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Mortgage and Lending with Premiere Mortgage Services Inc. MLO 18693

Premiere Mortgage Services Inc. - Dana Bain

The banks and Lenders that "prey" together, stay together!! February 14th, 2009 5:31 PM

A message from NAMB President Marc S. Savitt, CRMS to Barack Obama, President of the United States

 

The banks and Lenders that "prey" together, stay together!!!

Dear Mr. President:

I represent tens of thousands of small business mortgage professionals who are being forced out of business by some of the nation's largest national banks, lenders and mortgage insurance companies.

As you are well aware, this country is experiencing the worst financial crisis since the Great Depression. While your Administration and Congress search to find a solution to our economic troubles, others are conducting a campaign of blame, with the goal of eliminating competition and controlling all aspects of mortgage financing.

From the very moment mainstream media first used the words "mortgage meltdown," mortgage brokers were labeled as the group that inflicted the predatory practices that gave rise to record foreclosures. As a result, mortgage brokers have been subjected to intense scrutiny and consequently overregulation. Moreover, some of our former wholesale lenders and private mortgage insurance outlets have cut off our source of funds to operate, all under the guise of consumer protection. Make no mistake about it; this campaign to eliminate our profession has absolutely nothing to do with consumer protection. It's all about market share!

Let's examine the facts. Brokers have been blamed for putting consumers into predatory loan programs. False! Mortgage brokers never developed one single loan product or program. However, some lenders and banks did, aided by Fannie Mae, Freddie Mac and Wall Street. These same institutions set the guidelines for such programs, without any broker input. Most importantly, mortgage brokers did not underwrite or approve any of these loans. The responsibility for approving loans was that of the banks and lenders. If we didn't develop the programs, set the guidelines or approve loans, how could this be our fault?

Another favorite target of the media is the "Yield Spread Premium" (YSP). This form of legal and legitimate industry compensation has been labeled a kickback and a bribe. YSP has been vilified when it should be praised for helping homeowners. For example, most consumers today seek financing without "points." YSP allows them to finance all or part of their origination costs. This practice has existed for years and is used by many State Housing Agencies, as well as by banks, lenders, credit unions and others who call it a "Service Release Premium" (SRP). It's the exact same type of compensation, other than having a different name. The only difference between a broker's YSP and a lender's SRP is that brokers fully disclose this compensation to consumers. Besides not having the same disclosure requirement as brokers, lenders have often denied receiving this payment.

The media has often depicted YSP as a fee brokers receive for increasing a consumer's interest rate. The truth is consumers are always given a choice with rates and points. They may elect to pay a discount point(s) and receive a lower rate, or pay no points and finance their origination costs by a slightly higher interest rate. Most consumers choose the latter.

In this climate of full disclosure and transparency, Congress should replace the terms YSP and SRP with "indirect compensation" and require all originators to disclose this compensation to consumers. Brokers have been disclosing every dime of compensation for the past 17 years. It's time for lenders and banks to do the same and level the playing field for consumers.

It has also been reported that brokers are unregulated. Once again, false! Brokers are regulated in every state. Furthermore, we supported passage of the SAFE Act as contained in the Housing Economic Recovery Act (HR 3221) in July 2008. This Act establishes uniform federal licensing standards for mortgage originators and a national registry of originators. The National Association of Mortgage Brokers first proposed these standards in 2001. Unlike brokers, loan officers that originate for banks and lenders are unregulated. It's time to regulate bank employees too.

The final push to eliminate competition and control the entire housing market is now underway. Lenders and banks are exiting wholesale lending; claiming brokered loans perform worse than their retail branches. Again, who developed the programs, set the guidelines and APPROVED every loan?

Mortgage insurance (MI) companies are now joining the banks and lenders. Some have completely cut off brokers, while others have set different guidelines for banks and brokers. The reason is simple: Banks and lenders call the shots. For years, some banks and lenders have intimidated mortgage insurance companies to insure loans they knew would eventually have a high default rate. The MI companies had a choice: insure the loans or risk being cut off.

Until approximately ten years ago, brokers and other originators would submit loans for underwriting (approval), to both a wholesale lender and a mortgage insurance company. This long established practice gave every file with less than a 20 percent downpayment a second set of eyes. Having two underwriters independently examine every submission for approval protected both consumers and industry. In my opinion, this practice was eliminated out of greed. Some banks and lenders saw an opportunity to increase their profits at the expense of quality control. Some banks and lenders made "deals" with mortgage insurance companies. The agreements called for the lenders to take control of underwriting. Once a lender approved a file, that file was also considered approved with an MI company. The second part of the deal consisted of a kickback. Since lenders and banks were in control of who ordered the private mortgage insurance, they could steer business and demand a percentage of the consumer's premium. These kickbacks averaged 25 percent of the premiums. They were also never disclosed to the consumer.

This type of lender control is also taking place with appraisals. Lenders have established their own Appraisal Management Companies (AMCs), which allow them to have complete authority over all aspects of the "independent" appraisal process.

It's important to note that not all banks and lenders have engaged in these practices. Many are honest and reputable institutions. However, the fact remains that many are preying on the consumer and small business.

Mr. President, if the actions outlined in this letter are permitted to continue, the costs of mortgage financing will increase as a result of less competition. State shortfalls will increase, as well. Furthermore, the country will see a continuation of sharp and prolonged unemployment and foreclosures, due to the elimination of our profession.

Every day, more and more small business brokers and their support staff are going out of business. We urgently require your guidance and support. I would appreciate meeting with you as soon as possible to discuss this ongoing tragedy and means by which improvements can be made.

Respectfully,

Marc S. Savitt, CRMS President
National Association of Mortgage Brokers

 



 


Posted by Dana Bain on February 14th, 2009 5:31 PMPost a Comment (0)
Subscribe to this blog From Fannie and Freddie, Here Come the Fee Increases --Counterproductive & will cost he consumer$$$$$$$ February 13th, 2009 10:07 PM

From Fannie and Freddie, Here Come the Fee Increases

 

 

Saturday, February 14, 2009

It may not be what home buyers, sellers and refinancers want to hear, but they need to know: Fannie Mae and Freddie Mac are ratcheting up their mandatory fees and toughening credit score and down-payment rules as of April 1.

Most major lenders already are pricing in these higher fees, effectively raising costs to borrowers immediately and reducing the impact of housing stimulus efforts from Congress and the Obama administration.

Under Fannie's and Freddie's new guidelines, even applicants who assumed that their FICO credit scores would get them favorable rates will be charged more unless they can come up with down payments of 30 percent or more. For example, a buyer with a 699 FICO score who brings a sizable down payment of about 25 percent to the table will be hit with a 1.5 percent "delivery" fee at closing under the new guidelines.

A buyer with a FICO score between 700 and 720 will pay an extra three-quarters of a point. Even someone with a 739 FICO -- once considered a platinum guarantee of the best rates available -- will get dinged with a quarter-point add-on.

Condominium buyers who cannot come up with a 25 percent down payment will be hit with a three-quarter point add-on penalty, no matter how high their credit score -- simply because they are not purchasing a traditional detached, stand-alone house.

Buyers of duplexes, where one unit is owner-occupied and the other is rented, will be charged a flat 1 percent add-on from Fannie, even if they have FICOs above 800 and make 50 percent down payments. Refinancers who take cash out at settlement also will be forced to pay extra -- as much as three points if they have low credit scores and modest equity stakes.

 

Both Fannie Mae and Freddie Mac say they are tacking on these extra fees to counter higher risks and losses associated with certain loan products, buyer equity stakes and credit scores. Declining home values in many parts of the country are intensifying losses for both companies when loans go to foreclosure.

Although they were quasi-private enterprises until September, Fannie and Freddie now are operating under federal control and are bleeding billions of dollars of red ink. Freddie spokesman Brad German said that some of the loan categories and credit risk combinations targeted in the latest round of fees "default at four to eight times" the rate of other mortgages in the company's portfolio. "We have to manage these risks appropriately," he added, and that means pricing them based on the probability of higher losses.

However, real estate agents, mortgage bankers and brokers are incensed at the new round of fee increases, calling them counterproductive in an environment in which housing needs help, not new impediments. They have begun lobbying Congress and the two companies' federal overseers to scrap the latest add-ons.

Charles McMillan, president of the National Association of Realtors, complained in a letter to the Federal Housing Finance Agency, the regulator of Fannie and Freddie, that the individual fee increases weren't justified, and that in combination they could seriously deter home purchases. He said, "A borrower with a credit score of 670 making a 20 percent down payment for a condominium would have the fee raised from 150 basis points (1.5 percent) to 350 basis points (3.5 percent) -- more than double" under Fannie Mae's new schedule.

"They're shooting themselves in the foot," said Steve Stamets, a mortgage loan officer in Rockville. With substantial down payments of 20 percent and more, Stamets said, "they don't need to be that tough," even if home prices decline slightly more before the cycle ends.

"When consumers with 720 credit scores are being adjusted, there is something seriously wrong with the system," said Harry H. Dinham, a Dallas mortgage company owner and former president of the National Association of Mortgage Brokers.

As recently as two years ago, FICO scores in the upper 600s were enough to qualify any applicant for prime financing. Now scores of 720 to 740 are the bare minimum if you're going to escape add-on fees -- and still not good enough if you choose to buy a condo or a duplex.

Where is all this headed? Without congressional intervention or new marching orders from the companies' regulator, the add-on fees are here to stay.

But there's an alternative available for just about anyone who wants to avoid the fees: Federal Housing Administration mortgages, where down payments go as low as 3.5 percent and credit scores are not an issue for most applicants.

http://www.washingtonpost.com/wp-dyn/content/article/2009/02/12/AR2009021204259.html?nav=rss_business%2Findustries

 


Posted by Dana Bain on February 13th, 2009 10:07 PMPost a Comment (0)
Subscribe to this blog Consumers & Colleagues -- IMMEDIATE ACTION REQUIRED! February 13th, 2009 7:43 PM

IMMEDIATE ACTION REQUIRED!

TO: All Industry Professionals

 

CALL TO ACTION #1: STOP GSE ADVERSE MARKET FEES!

 

Contact your Congressional Representative, U.S. Senator and the White House in opposition to Fannie Mae and Freddie Mac's charging of unnecessary and excessive fees. Everyone, including small business mortgage professionals, support staff and loan officers, should call their Congressional offices in Washington, as well as state and district offices.

 

PLEASE Urge others to join in this action as well!

 

Fannie Mae and Freddie Mac are charging unnecessary and excessive adverse market fees in certain areas of the country. In addition, these federal government agencies are also charging additional risk-based pricing fees, which are freezing the mortgage market and preventing much-needed recovery. These fees negatively impact small business mortgage professionals and their consumers by increasing the overall costs of most loans. For example, fees are charged for certain credit scores that traditionally signify a good credit risk. Another barrier created by the GSEs to a housing recovery are higher fees for investor-owned properties. The GSEs should encourage investor purchases, not punish them for helping to remove non-performing loans from the balance sheets of banks and lenders. In addition, the GSE's are limiting how many properties they will finance for an investor. Such an arbitrary calculation is not justified and each mortgage should be addressed on its merits.

Please contact your Senators, Representatives and the White House by phone and e-mail and tell them to take action against existing pricing adjustments and future increases.

Click here to take action today! Take Action!

Talking Points & Other Reference Material:

 

Fannie Mae Announcement

  • Consumers will ultimately bear the burden of these increased fees.
  • Many first time buyers are excluded from home ownership, as these GSE fees make purchasing unaffordable.
  • Homeowners with existing mortgages are prevented from refinancing into more affordable fixed rate loans.
  • The GSEs did not provide adequate justification for these increases.
  • How were the "representative credit scores" determined?
  • How did the GSE's determine the Loan-Level Price Adjustment Matrix (LLPA) used to calculate these increased fees?
  • The increase in fees inhibits mortgage affordability, contradicting the core mission of both FNMA and FHLMC.
  • 100% loans were approved through the automated underwriting engines of both Fannie Mae & Freddie Mac with debt-to-income ratios as high as 65% based on gross monthly income before taxes. Credit scores in the mid-500 range were also in the equation. These loans were then granted final loan approval by the mortgage lenders' underwriters (not brokers) and then sold in the secondary market.
  • The existing obstacles hindering housing market stimulation compound the fees charged by the GSEs. These include the GSEs not purchasing bond loans, lack of sufficient first time homebuyer programs, no 100% loans available to well qualified buyers, investor loans that are priced our of reach, and no jumbo loans available with favorable terms (no 30 year fixed rate products).

Closing Cost Before & After Chart

 

 

 

 

CALL TO ACTION #2: HVCC AGREEMENT!

On December 23, 2008, the New York Attorney General Andrew Cuomo, GSEs Fannie Mae and Freddie Mac, and their regulator the Federal Housing Finance Agency (FHFA) released a revised Home Valuation Code of Conduct (HVCC), part of their Appraisal Agreement first issued on March 3, 2008. The HVCC will be in effect May 1, 2009.

 

Should the HVCC take effect, lenders will no longer accept any appraisal report completed by an appraiser selected, retained, or compensated in any manner by any third party including mortgage brokers.

 

To view NAMB's press release and statement on the revised HVCC and Appraisal Agreement, please click here.

This Agreement will shift mortgage business primarily, if not exclusively, to banks and severely limit competition. The HVCC severely threatens small businesses and your profession nationwide by preventing mortgage brokers from participating in the independent appraiser process. It is critical for mortgage brokers to maintain an appropriate level of contact with appraisers to ensure appraisal quality and independence.

 

This is a "Hidden TARP" strategy to inject capital into banks on the backs of consumers and small business. The HVCC and other actions by Federal regulators and agencies are positioned to force consumers to utilize Federally-chartered entities in order to increase their profitability. We need to join forces to fight for the consumers and small businesses across

The time is NOW to fight this threat. NAMB urges you to prevent the HVCC from taking effect by making a donation towards this fight to ensure your industry's survival. With this support, NAMB will be taking legal and legislative action.

Make a donation today to protect your profession!

Help NAMB gain support!

Please find attached two messages for appraisers and real estate agents for you to pass on and continue gaining support for the fight!

 

Save Your Business - Real Estate Agents

Save Your Business - Appraisers

 

Contact your Congressional Representative, U.S. Senator and the White House in opposition to the HVCC as well. Everyone, including small business mortgage professionals, support staff and loan officers, should call their Congressional offices in Washington, as well as state and district offices.

 

Let Congress know who they are hurting in the HVCC, THE CONSUMER; their constituents!!!

 

They need to understand the ramifications of the tens of thousands of homeowners who will not be able to refinance because the appraiser will fear being removed from a AMC list because they are not conservative enough on their valuations?

 

This will hurt the American consumer and the economy! We MUST prosecute those that commit appraisal fraud in this country and stop placing the burdens of the lack of enforcement of the current laws on the consumer. The consumer should not have to pay for the quick fixes that some come up with, or in this case, a deal that is cut from the NY attorney general's office with the GSE's!

 

THE CONSUMERS ARE GOING TO PAY THE ULTIMATE PRICE! Please share any cases you have as a result of the HVCC where the consumer pays a higher price, delays occur in the underwriting process, rate locks are blown, etc. by sending me an email to: dleonard@massmort.org and put HVCC Example in the subject line. We are compiling these scenarios to utilize in our lobbying efforts and to submit to our attorneys as well.

 

Sincerely,

Denise M. Leonard

Executive Director

Massachusetts Mortgage Association

607 North Avenue, Building 14/2, Wakefield, MA 01880

Phone: 781-246-0601; Fax: 781-246-2625

dleonard@massmort.org

 



Posted by Dana Bain on February 13th, 2009 7:43 PMPost a Comment (0)
Subscribe to this blog Some Lenders drop mortgage brokers- That may be bad news for consumers because fewer brokers could lead to a less competitive marketplace and more expensive home loans resulting from consumers not being able to easily comparison-shop rates. February 13th, 2009 2:06 AM

Lenders drop mortgage brokers

Some big banks are cutting out mortgage brokers and having lending generated by their own people. That could be bad for consumers.

By Les Christie, CNNMoney.com staff writer February 12, 2009: 6:16 AM ET

NEW YORK (CNNMoney.com) -- Some big banks have cut back on doing business with mortgage brokers - and if the trend continues, many mortgage brokers could close down.

That may be bad news for consumers because fewer brokers could lead to a less competitive marketplace and more expensive home loans resulting from consumers not being able to easily comparison-shop rates.

"The banks want to get rid of mortgage professionals to reduce competition," said Alan Rosenbaum, founder of GuardHill Financial, a New York City-based brokerage firm. "It's not good for consumers."

A few years ago, according to Rosenbaum, mortgage brokers were responsible for 80% of the mortgage-lending business in America. He said that's probably under 70% now and dropping.

The actions of two big banks have helped push that percentage down.

JP Morgan Chase (JPM, Fortune 500) announced in January that it would end its so-called wholesale operations. It will no longer fund loans arranged through brokers, instead it will make loans mostly through its own offices. And Citigroup (C, Fortune 500) said it will cut back the number of mortgage brokers it works with to 1,000 from 10,000.

"Our customers are best served when a mortgage officer works directly with them, explains our products clearly and then helps them carefully evaluate the choices in light of their personal financial situation," according to an internal Chase memo.

However, brokers say they perform a needed consumer service by monitoring offers from an array of lenders, picking and choosing the best deals. That helps keep rates low because lenders have to make their terms attractive to keep their volume flowing.

Borrowers going into a Chase branch for a mortgage loan would, on the other hand, only receive the terms available through Chase. If brokers disappeared, borrowers would have to shop all the individual banks to compare deals.

Marc Savitt, president of the National Association of Mortgage Brokers, suspects that banks like Chase may think they can increase profits by cutting out the middlemen, but the added costs of bricks-and-mortar operations will ultimately make the business less efficient. Loan officers may find themselves sitting around waiting for customers to come in rather than fielding applications from mortgage brokers.

Chase opened a slew of new branches lately, including 2,200 as part of the Washington Mutual acquisition it made this past fall.

"Five years ago, we had 600 branches, now we have 5,000," said Thomas Kelly, a Chase spokesman.

Despite Chase and Citigroup's actions, John Courson, president of the Mortgage Bankers Association, does not think all mortgage brokers will be driven from the business.

"Every lender has its own business model," he said. "Chase made a decision to only lend through its personnel, [but other large lenders] will still need loan production. Mortgage brokers will continue to be an important part of the mortgage channel."

Chasing higher profits

Chase took the step of discontinuing its wholesale lending for two main reasons, according to Kelly. For one, "The best people to originate the loans, we believe, are those working in our bank branches," he said. Secondly, Chase determined that loans originated by brokers defaulted at higher rates than did bank-originated loans.

The brokers scoff at that. "Mortgage brokers don't develop their own products, their own guidelines and parameters," said Savitt. "They take applications; Chase makes all the decisions."

"Mortgage brokers have been blamed for everything from tooth decay to global warming, and it's bologna," added Allen Hardester, a Maryland-based broker.

He pointed out that no mortgage broker ever underwrites a loan, creates a loan program or approves an application. Lenders always have the final say.

And, if the loans from brokers did perform poorly, it's because lenders encouraged, nay prodded, brokers into bringing them more and more poor-quality customers during the boom years. Subprime mortgages were very profitable, before they started to default at higher and higher rates.

"The lenders dangled large carrots in front of brokers," said Rosenbaum. "They told me, 'Unless you give us more subprime business, I can't improve your pricing for your good customers.'"

Now, he hardly deals with big banks at all. "We haven't done much business with them for more than a year. Banks are throwing the baby out with the bath water. They don't know the good mortgage brokers from the bad."

So far, the other big banks, Wells Fargo (WFC, Fortune 500) and Bank of America (BAC, Fortune 500), have not followed Chase and Citi's leads. "[These] lenders may be looking at this as an opportunity," Savitt said. "They said they were committed to the broker channel and would expand it," he said.

If that's true, it shouldn't affect the market too much even if two big-hitters drop out.

"It will remain a competitive environment," said Courson.

Plus, he said, the there will be a flight to quality. "I think even for banks that continue to take mortgage broker-originated loans, there will be much higher standards."

That includes requiring brokers to show greater stability by demonstrating higher net worth and posting higher surety bonds (a kind of performance guarantee). To top of page


Posted by Dana Bain on February 13th, 2009 2:06 AMPost a Comment (0)
Subscribe to this blog CNBC probes financial crisis in "House of Cards" February 12th, 2009 11:05 PM

Did you watch this evenings show on CNBC House of Cards? Excellent show!! It showed the facts that the problem was at the top Wall Street then The Banks & Mortgage Bankers however --the Mortgage Broker is being pointed at as the scapegoat and the Bank's want a monopoly to shut down the Mortgage Broker.

 

 

 

 

Small firms and small business is what runs this country and competition keep's everyone honest and most importantly protects the American consumer.

 

Mortgage Brokers have consistently originated over 50% of all Mortgages.  Why because the cost is much more competitive than the Mortgage Bankers period..

The "Friday the 13th" franchise has nothing on "House of Cards," a chilling CNBC documentary detailing the Wall Street-fueled events that made the current global economic collapse an unavoidable calamity.

At once infuriating and wise, "House of Cards" uses a balanced, clear-eyed approach to chronicle a tale of greed and deception unprecedented in American history. Thursday evening's two-hour broadcast deftly unfurls the chronology as a ticking time bomb replete with bait-and-switch villains and stoked by pure blind denial.

CNBC correspondent David Faber has gathered an impressive collection of those who participated in and provoked the financial nosedive, several of whom clearly are purging their own demons in agreeing to go on camera. It makes for some unusually raw television that's more bracing than any 10 so-called reality shows.

As Faber spells it out, the crisis seems in hindsight to have been glaringly preordained, casting the subprime mortgage lenders as the snake-oil salesmen of the 21st century. They agreed to loans for those with credit ratings below 500 points, asking for no documents and fraudulently filing papers that listed incomes three and four times higher than reality.

Faber pins down former Federal Reserve Chairman Alan Greenspan, who has been accused of setting the table for the collapse with his persistent reductions in the prime rate. His apology is leavened here by his assertion that this was a once-in-a-century situation no one could see coming -- and that not even he understood some of the shenanigans being carried out in the financial markets.


Posted by Dana Bain on February 12th, 2009 11:05 PMPost a Comment (1)
Subscribe to this blog Protecting The Mortgage Broker Will Protect Competition & Ultimately The Consumer. The Big Banks Such As B - A and such are trying to create a MONOPOLY. Write Your Representative Today to Protect The Mortgage Broker and Your Wallet from a Monopoly like B-A etc... February 12th, 2009 9:25 PM

 

 

 

Some big banks have cut back on doing business with mortgage brokers - and if the trend continues, many mortgage brokers could close down.

That may be bad news for consumers because fewer brokers could lead to a less competitive marketplace and more expensive home loans resulting from consumers not being able to easily comparison-shop rates.

"The banks want to get rid of mortgage professionals to reduce competition," said Alan Rosenbaum, founder of GuardHill Financial, a New York City-based brokerage firm. "It's not good for consumers."

Their will always be a need for mortgage brokers regardless how dim the market become. Due to the current status of the economy, this has been a reality check for many borrowers in america. Borrowers are now more savvy, inquisitive, and determined to get the best deal. Many borrowers are becoming aware of the specific duties of a mortgage broker. Brokers have lower overhead expenses than most direct lenders (banks) and relationships with hundreds of private lenders with numerous of loan programs for a borrower to fit. This is where the broker come to surface. Direct lenders are limited to program options and have very strict underwriting guidelines for loan approval, due to the fear of a bad decision. Their are hundreds of wholesale private lenders and private investors with low overhead and seeking broker assistance to capitalize on the average to below average credit market. What the broker must do is inform the public, advertise their specific services in comparison to a direct lender. Their are tons of borrowers prepared to listen, learn and proceed but do not know the source to obtain this valuable information.

 

- Why Use A Mortgage Broker? -

A mortgage broker is an independent real estate financing professional who specializes in the origination of residential and/or commercial mortgages.

Mortgage brokers have the ability to obtain the best possible rate for your situation by shopping all approved lenders. Since the broker works with many different national lenders they are not forced to recommend one set of loan programs to you but can seek out many different options that are offered. Brokers do the loan shopping for you. When you apply for a loan with a mortgage broker you are effectively applying for a loan with all the lenders the mortgage broker is approved with.

Mortgage brokers obtain rates at wholesale. It costs no more to do business with a mortgage broker. In fact independent surveys have shown that in many cases the fees charged by a broker are less and the interest rate obtained is lower than if the borrower went directly to the lender. Mortgage brokers work on a contingency basis. They are not compensated until the loan closes. (Be aware. Some mortgage brokers charge a non-refundable up-front application fee. We do not.)

When working with a mortgage broker only one credit report is used. If you were to apply to multiple lending institutions for a mortgage, each lender would do a credit check. This may lower your credit score. A lower credit score could mean you may not qualify for the best interest rate possible with any lender.

A mortgage broker deals exclusively with mortgages. By combining professional expertise with access to many different wholesale lenders and hundreds of loan products, a broker provides consumers the most efficient and cost-effective method of offering home financing options while still providing individualized attention tailored to the consumer's needs and wants.

A mortgage broker represents you in obtaining financing that best fits your specific financial goals.


Posted by Dana Bain on February 12th, 2009 9:25 PMPost a Comment (0)
Subscribe to this blog Jumbo Mortgage Borrowers February 11th, 2009 12:00 AM February 10, 2009, 5:53 pm

Rescue Plan Leaves Out Jumbo Mortgage Borrowers

 

 http://blogs.wsj.com/developments/2009/02/10/rescue-plan-leaves-out-jumbo-mortgage-borrowers/

Nick Timiraos reports:

Real estate owners of many stripes saw something to celebrate in the Treasury Secretary's sketch for a new financial rescue plan, from commercial real-estate owners to conventional mortgage borrowers. But one group still hasn't been able to attract much sympathy: affluent borrowers of so-called jumbo mortgages.

The Treasury said that mortgage securities backed by commercial real-estate would become eligible for the Term Asset-Backed Securities Loan Facility, or TALF. And the department underscored a plan to buy up securities backed by Fannie Mae and Freddie Mac mortgages, which would effectively drive down mortgage rates on those conforming loans.OK?

But the Treasury's "financial stability" fact sheet made only a passing reference to borrowers of mortgages that exceed limits by Fannie Mae and Freddie Mac, which start at $417,000 and can go as high as $625,500 in the most expensive housing markets.

The Treasury pledged to consult with the Federal Reserve Bank "regarding possible further expansion of the TALF program to include other asset classes, such as non-Agency residential mortgage-backed securities." Because private investors aren't buying any residential-mortgage backed securities, Fannie and Freddie have filled the vacuum in the secondary market. But because the loan limits don't allow Fannie and Freddie to buy loans larger than $625,500, there's no secondary market for those jumbo loans. That means the cost of lending is higher because banks must keep jumbo loans in their portfolios.

While $600,000 will buy plenty of house in Peoria, it doesn't go as far in coastal California, New York or Washington. Both houses of Congress have voted to raise the conforming limits to $729,750 in the most expensive markets, returning them to last year's levels.

Banks have tightened standards on jumbo borrowers, which real estate professionals say has frozen high-end sales. While jumbo rates are low by historical standards, many borrowers aren't able to get a loan without big down payments.

The lack of jumbo financing is a problem not just for new buyers, but for those who want to refinance. One example: jumbo borrowers whose adjustable-rate mortgages are about to reset and who are unable to refinance.

 

 

There are a few outfits that price there jumbo rates the same as conforming mortgages.

Premiere Mortgage Services Inc.

Sterling, MA 01564

http://www.BainMortgage.com

Comment by Dana Bain - February 10, 2009 at 11:37 pm
Posted by Dana Bain on February 11th, 2009 12:00 AMPost a Comment (0)
Subscribe to this blog Mortgage Rates Likely Headed to 4.5%: Pimco's Gross By: CNBC.com | 09 Feb 2009 | 10:31 AM ET February 9th, 2009 10:43 AM

 

Mortgage Rates Likely Headed to 4.5%: Pimco's Gross

 

http://www.cnbc.com/id/29097805/

MORTGAGE RATES, MORTGAGES, HOUSING, REAL ESTATE, BILL GROSS, PIMCO, ECONOMY, TREASURY, FEDERAL RESERVE

CNBC.com

| 09 Feb 2009 | 10:31 AM ET

Government action to shore up the economy and improve the housing climate probably will send mortgage rates to 4.5 percent, Bill Gross, co-CEO at the Pimco bond fund, said Monday.

In addition to driving down mortgage rates and stimulating home-buying, the government's efforts also could include a move to cap Treasurys rates to encourage investors to take more risk, Gross said during a live interview on CNBC.

"I think at some point we're going to see a 4.5 percent mortgage rate and the 10-year Treasury rate capped at some level," he said. "When the Fed comes in to buy Treasurys that will be a big day."

Looking ahead at the government initiatives he expects to see in an announcement Tuesday, Gross said the government likely will inject more capital into needy banks only. He also said the government will expand the Term Asset-Backed Securities Loan Facility, or TALF, which aims to free up the ABS market.

That in turn would make commercial mortgage-backed securities an attractive investment, said Gross, head of the world's largest bond fund.

At the same time, he warned against government over-reaching that would lead to the nationalization of some of the nation's biggest banks, a move that would wipe out shareholder equity.

"We need a clear plan tomorrow that moves away from nationalization, and private capital will come in," Gross said.

Overall, Gross praised the way the Federal Reserve has taken substantial measures to stem the financial crisis.

"They've spent $2 trillion of their balance sheet and taken some risk in terms of assets," he said. "I think they've done an excellent job so far in terms of shock and awe."

© 2009 CNBC.com

URL: http://www.cnbc.com/id/29097805/



Posted by Dana Bain on February 9th, 2009 10:43 AMPost a Comment (0)
Subscribe to this blog Now this from Sen. Charles Schumer, D-N.Y., THIS GUY JUST DOES NOT GET IT!! TAKE ACTION!! February 6th, 2009 12:28 PM

Now this from Sen. Charles Schumer, D-N.Y., THIS GUY JUST DOES NOT GET IT!!!!!!!!!!!!!!!!! TAKE ACTION!!!!!!!!!

By Dana Bain General Mortgage Discussion

GOP Continues to Push for a 4% Mortgage Buydown

Senate Republicans are trying to revive and refine an interest rate buy-down proposal that would create a 4% mortgage even though the Senate shot down the language on a 35-62 procedural vote. The original buy-down amendment offered by Sen. John Ensign, R-Nev., provided low-rate mortgages to 40 million borrowers at an estimated cost of $300 billion. A majority of senators refused to waive budget procedures to add such an expensive program to the economic stimulus bill. In opposing the Ensign amendment, Sen. Charles Schumer, D-N.Y., said it would not help borrowers with underwater mortgages, adding that a refi surge would not reduce the glut of unsold homes on the market. "It is a totally flawed proposal," he said. One source said Sen. Ensign might pare down the buy-down program and possibly limit it to homebuyers. Sen. Patty Murray, D-Wash., is expected to offer an amendment on Friday that raises the maximum loan limit on Fannie Mae, Freddie Mac and Federal Housing Administration loans back to $729,750 for the rest of this calendar year. A similar loan limit provision is contained in the House-passed Economic Stimulus bill.

-----------------------------------------------------------------------------------------Fellow Mortgage Colleagues YOU NEED TO TAKE ACTION ASAP!!!

Between this concept by Sen Charles Schumer and the Home Value Code of Conduct.

This guy does not get it!!!!!!!!!!!!!!!!!

Support NAMB TODAY Join if your not a member and DONATE TO FIGHT THE FIGHT.

 



Write your Representative TODAY!! Let your clients know what Sen Schumer is doing...

Let the MEDIA know.. Most of All Take ACTION......

 

Dana Bain

Premiere Mortgage Services Inc.

www.BainMortgage.com


Save Your Business!

On January 16th, NAMB President Marc Savitt, CRMS issued a call to all NAMB members and members of the real estate and appraisal industries to support NAMB's efforts against the Home Valuation Code of Conduct (HVCC) as agreed upon by the GSEs (Fannie Mae and Freddie Mac) and New York Attorney General Andrew Cuomo. NAMB urges you to join the fight to prevent the HVCC from taking effect. With your support, NAMB will be taking legal and legislative action to stop the HVCC. Should the HVCC take effect, lenders will no longer accept any appraisal report completed by an appraiser selected, retained, or compensated in any manner by any third party, including mortgage brokers.

Please make a donation today to protect your profession! Click here to donate today!

For a copy of the e-mail sent to all NAMB Members, click here.

For a copy of the e-mail that can be sent to real estate agents, click here.

For a copy of the e-mail that can be sent to appraisers, click here.


Posted by Dana Bain on February 6th, 2009 12:28 PMPost a Comment (0)
Subscribe to this blog PREVENT- The Home Valuation Code of Conduct February 5th, 2009 7:09 PM

Please Join The Fight & Donate To PREVENT - THE HOME VALUATION CODE OF CONDUCT


Save Our Business!



On January 16th, NAMB President Marc Savitt, CRMS issued a call to all NAMB members and members of the real estate and appraisal industries to support NAMB's efforts against the Home Valuation Code of Conduct (HVCC) as agreed upon by the GSEs (Fannie Mae and Freddie Mac) and New York Attorney General Andrew Cuomo. NAMB urges you to join the fight to prevent the HVCC from taking effect. With your support, NAMB will be taking legal and legislative action to stop the HVCC. Should the HVCC take effect, lenders will no longer accept any appraisal report completed by an appraiser selected, retained, or compensated in any manner by any third party, including mortgage brokers.

Please make a donation today to protect your profession! Click here to donate today!

For a copy of the e-mail sent to all NAMB Members, click here.

For a copy of the e-mail that can be sent to real estate agents, click here.

For a copy of the e-mail that can be sent to appraisers, click here.


New York Attorney General, GSEs Release Revised Appraisal Agreement

McLean, V.A. - December 24, 2008 - The National Association of Mortgage Brokers (NAMB) today announced its disappointment with New York Attorney General Andrew Cuomo, Government Sponsored Enterprises Fannie Mae and Freddie Mac (GSEs) and the Federal Housing Finance Agency (FHFA) for issuing its revised Agreement on the Home Valuation Code of Conduct (HVCC) for appraisals. This agreement, in response to an initial investigation into business practices conducted between Washington Mutual and appraisal management company E-AppraiserIT, once again fails to address the appraiser fraud problem. NAMB today issued the following statement from NAMB President Marc Savitt:



"This agreement amounts to a de facto regulatory action which avoids the appropriate process. The law provides for a process to implement regulatory and policy changes such as those contemplated and specified in this agreement.



This agreement will increase costs to consumers and remove thousands of small business competitors from the marketplace. This will create a severe disadvantage to small business mortgage brokers, and prevent them from engaging competitively in the mortgage marketplace.



The Attorney General and GSEs disregarded many letters submitted by industry associations citing numerous laws and regulations already in place and for failing to make the necessary revisions in the new agreement to accurately address the problem of appraiser fraud. The solution to appraiser fraud is to hold responsible those that commit the fraudulent acts: appraisers. Regulators have failed to reprimand appraisers committing similar acts to those committed during the Savings and Loan Crisis, and instead held small business mortgage brokers accountable.



As always, we are ready to work with these agencies to achieve the objective of eliminating appraiser fraud without disrupting the marketplace or hurting consumers. As it stands now, the National Association of Mortgage Brokers intends to consult with our legal advisors and to take appropriate legal action if necessary."



For a copy of the revised agreement, please click here.


Posted by Dana Bain on February 5th, 2009 7:09 PMPost a Comment (0)
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Recent Posts: The banks and Lenders that "prey" together, stay together!! From Fannie and Freddie, Here Come the Fee Increases --Counterproductive & will cost he consumer$$$$$$$ Consumers & Colleagues -- IMMEDIATE ACTION REQUIRED! Some Lenders drop mortgage brokers- That may be bad news for consumers because fewer brokers could lead to a less competitive marketplace and more expensive home loans resulting from consumers not being able to easily comparison-shop rates. CNBC probes financial crisis in "House of Cards" Protecting The Mortgage Broker Will Protect Competition & Ultimately The Consumer. The Big Banks Such As B - A and such are trying to create a MONOPOLY. Write Your Representative Today to Protect The Mortgage Broker and Your Wallet from a Monopoly like B-A etc... Jumbo Mortgage Borrowers Mortgage Rates Likely Headed to 4.5%: Pimco's Gross By: CNBC.com | 09 Feb 2009 | 10:31 AM ET Now this from Sen. Charles Schumer, D-N.Y., THIS GUY JUST DOES NOT GET IT!! TAKE ACTION!! PREVENT- The Home Valuation Code of Conduct
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