Cambria Mortgage, the Joe Metzler Team. Saint Paul, MN
Year: 2011
Fed Rule on Compensation – The insanity explained
CONSUMERS: The Federal Reserve just made loans more expensive…
The Federal Reserve Bank (which is NOT a government agency, but a PRIVATE BANK) was able to convince the Courts to allow their asinine sweeping new lender rules to take effect (April 5th) while the case winds it’s way through the court system. Below is simple video from TBWS Daily which puts the rule into perspective.
Buying bananas, or buying a home… Consumers don’t care what the seller makes, they just care that they shopped, and got the best possible deal in the market. But take away competition (can your hear me Washington?), and everyone suffers. In July, the Dodd/Frank Financial Reform law will come into play making mortgages even more expensive and costly to consumers with even less options, except going to the overpriced banks!
What are your thoughts?
Realtors – Make more money, sell more homes. Free Idea
Let’s face it, times are tough in the Real Estate market right now. With so many Realtors chasing a much smaller pool of home buyers (both first time buyers and move up buyers), agents need every edge to gain more clients, sell more homes, and make more money.
This short video tells Real Estate Agents how to stop giving away money to others, and start putting it in their own pocket!
Click the share button and send this to all your Real Estate Agent friends
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!
Get the word out – be sure to Share via Twitter, Facebook, Blogger, etc!
What is HomeSteps and HomePath?
You’ve seen the logo’s, but what is HomePath and HomeSteps?
The HomePath and HomeSteps programs allows a person to buy a specially designated Fannie Mae or Freddie Mac owned foreclosed property with a low down payment, flexible mortgage terms, no lender-requested appraisal and no mortgage insurance. Expanded seller contributions to closing costs are allowed as well
How Does It Work?
Simple. Just follow these steps:
- Apply with a lender. Get Pre-Approved. Just qualify for a traditional financing with at least 3% down.
- Meet with a Realtor – Look at homes, buy your dream house. You MUST select a home to buy from a special list of available foreclosed properties
- Close and move in!
Where can I see the list of available houses?
Easy. Contact a Real Estate Agent, and they’ll show you a list of qualified HomePath and HomeStep properties.
What about closing costs?
Closing costs can be rolled into the transaction, up to 6% of the loan amount.
How do I get started?
It all starts with a no obligation application, and a visit to a special lender offering the programs.
Buying a home in MN or WI? Click here for a HomePath, HomeSteps lender in MN and WI, or call (651) 705-6261, where one of their specially trained Loan Officers will assist you.
Urgent Message To Real Estate Agents & Business
FED to Control Compensation of Employees, Real Estate Commissions will suffer and Auto Dealers are next…
NAMB Files Lawsuit Against the Federal Reserve to Prevent April 1st Implementation of LO Compensation Rule
NAMB fights to preserve and protect the mortgage broker and prevent limiting credit opportunities to consumers. Read the press release here. You can access a copy of the complaint here.
A letter of support co-authored by Senators David Vitter from Louisiana and Jon Tester from Montana was sent today, March, 11, 2011 to Ben S. Bernanke, Chairman of the Board of Governors of the Federal Reserve Board, requesting a delay in the implementation of the Fed’s loan originator compensation rules.
You can access the letter here.
To read the Federal Reserve’s filed response #1 click here.
To read the Federal Reserve’s filed response #2 click here.
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New Rules for First Time Home Buyers
It is a great time to be a first time home buyer, but some of the rules have changed. Mortgage interest rates in MN are still amazing, and home prices are super affordable. New mortgage lender and broker rules are making it a little harder to qualify for a home loan, and your costs are going up a little, but don’t let that hold you back. First time home buyers, it’s safe to come out now!
- Plan on a down payment. The bigger the better
- Plan on living in the home 5-years
- Be prepared for competition on homes – Don’t be so picky
- Get Pre-Approved with a Qualified (and licensed) Mortgage Loan Officer
Smart financial move, the 15-yr mortgage
Smart financial move, the 15-yr mortgage
Minneapolis, MN: “I own my home free and clear!“. How great would it be to say that? No payments when you retire. No payments while you are also paying for college. Putting money into your 401k vs paying it to the bank.
Look into a shorter term mortgage. This is the hottest new trend in home ownership.
Your parents probably took a 30-year fixed rate FHA mortgage, then tried to pay extra along the way to pay it off early in hopes of having no payments going into retirement.
During the period of 2001 – 2008, it was just the opposite. Many people opted for an adjustable mortgage, interest only mortgage, or even a 40-year mortgage. The reasoning was they would be flipping the house in a few short years at a great profit, so they didn’t really care what the payment was.
Today, old school thinking on the fast plan of a shorter term home loan is very popular. Me me me, now now now, has been replaced with a pay it off fast mentality.
Clearly a shorter term loan saves you a lot of money in interest. On a $200,000 loan at 4.75%, the payment (just the loan) is $1043 per month. The total interest paid is a whopping $179,888. Switch that over to a 15-yr loan at 4.25%, and the payment goes up to $1504 per month, but the total interest is just $75,079. Half as much! A interest savings of $104,809
Many people claim they can’t afford the 15-yr payment, but I say otherwise. The average person can usually easily absorb the slightly higher payment with a little discipline and a slight adjustment to their monthly budget.
Eliminate the second new car, go out to a nice dinner a little less often, and shutting off the cable or satellite premium service all start to add up quickly, giving you one of the best savings opportunities of your lifetime.
I also hear many people talk about the loss of the interest tax deduction. I have a challenge for you. Can you tell me exactly what your tax write off benefit was this year? Most people can’t. The tax deduction is over-rated. Once you figure out how little it really adds up to in real dollars, you’ll quickly see the benefit of paying your home off faster.
Stop pissing money away on a 30-yr mortgage, refinance to a 15-yr mortgage. Earn equity faster, own your home in half the time, and make one of the best financial moves of your lifetime.
Buying a Home in 2011 is a Good Idea
Buying a Home in 2011 is a Good Idea
Minneapolis, MN: As we enter the traditional spring home buying market, many people are trying to decide if owning a home is better than renting. Renting may be preferable for some folks… but there’s a reason 68% of Americans choose home ownership over rent.
Here are several very good reasons to own:
- Mortgage interest and property tax deductions
- Appreciation
- Amazingly low mortgage interest rates
- Home Affordability is at an all time high.
- Ability to decorate, remodel, modify or enlarge the structure
- Build up of equity and ability to borrow against that equity
- Capital gains exclusions (up to $500K for a married couple)
Use this online “Rent vs Buy” calculator – it’s Free!
CONSUMERS to PAY MORE for Home Loans!
CONSUMERS to PAY MORE for home loans because of NEW Federal Reserve Rule. The video shows a few examples of why the new rule will force every single person getting a home mortgage loan to pay MORE
Senators Rally to Delay LO Compensation Fed Rule
Two lawsuits have been filed to stop the rule which otherwise begins wrecking the housing and mortgage industry on April 1, 2011
Another great video from the boys at tbwsdailyshow.com
Mortgage Banker Group Taps Departing FHA Head
Mortgage Banker Group Taps Departing FHA Head
David Stevens, the Commissioner of FHA (Federal Housing Administration) will be named the next chief executive of the Mortgage Bankers Association.
Mr. Stevens announced last week he is stepping down from the top FHA position
HARP – Home Affordable Refinance Program for underwater
(edit: New guidelines issued 10/24/2011 – Click here for new rules)
HARP, the Home Affordable Refinance Program for underwater homeowners has been extended until June 2012
St Paul, MN: The Home Affordable Refinance Program was set to expire this June 30th, but has been extended one year until June 2012. The extension is great news, as HARP has been about the only success story of all the government programs attempting to stem the tide of foreclosures.
Basically if your existing first mortgage is held by Fannie Mae, or Freddie Mac, and that first mortgage is LESS than 125% of today’s value, you may qualify and be able to take advantage of today’s low rates for refinancing.
To bring even more meat to the grill, Freddie Mac has also announced they WILL NOT add recently announce cost (rate) increases to this program.
Senators ask Bernanke to STOP Federal Reserve and LO Comp
Senators David Vitter (R-LA) and John Tester (D-MT) have written a bi-partisan letter to Chairman Bernanke of the Federal Reserve Board asking him to STOP the boards overreach of the TILA (Truth-in-Lending) act as it pertains to Loan Officer Compensation
The rule, set to start April 1, 2011 dramatically changes and overburdens the mortgage lending world, which could inflict harm to small business mortgage brokers, their loan officers and their entire staff.
The letter says ““We remain concerned the Federal Reserve has not fully evaluated the impact of this rule on the housing market,” and ““We urge you to delay the implementation of the loan originator compensation rule so that these provisions can be better coordinated with forthcoming TILA regulations and the impacts of loan concentration can be more thoroughly studied.”
Two lawsuits were also filed this week asking for injunctions against the Federal Reserve over the rule. One by NAMB (the Nation Association of Mortgage Brokers), and the other by NAIHP (National Association of Independent Housing Professionals).
Federal Reserve Board files Motion to Consolidate NAIHP & NAMB Lawsuits
Federal Reserve Board files Motion to Consolidate NAIHP & NAMB Lawsuits
The Federal Reserve Board filed a Motion in U.S. District Court to consolidate lawsuits filed against them by the National Association of Independent Housing Professionals (NAIHP) and the National Association of Mortgage Brokers (NAMB).
READ the actual Lawsuits
This move was predictable by the Fed, according to Marc Savitt, NAIHP President. The only reason NAMB was originally assigned a separate Judge, was because their legal counsel failed to acknowledge another related case (NAIHP), had previously been filed.
NAIHP has always believed a united front, would enable the industry to prevail in this matter.
Savitt indicated he is looking forward to working with NAMB to achieve success for consumers and the mortgage and housing industry, while NAMB’s attitude appears to be very negative towards NAIHP?
I’ve read both lawsuits. I’m no big shot lawyer. In my humble opinion, I like the NAIHP suit a LOT better?
Thoughts?
Top Reasons Why Your Should Refinance Today
Joe and Eric Metzler talk about why you should refinance today. Mortgage Interest Rates are set to go up soon for many reasons. Fannie Mae and Freddie Mac are both increasing the wholesale costs of mortgage loans, the economy may be improving, and home values may continue to fall slightly, all items that will effect your mortgage interest rates. Searching rates on home loans, or rates for refinancing your mortgage in MN or WI? We have some of the best rates on home loans!
Visit Cambria Mortgage, St Paul, MN at www.MortgagesUnlimited.biz