Culture is the lifeblood of a successful business. Putting our clients and Partners first is why we celebrate the longest tenure of any local mortgage company in Georgia.

www.southeastmortgage.com Phone: 770-279-0222

Reality of what is happening in the Economy Today - October 21, 2018

View the Economy this way.  

Does a boat run just as fast when its high tide as low tide?

The answer is yes if you pay attention and steer your boat watching your mapping and depth instruments with an experienced eye.  Like the tides, the Economy is Relative and steering is required no matter how big you think your boat is or how fast.  Without the medium in which a boat operates (water) and the medium a Mortgage Company Operates (Sustained Operating Capital) both can run a ground.  

Experience Matters because you do not know you hit ground until its too late.

Cal Haupt, Chairman and CEO, Southeast Mortgage of Georgia, Inc

www.southeastmortgage.com Phone: 770-279-0222

GooRu Video Preview "The Future of Origination"

GooRu is a Smart, Easy, and Efficient automation assistant created by Southeast Mortgage for our MLOs, Realtors, Builders, and home buyers.

Realtors, Builders, MLOs, and home buyers now have an Easy Fast way to get a Mortgage or provide a Mortgage with no uncertainty and updates all the way to a fast closing

We just changed the game.  Experience the Future.

www.southeastmortgage.com

770-279-0222

Economic Recovery Top - Low Country View by: Cal Haupt

I wrote an OP ED back in December 2011 about the relativity of a recession and the best course of action based on my data supported by 3 recessions.  Now the recovery top view.  http://southeastmortgage.blogspot.com/2011/12/low-country-view-of-recessions-from.html  

As we move into the 8th year of the recovery, a DOW 20116, Commercial Flights Full, Malls Full, Restaurants Full, New Car Dealer Lots Over Flowing, and everyone on your street doing home renovations, everyone should govern their actions by data vs. the euphoric feel of a recovery.

With respect to the Mortgage and Real Estate Industry, I am still confident we are in the 15th month of a 60 – 72 month cycle expansion.  I am confident to the tune of investing millions in a 30,000 sq. ft. operations and life balance center at 3575 Koger Blvd in Duluth.  The growth for the past 15 months is ahead of my projections which provides a large enough sample to proof that my hypothesis is correct.

Now for the Yang to the Real Estate cycle Yin.  The financial markets, various stock markets and other financial derivative instruments, can falter without an impact on the Real Estate Market.  Why?  The primary participants or the 80% of the underlying trades in the above markets are institutions and traders.  When it corrects and it will, the retail consumer in general will not be hit the way they were in the last financial crisis because they are not in the markets as deep as they were in 2008-2009.  As a result, they will be unaltered in their euphoric quest for Real Estate.  Whether their need is trading up, trading down, or new home creation for families this trend has 4-5 years left before a plateau. 

My low country view is we all have to navigate the same rivers in a low tide (2011) that we navigate at high tide (today).  Anyone who has been at the helm of a boat knows rivers can be a mundane transit or a harrowing experience depending on tide and weather.  No matter the size of your boat, the outcome is the same.

 This is relevant in that although there looks like more water and routes to take at high tide, beware that the tide cycle and that route outside the normal river may be mud at a lower tide.   The only constant is the Captain (leadership) must know the tidal pattern and govern voyages based on that data.  Financial Markets are no different.  You just need the tide table. 

Most of the Mortgage Lenders that went out of business in 2008-2009 were all navigating in areas that were not part of the average safe tide and were not paying attention to the data that determines our financial tide table.

My advice to MLOs and other professionals related to the Mortgage Industry is although low score, high LTV, and limited documentation products fit a specific need for a very narrow segment of clients; be careful when a Mortgage Company leads with these unique products.  If they do, be prepared for a change in career. 

The safe river is clearly defined by the regulations and directives of our elected officials.  Fannie, Freddie, FHA, and VA products.  Yes, FHA has some low score parameters and should be ingested carefully given Neighborhood Watch reflects gluttons and common sizes them given low scores correlate to higher default and delinquency.  Prudence dictates moderation and sell to client need which is always a fiduciary's safe path for industry participants and clients at all tides.

 

Cal Haupt

Chairman and Chief Executive Officer

Southeast Mortgage of Georgia, Inc.

www.southeastmortgage.com

770-279-0222

Tips for a smooth Loan Approval and Closing

TIPS for a smooth loan approval and Closing

Here is a list of helpful tips to ensure an effortless loan process and on-time closing.  These “DO & DON’T” tips will help avoid any delay with your loan approval and closing your loan on time.

DO call us if you have any questions.

DO continue living at your current residence.
DO continue making your mortgage/rent/credit payments on time
DO make copies of all non-payroll checks that are deposited to your account during the loan process.
DO plan to provide updated pay stubs, bank statements, and other items requested after loan prequalification right up until the close.
DO let us know right away if you plan to use a gift.

DON’T apply for new credit (even if you are told you are pre-approved.) The best way to avoid this is don’t give your social security number to anyone (especially on line) until your loan is completely done & you have moved into your new home.

DON’T open a new credit card, take out any new loans, finance anything new, or co-sign for anything

DON’T join a new fitness club (they will most likely run your credit.)
DON’T make a major purchase (car, boat, fur, jewelry, etc.)
DON’T open a new cellular phone account (they run credit.)
DON’T pay off any loans, credit cards, or consolidate debt without discussing it with us
DON’T pay charge offs or collections (negative reporting) on your credit report without a discussion with us

Employment / Income:

DON’T change jobs. A verbal verification of employment will be done the day we close.          

Bank Accounts and money:

DON’T make any purchases that will lower the balance in your bank account.

DON’T deposit any cash into your bank account
DON’T open any new bank accounts
DON’T move/transfer money back and forth from different bank accounts
DON’T allow your balance to drop below what it was when you got prequalified
DON’T allow your checking account to have non-sufficient funds.

Before making an offer on a home:

All money used for your home purchase needs to have a paper trail. Make sure the earnest money and money required at closing comes from your own account you listed on your loan application.

 

Please call Southeast Mortgage at 770-279-0222 if you have ANY questions about this form.  A Licensed Mortgage Originator will explain the reasons these “Do’s and Don’ts” are very important.  We appreciate your business and are here to help your loan process go as smooth as possible.

www.southeastmortgage.com
770-279-0222

Who we are Conversation - Cal Haupt, Jan Shell, Kathy Gyselinck, and JD Crowe

www.southeastmortgage.com
770-279-0222

Qualified Mortgage (QM) - Lender Responsibility and Definition

Residential Mortgage Lenders primary purpose is to provide consumer loans secured by single family housing to facilitate acquisition for a consumer purpose.  Consumer purpose is housing the primary borrower, co-borrower, and or family.  Residential Mortgage Lenders have due care responsibility to ensure applicants can afford the loan for the term of the loan and it fits the applicants purpose.
 
Commercial Purpose loans secured by residential zoned property (Rental Properties, Industrial, and general purpose) should be handled by a small business lender that is tasked to originate this type of credit facility.
 

IMO: Just because a Residential Non-Qualified Mortgage product is offered for a residential consumer purposes is not a justification for a licensed or registered residential mortgage professional to sell it.  Licensed Mortgage Loan Originators (NMLS and State License Compliant Mortgage Loan Originators) and Registered Bank Mortgage Employees (Bank Employees whose job is to Originate Mortgages and is not Licensed) should be a fiduciary for the consumer and ensure they recommend the right product.  Mortgage product recommendations should only be made after understanding the client's needs through an interview process and ensuring the client can afford the loan today and for the term of the loan.  In the future all Bank and Non-Bank Mortgage Professionals will be licensed to the same standard which will ensure all consumers have consistent protection when shopping for their mortgage.
This trust and due care is the key to referrals and the key to longevity in this business. 
 

In its simplest form, Qualified Mortgages (QM) meet the following requirements:
> A loan that meets the requirements of GSEs, FHA, VA, or USDA and can be sold in the primary secondary market
> Consumer has a documented and verified ability to repay
 

Starting January 10, 2014, you must assess the borrower’s ability to repay all term residential mortgage loans. All QMs are presumed to comply with this requirement. As described below, a loan that meets the product feature requirements can be a QM under any of three main categories:

 

 

Mandatory product feature requirements for all QMs

1. Points and fees must be less than or equal to 3% of the loan amount (amounts less than $100k, higher % thresholds are allowed);
2. No negative amortization, interest-only, or balloon loans that increase risk (BUT NOTE: balloon loans originated until January 10, 2016 that meet the other product features are QMs if originated and held in portfolio by small creditors);
3. Maximum loan term is less than or = 30 years. 

Three main categories (CFPB Definition) 
1. General definition of QMs

Any loan that meets the product feature requirements with a debt-to-income ratio of 43% or less is a QM

2. "GSE-eligible" category of QMs

 

Any loan that meets the product feature requirements and is eligible for purchase, guarantee, or insurance by a GSE, FHA, VA, or USDA is QM regardless of the debt-to-income ratio (this QM category applies for GSE loans as long as the GSEs are in FHFA conservatorship and for federal agency loans until an agency issues its own QM rules, or January 10, 2021, whichever occurs first).

 

3. Small creditor category of QMs  

 

If you have less than $2B in assets and originate 500 or fewer first mortgages per year, loans you make and hold in portfolio are QMs as long as you have considered and verified a borrower’s debt-to-income ratio (though no specific DTI limit applies).

I truly hope our industry learned from the last recession that mortgages are a cornerstone of the US economy.  We make a difference every day and should govern the products we offer consumers with due care at the fore front.  Today we are seeing a similar trend to 2006 - 2009 when the industry evolved product features to target a broader category of borrower to increase origination volume.  I believe there are some products that are needed for borrowers that are not currently participating in today's mortgage market; however, we need to ensure industry risk remains low.   

Cal Haupt
Chairman and CEO
Southeast Mortgage of Georgia, Inc.
770-279-0222
www.southeastmortgage.com

Atlanta's unique housing price rise due to its unique nature... S&P Case Shiller Index Confirms at 13.7%

Atlanta continues to lead the nation in residential real estate price stability and growth.

Due to Metro Atlanta's diverse economy, lack of industry concentration, and transportation; Atlanta housing fares better than most through a recession and recovers quickly and more dynamically than most states during recoveries.

With the economic growth now reporting what has been obvious from the wait times at restaurants, full airplanes, and congested traffic; consumers are rushing to participate in the housing recovery.  Whether it is the new home buyer, trading up, or baby boomers streamlining for retirement; housing demand is pushing Atlanta home prices up and will continue into the foreseeable future.  (See list below)

US prices are up 22.6% since bottoming out just over three years ago, but are still 18% below the peak set in July, 2006. The home price index covering 10 major U.S. cities increased 10.8% in the year ended in April according to the S&P/Case-Shiller Home Price Index report. The 20-city price index also advanced 10.8%. That is down from a 12.4% yearly pace in March and less than the 11.4% expected by economists.  Although many analyst are reporting year-over-year gains are slowing, this is not the case for Metro Atlanta, Georgia..

Cal Haupt
Chairman and CEO
Southeast Mortgage of Georgia, Inc.
www.southeastmortgage.com
770-279-0222

 

 

April 2014 CRM News Letter

www.southeastmortgage.com

Safe Harbor for Mortgage Loan Originators Career? – Licensed vs. Registered MLO

Would you get mortgage advice from a disc jockey with a nice conference room?  Can you tell the difference?     

Mortgages are an important Consumer Product and meeting educational certifications along with passing the national NMLS with state content exam is the safeguard a consumer deserves supported by laws passed by your government. 

With 80% of the pre 2009 mortgage service providers out of the mortgage industry, the value of a Mortgage Loan Originator’s, MLO’s, career is at an all-time high and its continuation depends on choices made today.

As the yield curve begins to hold trend in a northerly direction, our industry is entering a phase of the recovery cycle similar to the 2001 – 2005 surge without the unsustainable high risk products.  The products that will be sold are primarily QRM or “Standard Loans” provided by the GSEs, “Fannie, Freddie & Ginnie (Conforming, FHA, & VA)”.  MLOs will need to be close to the source of these products which is the Seller / Servicers approved by these entities.  As you move away from the GSE source as a correspondent, local bank registered MLO, or broker; service, accessibility, and pricing suffer.  Do you get a better price buying an apple direct from an apple farmer or Publix?  Same concept and principle in the mortgage industry and both are commodities.

The mortgage service providers in this cycle will primarily be two types:

Ø  Banks that employ Registered Mortgage Originators and cannot sponsor a Licensed Mortgage Originator

AND

Ø  Non-Bank Mortgage Lenders that employ only Licensed Mortgage Originators.  Non-Bank participants can be a broker, correspondent, or a vertically integrated GSE Seller / Servicer.  All specialize in mortgage products and employ Licensed Mortgage Originators according to the S.A.F.E. Act, Dodd Frank Act and State banking agency requirements.

MLOs in our industry have to make choices today to secure their career as our industry evolves.  As everyone knows, if anything is certain its change in the Mortgage Industry.

Understanding the truth about earning a higher certification as a Licensed Mortgage Originator versus being a Registered Bank Mortgage Originator is critical to a good choice.  Avoid the fear tactics and miscommunication and focus on the facts that dispel the myths.

The Truth

·        Based on prior history of other products requiring a license to sell, regulators will require banks to license all Registered Loan Originators.  Banks have similar experience with Mutual Fund Sales (Series 6/63) and Consumer Loan Insurance.  Both had a period of adjustment and both eventually required all sales people selling the products to be licensed by FINRA (formerly the NASD) and the Insurance Commissioner respectively.  Neither of those caused a recession, Mortgages did?  Either through reserves or direct intervention, Banks will license all MLOs at some point.

·        Non-Bank Mortgage Lender’s like Southeast Mortgage (SEM), have higher mortgage certifications than many Banks.

·        Get licensed today and remove uncertainty before time runs out.  It will.

·        Non-Bank Mortgage Companies pay MLOs more than Banks.  Same work why not receive higher pay?  Why? Because registered originators allow it and inertia has them.

·        Since Non-Bank Mortgage Companies specialize in one product, service is superior and faster.

·        Name your shareholders at a Bank?  Are you a member of the LLC?  Do you really know who you work for?  Build a career and trust your shareholders and hopefully they work alongside you.

 

Dispel the Myths

·        Don’t succumb to fear tactics.  Becoming a Licensed Mortgage Originator is a straight forward process.  Would you buy stock from an unlicensed stock broker?  Would you seek retirement advice from a Disc Jockey that appears to talk the talk?  Your family deserves the certainty of licensing as set forth by Congress.

·        Don’t talk yourself into believing Bank comparable training is the same thing as studying and passing the national NMLS with state content exam.  Ask any Bank Registered MLO that has passed the test if there is a difference.

·        The Georgia Department of Banking and Finance is very cooperative and will discuss issues to help you through the process.  They respond promptly and will answer your questions.  It is important to follow the rules during the licensing process.

·        For Realtors and Builder’s service and speed matters.

·        If you have a license, you will welcome change.  If you are unable to be licensed, you know the deficiencies and can make a plan to correct them before it’s too late.

Becoming a Licensed Mortgage Originator removes the inherent risk of Banks switching to employing only licensed MLOs.  Protect your career and your family’s income by earning your MLO License and enjoy the next 5 years without concern.

www.southeastmortgage.com
Southeast Mortgage of Georgia, Inc.
3496 Club Drive, Lawrenceville, Georgia 30044
Phone: (770) 279-0222
Georgia Residental Mortgage Licensee #6578
NMLS #103956

Declined March Cal-Culator Breaks Record Run

Declined March Cal-Culator Breaks Record Run

Posted on April 7, 2014 by admin

     

After a sensational winter for the Atlanta residential real estate industry, the market has ended its record streak of two months consecutively reaching 6.0 and has declined to a 5.7 in 2014’s first spring month. Declining new, pending and existing home sales combined with negative home price gains contributed to the weakened Cal-Culator this month.

 

The U.S. Department of Commerce released its U.S. Census Bureau News for February, which showed that sales of new single-family homes in February were 3.3 percent below January. Though new home sales are only a small portion of homes purchased in the U.S., the sales represents a lot more.

“They [new home sales] provide a more current gauge of market conditions than some other indicators because they are tallied at the moment a contract is signed rather than at its closing,” said The Wall Street Journal in ‘New-Home Sales Fell 3.3% in February.’
The article also found that existing home sales, 90 percent of all home purchases, fell for the second consecutive month.

Pending home sales also fell 0.8 percent in February, marking the eighth straight month of decline, according to Bloomberg data. Pending home sales can be used to predict future home sales’ activity, as most pending home sales become existing home sales in a few months.

The latest S&P/Case-Shiller Home Price Indices indicated that a majority of the cities in the 20-City Composite saw declines in home prices gains, including Atlanta, which posted a 0.1 percent decline.
“The housing recovery may have taken a breather due to the cold weather,” said David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices. “Twelve cities reported declining prices in January vs. December; eight of those were worse than the month before.”

The National Association of Realtors’ 2014 Investment Home Buyers Survey conducted in March found that investment sales, a necessary part of the recovery, fell to 20 percent of all transactions in 2013, a drop of 8.5 percent.

“Investment buyers slowed their purchasing in 2013 because prices were rising quickly along with a declining availability of discounted foreclosures over the course of the year,” said NAR Chief Economist Lawrence Yun.

Despite the setbacks, the month did have a few bright spots. Nation-wide inventory is continuing to rise and now is at a 5.2-month supply, up from a 4.7-monthly supply last month. Though month-over-month home price gains declined, Atlanta experienced a 16.8 percent year-over-year change in home prices.

“Expectations and recent data point to continued home price gains for 2014. Although most analysts do not expect the same rapid increases we saw law year, the consensus is for moderating gains,” said Blitzer.

The next Cal-Culator will be released May 13 and will hopefully follow normal spring strides in the housing industry.

www.southeastmortgage.com
770-279-0222

New Gwinnett Social Max Site Begins Construction

www.SoutheastMortgage.com

770-279-0222

 



JD Crowe in AJC Today "New Real Estate Boom"

Recently, an Atlanta couple became frustrated with their search to purchase a home. They made several offers on homes they liked but kept losing out to higher bidders. One day, they found a home that had hit the market that very day. They were so determined to win that bid, they immediately submitted an offer — and then asked if they could see the house for the first time the next day. They just wanted to jump in line and be considered as a buyer early.

That story and others like it illustrate what is happening in Atlanta’s residential real estate market today. It has become a sellers’ market. Due to the low inventory of homes available — coupled with a large wave of qualified buyers coming back who are now looking to buy — housing prices are on the rise again in almost every submarket.

We are witnessing the beginning of a new boom in real estate. Realtors and mortgage lenders have never been busier, but it is certainly different in a number of ways than the one we all witnessed in the middle of the last decade that triggered the Great Recession. The last time we had a run-up in housing prices, it was based on buyers who had access to credit that should not have been available to them in the first place.

The government was pushing mortgage companies to allow more people into home ownership, so there were many products that allowed buyers to obtain 100 percent-financed mortgages without having to put any money down. They were able to sign a document stating how much income they earned without any verification, even if they had low credit scores. My company didn’t engage in that type of lending.

In this market, we will have a boom, but it will not be an uncontrolled boom similar to the last one. During the last five years, even though homeowners suffered through periods of price depreciation, many still invested in their homes — doing renovations and creating value. Now, they are putting their properties on the market and getting the price at which they list it or a higher one.
Much of our economy is tied to residential real estate, whether it is on the financial side, construction, landscaping, carpet, granite — you name it. There is nothing you can do to untie this economic driver from our metro area.

Atlanta will always be tied to the housing industry, but we won’t be as dependent this time on the ability to cash out or flip homes for cash. In the past decade, there was such a rapid appreciation, people used their homes as piggy banks.

Nevertheless, home ownership is popular again, and I predict it will be for a long time. The couple who recently bid on the house before they ever saw it didn’t win the bidding; they are still out there looking. They are persistent, and they will eventually be the highest bidder and be back in the housing game.

J.D. Crowe is senior vice president for Southeast Mortgage of Georgia.

The Greatest Compliment You Can Give is the Referral of Your Family and Friends

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Real Estate Agent, Realtor, and Consumer Must Know about the Mortgage Industry
Click the link below
http://southeastmortgage.blogspot.com/2013/09/what-consumers-must-know-about-mortgage.html

Service Matters....
via Email 5/9/2013

Hello Mr. Haupt,

My name is Letonya Bush and I recently purchased a new home through Southeast Mortgage. My Lender was SEM and although it's been over a month since I closed on my new home, I went online to search for the President of Southeast Mortgage to express my wonderful experience working with SEM.

As you know, securing a mortgage loan and anticipating the purchase of a new home can be very stressful. And although there were many challenges with the builder, the onsite agent and the construction project itself, I can honestly say that I would have decided against new construction had I not had the pleasure of working with SEM. Patience and dedication is inspiring.

SEM treated me as an individual which means more to me than anything. Although this wasn't my first time purchasing a home, in10 years, many things have changed that can actually detour even the most viable candidate from wanting to purchase a home. 

From day one of the process, SEM was honest, available and provided feedback even when there weren't any updates just to make me comfortable as that is the type of client I was. Additionally, having started a new job did not make the process any easier to cope with. But SEM took that stress into consideration and provided the type of Customer Service that I would hope is the Standard within your Organization.

I am proud to say that I am the owner of a new home and only because of SEM's diligence and understanding will I not only recommend friends and family to consider new construction, but will only refer them to SEM.

Please forgive the delay in providing feedback as this is customary for me and especially when the service is exceptional. Feel free to contact me either via phone at XXX-XXX-XXXX or  email if you have any questions.

Sincerely,

Letonya Bush

 

www.southeastmortgage.com
 

Call us: 770-279-0222

Southeast Mortgage Senior Management Team