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Archive for September, 2009

When I was growing up, people didn’t have health clubs, thigh master, or Richard Simmons. We had Jack LaLanne. Everyone my age will be pleased to know that Jack (born in 1914) is still alive and well, living on the Central Coast in California. Born in San Francisco, his fitness show lasted 34 years on TV, and believes that “if man made it, don’t eat it” and “if it tastes good, spit it out”. Most of his publicity feats involve towing boats — for example, at age 62 to commemorate the bicentennial in 1976 he swam one mile in Long Beach Harbor while handcuffed and shackled towing 13 boats (representing the 13 original colonies) containing 76 people. Go Jack!

This has nothing to do with mortgage banking, but perhaps Wells Fargo should hire Jack LaLanne to be their spokesman. Wells’ stock is down 17% this year, a portion of that coming yesterday when they announced their earnings. (By rough comparison, Citi is down 50%, BofA is unchanged, and Chase is +15% in 2009.) The biggest U.S. home lender said bad loans jumped in the second quarter as the recession made it harder for borrowers to keep up with payments. Assets no longer collecting interest climbed 45% to $18.3 billion as of June 30 from the first quarter, although their second-quarter net income soared 81% to a record $3.17 billion. Wells Fargo added to credit reserves, and continues to deal with the fallout from their acquisition of Wachovia and their option ARM loans, along with losses from defaults in California. One analyst said, “When Wells acquired Wachovia, the company took significant impairments (a/k/a ‘fair value’ or ‘purchase accounting’ marks) on roughly $60bln of Wachovia’s most problematic loan exposures (predominately Option ARMs, but also some commercial real estate (CRE) and other classes), with WB’s remaining $375bln portfolio considered ‘non-impaired’ for accounting purposes. The $5.5bln 1H09 increase in NPAs (to approximately 1.5% of assumed outstandings) for this portfolio doesn’t seem so outsized given economic/housing conditions, especially considering that $54bln of Option ARMs were not impaired in the purchase accounting (as a note 40% of the increase in WB legacy NPAs in 1H09 were residential mortgages, including $1.1bln Option ARMs. An additional 30% was CRE). ”

On the other hand, Credit Suisse Group, who used to be a big Alt-A player, appears to be emerging as one of Europe’s strongest banks. CSFB announced that second-quarter net profit rose 31% on a healthy showing from its investment bank.

Fannie Mae released their Desktop Originator/Desktop Underwriter User Interface July Update last weekend. Users will be pleased to know that it “provides the functionality for users of the DO/DU User Interface to opt out of DU Refi Plus consideration for a loan case file prior to underwriting and submit the case file as a standard limited cash-out refinance.” “As a reminder, users who access DO or DU via an integrated LOS or through direct integration should confirm with their provider or organization about the availability of the DU Refi Plus opt-out functionality depending on when they will be able to support the Product Description field (if it is not currently offered).”

Flagstar officially announced their set of compliance changes due to the Mortgage Disclosures Improvement Act (MDIA) which becomes effective on July 30, 2009. “TILA disclosures now apply to any closed-end extension of credit secured by the dwelling of a consumer. This now includes non-principal dwellings. There must be a seven-business-day waiting period between the date the initial TIL disclosure is provided to the consumer and the closing / signing date of the loan. There must be a three-business-day waiting period between the date a final / redisclosed TIL is received by the consumer and the closing / signing date of the loan. No fees, other than a bona fide credit report fee, can be charged prior to the initial TIL disclosure being provided. Both final / redisclosed and initial TIL disclosures shall contain the following statement. ‘You are not required to complete this agreement merely because you have received these disclosures or signed a loan application.’” Etc.

Flagstar also made a few other changes, including a changed fee structure, changing the maximum loan amounts available for loans with lender paid mortgage insurance (LPMI – the maximum loan amount for any loan with LPMI is now $417,000, regardless of location or number of units, effective for all new Mortgage Insurance Certs issued), and Flagstar also announced a slightly changed pricing adjustments for North and South Carolina VA & FHA loans.

And lock desks everywhere are noticing a slight increase in business. Last week the MBAA reported that applications were up for the third week in a row, rising almost 3%. Refinancing was up 4% and purchases were up about 1%.

Back to interest rates, which don’t seem to be doing too much. Things have improved somewhat in the bond market, however, with Bernanke’s comments that rates will remain low for quite some time. That, of course, doesn’t mean jumbo rates will be at 5% soon, but at least they may not be going any higher. Today we have already had Jobless Claims (+30,000 to 554,000, as expected) and we will see Existing Home Sales at 10AM EST. And later today our treasured Treasury Department will announce the amounts for next week’s sale of 2-yr, 5-yr, and 7-yr notes, along with sneaking in a 20-yr TIPS sale. After the numbers we find the 10-yr yield at 3.52% and mortgage security prices better by a smidge.

Please visit www.californiadirectlender.com for more information and to receive free mortgage quotes and save up to 80% on fees and closing costs. Or you can go directly to our No Obligation Inquiry page www.californiadirectlender.com/Mortgage Inquiry.pdf

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Article Source: Todays Mortgage News

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In order to have a secure future, it is important that you get life insurance and coverage for your mortgage. It is customary for insurance firms to provide individual coverage plans for every type. There is a wide variety of insurance options like: life insurance, mortgage insurance, health insurance, fire insurance, vehicle insurance, and even aviation insurance. Since situations are unpredictable, a specific insurance plan must be developed in advance. Insurance plans furnish sufficient coverage that protects the client and their family members.

Homeowners worry about mortgages. Most people need to take out a mortgage to buy a home. Mortgage companies will pay big bucks for these leads, which represent homeowners looking for mortgages. Homeowners get their mortgages from banks, which publish interest rates on mortgages on a regular basis. Finding the right protection for their mortgaged house is their chief concern after mortgaging their house. Now that you’ve done that, it’s time to concentrate on finding a policy that is the right one for you.

Some insurance companies even provide insurance for mortgage protection. Decreasing term life insurance is also offered under some joint life and mortgage insurance policies. You can purchase special insurance that will stipulate that your insurer will pay off your mortgage if you die, so that your loved ones are not stuck with the bill. In order to ensure full payment on your death, you will have to pay a monthly premium throughout the policy term.

Combined life and mortgage insurance will cover you for a pre-determined period of time, and then will pay you or your family money intended to pay off your loans or mortgages after you die. The monthly premium that you have to pay will probably remain constant, decreasing only when your loan or mortgage is near its term. You are required to request a repayment mortgage, which is partly to pay the original mortgage amount and partly the interest of the mortgage.

Certain businesses will permit you to include coverage for disability. Insurance companies disfavor, and rarely offer, mortgage disability insurance. Only if you were diagnosed with a serious illness that falls under the qualifications outlined in the policy that is how this type of policy will pay out. If you have paid for mortgage disability insurance but do not die before it expires, the policy will never pay you.

There are pros and cons related to a particular characteristic of joint mortgage and life insurance. One advantage is the how reasonable the premiums are. The rate is low because this is insurance, not an investment. Hence, this is the regrettable part. Because there is no investment component, when the term is over, there is no asset left. When the term ends, the policy has zero value.

The combination of life and mortgage insurance is not offered by any company in the United States. This kind of policy is more common in Great Britain.

Renata Lavlor writes about Insurance and other Finance & Real Estate as a staff writer for HowToDoThings.com.

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One of the best kept secrets around for saving money is car loan refinance. However, most people never thought of car loan refinance as an effective way to earn extra cash. So how does a car loan refinance program exactly work? The idea is pretty simple. When you get a car loan refinance program, you pay off your current car loan with another car loan from a different lender that has a lower APR. So basically, a car loan refinance is the same as a home refinance.

Car loan refinance is good for you since refinancing auto loans can lessen your monthly car loan payments. Also, your interest rate drops, allowing you to pay off the balance of your car loan much faster.

The benefits of refinancing are proven when a record number of homeowners refinanced in 2001 and 2002. Today, many car owners are beginning to realize how you can save thousands through car loan refinance, too.

Car loan refinance has become a popular trend especially with today’s dropping interest rates. It’s like stumbling upon a bankroll you didn’t know you had or finding cash in your clothes while doing laundry. With car loan refinance, you pay lesser monthly payments, allowing you to pay off your loan balance faster. Imagine how much you can save on interest alone if you could pay off your loan in say 12 years instead of 15. You can use the extra money you save to pay off credit card debt, or accelerate your car loan payoff.

Car Loan Refinance can benefit even those with bad credit.

It’s true that car buyers with bad credit can obtain car loan refinance as a way for them to lower their APRs. But because some dealers dupe them into thinking that they have no choice but to stick with 21-25% APR, they don’t even think of trying.

Let’s say for instance that you borrowed $16,500 for 60 months on your new Honda Accord and let’s assume that you have a less than perfect credit rating or have had no previous credit. Your dealer got you approved at 21% APR for a 60 month car loan. So you start paying off your car loan for a few months but then you decide to get a car loan refinance with another lender at 6% APR.

Your current monthly payment at 21% APR would be around $446 while your payment for the new car loan refinance at 6% APR would be about $319. The total interest on your current car loan would be around $10, 283 at 21% APR but you can save about $7,643 of that if you get a car loan refinance with a total interest charge of only $2,639.

See how powerful car loan refinance can be for you?

One of the best books that I’ve read on the subprime mortgage crisis has to be one written by Sheri Olefson, a lawyer in the field. Watching here on CSPAN book review prompted me to buy her book, and it was worth every penny. So, I like to recommend it to you as well;

“Foreclosure Nation; Mortgaging the American Dream” by Sheri B. Olefson J.D. L.L.M; Prometheus Books, New York, NY; (2009).

In this book the author explains to us why the entitlement generation has propelled consumers to make such horrendous choices and the government to create such a regulatory nightmare; how this has interfered with free-enterprise and even allowed it to run amuck, promoting unhealthy business dealings.

She starts by showing how everyone in the subprime mortgage collapse was at fault and she comes at this from a legal perspective. She talks about fault from the consumers and borrowers, to the mortgage brokers, real estate people, mortgage companies, rating agencies, investment bankers, FED, banks, bundlers, insurers, foreign banks, Freddie Mack and Fannie Mae, as well as the policy makers, President, Congress, Senators and she spares no one.

There are a ton of interviews in this book, of all involved and lots of advice on how to do it right. How to shop for a mortgage, deal with mortgage brokers, bankers, real estate people. What to do if you get behind, what happens when foreclosure proceedings start, and what the future will hold with the latest round of regulations and changes.

Sheri Olefson, the author, talks about how many of the re-negotiated loans fail anyway, and how many borrowers were duped, or misunderstood what was going on, but still holds the consumers ultimately responsible as well for their choices and their entitlement mindset. I enjoyed the book, as it is very comprehensive and some 500 pages of information. Please consider it.

Lance Winslow – Lance Winslow’s Bio Lance Winslow is also Founder of the Car Wash Guys, a cool little Franchise Company; http://www.carwashguys.com/history/founder.html

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For you to obtain the best interest rates, there is a need for fixing credit score report. There are times that reporting agencies such as Equifax, TransUnion and Experian, may have bad information about you and this will matter much when financing institutions will give their decisions on your application.

In fixing credit score report, you just have to follow some simple steps then go back and grab the terms that you want. There are two most effective ways:
- fixing credit score report through appraisal bureaus.
- fixing credit score report through the lender who made the mistake.

With the appraisal bureaus, initially there is a requirement on your end to discover what is wrong, If ever you were not able to obtain a written copy, you can get a free government data and find out what is said. The next is to collect all the evidences that will authenticate that such appraisal bureau has to do something with the mishap done. Scout for copies of related documents, do not give the original but only those that you have duplicated. It is not easy to file for another replica because it means that you will have to go through the hassle of the process.

After having accomplished it, you are ready to send them a letter with all the legal files and indicated instructions on how they should overhaul the damage done. Enclose your complete name, address, birthdate and Social Security number. Include as well any past names or addresses used during the disputed time and creditor’s essential details. Via registered mail, send the letter. The chief bureaus must investigate the justifiable claims to iron things out. Hopefully, within thirty days or a month, they will be able to respond to your communication.
As an alternative and safeguard, it would be good that you also try to straighten out issues with the financing institution who gave the wrong information. You can send them similar papers you passed to either Equifax, TransUnion or Experian. After a few weeks, you can make a follow- up by calling them and inquire on your status. This will actually guarantee that you would not be meeting complications in your next application.

After everything else, you might be contemplating why there is a need to overhaul your appraisal information account. Well, if you do not have anymore plans of loaning then you can disregard it. However, for those who are still planning to start with their family as to building a house, buying a car and owing a lot then here are the reasons why:
- a clerical blunder in recording payments at one of the financing institutions you borrowed money
- an ex- spouse’s appraisal dilemmas still attached with yours. After marriage, it follows that there is a conjugal agreement between the two.
- you might be a victim of identity theft

What do you mean by home equity line of credit?

To borrow a sum of money against your equity is popularly known as home equity line of credit. You can use this amount to reconstruct or renovate your home, to pay your medical bills, to finance a new purchased home, to consolidate your high interest debts or for higher education of any of your family members.

Is a home equity line of credit is perfect for you?

If you are in need of money, equity home lines might be a good solution to find a credit. First of all, they offer you big cash at comparatively low interest rates. And they can even offer you certain tax deductions, which are not available with other kinds of credits.

But at the same time equity credit line takes your home as security. This step by the financial companies may put your home at risk. If you are unable to refinance within the specified time, you might end up losing your home. At the same time, home equity line of credit offers you easy access to money at times of need. So incase you are confused and cannot decide if home equity line of credit will benefit you in the long run, it is recommended that you consult a financial adviser before applying for a home equity line credit.

How much money can you borrow on a home equity line of credit?

The amount of money depends on factors like:

1. Your monthly income.

2. Your present and past credit ratings.

3. Your outstanding debt.

4. Value of your home equity.

5. The term for which you are taking home credit line of equity.

How to find a low rate home equity line of credit?

1. You should shop around for the best rate available. Try different sources like brokers, banks, and credit unions.

2. Don’t forget to try online home credit line of equity to match the available best interest rates.

3. Compare your rates with rates available in advertisements.

A little bit of research will surely get you a better home equity line of credit.

We have gathered all mortgage info you need to know on one source. Find it only on http://www.leandernet.com/Mortgage/Mortgage.php. All about home loans on LeanderNet – http://www.leandernet.com

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One of the most important investments that people make in their lives is buying a home. California mortgages are guided by factors such as the loan amount, credit history of the borrower and location of the property. California home mortgage lenders include financial institutions such as banks and credit unions.

Homeowners can walk into the office of a mortgage broker or branch office of a financial institution. Another way is to apply online. One advantage of applying through the Internet is that it allows a borrower to compare the rates offered by different mortgage lenders. Interactive calculators are also available online to help borrowers calculate the amount they are eligible to apply for, the monthly payments and the time needed to repay the loan.

There are a vast number of mortgage lenders in the state of California, making it possible for anyone to apply for a home loan. It is also possible for homebuyers with a bad credit score to apply, as there are several lenders that specialize in bad-credit mortgages. No-credit-score home loans are also available, that may further help people with different requirements to apply for a home loan.

There are some mortgage lenders that offer zero-money down payments. This means that the borrower receives 100 percent financing of the loan amount and is required to pay only the interest. Homebuyers may also be able to acquire 103 percent and 107 percent financing in certain cases, depending on their credit scores. For borrowers with a good credit rating, a ‘no doc’ loan is an option that does not require documentation.

It is very important to compare the mortgage packages offered by various lenders. This allows the borrower to make a comparison and select the best possible loan offer.

California Home Mortgage Loans provides detailed information on California Home Mortgage Loans, California Home Mortgage Loan Rates, California Home Mortgage Loan Applications, California Home Mortgage Loan Brokers and more. California Home Mortgage Loans is affiliated with Best Home Mortgage Loan Refinances.

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