Mortgage Loans : 02/2013

2/27/2013

Get Your Offer Accepted

Building a deeper business together

The real estate market in Orange County California has heated up with little or no inventory available. Properties are receiving multiple offers. I have some strategies to get your deal closed.

Do you want an amazing fast time frame to close a mortgage loan?

How to get your offer accepted in this current market when inventory is at a historic low?

How can you know if house will appraise for current market sale price?

How can you beat a “cash offer”?

Before you make your offer Borrower has loan Approval with either DU or LP findings. This means the only things necessary to close are appraisal, a good contract and title. This plan details how to get your offer accepted by the sellers in a market where there are many competitors.

First:

We sit down and set a strategy for closing quickly on the ideal home for the clients. I can meet with the clients in their home, my office or by telephone. Upfront we must all understand that this is a time consuming and many pieces of paperwork to execute. Borrowers must have their bank statements in pdf formats, and I can teach them how to save the statement and download to email to my secure email. Secondarily all their income information for the past 24- 30 months must be available to submit before they make the offer. Choices such as vesting should also be prepared with thoughtful planning. Once all this is submitted to Underwriting we should have a Loan Approval (not a pre-qualification or pre-approval) ready to show with the offer in two days. If there are credit issues to address, the client must repair these before making an offer.

Second:

Offer is made with attached DU or LP findings that itemizes Borrower has submitted all documentation to close. Offer releases appraisal contingency in seven days. Offer releases loan contingency in ten days. Offer states Borrower can close in fifteen days. Offer notes that seller’s agent, listing agent agrees to meet appraiser in person on day two or three with comparables on paper and property specifications. Offer also releases contingencies on day nine. I suggest you make the offer in person and have the client release a personal statement that I will help you write. Listing agent and escrow/ title must be prepared to work quickly.

Day One: Signed conformed contract is emailed to C. G. and she orders appraisal. Email to Borrower and both agents confirming appraisal ordered and escrow has been contacted. Estimated HUD 1 ordered from escrow, also preliminary title report and title particulars to subject property. Escrow and Title agree to provide all documentation in 48 hours.

Day Two: email agents and borrower confirming appraisal appointment has been made (assuming this is not a Sunday)

Day Three: Appraiser visits home, measures the property receives information from listing agent. Title policy, escrow instructions and HUD1 are emailed to C. G.

Day Four/ Five appraisal comes in at sales price; loan is submitted to Final Underwriting. * Day Seven Final Loan approval is completed

Day Nine: Loan Documents out to escrow, Borrowers sign that day, funds wire transferred for balance

Day Ten: Funding and recording

Fifteen Day Turn time is met assuming there are weekends that delay recording/ wire/ funding that must be done on a work day

What if you know there are no current comparables for subject property? If value is an issue, Client should already have been aware that comparables have not yet closed and they may choose to put additional down payment. We will review appraisal for any errors or omissions. Conventional Loan 75% loan to value first 18% down minimum 10% second; allows for some wiggle room if appraisal comes in low.

I will be sharing these tools at the OCAR Orange County Association of Realtors meeting tomorrow morning, Thursday at Ball Park Pizza in Laguna Niguel at 8:00 AM I am also supplying breakfast.

Underwriting:

Estimated turn time for all new purchase loans submitted to Underwriting today:

2 business days (16 business hours)

Estimated turn time for new refinance loans submitted to Underwriting today:

2 business days

Estimated turn time for new PTD and PTF-UW conditions submitted to Underwriting today: 8.00 business hours

Pre-Close Audit:

Estimated turn time for loans that received clear to close underwriting status today:

8 business hours

Closing:

Estimated turn time for new doc requests submitted to closing today:

8.00 business hours

HUD-1 Pre-approval:

Estimated turn time: 4-6 business hours

Funding:

Table/Wet Funding Loans: Closing doc request must be submitted and accepted 16 business hours before requested fund date. All PTF-UW conditions must be uploaded in Nile by 9:00 AM MT the day of funding or funding could roll to the next business day. PTF-HUD conditions must be cleared by 1 PM MT or funding cannot be guaranteed based on warehouse cutoff times.

Non-Table/Dry Funding Loans: Closing package must be received the day before requested fund date. All PTF-UW conditions must be uploaded in by 9:00 AM MT the day of funding or funding could roll to the next business day. All other PTF conditions must be received by 11:30 AM MT the day of funding or funding could roll to the next business day.



Other tools and strategies to get your offer accepted: All cash buyers can refinance without waiting six months, terms and loan to value depending on product, property, FICO, occupancy type, loan amount… terms and conditions vary Caroline Gerardo 23041 SW Birch Newport Beach, California 92660 Mortgage Banker NMLS 324982 (949)784-9699

2/25/2013

Disparate Impact to benefit the Suits?

Caroline Gerardo NMLS # 324982

Newport Beach, California

Mortgage Banker

cell phone: (949)784.9699

The Mortgage Bankers Association released their report February 21, 2013 showing mortgage delinquencies are at their lowest levels since 2008.

Nationwide we have hit the “turn around” point.

The Mortgage Bankers Bureau has acknowledged several areas of concern regarding the Qualified Mortgage rule and potential negative impact on the access to and availability of mortgage credit to certain consumers.

The Bureau is asking mortgage brokers and bankers to apply pressure under the Dodd/Frank Act and consider an extension to the effective date for the Qualified Mortgage for further analysis of the loans originated today and how originators are currently determining consumers ability to repay.

On February 8 2013, HUD issued a final rule authorizing so-called “disparate impact” or “effects test” claims under the Fair Housing Act. The final ruling spells out the details for private or governmental plaintiffs challenging housing or mortgage lending practices that have a “disparate impact” on protected classes of individuals. This will open the door to lawsuits even if the practice is in reality neutral and non-discriminatory and there is no evidence that the practice was motivated by a discriminatory intent. In other words, any protected class could file suit claiming under this rule that they were treated unfairly or over charged whether if it is true or not. The rule also will allow challenges based on claims that the practice improperly creates, increases, reinforces, or perpetuates segregated housing patterns.

This month HUD nailed down a three-step burden-shifting approach to determine liability under a disparate impact claim. Once a practice has been shown by the plaintiff to have a disparate impact on a protected class, the final rule states that the defendant would have the burden of showing that the challenged practice “is necessary to achieve one or more substantial, legitimate, nondiscriminatory interests of the respondent . . . or defendant . . . . A legally sufficient justification must be supported by evidence and may not be hypothetical or speculative” Defendants shoulder the burden of proof that the challenged practice “has a necessary and manifest relationship to one or more legitimate, nondiscriminatory interests.”

HUD explained in the rule’s preamble that, although it declined to use the term “business necessity” in the second prong of the disparate impact analysis, the phrase “substantial, legitimate, nondiscriminatory interest” is “equivalent to the ‘business necessity’ standard found in the Joint Policy Statement. The standard set forth in this rule is not to be interpreted as a more lenient standard than ‘business necessity.’” HUD also highlighted the removal of the word “manifest,” which was replaced by the language “a legally sufficient justification must be supported by evidence and may not be hypothetical or speculative.” HUD noted that the revised language is “intended to convey that defendants and respondents . . . must be able to prove with evidence the substantial, legitimate, nondiscriminatory interest supporting the challenged practice and the necessity of the challenged practice to achieve that interest.”

Regarding the discriminatory alternative prong, HUD clarified that the alternative must also serve the specified interest supporting the challenge. However, HUD declined to specify in the rule that the less discriminatory alternative must be “equally effective” as the challenged policy – which would have made the rule consistent with the legal standard set forth in the Supreme Court case Wards Cove Packing Co. v. Atonio, 490 U.S. 642 (1989).

The final ruling also itemizes these points:

HUD’s decision not to address comments raising objections to the rule based on the fact that the disparate impact standard is inconsistent with that set forth in Smith v. City of Jackson Miss., 544 U.S. 228 (2005) and Wards Cove.

HUD’s statement that the rule applies to pending and future cases because it is not a change in HUD’s position but rather a formal interpretation of the Fair Housing Act that clarifies the appropriate standards for proving a violation under an effects theory. HUD also chose not to conduct a cost/benefit analysis on this basis.

HUD’s clarification that the Fair Housing Act provides in these cases awards of damages, both actual and punitive. This means huge dollar lawsuits and the “suits” not consumers most always reap the benefits in legal fees.

Changes in the language in the regulation stating that unlawful discriminatory conduct under the Fair Housing Act includes “servicing of loans or other financial assistance with respect to dwellings in a manner that discriminates, or servicing loans or other financial assistance which are secured by residential real estate in a manner that discriminates, or providing such loans or financial assistance with other terms or conditions that discriminate” on a prohibited basis.

Language in the preamble restating HUD’s position that the Fair Housing Act applies to homeowner’s insurance.

This is interesting and I wonder if we will see insurance corporations catch what this could cost. Landlords will also be subject to this rule. How can a small landlord measure and report what quota of a protected class they rented to? Mortgage companies will provide statistical information on loans denied and fees charged measuring against these protected groups ( by racial group, religious affiliation, marital status, gay and lesbians?) Mortgage originators, insurance companies and insurance companies don't track all aspects of "protected groups." This opens up a dumpster of lawsuits to be poured into our court system. HUD failed to define the groups and nail down how to verify if a person was discriminated against. Does this mean a small individual landlord must rent his unit to a person with bad credit who also is a person of color?

What do you think?

Mortgage Lending for Investors

Mortgage Lending today feels like a mountain to climb.
Let me make it easy for you to close a home loan.
Here are a number of things Caroline Gerardo at W J Bradley Mortgage Capital can do that
makes me different than your bank or your mortgage broker.

Conventional Jumbo and Super Jumbo Purchase and Refinance

Investor purchase and refinance quickly. Purchase and close in fifteen days.Refinance and close in thirty days.

5-10 Financed Properties for Investors

Cash out Refinance for Investors who bought REO foreclosures and distressed properties in the past six months, no seasoning required to get the appropriate ( loan to value per guidelines) cash back return on investment when investor is holding property, even short term hold to flip

Quick response any time you need

Purchases close in 15 days – no bank slow boat to nowhere

Refinance close in 29 days

Credit repair referrals and free tips to raise FICO

Construction experience, eye for curbside appeal, analytical view of real estate investment.

2/22/2013

Laguna Beach Community Garden

windmill used to scare birds for organic gardening

Tiny scarecrow made of corn husks

The use of the South Laguna Beach Garden Park property was graciously donated by the current property owner, but recently the land has been put on the market for a list price of $ 1,200,000.00

The South Laguna Beach Civic association is trying to raise funds to purchase the land. Owning the property will preserve the Garden Park for future generations. This community garden is a gathering place for neighbors. There are thousands of community gardens across the United States. They can provide organic produce, open space to enjoy and have neighbors work together. A fundraising program is underway to buy the land.

Tax deductible contributions can be made through

Charitable Ventures of Orange County, fiscal sponsor

Christmas ornaments used in photograph to keep birds from harvesting the vegetables

31616 Coast Hwy
Laguna Beach, CA 92651

Lot for sale, Lot size .28 acres Commercial Orange County, California MLS ID S706186

The lot is expensive because it is situated on Coast Highway in a heavy traffic location that is visible. The highest and best use of the lot is probably commericial. The lot has peek a boo ocean views

tax deductible contributions to:

South Laguna Civic Association

PO Box 9668 South Laguna, CA 92652

Write your check out to: “CVOC/South Laguna Community Garden Park”

Charitable Ventures Orange County (CVOC) is a fiscal sponsor for the South Laguna Community Garden Park Project

Would Laguna Beach Community Garden be able to qualilfy for a mortgage to purchase the land?
Probably not a conventional loan, but maybe some benefactor might consider this.

Caroline Gerardo
NMLS#324982
W J Bradley Mortgage Capital LLC
Newport Beach, California

http://mywjb.com/caroline-gerardo

2/21/2013

Real Estate Investor

12 Tips for Real Estate Investors to Make Money

I can do Conventional FHA VA Jumbo and Super Jumbo, Hard Money, Purchase and Refinance

Foreclosure for Sale Flip

Buy foreclosures and distressed properties rehab and flip or repair and hold for the market to improve?

· 5-10 Financed Properties for Investors

· Understand Mortgage Underwriting and keep in contact with your lender. Having a lender that can do all kinds of loans, or knows where to refer you to the right source is valuable. If your credit is weak, I can give you tips to repair that or a referral to raise that FICO. Pricing on Mortgage Interest rates are driven by FICO

· Cash out Refinance for Investors who bought REO foreclosures and distressed properties in the past six months, no seasoning required to get the appropriate ( loan to value per guidelines) cash back return on investment when investor is holding property, even short term hold to flip

· Investors can get cash back by refinancing with me in the first six months. In this market sometimes you have to close with cash to get the deal.

· No bank overlays (extra requirements our government has on each bank that sells loans to Fannie and Freddie) Understand that Wells Fargo has different rules than J P Morgan Chase. Going to a bank is a middle man, just as most mortgage brokers are middle men. Go to a mortgage banker who is direct.

· Purchases close in 15 days if you have your paperwork all complete in advance of the offer– no bank slow boat to nowhere

· Make your offer in person with seven day appraisal contingency

· Refinance close in 29 days

· Assume in any foreclosure you purchase it will need a new water heater and HVAC. Be aware of local planning permit laws about strapping water heaters and wiring for HVAC. Knowing the rules is important because your plumber of installer may not. Don’t use a 24 hour water heater service that charges more for the instant repair. Shop for water heater by size of existing space and compare prices.

· Number one thing in purchasing investment property is the location. You can’t change or fix location. Check for blue ribbon schools in area, this is a great starting point for desirable location.

· If you are going to rehab and flip, assume everything will cost 30% more than you think. Save the extra paint, parts, and supplies as you will need these for repairs later and the next project. Have a general theme of your design project: a favorite paint combination that matches with your finishes. Keep design simple, so a variety of people can see themselves loving the property. Be aware of curbside appeal to buyers. Pencil out your costs, time line and keep to the schedule. You may have to actually go pick up your laborers/ contractors to work your schedule. It is a great idea to network with others and compile a list of a great: plumber, dry wall guy, painter, the local wholesale landscape grower etc…

· If you are deciding to hold the property, aim for a two year lease. It costs time and money to have vacancy. The types of finishes you choose for leasing a property should be durable and simple.

The market in California has seen gains of 7% - 10% of median price. Don’t fall in love with one property and overbid. Keep shopping and making fair offers. I’ve seen offers that state $100 over anyone else’s bid. This seems risky.
My website: http://mywjb.com/caroline-gerardo/

Quick response any time you need call me and let’s brain storm on how you can make more money as a smart real estate investor. Turn that house into a pot of gold. Photo shows an image of me taking this picture.

Caroline Gerardo

NMLS # 324982

(949) 784-9699 cell

2/04/2013

625 Seaview, Laguna Beach,

625 Seaview, Laguna Beach California

Recently reduced

$1,249,000.00 3 Bedroom

This home is graceful and warm. It feels like you are on a cobble stone street in the Cotswold’s or perhaps on the rugged coast of Ireland. However, you can walk to a hundred different places for dinner and enjoy paddle boarding or sunbathing at Laguna Beach’s amazing water. The yard is quite charming. On one side of the home is a shower for getting that sand off from the beach, and green gardens. The front arched gate can close you off from the hustle of life and feel private as a castle on the moors.

Offered by Julie Locke please contact her directly

(949) 407- 8565

Julie@fitzpatrickprince.com