Low Rates

 If you locked your rate in the last two weeks
JUMP SHIP and come over to lower rates
Ask me how
(949) 784-9699

The stock market’s plunge following the Brexit vote was bad for most people’s retirement accounts but good for those looking to refinance their mortgage. Even as the market has started to recover its losses and the flight to bonds’ safety has eased, home loan rates remain down.
Despite the low rates, growing pessimism over the direction of the economy is spilling over into home-purchase sentiment. Pending home sales – those deals that are under contract but have not closed – declined in May, marking their first annual drop in nearly two years. Rates may be low, but not many people are rushing out to make a big purchase such as a home with so much economic uncertainty. The group most likely to benefit from low rates are homeowners seeking to refinance.
According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average plunged to 3.48 percent with an average 0.5 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.56 percent a week ago and 4.08 percent a year ago. Since the beginning of the year, the 30-year fixed rate has plummeted nearly 50 basis points. (A basis point is 0.01 percentage point.) It has fallen 18 basis points in the past month alone.
The 15-year fixed-rate average sank to 2.78 percent with an average 0.4 point. It was 2.83 percent a week ago and 3.24 percent a year ago.
The five-year adjustable rate average dropped to 2.70 percent with an average 0.5 point. It was 2.74 percent a week ago and 2.99 percent a year ago.


Cell : (949) 784- 9699  7 AM – 7 PM 7 days a week
After hours email

TRUMP Trashes Dodd Frank

Trump's Burned Kettle
Calling the Dodd-Frank Act a “negative force,” presumptive Republican presidential nominee Donald Trump says he will unveil a plan to overhaul the controversial Wall Street reform law that was passed in 2010 in response to the crisis.
While he did not disclose specific changes he would  dismantle Dodd-Frank.
“Dodd-Frank has made it impossible for bankers to function,” Trump said “It makes it very hard for bankers to loan money for people to create jobs, for people with businesses to create jobs. And that has to stop.”
The presumptive Democratic presidential nominee, Hillary Clinton, was swift to respond to Trump’s stated intention to overhaul Dodd-Frank. Wednesday morning, Clinton tweeted, “Latest reckless idea from Trump: gut rules on Wall Street, and leave middle-class families out to dry.”
I'm not sure either one knows what they are speaking about. Dodd Frank was a well meaning but stupidly executed plan. Dodd Frank made the big banks richer and the little guy not to get a mortgage. Dodd Frank did not get the crooks and liars out of mortgage banking, the tin men sales people moved to loan modifications, those who couldn't pass a knowledge test moved to sell cars or work under someone else's license. I challenge Borrowers who say they had no idea their payment might go up. I do admit that African Americans were preyed upon by some lenders, who gave them higher rate loans. Of the thousands of Option ARM loans I closed I have a tough time convincing a Borrower whose rate is now under 3% but has to make principle payments to refinance.

Republicans have been trying to roll back Dodd-Frank ever since it was passed in July 2010. Lately several bills aimed at chipping away at the law have gained traction in Congress. In mid-April, two  bills passed in the House Financial Services Committee; one to repeal Dodd-Frank’s bailout fund for large, complex financial institutions and one to put the Consumer Financial Protection Bureau’s spending on a budget in an attempt to make the Bureau more accountable to taxpayers. CFPB has become the gorilla in the day care center.
Rep. Jeb Hensarling (R-Texas), Chairman of the House Financial Services Committee, recently told DS News that “America needs a new vision—a new model for financial reform—because the Dodd Frank Act is a failure.”
Democrats have generally been fiercely protective of Dodd-Frank and highly critical of Republican efforts to undermine it. Rep. Maxine Waters (D-California), ranking member of the House Financial Services Committee, said of those two bills that passed in the Committee in mid-April, “Both of these bills, if enacted, would take our financial system back to September of 2008, when regulators did not have the tools to protect consumers or the broader economy from financial sector ruin. It would take us back to a time when we were hemorrhaging nearly 800,000 jobs a month, household wealth dropped by $13 trillion, and millions of our fellow Americans were facing foreclosure, eviction, and potential homelessness.”

And Trump who has BANKRUPTED what four companies is going to come up with a financial plan?
And Clinton who was caught with her hand in the cookie jar is any better?

Where is our country going?

Tip if your kettle gets black from propane gas not being mixed right- Fells Napha soap on the pot can help. Rather than just calling the kettle black

Refinance Rules After Modification by Lender

Rules to Refinance AFTER Loan Modification

Often Borrowers forget to tell Loan Officer/ Mortgage Banker that they completed a loan modification. Unfortunately these are handled like other credit dings such as Short Sales. One vital piece of information in determining the wait period is if forgiveness of debt (reduction of the loan amount was granted). This may not show on your credit report, however the information will be hung up with your laundry.

Below is a list of lenders and what their rules or wait periods are:

Refinance after Modification


3 year wait period if government assistance/principal write-down.
Exceptions to 3 years if substantial documentation of extenuating circumstances
Never less than 1 year.
Must have documented extenuating circumstances.
No lates on the mortgage in question in last 12 months
Must review all modification paperwork from lender.
Borrower must be in compliance with all lender’s requirements, such as occupancy time-frame, resale time-frame, if any.
Reason for short sale must be fully mitigated and supported by documentation.

Fannie requirements

Review all modification documentation and determine if there was principal forgiveness.
Obtain pay history from servicer (outside the credit report)
showing no 60 day lates in last 12 months. (as part of the deal the lender often agrees to waive or remove derogatory ratings.
Fannie wants to know if the borrower has been delinquent.)

CHASE requirements

4 year waiting with max 90 Loan to Value or Combined loan to value - in general HELOC seconds are NOT going to grant any new credit,
but a subordination of existing second may be arranged LTV/ CLTV.
7 year waiting for > 90 LTV/CLTV
3 year waiting if extenuating circumstances,
only on primary or NCO with up to 90 LTV/CLTV.
Must obtain explanation statement from borrower,
third party documentation confirming the events were isolated
and reduced Borrower income
Must review all modification paperwork from lender.
(Chase orders package from
lender not Borrower to avoid secrets)
Must go by more restrictive of these guidelines or AUS

Freddie Requirements

4 years wait
2 years wait with documented extenuating circumstances.
Must obtain explanation statement from borrower,
third party documentation confirming the events were isolated and reduced Borrower income
Must review all modification paperwork from lender.
Underwriter must comment on 1008

Wells Fargo Requirements

4 to 7 years wait
2 years wait if documented extenuating circumstance
Must review all modification paperwork from lender.
Minimum 680 credit score required
At least 10% down payment or greater if required by transaction
Reestablished credit

VA Requirements

Call the appropriate VA office to discuss the specifics of the case
Have lender modification documentation available
Depends on hardship (proof as with all these cases is a box
of paperwork to be verified)

June 2016 Caroline Gerardo copyright
(949) 784- 9699 cell
NMLS 324982
these rules of course can change


Divorce Buy Refinance or Sell

Divorce and
Your Home
Options and Strategies

Sell House, Buy Out The EX,
Refinance or Counseling? 
As with most issues related to divorce, there is no single best way to handle your
mortgage. We will help you sort through your options and strategies and do our
part to help you at this time... and down the road.
When it comes to planning your home financing future, let the professionals at
Eagle Home Mortgage help you make the best financial decision for you.
We understand it’s not just a house... it’s your home.
Call today for a complimentary mortgage review to discuss your options!
What do I need to consider in order to stay
in my home?
My Spouse is entitled to share in the equity we
have in our home... how is this handled?
If you’ve decided to keep your home,
you may wonder...
In many divorces, the home is often refinanced.
When married couples both have their names
listed on the mortgage, one person may need to
be removed if they no longer own the property.
Can I purchase a new home? If so, can I purchase
another home while still listed on my previous mortgage
or before the divorce is final?
If you’ve decided not to keep your home,
you may wonder...
Although a new home may be what you are
interested in, you need to remember that if your
name is still on your current mortgage, issues may
arise when trying to qualify for your new loan.


Refinance Low Rates

I would like to let you know that TODAY mortgage rates 
have once again dropped to historic levels. 
It’s a great time to take a look at your current mortgage
 / mortgages and compare with current market rates.

If you have one of the following I would highly suggest a review:

Rate above 3.875%
Mortgage where you pay Mortgage Insurance
1st & 2nd combo - consolidate into one loan
Term above 15 years
Need for cash out for home improvement, debt consolidation 
or equity extraction?

With current home values at record highs,
 mortgage rates at record lows and mortgage insurance costs 
with record low premiums there is a lot to be gained with a refinance review.  
Send me a copy of your mortgage statement or call me with questions.
 I can quickly review and make some suggestions that will save you $$.

(949) 784-9699
NMLS 324982 

This is not a loan commitment nor a rate commitment
June 14 2016 rates change a couple times a day
Terms and conditions apply
Stop by for lunch, call first and we will include
you in the pot luck

Some photographs of our office having lunch at the end
of a hard working month. We have everything here in
house- processing, Underwriting, Funding, Review


Organic Soil Orange County, California

I moved from Laguna Niguel Homeowner Association home to a ranch outside of San Juan Capistrano.  After nearly twelve years my garden was all organic. I'm starting over.

In order to develop soil that sustains low water organic gardening in rocky clay
that has never been cultivated I searched for local companies that provide compost,
or organic soil, or methods to speed up my garden plans.

I contacted a couple companies:

Sierra Soil once was just across Ortega Highway. I emailed and called with no response.
Website stated they require payment before delivery.  Daughter and I drove out to
the location listed on their website as next to CR'R's staging plant. We followed
the wooden signs and could not find the location. I later heard back from them that
they no longer operate at that location.
I heard from other suppliers that Sierra Soil uses horse manure as the component of their compost. Horses do eat green matter but I was thinking that even a cow with multiple stomachs might process the impurities better than horses. From my reading smaller animals- goats and chickens might supply manure that breaks down faster, is healthier for human vegetable use.
Other suppliers I contacted: Serrano Creek Soils. They have a gorgeous website but prices were double the others. I figure I can add my worms and personally added vegetable and leaf clippings to the compost area. In a year I will have plenty of organic material to mulch, amend the soil and grow beautiful flowers and vegetables.

I picked McAllister because Dave answers the telephone.
He is knowledgeable and kind. 
He has been in this business nearly thirty years.

Interesting Facts:

Photograph of Dave with his gorgeous truck. He says the State of California is forcing
him to retire this historic truck because of emissions - much like the neighbors of
the new High School in San Juan drove him out of his location. It saddens me that a
small business has to struggle this way.

I highly recommend Dave. He delivered without advance payment, exactly to my remote 

Dave McAllister Topsoil, 
Potting Soil, gardening, orange county, California, 

31748 La Pata Ave, San Juan Capistrano, CA 92675


HERO Loan For Selling Home

Realtor asked me today:
"What can a Seller Do about a HERO Loan?"
HERO is in my opinion a scam on owners. It is same as property tax and never goes away until paid in full.
There is no assuming the loan- or qualifying to leave it on. It is stuck there until paid off.
In order to do a new mortgage, refinance or sale the property must have enough equity to allow it to stay on title. 
Example: Loan given is $30000. They completed about $11000 in actual cost improvements (this is the saddest part that homeowners don’t realize they pay ten times more for solar or insulation... this way rather than buying it on open market)
Twice a year a payment is made. It may take 20 years for balance to go down.
Seller cannot sell to buyer with Fannie, Freddie, FHA or USDA mortgage loan or conventional pricing and financing.
There are investors who will loan on them—higher interest rate and minimum 20% down.
The problem is- appraised value minus the Hero Loan is value used and from there 80% loan-
Buyer may need 30 -40% down depending on amount of Hero Loan, value of house etc…

Homeowners in Inland Empire, Riverside, Kern County, Fresno County etc seem to have fallen prey to these transactions. Most often the Homeowner is elderly or lacking financially. Is there a class action lawsuit against them yet? NO. But CFBP is investigating and fines pending...

Anything that sounds too good to be true is likely not real.
Free electricity? 
Okay disclaimer- I live off grid and have solar that is not HERO loan, was in fact upgraded to newer cheaper system. Solar has become so inexpensive you probably do not need a Hero loan to
install the panels and battery system.


Dismal Jobs Report Delivers Low Mortgage Rates

Dismal Dark Dingy and Dank May Jobs Report delivers a few pine cones.

Worry will my son coming home from college work fast food?
Or Engineering Student Seeks Summer Job in Dismal Job Market.
Good news is mortgage rates love bad news. Rates fall! Hurry get your refinance application in now!

With the U.S. economy only adding 38,000 jobs in May vs. the 168,000 economists forecasted, we've seen a swift shift in what to expect from the Federal Reserve following their meeting later this month.

Janet Yellen backs down!  No rate hike happening before Christmas. 
Worst report since 2009 after the crash
What will the Fed do now?