The Blog Report

Well, well, well, here I am deep into the Red Flag Rules, the Grahmm-Leach-Bliyley Act, RESPA, TIL, Section 32, Reg Z, Reg X, Reg C, so on, and so on, and so on.  So... how do I feel now? I asked for it, I got it.  Those that know me personally, know that I have been inviting licensing into my industry for years (actually decades, but who's counting?). Well, I got my wish, cause here it is and now I must pass a test that I have not had to do since leaving college 20+ years ago.  Cramming now, doesn't seem to have the same fun I remember from my college days, you know, dorm rooms, funnels, buddy's etc... I have been finding myself hitting the books after work every night for the last 3 weeks, and I must say after 8+ hours of work, it hurts.  But again, I asked for it so I better accept it, and I do.  Not just for me but for you. Yes you, the customer, the Realtor and every other potential client I may have.  Call me old school, but I truly want to offer the best financing solutions available.  I really do believe that this instrument known as a "mortgage" can help us reach our financial goals.  It is not and let me repeat NOT a commodity, if structured professionally by a licensed Mortgage Loan Originator, one who has put the time into studying, to be better, to know more, to offer more, than you may think twice about asking your Banker "whats your 30 year rate" because there is so much more to wealth creation through your mortgage than just shopping rate. 

Ok, well I must go back to the books, I have a Federal test coming up shortly, please wish me well at john@centerpointemortgage.com.

Well here we are, another year gone by and if you are in the Real Estate business as either a Realtor or mortgage professional you probably didn't let the door hit you in the tush.

So where does that leave us?  The first word that comes to mind is "patience". For the first time in decades, the mortgage industry is going through some significant changes, some good and some...well lets just say that is to be determined.  But good or bad, as a Realtor and Mortgage Planner you must practice patience.  We are all learning the do's and don'ts with the HVCC laws and I can say they have mostly been don'ts.  Now even though HUD has suspended the HVCC requirements on FHA appraisal's it is earmarked to start on February 15th, so it appears for now it is here to stay.

As of this writing, we all have to contend with a new Good Faith Estimate and I have yet to see how this will make the industry any clearer for the consumer.  By the way these changes are not just going to affect the mortgage broker, they will affect the mortgage Banker, Realtor and consumer.  Let me give you one example of how the process could be impacted very negatively.  The new GFE now requires the Lender to be held to very strict closing costs figures with very slim tolerances on some items.  The problem is that if there is a delay due to documentation, appraisal, legal work etc..that may lead to a rate expiration. That process will no longer be a simple phone call into the pricing department to adjust.  It will now require something similar to a change order that may trigger a "rescission period" before the new clear to close can be issued. It will have to be determined if the expiration was due to an acceptable condition before a rate can be changed or extension fee can be granted. In the past this was usually handled very quickly and adjustments could be made at the closing table. My suggestion would be to stick tight to 30 day commitment time frames and 60 day closing time frames on your purchase contracts.  It is always better to under promise and over deliver.  At least lets see how the new guidelines impact closing times before we shorten our dates. 

Lets also keep in mind that these are industry changes, the consumer will have no idea that the process and documentation has recently gone through an overhaul, and they probably won't care much since they are focused on buying their new home.  I am planning on taking a "business as usual" approach but will stay very close to the behind the scenes details that our industry is going to experience.  Hopefully excellent communication with Lenders, compliance officers, Fannie, Freddie and HUD will smooth out the bumps.

My suggestion to all Realtors would be to contact your loan officer and discuss the new changes, see how you both can handle questions that may come up and make sure you both are under promising and over delivering.

Good luck in 2010, I believe it will be a great one!

It has been announced today on Fox business news that rates will not only remain stable but may even drop another 50 basis points, the new tax credit which offers the step up buyer a $6,500 tax credit along with the extended $8,000 for first time buyers is going to pump new life into a very volatile real estate market.  ARE YOU READY? Now lets not get too excited because the realty is that you and me the tax payer is going to subsidize this tax credit.  However most of us do agree that this credit will stimulate not only real estate sales but will also add to durable goods sales, real estate tax infusion which should help local districts and our community.  It should help small business and hopefully the overall cost should eventually reach a breakeven or at least a positive dent in our deficit.

Well, lets get past the boring stuff and talk about the exciting opportunities here.  Lets face it, 2009 has been challenging and has also weeded out some people, mostly part timers. And I have always said, there is no room for part timers in this business, or in the mortgage business.  If you are looking to supplement your income call Macy's they can use the Xmas help. Real estate is big business, not for the faint of heart.  I may be offending some but I must say you have already offended your client once you list their property and give them part time service. 

I am expecting to see big numbers for 2010 and I am happy to see that my loyal and very hard working Realtor partners are gearing up for it.  Don't throw in the towel, remember when the going gets tough, the hard working tough get going!

I am announcing now...2010 is The Year Of The Realtor

Please send in your comments, so that we can all take advantage of going "viral"

Wow I just hit over 4,000 contacts in my personal database. Isn't that exciting? I must really be a mover and shaker, you should see my mailers and my postage fees and my marketing and printing costs not to mention the time to proof everything.  How about my xmas card list alone and the personnel I have to hire to get it out.  Boy that Gorilla marketing really taught me allot.  So now I joined facebook, linkedin, myspace, twitter, this blog, my website, all my emails, texting....whew, and dinner is cold again, forgot to eat lunch again, you may know the drill.

So I ask you, how is the W2 going to look this year? Did twitter actually get you a deal yet? How many out of state leads did you have to respond to just to do the right thing and say "sorry I can't help you". I am not trying to be negative, technology is here to stay but can it be possible that we are experiencing diminishing returns?

There is an old saying that keeps popping into my head "get back to the basics" but I have a different twist on it, use technology but include it with a handshake and a smile.  I did a great job building my database, I did a terrible job staying in touch with them.  I mean really staying in touch, with a phone call, or a hand written note or asking them to meet me out for coffee just to check in.  Why is it we will do all these things for new prospects but we won't do it with people that already trusted us and appreciated our services?  When I scowered my list I spent several hours of several days calling my past customers, you know, the one's that trusted me. You know what I got? A lot of disconnected numbers and people who kind of remembered me but already refinanced or bought a new house.  And the funny thing, some of them I actually remembered having a great time with 10 years ago when they bought their first house. 

Instead of a simple phone call to a past and very satisfied customer, I spent countless hours trying to figure out twitter, facebook, linkedin,etc. etc.  All this for people that have yet to experience my first class service.

Well guess what? My texting thumbs are taking a break, I'm going grass roots.  Put on the walking shoes and fill the tank. This is how I became successful and this is how I will remain successful.  I challenge you to walk with me!! Besides the Golden Rule, there is the 80/20 rule and it works.

As always, please send me your comments.

Anyone involved in mortgage banking today no doubt has heard of the struggles that both agency's are experiencing.  In a nutshell Fannie Mae and Freddie Mac are responsible for purchasing probably around 90% of every mortgage originated in America.  Our housing stability relies on their stability as a purchaser of mortgages.  Part of their duties when they were formed was to help low to moderate families secure financing, mainly by letting Lenders know that they would purchase high loan to value mortgages and being a bit more flexable with the underwriting guidelines on community lending programs. Well in less you live in a cave, you have probably heard of their financial woes as of recent (their stock is trading around $1.65 from a high of $62.00).  They have stopped purchasing several types of mortgages (which in some cases I do agree with) but what I don't agree with is the fee income they are now charging certain borrowers.

So their answer? Stick it to the consumer. And I do mean stick it. As a mortgage planner for 23 years I have never experienced such a travesty in "junk fees".  Whether you agree with FICO scoring or not, it is here until somebody proves a better way to show an individuals credit worthiness. But what angers me the most is the continuous raising of the credit score bar.  680 used to be a pretty darn good score, 700 was exceptional, and 620 was the starting tier for most mortgage products.  Today two of these scores will cost you dearly and the 620... sorry no mortgage for you. 

So how do we fight back? Fix your credit now! Raise your credit score, do what ever you can to get old negative tradelines off your credit profile, make certain you are paying your accounts on time.  I just heard a radio spot the other day offering a great car lease deal if your credit score is above 745.  This is getting crazy!  The most frustrating part is that almost everyone of us may have an erroneous account on our credit report that we are not even aware of, lowering our score right now.

Today I will share with you my endorsement of a company that will sift through the credit maze, offer you a personal credit coach and more than likely repair your score.  I have never endorsed a company outside of my business in my 23 year history.  But I am disgusted with some of my clients paying hundreds and in some cases thousands of dollars in mortgage fees that may be avoided with some credit score management.

If you have been in this situation or know of someone in it right now, please visit www.ficofixservices.com it may save them thousands of dollars and get them on the path to credit restoration.

I can be emailed directly at john@centerpointemortgage.com

Lets fight back!