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ERIKA NAEGELIN

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Are loan officer certifications important to the realtor community?

10-14-09
ERIKA NAEGELIN

I am just curious as to whether the realtor community thinks that a LO having a certification or certifications is important. Through the years, I have participated in tons of continuing education, seminars, definitely keep up to date with the industry news (since if you don't you get left behind real quick!), and I have my CMPS certification.

But in general, do Realtors even consider this when choosing to work with a specific lender?

I as a buyer would consider that certification from the realtor side of things, the more the better since it really shows the agent's dedication and seriousness about being in the industry. But, does everyone think the same way from the lending side?

Let's face it, there are few barriers to entry in the lending world. Sad to say, but ever so true. You could be selling cars one day, and a mortgage lender the next. Sure there are state restrictions in a few states, but for the most part its not tough. I have been a lender for 13 years and have seen so many individuals get in, get out, and get back in again. It really frustrates me from my perspective. I have stayed in this crazy industry through the thick and thin; rain or shine; no matter the regulatory, product or rate issues.

Fortunately, some of the regulations coming down the pipe will add some pretty substantial penalties for abuse, really make it tough for the average joe to do the lending side because of the requirements, BUT. There is a really big BUT in there, restricts income on the loan officer. I am sure that there are some lenders out there who substantially abused the system in the boom so to speak (i.e., 5 pts on the loan, etc). However, there are probably fewer of those out there still in the industry now because let's face it, this market has really weeded out a whole lot of bad seeds. I fear that this bill will restrict it so much that the good seeds left, like myself, will just find another industry where we can have alot more fun and make a good living at the same time!

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USDA Loans are refunded, thank you Congress!

10-08-09
ERIKA NAEGELIN

Well thank goodness, the USDA announced that they are officially re-funded and have available funds for consumers to do 100% financing and still get the seller to pay 6% of the closing costs if needed. it's a great loan, with awesome low rates BUT the home has to be located within the USDA lending area and certain other specific restrictions do apply.

Do you want to know what homes qualify? It is really easy, just hit the website and enter your property address. If it says property can not be located, it's a little tougher. But still possible, just have to call them for more info. Here is their website just be sure on the left and click, single family:

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Here is the official announcement from my corporate office:

Funds for Fiscal Year 2010 for the USDA Guaranteed Rural Housing (GRH) Program are available today in all 50 states.

USDA Rural Development offices will now be able to issue loan approvals (Conditional Commitments) for eligible GRH loans without the "subject to receipt of congressionally appropriated funds" language that was used earlier when funding was not available.

Lenders who closed loans with these "subject to receipt of congressionally appropriated funds" approvals should now submit their closing packages to Rural Development beginning today, October 7th, in order to obtain their final Loan Note Guarantees. As part of this process to obtain final Loan Note Guarantees, it is important that the Lender Certification found on the reverse side of the Conditional Commitment (RD Form 1980-18) not be dated prior to October 7th.

As we start Fiscal Year 2010, USDA Rural Development has decided the "Reservation of Funds" process (RD Form 1980-86) is not necessary for new applications. Files can be sent to your State or County USDA Rural Development office without the need to reserve funds in advance, making the process that much easier for you and your originators.

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