Steve Hawk

This was almost a daily occurence last year, but we haven't seen this in a while (at least at this large scale). Taylor Bean, the nation's 12th largest lender, ceased mortgage operations yesterday along with Colonial BancGroup. Here's a link to a WSJ article http://online.wsj.com/article/SB124949523458308423.html

It appears that they were doing something potentially fraudulent. Being in NY, I've never personally written a loan with them (they weren't licensed in NY). This seems to just continue the consolidation of the industry where there will only be a few large, strong lenders remaining in the end. I'm not sure this is a good thing as it leave cunsumers with fewer choices.

Luckily, my company did not have any warehouse lines with TBW, but many smaller brokers did. This will have huge ramifications for them and will probably cause more brokers to either leave the business or re-affiliate themselves with other companies. I'm sure Guaranteed will benefit by bringing on new offices!

There is no disputing the fact (trust me, I know!) that our current real estate market is a difficult one. I've only been in the business since 2003, but I'm told by industry veterans that this is the most difficult that they can remember.

Well, in an effort to grow my network of local realtors -- Dutchess and Putnam County NY -- I've subscribed to a service that provides daily real estate marketing ideas (and they are good ones!) for realtors. If you are a real estate agent in Dutchess County or Putnam County, NY, please contact me at shawk@ghmc.com and I will gladly add you to my daily newsletter distribution. If you decide it's not for you, you can opt-out at any time (although I'm not sure why you would!).

Let's survive in this business together! I look forward to hearing from you.

In an effort to boost my business in our current economy, I have decided to offer the following incentive to all new customers:

*A Free Appraisal ($300 - $400 value)

Since appraisals need to be paid by the customer, and paid directly to the appraiser at time of inspection, I will refund that full cost at closing!

www.stevehawk.biz

Thanks to our sagging economy, mortgage rates are dropping again. The average 30 year fixed rate mortgage nationally is around 5.50% with average 15 year fixed rates under 5%. This is good news once again for prospective new home purchasers as well as existing homeowner's looking to refinance (either to lower their rate or to take cash out of their equity).

I have always felt that the jobs and unemployment numbers the government releases (and which have an effect on both our stock and bond markets, the latter which drives mortgage rates) are flawed. Especially the unemployment numbers. The reason is that there are many people in our current economy who fall off of the reports because they've been out of work too long and their unemployment benefits have expired. This can lead, like they did a few months back, to artificially positive numbers. The June jobs report was lower than expected, meaning less jobs were created than anticipated by the "experts". This is not really a surprise, I don't think, since I continue to see companies going out of business and few new businesses opening.

While this indicates to me that the economy is not yet moving in a positive direction, it does mean that my business will hopefully begin to pick up! It should, considering housing prices are low and rates are low. This is not usually the case in the real estate market. Please contact me for your new mortgage and I'll have you in your home in 2 months! No kidding!

If you're a retired veteran or active military, you are eligible for the best mortgage program on the market today! A VA Loan. Benefits of a VA Loan are:

• No Downpayment Required -- 100% Financing (only program in today's market that offers this benefit)
  
• A 4% Seller Concession is allowed, to pay for certain closing costs (less out of pocket funds required at closing)
• No PMI (Private Mortgage Insurance) -- although an upfront funding fee is required and can be financed or paid by the seller concession
• Interest rates similar to FHA rates (yesterday's rates were under 5.50%!)

Prospective borrowers still need to qualify based on income and credit, and must live in the home as their primary residence. If you're furtunate to qualify for VA financing, take advantage of this great program to purchase your new home (or refinance to a lower interest rate). If you live in Dutchess or Putnam county, or anywhere in NY for that matter, contact me for a free consultation.