A Spoonful of Sugar for the Holidays

"Just a spoonful of sugar helps the medicine go down" (singing). We saw Mary Poppins in NYC on Wednesday. What a wonderful presentation! Highly recommended. Of the 2 dozen or so Broadway plays I have seen, this has to be the best one. Diego, my 5 year old was ecstatic . We have been singing this song for days!!!!!

My sugar this year to help the medicine go down has come in 2 doses. ONE , an epidural, when Pablo was born. And the other, chocolate. Partly because I was pregnant for half of 2010, but also because days at the office have been so stressful! Did all that chocolate really help ease the pain of all the increased regulations, rules, and extra paperwork? Really, I think it must have. In that moment anyway! Supercalifragilisticexpialidocious! That is what you say when you just don't know what to say (according to Mary Poppins).

There were so many lessons learned in Mary Poppins. Really such a great story about what is important in life: Family. At the end of the program, Mary Poppins 'flew' into the crowd and went up, up, up to each level of the theater. I was in tears!!!! Why? Was it because I was so happy the Mr. Banks had reconnected with his family? Or that Mrs. Banks had renewed her love with her husband? OR that Jane and Michael, the kids, were not so naughty after all? Whatever the reason, we left the theater singing and skipping through the (freezing) streets of New York City.

As you enjoy the holiday season with loved ones, may you always remember to give:

Your heart to friends and family.Service to a customer.Charity to all.A good example to every child.Respect to yourself and God.

On behalf of myself and my team at Patriot Bank Mortgage, we wish each and every one of you a safe and joyful holiday!

Jennifer Hernandez

RATES as of December 24, 2010 (UP FOR THE WEEK)
The following assumptions apply:
20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions, Primary Residence (Refinances have different rates)
30 day closing
Credit Score 740 +
Debt to income ratio <=40%
Full Documentation of Income/Assets

Conforming ($200,000* - $417,000)
Jumbo ($417,001- $1,000,000*)
30 year (fixed) 4.750% APR 4.882%
30 year ( fixed ) 5.625% APR 5.746%
15 year (fixed) 4.250% APR 4.476%
15 year ( fixed ) 5.000% APR 5.201%
5/1 ARM 3.625% APR 3.361%
7/1 ARM 3.875% APR 3.549%
5/1 ARM 3.625% APR 3.509%
7/1 ARM 3.875% APR 3.668%
10/1 ARM 5.375% APR 4.636%
FHA/VA call for quote (max loan $270,000)




We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!


If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!


Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com

Interest Rates, Holidays, & Markets

Have you finished your shopping, ?
So, every Wednesday, Fernando and I have date night. Once a month, we use date night to review our budget and cost from the prior month. So this Wednesday we went to Las Ventanas (GREAT restaurant at Hwy 6/Grisby!), and I made sure he had 2 sangrias and a tequila shot before I told him how much I spent on clothes last month. He took it like a champ (for the most part). Doesn’t he understand that I could run into the bank President on the elevator? I MUST look good and professional at all times. And that means matching purse, shoes and jewelry. (SMILE). It sounded good at the time.
Maybe we could give the executives at Fannie and Freddie a tequila shot and they would start making ‘sensible ‘ exceptions on loans! Did you read the CNNMoney.com headline on Thursday? “Eight Million in Assets and Can’t Get a Loan”. Currently, that very well is true. We have to prove a recurring income, so if his assets produce capital gains and interest income each year on the tax return, we are ok! It doesn’t? Well, that is a problem. You see, assets can be spent, and quickly. Market changes can erode capital. We still have borrowers that try to reason with us that since they are putting 50% down, the lender should not care about anything else. Well, unfortunately, that is not the case. They don’t want to foreclose! Look at the mess we are in now! Foreclosures are expensive and time consuming. They don’t’ want your property, no matter how much equity there is. To read more about the article: http://money.cnn.com/2010/01/20/real_estate/mortgage_woes_for_wealthy/index.htm?postversion=2010012009&iid=EAL

Let’s talk about values. Some trivia first. Did you know that Atlantic City is the #1 city for appreciated values at 30.2% ? While on the other end, Las Vegas is 41% BELOW the market. Interesting those are both gambling cities and on opposites side of the spectrum.
We had a jumbo loan come back this week $200,000 below the sale price. Ouch. The borrower paid the difference (I know, that NEVER happens) We lucked out, and we are closing in 15 minutes, so I am typing really fast). A point I would like to make though, is that the nation’s top servicers came out with a Quality Initiative Report this week. Here is a summary of some interesting information for you (it will make a point about the importance of collateral):
Key Drivers of Loan Defects**Undisclosed mortgage liabilities**Collateral : Improper selection of comparables and unsupported adjustments**Insufficient or unverified income; inaccurate calculations**Excessive Seller Contributions or MI Coverage
Top Repurchase Reasons (that is when the servicer demands we , the originator, repurchase the loan)Serious Delinquency and…1. Misrepresentation of income2. Misrepresentation of employment3. Misrepresentation of appraised value4. Undisclosed debt5. Insufficient asset documentation

TX is the top state for Fraud, with collateral being the number one issue

Do you see a consistent message here? COLLATERAL. That is why underwriters are so concerned about appraisals. Fannie passes the pressure down to the servicers (Wells, Chase, Citi, BOA), and they pass that pressure down to us (lenders), and we pass the pressure to the underwriters to be sure we have a loan that will not be repurchased. Furthermore, we demand the appraisers approach comparables a certain way. And even furthermore………………….we are REQUIRED to do an automated appraisal review on every single appraisal (most clients /agents don’t even know we do it) But our investors require this or they will not purchase the loan. So imagine having to run a zillow.com (equivalent) on every single property! You can imagine some of the responses we get. Appraisals are the single, number one issue with all lenders right now.
I hope you found this week’s update informative!
By the way….we can still squeeze in a purchase (conforming) to close by 12/31 if you need it. But we need the contract Monday or Tuesday.

Enjoy the weekend!

RATES as of December 10, 2010 (UP FOR THE WEEK)
The following assumptions apply:
20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions, Primary Residence (Refinances have different rates)
30 day closing
Credit Score 740 +
Debt to income ratio <=40%
Full Documentation of Income/Assets

Conforming ($200,000* - $417,000)
Jumbo ($417,001- $1,000,000*)
30 year (fixed) 4.625% APR 4.756%
30 year ( fixed ) 5.250% APR 5.370%
15 year (fixed) 3.875% APR 4.099%
15 year ( fixed ) 4.625% APR 4.828%
5/1 ARM 3.500% APR 3.288%
7/1 ARM 3.750% APR 3.463%
5/1 ARM 3.375% APR 3.408%
7/1 ARM 3.625% APR 3.539%
10/1 ARM 5.000% APR 4.379%
FHA/VA call for quote (max loan $270,000)




We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!


If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!


Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com

Keeping in tune with rates and clients

Do those bouncy places make ALL the money? (Bounce U, Inflatable Zone, Pump it Up, etc...). If you have a kid or grandkid under the age of 7 you KNOW what I am talking about. We have 2 birthday parties this weekend (the story of my life), and now I just have to figure out which present I will recycle - just kidding!

On the business side of things, yes, the rates are still low. But don't be fooled! It WILL NOT STAY THIS WAY FOREVER! Currently, the fact that 8.5 million people are receiving some type of unemployment benefits, and that elections are in November...that is keeping things stable. Some economists and analysts predict that if the Republicans gain ground in November, confidence will be regained in the markets, and that could be bad for bonds (so increasing rates). No one really knows, but I would not want to get caught in the upswing! If the time is right, and the house is right......what the heck! Take a rate in the high 3's or low 4's. Someday soon you will have bragging rights at a cocktail party.

Now I would like to give you a marketing tip. How well do you keep in touch with your past clients? I have heard stories recently of people that would gladly refer their realtor or lender, but cannot recall their name. That is why you should be mailing to your past client database MONTHLY! Things like, time change cards, annual reviews , market stats, recipe cards, letter from the heart (a personal reflection of something special in your life), reminder to file homestead exemption. Do you get my drift? Something. And make it consistent. You never know when they want to get a CMA, but just have been too distracted to call, and then 'viola!' your name and phone number appear on a mailer! So, to give you a personal experience, I recently have implemented this (mailing monthly instead of quarterly), and my phone will not stop ringing. Our leads have increased 50%. You better get going.........................

My team and I are here to help you every step of the way! If you and your clients need an ON TIME and ACCURATE closing, give us a call. We just saved 4 purchases this week from other lenders that could not close on time, or denied the borrower, and closed all of them within 10 days .

Enjoy the weekend!

RATES as of October 22, 2010 (UNCHANGED FOR THE WEEK)
The following assumptions apply:
20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions, Primary Residence (Refinances have different rates)
30 day closing
Credit Score 740 +
Debt to income ratio <=40%
Full Documentation of Income/Assets

Conforming ($200,000* - $417,000)
Jumbo ($417,001- $1,000,000*)
30 year (fixed) 4.125% APR 4.252%
30 year ( fixed ) 4.875% APR 4.987%
15 year (fixed) 3.750% APR 3.973%
15 year ( fixed ) 4.250% APR 4.440%
5/1 ARM 3.000% APR 3.129%
7/1 ARM 3.250% APR 3.244%
5/1 ARM 3.250% APR 3.362%
7/1 ARM 3.500% APR 3.477%
10/1 ARM 4.875% APR 4.293%

FHA/VA call for quote (max loan $270,000)




We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!


If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!


Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com

Team Hernandez

I think my kid has ESP! After my last week’s email about a ‘good baby’, he started sleeping 6-8 hours straight! Is he a genius or what? He was an adorable, cute and beautiful baby before, but now I must say he is in angelic status.
As far as the week goes, I’m going to slack this week. I have had 2 solid days at MD Anderson with my sister, a new employee, and have not kept up! I haven’t even had time to watch the new Greys’ Anatomy! But rest assured, your clients have been taken care of. I have a team of 3 loan partners that are always on the ball! Myself, Kenny, Sarah, and Brianna are here for you anytime!
Have a great weekend, and I promise, next week I’ll have more content.

RATES as of September 24, 2010 (UNCHANGED FOR THE WEEK)
The following assumptions apply:

20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions, Primary Residence (Refinances have different rates)
30 day closing
Credit Score 740 +
Debt to income ratio <=40%
Full Documentation of Income/Assets

Conforming ($200,000* - $417,000)
Jumbo ($417,001- $1,000,000*)
30 year (fixed) 4.375% APR 4.504%
30 year ( fixed ) 5.375% APR 5.494%
15 year (fixed) 4.000% APR 4.224%
15 year ( fixed ) 4.750% APR 4.949%
5/1 ARM 3.250% APR 3.331%
7/1 ARM 3.625% APR 3.515%
5/1 ARM 3.250% APR 3.479%
7/1 ARM 3.500% APR 3.574%
10/1 ARM 4.875% APR 4.363%

FHA/VA call for quote (max loan $270,000)




We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!


If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!


Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com

A Good Loan Officer?

Happy Friday ,

What exactly is a 'good' baby? Aren't they all good? I have been taking notice since I now have a new little one, and the FIRST thing people ask is.....Is he a good baby? I would assume the answer is always yes. Is there really a mother that would say no? They're such cute little things.............

How about a good loan officer? Now that is a different story. What makes a good loan officer? Do they give you weekly status updates via call and email each week? Do they return calls and emails promptly (within 2 hours at least)? Or have a team that can help you, even if they are not available? How about on time docs to title (day before closing at a minimum)? Fund within 20 minutes of closing? Get wires to title before closing? Or even attend closing?

These things should be the minimum standard, yet I hear so many agents say they don’t get these things. Especially the attend closing one. Strange. Well, with me, you get all of the above. If you are not referring us to your clients for a mortgage, you are missing out on a truly exceptional experience. And guess what, that makes you look GOOD! And will result in more referrals for us both. It’s a win win!

On another note, why did rates go up and down so much this week? The markets have been all over the place. Consumer sentiment is lower than expected, the Core Price Index is up, and then unemployment numbers came in lower than expected. Up, down, up, down. The net effect is rates are still great!

Fannie Mae released its latest National Housing Survey Results. 47% think that prices will hold steady over the next year. 70% think it’s a good time to buy a house, and 67% still consider real estate a good investment. Access to the detailed podcast can be found on the National Housing Survey page on www.fanniemae.com

According to the NAR 2009 Profile of Homebuyers and Sellers (available on har.com), since 1995 the internet has been useful to 77% of buyers (up from 2%). Printed newspaper ads went from 51% in 1995 to 2% in 2009 (as being useful). Yet, thankfully, their value of a realtor has almost no change, from 86% in 1995 to 81% in 2009. This is good to know! You all work so very hard to keep the local economy churning! Keep up the good work!

Have another great weekend! I am off to San Antonio to brave Fiesta Texas with a 5 year old. Pablo will be in the a/c with his nanny- lucky guy!



RATES as of September 17, 2010 (UNCHANGED FOR THE WEEK)
The following assumptions apply:
20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions, Primary Residence (Refinances have different rates)
30 day closing
Credit Score 740 +
Debt to income ratio <=40%
Full Documentation of Income/Assets

Conforming ($200,000* - $417,000)
Jumbo ($417,001- $1,000,000*)
30 year (fixed) 4.375% APR 4.504%
30 year ( fixed ) 5.375% APR 5.494%
15 year (fixed) 4.000% APR 4.224%
15 year ( fixed ) 4.750% APR 4.949%
5/1 ARM 3.250% APR 3.331%
7/1 ARM 3.625% APR 3.515%
5/1 ARM 3.250% APR 3.479%
7/1 ARM 3.500% APR 3.574%
10/1 ARM 4.875% APR 4.363%

FHA/VA call for quote (max loan $270,000)




We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!


If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!


Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com

What's new in the Mortgage Industry!

Have you ever Googled yourself? I did recently, and surprisingly, found that I am the top 5 or 6 entries on the search. I put in Jennifer Hernandez Mortgage. This strange phenomenon is purely by accident, but a result of a young gal that worked for me that made sure I was blogging and posted on Twitter and Linkedn. It’s not that much work if you delegate it.. Just hire someone fresh out of college! They know all that stuff. There are so many ways to promote yourself, it is mind boggling. But one thing for sure, you need an internet presence. People Google you and research, before they choose your services - Even if referred to you by a friend. If your 'lookup' shows nothing, they may be hesitant to do business with you.

What’s new in the mortgage industry?
HUD (FHA) has issued Mortgagee Letter 2010-28, that as of October 4, the FHA upfront premium will decrease from 2.25% to 1.0% ($13/mo lower on a 200K loan) and increases the annual premium from .55 to 1.55 (so for example , on a $200,000 loan, that is an additional $154 per month. A good reason to buy a house this month!
FHA is still pondering lowering seller contribution to 3% from 6%. It has not become official yet...but look for that in the very near future. Another reason to buy now.
Interest rates are at all time lows - These rates will NOT last forever, people. Waiting and speculating that you know the market, and dreaming of low rates into 2011 could happen, could not. Are you willing to gamble that? On a $200,000 loan, that is a CURRENT SAVINGS of $126/mo (the difference between a rate of 4.5% and 5.5%) - Another reason to buy now.
The Houston economy will be one of the first to recover. We are recovering! Jobs are still coming, and as people get back into the workforce, and stocks begin to rise, prices will steadily creep back up as renters become purchasers. Yes, we have seen a bit of a dip in prices over the last year. Yes listings are up, and I have heard some say it’s a buyers market right now. But we still are at a healthy levels of monthly inventory (7, with 6 being stable). Buyers....don’t be fooled for long. As will rates go up, so will home prices. This phenomenon will not last forever. If you decide to wait, hopefully you will not later say ' I should have......' - bought when rates were in the 4-s? Another reason to buy now.
Mortgage companies are facing record breaking compliance. Nothing we have ever seen. Even the CEO of Chase said last month, that in 2011, the cost to comply with the Financial Reform Bill will increase their cost 11%. Do you think they will absorb that? No way...... every customer who has a checking acct or mortgage with them will. Look for mortgage fees to rise, and also rates. They (all lenders) will 'pad' their margins. Do you not think that the big banks (WF, Chase, BOA, etc ) were not behind all this reform? They want (1) all the business (2) all the profit, and (3) did I say all the business? Oh, and service? What’s that? Closing date? What’s that...we will close when we can close. ANOTHER REASON TO BUY NOW.
Guidelines are getting stricter. Even still. Every day. Need I say more? ANOTHER REASON TO BUY NOW.


As always, I hope you found these thoughts helpful. I also hope that as you have gotten to know me through my weekly blasts, that we have developed trust. You know how I think, you know about my kids, you know the things I like and don't like. Also know that when your clients finance with us, our goal is to take the very best care of them, so that we close ON TIME, and ACCURATELY. We have processes in place to do this, like updating realtors (listing and buying) every Tuesday during the transaction. Docs to title early. Attending closing. WE make you look good for referring us!
Have a great weekend!



RATES as of September 10, 2010 (UNCHANGED FOR THE WEEK)
The following assumptions apply:
20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions, Primary Residence (Refinances have different rates)
30 day closing
Credit Score 740 +
Debt to income ratio <=40%
Full Documentation of Income/Assets

Conforming ($200,000* - $417,000)
Jumbo ($417,001- $1,000,000*)
30 year (fixed) 4.375% APR 4.504%
30 year ( fixed ) 5.375% APR 5.492%
15 year (fixed) 4.000% APR 4.224%
15 year ( fixed ) 4.750% APR 4.946%
5/1 ARM 3.375% APR 3.395%
7/1 ARM 3.750% APR 3.574%
5/1 ARM 3.500% APR 3.593%
7/1 ARM 3.750% APR 3.748%
10/1 ARM 4.875% APR 4.372%

FHA/VA call for quote (max loan $270,000)




We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!


If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!


Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com


Information provided in this e-mail is intended as a tool for Real Estate Agents to be informed of the approximate rates available for home mortgages. It is intended for their sole use and purpose only and is not for distribution to the general public. Depending on the borrower's actual circumstances, such as credit, debt ratios, etc., rates may vary. Special niche products may also be available.

Interest Rate Update from Jennifer Hernandez

Have a Safe Labor Day Weekend Jennifer,

Let's start the 3 day weekend with some TRIVIA. You can impress all your friends at the barbecue, lake or beach - whatever you will be doing this weekend! Stay safe and have fun by the way.

There are 1.37 million realtors in the US
Average age of a realtor - 53
Average homebuyer is 25-30 years younger than the average realtor
1 in 6 persons in the US is unemployed or underemployed - got this stat from Obama’s speech
10% of buyers last year bought a home in foreclosure (up from 3% in 2008)
By 2006, homeownership in the US reached an all time high of 69.2%
Today, homeownership rates are 62%- probably as high as they will ever be.
Monthly foreclosure filings in Texas are approximately 10,000 / month, and nationally its 120,000 - another reason to be a Texan!
Only 4% of realtors are CRS designated (Certified Residential Specialist) yet they represent 25% of the transactions. Do you have your designation to set yourself apart? visit www.crs.com to find out more.
Bill Jones, TAR Chairman of the Board, predicts that someday a 'whiz kid' will design a model to appraise homes with computerized data, forcing out the need for appraisers. Could you imagine? No adjustments for those upgrades. This would be a nightmare for values. Keep supporting your PAC.
Doug Foster, Director of the Dept of Saving and Mortgage Lending, fought the US Congress for you and has retained the right for sellers to owner finance up to 5 properties every 12 months before needing to be licensed? He should be your friend! Write him a thank you note.


Today I heard Bill Jones, Chairman of TAR, speak to the Houston CRS group - he is a great speaker by the way (he gave me permission to plajorize his speech! Thanks Bill) He talked about the how the dynamics are changing with buyers and sellers. The generational diversity , the technological diversity , and also all the misinformation with the internet. He thinks about 95% of what is out there is inaccurate/incomplete. Consumers need confidence! They also need a professional (YOU!) to be the authority for them. To clarify what they are reading at 1:00 am when they send you the email of properties they find on MLS or Zillow.com. Do they really expect you to respond at that hour? Yes indeed, the attitudes, expectations and communication of the consumers is changing right before our eyes. The takeaway to this: educate yourself, keep up with the times (technology) and define what sets you apart!

Lastly, Bill had a great observation, that rings so true with mortgage loan officers as well. The most successful reatlors/lenders (a) show up, (b) pay attention, and (c) tell the truth. Many times, they have B and C down...but does everyone show up? We know the answer is that they do not. BE PRESENT! Also, while the email and internet are good ways to communicate and attract leads, NOTHING can replace a good 'ole handshake and look your prospective client in the eye, and ask him for his business. People really are starving for personal attention , no matter what they say.

Do you need to implement processes in your business?
Or fine tune how you work with your assistant /buyers agent (or need to hire one)?
Or generate more leads?
How about net more income?
If you close at least 10 million/year, and need some fresh ideas............Come to the forum I am hosting Sept 21 (3-5pm) at Maggianos. I am flying in one of the top realtor coaches in the nation FREE for you! His company coaches realtors and lenders. For example, Tom Daves, the #1 KW agent. I am also one of them, and can tell you their ideas I have implemented have changed the course of my business in the 7 months I've coached with them. I work less hours, my team is smoother than ever, and my income increased 30% this year (in a down market!) We are not selling a thing. Its my gift to you, for supporting my business. You cannot afford to miss this event, I promise you. For only 2 short hours.....and I will even provide cuppachino and dessert! Seating is limited, so simply reply to this email to reserve your spot, or get more information.

To your continued success...................................


RATES as of September 3, 2010 (UNCHANGED FOR THE WEEK)
The following assumptions apply:
20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions, Primary Residence (Refinances have different rates)
30 day closing
Credit Score 740 +
Debt to income ratio <=40%
Full Documentation of Income/Assets

Conforming ($200,000* - $417,000)
Jumbo ($417,001- $1,000,000*)
30 year (fixed) 4.375% APR 4.504%
30 year ( fixed ) 5.375% APR 5.492%
15 year (fixed) 3.875% APR 4.099%
15 year ( fixed ) 4.750% APR 4.946%
5/1 ARM 3.250% APR 3.331%
7/1 ARM 3.625% APR 3.515%
5/1 ARM 3.250% APR 3.477%
7/1 ARM 3.500% APR 3.572%
10/1 ARM 5.000% APR 4.443%

FHA/VA call for quote (max loan $270,000)




We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!


If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!


Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com

Welcoming Pablo!

This weeks message will not contain market information nor rates, but purely a letter from the heart. I am feeling a bit sentimental......................

Pablo Fernando Hernandez was born yesterday at 3:30 PM, weighing 9 pounds 2 ounces and 21 inches long. Up until that moment he arrived, my biggest fear was wondering if I had the capacity to love another human being as much as my 1st son, Diego. Now, I know that indeed I can.

At the birth of a child we are overwhelmed with the feelings of innocence, promise and hope. I once again have asked myself, what is my purpose in life? Several weeks ago, I answered that very question, as my business coach had instructed. I came up with (1) For my family to have enough, and not need or want for anything , (2) Impact the lives of people I love whether it be emotionally or financially when in need, and (3) make a difference in the community, family/friends, and professionally with clients and coworkers. Well Josh, since I know you are reading this, I have now added a fourth one, and perhaps if in order, the very first. My purpose is for moments like the one I am feeling today. To be completely free from worry or despair, and the feeling of immense elated emotion and peace.

Friends, take a moment, as a favor to me, and reflect upon those moments of happiness that have shaped your life. I hope that they are many, and many more to come. May we seize each moment as if it were our last, and leave an impressive impact on those lives we touch every single day.

Keeping up with the Jonses

As I see Realtors throughout the week, it is alarming at some of the stories 'other' lenders are telling the real estate community! It is amazing how a story or new regulation can have so many different interpretations! Let's answer some questions that I received this week, and you can have one lender's view (Patriot Bank Mortgage - who should be on your referral list, by the way). Remember, we are your friend in lending, and we endeavor to keep ourselves up to date on industry standards and interpretations so we can help you sell more real estate!

This may be long, so pick and choose what you want to absorb. I hope it’s informative.

Why do different lenders have different rules? Excellent question! Fannie Mae/Freddie Mac publishes guidelines, and the investors (ex: Wells, BA, GMAC, etc....) interpret them. They put overlays, and give us, the lenders who originate the loans, their guidelines for purchase of the loan. So, depending on the investor we use, and the borrowers’ qualifications, that drives what 'rules' we are using. Sometimes we have to use a different investor (ex: Wells over BA) because of an appraisal issue or income document. It gets very hairy and complicated at this point. The bottom line is, IT IS DIFFICULT, and the underwriters have to decide how much risk we can take to bend the interpretations, so we can have a sellable loan!

My listing didn't close because the underwriter said the house had been on the market too many days. Can lenders do that? This is a very complicated question, and has many answers. But first, know that investors are looking for ANY reason not to buy loans, and the easiest thing they can pick on is the appraisal. It is the only document left still up to interpretation. Income and asset docs are cut and dry, black and white. But the appraisal......that can form an entire life of its own. So that is where lenders are cracking down the most and taking the most conservative approach. DOM (days on the market) is a HUGE red flag. An underwriter’s questions would be: (a) Why would anyone list a home not priced to sell? (b) What is wrong with the property that caused it to be on the market so long? (c) What do the other comps look like, and how many DOM were they? So there is not an easy answer to this realtor's question. We would have to dig a lot deeper, but as a listing agent, if you have a property that is over 180 days on the market, be prepared to defend your sellers. Saying that they were not in a hurry to sell is not going to do the trick.

I heard a lender say that now they (lenders) are checking credit the day of closing, and last minute a borrower may not qualify!!!! Yes and No. Fannie Mae/Freddie Mac have published guidelines that say the lender must verify that up until the DAY of closing, the borrower has no new debts, and that the loan application is completely accurate. So, lenders have interpreted that as: we have to check credit before closing, to be sure no new debts or inquiries into the credit report. Every lender has their own interpretation of this. By the way, a new credit score is NOT required. Some lenders will take this to the extreme, and verify credit the day of, and maybe even pull new credit scores. This is a nightmare waiting to happen.

AT PATRIOT, we will refresh debts and inquiries (only- no new score) 5 days prior to closing. This will allow us enough time to cure any questions with the borrower. Also, we are mandating a disclosure at application, advising the borrower what NOT to do with their credit. No inquiries, no new credit (wait to buy appliances!), no new anything. Don’t even charge on your current cards. If you do, your loan can and will be affected. Hopefully this will work. As you probably know, some borrowers don't listen. But we hope the signed disclosure in big font will get their attention. Lastly and most importantly, ask the borrower’s lender what their policy is on this topic, so you are prepared. How many days before closing will they refresh the credit?

Our sales manager told us today that appraisers now have to be knowledgeable in the area of the appraisal - yea! In theory, YES! Fannie Mae just released selling guide updates (https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2010/sel1009.pdf) that become effective Sept. 1. They clarify that (a) neither the HVCC nor Fannie requires lenders to use third party vendors to choose appraisal (hence: appraisal management companies), and (b) appraisers who lack requisite knowledge, experience, and access to appropriate data must not be utilized, and (c) It is incorrect for an appraiser to indicate that the HVCC does not allow for communication between the lender or an authorized representative. This is important, so let’s break it apart:

(a) Neither the HVCC nor Fannie requires lenders to use third party vendors to choose appraisal (hence: appraisal management companies) - this will still happen with the larger national lenders. So beware. Once you know who the lender is, call and ASK them how they handle appraisals. Many times, if an AMC is used, it means longer turn times, and the possibility of getting an unknown appraiser is greater. They usually use a 50 mile radius when choosing appraisers, AND use companies that will do an appraisal for 1/2 the fee, so they can keep the other 1/2. Think about it. At Patriot. we use a small list, of trusted appraisers that we know are familiar with the area. If we have a loan south, like Clear Lake or Galveston, we use our Clear Lake branch list to choose the appraisal.

(b) Appraisers who lack requisite knowledge, experience, and access to appropriate data must not be utilized – Ok, in theory, that is how it is supposed to be now. Fannie Mae saying this changes nothing. How will this be policed? After the appraisal is done, and the underwriter or realtor complain it is a bad appraisal? What we see is happening now, is that it will be controlled on the investor level. The large investors we sell to (ex: Wells, BA, Citi, etc…) each now update their ‘blacklist’ of appraisers on a DAILY basis. That means that before we close a loan, we have to make sure the appraiser is not on it. In the QC process, after the loan is purchased, they will flag an appraisal/appraiser they think is bad, and then update their list as to not accept that appraiser in the future. This is a tedious process! But we are handling it. My main point here is not to get too excited. In fact, it may delay the process more if an appraisal is ordered, and completed, then days before closing the lender tells you, oh by the way, we have to do another appraisal, because they are on the investors black list. This is my premonition. You heard it from me first!

(c) It is incorrect for an appraiser to indicate that the HVCC does not allow for communication between the lender or an authorized representative – I have heard many realtors say that an appraiser will not talk to them, saying it’s against HVCC. FALSE! Don’t let an appraiser get away with this! Stand your ground, meet them at the house for the appraisal, with comps in hand. They don’t have to use them, but at least you have done your part. Try and try again.

Ok, that’s enough for today. If you are like me, you’re fogged by now with all this info! Have a great weekend, stay cool, and remember to refer us your next client! Kenny, Sarah and I would love to hear from you! (That is my team- they are awesome!) You can reach us at the numbers below.

A rainy economy means amazing rates

On this much deserved long weekend, we at Patriot hope you enjoyed a safe and restful holiday. For me, the rain was a good thing, giving me further excuse (other than 38 weeks pregnant) to sit on my sofa watching Criminal Minds reruns, or to play super heroes with my son. His favorite phrase now is ‘ I know Mommy, you can’t sit on the floor, baby in your tummy’. So we play from my permanent spot on the couch! He does the moving around of the figurines, bolting around the living room catching the bad guys. It is so entertaining!

Lots of news this week, including rates down since Monday! Enjoy!

RATES: This week mortgage bonds had a party with all the sour news around the globe. With strikes in Greece and Spain, and concern over the European Bank’s Thursday deadline to repay the European Central Banks over 442 Euro ($539B USD), the stock market took a nosedive, and that was great for bonds! Remember the inverse relationship. Bad news in the economy, good news in the bond market, hence lower yields (rates). Enjoy it while it lasts. Or will it continue? I thought for sure rates would be almost 6.0% by now. If your buyers are sitting on the fence or unsure, NOW IS A GREAT TIME! Rates are about .50% lower than a month ago. A .50% reduction in rate on a $200,000 loan translates to $60/month! That is a facial in my playbook. I’ll take it.

JOBS REPORT – released this morning, the results were better than expected, but still bad. Translation: Economy still weak, many still unemployed, so stocks remain low. We need some good news people!

HOUSE REFORM BILL: Passed. A load of financial reform for banks, lenders, financial institutions. Loaded with compliance (translation: costs) which will increase the cost of doing business. But nowhere in the reform bill was anything that applies to the ratings institutions that rated all the mortgage bonds AAA to begin with. Isnt that what got us in this mess? Investors bought the mortgage backed securities, because the ratings agencies graded them as AAA. They relied on the information . How come they are not regulated? Hmmmm…………to view a summary of what’s in the bill go to http://money.cnn.com/2010/06/25/news/economy/whats_in_the_reform_bill/index.htm?postversion=2010063018

HOMEBUYER CREDIT EXTENSION: has passed both the Senate and the House, and just needs sign off from Obama. As of right now, I can find no research saying he has signed off. Expect after the holiday. It would extend the deadline (for those already under contract by April 30) to September 30.

FLOOD INSURANCE : As anticipated, the National Flood Insurance Program (NFIP) funding has once again been extended until September 30, 2010 in the latest extension granted by Congress until they can consider more meaningful changes to the Federal flood insurance program.

News You Can Use

There was lots of interesting news this week, so I will get right to the point:

Corrections from my last post:
· The SAFE ACT (requiring seller financiers to be licensed to be a mortgage lender) is actually delayed until August 31. This means that for 2 more months, sellers can finance to their hearts content. Once and If the SAFE ACT does come into play, sellers will have to be licensed in their state to be a mortgage lender for anything other than a primary residence. The commissioner of the Texas Dept of Savings and Mortgage Lending is also taking significant steps to allow property owners to seller finance up to five transactions in a 12 month period. Not reality yet, so I am sure more is to come.

· Extension of Homebuyer Tax Credit: This is NOT reality. There has been proposals in the House to pass a bill , but because it is grouped together with other legislation, it is getting caught up in red tape. Will it make the 30th deadline? Not sure. If passed, it applies ONLY to those persons already under contract.



More news you can use:
· What do you think about the 1200 prison inmates that were able to defraud the government of 9.1 million total in tax credits reserved for 1st time buyers? It’s a shame, for such a generous move on our parts (via our legislators!), that people still find a way to take advantage. There will always be fraud, it just moves from product to product. Sad.

· Fannie Mae is seriously considering ‘cracking down’ on homeowners that walk away from their homes even if they have the ability to pay. (ex: the values are less than the loan balance). After a default/foreclosure they would not be able to get another Fannie or Freddie mortgage for at least 7 years AND could be receiving a judgment for the full loan balance amount. Many homeowners have the attitude of ‘why should I pay?’. So they walk.

· Well, how about because it’s the right thing to do? Reading the blog comments on this one was interesting. Responses varied from ‘it’s the right thing to do’, to ‘can’t believe Fannie has the nerve to make homeowners pay (once again) for the bad products they created that started this whole mess. It was all very interesting, to say the least.

· Unemployment benefits were NOT extended. Millions of unemployed are about to lose benefits. Congress did not pass the bill, wary of increasing the deficit further.



Rates are still at record lows….best time to be looking if you are a buyer!

Counting down

As I count down my due date to 3 weeks, everyone assumes that I am ready for this pregnancy process to be over with. HECK NO! Once my second son is born, out the window will fly my excuses for weekly massages, nightly footrubs from Fernando, cutting in line at the grocery store, and stork parking at Kroger. Who are we kidding? I want to milk this timeline for all its worth!!!!!!! On a serious note, I would like to also assure all of you, my trusted referral partners, that even as I enjoy the first few weeks of my new baby at home, my team (Kenny and Sarah) will be at the office slaving away! Waiting for your calls, and ready to qualify your clients quickly and close our loans efficiently! There will be absolutely no disruption in the service we provide.

This week there are several points of 'News You Can Use":

Changes to Seller Financing: On May 1, 2010, the SAFE Act was passed into law (Secure and Fair Enforcement for Mortgage Licensing Act) which has within it a small provision that expands licensing requirements to owner finance transactions (1-4 family residential) where the property is not the primary residence. The seller/financer must be licensed as a residential mortgage loan originator. The process involves education, background checks, fingerprints, and the payment of fees. If your buyers/sellers are considering this in the transaction, be sure that you are aware of the new limitations.

Home Buyer Credit Deadline Extension: until 9/30/2010 (for contracts already executed before April 30. This gives more time for delays that have arisen in short sales, etc for buyers to close their loans.


Flood Insurance: Congress today once again could NOT reach an agreement on a budget for flood insurance. So......the moratorium on new policies still stands. Lets hope the legislators can get it together. AT PATRIOT, we will accept a prepaid policy with application for closing.

Have a great weekend! Rates are still fantastic, presenting a wonderful opportunity for your clients to buy a new home!

Mixed Signals

Another week survived in the mortgage industry! Actually, its not that hard to survive. You just do the right thing, return calls ALWAYS, and give bad news early. Communicate. That can’t be that hard, can it? At Patriot Bank Mortgage, we like to think we do that exceptionally well. My team and I proactively call /email borrowers and both agents on the transaction once per week, to update them on the progress. If you could use that kind of service from your mortgage lender, call us, we are happy to talk to you about how best to work together.

I had lunch with Mike Inselmann this week. A rare treat to have one on one time with the most well known Houston economists (in my opinion a pure genius). We talked of course about the business (after kids and grandkids). He was very interested to hear a lenders story on what we go through, and I naturally got his take on things. Bottom line, we concluded that the pendulum has swung in the complete opposite direction, BUT ….things will lax. It may take a few years, but shouldn’t lenders have cared about proving income years ago? I mean really, does it make much sense to say to a borrower ‘OK, we are just going to take your word for it that you make xxx dollars and have xxx in the bank’. Where did we as a society think that was ever fair to take a ‘just because you said so’ attitude?

Congress passed an increase in the FHA monthly premium this week from .55% to .9%. On a $170,000 transaction, that will cost a borrower $42/month. For some borrowers, that will make the difference between qualifying and not qualifying. The increase is due to the fact that FHA needs revenue. They are losing money due to foreclosures, and this is one way to get it. Make the innocent consumers to pay. I think I will stop here, because being 35 weeks pregnant, I can’t get all riled up on this issue. Don’t get me started.

Retail sales came out today the lowest in 8 months (1.2% decline). However consumer sentiment has improved. Once again, mixed signals. Time will only tell how the stock market and bond market will react. For now, rates remain low, and if your buyers are sitting on the fence, they might want to consider buying now while rates are still low. They most surely will eventually go up. That is for sure….like taxes.

The Oil controversy and more

Should I dare mention the oil spill? Its on everyone's topic of conversation, just like the OJ simpson trial, or Monica Lewinsky, or....I don't know, just about anything the press can get their hands on. The fact is that this oil spill will affect our Houston economy. Somehow, someway.

A few topics for today:

There is another reason why you should claim all your income on your taxes and not fudge write offs! (other than the obvious, it’s the right thing to do). (1) You need to show income to get a mortgage loan (2) if you want BP to reimburse you for lost wages, like they are doing in Florida to realtors that have claimed lost wages on beach rental. You see, BP is reimbursing fisherman, restaurants, realtors, just about anybody. So to prove wages, if you are self employed, many of them have to shore up tax returns to show income. Uh oh, you say! Where is the income? Good for BP, bad for the person wanting the handout.

Boy these RATES are nice. I am not sure if they are going anywhere soon. Between the European crisis, the oil spill, and unemployment tanking the stock market today, seems that troubled times and uncertain times are ahead. Making investors skiddish, and looking for the safe haven of bonds to put their cash. Remember, when the stock market is not doing well, bonds are, so that pushes mortgage rates down.

If you have a closing at the end of June that is NOT expecting the tax credit, beware! Lenders and title companies are swamped trying to meet deadlines for the flood of business that needs to make the deadline of June 30. Would you want your buyer to miss the credit? So when push goes to shove, look for lenders and underwriters to choose the tax credit files over yours to push to the head of the line. TALK WITH THE BUYERS LENDER NOW. Be on top of them on the timeline. Most of all, prep the buyers and sellers that there may be delays. Hopefully you thought ahead and did not schedule your closing for June 30 anyway.

Flood insurance is temporarily unavailable - AGAIN! Until Congress reconvenes next week, there are no approved funds. Many lenders (like Patriot) are allowing closings where the application and premium have been paid. Hopefully your transactions are not affected. My only lingering question is (1) How could Congress leave session without approving funds AGAIN! and (2) Why did they only approve flood for 45 days the last time this happened? Will we be going through this every 60 days? What a dilemma. Once again, we are powerless against these forces which we cannot change (in the short term). As I have mentioned before, get involved with your lobby, or the topics you believe in. It’s the only way we will change things. If we don’t get involved, than can we ever expect change?

Define your purpose

My coach assigned homework this week of ‘what is my purpose? Well gee, I don’t know. To make money? No…besides that (he said). What is the reason you get out of bed in the morning, and what are the things that motivate you to do what you do? Is it to support family? Contribute to the world via charity? Is it to support a family member? Or all of the above? So he challenged us to come up with specific, concrete items. I have 2 weeks. Thank goodness. This will require some thought. What is your purpose? Have you defined that lately?


In the market news:

· Stocks are down 10% from their peak, and has eased mortgage bonds (interest rates) a bit. We expect more correction, so keep an eye out
· This week the Senate passed sweeping legislation on financial reform to correct the 2008 crisis. Many of these items, if passed will have negative impacts on not only mortgage companies (so look for our margins/yields to increase) but also the consumer. Increased regulation and change means (a) more paperwork (b) more cost to mortgage companies, ie, to the consumer, and (c) mass confusion – nothing new these days! As things are approved, I will educate you on the changes. Of the 326 proposals, we don’t know which ones will survive in their current form.
· As of June 1, Fannie Mae is requiring MORE screening for lenders to perform in their QC. We must repull the credit report within 24 hours of closing, to verify no new debt has been obtained, or , if credit scores are lower. If there are changes, this could DELAY the closing, while additional conditions may have to be obtained by the borrower. In addition, we have to verify additional verifications of the borrowers occupancy plans for the property, as well as the social security number directly with the SS office. Oh yes, also, the W-2 transcripts for all borrowers, employed or self employed (used to be self employed only). Oh, and business tax returns. We used to only need those on Jumbo borrowers, but now, need them on conventional too. And….get IRS transcripts on those too. Do you have a headache yet?
· All this extra compliance sums up to one thing: Cost. The consumers will end up paying some how, for the increased legislation and regulatory requirements.

Bottom line: hang in there. Patriot Bank Mortgage is here to see you through all the changes, and continue to make things streamlined for your borrowers with our in house processing, underwriting and closing- we get the job done , accurately and on time.

Drama abounds

Drama ensued this past week. I don't mean the Citi broker that "accidentally" sold 1 billion shares of Proctor and Gamble on Thursday, sending stocks tumbling (that’s the story I heard)- but my 4 year old pushed a girl at school. That is real drama! The crying went on and on when I would not let him watch Dinosaur Train while I cooked dinner. That’s the punishment. He acts up at school, I take things away that he likes. He said I was mean and he didn't love me anymore. Poor thing. Doesn't he know that crying does not fix the punishment? So we sat and hugged, and talked about what he did, and not being a bully, etc... And ended the night with his favorite dinner: peanut butter and jelly. That made everything ok. He took it like a champ, and hopefully will not push, shove, bite, hit or pinch at school ever again. Can I only dream?

So back to the stocks. The Dow lost 900 points in 5 minutes last week, then began to rebound Thursday only ending down 348 points. Rates eased (went down) (stocks down, bond prices up, bond yields (rates) down). Today, we feared rates would go back up, as news of better jobs was expected. That IS what we got (better than expected payroll numbers), however, stocks remained low, as the fear and uncertainty of the Greek economy still looms over the market and the European Union.

Oh, and to top it off, Freddie Mac needs another few billion (yes, BILLION) to recover from losses. They lost 8 billion the first quarter of 2010. Now that doesn't sound good does it? But wait.....Freddie Mac's CEO assures investors and the government that things are turning around. That could be true, as we are seeing business increase month by month as consumer confidence returns to the market. Not to mention jobs. But, do we think they can keep rates low if they (Freddie Mac) are losing money every month? Its called ' padding the margin'. That is my theory and pure speculation on my part. What do I know? We may see the investors wanting higher margins (profit) for the loans that they do make. Only time will tell, but do enjoy these low rates while they last.

The urgency of business

"Drive Now, Text/Phone Later". That is what the marquis on 610 said today. I saw it twice. So I tried it for about 10 minutes. Pure silence. I did not even have the radio on. It was grueling! Is there such a thing as talkers anonymous? I sadly admit that I am one of them, that drives down the freeway with (at least) BOTH hands on the wheel (and I use a headset). But I must say, I know I need to stop. Its dangerous. So far I have been lucky, but do not want to learn my lesson the hard way. What is it about our society that demands such instant gratification that we must talk and respond to email immediately? We just cannot wait to reply. Its good customer service, right? But is it really if you are risking the lives of others at the same time? Just something for you to think about over the weekend.........

Speaking of instant gratification, what about in the stock market? I remember the days (15 years ago) when I began originating loans, rates changed only 2-3 times a week. Also, Credit reports still took 4 hours to generate, and came printed out on the glossy, scroll fax paper! Now rates change 2-3 times a day! Depending what investors see on CNN the last hour (literally). Information is changing at warp speed. This makes it even more difficult to quote rates, lock loans, and execute anything! You need to be sure your loan officers are skilled and knowledgeable. Your clients experience depends on it!

Rates were pretty flat this week. Monday will be interesting (possibly lower rates?), as the results of today were that the stock market fell from the news of Goldman Sachs credit downgrade and criminal investigation became official. Also the continuing bad news of the oil spill in the Gulf. Galveston beach anyone?

interest rates and credit scores and the economy, oh my!

As usual, this week was jam packed with news.

Rates are steady, and I have seen some revised forecasts for rates that anticipate 5.5% by year end. That is revised downward from the 6.5% I had previously heard. The reason? (1) Problems in Greece, Portugal, Spain, and Italy (2) the EU issues have caused a 'flight to quality' for investors that now are once again considering the US stock market a sound investment (3) Continued unemployment issues and stalled recovery (4) For the first time in history, mortgage backed securities are showing signs of written policies and procedures on how to trade them. This means regulation and oversight just may be working, as investors begin to regain confidence in our market.

***You can find out more about forecast of interest rates on www.financialforecast.org
Today's news (www.cnnmoney.com) was plagued with articles on the unemployment debate (99 weeks and counting) and new home sales regaining ground at the fastest pace in 47 years. Its catchy headlines like this that catch investors 'already challenged' attention spans. Read further, and you will be confused! Mixed signals from recovery in the housing market, to unemployed persons for 2 years and counting. In the end, the big picture is that we may enjoy these steady rates a bit longer. Who really knows though? That is my official disclaimer by the way.

Did you know.......................Fair Isaac (inventor if the FICO score) released a bit of the curtain this week and actually gave some insight to credit scores and how they may be affected by a foreclosure or short sale. 85-160 points. A bankruptcy is 130-240 points. All depends, of course, on your overall credit, and did furthermore say that those with an 800 score (one of the best) are the most at risk when an event like this happens (foreclosure, short sale, bankruptcy). You can read the article on www.cnnmoney.com
Quote from Jim Rohn: “Success is no more than a few disciplines practiced every single day”.

Discipline

The MS 150 was this weekend (watch the traffic on I-10 West!). My husband, Fernando, is riding for the first time. He has been training like a madman, working out 2 hours a day. Also, next weekend he is competing in his 4th sprint triathlon in Galveston! Am I married to a crazy man?! It’s quite interesting living with someone that can be so disciplined and driven. Having 2 of us in the household that are focused can be challenging at times. But all joking aside (really I am not)....good luck to you Fernando! You are my superhero.

Just like athletes, realtors and loan officers need discipline, training and focus. If not, what good would we be to our clients? What are you doing to improve your discipline? Personally, I have implemented in the last 6 months new tracking forms, daily disciplines, hired an additional assistant and hired a coach that coaches realtors and lenders specifically (The Core Training). We have already seen an increase in business as a direct result. Our goal is to create ‘Raving Fans’ of our clients and realtors! I know it’s working!

Quote from Jim Rohn: “Success is no more than a few disciplines practiced every single day”.

News You Can Use:

Rates: Ended the week on a great note with the announcement of the Goldman Sachs fraud charge. Bonds love scandal and bad news. The stock market took a nose dive, and ‘chaching!’ bond prices increased, leaving mortgage rates at nice levels for a Friday.

Is the Cap and Trade Energy Bill really true? This is HR 2454 that requires existing homes must meet new energy standards before they can be resold. According to Snopes.com : FALSE! The bill (not even passed by Senate yet) offers financial incentives for homeowners that do so, but does not mandate any such thing.

Will FHA go to 5% down minimum? No concrete approval of this yet. There are rumors, but I am not sure that HUD would be that daring. Would they? What REALLY is the difference between 3.5% and 5.0% anyway?

Can you get a FHA loan with a 580 min. score? Technically: YES. FHA publishes this is their ‘minimum credit score’. In REALITY: NO. Investors have what are called overlays. They chop and amend guidelines as they see fit. In this case, 99% of the investors require 620 score. But ask yourself, does a 580 credit score really deserve to buy a home right now?

Can the homebuyer credit be used at closing toward down payment? Again, Technically, Yes. Obama’s feel good plan at work. REALITY: no. There needs to be a local government agency to implement /advance the money. To date, I have heard of not one lender that has closed one. Have you? We encourage our clients to file an amended tax return immediately after closing, and they get the money in 4-6 weeks. That is what we call ‘sweet!’

Is HVCC really going away? It is supposed to ‘sunset’ in October 2010. However, most investors will probably keep the practice, just ‘because’. There are legislators trying to end the practice (ex: Congressman Childers), but nothing has been set in stone. (At Patriot, we have our own ‘short list’ and we rotate from that- we DO NOT use appraisal management companies! This is just one of the benefits of using us for your mortgage needs!)

Now….the million dollar question: Will the Tax Credit be Extended?……………drumroll……………ONLY for military personel that have served at least 90 days out of the US in the last year. The credit is extended 1 year. How is that for a specific demographic?



Hope you had a fantastic weekend! It was raining, so maybe you had time to get some projects done around the house. Stay disciplined!

Be your own super hero

My four year old, Diego, asked me the other day " Mommy, are superheroes real?" . Hmmmm. What should I tell him? Do I keep the spirit alive as we do with Santa? Or do I tell him the truth, so he won’t go jumping off buildings thinking that his spider web will shoot out of his wrist? I chose the latter. Break it to him now.

There really are SUPER HEROES though! Every day, we deal with that super closer at title that goes the extra mile to keep our deal together, or in our case, our underwriters at Patriot! God love them. They stay late, they work Saturdays when needed, and they sign off on conditions just minutes before closing so we can fund on time. In my book, that qualifies as a super duper hero. But some days, they can also be villains, making our life hard with conditions and paperwork and this and that. Villains!!!!!!! Worse than the Green Goblin himself! But its not their fault. Its the Big Daddy Fannie Mae and HUD that make these regulations. Underwriters are just the messenger. WHO ARE these guys anyway? Is it a board of suits sitting around a conference table spitting out do's and don'ts for millions of potential homeowners to comply with? Probably. That sure is refreshing.

So that is my job description now, shielding my clients and realtors from the painstaking regulatory requirements that lenders force on us. Does this make me a super hero? (SMILE) Some food for thought: What can you do for your clients to make you their super hero? Its a catchy concept, and one that can improve the homebuyers experience in this crazy, villainous world! That is my motto for 2010- BE A SUPERHERO for my clients.

A check-up on all things changing

Finally, the warm weather is here! We can play outside, wear less clothing (good if you are 6 months pregnant like me), and enjoy all Texas springtime has to offer! Spring is also a time for cleaning. You may want to keep reading……

FHA on April 5 (Monday) will increase the upfront mortgage insurance funding fee + .50%. That is $500 for every $100,000. Since it is rolled into the loan, and amortized, the payment increase is only $3.00/mo. Not too drastic. Also, the seller contribution allowable goes from 6% to 3%. This will most impact lower priced homes (example: under $150,000) where 3%, or $4500 will not cover all costs and escrows required. Any FHA case numbers that are obtained before the 5th will be covered, regardless of closing date.

There is a rumor that seller financing may go away. This is a topic I need to investigate more, but will surely keep you posted. That would truly put a dent in transactions. If any of you know anything about this, I would appreciate feedback.

Apparently buried deep within the Health Care Bill (Section 9015, p.2000) is language that would take effect on 1/1/2012, in which the Medicare tax (3.8%) would apply to capital gains, dividends, rents, royalties, interest, etc for those singles earning >$200,000 . TRANSLATION: a 3.8% tax on the capital gains from the sale of your home. Basically this confirms the rumor as we know it: those top earners will bear many of the brunt of mistakes from the past.

The Congress went on ‘break’ without passing the budget for FEMA! It was an oversight (????) and basically, if you are in a flood zone, and set to close before April 12 when Congress returns, you cannot close. Some lenders will allow closing, and some will not . So if you have a transaction in a flood zone, be sure to communicate with your lender quick, to see if this will affect you. At Patriot, we are covered on our transactions.

RATES ARE ON THE RISE- slowly but surely, as we anticipated, the Congress safety net for mortgage backed securities ended March 29. For the last week, rates have inched up slowly , about .25% total. What is more on the horizon to come? No one knows. Signals of recovery are still mixed (keeps rates low), while at the same time, it is obvious no one wants to buy our debt (tbill auction sales have been very weak- which is bad for the rates). We will continue to keep you posted.

One thing does remain the same among all this change! Patriot Bank Mortgage employs the best of the best loan officers and operations staff, and we strive every day to close on time, and even early! We can close in a min of 8 days (since we must allow 7 days for federal disclosures), and are very supportive of our local real estate community.

Looking for some guidance? I have an idea...

Remember to set your clocks ahead one hour Saturday night! Spring Forward……..

This week’s update is short!

Ø Are you looking to build a team?
Ø Are you looking to implement systems in your business that are consistent , and generate (a) more leads, (b) raving fans, and (c) less working hours?
Ø Are you looking to net more income?


Patriot Bank Mortgage is sponsoring a FREE 2 hour seminar for our realtors on Wed, March 24th. My coach, Rick Ruby, is flying in from North Carolina to visit my office, and at the same time, is willing to spend 2 hours with YOU, to talk about how to run an efficient business. Rick is President of The Core (www.thecore.tv), and coaches lenders and realtors. He has a strong message, and is an expert at building successful teams. Personally, after 15 years, I thought I knew everything… But my systems seemed stale, and my team was at a stalling point. Now, with Rick’s help, my team is focused more than ever, and we are concentrating of creating raving fans out of our clients and referral sources!!!!!!!

Please consider joining us for this 2 hour event. I promise you, it will be worth the effort!

When: Wednesday, March 24 (2-4 pm)
Where: Holiday Inn Express, 1300 N Sam Houston (Beltway and 45)


Rsvp to us this week – space is limited. Just reply to this email!

Have a wonderful weekend and go out and enjoy this amazing Houston Weather!

Tick tock

Only 50 more days until the homebuyer credit deadline approaches! That means that by April 30, your borrowers must have an EXECUTED CONTRACT, and can close as late as June 30 to receive the credit of either $8,000 (first time buyers) or $6500 (current buyers owning 5 years or more). That is only 8 weekends , which is when most people look for a home.

Daily I have questions from prospects and realtors if the credit will be extended? Well, that is anyone's guess of course, just like when will the rates start going up? No one knows. However, if your buyers are waiting around for the 'too good to be true' 2nd extension of an already miraculous gift, they may be sadly disappointed. Currently I have heard no rumors at all of an extension. Don't get left behind!

Life is full of surprises! Imagine my horror to hear that Whole Foods imports its 'organic' vegetables from China? This is about a year old in the news, but it just made it accross my ears. I have tried to be as organic or 'green' as possible, incorporating small habits in my life that will make a difference (I hope). So should I really be concerned about this China organic thing? Is it my own fault that I did not read the label that has been there clear as day? What other things am I not paying attention to? With the media, and internet , and countless information at our fingertips, it is no wonder consumers are confused. We have too many outlets, too may choices, it is just plain overwhelming. So imagine shopping for a mortgage !!! A referral of 2-3 trusted sources for mortgage financing is the BEST GIFT you can give your client. People you know, and trust , and have had good experience with before.

Have you interviewed your lender lately? This week I had coffee with a realtor that has known me for years, but never referred me. That's ok, because I knew he had several long standing , deep rooted relationships. I respect that. He receives my weekly updates, and recently asked me to meet with him. His story is a tragic one, of 2 loan officers he has trusted for years, and they each ruined a transaction for him. One client understood, the other held it against him because it was guilt by association. In each case, it was not necessarily the loan officers fault, but it boiled down to (a) lack of control, and (b) lack of communication.

So we had coffee, and Mark and I discussed past , present and future. He asked me tough questions. How many A+ realtors did I already have, and where would he fit in to all that? Did I have the time to service him too? Would I be working after the baby? (YES!) He also wanted to know about my team and philosophies of customer service. What could I do to help him grow his business? I was so relieved (and flattered) that he was giving me an opportunity to get to know me! (That is also why my weekly updates have some personal tid bits, so you can know what makes me tick). So again, have you really ever sat down and gotten to KNOW your lender? The ones you trust and rely on to give the best experience possible for your clients? Call them for a cup of coffee, spend 30 minutes with him/her and ask the questions that are important to you. Develop a list of questions your CLIENTS should be asking lenders before they hire them. Its not all about rate. RELATIONSHIP IS EVERYTHING.

As for rates, they are there, steady, and waiting for your borrowers to pull the trigger on that home of their dreams. There is LOTS of money, waiting to be approved.

The WHY? of things

Lately, I have been playing alot of superheroes with my 4 year old, Diego. In fact, I think I may now turn into one. My choice would be Cat Woman, but I'm not sure how I would look in that tight black leather suit, especially 5 months pregnant. So its superheroes in the morning before school, and then the minute we get home, its superheroes again. So I happily endure, and play, even if just for 5 minutes, my sweetie is satisfied. His last waking breath the other night was ' Mommy, why does Wolverine not have hair? '. Well, because he has a mask on, that's why. 'I KNOW that Mommy , BUT WHY?'. Well, I was not sure how to continue that one, so I changed the subject.

WHY?????????????? Such a powerful word.

Why are there so many unemployed?? There are 4.6 million-that we know of, and on Feb 28, 1 million of those will run out of benefits. The $787 billion stimulus package was to create 4 mm jobs, and there have been about 2 mm created (source: Fox News). That is a cost of $393,000 per job.

Why are banks not lending to businesses? Could it be that they have no incentive to take risk at a 3.5% interest rate?

Why are more small banks going to the Fed's emergency 'window' to borrow short term/overnight funds at close to 0%? Could that be a sign of a yet weaker economy-the Fed won't say, nor release the bank names in fear of hurting consumer confidence.

Why is our economy not getting better? Could it be unexpected things like the meltdown of the Euro (being compared to the mortgage meltdown- since Greece is about to be downgraded for their credit. France and Germany hold much of their debt, so will they then fail? If you think the Euro economy has nothing to do with us here, think again. Or could it be the unexpected blizzard have destroyed business in the central US and East Coast, causing further layoffs? It has been said that the housing recovery will drive us out of recession. Well bring it on! The Fed is cautiously NOT rising rates yet, as they don’t want to further inflation. Mortgage bonds hate inflation, and if and when that happens, rates WILL rise.

So many ‘Why’s ‘ and so little time to answer them all. I think I would rather play superheroes.

Making the "impossible" oh-so-very possible

This week I received some very valuable feedback from a realtor that said she got the feeling from reading some of my previous commentaries that loans are impossible to obtain, and it might discourage buyers from buying right now. (Thank you so much, you know who you are!). I welcome feedback always, so please don't be shy.

By nature, I am one of those 'people' that always finds the silver lining- positive outlook, and neutral ground. No wonder- I'm a middle child. So believe me, my intention has never been to be down on the home buying market. HOWEVER, I refuse to sugar coat the facts. And this could be mis-interpreted by some as negative. My goal is to acknowledge REALITY, and find a positive outcome, so we can get through these difficult times. I try to accomplish this by giving you, the realtors, information that is truly happening - Letting you into the world that lenders live in, so that possibly it can enhance our working relationship to continue to accomplish the dream of homeownership for our clients.

I've said this before, and I will state it again. THERE IS LOTS OF MONEY OUT THERE TO BORROW.......if.......you have (a) good/excellent credit, (b) can prove your income, and (c) have money for a down payment and reserves, and (d) if you give us time to work through any unique situations. Now that doesn't sound so hard, does it? Well, it still is challenging for many people, after a 5-6 year run of 100% loans, low documentation, and subprime credit programs. We have short memories. Some borrowers are having a hard time facing the reality of current times. Lending has gone back to the way it was when I entered the business in 1995, with a 'twist' of some extremes, but for the most part, conservative decision making. Now there are some unfair practices, I must admit (like the credit scoring system- please don't get me started). However, I'm just the messenger.

There are some borrowers that fall into gray areas (example: self employed), but we do try to work with them all we can. You may have to file on time taxes or even early, if you need 09 income to qualify. We may want an audited profit and loss statement. Every situation is unique. One borrower made a really great comment to me once. He was a business owner, and said that he found it hard to believe lenders cannot realize that the stability of a business owner is more solid that a W-2 employee. The business owner will do whatever it takes to save his business, and earn his living. Very good point, Mr. Borrower. But unfortunately, the purse strings (lenders) don't see it that way.

So as is my nature, I would like to leave you with a thought of something positive amidst this era of change and uncertainty: If it makes sense for you to buy now, do it. Get qualified early, to avoid any pitfalls. Be sure your lender (like Patriot Bank Mortgage) has several investors they work with, so that if you have a unique situation, there is a backup plan (hint: B of A, Wells, Citi, and Chase ALL have different guidelines for self employed borrowers). And if you cannot buy now for some reason (ex: don't qualify) - buckle down, save, and get your finances in order. Your day will come. But you won't know until you TRY. We will help you make a plan, and set goals for that home to be yours.

Enjoy the weekend!

Paper trails

I am convinced we will never be a paperless society. This week I had several closings, and the amount of paperwork each year seems to have gotten larger and larger! HVCC added 2 documents to our application, and this year, the new GFE has added 4 pages to our application, and 2 pages to the title company documents. I wonder how many trees that is? So, paperless………… no way.

What about the paper created/wasted with all the foreclosures and short sales? Just imagine ALL that paper floating around, from realtor to bank, to appraiser to realtor to bank again. It’s amazing. And legislators are trying to save the consumers money. All this paperwork, and cost, and compliance, must come from somewhere. Do you want to know how? The end cost to the consumer eventually, if it has not already, will be passed on to the consumer. Higher fees, higher rates, or a combo of the two.

The stock market rallied a lot this week, and for reasons you may not expect. Greece is on the brink of a financial collapse. Who would have thought? And the news of the EU coming to its aid affected the stock market as much as 4% as stocks rallied back and forth with mixed emotions at the news. China announced it will tighten its lending guidelines to slow the country’s economic grown and avoid inflation. Stocks did not like the news – good news for bonds. US treasuries were not well received at the auction- translation- no one wants to buy our debt! Maybe ‘no one’ is a strong word. Weak demand might be better said. So this week we had a lot of ups/downs. The takeaway here is that there are SO MANY factors that determine interest rates. When your time comes (or your clients) to commit to a lender and lock a loan, they should not ‘dily daly ‘ (as I tell my 4 yr old)- they should lock, and forget about the potential emotion of the thought of a lower rate.

An interesting headline for you that was on CNN Money this morning: “Eight million in assets-and can’t get a mortgage”. Some statistics that you may find interesting: 12% of US mortgages > 1 mm are delinquent. That is triple of one year ago. Assets don’t count for much anymore. Jumbo lenders are skiddish. It’s all about credit, equity, and ability to repay (monthly income). Assets come and go. People spend money (what if this borrower decided tomorrow to give all his money to charity? Money is gone………so we look for monthly income (that is likely to continue) for purpose of debt to income ratio. Tax returns, and full disclosure. We really want to know.

For My Realtors

This week’s update will be dedicated to the ‘ones I love’ (realtors). In the spirit of working together, and making transactions smooth, here are some tips for the New Year. You can call it ‘Survival in 2010’ if you like!


APPRAISALS (HVCC)
Yes, it’s still in effect, and no sign of a moratorium. Did you know that Patriot has its own ‘short list’ of appraisers that we choose from? We do NOT use Appraisal Management Companies (AMC’s) as does some of our competition. AMCs pad fees, and they pad turn times on appraisals. Beware.

TIP: Interview the lender once you receive the approval letter! Whether you are the buying or selling agent, you have the RIGHT to know!

Sample Questions to Ask a Lender:
· How does your company order appraisals? Do you use an appraisal management company?
· How many days on average to receive the appraisal once ordered?
· When will you order the appraisal?
· What are your underwriting turn times?
· Do you release documents early on average? How early?
· How many files does your processor work on at one time?
· Where does the loan get processed? Local? Out of state?
· Where is the loan underwritten?
· Are you a broker or the lender?


CONDOS (not Townhouses)
Investors, first time home buyers and empty nesters LOVE them! Lenders cringe at them. This is because condos are a haven for foreclosure. Heavily investor-owned, it is the first investment to go bad, especially when dues are not being paid and the property begins to deteriorate. We have seen this happen in Houston! There are entire buildings around town that were foreclosed upon as the result of ‘straw’ buyers and dishonest developers. You know which ones they are.

Questions to ask the HOA at the time of listing OR if you are buyers agent (before showing) ****if we wait until contract, it could be too late, and buyer and seller have wasted their time – not to mention you!

· Owner Occupancy rate (50% for FHA, 70% for Conventional)
· Are >15% of the owners delinquent on HOA monthly dues
· Is there a min. of 1 mm fidelity bond insurance in place? (***this is addressed on the ‘master’ policy, and can often be missed until closing **)
· Are there and pending lawsuits (if so, what are the details)
· Does the budget allow for deferred maintenance (meaning….there is none, right?) *we will want to see reserves on their operating statement too- to avoid deferred maintenance
· Does more than 1 entity (aka, person, bank, etc….) own >10% of the units? **Bank foreclosures are NOT exempt from this equation!


DEBT TO INCOME maximum allowed is 45%
In the heyday, we could go up to 65% debt to income ratio if the client had 10% down, and an excellent credit score. That is taken from gross income! Very generous indeed. Then last year, that went to 20% down in most cases. Well, as of Dec 12, it is 45% debt to income, regardless of who you are, or how much money you have in the bank. End of story.

But good ole FHA is still our friend at 55%, at least for now.

Tip: Buyers to get qualified EARLY, EARLY, EARLY! But you already knew that!

GOOD FAITH ESTIMATE (GFE)
The joys of change... The biggest take away is that now the good faith estimate discloses ALL charges, no matter who pays them (buyer or seller). So at first glance, and left without interpretation, the buyer can be in the dark and confused and hesitant to buy the home.

Tip: Ask questions to the buyer, or be prepared for their questions.
· Did they know that a good faith estimate will not likely be given until they are under contract?
· Have they received a ‘cash to close’ and/or a ‘monthly payment’ summary in conjunction with the good faith estimate?
· Prior to having a contract /property, they will get a summary, likely called a ‘Fee Worksheet’ (just a change in terminology)
· They need to be prepared that they will not receive fees/rate unless they have given the lender documentation and pulled credit
· Rate is 90% dependent on credit score! (a lender credit score, NOT a ‘myfreecreditreport.com’ credit score )


I hope you found this information helpful. Enjoy the glorious weather, and as always, you can count on us for all your mortgage questions!

All shook up

For the last 2 weeks, my papers have been piling up at home. “Why have I not read them? “My husband asks, saying that I am wasting money. The truth is, I have not missed much. Do you ever get that feeling? Maybe it was the holidays, or maybe I just needed a break, to get that feeling of newsworthiness back again. I think I’ll start reading tomorrow and get back on track.

I even went online to cruise msnbc.com, and I still feel I not missed much. However, the earthquake in Haiti is horrible and my heart goes out to those people. Is it a sign of global warning? All this extreme weather is making me nervous! Does this have much to do with mortgages? No and Yes. Feelings and the habits of traders are what make the bond prices go up and down.

This week, retail sales showed that 09 dropped -6.2 total, and furthermore, unemployment is on the rise, higher than expected. A total of 4.6 million people. In addition to that, there are still 10 million that have part time jobs that want full time jobs.

As long as the unemployment is high, and other economic factors look grim, the FED should keep rates steady. They have a difficult game to play, and not rising too soon, or the economy may tumble. But be careful what we wish for. Economic recovery and good news will surely bring higher rates, and probably quickly.

As we have said before, the time is now. I do feel like somewhat of a broken record, but it’s true! Have your clients get their finances in order, talk to a lender immediately and run their credit (did you know that the score on Equifax online is different than what a mortgage company generates? Drastically different! We are measuring risk of you defaulting on the mortgage. Equifax is not. They just spit out a general score to ‘satisfy’ the curiosity of the consumer).

Enjoy the weekend, and call us when you need anything at all. We remain your trusted friends in the mortgage industry!

Welcoming the new year

Looking back on 2009, I wore many hats other than the obvious loan expert: marriage counselor, lobbyist, financial advisor, mediator, and I am sure there are others not listed here. You see, in this new real estate environment we live in, it has forced a new set of standard for us professionals. We need to truly be experts in our field. We need to anticipate, forecast, and work together more than ever before!

January 1 produced new legislative compliance changes for lenders and title companies. The result: The good faith estimate has gone from 1 page to 3, and if left on its own with no explanation, will leave the borrowers confused more than ever before. Even experienced ones! But don’t have fear- embrace the change! Some good will come out of this, I just need another week to think of what it is! Really, we will adjust, and all will be fine in a few months. The takeaway here is that it is IMPERATIVE that you EDUCATE buyers like never before to get with a lender early. Know the lender, like the lender, and trust the lender, because once they have chosen, it is very difficult to change without closing and monies being affected. So choose wisely.

Rates have started to rise. Some say that in the final countdown to March of the government waning down the purchase of the mortgage backed securities, that it has already started. Once we see the ‘true’ and ‘unsubsidized’ rates….what will we find? I have heard many predictions, but 6.5%-7.0% seems to be sticking out more than most of what I hear. Who really knows?

This year, 2010, look for continued regulation of lenders. We will see fallout like never before. Lenders that will not survive, due to financial constraints imposed by the FDIC, HUD, Fannie Mae, and others. More reason for you to know your lenders, and fine tune your list of trusted mortgage professionals now.

At Patriot Bank Mortgage, we are owned by a regional bank, Patriot Bank. We are stronger than ever, and have the financial net worth, and cash to meet the stringent requirements surely to come. Our goal for 2010 is to give the best service ever, create raving fans of our clients and realtors, and become the best mortgage company in Texas.

The best is yet to come……………..and I look forward to seeing you at the top!