Thursday, March 27, 2008


Sorry it has been so long since I posted. So many people are sending in questions we don't have time for a lot of other stuff.

I know about all the bad hype from the media about the mortgage market. And, of course I have heard each of our presidential candidates run down the economy over and over again. This happens every election year.

Unfortunately people with very busy lives hear and read all of this and begin to think it is true. We have all heard this: "If you tell a lie often enough people will believe it is true". There you go!

Is our economy a little slow right now? Yes, but it is not in the dumpster.

Are independent mortgage brokers and appraisers the cause of the mortgage scandals? Absolutely NOT. In fact, it is their integrity and concern for their client's well being that helped to fulfill the American Dream.

The real scoundrels are the large corporations, and giant lenders. Don't let me forget to mention the politicians like the New York Attorney General, Andrew Cuomo, who is using the situation to his benefit by "saving the consumer" with new laws that will only hurt the consumer by putting the independent appraiser and broker out of business. But of course he is making a name for himself. What does he care. Guess who wants to run for president in 2012?

Well, enough of that! I received a very simple question yesterday and I am putting it here for a few reasons I think you will understand afterwards.

Question: What is CLTV and LP?

Answer: CLTV stands for Combined Loan To Value. This is used when there is more than one loan on a property. As an example, if the first mortgage is 80% of the appraised value and there is a 2nd loan of 15% of the value, the CLTV is 95%. In the industry we call these Combination Loans.

LP is a term for Loan Prospector. Loan Prospector is a computerised program that reviews and approves or disapproves an FHA, VA, or Freddie Mac loan. DU, DeskTop Underwriting, is a similar program used for Fannie Mae, FHA, or VA loans. When an application is put through these programs, basically, ... sort of, the live underwriter then only has to verify the documentation because the computer has given an approval. If a loan isn't approved because of an unusual circumstance, a lender can chose to do a manual underwriting in which case the loan may still be approved.

First point for posting this is to let you know that Lenders ARE lending money. The mortgage industry is alive and well in spite of the media and presidential candidates. As a consumer you should take full advantage of these unbelievably low interest rates.

Refinancing to lower your interest rate will save you a ton of money. In this women's case, combining her 1st and 2nd mortgage is a very smart financial move and will also lower her payments.

If you are thinking about buying a home there is no better time than now. I really mean like, NOW. As soon as a new president is elected, and it doesn't matter which one, the rates will go back up. I promise you this will happen. It happens EVERY election year. Just make sure you go to a reputable broker and don't buy more house than you can afford.

My second point here is to the industry professional. I get so many questions from people just like this on my Mortgage Underwriters web site that I barely have time for anything else. When I have conversations with these people I really want to see them successful and hooked up with the right people.

Now, I don't originate mortgages or loans of any kind anymore so I try to refer them to someone. I live in Cartersville, Georgia so I do know mortgage brokers and real estate agents here. However, the people that contact me for help live all over the country. There is no way I can make sure they get connected with the right people.

To make matters worse I'm in the middle of putting together some free e-books for the site plus we are going into our busiest part of the year. I was thinking that there has to be a way to make finding professionals in their area easier and less time consuming. So, ... I have this offer.

I have a Professional Directory on my website where professionals can list their company in their geographical location. I normally charge $19.95 for an entire year and they can list in as many cities as they operate in. From now until May 1st, 2008, you can sign up for $10.95.

Do me a favor. Sign up. I get around 10,000 unique visitors a month and most of them are looking for information before they jump into the market. If you sign up, I won't have to search the web to find someone to refer them to. This will save me a lot of time and save you money if you do it today. sign up here, Real Estate Industry Directory

I've lowered the fee on my For Sale By Owner site to $10.95 too. This isn't a high traffic site but there are a few hot spots in the U.S. Texas, California, Georgia and I think Illinois are are the active areas. For Sale By Owner Professional Directory. I also allow real estate agents to list their properties here free.

In the mean time, I'll just keep searching the web.

See Ya,


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