Wednesday, October 27, 2010
Thursday, October 21, 2010
Mortgage Manifesto uses Facebook
I want to know what you think…
Many companies and sales individuals are (and should) be using social media to promote themselves,and most importantly their buyers and sellers. By putting themselves 'out there', they are showing just what clients need and want… the human aspect of a sales person ( loan officer, real estate agent etc..). Social Media has been a way for everyone to really get to know each other. We have seen job markets begin to use it as your first impression, companies using for all sorts of information.
I work with two different companies and I saw those companies overlap yesterday that made my mind race. I work as social media marketing manager for Digi Tech Studios and a loan officer assistant with Prospect Mortgage. I truly believe in the power of social media and the numbers are there to prove it. I believe that people needed this to bridge the gap and to really get to know the power of our world. When you post on Facebook you have made it available for the world to share. Does this mean that you want it shared to the world? You have heard stories and I have shared stories of life inside the mortgage industry. I have talked about how to get prepared before even speaking to a loan officer or agent. I just never that I should go as far as to tell you that if you don’t want to the world, including underwriters to know what is going on in your life then please check the security levels of Facebook. It is there to protect you against everything and everyone! I remind you of this because I had a file submitted to underwriting for approval and the underwriter looked at Facebook for an approval.
This means I am adding another aspect to your mortgage preparation checklist.... Check your security levels.
If you don’t know here is how.. http://www.reclaimprivacy.org/
Now, I can see it both ways… You have made it public information by posting it on the web. An underwriter’s job is to evaluate risk. However, it is personal information in which you were sharing with your friends. You put yourself out there by not checking your security levels.
How do you feel about this?
Many companies and sales individuals are (and should) be using social media to promote themselves,and most importantly their buyers and sellers. By putting themselves 'out there', they are showing just what clients need and want… the human aspect of a sales person ( loan officer, real estate agent etc..). Social Media has been a way for everyone to really get to know each other. We have seen job markets begin to use it as your first impression, companies using for all sorts of information.
I work with two different companies and I saw those companies overlap yesterday that made my mind race. I work as social media marketing manager for Digi Tech Studios and a loan officer assistant with Prospect Mortgage. I truly believe in the power of social media and the numbers are there to prove it. I believe that people needed this to bridge the gap and to really get to know the power of our world. When you post on Facebook you have made it available for the world to share. Does this mean that you want it shared to the world? You have heard stories and I have shared stories of life inside the mortgage industry. I have talked about how to get prepared before even speaking to a loan officer or agent. I just never that I should go as far as to tell you that if you don’t want to the world, including underwriters to know what is going on in your life then please check the security levels of Facebook. It is there to protect you against everything and everyone! I remind you of this because I had a file submitted to underwriting for approval and the underwriter looked at Facebook for an approval.
This means I am adding another aspect to your mortgage preparation checklist.... Check your security levels.
If you don’t know here is how.. http://www.reclaimprivacy.org/
Now, I can see it both ways… You have made it public information by posting it on the web. An underwriter’s job is to evaluate risk. However, it is personal information in which you were sharing with your friends. You put yourself out there by not checking your security levels.
How do you feel about this?
Sunday, October 17, 2010
Taking a Seat Back in the Mortgage Manifesto
Sitting at the football game a few weeks ago; it was so crowded in our section that everybody limbs touched. It was probably because there was someone not assigned to that area that made us all pay. If you are a season ticket holder then you can claim your space by renting a seat back. The are there at every gave for you throughout the season. I thought of them as a way to weed out the people that were not suppose to be in that section. This could help the rest of us enjoy the game.
The stricter guidelines are a way for the mortgage companies to weed out the homeowner's that aren't suppose to be there. As a new homebuyer you have to weed through loan officers, the loan officer and processing has weed through documentation,underwriters weed through the documentation to give a decision and the investors weed through the loans to find a solid one. NOW... that is weeding in a trickle effect and this happens everyday in the mortgage industry. Which is another reason for the Mortgage Manifesto.
The hard part for everyone is that the untruthful loan officers and borrowers have made it all more difficult for all of us to trust our decision. I just ask that you not listen to the media and trust that you have selected a loan officer based on intuition or referral of a trusted party. The loan officers are trusting that you have given them truthful documentation. When they come back to you for more documentation then you need to know that everyone is just out there to try and show the investor that there is no doubt.
I have mentioned this before and feel that this needed to be mention again in order for us all to have great experience. Trust you have made the right decision by following the rules and the loan officers guideline. In turn, loan officer can help to fight your battle one piece of documentation at a time.
The stricter guidelines are a way for the mortgage companies to weed out the homeowner's that aren't suppose to be there. As a new homebuyer you have to weed through loan officers, the loan officer and processing has weed through documentation,underwriters weed through the documentation to give a decision and the investors weed through the loans to find a solid one. NOW... that is weeding in a trickle effect and this happens everyday in the mortgage industry. Which is another reason for the Mortgage Manifesto.
The hard part for everyone is that the untruthful loan officers and borrowers have made it all more difficult for all of us to trust our decision. I just ask that you not listen to the media and trust that you have selected a loan officer based on intuition or referral of a trusted party. The loan officers are trusting that you have given them truthful documentation. When they come back to you for more documentation then you need to know that everyone is just out there to try and show the investor that there is no doubt.
I have mentioned this before and feel that this needed to be mention again in order for us all to have great experience. Trust you have made the right decision by following the rules and the loan officers guideline. In turn, loan officer can help to fight your battle one piece of documentation at a time.
Tuesday, October 12, 2010
Never Knowing
I wanted to take a break and focus on a different aspect of the mortgage industry. Insider or not everybody has felt the turmoil of the encomony. I have used Jack Johnson's song “Never Know" from his album called In Between Dreams in 2005 as a comparision in this article. The song has such a great tune, but have you ever listened to the words? As I was deciding what to write this song just came right in my head. I had to go listen to the song and print the lyrics to share to all of you. I don’t know his thought pattern behind this song but I do know that it reminds me of what is happening in this nation with the mortgage industry and economy. It might just be me as I am consumed in this world, but you can be the judge. I have included in this document the lyrics below with a little switch to show my effects.
Never Know
------Jack Johnson ( his lyrics are before the dots and my thoughts/ replies are after) I would want to hear what you think???
I hear this old story before……………………………. The mortgage industry story is talked and heard about everyday.
Where the people keep killing for the metaphors……………….watching TV and listening to media night after night
Don't leave much up to the imagination,…………………..It stares us in the face right on the front page of the media
So I, wanna give this imagery back.............................. Many people has this imagery before it became more than just an image.
But I know it just ain't so easy like that…………………………… we are all struggling together
So, I turn the page and read the story again…………………AGAIN AND AGAIN, OVER AND OVER
And again and again
It sure seems the same, with a diff. name.................What bank today? What home forclosed?
We're breaking and rebuilding………………..The economy that we are living in now is ready for rebuilding and we have a long way to run.
And we're growing....................................Time never stops. Let's grow up and stand up.
Always guessing..................................What is going to change in the mortgage rates or guidelines today? Should we lock or not?
Never knowing………………………………….Who knew that the mortgage industry would end up this way
Shocking but we're nothing..................It is shocking watching the guideline changes because of what our enconomy has learned from simply trying to help people.
We're just moments
We're Clever but we're clueless………………. Thought we were being clever offering mortgages to help everyone.
We're just human.................................trying, working, succeeding and dying never the less we never know.
Amusing but confusing........................I don't see many people amused. It has become amusing and confusing to help strong occupants get mortgages. It is hoop after hoop for all of us to jump through.
Were trying but where is this all leading…………………….NEVER KNOWING! The fearless leaders are figuring out attempts to get us out of this.
Never Know.......................................... In the end is all of this going to help? What is this teaching everyone?
It all happened so much faster..............................mortgage industry always changes at fast paced but this cycle flashed right in front of my eyes.
Than you could say disaster………………………………… All this did end up to be a disaster and happened at a shocking rate.
Wanna take a time lapse....................................................Is there really time for this? Do you want to go back in time?
And look at it backwards………………. Would things have been done differently?
From the last one
And maybe thats just the answer................................Everyone is trying to win, keep up and not end up like the last one.
That we're after
But after all
We're just a bubble in a boiling pot………………… All of us scrambling to make our house payments and keep our houses.
Just one breath in a chain of thought......................Just little ants running around in the Powers heads
The moments just combusting...................................The banks, our neighbors, our employers, friends and family
Feel certain but we'll never never know
Just seems the same.......................All of these changes and we haven't seen much different as foreclosures are still at a high rate.
Give it a diff. name..................................................Seems like for once that many of us are in the same boat. Some trained in skilled jobs that thought it would be different for them coming out of school.
We're beggin and we're needing………………………………..We have been trying and looking for new solutions to get us out of this mess so we can breathe.
And we're trying and we're breathing..............................Too many skilled workers applying for the same jobs and not enough jobs left. The loan officers that are left in this industry have been brused from the ones that didn't want to play by the rules.
Never knowing
Shocking but we're nothing.....................We are something... don't forget that!
We're just moments......................What are we moments away from? solution? Is there one?
We're Clever but we're clueless......................Clueless
We're just human........................Do us humans have the answer?
Amusing but confusing
Helping, we're building……………………. It is time to take that approach in our life. If you haven't then stand up. It is great to see builders reaching out to help others in need when their business is done.
And we're growing................................................. We are hopefully growing together as a nation to help us out of this economy mess and the mortgage monster.
Never Know
Knock knock on the door to door................................You hope every day that you don't awake to that terrible knock on your door or knock in the face.
Tell ya that the metaphor is better than yours......................No longer about just leaving that corner office, but having to learn the meaning of life and family over again.
And you can either sink or swim……………………… we together have to make this decision
Things are looking pretty grim………………………..Trying to keep positive has become harder than ever
which means that strain and stress is everywhere.
If you don't believe in what this one feeding........................... Are the powers to be that we are suppose to trust feeding us the right information?
Its got no feeling.........................I am feeling alright? You?
So I read it again.......................Every day.. same story different day.
And again and again
Just seems the same........................... All you hear and have to explain. There are so many houses to sell and not enough qualified people.
Too many different names..............Names of friends and family lossing jobs and companies droping like flies.
Our hearts are strong our heads are weak………………We need to push for both.
We'll always be competing never knowing.............True!
Never knowing
Shocking but we're nothing
We're just moments
We're Clever but we're clueless
We're just human
Amusing but confusing
But the truth is
All we got is questions
We'll Never Know
Never Know.................As the world turns the answers come. Now, it is all just never knowing.
Never Know
Now listen again for yourself... http://www.youtube.com/watch?v=_j6ZEOXoNvw
Thanks Jack! Great Honesty!
Never Know
------Jack Johnson ( his lyrics are before the dots and my thoughts/ replies are after) I would want to hear what you think???
I hear this old story before……………………………. The mortgage industry story is talked and heard about everyday.
Where the people keep killing for the metaphors……………….watching TV and listening to media night after night
Don't leave much up to the imagination,…………………..It stares us in the face right on the front page of the media
So I, wanna give this imagery back.............................. Many people has this imagery before it became more than just an image.
But I know it just ain't so easy like that…………………………… we are all struggling together
So, I turn the page and read the story again…………………AGAIN AND AGAIN, OVER AND OVER
And again and again
It sure seems the same, with a diff. name.................What bank today? What home forclosed?
We're breaking and rebuilding………………..The economy that we are living in now is ready for rebuilding and we have a long way to run.
And we're growing....................................Time never stops. Let's grow up and stand up.
Always guessing..................................What is going to change in the mortgage rates or guidelines today? Should we lock or not?
Never knowing………………………………….Who knew that the mortgage industry would end up this way
Shocking but we're nothing..................It is shocking watching the guideline changes because of what our enconomy has learned from simply trying to help people.
We're just moments
We're Clever but we're clueless………………. Thought we were being clever offering mortgages to help everyone.
We're just human.................................trying, working, succeeding and dying never the less we never know.
Amusing but confusing........................I don't see many people amused. It has become amusing and confusing to help strong occupants get mortgages. It is hoop after hoop for all of us to jump through.
Were trying but where is this all leading…………………….NEVER KNOWING! The fearless leaders are figuring out attempts to get us out of this.
Never Know.......................................... In the end is all of this going to help? What is this teaching everyone?
It all happened so much faster..............................mortgage industry always changes at fast paced but this cycle flashed right in front of my eyes.
Than you could say disaster………………………………… All this did end up to be a disaster and happened at a shocking rate.
Wanna take a time lapse....................................................Is there really time for this? Do you want to go back in time?
And look at it backwards………………. Would things have been done differently?
From the last one
And maybe thats just the answer................................Everyone is trying to win, keep up and not end up like the last one.
That we're after
But after all
We're just a bubble in a boiling pot………………… All of us scrambling to make our house payments and keep our houses.
Just one breath in a chain of thought......................Just little ants running around in the Powers heads
The moments just combusting...................................The banks, our neighbors, our employers, friends and family
Feel certain but we'll never never know
Just seems the same.......................All of these changes and we haven't seen much different as foreclosures are still at a high rate.
Give it a diff. name..................................................Seems like for once that many of us are in the same boat. Some trained in skilled jobs that thought it would be different for them coming out of school.
We're beggin and we're needing………………………………..We have been trying and looking for new solutions to get us out of this mess so we can breathe.
And we're trying and we're breathing..............................Too many skilled workers applying for the same jobs and not enough jobs left. The loan officers that are left in this industry have been brused from the ones that didn't want to play by the rules.
Never knowing
Shocking but we're nothing.....................We are something... don't forget that!
We're just moments......................What are we moments away from? solution? Is there one?
We're Clever but we're clueless......................Clueless
We're just human........................Do us humans have the answer?
Amusing but confusing
Helping, we're building……………………. It is time to take that approach in our life. If you haven't then stand up. It is great to see builders reaching out to help others in need when their business is done.
And we're growing................................................. We are hopefully growing together as a nation to help us out of this economy mess and the mortgage monster.
Never Know
Knock knock on the door to door................................You hope every day that you don't awake to that terrible knock on your door or knock in the face.
Tell ya that the metaphor is better than yours......................No longer about just leaving that corner office, but having to learn the meaning of life and family over again.
And you can either sink or swim……………………… we together have to make this decision
Things are looking pretty grim………………………..Trying to keep positive has become harder than ever
which means that strain and stress is everywhere.
If you don't believe in what this one feeding........................... Are the powers to be that we are suppose to trust feeding us the right information?
Its got no feeling.........................I am feeling alright? You?
So I read it again.......................Every day.. same story different day.
And again and again
Just seems the same........................... All you hear and have to explain. There are so many houses to sell and not enough qualified people.
Too many different names..............Names of friends and family lossing jobs and companies droping like flies.
Our hearts are strong our heads are weak………………We need to push for both.
We'll always be competing never knowing.............True!
Never knowing
Shocking but we're nothing
We're just moments
We're Clever but we're clueless
We're just human
Amusing but confusing
But the truth is
All we got is questions
We'll Never Know
Never Know.................As the world turns the answers come. Now, it is all just never knowing.
Never Know
Now listen again for yourself... http://www.youtube.com/watch?v=_j6ZEOXoNvw
Thanks Jack! Great Honesty!
Thursday, September 23, 2010
Sources of Documentation for Mortgage Loan
If you have gotten passed the general application process then you are ready to support your application with supporting documentation. The loan officer or broker that you have chosen is going to require certain documentation to get your file submitted. One of the biggest pieces of advice that I can give is to listen and follow directions. Certain documentation and ways of documentation are required for a reason and it just holds up the process to give us only half. Just remember that we are only following instructions called guidelines issued by the federal agencies. Below is a list of sources if you are unsure as to where to find certain pieces of documentation.
SOURCE FOR MISSING DOCUMENTS
Income
Pay Stubs/Earning: Statements this item can be provided by your current or ex-employer. Most employers keep records for three to five years.
1099: This item can be provided by your current or ex-contractor. Most contractors keep records for three to five years.
W-2: This item can be provided by your current or ex-employer. Most employers keep records for three to five years.
1040: Individual Tax Return This form can be obtained by filing Internal Revenue Form 4506. This form can be located on the Internal Revenue Service’s website,www.irs.gov/pub/irs-fill/f4506.pdf or call 1.800.829.1040.
You may also try to contact your Certified Public Accountant.
Corporate Tax Return: This form can be obtained by filing Internal Revenue Form 4506. It will be needed if you have 25% of more invested in the company. This form can be located on the Internal Revenue Service’s website,www.irs.gov/pub/irs-fill/f4506.pdf or call 1.800.829.1040.
You may also try to contact your Certified Public Accountant.
Rental Agreement: A licensed real estate agent should have copies of this document if they assisted you in renting your home. This information is also found on Schedule E of your tax returns. Schedule E form can be obtained by filing Internal Revenue Form 4506. This form can be located on the Internal Revenue Service’s website,www.irs.gov/pub/irs-fill/f4506.pdf or call 1.800.829.1040.
You may also try to contact your Certified Public Accountant.
Divorce Decree/Separation Agreement/Child Support Agreement: Your attorney or the court system in which the agreements or decrees were issued is the best sources for these documents.
Assets
Bank Statements/Cancelled Checks/Verification of Deposits Banks can provide 3 months average balance verification on bank letterhead and signed by an authorized bank employee. Proof of deposits can also be obtained by providing the approximate date and amount of the deposit.
Gift Letter: The best resource to obtain this document is the donor.
Stock Brokerage Statements: You may contact your broker for additional copies of your brokerage accounts. Be sure to include all pages. Profit and Loss Statement are two sources are your Certified Public Accountant or Accounting/Auditing Department. Balance Sheet the two best sources are your Certified Public Accountant or Accounting/Auditing Department.
Miscellaneous
Warranty Deed: The listing and selling real estate brokerage should have copies of this statement in their files. You may also try the closing attorney or escrow/title company.
Purchase and Sale Agreement: The listing and selling real estate brokerage should have copies of this statement in their files. You may also try the closing attorney or escrow/title company.
HUD-1 Settlement Statement: The listing and selling real estate brokerage should have copies of this statement in their files. You may also try the closing attorney or escrow/title company.
Profit and Loss Statement: The two best sources are your Certified Public Accountant or Accounting/Auditing Department. Balance Sheet the two best sources are your Certified Public Accountant or Accounting/Auditing Department.
Warranty Deed: The listing and selling real estate brokerage should have copies of this statement in their files. You may also try the closing attorney or escrow/title company.
Driver’s License: Contact the State’s Department of Motor Vehicles to obtain verification.
SOURCE FOR MISSING DOCUMENTS
Income
Pay Stubs/Earning: Statements this item can be provided by your current or ex-employer. Most employers keep records for three to five years.
1099: This item can be provided by your current or ex-contractor. Most contractors keep records for three to five years.
W-2: This item can be provided by your current or ex-employer. Most employers keep records for three to five years.
1040: Individual Tax Return This form can be obtained by filing Internal Revenue Form 4506. This form can be located on the Internal Revenue Service’s website,www.irs.gov/pub/irs-fill/f4506.pdf or call 1.800.829.1040.
You may also try to contact your Certified Public Accountant.
Corporate Tax Return: This form can be obtained by filing Internal Revenue Form 4506. It will be needed if you have 25% of more invested in the company. This form can be located on the Internal Revenue Service’s website,www.irs.gov/pub/irs-fill/f4506.pdf or call 1.800.829.1040.
You may also try to contact your Certified Public Accountant.
Rental Agreement: A licensed real estate agent should have copies of this document if they assisted you in renting your home. This information is also found on Schedule E of your tax returns. Schedule E form can be obtained by filing Internal Revenue Form 4506. This form can be located on the Internal Revenue Service’s website,www.irs.gov/pub/irs-fill/f4506.pdf or call 1.800.829.1040.
You may also try to contact your Certified Public Accountant.
Divorce Decree/Separation Agreement/Child Support Agreement: Your attorney or the court system in which the agreements or decrees were issued is the best sources for these documents.
Assets
Bank Statements/Cancelled Checks/Verification of Deposits Banks can provide 3 months average balance verification on bank letterhead and signed by an authorized bank employee. Proof of deposits can also be obtained by providing the approximate date and amount of the deposit.
Gift Letter: The best resource to obtain this document is the donor.
Stock Brokerage Statements: You may contact your broker for additional copies of your brokerage accounts. Be sure to include all pages. Profit and Loss Statement are two sources are your Certified Public Accountant or Accounting/Auditing Department. Balance Sheet the two best sources are your Certified Public Accountant or Accounting/Auditing Department.
Miscellaneous
Warranty Deed: The listing and selling real estate brokerage should have copies of this statement in their files. You may also try the closing attorney or escrow/title company.
Purchase and Sale Agreement: The listing and selling real estate brokerage should have copies of this statement in their files. You may also try the closing attorney or escrow/title company.
HUD-1 Settlement Statement: The listing and selling real estate brokerage should have copies of this statement in their files. You may also try the closing attorney or escrow/title company.
Profit and Loss Statement: The two best sources are your Certified Public Accountant or Accounting/Auditing Department. Balance Sheet the two best sources are your Certified Public Accountant or Accounting/Auditing Department.
Warranty Deed: The listing and selling real estate brokerage should have copies of this statement in their files. You may also try the closing attorney or escrow/title company.
Driver’s License: Contact the State’s Department of Motor Vehicles to obtain verification.
Friday, September 17, 2010
Get on the List
Have you ever tried to refinance or buy a house and had lenders everywhere calling you? I have been asked a many of times if we sell leads. The answer to that question is NO. When a lender pulls your credit then your name goes on a “trigger list” that can be sold to firms for companies to buy. It isn’t the mortgage companies doing this but the actual creditors. I suggest logging onto this website at least 48 hours before giving us permission to pull your credit. Here is a way for all you buyers to make sure that your name and information doesn’t get on that list…
http://www.optoutprescreen.com/
http://www.optoutprescreen.com/
Tuesday, September 7, 2010
FHA changes in 2010
If you have spoken with mortgage lenders recently then by now you are familiar with the term FHA loan. They came around in the depression era to encourage people to buy houses and stablize the market. They have gained popularity in the recent years as it made the loans affordable with lower down payments, flexible guidelines and typically lower credit scores. This economy and all the recovery acts and protection acts have changed the way mortgages are done. It began with the conventional loans and this year FHA jumped in. They announced back in the Spring that there were going to be three changes this year. They have been experiencing rising defaults which sent the cash flow below the mandated levels. They are hoping that these changes will give borrowers a stronger equity position making them less likely to default. The #1 change was the increase in credit score. I want to talk about #2 change which covers mortgage insurance premiums.
These mortgage insurance premiums are required to insure the lender against default. There are two types of mortgage insurances that come with FHA loans. The upfront mortgage insurance and the monthly mortgage insurance. The monthly mortgage is required until you have owned the house for 5 years and gained some equity making the loan to value of 78% or less. The upfront mortgage insurance is refundable during the first 5 years of your home loan. You are able to finance the upfront mortgage insurance making your loan amount more giving you higher payments and less equity.
The new policy will be for all loans taken after October 4, 2010. If you are planning on refinancing and currently have a FHA loan then please speak to a lender today. The changes include a decrease in the upfront mortgage insurance from 2.25% to 1% and the monthly will increase to .90% for Loan to value greater than 95% and .85% for loan to value less than 95%. It is slight changes but could impact your debt to income since the payment will be a little higher.
At this time I haven't heard the effective date for #3 change.... reducing seller concessions from 6% to 3%.
These mortgage insurance premiums are required to insure the lender against default. There are two types of mortgage insurances that come with FHA loans. The upfront mortgage insurance and the monthly mortgage insurance. The monthly mortgage is required until you have owned the house for 5 years and gained some equity making the loan to value of 78% or less. The upfront mortgage insurance is refundable during the first 5 years of your home loan. You are able to finance the upfront mortgage insurance making your loan amount more giving you higher payments and less equity.
The new policy will be for all loans taken after October 4, 2010. If you are planning on refinancing and currently have a FHA loan then please speak to a lender today. The changes include a decrease in the upfront mortgage insurance from 2.25% to 1% and the monthly will increase to .90% for Loan to value greater than 95% and .85% for loan to value less than 95%. It is slight changes but could impact your debt to income since the payment will be a little higher.
At this time I haven't heard the effective date for #3 change.... reducing seller concessions from 6% to 3%.
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