http://mobile.nj.com/advnj/pm_29224/contentdetail.htm?contentguid=vnmFDvbb
#purchase #reverseloan
Monday, February 27, 2012
FHA announces UFMIP and MMI hikes
1.75% UFMIP now versus 1.00% and MMI will increase by another .10%
This is a pretty big jump and will eliminate some from pursuing FHA loans. When at all possible try to go conventional versus fha
This is a pretty big jump and will eliminate some from pursuing FHA loans. When at all possible try to go conventional versus fha
If Warren Buffet could buy a couple hundred thousand homes he would.
Great morning to watch Warren Buffet..He really is credit to our country. If we could vote for an economic president, I would nominate him. Warren spoke today about many things including the tax code, and more importantly to me personally, the housing market which is says has gone through a depression, not recession, and is still the only engine not firing in our economy. He stated that is it were feasible he'd buy homes at a record clip. Clearly he feels the combination of low rates and record home price drops makes this a good time to buy. While a 7% owner of Wells Fargo, Buffet feels the banks have done a good job in the US to shore capital and clear balance sheets. I love this guys plain sense approach to all things including his calls on the economy - We need more people to be vocal and GET the air time to express his beliefs. Great job today CNBC.
Thursday, February 23, 2012
FHA premiums set to rise
FHA is set to get even more expensive.
http://www.insidemortgagefinance.com/blogs/FHA-Plans-Premium-Hikes-1000019018-1.html
http://www.insidemortgagefinance.com/blogs/FHA-Plans-Premium-Hikes-1000019018-1.html
BofA - Drops Fannie Mae - No more sales to Fannie from BofA
Wednesday, February 22, 2012
Mortgage Recruiting the good and bad
I had a looooooonnnnggg conversation with a recruiter yesterday. No I am not necessarily looking for a new job so please don't drop a LinkedIn note, FB, Tweet Me, Poke Me or otherwise socially molest my inbox.
That being said, I think the gentleman from Hammerhouse called about a post on LinkedIn where I basically called out the mortgage recruiters out there. He wanted to explain that his business is about relationships. I agreed with him on most of his points. It's always a good idea to talk to people in related, connected or your personal industry. You just can't beat street knowledge.
Do I think they (recruiters) add value, yes. All they all honest, no. But I think Eric was yesterday. Let's face facts if you are in the mortgage business still, it's feast or famine for sales and marketing people. There are some doing very well, some not so well, and some are on there way out. Operations people have jobs, not making what they did, but salaries and benefits are why people are in operations. Sales takes balls - yeah I said it.
But, the fact is mortgage licenses have increased year over year. Everyone tells you what you want to hear. If you are new to the business you don't know different. If you are a seasoned vet, which I am (scary), then you know people will lie to you in this business. Some have said salespeople are the easiest close. And I think that may be true in many respects. But there is always truth even within a lie. The hard part is figuring our what is what.
Recruiters have contracts with specific companies and are therefore obviously trying to place you within a good organization. They get paid if you are successful and if you aren't then not only does the recruiter lose income, but potentially their reputation, by hiring "Clown shoes" (learned that one yesterday) instead of a seasoned vet with pipeline, marketing, and a working origination platform.
Stay tuned....Let's see what all these recruiters are really worth.
That being said, I think the gentleman from Hammerhouse called about a post on LinkedIn where I basically called out the mortgage recruiters out there. He wanted to explain that his business is about relationships. I agreed with him on most of his points. It's always a good idea to talk to people in related, connected or your personal industry. You just can't beat street knowledge.
Do I think they (recruiters) add value, yes. All they all honest, no. But I think Eric was yesterday. Let's face facts if you are in the mortgage business still, it's feast or famine for sales and marketing people. There are some doing very well, some not so well, and some are on there way out. Operations people have jobs, not making what they did, but salaries and benefits are why people are in operations. Sales takes balls - yeah I said it.
But, the fact is mortgage licenses have increased year over year. Everyone tells you what you want to hear. If you are new to the business you don't know different. If you are a seasoned vet, which I am (scary), then you know people will lie to you in this business. Some have said salespeople are the easiest close. And I think that may be true in many respects. But there is always truth even within a lie. The hard part is figuring our what is what.
Recruiters have contracts with specific companies and are therefore obviously trying to place you within a good organization. They get paid if you are successful and if you aren't then not only does the recruiter lose income, but potentially their reputation, by hiring "Clown shoes" (learned that one yesterday) instead of a seasoned vet with pipeline, marketing, and a working origination platform.
Stay tuned....Let's see what all these recruiters are really worth.
Wednesday, February 1, 2012
Newer Newest New Refinance Program brought to you by you?
In the immortal words of Dan Akroyd, 'Obama, you ignorant slut'. Clearly Obama is bright guy, well he can read the heck out of the teleprompter. But I struggle to find the reasoning behind announcing a mortgage refinance plan that has little to no possibility of being voted on and passed prior to the election?
Is it just so the average Joe thinks he 'cares'? It seems to me that throwing out unsupported programs to the general public during a speech has the appearance of catering to the mob mentality. Mind you the last plan with unlimited LTV has yet to kick off. Why, shockingly, the banks are scared s&^$less. They don't know what's coming next, and oh yeah, banks are going to pay for this new new program too! You thought $5 ATM was steep. According to Jamie Dimon the average bank account costs $300 a year for the bank - slap another tax on those banks and dang it you've got trickle down economics, where the increased tax and banks translate to increased borrowing and banking fees. Do you think the banks will take the hit?
It's 2012, the crisis really began in 2006/2007 and hit hard publicly in 2008. Isn't it a little late to go after the people who were responsible for the crisis? And those people are....well all of us. From the first time home buyer who HAD to have the bigger house; they couldn't stomach a condo! they deserve an SFR. To the mortgage broker who rather than just originate conforming loans (those loans were always available) decides to produce subprime loans, hearing there would be big returns, to the mortgage lender who set guidelines, pricing and loan terms along with the investment bankers who packaged them and sold them to funds who bought these hot potatoes on the hopes of high yield returns for their investors, or the rating agencies who rates this crap AAA. Well they all weren't rated that high, but clearly there appear to be conflicts looking back.
How a stated income loan for a fixed income elderly borrower with less than perfect credit was allowed to purchase with no money down with a loan that had a fixed rate for only 2 years and huge prepayment penalties along with a monster adjustment schedule and life cap is beyond me. Did I originate those, probably. I am no innocent victim here; nor am I am accomplice in a crime. The fact is we all drank the cool aid and believed the ride would go forever..reminds me of a time like the "Roaring Twenties", which was followed by a little period of time called the great depression.
My point, I hope is clear, we were all to blame, and it will happen again, maybe not in mortgage (but probably) but maybe tech again, energy, fertilizer, semi conductors, etc. There will always be bubbles. I guess the only thing you can hope for is you cash-out at the right time. Those are the people who deserve the credit and maybe even some of the blame.
You know come to think about it, its 2012, which mean the 20's are coming, by that time maybe we will experience some roaring growth again. Time will tell, but one thing is for sure, history repeats itself.
Is it just so the average Joe thinks he 'cares'? It seems to me that throwing out unsupported programs to the general public during a speech has the appearance of catering to the mob mentality. Mind you the last plan with unlimited LTV has yet to kick off. Why, shockingly, the banks are scared s&^$less. They don't know what's coming next, and oh yeah, banks are going to pay for this new new program too! You thought $5 ATM was steep. According to Jamie Dimon the average bank account costs $300 a year for the bank - slap another tax on those banks and dang it you've got trickle down economics, where the increased tax and banks translate to increased borrowing and banking fees. Do you think the banks will take the hit?
It's 2012, the crisis really began in 2006/2007 and hit hard publicly in 2008. Isn't it a little late to go after the people who were responsible for the crisis? And those people are....well all of us. From the first time home buyer who HAD to have the bigger house; they couldn't stomach a condo! they deserve an SFR. To the mortgage broker who rather than just originate conforming loans (those loans were always available) decides to produce subprime loans, hearing there would be big returns, to the mortgage lender who set guidelines, pricing and loan terms along with the investment bankers who packaged them and sold them to funds who bought these hot potatoes on the hopes of high yield returns for their investors, or the rating agencies who rates this crap AAA. Well they all weren't rated that high, but clearly there appear to be conflicts looking back.
How a stated income loan for a fixed income elderly borrower with less than perfect credit was allowed to purchase with no money down with a loan that had a fixed rate for only 2 years and huge prepayment penalties along with a monster adjustment schedule and life cap is beyond me. Did I originate those, probably. I am no innocent victim here; nor am I am accomplice in a crime. The fact is we all drank the cool aid and believed the ride would go forever..reminds me of a time like the "Roaring Twenties", which was followed by a little period of time called the great depression.
My point, I hope is clear, we were all to blame, and it will happen again, maybe not in mortgage (but probably) but maybe tech again, energy, fertilizer, semi conductors, etc. There will always be bubbles. I guess the only thing you can hope for is you cash-out at the right time. Those are the people who deserve the credit and maybe even some of the blame.
You know come to think about it, its 2012, which mean the 20's are coming, by that time maybe we will experience some roaring growth again. Time will tell, but one thing is for sure, history repeats itself.
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