Tuesday, December 30, 2014

Seniors Growing As Share Of Home Purchasers Due To Reverse Mortgage



Older Americans are a significant mainstay of home ownership in the US.  Home ownership among those 65 or older is stable at 80%.

In 1982, the home ownership rate was less than it is today in every age demographic other than seniors.  The hardest hit group are those under 35, where home ownership has dropped 12%.

And seniors are not just sitting on the sidelines clipping their coupons.  The biggest growth demographic, last year, for home purchasers was the 65-74 crowd jumping from 10% of total home sales to 13%.

Many seniors are opting for FHA Reverse Mortgages to either downsize or to borrow funds for renovating their existing homes to suit their current needs.  The Reverse mortgage brings an added benefit as it eliminates their monthly mortgage payment.

Monday, December 29, 2014

Disclosure of Congressional Fees in New Mortgage?

Federal Housing Financing Agency Director, Mel Watt stated that GSE funding of several affordable housing trust fund initiatives, targeting rehabilitation and management of low income rental housing, enacted by congress back in 2008 and never implemented, because of the mortgage melt down, will begin January 1, 2015.

His mandate, that a small portion of revenues at Freddie Mac and Fannie Mae be earmarked for these initiatives, has Republican lawmakers livid.  However, their arguments centering around some future cataclysmic financial crises necessitating the status quo, a restructure or replacement of the GSE’s is being undermined by their profitability.  Fannie and Freddie stand to earn combined profits of $25b in 2014.  

Remember, only those who have taken out a mortgage since 2008 have repaid the U.S. Treasury for the $188b bail out.  It was paid for with increased fees charged to borrowers.  This funding of the affordable housing initiatives will be paid for with these increased fees which will be collected from current and future borrowers.

Home owner taxpayers are paying more for their mortgages in order to fund social programs that they are, for the most part, unaware of.

Dodd-Frank limits what I can charge you for your mortgage and mandates my full disclosure to you, of all charges you are paying. I am subject to dire financial consequences if I, or my staff, do not fully comply with these disclosure regulations.

Why is Congress not required to fully disclose it's actions to it's taxpayers?

Did you know that, in addition to the taxes you are paying, several extra dollars are being added to your mortgage closing costs in order to fund  public and low income housing grants?  Did you?
I believe that maintaining Fannie Mae and Freddie Mac is probably worth using them as a conduit for the distribution, to low income tenants, of these extra charges to home buying taxpayers.  It would just be nice for our lawmakers to have to play by the same “transparency” rules that we in the mortgage industry have been mandated by them to follow.

Tuesday, December 23, 2014

Why So Many Reverse Mortgage Ads

My buddy Mark Fogarty noted, in his recent column in the National Mortgage News, that the U.S. Census Bureau’s American Housing Survey states that there are:

  • 76 million owner occupied homes in the U.S.
  • 49 million have a mortgage
  • 27 million homes are free and clear
  • Seniors own 14 million free and clear homes
  • Only 421,000 seniors have a reverse mortgage

Now I know why we are seeing so many reverse mortgage ads on television.  They are the sweetest of the mortgage opportunity sweet spots.

Tuesday, December 16, 2014

Concierge Program with Victoria Robinson

This home has been enrolled in our concierge program.  Take a look and see how we are helping get this property sold.  Listed by Victoria Robinson with Coldwell Banker Legacy.

http://2518caminocatalonia.utour.me/


Sunday, December 14, 2014

FHA Fundings In 2014



FHA fundings will decline again in fiscal 2014 and are projected to continue to drop to their lowest levels since 2004.  HUD forecasted 2014 FHA fundings at $191 Billion.  Actual fundings came in at $134 Billion, down 30% from initial projections.
HUD independent auditors project fundings dropping again in 2015 to $124 Billion and again to $113 Billion in fiscal year 2016.

Why?  FHA’s insurance premiums are at their highest point ever.  The recent increases in FHA insurance can cost a home buyer between $200 and $400 more per month more than ever before.

Concerned industry advocates, including the National Association of Realtors and the Mortgage Bankers Association are appealing to legislators to agree to immediately lower FHA premiums.  They cite tens of thousands of potential homebuyers are being priced out of the housing market.

Congress is reticent to do so, noting that although there has been significant financial improvement at HUD, their statutory required capital ratio of 2% will not be fully met until late 2016.

So, we now find FHA loans being adversely selected by borrowers who don’t quality for high ratio, lower cost Fannie and Freddie loan programs, which carry more stringent credit requirements than does FHA.

What effect do you think this phenomena will have on the FHA insurance fund going forward?  Adverse selection is never good and is usually the precursor of a negative experience.

Wednesday, December 10, 2014

Take A Vacation And Help The Economy!

Between 1976 and 2000, we Americans took an average of 20 vacation days.  Since then, we have averaged just 16 days a year.  These vacation days include national holidays so, when you factor out Christmas, New Year’s day, Thanksgiving, Memorial Day, Labor Day, Veterans day, Martin Luther King day etc.,  most Americans no longer take a two week vacation.

This means that Americans, on average, do not take 169 million vacation days a year.  This lack of vacationing costs the U.S. economy $275 billion, annually, in lost spending.  This equates to 1.7% of the country’s GDP, proving that time is money!

Thanks to Dr. Elliot Eisenberg for this one.

Monday, December 8, 2014

Good News For FHA

The Federal Housing Administration went from having a net worth of -$1.1 Billion to a current net worth of +$4.8 Billion.  That is a 500% improvement since the 2008-09 mortgage melt down.  The improvement has been gained on the backs of those who obtained FHA mortgages since 2008.  So, only those American taxpayers, who obtained a mortgage in the last 6 years, have paid the price to recapitalize FHA, not every American taxpayer as the politicians would have you think.

These relatively few American taxpayers paid for recapitalization with increased annual mortgage insurance premiums, which have risen to a whopping 1.35% of the mortgage, balance per year.  Now that FHA is recapitalized, there are a few in congress who are suggesting that the annual insurance premium be lowered in an effort to stimulate borrowing and home purchases.

Tuesday, December 2, 2014

Concierge Program - 10128 2nd St NW

This home has been enrolled in our concierge program.  Take a look and see how we are helping get this property sold.  Listed by Todd Havens.

This 1 acre property has a great location and tons of potential! Lots of land with tall, mature trees next to the MRGCD irrigation ditch. Seller says that an irrigation gate may be installed. All city utilities are on the property including new electrical service. There is a tall privacy fence surrounding the back yard. There are several old structures on the property, including many garage spaces and covered carports or horse stalls. All are old and/or in need of minor or major repair. Some residential areas may be restorable to living condition?? (with major renovation) Or, bulldoze and start over? Property has been used as residential and commercial business property in the past. There are many possible options. 

http://101282ndstreetnw.utour.me/


Sunday, November 30, 2014

2% Interest Rate On Your Mortgage

There is a new loan program in development that focuses on rapid equity growth, as opposed to low monthly payments for 30 years.  The program being developed uses the funds that would normally have been been used for a 3% or 5% down payment, to instead be used to buy down the interest rate on a 15 year mortgage.  In today's market, this strategy could get the rate down to 2%.  The crafters of this mortgage suggest a 100% LTV program that relies on the buy down investment and rapid equity growth as major incentives to keep borrowers paying as agreed.

This program could be of significant interest to millennial with dual incomes and minimal personal debt.  The payment would only be slightly higher than a 30 year fixed rate payment due to the low bought down interest rate.  A significantly shortened payment schedule and rapid equity growth speaks to the millennial affection for mobility, by assuring the quick marketability of a home with equity.

There are some regulatory hurdles…mainly the QM question regarding total allowable closing costs.  A re-definition of interest rate buy down points so as not to be included in QM calculation would go a long way in gaining secondary market interest in this product.

Wednesday, November 26, 2014

GDP Growth

The economy is slowly and steadily improving.  Gross Domestic Product (GDP) grew a healthy 3.5% in the 3’d quarter while employment wages and benefits rose by .7% in both the 2nd and 3rd quarters.

Wages and salaries rose by over 5% annually-adjusted in the 3rd quarter, as well.


The best news is that all these increases are not causing inflation to rise.  It’s been steady at 1.5% year over year, well within the Fed’s comfort level.

What does all this mean?

The economy is picking up steam without negatively affecting inflation … sooooo … no impetus for the Fed to raise interest rates.

Good news for us all.

Monday, November 24, 2014

Good Economic News



Here’s some good economic news.  The U.S. economy is performing well by comparison to many western industrialized countries.  'First time weekly claims for unemployment insurance' fell again and are remarkably low.  Existing home sales rose 1.5% and are at their highest level of the year. In addition, the Philadelphia Fed Manufacturing Index hit its highest level since 1993.  So, there is a lot of manufacturing going on, all while inflation remains level. Several positive signs for economic recovery.

Wednesday, November 19, 2014

FHFA and Lender Overlays

Mortgage lenders met at the White House with the administration and Mel Watt, Chairman of FHFA. The discussion centered around lender overlays that have been imposed in an effort to safeguard against loan re-purchase requests from the GSE’s for minor procedural mistakes and documentation errors that do not necessarily reflect on the borrowers’ ability to repay.

It appears that Mr. Watt will be allowing the mortgage industry a 3 year sunset period in which a 3rd party will evaluate GSE claims for re-purchase with regard to whether or not the lender made significant errors in documentation collection, credit evaluation or solving to an ability to repay.

I, for one, recently paid over $80,000 in costs to scratch & dent a loan file for re-sale that had been current for 3 years, went delinquent, was allowed to modify by the loan servicer, went into delinquency once again and finally was foreclosed upon.  I was told that an audit showed that we had made a material error in our credit analysis.

So, after 3 years of paying as agreed, the borrower loses his job, goes into foreclosure and it was deemed that a faulty credit evaluation on our part had led to the loss.

It doesn’t appear that this will happen as easily with the new agreement from Mr. Watt and the FHFA.  Couldn’t have come too soon for me.  The pendulum appears to be moving closer to center.

A less draconian and  more common sense approach to identifying the causes of loan non-performance will be welcomed by the entire mortgage industry.

Monday, November 17, 2014

The GSE's And The American Taxpayer

Regardless of what you’ve heard, Fannie Mae and Freddie Mac aren’t going anywhere.  The two GSE’s, vilified by an angry, albeit unknowledgeable press, as a major contributor to the mortgage credit collapse have weathered the storm.  After years of inquiry and reflection, the prevailing “urban legend” that the two GSE’s were playing Russian roulette, with the nations mortgage credit has been proved false.  The GSE’s, though flawed in some ways, were not culprits, but severely damaged when Countrywide and a few large investment bankers high jacked the mortgage industry.

Look for regulations to re-fund the agencies out of their current profits (which have been taken by the U. S. Treasury, each month, since the GSE’s were placed into receivership) and to create one mortgage backed security (MBS) to be used by both agencies, thus saving Freddie Mac close to $400m a year in Mortgage Adjustment Payments (MAP) that they are currently paying to subsidize the value of their MBS to match Fannie’s.  The loans perform the same...no need for two different securities.

The American taxpayer has enjoyed access to low cost mortgage credit via very effective and stable GSE’s since the late 1930’s. Don’t throw the baby out with the bath water.  Modify the business model, fix the operational disparities, regulate to eliminate potential transgressions and let’s got back to stimulating housing.

I am sick to death hearing about the multi-billion dollar bail out, how it cost American taxpayers so dearly and how Washington must make sure that it never happens again.

Fact:  all the bailout monies advanced to the mortgage industry have been repaid, with interest, in just 6 years.

Fact:  all American taxpayers did not pay for the bailout.  It was paid for by those few, who chose to obtain a mortgage to purchase a home since 2008. Those taxpaying homebuyers paid back the TARP advance by paying increased fees and costs to various government agencies to obtain their mortgages.

Fact:  the total advance of TARP funds to the mortgage industry was equal to the cost of one stealth bomber or one new navy cruiser.  No uproar from Congress or the President, about the poor American taxpayer, when the military makes these regular expenditures.

Opinion:  What better place for a government to return tax dollar benefits to its’ citizens than to be actively involved in contributing to the process of homeownership.  Congress and the President scream like stuck pigs that the government should get out of housing.  Why?  A healthy housing market drives the domestic economy.  When housing is strong, people are working.  Goods and services are mined, harvested, manufactured, sold, purchased and used in the homebuilding process. Homes are designed, appraised, built, inspected, marketed, sold, financed, titles transferred, city utilities hooked up, streets paved, curb & gutter poured….gee…..so many citizens involved and so many citizens so positively affected by the process.

Why shouldn’t our government continue to have line item expenditures, in the national budget, to support something as beneficial, to so many of its’ citizens, as housing?  

Thursday, November 13, 2014

Concierge Program - 9312 Holm Dursun Dr

Another listing in our Realtor concierge program.  This one is listed by Mary Romero with Berkshire Hathaway.  Doesn't it look great!

http://9312holmbursundrivenw.utour.me/

Well built, flowing floor plan. Formal Living rm and Dining room plus Den. Large lot plus spacious storage building. Freshly painted, some TLC has taken place. Property is ready for a quick closing. Jet tub in master bedroom. Wood burning fireplace in Living room. Brand new microwave oven. Excellent neighborhood!

Thursday, October 9, 2014

Testimonial From My Presentation At The Nebraska Mortgage Association

Thank you for speaking at the Nebraska Mortgage Association 2014 Annual Fall Conference.  We are excited by the outstanding, positive response we have received.  As you know, the conference "sold out."

We are still collecting Evaluation Forms from our online survey, however the initial responses are very positive, with many ratings for your presentation "Excellent!".

Tuesday, September 23, 2014

Concierge Program - 5431 Hummingbird Ln

Here is another example of our concierge program, this time featuring a property listed by Carlos Martinez with Keller Williams.  The address is 5431 Hummingbird Lane.

Enjoy this low traffic corner lot in Oxbow Gated Community next to St. Pius. Neighborhood park right next to this home with lush green grass and maintained by the HOA. High ceilings and Custom features throughout the home with a very open floor plan. Tray ceiling in large master bedroom. Low maintenance backyard with pergola. Enjoy views of the Sandia Mountains. Owner financing available. 

- See more at: http://5431hummingbirdlanenw.utour.me/


Tell us what you think!

Saturday, September 20, 2014

Concierge Program - 4611 Baranca Rd



Frost Mortgage has a concierge program for Realtors.  Our goal is to offer you all the tools you need to market yourself and your properties.  This is one facet of that program, a website for your listing.  This one belongs to Sean Hellman with ReMax Elite.  

It is still in the early stages of development, but we are very excited.  What do you think?

http://4611barancaroadne.utour.me/

Monday, September 15, 2014

Prospect Alert

Frost Mortgage Banking Group has partnered with MonitorBase to bring you industry leading
consumer behavior information. MonitorBase gives you the tools you need to be in contact
with your clients at the right time, when they are willing AND able to purchase a home.



Contact us for more info and to get set up.

Monday, September 8, 2014

Direct Sales To Fannie And Freddie Are Up

Non-bank mortgage lenders are increasing their direct sales to Fannie Mae and Freddie Mac. Fannie purchased 475 (47.5%) of its business from non-bank mortgage lenders last year, up from 33% in 2012. Freddie saw increases to 20% in 2013 vs 8% in 2012. This is, no doubt, in response to a sharp decline in chartered bank mortgage originations during this same period. Both agencies are looking harder at the financial stability of these sellers than ever before. As a result, they have terminated several relationships with smaller, lower capitalized mortgage bankers. I’m feeling very secure (by) being a Division of PRMI, one of the strongest capitalized mortgage bankers in the business.

Wednesday, September 3, 2014

FHA Lawsuit Of Wells Fargo Upheld

FHA’s ability to sue Wells Fargo for “reckless origination and underwriting practices, that caused FHA to experience hundreds of millions of dollars in federal insurance payouts” has been upheld by the U.S. Court of Appeals. Wells Fargo had earlier entered into a 5 bank “limited settlement” of approximately $5b with FHA on another FHA suit and maintained that the settlement agreement in that case barred FHA from bringing additional lawsuits against the San Francisco based mega bank. 3 of the other 4 banks settled similar claims for about $2b.

So, while a multi-billion dollar settlement to FHA is eminent, it is not going to be anywhere near the hundreds of billions of dollars that FHA maintains it lost. It will be interesting, however, to see how much more settlement dollars it will cost Wells to put up this fight.

Tuesday, September 2, 2014

Lower Down Payments?

There is continued pressure on FHA, Fannie and Freddie to lower down payment requirements. Federal Housing and Finance Director Mel Watts, who has been a bright spot to lenders since taking over, did not include lower down payments in his strategic plan for 2014.  The reason that many give for the agencies resisting lowering DP’s is the overall quality of appraisals.  The federal agencies are very unsure of the quality of appraisals as delivered through the current AMC systems.  Everyone is aware that the AMC’s take a big cut of the appraisal revenue leaving less than half for the appraiser.  Many feel that appraisers in the AMC system(s) are lessor qualified and are being adversely selected because of their willingness to work for less. It is common knowledge that the AMC’s take up to ½ of the total appraisal fee.

We’re in a tough spot. The agencies found significant evidence of faulty value assessments and appraiser fraud on loans funded prior to 2009.  While fraud has been significantly curtailed, accurate value assessments are still a concern and the agencies are not comfortable with the current level of accuracy.

When the agencies purchase a loan of $193,000 on a home valued at $200,000, they really need to be able to feel confident that the house is worth at least $200,000 on the day they funded the loan, as there is precious little equity with which to hedge a loss.

Friday, August 29, 2014

Minority Borrowers

Minority borrowers will exceed 50% of all mortgage borrowers in the next 10 years, according to Mark Fogarty, Editor At Large, at National Mortgage News.  I had dinner with Mark last week and he shared several statistical analysis’ that support his supposition.  Mark also believes that the minority market, defined cumulatively as Blacks, Hispanics and Asians, will be primarily an entry level market.  Mark advocates a lowering of lending criteria to best serve this emerging borrower segment of the home buying public. He cites a conflict of agenda’s between the Executive Office calling for expanded lending practices and the Federal regulatory agencies tightening credit criteria, as well as failing to adequately explain penalty triggers in their new regulations that can be very costly to Lenders if inadvertently misapplied.  I agree with Mark that we are currently in a “catch 22”.  We need to step up our communication with our legislators through avenues like the MBA’s Mortgage Action Alliance and make our voice heard.

I started in this business way before FICO scores and Automated Underwriting Systems.  I long for the days when my Underwriter and  I would pull out the FHA 4155 or the Fannie Mae Guide and make a credit decision.  For the days that our decision was honored by those who purchased our loans and for the days that my risk of penalty and repurchase was limited to my or the borrower committing fraud.  Now I am being second guessed by AUS systems and live and die by FICO scores. In this mandated environment, I am subject to buy backs, fines and penalties at the whim of the investor and/or an untold number of federal agencies.  I am fully ready to expand my minority lending.  I know how to do it.  I am a Hispanic American, for crying out loud. And I will, just as soon as I see some sanity and consistency come back into the mortgage landscape.  

Thursday, August 28, 2014

National Mortgage News & Frost Mortgage Win Mortgage Finance Authority Awards

The New Mexico Mortgage Finance Authority recently held its biennial New Mexico Housing Summit in Albuquerque.  The National Mortgage News was honored with the Media Partner award for its coverage on affordable housing in New Mexico.  This was the fourth award the National Mortgage News has won for its coverage on affordable housing in the last two years.  Congratulations NMN!

At the same awards ceremony, which the National Mortgage News also happened to cover, they wrote this:

"Frost Mortgage Group in Albuquerque, N.M., won the MFA's Lender of the Year award for closing more than 200 MFA mortgages last year, the most of any lender in the state. Its president, Greg Frost Sr., who accepted the award, is a well-known national top originator and mortgage trainer."

I am honored to have received this award on behalf of Frost Mortgage.  Helping New Mexico's citizens across the spectrum of borrowers achieve their dream of owning a home is a joy and pleasure.

Read the full NMN article here

Wednesday, August 27, 2014

Regulated Loan Docs Are Growing Out Of Control!

I just reviewed a loan package and counted 238 printed pages stuck in a bulging manila file folder. I admit that 97 pages were tax returns but the remaining 141 pages were standard  loan application, addendums/borrower documentation/verification and disclosure forms for a VA, self-employed borrower loan. And all the while I thought that we were now in a paperless lending environment.  In ’72, when I took my first loan application, I recall 9 pieces of paper in a loan file and 1 of them was the 2 sided, long legal appraisal. Are we nuts?  Do the regulatory agencies really think that the Borrowers are any better “informed” today than they were back in ’72?

Tuesday, August 26, 2014

Fee Mistakes And "Right To Cure"

The big QM question about creating a method of curing fee mistakes, that exceed the allowable maximum, under QM regulations, is coming to the table.  The Mortgage Bankers Association and American Bankers Association have jointly asked the CFPB to allow a little more time for input, discussion and compromise.  Lenders have high hopes that they will come away with a regulation allowing a 180 day “right to cure” from the time the over charge is identified via any number of audits.

Currently, there is no method of curing such mistakes.  Lenders are now required, by regulation, to re-purchase the mortgage and re-originate it in a conforming manner. This is a draconian way to handle, what could be as little as a $150 miscalculation in closing costs.  The ability to cure would be fair to the consumer as well as limit borrowing costs, which would surely rise, as a hedge against the certainty of mortgage buybacks.  The right to cure will be a fair and equitable economic response that is more in line with the spirit of the regulation. 

Monday, August 25, 2014

Military Personnel Not Utilizing VA Financing

There are over 14m Vets and active duty military personnel who have not taken advantage of VA financing. VA notes changes on the horizon that could change that.  In an effort to overcome hesitancies by Realtors, Builders and Mortgage Originators to promote/accept the VA product on their transactions, the Veterans Administration is responding by:

1) Stepping up Appraiser approval processes to overcome appraisal time delays.  More VA appraisers are being approved every month.

2) The VA will soon offer guidelines clarifying negotiable fees to the seller, an area long criticized by the real estate community as non- competitive, by making sellers bear a substantial list of closing costs that are normally negotiable.

3) Increased communication to the real estate and mortgage industries allowing input from the marketplace in an effort to increase utilization of the product. VA is pledging much more back and forth dialogue.

The VA insured a record 629,300 mortgages in 2013.  $20m VA guarantees were issued in the first quarter of 2014.  As the consumer costs rise at Fannie, Freddie and FHA, there is an opportunity for the VA product to become more competitive and more utilized.

Friday, August 22, 2014

FHFA and G Fees

The Federal Housing Finance Administration (FHFA) extended its deadline for industry comments on G fees that are charged by Fannie Mae and Freddie Mac  on loans sold to them.  The MBA and 19 other trade associations, including Homebuilders, Realtors, The National Urban League, National Housing Resource Center etc., have presented their comments and calculations showing how many buyer/borrowers are excluded from home ownership because of the record high fees currently being charged, as well as their, proposed increases.

Wednesday, August 20, 2014

G Fee Increase

Are you aware that the President saddled new home buyers with a ½ point G fee increase last year, to run for 10 years, in order to cover Treasury revenue shortfalls during the government shutdown? He discovered this brand new “G fee honey bucket” and now wants to dip into it, once again.  He plans for homebuyers to provide extra funds to the Treasury, via increased G fee charges, that will only be paid by those who buy or refinance a home with a FNMAE/FHLMC loan until 2023.  Didn't our forefathers go to war with England because of “taxation w/o representation”.  Were you ever asked if you were willing to pay an extra $1000 a year on your $200,000 FNMAE/FHLMC loan for this purpose?  You realize that this extra government funding will only be collected from, and paid by, those who obtain a FNMAE/FHLMC home loan until 2023.  That’s a very small % of total “citizens”, and a very large % of those that the President and his team keep telling us they are trying to protect, with all their new mortgage regulations, who will affected.  Those citizens, who do not purchase a home with a FNMAE/FHLMC loan between now and 2023, won’t be paying for any of it.  So, the government is doing all it can, via new mortgage regulations, to “protect” the citizen/borrower, but first, let’s charge them more for their mortgage loan.  More than ever before.

Tuesday, August 19, 2014

Hedge Funds And Walgreens

It was reported that several hedge funds lost big when Walgreens decided not to re-incorporate in a foreign country in an effort to dramatically lower their U.S. taxes. They were consulting Walgreens to leave the U.S., were betting on a positive bump in the stock after the announcement, and were stunned by Walgreens reversal.  Gee, don’t you just feel terrible for those Wall Street vipers?  I guess there will be no remodeling of their East Hampton beach houses this year.

Monday, August 18, 2014

Who Benefits From Lawsuits Against The Big Banks?

Bank of America agreed to pay $17b in fines to the Justice Department over mortgage misdeeds at Merrill Lynch and Countrywide, most of which took place prior to B of A’s purchase. They bought the 2 dogs and got the fleas. This adds to the $60b they have already paid and should about wrap up their “mortgage crises” penalty liability.  Here’s my question: Who is the beneficiary of all this money?  Are the consumers, who were sold these toxic mortgages, getting reductions in their mortgage balances or lower interest rates or monthly payments?  Hell no, these settlements, that are touted to show that your government is protecting you, are fines and penalties imposed by federal regulatory agencies via law suits brought on behalf of the national and international investment companies who purchased these toxic mortgage products from Merrill and Countrywide.  The federal agencies aren’t looking out for Mr. and Mrs. Homebuyer…I suggest that they’re collecting fines and penalties to fund their federal agency first, and possibly to recompense investment banks and/or hedge funds for their losses.  The consumer is way down the food chain on all of this and those, who by some miracle, have managed to hold on to their homes, as their monthly payments skyrocketed, will get little or no relief.  Wonderful, just wonderful.

Defaulted FHA Loans

Did you know that co-borrowers on defaulted FHA loans are not being noted and listed?  In some instances co-borrowers, on previously defaulted FHA loans, have been granted new FHA insured loans, as the primary borrower within days of foreclosure.  This is an interesting glitch in FHA’s CAIVRS system which provides lenders with qualification data on potential borrowers on FHA loans in process. 

Thursday, August 14, 2014

Foreclosure Inventory

Core Logic reports that 4.4% of all home loans in America were seriously delinquent in May, however, this number is down 23.9% from May, 2013. 660,000 homes are currently in foreclosure, down from a million in 2013. The reduction of foreclosure inventory is most evident in states with non-judicial foreclosure laws. Foreclosure inventory in these states, as a percentage of total mortgages in place, is half of what it is in states that require a judicial foreclosure process.

Wednesday, August 13, 2014

Foreclosures Down, Still Long Way To Go

Foreclosures stood at 47,000 in May, down for the 31st straight month and at their lowest level since 2007. While things are certainly moving in the right direction, it is sobering to note that prior to 2006 the average foreclosures per month were 21,000, so we still have a long way to go.   

The Cost Of FHA

The cost of a seat at the table to originate FHA loans has increased, once again.  Mortgage Bankers who wish to originate FHA product must keep a cumulative net worth equal to the sum of net worth requirements for each FHA loan type they wish to originate.  For example the net worth requirement for a lender wanting to originate standard Single Family and Reverse Mortgages (HMBS) will need a minimum net worth of $7.5m.  Once upon a time you only needed $1m net worth to get in the game.  Not so these days. Industry consolidation is well under way.  

Tuesday, August 12, 2014

On HUD Being Vilified


I just read an article the other day, which vilified the mortgage industry because the Fed had to invest $1.7b in HUD to maintain its’ reserves (said investment will be fully repaid to the Fed by HUD by November). This Fed loan was typified in the article as a terrible thing. My concern is with the tone and presumption of negativity with which these articles are regularly written.  I wonder why an investment in housing the citizens of the U.S. is so demonized?  What is so bad about the government, from time to time, making a temporary investment in housing its citizens?  Why must HUD be vilified for needing this temporary help?  What else in government pays its’ way, like housing? Why is the spending of a hundred million here or a hundred million there on remodeling government office buildings (CFPB headquarters), or a billion on a new airplane or cruiser or new regulatory agency (CFBP) not put under the same microscope?

Here HUD functions for 80 years, quite well I might add, stimulating the housing and real estate industry, and along with it the economy by making home ownership a reality for millions of Americans and once, during the 80 years, the Fed is asked for temporary funds to help HUD get past a rough spot and Congress and the President scream, at the top of their lungs, that the American people must be protected from any future malfeasance by HUD and the mortgage industry.

This just doesn’t make any sense.  How about Congress protecting us from ongoing Wall Street corruption, from the perennial billions spent on social engineering around the world, from the ongoing billions spent on getting us into unnecessary wars, from the billions lost to the devaluation of our currency, from the inequity of taxation, the ridiculous IRS system, the intrusion into our private lives under the guise of protecting us etc., etc.  The mortgage industry has contributed, for more than 80 years, to the housing of America.  Congress and the President need to stop this irrational, negative posturing and let us get back to our business.  There’s a reason why fewer Americans are buying homes than ever before and it’s not the mortgage industry.

Monday, August 11, 2014

More Mortgage Company Mergers On The Horizon

Look for more mergers of mortgage companies as the rising costs and increasing liabilities of the compliance monster, along with continued pressure on existing earnings models makes “going it alone” an unattainable option. In addition net worth requirements, to keep a seat at the investor table, continue to rise. Once upon a time, the mortgage banking industry was a private practice between mortgage lenders, bank and insurance company investors and the GSE’s.  Now, the proverbial government gloppity, glop regulation machine, under the premise of protecting its' citizens, has, once again, overreacted to what was a temporary aberration of excess. A blip which occurred, but once, in the 80 year history of the mortgage industry.  I maintain that over compliance has caused more strife and put more costs on the consumer than the value of problems it has resolved.  Wouldn’t it have just been easier to put Angelo and his Wall Street cronies, who devised, marketed and sold those toxic mortgage programs, in jail?  Then, after replacing those avarice driven CEO’s of the GSE’s and withdrawn their golden parachutes for cause, we could have gone back to the mortgage industry as it was and had been. A noble partnership between the private and public sector, which housed this country.

Thursday, August 7, 2014

Helen Mirabal Is One Of A Kind

“Helen is amazing!  She exceeded every expectation by a factor of 10!  She went above and beyond to make our buyers dream come true. There were a lot of obstacles in this transaction and Helen addressed every one of them with diligence.  Helen is one of a kind!", says Jen Cody Martin with Rhino Realty.  

Monday, August 4, 2014

Excellent!



“Luke Gutierrez provided timely and good updates on the status of the Buyer’s loan. The overall experience was great.” says Listing Agent Veronica Gonzales. 

Buyer/Borrower Jason Pearcey agreed and ranked Luke’s effort as “excellent”.  

Thursday, July 31, 2014

Heather Foote and RayLee Homes

“Excellent communication! Heather Foote returned every single email and phone call on the same day…says Buyer/Borrower Brian Honer.”  



Home Builder, Scott Grady agreed, ranking Heather’s service as “excellent”.

Wednesday, July 30, 2014

Kind Words From Theresa Jacobson

Matt Berg was amazing!  He kept us informed thru the whole process, even reminding me to set up closing with title.  The other agent was very impressed as well.


~Theresa Jacobson

Wednesday, July 23, 2014

Dean Ellison Was Very Knowledgeable - Dorothy Lopez


Dean Ellison was great! Very knowledgeable, prompt and let us know what was going on every step of the way.

~Dorothy Lopez

Tuesday, July 22, 2014

Nita Was Responsive - Chuck Peterson

I appreciate Nita’s weekly progress reports. She was responsive when I called, returning my calls.





Thursday, July 17, 2014

Matt Berg Is Awesome! - Nancy Bowers

Matt Berg is awesome!  I can always count on him to take great care of my customers.  Always a pleasure!!