Recently on Rain City Guide

March 26, 2008 by Leave a Comment

I can’t tell you how honored I am to be a part of Seattle’s Rain City Guide.  Here are a couple of recent posts that I really encourage you to check out…

Jillayne Schlicke just wrote a dead on post regarding our local situation with affiliated business arrangements between real estate, title and escrow and mortgage companies.  This is a topic close to my heart as before I was in lending (8 years ago), I was in the title insurance industry for 14 years.  I’ve seen drastic changes over this time since large real estate companies have entered into arrangements with title companies.   Now the State is stepping in with new regulations.   Read Jillayne’s post: Title Insurance Affiliated Business Arrangements Under Scrutiny.

ARDELL wrote a very timely post: Should You Buy Before You Sell?  Her answer is NO!  And during these times, I’m likely to agree.   Bridge loans may be hard to come by and properties are taking longer to sell.

Don’t forget…I’m on vacation and will return on April 1.

Filed Under: Residential Purchase, Title Insurance, Weblogs Tagged With: ,

I’m Taking a Short Break

March 25, 2008 by 3 Comments

I’m taking a few days off to relax and recoup beginning Wednesday, March 26, 2008.Marilynhead_2   I will return to work on April 1, 2008.  While I’m away, should you need mortgage assistance for your properties located in Washington State, please contact Marilyn Porter, President of Mortgage Master Service Corporation, Licensed Loan Originator 510-LO21838, my "boss" and my sister-in-law.

Marilyn has been in the mortgage industry for over 30 years (I know she doesn’t look it…you’ll just have to trust me) and is a huge resource of information.   She can help you with rate quotes, locks, new purchases or refinancing (you can complete a loan application and she will receive your information) while I’m away…I’ll "take over" when I return back to work. 

Filed Under: People

Congratulations to Dawn’s Army

March 25, 2008 by Leave a Comment

Dawn

Dawn’s Army recently climbed 69 flights of the Columbia Tower as part of The Big Climb: an event to raise money for the Leukemia and Lymphoma Society.   Dawn’s Army consists of her family members and a crew from The Talon Group, where she was employed when she was diagnosed with leukemia.

You can tell their leader, Dawn Robandtim(pictured above), is quite proud of her team raising over $6,000 for this worthy cause.

You can still donate to LLS to help fight blood cancers.

Pictured to the right is "Gomer" and Tim Daniels, Chief Title Officer of The Talon Group and members of Dawn’s Army.

Note:  As soon as I have a group troop photo, I’ll post it here!

Here’s the troop photo:

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Filed Under: Charity

Fiduciary Duties for Mortgage Brokers

March 24, 2008 by 3 Comments

Last Friday, Governor Gregoire signed SB 6381 into law giving fiduciary duties to mortgage brokers.  This new law does not apply to loan originators who work for bank-mortgage companies (like WaMU, Countrywide, Wells Fargo, Chase, Bank of America, etc).   

Here are some of the highlights of what the law spells out for loan originators who work for mortgage brokers:

  • A mortgage broker must act in the borrowers best interest and in the utmost good faith towards the borrower
  • A mortgage broker shall not accept, provide, or charge any undisclosed compensation or realize any undisclosed remuneration that inures to the benefit of the mortgage broker on an expenditure made for the borrower.
  • A mortgage broker must carry out all lawful instructions provided by the borrower. 
  • A mortgage broker must disclose to the borrower all material facts of which the mortgage broker has knowledge that might reasonably affect the borrowers rights, interest or ability to receive the borrower’s intended benefit from the residential mortgage loan.  
  • A mortgage broker must provide an accounting to the borrower for all money…received from the borrower.

All of the above seems pretty straight forward to me and SHOULD all ready be happening when consumers work with a mortgage professional.  I have always put my clients best interest first–above mine.   The next two points are more surprising:

  • A mortgage broker may contract for  or collect a fee for services rendered if the fee is disclosed to the borrower in advance of the provision of those services. 

This will allow mortgage brokers to charge a fee for consultation, credit repair, working on preapprovals.  This could change how a Washington State mortgage broker is paid and how much they charge in origination.    

  • The fiduciary duty in this section does not require a mortgage broker to offer or obtain access to loan products and services other than those that are available to the mortgage broker at the time of the transaction.

I see this last point as a conflict with the entire bill.  What if the best loan for a consumer is FHA or VA and the mortgage broker does not have those loans available so they shoe-horn them into a loan they do have access to?  How is that acting in the clients best interest?  The other side of the coin is that if a mortgage broker has never provided a certain product (such as FHA or VA mortgages); how would they know if the consumer would be better off with these loans?

Note to Consumers and Real Estate Agents:  If you are a first time home buyer, have credit scores below 700 or are putting less than 20% down; ask your mortgage broker if they are able to provide FHA financing.  Those who have served our country should ask if VA financing is available. 

Jillayne Schlicke wrote an interesting post on this earlier this month at Rain City Guide.   This law is yet another reason why consumers may want to select a loan originator classified as a licensed loan originator working for a mortgage broker over a loan originator who works for mortgage-bank.

Filed Under: Legislation

Happy Easter

March 23, 2008 by 2 Comments

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The egg hunts will be wet this beautiful Easter morning on which my cherry trees are finally beginning to blossom.   Happy Easter from our family to yours.

Filed Under: Current Affairs

It’s Official: Zero Down is Gone

March 21, 2008 by 6 Comments

Iceage_2Unless you’re eligible for VA financing within the conforming loan limits, 100% LTV financing (aka "zero down") is no longer available in the conforming mortgage markets.   

The following products are extinct:

  • Fannie Mae Flex 100
  • Freddie Mac 100
  • My Community Mortgage 100
  • Home Possible 100

If you are short on down payment with credit scores below 680, you should consider FHA financing, which is not as credit score sensitive as conventional programs.  Fannie Mae Flex 97 is still available as well as Home Possible 97.  Both conforming programs allow for 3% down.

Home buyers should also plan on having "reserves" after closing.  The amount of reserves may vary depending on the program from 2 – 6 months of proposed mortgage payments for owner occupied when it’s said and done.   Real estate agents, your first time home buyers may need help with closing costs from Sellers…if they’re willing…in order to meet the reserve account conditions. 

We’re rolling back the underwriting guidelines…not all the way back to the ice age…but close!

If you’re considering buying a home or refinancing, meet with your Mortgage Professional sooner than later so you have time review your credit and consider your options.

Filed Under: Credit Scores and Reporting, Current Affairs, FHA, First Time Home Buyer, Residential Purchase

The Bottomless Mortgage Junkmail Bag

March 20, 2008 by 1 Comment

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Here’s a new one for you from the Mortgage Porter Junk Mail Bag.  This gem arrived to us in a hand addressed envelope about the size of a greeting card with real postage stamps but no return address.  What a personal touch. 

But wait…there’s more!  When you open the envelope it appears as though someone has cared enough about you to send you a newspaper article and there is a written sticky note that says:

"Robert, Try this it works!  I just got two months no bills! [signed] J."

Wow, who is this "J"?  Their name is no where on the envelope and there’s no business card included.   The newspaper article is front and back (with a faux-ad of a hottie on both sides) appearing to be an interview of someone in the mortgage/credit repair profession.   The "professional" being interviewed is here to save the day…the article never really says how but invites you to visit a website which I’m not going to promote here. 

The website would leave you to believe this fella is on your side to fight the bad mortgage companies, credit counselors…he’s going to teach you every trick in the book after you sign a non-disclosure statement so his "methods can stay secret from the general public".   

The entire campaign is aimed at people who are in trouble financially either from an ARM adjusting or from too much debt.  It’s predatory.  Do you remember just a few weeks ago what I said about loan originators who use "skip two months payments" as a ploy to get your business?

I have an issue whenever anyone uses "trickery" to obtain business.  Especially when it’s as important as the financing of your home.   This "article" does state "ADVERTISEMENT" in small print on the top of both sides…but it would be easy to miss.  Especially if you’re in a tough position with your mortgage or debts and you’ve received this mail from someone who cares enough to take the time to hand address a note to you. 

I truly believe that those who must resort to doing this type of deceptive marketing is because their business practice is such that they do not have returning or referring clients. 

Please don’t ever select your mortgage professional by the junk you receive in the mail.   

Filed Under: Predatory Lending

Happy Birthday, Rain City Guide!

March 19, 2008 by Leave a Comment

Rain City Guide turned three today…I’m a proud contributor to this stellar Seattle real estate blog.  I left a comment congratulating Dustin Luther on this accomplishment and asked if we are a toddler now.  Jay Thompson replied

Think dog years. 3 years for a real estate blog is an eternity…

How true!  Happy Birthday, Rain City Guide.

Filed Under: Weblogs Tagged With: ,
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