Thursday, November 12th, 2009
Intercepted from inter-office emails:
Great News,
We are now offering Fannie’s new HomePath loan program! Let your clients know these improved loan terms to generate new business. Essentially, the program has the clients using Fannie loans to buy foreclosed properties owned by Fannie, therefore Fannie gives improved loan terms to the buyer.
PROGRAM HIGHLIGHTS:
-97% FINANCING WITH NO MORTGAGE INSURANCE ( That’s a lower monthly payment and lower closing costs)
-90% FINANCING ON INVESTMENT PROPERTIES
-NO APPRAISAL REQUIRED SAVING YOUR CLIENT TIME AND MONEY (Value is selling price determined by listing bank)
-CONDO’S AND 2-4 UNITS OK
-TODAY’S HOMEPATH 30 YR RATES AT 5.0%, 5 YR ARM’S AT ONLY 3.875% !!
TO SEE A ELIGIBLE PROPERTIES IN YOUR AREA SIMPLY GO TO WWW.HOMEPATH.COM
Email or call me with client loan scenario’s that can benefit from this awesome program.
Successfully [not Sincerely],
[Loan Guy]
It seems we’ve heard this before?
Tags: buying, Cheap Money, Fannie Mae, foreclosure, Foreclosures, lending, loans, mortgage crisis
Posted in Mortgage/Rates | 6 Comments »
Friday, February 6th, 2009
Where readers ask and we (the community) try to answer.
Can you have someone, maybe “the banker”, speak to the loan environment and requirements for loans on homes over 1 million dollars? Thanks.
Banker? You reading? You can either send us your answer via email, or post in the comments and we’ll cut/paste to the front.
[Update: It took him all day 
, but "the banker" chimed in...]
Jumbos are certainly still available and with a watchful eye and the right advice, the pricing is not absurd at certain institutions. The number that seems to be consistent with Jumbo Financing is a 70% Loan To Value, perhaps some banks may max out at 75%, but most counties are considered to be declining market and stuck at 70%. In terms of product types, these are few, 30 year fixed and a 5 year Arm may be the only two choices left. Within the fixed and adjustable choice, there may be a few interest only options to choose from.
Standard credit requirements are at least 720, Full income verification, and strong asset position, at least 6 months to 12 months of reserves.
Jumbo rates have been all over the board, but I have recently seen mid 5’s, no points, standard Bank fees. But, this is a Bank Loan. . .I am not certain Mortgage Brokers have many options on the Jumbo side of the game as many of there vendors have ceased making this type of loan or have shut down completely.
As we continue to see falling prices, this will be one of the most “cautiously monitored” loans, but as updates occur. . .I will make sure to post.
Thanks!
Tags: lending, loans
Posted in Ask Us, Mortgage/Rates | 8 Comments »
Friday, October 24th, 2008
I recently inquired with Alex if I could post on theFrontSteps. I have written in the past, actually have a degree in writing, but more than that, I think this site is well thought, well done, and has gathered a nice following. My name, TheBanker, says it all. I hope to provide insight, a different twist, and perhaps a bit of truth and reason. Alex has warned me, so, my disclaimer, these are just my opinions, period. Now, on to it. . .enough with the intro.
Now the Shame of it all. . .
Rates are strong. Company earnings this week have forced money out of the stock market and into treasuries causing a drop in the 10 year yield, thus affecting mortgage rates. These days, there is no rhyme or reason in pricing loans, or what we call around here; RISK! So, rates are strong and a slim number of the population can afford to buy(down payments), refinance(income,etc), or eat dinner out. We have been completely stalled by the current state of the market and all the while interest rates are still at fantastic levels and we are running out of time for the Jumbo Conforming Loan changes. . .this is currently $729ish and will be reduced to $625ish.
One last blow. . .E loan is now gone and Downey Savings, one of the negative amortization kings, is also gone. Lastly, Gateway Bank wholesale has also left the building.
My point; rates are good, property is moving at so called “deals,” and we are running out of time!
Tags: banks, lending, mortgage
Posted in TheBanker | 7 Comments »
Thursday, October 2nd, 2008
This by Marc Herrenbruck (No way I could come up with this!):
“Crazy times. Whatever the political posturing, a plan needs to be passed. Credit markets are frozen and banks are going bust every day. This is not totally because of “toxic” mortgages. This has a lot to do with FASB 157, also known as “mark to market”.
Each day lenders must mark their assets to the marketplace. It’s like you having to appraise your home everyday and if your neighbor was under duress because they got very ill, divorced, lost their job and was forced to sell their home quickly they may have sold it super cheap. Now, does that mean your house is worth that super cheap price? Clearly not. Why? Because you are not under duress. You have the time to sell your home and get a more normal price, which more accurately reflects true market conditions. But “mark to market” does not allow for this, which creates a vicious cycle.
Why is this so bad? Because as lenders mark down their assets the amount that they have loaned previously becomes much riskier in relation to their assets. For example, say a bank has $1 million in assets and say they have $15 million in loans outstanding. Their ratio is an acceptable 15 to 1. But should they take a paper write down of $500 thousand due to “mark to market” requirements, their ratio suddenly changes to 30 to 1. This is because their assets are now only $500 thousand after taking the paper loss, while their loans outstanding are $15 million. And at 30 to 1 this bank is viewed as a risky investment. So the stock price starts to get hit, it becomes harder to borrow, and most importantly harder to make money. The bank is then forced to sell some of its loans to reduce its ratio…at cheap prices. And this makes the vicious cycle continue. (more…)
Tags: banks, lending, mortgage crisis
Posted in theFrontSteps | 9 Comments »
