Mortgage One Year After Disaster

The waiting period after a bankruptcy, foreclosure, or short sale has been reduced to just one year from the event!

Back To Work FHA Program Requirements:

• Purchase Transactions Only.

• Housing counseling must be completed 30 days prior to loan application.

• The bankruptcy, foreclosure or short sale MUST be related directly to the loss of job or 20% income reduction for at least 6 months. This hardship needs paperwork documentation. 

• Credit must have been satisfactory before the bankruptcy, foreclosure or short sale and be satisfactory for a minimum of 12 months after the event.



Bird nest birdhouse condo

A simple post about my birdhouse projects. I'm  making birdhouses, mistletoe decorations and house gifts for the coming season. My Pinterest page has more than 250 photograph's I have taken of local birdhouses.
It gets me thinking about home, shelter from the world for all of us.
I'm on my kitchen table.  Sunday dinner is made but we are waiting for my son to finish his Calculus homework. Wishing you a joyful home



Redlining is considered discriminatory and prohibited by the ECOA.[1] Redlining refers to the actual or figurative act of drawing red lines around certain areas of a city to  exclude unfavorable areas for home or commercial loans. If a borrower wished to obtain a loan secured by property contained within the red lines, he or she would be denied or given onerous loan terms unrelated to the applicant’s ability to repay. For example an area that is predominantly on racial component, or high crime rates, or happens to be next to the mosque... a mortgage loan might be more expensive rate or unavailable.  The FDIC referred to this practice as “destructive, morally repugnant, and against the law.”[2]


[1] Hillier, Amy. “Redlining in Philadelphia.”

[2] Federal Deposit Insurance Corporation. Policy Statement on Discriminatory Lending. 59 Fed. Reg. 18267, Apr. 15, 1994.

In recent history, lenders  attempted to implement a practice known as reverse redlining. This practice targets credit consumers once thought to be undesirable loan candidates and offers exploitative sub-prime home loan products calculated to deplete the applicant’s wealth. Reverse redlining targets racial minorities, elderly, immigrant and other vulnerable populations by extending oppressive lending terms likely to result in default and foreclosure. Instead of offering access to credit to communities once excluded due to redlining, reverse redlining directly targets these groups, reduces urban growth and further adds to the problem of inner-city property declination.[1]

[1] Squires, Gregory D. Predatory Lending: Redlining in Reverse. Jan/Feb 2005.

Foreign National Mortgage

C G Barbeau Caroline Gerardo the loan lady contact NMLS#324982

Foreign National having trouble getting a mortgage loan in the United States?
We can do them but first you might want to establish an ITIN number with the IRS and open two secured credit cards in the United States with a bank that operates in the state where you would like to purchase property.
Link how to:

The reason Foreign Nationals would want to do this is it establishes credit in America. If you are Canadian citizen, you will only have a Beacon score. The mortgage interest rate on loans in the United States is built from your credit score.

If you are a citizen of another country you can develop an international credit report from aa minimum of four trade lines from your home country, but the FICO score won't be high.

Want to purchase rental or investment properties in California?

Let's talk.


What is ECOA and Regulation B for Mortgage

• Discriminatory lending practices that Congress sought to discourage by adopting ECOA

• The broad scope of ECOA and its implementing regulations, Regulation B

• The complex division of regulatory and enforcement responsibilities between the Consumer Financial Protection Bureau, the federal banking agencies, the Federal Trade Commission, and the Department of Justice

• Requirements that creditors must meet when taking applications from credit applicants and prohibited practices during the credit application process, such as discouragement

• Information that creditors may and may not request about a credit applicant’s spouse and how certain types of credit transactions determine the scope of these limitations

• Prohibited considerations that creditors may not use and assumptions that they may not make when evaluating credit applicants

• Prohibited practices when extending credit

• Exceptions to ECOA prohibitions when extending credit to underserved consumers through special credit programs

• Disclosure and notice requirements

• Incentives that ECOA creates for self-testing to identify and correct discriminatory practices

• The interaction of state and federal laws against discriminatory practices in offering credit to consumers

• In 1974, Congress enacted the Equal Credit Opportunity Act (ECOA) to eliminate discriminatory treatment of credit applicants (15 U.S.C. Section 1691). ECOA is located in Title 15 of the United States Code under Title VII of the Consumer Credit Protection Act. The primary reason for the enactment of ECOA was anecdotal evidence that women were not treated on an equal basis with men when applying for credit. This discriminatory treatment extended to transactions in which women applied for loans to purchase homes. Before ECOA made it illegal for creditors to use discriminatory practices in the extension of credit, women, including those who earned their own incomes or who functioned as the primary breadwinners for their families, could not secure credit without asking their husbands or male relatives to cosign their applications.

One practice that witnesses reported during Congressional hearings that preceded the enactment of ECOA “…was something called ‘income discounting’; that is, when a lender would devalue a woman’s income when she applied for a loan based on the assumption that women were unlikely to remain in the workforce.” [1] Even when married couples completed joint applications for credit, such as applications for home loans, the income of a working wife was devalued or even disregarded unless the couple wrote a “baby letter,” stating that they were incapable of having children or that they were using birth control.


[1] Cyr, Maureen. “Gender, Maternity Leave, and Home Financing: A Critical Analysis of Mortgage Lending Discrimination Against Pregnant Women.” University of Pennsylvania Journal of Law and Social Change.


80 Towsend Irvine Open House Today

Woodbury Townhouse for sale Open House Today Irvine 12:30- 4:00

82 Townsend, Irvine California

Woodbury Townhouse for Sale

Open House Today 12:30 -4:00

Lowest priced unit in the tract

Priced to sell at $724,900.00
Bank owned, REO, foreclosure
(Needs new carpet but in moderate condition)

70 Townsend just sold/ closed on 9/13/2013 for $ 790,000.00

Foreign National Loans available!

Two story spacious unit!

Caroline Gerardo

NMLS  #324982

(949) 637-8190 cell

World Famous Blue ribbon schools!

 Community Pool


Caroline Gerardo (949) 637-8190 cell phone


Close Your Loan With The Government Shut Down

How are mortgage lenders dealing with not being able to verify Borrowers income?
Lenders have traditionally used the 4056T form and submitted to the IRS to verify that the tax returns a Borrower supplies are actually the same as what was submitted to the IRS. With Washington still fighting over the budget the IRS has suspended this service. In fact only auditors and a few essential employees aren’t home eating bon bons.
One creative work around for loans that don’t have fraud alerts on their social security numbers (sometimes having duplicate social security number indicates a Borrower worked under a different number or has poor credit in an alias) is to verify the payment or refund. Borrowers can provide the actual check for tax payment or refund- if this is not available a bank statement matching the exact amount on the return indicates the Federal Tax Return is accurately filed.
After the government gets back to work, the back log of 4506T verifications will be processed and added to closed loan files.
This of course may not work for certain complex returns. Other types of income verification- perhaps a second verbal verification of employment at  closing can double check to be able to close a purchase money loan or to make a rate lock happen on time.
Certain loan products such as the USDA are not available, as  FDA is totally closed.
The mortgage business is always pressed for time. The crunch is on now with the shut down. House Republicans vote today on legislation to step around defaulting on the national debt and end a two-week-old close of the federal government.
Caroline Gerardo
Eagle Home Mortgage
(949) 637-8190
(949) 784-9699
NMLS #324928


Mortgage Rates Fall

Governor Brown get the State Troopers to Open Yosemite
Mortgage rates declined in end of September after the Federal Reserve held off slowing its $85-billion-a-month in bond purchases. The bond buys hold mortgage rates downward.

Longer-term rates have also stayed low because of the partial government vacation. Information is still available to analyze.

PPI - M/M change 0.3 % 0.2 % -0.2 % to 0.4 % n.a. %

PPI -Yr/Yr change 1.4 % n.a. %

PPI less food and energy - M/M change 0.0 % 0.1 % 0.0 % to 0.2 % n.a. %

PPI less food and energy - Yr/Yr change 1.2 % n.a. %

This release is delayed due to federal budget issues

Released On 10/11/2013 8:30:00 AM For Sep, 2013

Prior Consensus Consensus Range Actual

Retail Sales - M/M change 0.2 % 0.0 % -0.3 % to 0.5 % n.a. %

Retail Sales less autos - M/M change 0.1 % 0.4 % 0.1 % to 0.7 % n.a. %

Less Autos & Gas - M/M Change 0.1 % 0.4 % 0.1 % to 0.5 % n.a. %

This release is delayed due to federal budget issues.

Market Consensus before announcement

Retail sales in August increased 0.2 percent in August after a 0.4 percent gain the month before. This was the weakest gain in four months. However, autos jumped 0.9 after a 0.5 percent dip in July. Retail sales excluding autos edged up 0.1 percent, following a 0.6 percent rise the month before. Gasoline sales were flat, following a 0.7 percent spike in July. Excluding the auto and gasoline components, sales nudged up 0.1 percent, following a 0.6 percent boost in July. Within the core, the numbers were mixed. More recently, unit new motor vehicle sales dropped a sharp 5.1 percent in September.

JOBS reports to come in October. 

I predicted a rate Fall in around Halloween. Lenders who know me, they see me at Laguna Beach, Laguna Niguel OCAR, and Rancho Santa Margarita meetings have thanked me for being “right on” yet another time. I advised all Borrowers in August and September 2013 who had to close to do a zero points loan because a short decline is ahead before the 31st of October 2013. More than twenty Borrowers and 22 colleagues have commended me for having the proverbial crystal ball.

May I further predict: Retail sales for consumer goods going into the holiday season are not going to rise. Have you seen families carrying bags at the mall? South Coast Plaza (the mecca for the wealthy here in Orange County) has walkers, window shoppers and 82% without a purchase bag in hand.

The shutdown that began this month spurred investors to sell stocks and buy Treasury bonds. Mortgage rates tend to follow the yield on the 10-year Treasury note. The 10-year note traded at 2.67 percent Wednesday, up from 2.63 percent last week but down from 2.71 percent on Sept. 23.

The shutdown will certainly slow a housing recovery, if it drags for more than ten more working days. Federal employees are unpaid and not at their desk, but when they return we still owe them dough.

Jan Brewer today negotiated an agreement with the U.S. Department of Interior to reopen Grand Canyon National Park using state and local funds amid the ongoing federal government shutdown. Jerry Brown place the State troopers to open Yosemite and show this country who we are. Californian retirees will show up if you rally them to help run the parking and dust off the Ahwanhee. Think out of the box Governors.

On the home front, borrowers who applied at the big banks can’t to close on their mortgages on time. Some lenders are having a hard time getting confirmation of applicants' income tax returns and Social Security data because of government agency closures, delaying some mortgage closings. USDA loans are at a halt. FHA loans for certain lender bank systems are also stalled.

Furloughs at the Federal Housing Administration cripple the agency's already slow processing of loan guarantees for some low- to moderate-income borrowers and first-time homebuyers.

Meanwhile I am open for business and happy to help you close your loan.


Canadians Buying Real Estate

Fall in Glen Oak
Items needed for a Foreign National to start a home loan

Canadian tax returns 2011 2012
current paycheck stubs past 30 days
bank statements all pages past 60 days - not online printouts
driver's license and passport copies
Loans are in Borrowers names NOT in LLC or Corporate Vesting
4 credit references ( mortgage, credit card or auto loan)
complete forms

More paperwork will be required after initial review


Please read:






ITIN: apply for an individual tax ID number via W7 form which can be found on

•You do not need to file taxes with this form if you are applying for a home loan (special exemption)

•The ITIN does not need to be received/in the file prior to funding. We just need evidence the form has been submitted to the IRS.

A letter from an accountant/CPA is required verifying income figures for the last two years and must provide year to date income figures.

• 4 years continual self employment required. 2 years in the same line of work with 2 full years of self-employment may be considered.

• 1 year income documentation required; 2 years may be requested by the Underwriter in certain instances

• A CPA or CA letter, on the CPA's letterhead, documenting YTD and previous two year's income is required.

All CA contact information must be verifiable.


􀁻 Accountant/CA’s business is to be verified using LexisNexis, D&B International Business

Caroline Gerardo
NMLS # 324982
(949) 637-8190 cell phone


Government Closed no Mortgage

Mortgage Investors and the agencies have communicated that they continue to operate business-as-usual and enforce their standard policies and guidelines. BUT cough. Only, Hopefully, lenders will follow this practice and continue to operate business-as-usual. Without the tools needed: the screwdriver, hammer and  show up for work U. S. government stamp on  loan originations, rate lock management, risk assessment, borrowers, realtors, home owners will experience closing and funding disruption. The government shutdown may slow, delay or tangle your loan closing.
"Mine government is the main source of real estate mortgage loans" -- call your Republican Congressman (woman) (person of interest)

October 1 2013 the United States Government and many American Federal offices were closed. What details will be shutdown that relate to home loans?

·         4506-T’s – The IRS is not validating tax transcripts at this time. The IRS is mostly closed and employees are send home without pay. Tax transcript validation is needed to close mortgage loans and verify that Borrowers/ Buyers / Homeowners actually filed the returns they supplied. Once submitted to the 4506-T vendor, most vendors will hold 4506-T submissions in queue for processing when government services are again available. 4506-T requirements for loan submission and funding are unchanged, without this information funding is not going to move forward. 

·         SSN Validations – The Social Security Administration is not validating social security numbers at this time. Once submitted to the SSN vendor, the vendor will hold the submission for processing when government services are again available. SSN validation requirements for loan funding are unchanged for mortgage bankers, banks, lenders, etc...

·         USPS Address Verifications – USPS address verifications are available.

·         Federal Government Employee Verbal Verifications of Employment – Investors and agencies require that VVOE’s be conducted on all loans, and specifically when the lender knows or believes that there has been a disruption in employment. To ensure that mortgage lenders meet investor and agency requirements,  verbal verification of employment (VVOE) can be documented, and also re-verify employment at funding for all federal government employees. Loans to federal government employees can close once the requirements for VVOE are met. 

·         Rate Locks and Rate Lock Extensions – The  rate lock and extension policy continues unchanged at this time. Rate lock fails are the responsibility of the Borrower, without funding source, information sources and the United States Government (thank you President Obama and the Republican factions for not compromising) cooperating closing a government loan (i.e.: 95% of all residential loans in the United States are halted, frozen, in limbo not good)

·         FHA/VA – The following FHA/VA services remain available at this time:
b. Appraisal Logging
c. Case Number Assignments

·         USDA – The USDA has discontinued operations at this time. Continue following  policy regarding conditional commitments. USDA loans can proceed with closing when  conditional commitment requirements are met. Locks on USDA loans that have not received conditional commitment are not permitted. The impact on GUS approvals is being assessed. 

·         FEMA – Impacts to FEMA operations are still being assessed. Flood certifications will not be available after a few days. It is anticipated that while flood certificates will be available, disputes and redetermination requests will not be responded to during this event. In 1995 this went on for 22 days. The repercussions for government loans, was a backlog of 30 plus +days.