Thursday, September 20, 2012
Wednesday, September 5, 2012
Consumers - Time to Lock - FHFA Increasing Guarantee Fee
Although normal market data indicates a pending bias up in rates, the government will add to the mortgage rate increase through "Guarantee Fees" in the next 60 days.
These fees are used to fund tax cuts, mitigate risk, and for various other reasons determined by Congress.
Although we have forecasted the natural increase in rates based on economic data, Nov 1 rates will be even higher due to this G-Fee being passed on to the consumer via Fannie Mae and Freddie Mac Mortgage Rates. FHA is one way to avoid the higher cost.
Purchasing or Refinancing, September and October will be the period to save a few dollars. Be sure you select a Mortgage Lender that has a Federal and State License to ensure this important transaction is monitored by a Mortgage Loan Originator, MLO, who has passed the competency tests set forth by our Government.
Ensure your Mortgage Originator is Licensed @ http://www.nmlsconsumeraccess.org/Home.aspx/MainSearch
Once you have a Licensed MLO, you will want to close fast. 8-Day Close, Licensed MLOs, Great Rates,
Call 770-279-0222 or visit www.southeastmortgage.com .
Ask if an FHA loan is right for you!
"Fannie Mae and Freddie Mac, the U.S.-owned mortgage-finance companies, will raise by an average of 10 basis points the fees they charge lenders to guarantee loans, the Federal Housing Finance Agency said in a statement."
"The guarantee-fee increases, which begin taking effect in November, probably will be passed on to borrowers in the form of higher interest rates and are small enough that they won’t stall mortgage lending, banking-industry trade groups said. "
"An increase of 10 basis points would cost a borrower with a $200,000 mortgage about $4,000 over a 30-year loan term."
"The fee increase will begin Nov. 1 for loans sold for cash and Dec. 1 for loans exchanged for mortgage-backed securities, FHFA said."
"The last guarantee-fee increase took effect in April after Congress boosted them by 10 basis points to fund a payroll tax cut. It was the first time fee proceeds had been diverted into the U.S. Treasury instead of helping offset the risk borne by Washington-based Fannie Mae and Freddie Mac (FMCC) of McLean, Virginia.
The average guarantee fee charged by the two companies rose to 28 basis points in 2011 from 26 basis points in 2010, according to a report FHFA also released yesterday. By the end of the year, after both increases are in effect, fees could average about 48 basis points."
Source: http://www.bloomberg.com/news/2012-08-31/fannie-mae-freddie-mac-guarantee-fees-increased-by-regulator.html
These fees are used to fund tax cuts, mitigate risk, and for various other reasons determined by Congress.
Although we have forecasted the natural increase in rates based on economic data, Nov 1 rates will be even higher due to this G-Fee being passed on to the consumer via Fannie Mae and Freddie Mac Mortgage Rates. FHA is one way to avoid the higher cost.
Purchasing or Refinancing, September and October will be the period to save a few dollars. Be sure you select a Mortgage Lender that has a Federal and State License to ensure this important transaction is monitored by a Mortgage Loan Originator, MLO, who has passed the competency tests set forth by our Government.
Ensure your Mortgage Originator is Licensed @ http://www.nmlsconsumeraccess.org/Home.aspx/MainSearch
Click Image to Enlarge
Once you have a Licensed MLO, you will want to close fast. 8-Day Close, Licensed MLOs, Great Rates,
Call 770-279-0222 or visit www.southeastmortgage.com .
Ask if an FHA loan is right for you!
"Fannie Mae and Freddie Mac, the U.S.-owned mortgage-finance companies, will raise by an average of 10 basis points the fees they charge lenders to guarantee loans, the Federal Housing Finance Agency said in a statement."
"The guarantee-fee increases, which begin taking effect in November, probably will be passed on to borrowers in the form of higher interest rates and are small enough that they won’t stall mortgage lending, banking-industry trade groups said. "
"An increase of 10 basis points would cost a borrower with a $200,000 mortgage about $4,000 over a 30-year loan term."
"The fee increase will begin Nov. 1 for loans sold for cash and Dec. 1 for loans exchanged for mortgage-backed securities, FHFA said."
"The last guarantee-fee increase took effect in April after Congress boosted them by 10 basis points to fund a payroll tax cut. It was the first time fee proceeds had been diverted into the U.S. Treasury instead of helping offset the risk borne by Washington-based Fannie Mae and Freddie Mac (FMCC) of McLean, Virginia.
The average guarantee fee charged by the two companies rose to 28 basis points in 2011 from 26 basis points in 2010, according to a report FHFA also released yesterday. By the end of the year, after both increases are in effect, fees could average about 48 basis points."
Source: http://www.bloomberg.com/news/2012-08-31/fannie-mae-freddie-mac-guarantee-fees-increased-by-regulator.html
Saturday, September 1, 2012
Consumers - Data confirms Optimal Time to Buy
The Metro Atlanta Housing Market has entered a rare phase in normal housing cycles. Gradual diminishing benefit generally follows after this point is reached.
Current housing data confirms housing prices are on the rise, inventory is significantly reduced, and historically low mortgage rates although slightly higher are still available. The down side risk of single family home devaluation is now gone and you can maximize your mortgage dollar at historical low rates. If you are waiting 45 - 90 days to close, do not wait call us 770-279-0222 and close in 8 days.
I am an advocate of the "American Dream", home ownership, and understand our country's tax code rewards those that own homes with mortgage interest tax deductions and the itemization of other expenses once certain levels are obtained. Being a home owner facilitates all the benefits of being a citizen of our great country.
At Southeast Mortgage, August 2012 confirmed the high demand for home mortgages and housing in Georgia. Now is the time to act on any housing needs you may have been considering. Although we have reached an optimal point and a rare alignment of events, owning your home and meeting your families housing needs no matter the rate or home price should be in the forefront. During my 25 years in this business and in banking, I have not seen a more favorable alignment for consumers.
Since 1993, Southeast Mortgage has provided competent advice and great service to our clients. Keeping our clients informed of historical events that benefit them is part of our fiduciary duty as their life cycle lender. Our client's are our passion.
If you do not have a Realtor, please call us at Southeast Mortgage and we will refer you to one of our fantastic Real Estate Agent Partners in your area. Call 770-279-0222 or email clientservices@southeastmortgage.com .
Current housing data confirms housing prices are on the rise, inventory is significantly reduced, and historically low mortgage rates although slightly higher are still available. The down side risk of single family home devaluation is now gone and you can maximize your mortgage dollar at historical low rates. If you are waiting 45 - 90 days to close, do not wait call us 770-279-0222 and close in 8 days.
I am an advocate of the "American Dream", home ownership, and understand our country's tax code rewards those that own homes with mortgage interest tax deductions and the itemization of other expenses once certain levels are obtained. Being a home owner facilitates all the benefits of being a citizen of our great country.
At Southeast Mortgage, August 2012 confirmed the high demand for home mortgages and housing in Georgia. Now is the time to act on any housing needs you may have been considering. Although we have reached an optimal point and a rare alignment of events, owning your home and meeting your families housing needs no matter the rate or home price should be in the forefront. During my 25 years in this business and in banking, I have not seen a more favorable alignment for consumers.
Since 1993, Southeast Mortgage has provided competent advice and great service to our clients. Keeping our clients informed of historical events that benefit them is part of our fiduciary duty as their life cycle lender. Our client's are our passion.
If you do not have a Realtor, please call us at Southeast Mortgage and we will refer you to one of our fantastic Real Estate Agent Partners in your area. Call 770-279-0222 or email clientservices@southeastmortgage.com .
Cal Haupt
Chief Executive Officer
Southeast Mortgage of Georgia, Inc.
770-279-0222
Thursday, August 23, 2012
Monday, August 20, 2012
CFPB plans to hold Bank and Non-Bank MLOs to same standard by January 2013
http://www.consumerfinance.gov/pressreleases/consumer-financial-protection-bureau-proposes-rules-to-bring-greater-accountability-to-mortgage-market/
CFPB enters 60 day Comment period for January 2013 finalization
Set Qualification and Screening Standards: Under state law and the federal Secure and Fair Enforcement for Mortgage Licensing Act, loan originators currently have to meet different sets of standards, depending on whether they work for a bank, thrift, mortgage brokerage, or nonprofit organization. The CFPB is proposing rules to implement Dodd-Frank Act requirements that all loan originators be qualified. The proposal would help level the playing field for different types of loan originators so consumers could be confident that originators are ethical and knowledgeable. The proposed rule includes:
770-279-0222
CFPB enters 60 day Comment period for January 2013 finalization
Set Qualification and Screening Standards: Under state law and the federal Secure and Fair Enforcement for Mortgage Licensing Act, loan originators currently have to meet different sets of standards, depending on whether they work for a bank, thrift, mortgage brokerage, or nonprofit organization. The CFPB is proposing rules to implement Dodd-Frank Act requirements that all loan originators be qualified. The proposal would help level the playing field for different types of loan originators so consumers could be confident that originators are ethical and knowledgeable. The proposed rule includes:
- Character and Fitness Requirements: All loan originators would be subject to the same standards for character, fitness, and financial responsibility;
- Criminal Background Checks: Loan originators would be screened for felony convictions; and
- Training Requirements: Loan originators would be required to undertake training to ensure they have the knowledge necessary for the types of loans they originate.
770-279-0222
Sunday, August 19, 2012
Southeast Mortgage Pays it Forward with a Georgia Industry Offer to MLOs
The Mortgage Industry has rewarded me and my
teammates over the many years we have been
engaged in this important business. I believe good
fortune should be paid forward. The most
effective way the Southeast Mortgage Team can give back to our industry is to
help educate others and improve their future prospects. Enhancing skill sets, fundamentals, and
certifications will open doors for personal development and add to the
stability of our industry. Our pay it
forward is described below.
Background:
The 2009 financial crisis marks the beginning
of my third recession. I learned valuable tactics during the past two;
however, this one was long and destructive.
The skills and knowledge from the past two recessions provided an effective
map for Southeast Mortgage to navigate the treacherous waters. Recessions
are basically a natural cleaning process for the economy which ensures the most
efficient and strong emerge. Sometimes
you have to clear some trees to build a bigger house.
Technically the past recession followed the
same indicators and patterns of previous deflationary cycles. One difference between this recession and
others for the Mortgage Industry is the opportunity created for the Mortgage
Loan Originator, MLO. MLOs, left in this
industry going forward now have the ability to create value in themselves versus
the company they work for.
Two types of MLOs in Georgia:
Registered Mortgage Originators
- work for depository banks and who are
not required to be Licensed per the SAFE Act
Requirements
·
submit
fingerprints for a state and federal background check
·
submit
their personal history and experience (MU-4 form)
·
will
have a unique identifier number
Licensed Mortgage Originators, per the SAFE Act
Requirements
·
submit
fingerprints for a state and federal background check
·
submit
personal history and experience (MU-4 form)
·
will
have a unique identifier number
·
demonstrate financial responsibility (LO's will have
their credit checked)
·
take 20 hours of approved pre-licensing education
·
pass the state and national mortgage exam by 75% or
better
·
will take 8 hours of continuing education annually
·
may never have had a license revoked
MLO opportunity changed in 2008:
Many MLOs did not like the National and State
Licensing requirement set forth by our government; however, I see it as a differentiating
certification and an opportunity. If you
obtain the licenses your career becomes portable in an industry that skill and
service dictates your growth.
Personally, I think all MLO's that made it through the past 4
years deserves a hand.
Now is the time to align with consumer and
Real Estate Agent needs that will maximize the next 3.5 - 4 years left in this post recessionary
recovery and be prepared for the next recession.
1.
Licensed MLOs earn 40
- 100 basis points more than Registered Mortgage Originators working under a
bank or savings bank registration. Profitability is similar among the
various forms of mortgage companies. That is a steep price not to invest
in certifications that build your career. Invest 30 days in your career to get
the certifications the government felt was important enough to put into law.
2.
With reduced
competition, barriers to entry, and enhanced regulation, now is the time to
build your referral networks with great service. Your referral base
should be 30% life cycle referrals, 30% Purchase Money, and 40% core repeat
clients. Fish for yourself and reduce dependency and uncertainty.
3.
Pipelines that grow
faster than your closed loan volume is a red flag.... You should close
70% of your pipeline monthly. Growing pipelines does not help clients,
Agent's, or your family's security.
4.
Purchase and Refinance
are the same just a different client need. Both should be treated equally
because both are important at that point in time to your client.
5.
Ultimately service
matters! Personalities, good looks, and
apologies only go so far. Consumers want great service and Agent's need
to close transactions.
6.
A Licensed MLO has a portable
career. Employers of Licensed MLOs
understand you have to have great service to earn your MLOs tenure. Mutual respect is the building block of great
organizations.
Consumers want Licensed Mortgage Originator that
has met the minimal standards set by the US government. If we had the
current regulatory environment during the 2001 - 2005 cycle, I bet the
recession would have been the usual 6 month bump in the road.
The Georgia Real Estate Industry is about 7
months into the current recovery cycle. Registered MLOs need to invest in
themselves by obtaining certifications, create referral chains that build
independent business, and maximize the current cycle opportunity with fast
closes and Licensed MLO wages.
The Mortgage Industry has been generous to me and my teammates.
We have always looked for the best path given the industry's challenges
and opportunity. The path we always choose is not determined based on the
size of the easy button, but what will improve the fundamentals of our
competency and make us stronger and better positioned in the mortgage market.
Southeast Mortgage wants to pay it forward with a NO Obligation
and NO Cost offer to qualified Georgia Registered MLOs. Southeast Mortgage will provide the training
materials, classes, and administrative support to obtain a Georgia State
Mortgage Origination License and National License. The process will remain confidential and SEM
will execute a confidentiality agreement to that effect.
** Registered MLOs must verify an average 1 million+ in
conforming mortgage production per month for the past 12 months.
Simply contact Kathy Gyselinck, Executive Vice President, at Kathy@southeastmortgage.com and
begin your 30 day path to a portable career with you in the forefront. Kathy has a 100% PASS RATE for Registered MLO's following her proven process.
Fresh out of The Georgia Institute of Technology and on my first day at my new bank job at First Atlanta Bank, a wise man told me "the secret to success is never drive in traffic and never get on a crowded elevator". He was right. Thank you Roger!
Cal Haupt
Chief Executive Officer
Southeast Mortgage
770-279-0222
References:
http://mortgage.nationwidelicensingsystem.org/consumer/resources/Pages/default.aspx
Monday, August 13, 2012
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