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Entries posted on “February, 2008”
During this period of an economic recession poking its ugly head into this country?s fiscal wellbeing, the real estate market has slowed down to the point of the mortgage industry nearly being in a coma. Many mortgage professionals are still writing loans, but at a diminished capacity. Many mortgage professionals have chosen the road of greater means and left the industry for simple survival reasons. Yet few are still struggling financially, morally, or emotionally over the decision of, ?should I stay in the mortgage business or should I find a new or temporary career??
Let?s explore this decision process. The first thing to consider is the state(s) in which you are licensed to originate. The country as a whole is nearing a recession. The state I live in just declared a recession. The rate of loan closings has slowed down considerably. More people call about refinancing their home with no equity available than people who want to buy a new home. Other states are worse off with declining home values and an abundant amount of foreclosures. It seems all doom and gloom. Perhaps not.
February 1st, 2008 | Posted in Archive,Articles,Featured | Read More »
A candid conversation with Brad Eaton, VP Mortgage Products
This month The Niche Report brings you a company that?s been helping mortgage professionals effectively market themselves for years. If you were to visit a loan originator?s website, more than likely that website is an Xsite created by A la Mode. A la Mode has developed a successful formula for bringing together high quality site design and online marketing capabilities for many mortgage industry professionals. We sat down with Brad Eaton, VP Mortgage Products to
February 1st, 2008 | Posted in Archive,Articles,Center Stage | Read More »
Reprinted with permission from MGIC
Borrower-paid MI premiums are now tax-deductible through the year 2010. Because it?s still new, the law has raised many questions. Here are answers to commonly asked questions regarding the new law.
We will continue to post updated information as regulators sort out the details.
Borrowers should consult their tax advisors regarding MI tax deductibility. See disclaimer note below.
FAQs
Does the bill apply to MGIC mortgage insurance?
Yes, borrower-paid MI provided by MGIC qualifies for the deduction. This includes our Monthly, One-Time MI and Split Premium plans. There are varied opinions on the deductibility of lender-paid MI as the IRS has not yet clarified the deductibility. It is recommended that borrowers consult their tax advisors regarding the amount that is deductible.
February 1st, 2008 | Posted in Archive,Articles,Featured | Read More »
Mastering the Power of Two
A Lender?s Point of View
?The strength of any team is magnified by the significant ties and relationships that each member brings to the entire group. If you want to see your efforts and hard-work multiply, then bring the right team together and watch it take off!?-Tom Ninness, Summit Champions.
Mastering the Power of Two
One of the strongest relationships from the lender?s point of view is the Realtor
February 1st, 2008 | Posted in Articles | Read More »
What is the coop and how is it financed? A cooperative apartment (coop) is an individual living unit within a building or development where a buyer purchases shares (equal to the value of the unit) in a corporation that holds title to a building. Coops are predominantly located in New York and Chicago. Normally a sponsor will buy the building, many times holding the underlying mortgage, and then will sell off the shares. Therefore, when buying a coop, you are not purchasing real property but actually shares in a corporation.
For example, a sponsor owns a building with 20 units and sells it to a coop corporation. The coop corporation will assume the sponsor?s underlying mortgage and buys 15 units. Each unit that the sponsor sells is assigned a specific share value based on the various characteristics (i.e., apartment size, view, etc.). The sponsor retains the unsold shares for five units and can rent them out and is also responsible for paying his/ her own maintenance on all the shares that he/ she owns.
February 1st, 2008 | Posted in Archive,Articles,Featured,Tip of the Month | Read More »
With the news hitting us almost daily wherever we turn regarding foreclosures, an alarming trend keeps popping out: most of the foreclosures are due to ARM?s adjusting to levels beyond that of which homeowners can afford, loans categorized as Stated Income and No Doc and of course everyone?s scourge – the NegAm Option ARMS.
In April 2005, Alan Greenspan stated the following, ?”Innovation has brought about a multitude of new products, such as sub prime loans and niche credit programs for immigrants. Such developments are representative of the market responses that have driven the financial services industry throughout the history of our country ? With these advances in technology lenders have taken advantage of credit-scoring models and other techniques for efficiently extending credit to a broader spectrum of consumers. ? Where once more-marginal applicants would simply have been denied credit, lenders are now able to quite efficiently judge the risk posed by individual applicants and to price that risk appropriately. These improvements have led to rapid growth in subprime mortgage lending; indeed, today subprime mortgages account for roughly 10 percent of the number of all mortgages outstanding, up from just 1 or 2 percent in the early 1990s.”
February 1st, 2008 | Posted in Archive,Articles,Featured | Read More »
For the past several months the mortgage industry as a whole has become somewhat of a ?gloom and doom? industry. Each day as we read the financial news we learn of another major mortgage lender closing their doors and or suspending their loan pipeline. Their once bread and butter products and programs, how we made our living, have now become ancient relics and part of ?the good old days?. With adversity comes the opportunity for prosperity. One income opportunity lies in the area of Unsecured Business Lines Of Credit [UBLOC]. However, it requires a totally different mind set from that of the traditional mortgage broker and loan officer. With that comes the challenge to change.
Whether it is to meet seasonal inventory demands, remodel your office space, or any other short-term financial need, an unsecured business line of credit is an excellent way to have extra funds available to your business when you need them. Not unlike a credit card, an unsecured business line of credit can provide you with the necessary funds to complete a project or make it through a cash flow crunch. Based on the funds you use, you pay interest on the outstanding monthly balance only.
February 1st, 2008 | Posted in Archive,Articles,Featured | Read More »
A lot of people don’t...
