I’ve been sitting on the FEDge of my seat!

August 7, 2007 by Leave a Comment

I was expecting a little more acknowledgement of the current conditions in the mortgage and housing industry from the FOMC.   I’m a little surprised that this is all that was mentioned:

"Financial markets have been volatile in recent weeks, credit conditions have become tighter for some households and businesses, and the housing correction is ongoing. Nevertheless, the economy seems likely to continue to expand at a moderate pace over coming quarters, supported by solid growth in employment and incomes and a robust global economy."

I guess I was expecting a little more.  I did not anticpate the Fed Funds rate being changed (it’s still 5.25%).  Those of you with a Home Equity Line of Credit did not have a mortgage interest rate change today; the prime rate remains at 8.25%.  The next meeting is scheduled for September 18, 2007.

To read the entire FOMC Statement, click here.

Filed Under: Current Affairs

Calling All Patches Pals

August 7, 2007 by Leave a Comment

Earlier I mentioned about an evening with JP Patches.   There are significant changes to this event…namely…its FREE! 

Here’s what you need to know:

Please spread the word to all your friends who grew up watching JP Patches, Mayor of the Seattle City Dump.   He is a Seattle treasure–I can’t think of a better way to spend an evening.   

Filed Under: Just for Fun, Seattle

Stewart Title gets whammo’d by the Insurance Commissioner

August 6, 2007 by Leave a Comment

Press Release from Mike Kreidler, Washington State Insurance Commissioner regarding Stewart Title in Snohomish County.   

"OLYMPIA, Wash. — Insurance Commissioner Mike Kreidler has ordered a state-wide title insurer to stop lavishing illegal gifts and incentives on real estate agents, brokers and others to influence business referrals.

Kreidler’s order demands that Stewart Title Guaranty Company “immediately cease and desist” giving or paying anything in excess of $25, calculated in aggregate over a 12-month period, per person, for placing or causing title insurance business to be given to the title insurer.

“I’m appalled that this company clearly has paid no attention to our message that this spending violates the law and won’t be tolerated,” he said. “This is unacceptable behavior and there will be consequences.”

Kreidler can levy fines up to $10,000 per violation, and has the authority to suspend or revoke the company’s license to transact business in Washington. The order lists more than 100 violations found during a review of Stewart Title of Snohomish County, Inc.’s records.

The order stems from one of the Insurance Commissioner’s ongoing investigations into use of illegal incentives and inducements by title insurers. An initial investigation, concluded last fall, revealed widespread and pervasive use of illegal gifts, gratuities, junkets and other incentives on real estate agents, brokers and others to obtain title insurance business…"

To read the complete press release, click here.

Stewart Title’s Snohomish operation has the potential of being fined up to $1,060,000 (106 violations at fines of up to $10,000 for each).    Stewart Title’s other local counties have yet to be reported on from the Insurance Commissioner.   Stay tuned…
Filed Under: Title Insurance

Don’t let your ARM smack you (or your friends)

August 4, 2007 by 2 Comments

Arm_2

If you currently have an adjustable rate or balloon mortgage that is scheduled to adjust within the next 12 months, I strongly encourage you to contact a Mortgage Professional as soon as possible.    Especially if you are considering keeping your home beyond the adjustment date. 

Don’t wait.  Here’s why:

  • Odds are your payment will increase significantly (depending on your caps) and you won’t want the new mortgage payment.
  • Underwriting guidelines have tightened significantly.   If you have issues with your credit, it is best to start work on repairing or improving your scores now instead of waiting until it’s time to refi (that’s too late).
  • Lenders are pulling back on programs.   Especially non-conforming loans (loan amounts over $417,000 or credit, assets, income or employment not meeting traditional guidelines) and ARMs.   
  • Some lenders are shutting their doors as they are not able to fund loans they’ve committed to. 
  • Less available loans may translate to fewer buyers for properties.   This will impact sales comps for appraisals.   You cannot count on huge appreciation or values on your home to bail you out of your ARM.   We’ve been fortunate in Seattle so far; I cannot see how this won’t impact our local market home values.

This is truly an urgent situation that requires your immediate attention.   The more time you can give yourself and your Mortgage Professional to determine the best strategy for your next mortgage, the better off you’ll be.   And, if you know that your friends or family members have ARMs that are due to adjust anytime soon, please encourage them to contact a Mortgage Professional as well. 

Take control of your ARM or it just may leave you stinging.

Filed Under: Adjustable Rate Mortgage (ARM), Refinance

KOMO-TV’s Blogger Meet up

August 4, 2007 by 2 Comments

On Thursday evening, KOMO TV invited who they considered to be the "who’s who" of Seattle area bloggers to a "meet up".   Parking was validated, they had great snacks and beverages.   Why on earth would they do this?   According to the Evite:

"KOMO-TV is interested in getting to know bloggers in the area, and what better way to do that than with a little party….Fisher Communications recognizes the significance of the personal media revolution, and they want to listen and pay attention to what you’re saying. I think this is a good way to start."

Many of the real estate bloggers are in San Francisco at the Inman Bloggers Connect…so they missed out on this local function.  Fellow real estate bloggers that were in attendance:  The Tim from the Seattle Bubble, Alex Garcia in Seattle and Deborah Burns, fellow contributor to Rain City Guide.  Img_5528

Ron Holden of Cornichon, one of the top food blogs on the internet, doing a report on wine from the anchor booth with me.

The mysterious West Seattle Blog was not there…darn it!   But they did send a fellow blogger from West Seattle to say "hello".   

It was a very interesting evening to say the least.   

Seattlebloggers

I had the chance to chat with Terry Heaton for a little bit who has been organizing bloggers with news media in other parts of the country.    Chris Pirillo also seemed very involved in orchrastrating this event…I didn’t get a chance to talk with him unfortunately.   As you can see, there were a lot of local bloggers there! 

Filed Under: Weblogs

Friday Fun…Wine Reviews

August 3, 2007 by Leave a Comment

If you love wine, then you must check out Wine Library TV.   Gary Vaynerchuk does hysterical reviews.   He’s serious and wants to "change the wine world" and he just may do it!   

In this episode, he is reviewing one of my favorite wines, Mollydooker.   The 2005 vintage was cult-like huge and highly rated by Robert Parker…the 2006 is what he’s reviewing here.

I wish he would have reviewed Boxer.  If you can find any and you like big fruit bombs wines…pick some up!   I understand that Esquinn and West Seattle Thriftway may have some (not on the shelf, you have to request it). 

The video is a crack up and his reviews are solid.   Fun and substance at the same time.   I enjoy him so much (and wine too) that I’ve added a link to his blog on the lower left side of Mortgage Porter.   

Cheers.

Filed Under: Just for Fun

Cash due at closing

August 2, 2007 by Leave a Comment

EDITORS NOTE:  This post has been updated here.   With all the changes HUD created with the 2010 Good Faith Estimate, they are no longer a practical tool for mortgage originators and actually, no where on the GFE is there a place showing "funds for closing".   Please skip this post and read the one linked above.

Your closing date on your new home is a couple of days away, your feeling a little case of the jitters…the last thing you want to deal with is to be surprised with what funds are due at your signing appointment with the escrow company.   

Here's how you can clear up the funds to close issue:

  1. Your Mortgage Professional should provide you with a "fine tuned" Good Faith Estimate 5 or more business days before closing for review.   Check out the amount due for closing and if you are being credited for the earnest money deposit and any funds you have provided to the lender.   Also verify if any credits to you are reflected by the seller.   If you are unsure at all, ask–don't assume.   This is the best time to make any adjustments, if needed.
  2. Verify with your Mortgage Professional if the GFE is factoring in your earnest money deposit.
  3. Your Mortgage Professional should obtain an estimated HUD-1 Settlement Statement from the escrow company 2 days before closing to review it for any corrections or modifications.   
  4. You may want to request seeing a copy of your estimated HUD-1 Settlement Statement prior to your signing appointment.   Currently this is not standard practice.   
  5. Bring a copy of your Good Faith Estimate with you to your signing appointment.   The lender fees shown in Section 800 of the HUD should be close to those shown on your Good Faith Estimate.

What if there are errors?  Try not to panic. Depending on how much time there is prior to the scheduled funding, the lender may be able to redraft loan documents if needed.   80% of our loans our funded within our own credit line so unless it involves someone having to be re-approved for a higher loan amount, loan documents can be emailed fairly easily to the escrow company.   Often times, it could just be correcting a few documents and not the entire loan package.

The closing table can be an emotional time.   It's in your best interest to have as many of the details worked as far in advance as possible.   If you have questions or concerns, speak up.  This is not the time to be bashful.   This is your mortgage and one of the largest financial transactions you will make in your lifetime…be responsible and take action.

Filed Under: Escrow and closing

Latest Telephone Scam

August 1, 2007 by Leave a Comment

I often work from my home office.  For a while I was getting deluged with phone calls from people with foreign accents telling me that I had applied to obtain a mortgage from them!   I quit answering the phone when I don’t recognize the number or if the number is blocked.   The calls dwindled.

Here’s the new twist on the same scam…I’ve received a couple of these calls now.  The person says they’re from the “National Debt Center”.   They go on to say that they represent many of the credit card companies you have debts with (it’s not hard to name a few of the big players and get lucky with guessing a card you may actually have).    

Until this afternoon, the phone number was blocked…I just filed a complaint with the Do Not Call site.   We are on the DNC list and still get these obnoxious calls.   When I informed this caller that we’re on the DNC, she slammed the phone down.   Other times, this only seems to be a mental game to callers.   

They can sound pretty convincing…they’re crooks.  Don’t fall for it.  The area code from this caller was 113.   Look out.

Filed Under: Predatory Lending
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