The waiter delivering cold food

I just got an email from a client. It's tough to be a salesmen for a mortgage company these days and the latest example is from a client who is asking for a transaction to be approved a certain way. In the old days, I think this deal would be declined anyway (the issue is whether the client plans on occupying a home).

Do I believe the client? Yes, but those are my PERSONAL feelings, not my professional feelings. As a salesperson, we have to take what we are given by operations and spin or use it the best we can. I can see operations point on this transaction, but when do we have to say, an underwriters feelings or the mass opinion on a conference call does not contain personal feelings. Operations personnel make decisions based on facts, but do their personal animosities and personal agendas creep into decisions? You'd have to say yes, sometimes they probably do. For what one persons goals may sounds totally unrealistic and ridiculous to another. And if your underwriter doesn't think what YOU are doing jives with what THEY would do, the potential for conflict arises.

I've long heard inthe news about financial institutions making decision based on race, creed, national origin etc. But I have NEVER personally seen it. I'm a salesperson, I believe and sell what the client tells me. Have I ever looked at the government monitoring and said, wow this guy is black, we better not give him too much money, not even close. I don't care if the client is purple. There is a loan to fund and I want to get paid. So then if any discrimination is being perpetrated, it's being done by the people who generally hold themselves out to be the righteous protectors of credit standards. But they are just people too.

But when operations effectively calls a borrower a liar, what course do you take. There is no other course but the truth. When there is no data or facts to discpute the borrower and no reason exists not to trust the borrower, shouldn't we then believe them?

It's a sad indictment on our profession, but these are precarious times and loans are being funded and repurchased and bought back and repacked again...and then someone finds something wrong and the loan is a buyback? It's almost dizzying. Why would anyone even grant credit- well money of course, but there isn't even enough of that these days. At least not in my pockets.

Sometimes, more often than before, it makes me wonder why on earth I have choosen this profession.

Your rate is floating?!?!??!? Now what do you do?

Rates have really risen quickly catching many of us, including me, left holding a wet bag of floating loan applications. When the loan officer told you to hurry up and get those items to him so he could lock your loan now sounds not so much like a sales pitch, but a true call for urgency on your part.

But don't freak out. Rates are expected to fall back a bit soon. But we may have left the lowest of mortgage rates in the history books. However, no one really knows, including yours dearly.

Here is my recommedation if your loan is floating.

If your loan is for a purchase, you are most likely going to need to lock something -so take the new higher no points rate, and know that historically speaking its a really good rate. If you qualify for a higher rate or adjustable mortgage take it and run.

If you are tight on your debt to income ratio get used to a term called discount points. You'll need to pay some of these to buy your rate down, in other words, get it lower to qualify.

If you are a refinance loan. Hang back, you most likely haven't ordered an appraisal yet and hopefully didn't pay a nonrefundable application fee - so you can wait. Check in daily with your loan consultant and check to see what your rate is for that day. Have a number in mind and when it hits, take it.

Don't be greedy. Yeah I said it. You know who you are. If your rate gets back to 4.5% don't try to hold out for that extra .125% in rate. Take the benefit and feel good. No one times the bottom of a market.

OK, that's all kids.

Ouch 10 yr hits 3.51% @ 92.64 For those of you regular folks..that's bad

We experienced our first 4 rate change day today. Rate are over 300 bps higher than a month or two ago. Refinances are slowing and the pace of decline in values is picking.

What's the bright side you say? Well prices will continue to fall and those with resources and good credit can pick up property with what appears to be a new low in values since the implosion of the Real Estate bubble.

$9 Trillion in home equity lost since 2006

It's a huge number. We all lost about $1.7 trillion in home equity this year alone. This could be good or bad depending on how you look at it. Massive drops in values create investment opportunities. Properties can now be acquired and debt service with average market rents. So you can buy an asset that will eventually increase in value again and the investment will pay for itself while appreciation takes place.

Now if you are a homeowner one way to limit your exposure to your currently underwater or zero equity properties is to buy at today's prices. If you are fortunate enough to be able to afford the qualification buy another home as a rental and use that valuation to offset some of your loses on your current properties. When home values increase you will have achieved appreciation on two properties at an overall low.er cost basis.

Go Rental, Go Investment!, 2011 will be a great year to acquire real estate.

Rate Check Check Check Microphone Check

Wow, what a rate roller coaster these days. Rate are mostly stable this week although higher that the previous 30 days on average. The general concesus it rates will chop around these levels for the near term with a tendncy to rise over the first two quarters next year...which is RIGHT around the corner.

Prudent lending advice is to apply with your lender or broker of choice and float the rate while processing and underwriting take place. All the while you should be working with your lending professional to lock on a dip.

Of course, you can just lock today too...I mena 4.5% at no points for 30 year fixed base rates is still pretty darn good.