FHA lenders are beginning to implement some new guideline overlays.  Watch the video and be prepared to coach your clients accordingly:

Ok, so Taylor, Bean and Whitaker has officially announced the ceasing of all origination operations.  If you are a Realtor, please make sure you’re clients are placed somewhere else quickly.  Again, none of my loans in process are being underwritten by Taylor Bean.

If you have any questions or need help finding a suitable source for your loan or a clients loan, please don’t hesitate to contact me.

TBW Press Release:

PRESS RELEASE

TAYLOR BEAN MUST CEASE ALL ORIGINATION OPERATIONS EFFECTIVE IMMEDIATETLY

Ocala, Florida – Taylor, Bean & Whitaker Mortgage Corp. (“TBW”) received notification on August 4, 2009 from the U.S  Department of Housing and Urban Development,  Freddie Mac and Ginnie Mae (the “Agencies”) that it was being terminated and/or suspended as an approved seller and/or servicer for each of those respective federal agencies.  TBW has unsuccessfully sought to have the termination/suspension decisions of each of those agencies reversed.    As a result of these actions, TBW must cease all origination operations effective immediately.  Regrettably, TBW will not be able to close or fund any mortgage loans currently pending in its pipeline. TBW is cooperating with each of the Agencies with respect to its servicing operations and expects to continue to service mortgage loans as it restructures its business in the wake of these events.  We understand that this could have a significant impact on our valued employees, customers and counterparties, and are very disappointed that a less drastic option is unavailable.

As I mentioned a few weeks ago, President Obama’s American Recovery and Reinvestment Act included a new program for struggling home owners.  The existing modification program for those who are delinquent is still available, but now there is a program geared towards those who have continued to be responsible with their mortgages, but simply don’t have the equity in their home to take advantage of today’s low interest rates.

The website financialstability.gov has been around since the signing of the new bill, but the Obama Administration has yet again expanded what I’m calling the “Government 2.0″ efforts with the new website makinghomeaffordable.gov.  This website allows home owners to check eligibility for the new program and offers a handful of other helpful tools.

Although the program will only help a select group of Americans with Fannie Mae or Freddie Mac loans the website will likely be a good resource for those who are struggling.

As with any real estate or mortgage related questions, I am here for you.  If you have any questions regarding any of these new programs or about your current financing scenario please don’t hesitate to contact me.

As 2008 comes to a close its easy to look back and say that we’ve undergone a significant amount of economic change.  Change is constant and will never come to a halt, but 2008 has brought forth more changes in our economy than we’ve seen in a couple of decades.  The changes we’ve seen in the last decade have lead to the change we’ve seen this year.  I could talk for days about the lackadaisical lending patterns that lead to our current economic state, but we’ve all heard enough of that in recent months.  The emphasis now needs to be about education on how to move forward.

The education needed in today’s society has to start as a foundation for our youth.  I believe strongly that financial education should be established prior students graduating from high school.  The current lack of financial education has led to our dismal state of consumers with literally no sense of financial responsibility.

As I’ve said in recent posts it’s important to be educated about credit, budgeting, and financing.  In regards to mortgages, it is especially important to be educated about the needs to obtain credit and the responsibility of managing the privilege of home ownership.

Please stay tuned in the next few weeks for some great tips and tools for financial education as we enter the new year!

Have a safe and fun New Year!

On November 26th I mentioned in my post that Treasury Secretary Henry Paulson made an announcement that the Treasury would buy additional mortgage backed securities from GSEs (Fannie Mae and Freddie Mac).  To read more about that article click on Help For Main Street. As we’ve heard several announcements about help for our economy over that last 6 months, my main focus of Help For Main Street was the lasting affect of the announcement.  With recent announcements we’ve seen pockets of opportunities, not lasting for more than a day or two.

Today, Thursday December 11th, 15 days later, we’re still seeing the benefits of the help from the Treasury.  Mortgage rates have dropped to a four year low.  We’ve seen the 30 year fixed no higher than 5.5% (5.625% APR) since the announcement.  There has been a few days in the past two weeks when rates have dropped as low as 5% (5.126% APR).

The future of the mortgage market and Treasury announcements is unpredictible, thus making it important to be prepared to make a move now or to be prepared to make a move when it is necessary for your individual situation.  The key to taking advantage of this amazing opportunity of low mortgage rates is preparation and education.  If you are thinking about purchasing a house, these lower rates may help you afford more or make the price range you were thinking about more affordable.  If you currently own a home and pay more than 6% on your mortgage, it is definitely worth inquiring about the possibility of refinancing.

To contact me today feel free to email me or call my direct line at 503.798.9183.

The FICO score, implemented by the Fair Isaac Corporation, is the score lenders use in analyzing your credit history for most credit products.  The score is reported from the three major national credit reporting bureau:  Experian, TransUnion, and Equifax.  The credit scores analyze the credit related information on the credit reports.  Each bureau varies in their calculation.  Below is a basic breakdown for the FICO analysis of your credit history.

The percentages are not exact, but close estimates to the way a FICO score is analyzed.

1. 35% – Your payment history: Have you paid yoru credit accounts one time?  Late payments, bankruptcies and other negative items can hurt your credit score.  But a solid record of on-time payments helps your score.

2. 30% – How much you owe: FICO scores look at the amounts you owe on all your accounts, the number of accounts with balances, and how much your available credit you are using.  The more you owe compared to your credit limit, the lower your score will be – this is considered credit utilization.

3. 15% – Length of credit history: A longer credit history will increase your score.  However, you can get a high score with a short credit history if the rest of your credit report shows responsible credit management.

4. 10% – New credit: If you have recently opened or applied for new credit accounts, your credit score will weigh this fact agains the rest of your credit history.  FICO scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur.  If you need a loan, do your shopping within a focused period of time, such as two weeks or 30 days, to avoid lowering your FICO score.

5. 10% – Miscellaneous factors: Several minor factors also can influence your score.  For example, having a variety of credit types on your credit report – auto loans, mortgages, credit cards, personal lines of credit – is normal for someone with longer credit histories and can add slightly to their scores.

Credit scores are an important part of your financial foundation.  If you have questions about your credit or need to obtain some useful resources please don’t hesitate to call or email conrad(at)conradventi(dot)com.

For more information about your FICO visit – www.fairisaac.com

Consumer spending dropped 0.3% in September, the largest decline in four years.  July and August showed no change in spending.  The standstill and slide in recent months represents the purchasing activity of US consumers.

In recent years, the growth and abuse of consumer credit has caused the US economy to be dependent on consumers borrowing to purchase goods.  According to the Federal Reserve Board, the average consumer debt (credit card debt) per household has reached $8,565, an increase of 15% since 2000. Disposable income required to be set aside to pay for household debt (credit cards, auto loans, etc.) stands at 14.5%, compared to 11% in 1993.

Not only has consumer spending correlated with taking on credit card debt, but the consumer savings rate has also significantly decreased.  The Bureau of Economy Analysis reports the nation’s savings rate, which exceeded 8% of disposable income in 1968, now stands at 0.4%.

The American mindset, “buy now, pay later” must end!  Many are finding that they simply cannot live this lifestyle any longer because it is becoming increasingly difficult to obtain more credit.   The high default rates have affected the credit markets in such a way that they have re-standardized credit requirements.

Now is a great time to analyze your personal finances.  Before the holiday season is in full swing sit down and look at your budget.  If you don’t have a budget now would be a great time to start one.  Please email conrad@landmarkmortgage.com or call if you need help setting starting a budget or just want a few helpful tools.

I mentioned in my post on Friday that the report for US existing home sales came in higher than expected at a gain of 5.5% over 2007. The number is encouraging considering the current state of the economy. According to Willamette Valley MLS, local home sales prices are showing a small decrease of 2.5% from 2007. With a gain in home sales and a small decrease in value, the numbers show that people are beginning to take advantage of the opportunity at hand.

With the financial markets trying to find some direction and the government’s intervention into those markets, we have obviously entered into an economically unstable time. Although times like these make it easy to point out the obstacles for each of us, I think it is more important to find the opportunities.

We are fortunate to live in the Willamette Valley where home sales didn’t appreciate at too abnormal of a pace. We are still greatly affected by the downturn of the real estate and mortgage market, but the recovery will be much less painful than those in areas where values were ridiculously abnormal.  Opportunity is knocking for first time home buyers or those looking to start an investment portfolio.  Although, it is not the best time to think about upgrading your home (simply because you won’t maximize your investment on your current residence), it has never been a better time to buy your first home or investment property.

Many have the excuse that financing is not available, however, that can be overcome with education and planning by a knowledgeable resource.  With a plethora of homes currently on the market in the Willamette Valley, values are competitive and sellers are motivated.   New construction is also an area of opportunity.  Many large builders in the Salem area put their efforts into 50+ unit subdivisions.  Unfortunately, much of the commercial financing used for construction is longer available.  Builders too are motivated, making yet another opportunity for someone looking to purchase.

If you want to discuss opportunities that may be at your finger tips please don’t hesitate to call or email conrad@conradventi.com.
Don’t forget that opportunities are never lost…someone will take the ones you miss!

What:
For those of you who have recently heard there is no longer any 100% financing program available, think again! The United States Department of Agriculture (USDA) has a loan program targeted for rural communities. Yes, I know that they stamp the approval on the beef that we eat, but they also govern several non-food related sectors. The program is similar to other mortgages offered by Landmark Mortgage. Much like an FHA loan, USDA does not service the loan. The government entity provides a security or guarantee to the bank. If the borrower were to default then USDA will step in and fund the loss to the bank.
Who:
The USDA rural development home loan program is available for those who are looking to purchase a primary residence and do not own any other properties. It is a great option for a first time home buyer. To qualify for the loan the borrower’s income must fall below the maximum income limit based this size of family and county in which the property is located.
Where:
In the Willamette Valley there are several great opportunities for this program. With “rural development” being the key term in this program, it is important to know that most Salem, Keizer, and Albany homes will not qualify as being located in rural communities. However, most towns surrounding these areas qualify. USDA states that most towns with a population less than 25,000 should qualify. To check if a specific address is eligible for this loan visit the USDA property eligibility website.
Why:
Because other than the government guaranteed VA (veterans) loan, USDA is the only other option for 100% financing.

For specific details about this program or to see if you qualify please feel free to contact me at conrad@landmarkmortgage.com.

I had an interesting conversation with one of my family members today regarding current state of available mortgages.  Dino Venti owner of Venti’s Cafe in downtown Salem has been building his loyal clientel for nearly 13 years.  When you step into Venti’s you feel a sense of community among the regulars – it definitely has that “Cheers” type of atmosphere.  Having the face to face contact with customers nearly every day for the past 13 years, Dino has established many friends and acquaintances in the Willamette Valley.

He mentioned to me this evening as I was picking up my Boulder Bowl and Teriyaki Chicken for dinner, that he had a client tell him today that there are no mortgages available for people who have a credit score less than 750.

We’ve all heard, seen, or read about the housing industry and the changes in lending from banks.  As I mentioned in my post titled “Yes, You Can Still Get A Loan!” there are plenty of loans originating in these harsh economic times.

Communication is a key element in every aspect of our lives.  The media’s job is to communicate the message to the people.  How that message is interpreted by the people can vary on many levels.  In times when there is a massive amount of information flowing from every source of media imaginable, it is vital to understand where you stand in the midst of the changes.  The lack of financial education in our country has been prevalent for so long that we’re now dealing with the consequences.   Education is the tool that must be utilized to understand the meaning of what we hear, see, and read.

If you have questions about how the changes in our banking, mortgage, and real estate industries affect you, please don’t hesitate to ask!