A few weeks ago Barbara Desoer, Bank Of America's President of Mortgage Division, announced that B of A would close down their wholesale division. The wholesale division is the arm of the lenders that is dedicated to offer “wholesale” rates and service to the small/medium business owner. This primarily affects mortgage brokers, the very group of Mortgage Professionals that have often been blamed for the collapse of the banking system. In reality, and in today’s economic … [Read more...]

Due to market conditions and the declining home values, “cash-in” Refinances are becoming extremely popular. During the sub-prime years this type of loan would have never existed. The fact of the matter is that the financially savvy homeowner realizes that money market accounts, certificate of deposits, saving accounts, etc. are paying, in some case, 1% or less A YEAR, if not losing value. So it makes more sense to sink your savings into your home. Although there has been some … [Read more...]

Yesterday HUD Commissioner Stevens announced changes to the costs associated with obtaining an FHA loan that will affect all new case numbers initiated September 7th and beyond. The are some good news and some terrible news. The good news is that HUD has decided to reduce the Upfront Mortgage Insurance from 2.25% to 1.0% So, for example, on a loan amount of $250,000 under the current plan would require an addition to the closing costs, that can be financed by adding it to the … [Read more...]

This was a very eventful week in Washington. A 2,300 page bill passed both the senate and the house of representatives and is in line to be signed by the President in the near future. You may have also the reference to this bill as "Finreg",  "HR 4213" or the  "Dodd-Frank Bill". First and foremost I'd be lying if I said that I have read all 2,300 pages but what I have read are the parts that concern the home owner, home buyer, the mortgage business and the general effects . The … [Read more...]