Mission Plan

Sunday afternoon making my list for the coming week.
It's been a wild ride.
With a heavy heart I resigned from Pinnacle Home Mortgage. I didn't leave
because of anything structurally wrong there, its more about the changes from
Covid19 in the past months.
Allow me to back track, our group recently started before the quarantine
we did not have our lease signed with Irvine Company,
these rodeos are a dance back and forth and then was put on the
back burner as the office is in a high rise which involves a long elevator ride,
setting up safety for cubicles and new design concepts. So we struggled with
work from home. However, my home is a working ranch with all the confusion
of a carnival. Backhoes digging the road above me, a wasp infestation, then the
bee swarm, next the rats attacking my tomatoes, and not least OCSC Helicopters
"The Duke" and Duke II landing on my driveway in trouble. In the past four
years I always called the ranch the quietest place on earth, but neighbors construction,
Rancho Mission Viejo policing and Nature seemed to converge into the looniest storm
during the days I was squinting using my tiny laptop at home.
Then my boss and his boss started rumbling about jumping ship to join another company.
I kept my head down and didn't engage in the discussion, not wanting to disturb
my mortgage clients or worry my Realtor partners. When a tornado is on the horizon:
count the cans of peaches in the cellar, make sure there is water, and a bottle of fine wine.
Thanks 'rona for adding more pounds on my body.

Meanwhile I'm talking with an entity about doing something else big and somewhat related.
Packing boxes, listed artwork at Sotheby's, learned selling books on Abe books is not
profitable because their monthly fee is $25 and they underestimate shipping costs - I lost
about $38 per book on shipping to Europe, by the time I caught the problem too late.
I cannot donate books to the public library, because of the 'rona...
 (I have about 3000 art books I want to lighten my load).

Change is good. Time to lose my extra 'rona weight gain and Marie
Condo my personal belongings.

Training started for Sun West Mortgage this past week, and with Google now Zoom we
had a bit of confusion on the time and rescheduled the date. I have now worked on every
software in the mortgage and mortgage servicing arena, even build some early DOS ones
then also customized Encompass and Point. Not worried about new systems, that's the
least of my concerns.

I wonder about the changes ahead for those who work in offices and retail and every structure
for that matter. I was researching stocks of companies that make products that kill virus on
surfaces.  I searched companies that make products that will profit in this time, but also who
may invent or adapt something to use for office, restaurants, buildings where humans work.
Disinfectants Sanitizers like Virucide* used in Hospitals, Institutional and Industrial
Virkon, Clear Lemon, and Agriculture and Veterinary Cleaning products that kill virus.
What types of ultra sonic light or laser or something hot could be used in air filtration
systems? What could we do to kill virus on contact? Just tangent thinking and worrying about
working on the eleventh floor with thousands of people who in Orange County are refusing
to wear masks. I will let you know when I have some answers.

My list is ready for the week.
Mission planned out.
Got the groceries for the meals planned,
get four miles in every morning around 5:30,
make 40 calls from 2-5,
set up new CRM 3 hours before lunch,
pray the rosary daily,
and keep my children on track as well.

Search for my next leap
God bless you all.
Please wear a mask

photo booth

exotic bugs labelled

figurines hand carved


votive candles

ghost of Saint Francis

wooden crucifix

Corona De Maria 

San Juan Capistrano grave yard

mission grapes



Refinance Before Forbearance ?

Mortgage Rates are going to fall some more in the coming months.
Right now banks, Wall Street, mortgage lenders and brokers are 
all hedging with higher margins due to covid19. The future is a bouquet of roses?

And why you ask?

Though the Ten Year Bond has bounced close to zero since
March 2020, it was traditional that lenders charged, call it
a profit of 170 over the Ten Year Bond. Right now they
are charging between 230 and 250. The reasons are as follows:
expected volatility is risky, there are millions in forbearance
who may go into default, values will likely decline, they can't
hire new people to temporarily fill the hamster seats who do
all the work, and mainly they expect rates to fall further which
risks early payoffs and losses. Rather than go into why the 
last reason is important I want to explain how lenders will see
your forbearance in the future.

If you have income it would be best to refinance now before things get thorny.

Right now Fannie Mae and Freddie Mac are working with Congress on a bill or bills to figure out how to deal with the
massive numbers of home loans in forbearance. Temporarily
they agreed to buy some of the new loans in process until June 30,2020, soon to be cut off in the coming week. Or perhaps the Federal Government will extend? Lenders who sell loans to Fannie and Freddie cannot afford to be stuck holding a low interest rate
mortgage coupon who is not paying, or making partial payments,
this will bankrupt lenders and servicers. 

So you asked for the forbearance because you are laid off? 
Try and save up the money you will need when the 180 days
or whatever they wanted to grant you are over. Only maybe 
will they give you more time and if you know anyone who
tried to get a modification in 2008, it takes time and the stress
is hard on everyone. What can you do to increase income and
cash flow? What can you sell now before everyone else does?
What other income can you pull in? Can you rent your master 
bedroom? Start with a notepad and start brainstorming. Finding
a replacement job if your company closed is going to be difficult.
Students who just graduated from Ivy League schools with 
desirable hire-able majors may have to move home. The plan
to remember during this time is that it won't be forever, things
will bounce back.

Refinancing your home is not going to be possible during forbearance, lenders will want to see you current. A Few lenders will allow you to bring the existing loan current and show you made three exact payments on time. The attestation you made to get the forbearance - the reason you used is going to come into play if you want to refinance or get a new purchase mortgage. 

The existing mortgage company is not going to extend the forbearance if you have income enough to refinance or purchase another property. 

Fannie Freddie USDA and HUD are NOT all on the same page as to forbearance there no one size fits all. The GSE's don't agree.

Here are some differences today as of 6/15/2020

So you got at 90 day forbearance back in late March from your servicer but you need longer. If loan is owned by Fannie/Freddie/FHA/USDA lenders were required in May to offer 180 days. You need to contact your servicer to extend for the extra ninety days.
Fannie maybe will automatically extend you for ninety days more being a total of 180 days.
Freddie expects you to contact you servicer and re attest. This means you must call or write a letter explaining your ongoing Covid19 related hardship. Some servicers require a wet signature. Some servicers will require you to be notarized and record the extension. You are changing the repayment terms, they are NOT forgiving any debt, only pushing it out in a variety of ways to the future.
There is not clear guidance in the Cares Act, yet.
HUD and USDA announced this week under the Cares Act that mortgage servicers must approve any forbearance no LATER THAN October 20, 2020. This date was set this week based on March 19th 2020 being the start of Cares Act.

In summary - law is fluid and changing

Corona virus shook up every institution.

Our COVID-19 Response - Freddie Mac

Search Results Web results Guide to coronavirus mortgage relief options | Consumer ...


PPP Loan Programs

PPP and Other Corona Virus Loan Programs
Help New Program Coming!

  Updates on federal loan programs:
  1. On June 5, 2020, the President signed into law the Paycheck Protection Program Flexibility Act to provide borrowers greater flexibility in getting their loans forgiven. 
  2. Today on June 8th, U.S. Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza released a joint statement outlining the changes. 
    • Please note that while the "covered period" of the loan was extended from 8 weeks to 24 weeks, the deadline for applying for a PPP loan application remains June 30, 2020.  If you're still interested in applying for a forgivable PPP federal loan, please do not delay. If you need help, contact me I can get you in touch with someone at no cost. You may need your accountant or CPA to assist if you are not a numbers person. Get out your IRS taxes for 2018 and 2019 if you filed and find the payroll numbers, count of employees before end of February, your tax Id number it's not that difficult
    • There is still more than $130 billion in available funds and you must apply by the end of this month.
    • On June 8, 2020, the Federal Reserve announced the expansion of the Mainstreet Lending Program to small and medium-size businesses. While these types of loans are not the forgivable type and were previously only available to major corporations, the terms may be attractive with very low interest rates and provide much more flexibility for use of funds for operating costs rather than just 75% payroll. $75 billion is being made available for these loans through the CARES Act. Please note that the Federal Reserve Board also confirmed that they will soon be announcing an additional loan program specifically for nonprofit organizations.

    •  Key highlights of the newly expanded Main Street Loans include:
    • Allowing eligibility for companies with fewer than 15,000 employees
    • Lowering the minimum loan size for certain loans to $250,000 from $500,000
    • Increasing the maximum loan size for all facilities
    • Increasing the term of each loan option to five years, from four years
    • Extending the repayment period for all loans by delaying principal payments for two years, rather than one year
    • Deferring interest payments for one year
    • Interest rates set at LIBOR+3% Libor today is .67 and going forward LIBOR is going away and will be replaced by two other averaging indexes
    • Raising the Reserve Bank's purchasing of all loans to 95%