PIN IT

4/26/2016

Banker Broker Mortgage Lender


Banker Broker Lender
Tell the truth, or I’ll point it out.

Not all mortgage companies are the same.




The type of mortgage company or “shop” rules what home loans a Borrower can access. Differences in skill, speed and ability to close is hidden from the public when applying for a home loan. A variety of titles for the shop confuses consumers. Banks, lenders, Mortgage Bankers, Consumer Direct, Call Center, Retail, Wholesale, Correspondent Lenders, Direct Lenders, Mortgage Brokers and online entities are among the few styles of business.
The United States Government funds ninety five percent of mortgage loans in America. Fannie Mae and Freddie Mac purchase conforming and high balance conforming loans. Both Fannie and Freddie are U. S. owned and regulated. A bank such as Wells Fargo only sells conventional loans to Freddie and Chase only sells to Fannie. There are grey areas of rules and guidelines but Fannie and Freddie are similar in this heavily regulated industry. FHA and USDA loans are also “owned” as I like to call it “by mine government.”  I mean to say the Underwriting guidelines for all these loan types are written in a huge long form tablet, in stone.
There are now a few sources for smaller niche banks, credit unions, hedge funds and portfolio lenders that only a large based mortgage banker has access. These special exception loans are the other five percent of all loans closed in the U. S.
The systems used for approving loans are: DU, LP, GUS and manual Underwriting to a list of rules. Computer platforms also differ in mortgage companies. Some systems are web based, some rely on paper files. A loan is touched by nearly eighty people and systems that verify each piece of information on top of the eyes of Processors, Underwriters and Funders. Gurus for years said a monkey can be a mortgage originator. They thought the progress in computer automation would take out the human aspect of closing a home loan. This today is very untrue.  A person can pass the testing and background checks but good looks and salesmanship do not overcome being on an inferior platform or not having intellectual skills to match what a customer wants.
As in buying real estate, location is the most important fact. The type of shop makes a difference. What makes Mortgage Banker, Loan Officer or Mortgage Broker dissimilar is the company/stage they work upon.
Mortgage bankers work in the most flexible model. They sell loans to both Fannie and Freddie directly. Mortgage bankers offer products outside of their “in house.” This system sells loans to the U. S. government, niche secondary credit unions, hedge funds, and small banks. Mortgage bankers close loans with their own cash or warehouse line and deliver the package to the end buyer to service. Licensing for mortgage bankers is stringent. Risks are high. Loans that are not an exact fit to the end game must be bought back with cash. Mortgage banking however allows for greater speed and variety.
I sit in a Mortgage banking office alongside of Underwriters, Processors and Funders. This allows for quick closings. It also provides a landscape of a hundred thousand products and rates at any given hour. Some products we are “delegated direct.” Delegated directly is when Underwriters in my office have the vote of confidence from the end purchaser to approve, fund and deliver the loan to them for servicing in days. We don’t ship delegated direct files to end user until after closing.
Besides closing standard loans quickly we broker to other special sources using their platform to disclose, Underwrite and fund. In brokering to Union Bank, Bank of the Internet, UBS, HSBC and others the mortgage banker him or herself takes on responsibility to understand the parameters the end user will or won’t accept. The file is sent to the secondary source to grant final approval.
On the other side of the spectrum the mortgage officer sitting in a bank has far less products and control to offer consumers. Banks employ loan officers. L. O.’s are paid less commission in exchange for promise of leveraging the bank brand, in house referrals and walk in traffic. Big box banks sell all loans to our government. Banks no longer earn large profit from selling home loans (credit cards make more and require less labor costs). Banks centralize all the people and systems that check and triple check a loan for truth. Although a consumer may meet the sales person (L. O.) in a bank branch the information is packaged and shipped often out of state to be processed, then to another location to be underwritten, a third for funding and fourth to audit. Banks work a loan in a production line and measure the speed of each of the employees who touch the loan. For example, a complex file of a self-employed borrower is triaged and separated to bottom of stack because it is better to close three files of w-2 earners than hog the utility of skilled employees. Banks do not hire additional employees with the flux of business. Mortgage applications increase when interest rates fall and turn time at a bank slows.
Call centers catch consumer’s eyes with advertising on Zillow, Realtor.com, radio and print. This type of mortgage origination platform is an online presence with a boiler room. Quicken loans regional call centers take applications on a production line. This works for a Borrower who only receives a w-2 from same employer past three years with good credit. Sales persons on the phone must take a greater number of applications to make a living. Call Centers can work through simple loan applications but often are unable to overcome any glitch or variation from the cookie cutter loans.

As a consumer ask questions about who and how your loan is reviewed. When things
get sticky, and they do with the pile of paperwork needed to close, it is good to know
the person you are applying with can give answers and close.

Thanks for reading
Caroline Gerardo NMLS 324928
(949) 784-9699




images are your reward for reading

4/10/2016

Steps To Downsize Your Home


Not Politically Correct Shirt for sale $5.00
Downsizing all stuff I bought to fill up 3500 square feet.
Funny, I filled up my Laguna Niguel home with garden
tools, art supplies, antiques, and duplicate clutter.
This is a process to succeed at my goal.
To live a more simple life.
With my youngest is away at college most of the year, I
found myself rattling around in a big house, completing
weekend warrior chores and hating the leaves in the pool.

Have your family take what they will first.

I next tried selling items on eBay. Ebay is fine if your
item is worth a hundred dollars and it is small. Take good
photographs, check emails, pack and ship the item. If your what-cha-
ma call it is only going to sell for eight dollars you won't make
minimum wage. Read all of eBay's return policy rules, not fair to seller
and their shipping estimates are too low. Etsy is good for small collectibles,
Amazon also has a resale department. I found local consignment stores
weren't a fit as they wanted $400 in advance to pay for the pick up.One
consignment store took items and went out of business, oops.

I had one garage sale and planned to do one this weekend but
rain postponed that idea. Run a free ad on Craig's List. Have small 
change, grocery bags for customers, and lock your house.
Compile your stuff and place on tables.
It's easy to label: "everything here is one dollar." The objective
is to get a little money out of the clutter.
Garage sales are hectic. I know that sounds silly. A lump of people arrive. 
They sift through, pick up the china monkey figurine totem that grandmother
left you. The sounds of your stuff breaking or being pocketed 
(yes people steal small shiny items - go figure) puts you on edge. Most Home
Owner Associations in Orange County frown on or don't allow garage sales. 
Mine doesn't have this written in the C C R's; but neighbors knocked my signs 
down. I know they think it is crummy. Call it "estate sale" to give the aura 
of classy.

Donate what remains. In Orange County there are three great charities
that will send a truck. Bag or box the items and leave in front of garage with
a note. They leave a receipt. You can write off on your tax return up to 50%
of your adjusted gross income. More than 50% can be carried forward for
five years. Take photos, make a list, store the information in the cloud
for next tax season
Saint Vincent de Paul (714) 542- 0448 With Women (800)  990-1772
and Vietnam Veterans (800) 775-8387 are three local non profit organizations
that will pick up your things. 


Turtle with Top Hat no need for the Aquarium only $10

helicopter, military
Vintage Military Shirt Worn By President X only $10

3/10/2016

Rocket Mortgage - Woosh Takes Money Right Out of Your Bank Accounts


Rocket Mortgage says they can speed 
you to close your loan
BUT
Four downsides with this idea:
#1  A Borrower’s submitting personal 
documentation (unfiltered) straight into 
Underwriting is a terrible idea. 
No Borrower can edit and interpret 
and dig like I can. 
Some paperwork is best left out. 
Once it is seen, it can't be ignored.  
Every loan is a custom fit.

#2   I would never log into my bank through
 Quicken for asset verification.  
Quicken is capturing my login and password. 
They can take money out of the accounts.

#3    After the initial “rush” to approval, 
quicken admits that their process
 to close is no different than any other company.

#4   Borrowers lose their lateral vision 
in finding alternative loan products, 
the whole reason for going to a professional 
Loan Officer. 

Although outside industry thinks
a monkey, artificial intelligence AI or some
snazzy system can put a puzzle together - it
isn't just product knowledge that is necessary
- knowing what to put in the file, what 
to edit, and how to explain is Vital.

C. G. Barbeau
The Loan Answer Lady
(949) 784-9699


Link below from Article written by a Mortgage Guy from Quicken