Mortgage scams coming to an end?

After year and years of abuse, it appears a big area of real estate transaction abuse may be finally coming to and end. What is that you say?  Something you probably experienced, but didn’t realize, which is known as a Marketing Service Agreement, or MSA.

MSA are agreements between various companies, more often than not, companies owned by the same people, to steer you into using the services of the other company.

For example, you buy your home using a Real Estate Agent from ABC Realty, who talks you into getting your mortgage loan from their affiliated company ABC Mortgage. Then they get you to close your home loan at their affiliated Title Company, ABC Title. Some, even go as far as even trying to get you to get your homeowners insurance from their affiliated company!  cfpb_logo

Another great example is in new construction, where the builder uses fake incentives (like free appliances) if your use the mortgage company and title company they own.

These MSA have become prevalent in the market, but have started to fall out of favor with many companies since the CFPB (Consumer Financial Protection Bureau) started going after these service agreements over their legality. Numerous companies have been slapped with large fines for their practices, so many others, seeing the writing on the wall, and just getting out of MSA’s all together.

Essentially these agreements require one company to be obligated to recommend the other, even when they know there is a better alternative for the client.

Almost always, it comes down to money. If the client believes they are required to use the company and they don’t shop, or are not allowed to shop, what sort of deal do you think the related provider is providing?  incentive2That’s correct, rare is their offering the best deal, and many times, the consumer is paying a significant premium for the related company services. Because the related provider costs more, if allowed to shop, it would usually put their own overpriced companies at a competitive disadvantage.  Therefore many companies employ tactics to scare or otherwise discourage clients from shopping.  The aforementioned builder incentive is classic. People, the builder is NOT giving away anything. The appliance allowance, or finished basement upgrade is already built into the price of the house. They only “offer” that as a great incentive for you to also use their MSA partner.

While MSA’s are not currently illegal, the CFPB has strongly stated that if you are going to be making a referral, it better be because it is the best deal from the client, and not the best deal for them.

The bottom line for a home buyer is that you should always shop for the other services.  Almost without fail, because of the nature of Marketing Service Agreements, you’ll usually get a better deal somewhere else.

 


How Real Estate Agents Risk their License everyday

Don’t risk your Real Estate License

Many Real Estate Agents put their license at risk on a daily basis without knowing it.  Generally this is by stepping outside of their official duties, and stepping into areas they shouldn’t.

Title Company Risk

Did you know that most states have insurance solicitation laws that may apply when you refer a client to an in-house title firm (or one with which you have a Marketing Service Agreement)?

That means that you might need a title insurance license to make certain referrals. The safest thing a real estate agent can do is to discuss title, what it is, and let their clients decide who to use.images1923532412

This includes real estate agents automatically ordering title services from their preferred title company without talking to clients and getting their permission.

Mortgage Risk

Did you know that mortgage laws also prevent non-licensed mortgage originators from discussing loans, loan terms, programs and interest rates?  A Mortgage Loan Originator License must be obtained BEFORE doing any of the following residential property mortgage loan activities: soliciting, originating a loan application, offering, or negotiating any residential mortgage loans.

Can are real estate agent refer a client to a lender or Loan officer?  You bet, but they need to be very careful if they suggest loan programs, or talk about interest rates. A real estate agents best bet is to simply tell the client that they are not a lender, and they need to ask the Loan Officer all mortgage questions.

CFPB (Consumer Financial Protection Bureau)

“Solicit” means attempting to sell or asking or urging a person to apply for a particular kind of insurance or loan from a particular company, and no person shall sell, solicit, or negotiate any insurance or mortgage without a license.

Regulators at the CFPB are turning their heads towards Real Estate Agents, now that they have caused a lot of headache in the banking, mortgage, and credit card industries.  Just like giving legal advice,  it is generally best for real estate agents to simply avoid the potential trouble, and think before you act, even if your heart is in the right place by not giving advice and referrals.


How Mortgage Rates Change

Minneapolis, MN:  Many people believe that if you call around to enough lenders, that you will find someone offering a great deal.  The reality is that it doesn’t really work that way.  We generally say that if you call around to enough lenders, you might find the biggest liar.

Are All Lender Essentially The Same?

First understand that for all your traditional loans; FHA, VA, Fannie Mae, and Freddie Mac loans, which encompass the vast majority of all mortgage loans done in this county, every mortgage lender follows the same rules, have the same underlying costs, and set rates based on the same thing.  If my rates go up, so do theirs.  If my rates go down, so do theirs.

worth_balanceEver notice that most of the time, when purchasing the same item at Target or Walmart, the price is virtually the same thing.  Maybe just a tiny difference?  The same thing goes with mortgage loans.

Are there minor differences in mortgage companies rate?  Yes, but generally, the difference between the best and the worst on any given day is about .25%, and really only has to do with overhead, not one being able to really offer something better.

If my cost is the same as their costs, but they have to pay for advertising on all TV channels, radio stations, and all over the Internet.  If they have to pay for stadium sponsorships, and the brink and mortar buildings on every corner, but I don’t… Who do you think can then offer better deals?  Yes, it is that simple.

So What Changes Mortgage Rates

Long term fixed rate loans, like Conventional fixed rate loans and Government back VA Loans and FHA Loan lenders all set their rates based on the pricing of Mortgage Backed Securities.  These mortgage bonds are traded in real time, all day in the bond market.

This means rates or loan fees (mortgage pricing) moves constantly throughout the day, being affected by a variety of economic or political events.  The bond market most days trades in a small zone. So the mortgage rate the lender sets in the morning, is usually good all day long.  But sometimes, the bond market has bigger changes though out the day, meaning a mortgage lender could potentially change rates during the day, sometimes even multiple times in one day.

This can be very frustrating for mortgage shoppers.  You call this morning to get a mortgage quote. Quote in have, you talk to your spouse about it, calling back in the afternoon, just to get a different quote.  Sometimes this change is in your favor.  Sometime it is not.

Therefore tracking these securities in real-time is critical. When MBS pricing goes up, mortgage rates or pricing generally goes down.  When they fall, mortgage pricing goes up. Click this link to track our live mortgage rates for MN, WI, and SD.

Working with a mortgage loan officer who knows and understands the mortgage back security market, someone who can help you understand when to lock your interest rate, or if you should float your interest rate it critical.

I am one of those Loan Officers, not just your typical Loan Application Clerk.  I lend in MN, WI, and SD.


New FHA Streamline Refinance Guidelines

New FHA Streamline Refinance Rules

St Paul, MN:  Home owners with an existing FHA mortgage loan – rejoice. Washington has announced new guidelines to make it cheaper and easier for homeowners to refinance FHA mortgages. The reason is pretty simple – since FHA already backs your mortgage, they’re the ones who are on the hook if you default. So if refinancing will help make your mortgage more affordable for you, it makes sense for them to help.

The updated guidelines apply to FHA Streamlined refinancing, which is about as close to automatic loan approval as any refinance program can get. There are many variables to the program, but under the best circumstances, you don’t even need an appraisal, making it a great loan for underwater home owners.

Reduced FHA Fees

The changes announced dramatically reduce some of the fees usually charged for FHA mortgages and refinancing. FHA loans have two major mortgage insurance parts. The upfront fee, and the monthly mortgage insurance. For refinances starting June 11th 2012 and after, the current upfront fee of 1 percent of the loan amount is being reduced to a mere 0.01% – equal to $10 on a $100,000 mortgage – while the annual insurance premium is being cut by more than half, to 0.55 percent of the balance, down from 1.15 percent currently.

The administration estimates the reduced annual fee will save an additional $95 a month on a $175,000 mortgage, on top of the actual savings from refinancing to a lower mortgage rate.

Anyone can with an FHA mortgage can refinance at anytime, but to qualify for the reduce fees, you must have obtained your current FHA mortgage prior to June 1, 2009.

Home Lost Value?

The FHA streamline refinance option that does NOT require an appraisal is a great option for homes that have lost value. Homeowners can be underwater on their FHA mortgage (i.e., owing more than their home is worth) and still qualify for refinancing. In fact, there’s no limit on how far underwater a borrower can be and still get an FHA Streamline Refinance.

If you’re underwater, but have a second mortgage or HELOC (home equity line of credit)  – you’ll have additional challenges – so be sure to speak with a good licensed loan officer to determined your exact situation.

Bottom Line

FHA does not do loans. Lenders do loans that FHA insures. Although FHA has pretty generous guidelines for refinancing, it’s still the lender’s call on whether to refinance or not. Some lenders will have tighter guidelines, and some may even refuse to refinance a mortgage even if it appears to meet FHA requirements. The new guidelines remove some of the obstacles that sometimes make lenders reluctant to do an FHA streamline refinance, by taking such loans out of the formula used to assess their performance as FHA approved lenders. Since many of these mortgages are considered somewhat riskier than more recent home loans, some lenders have been reluctant to refinance them for fear of damaging their rating with FHA.

To see if you can obtain an FHA mortgage refinance, check with your local approved FHA mortgage lender.

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$25 Billion Mortgage Settlement for lender abuses?

FEDERAL GOVERNMENT AND STATE ATTORNEYS GENERAL REACH $25 BILLION AGREEMENT WITH FIVE LARGEST MORTGAGE SERVICERS TO ADDRESS MORTGAGE LOAN SERVICING AND FORECLOSURE ABUSES

$25 billion agreement provides homeowner relief & new protections, stops abuses

WASHINGTON–U.S. Attorney General Eric Holder, Department of Housing and Urban Development (HUD) Secretary Shaun Donovan, Iowa Attorney General Tom Miller and Colorado Attorney General John W. Suthers announced on 02/09/12 that the federal government and 49 state attorneys general have reached a landmark $25 billion agreement with the nation’s five largest mortgage servicers to address mortgage loan servicing and foreclosure abuses. The agreement provides substantial financial relief to homeowners and establishes significant new homeowner protections for the future…

To read this press release in its entirety, look below:

The Real Story behind the story

Foreclosure abuses? This is a complete overstep of the government, a very bad precedent, and a major reason why this country is going down hill fast.

Whatever the reason, I’m sorry you lost your home to foreclosure.  I really am. But the bottom line is simply this.  You signed a promissory note. You promised to pay back the home loan. Period.  It didn’t say you promised to pay back unless...   Unless, you lost a job, unless the house lost value, etc. Nowhere in the documents did it say the bank was required to write down your mortgage balance, nor agree to any sort of loan modification.  The bank is a business.  They took a financial risk giving you a loan because of your promise to pay it back.

The abuse?  First a little background. When a lender forecloses on someone, they have to meet certain protection guidelines, including things as timely notice of impending action, etc. Ultimately, an officer of the company must sign off on the final foreclosure action, certifying the company has followed all required guidelines.

With the overwhelming new rush of foreclosures, the banks couldn’t keep up. So did they make a error. Yes. The banks did make a mistake. No doubt about it.  But what they simply did is rubber stamp the foreclosure certification, and used people other than an officer of the company to sign the document.

The government, after receiving a lot of pressure from consumer groups, and people desperate to save their home, ended up forcing the banks to this $25 BILLION agreement. The agreement will PAY, YES PAY people who were foreclosed on $2000. Many of those still in their home will have their balance written down by an average of $20,000.

Really? Should maybe the banks get their hand slapped.  Sure.  But to the tune of $25 Billion?  Of course not.  The underlying issue shouldn’t be that banks had someone not authorized sign a document, it should be the fact that people (on average) were over two years behind on the payments, and we are now rewarding them.

Bad precedent…  really bad!

 

——————- Full Press Release ——————-

 

Read more


HARP 2 not ready until March 15th – Why?

HARP 2 – Not ready until March 15th, 2012
Minneapolis, MN: There is a lot of consumers interested in a HARP refinance in MN and WI. The Home Affordable Refinance program allows home owners who have lost value to still refinance their homes are today’s low HARP  refinance rates.  HARP has been available since mid 2009.  HARP 2, which was announced in November 2011 removes some restrictions, and should help many more home owners refinance their home loans.

Officially, the the HARP 2 program started December 1. Unofficially, most lenders won’t be offering it until after March 15th, 2012. Let’s explore and understand why?

The original HARP program, which allows a home owner to be underwater on their home mortgage loan up to 125% loan-to-value is available today.

THE BIGGEST DELAY: Simple. Software. When a lender “underwrites” a loan, they actually do so through an AUS, which stands for Automated Underwriting Systems. The computer software evaluates the application, and gives an answer. The underwriter then verifies the computers decision. For example, the software may give a YES answer, then ask for pay stubs to verify income. The underwriters job is to then review the pay stubs to make sure the submitted income is the actual income.

Both Fannie Mae and Freddie Mac need to reprogram their computers, and they’ve indicated this will become effective March 15th.

BENEFITS TO LENDERS OF AUS: Can a lender “manually” underwrite a file?  Sure, but the biggest benefit of submitting a file through the automated systems is all about liability. Contracts with Fannie Mae and Freddie Mac protect a lender against liability for underwriting mistakes made by the lender of the original mortgage if the software said YES. Therefore smart lenders are not likely to take on the additional risk of a manual underwritten file.

THE RULES: Another major issue is simply getting the rules written, and distributed up and down all the lender channels. While Fannie Mae and Freddie Mac have indicated what their rules are, remember that they don’t actually lender to consumers. Lenders lend. Fannie Mae and Freddie Mac simply buy loans from lenders. Therefore there is still a large amount of risk to lenders. Each individual lender needs to review new rules, consider the risk, decide if they even want to participate in the enhanced HARP 2 program, then write their rules and push them out to the Loan Officers on the street.

THE BOTTOM LINE: Look for most lenders to start pushing out HARP 2 Refinance rules about the middle of February 2012, but not actually doing them until after March 15th, 2012.  Furthermore, expect a huge rush of customer looking to take advantage of the program, creating massive delays with the banks.


HARP II Guidelines Released

HARP II – The Home Affordable Refinance Program has released the updated program guidelines.

St Paul, MN:  The HARP program, while not perfect, has been one of the few success stories in the governments attempt to help home owners.  HARP has helped close to 1,000,000 homeowners refinance, and a few tweaks to the program have just been announced. No one who closely follows the mortgage industry is expecting HARP 2.0 to generate much in the way of additional refinance opportunities in the real world over the existing HARP program – but HARP IS STILL AN AWESOME PROGRAM for those who qualify.

That view seemed to be reinforced after yesterday’s release of the specific program guidance from both Fannie Mae and Freddie Mac to lenders (see links to release below)

It appears the updated HARP programs latest program changes and enhancements aimed at allowing underwater borrowers with Fannie / Freddie mortgages to take advantage of low mortgage rates don’t appear to represent a major departure from the old requirements.

The updated basics are that the loan to value cap has been lifted, certain fees in certain situations have been removed and for borrowers who have loans owned by Fannie or Freddie and who have not been delinquent more than 1 x 30 days in the past twelve months (0 x 30 in the most recent six months) they may find refinancing available to them even if they are underwater on their mortgage to equity ratio.

However, until March 2012 Fannie and Freddie will not even accept delivery of any loan with an LTV > 125%.  And, the new loan program continues to be available only to borrowers whose loans are owned by Fannie Mae or Freddie Mac on or before May 31, 2009.

Given the lifting of the Loan-to-Value cap as a major selling point, it appears that since nothing above 125% can be delivered before March this will hamper a program that already has performance characteristics that may make it unavailable to many who could really use the program.

While a handful of lenders who offer HARP already have started to promote HARP refi opportunities, it seems a bit premature as it remains to be seen who lenders will actually implement the new guidelines.  Remember, lender overlays play a huge rule in today’s mortgage world.  Just because Fannie Mae, Freddie Mac, FHA, VA, or any other program says lenders can, doesn’t mean they will.

View the actual HARP 2 release information in PDF format:

Time will tell over the next few months as lender roll out their actual guidelines.  Stay tuned.

 Click HERE to apply for a HARP Refinance on properties in MN or WI

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Shopping for a mortgage? Protect yourself from bait-n-switch, scams, and predatory lenders

Protecting yourself against predatory lenders, mortgage scams, and Loan officers screw-ups

Mortgage rates are amazing. That’s great news for veteran loan hunters.

But for inexperienced shoppers who don’t watch their backs, the mortgage business can still be a scary place to travel.

The internet especially has make it easier for sly lenders to mislead and take advantage of naïve consumers using any number of tricks, from quoting bogus rates over the telephone to slipping gratuitous costs into their loans. To avoid these problems — as well as other trip-ups posed by the confusing mortgage process itself — consumers have to brush up on their mortgage shopping skills.

Market is ripe for tricks and trip-ups
In the past few years, when the market was hot, a lot of rookie Loan Officers and small brokers came into the market that may not have the experience level you’re comfortable with. There was money to be made, and it was easy. Just sit back, and the phone will ring with customers wanting to refinance. The number of lenders and Loan Officers TRIPLED from 2001 to 2005. Lending volume also TRIPLED to the highest numbers in history!

Since the mortgage market meltdown, which really kicked into high gear in mid 2007, mortgage volume is down dramatically, and many companies are desperate to stay in the business. They will say and do anything to capture a deal.

The reality is that most lenders and brokers aren’t out to fleece customers and the complexity of the home loan process — rather than anyone’s malfeasance — takes the blame for some of the obstacles consumers face. Many trip-ups don’t rise to the level of “predatory lending” either, regardless of what the media claims. Nevertheless, they can cost borrowers serious time and money, and guarding against them becomes even more important during the boom times.

There’s kind of a range of games that get played and they’re pretty broad, from fairly benign stuff to outright fraud.

Problems can pop up long before a borrower fills out any paperwork. Indeed, just finding out how much a mortgage closing costs can be confusing, especially when looking at the new Good Faith Estimate when you are used to the old Good Faith Estimate.

Be as specific as possible
Many potential customers simply call lenders up and ask, “What’s your rate?” But they fail to indicate what kind of loan they need, how long of a lock period they want, how many discount points they’re willing to pay, how long the rate is good for or anything else. Consumers have to specify all of these things or lenders can pretty much say whatever they want, then provide different figures when the customers come in and blame the lack of specificity.

A loan with a lock period of just 15 days, for instance, usually has a lower rate than one that a consumer can lock in for 60 days. Most consumers opt for loans with longer locks because they need more than two weeks to close. But loan officers sometimes quote rates on their shortest-lock loans over the phone or in print just to sound cheap, knowing full well that many callers will never be able to obtain those loans. Companies can provide interest rates that include several discount “points” to make their rates look better, even though most of our customers either can’t or don’t want to put down several thousand extra dollars at closing for “points” to lower the interest rate.

In most of newspapers, once a week or more, they’ll have a list of rates by lender. But frequently you’ll find the rates they put in the paper were rates that were really never available. They kind of low ball their rate. When you come in, they’ll tell you the market has moved and the rates are now higher. They get away with this because the rate they list in the Sunday paper is usually submitted on Thursday. You read the paper on Sunday, then call the lender on Monday…

Figure in the fees
Borrowers often forget to ask about fees, and don’t compare lenders based on their closing costs. That allows companies to pad their bottom lines by adding “processing fees” and other miscellaneous charges to the loan at closing. Lenders don’t control certain fees for services provided by third parties, such as title searches and appraisals. But they can adjust their own fees.

Don’t believe everything you read
It’s a competitive business. Lenders understand this, so creative advertising is everywhere. Consumers need to watch out for advertising tricks, too. Companies have been plugging “no cost” refinance loans lately, but the tagline really means “no out-of-pocket costs at closing.” Borrowers pay higher rates on these mortgages and lenders use the extra money to pay the costs themselves. There is no such thing as a no closing cost loan!

The annual percentage rate, or APR, found in advertisements can be misleading as well. Mortgage lenders don’t always include all the fees they charge in the calculation that determines APR, so customers who use that figure to shop rather than an itemized breakdown of rates, points and fees may end up comparing apples to oranges.

Of course, it’s difficult for borrowers to compare fees when they don’t know what they are. By law, lenders and brokers don’t have to give what’s called the Good Faith Estimate document to customers until three days after they apply. But there’s nothing preventing shoppers from asking for it before committing to anything. Reputable lenders will provide one. Please read my article- Beware of the Bad, Good Faith Estimate, so you know what to look for when you do get your estimate!

Banker, Broker, or Direct Lender. All are “Loan Officers”, so who is best?
When you’re looking to get a mortgage loan, you may work with a loan officer, but where they work makes a difference! People often confuse the lender types even though all will glean the same results: a home loan. However, it is important to understand the difference between the three types of lenders so you know what to expect from them during the mortgage application process.

Currently the industry is seeing the biggest problems with loan officers exactly where most customers wouldn’t expect. The big banks. Why? Most states have enacted strict guidelines for non-bank lender and brokers. These include criminal background checks, mandatory education, stricter underwriting guidelines, mandatory disclosures, and more. BUT, state banking laws can not trump federal banking law. Federally Chartered Banks (all the big bank names you know) only have to follow less restrictive federal law. Basically they get to do whatever they want! Thanks Washington!

  1. All Loan Officers are required to have an NMLS number (Nationwide Mortgage Licensing System and Registry). This gives the FALSE APPEARANCE of bank loan officers having a license.
  2. Bank employees are NOT required to have background checks, do not need any state or federally mandated up-front or ongoing education, and do not have pass any state of federally mandated tests to be a loan officer.  They could have been flipping burgers yesterday!
  3. All NON-BANK Loan Officers MUST have a personal license.

Know the score
After customers apply and have their credit scores pulled by their lenders, they should ask for those too. Companies have no obligation to share them, but those scores often dictate whether borrowers get loans and how much they have to pay for them. Customers who obtain their scores can get rate quotes tailored to them, rather than receive quotes that may apply only to borrowers with better or worse credit.

If I would say at the application stage to my lender, “Hey, when you pull my credit report, will you tell me what my scores are?” and he said no, I think I would go somewhere else. Why not go with somebody who is willing to tell you? You need to know.

Last-minute maneuvers
Closer to closing, borrowers also have to watch out for counteroffers from their current mortgage lender. When borrowers refinance their loans, their new lenders request “payoff letters” from their old lenders. These letters spell out exactly how much the old lenders are entitled to at closing and are often the only indication that a borrower is refinancing.

To avoid losing customers, lenders who are about to get the boot sometimes swoop in and offer to lower their borrowers’ rates or refinance them into new loans themselves. While the offer may sound competitive, they almost always are aren’t so.

Another source of confusion is the assumption that your current lender can do a loan for lower fees. The vast majority of the time this is NOT true. Loans are ‘packaged’ to be resold. The vast majority of lenders resell their loans and therefore any changes to the original loan require a complete new package, new closing, new note, new closing costs, new appraisal, new everything, etc. Plus, they usually come very late in the process. Borrowers who accept them can end up having to forfeit application fees or other monies to the lenders they planned on using.

By learning about all of these miscellaneous traps, consumers can take advantage of today’s lower rates and refinance without worrying about being taken for a ride. After all, experts say, preparation is the best defense against shady lending practices.

It comes back to education. If I’ve called five respectable lenders – I know about what rates and costs are. It’s going to be pretty easy for me to know whether one lender is pulling the wool over my eyes.

How do you know if they are are respectable lender? Read “How to Shop for a Lender” for some good clues.

One final word of advice. OUT STATE INTERNET LENDERS, NO MATTER WHAT THEY CLAIM, can NOT offer you anything you can’t get from the local lender down the street. These out state lenders are by far the worst in terms of misleading quotes, miscellaneous traps, and shady lending practices as they have no connection to the community YOU live in.

Need a great lender in MN or WI?  Apply HERE. Have an answer in a few hours.

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Are No Doc loans still available?

“NO DOC” loans had been around for years, and served a niche market for the self-employed, commission, and tipped income home owners. Because of their additional risk, they came with higher interest rates, bigger down payments, and generally were only available to self-employed people with a minimum of 2-years provable self-employment history and trouble documenting their true income.

As the home loan markets changed through the early 2000’s, these loans grew in popularity, especially once Wall Street introduced new no doc, stated income, stated assets, no job, and other ridiculous variations with underwriting guidelines so silly almost anyone could qualify for a home loan.

These new variations turned a small niche program into what became commonly known as liar loans. This was because because both customers and Loan Officers were easily allowed to misrepresent the borrowers true circumstances.  They were highly abused by consumers, and bad loan officers everywhere, as people realized they could easily get a loan they either should not be getting at all, or more commonly, to get a bigger loan than they normally would have received.

These liar loans were one of the first casualties of the mortgage market meltdown as many of these customers were some of the very first people to end up in foreclosure. Lenders everywhere quickly pulled them from their product lines, and many states now have laws on the books banning them completely.

Unfortunately, the self-employed, commissions, and tipped income people who truly need and benefited from stated income, no documentation (NINA, NIVA, NISA, SISA) type loans are now without loan options. The old saying, one bad apple spoils the whole bunch… In this case, it was a whole bunch of bad apples that spoiled it for the one who really needs it.

If you are looking for a respectable No Documentation loan, you are pretty much out of luck, unless you are:

  1. In a state that still allows them
  2. Have excellent credit
  3. Are in need of under 65% loan-to-value
  4. Are willing to pay huge up-front costs and very high interest rates to “hard money lenders

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Looking for a “no doc” loan in MN and WI?, Can you still get financing? Maybe, but not without fully documenting your ability to repay your loan.

But, don’t give up just yet. Let a licensed professional loan officer review a full application.


Buy New Construction or Existing Homes and Foreclosures?

St Paul, MN: New construction is suffering.

The lowest NEW housing construction numbers since 1963 when the USA had 120  million LESS people have just been reported. There are many reasons for this, but the fact remains, right now is one of the best times to buy a house, and first time home buyers are missing the boat standing on the sidelines. Builders are fighting back, and we all should be concerned as new construction is a major economic backbone in this country.

Thoughts? We’d love to hear from you. Login and post!


Federal Reserve Bank Conspiracy Explained

The Federal Reserve has been busted in a major scandal.

St Paul, MN: On April 1, 2011 – sweeping new mortgage broker and mortgage lender changes go into effect which will stifle competition, reduce loan options, extend the housing market recover time, and increase interest rates and closing costs to home owners everywhere.

The rules made no sense to anyone, yet the Federal Reserve marches on with a cocky attitude, completely unwilling to listen to trade groups and those in the mortgage business explaining how damaging these new rules will be.

NOW WE KNOW WHY! People who previously did studies which produced positive outlooks towards brokers and small lenders NOW WORK FOR THE FEDERAL RESERVE BOARD and magically have a different attitude AND have have their voices silenced – WOW!

Another great video from Frank and Brian over at www.tbwsdailyshow.com

What are your thoughts? Login and POST!

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