Helping Washington State homeowners learn more about their mortgage options.
A few weeks ago, I helped a Kent couple purchase a condominium located in Seattle for their daughter to live in while she attends college at Seattle University. They were prequalifed with their credit union, however the credit union was treating the transaction as if it were an investment property even though the couple (we’ll call them Mr. and Mrs. Kent) were not going to rent the property.
This week is packed full of scheduled economic indicators that may impact mortgage rates. Mortgage rates are based on mortgage backed securities (bonds). Typically, good news for stocks means that mortgage rates may rise as investors will trade the safety of bonds for a greater return received from stocks. The reverse is also true. Signs of inflation will also impact mortgage rates for the worse. Here are some of the scheduled reports to be released this week:
Three years after the Civil War, Memorial Day began as Decoration Day to be "a time for the nation to decorate the graves of the war dead with flowers" The end of May was considered a time where blooms would be readily available.
General Orders No. 11, Grand Army of the Republic Headquarters.
I. The 30th day of May, 1868, is designated for the purpose of strewing with flowers, or otherwise decorating the graves of comrades who died in defense of their country during the late rebellion, and whose bodies now lie in almost every city, village and hamlet churchyard in the land. In this observance no form or ceremony is prescribed, but Posts and comrades will, in their own way arrange such fitting services and testimonials of respect as circumstances may permit.
We are organized, Comrades, as our regulations tell us, for the purpose among other things, "of preserving and strengthening those kind and fraternal feelings which have bound together the soldiers sailors and marines, who united to suppress the late rebellion." What can aid more to assure this result than by cherishing tenderly the memory of our heroic dead? We should guard their graves with sacred vigilance. All that the consecrated wealth and taste of the nation can add to their adornment and security, is but a fitting tribute to the memory of her slain defenders. Let pleasant paths invite the coming and going of reverent visitors and fond mourners. Let no neglect, no ravages of time, testify to the present or to the coming generations that we have forgotten as a people the cost of a free and undivided republic.
If other eyes grow dull and other hinds slack, and other hearts cold in the solemn trust, ours shall keep it well as long as the light and warmth of life remain in us.
Let us, then, at the time appointed, gather around their sacred remains, and garland the passionless mounds above them with choicest flowers of springtime; let us raise above them the dear old flag they saved; let us in this solemn presence renew our pledge to aid and assist those whom they have left among us a sacred charge upon the Nation's gratitude—the soldier's and sailor's widow and orphan.
II. It is the purpose of the Commander‑in‑Chief to inaugurate this observance with the hope that it will be kept up from year to year, while a survivor of the war remains to honor the memory of his departed comrades. He earnestly desires the public press to call attention to this Order, and lend its friendly aid in bringing it to the notice of comrades in all parts of the country in time for simultaneous compliance therewith.
III. Department commanders will use every effort to make this Order effective.
By Command of:
John A. Logan
Commander in Chief
May 5, 1868
This past month, I have met with more clients than "usual". A typical transaction for me has been pretty much completed over the internet via my secure on-line loan application, with email and over the phone. It was an exception for me to meet clients. This was not because I didn't want to, I simply wasn't asked to and clients opted for the convenience offered by the internet.
This month, I had a spike in face to face meetings with clients. I'm not sure if this is going to be a continued trend or if May's meetings have been some sort of fluke…I do know I really enjoy meeting my clients "IRL" when our schedules allow. Three of these meetings took place when I attended the signings at escrow offices from Federal Way to Lynnwood, and one at a restaurant near SeaTac Airport. All three were first time home buyers. I wasn't really "needed" beyond being there. With having the background of managing an escrow branch for Washington Title, it's crucial to me by the time my clients reach the signing table, their questions about mortgage have been answered. A home buyer or someone who's refinancing shouldn't have to ask their escrow officer about the terms of their mortgage…their mortgage originator should have fully educated their client well before this point. With that said, I see nothing wrong with a borrower asking the signer to explain the terms – the borrower should, however, already understand their loan program.
Regardless of if I'm attending a signing or not, I'm always available to answer any questions that may pop up. And my Processor and I always review the estimated HUD-1 Settlement Statement before my client's appointment to make sure it's as accurate as possible (assuming the escrow company provides it to us, which they do 99% of the time).
Will your mortgage originator join you at the signing table? If this is important to you, then it is something you need to ask a potential mortgage originator BEFORE you decide on which lender you're going to work with. Here are more tips on things to consider when selecting the mortgage professional who will be helping you with your next home purchase or refinance.
Many of my mornings have been spent watching CNBC's Mark Haines with Erin Burnett and I'm saddened to learn that Mark passed away at the young age of 65. I loved his wit, humor and ability to cut through political bolony.
Here's one of my favorite Mark Haines moments.
My heart goes out to his family and friends.
The Consumer Protection Financial Bureau would like you to vote on two different proposed mortgage disclosure forms created to replace the current Good Faith Estimate and Federal Truth in Lending documents. You have until Friday to make your selection between the Pecan Bank or the Ficus Bank examples. Both contain (and are missing) the same information.
I personally prefer Ficus Bank (the darker example) as it discloses key information at the top of the form, including the interest rate and monthly payment. The Pecan example features projected payments along the top section along funds due at closing being the very first box on the form. I've written more about the proposed disclosures at Rain City Guide. It's really a choice of style and arrangement of content.
I still believe that most consumers would rather return to a detailed Good Faith Estimate featuring all closing cost itemized instead of having certain cost lumped together where it's hard to see exactly what they're paying for. Why not have the Good Faith Estimate resemble an estimated HUD-1 Settlement Statement so that there is congruency between the beginning of the transaction and closing?
I've provided my opinions and vote to the CFPB, have you?
After you visit CFPB's site and have voiced your opinion, I'd love to know which selection you made and why.
I received a really nice thank you card from Shannon Ressler at Findwell Realty last week that I want to share with you. We recently helped Shannon's clients buy a vintage bungalow that was a short sell in the Magnolia neighborhood of Seattle using an FHA insured mortgage. Being a short sell and an FHA insured loan, there was no shortage of paper work and the transaction was coming "down to the wire".
Closing was set to take place on Friday…and early Thursday morning, I received a message from one of our buyers saying he was flying out at noon for a family event…he'd be back on Monday. Luckily Mike was able to reschedule his flight until four, however, we were still in a crunch to get docs out. NOTE: I normally like to have loan docs out several days before signing…but sometimes transactions (especially short sales) don't happen that way.
Extentending contracts with short sales can be a chore since in addition to dealing with a buyer and a seller, you also have the seller's lender. Adding to this, I had renegotiated our clients interest rate lock lower and the lender I had the rate locked with charges a higher extension fee once a rate lock has been renegotiated. We really needed to close on time.
We were able to rush loan docs out to the escrow company. As a correspondent lender, we prepare our loan docs at our main office in Kent and we make our own underwriting decisions (following guidelines, of course)…escrow was gracious receiving loan docs last minute AND THEN, their system crashes. I have to say, I've never had this happen! Mike's flight out was rapidly approaching. We were running out of time and escrow's computers were not cooperating.
Marilyn Porter, President of Mortgage Master Service Corporation (and my sister-in-law) had an additional set of their loan docs printed and we arranged to meet our buyers at Sharps Roasters by SeaTac Airport. While we were heading to Sharps, Mike and Mary obtained their cashiers checks for the estimated amount due for closing. Marilyn even had a couple orders of sliders and fries waiting for everyone…figuring with all the rushing around, they'd probably be hungry.
By the time we were done with the signing, escrow's system was back up and they emailed their docs (escrow instructions, estimated HUD-1 Settlement Statement) to our clients to sign and return. I created a video review of their estimated HUD since escrow was not able to review it with them.
Our job wasn't over. Escrow needed the buyer's cashiers checks before 4:00 that day in order to have them in time for funding tomorrow. We wound up having the wire instructions emailed to our phones and we deposited the buyers checks directly into escrow's accounts.
And, I'm happy to say that we DID fund and close on time.
I am so proud of the crew I work with at Mortgage Master Service Corporation.
Thank YOU Shannon, for your recommendation and thoughtful card! Shannon was an asset throughout this transaction, it was a great team effort from all.
Rhonda Porter is a Licensed Mortgage Originator MLO121324 living in the greater Seattle area. Rhonda began her career in 1986 in the title and escrow industry and began her mortgage career in 2000. She enjoys helping people understand the mortgage process and started writing The Mortgage Porter in late 2006. Read More…
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