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    Saturday, December 20, 2008

    It’s been an exciting week in the bond market

    It’s been an exciting week in the bond market. The Fed announced its new target rate to be 0-0.25% and slashed the rate from 1% to 0.50% This cut to rates affects what banks lend banks overnight and any instrument tied the prime interest rate like home equity lines of credit and credit. This is a new historic low for the fed funds rates.

    Mortgage interest rates are at an all time low and it is a great time to think about refinancing. If you or someone you know can save several hundred dollars a month and it didn’t cost anything or the costs were justified by the savings wouldn’t you want them to do it? Call me for details.

    Wednesday, December 17, 2008

    Homestyle Loans- Rehab for Investment Homes

    Please see the update below. There are some great programs for loan right now. I’d like to point out the Conventional – NOT FHA- Homestyle Loans. These loans are REHAB loans for Primary residences, Second Homes AND Investment properties! Call me for more information at 760-837-1488!! Talk soon! Homestyle Loan,

    · FHA’s minimum down payment is being increased from 3% to 3.5% as of Jan 1, 2009. The only way to honor the 3% down payment option for your client, is to get their loan approved before the end of the year. So, if you don’t already have an approved offer and a loan submitted, then you should be notifying your clients about the change.

    · FHA’s new Loan Limit for Riverside County is $355,350, not $500,000. This is also in effect on January 1, 2009, and under the same scenario as above.

    · Conventional Loan limits have also been reduced back to $417,000, not $500,000 anymore. Any loan amount above 417K, is going to be considered a jumbo mortgage.

    · Reverse Mortgages are going to be a great mortgage tool moving forward to help seniors over the age of 62 purchase a new home, with no income or credit qualification required. Yes, you heard that here first.

    · Rates are great today, why not help you and your past clients out by sending them to us to do a cash out refinance on their primary residence at 5%, so they can get the down payment needed to buy a investment property from you today.

    · USDA & VA Loan’s – both offer your clients 100% financing as long as they qualify for the program.

    · 203(k) FHA remodel home loan – This program will allow your clients to include in the loan the cost of improvements the home will need to make it complete. This program requires only 3.5% down, and works on owner occupied properties only. Max loan $355,350.

    · Fannie/Freddie’s Homestyle Loans – this program works very similar to the above program, which allows you to include the cost of the home improvements in the loan, except that it works for all occupancy types. Primary, Second Homes, and Inv. Properties. Loan amount goes to $417,000, and down payments vary based on occupancy.

    Monday, December 15, 2008

    Short sales, however, are slightly different.

    FNMA hasn’t changed the 3-year foreclosure guideline for about 18 months now. That much we knew. Short sales, however, are slightly different. We read in the underwriting guidelines that if you had a short sale on your credit you could be approved for a loan after two years with good re-established credit. Now, we know that investor guidelines are looking at “Short Sales” on credit as needing 3-years after completion to be eligible.

    Fair Isaac, the credit reporting company, doesn’t have a specific category for short sales, but it does show on the credit report that the loans were settled for less than balance or “shorted”.

    It is possible for the bank to report it differently such as “paid in full” negotiate with the bank on how they will report it and it doesn’t mean that it will report it that way every single time.

    · Fed Cuts Possible Tomorrow?
    · Property Taxes too High?
    · See the newsletter below.

    Saturday, December 13, 2008

    Credit Qualifying - Short Sales - Foreclosures

    One thing we are learning more about is doing loans for those who have had a short sale or foreclosure on their credit. If you have clients who have had a short sale on their credit instead of having to wait two years to purchase we are learning that it is now three years. The banks are looking at this credit profile as if it is a foreclosure on their credit and are held to the same guidelines as having a foreclosure. Even if they credit qualify with their credit scores this is something to consider when speaking to your potential buyers.

    Credit Qualifying, Short Sales, Foreclosures,

    Sunday, December 7, 2008

    Rates going to 4.5%?

    There have been recent rumors of interest rates being brought down towards 4.5% by the Treasury. Rates are not going to 4.5% with the wave of a wand by Hank Paulson or Ben Bernanke. As a matter of fact, the massive borrowing to fund the TARP program has a negative effect on rates. This irresponsible release included no definitive plan, no indication of who might qualify, or what the restrictions would be. Remember, it may make sense for you to act now, and take advantage of current historically low rates...with the possibility of refinancing should rates decline further. Waiting for rates to fall to 4.5% may leave people sorely disappointed.

    Friday, December 5, 2008

    Canadian / Foreign National financing

    Attached is a flyer for Canadian / Foreign National financing. No one else has this program at these loan to values!! So check it out.

    Market Update

    The November jobs report was released today showing some of the worst numbers in decades. Non-farm payrolls dropped 533,000 last month and was only the fourth time in 58 years that our economy lost over 500,000 jobs. The unemployment rate ticked up to 6.7%, the highest since October of 1993.

    The news sent the Stock markets lower while the Bond markets didn't have much of a reaction. We are currently in a bad economy and only news of a better report would have been a surprise.

    Mortgage bonds are down a little today and we have had several reprices…. I am floating clients until Monday to see how the market continues.

    Monday, November 3, 2008

    Mortgage bonds are trading low

    Hope you had a safe and fun Halloween! Check out this week’s newsletter. I’d like you to focus on the bond graph below. Mortgage bonds are trading low right now, which means rates are higher than we want, I would recommend to float interest rates for the next few days. I’m thinking about 10 days into middle of next week. If you have deals in progress or offers just accepted advise your clients to hold off on locking until the bond market comes back after the elections next week. There’s lots of volatility right now; however, I will keep you up to date with the latest mortgage news!

    Friday, October 31, 2008

    A quick update on loan programs

    Happy Halloween!

    A quick update on loan programs. Please call with questions.

    Agency Jumbo Loans : Loans that are between $417k -500k... your clients have 2 weeks to lock their loans in to get the benefit of conforming jumbo pricing which have lower interest rates than loan amount over $500,000. An agency jumbo loan was part of the economic stimulus program rolled out by the Government in February 2008 and is set to expire at the beginning of 2009. Loans must be locked by November 13th and closed by year end.

    USDA:100% financing is still available for your listings in DHS and Coachella and selected areas of Indio through the USDA! No credit score? That’s ok. No mortgage insurance required either. Call me to find out more info.

    Cal- HFA (Chaffa) still allows 100 percent financing with a 680 fico or better if you meet the low income requirements. USDA,

    Calsters - teacher program. 3% down 80% 1st and 17% 2nd with no mortgage insurance and payments are deferred on the 2nd mortgage for 5 years!

    FHA is still my favorite program because it has no income or property eligibility restrictions and is the most lenient for underwriting guidelines. Current down is 3%; however it will change January 1, 2009 to 3.5%. Get your buyers off the fence now!

    Canadian/ Foreign Nationals: 30% down with a minimum loan amount of $200,000. Full Documentation with an International Credit Report and reserves with the servicing bank.

    Franklin Loan Center provides me the platform to stay competitive for you in this market. In-house local approvals and 30 day fundings! I look forward to working with you soon.

    I am NEVER too busy for any of your referrals! Make it a great day.

    Monday, October 27, 2008

    Happy Halloween Week!

    Happy Halloween Week!

    Franklin Loan Center has the competitive platform you need to navigate this lending environment. We are a mortgage bank which means we can approve your deals in-house with our own underwriters who want deals approved, closing quickly, drawing loan docs with my team members, and funding NOW!! We are NOT the average broker who doesn’t have control of underwriting or funding. Use us to stay competitive.

    Take control of your deals and refer them to Franklin Loan Center today!

    I’m NEVER too busy for any of your referrals. This week’s rate sheet is attached.

    Be prepared to set your clocks back 1-hour this Saturday night as Daylight savings will kick in until the Spring!

    Friday, October 17, 2008


    I am still cranking out loans and what a great week! Franklin Loan Center is continuing to expand their underwriting, processing, and funding departments to make your fundings quicker and make you look good! Use us and experience the difference! We are continuing to expand our platform to remain competitive for loan programs. Cal-HFA, USDA, FHA, VA, Reverse Mortgages and Hard Money, as well. Call me for all of your funding needs!!

    GO TO TO RSVP FOR MY FHA EVENT ON TUESDAY MORNING 8:30 TO 10:00AM AT CDAR. (See the attached flyer)

    Market Update

    Mortgage Bonds are attempting to build on the gains seen over the past two days, after being helped by some weak news in the Housing sector.

    The lower-than-expected New Homes Sales for September were reported at their lowest level since January 1991. Additionally, building permits came in at a 27-year low. This weaker-than-expected news gave Mortgage Bonds a bit of a boost today.

    Stocks continued their volatile ride yesterday as the Dow climbed a staggering 400 points after being down 400 on the day. This wild volatility demonstrates the need to work with a mortgage professional who is knowledgeable about the market in these crazy times. For now, I recommend floating to see if Bonds can continue to build on their momentum. I will be monitoring the situation carefully, and I will let you know if anything changes.

    Wednesday, October 15, 2008

    “Guideline Changes for the Mortgage Industry”

    To continue with our theme for 2008 “Guideline Changes for the Mortgage Industry” we have another update!

    FHA loan limits will be decreasing to $355,350 for the County of Riverside for all loans that have an approval dated after Jan 1, 2009.

    There will no longer be a classification of Jumbo Gov 30, just Gov 30.

    Yesterday was the last day to lock loans Agency or FHA Jumbo between $417,000 to $500,000.

    Conventional loans will also be lowering their loan limits in Riverside County back to $417,000 down from $500,000. Call me with questions and make it a great weekend!

    Monday, October 13, 2008

    More inflation news will follow

    "THOSE WHO CAN SOAR TO THE HIGHEST HEIGHTS CAN ALSO PLUNGE TO THE DEEPEST DEPTHS." Lucy Maud Montgomery. Despite all of the government's efforts, markets here and around the world plunged this week as the financial crisis continues to grow.

    On Tuesday, the Fed and Treasury Department announced plans to purchase short-term commercial paper that many companies rely on to finance their day-to-day operations, to help businesses with their short-term credit and funding needs. The government hoped this announcement would help ease uncertainty, restore confidence, and give Stocks a boost. They hoped for a similar result on Wednesday when the Federal Reserve cut the Fed Funds Rate by 50 basis points, and coordinated an emergency global interest rate cut with the European Central Bank, Canada, the UK, Switzerland and Sweden. The Central Banks in Asia followed suit and cut their benchmark interest rates overnight as well.

    However, on Thursday, Stocks plummeted nearly 700 points to a five-year low, and on Friday Stocks ended the day another 126 points lower (after plunging 500 points three times throughout the day). Bonds and home loan rates also worsened sharply in the second part of the week, as Bonds dropped below several important floors of support, and home loan rates ended the week .50% higher than where they began.

    From a historical perspective, we are in the midst of a brutal bear market that began on October 9th 2007. Remember that a decline of 20% constitutes a bear market...and a 10% decline is a "correction." The last bear market occurred between March 24th of 2000 and October 9th 2002 saw a 49% drop. Overall, the average bear market lasts for 12.3 months, with the average decline being 32%. The current bear market is right in line with the average historical time frames, and the extent of the decline is worse than previous bear market averages, but still slightly better than the bottom made in 2002. So the historical data might suggest that we could be nearing a bottom. I will continue to monitor this situation closely, and let you know how this will impact home loan rates in the weeks and months ahead. One bright spot is that oil prices are also plunging, falling from a high of $147 per barrel last July to around $80 per barrel Friday morning...which at least makes a tr ip to fill up at the gas station slightly less painful.


    Forecast for the Week

    Last week was a volatile one despite the lack of scheduled economic reports, and this week several big pending reports could add to the volatility...even with the markets being closed on Monday in observance of Columbus Day. Wednesday will bring the wholesale inflation measuring Producer Price Index and the Retail Sales report for September. The Retail Sales report is a measure of the total receipts of retail stores, and changes in these numbers are closely followed as a timely indicator of broad consumer spending patterns. It will be especially important to see what kind of impact the financial crisis has had on recent spending trends.

    More inflation news will follow on Thursday, as September's Consumer Price Index (CPI) report, which gives a read on inflation at the consumer level, will be released. CPI tells us how much more expensive goods and services are this month over last month, and this widely watched inflation indicator will definitely make headlines. And given what's been happening in the markets, it will be important to note what's happening in the housing sector, which Friday's Housing Starts and Building Permits Report for September will reveal.

    Remember when Bond prices move higher, home loan rates move lower...and vice versa. As you can see in the chart below, Bonds and home loan rates worsened this week, due to a variety of factors. I will be watching closely to see if Bonds and home loan rates can change direction.

    Friday, October 10, 2008

    Agency Jumbo Loans

    Mortgage bonds went on a rally as I predicted this week and mortgage pricing improved by about .25%. Take a bond at the candlestick bond chart below. On Tuesday, we will remember all the Veterans how have fought and are fighting for our liberties and freedoms.

    **If you have a client looking to get a loan amount between $417,000 and $500,000 have them get locked in before this Friday!**

    There are not too many reports this week that will impact financial news so mortgage pricing will most likely take direct from the stock market.

    Attached is a free appraisal for any new clients you refer to me after 11/09/08. I am NEVER too busy for your referrals and I appreciate your business.

    It’s been another unbelievable week in the mortgage business.

    It’s been another unbelievable week in the mortgage business. I am still getting your clients approved and deals are coming together! Yes, it’s true. Here are some tips that are helping as I am continuing to be creative.

    1. Counting Rental Income if Converting a Primary to an Investment- If qualifying is a problem get a co-mortgagor to help offset the debt to income ratios if they are too high.
    a. Conventional - 30% equity and 6 months PITI reserves to count rental income
    b. FHA – 25% Equity and 6 months PITI reserves to count rental income
    2. Source the down payment – getting a gift or having money in the bank makes getting approved easier. We can use gift down payments from relatives.
    3. Zero Down? – I have USDA Zero down programs for rural housing, CALHFA for 100% financing with a 680+ fico, and VA loans with no mortgage insurance.
    4. Low Down – 3% down until January 1, 2009 and 3.5% thereafter! We can use gift money from a relative it’s so easy!
    5. Credit Problems? Talk to about a credit repair program. It’s easy and its low cost to turn your clients into approved buyers.
    6. Think Full Documentation – 2 years tax returns, 2 months bank statements, current paystubs. Set realistic expectations.
    7. Investors – 20% down with no more than 4 properties with loans on them – Per Fannie Mae Guidelines
    8. Investors – 30% down with more than 4 properties with loans –

    Hope this helps! Oh by the way, I am never too busy for referrals!

    Tuesday, October 7, 2008

    What is the expected impact of HOPE for Homeowners (H4H)?

    What is the expected impact of HOPE for Homeowners (H4H)? Per

    The Congressional Budget Office estimates that as many as 400,000 homeowners could avoid foreclosure through this program over the next three years.

    What is the value of the HOPE for Homeowners program to lenders?

    Only FHA approved mortgagees can originate H4H loans. H4H loans may benefit lenders by helping them avoid foreclosure expenses. Although the lender will likely have to write down their existing loan in order to originate an H4H loan, it is still less expensive than foreclosure and disposition of property.

    Why should existing lien holders accept the short payoff that is required under the terms of the law?

    HUD understands that it will be a challenge to encourage lien holders to accept short payoffs in order to participate in this program, especially when there are other loss mitigation tools available that may provide a more suitable solution. However, in instances where those tools are ineffective, we believe that the holders of these mortgages should accept the short payoffs in lieu of the tremendous losses associated with foreclosure. Similar challenges exist with subordinate lien holders but by offering them the opportunity to have an interest in FHA’s share of future appreciation in the property, we hope to entice these lien holders to participate as well.

    What advice should loan servicers/lenders give borrowers who are facing difficulties fulfilling their obligations on their existing mortgage(s)?

    The H4H program is another loss mitigation option to keep borrowers in their homes on sustainable and affordable terms. Lenders should provide information to borrowers on possible options include contacting a HUD approved counseling agency. Borrowers may call 1-800-569-4287 or visit

    When can I start originating H4H loans?

    The program is effective from October 1, 2008 to September 30, 2011.

    Eligibility and Underwriting issues

    How does the H4H program differ from FHA Secure?

    Under H4H:

    • Any type of first mortgage as long as it was originated on or before January 1, 2008.

    • All existing lien holders must waive prepayment penalties and late charges, as well as extinguish all liens against the property.

    • Existing first lien holders are required to accept the proceeds of the H4H mortgage as payment in full.

    • Borrowers will be required to share both the initial equity created with the H4H loan, and future appreciation.

    • The maximum loan amount is $550,440, nationwide.

    How does the appreciation sharing piece work?

    To entice subordinate lien holders to participate in the negotiation process and release their liens, FHA has the authority to share its future appreciation entitlement with them. At settlement, subordinate lien holders will receive a certificate that evidences their interest as an obligation backed by HUD, with payment conditional on the value of HUD’s appreciation share.

    Are there special underwriting requirements for the H4H program?

    Yes, in addition to standard underwriting procedures, the underwriter must:

    • Determine that the borrowers existing total monthly mortgage payment is in excess of 31% of their gross monthly income in March of 2008.

    • Determine the borrower’s total monthly mortgage payment on the new H4H loan is less than the borrower’s total monthly mortgage payment on existing loans.

    • Determine that the DTI’s are at or below 31/43. However, if the borrower has successfully completed a 3 month trial modification, ratios can be expanded not to exceed 38/50.

    • Review income as reported on the transcript or copy of the borrower’s income tax returns for the previous two years.

    How is the total monthly mortgage payment on the existing loan(s) calculated for the purpose of qualifying the borrower for the H4H program?

    The total monthly mortgage payment is defined as the fully indexed, fully-amortizing Principal, Interest, Taxes and Insurance (PITI) payment. This includes homeowner’s association dues, grounds rents, special assessments, and all subordinate liens as of March 1, 2008.

    Can I add a non-occupying co-borrower to help qualify?

    No, however you may add a non-occupying ,co-signer who does not have any ownership interest in the property.

    What if there is currently a non-occupying co-borrower on the loan?

    The non-occupying co-borrower will need to quit claim their interest in the property prior to the occupying co-borrowers applying for the H4H program.

    What loans are eligible for refinance under the H4H program?

    Any type of mortgage is eligible for refinancing under the H4H program, including conventional (prime, Alt-A, subprime), or government backed (FHA, VA, or Rural Development), fixed or adjustable rate mortgage.

    The loan must have originated on or before January 1, 2008, the borrower must have made at least six (6) payments on the existing mortgage, and the total monthly mortgage payment exceeds 31% or the borrower’s March 2008 gross monthly income. The borrower may be current or delinquent at the time the new H4H mortgage is originated.

    What properties are eligible?

    The property to be refinanced must be the borrower’s primary and only residence in which the borrower has an ownership interest.

    Only 1-unit properties are eligible, including condominiums, cooperative units and manufactured housing permanently affixed to realty.

    Does the borrower have to be delinquent on their existing loans to be eligible for the H4H program?

    No, the borrower may be current or delinquent at the time of application for the H4h mortgage.

    What must the existing lienholders do?

    Existing first mortgage lien holders must waive any and all prepayment penalties and late payment fees, agree to accept the proceeds from the H4H mortgage as payment in full, and release their outstanding mortgage liens.

    Existing subordinate lien holders must waive all prepayment penalties and late payment fees as well as release their outstanding mortgage liens.

    Will I have to get a new appraisal or can I use an AVM?

    In all cases a new FHA appraisal must be ordered specifically for the H4H transaction and the appraisal should be no more than 3 months old at the time of closing.

    What are the rates for the Upfront Mortgage and Annual Insurance Premiums (UFMIP)?

    The Upfront Mortgage Insurance Premium (UFMIP) is 3% and the Annual is 1.5%

    Can the UFMIP be financed?

    Yes, however the maximum LTV under the H4H program is 90% regardless of whether or not the UFMIP is financed.

    Will there be additional disclosure requirements?

    Yes, the originating lender must provide the HOPE for Homeowners Consumer Disclosure and Certification form at the time of initial application for the Program.

    Are there additional lender certifications?

    Due to the statutory requirements and the unique nature of the program, lenders and underwriters will execute a certification assuring HUD that they have underwritten and closed the loan in accordance with the H4H program guidelines.

    What is the maximum LTV for the H4H program?

    The maximum LTV for the Program is 90%, including any financed UFMIP.

    Who can pay closing costs?

    Standard FHA policy regarding closing costs is applicable, including the 1% cap on origination fees.

    • Borrowers may pay closing costs from their own assets,

    • They may be financed into the mortgage provided the 90% LTV limit is not exceeded,

    • The servicing lender, originating lender and/or a third party (e.g. a Federal, state or local Program) and/or

    • The originating lender my pay the borrower’s closing costs and prepaid items through premium pricing.

    Is subordinate financing allowed to pay closing costs, like under FHASecure?

    No. Subordinate financing is not allowed in the first 5 years of the mortgage except in when necessary to ensure maintenance of property standards.

    Will Wall Street be receptive to purchasing these new loans?

    These loans can be securitized in Ginnie Mae FS Pools, making them attractive to Wall Street and other investors.

    The Labor Department's Jobs Report

    The Labor Department's Jobs Report came in much worse than analysts expected, with 240,000 jobs lost in October. In addition, the Unemployment Rate jumped to its highest level since 1994.

    In market news, Stocks are coming off their worst back-to-back days since the 1987 Stock Market crash. Although Stocks opened higher this morning, they could be in for more of a decline as today's poor Jobs Report sinks in. This could create selling pressure on Stocks, which may help bonds improve.

    Currently, prices are battling a strong ceiling of resistance. Should prices break out above current levels, it would be very bullish. Therefore, I recommend floating, even though prices are modestly weaker right now and may even worsen slightly before bouncing.

    Monday, October 6, 2008

    The FHA Loan to Value Requirements

    Good Morning!

    Mortgage backed securities are up on the day today and getting a good start for the week! I am carefully floating as of right now and if I see the market turn I am ready to pull the trigger and capitalize on this quarters best rates for your clients.

    It may have been confusing regarding Mortgage Insurance Premiums (MIP), Monthly Mortgage Insurance (MMI), Private Mortgage Insurance (PMI) information updates I provided. Let me clarify:

    Conventional financing only has PMI if you put down less than 20%.
    The minimum down payment for a primary residence is 10% for conventional.
    FHA minimum down today is 3%, as of January 1, 2009 it will be 3.5%.
    FHA financing has a one-time MIP, now 1.75% of the loan amount, which can be financed into the loan, along with MMI payment paid monthly.
    MIP and MMI are two separate insurance premiums.
    MIP is paid to HUD directly at closing and the borrower pays the MMI monthly to HUD.

    Sorry about the confusion. I hope this helps.

    The FHA Loan to Value Requirements are staying at 3% until January 1, 2009. Attached is the mortgagee letter from HUD which gives example and can help you understand. Please call with any questions.

    Oh by the way, I am Never too busy for any of your referrals!

    Saturday, October 4, 2008

    January 2009 the minimum downpayment will change to 3.5%.

    Please be advised! There was a mistake as to the dates of change for the down payment requirements for FHA. As of January 2009 the minimum downpayment will change to 3.5%. What did change on October 1, 2008 was the risk based mortgage insurance. Today it’s a pre-paid amount of 1.75% up from 1.5% for MIP, either financed or pre-paid at closing. The annual rate of .55% up from .50% applies for the monthly mortgage insurance. This is still a discounted rate when compared to conventional mortgage insurance at .78% and the minimum down payments are much lower. Conventional financing still requires 10% down to avoid MIP and the interest rates are higher. Thanks for keeping this in mind.

    Friday, October 3, 2008

    Changes in Loan Programs - There is change afoot!

    Dear Friends and Clients!

    Happy October! Wow another great week of change! I know you are getting busy out there! I am NEVER too busy for any of your referrals!

    Changes in Loan Programs - There is change afoot!

    Mortgage guidelines are changing for conventional and FHA financing. I am keeping up with these to keep you informed. See the bullet points below:

    · Turning a primary residence into a rental requires 30% equity for conventional and 25% for FHA to count rental income toward qualifying ratios.
    · Investment properties require a 20% down payment.
    · Second Homes require only 10% down!
    · FHA now requires 3.5% down payment as of October 1, 2008.
    · Down Payment assistance (Seller Paid) – like Nehemiah, HART, etc is not allowed as of October 1, 2008.
    · Down Payment assistance – Gift funds from a family member, non-profit, employer still ok.
    · Bankruptcy Seasoning – Discharged = 2 years with re-established credit Dismissed = 4 years with re-established credit.
    · Short-sales – two-year seasoning period with re-established credit.

    NOTE: MOST FIRST TIME HOMEBUYERS WILL QUALIFY FOR A LOAN!! IT IS NOT DOOM AND GLOOM! Let’s take a dream of homeownership and make it a reality and focus on what we can do!

    Market Update
    The Labor Department reported this morning that 159,000 jobs were lost in September. This is much worse than the 105,000 lost jobs that economists were expecting.

    Normally, Bonds would move higher on the news; however, speculation that rate cuts may be coming in the future has Bonds bouncing around a bit.

    Attached you will find my current rate sheet for the weekend. These rates have been accumulated from, Chase, Wells Fargo, IndyMac, Countrywide, Citi Mortgage, Wachovia, and Everbank. I have handpicked the best rates from all these banks for the most popular loan programs, so that I can ensure you and your clients the very best deal.

    Monday, September 8, 2008

    Mortgage Bonds are soaring higher

    Mortgage Bonds are soaring higher on this weekend’s announcement that Fannie Mae and Freddie Mac will come under control of the government.

    The government’s move to create a line of $200 billion to back all Fannie Mae and Freddie Mac loans at all costs is great news for homeowners. First, it ensures the continued liquidity of conforming loans nationwide and, second, it ensures that buyers of this type of Bond have a safe investment going forward. There’s no doubt that this will help the US housing market move through the current crunch that we’re in.

    So far this morning, the news has lead to a nice rally in pricing. When combined with the break above the 200-Day Moving Average, this may lead to attractive rates. Therefore, I recommend floating for now.

    Friday, September 5, 2008

    Jobs Report for August

    Wow another great - shortened week! I know you are getting busy out there! Let me know what I can do to help. Make it a great weekend!

    Market Update

    The Jobs Report for August came in this morning at 84,000 jobs lost. But the real buzz in trading is the swelling unemployment rate, which jumped from 5.7% to 6.1%. This marks the highest unemployment rate since September 2003.

    Mortgage pricing has been on a rally for the past several days and looks like it’s about to turn the other way. It’ll interesting to see what happens next week! Stay tuned!

    Interest rates are at a 4 month low

    It’s shaping up to be a busy month! Interest rates are at a 4 month low and I’m continuing to watch the bond market for you. See the article attached as well as the newsletter for an industry update. Make it a great month and if I can help you are someone you know with a purchase mortgage or refinance. Attached is a free appraisal flyer for you to use or give to a friend.

    Has the Housing Bubble Popped?

    Make it great!

    Oh by the way, I’m never too busy for any of your referrals.

    Monday, August 25, 2008

    Rates Get Better

    I mentioned on Friday that interest rates were on a roller coaster ride late last week. Fortunately, I noticed that mortgage bonds were overbought midweek and got my clients locked in saving most of them 0.125% on their 30 year fixed mortgages. This saved them anywhere from $25 and $40 per month. I look forward to helping your clients too. This weeks newsletter explains what happened last week.

    Friday, August 22, 2008



    Let’s get those buyers off the fence asap! Franklin Loan Center’s platform is strong so utilize me with your clients who need to close fast. FHA IN 21-30 DAYS! At the end of September, as you know, the DAP will be going away, yet we have until September 5th to get the deals accepted and opened. If you have a buyer who needs to use these programs call me asap! If they can’t close before the end of September we can use a gift from a family member or other non-profit organization as long as the seller is not contributing toward the downpayment, up to 6% toward closing costs are still okay!

    Call me today to get the ball rolling. I’ll pay for the appraisal send along the attached flyer with your client during the pre-qual interview.

    I’m never too busy for any of your referrals.

    Give me the opportunity to make you look good…
    We’ve had a great rally this week in the mortgage market and I’ve locked my pipeline to protect my clients from higher interest rates. This week I’ve save most of my clients 0.125% or more on their interest rate and they’re happy with the lower payments.

    Market Update

    FHA loans and are going strong. Franklin Loan Center’s in-house closing platform is getting the job done quickly and the ability to sign loan docs in-house makes it easy for the clients with out-of-the-area escrow companies.

    Monday, August 18, 2008

    Tough to get qualified?

    This week there are several important reports coming out to gauge where the economy is and is going. With the current volatility in the mortgage industry, true knowledge and insight are more valuable than ever, which is why I monitor the market throughout the day and keep you informed of changes that impact you.

    Even though the media is saying it’s tough to get qualified for a mortgage I am not finding that to be true. Let me know what I can do to help your clients get qualified! Make it a great week!

    Friday, August 15, 2008

    Market Update

    Market Update

    Mortgage Bonds are trading higher this morning, despite a report that manufacturing in NY is stronger than anticipated.

    Normally a better-than-expected economic report would be bad for Bond prices. However, the declining prices of oil, precious metals and other commodities have decreased inflationary pressures and have helped push Bonds higher so far today.

    We got a rally late today for the better I recommend floating for now.

    Tuesday, August 12, 2008

    The Fed announced on Tuesday

    The Fed announced on Tuesday that they have decided to keep the Fed Funds Rate at 2%, and released a statement that hinted they may not raise the Fed Funds Rate in the near future.

    Wednesday, July 30, 2008

    Down Payment Assistance (DPA) is being threatened

    Hello Friends and Real Estate Professionals,
    You may be aware that Down Payment Assistance (DPA) is being threatened and we only have a couple of days left to prevent this new legislation.
    79% of all mortgage transactions year-to-date have been backed by FHA (Federal Housing Administration). Over 80% of these FHA transactions involved some form of seller funded DPA.
    If this legislation is approved it will drastically affect, impede and reduce ALL of our abilities to buy, sell or lend on a home.
    I would like to ask you all to help by clicking this link taking 60 seconds to send out an email that will go to HUD, Congress and our Local Senate Representative. I believe your efforts will help defeat a law that will facilitate a collapse of our local and national industry.
    On a side note, while the legislation says no more DPA after Oct 1st 2008, please be aware that we must stipulate the last day of funding if the bill passes be August 29th in order to give time to get the loans sold off of bank lines.
    To all Realtors:
    We must get these people into houses by August 29th(CORRECTION SEPTEMBER 29TH) to be safe. Franklin Loan Center is a direct endorsement lender for FHA loans, which means we can underwrite FHA loans and prepare loan documents in our local offices. This will save your clients valuable time. Time is running out so please act now and get your FHA buyers off the fence and into their new home before it’s too late. Once Down Payment Assistance is gone, it’s gone. Feel free to call us so we can explain this and forward the information to your buyers to ensure they understand the magnitude of this legislation. It would be our pleasure to help in any way we can; be it marketing your listings, helping your buyers qualify for a loan or simply being an information resource for you.

    Sunday, July 27, 2008

    Last weeks rates improved slightly

    Last weeks rates improved slightly as bonds tried to rebound off the previous weeks losses. Philly Fed President is continuing to warn about inflation and it’s possible that fed rate hikes will be coming shortly. This is a good thing for the bond market because mortgage rates should come down. Following that your wallets at the pump should hopefully stay full. See the newsletter below to get some helpful gas saving tips that you can pass along to your clients.

    Make it a great week!

    Friday, July 25, 2008

    Clients & Friends,

    Happy Friday! Please don’t forget to RSVP for the event on Monday morning at 8:30am. RSVP at The flyer is attached. Thank you if you’ve already RSVPed. I’ve got your seat reserved.

    Market Update

    New Home sales for June were reported at 530,000--which was far better than expectations of 505,000. In addition, Orders for Durable Goods came in well above expectations and the Consumer Sentiment Index shocked the markets with a very robust reading.

    The positive readings are helping to strengthen the US Dollar and even lower Oil prices. As a result of these shifts, a Fed rate hike may be on its way in within the next few months--though probably not at next week’s Fed meeting.

    Wednesday, July 23, 2008

    Nehemiah Program

    Nehemiah Program
    Housing Bill an immediate threat to down payment assistance ( DPA) programs.

    The Senate and House of Representatives are fast tracking this bill, and is in danger of shutting it down. Today DPA comprises nearly 40% of all FHA’s loan volume, and will be a huge loss if passed.

    So you must act now with any of your potential buyers who have be pre-approved to use the Nehemiah DPA program. I would hate to have a family miss out on their dream home because of procrastination on their part, or congressional action. I do not have any more information than what I have told you at this time, but this program could disappear tomorrow, next month, or hopefully never. What we do know though is that it’s under attack, and is in danger of being closed.

    Friday, July 11, 2008


    Do you have a listing that needs repair to be habitable or comply with lending guidelines? Do you have a buyer looking at a property that needs some serious help?! Ask me about REHAB LOANS to get your buyers the homes the want and the financing they need to turn a junker into a castle. Ask me how it can be done.

    Market Update

    Crude oil futures jumped almost $5 per barrel this morning to hit a new high over $147 per barrel. The sharp rise is due to increasing tensions in the Middle East between Iran and Israel, as well as rebel threats in Nigeria and a planned strike of oil workers in Brazil next week.

    I’ve had several questions about Fannie and Freddie Mac today. See the article below.

    Friday, July 4, 2008

    Happy 4th of July!

    Dear Friends,

    Happy 4th of July! The Rate Sheet is attached.

    It’s been an up-and-down morning in the markets today on the heels of this morning's weak Jobs Report. The Labor Department reported that the US economy shed 62,000 jobs in June, which is slightly more than estimated. Job losses in April and May were also revised to show an additional 52,000 jobs lost in those months.

    The Initial Jobless Claims report also came in--showing more weak signals in the labor market, as layoffs have breached levels typically associated with recessions. Despite expectations of a slight decrease, the unemployment rate remained at a four-year high of 5.5%.

    In other news, as expected, the European Central Bank raised its key lending rate by .25% to 4.25% in an effort to rein in escalating inflation in the 15-nation Eurozone. It will be important to see how this news impacts our markets in the weeks ahead.

    Wednesday, July 2, 2008

    Writing an FHA and Nehemiah Program Offer: Structuring the Purchase Agreement

    These are the instructions for writing an FHA and Nehemiah offer.

    First and foremost, the seller must pay the tax service fee of $81.00.

    Check the FHA Loan box.

    Page 1:

    If asking the seller to pay for a closing cost credit FHA allows a 1-6% closing cost.

    "Seller to contribute 3% for non-recurring and recurring closing costs."

    If asking the seller to contribute toward the Nehemiah Program the seller can be asked to contribute up to 6% plus a $599 processing fee for re-sell (Short Sale and Foreclosure) properties and $399 for new construction.

    "Seller to contribute 3% of the sales price toward the Nehemiah Program plus $499 processing fee."

    Page 6: Other financing terms (line 24)

    "The seller is aware the homebuyer is receiving downpayment assistance through the Nehemiah program as set forth in the related Participating Home Agreement."

    Addendum - Participating Home Agreement to be completed and submitted with the offer.

    0. Print the attached Participating Home Agreement to complete and
    submit with offer.
    1. Calculate the percentage of downpayment assistance requesting
    1-6%. Typically 3%.
    2. Add the processing fee. $499 for re-sell properties and $399 for
    new construction.
    3. Add the two dollar amounts together for a total dollar amount due
    to the Nehemiah Corporation of America.

    Monday, June 30, 2008

    Fed held constant the Fed Funds rate

    Last week the Fed held constant the Fed Funds rate, which had investors ponder the stability of the market. We know the Fed should hike rates to hedge inflation, but the question is will they and when? As the Fed was cutting rates remember I warned that mortgage rates would go up and hey have. I want to mention that if the Fed hikes rates mortgage pricing will get better. I’ll keep you informed as I get the information.

    It’s a short week for the Fourth of July weekend. I hope you are safe while enjoying the festivities!


    FHA Direct Endorsement

    Dear Friends and Family,

    I’d like to take a minute and let you know how the company I work for is staying competitive in this ever-changing market. I’ve found recently that FHA loans are one of the fastest growing loan programs in the market today. I am helping families buy homes with little to no money down. Zero to 3% down is still a possibility even in this difficult market.

    Franklin Loan Center has just completed its FHA Direct Endorsement approval process. This means I am now able to process, underwrite, approve, draw loan documents, and fund FHA loans IN-HOUSE with my Team!!! FHA 30 days or less!! This means you get the house you want at low interest rates and payments with my no-hassle loan close guarantee.

    The reason I share this with you is because we’ve you may have a friend, co-worker, or family members who have been thinking about buying a house. Let me know if I can help with my FHA program and expert knowledge.

    By the way, I am never too busy for any of your FHA Lending Needs.

    Friday, June 27, 2008

    The Fed kept interest rates

    Rates closed the week down on some products and flat on other.

    ·The market is still volatile and rates are changing everyday.
    ·The Fed kept interest rates at 2.00% and 5.00% for the prime rate. This is what I predicted last week would happen.
    ·Mortgage pricing went on a rally today and things are looking pretty good at week’s end. We are currently testing levels of support. I would encourage your clients who may be purchasing in the next 30-45 days to get locked in if they have an offer accepted. Things are getting good.
    ·Mortgages have shifted a lot in the “jumbo” market and make sure you see the difference for the 30 year fix and 5 year ARM for JUMBO loans!

    Monday, June 23, 2008

    I am your FHA expert!


    We are off to a great start this week with the up-coming reports for the market. The Fed will be talking about plans to maintain the fed funds rate where it is or to hike it hedging inflation. Remember, if the Fed increase the rates it is good for mortgage pricing and interest rates will go down.

    How often do you need to change your oil for the car? It depends, so see the newsletter below.

    Oh by the way, I’m never to busy for any of your purchase or refinance mortgage referrals! I am your FHA expert! Make it a great week!

    Friday, June 20, 2008

    Get a Good Faith Estimate

    Market Update

    Rates closed the week down on some products and flat on other.

    The market is still volatile and rates are changing everyday.
    Get a Good Faith Estimate from your lender when shopping for a mortgage to understand the costs involved with paying points or not paying points.
    After coming off the poor performance week in the market mortgage pricing has gotten better this week with a more than 100 bps increase in the market.
    In other news, oil prices bumped higher once again after news of a potential strike at a Chevron plant in Nigeria, which is Africa's largest oil producing nation. If oil prices continue on their current path, it may apply selling pressure to both Stocks and Bonds.
    I’m predicting that if inflation continues to be a concern interest rates will rise.

    Monday, June 16, 2008

    The markets volatility

    The markets volatility sure isn’t loosing any gas and slowing down. That’s right take a look at this week’s newsletter which continues to discuss the market volatility and inflation concerns by investors. What will it take to get oil to $100 a barrel down from $130? Some say a fed funds increase.

    Also, have you noticed signs that tomatoes are in trouble? The FDA has warned about salmonella in red raw tomatoes. See below.

    Make it a great week and stay hydrated out there! IT’s HOT!

    Monday, June 9, 2008

    June's monthly newsletter

    Dear Clients, Family & Friends,

    The summer is here can you feel it? The real estate market is not slowing down this summer so if you’re thinking of buying a property I can get the financing ready for you! There are many programs for 1st time home buyers and FHA is a great way to get lowest monthly payments and low to little money down.

    June's monthly newsletter can give you some tips to save money with retailers on how to use your stimulus check. It’s all about the plastic… credit cards! See this issue to get money saving tips!

    Friday, June 6, 2008

    Rates closed the week

    Rates closed the week up on some products and flat on other.

    · Unemployment rate is up to 5.5% from 5.0% last month
    · The half point raise was the biggest jump since February of 1986
    · Oil prices continue to rise and started the day at $136 per barrel. Watch this as inflation causes interest rates to increase.
    · It’s NOT all bad though… the stock market lost some of its gain today which is good for mortgage pricing. We’ll see how things play out next week.

    Friday, May 30, 2008

    Inflation, inflation, inflation.

    Clients & Friends,

    Market Update

    Rates closed the week up by about .250% across the board on all products.

    Inflation, inflation, inflation. As I have said before, inflation is the arch enemy of bonds, and can cause rates to jump instantly on even a whisper of the word. Inflation erodes the fixed rate of return by bond holders enforcing bonds to raise their rates to attract investors. Stay tuned until next week, and keep your fingers crossed for a reversal and rally in rates back down.

    Friday, May 23, 2008


    CHECK OUT TODAYS BONUS FLYER! Want to save your client $375?
    Print out this FREE APPRAISAL flyer and give it to your clients. I’ll pay their appraisal fee at closing.

    Market Update

    ·Loans from $417,000 to $500,000 are called Agency Loans and recently the pricing has become better across the board.
    ·Rates this week are flat to up after the Fed meeting minutes came back with talks of high inflation
    ·Have your home re-assessed for your property tax bills. The county is reassessing property values to lower tax bills. Riverside County residents needing more info may contact the assessor's office at 800-746-1544 or
    ·Print the FREE APPRAISAL flyer for new referrals.

    Attached you will find my current rate sheet for the weekend. These rates have been accumulated from, Chase, Wells Fargo, IndyMac, Countrywide, Citi Mortgage, Wachovia, and Everbank. I have handpicked the best rates from all these banks for the most popular loan programs, so that I can ensure you and your clients the very best deal.

    Friday, May 16, 2008

    Rates closed flat

    Market Update:
    Rates closed flat for the week which is fortunate because we had a bad stretch mid week with rates rising temporarily.
    Agency Loans are priced great, but make sure to have your borrowers call me to make sure they qualify for the restrictions attached to these mortgages.

    Agency jumbo loans, are loan amount between $417K - $500K. There are only two competitive programs offered.
    30 year Fixed – 6.000%
    5 Year Fixed Arm – 5.375%

    Wednesday, May 14, 2008

    Pre-approval letters

    Many of my referring agents have asked me to forward to them a word copy of my simplified loan application. This form is one easy way to get your clients pre-approved with very little hassle or paperwork. You can also direct your clients to my website where this form can be found as well. Your clients can also get pre-approved by calling me directly, you calling me with their contact information or by e-mailing me.

    The mortgage business today has become so volatile, that it’s vital to make sure your clients are pre-approved correctly with a reputable company.

    Here are some red flags that should be noticed by you on any Pre-approval letters,.

    · Not on letterhead or signed
    · Out of town lender
    · The client is doing a 100% loan
    · The lender is a friend or family member
    · Lender & Realtor are the same
    · Franklin Loan Center has not pre-approved your client ( Ha, Ha )

    Pre-approvals if done correctly can be done in as little time as 10 minutes so why not value your time and make sure you’re not wasting your time and $4 a gallon of gas money. I have frequently been pre-qualifying buyers while sitting in the car with their agent, and it’s a smart way to start your day. I am available 7 days a week, so feel free to optimize my experience to help you be more efficient.

    Friday, May 9, 2008

    Are we at the bottom or near the bottom?

    I think it’s actually happening! Are we at the bottom or near the bottom? It’s really too close to tell, but close it is. I’ve been reading several articles where banks are getting the large cash infusions to increase liquidity to originate more loans. It’s no secret banks want to do business, but what kind of loans are they looking for?

    Although there are selective stated income programs still available prepare your clients for the current mortgage market. You can help set their expectations. Prepare your clients to provide the necessary documents for qualifying for a full documentation loan. See the attached flyer to see what they’ll need. It’s basically back to normal lending requirements where borrowers provide their tax returns and source their down payments. Not only this, but they will get the best interest rates and lowest payments out there!

    Call with any questions and let’s set ourselves up for success together! Make it a great week!

    Friday, May 2, 2008

    Market Update and FREE APPRAISAL flyer

    Clients & Friends,

    CHECK OUT TODAYS BONUS FLYER! Want to save your client $375? Yeah of course you do!!
    Print out this FREE APPRAISAL flyer and give it to your clients. I’ll pay their appraisal fee at closing.

    Market Update

    ·The jobs report came in at 20,000 jobs lost this month, which is a lot better than expectations of 75,000.
    ·Float interest rates until next week as a result of the market opening weak this morning and since improving.
    ·Do you have a cash buyer? Ask me about my Strategic Equity planning program and help maximize your clients’ investment.
    ·Print the FREE APPRAISAL flyer for new referrals.

    Attached you will find my current rate sheet for the weekend. These rates have been accumulated from, Chase, Wells Fargo, IndyMac, Countrywide, Citi Mortgage, Wachovia, Everbank, and Washington Mutual. I have handpicked the best rates from all these banks for the most popular loan programs, so that I can ensure you and your clients the very best deal.

    See the article below…

    Smaller Property Tax Bills in the Desert Sun April 27, 2008.

    Make it a fantastic weekend and I’ll talk to you soon!

    Monday, April 28, 2008

    Ready for Spring Cleaning?

    This is going to be an important week in the financial sector. There is a Fed meeting on Wednesday where we expect the Fed to cut another 0.25% to the Fed Funds rate. We also have the PCE index coming out on Thursday. Remember the PCE is the best indicator of inflation. The most important news though is how the Fed is treating inflation and their words in the report regarding inflation.

    Investors feel like this may be the end of the credit crunch, which is certainly good news, and several banks are getting large cash infusions from investors which shows market confidence.

    Ready for Spring Cleaning? There are also tips this week on how to do your spring cleaning.

    Written by MMG...
    In other headlines, Existing Home Sales met expectations, but New Home Sales numbers for March were worse than expected, possibly due to the large increase in the costs for materials needed to construct a home. But then there was a change in climate on Friday, as inflation news from around the World created some strong adverse headwinds for Bonds and home loan rates. Overall, home loan rates ended the volatile week unchanged to slightly higher.

    Now is still a good time to take advantage of historically low home loan rates before more inflation talk pushes them higher. I'm always here to help advise you, your friends, and your matter the season!

    After last week's relatively slow economic news calendar, things will heat up this week with several events that have the potential to move the market. On Wednesday, the Fed will announce their interest rate decision...and then the very next day, the Fed's most favored gauge of inflation will be released, the Personal Consumption Expenditure Index (PCE). It will be interesting to play armchair quarterback to the Fed's decision, and watch what the inflation numbers reveal! And let's not forget, on Friday we will see the important Jobs Report, where early estimates are for a net loss of 80,000 jobs.

    As you can see in the chart below, Bond prices ended the week between a technical "floor of support" at the 200-day Moving Average and an overhead "ceiling of resistance" at the 50-day Moving Average...and that ceiling might just stop any improvement for Bonds and home loan rates for the short term, unless the news of the week is really Bond-friendly. We'll have to wait and see if the week's upcoming news leads to calm or stormy times ahead.


    ...and that means it's time to wash away those winter blues! In fact, according to the Soap and Detergent Association - did you even know there was such a thing? - three-quarters of Americans engage in spring-cleaning. In fact, their surveys indicated that more than 80 percent of people who spring clean agree that it helps them save time throughout the year, and 96 percent of people donate or discard items during their spring-cleaning.

    But the advantages can go much further than that. Check out these top ten spring-cleaning activities, compiled by, that can help make your home healthier and safer:

    Thoroughly dust your home. Also clean any air conditioning and heating filters, ducts, and vents to minimize pollens and other airborne allergens.
    Organize your medicine cabinet. Throw away expired medications and old prescription medicines that you no longer need.
    Inventory your garage and basement. Get rid of any old paint, thinners, oils, solvents, stains, and other similar items you no longer need. Note: You may need to take these items to a hazardous waste drop off center.
    Inventory under your sinks and around your house. Dispose of old or potentially toxic cleaning products.
    Have your chimney professionally cleaned. This will help you lessen the chances of carbon monoxide exposure when the cold weather returns.
    Clean all mold and mildew from bathrooms and other damp areas. Use non-toxic cleaning products.
    Check your rugs. Make sure that rugs on bare floors have non-skid mats and that older or dusty mats are either washed or replaced.
    Inspect outdoor playground equipment. Make sure that all elements are sturdy and safe, especially guardrails, protruding bolts, and other potential sources of injury.
    Change your batteries. Do so for both smoke detectors and carbon monoxide detectors.
    Collect old batteries throughout the house for disposal. Dispose of them in a battery recycling or hazardous waste center.
    And make it easy on yourself - take it one room, one cleaning task at a time. You'll be more likely to accomplish more if you tackle each spring-cleaning project separately. And that's great advice...any time of year!

    Important week in the financial sector

    This is going to be an important week in the financial sector. There is a Fed meeting on Wednesday where we expect the Fed to cut another 0.25% to the Fed Funds rate. We also have the PCE index coming out on Thursday. Remember the PCE is the best indicator of inflation. The most important news though is how the Fed is treating inflation and their words in the report regarding inflation.

    Investors feel like this may be the end of the credit crunch, which is certainly good news, and several banks are getting large cash infusions from investors which shows market confidence.

    Ready for Spring Cleaning? There are also tips this week on how to do your spring cleaning.

    Make it a great week!

    Friday, April 25, 2008

    Market Update April 25th

    Market Update April 25th:

    Rates have certainly been busy moving up and down, but no worries! This is just part of the market. Rates don’t typically move this much, but in this market anything can happen. Remember what goes up must go down and it’s all part of the market game. Stay tuned for more information.

    · Wednesday the Fed has a meeting schedule and from what I understand there is a 75% chance the Fed will cut another 0.25% to the Fed funds rate
    · Interest rates are down by about 0.125% this week when compared to last week
    · Your client should float at least until Monday or Tuesday because rates are usually get a little better right before the Fed meeting

    Make it a great weekend! Oh by the way, I’m NEVER too busy for any of your referrals.

    Sunday, April 20, 2008

    Simplified Loan Application.

    Simplified Loan Application.

    Nehemiah Foundation Sellers Program

    Nehemiah Foundation Sellers Program

    Written by Sean La Rue | Franklin Loan Center | Loan Officer |
    Phone: 760-835-5663 | Email: | April 20, 2008

    Q. I know it’s a great time to buy a house to take advantage of the market, but I don’t have a down payment. My lender says I a need 3-5% down payment. How can I buy?

    A. You can use an FHA loan to receive down payment assistance from several non-profit organizations. Specifically, the one I like to use is called Nehemiah. For more information see Your real estate agent will negotiate that the seller contributes to this program. Nehemiah, combined with FHA, allow you to buy a home with no money down.

    Q. My loan officer told me that I need to have 3 months of Principal, Interest, Tax and Insurance (PITI) reserve in my bank. Do I have to have this money in the bank?

    A. Some conventional loan programs require this but if you are financing through FHA and are buying a single-family residence or duplex there is no reserve requirement.

    Q. I’ve heard about the sub-prime credit programs are easy financing right now, but do I need a perfect credit report to qualify?

    A. FHA financing is not a sub-prime cure-all. Although you don’t have to have perfect credit, FHA allows down to a 581 FICO. I can help you fix your credit. Call me to schedule an appointment.

    Q. How much are the closing costs?

    A. Closing costs can include points and title and escrow, prepaid interest, etc. Call for a free good faith estimate. Sales Price determines closing costs. Closing costs could also be determined by your choice to escrow taxes and insurance. Ask for Sean La Rue YOUR Loan Professional at 760-835-5663.

    Q. I’m buying an investment home or Second Home. Do I qualify for FHA financing?

    A. FHA financing is only for primary residence buyers. Call for up to date loan requirements.

    Q. I want to write an offer. What is the best way to write up the purchase agreement? What documentation do I need?

    A. Go to and look for Nehemiah Program Sellers Form.

    Nehemiah Program Sellers Form

    Nehemiah Program Sellers Form

    Friday, April 18, 2008

    Market Update April 18th

    Market Update April 18th:

    This morning’s rally in the bond market today has been good considering rising interest rates earlier in the week. Mortgage pricing went down for the day.

    The chances of 50 basis points of easing at the FOMC meeting April 30 have evaporated and are now chomping away at the 25 basis point cut signaling that the credit crisis could be near the end.

    ***Do you know someone who wants a mortgage at less than 5%? Call me for details.***

    ***100% financing to $500,000? Ask me how.***

    See the articles below: The big news for the day was Google reports a 30% profit increase which blew most analyst projects out of the water.

    Have a great weekend and by the way, I’m never too busy for any of your mortgage referrals!

    Tuesday, April 15, 2008

    Last Week in Review

    Written by Mortgage Market Guide...

    For the week of Apr 14, 2008 --- Vol. 6, Issue 16

    Last Week in Review

    "IT REQUIRES A GREAT DEAL OF BOLDNESS AND A GREAT DEAL OF CAUTION TO MAKE A GREAT FORTUNE." ~ Ralph Waldo Emerson. And a great deal of caution was definitely important last week, as "earnings season" began on Wall Street. First quarter earnings for Stocks got off to a bit of a rough start, with disappointing news from aluminum company Alcoa - always the first in line to report. And General Electric surprised to the downside on Friday, with worse than expected earnings and comments on future earnings, cautioning they'd likely be lower than previously thought. The Stock market didn't like the negative tone and lost some ground, while Bonds moved both up and down during the week - hurt by some inflationary fears, but helped by cash coming over from Stocks. For the week overall, home loan rates ended up close to where they began.

    In other news last week, "Meeting Minutes" from the March 18th Fed meeting revealed that infamous Fed Presidents Richard "Loose Lips" Fisher and Charlie Plosser both dissented from the recent decision to cut the Fed Funds Rate, stating that "inflation expectations could potentially become unhinged, if the Fed continues to lower the Fed Funds Rate in the current environment." Bold comments from two who clearly believe caution regarding inflation is of the utmost importance.

    And caution, rather than confidence, seems to be the word of the moment, as Consumer Sentiment for April was reported far below expectations, representing a 26-yr low for the index. This very ugly reading suggests that consumers may be hesitant to make large purchases, which does not bode well for future economic prospects.

    Despite the dark cloud cast from the negative economic news, the silver lining is that home loan rates are once again near levels not seen since mid-2005. But remember, these low rates can change quickly. To see how you may benefit from the current market conditions, feel free to contact me.


    Forecast for the Week

    And with the word "caution" in mind...there are several reports due this week which could impact the markets and home loan rates. Monday's Retail Sales Report will kick-off the week with some potential for volatility, and Wednesday will bring the inflation measuring Consumer Price Index, as well as a read on the housing market via the Housing Starts and Building Permits Report.

    Bonds continue to bounce around in a wide range - and remember, when Bond prices move higher, home loan rates move lower...and vice versa. The chart below shows how Bond prices are recently moving between a floor of support at the 50-day Moving Average, and an overhead ceiling representing recent price "highs".

    So stay tuned - if this week's news turns out to be as negative as it has of late, Bond prices and home loan rates could find a bit more improvement.

    Chart: Fannie Mae 5.5% Mortgage Bond (Friday Apr 11, 2008)

    The Mortgage Market View...


    "I shall never use profanity...except in discussing house rent and taxes." ~Mark Twain. April 15 is just a few days away...and hopefully this year's tax season hasn't caused too much profanity in your household. Of course it's always wise to be careful about criticizing the IRS, but no matter what you feel like saying about them at the moment, they have compiled these helpful tips for last-minute filers:

    Go electronic. The biggest advice the IRS has for last-minute filers is to file an e-return rather than a paper tax form. The IRS considers this the best step for ensuring that your return is complete and accurate.

    Check it carefully - then check it again. If you choose to file a paper return, make sure you double-check your numbers and figures. The numbers to check most carefully are the identification numbers--usually Social Security numbers--for each person listed. Missing, illegible, or incorrect Social Security Numbers can reduce or delay a tax refund.

    Also, you should double check that you have correctly calculated the refund or balance due, and that you have used the right figure from the tax table. If you are entitled to a refund this year, make sure that your financial institution's routing and account numbers are entered accurately. Incorrect numbers can cause the refund to be delayed or even misdirected.

    Sign on the bottom line. Don't forget to sign and date your return. If you are filing a joint return, both spouses must sign it...even if only one had income. Also, anyone that you pay to help prepare your return must sign it as well.

    Make payable to...? If you owe taxes this year, you must make the check out to "United States Treasury." Do not make the check out to "IRS." Your payment should be enclosed with the tax return or the Form 1040-V, Payment Voucher (if used), but do not attach your payment to either document.

    Don't throw away those labels. If you choose to mail a paper return, use the peel-off label on the tax booklet. You can line through and make corrections right on the label if necessary. If you do not have a peel-off label, fill in all requested information clearly, including the Social Security numbers.

    Don't be late! By the April 15 due date, taxpayers should either file a return or request an extension of time to file. Remember, the extension of time to file is not an extension of time to pay.

    For more information, as well as forms and publications, visit Remember the official IRS governmental Web site is Don't be confused by internet sites that end in .com, .net, .org, or other designations instead of .gov. And for a complete checklist and a listing of some of the most common errors, visit, or call the IRS's TeleTax number, 800-829-4477.

    Friday, April 11, 2008

    Market Update

    Market Update:

    Rates are ending stable this week. With mortgage back securities at the highest levels of the year. This is good for mortgage pricing.

    GE annouced today that 1st quarter earnings are lower than expected and that future earnings will be lower than previously expected.

    I recommend to float interest rates until next week to see what the stock market does in reaction to the GE reports.

    ***Do you know someone who wants a mortgage at less than 5%? Call me for details.***

    ***100% financing to $500,000? Ask me how.***

    Monday, April 7, 2008

    Unemployment rate to nearly 5%

    Last week we had a poor jobs report reading for March with a loss of 80,000 jobs which increased the unemployment rate to nearly 5%. Remember, the jobs report is the economic number with the biggest impact on mortgage rates.

    Also, are you curious about your credit card debt? What should you keep your eyes peeled for? Have a productive week and make it great!

    Oh by the way, I’m NEVER too busy for any of your mortgage referrals.

    Friday, April 4, 2008

    Jobs Report

    Attached you will find my current rate sheet for the weekend. These rates have been accumulated from, Chase, Wells Fargo, IndyMac, Countrywide, Citi Mortgage, Wachovia, Everbank, and Washington Mutual. I have handpicked the best rates from all these banks for the most popular loan programs, so that I can ensure you and your clients the very best deal.

    Market Update:

    Rates ended down for the week by 0.25% on Conforming Loans 30 Fix and stayed about the same for Jumbo 30 yr Fix

    Today the jobs report came out with a revision of 80,000 job losses for March. This allows mortgage pricing to stay lower longer. It reported the biggest job loss in five years with the unemployment rate eclipsing the 5% mark.

    The jobs report is the economic number with the biggest impact on mortgage rates.

    Do you know someone who wants a mortgage at less than 5%? Call me for details.

    100% financing to $500,000? Ask me how.

    Have a great weekend and by the way, I’m never too busy for any of your mortgage referrals!

    Monday, March 31, 2008

    Timely Tax Information

    Welcome back to a beautiful Monday morning! Check out this week’s newsletter, which covers timely tax information to help you pass along to your clients. Taxes are a hot topic so pick a quick tip and spread the word. Also, the PCE index, or what I like to call the inflation report, is within the target range of 2% which is good news for mortgage rates. To learn more just read the newsletter below.

    Make it a great week!

    Although the newsletter is not attached to see the tips simply ask to be a part of the distribution list.

    Friday, March 28, 2008

    This week is ending on a high note ...

    Happy Friday,

    This week is ending on a high note as some reports give way to good mortgage bond news this afternoon. This week Core Personal Consumption Expenditure Index (PCE), which is the number one report to gauge inflation, shows us that inflation is right in line with Fed target rates between 1-2%.

    TAKE A LOOK AT THE RATES! Look at the conforming 3, 5, 7 year ARMs which have really low rates! In the low 5%!! These programs do have pre-pays.

    Wednesday, March 26, 2008

    100% financing

    Are you tired of your clients hearing NO, NO, NO, I can’t find anyone to qualify me on 100% financing, interest rates are too high, I don’t have enough money for a down payment or closing costs, or I am in a declining or soft real estate market and cannot meet my lender’s new qualifying guidelines?

    If you are tired of hearing these objections, then I can help you sell more homes because I can turn these frustrated clients into buyers.

    Call me today to discuss the benefits of FHA financing for your clients. I have a privately funded down payment assistance program that has been approved by the FHA to help get families into homes.

    This program allows:
    Down payment and closing cost assistance to the buyer
    Lower interest rates
    No declining or soft market policy
    Easier to meet with low or no credit scores needed
    No asset reserves required
    This program is restricted to primary residences only
    Full documentation, but also allows non-occupant co-borrowers to help qualify.
    The maximum loan amount 500K.

    The responsibility of executing this program correctly will be based on the ability of the buyer, seller, and lender all working together to accomplish our goal. I will be more than happy to school all who are involved in the transaction to help accomplish this goal.

    Tuesday, March 25, 2008

    The Mortgage Business of 2008 Quick Tips

    The mortgage business of 2008 is turning into a wild ride! It's like a never ending adventure that continues to throw a curve balls in my direction. Some of the things I've learned recently.

    1. Canadian financing... requires 30% down. No income needs to be verified, no social security number, or credit report. I've got several programs to help with Canadian or foreign national financing.

    2. FHA property flipping states that a seller cannot hold title to a property for less than 90 days which includes the purchase agreement dates. Make sure its more than 90 days from when the purchase agreement is signed.

    3. 100% financing is still available... ask me how.

    4. Most people don't understand the benefits of reverse mortgages. If you are home equity rich and cash flow poor reverse mortgages can make sense.

    5. Many banks are moving away from stated income, stated asset loan programs and most have discontinued no document and no ratio programs.

    Call Sean La Rue at (760)837-1488 or simply apply at Loan Application

    Monday, March 24, 2008

    Bear Stearns bailout

    I hope you had a relaxing Easter weekend. This weeks update covers the news about last weeks Bear Stearns bailout. Ever thought about the Pros and Cons of buying a car versus leasing one? This week’s update covers it all! Also, just in case you didn’t get a chance to read why new mortgage rates go up after a Fed cut see the attached article.

    I’d like to address one topic today. Have you ever noticed in the Desert Sun that many of the articles are written by the Associated Press? Ask your clients who wrote the articles they are reading and quoting and ask them if it’s a nationally related article or a local article. You may be surprised!

    Friday, March 21, 2008

    Bear Stearns Trials

    I hope you’re having a wonderful Good Friday!

    The Fed, this week, again lowered the Fed funds rate by another 0.75% to 2.25% making the prime rate now 5.25%! This is good news for consumers and holders of Home Equity Lines of Credit that are tied to the Prime interest rate.

    Last Friday the Fed reduced the discount rate by 0.25%. This came as a surprise as Friday (after-hours) rate decreases by the Fed haven’t happened in the last 30 years. The reason they did this was to help Bear Stearns and their investors.

    Attached is this week’s rate update! Please call with any questions and remember I’m never too busy for any of your referrals! Make it a great and productive weekend!

    Monday, March 17, 2008

    St. Patrick’s Day

    I’m sure you’re off to a very green St. Patrick’s Day! Last week the financial markets were pretty green for you too with mortgage rates dropping by as much as 0.25% for most programs. But be careful! With inflation numbers down reported last week the Fed could cut Fed rates by another 0.75% in tomorrows meeting. These rates are tied to the Prime rate, consumer loans, and credit cards, but the Fed rates are what the Fed lends to banks overnight! With a Fed cut, inflation could rise and when inflation rises mortgage rates are likely to go up. I recently sent out an article explaining this. If you’d like to look at it again please let me know. Make it a great week!

    Oh by the way, I’m never too busy for any of your purchase or refinance mortgage referrals! Have a safe and fun St. Patrick’s Day!

    MMG Weekly For the week of Mar 17, 2008 --- Vol. 6, Issue 12
    "JUST WHEN I THOUGHT I WAS OUT...THEY PULL ME BACK IN." Al Pacino in the 1990 film, The Godfather III And if Bonds and home loan rates thought they were out of the days of volatility...they got pulled right back in, as last week brought daily price swings of almost historic proportions. For the week overall, fixed home loan rates improved by about .25%.

    What led to the dramatic action this week? The bipolar emotional state of the markets began deeply depressed on Monday, but then were filled with joy Tuesday, when the Fed made an interesting move by announcing the creation of the new Term Securities Lending Facility (TSLF). The TSLF will provide borrowing banks with $200 Billion to draw on to help inject liquidity into the credit markets, and further, will accept some mortgage-backed securities as collateral, which effectively may help to "upgrade" the value and perception of battered Mortgage Bonds.

    But in the meantime...struggles are still being played out related to the downgrade and losses experienced by companies holding massive amounts of mortgage-backed securities. Headlines hit on Thursday about The Carlyle Group, which manages a portfolio of mortgage-backed securities, not being able to meet a margin call and being forced to sell off large amounts of mortgage paper into the markets at great financial losses. Then on Friday, the news broke that financial brokerage and investment banking giant, Bear Stearns had suffered enormous losses, and their lack of liquidity endangered them from going out of business...or "sleeping with the fishes". The new aforementioned TSLF is designed to help this type of liquidity problem, but it will not go into effect for a few weeks, and Bear Stearns would not last that long. Coming to the rescue with loans were both the NY Fed and JP Morgan Chase. These sure are exciting times.

    One bright spot for the financial markets was a low consumer inflation reading. The Overall and Core Consumer Price Index (CPI) figures were reported unchanged, far cooler than the expected increases of 0.3% and 0.2% respectively. These tame inflation numbers give the Fed a green light to cut the Fed Funds Rate by another .75% at Tuesday's meeting...but read on to understand exactly how this cut may impact YOU.


    Forecast for the Week

    So if you love all the excitement, drama, intrigue and crazy volatility of'll love the week ahead, as it is loaded full with market movers. We'll get the latest readings on the health of the manufacturing and housing sectors, but the main event will take place on Tuesday when the Federal Reserve announces its latest interest rate decision and Policy Statement.

    The Fed is expected to cut the Fed Funds Rate by another .75%. However, as we've seen following every Fed rate cut in the recent cycle, chances are very good that Bond pricing will worsen following the cut...which results in higher home loan rates. This happens because Fed rate cuts help to stimulate the economy, by making it less expensive to finance personal and business purchases...and this in turn fuels inflation, the arch-enemy of fixed return assets like Bonds, which home loan rates are based on.

    So a word to the wise - if you or someone you know has been ready to move forward on a purchase or refinance, there's no time like the present. Be sure to get in touch with me, so I can explain your options and help plan a great strategy for your home loan.

    Chart: Fannie Mae 5.5% Mortgage Bond (Friday Mar 14, 2008)

    The Mortgage Market View...


    These lines spoken by Michael Corleone to his brother Fredo could very well apply to small family businesses, which are critical to the nation's economy. In fact, according to the National Federation of Independent Businesses, more than 1.2 Million businesses across the country are owned and operated by spouses. While these thriving ventures in capitalism are great for the economy, they can cause a lot of stress on your family relationships. That's why experts recommend you follow a few simple suggestions to keep the business--and your family life--running smooth!

    Only Fools Rush In. Starting a family business is a huge commitment. Although it sounds romantic, it's a lot of work to...well...make it work. Before you jump in, consider what type of business is truly right for you; how the business will impact your financial plans; and how you'll still make sure you have time in your schedule to enjoy non-business related family time. Because, as The Don says, "a man who doesn't spend time with his family can never be a real man".

    Put It In Writing. The first step to making your dream a reality is putting together a business plan. The Small Business Administration has a great website that can help you write your business plan. You'll also need to apply for a business license, tax identification number, and even business loans. Again, you can find the most requested business documents on The Small Business Administration website.

    Clarify Roles and Responsibilities. To help avoid frustrations and arguments in the future, make sure everyone agrees on who will be responsible for what. Give yourselves titles and draft job responsibilities...then make sure everyone is happy with their role, and that all of the important everyday duties are covered. Make sure you determine who will pay the bills, who will negotiate contracts, who's in charge of the marketing plan, who does the hiring, and so on. You don't want to risk overlooking something or arguing about it later.

    Protect Yourself. More important than having Luca Brasi as your bodyguard is making sure you plan your finances and stock away plenty of money to hold you over, especially during the start up phase. Most experts recommend having three to six months worth of living expenses in savings, depending on whether one or two people in the family will be relying on the business as their main income. You'll also want to meet with a financial planner to make sure your retirement and other financial plans stay on track - and if you need a referral to a great financial pro, just let me know.

    Set Boundaries... and Stick to Them! It's easy to let the business take over your family life. Little by little the business successes and setbacks slip into family conversations... it's only natural. But don't let them take over completely. To alleviate this problem, make sure you set up regular "business meetings" where you can talk about key issues and exchange ideas about the business. In addition, establish some off-limit times where you'll devote yourselves to each other and your family life. After all, even family businesses need some time "away from the office."

    Starting a business with your spouse or family is an exciting time. The key is to harness that excitement while staying cool-headed enough to make smart personal and financial decisions. If you or someone you know needs help with these important details, please don't hesitate to call. I'll be happy to discuss your needs and put you in touch with other professionals that can help.