America's #1 Mortgage Broker

Here's Greg Swann, announcing this week's nominees for the People's Choice Award: 

Now then: The Odysseus Medal nominees: A dozen entries on the short list this week, and, again, a lot of Deep Think stuff. Vote for the People’s Choice Award here. You can use the voting interface to see each nominated post, so comparison is easy.

• Kris Berg — RESPA, What’s my real estate license worth? More than a hundred bucks.
• Kris Berg — Concurrent closings, Newton’s Umpteenth Law - Concurrent Closings
• Dan Green — Foreclosures, Why Healthy Bodies and Healthy Marriages May Be More Relevant To Slowing Foreclosures Than Interest Rate Adjustments
• Chris McKeever — Listings portals, A [HAR]d Lesson
• Brian Brady — Sub-prime oil, We’re All Sub-Prime Borrowers (Who Consume Oil)
• Rhonda Porter — Closing procedures, Major Proposed Changes for Residential Closings in 2008
• Brian Boero — Blurred vision, Blurred vision
• Gary Elwood — Online marketing, The 3 Commandments of Online Marketing You Must Obey
• Kevin Boer — Redfin, The Lessons Of Redfin, Part I: The Marketing Value Of The Obvious
• Joel Burslem — Scripps, Scripps Cracks Open the Door
• Bill Leider — What is a brand?, What Is A Brand?
• Krista Baker — Emotional needs, Do You Address Your Clients’ Emotional Needs?

Glenn Kelman appeared on NBC. This time, he wasn’t the smartest kid in the class; he imitated Tom Bodett. Greg points out the “Duh” factor in the most recent Redfin Revelation:

Here’s real justice: Someday, an actual reporter is going turn to Kelman and say, “Glenn, you’re the expert. How do you set up a lease-purchase so the buyer doesn’t get screwed? What’s the best way to do seller financing — a contract-for-deed or a carryback? Under what circumstances should a buyer consider waiving inspections?” Just keep on smiling, Glenn. You’re asking for it, and you’re going to get it.

Here’s the problem (to quote Jeff Brown): continued

Loan originators aren't in a credit crunch; we're in a time crunch.  Loan demand, at the originator level, is at an all-time high.  Never, in my 14 years of originating loans, have I seen so many people who need mortgage financing.  Supply, as we all know, is just not there.

Borrowers want money and lenders are reluctant to loan it out.  This is where the problem lies. 

Life as a loan originator, in 2004, was a walk in the park.  There were few incentives to ask a borrower for income documentation, appraisers gave you value plus 15%, and underwriters practically processed your files for you. 

Today, experienced loan originators are essential.  The problem, now, is that the inexperienced have infiltrated the underwriting departments...and it's causing a logjam.  PMI companies, long eschewed in the days of 80/20 loans, are busy.  They need to hire underwriters to help them keep up with the increased demand.  High LTV loans are still needed and the second mortgage market has collapsed (and will get worse).

Where did the PMI companies turn to find underwriters?  Find out here

Residential lending is in a pretty tough spot. Mounting losses, from former white-picket fence owners, are putting a dent in the country club sets’ wallets. The problem is not unlike the one we faced 20 years ago; bankers turned into riverboat gamblers.

That’s all changed. Today, sobriety is the buzzword in residential lending as the conduit lenders act as if borrowers were trying to pry the money for a home loan out of their children’s piggy bank. If it weren’t so serious it would be comical.

The bankers think that every American is a sub-prime borrower. Until they can reach a consensus on an economic model, Wall Street securitizers will drive this culture of paranoia into the hearts of the newest of mortgage company employees.

Who will save us from this madness?  Why the...continued

I’m thinking of getting into politics. I’ve been watching testimonies, from both sides of the aisle, about the credit crunch and impending doom of mass foreclosures. I figured out the problem:

The housing prices were too damned high.

Now, my stance, to this point, has been pretty clear; let the market act as markets do, with commensurate consequences to each and every market participant. Lenders and borrowers lose. Lenders lose money, and borrowers lose the freedom to buy another home, with the use of a mortgage, for a period of 4-6 years. (remember that statement)

As I’ve said, I’m thinking of getting into politics so that straight talk and libertarian approach is somewhat unacceptable in the vote-seeking game. I think I need to find a solution that will put me in a picture, alongside Hillary, Arlen, Barney, and Hank. My solution may also fire a shot across the bow of our economic enemy, the People's Republic ofChina; that’s just a bonus for the cold warriors among us.

The Happy Homeowners Act of 2008 understands that foreclosures are far reaching in their devastating effect. They leave homes vacant in neighborhoods, they attack the esteem and morale of the borrowing family, and what is often left unsaid, they whack the investors’ principal. Talking heads have said that the homeowners just want to live in peace and harmony, in their slice of the American Pie. So… here’s my proposal:

READ MORE 

This Mortgage Rates Report is a SPECIAL EDITION:  Why it makes sense to refinance...TODAY.

If remortgaging has been on your mind, two things just happened which should compel you to do just that: 

1- 30 year fixed rate mortgages dropped below 6% for the first time since October, 2005.  While I am a staunch advocate of ARMs, as the least expensive mortgage, Wall Street seems to be rewarding the credit-worthy borrowers who are willing to lock-into a fixed rate mortgage.  Wall Street may be trying to push people into locking into loans, because they believe that rates are dropping, but I think that a fixed rate loan under 6% is about as good as it gets.

2- Fannie Mae and Freddie Mac are about to make borrowers jump through more hoops...again.  Next month, borrowers who do NOT have a FICO score of at least 680 will be assessed with a healthy penalty; 1-2% of the loan amount.  What that means is that the interest rate charged could be as much as .75% higher than the rates offered to borrowers with stellar credit (or the cost of the loan will be 1%-2% more). 

If you are holding out for lower mortgage rates, that may happen next month.  You might be left out in the cold if your credit score isn't high enough.  I've seen people who have perfect credit histories  with a credit score under 680 so don't get cocky; this could happen to you !  While rates could drop another .25%, you could be forced into a rate that is .25 higher than you could get today.

ACTION PLAN:  Call me today at 858-699-4590 for a mortgage rate review.

A baker’s dozen this week. Vote for the People’s Choice Award here. You can use the voting interface to see each nominated post, so comparison is easy.

Voting runs through to 12 Noon MST Monday. I’ll announce the winners of this week’s awards soon thereafter.

Here is this week’s short-list of Odysseus Medal nominees:

CLICK HERE TO READ AND VOTE FOR THE BEST ENTRY 

NB- A few Active Rainers, including Geno Petro, Mariana Wagner, and Rob Ashby made the cut this week.