Travel Portland on YouTube

Portland, P-Town, PDX... Whatever you call it chances are if you live in Portland, or in one of its many suburban areas, you love it here. I was born and raised in Portland myself and am proud to call it home. This snippet was sent to me by our lovely office manager just because it's really cool... if you are considering a move to Portland this little clip is one to watch and if you already do call Portland home you'll be reminded why.

Taylor, Bean & Whitaker Cease Operations

I am not usually one to post about lenders closing its doors (cause I don't have that kind of time) but this one was a biggie! I have one less lender left that lends on Manufactured now :(

Read on for a press release from TBW.

August 5, 2009

TAYLOR BEAN MUST CEASE ALL ORIGINATION OPERATIONS EFFECTIVE IMMEDIATETLY

OCALA, FLORIDA – TAYLOR, BEAN & WHITAKER MORTGAGE CORP. (“TBW”) RECEIVED NOTIFICATION ON AUGUST 4, 2009 FROM THE U.S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, FREDDIE MAC AND GINNIE MAE (THE “AGENCIES”) THAT IT WAS BEING TERMINATED AND/OR SUSPENDED AS AN APPROVED SELLER AND/OR SERVICER FOR EACH OF THOSE RESPECTIVE FEDERAL AGENCIES. TBW HAS UNSUCCESSFULLY SOUGHT TO HAVE THE TERMINATION/SUSPENSION DECISIONS OF EACH OF THOSE AGENCIES REVERSED. AS A RESULT OF THESE ACTIONS, TBW MUST CEASE ALL ORIGINATION OPERATIONS EFFECTIVE IMMEDIATELY. REGRETTABLY, TBW WILL NOT BE ABLE TO CLOSE OR FUND ANY MORTGAGE LOANS CURRENTLY PENDING IN ITS PIPELINE. TBW IS COOPERATING WITH EACH OF THE AGENCIES WITH RESPECT TO ITS SERVICING OPERATIONS AND EXPECTS TO CONTINUE TO SERVICE MORTGAGE LOANS AS IT RESTRUCTURES ITS BUSINESS IN THE WAKE OF THESE EVENTS. WE UNDERSTAND THAT THIS COULD HAVE A SIGNIFICANT IMPACT ON OUR VALUED EMPLOYEES, CUSTOMERS AND COUNTERPARTIES, AND ARE VERY DISAPPOINTED THAT A LESS DRASTIC OPTION IS UNAVAILABLE.

Fannie Mae Unleashes Home Path

A new loan program has been introduced by Fannie Mae, welcome Home Path. A loan program made available to purchase Fannie Mae owned homes. It gives the FHA Loan a run for its money, although the rate is slightly higher much like LPMI (lender paid mortgage insurance) programs.

• 3% down in comparison to the FHA requirement of 3.5%
• No appraisal is required
• Seller concessions allowable up to 6%
• No Mortgage Insurance
  

For more information or to search Fannie Mae's listed homes visit http://www.homepath.com/

Capacity Cure

Every now & then an article comes across my Google alerts that catches my attention and I felt like sharing... http://www.bloomberg.com/apps/news?pid=20601087&sid=aedS3XGrNmSA

Historically if any creditor felt insecure in your ability to repay a debt they would close down your line and your lower score was earned; usually fueled by late payments or changes in spending habits. However this article raises some good points... What could FICO do to fix this since obviously these cases are indicative of current times and are not caused by the borrowers actions. Perhaps they ought to not update the credit companies with the lower limit or give them a grace to pay down their balance?

Cash is King :)

Rates Lend A Little Relief This Week

Better pricing on a Friday is a good thing... not that I care to quote Martha as nothing is ever perfect. Rates are not in the (high) 4's unless you are looking at 15 year fixed rate pricing, have stellar credit, and are in a good equity position. Consensus says we probably will not see those rates again on a 30 year fixed with pending inflation, but low 5's is preferable over the high 5's... Note I am skirting fine print here ;) I lack a crystal ball so I could miss the mark here but if I had to eat crow on this subject I think I could handle it. Regardless, if you have been on the fence for whatever reason revisit your current situation and if it makes sense it might be a good time to jump.

Rates Continue to Soar

At 8 a.m. sharp this morning I received yet another rate alert to "lock in ahead of a re-price for the worse"... seems to be a broken record these days. Without a crystal ball it is hard to say what the future holds for fixed rate pricing, although the pending doom of inflation lacks promise. If you were holding out for the media hyped "0-3%" you missed the (imaginary) boat. At best, in a very short window, we saw 4.375% with discount. IMO we will be lucky to see 5.5% if you are still in the sixes and look to be in your loan for a long time I wouldn't stay on that refi fence for too long. If you are looking to buy prices are down, but the question plaguing most of us is will they continue to come down? The first time home-buyer tax credit is helping Lookie Lous but we have yet to see lenders implement the fed guidance for the use the tax credit for down payment.

However you slice it rates are going up, hopefully slowly over time, but the last 4 weeks have definitely been unkind.

Modification Monkey Wrench

I have been noticing verbiage on mortgage statements as they come across my desk stating that if you have filed bankruptcy and did not reaffirm your mortgage loan you will not qualify for a loan modification. The reasoning... Most bankruptcy petitioners only agreed to keep their mortgage loan current and retain the collateral, in this case the home. If a lender were to modify the original loan agreement it could put them in a sticky legal situation. Entering into a new, even modified contract is not permitted on any discharged debt and any attempt to collect on a discharged debt carries a hefty penalty. Don't know if you reaffirmed? Call your attorney.

Like I Said... "VA Loans ROCK!"

Towards the end of last summer I noted "VA Loans ROCK!" and while I have been digging into the whole "Making Home Affordable" thing I was reminded they still do...

Purchase Loans:

• No down payment required!
• Up to 4% of closing costs can be paid with seller concessions.
• Funding fee from 1.25% (regular military with 10% down) to 3.3% for subsequent use.

VA Streamline or IRRRL (Interest Rate Reduction Refinance): VA to VA

• Funding fee of only .5%
• No credit report, appraisal, nor income verification is required.
• The loan to value never comes into play.
• Notes: The new loan amount must be less than the original plus "allowable" closing costs. There is an exception to this if your loan is delinquent so that late charges and/or legal fees can be included. Your payment is only allowed to increase if you are refinancing out of an ARM.

VA Cash-Out: Regardless if you are taking cash out or not, go figure.

• Funding fee of 2.15%, 2.4% for Reserves/National Guard, or 3.3% for subsequent use.
• Loan to value up to 100% allowed through 9/30/12, will reset back to 90% afterwards.

Other perks:

• Never any MI (mortgage insurance).
• Loan amounts up to $417,000, higher limits available in certain counties around the states.
• Flexible underwriting, we will leave it at that, too many what ifs, ands, or buts.
• All VA loans may be assumed by another qualified veteran with only a .5% funding fee.
• Veterans with a service connected disability of 10% or more the funding fee is waived.
• Construction and Manufactured Home Loans available.

If you have already benefited from a VA Loan but are experiencing a hardship the "Home Affordable Modification" also includes VA loans. To learn more explore this link then contact your lender.

New Options Available for Homeowners

The details of the "Making Home Affordable" initiative were announced today from the Obama Administration that allows FannieMae and FreddieMac the ability to help homeowners that have been stuck in a stalemate with the current housing market.

To be eligible for either the Home Affordable Refinance or the Home Affordable Modification your loans must currently be held by either agency and must be your primary residence. Each of the agency websites have different information and resources so I have linked them above but for the golden nuggets on eligibility click here. The refinance requires that you have not missed payments in the last 12 months, allows up to 105% loan to value, and is in effect through June 2010. The modification is available to those whose loans were originated prior to January 1 2009, that are currently in a hardship or have adjusting payments that will increase expenses, and whose loan amount is less than $729,750.

FreddieMac has announced that all loans currently in foreclosure that qualify for the refinance or modification are suspended so that homeowners can seek this help. FannieMae servicers are directed not to proceed with pending foreclosures until the borrower has been evaluated for either program.

This looks to be very tangible for all lenders but hang in there we all have a sharp learning curve. I still am trying to understand how the Mortgage Insurance will fall into place and also the protocol when a second mortgage is involved. I know of a few clients I will now be able to help that previously had been SOL. I want to stress NEVER pay for foreclosure counseling services, this is provided free with HUD approved counselors. Modifications can be done direct with your loan servicer as lenders now have an incentive program in place to help you.

HGTV's My First Place Casting in Portland

First time homebuyers listen up! HGTV producers are spreading the word that they are looking for buyers to be featured on their show My First Place. Go to HGTV's website for more info about the show or contact the show producers directly here.

Happy to have found a more positive topic over the $299 dive the Dow took today... UGLY!

Fresh Online Money Management... WHAT!?

In looking to find a few ways to save some money in the ol' budget I came across a website that has already changed my life... No not Facebook! Although my husband might argue that ;)

Mint.com

All of your accounts in one place. Easy! Cool! Fresh! Just sign up and start adding your accounts. Whether it is a retirement, savings, checking, mortgage, auto loan, or credit card account. It updates your information, imports your transactions, and categorizes your spending. I have one account that is giving me a little grief but I am certain I can get it sorted out. You will spend a little time editing a couple merchants I am sure, but they do recognize Starbucks and even have "Coffee Shop" as a preset category. You can also compare your spending against your local and national averages. I can't wait to get more depth in my own spending to see how I stack up.

All in all I love it and being that I have spent the last 15 years counseling others regarding their financial well being I can finally feel confident I can get past dreading the managing of my own.

*I would also recommend using an extra beefy password and maybe even go as far as establishing a new email account unknown to anyone.

Making Sense of Refinancing

The ads on the radio make it sound incredibly sensible but is it really worth it for you? Refinancing your home is costly and there are important questions you have to ask of yourself and depending on the loan you are currently in different "rules" apply.

1) Are you in an adjustable rate mortgage? -if the answer is no skip to #7.

2) What was your intent when you took out an ARM?

3) What has changed since?

4) When will your loan see its first adjustment?

5) What are the caps, how often will it adjust, and which index is your loan based on?

6) Can you afford the new payment?

7) When is your break even point?

8) How long do you plan live in your house?

9) Why do you think you want to refinance?

10) Are you willing to sacrifice your equity (your money) to do so?

11) A mortgage is typically your biggest liability do you really want to incur more debt?

12) The questions just keep coming don't they?

13) Do you feel secure in your job?

14) What if you have to sell?

15) Would you be more willing to sacrifice your cable and cell phones instead?

What does your gut tell you?

Bottom line this is your home, your money, your future. If after answering these questions for yourself and it still makes sense for you then call me and we can talk numbers. If you don't know the answers to some of the questions or need guidance then call me. The last thing you deserve is to walk away from a transaction and have second thoughts. I need you to sleep at night so that I may do the same. I want to earn your respect, your trust, and your referrals. That my friend means more to me than just closing another deal.

Looking Forward

The smiles on our faces sure weren't there long... Little did we know an extra week (minus a Wednesday) of Winter Break, 14" of more snow, and 3 days without power and water were still in the works for us. I spent my lunch today clearing large branches, twigs, and garbage thanks to our lab from the driveway. I don't know what we will do with all the greenery still in the yard. My garage is piled high with recycling and laundry, my least favorite. Lucky for me mortgage rates always like to dip down when I have the most to do so I get to procrastinate on the laundry until this evening. My point is that I won't miss all of the negatives that 2008 brought upon us... I won't bring up the mortgage crisis, the wonderful hit to our 401k plans, or the bailout... ha ha! Rather I am looking forward to a great run on rates, home buyers taking advantage of lower home prices, and just a better year overall. Cheers!

Mortgage Rates Dip to Lowest Point of the Year

Woo-Hoo! Title says it all & low rates makes for busy originators, enough said :)

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