Paul Thompson

I had a lady come into my office who needed to refinance her home due to a divorce. She had already started a loan with another mortgage company. However, she recinded her loan when she received the final package prior to closing. (Remember, because of the HERA/HOEPA act, clients now must receive a final TIL before closing, and if the APR changes by 1/8 or more, the client has to wait 6 business days(Saturdays count) before closing.

The reason she recinded: The mortgage professional assumed that the client wanted the lowest rate possible since she had just completed her divorce, so he charged her discount points, origination points, and put her in a 5/1 ARM(adjustable rate mortgage).

After asking the borrower several questions, what she really wanted was a fixed rate mortgage and the lowest possible fees. Thus, her interest rate was 1/4 of a point higher than I could have gotten her, but the payment was still affordable for her and the costs were considerably less, thus allowing her balance to not go up so much from her existing loan balance.

Does this sound familiar? How many times do customers get themselves into these type of situations because the professional did not ask the right questions or take the time to determine the customer's needs.

For loan officers, we always want to give them program choices and loan choices, whether it is a higher interest rate with low closing costs, or the lowest rate possible with the option to do an adjustable rate, if they are comfortable with that.

Same goes for realtors. If client can qualify for up to $300,000, are you necessarily going to show the client nothing but $300,000 homes, or are you going to take the time to find out the neighborhood they desire, the payment they desire, and the type of home they desire.

I have had complaints from clients to realtors that I have referred to who said that the realtor did not take the time to find out the type of home(s) they wanted. Instead, they just sent RMLS listing of all homes that were in the upper limit of what they qualified for.

It comes down to basics. Take the time to determine the customer's needs, and then you can define yours and your client's search more and avoid a lot of wasted time.

Thank you for your business

Sincerely,

Paul W. Thompson

Home Mortgage Consultant

Wells Fargo Home Mortgage

Cannot stress enough the benefit of this tax credit until April 2010. Not only does it give some first-time buyers more hope, but also it allows these first time homebuyers and move up or move down borrowers the opportunity to take advantage of these low interest rates.

How long are we going to see these rates in the 5% range? Seriously, the weakening dollar will need to be strengthened to shrink our huge trade deficit. That will bring rates up. How long can the government continue to invest in these Mortgage Backed Securities? How solvent will FHA be in the future?

These are all serious questions that need to be addressed here, and NOW is the time to act to take advantage of this tax credit.

Anybody and everybody needs to spread the word that people need to take advantage of this credit because it will NOT get extended beyond April.

This is exactly what we need to help our industries and to help boost this economy.

Thank you again for your business

Sincerely,

Paul W. Thompson

Home Mortgage Consultant

Wells Fargo Home Mortgage

Tommorrow Obama is expected to sign this extension of the tax credit that yes, will put America deeper in the hole in terms of tax liability, though.

However, given the fact that many first time homebuyers, at least in my neck of the woods, had given up looking at homes due to the fact that they felt they would not be able to qualify for the credit are now back on the fence.

I also feel that this tax credit is very good for those existing homebuyers who have equity and did not refinance multiple times in the past several years and are looking to get a great deal on a home, given today's home prices.

For those of us in the Real Estate and Mortgage profession, this incentive should help do wonders for our business and I am glad that this tax credit is passing.

What I do hate is the HERA/HOEPA law that passed.

I had to delay a purchase closing by three days because the escrow officer did not clarify fees with our processing center, it lowered our APR tolerance by over 1/8% of a point, and because of that, we had to redisclose and make the buyers wait an extra three days to sign, costing them more money in daily rent they are having to pay in their home that the seller let them move into. I cannot stand that law and would love to petition to get that law overturned or at least modified to where we do not have to redisclose if APR decreases. It is ridiculous that we have to redisclose and make the customer wait an extra few days to sign, especially in a purchase contract which has time sensitivity issues.

I am looking to petition to overturn that aspect of the regulation. Hopefully, with enough signatures, as we are trying with HVCC, we can eliminate that portion of the HERA/HOEPA law.

Until next time.

Thank you for your business

Sincerely,

Paul W. Thompson

Home Mortgage Consultant

Wells Fargo Home Mortgage

As trite as this sounds, it is imperative that we be proactive and vote this year. There are some signficant Initiatives and Referendums at stake here along with whether our 12 year reign for our current Mayor will end.

Which mayoral candidate will ensure that more jobs can be created here in Clark County? What effect would it have on you to have a toll bridge instead of a bridge that will affect your pocketbook in a different manner by higher taxes?

Initiative Measure 1033, if it does not pass, can we continue to pay higher property taxes, especially for those low income and those fixed income citizens? Or, if it does pass, what about the millions in lost revenue for the county, leading to more school cutbacks, more health care costs and lack of adequate health care, on top of more lost jobs in local government.

Referendum 71, if is passes, will add more costs to our budget by adding extra benefits for pensions, workers comps, death benefits, paid leave to care for a domestic partner, to name a few. However, there are approximately 5,000 registered domestic partners with the Secretary of State. This is real. Same sex partnerships exist, and we cannot deny that they exist. As time goes on, there will be more of these partnerships surfacing to the public. Should we deny them the same benefits, especially if they are sharing a home, bank account, or even a child?

These are very, very difficult and challenging questions that we have to take seriously and really study before November 3rd. Please take the time to read the Voter's Pamphlet and get out and vote.

Thank you for your time

Sincerely,

Paul W. Thompson

Home Mortgage Consultant

Wells FArgo Home Mortgage

What is the new niche now?

FHA guidelines are tightening up considerably for condos now that spot approvals will not be allowed.

The Republicans are proposing a minimum of 5% down payment on purchases.

The minimum FICO scores for FHA homeowners and homebuyers are 620, and for those with non-traditional credit who used their parents as co-signers, guess what, that main borrower needs to have a 620 score also. That recently changed.

We all know about how much more difficult it is to obtain convential financing, especially now with new hits to the interest rates on lower scores and tighter Debt to Income requirements.

Guaranteed Rural Housing is a great product, given that you can find property in a designated rural area and find a family that has the prope debt ratios but still falls under the median income quidleines, not to mention the length of time it takes for Rural Housing to review a complete loan package.

I see still the most viable options out there that have had the least changes have been VA loans. The minimum scores are still 600, there are no adjusters for FICO scores above 600 and below 620, and VA Streamlines(IRRRLs) still do not require income, assets, or appraisals.

There are over 20,000 veterans in Clark County, WA alone. With programs that require no mortgage insurance, 100% financing, and rates that can be more attractive for those in the low 600s than those applying for conventional in the low 600s, a VA loan is the most attractive loan out there.

I have contacted military bases throughout Oregon and Washington in addition to the SW Washington Veteran Community Resource Center, and they have been extremely helpful in helping me obtain lead sources for veterans looking to purchase and or refinance their existing mortgage

I say you are missing out if you are not focusing on VA loans.

Thanks again for your business.

Sincerely,

Paul W. Thompson

Home Mortgage Consultant

Wells Fargo Home Mortgage