MortgagesUndressed

If the answer to that question is yes, be prepared for turbulance. Don’t take this as a fatal problem, but a turbulant one. For the last several days lenders that made these type of loans have annouced serious changes, some even bankruptcy.

You often overcome these problems by the size of downpayment.

However fixing your score is where I recommend you look first. Our FICO Dr. tool actually looks at your mortgage score and provides you various solutions that can immediatley raise your score. CLICK HERE: The same tool is available to most loan officers that have already pulled your report. If that is the case you should have them help you. Any questions - email larry@mortgagesundressed.com

Dan Green reporting. click here

They say Washington State has over 10,000 loan officers. My hunch, my educated hunch is that 8,000 are struggling financially. When the loan officer is having a low income period the tendency is to make a killing on one loan.

Also, some, greedy little devils are out to take as much from your transaction as possible as just a mere course of life.

The lending business is so complicated that you may find it difficult to catch all of the ways you get hurt and the loan officer gets a fat paycheck thanks to your naiivity.

(I inject here, that a very recent real life situation brings this article to press.)

I also ask you - do you think that $15,000 on one $300,000 transaction is a bit over the top in fees you pay the mortgage company for a loan? If you say no to this you are not to whom we right this blog. You say you would never allow that kind of expenses for a loan, say a refi. Of course you wouldn’t if you understood it was happening. But the cowards I have worked with, employed and fired, or competed against, do this under a cloak, as if they were in your bank account and you were unaware.

A competitor this week got to a dear friend. I was supposed to advize them and make sure he or I had the best program for them. I got an email, not a shot.
In one short email I felt sad for my dear friend. These people have good credit. They have enough income to qualify for a conforming (low rate) loan.

This tells me they got ripped off. “We only have a 3 year prepayment penalty.” We get to take cash out for an investment we could not have made, and that’s above the price to get the loan.”

Their ain’t no prepayment penalties in good credit. These good people got sold a subprime loan. The coward is going to make his money in rebates.

Fortunatly the subprime lenders are in a tail spin. Unfortunatley the greedy little snakes are finding unsuspecting folks that deserve conventional loans, and giving them a song and a dance, some money back, and a subprime loan.

It is disgusting. It is also one of the reasons for this blog.

I know it is more fun to look on line at homes than to learn about the mortgage tricks. It is certainly easier to tell the difference between a 4 bedroom home than a three than to know to look for an ARM Margin or if it is an ARM at all.

I try to make these mortgage and real estate blogs a bit zaney. I am a zaney kind of guy when feeling my oats. I try to make them quick and easy reads. I inject things you need to know a little at a time. This is probably one of my longer articles. I do things this way in hopes more than the 100 mostly professionals that drop by will become many more, and many that are consumers.

I guarantee regular visits will eventually get you educated enough to know what to watch out for. What I can’t guarantee is if you will be mature enough to not jump for a smooth sales pitch, or too busy to not read what you sign, or too committed to see a problem and sign anyway. If we prepare, you prepare, before it is too late, you might save 10 grand or so and a lot of headaches.

To add to the services for you, I not only write from my experiences, I search for other great writings. Thus came about the magnificent 7. I calculate that in February I read 4000 articles looking for 7 I could nominate for the 7 Magnificent in 2007. It was hard to do that few, so I am putting up nine for your review. Some are on lending some on real estate. This month they are posted on realestateundressed.com.

Shawn Portmann: Vice President - Bank Home Loans

Puyallup Wa. My favorite lender is Shawn Portmann…. Dennis Endres
To contact Shawn call 253-286-5363 or his cell:253-208-7817

Email Shawn at: shawnp@pcbank.us

You may call me for a reference on Shawn from an experienced Real Estate Agent call Dennis Endres at: Office: (253) 683-3100 €¢ Cell: (253) 226-9692
Toll Free: (1-877) 211-5973 €¢ Fax: (253) 881-4289

Shawn can serve all of your mortgage needs.

For PC Bank Website, Click Here. Thank You Shawn Portmann

Product changes - effective immediately.

As you are aware, the non-prime market continues to be in a
state of flux due to economic conditions, credit concerns and
loan performance. As such, the requirements from investors and
regulators are changing rapidly, affecting both the industry and
even consumers.

At New Century our commitment to you remains. We will be here
for you in this market and in the future, and will continue to
work hard to help you navigate through this tough year of
transition.

We are committed to taking a proactive and responsible approach
as the industry works through these changes. On that note, we
met with our Wall Street investors, regulators and other
agencies that provide liquidity to the market to gain the
necessary insight to develop the product set to meet the future
demands of the market. These meetings, combined with current
market trends, have caused us to adapt our current product menu.

Due to the lack of investor demand for high LTV/CLTV non-prime
products, New Century will no longer offer non-prime niche combo
and 100% one loan products.

We appreciate your business and look forward to providing you
with excellent service for all of your traditional non-prime and
Alt-A product needs. Further, we remain committed to being here
for you and bringing you the products and services you need to
compete in this market and be stronger in 2008.

Look to the following products to help drive your business:

- 40 and 50 year loan products

- LTV up to 95% for full, limited and stated

- Jumbo loans up to $2M

In addition, please check out our current pricing specials on
www.newcentury.com.

Any impacted loans submitted to a New Century production center
after March 2, including those registered in Fastqual, will be
subject to the new guidelines.

All loans subject to underwriting approval, including credit and
property valuation. Not all borrowers will qualify. For some
loans, minimum loan amount is $50,000. Loans and specific
programs not available in all states. Terms and programs subject
to change without notice.

New Century Mortgage Corporation

Shawn Portmann: Vice President - Bank Home Loans

Puyallup Wa. My favorite lender is Shawn Portman…. Dennis Endres
To contact Shawn call 253-286-5363 or his cell:253-208-7817

Email Robert at: shawnp@pcbank.us

You may call me for a reference on Shawn from an experienced Real Estate Agent call Dennis Endres at: Office: (253) 683-3100 €¢ Cell: (253) 226-9692
Toll Free: (1-877) 211-5973 €¢ Fax: (253) 881-4289

Shawn can serve all of your mortgage needs.

For PC Bank Website, Click Here. Thank You Shawn Portman

FREMONT FOR EXAMPLE: Click Here where Calculated Risk Blog lists what Fremont is agreeing to comply to.

A few days ago I wrote an article stating, “If You Were Approved Yesterday You May Not Be Today”. It wasn’t just an attempt to be funny. While on the phone this afternoon with a colleague they had a transaction crash and burn because a lender backed out. The closing was extended for financing reasons, the closing won’t happen at all. The buyers were using 100% financing to make the purchase. The lenders on most 80 - 20 (2 loans) are pulling back.

The sellers have moved out of state, the utilities turned off, the closing was to be today. My colleage, the listing agent was not aware the problem was serious until it was dead.

My daughter just saved a deal with a similar problem. Deals are falling apart all over the place.

If the source of funding dries up, it dries up.

If you are a buyer or a seller, you better make sure your transaction isn’t the next casualty.

At other times it is the conversation that takes place with the people you come across, the people in your computer.

Sometimes it is coming up with good content.

It causes some to quit and some to wear out.

The truth of it is, it is fun and can open the consumer to a world of insights. I think blogging is the single most important resume that is available.

So, first of all, warn your teenagers bad blogging could lead to tough sledding in the job market.

Second of all, when you find a blogger all worn out and lying on the street, just throw a little water on him, he is addicted but will be fine. Larry Cragun