DSCR Debt Service Ratio mortgage loans

A DSCR loan, or debt service coverage ratio loan, is a type of mortgage loan that is underwritten based on the cash flow from rent payments, rather than the borrower's ability to repay the loan. This makes DSCR loans a good option for real estate investors who do not have a lot of personal income. Some DSCR programs allow for moderate credit or FICO scores when they meet the other requirements. There are a variety of wholesale investors who purchase these loans. These are not hard money lenders. They are called Non QM lenders as the loans are not a Dodd Frank Qualified mortgage.

To qualify for a DSCR loan, the borrower must have a property that is generating enough income to cover the monthly mortgage payments, taxes, insurance, and any other associated costs. The lender will calculate the DSCR by dividing the monthly rent income by the monthly debt service. For example, if a property has a monthly rent income of $2,000 and a monthly debt service of $1,000, the DSCR would be 2.0.

DSCR loans typically have higher interest rates than traditional mortgages, but they can be a good option for investors who are unable to qualify for a traditional mortgage. DSCR loans can also be a good option for investors who want to purchase a property with a lower down payment.

Debt Service Ratio mortgage loans

Market rents determined and verified by lease agreement, deposit check at closing and the appraiser's rental survey which borrower pays for are used to compare against principle, interest, taxes, insurance. and HOA bills. Short term rental is not used. Interest only or Adjustable rate payment is adjusted to the full actual payment.

Here are some of the benefits of DSCR loans:

• They can be a good option for investors who do not have a lot of personal income.
• They can be used to purchase properties with only rents to cover the payments
• They can be a good option for investors who want to purchase properties in areas with high rental demand.
• They require less paperwork and headache.
• Long term thirty year loans are offered

Here are some of the drawbacks of DSCR loans:

• They typically have higher interest rates than traditional mortgages.
• They are ONLY for investment property not owner occupied.
• They may require the borrower to make a larger down payment.
• They may require reserves. Borrower has to show in checking, savings, and 60% of stock accounts enough liquid cash to cover ALL their bills for twelve or twenty four months. the amount of reserves is part of the interest rate available
• They are for a single borrower with lots of money but perhaps self employed tax returns that don't work for conventional loan types.

If you are considering a DSCR loan, it is important to speak with a qualified mortgage lender to determine if it is the right option for you. Feel free to call me 949- 784- 9699

This is not a commitment to lend

When you call please advise about:

property type, condition of property

property Class type

location, city, state

market rents

valuation/ sale price

how much cash you have in checking, savings, and stocks broken into different categories.

What you think your FICO score is

HOA Foreclosures and Liens

Homeowner Association Foreclosing

If you are delinquent on your Home Owner Association (also known as HOA) dues in California, the HOA must first offer you a chance to participate in dispute resolution. If you do not want to participate in dispute resolution, or if you are unable to reach an agreement with the HOA, the HOA can then record a lien on your property. The HOA must mail a notice of the lien to all record owners within ten days of recording the lien.

Here are some things to keep in mind if you are facing an HOA lien in California:

• You have the right to participate in dispute resolution with the HOA. This is an option if you believe that the HOA is mistaken about the amount of money you owe. You must provide written evidence in the form of cancelled checks you paid, credit card statements you paid, letters from HOA regarding monthly assessments, HOA legal fees, all correspondence. Create an excel sheet to show amounts due verses monthly payments. It might be useful to provide this information if lengthy a week before the meeting. Understand the HOA does not have to play Let's Make a Deal. You can have an attorney present. 
• You can also request to meet with the HOA board to discuss a payment plan. This may be a decent option if you are unable to pay the full amount of the lien immediately.
• If the HOA records a lien on your property, you will be responsible for paying the costs of recording the lien, legal costs, and interest. The amount will increase.
• The HOA can foreclose on your property if you do not pay the lien. Foreclosure can result in the loss of your home.

Before recording The HOA lien for delinquent assessments, the association has to offer and participate in dispute resolution under the association's "meet and confer" program. This does not mean they have to settle or accept any partial payments. They are just required to talk with you. (Cal. Civ. Code §§ 5900 to 5920, § 5660(e).) Under California law, you may also submit a request to meet with the board to discuss a payment plan. (Cal. Civ. Code § 5665.)

If you come up with a written agreement to catch up on the amounts due, the HOA records a lien on your property. (Cal. Civ. Code § 5675.) A notice must be mailed to all record owners no later than ten calendar days after recording. (Cal. Civ. Code § 5675(e).) This lien has to be paid if you sell or refinance. It grows with time.

The HOA can do a judicial or non judicial foreclosure. In California this is typically non judicial and faster. With a nonjudicial process, the foreclosure is subject to a 90-day right of redemption after the sale. (Cal. Civ. Code § 5715.) To redeem the property, you must pay all assessments in full, interest, attorneys' fees, and possibly the costs of repair. Order payoff and provide lump sum cashier's check or cash to the county recorder/accounting weekdays before the deadline. They are not open on weekends and holidays.  (See case Barry v. OC Residential Properties, LLC, 194 Cal.App.4th 861 (2011).)  https://casetext.com/case/barry-v-oc-residential-properties

With a judicial foreclosure the redemption period is: ninety days if the sale proceeds are sufficient to satisfy the debt (sale of property and costs exceeds the amounts owed). Or a year from sale closing date if the proceeds from the sale are insufficient to satisfy the delinquency. (Cal. Code Civ. Proc. § 729.030(a),(b).)

Your mortgage company might not be paid off. The HOA is in front of the mortgage even though they may have subordinated for you to get your loan.

this variety of pink Cerinthe or Honeywort reseeded from Purple Tear on my porch

ODTE Option Risks

 

ODTE options expire the same day they are purchased, and they offer traders the opportunity to make a quick profit or loss on the underlying security.

While 0DTE options can be a lucrative way to trade, they also carry a high degree of risk. This is because the trader has no time to react to changes in the market, and they can lose their entire investment if the underlying security moves against them.

In addition, the rise of 0DTE options has been linked to increased market volatility. This is because traders who are buying these options are typically doing so because they believe that the market is going to move in a big way. This can lead to a feedback loop, where traders' expectations of volatility lead to more volatility.

As a result of these risks, some experts are concerned that the rise of 0DTE options could pose a threat to market stability. They argue that if a large number of traders were to lose money on 0DTE options, it could trigger a sell-off that could destabilize the market.

However, others argue that the rise of 0DTE options is a sign of a healthy market. They argue that it allows traders to express their views on the market more freely, and that it can help to make the market more efficient.

Only time will tell whether the rise of 0DTE options will pose a threat to market stability. However, it is clear that this is a trend that is worth watching.

Here are some additional thoughts on the risks and potential benefits of 0DTE options:

Risks:

High risk of loss

Can lead to increased market volatility

Can be difficult to manage

Potential benefits:

Lucrative opportunities for traders

Allows traders to express their views on the market more freely

Can help to make the market more efficient

Draft 2

The rise of short-dated options, or options that expire within a few days, is a growing concern among market regulators and participants. These options are often used by traders to make quick profits on small price movements, but they can also magnify losses if the market moves against them.

In recent years, the daily notional volume of 0DTE options, which expire the same day they are traded, has surged to near $1 trillion. This is a significant increase from just a few years ago, when the daily notional volume of 0DTE options was only a few billion dollars.

The growth in 0DTE options trading has been driven by a number of factors, including the rise of online trading platforms, the increasing availability of margin lending, and the growing popularity of day trading. These factors have made it easier for traders to access and trade 0DTE options, which has contributed to the surge in volume.

The growth in 0DTE options trading has raised concerns among regulators and market participants about the potential for these options to destabilize the market. If a large number of 0DTE options expire in the money, it could force market makers to buy or sell large blocks of stock, which could lead to sharp price movements.

In addition, the high level of leverage used by many 0DTE traders means that even a small price movement can lead to large losses. This could lead to margin calls and forced liquidations, which could further destabilize the market.

Regulators are currently considering a number of measures to address the risks posed by 0DTE options trading. These measures include limiting the amount of leverage that can be used to trade 0DTE options, requiring traders to post additional margin, and restricting the types of 0DTE options that can be traded.

It is important to note that 0DTE options are a high-risk investment and should only be traded by experienced traders who understand the risks involved. If you are considering trading 0DTE options, it is important to do your research and understand the risks before you trade.

The rise of short-dated options, also known as 0DTE options, is a trend that has been gaining traction in recent years. These options expire at the end of the trading day, which means that they have a very short lifespan. This makes them a high-risk, high-reward investment, as traders can potentially make a lot of money if they are correct in their predictions, but they can also lose a lot of money if they are wrong. financial service companies, banks, mortgage lenders use these as hedge and make short term gains.

•  The rise of short-dated options threaten market stability.

• Daily notional volume of 0DTE options is near $1 trillion.
  Small banks in trouble.
  Are we headed for another Volmageddon?
  Increased instances of dynamics in derivatives markets bleeding into their underlying assets, as in stocks. 

• The main culprits in 2018 were exchange-traded funds designed to pay investors the inverse of equity volatility

There are a number of reasons why 0DTE options have become so popular. One reason is that they are relatively easy to trade. Unlike longer-dated options, which can be more complex to understand, 0DTE options are relatively straightforward. This makes them a good option for traders who are new to options trading.

Another reason for the popularity of 0DTE options is that they can be used to hedge against risk. For example, if a trader is worried that the market is going to go down, they can buy a put option, which gives them the right to sell the underlying security at a certain price. This can help to protect the trader from losses if the market does indeed go down.

However, 0DTE options also come with a number of risks. One of the biggest risks is that they are very volatile. This means that their prices can fluctuate wildly, which can make it difficult to predict how much money you will make or lose. Another risk is that 0DTE options are very illiquid, which means that it can be difficult to buy or sell them quickly. This can be a problem if the market suddenly moves against you and you need to get out of your position quickly.

Overall, 0DTE options are a high-risk, high-reward investment. They can be a good way to make a lot of money if you are correct in your predictions, but they can also lead to significant losses if you are wrong. It is important to understand the risks involved before trading 0DTE options.

The rise of 0DTE options has raised concerns about the stability of the market. Some experts believe that the increased use of these options could lead to a market crash. They argue that the large amount of leverage involved in 0DTE options could magnify losses if the market were to suddenly move against traders.

Other experts are more optimistic about the impact of 0DTE options. They argue that these options provide a valuable tool for traders to hedge against risk. They also point out that 0DTE options are only a small fraction of the overall options market.

It is still too early to say what the long-term impact of 0DTE options will be on the market. However, it is clear that these options are becoming increasingly popular. It is important for traders to understand the risks involved before trading 0DTE options.

Only time will tell whether the rise of 0DTE options will pose a threat to market stability. However, it is clear that this is a trend that is worth watching.

Here are some additional thoughts on the risks and potential benefits of 0DTE options:

Risks:

High risk of loss

Can lead to increased market volatility

Can be difficult to manage

Potential benefits:

Lucrative opportunities for traders

Allows traders to express their views on the market more freely

Can help to make the market more efficient

Accused of Violating Trade Secrets in Mortgage?

 

Lenders say rivals stole mortgage borrowers

Lawsuits where mortgage officers are accused of stealing or 

releasing confidential proprietary secrets.

Poaching of mortgage staff and all the drama in courts

Regarding recent lawsuits of lender/ bank/ mortgage company suing

Loan Officers over taking client lists, 1003, MISMO files, CRM downloads,

trade secrets, and pipeline reports when they leave a company.

Everyone in the mortgage business is in flux.

Millions of layoffs and many mortgage companies filed bankruptcy or 

lost their warehouse lines.

Here is my advice on uploading your client list into the new company

CRM.

First when you share your information with the new company and the

contract CRM service assume they will sell all the information and

share it to others. Add some bogies and your own personal contacts

to test the later actions.

"My ancient Goldmine list never gets uploaded to new company CRM. My customer list of emails, phone, birthdays and children's names belongs to me.
We are really only talking about new customer information.
When loan officer parts ways (in this mortgage environment a million people have been laid off and hundreds of companies BK) never download the 1003's/ or download MISMO files etc as Federal law reaches over this. All CRM platforms can be locked by the lender to prevent downloading. A lender who fails to lock out down-loads acts as if they do not value the list.

I own patents for loan operating software. Mortgage companies use the same tools, there is no secret sauce in LOS or hashtag#fintech software. All LOS operations are generally known. A software developer doesn't own coding language if their employer agreement says so... But we are not talking about software here it is about the names, phone numbers, emails that the lender can use to sell to lead generation companies, big aggregators, or their own future sales force."

C G Caroline Gerardo Barbeau

Warning to companies who have staff legal or pursue claims against Loan Officers, Loan Agents, Loan Consultants, licensed mortgage loan NMLS officers.

The plaintiff has to prove to the court that these are customer related trade secrets and the court like most people has no understanding of the loan process. Plaintiffs counsel has to prove there was theft, they have to show what a trade secret is under Federal laws and statutes. The secrets cannot be generally known. 

In my opinion the names, phone numbers and emails can be derived from MANY other sources: Meta, Linkedin, personal emails, and so forth. The plaintiff thinks that owning the contacts gives them financial benefit. It may in a few cases but generally the personal relationship is what drove the business. The plaintiff can and does sell the information to others and also distributes to employees to recapture leads and new business. 

Hmm the borrower mortgage client really ought to make a claim for privacy but they have no idea this occurs. Plaintiff filing could be responsible for both sides attorney fees and costs if not prepared.