Shay Campbell, LO5, Raleigh, NC

The National Registry of Licensed Mortgage Originators LLC has issued a new designation for mortgage originators. The new designation is LO5℠. The mission of the National Registry of Licensed Mortgage Originators LLC, NRLMO, is to provide an easily recognized designation that consumers, REALTORS® and others can use to help make sure their mortgage originator is ethical, experienced and has a valid State recognized mortgage license.

Most consumers assume their mortgage originator has a license. Many REALTORS® assume the originator they refer their clients to for a mortgage has a license but this is not always true. Not all mortgage originators are created equal. Some have a license and some do not. How can you tell if the mortgage originator you are working with is experienced and has a license? Look for the LO5℠ designation.

The three requirements for the LO5℠ designation are:

•1. Does the originator have a valid license for the State they originate in?

•2. Does the originator have 5+ years in the mortgage industry?

•3. Does the originator agree to the NRLMO written code of ethics?

Earning a State originators license is hard, time consuming and costly. First the license; all LO5℠ originators have completed 20 hours of pre-license course training and 8 hours of continuing education. They have passed the National and State examinations. They have been fingerprinted and had an FBI criminal background check. Their credit report has been pulled and analyzed by the State agency. Second the experience; all LO5℠ originators have five or more years of experience. You want the originator, who you recommend, to have learned from their past mistakes, not learn from mistakes on your client's mortgage. Third is ethics; which is so important in the mortgage industry. All LO5℠ originators have agreed to a written code of ethics. Believe it or not, the mortgage industry as a whole does not have a written code of ethics.

You as a REALTOR® have a license, the attorney has a license, and in fact almost all professionals involved in the home settlement process have a license. Don't except any less from the mortgage originator. Insist they have a license.

Shay Campbell is a licensed and experienced originator located in Raleigh, NC.

Realtors don't want bagels. They want closed loans. I heard this statement at a recent sales meeting and it struck me how true it is. My industry, the mortgage industry, and the Real Estate industry can't survive without each other. The vast majority of home buyers need a mortgage.

Loans today are more complicated than ever. Regulations change so often that guidelines at times are like hitting a moving target. REALTORS always ask their homebuyers to be pre-qualified. One reason you do this is so you don't spend a lot of time with someone who can't get a mortgage. REALTORS should also pre-qualify the originator they refer homebuyers to. There is nothing worse than spending weeks or months on a transaction that falls apart two days before closing.

How do you pre-qualify a mortgage originator? First, only work with a full time originator. Part timers can't keep up with the guideline changes. Keeping up with guideline changes, in itself, is a full time job. Second, only work with experienced originators. I'm suggesting five years or more. You want an originator who has already learned from past mistakes; not learning from mistakes on your transaction. Third, only work with a licensed originator. You as a REALTOR have a license; don't expect any less from your mortgage originator. Most people involved in a real estate closing have a license, the appraiser, attorney, home inspector, pest inspector, just to name a few.

Summing up, working with "bagel bringer" will not increase your Real Estate business. Working with full time, experienced, licensed originators who close loans on time with no surprises will increase your business.

Shay Campbell is a full time, experienced, licensed originator located in Raleigh, NC. Shay has 12 years' experience in originating mortgages. For more information on why to use a licensed originator go to http://www.licensedoriginator.com

The North Carolina Housing Financing has $8,000 for first time home-buyers in North Carolina. A big challenge for first time homebuyers is coming up with the required down payment. NCHFA has a program to help credit worthy borrowers with the down payment. NCHFA name for this program describes it perfectly; Down Payment Assistance (DAP) Program.

Some of the main requirements to be eligible for the $8,000 DAP are;

•1. Be a first time home-buyer. This means the borrower has not owned a home in the past 3 years.

•2. Have income within established county limits. This is not a program for the wealthy.

•3. The purchase price of the home cannot exceed $220,000.

•4. Be a reasonable credit risk. This is not a program for home buyers with bad credit.

•5. Attend a pre-purchase educational training seminar.

•6. Cannot have liquid assets after closing of $12,000 or more. Most retirement accounts do not count to this total.

•7. Home must be built after January 1, 1978.

$8,000 for first time home-buyers in North Carolina is a great program. For more information about this great program, contact Shay Campbell a licensed originator located in Raleigh, NC.

The monthly cost of FHA mortgages increases today. The reason is FHA is increasing its annual premium for mortgage insurance.

FHA breaks their mortgage insurance down into two payments. There is an upfront mortgage insurance premium of 1.00%. FHA allows this UFMIP to be added to the loan amount. Most borrowers do this. FHA also charges, what they call annual premium. This annual premium is broken down into 1/12^th payments which is collected monthly along with escrows for taxes and hazard insurance. This annual premium, which is collected monthly, is increasing 25bps from 90bps to 1.15bps. The increase is approximately 28%.

Using FHA's example in their Mortgagee Letter 11-10, a purchase price of $163.00 will have its annual premium increase from $118.00/month to $151.00/month. This is a change in payment of $33.00 more per month.

For more information contact Shay Campbell. Shay Campbell is a licensed mortgage originator located in Raleigh, NC.

The State of North Carolina has great programs for first time homebuyers. These programs are offer through North Carolina Housing Finance Agency or NCHFA.

One of the programs NCHFA offers is the FirstHome Mortgage Program. NCHFA says it best, "The FirstHome Mortgage Program offers first-time homebuyers affordable mortgage financing at an interest rate that is usually below the market rate." Just click RATE for the most current rate offered by NCHFA. NCHFA offers 30 year fixed rate mortgages that can be used with FHA, VA, USDA and conventional mortgages. These mortgages are not originated by NCHFA. They are originated by participating banks and lenders.

As with all State Housing Finance Agencies there are eligibility requirements. Some are;

1. Must be a First-Time homebuyer. Generally this means you have not owned a home in the last three years.
2. Income limits. The income is limited by what county the home is located in and household size.
3. Purchase a home within the established acquisition limits
4. Borrowers must be a reasonable credit risk.
5. Occupy the property with in 60 days of closing.

It should be noted that the FirstHome Mortgage Program is a program offering interest rates that are below or competitive with market rates. It is not a program for borrowers with risky credit.

Contact Shay Campbell for more information on NCHFA's FirstHome Mortgage Program. Shay Campbell is located in Raleigh, NC.