Archives for May 2008

Sierra Crest Condominiums


Editors Note:  I would like to welcome our “first” Sunday Driver, Jason Mook, who is going to tour us around Sierra Crest in Puyallup.   Jason is a Realtor with Windermere Real Estate/South and is the author of Puyallup blog A Generous People.

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Last Chance for a Patches Pal Paver

JP Patches was in West Seattle yesterday, as covered here by the West Seattle Blog.  The fundraising for JP’s statue is wrapping up and I understand that your last chance to purchase a Patches Pal Paver is tomorrow, Monday, May 19, 2008.   Don’t miss this opportunity to have your name, words or wishes at the base of the statue honoring JP Patches and Gertude.   You can get your paver by clicking on JP’s mug on the right side of this site.  I have two pavers and can’t wait to see JP’s statue.

To see progress of the statue, click here.

To “Make a Loan” or Not “Make a Loan”: That is the Question

Yesterday I attended the Mortgage Broker’s Commission Meeting at Bellevue City Hall.  It was more tame than the one I was at the previous week which focused on the new issues facing Correspondent Lenders becoming licensed under the CLA…I think that’s partly because we were under-represented and that many mortgage brokers with warehouse credit lines attended last week’s meeting.  Jillayne Schlicke of CE Forward did a great job taking live notes and you can read them here.  This legislation is all based on defining if a mortgage company is "making a loan": mortgage brokers are not–lenders with a credit line are.  DFI and WAMB are working on a more precise definition.

From WAMB President, Dave Erickson:

On April 24 at 11:00 AM, a curve ball was thrown at our industry in the form of an explanation of a change to licensing requirements resulting from the recently-passed Senate Bill 6471.

But unlike most pitches from the mound, where you can study the pitcher and watch the ball as it comes at you, this curve ball came from left field. 

We never saw the windup, because there wasn’t one. We never got to swing the bat.  Due to no fault of our own, we took the pitch and Strike One was called.

There will not be a Strike Two.

As of June 14, 2008, Senate Bill 6471 requires that any company who is deemed to be "making loans" in the State of Washington become licensed under the Consumer Loan Act (CLA).

Due to the way the Bill was written, many mortgage brokers are finding themselves falling under the definition of "making loans." The implication of this Bill is that these mortgage brokers and loan originators now licensed under the Mortgage Broker Practices Act must now become licensed under the Consumer Loan Act (CLA)….

Upon receipt of DFI’s notification, WAMB scheduled a meeting with DFI officials to explain our concerns and demonstrate how this legislation will harm our industry and consumers.  We explained the implications on mortgage brokers and loan originators and came out of the meeting with several items of agreement:

  • WAMB needs a definition on what constitutes "making a loan" for the purpose of keeping as many mortgage brokers and loan originators as possible under the regulatory purview of the Mortgage Broker Practices Act.
  • WAMB will work with DFI via the rules process to create or clarify rules about how businesses are regulated under the Consumer Loan Act with the intention of lessening the onerous compliance requirements of the Act.
  • WAMB will work with DFI via the rules process to discuss issues including:  bond requirements, annual fee assessments, clarification of fees charged to consumers that may or may not be allowed under the CLA, revisiting the examination component of the CLA which differs from the Mortgage Broker Practices Act and attempt to lessen the burden of compliance to the detriment of our industry and the consumers we serve.

DFI has committed to providing a Policy Statement by Friday, May 16th regarding the definition of "making a loan" for the purpose of clarifying who must comply with the new law by the June 12 deadline. 

DFI’s Policy Statement will also provide guidance regarding which aspects of licensing must be completed by June 12 and what areas may be pushed out until the rules process is completed.

DFI has conveyed to WAMB that they wish to move as quickly as possible via the rules process.  DFI seeks to complete the rules process by November 4 which would provide ample time to formulate a legislative response for the start of the next legislative session, should one be necessary….

Stay tuned. 

This is What Love Looks Like


Every year my son’s Great Grandma, better known as Nona, makes me a Rhubarb  Custard Pie.  It’s usually after my birthday because she waits until the rhubarb is ready from her garden…and it’s worth the wait!  I’m one lucky lady.

Happy Mother’s Day

A little song for all of us Moms in honor of Mother’s Day this Sunday.

Hat tip to my friend, Lisa Wallace-Baker who shared this with me back in November.

The Mortgage Rates You’ve Been Waiting For: Conforming-Jumbo under 6!

EDITORS NOTE: THIS POST IS FROM 2008 – THE MORTGAGE RATES QUOTED ARE NO LONGER VALID. For a current rate quote on your home located in Washington state, click here.

Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties).  The conforming rate quote below is based on owner occupied, “full doc” purchase with a sales price of $500,000 and a loan amount of $400,000.  This scenario includes reserves (taxes & insurance) not being waived.   Rates quoted are priced based on a 45 day lock with 1 point and there are no prepayment penalties on any of the rates quoted below.

30 Year Fixed:  5.625% (APR 5.776%)

30 Year Fixed with 10 Year Interest Only:  6.000%  (APR 6.140%)

15 Year Fixed: 5.250% (APR 5.500%)

Conforming-Jumbo Rates.   Pricing is based on the same criteria above except where the loan amount is $417,001 – $567,500 for properties in King, Snohomish or Pierce Counties.  (For other conforming-jumbo loan limits in Washington state, click here); specifically priced for a sales price of $650,000 and a $520,000 loan amount.

30 Year Fixed:  5.750% (APR 5.898%)

30 Year Fixed with 10 Year Interest Only:  6.250% (APR 6.386%)

JUMBO (Non-Conforming) Rates.   Pricing is based on the same criteria above, with the exception that the loan amount is $417,001-$650,000 (20% down).   The specific scenario used to price the rates below is a sales price of $850,000 with a loan amount of $680,000.

30 Year Fixed:  7.500% (APR 7.758%)

FHA.  Pricing based on credit score of 620 or better and loan amounts up to $362,790 for FHA in King, Snohomish and Pierce Counties.

30 Year Fixed:  5.750% (APR 6.527%).

FHA-Jumbo. Pricing based on loan amounts from $362,791 – $567,500 for King, Snohomish and Pierce Counties.  For other loan limits in Washington State, click here.

30 Year Fixed: 5.875% (APR 6.649%)

VA.  Pricing based on credit scores of 620 or better based on loan amounts up to $417,000.

30 Year Fixed:  5.875% (APR 6.188%)

Prime Rate (what HELOCs are based on):  5.000%

This is just a small sample available of rates and products.  Rates are as of Friday, May 9, 2008 at 8:00 a.m. and may change at any timeFollow me on Twitter to see rates I’m quoting.  Available programs may change at anytime as well.   This is not a guarantee nor is it a commitment of interest rate.

For your personal rate quote for your Washington State property, please contact me.

Washington Correpsondent Lenders are forced to have Consumer Loan License

DbToday’s Mortgage Brokers Commission meeting was attended by many concerned mortgage brokers and correspondent lenders (brokers with warehouse lines of credit) who feel as though they’ve had a real doozy pulled over them by recent legislation, specifically SB 6471.   Deb Bortner of DFI (bad photo compliments of my Treo) insists that it was not DFI’s intentions to rope in the correspondent lenders who are licensed as mortgage brokers to be regulated by the Consumer Loan Act.

Many Washington State correspondent lenders (and we, loan originators who work for a correspondent lender) are feeling very frustrated (to sugar coat it).  A majority of us have abided by the State’s licensing laws, paid our dues, passed our background checks and the exam…even if we were not a “true” broker.  We played along and played by the rules.  In an attempt to “capture” a few Correspondents who apparently do not broker (they’re direct endorsed lenders, like Mortgage Master, except we will broker a small portion of our loans), who were exempt from the Mortgage Brokers Practice Act, the State decided to deem any mortgage broker with a warehouse line (i.e. Correspondent Lenders) will now be regulated under the Consumer Loan Act.   Correspondent Lenders can retain both licenses and be held liable accountable under both acts, or just maintain their newly required Consumer Loan License.   There’s significant expenses for both licenses which I may or may not get into in a future post. 

After Deb Bortner defended DFI’s position, she handed the floor over to the audience and here’s a few of the comments from “the floor” of brokers that  I found interesting (I’m paraphrasing, since I was not able to write fast enough and I’m not quoting the individual broker):

“This [obtaining a consumer loan license] goes against every value we have in our business.  We can now hire felons, are no longer required to do continue education and the consumer will pay.   What you’re doing is STUPID.”

“This is a nasty little bill with nasty little consequences.”

“We are Correspondent Lenders.  We are different than Mortgage Brokers and we are NOT a Pawn Shop.”

“I wish the media was here to see all of these mortgage brokers fighting for the consumer.”

“For half of the mortgage industry to have to go through the licensing again is crazy.”

“Everyday that goes by is less chance of closing a loan.  We [correspondent lenders] have the ability to draw docs and close loans quicker and more efficiently than true mortgage brokers.”

“How many lenders were actually not licensed through the loophole?  It seems the motivation here is more taxes.”

“What is DFI going to do with all the extra money?”

Mortgage Brokers and Correspondent Lenders, your next chance to hear what DFI has to say is next week in Bellevue on Tuesday, May 13–however you must RSVP by this Friday, May 9, 2008.  For more information, click here.   As of midnight, June 11, 2008, if you have a warehouse line of credit and you’re a mortgage broker or correspondent lender, you need a Consumer Loan License.

Update on Mortgage Broker/Correspondent Lender DFI Meeting

Thanks to Jillayne Schlicke for posting this because I personally didn’t receive anyword from DFI (I do receive emails regarding the Mortgage Broker Commission meetings)…this one hits close to home as the company I work for, Mortgage Master, is a Correspondent Lender.   DFI did send an email to the President of our company however NOTHING was on their site when she told me about this.

So this is another shout out to all the mortgage brokers in Washington State, especially those impacted by SB 6471, which in my opinion seems to have been passed this quite conveniently by telling WAMB this would not impact mortgage brokers.   WRONG.  Mortgage brokers who have a warehouse line (correspondent lenders) are going to be dramatically impacted by this law.

Meeting Of The Mortgage Broker Commission To Discuss The Impacts Of SB 6471
May 7, 2008, at 1:00 p.m.
Renton Community Center, Banquet Room (100 max capacity)
1715 Maple Valley Highway
Renton, WA (Driving Directions)

Please attend and pass the word!