Have you had an AHA moment lately? Well, I just had 10 of them. As I sat writing on this wifi laptop at the JW Marriott in Orlando, Florida, taking in a gorgeous sunset, I renewed my purpose in life, in business and to the planet. My goals for 2010 are set, my vision is clear, and execution is on the horizon.
In case you are wondering, I just attended the CORE seminar (thecore.tv) for Realtors/Lenders this past week. A group of high producing, driven producers, that have the inspiration every 6 months at these 'summits' to do better. Do better for my clients, for my team, for my company, and the planet. We watched clips from 'Pay it Forward' and 'Braveheart.’ We discussed how to create relevance and purpose. We shared strategies to build better teams, delegate, and take control of our day. We talked about feelings, and about when we die, what will people say about us?
We all need a spark, an inspiration. You may find it in a seminar, a mentor, a book, or a movie. Whatever it is, own it. THERE IS NO TOMMORROW. SUCCESS IS NOT AN ACCIDENT. And most importantly, EXCUSES ARE UNACCEPTABLE.
Have a fabulous week, and may we continue to work together toward our continued success and prosperity, whatever you define that may be.
Monday, November 16, 2009
Tuesday, November 10, 2009
The Credit is Officially Extended!!!
If you are a Desperate Housewives junkie like me, you would have seen last week when Lanette Scavo busted her husband cheating on his college mid term (he went back to school at 40). His response was how is that different than her not telling her boss at a recent promotion that she is pregnant with twins? This show is soooo juicy! Then, his next statement made me wonder .................Sometimes we are all doing the best we can in order to survive. Well, isn't that the truth! However, where do we draw the line? Whether telling a white lie to your toddler that the Halloween candy is gone, or the teacher that the dog ate your homework, or that you cheated on a spouse, or forgot to tell your husband about the 50K in debt you have accrued on your private credit card, or that your income is $10,000/month on your mortgage application (the old stated income). Isn’t a lie a lie?
This is certainly an interesting debate. I bring it up, because of the mixed signals that exist in our society every single day. Including the ones we (the lenders, Fannie Mae, legislators) are creating with new rules an regulations. Reward in one category, punitive in the next. I could give you examples, but you would stop reading, the list is so long. How quickly will we forget this mess, and recover, and begin to live again as we did in the past. Should we, would we? I love to keep you hanging.
The First Time Homebuyer Credit has OFFICIALLY PASSED. No more Nov 30 deadline. It is now extended to April 30th (signed contract) closing by July 2010. The income limits have increased. Now you can be a single wage earner of $125,000, or household of $250,000. The max purchase price is $800,000. And now, if you are a current homeowner, and have been in your current home >5 years, you can get up to $6500.
The Federal Reserve this week left rates unchanged. They hold at 0 - .25%. There is fear that the economy really has not turned around yet. Well, one would think after the unemployment numbers jumped last month. I personally believe the worst is yet to come as unemployment benefits run out (despite the recent 20 week extension), and people cannot make mortgage payments. I believe the Spring will be difficult as well. More foreclosures and short sales, just what we need. Actually, I prefer foreclosures. Short sales, however, take 4-5 months for the contract to even be accepted! That takes patience.
Rates are low. Check out the 5/1 and 7/1 ARMS. Perfect for borrowers that will be in their homes less than 5 years. Get them while you can.
We are about to close a loan in 14 calendar days. I just received a frantic call here at my desk on a Saturday. What are the chances I would be here? At Patriot, we can do that: close quickly, service your customer. Large enough to serve you, and small enough to know you.
This is certainly an interesting debate. I bring it up, because of the mixed signals that exist in our society every single day. Including the ones we (the lenders, Fannie Mae, legislators) are creating with new rules an regulations. Reward in one category, punitive in the next. I could give you examples, but you would stop reading, the list is so long. How quickly will we forget this mess, and recover, and begin to live again as we did in the past. Should we, would we? I love to keep you hanging.
The First Time Homebuyer Credit has OFFICIALLY PASSED. No more Nov 30 deadline. It is now extended to April 30th (signed contract) closing by July 2010. The income limits have increased. Now you can be a single wage earner of $125,000, or household of $250,000. The max purchase price is $800,000. And now, if you are a current homeowner, and have been in your current home >5 years, you can get up to $6500.
The Federal Reserve this week left rates unchanged. They hold at 0 - .25%. There is fear that the economy really has not turned around yet. Well, one would think after the unemployment numbers jumped last month. I personally believe the worst is yet to come as unemployment benefits run out (despite the recent 20 week extension), and people cannot make mortgage payments. I believe the Spring will be difficult as well. More foreclosures and short sales, just what we need. Actually, I prefer foreclosures. Short sales, however, take 4-5 months for the contract to even be accepted! That takes patience.
Rates are low. Check out the 5/1 and 7/1 ARMS. Perfect for borrowers that will be in their homes less than 5 years. Get them while you can.
We are about to close a loan in 14 calendar days. I just received a frantic call here at my desk on a Saturday. What are the chances I would be here? At Patriot, we can do that: close quickly, service your customer. Large enough to serve you, and small enough to know you.
Monday, November 2, 2009
We're all doing the best we can
This week was brutal. From a personal standpoint, I have a loved one with cancer returned, another loved one pending foreclosure in NJ and unemployed for 1 year, and my assistant fell down the stairs taking the mail in our building. In the midst of complete personal, emotional chaos, I was once again reminded of those things I hold most dear. My reason for bringing this up, is that we all have our personal ups and downs, good days and bad, but it is those persons we surround ourselves with, personal as well as in business, that will get us through all challenges. If you are on this email blast, it means I am grateful for you!
The small gestures are the ones that count. I would like to extend heartfelt thanks to a realtor (you know who you are) that assured me yesterday, that he knew that if anyone could close our deal (that almost blew up), that I could. He knew I was working hard, and had faith that I would try my best. You made my day! I so needed that, you have no idea. Isn't that what we are all doing, the best that we can?
Speaking of best we can. It is all we (the lenders) can do to keep transactions together. I read a blog yesterday that was (so) true: Why is the government still trying to push low to moderate income households through (ex: FHA, 3.5% down, 620 credit score, 55% debt ratio, and seller closing cost credit), when there are many well qualified persons that can barely get by on approval, if at all. So many twists and turns, verify this and that, blah, blah, blah.
The latest policy change in mortgage that is , in my opinion, HUGE, is that we have to audit via the IRS EVERY CLIENTS' tax return, and if they are married, and the spouse is not on the loan (let’s say they have bad credit), and we pull the audit with IRS, and the spouse has negative income from a business they own, for example, we have to deduct that from total income. FULL DOCUMENTATION has a new meaning, and mandates full transparency. In every way. But oh, wait, you have perfect credit, and one little $60 collection with Time Warner, and your credit score lowered to 619, Sorry, no loan for you. Give me a break.
The first time homebuyer credit is in the House, yet to be approved, but hanging by a string. If passed at its current proposal, it would extend to contracts executed to April 15, Income levels to $250,000 household, and available up to $6500 to NON first time buyers. Lets wait and see………
What is the market doing? Rates rallied hard this week, but ended on a positive note. Unemployment is still depressing, and home sales declined for the first time in months. The t-bill auctions ended on a sour note Thursday. By the way, this was the last round of 3, 5 , and 7 year tbills that will be gobbled up by the US Government (buying their own debt). We should be thankful, you know. Because it is that one move, that has kept rates low. We should be thankful, folks.
The small gestures are the ones that count. I would like to extend heartfelt thanks to a realtor (you know who you are) that assured me yesterday, that he knew that if anyone could close our deal (that almost blew up), that I could. He knew I was working hard, and had faith that I would try my best. You made my day! I so needed that, you have no idea. Isn't that what we are all doing, the best that we can?
Speaking of best we can. It is all we (the lenders) can do to keep transactions together. I read a blog yesterday that was (so) true: Why is the government still trying to push low to moderate income households through (ex: FHA, 3.5% down, 620 credit score, 55% debt ratio, and seller closing cost credit), when there are many well qualified persons that can barely get by on approval, if at all. So many twists and turns, verify this and that, blah, blah, blah.
The latest policy change in mortgage that is , in my opinion, HUGE, is that we have to audit via the IRS EVERY CLIENTS' tax return, and if they are married, and the spouse is not on the loan (let’s say they have bad credit), and we pull the audit with IRS, and the spouse has negative income from a business they own, for example, we have to deduct that from total income. FULL DOCUMENTATION has a new meaning, and mandates full transparency. In every way. But oh, wait, you have perfect credit, and one little $60 collection with Time Warner, and your credit score lowered to 619, Sorry, no loan for you. Give me a break.
The first time homebuyer credit is in the House, yet to be approved, but hanging by a string. If passed at its current proposal, it would extend to contracts executed to April 15, Income levels to $250,000 household, and available up to $6500 to NON first time buyers. Lets wait and see………
What is the market doing? Rates rallied hard this week, but ended on a positive note. Unemployment is still depressing, and home sales declined for the first time in months. The t-bill auctions ended on a sour note Thursday. By the way, this was the last round of 3, 5 , and 7 year tbills that will be gobbled up by the US Government (buying their own debt). We should be thankful, you know. Because it is that one move, that has kept rates low. We should be thankful, folks.
Tuesday, October 13, 2009
Learning from our mistakes
Have you seen the video from the season premiere of the Oprah show, where the audience that covered 2 blocks danced in unison to the Black Eyed Peas song? It is now in the Guinness Book of World Record as the largest crowd performance. Way cool. Look at it on You Tube. Will the USA get into this Guinness Book as the country that couldn't even get along? Imagine the possibilities if we did all get along, as this crowd did on the Oprah show. Currently, our country is severely divided by bipartisanship, and it does not feel good. Government against Mortgage, Lenders against Appraisers, Bank against Builder, and Homeowner against Taxing Authority, ........catch my drift? The list goes on and on. It was refreshing to hear yesterday on a morning news station, Former Governor Jeb Bush (R) say nice things about our President. He was encouraging both sides to get along. It was a really nice interview, and he commended Obama on his desire to strengthen education. Its good we all have opinions, but there has to be common ground.
Same rules apply in the mortgage industry. Daily, we are being bombarded by new regulation that is 'guilty until proven innocent'. But how could we not be? We are the industry responsible for the largest meltdown in US History. Just yesterday, a Houstonian woman, 32 years old, was convicted of conspiracy to commit wire and mail fraud, money laundering, engaging in a monetary transaction in criminally derived property. Do you know how? By stating the homes were primary residences, when they were not. They were really investment properties. She faces over 20 years in prison, on each count. This is serious stuff friends. We must continue to be careful about what we represent, and how the clients are conducting themselves. It is our business to know, as lenders, as realtors. Its our duty to ask.
Interest rates have enjoyed continual low levels UNTIL YESTERDAY. Our analysts predict they will never get this low again (we saw 4.375% last week for 2 hours). We have had 2 days of increases, and at least 3 reprices a day for the worse, as the stock market has gained some ground with positive earnings, lower than expected unemployment. Just remember, mortgage bonds hate news of recovery.
Values (in some areas) continue to decline. We just had a borrower, that their home in Needville has declined in the 4 months since they began to build (Needville is south of Sugarland). By 5-7%. That is a lot in a 4 month period. Appraisals continue to attract scrutiny from our investors, and that transposes to more stringent underwriting guidelines.
There is still no word on the First Time Homebuyer Credit being extended. Likely, we will not see that until the current deadline has passed. In order to keep the momentum going for year end. Strong numbers. Isn’t that what its all about? Temporarily inflating our sense of security so we can have profits now, and put together the pieces later? When will we learn?
Same rules apply in the mortgage industry. Daily, we are being bombarded by new regulation that is 'guilty until proven innocent'. But how could we not be? We are the industry responsible for the largest meltdown in US History. Just yesterday, a Houstonian woman, 32 years old, was convicted of conspiracy to commit wire and mail fraud, money laundering, engaging in a monetary transaction in criminally derived property. Do you know how? By stating the homes were primary residences, when they were not. They were really investment properties. She faces over 20 years in prison, on each count. This is serious stuff friends. We must continue to be careful about what we represent, and how the clients are conducting themselves. It is our business to know, as lenders, as realtors. Its our duty to ask.
Interest rates have enjoyed continual low levels UNTIL YESTERDAY. Our analysts predict they will never get this low again (we saw 4.375% last week for 2 hours). We have had 2 days of increases, and at least 3 reprices a day for the worse, as the stock market has gained some ground with positive earnings, lower than expected unemployment. Just remember, mortgage bonds hate news of recovery.
Values (in some areas) continue to decline. We just had a borrower, that their home in Needville has declined in the 4 months since they began to build (Needville is south of Sugarland). By 5-7%. That is a lot in a 4 month period. Appraisals continue to attract scrutiny from our investors, and that transposes to more stringent underwriting guidelines.
There is still no word on the First Time Homebuyer Credit being extended. Likely, we will not see that until the current deadline has passed. In order to keep the momentum going for year end. Strong numbers. Isn’t that what its all about? Temporarily inflating our sense of security so we can have profits now, and put together the pieces later? When will we learn?
Friday, August 7, 2009
Some Consumers Still Don't Get It
Let's get to the point. This morning's release of unemployment (down from June) and payrolls up did not help things either. Once again, giddy investors trying to look for the silver lining to make themselves feel good about investing in the stock market. So once again...they pull their money out of bonds to invest in those stocks. This makes bond prices fall, as they want to attract more buyers with the low price, and yields (rates) go up on those bonds. Hence, there you have it, the mortgage backed securities are affected. Yesterday we had a reprice 2 times, and today already once.
So what is the takeaway? How about I explain it like this. I had a prospect email me yesterday and linked me to a graph (from the internet) of what the benchmark 30 yr fixed 'potentially' could do in the next 9 months. He is nervous. Doesnt know if he should buy. When? How can he assure himself the best rate?
He had asked for my opinion, so I gave it to him. No sugarcoating. In the nicest , most diplomatic way I know how, I implored him to consider that this was the home he was going to raise his family. Spend his free time, throwing ball with his kids. This was NOT Vegas, and trying to play the market by estimating the exact time to get in on a 5% rate was surely setting him up for disappointment. Surely. And further, that anything under 7%, historically speaking, is a gift. So in summary, I advised him to make an offer when the timing and the price seemed right for his family, and not to gauge it on what rate he thinks he will/will not get . Rates will increase. That is a given, with inflation surely soon to set in.
I'll end this weeks thoughts with a short story. I had a friend call me about a refinance. Her husband has bad credit, so the loan has to be in her name (she has 700 score). But she has no job. Husband earns cash, and deposits in her account. She recently went to get a car loan, and they gave it to her, without checking the employment, and thought surely this meant that now she could get a mortgage by just verifying deposits to her bank account each month, and 'saying' the job was hers. At first, I was not sure how to respond, thinking it must be April Fools day. But then very politely, and patiently, I said that (1) we cannot verify cash , and (2) It was not willing to mislead my employer about her work history when that was not true (aka: Fraud!= Jail).
Takeaway on this short story? SOME CONSUMERS DONT GET IT. So rather than wondering if they qualify or not, get them to us EARLY for pre qualification. That way we can set the record straight early on.
So what is the takeaway? How about I explain it like this. I had a prospect email me yesterday and linked me to a graph (from the internet) of what the benchmark 30 yr fixed 'potentially' could do in the next 9 months. He is nervous. Doesnt know if he should buy. When? How can he assure himself the best rate?
He had asked for my opinion, so I gave it to him. No sugarcoating. In the nicest , most diplomatic way I know how, I implored him to consider that this was the home he was going to raise his family. Spend his free time, throwing ball with his kids. This was NOT Vegas, and trying to play the market by estimating the exact time to get in on a 5% rate was surely setting him up for disappointment. Surely. And further, that anything under 7%, historically speaking, is a gift. So in summary, I advised him to make an offer when the timing and the price seemed right for his family, and not to gauge it on what rate he thinks he will/will not get . Rates will increase. That is a given, with inflation surely soon to set in.
I'll end this weeks thoughts with a short story. I had a friend call me about a refinance. Her husband has bad credit, so the loan has to be in her name (she has 700 score). But she has no job. Husband earns cash, and deposits in her account. She recently went to get a car loan, and they gave it to her, without checking the employment, and thought surely this meant that now she could get a mortgage by just verifying deposits to her bank account each month, and 'saying' the job was hers. At first, I was not sure how to respond, thinking it must be April Fools day. But then very politely, and patiently, I said that (1) we cannot verify cash , and (2) It was not willing to mislead my employer about her work history when that was not true (aka: Fraud!= Jail).
Takeaway on this short story? SOME CONSUMERS DONT GET IT. So rather than wondering if they qualify or not, get them to us EARLY for pre qualification. That way we can set the record straight early on.
Saturday, August 1, 2009
KNOW AND LOVE YOUR LENDER
Hmmmm. What to write about on a Friday afternoon at 3:30? The fact that I survived the week? Or the ‘new’ regulation that began yesterday that no lenders can figure out, because it keeps changing? Or the fact that appraisals are a sore topic of discussion for us on a daily basis? Can anything go right? Yes it can….mortgage backed securities enjoyed a nice rally today as GDP was released, showing companies are hiring, economy may be stabilizing. But wait! Usually this type of news makes rates go up. We don’t like good news! But trailing behind the horizon is news that consumers still are not spending. The bitter doom and gloom that the bond market loves, at least for today at 3:30, rates are attractive. Monday may be another story.
Thought for the weekend: KNOW AND LOVE YOUR LENDER. In these legislative times, and with regulation changing constantly, it is more important than ever that your clients know and trust their lender. Do I need to say more?
Thought for the weekend: KNOW AND LOVE YOUR LENDER. In these legislative times, and with regulation changing constantly, it is more important than ever that your clients know and trust their lender. Do I need to say more?
Friday, July 24, 2009
What I am seeing in the Real Estate Market
The term 'be careful what you wish for' is so overrated.....but true. Stocks and bonds were mixed this week. With good news of the earnings reports for some companies, and increased home sales, mixed with the bad news of unemployment, a jobless recovery and health care reform battles, NO WONDER bonds did not know how to price mortgage rates!
I did see a glimmer, and I mean glimmer, of 4.875% on Wednesday, for about 90 minutes. Then it was gone, as quickly as my winnings in Vegas last summer.
What am I seeing in the market? Lots of contracts, lots of backup offers, increased close times, so-so quality on appraisals, increased documentation from our investors, lots of review appraisals, longer underwriting times, lock extension fees, and volatility in rates. What else is new? This is the world we live in folks. And it may get worse before it gets better.
Ongoing advice to you is COMMUNICATE, and do it early - with everyone in the transaction. If you are not a list maker, BE ONE. If your client refuses to get pre approved early, THINK TWICE, and if you sense something does not seem right with a lender, title co, etc, ACT EARLY. And last but not least, BE FLEXIBLE. Your closings will be delayed when you least expect it. Advise your sellers not to move out until docs are at title, and don't let your buyers schedule movers that cannot be changed either. THIS WILL HAPPEN TO ALL OF US, even with the best intentions. Even when we are all on top of it. Something will come up, I promise you.
I did see a glimmer, and I mean glimmer, of 4.875% on Wednesday, for about 90 minutes. Then it was gone, as quickly as my winnings in Vegas last summer.
What am I seeing in the market? Lots of contracts, lots of backup offers, increased close times, so-so quality on appraisals, increased documentation from our investors, lots of review appraisals, longer underwriting times, lock extension fees, and volatility in rates. What else is new? This is the world we live in folks. And it may get worse before it gets better.
Ongoing advice to you is COMMUNICATE, and do it early - with everyone in the transaction. If you are not a list maker, BE ONE. If your client refuses to get pre approved early, THINK TWICE, and if you sense something does not seem right with a lender, title co, etc, ACT EARLY. And last but not least, BE FLEXIBLE. Your closings will be delayed when you least expect it. Advise your sellers not to move out until docs are at title, and don't let your buyers schedule movers that cannot be changed either. THIS WILL HAPPEN TO ALL OF US, even with the best intentions. Even when we are all on top of it. Something will come up, I promise you.
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