Jay Beckingham

When I first started in the mortgage lending business there was no such thing as a stated income program. The self employed and commission income clients had to live and die on the merits of what their tax returns stated. Quite frankly, I do believe that the underwriters back then did a much better job, than today's underwriters, in interpreting tax returns because they were used to dealing with them on a regular basis.

I believe it was Citicorp who rolled out the first "stated income" product and the guidelines made a lot more sense when we started with the program, than when we finished. When the program was initially offered you had to be self employed and a strong borrower, when it died you only need to have a pulse.

So here's my ProttypeII for a stated income product, and why I believe that it will make a comeback.

The borrower must be self employed (if not just fork over your w2's and paystubs)

A minimum downpayment of 25% is required (30% if in a declining market)

A minimum credit score of 740, with no lates for the last 24 months

Primary Residence/Second Homes only (if it is a second home you may not own any other property, other than your primary)

6 months PITI cash reserves with 3 months seasoning

A 4506 will be require to assure tax returns are being filed. (if the stated income is questionable the underwriter will take the adjusted gross, add back depreciation, and multiply the results by 125%)

Fixed rates only, and the rate will be 1% higher than the standard 30 year offering.

This sounds kinda restrictive you might say.

Exactly Right!!!

This program would only be for the cream of the self employed borrowers. That was the original intention.

Those who have earned it!

There will be NO EXCEPTIONS to the guidelines.

You fit or you don't.

For those of you who were around when the stated programs were first brought into the marketplace, these guidelines may sound vaguely familar. And initially these programs were a success, and can be again.

Okay, all you loan officers at Chase, Citicorp, Wells, etc. get these guidelines to your secondary market leaders. Let them have a good laugh at first, right up until they realize that the market is crying out for this program, and it can/will be extremely profitable. Especially for whomever gets started first.

So are stated income programs dead forever?

I don't think so, they're

Just Snoozin!

Once upon a time, in a very far off land (Dover, NH) there was a very young and enthusiastic Loan Officer (me) who was introducing the marketplace, made of of mostly Realtors, to what was referred to as secondary market loans. Back then Fannie Mae, and Freddie Mac were not the household words that they are today. The Realtors had been used to dealing almost exclusively with the local banks and had to adjust to the abundance of paperwork that the young loan officer requested. And ooooooooo the paperwork the underwriters wanted, and the questions they asked. They had to be kidding, right? But no they were not. You'd almost think that they were looking for a way to turn down the transaction. And you knew the deal wasn't done until it was done. The young Loan Officer would do his best to explain that the loan had to be salable in the secondary mortgage market. And

the rates were reeeeeeeeal good! Especially compared to the bank.

Fast Forward; 30 years later!

The young Loan Officer is not so young any more. He's got white hair and a white mustache, but he's still very enthusiastic, remarkable. After a prolonged period of foolishness, where many of the Realtors and Loan Officers did not survive, the real estate markets are finally, in most cases, in a period of recovery. It seems that once again the underwriters are requesting more paperwork and asking more questions. Many times it almost looks like they are trying to turn down the loans.

But those rates, they're reeeeeeeeal good!

Today, the not so young loan officer, offers his clients, the Realtors a word of advise.

No matter what you are told, all of our efforts are to get you to the closing table. Do not listen to anyone who tells you the transaction is a slam dunk, or a done deal until it is actually closed, because

It Ain't a Done Deal, Till it's a Done Deal!!!

Okay, I've read the posts about the power of Active Rain and the google juice, well as they say a picture is worth a thousand words. So, if you've never done this before, Google yourself!

If you've been an active Active Rain blogger than you're going to loooooove the exposure that you and your business are receiving. If you haven't been then you are missing out;

BIG TIME!!!

If you haven't been than take this challenge.

START!

Write 3-5 thoughtful, insightful blogs each week for the next 3-4 weeks and then;

Google yourself!

If you're not smiling at the results I'll be shocked. But a few suggestions and some advice.

Update your profile. Is it out of date? What message does it send. This may sound corny, but this is going out to the world! Be brave, ask a respected associate what they think of your profile. After you are satisfied with your profile remember to keep it updated.

It seems that most/all of my recent blogs are showing up on the net. I found this out when I googled myself. So take seriously what you write, and who you expose this to. You have a members only tool.

Looking to move up in the ratings? If you're not you should be. Don't you want the fellow Rainers and Rain readers to feel you're an Industry leader? Use all the tools. I was just updating my profile and saw at the bottom an opportunity to write my Active Rain success story. So I did. I didn't know it would give me 500 points. I'm also not sure where it went. Oh well, I'll find it.

A piece of advice;

Take this seriously!

Include Rain participation in your marketing plan. Maximize it's use. Read the articles. They're great! There is an incredible wealth of knowledge amongst the Rainers. Learn from them.

We often forget to say thank you. So to the powers that be. Thank you for Active Rain. The "Rain Power"

IT'S AWESOME!!!!!

WARNING, WARNING!!!

TOXIC BEHAVIOR is hazardous to your Success!

Toxic behavior by definiton would be a behavior that was/is poisonous.

Boy, that doesn't sound good to me!

Where will you find this you may ask? so that you may avoid it.

Well first, you really need to check out the mirror and see if you find any in there. If you do I suggest a strong window/glass cleaner to see if you can clean it up. You need to do this right away, don't wait, this is important.

Next, spend some time listening to yourself during the day and evaluate what YOU are saying. If your conversations contain to much whining, complaining, and that can't word, STOP! and clean that up. Run to the medicine cabinet quickly and take a positive pill. Once again don't wait. If your at the office, fire up the computer and take a moment to read something positive or inspiring. It's everywhere. I personally like Success Magazine because they also have many short videos ozzing with positive energy. I also like the title!

Now, your friends and fellow coworkers, unfortunately they may already be infected. You may try to help cure them, but they may actually not want to be cured. I'm not sure what the solution is, but I do know that this disease is highly contageous.

Finally, watch out what you read, and watch on TV. Remember they're not really interested in your well being, but only in selling advertising, and making money.

A last word of advice, cause you have to watch out, as this disease can be spread without any contact, you only need to get near to it. Stay away from the inflicted.

This is your last warning.

TOXIX BEHAVIOR is hazardous to YOUR Success!!!!!

I've read a few blogs recently about returning phone calls. It made me think about the good olde days, you know, before voice mail.

Oh, how did we ever survive?

So what I'd like you to do right now is stop for a few minutes and think about how you feel when you're calling someone, it's an important phone call, there's 3 or 4 rings and then;

THE MESSAGE!

That's right, you never had a chance, right into voice mail.

Okay, how do you feel about that?

Is it safe to say that you wish a real live human being had answered the phone? Did you ever think about the fact that that's how others feel when they're trying to reach you, and it goes immediately into voice mail.

Is it every time?

Because, if it is, than your customers know this. That being, that you NEVER answer the phone.

How do you think that makes them feel? How would you feel if the shoe was on the other foot?

So maybe what we need is a national answer your phone week. No voice mail allowed.

Impossible! you may say.

Well we survived and prospered quite nicely before voicemail. It shouldn't be more than just a tool.

So maybe we could all make a resolution for the next 30 days to make a real effort to;

Try answering your phone!

ps; I guarentee your customers will love it!