The Mortgage Cicerone - The Loan Attraction Coach

Radio Mortgage Interview with Tony Gallegos About FHA and VA Lending

On Thursday, October 1, 2009, Radio Mortgage host Brian Brady, interviewed me (Tony Gallegos) about the general state of FHA and VA lending.

Below are a few topics we discussed:

• FHA and VA lending volume surging
• Lack of FHA/VA expertise with lenders
• Why  the FHA isn’t really going broke...what the media did not report
• Realtor and builder misconceptions
• Why lenders are implementing credit overlays
• The new players in FHA and VA
• Why VA default rates are lower than Conforming/Prime products
• FHA/VA market share approaching 40%
• The REO market - 10.3% of REO purchases utilize VA financing
• VA market details in San Diego
• Plus, much more...

Click link below to listen to information packed interview.

To learn more about Cognicorp FHA/VA Training and Consultative Solutions:

<CLICK HERE>.

Critical $8000 First Time Home Buyer Tax Credit Deadlines

The government’s First-Time Home Buyer Tax Credit program expires November 30, 2009 — a scant 60 days from today.

In this video, Chris Brown provides critical milestone dates originators, Realtors and homebuyers must be aware of if they plan on taking advantage of the Federal $8000 First Time Home Buyer Tax Credit set to expire November 30, 2009. Knowing when it expires and that it is for $8000, isn't enough, yet that is what 99% of the videos tell you about.

Here is what you NEED to know and the DATES to focus on!

Are You "Bitching " About or "Embracing" Change?

OK, we got it, HVCC sucks!

 

Guess what, it is here to stay for a awhile.

 

You may not like it, but it's a reality.

 

Don't be like every other originator and Realtor blogging and spouting off about the EVILS of HVCC? The reason lies in that on a whole the general public thinks HVCC is about consumer protection and when they hear you are against it, they believe you are against them That's right, they perceive you as the typical greedy self-absorbed real estate or mortgage professional the media and self-serving politicians have warned about.

 

OK, I'll be the first one to admit you have valid points about HVCC and are most likely NOT greedy and ARE looking out for your clients; but you have heard the phrase:

 

PERCEPTION IS REALITY!!!

 

Be Part of The Solution...Join The "Mortgage Revolution"

A New Post By The Mortgage Cicerone.
A Guide for Mortgage Professionals.
Read other posts by The Mortgage Cicerone.

Mortgage professionals must take back our industry!

That's exactly what the "Super Bowl" mortgage industry event of 2009 will provide.

The mastermind behind this not-for-profit event is Mark Green from Top-of-Mind. He along with thirteen other like minded individuals are driven to put consumers first while providing ethical mortgage professionals the tools and processes they need to enjoy a thriving and first class career.

Within a week, the Mortgage Revolution committee will be posting our website (courtesy of Trace Richardson) outlining the speakers and topics being presented during the three day event taking November 9 through 11 at the Cobb Galleria in Atlanta, Georgia.

Wait till you see the speakers and topics they'll be presenting!

Interested?

Want to help the cause and take up your modern day arms to fight back? Please visit Chris Brown’s Recruitment office to type in your John Hancock.

In the meantime, watch this awesome Mortgage Revolution video produced by Brian Larrabee.

 

I Just Fired a Client...Happy New Year!

A New Post by Rhonda Porter
Mortgage Broker/Correspondent Lender.
Read other posts by Rhonda Porter

This market is creating a great opportunity for mortgage originators with record low rates (if the media would just quit talking about 4.5%).  This morning I received this email from a homeowner that I've been providing rate quotes (Good Faith Estimates) to:

"Can you lock me when rates hit 4.375%. One note: I am also working with another mortgage broker. I'm planning to go with whoever locks me in the rate first."

Here's my response: 

"I don't do "double applications" or locks.  I do appreciate your honesty and being upfront with me.  However, lenders are relying on loan originators to follow through with lock commitments.  If I and the other originator both locked at the same time, then one of us would "burn" an investor.  I do not encourage nor will I participate in this kind of "strategy".

I commit my time to clients who are in turn committed to working with me.

Good luck with your refinance.  Please let me know if you have any questions."

It may be tempting to just tell the consumer "Thanks!  I'll lock you in the moment rates hit X%".  But what are we doing to our industry?  Banks do depend on lenders honoring our lock commitments...you don't need me to lecture you about that. 

I do hope during 2009, we originators who have survived 2008, elevate ourselves to not be so "dog eat dog".   Let's educate consumers that we do not operate like mortgage-whores or the advertisements on the boob tube saying that four lenders will drool all over them to offer the "best deal". 

Refuse to do "double applications" and "double locks". 

And have a Happy New Year! 

Who's To Blame For The Financial Meltdown?

A New Post By The Mortgage Cicerone
A Guide for Mortgage Professionals
Read other posts by The Mortgage Cicerone

Hint: Neither political parties, regulatory agencies, financial institutions nor consumers are innocent. When any of the above start pointing fingers, one should remember they have three pointing back at themselves.

Read this article by Ben Steverman and David Bogoslaw, because the:

"Whole System Is At Fault"

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Dealing With The Economic Seasons Every Generation Experiences

A New Post By The Mortgage Cicerone
A Guide for Mortgage Professionals
Read other posts by The Mortgage Cicerone

Admittedly, I not a huge Tony Robbins fan, however at times he provides great advice. Saw this video today and wanted to share.

" We are going to become emotionally fit, because we have to."

                                           ~ Tony Robbins~

Cicerone Tyler Osby TV Interview

Fellow Cicerone Tyler Osby was recently interviewed by Channel 8 KCCI in Des Moines (his home town), concerning "How Will The Mortgage Bailout Impact Iowa?" It is always great to see our Cicerones recognized for their expertise!

Congratulations Tyler!

 

I Hope WAMU Isn't Signaling The End

A New Post By Mike Mueller
The Mortgage Vlogger Extraordinaries
Read other posts by Mike Mueller

I shared via FriendFeed, an article that I read in my Feed Reader

Washington Mutual is offering a 1 year CD that is paying a full 1% higher than anyone else. 

Why is that?  Are they just trying to be nice?  Are they "giving back to the community?" Have they made enough money this year? 

You know I'm kidding of course.  the most likely answer is that they are strapped for cash (capital) and need to raise some serious dollars.

To be honest, that's a guess on my part.

We so know however that Wamu has a very large lending exposure in both California and Florida.  Both of these states have experienced some of the highest yearly declines in value.  We know that's not a good thing.

We also know that Wamu has a high percentage of Alt-A and Option ARM loans on their books.  And we know that most experts agree, this is the next wave of borrowers to default. 

A homeowner that stops paying their mortgage becomes a "Non-Performing Asset". 

Here's what concerns me the most.

Prior to their collapse, many banks (Indymac would be a prime example) offered high yielding CD's in a last ditch effort to raise capital. 

I just hope I'm wrong.  We need more lenders not fewer.  What do you think?

FHA Mortgage Reform - Is Lowering The Bar For FHA Mortgage Broker Approval A Good Thing?

Since the original House of Representatives version of the FHA Modernization Act passed way back in September 2007, one element of that bill has caused me more than a little bit of concern. The House of Representatives' version of the FHA Modernization bill makes it possible for a mortgage broker who is not presently able to meet the requirements for FHA lender approval to use a bond to qualify instead of meeting the traditional audited net worth requirements.

The purpose of this change is to make the FHA loan program available to more borrowers. I am all in favor of that.

I was waiting for the Senate version to pass before I gave the issue much more thought. The Senate version fails to address this provision at all. However, according to insider reports there is no opposition to that provision in the Senate and it will likely be included in the final reconciliation of the bill.

I sincerely want the FHA opportunity to reach as many borrowers as possible. However, I am just as sincerely worried about the risk involved in letting the same group of money hungry animals that lead us into the subprime mortgage abyss get their paws into the FHA cookie jar. Some of the subprime mortgage programs in trouble now started out as real benefits to borrowers who needed help and deserved to own a home, but couldn't yet qualify for FHA. However, subprime lending rapidly degenerated into a free for all of fraud and constantly easier guidelines devoid of common sense. Many among the group of mortgage brokers so hungry to get into FHA lending now were leading that charge.

On the other side, I know many fine, upstanding, honest and professional mortgage brokers who don't yet have the required net worth and can't afford to pay astronomical fees for CPA audited financial statements needed to meet FHA lender approval requirements. The reasons for that run from lack of business caused by excessive honesty to ordinary prudence in not wanting to tie up substantial personal assets in a risky business like originating mortgages. Nonetheless, many of this group would make excellent additions to the FHA lending ranks.

All I can do at this point is wait to see how the final reconciled bill will turn out and in the meantime encourage everyone who is serious about FHA lending to make sure they get all the education on the subject they can find.

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Reproduced with permission from Carl Pruitt. To visit Carl Pruitt's website, go to http://fhaloanadvice.com/index.php/about/  Copyright 2007 Carl Pruitt. All rights reserved worldwide.

Carl Pruitt is a 22 year veteran of the mortgage/real estate businesses who specializes in using FHA loans to get low fixed rate mortgages for borrowers who have had credit problems. He also coaches other loan officers on the best methods marketing, packaging and processing FHA loans.