So glad Barclay's, a reputable company, bought Lehman

The mortage broker ruined the globalo economy. I got tired of hearing that over the last several years. As we all learn from the economic diasaster that was 2007-present, it is clear to me that some things will never change. And somethings are the insatiable greed of our best and brightest in the financial world. Whether it's a $50 billion dollar ponzi scheme or trillions of dollars of loans that should never have been made. You can be sure that where there is a will there will be someone making the way. In today's case of greed and corruption - I give you pure cost of money manipulation....And huge settlements, err I mean payoffs to the government. I can guarantee you the banks made more with the fraud than with the penalties and fines they paid. So was this a good business decision? And is a business decision always good when it makes money?

http://finance.yahoo.com/news/barclays-pay-400m-plus-settle-130159247.html

What does it mean rates will stay low for the near-term

I swear the ubersmart financial prognosticators of the world have a way of stating opinions with out every being specific. A client commented to me yesterday that he was going to wait a little and try to improve his credit scores, as he said, "I think rates will stay low for a long time, so I am in no rush". It is true that rates will probably stay low for a good amount of time (see I did it there too).

The real question of course is, what is "low"?  Well everything I read means low rates are considered lower than 5%. Around 29 million people still have mortgages over 5%. Big number. So clearly many have not, or been unable to, take advantage of today's super-duper-duper low rates. These rates are artificially low, and as such, any delay in taking advantage could be foolish and just a plain bad decision financially.

The government is buying the vast majority or mortgage production and they are continued to be involved. But big changes to banking rules and the projected devaluing of residential servicing for the depositories could spell big increases in the cost of mortgages going forward. Any increased incosts for banks and non-depositories will be directly reflected in the rate and price of mortgages.

I've sold double digit mortgage rates. I've seen rates rise 4% in a year. Don't think it can't or won't happen again. I can promise you, that by the time you realize mortgage rates have risen dramtaically, you will already be too late.

A bird in the hand is worth two in the bush.

Summer Lending...happened so fast...

The beach was perfect this weekend. These are the weekends you really have to wonder why everyone doesn't live in California. Rates continue to stay low and the Fed recently announced continuation of the Operation Twist, which is basically providing funding for all you guys refiancing your mortgages. I find it ironic. Twist, implies to me, to manipulate, and I think that everyone would agree the markets are manipulated. So you want your piece of the government cheese? Then refinance your mortgage that is underwater or purchase a new primary residence with 1% down. Or buy a investor property with 10% down. Financing is out there, and the market is being manipulated to keep that borriwing as cheap as possible. Take advantage.

A real estate bottom?

Harvard Study: Bottom Has Been Reached It's one thing when special interests declare "the end" of the housing debacle, but it's another when such an august organization as the Joint Center for Housing Studies at Harvard University calls the bottom.

QEIII...doesn't look like it yet..rates are still lower today...amazing.

The U.S. economic recovery faces significant risks, including from the European sovereign debt crisis and uncertain U.S. fiscal policy, Fed Chairman Ben Bernanke said in testimony prepared for a congressional hearing on Thursday.

The Fed chairman stopped short of signaling Fed action to combat these risks, other than to say that the Fed remained “prepared to take action” to protect the U.S. economy and financial system if stresses on the financial system escalate.

HARP refinances

Very specialized. Apply on my website today. Www.michaelfoote.com ....also QEIII comments coming shortly.

HARP refinances topped 180,000 in the first quarter of this year compared to approximately 93,000 in the fourth quarter of 2011. Last fall, of course, was when several changes took place: the removal of the LTV ceiling and the elimination/lowering of fees for certain Fannie or Freddie borrowers. Per the FHFA, one in seven refinanced loans during the quarter was through HARP - in March alone, there were nearly 80,000 HARP refinances, a quarter of them on loans with LTVs greater than 105 percent. More than 4,400 loans with LTVs greater than 125% were refinanced since the beginning of the year; over half these loans were refinanced in the states of California, Florida and Arizona.

June Gloom? Not really.

Will the Fed lower rates further? Are we in a recession... again? Is Europe screwed? The answer is probably yes to all three. Rates are just ridiculous, programs are extremely liberal. Believe me, the news talks about it being hard to get a loan done, and it's not. And while it can be a slow process, there are amazing programs available today, and many of these programs can't be offered by the big banks and large direct lenders. Your mortgage broker again, can provide the best value. FHA, Conventional, Super Jumbo, VA, Portfolio, Investor Purchase and Refinance, HomePath, HomeStyle, 203K, HUD $100 down....Heck we even have a bank statements as income documentation program these days. 

Want to check out a great CPA, vist www.hayniecpa.com and ask for Mike Zurovski, a great guy and very talented.

On to personal news. The CrossFit/Paleo diet combo is starting to take hold. New record weight of 219 down from 250 two years ago, and now the weight drop is starting to pick-up speed. I have to say dieting is the hardest part. Just this morning we had donuts for Dad's day and I obtained from my free Crispy Creme deliciousness... No heart burn and wasted calories, but passing on a donut, let's be honest, is just sad.  And going out with the family for dinner and special occasions makes it hard to not "give in". Last week was a bit choppy with ball games and dinners...Definitely paying for it this week. But we are committed and staying on track, are you?

Looking for a great Real Estate firm, try California Property Resources, serving selected California markets.
Specializing in distressed situations. They like the tough stuff!

Borrrrring...but still an amazing time.

Mortgage rates haven't changed much lately. The good news of course, is rates are still incredibly low.
Purchase activity seems to be picking up in Orange County and many of the areas in California especially in the lowest priced home markets.

Nothing really new latly, except the expansion of the HARP refinance program and increased FHA mortgage insurance premiums.  If you need a lower rate and haven't applied recently or been turned down over the last two-three years. Now is a great time to have someone check your individual situation (like me of course).

There are a few jumbo programs coming to the market and we are seeing some increases to LTV requirements - which is just higher leverage. Many programs are available with 85-90% leverage for high net worth individuals requiring financing for luxury properties. 

I love closing loans for new buyers and new realtors in the same transaction. We had a few of those last week and if you are new to real estate or require a very high level of interaction with your lender/broker. Then consider this company.

Please Mother May I...talk about what's happening in the mortgage and real estate industries

Well to start a new month, I've decided to start a Paleo diet. Wish me luck and I apologize in advance if my blog reads a bit cranky...But you eliminate your cream and sugar from your coffee, starches, legumes, dairy and see how you feel...it changes you... ;)

Did you know reverse mortgages can be used to finance the purchase of owner occupied residential property? Click on the link above to see how the reverse mortgage structure works.

Home prices are still falling, albeit much slower that in previous years. Buyers of some residential properties purchase from 2009-2010 are already underwater. This isn't true for all neighborhoods and you should remember to consult a local Realtor when you want specific market information click here to find our if you are in the black or in the red.

Recently we've been doing a number of purchase transactions and if you are a Realtor or a Buyer/Borrower, work with a licensed mortgage banker who specializes in purchase transactions. Your refinance chop chops out there do not have the experience necessary to faciliate a purchase mortgage or have knowledge of all the additional moving parts. Work with a mortgage banker WITH a real estate brokers license. I don't do Real Estate, but understand the Realtor and Buyer needs better than most.

OK, as we close out the month end and head into May, it's always good to note the big changes out there and the good news bad news going forward. The good news is rates are still fantastic and look to remain near these levels for the near term certainly. And mortgage companies are making good money along the way. So why when money is cheap and profits high would MetLife exit forward mortgage originations and reverse mortgage origination last week. Clearly, the Dodd Frank Act is making those "too large" to fail institutions just too interconnected with the government. And in MetLifes case, why originate when its only 1-2% of their earnings AND have the governement up your craw making decision with and maybe even for you.



So why do I bring this up? The reality is it can be tough for many people to find consistent service, rates, programs. With so many companies going out of business or closing business divisions, the borrower needs to find a single person, licensed, educated, experienced that udnerstands the industry, products, and the details. Today, mortgages are technicall and demand expertise to makes closings smooth.

California DRE warns of property deed scams

A serious warning from the State of California. Last week the California Department of Real Estate (DRE) issued a warning about property deed scams, which are apparently on the rise thanks to the depressed economic climate.  The Consumer Alert that DRE released notified homeowners of a number of red flags that indicate fraud: changes made to a recorded document after signing ("Is that my signature?"), recorded documents signed by a deceased person ("Look - Marilyn Monroe's autograph!"), documents indicating that the a portion of the property was sold without the homeowner's knowledge ("Who's living in our front yard?"), receipt of documents for a mysterious loan or transaction ("We owe how much to who?"), or receipt of a Notice of Default or Trustee's Sale when the property is owned outright ("What happened on the courthouse steps?") are all tip-offs. Seriously, the California DRE encourages homeowners that experience any of the above to notify the County Recorder's Office and their insurance company if their title policy covers forged deeds.  It's also worth contacting local law enforcement, as the District Attorney offices in several counties now have real estate fraud divisions, and, if the real estate broker or salesperson is the likely culprit, filing a complaint with DRE itself.  Employing an attorney familiar with real estate law is advisable, as they can help with annulling or voiding bogus deeds.

FHA deadline fast approaching. The difference waiting may cost you thousands.

APRIL 9TH FHA will start requiring new up front AND monthly mortgage insuarance  factors. The difference is potentially worth tens of thousands of dollars over the life of the loan. Email me today for a quote and to get your case number assigned Michael@michaelfoote.com

FHA Streamline Refinance MIP refund chart

Curious about FHA UFMIP refunds? What is the calculation for refunds on FHA loans up front mortgage insurance.

Don't call it a comeback I've been here for years

From Rob Chrismans email today. Are mortgage brokers making a comeback? After the financial crisis, drop in originations, regulatory tsunami (a "Reg-plosion"), and the recent exit from the sector by many large institutions, many thought the days of the mortgage broker were numbered. However, it may be too soon to count them out. According to the Q4 2011 Quarterly Data Report from the NMN, third-party originations jumped to 11.4% of all originations, or $51.3 billion, up sharply from the $29 billion brokers originated in the third quarter. Going back the previous five quarters, market share was 8.2%, 7.9%, 6.8%, 10.7%, and 11.8%. Putting things into perspective, broker market share peaked at nearly 30% in 2007. Perhaps reports of the brokers' death were exaggerated.

Changes you may not have heard about.

With the new settlement with the banks, states and lenders are expecting to see in increase in approved short sales. Since the amount of the settlement includes deductions for approval short sale deficiencies.

It looks like your entire california property tax bill is not going to be tax deductible. With the 2012 tax bill you see a breakdown between regular property tax and special assesments which are no longer tax deductible.

Also, in what may be an even bigger announcement is that mortgage insurance will also no longer be tax deductible after the expiration of that rule and 58 other. Congress failed to nenew these rules in December. Thanks! I love backdoor tax increases.

If there is good news it is that rates are still very good, the HARP II refinance is picking up steam. FHA is still offering loans to credit impaired borrowers.

Any day above ground is a good day!  

Treasury Makes Bank

Remember all the hub bub when the Treasury announced they would purchase MBS to support the mortgage market...everyone worried it was just more wasted tax dollars. Well today announced the completion of of the orderly windown and turns out they made over $25 billion from investing approx $225 over 2008 and 2009. That's a 10% return.

Where's our cut?