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Entries posted on “March, 2008”
I received an email from a concerned mortgage broker. He stated that a previous client of his had reservations about working with a broker and the client wondered if he should consider refinancing with a large national bank instead.
Good question. As most of you know, the attrition amongst mortgage companies has been tremendous in the last two years. The sub prime market does not really exist any more, and even the large exclusive mortgage companies like Countrywide have been on shaky ground financially. The most stable mortgage origination companies are the large national banks. As originators, I am sure many of you have felt the pinch of new regulations, product redevelopment and the sting of past loans gone bad.
March 3rd, 2008 | Posted in Archive,Articles,Tip of the Month | Read More »
This month I would like to introduce to you a company that will help you close loans. Credit Plus is an all-in-one credit services company that has many exciting features to help you do your job and make you shine in your clients eyes. In this difficult market where your borrowers credit scores could make or break your deal, even by one point, there is no better time than to team up with a company such as Credit Plus Inc., if you haven?t already.
Allen Johnson, Vice President of Sales and Marketing at Credit Plus Inc., has graciously sat down with The Niche Report to educate us about all that they offer.
March 3rd, 2008 | Posted in Archive,Articles,Center Stage | Read More »
I?m going to take a wild, yet educated guess that 25 to 35 percent of the homeowners who are currently in a sub-prime or option-ARM type of product and are experiencing difficulties due to pending or recent payment increases, could have qualified for a fixed-rate, low-interest, no-pre-payment-penalty, fully assumable (subject to qualifying) FHA mortgage.
I admit that the percentage is an EWAG, but I don?t think I?m too far off base. FHA is one of the most misunderstood and underutilized mortgage programs out there. While mortgage options have shrunk and underwriting guidelines continue to tighten up, FHA has essentially stayed the same. It may be the only program that still works for many of your first-time and often marginal, a-minus type of homebuyers. It also has a killer refinance program.
March 3rd, 2008 | Posted in Archive,Articles,Featured | Read More »
The new niche market.
What is the short sale?
Today?s real estate market has experienced a plethora of foreclosures and bankruptcies due to several instabilities within the US real estate market. As home values continue to fall and real estate sales slow down, many homeowners are finding themselves owing more than their homes are worth in the declining market. This is often referred to in the mortgage industry as being ?upside down.?
Typically, this would not be a detrimental issue, but coupled with the rising interest rate increases of adjustable rate mortgages (ARMs), the market has fostered a short sale environment. The sub-prime market, in particular, has suffered the worse fall out throughout the country as many loans have gone into default, foreclosure rates have risen and lending institutions have folded. When consumers find themselves ?upside down? in property value, unable to afford their adjusted mortgage payments and delinquent on their home loans, they are often forced to financially weather the storm, foreclose on the property or engage in a short sale of the home.
March 3rd, 2008 | Posted in Archive,Articles,Featured | Read More »
[Disclaimer: The information contained in this article is general business advice and should not be construed as legal advice or legal opinion.]
The Sub-prime Meltdown has imploded more than 200 of the largest mortgage companies and there is no end in sight. As foreclosures mount, there have been the inevitable industry shake-ups and chaoses resulting in consolidations and layoffs as mortgage lenders are unable to fund repurchase demands by the secondary market. Liquidity has dried up as warehouse lenders and secondary market investors employ very restrictive underwriting criteria. Do you view this turmoil as a time for survival or opportunity? My advice is to survive by viewing this turmoil as an opportunity to thrive. Fear of failure will become a self-fulfilling prophesy. Doing nothing is an action plan by default and results in downsizing. This is a formula for disaster and eventual death. Taking advantage of the new dynamics of the mortgage industry is the action plan that is needed for ultimately surviving and thriving. I call the action plan ?Grow or Die in 2008?. Identify the growth opportunity segments of the mortgage industry and pursue one or more of them. We have the solutions: grow your territory, grow your profit margin and control, grow your market share, grow your product lines and grow your profit centers. He who hesitates is lost.
March 3rd, 2008 | Posted in Archive,Articles,Featured | Read More »
Many brokers seem perplexed about hard money and when it is most appropriate for their borrowers. To fully understand and utilize a hard money loan, it is critical to know what hard money is, the difference between hard money and traditional lending, when a hard money loan is appropriate for clients, and understand common pitfalls associated with brokering a hard money loan.
What is hard money?
The definition of ?hard money? in real estate financing is essentially a non-bankable loan. Lenders are essentially loaning on the borrower?s ?hard assets?. The name hard money is frequently interchanged with ?no-doc?, private loans, bridge loans, etc. Hard money loans close quickly with little documentation.
March 3rd, 2008 | Posted in Archive,Articles,Featured | Read More »
A lot of people don’t...
