tag:blogger.com,1999:blog-76672239718800224852024-03-12T19:07:54.928-07:00Money TalkThis is a blog from Preston Ware ,mortgage banker for Main Street Financial 561-329-0075 I am a full service mortgage banker doing business in the state of FloridaPreston Warehttp://www.blogger.com/profile/02567028446074677398noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-7667223971880022485.post-45517961593567384832012-04-25T15:56:00.002-07:002012-04-25T15:56:46.059-07:00Could I have a 203K with that short sale?Why not. I'll take a new roof with that house. New Appliances.
The 203K is one of my favorite loans because the customer gets home ownership and the added bonus of putting their signature on the property right from the beginning. I remember way back when when I built my house via construction perm it was fun acting as the designer and the purchaser. The same thing happens with the 203K but to a lessor extent. In the case of the 203K loan you are only fixing the kitchen or the bathrooms or something along those lines. For a list of what is eligible and what is not eligible go here. http://www.prestonware.com/FHA203Kmortgageflorida
The 203K allows for up to $35,000 in certain types of home improvements for both purchases and refinances. Personally, if I went through the trouble of the short sale process, I would insist on this loan because in many cases the property may be comprimized. $35,000 allows for a lot of rehabbing.
The 203K mortgage is a great FHA loan product but there are some adjustments to pricing for the program. The closing costs are about $300 higher because we need to order an inspection or two but the rate is probably on the average .5% higher than a regular FHA loan. I think it is worth it.
Here I created a basic page that displays the program and all the necessary contacts in Palm Beach County. http://www.palmbeachcounty203kprogram.com/
Please feel free to call with any question you may have. 561 329-0075
Thank you
Preston Ware
Main Street FinancialPreston Warehttp://www.blogger.com/profile/02567028446074677398noreply@blogger.com0tag:blogger.com,1999:blog-7667223971880022485.post-90610493245835227442011-07-26T11:31:00.000-07:002011-07-26T11:32:56.608-07:00Jumo and Super Jumbo MortgagesFlorida Mortgage Blog<br />Florida Jumbo and Super Jumbo Mortgages<br />June 28th, 2011 5:25 PM<br />Florida Jumbo Mortgages and Florida Super Jumbo Mortgages have improved quite a bit in pricing and flexibility. Just the fact that banks are offering them again is good but actually the pricing I am looking at is amazing. Recently I have been shopping super jumbo 5/1 ARM's in the 4's and even Super Jumbo loans on investment properties in the 4's! Many of these sources will require the borrower to pay a point but that is O.K considering the substantial savings.<br /><br />Of course there is always a little more money down on a jumbo loan but these adjustable rate prices are great. http://www.prestonware.com/JumbomortgagesFlorida Anyone considering a refi has probably lost a little value but already has "a lot of skin in the game."<br /><br />This is indicative of a larger trend that many of our bread and butter programs that disappeared are slowly coming back. I am also seeing evidence of some good foreign national programs around but that is another blog for another day.Preston Warehttp://www.blogger.com/profile/02567028446074677398noreply@blogger.com1tag:blogger.com,1999:blog-7667223971880022485.post-53070844776624776042009-07-27T07:29:00.000-07:002009-07-27T07:32:28.126-07:00Repeal the Home Valuation Code of Conduct<meta equiv="Content-Type" content="text/html; charset=utf-8"><meta name="ProgId" content="Word.Document"><meta name="Generator" content="Microsoft Word 11"><meta name="Originator" content="Microsoft Word 11"><link rel="File-List" href="file:///C:%5CDOCUME%7E1%5CPete%5CLOCALS%7E1%5CTemp%5Cmsohtml1%5C01%5Cclip_filelist.xml"><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="State"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="place"></o:smarttagtype><!--[if gte mso 9]><xml> <w:worddocument> <w:view>Normal</w:View> <w:zoom>0</w:Zoom> <w:punctuationkerning/> <w:validateagainstschemas/> <w:saveifxmlinvalid>false</w:SaveIfXMLInvalid> <w:ignoremixedcontent>false</w:IgnoreMixedContent> <w:alwaysshowplaceholdertext>false</w:AlwaysShowPlaceholderText> <w:compatibility> <w:breakwrappedtables/> <w:snaptogridincell/> <w:wraptextwithpunct/> <w:useasianbreakrules/> <w:dontgrowautofit/> </w:Compatibility> <w:browserlevel>MicrosoftInternetExplorer4</w:BrowserLevel> </w:WordDocument> </xml><![endif]--><!--[if gte mso 9]><xml> <w:latentstyles deflockedstate="false" latentstylecount="156"> </w:LatentStyles> </xml><![endif]--><!--[if !mso]><object classid="clsid:38481807-CA0E-42D2-BF39-B33AF135CC4D" id="ieooui"></object> <style> st1\:*{behavior:url(#ieooui) } </style> <![endif]--><style> <!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; 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mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </style> <![endif]--><p><meta equiv="Content-Type" content="text/html; charset=utf-8"><meta name="ProgId" content="Word.Document"><meta name="Generator" content="Microsoft Word 11"><meta name="Originator" content="Microsoft Word 11"><link rel="File-List" href="file:///C:%5CDOCUME%7E1%5CPete%5CLOCALS%7E1%5CTemp%5Cmsohtml1%5C01%5Cclip_filelist.xml"><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="State"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="place"></o:smarttagtype><!--[if gte mso 9]><xml> <w:worddocument> <w:view>Normal</w:View> <w:zoom>0</w:Zoom> <w:punctuationkerning/> <w:validateagainstschemas/> <w:saveifxmlinvalid>false</w:SaveIfXMLInvalid> <w:ignoremixedcontent>false</w:IgnoreMixedContent> <w:alwaysshowplaceholdertext>false</w:AlwaysShowPlaceholderText> <w:compatibility> <w:breakwrappedtables/> <w:snaptogridincell/> <w:wraptextwithpunct/> <w:useasianbreakrules/> <w:dontgrowautofit/> </w:Compatibility> <w:browserlevel>MicrosoftInternetExplorer4</w:BrowserLevel> </w:WordDocument> </xml><![endif]--><!--[if gte mso 9]><xml> <w:latentstyles deflockedstate="false" latentstylecount="156"> </w:LatentStyles> </xml><![endif]--><!--[if !mso]><object classid="clsid:38481807-CA0E-42D2-BF39-B33AF135CC4D" id="ieooui"></object> <style> st1\:*{behavior:url(#ieooui) } </style> <![endif]--><style> <!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman";} a:link, span.MsoHyperlink {color:blue; text-decoration:underline; text-underline:single;} a:visited, span.MsoHyperlinkFollowed {color:purple; text-decoration:underline; text-underline:single;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> </style><!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </style> <![endif]--> </p> <p class="MsoNormal">Three advantages I have as a mortgage broker over a large bank are speed, pricing and service. If you really think about it, those are the three components that separate any service business from another. The recently implemented Home Value Code of Conduct (HVCC) legislation has succeeded in worsening speed, pricing and service received for any individual obtaining mortgage financing. The HVCC will also succeed in putting many small business owners, (real estate appraisers) out of business. This change in the way banks do business stems from guidelines set by <st1:state st="on"><st1:place st="on">New York</st1:place></st1:state> State attorney general Andrew Cuomo. HVCC guidelines do not apply to FHA financing where a borrower typically borrows 96.5% but only applies to Fannie Mae and Freddie Mac financing where the borrower typically borrows 80% financing. (You would think it would be the other way around)</p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal">The Home Valuation Code of Conduct (HVCC) is legislation that passed in March 2008 and became effective on May 1<sup>st</sup>, 2009. From that moment forward all real estate appraisals for Fannie Mae and Freddie Mac mortgage loans are now ordered through the bank’s appraisal management company rather than by the mortgage originator. The intent of this legislation is to prevent “persuasion” coming from the mortgage originator on the value of the property. <span style=""> </span>Prior to this, a financial institution would call up their favorite appraiser and place the order. What’s the big deal you ask? Here are examples of how this legislation, raises price for the consumer and lowers service levels and will help to effectively put many small business owners out of business. <span style=""> </span></p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal">Appraisers, like mortgage people or realtors have been struggling for the last several years due to the difficult market. This legislation effectively takes away 40% of the appraisers business. I have known appraisers who have done a fine job for 25 years. They focus on service and doing the job in a timely manner and being as accurate as possible. Now their base of repeat customers can no longer call them up and use them on a Fannie Mae or Freddie Mac transaction. How would you like it if you were an AC technician and you had 200 customers, then one day the state tells you that you no longer can visit those people unless the compressor company sets the appointment for you. Twenty-five years of hard work and customer service has just been thrown out the window.</p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal">The Home Valuation Code of Conduct raises costs to the customer and reduces the appraisers pay and creates inefficiencies. Where $350 used to be the going rate for an appraisal now the cost is $400. The appraisal management company skims $100 of the top just for picking a random appraiser. If the bank tries to honor the old price, this means the appraiser who once made $350 per job is now making $250 per job. Now we are more likely to have a less experienced appraiser, who doesn’t care about service because there is no link between doing a fine job and his next order. He is less likely to put as much time into the job because he is getting paid less. Turn around times which used to be five days are now two weeks. This may force the mortgage broker to extend the lock which costs the consumer even more money and frustration. Just last week, I had a purchase where the sloppy appraiser misread the contract price. I had no way of telling him he made a mistake. The bank never fixed the mistake and it cost my client an additional $800 out of pocket. Under the HVCC, if a customer chooses to switch lenders, they have to start all over and pay for a brand new appraisal from a different random guy. It used to be we could transfer an appraisal from one bank to another if we found a better interest rate for the customer.</p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal">There is a petition going around that is a protest to this HVCC legislation. Please sign it on line. I have placed it on my web site and I am also placing it at the bottom of this article. This is just another example of how government intervention doesn’t necessarily always help the big picture. Another example of how mortgage brokers are being portrayed as the villains in this whole mortgage meltdown. Another example of how the large lending institutions, with their lobbyists, are pushing out the small business owner. </p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal" style="background: white none repeat scroll 0% 0%; margin-bottom: 12pt; line-height: 19.2pt; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;"><span style=";font-family:Arial;font-size:10;" lang="EN">You can add your name to the petition at </span><a href="http://www.hvccpetition.com/">http://www.hvccpetition.com/</a></p> <p class="MsoNormal" style="background: white none repeat scroll 0% 0%; margin-bottom: 12pt; line-height: 19.2pt; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;"><span style=";font-family:Arial;font-size:10;" lang="EN">Written by <st1:place st="on">Preston</st1:place> Ware
<br />First South Mortgage
<br />Tel: 704-542-8057
<br />* <a href="http://www.prestonware.com%20/">http://www.prestonware.com</a>
<br />Email is preston@prestonware.com.<o:p></o:p></span></p> <p class="MsoNormal"><o:p> </o:p></p>
<br /><o:p></o:p><p></p> <!--/nodeContent--> <p class="MsoNormal"><o:p> </o:p></p> <!--/nodeBody--><!-- google_ad_section_end -->Preston Warehttp://www.blogger.com/profile/02567028446074677398noreply@blogger.com0tag:blogger.com,1999:blog-7667223971880022485.post-22533207080036051602009-07-21T07:07:00.000-07:002009-07-21T07:08:08.670-07:00Bernanke Testifies Today<h1 class="CommonTitle" style="padding: 20px 0px 0px;">The Day Ahead: Bernanke Testifies in Biannual Policy Meeting</h1> <div class="BlogArticleByline"> by <a href="http://www.mortgagenewsdaily.com/members/prmcgee/default.aspx">Patrick McGee</a> </div> <div class="BlogArticleDateline"> Posted Jul 21 2009, 08:51 AM <div style="padding-top: 2px;"> <script type="text/javascript"> function AddCurrentFavorite() { var url = document.URL; var title = document.title + ' - Mortgage News Daily'; if(document.all) window.external.AddFavorite(url, title); else if(window.sidebar) window.sidebar.addPanel(title, url, ""); } </script> <script type="text/javascript" src="http://w.sharethis.com/widget/?button=false&tabs=email&charset=utf-8&style=default&publisher=5a9d8c5e-76aa-457e-bd76-baa8d5725933"></script> <script language="javascript" type="text/javascript"> //Create your sharelet with desired properties and set button element to false var object = SHARETHIS.addEntry({ summary: 'Check out this article from Mortgage News Daily. To Join the Mortgage News Daily Community, go to https://www.mortgagenewsdaily.com/user/CreateUser.aspx' }, { button: false }); //Output your customized button document.write('<span id="share"><a href="javascript:void(0);"><img src="/Themes/mnd/images/email_small.png" alt="" style="border-width:0px;" /> Email Page</a></span>'); var element = document.getElementById("share"); object.attachButton(element); </script><span st_page="home" id="share"><a href="javascript:void(0);"><img src="http://www.mortgagenewsdaily.com/Themes/mnd/images/email_small.png" alt="" style="border-width: 0px;" /> Email Page</a></span> | <a href="javascript:window.print();"><img src="http://www.mortgagenewsdaily.com/Themes/mnd/images/printer.png" alt="" style="border-width: 0px;" /> Print</a> | <a href="javascript:AddCurrentFavorite();"><img src="http://www.mortgagenewsdaily.com/Themes/mnd/images/bookmark_add.png" alt="" style="border-width: 0px;" /> Bookmark</a> </div><hr /> </div> <p><span>In anticipation of Federal Reserve chairman Ben Bernanke’s biannual testimony to Congress, markets are poised to begin the Tuesday session looking up. The bondholder rescue of CIT Group has also boosted sentiment, and yesterday’s upgraded forecast from Goldman Sachs on the S&P 500 hasn’t hurt either.</span></p> <p><span>The main event today is Bernanke’s testimony at 10 am. Stealing his own thunder, however, Bernanke hit on all the key themes in an op-ed published in the Wall Street Journal this morning. The Chairman said the central bank has all the tools it needs to tighten monetary policy when the economy improves, but, crucially, he said that conditions won’t warrant a tighter policy for an “extended period.”</span></p> <p><span><b>Bernanke Confronted ‘Exit Strategy’ Concerns Head On: </b>“...as economic recovery takes hold, we will need to tighten monetary policy to prevent the emergence of an inflation problem down the road…. We are confident we have the necessary tools to withdraw policy accommodation, when that becomes appropriate, in a smooth and timely manner….When the time comes to tighten monetary policy, we must either eliminate these large reserve balances or, if they remain, neutralize any potential undesired effects on the economy.”</span></p> <p><span><b>Don’t Expect Policy to be Tightened Soon: </b>“...</span><span>the Federal Reserve has many effective tools to tighten monetary policy when the economic outlook requires us to do so. As my colleagues and I have stated, however, <b>economic conditions are not likely to warrant tighter monetary policy for an extended period.”</b></span></p> <p>Bernanke's strategy takes four steps. <i><b>First</b></i><i>, the Federal Reserve could drain bank reserves and reduce the excess liquidity at other institutions by arranging large-scale reverse repurchase agreements with financial market participants … </i><i><b>Second</b></i><i>, the Treasury could sell bills and deposit the proceeds with the Federal Reserve … </i><i><b>Third</b></i><i>, using the authority Congress gave us to pay interest on banks’ balances at the Fed, we can offer term deposits to banks—analogous to the certificates of deposit that banks offer their customers </i>(a.k.a. the Fed selling debt although it will be called a CD instead of a bill or CP)<i>… </i><i><b>Fourth</b></i><i>, if necessary, the Fed could reduce reserves by selling a portion of its holdings of long-term securities into the open market.</i></p> <p>Analysts at BMO Capital Markets point out that asset sales are the fourth step, meaning that the Fed "wants to minimize the impact of its liquidity removal on term rates." </p> <p><span>Reacting to Bernanke’s Op-Ed piece, Lloyds TSB Corporate Markets economist Kenneth Broux said: "Suspense is gone and speculation quelled that the Fed is planning to exit quantitative easing soon."</span></p> <p><span>No major data is scheduled for the rest of the day, but markets will still be glued to the Q&A with Ben Bernanke on Capitol Hill, which begins on the House today and continues in the Senate tomorrow.</span></p>Preston Warehttp://www.blogger.com/profile/02567028446074677398noreply@blogger.com1tag:blogger.com,1999:blog-7667223971880022485.post-1810300640138914972009-07-21T07:02:00.000-07:002009-07-21T07:04:19.540-07:00Beware of Mortgage Modification Specialists<table id="retweet"><tbody><tr><td>Follow me on twitter mortgagesusa123<br /></td> <td id="twitter"></td> </tr></tbody></table> <!-- google_ad_section_start --> <div class="nodeTeaser"> <p>Many of the same predatory lenders who took <a itxtdid="10741713" target="_blank" href="http://www.huliq.com/1/83770/beware-mortgage-lenders-back-modification-specialists#" style="border-bottom: 0.075em solid darkgreen ! important; font-weight: normal ! important; font-size: 100% ! important; text-decoration: underline ! important; padding-bottom: 1px ! important; color: darkgreen ! important; background-color: transparent ! important; background-image: none; padding-top: 0pt; padding-right: 0pt; padding-left: 0pt;" classname="iAs" class="iAs">advantage</a> of unsuspecting borrowers with questionable loans are still out there taking advantage of the same customers with mortgage modification schemes. If you truly believe you are in need of a mortgage modification, here are some red flags for you. </p> </div> <!--/nodeTeaser--> <div class="nodeBody"> <p>Here are several things to watch out for from dubious mortgage modification specialists. First, avoid someone who tells you to purposely not pay your mortgage. Avoid someone who collects monthly payments while you attempt to modify. Some modifications can take as long as 8 months. The fee should be a flat fee that is placed into an escrow account until your modification is approved or denied.</p> <p>Avoid a modification company who has a fee over $2000. I have heard of fees as high as $5000. If you are in foreclosure, you will need a foreclosure attorney which costs more but still fees that high are unnecessary. Avoid someone who tells you they can guarantee anything, especially lowering the principal balance.</p> <p>Never sign the title of your home over to anyone. If you succeed in your modification, you will be asked to sign a mortgage modification agreement generated by your current bank at the end of the process.</p> <p><em>Here are some traits of a mortgage holder who has a chance for a successful mortgage modification:</em></p> <p>The total debt ratio of the household should be about 100%-120%. That is the sum total of every bill paid each month. The <a itxtdid="10733901" target="_blank" href="http://www.huliq.com/1/83770/beware-mortgage-lenders-back-modification-specialists#" style="border-bottom: 0.075em solid darkgreen ! important; font-weight: normal ! important; font-size: 100% ! important; text-decoration: underline ! important; padding-bottom: 1px ! important; color: darkgreen ! important; background-color: transparent ! important; background-image: none; padding-top: 0pt; padding-right: 0pt; padding-left: 0pt;" classname="iAs" class="iAs">banks</a> know from statistical averages that if a customer is deeper in debt than this, chances are they will not succeed even with a mortgage modification.</p> <p>Banks want to understand the problem, and hopefully see the fix. E.g. Someone who was out of work who recently became employed again. Tell this to them is a hardship letter.</p> <p>Your chances they will listen improve if you have a costly adjustable rate mortgage that just adjusted upwards. Your chances they will listen improve if you are upside down on the value of your home.</p> <p>Your chances they will listen improve if you are beginning to get behind on your mortgage payments.</p> <p>Do not talk to the collection department; ask to be transferred to the loan mitigation department.</p> <p>On March 4, 2009, our government came out with a standardized set of rules for mortgage modifications in the form of the Home Affordable Modification Program. This legislation has two key components. One is to provide a standardized set of rules for bank’s to follow when determining if a customer should be entitled to a mortgage modification. The other half of this legislation is the home affordable loan program designed for customers with limited equity in their home and good credit. </p> <p>Prior to this legislation, Bank #1 would act one way modifying <a itxtdid="10733981" target="_blank" href="http://www.huliq.com/1/83770/beware-mortgage-lenders-back-modification-specialists#" style="border-bottom: 0.075em solid darkgreen ! important; font-weight: normal ! important; font-size: 100% ! important; text-decoration: underline ! important; padding-bottom: 1px ! important; color: darkgreen ! important; background-color: transparent ! important; background-image: none; padding-top: 0pt; padding-right: 0pt; padding-left: 0pt;" classname="iAs" class="iAs">loans</a>, Bank #2 would act completely differently and Bank #3 wouldn’t do anything at all. Now the modification departments of these banks have a standardized set of guidelines to follow which include cash incentives for each modification granted. </p> <p>The <strong><a href="http://www.huliq.com/1/81995/making-home-affordable-explains-modification">Home Affordable Mortgage Program</a></strong> allows a customer with a loan to value between 80% to 125% to refinance into one of today’s excellent low fixed rates.(Around 5%) Any mortgage holder who obtained their mortgage in the spring and summer of 2006 and 2007 should be looking at this option. </p> <p>At that time, <strong><a href="http://www.huliq.com/tags/mortgage-rates">mortgage rates</a></strong> were in the mid to upper 6’s. The best part about this mortgage loan program is that there is no costly mortgage insurance which makes the payment higher. To qualify, the borrower must have an existing Fannie Mae loan, be current on their mortgage and fit the normal criteria for proving income. So often I am approached by clients who are pondering a mortgage modification when in fact they qualify for this mortgage loan program with a low fixed mortgage rate. This loan will benefit customers who bought their homes a few years ago and put the 20% down, and then declining values withered away their equity. This avenue is designed for the responsible borrower who pays their bills on time. To determine whether or not you have an existing Fannie Mae loan, I placed a Fannie Mae lookup link on my web site. This option is better than a mortgage modification because you will receive a 30 year fixed interest rate. Many mortgage modification programs are only fixed for five years then become adjustable again. </p> <p>Written by Preston Ware<br />First South Mortgage<br />Tel: 704-542-8057<br />* <a href="http://www.prestonware.com/">http://www.prestonware.com</a><br />Email preston@prestonware.com.</p> </div>Preston Warehttp://www.blogger.com/profile/02567028446074677398noreply@blogger.com0tag:blogger.com,1999:blog-7667223971880022485.post-26301089936591479402009-07-17T10:25:00.000-07:002009-07-17T10:30:59.289-07:00Banks Positive News Sends rates Up<div class="nodeTeaser" itxtvisited="1"> <p itxtvisited="1"><span style="font-size:130%;"><span style="font-weight: bold; font-family: times new roman;">As published on Huliq News</span></span> http://www.huliq.com/1/83666/bank-positive-news-pushes-mortgage-rates-again<br /></p><p itxtvisited="1">Today Bank of America and Citigroup made news by reporting some healthy profits. Bank of America reported a $3.2 billion profit for the second quarter. Citigroup said it earned $4.3 billion during the same period. This follows other good news earlier this week issued by Goldman Sachs and <a class="iAs" style="border-bottom: 0.07em solid darkgreen; padding-right: 0px; padding-left: 0px; font-weight: normal ! important; font-size: 100% ! important; background-image: none; padding-bottom: 1px ! important; color: darkgreen ! important; padding-top: 0px; background-color: transparent ! important; text-decoration: underline ! important;" href="post-create.g?blogID=7667223971880022485#" target="_blank" itxtdid="10879764">JP <nobr id="itxt_nobr_0_0" style="font-weight: normal; font-size: 100%;">Morgan<img style="border: 0px none ; margin: 0px; padding: 0px; left: 1px; float: none; width: 10px; position: relative; top: 1px; height: 10px;" src="http://images.intellitxt.com/ast/adTypes/2.gif" width="10" height="10" /></nobr></a> Chase. This may not be good news for current mortgage rates.</p></div><!--/nodeTeaser--> <div class="nodeBody" itxtvisited="1"> <p itxtvisited="1">Good news from banks is always good news for our economy and we need that. Unfortunately good news from banks is quite often bad news in the short term for homebuyers out there purchasing their new home. As a rule, when I am coaching my clients and discussing their <a class="iAs" style="border-bottom: 0.07em solid darkgreen; padding-right: 0px; padding-left: 0px; font-weight: normal ! important; font-size: 100% ! important; background-image: none; padding-bottom: 1px ! important; color: darkgreen ! important; padding-top: 0px; background-color: transparent ! important; text-decoration: underline ! important;" href="post-create.g?blogID=7667223971880022485#" target="_blank" itxtdid="9190862">interest rate</a> on their mortgage, I tell them to follow along at home. Usually, a good day in the stock market is bad for my mortgage rates and vice versa. </p> <p itxtvisited="1">This is an oversimplified rule of thumb of course but it is a good general rule for the typical borrower who has many other details to follow and digest during the home buying process. The thinking here is that if we have a good economy and more people are in a position to buy, this creates more demand for mortgages and rates go up. If the economy is sluggish, there is less demand for mortgages which forces banks to lower mortgage rates to attract business.</p> <p itxtvisited="1">Another way to show the impact of good and bad economy on homebuyers is to demonstrate this with a few numbers. One of my clients this week went to contract on Wednesday. He is looking at a home purchase in the amount of $315,000 with 20% down. He started the week with a quote of 4.875% and may end the week at 5.125%. (Depending how mortgage rates come out this morning.) This customer, who is getting a mortgage of $ 252,000, just saw his payment go up $39 per month. This is not enough to break him, but it is enough for him to trim his spending somewhere else.</p> <p itxtvisited="1">Currently we have an interesting tug of war going on in the mortgage markets with regard to interest rate. We have huge deficit spending which will push <a class="iAs" style="border-bottom: 0.07em solid darkgreen; padding-right: 0px; padding-left: 0px; font-weight: normal ! important; font-size: 100% ! important; background-image: none; padding-bottom: 1px ! important; color: darkgreen ! important; padding-top: 0px; background-color: transparent ! important; text-decoration: underline ! important;" href="post-create.g?blogID=7667223971880022485#" target="_blank" itxtdid="9190881">interest rates</a> up. We have a weak economy that will help keep them down. We have a government that is purchasing huge amounts of mortgage back securities ensuring that our banks are liquid and ready to continue lending which has helped keep mortgage rates down. No doubt Washington will do everything in its power to keep our rates low to help get rid of the glut of houses out there and also continue to receive the stimulus that occurs when consumers refinance into a lower rate.</p> <p itxtvisited="1">In an effort to proactively help answer questions for customers, I have created three auto-responder series on my website.* They are entitled “The Mortgage Process”, “First Time Homebuyer Workshop” and “Debt Relief”. You will see a separate subscription box for each series. They are of course free and include video of myself describing what to expect during each phase of the home buying or refinancing process. “The Mortgage Process” describes what to expect once your loan is at the bank. The “First Time Homebuyer Workshop” is a tool that coaches FHA customers who need to put their affairs in order before they go house hunting. The “Debt Relief” series describes alternatives for customers who are in need of debt settlement or credit repair.</p> <p itxtvisited="1">Written by Preston Ware<br />First South Mortgage<br />Tel: 704-542-8057<br />* <a href="http://www.prestonware.com/">http://www.prestonware.com</a><br />Email is preston@prestonware.com.</p></div><!--/nodeBody--><!-- google_ad_section_end --> <!--/nodeContent--> <div class="nodeFooter clearAfter" itxtvisited="1"> <p itxtvisited="1"> </p><h3 itxtvisited="1"><br /></h3></div>Preston Warehttp://www.blogger.com/profile/02567028446074677398noreply@blogger.com0tag:blogger.com,1999:blog-7667223971880022485.post-65440968703761421072009-07-17T05:57:00.001-07:002009-07-17T05:57:44.456-07:00Mortgage Rates Ticking Higher<h1 class="CommonTitle" style="padding: 20px 0px 0px;">Mortgage Rates Tick Higher Again</h1> <a href="http://www.mortgagenewsdaily.com/members/vburek/default.aspx"> <div style="float: left;"><img src="http://www.mortgagenewsdaily.com/cfs-file.ashx/__key/CommunityServer.Components.Avatars/00.00.02.08.60/avatar.jpg" alt="" style="border-width: 0px; max-height: 50px; max-width: 50px;" /></div> </a> <div style="padding-left: 55px;"> <div class="BlogArticleByline"> by <a href="http://www.mortgagenewsdaily.com/members/vburek/default.aspx">Victor Burek</a> </div> <div class="BlogArticleDateline" style="padding-bottom: 0pt;"> Posted Jul 16 2009, 01:11 PM <div style="padding-top: 2px;"> <script type="text/javascript"> function AddCurrentFavorite() { var url = document.URL; var title = document.title + ' - Mortgage News Daily'; if(document.all) window.external.AddFavorite(url, title); else if(window.sidebar) window.sidebar.addPanel(title, url, ""); } </script> <script type="text/javascript" src="http://w.sharethis.com/widget/?button=false&tabs=email&charset=utf-8&style=default&publisher=5a9d8c5e-76aa-457e-bd76-baa8d5725933"></script> <script language="javascript" type="text/javascript"> //Create your sharelet with desired properties and set button element to false var object = SHARETHIS.addEntry({ summary: 'Check out this article from Mortgage News Daily. To Join the Mortgage News Daily Community, go to https://www.mortgagenewsdaily.com/user/CreateUser.aspx' }, { button: false }); //Output your customized button document.write('<span id="share"><a href="javascript:void(0);"><img src="/Themes/mnd/images/email_small.png" alt="" style="border-width:0px;" /> Email Page</a></span>'); var element = document.getElementById("share"); object.attachButton(element); </script><span st_page="home" id="share"><a href="javascript:void(0);"><img src="http://www.mortgagenewsdaily.com/Themes/mnd/images/email_small.png" alt="" style="border-width: 0px;" /> Email Page</a></span> | <a href="javascript:window.print();"><img src="http://www.mortgagenewsdaily.com/Themes/mnd/images/printer.png" alt="" style="border-width: 0px;" /> Print</a> | <a href="javascript:AddCurrentFavorite();"><img src="http://www.mortgagenewsdaily.com/Themes/mnd/images/bookmark_add.png" alt="" style="border-width: 0px;" /> Bookmark</a> </div> </div> </div> <hr /> <p style="margin: 0in 0in 0pt;" class="MsoNormal"><span style="font-size: small;"><span style="font-family: Calibri;">Mortgage rates took another step higher yesterday following a 3% rally in the stock market<span style="color: rgb(31, 73, 125);">.</span> Tame inflation and “not as bad” industrial production numbers have resparked the green shoots theory of a quick economic recovery. Market participants, not wanting to miss out on the rally, quickly sold their fixed income investments to move their money into the higher risk but higher return equity markets. In total, mortgage backed securities moved lower in price (as price moves lower, rates move higher) by 75 basis points which forced all lenders to reprice for the worse with some issuing a couple reprices as the losses snowballed into close. Losing much more was MBS’s closest relative, the benchmark 10 year note, which sold off and moved to a higher yield of 3.63. Just a few days ago, the 10 year note was trading under 3.30 in yield. After mortgage rates briefly touched 4.875% the other day, they have quickly turned and by day’s end yesterday par was sitting at 5.25%.</span></span></p> <p style="margin: 0in 0in 0pt;" class="MsoNormal"><span style="font-size: small;"><span style="font-family: Calibri;"> </span></span></p> <p style="margin: 0in 0in 0pt;" class="MsoNormal"><span style="font-size: small;"><span style="font-family: Calibri;">JP Morgan reported much better than expected earnings this morning. Analysts had expected a 5 cents per share earnings but they reported 2nd quarter earnings of 28 cents per share or $2.7 billion. After the much better than expected earnings from Goldman Sachs earlier this week, many anticipated similar results from JP Morgan which fueled the rally in equities. </span></span></p> <p style="margin: 0in 0in 0pt;" class="MsoNormal"><span style="font-size: small;"><span style="font-family: Calibri;"> </span></span></p> <p style="margin: 0in 0in 0pt;" class="MsoNormal"><span style="font-size: small;"><span style="font-family: Calibri;">The U.S. Department of Labor<span style="color: rgb(31, 73, 125);"> </span>this morning released the weekly jobless claims for unemployment insurance report. This data set calculates the number of Americans who filed for first time unemployment benefits in the prior week. Today's report indicates that jobless claims fell from last week’s upwardly revised 569,000 to 522,000. Estimates from economists were for 535,000 first time claims. Continuing claims, which reports how many people continue to file due to lack of finding a new job, fell by 642,000 ― its largest amount in history ― from 6.883 million to 6.273 million. The Labor Department is warning that the better than expected numbers are being distorted by seasonal issues owing to the fact that layoffs in manufacturing happened earlier than usual<span style="color: rgb(31, 73, 125);">.</span></span></span></p> <p style="margin: 0in 0in 0pt;" class="MsoNormal"><span style="font-size: small;"><span style="font-family: Calibri;"> </span></span></p> <p style="margin: 0in 0in 0pt;" class="MsoNormal"><span style="font-size: small;"><span style="font-family: Calibri;">The final report of the day comes from our friends at the Federal Reserve Bank of Philadelphia with the release of the Philly Fed Survey. This survey lets market participants know the strength of manufacturing around the Philadelphia region. Last month’s survey improved by a large margin moving from -22.6 to -2.2 which was the best reading since September of 2008 and far exceeded estimates. Readings below 0 indicate that business conditions are contracting while readings above 0 indicate expansion. Economists surveyed for this month’s survey were expecting a slight decline to -5.0. The survey in fact showed business conditions in the region contracting more than expected at a -7.5 read. Following the release, both MBS and treasuries moved to their best price of the day.</span></span></p> <p style="margin: 0in 0in 0pt;" class="MsoNormal"><span style="font-size: small;"><span style="font-family: Calibri;"> </span></span></p> <p style="margin: 0in 0in 0pt;" class="MsoNormal"><span style="font-size: small; font-family: Calibri;">So far today, the fixed income sector is trying to rebound from the beating they took yesterday. Currently, the benchmark 10 year treasury note is rallying and is currently trading at a yield of 3.51 after closing yesterday at 3.63. MBS are moving higher in price as well and are currently recapturing over half of yesterday’s losses. Since MBS are moving higher, if you are currently floating continue to do so until later today. This will allow time for lenders to pass along the improvements, but things can change very quickly so we must remain defensive. You can check MBS prices by clicking over to Mortgage News Daily’s </span><a href="http://www.mortgagenewsdaily.com/mortgage_rates/"><span style="font-size: small; color: rgb(128, 0, 128); font-family: Calibri;">Mortgage Rates</span></a><span style="font-size: small;"><span style="font-family: Calibri;"> page. </span></span></p> <p style="margin: 0in 0in 0pt;" class="MsoNormal"><span style="font-size: small;"><span style="font-family: Calibri;"> </span></span></p> <p style="margin: 0in 0in 0pt;" class="MsoNormal"><span style="font-size: small;"><span style="font-family: Calibri;"><span style="color: rgb(31, 73, 125);">R</span>eports from fellow mortgage professionals are indicating that the par 30 year fixed rate conventional loan is in the 5.125% to 5.375% range for the best qualified consumers. If you are securing government financing, FHA or VA, expect your rate to be about .25% higher. <span style=""> </span>The sell off yesterday in MBS should have resulted in higher mortgage rates this morning; however, there are two things helping rates. <span style=""> </span>First, AQ informs me that most lenders locked in their pipelines in early July at the highs of MBS price which allows them to pass along pricing based on last week’s MBS price.<span style=""> </span>Secondly, the move higher in interest rates last month has lessened the supply of mortgage applications for lenders to underwrite.<span style=""> </span>How can a lender encourage more loan applications to be submitted?<span style=""> </span>That’s right, offer better pricing. </span></span></p>Preston Warehttp://www.blogger.com/profile/02567028446074677398noreply@blogger.com0tag:blogger.com,1999:blog-7667223971880022485.post-88785190243242911422009-07-10T05:42:00.001-07:002009-07-10T05:42:54.142-07:00Fed continues to provide market liquidity<h1 class="CommonTitle" style="padding: 20px 0px 0px;">Fed Purchases $17.050 Billion Agency MBS. Over Half of Allocated Funds Now Used</h1> <div style="padding-top: 2px;"> <script type="text/javascript"> function AddCurrentFavorite() { var url = document.URL; var title = document.title + ' - Mortgage News Daily'; if(document.all) window.external.AddFavorite(url, title); else if(window.sidebar) window.sidebar.addPanel(title, url, ""); } </script> <script type="text/javascript" src="http://w.sharethis.com/widget/?button=false&tabs=email&charset=utf-8&style=default&publisher=5a9d8c5e-76aa-457e-bd76-baa8d5725933"></script> <script language="javascript" type="text/javascript"> //Create your sharelet with desired properties and set button element to false var object = SHARETHIS.addEntry({ summary: 'Check out this article from Mortgage News Daily. To Join the Mortgage News Daily Community, go to https://www.mortgagenewsdaily.com/user/CreateUser.aspx' }, { button: false }); //Output your customized button document.write('<span id="share"><a href="javascript:void(0);"><img src="/Themes/mnd/images/email_small.png" alt="" style="border-width:0px;" /> Email Page</a></span>'); var element = document.getElementById("share"); object.attachButton(element); </script><span st_page="home" id="share"><a href="javascript:void(0);"><img src="http://www.mortgagenewsdaily.com/Themes/mnd/images/email_small.png" alt="" style="border-width: 0px;" /> Email Page</a></span> | <a href="javascript:window.print();"><img src="http://www.mortgagenewsdaily.com/Themes/mnd/images/printer.png" alt="" style="border-width: 0px;" /> Print</a> | <a href="javascript:AddCurrentFavorite();"><img src="http://www.mortgagenewsdaily.com/Themes/mnd/images/bookmark_add.png" alt="" style="border-width: 0px;" /> Bookmark</a> </div><hr /> <p>The Federal Reserve today reported on their weekly purchases of agency mortgage-backed securities (MBS). In the four trading days between July 2 and July 8, the Federal Reserve purchased a gross of $23.250 billion Agency MBS. During this period the Federal Reserve sold $6.2billion agency MBS, which brought their weekly net purchases to a total of $17.050 billion. </p> <p>Since the inception of the program the Federal Reserve has spent $638.61 billion, <b>51% of the $1.25 trillion that was allocated</b>.</p> <p>The goal of the Federal Reserve's agency MBS program is to provide support to mortgage and housing markets and to foster improved conditions in financial markets more generally. Only fixed-rate agency MBS securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae are eligible assets for the program. The program includes, but is not limited to, 30-year, 20-year and 15-year securities of these issuers.</p> <p>Of the net $17.050 billion weekly purchases:</p> <p>$900 million was used to buy 30 yr 4.0 MBS coupons. 5.28% of total weekly purchases.</p> <p>$6.850 billion was used to buy 30 yr 4.5 MBS coupons. 40.18% of total weekly purchases.</p> <p>$6.750 billion was used to buy 30 yr 5.0 MBS coupons. 39.59% of total weekly purchases.</p> <p>$500 million was used to buy 30 yr 5.5 MBS coupons. 2.93% of total weekly purchases. </p> <p>$1.450 billion was used to buy 15 yr 4.0 MBS coupons. 8.50% of total weekly purchases.</p> <p>$200 million was used to buy 15 year 4.5 MBS coupons. 1.17% of total weekly purchases. </p> <p style="font-weight: bold;">The Fed's daily average of purchases was $4.263 billion per day, down from the previous week's average of $4.620 per day. Originator supply between July 2 and July 8 averaged just under $2 billion per day, which implies the Federal Reserve continues to provide more than enough liquidity to loan originators looking to sell their loans. </p> <p>Here is a chart illustrating the evolution of the Federal Reserve's Agency MBS Purchase Program. Notice that more recently Fed MBS purchases have declined relative to their market participation during March and April. This reflects the recent rise in mortgage rates and the slowdown in application activity in the mortgage market.</p> <p><img src="http://www.mortgagenewsdaily.com/cfs-file.ashx/__key/CommunityServer.Components.UserFiles/00.00.03.44.60/7_5F00_9-Fed-MBS-Purchases.gif" alt="" width="650" height="582" /></p>Preston Warehttp://www.blogger.com/profile/02567028446074677398noreply@blogger.com0tag:blogger.com,1999:blog-7667223971880022485.post-66197469348006935102009-07-03T06:08:00.001-07:002009-07-03T06:08:46.433-07:00Unemployment rate for Adult Men is 10%<h1 class="CommonTitle" style="padding: 20px 0px 0px;">June Employment Data Worse than Expected: 467k Jobs Lost. 9.5% Unemployment Rate</h1> <div class="BlogArticleByline"> by <a href="http://www.mortgagenewsdaily.com/members/prmcgee/default.aspx">Patrick McGee</a> </div> <div class="BlogArticleDateline"> Posted Jul 02 2009, 08:44 AM <div style="padding-top: 2px;"> <script type="text/javascript"> function AddCurrentFavorite() { var url = document.URL; var title = document.title + ' - Mortgage News Daily'; if(document.all) window.external.AddFavorite(url, title); else if(window.sidebar) window.sidebar.addPanel(title, url, ""); } </script> <script type="text/javascript" src="http://w.sharethis.com/widget/?button=false&tabs=email&charset=utf-8&style=default&publisher=5a9d8c5e-76aa-457e-bd76-baa8d5725933"></script> <script language="javascript" type="text/javascript"> //Create your sharelet with desired properties and set button element to false var object = SHARETHIS.addEntry({ summary: 'Check out this article from Mortgage News Daily. To Join the Mortgage News Daily Community, go to https://www.mortgagenewsdaily.com/user/CreateUser.aspx' }, { button: false }); //Output your customized button document.write('<span id="share"><a href="javascript:void(0);"><img src="/Themes/mnd/images/email_small.png" alt="" style="border-width:0px;" /> Email Page</a></span>'); var element = document.getElementById("share"); object.attachButton(element); </script><span st_page="home" id="share"><a href="javascript:void(0);"><img src="http://www.mortgagenewsdaily.com/Themes/mnd/images/email_small.png" alt="" style="border-width: 0px;" /> Email Page</a></span> | <a href="javascript:window.print();"><img src="http://www.mortgagenewsdaily.com/Themes/mnd/images/printer.png" alt="" style="border-width: 0px;" /> Print</a> | <a href="javascript:AddCurrentFavorite();"><img src="http://www.mortgagenewsdaily.com/Themes/mnd/images/bookmark_add.png" alt="" style="border-width: 0px;" /> Bookmark</a> </div><hr /> </div> <p> </p> <p><span>Forecasts were much too optimistic for the June employment numbers. The labor market lost 467,000 jobs last month, pushing the unemployment rate up one-tenth to 9.5%, its highest level in 26 years. Analysts had been looking for just 325,000 lost jobs, following a loss of 322,000 in May.</span></p> <p><span>“Job losses were widespread across the major industry sectors, with large declines occurring in manufacturing, professional and business services, and construction,” said the Bureau of Labor Statistics.</span></p> <p><span>Since the recession began in December 2007, the unemployment rate has surged by 4.6 percentage points, adding 7.2 million people to the unemployed list.</span></p> <p><span>The unemployment rate for adult men is 10.0%, for adult women it is 7.6%. Teenagers have an unemployment rate of 24%. The jobless rate for whites is 8.7%, for blacks it is 14.7%, for Hispanics it is 12.2% ― all were little changed from May.</span></p> <p> </p> <p><span>Job Losses by Sector:</span></p> <ul><li><b>Goods-producing: -223k</b></li><li>Construction: -79k</li><li>Manufacturing: -136k</li></ul> <ul><li><b>Service-Sector: -244k</b></li><li><b><span>Retail Trade: -21k</span></b></li><li><b><span>Professional Services: -118k</span></b></li><li><b><span>Education/Healthcare: +34k</span></b></li><li><b><span>Leisure/Hospitality: -18k</span></b></li><li><b><span>Government -52k</span></b></li></ul> <p> </p> <p>Analyst reactions were aptly pessimistic. TD Strategist Millan Mulraine called the report "unequivocally weak" and "very ugly". </p> <p>"Not only does it suggest that the pace of job losses in the U.S. remains very high, it bucks the trend of four consecutive months of improvement in the pace of job losses," he said. "Moreover, with conditions in the U.S. economy continuing to be very weak, <b>there is little to suggest that a turnaround in U.S. labour market conditions is on the horizon</b>."</p> <p><span>Elsewhere in the report, </span><span>average weekly hours hit a cycle low at 33.0 hours, and wage growth was nonexistent during the month but up 2.7% compared to last year.</span></p> <p> </p> <p> </p>Preston Warehttp://www.blogger.com/profile/02567028446074677398noreply@blogger.com0tag:blogger.com,1999:blog-7667223971880022485.post-1553323640287581362009-07-02T05:51:00.000-07:002009-07-02T05:58:07.453-07:00First Time Homebuyer Subscription is AvailablePlease visit my home page <a href="http://www.prestonware.com/">http://www.prestonware.com</a> and sign up for the <em>First Time Homebuyer Series</em>. I have created a series of 8 emails with video that explain the process of getting ready to go buy a home. Issues addressed include topics such as building credit, using alternate credit, repairing credit and settling debts. The series also describes the steps we take in determining how much house to buy.<br /><br />Once this series is complete I stongly suggest the nest series which discusses the <em>mortgage process</em>. This series details what to expect once the loan is in process and the steps we take as your loan travels through the bank. Key episodes include, "The three advantages a mortgage broker has over a bank" and also the importance of a detailed Good Faith estimate.<br /><br />If you know that you have bad credit or too many debts and collections you may want to view the <em>Debt series</em> which details the steps you take in eliminating debts.Preston Warehttp://www.blogger.com/profile/02567028446074677398noreply@blogger.com0tag:blogger.com,1999:blog-7667223971880022485.post-10113913193702116292009-07-02T05:50:00.000-07:002009-07-02T05:51:04.381-07:00Bank of America Accused of Ruthless Practises<a title="Permanent Link: Bank of America accused of anti-consumer practices" href="http://www.fraudulentcharges.com/bank-of-america-accused-of-anti-consumer-practices/">Bank of America accused of anti-consumer practices</a><br />July 1st, 2009 Posted in <a title="View all posts in Bank of America" href="http://www.fraudulentcharges.com/category/bank-of-america/">Bank of America</a><br />NEW YORK (<a href="http://www.reuters.com/article/topNews/idUSTRE55T5E420090630?feedType=RSS&feedName=topNews&rpc=69">Reuters</a>) - Consumer and labor groups demanded Bank of America Corp and other lenders reform their sales practices so that workers under pressure to meet sales quotas do not saddle customers with costly and unnecessary products.<br />The whistleblowing campaign was announced Tuesday as the U.S. Treasury Department unveiled legislation to create a Consumer Financial Protection Agency, as part of the Obama administration financial regulation overhaul.<br />People, who said they were former Bank of America employees, alleged that their supervisors drove them to burden consumers with needless debt and fees, to fatten the bank’s earnings and the paychecks of senior executives, and threatened to retaliate if they complained. Some complained their salaries had been too low and that they had to hit quotas to earn needed bonuses.<br />“This is the kind of information that really needs to get out,” said Representative Keith Ellison, a Minnesota Democrat who sits on the House Financial Services Committee. “Without a strong whistleblower law, we simply are not doing the things we need to do in order to manage risk properly.”<br />He suggested that lending standards could be compromised by “the urgency to sell, sell, sell, sell, sell.”<br />Groups conducting the campaign include the Service Employees International Union, which is trying to organize Bank of America workers; the National Association of Consumer Advocates, and the U.S. Public Interest Research Group.<br />Bank of America spokeswoman Anne Pace rejected the allegations, saying the SEIU misrepresented the largest U.S. bank’s relationship with its customers and associates.<br />She said the Charlotte, North Carolina-based bank is “pro-associate and believes that managers are well-equipped to respond to associates’ needs,” and is committed to ensuring that customer fees are “transparent and predictable.”<br />Christopher Feener, who said he used to work in the bank’s credit card unit, was among the former workers who spoke out.<br />He complained that the bank regularly violated the Fair Debt Collection Practices Act, and sometimes pushed workers to falsely threaten legal action against customers. He said his team was sometimes pushed to call customers’ neighbors about delinquent accounts, “to embarrass the customer and actually encourage the neighbor to bring over a message.”<br />Shares of Bank of America rose 5 cents to $13.24 in early afternoon trading on the New York Stock Exchange.<br />(Reporting by Jonathan Stempel; Editing by Tim Dobbyn)<br />Excellent reporting! by <a href="http://www.reuters.com/article/topNews/idUSTRE55T5E420090630?feedType=RSS&feedName=topNews&rpc=69">Rueters</a>Preston Warehttp://www.blogger.com/profile/02567028446074677398noreply@blogger.com0tag:blogger.com,1999:blog-7667223971880022485.post-42335781078128811302009-07-02T05:44:00.000-07:002009-07-02T05:49:05.519-07:00Home Affordable Guidelines RevisedHARP guidelines allow up to 125%-This is a good sign especially in states like Florida where values have dropped considerably. This could be a mute point because the home affordable program offers an appraisal waiver in some cases. Please see my YOUTUBE video on this topic.<br /><a href="http://www.youtube.com/mortgagesUSA123#play/uploads/4/Mgt8rombQ2I">http://www.youtube.com/mortgagesUSA123#play/uploads/4/Mgt8rombQ2I</a><br /><br />HUD Secretary Shaun Donovan today <a href="http://www.hud.gov/news/release.cfm?content=pr09-104.cfm" target="_blank">announced</a> that the Federal Housing Finance Agency has <a href="http://www.fhfa.gov/webfiles/13495/125_LTV_release_and_fact_sheet_7_01_09.pdf" target="_blank">authorized</a> Fannie Mae and Freddie Mac to raise the Home Affordable Refinance Program's (HARP) loan to value (LTV) ceiling from 105% to 125%.<br />The Home Affordable Refinance Program was designed to assist borrowers who have demonstrated an acceptable payment history on their existing Fannie Mae or Freddie Mac owned mortgage loan. Unfortunately due to rising unemployment levels and increasing foreclosure rates, demand for housing has weakened and property values have continued to decline, which has blocked many borrowers from utilizing HARP.<br />The expansion of Fannie Mae's and Freddie Mac's LTV guideline aims to expand qualified homeowner's refinance opportunities. The underlying initiative is that lower monthly mortgage payments will raise real household incomes and therefore afford more spending power upon consumers. In a government press releases, Treasury Secretary Tim Geithner stated...<br />"By expanding refinance eligibility, we can bring relief to more struggling homeowners more quickly. It's a crucial step in our broader efforts to get America's housing market and economy on the path to recovery."<br />Thus far the effectiveness of the HARP program has faced many barriers. Among these roadblocks: lenders adding underwriting overlays and guideline restrictions, lenders all together not participating in the program, difficulty determining if Fannie Mae/Freddie Mac own your mortgage because of addresses not exactly matching the original note, additional costs because of lender imposed risk based loan level price adjustments (on top of GSE LLPAs), the unwillingness of banks to subordinate second mortgages, reluctant mortgage insurers, and the Home Valuation Code of Conduct.<br />Kent Mikkola, a mortgage consultant from Roseville, Minnesota says "Overall, it is difficult to obtain a HARP approval. Furthermore, it is even more difficult to find out why a seemingly eligible borrower has been denied"<br />Since the program was launched on April 1,2009 several updates have been made to counteract these roadblocks, however HARP remains unable to live up to the hype surrounding it. That said, today's announcement, although appreciated, was broadly overlooked by skeptical mortgage professionals. John Rodgers, president of Prime Mortgage Lending in Apex, North Carolina, had this to say:<br />"It appears that the Obama Administration is aware of the constraints blocking borrowers from lower mortgage payments. Unfortunately, today's update will likely prove ineffective in lowering those barriers. At this point granting appraisal waivers, allowing reduced documentation, and cutting loan level price adjusters appear to be the only way HARP will ever be effective. Otherwise HARP will turn out to be yet another loan program nobody can use, much like like FHA Secure and the Hope for Homeowners program."<br />Nonetheless, borrowers who are in trouble with their mortgage should find out if they are eligible for a refinance or loan modification. You can do so <a href="http://www.makinghomeaffordable.gov/eligibility.html" target="_blank">HERE</a>Preston Warehttp://www.blogger.com/profile/02567028446074677398noreply@blogger.com0tag:blogger.com,1999:blog-7667223971880022485.post-7183908059730780472009-06-25T08:47:00.000-07:002009-06-27T09:43:47.206-07:00The Three Advantages of Using a Mortgage BrokerSpeed, Pricing & Service A lot of times I am asked by my customers, "Why don't I just go to the bank directly?"<br /><br />Pricing: The answer to that question is a discussion of wholesale vs retail prices. When you shop at a store, you are paying retail prices. By definition wholesale prices are lower than retail prices. A mortgage broker has access to wholesale prices of the same bank you are interested in. Also, he or she has the advantage of being able to shop your loan and take advantage of the best pricing in the country. Please see this video <a href="http://www.youtube.com/watch?v=WK0z4jzXRTo">http://www.youtube.com/watch?v=WK0z4jzXRTo</a><br />The classic analogy is when I am shopping your loan in the middle of winter. If a bank in Ann Arbor Michigan has three feet of snow on their door step most customers won't be able to just jump opn their snow mobile and go get a loan. So what do they do? They broadcast their prices to the rest of the country to a guy like me down here in Florida. I see their rate sheet and say "Wow, they must have three feet of snow right now!" Then I go in and place your loan there and capitalize on the exceptional pricing they are offering to attract business.<br /><br />Speed: Also when you avoid the slow moving chain of command of a large bank the customer benefits from fewer hands on their file. Every time the file is passed on, there is a delay in explaining unique situations or re-examining certain details. Also there is a greater chance that some detail is miscommunicated and an error will result.<br /><br />Service: Dealing with myself directly, I am your sole point of contact. There is no re-explaining or calling a long list of possible contacts. Also when I check my list of banks, I always check to see which bank is backed up or which can give me service. I in turn pass this service on to my customers in the form of a smooth and easy process.Preston Warehttp://www.blogger.com/profile/02567028446074677398noreply@blogger.com0