Helping Washington State homeowners learn more about their mortgage options.
Last night we went to see Diana Krall at Chateau Ste. Michelle Winery. She was fantastic (of course). What could be better than a nice bottle of chardonnay and crab cakes with chipolte sauce while listening to Diana’s smokey voice (not to mention her top notch band).
There may still be tickets available for tonight’s show. You can check out Ticketmaster, Craigs List or eBay.
Dress warm and enjoy!
The other day, one of my past clients asked me:
“I was wondering if there are issues that could arise if this credit crisis continues in a downward spiral? The market hasn’t been doing well in the past week with concerns about the “credit crisis”.
Is there any reason for concern that we could have our home loan called in early if our mortgage company gets into trouble? Are there other issues that we should be thinking about if this causes a ripple affect to other areas of the economy?”
This graph from the New York Times paints a picture that I can’t call pretty.
"So what’s gone wrong in the last few months? An unfortunate combination: more loans in default (many borrowers were never in a position to pay them off), risky bets worth billions made by some investors (deals now gone sour), and the reversal of the housing boom."
A big hat tip to Behind The Mortgage.
Last Friday, I told you about Mollydooker wines and apparently Sparky Marquis, CEO of Mollydooker and wine maker, reads The Mortgage Porter. (Since he’s in Australia, what is more likely is that he has a "Google search" created for his wines).
Sparky sent me a very friendly email about Gary Vanderchuk and my post:
"I was laughing at Gary’s videos when I saw them the other day. Now he is extremely passionate. As he said when he was doing the videos he is a great friend of ours and has always been a huge supporter of our wines. What I realised by the end of his video was that I had forgotten to teach him about the "Mollydooker Shake" which we found to be such a critical part of what we do that we have put it on our new website www.mollydookerwines.com . Gary said that he would be reviewing The Boxer (as well as the fall release wines, Enchanted Path, Carnival of Love and Velvet Glove) using the Mollydooker Shake, so we will be interesting to see what he says. All of the Lefty Series wines will also be reviewed in The Wine Advocate at the end of August so it is going to be awesome to see the comparison."
My husband and I gave the Dooky Shake a try. Earlier this week, we opened a 2006 Two Left Feet. Doing the Dooky Shake made a huge improvement on the wine. It’s incredible. Before we were unsure about the 2006 Two Left Feet (compared to 2005)…now we’re thrilled.
I do recommend finding Mollydooker before the Wine Advocate review. Wine Spectator has rated the 2006 Boxer at 90 points. Wine Advocates rating last year created an absolute frenzy over Two Left Feet and Boxer (at the $20 price point).
If you love Aussie fruit bombs…
Five gold stars to Sandy, one of my clients who I helped with financing a few years ago when they bought their dream home in Eastern Washington, for asking me this regarding the current market:
“I was wondering if there are issues that could arise if this credit crisis continues in a downward spiral? The market hasn’t been doing well in the past week with concerns about the “credit crisis”.
Is there any reason for concern that we could have our home loan called in early if our mortgage company gets into trouble? (We are with CitiMortgage right now). Are there other issues that we should be thinking about if this causes a ripple affect to other areas of the economy?”
I’m going to address the “bold issue” first. Your loan will not be called due if the company you’re making mortgage payments to gets into trouble. The mortgage company you’re making payments to does not hold your mortgage. They are actually just receiving and processing the payments. They receive a small percentage of your payment for “servicing” the loan. Your mortgage has been bundled with other mortgages and has been sold to investors as mortgage backed securities (bonds). If something were to happen to the mortgage company you make payments to, you would just be sending your mortgage payment to someone else.
Continue to make your mortgage payments (including your property taxes and insurance) on time and your mortgage will not be called due early.
I’ll address Sandy’s other excellent questions in a follow up post.
A correspondent lender is a blend between a bank and a mortgage broker. What sets correspondent lenders apart from others is that they have significant credit lines that allow us to fund loans which are then sold to the lender after closing. A correspondent lender processes, underwrites and prepares the loan documents which allows them more flexibility than the traditional broker. Correspondent Lenders have access to many different lenders unlike most banks. Even if bank mortgage companies can broker, loan originators often will not as they’re typically paid a lower commission if they do not use their bank’s products.
So why is now such an important time to select a correspondent lenders? With banks pulling back (or suspending) products or repricing and lenders shutting down, it’s important to work with a Mortgage Professional who can make adjustments if needed in a rapidly changing market. Many were caught at closing when they sent loans to American Home Mortgage, one of the nations largest lenders. If you were getting ready to close with a mortgage broker, the loan would need to be re-processed, re-underwritten, and new loan docs prepared and delivered to escrow. With a correspondent lender, as long as the rate had not changed, you could possibly keep the same docs and your escrow appointment.
Because it is more difficult to become a Correspondent Lender vs. a Mortgage Broker there are fewer of us and therefore, we’re a bit more challenging to find. How do you know if your Mortgage Professional is employed with a Correspondent Lender? Ask. A “mortgage broker” or “mortgage banker” is not the same as a correspondent lender.
A Correspondent Lender just may make the difference in your transactions closing on time in this uncertain market.
There is a reunion being planned for people who once worked at Safeco Title Insurance Company in Seattle.
This is where I began my title career back in May of 1986. Being a doc-puller at Safeco Title was my first "real job". I have a very special place in my heart for Safeco…it was a very fun place to work and the employees were all like members of my family.
Here’s the scoop:
When: Saturday, September 22, 2007. Dinner begins at 6:00 p.m.
Where: SeaTac Marriott
RSVP by September 3, 2007 to Mark Perez or Teresa Spears.
Cost: Dinner per person is $65.00. There is a No Host Bar. Please make checks payable to Teresa Spears c/o Stewart Title, 18000 International Blvd., SeaTac, WA 98188.
If you once worked at 4th and Vine…I hope to see you there!
Don’t forget to turn on a porch light to show your support in fighting crime. This is a great excuse to get out and meet your neighbors! Our block has organized a get together and I’m cooking up some jambalaya for the event.
Knowing your neighbors is a great step towards reducing crime. I’m looking forward to seeing friends and meeting new ones.
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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