I’m closing a loan tomorrow, that Chase said “you don’t qualify” to and saving the borrower $280 per month in their cash flow, by paying off the existing Chase loan and a Chase credit card. Another loan officer who just gave up!!  Chase’s loss!

How can I help you??

View this video by clicking here and, from the perspective of the lender, what do you think is the most financially beneficial course of action… helping the homeowner out with a loan modification OR pushing them into a short sale???

The numbers proposed in this video are purported to be true!  If that is the case, we have yet another reason to be very angry with the government and the structure of their “bailout” plan!!

Thoughts?  Opinions?

For those of you who have been thinking about taking advantage of some of the mortgage and homebuyer relief programs that the governent and agencies have enacted, but haven’t acted yet, here’s a reminder of the expected calendar.

Without some form of extension, the following expiration dates are on the horizon:

• Government purchases of Mortgage Backed Securities is destined to end on March 30, 2010… this  could mean higher interest rates in the near future.  The US government seems to be one of the few takers on MBS’s these days and if the only buyer’s appetite is quenched, logic would dictate a change in rates might be in the offing.
• The home purchase tax credit is scheduled to end on April 30, 2010… FREE $$$ for IL first time home buyers, and now, repeat home buyers!!
• The Making Home Affordable refinance program is scheduled to end on June 30, 2010… Lenders (servicing lenders) have done their best to take all of the good things out of this program, but it’s still a very usable program that, for some reason, has had very little use or publicity.  At last look, somewhere in the vicinity of 300,000 homeowners have taken advantage of this!!  There are an estimated 76 million homeowners in the US, many of them are in need of help… Why has this program not had more takers?  This is still a great program, but you need to sit down with someone who knows how it works in order to be able to use it.

Please keep these financing deadlines in mind for yourself or your clients!

Chuck

Happy New Year and good morning!

sim⋅pli⋅fy
/ˈsɪmpləˌfaɪ/ [sim-pluh-fahy]
–verb (used with object), -fied, -fy⋅ing.
to make less complex or complicated; make plainer or easier: to simplify a problem.

Welcome to the first business day of the newest chapter in RESPA “reform”… the introduction of the new and “improved” Good Faith Estimate (GFE), HUD I form and Truth In Lending disclosure. To be honest… through all the webinars, all of the printed material, all of the conference calls and all the flyers we have experienced, there is still a lot of fog surrounding these new documents, what is required and how it will be implemented! It also seems that each lender has their own spin on how the regulation is to be interpreted and what will be required of the broker (and borrower).  Just this past Friday, I received a 62 page training deck to prepare for a 1.5 hour webinar this Tuesday (a day after day one!)

“The proposed Good Faith Estimate (GFE) is lengthy, complex, and cannot be easily compared by a borrower with the HUD-1 Settlement Statement at closing to determine whether the actual costs exceed the estimate provided at the time of the loan application.”

“The proposed GFE contains terminology that conflicts with other disclosures consumers receive under the Truth-in-Lending Act (TILA) and the Equal Credit Opportunity Act (ECOA), which will add to the borrower’s confusion during the loan application process.

“HUD’s proposed new GFE and mortgage application process would overlap and conflict with the broader federal mortgage regulatory framework under TILA and ECOA, which would further add to the borrower’s confusion.” — quote from David Stevens,  current Assistant Secretary for Housing/FHA Commissioner before the U.S. House of Representatives Subcommittee on Oversight and Investigations of the Committee on Financial Services.

I will be doing my best, this week, to gather as much information as I can to relay the concrete aspects of these changes and how they will be affecting borrowers and Realtors.

Suffice to say, at this early date… be prepared for a bit of confusion and, as usual in our industry, changes of this magnitude can potentially result in delays in the processing and closing of loans.

Stay tuned.

HAPPY THANKSGIVING, from Chuck Murphy, Hiton Financial and Illinoishomemortgagerates.com!  Enjoy the time with friends and family!

The question: “When do I jump off the fence and purchase or refinance?” Mortgage rates continued to make favorable progress today and crossed below the 4.750% range for excellent credit (740+) borrowers pursuing purchases or rate and term refinances. Cash out borrowers and those with lower credit scores will pay a premium and experience a higher rate.

I continue to be amazed  at the level of rates we’re currently experiencing… especially in light of the volatility the market experienced just a few months ago.

The real question is not “How low will they go?”… the real question is “How long will they stay there, and how long will I be able to take advantage of this?”

With sub-4.750% fixed rates and $8,000 in first time homebuyer tax credit money, I would think the lines at Illinois real estate offices should rival those that you might see at Best Buy on Black Friday!!!  And existing home owners… this holiday season, give a gift to yourself… the gift of improved cash flow through lower interest rates.  It is truly the gift that keeps on giving!

Folks… I’ve been in the mortgage business in Illinois for over 25 years and NEVER have I seen rates this low! This is history in the making and people need to take advantage of it while it’s still here.

The government programs to allow certain segments of the population who’s property values have suffered, will not be around forever.  Likewise, the homebuyer tax credit for first time home buyers, and now for current home owners, will only be around until April!  Additionally, the government is currently buying mortgage backed securities at the rate of anywhere from $14 billion to $25 billion per week, and that will/can not continue for long.

Bottom line… if you currently have a rate of 5.500% or over, or currently have an ARM/interest only loan that’s going to convert and are worried about the future, NOW IS THE TIME TO LOOK INTO A NEW FIXED RATE MORTGAGE!

I’m happy to help!

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