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Mortgage Companies Mandating Mortgage Fraud

Mortgage Companies Mandating Mortgage Fraud

Forget about the lawyers, Realtors, sellers and buyers have a new enemy in the real estate transaction.  The mortgage guys. In an effort to deliver “high quality” loans that are (usually) not sold to Fannie Mae, Freddie Mac, FHA or VA, lenders get to set their own guidelines are rules for loans. The bank can say that you can or can’t do something and if you don’t do it, you don’t get the great rate you were promised and locked in to. Example?  I just had a lender tell buyer (I was on the Seller side) that the washer and dryer are personal property and it must be REMOVED from the contract. If they did not do that, the loan would not go through. So now, the buyers have “given up” what they negotiated.  And, if we actually include the washer and dryer, are we committing mortgage fraud? The lender is boxing everyone in to what they want because he who has the gold, makes the rules. What will...

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#iPhone 6, #iOS8

#iPhone 6, #iOS8

To the idiots waiting in line since September 3rd, can I check your voter ID?  What?  You won’t wait in line to vote but you’ll wait to get a cell phone?  A phone that does things only a bit better than the one you have.  Wow, you’re life will really change……NOT! About 85% of the voters in Scotland stopped by the polls yesterday to vote.  LA county had about a 20% turnout for the last elections.  Hello?!?  OK, off topic. I downloaded #iOS8 on my phone.  Two suggestions. First on the flip up screen that you can turn on or off bluetooth, wifi, etc., you can’t control the location option.  Hello?!? Second, they were nice enough to now show you what is draining your battery  (General-Usage-Battery Usage).  Why couldn’t you have made a swipe to close the item that you want to close to save the battery. Mr. Cook, “it’s the battery, stupid.” If the battery lasted 5 times longer, we would all be in line for 12 days. Give...

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Skin

Skin

As I wear my mortgage broker hat today, I have found out that Fannie Mae now allows 100% gift for any and all conventional loan products. Never before have they ever done this. FHA, VA and USDA have allowed it for years. So, now you can get a 5% down payment loan with absolutely no skin in the game and be underwater. Since it cost people money to sell their home because of commissions, possible transfer taxes, title, etcetera, are we asking for trouble?The “experts” blasted that this was one of the reasons that the bubble bursted. And to add another layer, the CFPB under Dodd-Frank is asking the banks to take a “skin in the game” position on any loans they originate. So if the regulators want the banks to do it but the largest conduit doesn’t require it from the borrowers, all I can see is the lenders getting tougher and the real estate market getting worse. Share this:TwitterFacebookGoogleTumblrLinkedInEmailPrintPocketRedditPinterestLike this:Like...

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Could Rentals Kill the Economy

Could Rentals Kill the Economy

Greed is good.  The rich get richer. We’ve all heard these expressions but are they right? Landlords are so excited that the economy is coming back, more people are working and homes are harder to buy because mortgages are strangling the market. Since there are no more option arms and no docs, people have to qualify for loans. Even without the CFPB overregulations, the housing market is exactly what it would be without the idiocracy of paperwork and restrictions imposed by the government agency. So, the supply and demand features of rentals have been rearranged.  Everyone needs to live somewhere.  But the $750 a month rental that they had is now $1000.  Why, because they can. But, if you take $250 out of people’s accounts that they have to spend on rent, that leave $250 less to spend on basic goods and services.  The landlord’s $250 does not go towards less basics but towards either improving the property, savings or a new car. The $250 times the many, many...

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And Now, the End is Near

And Now, the End is Near

Two events today have indicated to me that the economy is about to go nose dive. One came from Federal Reserve Chairperson Janet Yellen in her prepared remarks in front of the Senate Banking committee.  She announce “Irrational Exuberance 2”, the sequel to Alan Greenspan’s mention that tech stocks are too high based on no backbone. Yes, there is no basis to the valuations on some companies that have not put together dollar 1 in profit, yet have spreadsheets making them worth billions. I am sure there are a few that deserve that price, but many don’t.  Even the people writing the algorithms don’t agree with the numbers that are projected.  In order for free markets to exist, they must have valuations based on realities, not wild speculations. The other came in the form of an email.  Our new hero for ending the economy is Kevin DeLory, Regional Sales Manager at Carrington Mortgage Wholesale.  I received an email from Mr. DeLory today since I am a mortgage broker that...

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Top Reasons the Real Estate Market Could Crash Soon

Top Reasons the Real Estate Market Could Crash Soon

Crash? Don’t be alarmed. Don’t sell your business, but realize that the economic structure and outside occurrences can shape a real estate market. I am a normally upbeat guy, but I do like realism. We have to step away from being happy all the time to an honest view for our clients — both sellers and buyers. Here are the top reasons that the real estate market could fail soon, in no particular order: 11. Rates are dropping. What? Aren’t rates dropping a good thing? Actually, no. The market is telling us based on macroeconomic reports that the economy is not cooking and jobs are not being created to make people buy homes. The only good news that will come from this is that those who forgot to refi, especially the HARP2 eligible, will be able to get better rates. Speaking of HARP, it’s being reported that FHFA Director Mel Watt may waive the eligibility date! 10. Robots. CNBC did a report called “Robots Rising” highlighting the fact that robots will continue to...

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