Mortgage Melt Down - Who's Fault?

The Real Culprits In This Meltdown from Investor's Business Daily

FHA Gift Funds - HR 6694 - New Hope

I'm sure everyone is aware that on Oct 1st, HR 3221 will put an end to seller funded gifts for a buyers down payment on an FHA mortgage. The gifts are generally channeled through Nehemiah or Ameri-dream. There are strong arguments on both sides of this issue and I won't bore you by going into them here.

I was about to update my websites when I ran across an article on inman.com: Congress weighs reprieve for seller-funded gifts. HR 6694 would allow builders to continue providing down payment assistance.

I'm not sure how I feel about this yet but I will say the proposal does add more control or safe guards if you will, for the program. HR 6694 will allow borrowers with credit scores of 680 or more to use seller-funded down payments. A credit score of 620 to 680, if using down payment assistance would pay higher insurance premiums.

Borrowers with scores lower than 620 will not be allowed to use these gift funds until sometime in 2009 if HUD wants to expand the program. The issue here is FHA's insurance requiring taxpayer subsidies. The article goes into more detail so you should go read it.

I do like the controls they are trying to apply. I would do one more thing if I had a voice. I would make these gifts direct to the borrowers at closing and eliminate channeling it through Nehemiah or other such organizations. These organizations charge a large fee which helps to inflate the loan amount. Put it in the guidelines and eliminate the unnecessary middle man.

Home buyers with good credit need access to mortgages with no down payments. If HR 6694 does not go through median income families do have another choice that many people don't know exist. That option is the 100% LTV Rural Housing Loans. It is a very good loan and easy to qualify for. Go to this website and review the benefits and guidelines. 100% housing loans.

Zero Down Payment Mortgage

100% financing is still available in the mortgage market. I know, you listen to all the financial doom and gloom from the media and you would think every lender just locked their doors and went home. It's not a good situation but it is not as bad as the media wants you to think.

Remember, it is also an election year and every election year, both political parties talk about how bad the economy is until we believe them. Then one is elected and they save the day, ... and the economy. Don't ya just love it!!

Here is a news flash. People are still buying homes. Yes, mortgages are available and everyone should realize that this is the best time to invest, or purchase a home. (When the price is low.) Have you ever heard the term "A Buyers Market"? That is what we have here.

History shows that Real Estate and our economy runs in cycles. Back in the late 70's and 80's it was a 4-5 year cycle. You could graph it. Then, when the sub-prime loans were forced on lenders (early to mid 90's) by government regulation the cycle changed. They became longer and were more intense until it all caught up with us and here we are, like it or not.

I don't like it either but more than that I am tired of all the finger pointing and blaming, and dreading, and media hype. I don't believe a "bail out" is the answer but obviously, it is not my choice or yours, or we the people's choice. Our elected officials will make the decision and base it on "no stronger ground" than what you and I base our own opinion on.

Alright all ready! So do it, what ever it is, so We The People can get over it and move on. We have been through worse times and we will survive and prosper. I think it is in the DNA of the USA. (sorry, that was really bad) We survive in spite of the people we have elected to office.

If you must have 100 Percent financing it is available, ... just not in the form of previous no-doc, no-verification sub-prime loans. You have several options. FHA, VA, Rural Development, or special products based on perfect credit and stability. The USDA Rural Development product is one that few remember or know about.

USDA Rural Development has two programs: Direct and Guarantee. Their Direct program is a mortgage provided directly though the rural development office and your income can only be 80% of the median income for that area.

The Guarantee program on the other hand is provided by USDA approved lenders and Broker originators. It is a guarantee program, there is no subsidy or recapture, and the income restrictions allow up to 115% of the median income after special adjustments.

This is a 100% LTV mortgage based on the APPRAISED value, not the purchase price. The credit guidelines are very flexible and the guidelines have no minimum buyer commitment and no maximum on seller concessions. Note: some lender policies may be stricter here and USDA will always respect the lenders prerogative.

OK, so let all of us get over the failure of our market, roll up our sleeves and move on to a brighter future. Remember, NOW is the best time to purchase, during a buyers market!

You can read more about the guidelines for the rural housing mortgage at: zero down payment

FHA Rescue Program - FHA Secure

The Housing Recovery Act of 2008, H.R. 3221 has the consumer and mortgage professional in a state of total confusion. This recovery act is suppose to be the answer for all the wrongs in the mortgage industry. It is so over hyped and misunderstood. My personal opinion is that it is a total boondoggle put together by a bunch of politicians to further their own agenda or make themselves out to be hero's, or to get their names in the headlines.

I get questions every day like the following: "I have a $40,000 tax lien on my home, can I get the FHA Rescue program??"

This individual was actually referring to the FHA Secure Program which was available in September of 2007 and will terminate December 31, 2008. (Mortgagee Letter 2007-11)

This is a good program but it too is overstated and misunderstood. FHA Secure does NOT modify or waive FHA underwriting guidelines and requirements. For a better understanding of this program you should read the mortgagee letter here.

Always,

Connie

102% LTV Government Guarantee Mortgage

I just came from a training class on a mortgage product I was totally unaware of. It is the USDA Rural Development Loan. Wow, those of you that follow my blog know that I am an advocate for the FHA Mortgage. It is a great loan and always has been.

But this loan product I have to say is better than the FHA program. The USDA Rural Development program is focused right on median income families. Here are some of the highlights:

• Funding up to 100% of the APPRAISED Value, not purchase price, or 102% if financing the 2% guarantee fee.
• There is no private mortgage insurance. (this is a big deal)
• Purchase loans only
• Flexible credit guidelines and income ratios
• There are income and property location restrictions.
• no reserves required
• no maximum seller concessions or gifts

Income restrictions mean if you make too much money you can't have one of these loans. Yes there is a debt ratio standard and that is 29/41 or if the home was built to 2000 energy code that can go to 31/43.

Property restrictions are based on location. This is a rural development program so as you can imagine, homes in large cities don't qualify.

The credit guidelines flexibility is totally unreal. If you have a credit score higher than 620, trade line information is irrelevant and not considered. Yes, that means late pays, collections and judgements. Bankruptcy and foreclosures don't have a timeline if there is a substantial reason.

Another great thing about this loan is that it is not an FHA loan and the lender does not have to be HUD approved. That means a lot of independent brokers now have a terrific loan product, better than an FHA product, they can offer to their customers.

I am really excited about this loan product because after all the mortgage crisis fall out there just are not many options for lower income families. This is a Great program and unless you are a total dead-beat you can still get into a home. The funny thing is this is such a great loan that the majority of home buyers actually have credit scores higher than 620. It's their best option and the interest rates are low!

Oh, these loans are only 30 year fixed rate. This is a hoot, I love it. If you have any questions about it send an email or ask in a comment.

Oh, I almost forgot. If you live in the state of GA there is a lender that specializes in this loan. I recommend you contact Peach State Mortgage for your USDA mortgage. This program is nation wide so contact me and I'll turn you on to the USDA office nearest you.

Always,

Connie

New Housing Law HR-3221 VA impact

The new housing recover act that was signed by President Bush is just jam packed with all kinds of great stuff. Well, maybe not all of it is so great but indeed some of it I was unaware of. I had no idea it made changes to some of the Veteran issues.



I'll be posting more about the other issues in the coming days but today is just about the Veterans Administration Changes. I think these are all good!

• It increases VA home loan limit for high cost housing areas


• It increases the time a Lender must wait before beginning foreclosure proceeding from three months to nine months after a service member returns from service AND gives returning soldiers one year relief from an increase in their mortgage interest rate.


• The act expands eligibility and increases the amount for special adapted housing benefits for the disabled. This is about money paid by the VA to help Vets make structural changes to their home to accommodate their disability.


• It also requires the Department of Defense to put together a counseling program for veterans and service members facing financial difficulties. It also establishes a moving benefit to service members who are forced to move out because their RENTAL housing was foreclosed on.

YEA!! I can really identify with the last bullet. This actually happened to my son. He was renting a lovely home in San Diego. He went to sea for 6 months. While he was at sea the house was foreclosed on and he was, ... up that well know creek. He lost his last month rent, security deposit and 50% of his household goods due to theft. When he got home, there was no home. He didn't even know where his stuff was.

This just happened in June of 2008. The stress he went through was unbelievable and he still has not recovered financially. I wonder if this benefit is retroactive and if so, to when?

He is back at sea again and I pray the home he is in now will be there when he gets back.

Always,

Connie

FHA Changes for 2008

The Housing and Economic Recovery Act of 2008 was signed by President Bush on July 30th but many people in the industry don't understand just what the changes are and how they will be impacted by them.

If those of us in the industry are confused just think how the consumer feels. Part of the problem is that there is so much information and it is hard to research because it is contained in many "ACTS" that were folded into the final ACT. Are you confused yet?

It may be the final ACT that means curtains for many of us. Sorry, that was really bad!

I have put together a page that covers what I have been able to unravel to this point. You'll find it here at Housing Recovery Act. I am still researching so that page will be updated as time goes by.

Here are some of the FHA changes and when they become effective:

• Minimum down payment has increased to 3.5%. effective Oct. 1, 2008
• Prohibits down payment assistance that is financed by the seller. (Nehemiah etc..) Oct. 1, 08
• Places a 12 month hold on HUD's implementation of risk-based premiums.

There are many other issues so visit Housing Recovery Act.

Good Luck

Bush Ready To Sign Mortgage Bailout

An article titled 'Homeowner Rescue Awaits President Bush's Signature' written by Julie Davis, an Associated Press Writer, covers the mortgage bail out better than most articles I have read.

WASHINGTON (AP) -- Congress approved mortgage relief for 400,000 struggling homeowners Saturday as part of an election-year housing plan that also aims to calm jittery financial markets and bolster the sagging economy. President Bush said he would sign it promptly, despite reservations. Read the article here

I'm not familiar with Julie Davis or past articles by her but this one is really on target.

The foreclosure rescue program has some good stuff and some not so good stuff.

• It includes $3.9 billion in funds to lenders (that caused the problem!) to purchase and fix up foreclosures so neighborhoods would not be dragged down in value. With this funding, won't they be more likely to foreclose than to work with the homeowner?
• $180 million for pre-foreclosure counseling
• The Federal Reserve will oversee Fannie Mae and Freddie Mac
• $15 billion in tax cuts and tax credits for first time home buyers
• $800 increase to the limits set on national debt

There are other issues with the program, one of which is that the tax payers will be the ones paying for Fannie and Freddie bail out. This is just wrong in my opinion. I don't think they should be bail out at all or by any means.

Here is another quote from the article and I include it because it cannot be said better:

Conservative Republicans were vehemently opposed to the bill, particularly
the help for Fannie Mae and Freddie Mac. Critics charge the companies enjoy
lavish profits in good times and wield their outsized political clout to resist
regulation while depending on the government to bail them out should they
falter.

Sen. Jim DeMint, R-S.C., delayed the final vote because Democrats refused
to allow him a vote on a proposal to ban the companies from lobbying or making
political donations to lawmakers.

"We can't have the people who are supposed to watch over these
organizations getting money from these organizations," DeMint said. "At least if
we're going to ask the American taxpayer to be on the hook for billions,
possibly trillions of dollars, let's stop this."

You should really read entire the article. I have the Foreclosure Rescue Program in pdf format if you would like a copy of it. Just send an email to questions@fha-mortgageunderwriters.com and I'll send you the file.

Always,

Connie

The Credit Crisis Explained

I found and article posted on Telegraph.co.uk that totally pissed me off. Sorry for being so blunt but there really is no other way to to express how I felt. It was an article in cartoon format that attempts to explain the mortgage crisis in layman's terms.

This cartoon actually explains it very well except for the first entries blaming Mortgage Brokers for making Bad loans to people that didn't qualify. This is so incredibly wrong, false, untrue, and a total misconception of how mortgage brokers operate.

The captions labeled "Mortgage Brokers" should have been labeled "Subprime Lenders, lenders, or Fannie Mae and Freddie Mac"! Let it be know to all ... that mortgage brokers do not determine or set underwriting guidelines or loan qualification requirements. The guidelines or qualification requirements or lack there of are set by the lender or investor!!

The Mortgage Broker is obligated and required to follow those rules and they do not have an option to deviate from them!! HELLO ... !! In today's market crisis the independent mortgage broker is as much a victim as the consumer.

Yes, a few dirt bag Brokers, lenders, and investors may have committed fraud, which is falsifying documents and misrepresenting products, but that is not what this cartoon is about. Fraud is found in every industry that involves man. Fraud is not what created the mortgage crisis.

In all fairness I might add that perhaps the author of this article is not familiar with the role of a mortgage broker in the united states.

So, take a look to see a good explanation of the credit crisis. Just remember it's not the mortgage broker, it's the lenders. The Credit Crisis Explained in Black and White.

Always,
Connie

Underwriters Originating Loans - Good or Not So Good?

I received the following question from an underwriter. I do not know what mortgage lender she works for nor do I want to know.

I did not respond to her question for several reasons, the main one being I do not give legal advice. However, I do have an opinion and perhaps this is a good place to put it. Here is the question:

What, if any, are the ramifications to the Lender if the Lender requires the
mortgage underwriter to originate loans to walk in clients, then underwrite
and approve and/or deny those said loans? thank you...

Wow, that is a loaded question and if it is indeed a common practice me thinks it is an accident waiting to happen. I see that there are at least two ways to look at this.

An underwriter should be totally unbiased when underwriting a loan. That may be difficult if they also originated the loan and liked or disliked the borrower. It would take very strong character to not be influenced one way or the other.

On the other hand, as a person with years of management experience in balancing budget and controlling overhead and costs, I can see why the lender would need for employees to take on duel roles ... especially in today's market. Is it a conflict of interest? What do you think?

Are there legal ramifications? ... I don't have a clue!

Please, leave your opinion.

Connie

Global Funding Crisis

I read an article on the Telegraph.co.uk that was titled: "US faces global funding crisis, warns Merrill Lynch". I personally found this article disturbing in that we, the US, have placed our financial stability in the hands of countries that in my opinion are not considered good allies and would like nothing more than to see us destroyed.

Here is a short quote from the article:

The US Treasury is running out of time before foreign patience snaps,
writes Ambrose Evans-Pritchard.

Merrill Lynch has warned that the United States could face a foreign
"financing crisis" within months as the full consequences of the Fannie Mae and
Freddie Mac mortgage debacle spread through the world.

The country depends on Asian, Russian and Middle Eastern investors to fund
much of its $700bn (£350bn) current account deficit, leaving it far more
vulnerable to a collapse of confidence than Japan in the early 1990s after the
Nikkei bubble burst. Britain and other Anglo-Saxon deficit states could face a
similar retreat by foreign investors.

This was a very interesting article that every one should read. The comments were even more enlightening.


Always,
Connie

FHA Debt Ratio

I received the following question from a mortgage company yesterday. I'm sure many of you may have, or will encounter the same issue someday. I hope this helps.

To Whom It May Concern,

I've got a guy that I'm trying to get approved thru FHA, but I'm having an issue with his debt ratio since the underwriter is telling me that we have to count a child support payment against his ratios even though we've documented that the child turns 18 in less than 10 months and he'll no longer have to pay that obligation at that time.

Since it's less than 10 months my argument is that it shouldn't count against him. If I were trying to do a loan for the lady receiving the child support she wouldn't be allowed to use that as income since it won't continue for 3 years. The underwriter is
saying that the government counts this as a debt regardless of the amount of time left, which doesn't seem right to me.

According to the Child Support section in the credit guidelines on your website it looks like I'm correct. Can you please give me some clarification on who is right here and if it's me if you could provide some type of documentation that I could show the underwriter I would greatly appreciate it.

Thanks for your help.

Pete, You are right to a point. Below is a link to the 4155 and an exert. Note the red...

Good Luck

http://portal.hud.gov/fha/reference/4155-1.doc page II-51

SECTION 4: LIABILITIES

2-11 TYPES OF LIABILITIES. The following are types of liabilities that must be considered in qualifying borrowers:

A. Recurring Obligations. The borrower's liabilities include all installment loans, revolving charge accounts, real estate loans, alimony, child support, and all other continuing obligations. In computing the debt-to-income ratios, the lender must include the monthly housing expense and all other additional recurring charges extending ten months or more, including payments on installment accounts, child support or separate maintenance payments, revolving accounts and alimony, etc. Debts lasting less than ten months must be counted if the amount of the debt affects the borrower's ability to make the mortgage payment during the months immediately after loan closing; this is especially true if the borrower will have limited or no cash assets after loan closing.


Always,

Connie

Housing Aid Bill Clears Key Senate hurdle

I found this article on the Drudge report titled: "$300b Mortgage rescue" and the article was from My Way. Sorry, the article does not provide the authors name or I would provide it here. You need to read it.

Here is a quote from the article:“The Senate voted 83-9 to speed up work on the $300 billion mortgage aid plan, putting it on track for a final vote as early as the end of the day”.

Chris Dodd, D-Conn., and friend of Angelo’s (the Banking committee chairman), calls it a gift on independence…. What a play on words! Independence means Sufficient income for comfortable self-support; a competence.

This is nothing more than election year idiocy to buy votes. This bill provides $300 billion in new, cheaper mortgages for distressed homeowners that don’t qualify for government insured, fixed rate loans.

They were financially risky when they obtained their mortgage and in a lot of cases have no investment in their home. Credit guidelines were relaxed and loan programs were created to make home ownership more affordable. Home ownership has been at an all time high and more than 95% of homeowners pay their mortgage on time.

Mortgage rates have been low for a long time. Low rates naturally brought high appreciation in real estate and higher home ownership. Wall Street had a growing appetite for mortgage-backed securities. Lenient programs were created to feed that appetite.

Your comments are welcome!

Connie

Rates and Points of FHA Mortgages Versus Conventional Mortgages

What are the rules for FHA mortgages with respect to charging and setting interest rates and points on first lien owner occupied mortgages?

How does the FHA regulations prevent the FHA mortgage from having super high APRs like you find with subprime conventional mortgages?

While 30% of conventional mortgages showed high interest rate spreads, less than 5% of FHA mortgages had reportable interest rate spreads in the 2006 HMDA data.

There are a number of reasons for higher interest rates spreads on conventional loans versus FHA.

As for FHA, the loan origination is limited to 1%, but that is not the sole reason. FHA does owner occupied full doc loans only and does not have a rate adjustment for high loan to values or cashout.

Conventional on the other hand has a lot of different programs that have point cost. Examples are:

Cash out can cost as much as 2.5 Points
Loan to values exceeding 95% Cost 1.75 Points
Interest only Options cost as much as 2. Points
Subordinate Financing can cost as much as 1.5%
Stated Income cost additional Points

Those are just some of the reasons for the APR range on Conventional speaking from a Fannie Mae or Freddie Mac standpoint.

Subprime are conventional loans.

Hope this helps,

Connie

What Has Caused All The Forclosures?

I received a foreclosure question from my site fha-mortgageunderwriters.com, and ... I really don't know if it was from a consumer or a loan professional. Most of the questions I get are from people in the industry.

The woman wanted to know what I think has really caused all the home foreclosures in our real estate market today. You know, that is not a simple question to answer, and I am usually pretty up to date on the market and the politics involved.

So, not wanting to offend I sent off a short list of the things that contributed to our housing crises:

• Politics, and politicians using the market to further their agenda. They have made it look much worse than it is and that media B.S. should clear after the election. Please understand, it is not good, but the market is not nearly as bad as they are blasting out to the consumers.
• The normal real estate cycle
• Depreciation of value which was sort of caused by mortgage backed securities which are tied to Allen Greenspan's over exuberance.
• "Interest Only" programs
• Teaser Rate Adjustments
• Over speculation by investors
• Job loss, divorce, and over extended borrowers

There are more reasons I could add to the list and please note that these are not in any kind of priority order. I know people will say I forgot to include fraud. I did not forget it. Fraud played the least amount of cause and is only significant to the point that it is the primary place where people want to point the finger of blame because is not politically challenging or threatening.

I started wondering about the politics and the bail outs and the federal reserve so I did some research for my own peace of mind. I was Googling everything.

I ran across this video on Google. It starts out talking about income tax but then it gets into the federal reserve and it's history and position in politics today. It is a long video but I was spell bound and watched the entire thing.

I am neither Democrat nor Republican so my putting it on this blog has no political intentions. In fact, I am still researching some of the stuff in the video. It did open my mind and I have many more questions now.

Your welcome to leave comments but I'll tell you right now I am still not sure how I feel about it.

Food for thought I guess. Enjoy.

If the video is not loading here for you, go to: http://video.google.com/videosearch?q=freedom+to+facism&hl=en&sitesearch=#

Or, search google videos for: America: freedom to fascism - directors authorized version

The one you want to view is 111 minutes long.

fsbo

I found this great video on You Tube and I think anyone thinking about selling their home "for sale by owner" should view it.

I agree with the video on many aspects. You need to be ware of "For Sale By owner Companies", especially if they are charging large fees up front.

On the other hand I do believe you can sell it yourself if you have a good plan and know where to get support.

Listing your home on the internet is a good thing but not if you are contracting them to do the work for you, they are charging high fees, or are trying to persuade you to pay to be put in an "MLS". Many of those on line "MLS" services are internet only and used as lead generation for Agents. They capture the information on buyers looking at homes and then solicite the buyers with offers or other homes on the market. It is not a good thing for you.

However, you should list you home with pictures on lagit or free sites. One good free site is http://www.fsbobasics.com. There are others too I am sure. You can also take a short video of your home yourself and put it on You Tube and google video. That is also free.

The best thing that you can do is team with a Mortgage Broker that has a free FSBO program. Many people don't realize that after the contract is signed it is the lender or broker that controls the rest of the transaction.

Many Mortgage brokers are happy to work with you and pre-qualify your potential buyers so you don't get stuck in a contract with people that cannot get financed. They will usually provide you with signs, contracts, and disclosures you may not know need to be signed by buyers and sellers. They can teach you the ins and outs of the contract and explain things you may not understand.

They can show you the best financing options to use in your advertising, teach you about seller concessions and how it can impact your selling price. They can show you how much more you will pay in closing cost if your buyer gets a FHA loan or VA loan instead of a Conventional loan.

Well, whatever. This is a great video put together by a news station in Atlanta.



You may also want to view the video I have on For Sale By Owner Manual if you are a broker.


Always,

Connie

Federal Trade Commission Cracks Down on Credit Repair Violations

I just read an article on Originator Times about the FTC cracking down on credit repair violations. You can read the article HERE. I have included a quote from the article below.

The Federal Trade Commission was concerned with these federal law violations:

• illegally charging an advance fee for credit repair
• falsely claiming that they can remove negative information from consumers’ credit reports, even if the information is accurate and timely

I have to admit that it amazes me that people continue to attempt to remove correctly reported information from their credit report. My mind can't sort out which is more wrong, the company for making false claims or the consumer trying to game the system.

According to the complaint, consumers are led to Home Buyers Consulting Network,Inc. (HBCN), which is based in Raleigh, North Carolina, through its Web sites and by a company that sells lists of foreclosed properties and suggests that it's customers call HBCN if they need credit repair or access to zero or low down-payment home financing. In sales pitches for its credit repair services alone, and in conjunction with pitches for its home-buying consulting services, HBCN makes claims such as: “Our program offers the ability to REPAIR, RESTORE, or ESTABLISH your credit so that you may be able to qualify for 100 % home financing, lower interest rates and better quality credit.” HBCN also offers a “money back guarantee . . . to increase your credit score by 50 to 100 points or delete six derogatory items (from a consumer’s credit report).” HBCN also promises consumers help with finding a home to buy, through a referral to its purported network of realtors and lenders, the complaint stated.

Obviously this company had set up a rather elaborate system to take advantage of people in a state of need and ignorance. I still don't understand how people can fall for this. The following is another quote and advice from the FTC. It's pretty easy to understand and really supports the consumer.

The FTC advises that only time, a conscious effort, and a personal debt
repayment plan can improve your credit report. The first step is to learn what
information is in your credit report. If you find errors or mistakes, federal
law gives you the right to have them corrected – free of charge. Federal law
requires that the nationwide consumer reporting companies – Equifax, Experian,
and TransUnion – provide you with a free copy of your credit report once every
12 months, if you ask for it. To order your free report, visit annualcreditreport.com, call 1-877-322-8228, or complete and mail the Annual Credit Report Request Form. Other credit repair information is available at http://www.ftc.gov/.

If it sounds to good to be true, it probably is. It's not hard to get your credit back on track and it doesn't take long to do it. You just have to make that decision and commit to it.

Always,

Connie

Fingerprinting Loan Originators

Let's fingerprint all Loan Originators, Mortgage employees and Real Estate Agents. Yep, that's the ticket. ... God Help Us! This was slipped into a the foreclosure assistance bill, and hidden in the "manager's amendment", and passed by the Senate Banking Committee.

Here are a few quotes from the article that came from "OpenMarket.org" and posted by John Berlau.

"a federal fingerprint registry totally unrelated to national security passed a U.S. Senate committee almost without notice. The legislation would require thousands of individuals working even tangentially in the mortgage and real estate industries — and not suspected of anything — to send their prints to the feds. The database and fingerprint mandates were tucked into housing and foreclosure assistance bills that on Tuesday passed the Senate Banking Committee by a vote of 19-2. "

What, ??? so fingerprinting the mortgage industry is going to fix, or would have prevented the problems we have now? Where did these idiots come from. Did we really elect them? What is their real agenda, surely they are not ignorant enough to think this will fix anything!? Here is another quote.

"The measure the committee passed states that “an individual may not engage in
the business of a loan originator without first … obtaining a unique identifier.” To obtain this “identifier,” an individual is required to “furnish” to the newly created Nationwide Mortgage Licensing System and Registry “information concerning the applicant’s identity, including fingerprints for submission” to the FBI and other government agencies."

"The fingerprint provisions are contained in a “manager’s amendment” that was hammered out by committee Chairman Chris Dodd, D-Conn, and Ranking Member Richard Shelby, R-Ala., on Monday and attached the next day to a broader housing bailout bill that had been scheduled for a committee vote. That bill, the “Federal Housing Finance Regulatory Reform Act of 2008,” expands the lending authority of the Federal Housing Administration and the government-sponsored enterprises Fannie Mae and Freddie Mac to refinance the mortgages of troubled borrowers and banks."

"The amendment defines “loan originator” as anyone who “takes a residential loan
application; and offers or negotiates terms of a residential mortgage loan for compensation or gain. It states that even real estate brokers would be covered if they receive any compensation from lenders or mortgage brokers. "

I want you to know that I try to stay neutral about political issues in my blog. I'm not always successful but I really do try. This morning I read this article on the Drudge Report and I am totally outraged. I cannot contain myself. I don't think it matters which party you affiliate yourself with, you should be stunned by this too.

The bill claims justification for this provision as: “increased accountability and tracking of loan originators,” “enhanced consumer protection,” and “facilitating responsible behavior in the subprime mortgage market.” ... Hey, they got this right. All mortgage people and real estate agents are sneaking around and far from trust worthy. They should all be put into a mandatory parole program and should have to check in every week, and provide urine for drug tests. How about an ankle bracelet too! ... "Book em Dan-O"

What has happened to us? The People we have elected and put our trust in are totally out of control. They feel and display no accountability or respect for us or the constitution. And We pay them money to do this to us!

We have to wake up.. I am so angry I can't get my thoughts in order but I wanted to get this out to you. I'll blog more about it after I cool off a little. In the mean time go read the article here, then come back and leave some comments. I need to know if I'm the only person that finds this troubling.

For Sale By Owner Manual

If you are a homeowner and you say, I want to sell my home fast, I would suggest that you seek out a mortgage broker that has a For Sale By Owner Program. Mortgage Brokers have a wealth of knowledge that they are more than willing to share with you.

Most programs include providing you with a yard sign, an information manual, home fliers, and instructions on how to fill out the required paperwork. They will also follow up on everyone that views your home and will pre-qualify them so you don't have the worry of wondering if the buyer can get a loan.

They cannot negotiate for you, but what most people don't understand is that after the contract is signed it is the broker that handles the rest of the transaction.

The lender orders the appraisal, and inspections, and title insurance, and everything else that is needed ... and does all the coordination.

If you don't have a mortgage broker with a for sale by owner program assisting you, you are missing out on the best free help you could possibly get.

FSBObasics.com is a free fsbo website where you can list your home free of charge. They also have a list of real estate professionals in your area that have free programs. I would check that out. If there isn't anyone listed in your area, just get on the phone and call some of the brokers in your neighborhood. Most brokers have a program.

FSBObasics.com also has a For Sale By Owner Manual ($27.94). The manual is in pdf format and it's focus is toward the mortgage broker. I guess by that what I mean is it is an ebook that contains a FSBO manual and ideas for the broker so they can set up a program for their own company.

The video below illustrates to the broker the manuals covered in the pdf, how they are put together and replicated for their loan officers at a cost they can afford.

If you are a For Sale By Owner, you could purchase the ebook/manual but I don't recommend it. What I recommend is what you really need, a Broker to support you and help you along the way. I actually have an ebook almost finished that will be focused just for your use. I hope to have it completed by the end of June.

If you are a seller and have any questions send me an email. I'll be happy to support you anyway I can.

IF you are a broker or loan officer I hope this video helps to clarify any questions you may have.

This program works, ... but like any program, it only works if you work it, ... consistently.




You can purchase this program on on our web site at fsbo manual, www.fsbobasics.com/fsbo.html

Always,

Connie

How Effective Is Debt Consolidation With Credit Cards?

People who are seeking to establish credit will often apply for a major credit card or for a personal loan. On the other hand, people who are in debt will often apply for credit cards, believing it is a solution for debt consolidation. In both instances, the people in the scenario are both risky candidates for getting a loan.

If you do not have credit, it can be just as difficult to get a loan as if you had bad credit. Credit is necessary these days, which is why you should work on building it before you actually need it for something important.

Regardless of the situation, you must stay on track if you find a way to consolidate your debts. Once you begin the process of debt consolidation, you must keep track of your money, spending, and so forth. When you keep track of your money and spending, you are taking the first step to consolidate your bills and manage your money at the same time.

This web page will help you understand your credit history and how to take care of it. Credit Guidelines

Credit cards are nice to have; in fact today, credit cards are essential, as you cannot make purchases in some instances if you do not have a major credit card. Pre-paid credit cards are newer cards that offer a similar effect to credit cards. The cards allow you to deposit your money into the card and use it as though you had a major credit card.

The downside is that these cards have fees and this will not help you to consolidate your debts. It is possible to get a credit card if you have bad credit, but it may come at a costly fee. The interest rates are often higher than on cards given to individuals or families without credit problems.

So if you are bent on getting a credit card to consolidate your debts, think again; if you don't, you could end up in more debt!

Good Luck