950 3 units 1,079,350 4 units 1,341,350
What if I want to buy this house?
If you need a loan that exceeds FHA limits we can help! We also specialize in jumbo loan products!
Jumbo loans also create a challenge because there are only a few lenders with competitive rates. Some of these lenders also require two appraisals making the cost of securing this loan more expensive.
Don't short change yourself in the real estate transaction either. Since Carlsbad, Encinitas and Del Mar all have entry level to high end homes, you might find yourself buying a home using an FHA or Jumbo loan product. Once your contract is written, submitted and accepted it will be tough to make changes. Even the smallest mistake on a purchase contract can cost you big. Therefore make sure you choose an agent familiar with the nuances of FHA approved homes and high end real estate.
Kim Carlson would be my recommendation.
Kim has over 25 years experience as a top Realtor in the Carlsbad, Encinitas and Del Mar areas. We have worked together on both jumbo and FHA loans/purchases so I have first hand experience in her professional abilities. Since the seller is essentially paying for your agent representation, hire the best. You can visit her website by clicking on her picture.
Click our logo to visit our website, email me nevin@nevinloans.com or call 888-206-5781 x 1017
Serving San Diego county and the state of California since 1977
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I am a people person and believe in providing my undivided attention to you and your needs. After all that really is my first responsibility! Licensed in CA,NC,OR and WA to originate mortgage loans.
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