Ron Withers ----Retired Mortgage Professional

I just picked up on this via the ML Implode Website. This is absolutely mind boggling. I did a quick speed read but decided to save and print to digest it in greater detail. It is a fascinating read and one has to question how can fraud be this rampant and run so deep and for so long. It is so bizarre that it makes you wonder is it the complete truth or somewhat embellished for our reading pleasure. It could have the makings of a Best Seller and offers for movie rights?

Below in bold is the Title and just below that the link to the Resume'/Confession. I will not comment further at this point but rather invite you to read it for yourself and express your comments here.

RESTORING INTERNATIONAL CONFIDENCE IN AMERICAN MBS/CMBS/ABS

INVESTMENT SYSTEM

BY: CHRISTOPHER JARED WARREN

http://www.triduanum.com/memo.pdf

UPDATE: February 6,2009 Arrest warranted issued and it appears subject has fled the US on a private jet. Link to Arrest Warrant and Complaint is below

http://ml-implode.com/info/Arrest-Warrant.pdf

News Story below: Now we have a Bernie Madoff of the Mortgage Industry!

http://www.news10.net/news/local/story.aspx?storyid=54342&provider=top

As of February 2, 2009 Florida Housing Finance Corporation (FHFC) or Florida Housing still has approximately $38 million available between their 2008 Series 3 and 4 Mortgage Revenue Bond (MRB) Issue for mortgage financing and down payment assistance (DPA) up to $10,000 subject to borrowers eligibility. Approximately $12 million has been committed over the past 6 weeks.

The mortgage interest rate has fallen some to make the terms generally competitive in the marketplace. One advantage for homebuyers using the Florida Housing MRB program is that Documentary Stamp and Intangibles Tax fees are exempted helping reduce the borrower's closing costs representing a substantial savings.

If you are seeking DPA funds to help make your home purchase attainable or affordable the Florida Housing program presents a higher probability of assistance when compared to local SHIP programs. Most of the local SHIP programs have already closed their application period or exhausted their available funds.

Florida Housing remains committed to the continuous availability of funds. Home prices are down and with $10,000 in assistance you may be able to complete your home purchase with very little out of pocket funds.

Visit me at www.ronwithers.com or www.myfloridamortgagepro.com

Rule 1: What You Don't Know Can Hurt You!

Homebuying 101-The Series is a new personal series of posts that provides tips, views and perspectives based on expertise acquired through knowledge gained, personal experiences and lessons learned over the span of a 40 year professional career. The series begins with my four-part series...Rules of the Game. When it comes to Homebuying and obtaining a mortgage it is certainly no game...it is serious business! However, for purposes of discussion and illustration we will approach it as a game. A game where everybody wants to win!

A game where you as the homebuyer has a well executed plan based on knowledge, strategies, special teams and solid coaching staff to ensure a solid victory.

All games, sporting or otherwise have a set of rules to play by and they must be adhered to and understood by every individual participating in the game to keep the playing field level. The Homebuying game is considerably different as there are different levels and classes of participants in the game you are playing. Of course there is you the buyer, and we have sellers, Realtors, mortgage lenders/brokers and a host of other professional services(special teams) at your disposal that enter the play of the game at various points.

Over the years (decades) I have developed a few basic rules about homebuying that I try to convey to all my clients at some point during our discussions. These rules are based on my personal experiences in the closing a few thousand loans as well as discussions and pre-qualification's of possibly 10,000 or more. And like many, I have often thought that I have seen and heard it all....but occasionally something new will pop up.

This rule as it applies to mortgages has diminished somewhat in the past two years, but nonetheless remains important. The mortgage industry has changed dramatically with the elimination of many mortgage products, their features and options and IMO....good riddance! More specifically, I am referring to the creative or so-called exotic mortgages with their myriad of features/options such as stated, income, stated asset, no-doc, teaser rates, the evil Option ARM and much more.

If you do not have a clear cut understanding of the nature and terms of the mortgage loan that you are accepting then you can unknowingly set yourself for a potential "nightmare" at some future time. A couple of examples would be a prepayment penalty in the event of a future sale or refinance of your home or accepting some form of adjustable-rate mortgage (ARM) where the monthly payments will reset or "skyrocket" within a few months or years.

From the perspective of the home or subject property, "What You Don't Know Can Hurt You" rule could prove to be very costly and create a great deal of "buyer's remorse". You need to obtain an excellent Coach (a Realtor in this case). This coach needs to have an in-depth understanding of your intent, goals and objectives or what is most important to you. You may want to consider a Realtor with an Accredited Buyer's Representative (ABR) designation.

You should have a very detailed discussion with your Realtor about the property condition and inspections that should be conducted. This is even more important in todays market if you are considering the purchase of a foreclosed property or a short sale as there may an increased liklihood that the property has been subjected to deferred maintenance. While some lenders may not require pest or whole house inspections do not let this keep you from seizing the initiative. You should also consider acquiring a Homebuyer Warranty. The cost of these services will mostly likely be in the range of $750 +/- and be money that is well spent. An ounce of prevention is worth a pound of cure! Of course, you always have the option in negotiating for the seller to pay some or all of these costs.

Stay tuned for: When It Comes to Your Financial Future There's No Such Thing As A Stupid Question!

Visit me at: www.ronwithers.com or www.myfloridamortgagepro.com

Copyright 2009, Ron Withers, All Rights Reserved.

And now homebuyer's ... It's Time to Play the Home Version of ... DEAL, NO DEAL! ... (AKA)... Cash to Close!

So..... you now find yourself wanting to purchase a home but are having difficulty putting together the necessary financial resources to make your purchase happen....or as we call it in the business....Cash to Close! You may be thinking that the only way that you are going to come up with the necessary funds for a home purchase is to be selected for a popular TV game show such as "Deal, No Deal" or maybe playing the lottery. IMO you are going to have a better chance at finding your cash by strolling out into your own back yard and turning over a few rocks! Momentarily we shall peek into your attaché/game case and seek a discovery of funds that may be right under your nose!

Cash to close to mortgage lenders means adequate funds for any down payment, settlement costs and any required cash reserves. Furthermore, that your funds are verifiable, from an acceptable source and quite often adequately seasoned funds (funds that have been available to you for a specified period of time, generally 60 days). Cash reserve requirements will vary depending on the mortgage program and other financial considerations unique to your circumstances. These are funds left remaining in your depository accounts after closing that will help you to minimize any future downturns or financial hardships that may occur.

As you start down your path to homeownership and discuss your pre-qualifications with your loan officer, he or she should lead you into a discussion of your assets and guide you toward a discovery of the possibilities/resources that can make your dream come true. However, I believe in "homework" (see My Four Rules) in that you need to educate yourself by researching information and resources with due diligence to arrive at a truly informed decision. This will save you a lot of time, maybe disappointment or embarrassment...and maybe grief and money down the road.

So without further adieu...Let's play my Special Edition of the Homebuyer's version of......... DEAL---NO DEAL! In the TV version you get to choose an attaché case for your very own from one of 25 beautiful women. One you can hold onto through the very end....if you so choose. As you progress through the game play the odds of the value of the content of your case can increase or decrease based on your luck....but these odds, as in a Las Vegas Casino, will always favor the house. My apologies as I know that I can't compete with the sparkling personality of Howie Mandel or match the beauty of stage assistants. J

However, in my home version of DEAL-NO DEAL.... I am going to give you a big edge from the start. I am going to provide you with a specially selected case and let you peek into your case and the individual sacks before you start your game play. Of course the game play in this version is your path to homeownership. In this case there are 11 labeled sacks of cash, all with varying amounts of money in them. Some sacks may contain little or nothing while others may really surprise you as to their content and value. So now it's time to open your case... and peek into each named/labeled sack to see what's there! Good luck!

Seasoned Depository Funds: These are funds that you currently have on deposit in checking savings, money market accounts, CD's, etc. Generally they must be seasoned by 60 days prior to your loan application.

401K Funds: These funds are the vested value of your retirement account(s). When lenders list this asset on your application it is generally reflected at 70% of its vested value.

Cash On Hand: To lenders this is commonly referred to as "mattress money." If permissible/allowable in the mortgage product this will be scrutinized (subjective evaluation) very closely by the Underwriter. Generally it will require a plausible or believable explanation which may include, the amount, source of these funds, why these funds are under the mattress as opposed to not being in a bank account, the evaluation of your employment, income, disposable cash flow and debt service, etc.

Tax Refund: After all, this is your money and it is considered seasoned as the U.S. Treasury has been holding it for you over the past year.

Earned Income: Some mortgage programs will allow you to use earned income that you set aside between the application date and closing date. You must be able to document your capacity to set aside these funds and still meet all your financial obligations in a timely manner during the time frame.

Gift Funds: Most mortgage programs will allow you receive gift funds from family or another party who can show a close family relationship that can be used for any down payment and/or settlement costs. The donor must be able to demonstrate the ability to make the gift and transfer of funds is properly documented. Funds from a Not-for Profit Organization is also allowable.

Asset Conversion/Sale of Asset: Asset conversion is taking a tangible asset that you can document ownership and market value and converting it into cash. This can be a secured personal loan (mentioned below) or the sale of the asset up to a documented value. Any personal loan taken out and secured by the asset cannot be done if the resulting payment schedule would create a significant hardship on you or disqualify your debt ratios on your mortgage loan.

Seller Concessions: Most mortgage programs will allow the seller to pay in your behalf some or all of your settlement costs. This must be specified in the purchase contract as a maximum dollar amount or a maximum percentage of the contract sales price. The maximum allowable seller concessions will vary by mortgage program and in some cases your qualifying loan-to value (LTV) ratio or subject to your minimum cash investment requirements. FHA and USDA Rural Housing programs are most flexible in allowing up to 6% seller concessions. VA is 4%. NOTE: In a "buyers market" sellers will tend to demonstrate more flexibility in their decision to assist a prospective buyer with their closing costs. A good real estate professional with negotiating skills can be instrumental in maximizing this opportunity for you.

Down Payment Assistance Program (DPA): Down payment assistance may be allowable. This assistance may be available to you through a State, City or County Housing program. At the State level this is generally referred to as a Mortgage Revenue Bond (MRB) program. At the City and County level it is generally referred to as the State Housing Initiatives Partnership (SHIP) program. Generally your lender must have an established partnership/relationship with that housing agency to participate in their programs.

Secured/Unsecured Personal Loans (be careful): Some mortgage programs may allow for you to obtain a personal loan for part of your required funds to close up to the extent that such loan does not disqualify your maximum debt ratios for your mortgage loan. An unsecured loan is rarely accepted, nonetheless a possibility.

Lender Paid Closing Costs: This is an option that a lender may make available to you. Basically the lender must price/lock your loan at a higher interest rate to obtain a greater financial yield/differential over the term of the loan or in any subsequent sale of your mortgage loan into the secondary market. The lender then issues you a credit in the amount of this differential to your closing costs at the closing table. In effect or reality you are actually repaying these lender paid costs over the term of your mortgage loan. Whether or not this option is used is depends on what your lender can do and your personal determination if the means justifies the end.

Ok...you have now peeked into your sacks of cash or financial resources and got idea of what was under your nose. Can you stand patt? Can you state "No Deal" for the rest of the game play and head off to your closing with your own resources?

It is very important for you to understand how and when you can use these resources, mix and match as is necessary, and that they will be permissible within the guidelines for the type of mortgage you will be getting. Whether your loan is Conventional, FHA, VA, or USDA Rural Housing the criteria will vary somewhat. It is very important that your loan officer knows this criterion and guides you accordingly.

Click on the following link if you would like to view or print a copy of my Homebuyer Financial Resources Information and Worksheet that is located in the documents section of my personal website. This worksheet will help you determine the extent of your financial resources for your investment in a home purchase.

As an additonal note of importance, you should be aware of the First-time Homebuyer Tax Credit that can provide you with up to a $7500 tax credit if you purchase a home prior to July 1,2009. There are a number of posts on ActiveRain on this subject matter. The above link is a posting by Jeff Belonger.

Visit me at www.ronwithers.com and/or myfloridamortgagepro.

Copyright 2009, Ron Withers, All Rights Reserved

Down Payment Assistance (DPA): Polk County, Florida

On January 12, 2009 the Keystone Challenge Fund announced the availability of DPA/S.H.I.P. program funds for 2009. Participating lenders may register their clients for program funding beginning January 21, 2009.

The Keystone Challenge Fund, located in Lakeland, Florida administers the DPA/S.H.I.P. programs for all of Polk County. There are separate programs for the cities of Winter Haven and Lakeland and one for Polk County. Each of these programs will vary somewhat in their parameters. DPA of up to $20,000 plus an additional $2000 may be available to you. The level of assistance is based on your household income adjusted for family size. Additional information is provided below.

Unfortunately, City of Lakeland funding is still suspended at this time, pending the outcome of the Florida Legislative session.

In order to buy a home, two things need to happen:

• You will need to qualify for a first mortgage loan.
• You will need money for a down payment and closing costs associated with getting a mortgage loan.

It is recommended that before you begin the process of actually searching for and contracting to buy a home, you take the steps below.

• Get pre-qualified for first mortgage financing.
• Attend their Homebuyer Education Class.

Keystone offers Homebuyer Education classes as part of their services to new homebuyers. The classes are designed to prepare you for the process of buying your home and are a requirement to receive assistance. If you have already completed a homebuyer education course within the past year and have a completion certificate you will not be required to complete another.

The classes will provide you information on:

The level and amounts of DPA available are as follows:

• Very Low Income--$20,000
• Low Income--$12,000
• Moderate Income--$7,000

An additional amount of up to $2000 is available to help with closing costs.

Down payment and closing cost assistance is secured by a second mortgage that is subject to recapture based on length of, or continued, occupancy. Interest is not charged and the homebuyer does not make monthly payments.

The Polk County assistance program (for clients not purchasing in the city limits of Lakeland or Winter Haven) may allow the assistance to be secured by a third mortgage for clients utilizing the FHFC Bond Programs or the Pinellas County (serving Polk County) Bond Programs.

The SHIP Program establishes some basic requirements regarding homebuyer and property eligibility. Existing homes must be inspected to ensure that they meet program requirements. The City of Lakeland, Winter Haven, and Polk County have each also established additional guidelines for assistance. The location of the property being purchased determines the source of the assistance funds.

Maximum sales prices apply as follows:

Visit me at: www.RonWithers.com and www.myfloridamortgagepro.com

** All program information and terms are subject to change without notice. Funds are always subject to eligibility and availability of funds, generally on a first-come, first-served basis. Assistance amount/eligibility is based on household income adjusted for family size.