Jeremy Drobeck's Blog

Jeremy's Blog

What's all the buz with this Obama Refi?

March 8th, 2009 10:32 PM

What's all the buz with this Obama Refi?

In early February Treasury Secretary Timothy Geithner & President Obama outlined a plan to help home owners looking to refinance & struggling to make there payments. On March 4th, the guidelines for these programs were release and are outlined below. Call me today to discuss all the details!

Home Purchase Tax Credit: $8,000 FREE Government money for 1st time buyers! Click Here For Details

Refinance Options: Dubbed an Obama Refi this program is designed for homeowners paying their mortgage on time who are unable to refinance due to the lack of equity in their home. (Refinance options outlined below are to be rolled out in 2 phases first in April, then in May 2009. Lenders are still working thru the details, therefor the programs are subject to change).

Benefits

Up to 105% LTV
Appraisal may not be required
NO PMI possible
Min. 580 Credit score
Loan must be held by Fannie Mae & Freddie Mac
Must income qualify

Pitfalls

No Interest only or stated income loans
Program doesn't roll out for another 2 months
Rates will be market rates (possible rate hits for high LTV's & low credit scores)
So sad to bad if your upside down by more than 5%
Investors may put additional restirictions in place
Fannie & Freddie loans only
No cash out. That's right Obama will not let you get cash out. The problem with that is that if you took out a second mortgage after you bought the home it can not be wrapped up into the loan. It needs to be paid off or subordinated (good luck getting a lender to subordinate this day in age).

There are many restrictions and loopholes. Call me today to discuss.

Modification Options: Designed for homeowners struggling to make their payments because of an interest rate increase or change in income.

First-lien loans on owner-occupied properties with unpaid principal balance up to $729,750.
All borrowers must fully document income
Incentives to lenders and servicer's to modify at risk borrowers who have not yet missed payments when the servicer determines that the borrower is at imminent risk of default.
Modifications can start from now until December 31, 2012; loans can be modified only once under the program.
The program will share with the lender/investor the cost of reductions in monthly payments from 38% DTI to 31% DTI.
Servicers that modify loans according to the guidelines will receive an upfront fee of $1,000 for each modification, plus "pay for success" fees on still-performing loans of $1,000 per year.
Homeowners who make their payments on time are eligible for up to $1,000 of principal reduction payments each year for up to five years.

The modifications guidelines are simply an outline. It is up to each servicer of the loan to decide if & how they will modify a loan. Have your customers call me today for some tips and pointers before they call the loan servicer. I will help give your customers an edge before calling.

BEWARE OF MODIFICATION SCAMES

HELP IS FREE!

CALL ME TODAY FOR A FREE CONSULTATION!

(269) 598-3975

1stclassmortgageservice.com

Posted by Jeremy Drobeck on March 8th, 2009 10:32 PMPost a Comment (0)

Is Your Loan Officer Licensed?

March 25th, 2009 10:33 PM

Please make a note: Michigan mortgage licensing is slated to go into effect April 1st, 2009. On Feb. 24 the commissioner sent out a letter that stated "I am very concerned with the low number of mortgage loan officer registration applications that have been submitted . . . " the letter goes on to say that they expected approx. 10,000 loan officers should be applying. As of the date of the letter less than 1,000 had submitted to the national licensing system and only 55 of those applicants had received formal approval. Scary!!!!! Don't worry I have my approval! (full letter)

Also, I thought I would try doing a survey and then sharing the results with you. - - SURVEY

Building A Referral Network
How to Reach Out to Those Around You

Everyone has heard the expression, "It's not what you know but who you know." Of course this isn't entirely true, but having a successful referral network can lead to a significant increase in satisfied clients with minimal effort on your part.

Have you ever gone into a large home improvement store, trying to find a certain item, only to come face-to-face with a wall of similar products? It can be overwhelming. Imagine if you had an expert right there to tell you what you need to know. Now imagine a team of experts throughout the store, all ready to assist you. This is what a successful referral network should be.

Choose Your Partners Wisely
It is important to select your referral partners carefully. When you recommend someone, your client is trusting your opinion. It only takes one bad experience to sour a relationship. On the other hand, a positive experience will stay in a person's mind and encourage them to return to you for additional advice. Be sure that you are confident about the quality of work your referral partner can provide.

Get To Know Your Network
It is easy to remember that Mr. Smith is a CPA or Ms. Taylor is a financial planner. But what is it that makes them stand out? It's helpful to sit down with other professionals and learn about their unique selling proposition. By taking the time to learn about their specialties, you will be able to provide a more qualified referral. You may also use this opportunity to identify how you work with clients and why your services are worth recommending.

Referral Karma
By teaming up with other professionals outside of your field, you are providing your clients with an extra level of service. Not only will they appreciate it, they will also remember you the next time they need a reliable source. In addition, your referral partners will keep you in mind when their clients are looking for a professional.

Please call me if you would like more information about building your referral network!

Posted by Jeremy Drobeck on March 25th, 2009 10:33 PMPost a Comment (0)

HUD makes moves that will prevent millions from refinancing

March 16th, 2009 12:19 PM

FHA/HUD Changes

In early February Treasury Secretary Timothy Geithner & President Obama outlined a plan to help home owners looking to refinance. Before those programs even went into effect HUD (FHA) another goverment agency announced changes that WILL PREVENT millions of home owners from refinancing.

Why???? - HUD says: "Given the continued deterioration in the housing market, and FHA’s need to limit its exposure to undue risk"

Details

Cash out refinances the maximum loan to value is changing from 95% to 85% LTV.
12 months seasoning now required

The Problem - When times were good homeowners all across the country took out home equity lines of credit. Many of those homeowners now would like to take advantage of the low interest rates available and roll their 1st & 2nd mortgages into one loan. However, even if they are not getting a check at closing the act of paying off a HELOC is consider "cashout" in the mortgage world. With home prices on the decline many people are going to be stuck around a 90 - 95% LTV. Come April 1st they will no longer be able to refinance and consolidate that home equity line. Please note: the "Obama Refi" does not allow "cashout" and will not help the many home owners in this situation.

Options -

CALL ME BEFORE April 1st, 2009
Subordinate the HELOC - IF we are able to convince the holder of that 2nd mortgage to subordinate, the transaction would not be considered "cashout" and we could go up to 98%.

My Gripe - I know many of you appreciate honesty. I wanted to throw in my 2 cents . . . . The feds roll out a program that is going to cost taxes payers millions of dollars. Ok. I can deal with that, the benefits out weigh the costs. People refinance, save $100's each month and then they go out and buy goods from local business. All and all a great boost to the economy. However, 2 weeks later the Feds announce that they are cutting back the maximum loan to value on FHA loans. The most widely used program. The changes in turn counteract all the good done over the past weeks.

Have your friends, family, & past customers call BEFORE 4/1/2009!

http://www.1stclassmortgageservice.com

Posted by Jeremy Drobeck on March 16th, 2009 12:19 PMPost a Comment (0)