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11/05/2013
Buy a Home with Little Down
10/30/2013
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.
10/29/2013
10/27/2013
Birdhouses
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| Bird nest birdhouse condo |
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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
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10/23/2013
Redlining
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]
[2] Federal Deposit Insurance Corporation. Policy
Statement on Discriminatory Lending. 59 Fed. Reg. 18267, Apr. 15, 1994.
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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. http://www.nhi.org/online/issues/139/redlining.html.
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Foreign National Mortgage
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| 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: http://www.irs.gov/Individuals/Individual-Taxpayer-Identification-Number-(ITIN)
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. |
10/22/2013
What is ECOA and Regulation B for Mortgage
• 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.
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[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. https://www.law.upenn.edu/journals/jlasc/articles/volume15/issue1/Cyr15U.Pa.J.L.&Soc.Change(2011)109.pdf
10/20/2013
80 Towsend Irvine Open House Today
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| 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)
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!
82汤森，加利福尼亚州尔湾
排房出售开放式的房子今天12:30-4:00
在消化道中的最低价格单位
价格出售
70汤森790000美元于2013年9月13日刚刚出售/关。
外国国家助学贷款！
两个华丽的故事在现在的单位招！
Caroline Gerardo (949) 637-8190 cell phone
10/15/2013
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
10/12/2013
Mortgage Rates Fall
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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.
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10/04/2013
Canadians Buying Real Estate
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| 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 daysbank 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 formsMore 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
http://www.irs.gov/Individuals/International-Taxpayers/Taxpayer-Identification-Numbers-(TIN).
•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
NMLS # 324982
(949) 637-8190 cell phone
10/01/2013
Government Closed no Mortgage
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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?
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:
a. CAIVRS
b. Appraisal Logging
c. Case Number Assignments
d. LDP/GSA
a. CAIVRS
b. Appraisal Logging
c. Case Number Assignments
d. LDP/GSA
·
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.
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9/29/2013
IRVINE OPEN HOUSE 176 Vintage
OPEN HOUSE TODAY SUNDAY September 29th 2013
176 Vintage, Irvine CA
12:00- 5:00
3 Bedroom 3 Bath Single Family home
$749000 sales price
Home loan: 20% down
$149800
30 Year Rate as of 9/29/2013 4.132 APR
/ 4.125% principle and
interest $3216.09
Property taxes monthly : $ 812.11
Fire insurance
monthly $ 99.98
Terms/ conditions apply, rates change daily FICO 749 owner occupied this is not a commitment to lend
Caroline Gerardo
NMLS #324982 phone: (949)
637-8190
9/27/2013
Mortgage Rates Improving!
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| Mortgage Rates Falling From Sunny Sky :) |
It feels like Fall here in Southern California and I thank God today for all my blessings. My children are working hard on their studies. I am beating the bushes for new business and old Borrowers to take a look at saving some money because mortgage rates have ticked down! Please call me to chat about perhaps refinancing out of your FHA loan with Mortgage Insurance MI or a loan with PMI because values have increased and you may be able to dump that expensive insurance.
C. G. (949) 637-8190 anytime from 7 AM to 7 PM NMLS 324982
Photograph of smoldering in Arizona - please be extra careful now that our hillsides are dry. Cut brush down away from your home. You know the drill.
Grand Canyon Photo from recent road trip
9/23/2013
Qualified Mortgage
More change is down the road. Wall Street still controls the mortgage market. The individual taxpayer receives no benefits from Wall Street. Dodd Frank is going to roll out more rules.
The big banks: J P Morgan Chase, Wells Fargo and Bank of
America have gotten larger in the past five years. Big banks close small numbers of home
loans. Rich bankers aren't out to offer help to consumers. Banks will move further away from the mortgage business as they are
forced to buy back bad loans and keep up with regulations.
The big banks charge the largest fees for a bounced check, some are instigating flat annual fees for your account and the highest student loan rates in centuries…
Don't get me started on the student loan industry -- it is a mess.
Dodd Frank regulation makes it more costly to run a bank business. The little guys are getting squeezed out. The independent local bank that offered a smorgasbord of financial products will struggle to keep up with all the Federal and State regulations. They will be bought out or closed.
1.
Qualified Mortgage for the consumer means:
IF you are self employed the little wiggle room at the high debt to income ratio loan is gone, the loan calculated on your twelve month’s deposits also gone and niche mortgage is going away. This is being debated as you read this and implemented January 2014.
IF you are self employed the little wiggle room at the high debt to income ratio loan is gone, the loan calculated on your twelve month’s deposits also gone and niche mortgage is going away. This is being debated as you read this and implemented January 2014.
IF a lender doesn't have enough money to buy back failed loans, they will be shut down.
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Don't be looking in your mailbox for a check ...
Caroline Gerardo
Mortgage Banker NMLS # 324982
(949) 637-8190 cell
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