Leslie Heimer

Apparently, the previous "Hope for Homeowners" program was a bust. With only 25 closed loans across the entire nation, it is obvious that this wasn't providing very many homeowners with much hope. Also no-longer available, in the mortgage loan product bag, is FHA Secure. This program forgave borrowers, behind on a mortgage payment, even with blemished credit, allowing them to obtain new financing. It is also my own prediction that soon, the minimum FHA credit score will be a 620, at a time when millions of Americans have terrible credit due to job lay offs and other financial circumstances.

Here is the good news, and what we know is happening so far to offset the mud we've already thrown at the wall.

The new plan is a wide reaching effort to expand refinancing opportunities for up to 5 million loans and encourage the modification of up to 4 million additional loans.

The plan is broken into 4 key parts:
Increase Refinancing Opportunities - through Fannie/Freddie with expanded qualification criteria including first mortgage LTV up to 105%.
Encourage loan modifications through a combination of:
Financial payments to lenders & borrowers to complete a modification and perform on the loan over time.
Standardized guidelines for loan modification. These guidelines will be posted on the Internet. (more to come)
Forced participation for banks receiving aid or institutions that are federally supervised.
Some form of forced judicial modification during bankruptcy.
Maintaining low mortgage rates by providing additional support and capacity for Fannie & Freddie.
<strong>Some key features of the plan include:</strong>
No Reduction of Principal Balance
Primary Residence Only
Borrowers Who Are Still Current Are Fully Eligible to Participate Including Additional Financial Incentives for Modification of Current Loans
Modifications Do Not Apply to 2nd Mortgages
Today's announcement didn't include specific details about how these programs will work. Additional details will be released between now and March 4th, by the Administration. Stay tuned!!

I recently conducted a class for our Real Estate Association and had great attendance. Of course, I mentioned ActiveRain in my presentation. I have already been asked to come back for a second class! Click on the link below to see the summary slideshow.

http://docs.google.com/Presentation?id=dcw9v527_0c9gsw8cq

There isn't much that can compare to heartfelt gratitude and our team at PHM have always been so customer focused, that commissions/fees/payments can hardly measure to a customer who understands and appreciates your hard work. Recieving a thank you letter, knowing someone actually took time out of their busy day to think of you and appreciate truly makes all the difference. Over the years, I have recieved flowers, candy, cards, notes and letters. I treasure each of them and have a drawer in my office just for these "pats on the back" for when the day gets really tough! This one I recieved today was especially kind, and couldnt have come at a better time. This market has taken our job stress to a whole new level, but on this pre-valentine's Friday - I am re-juvenated!

Recently, I taught a class to a group of Real Estate Professionals through the affiliates brown bag lunch, hosted and organized the East Polk Association of Realtors group, where I am member. I attempted to impart on this experienced group of Associates, what I think, they need to know, to better facilitate the transaction from contract to closing. What happens in the middle, during processing/underwriting. I hoped this would help the Mortgage Broker/Realtor partnership; allowing us all to be more efficient and close more transactions in a way that better services the mutual client. It was a lovely lunch and I was grateful for the lively Q&A session and such a captive audience.

I immediately wanted to learn their side of the process as best I could. To ensure that this partnership (that is often much like an arranged marriage - forced to be together and hoping to fall in love) I was giving 110%. I started researching articles and other (Realtor) blogs, and came up with a top 10 principals for other mortgage folks out there, wanting to increase your own marital satisfaction!

Once my research was complete, I was gratified by company that my mom and I have built, based on these exact principles of relationships. We are in the relationship business. First with our customers and second with industry professionals that have the same relationship focus on their clients.

<strong>10 Principals that Realtors appreciate in their Mortgage Partners:</strong>

1. Don't pop by the office. Productive agents are busy and the "pop in" is unscheduled and not respective of time their or my own.

2. Communication, when there is lack thereof, both parties feel anxious, most important the client.

3. I need to know you are in this for the long haul, and proactive in problem solving. The best mortgage pros see a problem before it is a problem.

4. My real test for for you is when it's crunch time and you need to perform under pressure.

5. "Sorry folks, but if you just discovered FHA, I'm not giving you a loan." -this was a direct quote from a Realtor. No rookies please!

6. If you advertise no closing costs, I worry about what catch their is for my buyer, all loans have closing costs.

7. Tell me how you will solve the problem without scaring me.

8. Make it seem easy and smooth. Real pros make their job seem easy, we all know it isn't.

10.When you explain the loan to me, I am imagining you are explaining it to the client. We shouldn't assume others know our business, we aren't experts in their feild.
BONUS :-)
11. I just might call you sight unseen if I like your blog. Blogs are personal, reflective and illustrate a passion for that which you are blogging about!

No, I am not referring to the quickly approaching arrival of the Easter Bunny or a new song about Peter Cottontail, but an emerging trend that has resulted from a struggling mortgage economy.
House Hopping is defined as leaving your current residence and purchasing a new home with a lessor mortgage and then letting the bank foreclose on your former residence.
These trends, due to the current market climate, have lenders tightening the ropes and now requiring what seems like, excessive verification to prove this is not happening, as it is becoming more common.

Scenarios:
If selling current primary residence (owned) and buying a new home the guidelines now require the following

· Must provide MLS listing for current home

· Must provide good explanation for move

· Must qualify with both payments considered debts

If keeping current primary to lease and buying a new home:
• Must provide lease agreement with proof of deposit of first months rent (FHA). On Conventional it is to the Underwriter's discretion.