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.

To all those LO's looking at the million job opportunities out there. Here is a list of places you do not want to do retail at in my opinion:

GMAC
B of A
Chase
Prime Lending
Prospect
Freedom

Good places

Caliber Funding
Wells Fargo
or be a broker and own you own business.

Top Ten 7a Lenders in California

Here is the latest top ten SBA lender list for California. This list compiled from NAAGL shows the top lenders in California for 7a gross approvals for the 2011 year to date ending 09/2011

BankName BankStreet BankCity BankState BankZip # Loans AppvGross AppvSBA


CENTER FINANCIAL CORPORATION 3435 WILSHIRE BLVD, STE 700 LOS ANGELES CA 90010 254 230,642,800 191,588,020

WILSHIRE BANCORP, INC 3200 WILSHIRE BLVD LOS ANGELES CA 90010 253 183,096,700 153,569,240

AMERICAN HERITAGE HOLDINGS 7777 ALVARADO RD, STE 515 LA MESA CA 91941 741 160,761,300 132,478,560

SEACOAST COMMERCE BANK 678 3RD AVE, STE 101 CHULA VISTA CA 91910 204 151,010,600 127,518,085

NARA BANCORP INC 3731 WILSHIRE BLVD, STE 1000 LOS ANGELES CA 90010 129 130,198,000 108,235,225

HANA FINANCIAL, INC. 1000 WILSHIRE BLVD, SUITE 2000 LOS ANGELES CA 90017 127 125,580,000 108,045,200

CAPITALSOURCE BANK 633 W 5TH ST, STE 3300 LOS ANGELES CA 90017 93 105,033,000 87,728,550

HANMI BANK 3660 WILSHIRE BLVD PH-A LOS ANGELES CA 90010 71 88,580,700 66,771,000

PACIFIC CITY FINANCIAL CORPORA 3701 WILSHIRE BLVD, STE 401 LOS ANGELES CA 90010 143 87,379,700 72,365,575

OPEN BANK 1000 WILSHIRE BLVD, STE 100 LOS ANGELES CA 90017 83 84,555,400 70,079,390

Purchase market

Well I can't make heads or tails on what these guys are really saying.

  http://video.cnbc.com/gallery/?video=3000068596

That being said, houses are cheap as hell. There are many for sale, but rates are super cheap too? So does that make sense to buy today? Are you waiting for house prices to fall? But we also expect rates to eventually rise. But no one knows for sure.

You need to live somewhere and if you can buy today, you can cover a mortgage with rent today if you get the right mortgage with the right down payment. 

If you feel confident in your own personal financial conditon - buy. If you are unsure, then hangtight...One thing is for sure with housing...pricing will NOT skyrocket anytime soon.

You pay more for your mortgage so MBS prices improve? Thanks Government!?

From today's Rob Chrisman email. Clearly the change in pricing coming down the pipe is starting to wake up most of us originators. Frankly, this is no different than a business increasing prices to improve margins or cut losses. But in this case, since the government is there to prop up the market I am failing to see the point...Unless you read below.

Some Wall Street MBS analysts believe that it is likely that the g-fee needs to increase by another 15-45bp over the next two years (on top of the 10bp increase) if the FHFA changes g-fee level such that it reflects the risk of loss as well as the cost of capital allocated to similar assets by other fully private regulated financial institutions as required by H.R. 3630. The analysts note that conventional securities could be worth .375-.625 more because of g-fee increase's impact on current production, and older securities could be worth 1.5-2.0 points more since it will be more expensive to refinance, so fewer will do it, meaning that the securities are on the books longer.

Make no mistake, your payroll tax cut, that was extended, is being financed by an increase in Fannie Freddie Fees, or what's referred to as G Fees. The press noted 10 bps increase in cost...That is really nothing. The reality is the cost of a comparable rate today versus locking for 45 days can go up as much as 80 bps or .80% of your anticipated loan amount. There you go - enjoy you new tax.

G Fee Increase Read Here

The mortgage broker will replace the the direct lender LO very shortly.

http://www.originationnews.com/blogs/hearing/proof-wholesale-lending-cheaper-1028332-1.html?ET=origination:e2270:31512a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=ON_Bulletin_011312

MetLife - MetDead

No more MetLife mortgages...shocking.

http://www.bloomberg.com/news/2012-01-10/metlife-to-exit-origination-of-residential-mortgages-u-s-insurer-says.html

Filed under...Obama trying to kill the mortgage market

Well the G fee increase of 10 bps is starting to trickle down to the consumer. Wells today announced changes to pricing due to the increase. To save $20 in payroll tax mortgage prices will rise up to 80 bps. Or slightly more than .785% of the loan amount. Put another way on a $400,000 loan the cost of a similar rate will cost almost $4000! Nice job congress!

Wells Fargo wrote "In order for a loan to meet the April settlements, it must close by Feb. 29. The G-fee increase will worsen prices by up to 80 bps depending on note rate." (An 8:1 ratio? Come on...) Continuing, "Wells Fargo Wholesale Lending is staggering the impacts of that increase by Rate Lock Period in an effort to offer lower rates to consumers in the market for as long as possible. On January 11 the G-fee increase will impact 45- and 60-day pricing. You must begin calling Priceline for Rate Lock Extensions rather than extending online for Conventional Conforming loans (extensions will not be available online for Conventional Conforming loans), on 1/31 the G-Fee increase will impact 30-day pricing, and on 2/13 the G-fee increase will impact 15-day pricing. Conventional loans locked prior to the dates above must fund by Feb. 29 - no standard extensions. If the loan extends, you will be charged 55 bps to cover the G-fee plus normal extension fees. Non-Conforming pricing is impacted since pricing is set as a spread to conforming base price."

Rate go Down - Costs go Up - Just because the 10 yr drops doesn't mean mortgage rates will respond alike.

For Rob Chrisman today...

Fannie and Freddie will increase their guarantee fee on all residential loans being pooled by 10bp on April's Fool's Day, but most believe that this increase should start to reflect on mortgage applications in February, if not sooner. Other increases might be needed over the next couple years, especially if g-fees are raised to match what a non-government institution would charge for the risk. Some estimates that I have seen on this are another 15-35 basis points over the next two years (on top of the 10bp increase effective 4/1). Lastly, yesterday the commentary mentioned a buydown ratio of 2:1. As several astute readers pointed out, the actual ratio is closer to 4:1, so a 10 basis point increase could easily cost borrowers 40 basis points, or roughly .125% in rate. And all to support a two month payroll tax waiver extension! One can just shake their heads in disbelief...




A research piece from Morgan Stanley noted that, "The FHFA will need to increase fees again to "make up" for fees not collected in Q1. This increase would depend on how much issuance would occur in Q1 versus how much will be expected in Q2-Q4, meaning if issuance was expected to go up, the additional fee increase could be smaller. In addition, it is likely that the average fees collected for HARP loans will be lower in 2012 relative to 2011 due to reduction in the LLPA cap under HARP 2.0 from 200 bps to 75 bps, and the FHFA will need to "make up" that shortfall as well. There are two ways in which the FHFA could increase fees again: another across-the-board increase, and/or an increase in risk-based fees."



Morgan goes on to say, "As part of the HARP 2.0 program changes, 30-year HARP loans will have an LLPA cap of 75bps (loans with terms of 20 years or less will have a cap of 0. This presents a significant restriction on how many additional fees can be collected from those loans. Any across-the-board fee increase will get passed on to HARP loans as well, in our view. However, any risk-based fees are more likely to be capped at 75 bps. Any future risk-based guarantee fee increase, therefore, must take into consideration how many loans are likely to be refinanced through HARP versus the non-HARP channels."

And if you thought there couldn't be MORE compliance changes, here you go...

Domestic Partnership and Civil Union Requirements
Policy & Addendum

Background 

A number of states have enacted laws that extend additional rights to people who are registered within those states as domestic partners or who have formed civil unions. These state laws have granted registered domestic partners and civil union couples the legal rights and responsibilities that mirror those of married persons for purposes of state law.

In order to meet our obligations under the state Domestic Partnership/Civil Union laws, we are issuing the attached Domestic Partnership and Civil Union Requirements policy.

Effective Date 

We will condition for these immediately.

States Where This Is Required

In order to comply with state property laws, it must be determined during the applicant process whether the applicant is a resident of a state with domestic partnership or civil union rights or if the subject property is located in one of these states. Therefore, Caliber requires a completed Domestic Partnership Addendum to be provided by the loan originator and completed by the borrower in the following states:

·         California – An executed California Combined Disclosure (already required)

·         Delaware

·         District of Columbia

·         Hawaii

·         Illinois

·         Nevada

·         New Jersey

·         Oregon

·         Rhode Island

·         Vermont

·         Washington

Notes

·         If all applicants indicate that they are married on the Loan Application, execution of the addendum is not required.

·         If any borrower is marked “Unmarried” on the 1003, an executed Domestic Partnership Addendum (CA Combined Disclosure in CA) will be required PTD in the states listed above.

And we pass the savings on to you!

Hey way to go congress...Keep making it more expensive for people to refinance and purchase homes. That will help for sure.

You've been taxed!

More positive refinance news

Droiiiiid.

There's an application for that! I guess in today's environment the phone is the new laptop and therefore primary connection to the internet. So it is no wonder there is an app for my blog... and this is my first Droid post.

I updated my site for a little more social sharing ease along with the basics. And that is my mission for 2012 more face time, more communication, less missed calls. Less internet, less email, more phone calls. More marketing and a better focused messages. Those are my professional wants for 12. What are yours?

The business continues to evolve for those of us left. Please make 2012 a great year...

Realtor standards?

I hate to be the bearer of bad news, but it appears the Real Estate industry is still ripe with fraud.

Here is my best advice for sellers trying to sell in today's market. This will ensure you receive ALL offers and not what your Realtor wants to show you. Yes, they are supposed to present all offers, but they may not. How do you really know?

Demand your realtor list your email address in the private comments of your properties MLS listing...assuming they did in fact list it in the MLS and haven't kept a pocket listing.

Simply create a new gmail address at gmail.com show you can trash it after your closing. Tell your Realtor to add this email address for ALL offers in the private remarks section of the MLS listing. This area is only available to MLS agents.  Now you'll know you are getting all offers and prevent your Realtor from selling to a friend at a reduced price.

Hint Hint...This save asset managers from unscrupulous Realtors as well...