Archive for November, 2010

Thanksgiving

November 30th, 2010
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The First Thanksgiving

As the story goes, in September of 1620, 102 souls set out from Plymouth, England in a tiny ship called the Mayflower.  It took them 66 very uncomfortable days to cross the Atlantic.  Off course, they landed 200 miles north of their intended destination at the tip of Cape Cod and a month later, crossed Massachusetts Bay.  It was late November and winter had set in. Read the rest of this entry »

HAFA and Fannie Mae Changes

November 23rd, 2010
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HAFA will speed up Short Sales and Help Sellers recover faster

I simply cannot imagine the agony of having to give up your house.  1.3 Million families have applied for loan modifications  through HAMP yet only 450,000 or so have received sustainable modifications.  The rest had to let go.  What I learned last week will help make that process a little less painful and the road to recovery shorter. Read the rest of this entry »

Highlights of the New Loan Quality Initiative

November 16th, 2010
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This new red tape could tie up your closing!

 

Earlier this year, Fannie Mae launched LQI(Loan Quality Initiative). The purpose of LQI is to insure that there is total transparency related to the investment quality and risk grade of loans being delivered to Fannie.   That’s a good thing if you’re trying to lure private investors, stung by the meltdown of Wall Street, back into the mortgage backed securities market. There are a number of new procedures required that add a level of red tape to the approval process. Working together to educate our clients and manage their expectations is going to be critical to a successful outcome. Read the rest of this entry »

The Time to Buy or Refinance is Now

November 11th, 2010
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We just celebrated our second anniversary in our current home. When we built it, interest rates were hovering in the range of 6% and we locked into what we thought was going to be our last mortgage prior to the old folks home. With rates now at all time lows, I couldn’t resist the urge to lock into a refinance at a 4% rate which now puts my mortgage payment lower than the cost of an efficiency apartment in Prior Lake.  With rates at all time record lows, it’s going to be hard for a lot of people in the coming years to consider moving. Imagine giving up your 4% mortgage for one in the range of 6%.  Read the rest of this entry »

Building Your Bridge to Success

November 2nd, 2010
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No substitute for knowledge

Back in the 80’s one of the measures of whether or not you were talented enough to work in the mortgage business involved a typing test.  There were no computers and you had to individually type notes and mortgages with no errors.  White out was a no no.  If you made a mistake, you started over.  Something new called the HP12C financial calculator allowed you to fully calculate your Truth in Lending document in about an hour, by hand.  You had to learn to do the math and understand what you were calculating.  If you submitted a file to underwriting that was not fully documented, you got it back a few days later stamped “Rejected” and the underwriter didn’t usually follow-up with happy notes or clues on how it might become approvable.  Debt ratios were sacrosanct.  We had to count day care as a household expense.  I learned the hard way that you didn’t ask someone else what the underwriting guidelines said related to any particular subject because if the answer started with “I think…” and you went with it, you were probably going down the wrong path.  I started Read the rest of this entry »