July 2007
Monthly Archive
31 Jul 2007 07:49 am
How to become a mortgage broker
 |
“Your Successful Career as a Mortgage Broker” by longtime mortgage broker David Reed explains the details of making an above-average income helping other secure affordable mortgage loans. According to Reed, the average mortgage loan officer earns $76,000 per year, but those who make it to the top 5 percent of the industry earn more than $360,000 annually. This career oriented book explains the three primary types of mortgage lenders: bank loan officers, mortgage bankers and mortgage brokers. After discussing the key personnel involved in mortgage brokerage, the author shifts to the topic of getting started. Because all states now license mortgage brokers, he says the first step is to get licensed. The book contains a state-by-state license information contact list. |
click here for article
30 Jul 2007 06:52 am
Consumer Understanding of Credit Scores Needs Addressing
| American consumers have a “poor” grasp of the mechanics and importance of credit scores — a lack of knowledge that can cost them thousands of dollars needlessly when it comes to obtaining a home mortgage. Simple concepts that point to the need for more consumer education include 1. Less than a third (29%) of respondents were aware of the meaning or uses of credit scores — that they predict the risk of nonpayment of loans; 2. Less than half (47%) knew that Experian, Equifax and Trans Union are national credit bureaus; 3. Less than a quarter (24%) knew that the lowest [tag]FICO score[/tag] needed to qualify for a low-cost mortgage generally is around 700; 4. Only 45 percent of consumers polled were aware that they have more than one score-one each from the three credit bureaus. Scores on the same individual from the bureaus differ at least slightly because each bureau has different information on file. |
 |
click here for article
29 Jul 2007 06:49 am
What you’ll pay for your mortgage depends on where you live
 |
New York has the most expensive mortgage origination and closing fees in the country according to a recent survey. A resident of New York City getting a $200,000 mortgage would pay an average of $3,830 in origination, title and closing costs, according to the survey of lenders. On the other end of the scale, an Indianapolis resident would pay $2,339 for the same loan, or 39% less. Mortgage-related fees vary from place to place because of differing taxes, customs and regulations. Title insurance is another budget buster. In each state, the insurance department sets the rates, with heavy input from the title agencies and insurance companies. Because the state establishes the rates, title companies don’t compete for consumers by offering lower prices. |
click here for article
28 Jul 2007 06:10 am
Mortgage Brokers As Salesmen
| “We think [tag]mortgage brokers[/tag] bear a lot of the responsibility for placing borrowers into these unaffordable loans,” says Allen Fishbein, director of housing and credit policy at the Consumer Federation of America. Critics like Fishbein warn that the system gives brokers powerful incentives to push consumers into toxic loans and little to fear if their customers can’t handle them.A good one can save you time and thousands of dollars over the life of a loan – but it’s up to you to understand the loans you’re being offered and the fees involved. Here are the key questions. |
 |
click here for article
27 Jul 2007 07:44 am
Why Foreclosure Opportunities Are Almost Never Pretty
 |
Most [tag]foreclosure[/tag] properties, also known as [tag]REO[/tag]’s (or pre-foreclosures, also known as [tag]short-sales[/tag]) are dirty, have a lot of junk inside them, are in disrepair and there’s limited information on both the property and the deed. If mortgage payments are not being made, then that means the owners are in financial stress. If you’re in financial stress, that means you have only enough money to pay the grocer. If all you have is money for groceries, then you’re not going to pay for a cleaning lady, roofer, painter, creditors — and lastly, the lender. If you agree to buy the house, you get it in its current condition, no exchanges or substitutions allowed. You get the soiled carpet, busted a/c, vermin infestation, etc. What you get in exchange is a house that is truly under the market as far as pricing is concerned, and you get to add some repairs and sweat-equity to create a healthy financial gain. |
click here for article
26 Jul 2007 07:24 am
Reverse mortgages are on the rise
| Senior homeowners are taking equity out of their longtime residences to make ends meet during their retirement years, and to remodel their homes and help their children and grandchildren with the financial challenges of higher education. Conventional [tag]reverse mortgage[/tag]s allow senior homeowners, with a minimum age of 62, to receive proceeds from a lender — either in a lump sum, regular monthly payments, a line of credit or in a combination of those options. When the house is sold, or the last remaining borrower dies or moves out of the home, the loan amount plus the accrued interest is repaid. The borrower can’t owe more than the value of the home. |
 |
click here for article
25 Jul 2007 07:24 am
Many States Follow The Feds On Changing Subprime Rules
|
State financial overseers are bringing new [tag]subprime regulations[/tag] to state lenders not regulated by the feds. For the subprime lending industry, the mandates call for clear and effective management practices, underwriting standards, and consumer protection provisions that institutions must follow when marketing and selling to subprime borrowers, including Curtailing predatory lending. Loans should be based on the [tag]borrower’s ability to pay[/tag] rather than the foreclosure or liquidation value of the home, tightening underwriting controls. Loan approval should be based on the borrowers ability to pay the loan based on the fully indexed rate, not the starter rate, predatory lending, poor underwriting habits and other industry behavior has left consumers suspicious about the lending process. |
click here for article
24 Jul 2007 07:21 am
Mortgage Pitches Not Credible To Most Consumers
| Two out of three adults believe mortgage pitches are either only slightly credible or not credible at all. More than one in five adults, 22 percent, are convinced mortgage advertising and marketing is not credible at all and that could be putting the industry’s reputation at stake, according to a recent poll. During the last housing boom, the mortgage industry experienced growing levels of predatory lending, fraud and financial crimes that spawned a swarm of complaints from civil and class action lawsuits to federal investigations of organized crime. Collusion, conspiracy and insider aiding and abetting among other sectors of the real estate industry share the blame for consumers who believe mortgage ads are empty lures. |
|
click here for article
23 Jul 2007 07:53 am
Wilkes County NC Log Home and Mountain Property
Just listed is this beautiful Wilkes County NC Log Home and Mountain Property.
MLS Number: 50863, List Price: $359,900
Bedrooms: 3, Full Baths: 2, Half Baths: 0, Est Total SqFt: 2600, Type/Style: Log Home, Area: Area 6, Middle School: Cntrl Wlks, High School: Wlks Cntrl, Construction: Log
Foundation: Combination, Roof: Metal Roof, Floors: Carpet/Hardwood/Tile, Garage/Carport: None-Garage, None-Carport, Interior Features: Master Bedroom, Main Level, Large Master Bedroom, Walk-In Closet(s), Hardwood Floors, Fireplace(s), Great Room, Exterior Features: Double Pane Windows, Wooded Lot, 1-5 Acres, Hot Tub, Subdivision: N/A, Lot Size: 2.47, Apx SqFt: 2600 – 2800 SF, Basement: None
Contact Elizabeth Carter, 336.973.5594 or Greg Stikeleather, Broker, 704.880.5247 or email eacarter@charter.net
click here for more information
23 Jul 2007 07:03 am
Should mortgage escrow be required by law?
 |
Normally, lenders price loans on the assumption that borrowers will include taxes and insurance premiums in their monthly mortgage payments. These payments are placed in an escrow account under the lender’s control. On a payment date, the amount due is paid by the lender. Its purpose is to force borrowers at the outset to confront their ability to afford the major expenses of home ownership, and this purpose would be served by an escrow requirement that applied only to the first year. After that, borrowers should be allowed to opt out if they want to. |
click here for article
22 Jul 2007 07:07 am
Consider Tapping the Equity Available in Your House As You Approach Retirement
| |
For Bob and Judy Bartlett, a 4,700-square-foot home on two acres in Durham, N.C., no longer made much sense after their two children had long since moved out. Meanwhile, the retirees were spending more time at a second, [tag]lakefront home[/tag]. So several years ago, they began thinking about selling their primary house and buying something smaller. But it wasn’t easy to make the break; the couple had called the Durham property home for three decades and were unhappy about the prospect of moving away from close friends. |
click here for article
21 Jul 2007 07:10 am
Escrow Requirements Could Help Subprime Borrowers
 |
Escrow is not an absolute requirement. To make escrows the norm in the subprime market would require that escrows be made mandatory for all mortgage borrowers. Escrows can’t be required for only subprime loans because that term can’t be precisely defined. And if the law requires simply that escrows be offered to borrowers, loan officers and mortgage brokers could work around it. But the requirement for an escrow could be short-term. Its purpose would be to force borrowers at the outset to confront their ability to afford the major expenses of homeownership. This would be served by an escrow requirement that applies only to the first year. After that, borrowers should be allowed to opt out if they want. |
click here for article
20 Jul 2007 07:03 am
Late payments for home equity loans rise
| Late payments on home equity loans climbed to a 1½-year high in the opening quarter of this year, while delinquencies on credit card bills fell, painting a mixed picture of how people are managing their debt. After a five-year boom, the housing market tanked last year. The combination of rising interest rates and falling house prices clobbered some homeowners — especially those with tarnished credit histories and adjustable-rate mortgages. Late payments and new foreclosures for those borrowers spiked to all-time highs in the first quarter, according a separate survey by the Mortgage Bankers Association, released last month. |
 |
click here for article
19 Jul 2007 07:02 am
Seven Steps To A Credit Score Makeover
 |
You can lessen the effects of the recent tightening mortgage underwriting standards by improving your credit report profile and, as a result, your credit score. Just don’t expect that your knee-jerk reaction to better fiscal responsibility will generate overnight success. Chances are, you didn’t get those bad credit reports during a single credit buying binge. And, if you are like many consumers, you don’t even know what you are up against. Your credit report is a sort of fiscal fitness report on your credit habits and the information it contains factors heavily into your credit score, a statistical analysis or numerical value placed on your credit behavior. Your credit score is commonly used to nay or yea your requests for credit and determine how much you’ll pay for credit approved. |
click here for article
18 Jul 2007 08:02 am
Subprime mortgage lending policies tightened by Feds
| Both government lenders, [tag]Fannie Mae[/tag] and [tag]Freddie Mac[/tag] have tightened their policies for purchasing high-priced, [tag]high-risk home loan[/tag]s from lenders. The new policies involve billions of dollars worth of [tag]subprime mortgage[/tag]s, those targeted to people with tarnished credit or low incomes who are considered greater risks. The policies spell out to banks and other lenders which mortgages Fannie Mae and Freddie Mac will ultimately buy from them and which mortgage loans they will be likely to reject. |
 |
(more…)
17 Jul 2007 07:45 am
Malone Bay features a limited number of Lakefront Lots on W. Kerr Scott Lake, Wilkesboro NC 28697
- Beautiful and affordable [tag]NC Lakefront property[/tag] near Boone NC
- [tag]Lakefront Lots on Kerr Scott Dam & Reservoir[/tag]
- 18 Lots – 14 are Lakefront and meet private dock requirements.
- Gated community with Lots ranging from 2.3+- acres to 6.8+- acres.
- On the Hwy 421 side of the lake just off South Minton Road, [tag]Wilkesboro, NC 28697[/tag]
click here for more information
16 Jul 2007 06:58 am
Picking the best mortgage broker
| [tag]Mortgage broker[/tag]s should be interviewed about their qualifications and experience in the same way you would interview any other service provider. Engage the broker in a dialogue regarding your problem, and assess the response. Does this broker listen and respond thoughtfully? Or do you have the feeling he is trying to shoehorn you into something whether it fits or not? The fee for the broker’s services should be agreed to by both parties, in advance and in writing. If there is a separate [tag]processing fee[/tag], it should be included in the agreement. Upfront Mortgage Brokers follow these rules as a matter of course, and most other brokers will as well if the borrower insists on it. Don’t waste any more of your time on a broker who refuses. |
 |
(more…)
15 Jul 2007 08:51 am
Mortgage industry irresponsible in its business practices and advertising.
 |
The [tag]mortgage industry[/tag] is becoming more irresponsible in its business practices and advertising. History has proven that when an industry as a whole becomes irresponsible — perhaps even unscrupulous, the government steps in and starts to regulate. While this may be a good thing for the consumer, history has also shown that too much regulation can be harmful to everyone. It’s time for the mortgage industry as a whole to put a little more effort in self-regulation before the government regulates it to death. I write this column as an observant consumer and some of my recent observations aren’t pretty. |
(more…)
13 Jul 2007 05:59 am
The Secrets Of Breaking a long-term lease
| While you’re perusing that crisp new lease, on the verge of committing yourself to a yearlong rental, hold that teetering pen a minute. If the term of your lease seems dicey for any reason, consider a shorter-term rental or a month-to-month contract. You’ll sacrifice some security — rents can rise between renewals, or your landlord may decide not to renew — but the bucket of money you’ll save versus breaking a long-term lease is worth the price of some nail-chewing, or even a slightly higher rent. (This type of agreement is also riskier for landlords, since it costs them extra time, energy and money to fill more frequent vacancies.) |
 |
click here for article
11 Jul 2007 05:39 am
MAIN CHANNEL, WATERFRONT LOT on W. KERR SCOTT LAKE, WILKESBORO NC 28697
Just listed is this one of a kind, 2.86 acre Main Channel, Waterfront Lot on beautiful W. KERR SCOTT LAKE in Wilkes County North Carolina.
Main Channel Waterfront.
2.86 acre Waterfront Lot.
Beautiful View of Lake.
Over 300 feet on main channel.
Wooded and Unspoiled.
Gated community and private, paved road.
Community water and underground utilities.
Has new dock, one boat slip and slip for two jet skis.
$359,000
Contact Greg Stikeleather, Broker, 704.880.5247 or email Greg at grstike@charter.net
click here for more information
10 Jul 2007 06:47 am
Little Known Ways to Manage Your Credit Score
|
Getting a general idea of your credit score is sometimes important because if you’re really high on the score line, then you’ll be in good shape and if you’re in the middle you know where you stand and then you know you can take certain actions if you were way down on the score line. It’s still worth it to start with a general idea of what it is. A mixed file is when someone else’s information comes on to your credit report. It can wreak havoc because if you have good credit and the other person whose information is coming onto your credit report has bad credit, those bad accounts — or tradelines as they’re called in the industry — are going to lower your credit score. |
click here for article
09 Jul 2007 06:25 am
What went right and wrong with higher-interest loans
| The growth of the modern home mortgage market in the 1950s was revolutionary because it allowed millions of middle-class Americans to become homeowners for the first time — something that hadn’t been possible before. Back then, lenders couldn’t raise their mortgage rates above the amount permitted by law. That meant that if someone with a lower income or inferior credit history came in, they couldn’t get a loan. It just wasn’t worth the risk to make loans to such people at the government’s maximum rate. That changed in the 1980s with the repeal of usury laws. Now when someone applies for a mortgage, they’re not just accepted or rejected. Instead, they’re priced — in other words, the interest rate they’re offered depends on how much of a risk they pose to the lender. People with inferior credit histories get mortgages with higher rates, and we call those sub-prime. |
 |
click here for article
09 Jul 2007 06:15 am
Guilford County NC Foreclosures on the rise
| The number of people in [tag]Guilford County[/tag] who face [tag]foreclosure[/tag] on their homes is at its highest point in 10 years, three times the 1998 rate. But as the economy in the Triad has improved and more lenders are requiring counseling before approving a loan, the double-digit rates of increase have mellowed in the past three years. The economic downturn has spawned training and assistance programs aimed at keeping people in their homes. Part of the recent decrease in foreclosures may be due to a pilot home protection program that has awarded $215,000 in mortgage assistance since 2005 to Guilford County workers who lost jobs when companies outsourced or moved overseas.
|
|
(more…)
08 Jul 2007 07:58 am
You’ll need a higher credit score and a bigger down payment, and you’ll wait longer.
 |
Ever since the start of the subprime mortgage meltdown, horror stories have filled online message boards, describing borrowers who were denied refinancing until they boosted their credit scores, and of self-employed home buyers put through rigorous underwriting and ultimately hit with high interest rates. Most frustrating, perhaps, is that many of these people could have easily received loans and refinanced only months ago. The subprime collapse has motivated lenders to crack down on credit to weed out risky loans and prevent foreclosures. The credit crunch has made it harder for subprime borrowers — those with credit scores of 620 or lower on the FICO scale of 300 to 850 — to get certain loans, especially with no money down. |
(more…)
07 Jul 2007 07:15 am
Foreclosure’s filthy aftermath
| Piles of rotting garbage, swarms of diseased mosquitoes — these are the horrors that may await the sheriff, property inspector, real-estate agent or passer-by making that first visit to a deserted home. With foreclosure activity well above last year’s levels and still on the rise in many parts of the country, nasty surprises like these have become more common. Homeowners in financial straits may make pets a low priority to begin with, and when foreclosure leads to eviction, they are sometimes abandoned without food or water and left to breed uncontrollably. |
|
click here for article
06 Jul 2007 06:28 am
The Sometimes Ugly Sides of Short Sales
|
Before you get involved in one of these transactions, understand what they are not: a short sale is not simply a sale of a property for less than the original purchase price. It is not necessarily a “pre-foreclosure.” It is not always a good deal. A short sale is a pre-foreclosure only in the fact that the lender has decided to receive payment on the note for less than the face amount. The sellers have determined there’s no way they are going to get as much for the house as they owe and they can’t stay in the property for one reason or another. The terms of such sales will differ lender to lender. |
click here for article
05 Jul 2007 06:44 am
The Secrets To Choosing the Best Loan Program
| Loan programs come in many forms and come from many sources. Just as the loan structure, like a [tag]30 year fixed rate mortgage[/tag], can affect your interest rate and monthly payments, the source of funding for your loan can also affect your rate and payments. The source of funding can also affect the amount of your down payment and closing costs. If you have at least 3% of the loan amount to use as a down payment, you may consider the most common type of loan, a conventional loan. |
 |
(more…)
04 Jul 2007 08:17 am
See How Easily You Can Correct Your Credit Reports
| Contacting the credit reporting services can be done in a variety of ways. Regardless of which of the five resolution routes you choose, you’ll need to be able to prove your case. That’s why it’s helpful to keep your billing statements and payment records. Don’t toss them after you’ve successfully disputed a mistake and it gets removed; there is a chance it could come back. Keep records for as long as the information is on your report, seven years in most cases. |
click here for article
03 Jul 2007 07:26 am
Federal Regulators Issue Final Subprime Rules
| Effective immediately, the “Statement on Subprime Mortgage Lending” is the work of the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of Thrift Supervision and the National Credit Union Administration, federal monetary system regulators. The new rules were spawned by waves of failing subprime mortgages. Subprime loans are generally more expensive than prime loans, but they are intended for borrowers who pose a greater risk to lenders, typically because of the lack of credit or previous credit problems. Without the subprime segment, some borrowers would be locked out of the American Dream. |
click here for article
02 Jul 2007 08:00 am
Actions to Modify Loans and Avert Foreclosures Draw Controversy
| |
The effort to hold down foreclosures threatens to create clashes between mortgage companies and investors in securities backed by bundles of home loans, a $6 trillion market that has been shaken recently by losses on some of the riskier types of mortgage bonds. And because of the way these securities are sold, these efforts can pit groups of holders against each other. Foreclosures are rising fast partly because lenders in recent years rushed to make no-money-down loans to people with weak [tag]credit records[/tag] and didn’t always verify their income. |
click here for article
Next Page »
