A Loan With Jennifer

Friday, February 17, 2012

2012-02-21T12:58:00.000-06:00

My dear friends, so sorry to disappoint, but this week’s newsletter will be short and sweet.
Rates are below, and don’t forget to RSVP for our Snack and Learn, Wed, February 22 (if you haven’t already).
Topic: “Till Death Do Us Part”: Being informed of issues that can arise when your buyer/seller is divorcing.
Where: 520 Post Oak Blvd, Ste. 100 (First American Title Conference Center)
Time: 1:00 – 2:30

Stay dry this weekend!

RATES as of February 17, 2012 (UNCHANGED for the week)

The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 2.875% APR 3.189% 15 year ( fixed ) 3.750% APR 3.946%
15 year (fixed) 3.000% APR 3.217% 30 year ( fixed ) 4.375% APR 4.489%
30 year (fixed) 3.875% APR 4.000%
7/1 ARM 2.875% APR 3.199% 5/1 ARM 2.875% APR 3.229%
7/1 ARM 3.000% APR 3.243%
5/1 ARM 2.750% APR 3.198% 10/1 ARM 3.750% APR 3.669%

FHA call for quote (max loan $270,000) 5/5 ARM 3.125% APR 2.965%

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez & Team
Kenny, Brianna, Jason, and Jose
Patriot Bank Mortgage
NMLS# 514497

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Website: www.applywithpatriot.com

To opt out hit Reply and put Unsubscribe in the subject.

Information provided in this e-mail is intended as a tool for Real Estate Agents to be informed of the approximate rates available for home mortgages. It is intended for their sole use and p

Friday, February 10, 2012

2012-02-13T09:56:00.001-06:00

In case you have been hanging on edge to hear about my solo trip with a toddler and 6 year old (from last weeks letter)….So the way there, it was a breeze . The way back, let’s just say challenging may not be descriptive enough. Imagine getting a tired, screaming angel to sleep (finally) ½ way through a 4 hour flight, and 25 minutes later the other one has to ‘go’. So I had to wake up the baby, cram the 3 of us into the bathroom that by now every person on the plane had used, and while containing Pablo on one hip/arm…wiping the bottom of the other. In hindsight, I am laughing hysterically…but at the time I was ready for a tranquilizer.
Lending has similar challenges! We face them every day. My greatest challenge this week was explaining to a father wanting to cosign for his daughter that his 2 million dollars in the bank was not good enough, since he does not show the recurring monthly income to repay the loan. That was hard. I would rather have been on the plane with my kids.
The challenges of Greece, and the uncertainty looming whether the country can avoid a debt default, led investors to seek the safe haven of bonds, and mortgage backed securities once again. You will see that helped keep many rates unchanged or lower than last week . Recent reduction in Jobless Claims provides additional evidence the labor market is moving in the right direction.. which eventually could push rates up. But for now, the 30 day horizon looks relatively safe.
Lastly, I am sure you are wondering how the recent Obama plan to help homeowners refinance underwater mortgages or avoid foreclosure will play into the market. In my (personal) opinion it’s too early to tell. Past experience has told me that although it sounds ‘sexy’ in theory, the implementation will be another story. The details will unfold and you will be the first to know.
Enjoy another beautiful weekend!

RATES as of February 10, 2012 (UNCHANGED for the week)

The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.000% APR 3.315% 15 year ( fixed ) 3.750% APR 3.946%
15 year (fixed) 3.125% APR 3.343% 30 year ( fixed ) 4.375% APR 4.489%
30 year (fixed) 3.750% APR 3.874%
7/1 ARM 2.875% APR 3.250% 5/1 ARM 2.750% APR 3.246%
7/1 ARM 2.875% APR 3.236%
5/1 ARM 2.750% APR 3.260% 10/1 ARM 3.625% APR 3.628%

FHA call for quote (max loan $270,000) 5/5 ARM 3.125% APR 3.047%

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez & Team
Kenny, Brianna, Jason, and Jose
Patriot Bank Mortgage
NMLS# 514497

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Website: www.applywithpatriot.com

Friday, February 3

2012-02-03T16:45:00.001-06:00

I have been visualizing for WEEKS how I will handle my 2 kids solo on the airplane this weekend. You see, Diego, 6, is not the issue, he will just play his DS Plants vs. Zombies the entire trip to see Grandma in NJ. It’s the 18 month old, Pablo, that I am worried about. Not only have I bought him his own seat, but should I dare purchase one of those harnesses I see parents put their kids on? Although tempting, I won’t go that far, but this kid is beyond busy. He climbs on tables and furniture for a living. I am loading up on snacks, his favorite DVD’s, and praying he will just take a nap the entire way. Maybe some Benadryl…………………….

Facebook’s IPO is certainly consuming the markets. It’s much more interesting than the Fed Chairman’s talk about monetary easing, low fed funds rates until 2014, and certainly Greece. Who knows where rates will go, that is my answer. Enjoy it now, and yes, your clients should be buying now. Rates are truly lower than ever!!!!!!!

Compliance continues to be a big buzz word for lenders. So this will push up fees to the consumer, slowly but surely, as well as continued tightening of guidelines. Our investors we sell to are consistently hammering us on appraisals, paperwork, and outside the box scenarios. What this translates to is our underwriters, processors, and loan officers have to be thorough and accurate at all times with the client! Be rest assured that our loan team is always training, and perfecting our internal processes so that the transaction remains seamless to the client.

Speaking of team, I would like to commend mine! Brianna and Kenny are my 2 loan partner assistants, which equates to my right and left hand. Brianna takes all incoming lead calls, and helps me pre qualify clients in under an hour! Kenny is ‘contract to close’. He makes sure clients get the lowest rate once under contract, and that we meet deadlines! Nancy helps me with all my scheduling, email, calendar, and basically keeping me on track. They do an excellent job of creating raving fans of our clients, so that they refer us to our friends! And that translates to more referrals for you, the referring agent! We received 5 current client referrals this month, so 5 of our realtors had repeat business due to a positive transaction. I am currently looking to add another loan assistant, so if you know anyone with minimal mortgage experience, please have them contact me.

To find out more about how we can help you sell more houses….call me!

Have a great weekend…and GO GIANTS! (My parents are from Jersey)!

RATES as of February 3, 2012 (DOWN for the week)

The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.000% APR 3.315% 15 year ( fixed ) 3.625% APR 3.821%
15 year (fixed) 3.000% APR 3.217% 30 year ( fixed ) 4.375% APR 4.489%
30 year (fixed) 3.875% APR 4.000%
7/1 ARM 2.875% APR 3.243% 5/1 ARM 2.750% APR 3.238%
7/1 ARM 2.875% APR 3.229%
5/1 ARM 2.625% APR 3.208% 10/1 ARM 3.625% APR 3.623%

FHA call for quote (max loan $270,000) 5/5 ARM 3.125% APR 3.047%

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez & Team
Kenny, Brianna, Jason, and Jose
Patriot Bank Mortgage
NMLS# 514497

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Website: www.applywithpatriot.com

To opt out hit Reply and put Unsubscribe in the subject.

Information provided in this e-mail is intended as a tool for Real Estate Agents to be informed of the approximate rates available for home mortgages. It is intended for their sole use and purpose only and is not for distribution to the general public. Depending on the borrower's actual circumstances, such as credit, debt ratios, etc., rates may vary. Special niche products may also be available.

Friday, January 27

2012-01-27T16:49:00.001-06:00

The very good news is that our phones are ringing off the wall with new buyers! Our leads for January are up 58% (I have not counted refinance calls, only buyers). So that means our realtor friends are BUSY! Yea!!!!!! We are pre approving buyers instantaneously, so let’s say within an hour. Keep your referrals coming, and we are so appreciative! In addition, our closing times are still averaging 21 days. Please be sure to call us and confirm a quick close before the contract is finalized.

In the markets…………
Wednesday’s Fed announcement was favorable for mortgage rates. There were some major surprises in the forecasts, like “economic conditions will allow the fed funds rate to remain at low levels until 2014”. Wow, that is 2 years from now. Secondly, Fed Chief Bernanke suggested that Fed officials would like to see stronger economic growth, and they are open to the possibility of additional Fed easing (aka: the Fed would continue to purchase their own mortgage backed securities).
To sum it all up, for now, the rates are so very nice, and will fuel our economy this year as home sales continue to rise! It’s great to live in Houston TX!
Enjoy your weekend!

RATES as of January 27, 2012 (UNCHANGED for the week)

The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 2.875% APR 3.189% 15 year ( fixed ) 3.625% APR 3.821 %
15 year (fixed) 3.000% APR 3.217% 30 year ( fixed ) 4.375% APR 4.489%
30 year (fixed) 3.750% APR 3.874%
7/1 ARM 3.000% APR 3.318% 5/1 ARM 2.750% APR 3.259%
7/1 ARM 2.875% APR 3.246%
5/1 ARM 2.750% APR 3.272% 10/1 ARM 3.875% APR 3.792%

FHA call for quote (max loan $270,000) 5/5 ARM 3.000% APR 3.004%

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

Friday, January 6, 2012

2012-01-06T14:34:00.001-06:00

When a potential buyer or seller ask you WHY they should choose you as their realtor, do you have your ‘Elevator Speech’ ready and memorized? I have a few, depending on who my audience is: ‘We close accurately and on time’, or ‘our average close time is 21 days’, or ‘Our company is large enough to serve you, and small enough to know you’. TAR, November 2011, had a great article about this exact topic. They suggest that your pitch has the following : (a) State your business as a benefit (b) make a connection (c) ask a question (d) Rehearse, but don’t sound rehearsed and (e) shorter is better. Good luck!

Tell your buyers to hurry up and buy. That’s my opinion. Higher rates and home prices might just be here sooner than you think.

Today unemployment numbers were released, showing the addition of 200k jobs (more than expected). We are sitting on 2 quarters of positive job growth, some that our country has not seen in 3 years. Investors are holding onto cash (ex: Apple is rumored to have 800 billion in cash), as well as hedge fund managers, banks, etc. When they start to put those dollars to work in the economy, THAT is when the rates will rise. Jobs will be created, R&D will happen, companies will expand.

In Houston we are already seeing the seeds being planted for growth. The Houston Business Journal (Dec 16-22) cited the largest commercial deals of 2011. Wolff Co purchased an 18 acre tract in the Energy Corridor he has tried to purchase for 30 years. Our hotel occupancy rate was 2nd in the nation, next to Nashville (and double the national average). Exxon is building the new campus in the Woodlands. Shell renewed their lease for 25 years downtown, The Hess Tower sold for the highest price per sq foot in our city’s history……I could keep going. Just read the article! The take away here is growth, growth, and more growth. This will be positive for home sales no matter how you look at it. Even with higher rates, buyers will buy and sellers will sell. They always have!

Currently, the rates are being held low as investors worldwide are investing in US bonds. They are terrified of Europe, and China is the only true stable economy, but……….would you invest your money there? Exactly. So that leaves the U.S. Let’s enjoy it while we can.

Have a fabulous weekend!

RATES as of January 6, 2012 (UNCHANGED for the week)

The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 2.875% APR 3.189% 15 year ( fixed ) 3.750% APR 3.946 %
15 year (fixed) 3.250% APR 3.468% 30 year ( fixed ) 4.500% APR 4.615%
30 year (fixed) 3.875% APR 4.000%
7/1 ARM 3.000% APR 3.323% 5/1 ARM 3.000% APR 3.353%
7/1 ARM 3.000% APR 3.310%
5/1 ARM 2.750% APR 3.279% 10/1 ARM 3.875% APR 3.796%

FHA call for quote (max loan $270,000) 5/5 ARM 3.000% APR 3.004%

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

December 20, 2011

2012-01-03T14:03:00.000-06:00

So what does ‘Auld Lang Syne’ mean anyway? I am apparently one of the 85% of the people polled (by stv.tv- a Scottish broadcasting company) that don’t even have a clue. Did you know that they also polled that 74% of the people (I am assuming Scots were polled) that just mime the lyrics, because they have no idea? So I went to Google. It means literally “for the sake of old times”, and also could be interpreted as “old long ago”, or “old long since”. In the 1700s, when James Watson (1711) and later Robert Burns (1788) released the lyrics, they meant for the meaning to be a remembrance of the last year. Later, the British caught on, and it slowly migrated around the world with the British. In 1939, a Canadian band leader (Guy Lombardo) popularized the song for New Years Eve.

Let us remember the last year, and be grateful! As for myself, personally, I saved 33% of my income, I am 20 pounds lighter, and I competed in 2 triathlons (sprint). We did mourn the loss of 2 loved ones, but that also brought me closer to others, and for that I am grateful. Professionally, for what I am most grateful, is to have supportive friendships in our referral partners, that through their trusted endorsements, we were able to help 216 families purchase a home or refinance this year (up 13% from the year before).

We look forward to strengthening our friendships with you in 2012, and wish you and your family the most prosperous New Year!

Cheers!

RATES as of December 30, 2011 (DOWN for the week)

The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 2.875% APR 3.189% 15 year ( fixed ) 3.875% APR 4.072%
15 year (fixed) 3.125% APR 3.343% 30 year ( fixed ) 4.500% APR 4.615%
30 year (fixed) 3.750% APR 3.874%
7/1 ARM 3.000% APR 3.322% 5/1 ARM 3.125% APR 3.369%
7/1 ARM 3.500% APR 3.543%
5/1 ARM 2.750% APR 3.278% 10/1 ARM 3.750% APR 3.717%

FHA call for quote (max loan $270,000) 5/5 ARM 3.250% APR 3.091%

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Friday, December 9, 2011

2011-12-09T16:46:00.001-06:00

Another story this morning about a realtor that was robbed at an open house. A realtor told me this morning it is on HAR.com. It’s in addition to the story I sent last week. Be diligent guys, and stay safe. This is a great conversation piece for you with your sellers. Are open houses really worth the risk to everyone’s safety, as well as opening up their home to the public? Do open houses really sell homes? It’s a debatable topic.

So have you ever had a buyer under contract, and then find out at inspections that the unit was accidentally rented out (it’s a condo) to someone else? We did this week. A newbie tenant agent rented the wrong unit (our buyers under contract for sale). There were 2 units in the same complex for sale/lease. The tenant moved in, locks were changed, rents exchanged hands – for the other unit, but she moved into the wrong unit! What a tangled mess, but it was unraveled and all turned out fine. These things do happen! Not only do we need to focus on our safety, but on the details. It’s a busy time, and we are all stretched thin, so stay alert!

There was little reaction to the EU Summit this week. Investors really want to see a major new aid program for the European countries with debt problems (basically all except Germany!). It is believed that the EU debt crisis will be a major influence on US markets for some time. THE BIG STORY NEXT WEEK will be the Fed meeting on Tuesday, as investors are ‘hoping’ for hints of additional printing of money to boost the economy. Wait a minute! Isn’t that what got the EU into trouble?

Enjoy the weekend, stay warm, and be careful when you are out shopping.

RATES as of December 9, 2011 (DOWN for the week)

The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.000% APR 3.341% 15 year ( fixed ) 3.750% APR 3.959%
15 year (fixed) 3.250% APR 3.487% 30 year ( fixed ) 4.500% APR 4.622%
30 year (fixed) 3.875% APR 4.136%
7/1 ARM 3.000% APR 3.308% 5/1 ARM 3.250% APR 3.579%
7/1 ARM 3.625% APR 3.718%
10/1 ARM 3.875% APR 3.784%

FHA/VA call for quote (max loan $270,000) 5/5 ARM 3.250% APR 3.174%

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez & Team
Kenny, Brianna, Jason, and Jose
Patriot Bank Mortgage

November 18

2011-11-22T16:45:00.001-06:00

Oh what to write about on the eve of Thanksgiving week? Should I tell you about my pending trip tomorrow to Peru? No…I’ll wait until I return. Just envision me on the top of Machu Pichu, having taken my altitude sickness medicine, viewing the beautiful scenery and fabulous climate. My team will be here in Houston, no worries, slaving away, awaiting to pre approve your buyers. (smile)
The article in last Sunday’s Chronicle regarding the couple that walked away from their contract in West U because of paperwork….you recall the one? Everyone in the real estate community seems to be buzzing about it. As a lender that deals with this daily, I have mixed emotions about the article. Nancy Sarnoff did a great job of highlighting the topic, as it is a very valid subject. But can I put it lightly? Borrowers have to expose everything. I mean everything. IF there is a large deposit, yes, we need to know where it came from. Was it a loan you are required to repay? How do we know? You have to trail it of course. Canceled rent check? Maybe there is an issue about credit worthiness. There must have been a reason. In defense of lenders out there, including myself; We ask for documentation in the very beginning, it’s true. However, that documentation MANY times opens a Pandora’s box of other questions. Then we ask for more. Then that documentation produces other questions. Believe me, we don’t like asking. However, every client has a different situation, as well as record keeping habits. The maze of paperwork is unbelievable, yes.
Now in the defense of the unfortunate luck of the West U couple that walked away: Did the loan officer take a thorough application in the beginning, where some of this after the fact information could have been anticipated? Could be. Is all this paperwork nonsense the result of lenders lack of oversight in 2003-2007? Most definitely. In summary, Shouldn’t we always have asked these questions? Absolutely. SOLUTION: Your buyers (and sellers!) must get with a trusted lender (on your list!) EARLY in the process. Maybe this situation could have been avoided, had they done the paperwork BEFORE they were under contract. We still do see some buyers waiting until the last minute. They are usually in the upper end spectrum of the market. They assume that with high credit scores and a large down payment, they are bullet proof. That is the communication gap. Everyone has the same paperwork responsibility, everyone, regardless of credit and assets.
There will be no update next week, as we are off Friday after the holiday.
We on the Hernandez Team wish you and yours the happiest Thanksgiving!!!!!!!!

RATES as of November 18, 2011 (UNCHANGED for the week)

The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.250% APR 3.593% 15 year ( fixed ) 3.750% APR 3.959%
15 year (fixed) 3.375% APR 3.612% 30 year ( fixed ) 4.500% APR 4.622%
30 year (fixed) 3.950% APR 4.086%
7/1 ARM 3.125% APR 3.326% 5/1 ARM 3.375% APR 3.575%
7/1 ARM 3.750% APR 3.738%
10/1 ARM 4.000% APR 3.835%

FHA/VA call for quote (max loan $270,000) 5/5 ARM 3.375% APR 3.135%

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez & Team
Kenny, Brianna, Jason, and Jose
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Website: www.applywithpatriot.com

To opt out hit Reply and put Unsubscribe in the subject.

Information provided in this e-mail is intended as a tool for Real Estate Agents to be informed of the approximate rates available for home mortgages. It is intended for their sole use and purpose only and is not for distribution to the general public. Depending on the borrower's actual circumstances, such as credit, debt ratios, etc., rates may vary. Special niche products may also be available.

2011-11-07T16:03:00.001-06:00

There is a horrible rumor around that it takes 45-60 days to close a purchase loan. NOT WITH PATRIOT BANK it doesn’t! Our average close time is 24 days. Jumbo’s , its 30. We also update borrowers, and both realtors each Tuesday, we attend closing….should I go on? If we are not on your trusted referral list, let’s talk about changing that! We are your friends in real estate. We LOVE realtors and their clients, and our goal in every transaction is to create raving lifelong fans and repeat customers.
Rates ended lower this week, amid increased concerns about Europe. Investors flocked to bonds, pushing yields a bit lower.
That’s all for now…..its late on a Friday, and I have kids to snuggle with.
Enjoy this cool weather!

RATES as of November 4, 2011 (LOWER for the week)

The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.250% APR 3.593% 15 year ( fixed ) 3.750% APR 3.938%
15 year (fixed) 3.375% APR 3.592% 30 year ( fixed ) 4.500% APR 4.609%
30 year (fixed) 4.00% APR 4.124%
7/1 ARM 3.000% APR 3.233% 5/1 ARM 3.000% APR 3.238%
7/1 ARM 3.500% APR 3.447%
10/1 ARM 4.000% APR 3.803%

FHA/VA call for quote (max loan $270,000) 5/5 ARM 3.375% APR 3.300%

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez & Team
Kenny, Brianna, Jason, and Jose
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Website: www.applywithpatriot.com

To opt out hit Reply and put Unsubscribe in the subject.

Information provided in this e-mail is intended as a tool for Real Estate Agents to be informed of the approximate rates available for home mortgages. It is intended for their sole use and purpose only and is not for distribution to the general public. Depending on the borrower's actual circumstances, such as credit, debt ratios, etc., rates may vary. Special niche products may also be available.

Friday, October 17, 2011

2011-10-24T16:29:00.000-05:00

Each week I like to provide thought provoking questions, or relate the mortgage business to real life analogies. This week is the thought provoking question, having NOTHING to do with real estate: What will happen to all of our worlds water and air supply as the radiation fall out from the Japan nuclear plant collapse floats around the globe for hundreds of years? One of my clients is a scientist, and he said those particles, some of them, can last up to 1,000 years. Water is used for everything! Even buying organic…they need water to irrigate crops. And the problem seems to be worse than the governments of the world are leading on. I guess I'll think twice before visiting a sushi restaurant.

Interest Rates:
Volatile, volatile and more volatile. Catch them while you can. We are definitely not advising clients to float loan locks. We secure the rate immediately to protect them from rapid increases (that happen without notice!)

Appraisals:
Have you noticed the new 'language' in appraisals? They have now been reworked, so the format includes 'codes' (example: A1-6, or C1-5) for quality, materials used, location, just to name a few. They are not meant for a borrower, nor any person for that matter (except Fannie Mae's computer) to read. The codes are designed to have consistent variables when selling loans to Fannie later on. So don't be alarmed when you need a legend and a bucket of patience to read through one. This started October 1.

Underwriting Guidelines:
No major changes of late. Some of the PMI companies are allowing lower credit scores on loans. Down to 620 for a 5% down loan in some cases. This is encouraging for borrowers that don’t qualify for FHA.

There are some down payment alternatives <20% for Jumbo loans (over $417,000). Have your clients call us to find out more, or if they are eligible for the alternative options.

Enjoy this beautiful weekend!

RATES as of October 21, 2011 (UNCHANGED for the week)

The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.250% APR 3.593% 15 year ( fixed ) 4.125% APR 4.336%
15 year (fixed) 3.375% APR 3.612% 30 year ( fixed ) 4.625% APR 4.748%
30 year (fixed) 4.125% APR 4.262%
7/1 ARM 3.250% APR 3.278% 5/1 ARM 3.125% APR 3.429%
7/1 ARM 3.500% APR 3.572%
10/1 ARM 4.125% APR 3.880%

FHA/VA call for quote (max loan $270,000) 5/5 ARM 3.375% APR 3.300%

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez & Team
Kenny, Brianna, Jason
Patriot Bank Mortgage

Office: 713-337-8401
E-mail: jhernandez@patriotbankusa.com
Website: www.applywithpatriot.com

To opt out hit Reply and put Unsubscribe in the subject.

Information provided in this e-mail is intended as a tool for Real Estate Agents to be informed of the approximate rates available for home mortgages. It is intended for their sole use and purpose only and is not for distribution to the general public. Depending on the borrower's actual circumstances, such as credit, debt ratios, etc., rates may vary. Special niche products may also be available.

October 14, 2011

2011-10-17T09:28:00.001-05:00

There is just something wrong with Christmas decorations out on October 14! Town & Country and Highland Village both are way ahead of the game. I sure miss the days of Thanksgiving signaling the start of the holiday season. Probably a lot like borrowers miss the days of streamlined documentation. Yes those days are gone.

In the markets this week, RATES INCREASED almost 1/2% for the fixed rate products. When rates go up, markets move quickly!

Why did this happen?
• Investors grew more optimistic about US economic growth and less concerned about Europe this week. This helped the stock market rally. Investors moved their money from bonds to stocks, which increase the rates.
• September Retail Sales increased 1.1% from August, which was above the consensus forecast of 0.6%, signaling a stronger economy.
• In addition, the FOMC Minutes from the September 21 Fed meeting revealed that Fed officials expect the economy to avoid recession. Stronger growth is good for the economy, but it increases inflationary pressures, which is negative for mortgage rates.

It’s still a GREAT time to buy a house! Who can complain about a rate in the 4's?

Enjoy this beautiful weekend!

RATES as of October 14, 2011 (UNCHANGED for the week)

The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.250% APR 3.593% 15 year ( fixed ) 4.125% APR 4.336%
15 year (fixed) 3.375% APR 3.612% 30 year ( fixed ) 4.625% APR 4.748%
30 year (fixed) 4.125% APR 4.262%
7/1 ARM 3.250% APR 3.330% 5/1 ARM 3.125% APR 3.421%
7/1 ARM 3.500% APR 3.565%
10/1 ARM 4.125% APR 3.875%

FHA/VA call for quote (max loan $270,000) 5/5 ARM 3.375% APR 3.217%

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez & Team
Kenny, Brianna, Jason
Patriot Bank Mortgage

Office: 713-337-8401
E-mail: jhernandez@patriotbankusa.com
Website: www.applywithpatriot.com

To opt out hit Reply and put Unsubscribe in the subject.

Information provided in this e-mail is intended as a tool for Real Estate Agents to be informed of the approximate rates available for home mortgages. It is intended for their sole use and purpose only and is not for distribution to the general public. Depending on the borrower's actual circumstances, such as credit, debt ratios, etc., rates may vary. Special niche products may also be available.

September 30, 2011

2011-10-03T16:04:00.001-05:00

My 6 year old informed me he has a six pack. I did not need to go far to know where he heard that - his father, and or one of his adult TV shows. Not that it’s a bad word....just very adult sounding! It was rather funny too. But I still had to lecture my husband on TV etiquette for a 6 year old.

So why did rates rise this week? Market correction is the word on the street. This often happens when prices rise or fall rapidly as a result of the emotional roller coaster of investors from last weeks news. With little market news this week, there was time to focus on, well, nothing. And rates went up a bit. Also, some positive news in Europe made investor worry ease a bit. This also pushed rates up as investors once again sought the stock market.

But assure your buyers that it is still a great time to be buying a home!

That's all for this week - Enjoy the weekend!!!!!!!!!!!!!!!!!!!

RATES as of September 30, 2011 (UNCHANGED for the week)

The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.250% APR 3.593% 15 year ( fixed ) 3.875% APR 4.084%
15 year (fixed) 3.250% APR 3.487% 30 year ( fixed ) 4.375% APR 4.496%
30 year (fixed) 3.750% APR 3.884%
7/1 ARM 3.250% APR 3.305% 5/1 ARM 3.000% APR 3.347%
7/1 ARM 3.375% APR 3.481%
10/1 ARM 3.875% APR 3.698%

FHA/VA call for quote (max loan $270,000) 5/5 ARM 3.625% APR 3.223%

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez & Team
Kenny, Brianna, Jason
Patriot Bank Mortgage

Office: 713-337-8401
E-mail: jhernandez@patriotbankusa.com
Website: www.applywithpatriot.com

To opt out hit Reply and put Unsubscribe in the subject.

Information provided in this e-mail is intended as a tool for Real Estate Agents to be informed of the approximate rates available for home mortgages. It is intended for their sole use and purpose only and is not for distribution to the general public. Depending on the borrower's actual circumstances, such as credit, debt ratios, etc., rates may vary. Special niche products may also be available.

September 23, 2011

2011-09-26T10:19:00.000-05:00

So Friday night is movie night at my house, as well as sleep in mommy’s bed night for my 6 year old. He used to ask me all week if it was Friday yet! So last night, a Thursday, I was too tired to go upstairs, so offered a bonus night to Diego. He said ‘It’s ok Mommy, because I know tomorrow is movie night and I will sleep with you then’. When did this kid become so independent and not need as much snuggle? I have to say I was quite sad.

Clients need a lot more snuggling these days. It’s been a great change in the marketplace from internet lending (now only about 10% of mortgage applications), and good ole’ face to face contact. I have always believed that people would revert back to human contact. Don’t they want to know who they are doing business with?

So every human in America knows that rates are down this week. The Fed announced new measures to boost the economy. (1) They will begin to reinvest principal payments from its MBS (mortgage backed securities) into additional MBS (currently going into treasuries). (2) Operation Twist, as they call it, will extend the average maturity of the Fed’s portfolio by purchasing $400 billion of longer term Treasury securities and selling an equal amount of short term ones. (3) The Fed confirmed to the investors that there are ‘significant downside risks’ to the US economic outlook. Slower growth reduces inflationary pressures, which pushes down mortgage rates.

Interesting times ahead………if your clients want to purchase in the next 6 months, it may be a GREAT time to accelerate the moving process to take advantage of these rates. And by the end of the year, there are the property tax exemption benefits!

Enjoy the weekend, and as always, call us if you need us to pre approve a client!

RATES as of September 23, 2011 (DOWN for the week)

The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.125% APR 3.467% 15 year ( fixed ) 3.625% APR 3.833%
15 year (fixed) 3.250% APR 3.487% 30 year ( fixed ) 4.375% APR 4.496%
30 year (fixed) 3.875% APR 4.010%
7/1 ARM 3.125% APR 3.238% 5/1 ARM 3.125% APR 3.381%
7/1 ARM 3.500% APR 3.532%
10/1 ARM 3.875% APR 3.6928%

FHA/VA call for quote (max loan $270,000) 5/5 ARM 3.625% APR 3.223%

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez & Team
Kenny, Brianna, Jason
Patriot Bank Mortgage

Office: 713-337-8401
E-mail: jhernandez@patriotbankusa.com
Website: www.applywithpatriot.com

To opt out hit Reply and put Unsubscribe in the subject.

Information provided in this e-mail is intended as a tool for Real Estate Agents to be informed of the approximate rates available for home mortgages. It is intended for their sole use and purpose only and is not for distribution to the general public. Depending on the borrower's actual circumstances, such as credit, debt ratios, etc., rates may vary. Special niche products may also be available.

September 9, 2011

2011-09-09T16:46:00.000-05:00

Did you know that interest rates in Mexico are way into the double digits, like 30-40%, for homes and/or credit cards? So most people must pay cash, as borrowing is too punitive. Or that in many countries you can't even own your home- the government does. We take so many obvious liberties for granted. They are not freedoms for us anymore, they are expected. A way of life. This Sunday, September 11, let us remember and honor not only those that perished, but honor the living every day. The men and women who put themselves in harm’s way so that we may enjoy even the smallest freedoms.

I was quite impressed when I read the NAR magazine last month that Realtors have collectively donated 22 million dollars to relief efforts since 9/11. Hurricanes, tsunamis, and other major disasters, they have been there. You should be proud to be associated with such an active association. Get involved or stay involved, and keep contributing to your PAC. Because in years to come, you will need it. There is legislation on the rise in our industry from possible deletion of the mortgage tax deduction to the qualified residential mortgage that will affect realtors more than ever.

So changing the subject......Since April, the rates have come down almost .75%. On a $300,000 home, that is $90/month LOWER in monthly payment! Your buyers can qualify for more house than ever before! And while it seems that these low rates will be here forever, we need to be more realistic than that. In fact, one of the mortgage commentaries I subscribe to said this today; “with loan volume through the roof, and lenders barely able to handle current volumes, why would they offer better pricing?' That's a good point! In fact, from time to time we will see one of our investors have awesome pricing one day, only the next to shoot up, pricing themselves out of the market. It’s a basic strategy of curbing loan volume.

Current economic conditions look like, for the short term, rates should hold steady through the end of the year. Initial jobless claims were higher than expected, and Bernanke gave no warm fuzzies about the economy this week. He called the current situation dismal, offering no hope in sight. A total of 7 million people are collecting some type of unemployment. With news like this, bonds are sure to be popular for the near term as investors remain skittish about investing in the stock market.
That’s all I have, enjoy the weekend and this glorious weather.

RATES as of September 9, 2011 (UNCHANGED for the week)

The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.250% APR 3.593% 15 year ( fixed ) 3.875% APR 4.084%
15 year (fixed) 3.250% APR 3.487% 30 year ( fixed ) 4.500% APR 4.622%
30 year (fixed) 3.950% APR 4.086%
7/1 ARM 3.125% APR 3.223% 5/1 ARM 3.250% APR 3.408%
7/1 ARM 3.625% APR 3.577%
10/1 ARM 4.000% APR 3.761%

FHA/VA call for quote (max loan $270,000) 5/5 ARM 3.625% APR 3.223%

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000

August 26, 2011

2011-08-29T09:40:00.000-05:00

My heart goes out to the families and businesses on the East Coast that are about to be pounded by Irene. CNN Money's headline was that many are not covered with flood insurance. We in Houston know all about that where hurricanes are concerned. The uncertainty of the storm, and pending damages, concerned investors today. Can we handle yet another financial disaster? The markets were rampant this week with news that cancelled out low rates. We had highs, lows and ended the week slightly higher.

Some of the biggest reports are:
• Second Quarter GDP was revised lower from 1.3% to 1.0% (bad for economic recovery)
• Jobless Claims fell to the lowest level since Sept 08 (ditto)
• Fed Chief Bernanke gave no hint of any change in policy (investors were disappointed, hoping for looser monetary conditions)

All in all, we are enjoying the lowest rates in our country's history! Borrowers can afford more house than ever before for the mere fact rates are so low. In fact, we had a past client today say that her 'coworker' was off to sign an application for a 2.0% refinance. I had to LAUGH....there is absolutely no way that is 30 or 15 year fixed. Caution your clients against scams or advertising that sounds too good to be true. We have 3 new clients this week we are saving from 'other lender' disasters. Unkept promises, etc. In fact, one we are closing in 5 days!!!!! So just remember, we are your trusted friends in real estate!

Enjoy the weekend!

RATES as of August 26, 2011 (UNCHANGED for the week)

The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.250% APR 3.593% 15 year ( fixed ) 4.125% APR 4.336%
15 year (fixed) 3.250% APR 3.487% 30 year ( fixed ) 4.750% APR 4.874%
30 year (fixed) 4.125% APR 4.262%
7/1 ARM 3.125% APR 3.213% 5/1 ARM 3.250% APR 3.395%
7/1 ARM 3.625% APR 3.566%
10/1 ARM 4.125% APR 3.833%

FHA/VA call for quote (max loan $270,000) 5/5 ARM 3.625% APR 3.223%

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez & Team
Kenny, Brianna, Jason
Patriot Bank Mortgage

Office: 713-337-8401
E-mail: jhernandez@patriotbankusa.com
Website: www.applywithpatriot.com

August 12, 2011

2011-08-15T16:35:00.001-05:00

Yes, I survived the triathlon. Actually, I placed 829 out of 1300, which makes me rather proud for my first race. The run was brutal and I only stopped to drink a quick water. Had I stopped, I knew I may not get going again. So I endured. Sounds like our week at the office- we have not stopped. Rates are at an all time low. Buyers are executing contracts, others are refinancing. We are racing against time, as who knows if/when rates will go up? So we don’t stop.

This week was definitely one of the most ‘wild’ we have ever seen. Here’s what happened, and has kept rates low:
• Last Friday the S&P downgraded the US credit rating to AA (from AAA)
• European banks were at risk of failing, especially France, and this sent a scare to the markets
• Investors were then comforted by the STRONG demand of 3 and 5 year treasury notes. High demand means we are financing our debt, usually through foreign investment.
• Tuesday the FED announced they anticipate low fed funds for two more years, and that the economic growth will be ‘considerably lower’. Remember, the interest rates like bad news.

And this was all before Wednesday!

Enjoy the weekend. School starts for some next week….another race about to begin! Ready, set, GO!!!!!!!!!!!!!!!!!!!!!!!!!!!

RATES as of August 12, 2011 (DOWN for the week)

The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.250% APR 3.593% 15 year ( fixed ) 3.875% APR 4.084%
15 year (fixed) 3.250% APR 3.487% 30 year ( fixed ) 4.625% APR 4.748%
30 year (fixed) 4.000% APR 4.136%
7/1 ARM 3.250% APR 3.256% 5/1 ARM 3.625% APR 3.510%
7/1 ARM 4.000% APR 3.731%
10/1 ARM 4.125% APR 3.822%

FHA/VA call for quote (max loan $270,000) 5/5 ARM 3.625% APR 3.470%

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez & Team
Kenny, Brianna, Jason
Patriot Bank Mortgage

Office: 713-337-8401
E-mail: jhernandez@patriotbankusa.com
Website: www.applywithpatriot.com

July 25, 2011

2011-07-26T10:31:00.001-05:00

So my 1 year old Pablo is extremely frustrated. His Daddy put kiddie locks on all the cabinets, including the pantry. He has nothing to open and throw around! My little angel is no different than some homebuyers, just smaller problems! People get frustrated when they don’t understand, so I believe that my job as a professional is to bridge that gap. We do that on our team by constantly revising checklists, doing weekly status update calls to buyers and realtors, and asking the question to buyers frequently in the process: are we meeting your expectations? We hit it head on! We want happy homeowners! My challenge for you this week is to fine tune your processes to make sure that your clients’ frustration is identified early on and handled with ease. It’s a fun process.
In the markets, there was lots of rumble with news of the US increasing their debt ceiling with aid to help troubled European countries. As the perceived risk of default in Europe decreased, investors then retreated from bonds, raising rates a bit, but was later neutralized by the debt ceiling talks. This left us flat for the week on rates.
Recent low yields (rates) for the Treasury market and mortgage backed securities leaves investors concluding that the debt ceiling will rise before August 2. Rates could rise if the ceiling is simply lifted, but not addressed on how to meaningfully control it. If Congress does a good job at coming up with solutions, this could in turn cause rates to fall further. This is because a smaller government deficit would mean a reduced supply of treasury securities, meaning lower yields. Furthermore, less government spending would slow economic growth, reducing inflationary pressures.
I will leave you with a hint of what we are seeing as typical, the new ‘norm’. Buyers are coming to us earlier to make application (yea!) and therefore we can tackle any issues early on. Wether its credit or extra documentation needed, we are thankful to have the time to hit issues head on, and early. WE see this happen to the most unsuspecting of borrowers. So keep encouraging your buyers and sellers to get pre approved early! It really works!
So this Sunday Morning, at 5:30 a.m, if you have nothing else to do , tune in to my interview with Kim Davis (KPRC 2 ‘Beyond The Headlines’.
Enjoy the weekend!
RATES as of July 22, 2011 (FLAT (conv) TO HIGHER (Jumbo) FOR THE WEEK)
The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.250% APR 3.593% 15 year ( fixed ) 4.250% APR 4.462%
15 year (fixed) 3.750% APR 4.990% 30 year ( fixed ) 5.125% APR 5.251%
30 year (fixed) 4.500% APR 4.640%
7/1 ARM 3.500% APR 3.359% 5/1 ARM 3.375% APR 3.403%
7/1 ARM 4.000% APR 3.716%
10/1 ARM 4.250% APR 3.895%

FHA/VA call for quote (max loan $270,000) 5/5 ARM 3.625% APR 3.715%

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com

July 18, 2011

2011-07-19T10:57:00.000-05:00

Uncertainty……about life, love, the weather, you name it! This one word has so much power it is unbelievable. That is what drove markets this week. Instability in Europe and Fed comments about a still staggering economy drove investors to safer investments (i.e. the bond market). That makes prices higher due to increased demand, and the yields (or rates) lower. Yea! All I know is we just locked an FHA borrower at 4.375%!!! I almost fell out of my chair. What great news for borrowers that are buying houses!

Today is my son Pablo’s first birthday, so I must dash….Elmo , Big Bird and Cookie Monster are awaiting me.

Enjoy your weekend!

RATES as of July 15, 2011 (DOWN FOR THE WEEK)
The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.250% APR 3.593% 15 year ( fixed ) 4.125% APR 4.336%
15 year (fixed) 3.750% APR 4.990% 30 year ( fixed ) 5.000% APR 5.126%
30 year (fixed) 4.500% APR 4.640%
7/1 ARM 3.500% APR 3.359% 5/1 ARM 3.375% APR 3.403%
7/1 ARM 4.000% APR 3.716%
10/1 ARM 4.125% APR 3.812%

FHA/VA call for quote (max loan $270,000) 5/5 ARM 3.625% APR 3.715%

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com

Friday, July 1

2011-07-06T16:48:00.001-05:00

This week I had to write my sister’s obituary. My sweet Lori was 43, and was fighting cancer for 5 years. My comfort is to know she is resting now. So as I sat down to write this obituary…..what would I say? How could I express in a condensed manner the way in which she touched all of our lives? So that exercise led me to ponder my own mortality, and what would my obituary look like? That led to, of course, questioning how I am living my life.
The life lesson I would love to share with you this long holiday weekend is this: How do you want to be remembered? Are you conducting yourself personally and professionally in the manner in which want to? How do you treat others? How do they treat you? Do you surround yourself with those persons that reflect how you want to live your life? Are you spending enough time with your family?
No market news this week (but rates are listed below). I am not sure why they went up or down, they just happened! Know that we at Patriot remain your friend in real estate, and are a team you can count on to treat your clients with respect, courtesy, and the utmost professionalism. We look forward to earning your business if we have not already.
We wish you the most safe and joyous holiday weekend!

RATES as of July 1, 2011 (UP FOR THE WEEK)
The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.375% APR 3.719% 15 year ( fixed ) 4.750% APR 4.922%
15 year (fixed) 3.875% APR 4.116% 30 year ( fixed ) 5.375% APR 5.503%
30 year (fixed) 4.750% APR 4.922%
7/1 ARM 3.875% APR 3.534% 5/1 ARM 3.750% APR 3.532%
7/1 ARM 4.250% APR 3.833%
10/1 ARM 4.875% APR 4.296%

FHA/VA call for quote (max loan $270,000) 5/5 ARM 3.250% APR 3.582%

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com

June 20, 2011

2011-06-20T13:37:00.001-05:00

This morning our home media company came out. Jack from At Home Media. They are GREAT. My husband and I are not exactly tech savvy. Well, I am decent, but Fernando is still in the 20th Century. We trust Jack implicitly. We don’t' doubt him ever- he is the expert! The company came as a trusted referral, so I never questioned. And my experience with them has been top notch, always. So what about the referrals your buyers get? How much do they trust your endorsement? How many times have you referred, and they don't listen, only for the deal to go bad? It’s so hard not to say 'I told you so', even though I know we think it. So when you refer, refer with GUSTO! Let them know exactly why they need to use that person(s). Our experience has been that the stronger the referral, the more pleasant the transaction. Why is that? It’s about trust. Be sure your clients TRUST your recommendations. I guarantee you, the transaction will go smoother.

Is roof repair on some HAR checklist? All joking aside...we have seen a lot of roof repair amendments. Some offered, some mandated. The point is, there are some simple strategies that lenders (or at least Patriot) love to see, to make the transaction smoother! A simple sentence saying ' Roof to be replaced (NOT REPAIRED!) by seller. Period. Then we can escrow for it! The minute the word repair hits the contract, the appraiser has to address it, and it has to be a funding condition. But if it is replacement, we can, for example, do an escrow holdback from seller’s funds at closing! It’s that simple. If you ever need assistance writing such verbiage BEFORE the contract is accepted, we are happy to help! Just call.

This week we had an appraisal come in low that had the sale price 4k higher than the original list price, with a large 6 k seller concession. Just a hint for realtors..........beware when accepting any offer ABOVE the list price with seller concessions to buyers closing costs. Lenders don't like it at all, and those are usually the deals that coincidentally don't appraise.

A realtor commented to me this week that she had a very busy 1st Qtr (yea!), and that every single listing that was priced right, and in good condition/repair had multiple offers. In several market areas, not just one. That is great news!!!!!!!!!!

Interest rates are, well, still awesome! A great time to be buying a home in Houston, TX !

Enjoy the weekend!

RATES as of June 17, 2011 (UNCHANGED FOR THE WEEK)
The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.250% APR 3.593% 15 year ( fixed ) 4.250% APR 4.462%
15 year (fixed) 3.750% APR 3.990% 30 year ( fixed ) 5.000% APR 5.126%
30 year (fixed) 4.500% APR 4.640%
7/1 ARM 3.500% APR 3.351% 5/1 ARM 3.375% APR 3.393%
7/1 ARM 3.875% APR 3.647%
10/1 ARM 4.250% APR 4.3886%

FHA/VA call for quote (max loan $270,000) 5/5 ARM 3.250% APR 3.582%

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com

June 6, 2011

2011-06-08T10:52:00.000-05:00

My husband Fernando used to hear me making fun of him for his 2 hour workouts. Where did he ever find the time??????? Well now I am doing them! We compete in a couple’s triathlon in July (my first one!) and training is hard stuff! Now I have learned it’s all a matter of priority. You make time. The same in our business! We have to make time for the things that are important. Have you revisited your priorities lately? Reworked your time block/time management? It requires hyperfocus, and I challenge you to do it this weekend! I am reworking mine.

There was an article in the Chronicle this week about rates going up. Well we know that....we have said that for the last year! Yet they are still low. But really folks, they will go up, and when they do, it will be fast. Just encourage your clients to lock in sooner than later, don’t delay once under contract. Lock in that rate!

This week there was a MAJOR letdown in the jobs market. Analysts expected 170,000 added jobs, and it came in at 54,000. That was a blow. The bond market saw prices soar (which normally would have lowered rates, but they stabilized as traders floated some positions and the effect today was close to flat. So not much to report other than enjoy things as they are! Buyers can continue to enjoy the low bond yields for now, and get into homes at historic lows!

Have a wonderful weekend, and as always let us know if we can assist with your buyers!

RATES as of June 3, 2011 (DOWN FOR THE WEEK)
The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.250% APR 3.593% 15 year ( fixed ) 4.500% APR 4.726%
15 year (fixed) 3.750% APR 3.990% 30 year ( fixed ) 5.375% APR 5.511%
30 year (fixed) 4.500% APR 4.640%
7/1 ARM 3.500% APR 3.351% 5/1 ARM 3.125% APR 3.311%
7/1 ARM 3.625% APR 3.535%
10/1 ARM 4.625% APR 4.137%

FHA/VA call for quote (max loan $270,000) 5/5 ARM 3.250% APR 3.663%

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com

May 31, 2011

2011-05-31T11:59:00.001-05:00

So really, there is only ONE THING to talk about these days…..How are rates so low ??????? Unbelievable. A 5/1 ARM at 3.0% ?

I had lunch today with a client who trades mortgage backed securities. Great conversation! We solved the world’s problems , of course. But we came up with the conclusion that the #1 reason is the government has kept the borrowing rate at 0% (low!) so that the banks have more incentive to lend and makeup for the losses they are facing in their mortgage portfolios. The margins they are making are incredible! It’s helping keep them capitalized so they don’t collapse. So that’s the answer.

Oh, and we can still guarantee closings in 21 days (for conforming/FHA- Jumbo is 30 days). Let us help you sell your homes!

So that’s it! I am off early to start the long weekend.

RATES as of May 27, 2011 (UNCHANGED FOR THE WEEK)
The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.375% APR 3.502% 15 year ( fixed ) 4.750% APR 4.892%
15 year (fixed) 3.750% APR 4.006% 30 year ( fixed ) 5.375% APR 5.477%
30 year (fixed) 4.625% APR 4.892%
7/1 ARM 3.500% APR 3.416% 5/1 ARM 3.000% APR 3.355%
7/1 ARM 3.875% APR 3.653%
10/1 ARM 4.500% APR 4.052%

FHA/VA call for quote (max loan $270,000) 5/5 ARM 3.500% APR 3.832%

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them

May 13, 2011

2011-05-16T09:55:00.000-05:00

So Pablo (10 months) has been thinking for the last 7 days that 4 am is wakie wakie time. WHAAAT? Doesn’t he know that is serious dreamtime? So for 45-60 minutes I rock, pat, sing, chant, hum, ANYTHING to get this kid to sleep. This while at the same time doing my self talk to keep my cool (“ Jennifer, he is a sweet , innocent baby. You have to TEACH him how to fall asleep and not wake up). Okay, okay. I have come up with a plan, and we are working on it. Dilute the bottle, a little more each night. Last night he slept 8 hours straight instead of 5. We are onto something!

Our buyers and sellers are no different than my precious Pablito! Whether a seasoned homeowner or first time, the market has changed. It is our responsibility as professionals to TEACH them and guide them through the process. Do you have a checklist for the beginning of a transaction letting them know the steps 1, 2, 3 ? Well, I just devised one for the financing side, and we mail to EVERY prospect within 24 hours of them calling. After 16 years of doing this, it finally hit me! Clients need a checklist! In fact, I think they crave one. Set yourself apart, and start developing one today!

Some Industry News………
Freddie Mac reported its first true net profit in almost two years, earning $676 million in the first quarter and not asking the taxpayer for more money. But Fannie reported at $6.5 billion loss for the quarter, and asked Treasury for $8.5 billion in taxpayer money. How could that be you ask? It ‘could be’ concluded that the difference rests in the amount of Countrywide business that Fannie bought in the past - CW was Fannie's best customer for several years, selling Fannie a variety of A-paper, alt-A, pay option ARMs, and other products. I bet that if you take Countrywide out of the equation, Fannie would show similar results to Freddie. But last year Fannie agreed to one lump sum from BofA to settle the bulk of buyback claims - good for BofA, bad for Fannie."

Some tips for prospective homeowners that have faced hard times:
You can finance another home in…….
• 2 years after a Short Sale and must put 20% down)
• 5 years after a Foreclosure
• 4 years after a Bankruptcy (2 years if FHA)
Have a wonderful weekend!

RATES as of May 6, 2011 (UNCHANGED FOR THE WEEK)
The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.375% APR 3.719% 15 year ( fixed ) 4.500% APR 4.753%
15 year (fixed) 3.875% APR 4.139% 30 year ( fixed ) 5.250% APR 5.377%
30 year (fixed) 4.625% APR 4.780%
7/1 ARM 3.750% APR 3.310% 5/1 ARM 3.250% APR 3.362%
7/1 ARM 3.750% APR 3.599%
10/1 ARM 4.500% APR 4.061%

FHA/VA call for quote (max loan $270,000) 5/5 ARM 3.500% APR 3.832%

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

April 29, 2011

2011-05-02T11:09:00.001-05:00

My mother is one of the greatest of all time. Every holiday, every occasion, we get cards, gifts, and hugs like clockwork. Never late, always on time. She is sentimental that way. So Easter morning, she asked me if the Easter Bunny came for her 2 only grandsons. Well……………I never found the time to put that whole charade together. All I could hear was gasping through the phone line. “Jennifer, don’t tell me you did not get them an Easter Basket! My baby (Diego, 5) will be horrified when his friends at school are bragging about what the EB brought them and he got nothing!” Boy did I feel bad. Later that day let’s just say the EB basket appeared and we all acted surprised. How could I have been so lame? The life lesson I learned here is that small details are important. Very important. My mother has it down packed. I felt very loved growing up knowing she was always there for me for the little details. She cared.

Let’s fast forward to your business. What ‘small’ things are you doing consistently, like clockwork in order to make your clients feel special? A handwritten note at introduction, a gift at closing, or delivering food the day of closing? There are dozens of things you could implement, consistently, that would enhance the transaction and make your clients feel special. Repeat referrals guaranteed. On the Hernandez Team (we are now 5!) we have a 9 step process that we implement from the time clients call us to post closing. Our everyday goal is to ensure we give raving fan service, so that we and the referring realtor get future referrals! And we genuinely care about our clients.

In the markets, the Federal Reserve made no change this week in the rates. As expected. Bernanke did allude to the fact that rate hikes are not far away, maybe in 2 meetings, and that we should not expect much continued government support. This means that no longer will the buy our own debt! This has been somewhat stabilizing the economy as the Fed has gobbled up our own treasuries when sold, where no other buyers have been standing in line. Since the mortgage crisis began in 2007, foreign investors have been hesitant to purchase our bonds. It’s a trust factor.

Jobless claims were unexpectedly higher this week at 429,000. This has done no favors for rates. The trend is that rates are edging higher. We continue to encourage our clients to lock and not ‘float’ rates, in order to reduce their exposure to rising interest rates.

Have a wonderful weekend, and Spring is finally here! Now if it would only rain………

RATES as of April 29, 2011 (DOWN FOR THE WEEK)
The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.500% APR 3.845% 15 year ( fixed ) 4.375% APR 4.587%
15 year (fixed) 3.875% APR 4.116% 30 year ( fixed ) 5.250% APR 5.377%
30 year (fixed) 4.750% APR 4.892%
7/1 ARM 3.750% APR 3.488% 5/1 ARM 3.500% APR 3.459%
7/1 ARM 3.875% APR 3.666%
10/1 ARM 4.625% APR 4.142%
5/5 ARM 3.500% APR 3.992%
FHA/VA call for quote (max loan $270,000)

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com

April 22, 2011

2011-04-26T10:17:00.000-05:00

Well, the day has come that I think I will actually buy an IPhone, and maybe even an IPad. After all, according to www.CnnMoney.com’s article today, I can buy a hotdog with it at a ball game (who would have thought?) http://money.cnn.com/2011/01/24/pf/end_of_credit_cards/index.htm

A thought provoking question was asked to me this week : “Why it is so difficult for borrowers that have money in the bank and perfect credit to be approved, while an FHA buyer that has a gift of 3.5% down payment and no cash reserves zips right through the system – and with a below par credit score at that?”.. I did not know what to say……. It’s true. Our society rewards those on the lower end, while making it difficult for those on the upper end of the scale. If it makes everyone feel better though, all of them have the same amount of paperwork.

Here is another thought provoker for you for the weekend: Our treasury (government) owns 70% of the US Treasury market right now (in bonds). Hmmmm. What will happen when they start selling them off as they announced last month they will begin doing every month little by little? You guessed it, rates will go up. So check out these rates below! The market is still great! Interest rates are low!

Jumbo money is getting better and better! We have a new credit union we can sell to that has 25% down to 4 million!!!!!!!!!!!! Wow. It’s a 5/5 ARM in the 3.5% range. Borrowers can keep their money working in the market, and have a low down, low interest loan!

Have a great weekend, and we look forward to your trusted mortgage referrals.

RATES as of April 22, 2011 (DOWN FOR THE WEEK)
The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.625% APR 3.970% 15 year ( fixed ) 4.750% APR 4.965%
15 year (fixed) 4.000% APR 4.242% 30 year ( fixed ) 5.375% APR 5.503%
30 year (fixed) 4.750% APR 4.892%
7/1 ARM 3.875% APR 3.549% 5/1 ARM 3.5.00% APR 3.460%
7/1 ARM 3.875% APR 3.666%
10/1 ARM 4.750% APR 4.225%
5/5 ARM 3.500% APR 4.072%
FHA/VA call for quote (max loan $270,000)

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

April 15

2011-04-20T09:51:00.001-05:00

My baby Pablo is almost walking at 9 months! No!!!!!! I am not ready for that yet. Off I go to Babies R Us in a complete frantic to purchase baby proofing items. Five years ago is a distant memory when I did this the last time. I'll catch on quick. The one thing I know for sure is that his walking is inevitable.

Also inevitable is that markets will change, the economy will rise and dip, and we will all have to pay our fair share of taxes, eventually! Speaking of taxes, we still have self employed clients that cannot grasp that we qualify on after expense income. "But I really make xxx, we just have a creative CPA" they say. That's great and all.....until they need to buy a home. Being tax time (don't forget April 18 this year!), we have been able to catch a few clients and show them the benefit of declaring more income so they can qualify!

What about these gas rates? It cost me $65 to fill my car this week. Wow........... The Fed says that inflation is still low, excluding food and essentials, but we all need those, right? So to me, that would mean there is inflation. What do I know?

This week the Fed's Hoening says the Fed should boost the Fed Funds Rate to 1% then pause before hiking to 2%. This sent markets looming. In addition, all eyes were on mortgage lenders this week, as bank regulators filed enforcement actions against the 5 largest banks and 9 others for "compliance failures and unsafe and unsound practices at these institutions." READ MORE: http://finance.fortune.cnn.com/2011/04/13/fed-says-it-will-fine-banks-for-foreclosure-mess/

The economy is swirling, that is for sure. The good news for Houston is we are still seeing lots of buyers, multiple offer situations, or stories of buyers not moving 'fast enough' to make an offer.

Remember we are your trusted source for mortgage financing and would love to work with your referrals! We are still closing transactions in under 21 days! Actually we just turned a Jumbo around in 10 days...really!!!!!

Enjoy the weekend!

RATES as of April 15, 2011 (DOWN FOR THE WEEK)
The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.500% APR 3.845% 15 year ( fixed ) 4.750% APR 4.965%
15 year (fixed) 4.125% APR 4.367% 30 year ( fixed ) 5.375% APR 5.503%
30 year (fixed) 4.875% APR 5.018%
7/1 ARM 3.750% APR 3.491% 5/1 ARM 3.875% APR 3.579%
7/1 ARM 4.375% APR 3.911%
10/1 ARM 4.750% APR 4.226%
5/5 ARM 3.500% APR 4.069%
FHA/VA call for quote (max loan $270,000)

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot

April 8, 2011

2011-04-11T09:31:00.000-05:00

Do you ever have moments where the world seems like its crashing in? Working mommy, loving wife, school board of directors, HOA treasurer, manager of 10, loan officer extraordinaire, counting 1500 calories a day, working out 5-6 times a week.....man it loads on! So I was having a pity party until......my bimonthly coaching call yesterday. Rick reminded me that when I am down, I need to look at my list of 200 things I am grateful for (like I had one....but that was homework). It’s true. I am so grateful for so many things, I just have to remind myself.

So why can't the government do that and have a balanced budget? For real estate, this would affect the closing of FHA and VA loans. Patriot Bank Mortgage has made a company decision to keep funding these loans. The only thing we still have to work out is not being able to receive IRS audited tax returns on all our clients (a mandate on loans from Fannie, Freddie and FHA). We will find a solution I am sure. But the bigger question is .....how can this really happen for an extended period of time? It can't. Something or someone will come in and save the day last minute, or at least soon after, to put all in its place. It’s the American way.

As for rates, the markets seemed flat this week after all the dust settled. Charlie Sheen is tweetering for cash, and the Middle East is still in turmoil.

Check out our Jumbo rates below! We have a 5/5 ARM (fixed for 5 years and then adjusts every 5 years) that only requires 25% down up to 4 million! Buyers can keep their cash in the market and put a minimum amount into the house at a rate below 4.0%! Now that is like free money.

Have a great weekend! Godspeed to my hubby Fernando who is competing in a triathlon in Galveston tomorrow!

RATES as of April 8, 2011 (UP FOR THE WEEK)
The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.750% APR 4.072% 15 year ( fixed ) 4.875% APR 5.079%
15 year (fixed) 4.250% APR 4.476% 30 year ( fixed ) 5.750% APR 5.874%
30 year (fixed) 5.000% APR 5.134%
7/1 ARM 4.000% APR 3.606% 5/1 ARM 3.875% APR 3.598%
7/1 ARM 4.375% APR 3.909%
10/1 ARM 4.750% APR 4.221%
5/5 ARM 3.750% APR 4.079%
FHA/VA call for quote (max loan $270,000)

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact

April 1, 2011 Do you know what QRM means?

2011-04-05T15:36:00.000-05:00

Do you know what QRM means? Being in real estate, we all should. It’s a topic that has been blown over and swept under the carpet of late by legislators, kind of like the tax to a property seller that was whirled up in the Medicare bill last year (Medicare = residential home sales?) I just don't get that logic. That's why I will never be President of the United States, among other reasons. The Frank Dodd bill that has gotten so much attention has a provision that must be passed by SIX (6) different agencies of the federal government. It says that if a lender/bank (or whomever) makes a mortgage loan that is NOT a Qualified Residential Mortgage (QRM) they have to have 5% of the loan amount in reserves for possible default of that loan. So what is a QRM? That is the big question. Rumors have flown around that all jumbos will not meet the criteria. So 5% of those loans will have to be in reserve. That would greatly affect a market that is making a comeback. FHA loans do not count. So they are safe. What we need to be concerned about is that it has been proposed (this week) that a QRM be the following: 20% down (purchase), or 25% equity (refinance). Housing ratio does not exceed 28% (currently we are seeing as high as 42%), and that there are NO 60 day lates on any credit at all in the last 2 years. So this means, that if you are purchasing above the FHA loan limit of $271,000- then you have to put 20% down. That is what it means, plain and simple. Once defined over the next weeks, there will be a comment period until June. Be sure to visit your HAR /TAR /NAR website and comment on how this will affect an already hurt industry. We have already gotten conservative, is this really needed? I could go on for hours. But get involved. Google QRM and read up, and make sure you let your voice be heard in the comment period. We have to fight guys. No one listens to mortgage lenders anymore, so it may be up to the realtors. Have a great weekend, and go sell some houses- we can do 5% down as of right this minute on all conforming loan amounts. We can even do 10% down to $650,000 and 15% down to $850,000. And I even have 25% down to 4 million. That’s' right, it’s not a typo. If you have a super jumbo client right now, he can keep his money working in the market, and get 25% down for a 5/5 ARM rate with a 3 in it! Call me for details. RATES as of April 1, 2011 (UNCHANGED FOR THE WEEK) The following assumptions apply: 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details) 1% Origination Fee Escrows Required (if no escrow, higher fees may apply) Purchase Transactions, Primary Residence (Refinances have different rates) 30 day closing Credit Score 740 + Debt to income ratio <=40% Full Documentation of Income/Assets Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*) 10 year (fixed) 3.625% APR 3.939% 15 year ( fixed ) 4.750% APR 4.952% 15 year (fixed) 4.250% APR 4.472% 30 year ( fixed ) 5.50% APR 5.622% 30 year (fixed) 4.875% APR 5.005% 7/1 ARM 3.875% APR 3.548% 5/1 ARM 3.750% APR 3.392% 7/1 ARM 4.000% APR 3.596% 10/1 ARM 4.750% APR 4.225% FHA/VA call for quote (max loan $270,000) We do originate loans below $200,000. These amounts are chosen to show the most favorable rates. For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote. Call for details! If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them! Jennifer Hernandez Vice President/Mortgage Consultant Patriot Bank Mortgage Office: 713-337-8400 E-mail: jennifer@patriotbankusa.com Blog: www.loanwithjennifer.blogspot.com To opt out hit Reply and put Unsubscribe in the subject. Information provided in this e-mail is intended as a tool for Real Estate Agents to be informed of the approximate rates available for home mortgages. It is intended for their sole use and purpose only and is not for distribution to the general public. Depending on the borrower's actual circumstances, such as credit, debt ratios, etc., rates may vary. Special niche products may also be available.

Friday, March 18

2011-03-21T13:04:00.000-05:00

The joys of Spring Break! I saved at least 10 minutes on my home commute this week! The impact of school vacation is just amazing. Summer here we come! Can't wait for that either!

This week I will talk in bullet points. I have some good 'news you can use', for several different topics:

Homepath Financing: Fannie Mae tags certain properties as 'eligible' for this program. It can ONLY be offered for those properties. There is no appraisal, no mortgage insurance, and you can put 3% down! (primary residence), and investors qualify too! The investors have to put 25% down, but they can have up to 10 properties financed! Yea!!!!! All properties are listed on MLS, but to do a more rapid search, you can visit http://www.homepath.com/ and do a search by zip code! I think there are 1,000 properties in Harris County alone! At Patriot Bank Mortgage, we can finance these properties in most cases (except when repairs included). Call us!

Condos - Attention to you listing agents! Did you know that your condo listing has to now be FHA approved to accept an FHA loan? We have to have the HOA submit documents to HUD in Denver, and the process takes 4-6 weeks currently. A marketing idea! You can approach a condo building, and have the HOA get the building approved, so that you get more listings! If your price range is $280,000 or below....you want to be sure FHA financing is available!

FHA- some lenders accepting 620 scores now. Recently the requirement went to 640, but we have some investors that will accept 620. There are a 'few' lenders out there advertising 580...but I don’t think many of those close. So beware.

FHA Mortgage Insurance Premiums will be going up again on April 18. Upfront premiums (affecting the loan amount) will stay the same. But the monthly will go up from its current .90% (of the loan amount) to 1.15% (if they put 5% down only 1.10%). On a $200,000 loan, that is an extra $41.66 a month. One more nail in the coffin for low income borrowers. They are the ones that can least afford upticks in the payment. But FHA has to pay for its losses in all the foreclosures somehow, right? Also, FHA/VA guidelines have recently become a bit more stringent on 2 year work history. Once again, be sure that your borrowers get pre approved early so we can anticipate any extra paperwork needed.

Jumbo Loans- We now have a 10/1 arm in the low 4's with no points! And also a 5/5 ARM (fixed for 5 years, then adjusts only ever 5 years (as opposed to 1 year). This could get some great rates for your borrowers. And ......qualify them for a lower house with the lower payment over a traditional 30 fixed! Call me if you have a scenario.

We love your referrals! So keep them coming. Have a great weekend!

RATES as of March 18, 2011 (DOWN FOR THE WEEK)
The following assumptions apply:
20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions, Primary Residence (Refinances have different rates)
30 day closing
Credit Score 740 +
Debt to income ratio <=40%
Full Documentation of Income/Assets

Conforming ($200,000* - $417,000)
Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.500% APR 4.107%
15 year ( fixed ) 4.750% APR 5.106%
15 year (fixed) 4.125% APR 4.551%
30 year ( fixed ) 5.375% APR 5.587%
30 year (fixed) 4.875% APR 5.126%
7/1 ARM 3.875% APR 3.640%
5/1 ARM 3.750% APR 3.631%
7/1 ARM 4.125% APR 3.868%
10/1 ARM 4.750% APR 4.308%
FHA/VA call for quote (max loan $270,000)

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates. For other

March 7

2011-03-07T10:00:00.001-06:00

As my Ipod is blaring to Dynamite by Taio Cruz (http://www.youtube.com/watch?v=VUjdiDeJ0xg ), I’m running my 4th mile in the neighborhood. I’m back in the game!!!!!!! Ten baby pounds lost so far, and 30 to go. My trainer at the gym has specific instructions to have no mercy. In fact we did stadium stairs last Tuesday. BRING IT ON!!!!!!!!!

Also back in the game is Houston,TX! As of late, each Monday, we have at least 1 client that lost a contract over the weekend because they did not (a) move fast enough or (b) were outbid. It’s becoming a normal thing again. For homes in top condition and priced right, they go fast (or if you are in Frostwood, like the one that had 13 offers a few weeks ago…..it was outdated from the original owner). Gone in a few days. A well respected mortgage newsletter we subscribe to had a headline this morning: ‘there are also many potential homebuyers who have been waiting on the sidelines to step in and purchase a home at still affordable rates and home prices. Waiting much longer could prove to be costly for those homebuyers, who will likely see both home prices and home loan rates move higher in the year ahead’.

The economy is getting back in gear as well, as we saw with this morning’s Jobless Claims Report on target with expectations, and Wednesday we saw an improving payroll number reported by ADP (the payroll processing company). Also the unemployment rate has declined the last 3 months in a row. So great news for the economy! But I hate to report, that is bad for bonds. Remember: the worse the news, the better the rates! As the economy recovers, so does love for the stock market. Investors feel like taking risk, kind of like the new girlfriend syndrome! And they buy,buy, buy. They take the money from the bond market, which pushes yields up in hope to attract those investors back. Or at least you can think of it that way…its easier logic than the more complicated answer (so I won’t bore you).

Watch out in the coming week for turmoil abroad. Baghdad unrest, rising oil prices…this market is a real doozie. All I know is, Houston is getting back into its zone, and it’s once again a great time to be a homeowner!

Enjoy the weekend! A great time to check out the Azalea Trail! http://www.riveroaksgardenclub.org/AzaleaTrail.cfm

RATES as of March 4, 2011 (UNCHANGED FOR THE WEEK)
The following assumptions apply:
20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions, Primary Residence (Refinances have different rates)
30 day closing
Credit Score 740 +
Debt to income ratio <=40%
Full Documentation of Income/Assets

Conforming ($200,000* - $417,000)
Jumbo ($417,001- $1,000,000*)
10 year (fixed) 3.750% APR 4.072%
15 year ( fixed ) 4.250% APR 4.443%
15 year (fixed) 4.250% APR 4.476%
30 year ( fixed ) 5.750% APR 5.870%
30 year (fixed) 5.000% APR 5.134%
7/1 ARM 4.250% APR 3.732%
5/1 ARM 4.000% APR 3.644%
7/1 ARM 4.250% APR 3.848%
10/1 ARM 5.150% APR 4.468%
FHA/VA call for quote (max loan $270,000)

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

Happy Valentines Day

2011-02-14T11:40:00.001-06:00

Where is the love this Valentine's Day? Today Obama released his plan to 'phase out' Fannie Mae and Freddie Mac. Below I will summarize some points for you, but you can read the article here: http://money.cnn.com/2011/02/11/news/companies/fannie_mae_freddie_mac_white_house_proposal/index.htm

By 2018, Fannie and Freddie are planned to be essentially gone. It’s hard to imagine what 'private equity' they expect to handle the trillion dollar market. Not to say change is not necessary, but I hope the extra money they are looking for will enter into our market. Will it be the Chinese or the Saudi's that close the gap on our market? Is that what kind of 'private' equity they are talking about? Will America be America anymore? I heard a foreign buyer is looking at buying the NYSE...seriously?

Back to Fannie Mae, there are some sentences in the above article that caused me to pause. Phrases like: "recommends requiring Fannie Mae and Freddie Mac to price their loan guarantees to the same standards as private banks". So...does that mean to charge higher yields? Private bank portfolio loans usually come at a cost. Hmmmmm.... With regulatory changes coming this April 1, the cost of loans is set to increase anyway (this is my opinion) with the increased cost to lenders. It will pass off to the borrowers.

Other phrases bothered me like: "Increasing down payment requirements in order to shrink Fannie and Freddie's portfolio". In other words, to phase them as market players over the next (couple) of years. That will really help dig us out of the recession.

"Increase premiums on FHA loans by .25%". Fact: they already have done that this year! The cost to borrowers for these low income loans has already increased about $20/mo on a $100,000 loan. That is a lot of money for many people. How again will this help support homeownership and encourage families to buy a home? Increase the cost? Will it be affordable?

Lots of questions left unanswered this week, I know. Sorry! I am just going to keep plugging along, implementing and improving my systems to WOW our clients and referral partners, and close as many transactions as I can! Today. One thing is for sure, there will be a mortgage market, there has to be! For the lucky son of a gun that gets creative and provides this 'private equity' Obama is talking about...more power to him. I'll be ready.

Enjoy the beautiful weekend!
BHBK (Big Hug Big Kiss) this Valentine's Day.

Jennifer

RATES as of February 11, 2011 (UP FOR THE WEEK)
The following assumptions apply:
20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions, Primary Residence (Refinances have different rates)
30 day closing
Credit Score 740 +
Debt to income ratio <=40%
Full Documentation of Income/Assets

Conforming ($200,000* - $417,000)
Jumbo ($417,001- $1,000,000*)
30 year (fixed) 5.125% APR 5.260%
30 year ( fixed ) 5.875% APR 5.997%
15 year (fixed) 4.375% APR 4.602%
15 year ( fixed ) 5.250% APR 5.425%
5/1 ARM 3.875% APR 3.625%
7/1 ARM 4.375% APR 3.935%
5/1 ARM 4.000% APR 3.654%
7/1 ARM 4.250% APR 3.857%
10/1 ARM 5.250% APR 4.652%
FHA/VA call for quote (max loan $270,000)

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Belated IRU

2011-02-11T13:33:00.000-06:00

This weeks’ note will be quick! My new assistant (5 year old Diego came with mommy to work today) and he just informed me that it’s time to go home…….
Rates are up for 3 days in a row! Why? Instability in Europe, most specifically there are fears of inflation as food and energy prices are increasing. The ECB yesterday said they are not going to rise the interest rates, but the markets aren’t going for it, as inflation seems to already be on the rise. So bond markets reacted.
On our home turf, there were mixed signals today, which isn’t good market news either. Only 36,000 jobs were created in January, while 148,000 were expected. Normally that would lower rates, but with news of increased hourly wages (up .4%) and unemployment claims down, it signaled to the markets that we are slowly but surely recovering.
Don’t let your buyers and sellers be discouraged by short term spikes in rates! We are still at historically low levels of interest rates. And, we live in one of the most prosperous cities in the country.

Have a safe and warm weekend, and remember, we can still close loans in 3 weeks or less!

RATES as of February 4, 2011 (UP .25% FOR THE WEEK)
The following assumptions apply:
• 20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
• 1% Origination Fee
• Escrows Required (if no escrow, higher fees may apply)
• Purchase Transactions, Primary Residence (Refinances have different rates)
• 30 day closing
• Credit Score 740 +
• Debt to income ratio <=40%
• Full Documentation of Income/Assets

Conforming ($200,000* - $417,000) Jumbo ($417,001- $1,000,000*)
30 year (fixed) 5.125% APR 5.258% 30 year ( fixed ) 5.875% APR 5.997%
15 year (fixed) 4.250% APR 4.476% 15 year ( fixed ) 5.125% APR 5.326%
5/1 ARM 3.625% APR 3.535%
7/1 ARM 4.000% APR 3.751% 5/1 ARM 3.625% APR 3.520%
7/1 ARM 4.000% APR 3.737%
10/1 ARM 5.250% APR 4.552%

FHA/VA call for quote (max loan $270,000)

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

The Bottom Line

2011-02-01T11:46:00.000-06:00

Just when I was taking a breath, and thought things were maintaining some 'normalcy'.........Fannie Mae and Freddie Mac made changes as of January 10 to their risk based pricing models. What does risk based pricing mean? That for certain loan levels (based mainly on credit score and loan to value) there is a risk factor involved. Well, they just went up. ALOT. Why the change? Well, to make up for losses on the loans they made that they should not have, of course.

Here is a summary of some changes (keep in mind these 'hits' can come in the form of % to the rate, or upfront fee). These are 'examples' only.

25% is the new 20%. If you have an 800 credit score, and put 20% down. HIT. Equivalent to about .125% in rate, or $625 on a $250K loan. Investors do not consider 20% down the 'best' anymore, is my takeaway.
740 is the new 720. If you have below a 740 score, there are some significant hits to the price, depending on the down payment. For example:
20% down, score 700-719 is approximately .50% rate hit, or $2500 fee upfront
Add an 80/10 (total 90) - add another .25% in rate (that would be on top of the already increased fee for a score <720)
10% down (one 90% loan), score below 680- a 1.0% hit to the rate, or a fee of $6,875 upfront.
Should I continue? The matrix is quite extensive.

The BOTTOM LINE is that your buyers and sellers need to be sure and get preapproved BEFORE they start shopping for homes. I have seen clients with 20 years of pristine credit, and a recent collection to Time Warner of $30 they disputed for a late fee , drops the score 100 points. Really. No joke. Also, we see 'errors' all the time. On the most qualified of borrowers.

Everyone's credit is suceptible to mistakes. Everyone's. The most VALID website to pull credit for borrowers is www.myfico.com. The score given here most resembles mortgage credit scores. We have seen Equifax, Experian and Trans Union vary more than 50 points in some cases. The scores they are 'selling' is not the same as a mortgage credit score. They are selling a generic product. A money maker. Please encourage your buyers to discuss this with a mortgage professional.

As always, we are here to assist you with your clients mortgage needs! Just give anyone on my team a call (Kenny, Brianna, Nancy or myself). We are here to serve you and ensure an ontime and accurate closing. Also, did I tell you we can still close in 21 days or less on a conforming or FHA transaction?

Enjoy the weekend!

Jennifer Hernandez

RATES as of January 28, 2011 (FLAT FOR THE WEEK)
The following assumptions apply:
20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions, Primary Residence (Refinances have different rates)
30 day closing
Credit Score 740 +
Debt to income ratio <=40%
Full Documentation of Income/Assets

Conforming ($200,000* - $417,000)
Jumbo ($417,001- $1,000,000*)
30 year (fixed) 4.875% APR 5.008%
30 year ( fixed ) 5.625% APR 5.746%
15 year (fixed) 4.250% APR 4.476%
15 year ( fixed ) 5.000% APR 5.201%
5/1 ARM 3.500% APR 3.300%
7/1 ARM 3.875% APR 3.532%
5/1 ARM 4.000% APR 3.643%
7/1 ARM 4.250% APR 3.848%
10/1 ARM 5.250% APR 4.552%
FHA/VA call for quote (max loan $270,000)

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com

Just How Lucky We Are.........

2011-01-21T14:38:00.000-06:00

Just How Lucky You Are..the book by Dr. Suess. I was reading it last night to my 5 year old, Diego. My thoughts exactly. We still are rather lucky to live in one of the most robust towns in the USA. Really lucky. Who cares about hot summers, or no mountains? I think Houston is beautiful, and has very down to earth, polite people (except when on 610 loop).

This week I heard something I hadn't in a while...." Do you have stated income loans?". I almost fell out of my chair. This first time homebuyer was repeating the question from her husband (self employed) as she talked to him on the cell phone. This was after I told them they did not qualify for the house they wanted, but in fact 40K lower. Have they been locked up for the last three years? She was born in the 80's. Maybe that explains it! (no offense to any readers that were)

Another volatile round of trading this week as mortgage rates are trying to push their way up. Currently, inflation fears around the globe are spooking the markets. Also the 10 year T-Bill auction (which most closely mirrors mortgage rates) was weak this time around. Rates are still relatively low...but about .50% higher than before the holidays.

Rates below 6.0% for the last several years on average? We even saw 30 fixed in the high 3's? Just how lucky we are.................................

Enjoy this chilly weekend, and remember, Patriot Bank Mortgage closes on time and accurately! We are closing purchases on average of 21 days. Consider us for your next mortgage referral!

Jennifer Hernandez

RATES as of January 21, 2011 (UP FOR THE WEEK)
The following assumptions apply:
20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions, Primary Residence (Refinances have different rates)
30 day closing
Credit Score 740 +
Debt to income ratio <=40%
Full Documentation of Income/Assets

Conforming ($200,000* - $417,000)
Jumbo ($417,001- $1,000,000*)
30 year (fixed) 4.875% APR 5.008%
30 year ( fixed ) 5.625% APR 5.746%
15 year (fixed) 4.250% APR 4.476%
15 year ( fixed ) 5.000% APR 5.201%
5/1 ARM 3.500% APR 3.316%
7/1 ARM 3.875% APR 3.548%
5/1 ARM 4.000% APR 3.645%
7/1 ARM 4.250% APR 3.850%
10/1 ARM 5.250% APR 4.554%
FHA/VA call for quote (max loan $270,000)

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com

The Name of the Game

2011-01-18T09:38:00.001-06:00

Nothing like starting the year off with a bang. The economic data releases are in full swing. This week, we have seen lots of data that once again that volatility is the name of the game. At the end of the day Wednesday, investors were ‘giddy’ with news of the 10 year treasury auction. The notes for sale were being gobbled up by investors (a good sign, and pushes the yield down). That means that investors are interested in buying our debt (whoever they may be: the Chinese, mutual fund managers, etc…..).

How could the investors wake up this morning, after yesterday’s good news, and now be on the fence again? Well, its because investors have the same temper tantrum level as my 5 year old. One minute things are great, and the next, he is wailing because I won’t let him watch TV, or have a chocolate or something ………… Yesterday Diego told me that I had no idea what I was talking about, and “You’re not inside of my brain mommy”. WHAT????????????????????

Back to real news, our economy continues to be on rocky waters, and will be for some time. Jobless Claims are ‘improving’ but is that just because more people have expired the EUC (Emergency Unemployment Compensation)? They don’t qualify anymore. And inflation is up (the PPI was up 1.1% this month). That is huge! There are only 2 ways to pay for the inflation (1) the economy has to absorb (eat) the cost- which has been happening for some time. And (2) the increased costs get passed onto the consumer.

Let’s dig further into option 2 (the costs getting passed onto the consumer), as it relates to mortgages. How do we think the cost of compliance (thanks Barney Frank) is going to get ‘absorbed’? Or the fact that Fannie and Freddie continue to lose MILLIONS each month! I can assure you with certainty that it is the consumer that is paying. They do it in the pricing. We have seen ‘small’ changes to our pricing, that is called risk based pricing. Not putting 25% down? The rate is .125% higher (that’s right, 25%, NOT 20%). There is no incentive for 20% anymore, there is a hit. Or credit score not 740? That is a .125% hit as well. Earlier in 2010, the best price was given at 720. These ‘hits’ to pricing are creeping into our rate sheets little by little. THAT IS HOW BIG BANKS WILL FUND COMPLIANCE AND LOSSES FROM FORECLOSURE. Who do we complain to? How do we change this? Contribute to your PAC. NAR is fighting for lender issues currently, because they realize the importance of the fluidity and availability of capital in order to save homeownership.

Have a FANTASTIC weekend. Call us if you need us, and remember……..we can close a conventional purchase (loans 417K or below) in under 21 days GUARANTEED.

Jennifer Hernandez

RATES as of January 14, 2011 (UNCHANGED FOR THE WEEK)
The following assumptions apply:
20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions, Primary Residence (Refinances have different rates)
30 day closing
Credit Score 740 +
Debt to income ratio <=40%
Full Documentation of Income/Assets

Conforming ($200,000* - $417,000)
Jumbo ($417,001- $1,000,000*)
30 year (fixed) 4.750% APR 4.882%
30 year ( fixed ) 5.250% APR 5.368%
15 year (fixed) 4.125% APR 4.350%
15 year ( fixed ) 4.875% APR 5.072%
5/1 ARM 3.375% APR 3.434%
7/1 ARM 3.750% APR 3.623%
5/1 ARM 4.000% APR 3.642%
7/1 ARM 4.250% APR 3.847%
10/1 ARM 5.250% APR 4.645%
FHA/VA call for quote (max loan $270,000)

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com

Leading the Way

2011-01-10T17:15:00.000-06:00

Happy Friday (on Monday!),
For the last 2 weeks I have mentioned goal setting. Not to sound like a broken record...but it’s IMPORTANT! My wish for you this year is to accomplish all your goals! Furthermore, what about tracking systems to be sure you are on track? Or are you one to set goals in January, to only look to see how you did the next December? Do you know what your average number of leads is per month? Or where your leads come from? Referrals you say? What about the TYPE of referral? Was it a past client? A past client referring a friend? Your farm? Relo? Advertising? Personal Friend? Business relationship? A channel account? Knowing this information could really assist you in knowing where to spend your dollars.

There are just 5 forms (in my opinion and experience) that you need. (1) A lead tracker that also tallies the type of referral (2) Monthly pay log showing all transactions in a month and split between buyer/listing . "Maybe" your average dollar transaction is highest in one or the other, and will benefit where you should spend your dollars!? (3) Profit and Loss (monthly) to show money coming in, and expenses (4) Personal budget - to forecast your money and savings! Imagine paying bills once a month at the beginning, and know where you stand before spending the next month! (5) A weekly time tracker (one page!) that has each day and groups of activities like phone calls, face to face meetings, thank you notes, group presentations, lunches/coffees, # referrals received. This one page snapshot can really tell you where you spend your time.

Of course all of the above cannot be implemented overnight. But I hope maybe this information will get you started in the baby steps to jump start your business, or enhance an already mature one. After 15 years in the business, I needed something new, and the 5 forms above have transformed my business.

The other most important thing I would like you to know this week is WE ARE STILL ABLE TO CLOSE BY JAN 31!!! Until Friday 1/14, if the client makes full application with an accepted contract (conforming loans only), we can close quick! Let us know if we can help.

Rates….up and down. You can still get something in the 4-s!

Jennifer Hernandez

RATES as of January 10, 2011 (UNCHANGED FOR THE WEEK)
The following assumptions apply:
20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions, Primary Residence (Refinances have different rates)
30 day closing
Credit Score 740 +
Debt to income ratio <=40%
Full Documentation of Income/Assets

Conforming ($200,000* - $417,000)
Jumbo ($417,001- $1,000,000*)
30 year (fixed) 4.750% APR 4.882%
30 year ( fixed ) 5.625% APR 5.744%
15 year (fixed) 4.125% APR 4.350%
15 year ( fixed ) 4.875% APR 5.072%
5/1 ARM 3.500% APR 3.328%
7/1 ARM 3.875% APR 3.558%
5/1 ARM 4.000% APR 3.653%
7/1 ARM 4.250% APR 3.856%
10/1 ARM 5.250% APR 4.557%
FHA/VA call for quote (max loan $270,000)

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com

New year and New Reforms

2011-01-03T09:20:00.000-06:00

Most of us are control freaks, that is the nature of a highly successful business person. Knowing this about myself, imagine how I felt when the biggest snowstorm of 2010 hit the Northeast the day before my return flight to Houston (from Newark). After about 200 redials to Continental, and over 5 cumulative hours on hold, I got through. The first available flight home was 5 days later. Unbelievably, I did not wig out (true to my nature). It is what it is. Book it and lets get on with it!!!

As my last blog of the year 2010, I ponder of what should I write about? What do my readers want to hear? That 2010 is behind us and the best is yet to come? I really believe that it is. As our industry is continuing to consolidate, and the real players are emerging (both realtors and lenders alike). The financial reform to come in 2011 and beyond will have its share of unforeseen consequences , and we will survive that too, just as we have the last 3 years. The important thing for all of you to remember, is that let's WORK TOGETHER and concentrate on what we CAN control, like our teams, tightening our systems and processes. Those things we cannot control, well, they will happen anyway. Like rising interest rates, a delayed closing due to the buyers lender (well, you can control that by ensuring they use Patriot Bank Mortgage!) or changing market values. When you find yourself fretting over things, step back and say ' let's concentrate on what we can control'. This one thing sure has kept me sane this year.

My hope for you this year is that before the New Year you can (a) set your goals and/or revisit them (b) put an action plan into place and (c) accomplish them all! Remember to set your aspirations to be attainable, like picking 2 goals for every area of your life (Work, Family, Self, Love life, Money, Spirituality). First establish where you are now, identifying challenges in each area (pick 2). Then on another sheet, label it 2011, and choose 2 new goals in those areas you will accomplish in the next 365 days!

No rates this week. Let's take a break from all the hoopla, and concentrate on ourselves for a change!

May the rest of your holiday be safe, warm and merry. Happy New Year! I look forward to WORKING TOGETHER in 2011!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com

A Spoonful of Sugar for the Holidays

2010-12-27T09:50:00.001-06:00

"Just a spoonful of sugar helps the medicine go down" (singing). We saw Mary Poppins in NYC on Wednesday. What a wonderful presentation! Highly recommended. Of the 2 dozen or so Broadway plays I have seen, this has to be the best one. Diego, my 5 year old was ecstatic . We have been singing this song for days!!!!!

My sugar this year to help the medicine go down has come in 2 doses. ONE , an epidural, when Pablo was born. And the other, chocolate. Partly because I was pregnant for half of 2010, but also because days at the office have been so stressful! Did all that chocolate really help ease the pain of all the increased regulations, rules, and extra paperwork? Really, I think it must have. In that moment anyway! Supercalifragilisticexpialidocious! That is what you say when you just don't know what to say (according to Mary Poppins).

There were so many lessons learned in Mary Poppins. Really such a great story about what is important in life: Family. At the end of the program, Mary Poppins 'flew' into the crowd and went up, up, up to each level of the theater. I was in tears!!!! Why? Was it because I was so happy the Mr. Banks had reconnected with his family? Or that Mrs. Banks had renewed her love with her husband? OR that Jane and Michael, the kids, were not so naughty after all? Whatever the reason, we left the theater singing and skipping through the (freezing) streets of New York City.

As you enjoy the holiday season with loved ones, may you always remember to give:

Your heart to friends and family.Service to a customer.Charity to all.A good example to every child.Respect to yourself and God.

On behalf of myself and my team at Patriot Bank Mortgage, we wish each and every one of you a safe and joyful holiday!

Jennifer Hernandez

RATES as of December 24, 2010 (UP FOR THE WEEK)
The following assumptions apply:
20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions, Primary Residence (Refinances have different rates)
30 day closing
Credit Score 740 +
Debt to income ratio <=40%
Full Documentation of Income/Assets

Conforming ($200,000* - $417,000)
Jumbo ($417,001- $1,000,000*)
30 year (fixed) 4.750% APR 4.882%
30 year ( fixed ) 5.625% APR 5.746%
15 year (fixed) 4.250% APR 4.476%
15 year ( fixed ) 5.000% APR 5.201%
5/1 ARM 3.625% APR 3.361%
7/1 ARM 3.875% APR 3.549%
5/1 ARM 3.625% APR 3.509%
7/1 ARM 3.875% APR 3.668%
10/1 ARM 5.375% APR 4.636%
FHA/VA call for quote (max loan $270,000)

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com

Interest Rates, Holidays, & Markets

2010-12-13T11:22:00.001-06:00

Have you finished your shopping, ?
So, every Wednesday, Fernando and I have date night. Once a month, we use date night to review our budget and cost from the prior month. So this Wednesday we went to Las Ventanas (GREAT restaurant at Hwy 6/Grisby!), and I made sure he had 2 sangrias and a tequila shot before I told him how much I spent on clothes last month. He took it like a champ (for the most part). Doesn’t he understand that I could run into the bank President on the elevator? I MUST look good and professional at all times. And that means matching purse, shoes and jewelry. (SMILE). It sounded good at the time.
Maybe we could give the executives at Fannie and Freddie a tequila shot and they would start making ‘sensible ‘ exceptions on loans! Did you read the CNNMoney.com headline on Thursday? “Eight Million in Assets and Can’t Get a Loan”. Currently, that very well is true. We have to prove a recurring income, so if his assets produce capital gains and interest income each year on the tax return, we are ok! It doesn’t? Well, that is a problem. You see, assets can be spent, and quickly. Market changes can erode capital. We still have borrowers that try to reason with us that since they are putting 50% down, the lender should not care about anything else. Well, unfortunately, that is not the case. They don’t want to foreclose! Look at the mess we are in now! Foreclosures are expensive and time consuming. They don’t’ want your property, no matter how much equity there is. To read more about the article: http://money.cnn.com/2010/01/20/real_estate/mortgage_woes_for_wealthy/index.htm?postversion=2010012009&iid=EAL

Let’s talk about values. Some trivia first. Did you know that Atlantic City is the #1 city for appreciated values at 30.2% ? While on the other end, Las Vegas is 41% BELOW the market. Interesting those are both gambling cities and on opposites side of the spectrum.
We had a jumbo loan come back this week $200,000 below the sale price. Ouch. The borrower paid the difference (I know, that NEVER happens) We lucked out, and we are closing in 15 minutes, so I am typing really fast). A point I would like to make though, is that the nation’s top servicers came out with a Quality Initiative Report this week. Here is a summary of some interesting information for you (it will make a point about the importance of collateral):
Key Drivers of Loan Defects**Undisclosed mortgage liabilities**Collateral : Improper selection of comparables and unsupported adjustments**Insufficient or unverified income; inaccurate calculations**Excessive Seller Contributions or MI Coverage
Top Repurchase Reasons (that is when the servicer demands we , the originator, repurchase the loan)Serious Delinquency and…1. Misrepresentation of income2. Misrepresentation of employment3. Misrepresentation of appraised value4. Undisclosed debt5. Insufficient asset documentation

TX is the top state for Fraud, with collateral being the number one issue

Do you see a consistent message here? COLLATERAL. That is why underwriters are so concerned about appraisals. Fannie passes the pressure down to the servicers (Wells, Chase, Citi, BOA), and they pass that pressure down to us (lenders), and we pass the pressure to the underwriters to be sure we have a loan that will not be repurchased. Furthermore, we demand the appraisers approach comparables a certain way. And even furthermore………………….we are REQUIRED to do an automated appraisal review on every single appraisal (most clients /agents don’t even know we do it) But our investors require this or they will not purchase the loan. So imagine having to run a zillow.com (equivalent) on every single property! You can imagine some of the responses we get. Appraisals are the single, number one issue with all lenders right now.
I hope you found this week’s update informative!
By the way….we can still squeeze in a purchase (conforming) to close by 12/31 if you need it. But we need the contract Monday or Tuesday.

Enjoy the weekend!

RATES as of December 10, 2010 (UP FOR THE WEEK)
The following assumptions apply:
20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions, Primary Residence (Refinances have different rates)
30 day closing
Credit Score 740 +
Debt to income ratio <=40%
Full Documentation of Income/Assets

Conforming ($200,000* - $417,000)
Jumbo ($417,001- $1,000,000*)
30 year (fixed) 4.625% APR 4.756%
30 year ( fixed ) 5.250% APR 5.370%
15 year (fixed) 3.875% APR 4.099%
15 year ( fixed ) 4.625% APR 4.828%
5/1 ARM 3.500% APR 3.288%
7/1 ARM 3.750% APR 3.463%
5/1 ARM 3.375% APR 3.408%
7/1 ARM 3.625% APR 3.539%
10/1 ARM 5.000% APR 4.379%
FHA/VA call for quote (max loan $270,000)

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com

Keeping in tune with rates and clients

2010-10-26T11:15:00.000-05:00

Do those bouncy places make ALL the money? (Bounce U, Inflatable Zone, Pump it Up, etc...). If you have a kid or grandkid under the age of 7 you KNOW what I am talking about. We have 2 birthday parties this weekend (the story of my life), and now I just have to figure out which present I will recycle - just kidding!

On the business side of things, yes, the rates are still low. But don't be fooled! It WILL NOT STAY THIS WAY FOREVER! Currently, the fact that 8.5 million people are receiving some type of unemployment benefits, and that elections are in November...that is keeping things stable. Some economists and analysts predict that if the Republicans gain ground in November, confidence will be regained in the markets, and that could be bad for bonds (so increasing rates). No one really knows, but I would not want to get caught in the upswing! If the time is right, and the house is right......what the heck! Take a rate in the high 3's or low 4's. Someday soon you will have bragging rights at a cocktail party.

Now I would like to give you a marketing tip. How well do you keep in touch with your past clients? I have heard stories recently of people that would gladly refer their realtor or lender, but cannot recall their name. That is why you should be mailing to your past client database MONTHLY! Things like, time change cards, annual reviews , market stats, recipe cards, letter from the heart (a personal reflection of something special in your life), reminder to file homestead exemption. Do you get my drift? Something. And make it consistent. You never know when they want to get a CMA, but just have been too distracted to call, and then 'viola!' your name and phone number appear on a mailer! So, to give you a personal experience, I recently have implemented this (mailing monthly instead of quarterly), and my phone will not stop ringing. Our leads have increased 50%. You better get going.........................

My team and I are here to help you every step of the way! If you and your clients need an ON TIME and ACCURATE closing, give us a call. We just saved 4 purchases this week from other lenders that could not close on time, or denied the borrower, and closed all of them within 10 days .

Enjoy the weekend!

RATES as of October 22, 2010 (UNCHANGED FOR THE WEEK)
The following assumptions apply:
20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions, Primary Residence (Refinances have different rates)
30 day closing
Credit Score 740 +
Debt to income ratio <=40%
Full Documentation of Income/Assets

Conforming ($200,000* - $417,000)
Jumbo ($417,001- $1,000,000*)
30 year (fixed) 4.125% APR 4.252%
30 year ( fixed ) 4.875% APR 4.987%
15 year (fixed) 3.750% APR 3.973%
15 year ( fixed ) 4.250% APR 4.440%
5/1 ARM 3.000% APR 3.129%
7/1 ARM 3.250% APR 3.244%
5/1 ARM 3.250% APR 3.362%
7/1 ARM 3.500% APR 3.477%
10/1 ARM 4.875% APR 4.293%

FHA/VA call for quote (max loan $270,000)

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com

Team Hernandez

2010-09-28T09:11:00.001-05:00

I think my kid has ESP! After my last week’s email about a ‘good baby’, he started sleeping 6-8 hours straight! Is he a genius or what? He was an adorable, cute and beautiful baby before, but now I must say he is in angelic status.
As far as the week goes, I’m going to slack this week. I have had 2 solid days at MD Anderson with my sister, a new employee, and have not kept up! I haven’t even had time to watch the new Greys’ Anatomy! But rest assured, your clients have been taken care of. I have a team of 3 loan partners that are always on the ball! Myself, Kenny, Sarah, and Brianna are here for you anytime!
Have a great weekend, and I promise, next week I’ll have more content.

RATES as of September 24, 2010 (UNCHANGED FOR THE WEEK)
The following assumptions apply:

20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions, Primary Residence (Refinances have different rates)
30 day closing
Credit Score 740 +
Debt to income ratio <=40%
Full Documentation of Income/Assets

Conforming ($200,000* - $417,000)
Jumbo ($417,001- $1,000,000*)
30 year (fixed) 4.375% APR 4.504%
30 year ( fixed ) 5.375% APR 5.494%
15 year (fixed) 4.000% APR 4.224%
15 year ( fixed ) 4.750% APR 4.949%
5/1 ARM 3.250% APR 3.331%
7/1 ARM 3.625% APR 3.515%
5/1 ARM 3.250% APR 3.479%
7/1 ARM 3.500% APR 3.574%
10/1 ARM 4.875% APR 4.363%

FHA/VA call for quote (max loan $270,000)

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com

A Good Loan Officer?

2010-09-17T15:55:00.000-05:00

Happy Friday ,

What exactly is a 'good' baby? Aren't they all good? I have been taking notice since I now have a new little one, and the FIRST thing people ask is.....Is he a good baby? I would assume the answer is always yes. Is there really a mother that would say no? They're such cute little things.............

How about a good loan officer? Now that is a different story. What makes a good loan officer? Do they give you weekly status updates via call and email each week? Do they return calls and emails promptly (within 2 hours at least)? Or have a team that can help you, even if they are not available? How about on time docs to title (day before closing at a minimum)? Fund within 20 minutes of closing? Get wires to title before closing? Or even attend closing?

These things should be the minimum standard, yet I hear so many agents say they don’t get these things. Especially the attend closing one. Strange. Well, with me, you get all of the above. If you are not referring us to your clients for a mortgage, you are missing out on a truly exceptional experience. And guess what, that makes you look GOOD! And will result in more referrals for us both. It’s a win win!

On another note, why did rates go up and down so much this week? The markets have been all over the place. Consumer sentiment is lower than expected, the Core Price Index is up, and then unemployment numbers came in lower than expected. Up, down, up, down. The net effect is rates are still great!

Fannie Mae released its latest National Housing Survey Results. 47% think that prices will hold steady over the next year. 70% think it’s a good time to buy a house, and 67% still consider real estate a good investment. Access to the detailed podcast can be found on the National Housing Survey page on www.fanniemae.com

According to the NAR 2009 Profile of Homebuyers and Sellers (available on har.com), since 1995 the internet has been useful to 77% of buyers (up from 2%). Printed newspaper ads went from 51% in 1995 to 2% in 2009 (as being useful). Yet, thankfully, their value of a realtor has almost no change, from 86% in 1995 to 81% in 2009. This is good to know! You all work so very hard to keep the local economy churning! Keep up the good work!

Have another great weekend! I am off to San Antonio to brave Fiesta Texas with a 5 year old. Pablo will be in the a/c with his nanny- lucky guy!

RATES as of September 17, 2010 (UNCHANGED FOR THE WEEK)
The following assumptions apply:
20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions, Primary Residence (Refinances have different rates)
30 day closing
Credit Score 740 +
Debt to income ratio <=40%
Full Documentation of Income/Assets

Conforming ($200,000* - $417,000)
Jumbo ($417,001- $1,000,000*)
30 year (fixed) 4.375% APR 4.504%
30 year ( fixed ) 5.375% APR 5.494%
15 year (fixed) 4.000% APR 4.224%
15 year ( fixed ) 4.750% APR 4.949%
5/1 ARM 3.250% APR 3.331%
7/1 ARM 3.625% APR 3.515%
5/1 ARM 3.250% APR 3.479%
7/1 ARM 3.500% APR 3.574%
10/1 ARM 4.875% APR 4.363%

FHA/VA call for quote (max loan $270,000)

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com

What's new in the Mortgage Industry!

2010-09-10T12:41:00.000-05:00

Have you ever Googled yourself? I did recently, and surprisingly, found that I am the top 5 or 6 entries on the search. I put in Jennifer Hernandez Mortgage. This strange phenomenon is purely by accident, but a result of a young gal that worked for me that made sure I was blogging and posted on Twitter and Linkedn. It’s not that much work if you delegate it.. Just hire someone fresh out of college! They know all that stuff. There are so many ways to promote yourself, it is mind boggling. But one thing for sure, you need an internet presence. People Google you and research, before they choose your services - Even if referred to you by a friend. If your 'lookup' shows nothing, they may be hesitant to do business with you.

What’s new in the mortgage industry?
HUD (FHA) has issued Mortgagee Letter 2010-28, that as of October 4, the FHA upfront premium will decrease from 2.25% to 1.0% ($13/mo lower on a 200K loan) and increases the annual premium from .55 to 1.55 (so for example , on a $200,000 loan, that is an additional $154 per month. A good reason to buy a house this month!
FHA is still pondering lowering seller contribution to 3% from 6%. It has not become official yet...but look for that in the very near future. Another reason to buy now.
Interest rates are at all time lows - These rates will NOT last forever, people. Waiting and speculating that you know the market, and dreaming of low rates into 2011 could happen, could not. Are you willing to gamble that? On a $200,000 loan, that is a CURRENT SAVINGS of $126/mo (the difference between a rate of 4.5% and 5.5%) - Another reason to buy now.
The Houston economy will be one of the first to recover. We are recovering! Jobs are still coming, and as people get back into the workforce, and stocks begin to rise, prices will steadily creep back up as renters become purchasers. Yes, we have seen a bit of a dip in prices over the last year. Yes listings are up, and I have heard some say it’s a buyers market right now. But we still are at a healthy levels of monthly inventory (7, with 6 being stable). Buyers....don’t be fooled for long. As will rates go up, so will home prices. This phenomenon will not last forever. If you decide to wait, hopefully you will not later say ' I should have......' - bought when rates were in the 4-s? Another reason to buy now.
Mortgage companies are facing record breaking compliance. Nothing we have ever seen. Even the CEO of Chase said last month, that in 2011, the cost to comply with the Financial Reform Bill will increase their cost 11%. Do you think they will absorb that? No way...... every customer who has a checking acct or mortgage with them will. Look for mortgage fees to rise, and also rates. They (all lenders) will 'pad' their margins. Do you not think that the big banks (WF, Chase, BOA, etc ) were not behind all this reform? They want (1) all the business (2) all the profit, and (3) did I say all the business? Oh, and service? What’s that? Closing date? What’s that...we will close when we can close. ANOTHER REASON TO BUY NOW.
Guidelines are getting stricter. Even still. Every day. Need I say more? ANOTHER REASON TO BUY NOW.

As always, I hope you found these thoughts helpful. I also hope that as you have gotten to know me through my weekly blasts, that we have developed trust. You know how I think, you know about my kids, you know the things I like and don't like. Also know that when your clients finance with us, our goal is to take the very best care of them, so that we close ON TIME, and ACCURATELY. We have processes in place to do this, like updating realtors (listing and buying) every Tuesday during the transaction. Docs to title early. Attending closing. WE make you look good for referring us!
Have a great weekend!

RATES as of September 10, 2010 (UNCHANGED FOR THE WEEK)
The following assumptions apply:
20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions, Primary Residence (Refinances have different rates)
30 day closing
Credit Score 740 +
Debt to income ratio <=40%
Full Documentation of Income/Assets

Conforming ($200,000* - $417,000)
Jumbo ($417,001- $1,000,000*)
30 year (fixed) 4.375% APR 4.504%
30 year ( fixed ) 5.375% APR 5.492%
15 year (fixed) 4.000% APR 4.224%
15 year ( fixed ) 4.750% APR 4.946%
5/1 ARM 3.375% APR 3.395%
7/1 ARM 3.750% APR 3.574%
5/1 ARM 3.500% APR 3.593%
7/1 ARM 3.750% APR 3.748%
10/1 ARM 4.875% APR 4.372%

FHA/VA call for quote (max loan $270,000)

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com

Information provided in this e-mail is intended as a tool for Real Estate Agents to be informed of the approximate rates available for home mortgages. It is intended for their sole use and purpose only and is not for distribution to the general public. Depending on the borrower's actual circumstances, such as credit, debt ratios, etc., rates may vary. Special niche products may also be available.

Interest Rate Update from Jennifer Hernandez

2010-09-07T09:41:00.001-05:00

Have a Safe Labor Day Weekend Jennifer,

Let's start the 3 day weekend with some TRIVIA. You can impress all your friends at the barbecue, lake or beach - whatever you will be doing this weekend! Stay safe and have fun by the way.

There are 1.37 million realtors in the US
Average age of a realtor - 53
Average homebuyer is 25-30 years younger than the average realtor
1 in 6 persons in the US is unemployed or underemployed - got this stat from Obama’s speech
10% of buyers last year bought a home in foreclosure (up from 3% in 2008)
By 2006, homeownership in the US reached an all time high of 69.2%
Today, homeownership rates are 62%- probably as high as they will ever be.
Monthly foreclosure filings in Texas are approximately 10,000 / month, and nationally its 120,000 - another reason to be a Texan!
Only 4% of realtors are CRS designated (Certified Residential Specialist) yet they represent 25% of the transactions. Do you have your designation to set yourself apart? visit www.crs.com to find out more.
Bill Jones, TAR Chairman of the Board, predicts that someday a 'whiz kid' will design a model to appraise homes with computerized data, forcing out the need for appraisers. Could you imagine? No adjustments for those upgrades. This would be a nightmare for values. Keep supporting your PAC.
Doug Foster, Director of the Dept of Saving and Mortgage Lending, fought the US Congress for you and has retained the right for sellers to owner finance up to 5 properties every 12 months before needing to be licensed? He should be your friend! Write him a thank you note.

Today I heard Bill Jones, Chairman of TAR, speak to the Houston CRS group - he is a great speaker by the way (he gave me permission to plajorize his speech! Thanks Bill) He talked about the how the dynamics are changing with buyers and sellers. The generational diversity , the technological diversity , and also all the misinformation with the internet. He thinks about 95% of what is out there is inaccurate/incomplete. Consumers need confidence! They also need a professional (YOU!) to be the authority for them. To clarify what they are reading at 1:00 am when they send you the email of properties they find on MLS or Zillow.com. Do they really expect you to respond at that hour? Yes indeed, the attitudes, expectations and communication of the consumers is changing right before our eyes. The takeaway to this: educate yourself, keep up with the times (technology) and define what sets you apart!

Lastly, Bill had a great observation, that rings so true with mortgage loan officers as well. The most successful reatlors/lenders (a) show up, (b) pay attention, and (c) tell the truth. Many times, they have B and C down...but does everyone show up? We know the answer is that they do not. BE PRESENT! Also, while the email and internet are good ways to communicate and attract leads, NOTHING can replace a good 'ole handshake and look your prospective client in the eye, and ask him for his business. People really are starving for personal attention , no matter what they say.

Do you need to implement processes in your business?
Or fine tune how you work with your assistant /buyers agent (or need to hire one)?
Or generate more leads?
How about net more income?
If you close at least 10 million/year, and need some fresh ideas............Come to the forum I am hosting Sept 21 (3-5pm) at Maggianos. I am flying in one of the top realtor coaches in the nation FREE for you! His company coaches realtors and lenders. For example, Tom Daves, the #1 KW agent. I am also one of them, and can tell you their ideas I have implemented have changed the course of my business in the 7 months I've coached with them. I work less hours, my team is smoother than ever, and my income increased 30% this year (in a down market!) We are not selling a thing. Its my gift to you, for supporting my business. You cannot afford to miss this event, I promise you. For only 2 short hours.....and I will even provide cuppachino and dessert! Seating is limited, so simply reply to this email to reserve your spot, or get more information.

To your continued success...................................

RATES as of September 3, 2010 (UNCHANGED FOR THE WEEK)
The following assumptions apply:
20% Down Payment (Conforming) / 25% Down Payment Jumbo (Lower down payments available – call for details)
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions, Primary Residence (Refinances have different rates)
30 day closing
Credit Score 740 +
Debt to income ratio <=40%
Full Documentation of Income/Assets

Conforming ($200,000* - $417,000)
Jumbo ($417,001- $1,000,000*)
30 year (fixed) 4.375% APR 4.504%
30 year ( fixed ) 5.375% APR 5.492%
15 year (fixed) 3.875% APR 4.099%
15 year ( fixed ) 4.750% APR 4.946%
5/1 ARM 3.250% APR 3.331%
7/1 ARM 3.625% APR 3.515%
5/1 ARM 3.250% APR 3.477%
7/1 ARM 3.500% APR 3.572%
10/1 ARM 5.000% APR 4.443%

FHA/VA call for quote (max loan $270,000)

We do originate loans below $200,000. These amounts are chosen to show the most favorable rates.
For other product options or for loan amounts less than $200,000 or above $900,000 please call for quote.
Call for details!

If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez
Vice President/Mortgage Consultant
Patriot Bank Mortgage

Office: 713-337-8400
E-mail: jennifer@patriotbankusa.com
Blog: www.loanwithjennifer.blogspot.com

Welcoming Pablo!

2010-07-19T08:37:00.001-05:00

This weeks message will not contain market information nor rates, but purely a letter from the heart. I am feeling a bit sentimental......................

Pablo Fernando Hernandez was born yesterday at 3:30 PM, weighing 9 pounds 2 ounces and 21 inches long. Up until that moment he arrived, my biggest fear was wondering if I had the capacity to love another human being as much as my 1st son, Diego. Now, I know that indeed I can.

At the birth of a child we are overwhelmed with the feelings of innocence, promise and hope. I once again have asked myself, what is my purpose in life? Several weeks ago, I answered that very question, as my business coach had instructed. I came up with (1) For my family to have enough, and not need or want for anything , (2) Impact the lives of people I love whether it be emotionally or financially when in need, and (3) make a difference in the community, family/friends, and professionally with clients and coworkers. Well Josh, since I know you are reading this, I have now added a fourth one, and perhaps if in order, the very first. My purpose is for moments like the one I am feeling today. To be completely free from worry or despair, and the feeling of immense elated emotion and peace.

Friends, take a moment, as a favor to me, and reflect upon those moments of happiness that have shaped your life. I hope that they are many, and many more to come. May we seize each moment as if it were our last, and leave an impressive impact on those lives we touch every single day.

Keeping up with the Jonses

2010-07-12T09:48:00.000-05:00

As I see Realtors throughout the week, it is alarming at some of the stories 'other' lenders are telling the real estate community! It is amazing how a story or new regulation can have so many different interpretations! Let's answer some questions that I received this week, and you can have one lender's view (Patriot Bank Mortgage - who should be on your referral list, by the way). Remember, we are your friend in lending, and we endeavor to keep ourselves up to date on industry standards and interpretations so we can help you sell more real estate!

This may be long, so pick and choose what you want to absorb. I hope it’s informative.

Why do different lenders have different rules? Excellent question! Fannie Mae/Freddie Mac publishes guidelines, and the investors (ex: Wells, BA, GMAC, etc....) interpret them. They put overlays, and give us, the lenders who originate the loans, their guidelines for purchase of the loan. So, depending on the investor we use, and the borrowers’ qualifications, that drives what 'rules' we are using. Sometimes we have to use a different investor (ex: Wells over BA) because of an appraisal issue or income document. It gets very hairy and complicated at this point. The bottom line is, IT IS DIFFICULT, and the underwriters have to decide how much risk we can take to bend the interpretations, so we can have a sellable loan!

My listing didn't close because the underwriter said the house had been on the market too many days. Can lenders do that? This is a very complicated question, and has many answers. But first, know that investors are looking for ANY reason not to buy loans, and the easiest thing they can pick on is the appraisal. It is the only document left still up to interpretation. Income and asset docs are cut and dry, black and white. But the appraisal......that can form an entire life of its own. So that is where lenders are cracking down the most and taking the most conservative approach. DOM (days on the market) is a HUGE red flag. An underwriter’s questions would be: (a) Why would anyone list a home not priced to sell? (b) What is wrong with the property that caused it to be on the market so long? (c) What do the other comps look like, and how many DOM were they? So there is not an easy answer to this realtor's question. We would have to dig a lot deeper, but as a listing agent, if you have a property that is over 180 days on the market, be prepared to defend your sellers. Saying that they were not in a hurry to sell is not going to do the trick.

I heard a lender say that now they (lenders) are checking credit the day of closing, and last minute a borrower may not qualify!!!! Yes and No. Fannie Mae/Freddie Mac have published guidelines that say the lender must verify that up until the DAY of closing, the borrower has no new debts, and that the loan application is completely accurate. So, lenders have interpreted that as: we have to check credit before closing, to be sure no new debts or inquiries into the credit report. Every lender has their own interpretation of this. By the way, a new credit score is NOT required. Some lenders will take this to the extreme, and verify credit the day of, and maybe even pull new credit scores. This is a nightmare waiting to happen.

AT PATRIOT, we will refresh debts and inquiries (only- no new score) 5 days prior to closing. This will allow us enough time to cure any questions with the borrower. Also, we are mandating a disclosure at application, advising the borrower what NOT to do with their credit. No inquiries, no new credit (wait to buy appliances!), no new anything. Don’t even charge on your current cards. If you do, your loan can and will be affected. Hopefully this will work. As you probably know, some borrowers don't listen. But we hope the signed disclosure in big font will get their attention. Lastly and most importantly, ask the borrower’s lender what their policy is on this topic, so you are prepared. How many days before closing will they refresh the credit?

Our sales manager told us today that appraisers now have to be knowledgeable in the area of the appraisal - yea! In theory, YES! Fannie Mae just released selling guide updates (https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2010/sel1009.pdf) that become effective Sept. 1. They clarify that (a) neither the HVCC nor Fannie requires lenders to use third party vendors to choose appraisal (hence: appraisal management companies), and (b) appraisers who lack requisite knowledge, experience, and access to appropriate data must not be utilized, and (c) It is incorrect for an appraiser to indicate that the HVCC does not allow for communication between the lender or an authorized representative. This is important, so let’s break it apart:

(a) Neither the HVCC nor Fannie requires lenders to use third party vendors to choose appraisal (hence: appraisal management companies) - this will still happen with the larger national lenders. So beware. Once you know who the lender is, call and ASK them how they handle appraisals. Many times, if an AMC is used, it means longer turn times, and the possibility of getting an unknown appraiser is greater. They usually use a 50 mile radius when choosing appraisers, AND use companies that will do an appraisal for 1/2 the fee, so they can keep the other 1/2. Think about it. At Patriot. we use a small list, of trusted appraisers that we know are familiar with the area. If we have a loan south, like Clear Lake or Galveston, we use our Clear Lake branch list to choose the appraisal.

(b) Appraisers who lack requisite knowledge, experience, and access to appropriate data must not be utilized – Ok, in theory, that is how it is supposed to be now. Fannie Mae saying this changes nothing. How will this be policed? After the appraisal is done, and the underwriter or realtor complain it is a bad appraisal? What we see is happening now, is that it will be controlled on the investor level. The large investors we sell to (ex: Wells, BA, Citi, etc…) each now update their ‘blacklist’ of appraisers on a DAILY basis. That means that before we close a loan, we have to make sure the appraiser is not on it. In the QC process, after the loan is purchased, they will flag an appraisal/appraiser they think is bad, and then update their list as to not accept that appraiser in the future. This is a tedious process! But we are handling it. My main point here is not to get too excited. In fact, it may delay the process more if an appraisal is ordered, and completed, then days before closing the lender tells you, oh by the way, we have to do another appraisal, because they are on the investors black list. This is my premonition. You heard it from me first!

(c) It is incorrect for an appraiser to indicate that the HVCC does not allow for communication between the lender or an authorized representative – I have heard many realtors say that an appraiser will not talk to them, saying it’s against HVCC. FALSE! Don’t let an appraiser get away with this! Stand your ground, meet them at the house for the appraisal, with comps in hand. They don’t have to use them, but at least you have done your part. Try and try again.

Ok, that’s enough for today. If you are like me, you’re fogged by now with all this info! Have a great weekend, stay cool, and remember to refer us your next client! Kenny, Sarah and I would love to hear from you! (That is my team- they are awesome!) You can reach us at the numbers below.

A rainy economy means amazing rates

2010-07-06T08:47:00.002-05:00

On this much deserved long weekend, we at Patriot hope you enjoyed a safe and restful holiday. For me, the rain was a good thing, giving me further excuse (other than 38 weeks pregnant) to sit on my sofa watching Criminal Minds reruns, or to play super heroes with my son. His favorite phrase now is ‘ I know Mommy, you can’t sit on the floor, baby in your tummy’. So we play from my permanent spot on the couch! He does the moving around of the figurines, bolting around the living room catching the bad guys. It is so entertaining!

Lots of news this week, including rates down since Monday! Enjoy!

RATES: This week mortgage bonds had a party with all the sour news around the globe. With strikes in Greece and Spain, and concern over the European Bank’s Thursday deadline to repay the European Central Banks over 442 Euro ($539B USD), the stock market took a nosedive, and that was great for bonds! Remember the inverse relationship. Bad news in the economy, good news in the bond market, hence lower yields (rates). Enjoy it while it lasts. Or will it continue? I thought for sure rates would be almost 6.0% by now. If your buyers are sitting on the fence or unsure, NOW IS A GREAT TIME! Rates are about .50% lower than a month ago. A .50% reduction in rate on a $200,000 loan translates to $60/month! That is a facial in my playbook. I’ll take it.

JOBS REPORT – released this morning, the results were better than expected, but still bad. Translation: Economy still weak, many still unemployed, so stocks remain low. We need some good news people!

HOUSE REFORM BILL: Passed. A load of financial reform for banks, lenders, financial institutions. Loaded with compliance (translation: costs) which will increase the cost of doing business. But nowhere in the reform bill was anything that applies to the ratings institutions that rated all the mortgage bonds AAA to begin with. Isnt that what got us in this mess? Investors bought the mortgage backed securities, because the ratings agencies graded them as AAA. They relied on the information . How come they are not regulated? Hmmmm…………to view a summary of what’s in the bill go to http://money.cnn.com/2010/06/25/news/economy/whats_in_the_reform_bill/index.htm?postversion=2010063018

HOMEBUYER CREDIT EXTENSION: has passed both the Senate and the House, and just needs sign off from Obama. As of right now, I can find no research saying he has signed off. Expect after the holiday. It would extend the deadline (for those already under contract by April 30) to September 30.

FLOOD INSURANCE : As anticipated, the National Flood Insurance Program (NFIP) funding has once again been extended until September 30, 2010 in the latest extension granted by Congress until they can consider more meaningful changes to the Federal flood insurance program.

News You Can Use

2010-06-28T17:12:00.000-05:00

There was lots of interesting news this week, so I will get right to the point:

Corrections from my last post:
· The SAFE ACT (requiring seller financiers to be licensed to be a mortgage lender) is actually delayed until August 31. This means that for 2 more months, sellers can finance to their hearts content. Once and If the SAFE ACT does come into play, sellers will have to be licensed in their state to be a mortgage lender for anything other than a primary residence. The commissioner of the Texas Dept of Savings and Mortgage Lending is also taking significant steps to allow property owners to seller finance up to five transactions in a 12 month period. Not reality yet, so I am sure more is to come.

· Extension of Homebuyer Tax Credit: This is NOT reality. There has been proposals in the House to pass a bill , but because it is grouped together with other legislation, it is getting caught up in red tape. Will it make the 30th deadline? Not sure. If passed, it applies ONLY to those persons already under contract.

More news you can use:
· What do you think about the 1200 prison inmates that were able to defraud the government of 9.1 million total in tax credits reserved for 1st time buyers? It’s a shame, for such a generous move on our parts (via our legislators!), that people still find a way to take advantage. There will always be fraud, it just moves from product to product. Sad.

· Fannie Mae is seriously considering ‘cracking down’ on homeowners that walk away from their homes even if they have the ability to pay. (ex: the values are less than the loan balance). After a default/foreclosure they would not be able to get another Fannie or Freddie mortgage for at least 7 years AND could be receiving a judgment for the full loan balance amount. Many homeowners have the attitude of ‘why should I pay?’. So they walk.

· Well, how about because it’s the right thing to do? Reading the blog comments on this one was interesting. Responses varied from ‘it’s the right thing to do’, to ‘can’t believe Fannie has the nerve to make homeowners pay (once again) for the bad products they created that started this whole mess. It was all very interesting, to say the least.

· Unemployment benefits were NOT extended. Millions of unemployed are about to lose benefits. Congress did not pass the bill, wary of increasing the deficit further.

Rates are still at record lows….best time to be looking if you are a buyer!

Counting down

2010-06-21T08:46:00.000-05:00

As I count down my due date to 3 weeks, everyone assumes that I am ready for this pregnancy process to be over with. HECK NO! Once my second son is born, out the window will fly my excuses for weekly massages, nightly footrubs from Fernando, cutting in line at the grocery store, and stork parking at Kroger. Who are we kidding? I want to milk this timeline for all its worth!!!!!!! On a serious note, I would like to also assure all of you, my trusted referral partners, that even as I enjoy the first few weeks of my new baby at home, my team (Kenny and Sarah) will be at the office slaving away! Waiting for your calls, and ready to qualify your clients quickly and close our loans efficiently! There will be absolutely no disruption in the service we provide.

This week there are several points of 'News You Can Use":

Changes to Seller Financing: On May 1, 2010, the SAFE Act was passed into law (Secure and Fair Enforcement for Mortgage Licensing Act) which has within it a small provision that expands licensing requirements to owner finance transactions (1-4 family residential) where the property is not the primary residence. The seller/financer must be licensed as a residential mortgage loan originator. The process involves education, background checks, fingerprints, and the payment of fees. If your buyers/sellers are considering this in the transaction, be sure that you are aware of the new limitations.

Home Buyer Credit Deadline Extension: until 9/30/2010 (for contracts already executed before April 30. This gives more time for delays that have arisen in short sales, etc for buyers to close their loans.

Flood Insurance: Congress today once again could NOT reach an agreement on a budget for flood insurance. So......the moratorium on new policies still stands. Lets hope the legislators can get it together. AT PATRIOT, we will accept a prepaid policy with application for closing.

Have a great weekend! Rates are still fantastic, presenting a wonderful opportunity for your clients to buy a new home!

Mixed Signals

2010-06-14T08:30:00.001-05:00

Another week survived in the mortgage industry! Actually, its not that hard to survive. You just do the right thing, return calls ALWAYS, and give bad news early. Communicate. That can’t be that hard, can it? At Patriot Bank Mortgage, we like to think we do that exceptionally well. My team and I proactively call /email borrowers and both agents on the transaction once per week, to update them on the progress. If you could use that kind of service from your mortgage lender, call us, we are happy to talk to you about how best to work together.

I had lunch with Mike Inselmann this week. A rare treat to have one on one time with the most well known Houston economists (in my opinion a pure genius). We talked of course about the business (after kids and grandkids). He was very interested to hear a lenders story on what we go through, and I naturally got his take on things. Bottom line, we concluded that the pendulum has swung in the complete opposite direction, BUT ….things will lax. It may take a few years, but shouldn’t lenders have cared about proving income years ago? I mean really, does it make much sense to say to a borrower ‘OK, we are just going to take your word for it that you make xxx dollars and have xxx in the bank’. Where did we as a society think that was ever fair to take a ‘just because you said so’ attitude?

Congress passed an increase in the FHA monthly premium this week from .55% to .9%. On a $170,000 transaction, that will cost a borrower $42/month. For some borrowers, that will make the difference between qualifying and not qualifying. The increase is due to the fact that FHA needs revenue. They are losing money due to foreclosures, and this is one way to get it. Make the innocent consumers to pay. I think I will stop here, because being 35 weeks pregnant, I can’t get all riled up on this issue. Don’t get me started.

Retail sales came out today the lowest in 8 months (1.2% decline). However consumer sentiment has improved. Once again, mixed signals. Time will only tell how the stock market and bond market will react. For now, rates remain low, and if your buyers are sitting on the fence, they might want to consider buying now while rates are still low. They most surely will eventually go up. That is for sure….like taxes.

The Oil controversy and more

2010-06-10T09:50:00.000-05:00

Should I dare mention the oil spill? Its on everyone's topic of conversation, just like the OJ simpson trial, or Monica Lewinsky, or....I don't know, just about anything the press can get their hands on. The fact is that this oil spill will affect our Houston economy. Somehow, someway.

A few topics for today:

There is another reason why you should claim all your income on your taxes and not fudge write offs! (other than the obvious, it’s the right thing to do). (1) You need to show income to get a mortgage loan (2) if you want BP to reimburse you for lost wages, like they are doing in Florida to realtors that have claimed lost wages on beach rental. You see, BP is reimbursing fisherman, restaurants, realtors, just about anybody. So to prove wages, if you are self employed, many of them have to shore up tax returns to show income. Uh oh, you say! Where is the income? Good for BP, bad for the person wanting the handout.

Boy these RATES are nice. I am not sure if they are going anywhere soon. Between the European crisis, the oil spill, and unemployment tanking the stock market today, seems that troubled times and uncertain times are ahead. Making investors skiddish, and looking for the safe haven of bonds to put their cash. Remember, when the stock market is not doing well, bonds are, so that pushes mortgage rates down.

If you have a closing at the end of June that is NOT expecting the tax credit, beware! Lenders and title companies are swamped trying to meet deadlines for the flood of business that needs to make the deadline of June 30. Would you want your buyer to miss the credit? So when push goes to shove, look for lenders and underwriters to choose the tax credit files over yours to push to the head of the line. TALK WITH THE BUYERS LENDER NOW. Be on top of them on the timeline. Most of all, prep the buyers and sellers that there may be delays. Hopefully you thought ahead and did not schedule your closing for June 30 anyway.

Flood insurance is temporarily unavailable - AGAIN! Until Congress reconvenes next week, there are no approved funds. Many lenders (like Patriot) are allowing closings where the application and premium have been paid. Hopefully your transactions are not affected. My only lingering question is (1) How could Congress leave session without approving funds AGAIN! and (2) Why did they only approve flood for 45 days the last time this happened? Will we be going through this every 60 days? What a dilemma. Once again, we are powerless against these forces which we cannot change (in the short term). As I have mentioned before, get involved with your lobby, or the topics you believe in. It’s the only way we will change things. If we don’t get involved, than can we ever expect change?

Define your purpose

2010-05-27T09:53:00.001-05:00

My coach assigned homework this week of ‘what is my purpose? Well gee, I don’t know. To make money? No…besides that (he said). What is the reason you get out of bed in the morning, and what are the things that motivate you to do what you do? Is it to support family? Contribute to the world via charity? Is it to support a family member? Or all of the above? So he challenged us to come up with specific, concrete items. I have 2 weeks. Thank goodness. This will require some thought. What is your purpose? Have you defined that lately?

In the market news:

· Stocks are down 10% from their peak, and has eased mortgage bonds (interest rates) a bit. We expect more correction, so keep an eye out
· This week the Senate passed sweeping legislation on financial reform to correct the 2008 crisis. Many of these items, if passed will have negative impacts on not only mortgage companies (so look for our margins/yields to increase) but also the consumer. Increased regulation and change means (a) more paperwork (b) more cost to mortgage companies, ie, to the consumer, and (c) mass confusion – nothing new these days! As things are approved, I will educate you on the changes. Of the 326 proposals, we don’t know which ones will survive in their current form.
· As of June 1, Fannie Mae is requiring MORE screening for lenders to perform in their QC. We must repull the credit report within 24 hours of closing, to verify no new debt has been obtained, or , if credit scores are lower. If there are changes, this could DELAY the closing, while additional conditions may have to be obtained by the borrower. In addition, we have to verify additional verifications of the borrowers occupancy plans for the property, as well as the social security number directly with the SS office. Oh yes, also, the W-2 transcripts for all borrowers, employed or self employed (used to be self employed only). Oh, and business tax returns. We used to only need those on Jumbo borrowers, but now, need them on conventional too. And….get IRS transcripts on those too. Do you have a headache yet?
· All this extra compliance sums up to one thing: Cost. The consumers will end up paying some how, for the increased legislation and regulatory requirements.

Bottom line: hang in there. Patriot Bank Mortgage is here to see you through all the changes, and continue to make things streamlined for your borrowers with our in house processing, underwriting and closing- we get the job done , accurately and on time.

Drama abounds

2010-05-10T17:52:00.000-05:00

Drama ensued this past week. I don't mean the Citi broker that "accidentally" sold 1 billion shares of Proctor and Gamble on Thursday, sending stocks tumbling (that’s the story I heard)- but my 4 year old pushed a girl at school. That is real drama! The crying went on and on when I would not let him watch Dinosaur Train while I cooked dinner. That’s the punishment. He acts up at school, I take things away that he likes. He said I was mean and he didn't love me anymore. Poor thing. Doesn't he know that crying does not fix the punishment? So we sat and hugged, and talked about what he did, and not being a bully, etc... And ended the night with his favorite dinner: peanut butter and jelly. That made everything ok. He took it like a champ, and hopefully will not push, shove, bite, hit or pinch at school ever again. Can I only dream?

So back to the stocks. The Dow lost 900 points in 5 minutes last week, then began to rebound Thursday only ending down 348 points. Rates eased (went down) (stocks down, bond prices up, bond yields (rates) down). Today, we feared rates would go back up, as news of better jobs was expected. That IS what we got (better than expected payroll numbers), however, stocks remained low, as the fear and uncertainty of the Greek economy still looms over the market and the European Union.

Oh, and to top it off, Freddie Mac needs another few billion (yes, BILLION) to recover from losses. They lost 8 billion the first quarter of 2010. Now that doesn't sound good does it? But wait.....Freddie Mac's CEO assures investors and the government that things are turning around. That could be true, as we are seeing business increase month by month as consumer confidence returns to the market. Not to mention jobs. But, do we think they can keep rates low if they (Freddie Mac) are losing money every month? Its called ' padding the margin'. That is my theory and pure speculation on my part. What do I know? We may see the investors wanting higher margins (profit) for the loans that they do make. Only time will tell, but do enjoy these low rates while they last.

The urgency of business

2010-05-03T13:30:00.002-05:00

"Drive Now, Text/Phone Later". That is what the marquis on 610 said today. I saw it twice. So I tried it for about 10 minutes. Pure silence. I did not even have the radio on. It was grueling! Is there such a thing as talkers anonymous? I sadly admit that I am one of them, that drives down the freeway with (at least) BOTH hands on the wheel (and I use a headset). But I must say, I know I need to stop. Its dangerous. So far I have been lucky, but do not want to learn my lesson the hard way. What is it about our society that demands such instant gratification that we must talk and respond to email immediately? We just cannot wait to reply. Its good customer service, right? But is it really if you are risking the lives of others at the same time? Just something for you to think about over the weekend.........

Speaking of instant gratification, what about in the stock market? I remember the days (15 years ago) when I began originating loans, rates changed only 2-3 times a week. Also, Credit reports still took 4 hours to generate, and came printed out on the glossy, scroll fax paper! Now rates change 2-3 times a day! Depending what investors see on CNN the last hour (literally). Information is changing at warp speed. This makes it even more difficult to quote rates, lock loans, and execute anything! You need to be sure your loan officers are skilled and knowledgeable. Your clients experience depends on it!

Rates were pretty flat this week. Monday will be interesting (possibly lower rates?), as the results of today were that the stock market fell from the news of Goldman Sachs credit downgrade and criminal investigation became official. Also the continuing bad news of the oil spill in the Gulf. Galveston beach anyone?

interest rates and credit scores and the economy, oh my!

2010-04-29T15:14:00.001-05:00

As usual, this week was jam packed with news.

Rates are steady, and I have seen some revised forecasts for rates that anticipate 5.5% by year end. That is revised downward from the 6.5% I had previously heard. The reason? (1) Problems in Greece, Portugal, Spain, and Italy (2) the EU issues have caused a 'flight to quality' for investors that now are once again considering the US stock market a sound investment (3) Continued unemployment issues and stalled recovery (4) For the first time in history, mortgage backed securities are showing signs of written policies and procedures on how to trade them. This means regulation and oversight just may be working, as investors begin to regain confidence in our market.

***You can find out more about forecast of interest rates on www.financialforecast.org
Today's news (www.cnnmoney.com) was plagued with articles on the unemployment debate (99 weeks and counting) and new home sales regaining ground at the fastest pace in 47 years. Its catchy headlines like this that catch investors 'already challenged' attention spans. Read further, and you will be confused! Mixed signals from recovery in the housing market, to unemployed persons for 2 years and counting. In the end, the big picture is that we may enjoy these steady rates a bit longer. Who really knows though? That is my official disclaimer by the way.

Did you know.......................Fair Isaac (inventor if the FICO score) released a bit of the curtain this week and actually gave some insight to credit scores and how they may be affected by a foreclosure or short sale. 85-160 points. A bankruptcy is 130-240 points. All depends, of course, on your overall credit, and did furthermore say that those with an 800 score (one of the best) are the most at risk when an event like this happens (foreclosure, short sale, bankruptcy). You can read the article on www.cnnmoney.com
Quote from Jim Rohn: “Success is no more than a few disciplines practiced every single day”.

Discipline

2010-04-19T08:54:00.001-05:00

The MS 150 was this weekend (watch the traffic on I-10 West!). My husband, Fernando, is riding for the first time. He has been training like a madman, working out 2 hours a day. Also, next weekend he is competing in his 4th sprint triathlon in Galveston! Am I married to a crazy man?! It’s quite interesting living with someone that can be so disciplined and driven. Having 2 of us in the household that are focused can be challenging at times. But all joking aside (really I am not)....good luck to you Fernando! You are my superhero.

Just like athletes, realtors and loan officers need discipline, training and focus. If not, what good would we be to our clients? What are you doing to improve your discipline? Personally, I have implemented in the last 6 months new tracking forms, daily disciplines, hired an additional assistant and hired a coach that coaches realtors and lenders specifically (The Core Training). We have already seen an increase in business as a direct result. Our goal is to create ‘Raving Fans’ of our clients and realtors! I know it’s working!

Quote from Jim Rohn: “Success is no more than a few disciplines practiced every single day”.

News You Can Use:

Rates: Ended the week on a great note with the announcement of the Goldman Sachs fraud charge. Bonds love scandal and bad news. The stock market took a nose dive, and ‘chaching!’ bond prices increased, leaving mortgage rates at nice levels for a Friday.

Is the Cap and Trade Energy Bill really true? This is HR 2454 that requires existing homes must meet new energy standards before they can be resold. According to Snopes.com : FALSE! The bill (not even passed by Senate yet) offers financial incentives for homeowners that do so, but does not mandate any such thing.

Will FHA go to 5% down minimum? No concrete approval of this yet. There are rumors, but I am not sure that HUD would be that daring. Would they? What REALLY is the difference between 3.5% and 5.0% anyway?

Can you get a FHA loan with a 580 min. score? Technically: YES. FHA publishes this is their ‘minimum credit score’. In REALITY: NO. Investors have what are called overlays. They chop and amend guidelines as they see fit. In this case, 99% of the investors require 620 score. But ask yourself, does a 580 credit score really deserve to buy a home right now?

Can the homebuyer credit be used at closing toward down payment? Again, Technically, Yes. Obama’s feel good plan at work. REALITY: no. There needs to be a local government agency to implement /advance the money. To date, I have heard of not one lender that has closed one. Have you? We encourage our clients to file an amended tax return immediately after closing, and they get the money in 4-6 weeks. That is what we call ‘sweet!’

Is HVCC really going away? It is supposed to ‘sunset’ in October 2010. However, most investors will probably keep the practice, just ‘because’. There are legislators trying to end the practice (ex: Congressman Childers), but nothing has been set in stone. (At Patriot, we have our own ‘short list’ and we rotate from that- we DO NOT use appraisal management companies! This is just one of the benefits of using us for your mortgage needs!)

Now….the million dollar question: Will the Tax Credit be Extended?……………drumroll……………ONLY for military personel that have served at least 90 days out of the US in the last year. The credit is extended 1 year. How is that for a specific demographic?

Hope you had a fantastic weekend! It was raining, so maybe you had time to get some projects done around the house. Stay disciplined!

Be your own super hero

2010-04-12T11:55:00.000-05:00

My four year old, Diego, asked me the other day " Mommy, are superheroes real?" . Hmmmm. What should I tell him? Do I keep the spirit alive as we do with Santa? Or do I tell him the truth, so he won’t go jumping off buildings thinking that his spider web will shoot out of his wrist? I chose the latter. Break it to him now.

There really are SUPER HEROES though! Every day, we deal with that super closer at title that goes the extra mile to keep our deal together, or in our case, our underwriters at Patriot! God love them. They stay late, they work Saturdays when needed, and they sign off on conditions just minutes before closing so we can fund on time. In my book, that qualifies as a super duper hero. But some days, they can also be villains, making our life hard with conditions and paperwork and this and that. Villains!!!!!!! Worse than the Green Goblin himself! But its not their fault. Its the Big Daddy Fannie Mae and HUD that make these regulations. Underwriters are just the messenger. WHO ARE these guys anyway? Is it a board of suits sitting around a conference table spitting out do's and don'ts for millions of potential homeowners to comply with? Probably. That sure is refreshing.

So that is my job description now, shielding my clients and realtors from the painstaking regulatory requirements that lenders force on us. Does this make me a super hero? (SMILE) Some food for thought: What can you do for your clients to make you their super hero? Its a catchy concept, and one that can improve the homebuyers experience in this crazy, villainous world! That is my motto for 2010- BE A SUPERHERO for my clients.

A check-up on all things changing

2010-04-05T10:00:00.001-05:00

Finally, the warm weather is here! We can play outside, wear less clothing (good if you are 6 months pregnant like me), and enjoy all Texas springtime has to offer! Spring is also a time for cleaning. You may want to keep reading……

FHA on April 5 (Monday) will increase the upfront mortgage insurance funding fee + .50%. That is $500 for every $100,000. Since it is rolled into the loan, and amortized, the payment increase is only $3.00/mo. Not too drastic. Also, the seller contribution allowable goes from 6% to 3%. This will most impact lower priced homes (example: under $150,000) where 3%, or $4500 will not cover all costs and escrows required. Any FHA case numbers that are obtained before the 5th will be covered, regardless of closing date.

There is a rumor that seller financing may go away. This is a topic I need to investigate more, but will surely keep you posted. That would truly put a dent in transactions. If any of you know anything about this, I would appreciate feedback.

Apparently buried deep within the Health Care Bill (Section 9015, p.2000) is language that would take effect on 1/1/2012, in which the Medicare tax (3.8%) would apply to capital gains, dividends, rents, royalties, interest, etc for those singles earning >$200,000 . TRANSLATION: a 3.8% tax on the capital gains from the sale of your home. Basically this confirms the rumor as we know it: those top earners will bear many of the brunt of mistakes from the past.

The Congress went on ‘break’ without passing the budget for FEMA! It was an oversight (????) and basically, if you are in a flood zone, and set to close before April 12 when Congress returns, you cannot close. Some lenders will allow closing, and some will not . So if you have a transaction in a flood zone, be sure to communicate with your lender quick, to see if this will affect you. At Patriot, we are covered on our transactions.

RATES ARE ON THE RISE- slowly but surely, as we anticipated, the Congress safety net for mortgage backed securities ended March 29. For the last week, rates have inched up slowly , about .25% total. What is more on the horizon to come? No one knows. Signals of recovery are still mixed (keeps rates low), while at the same time, it is obvious no one wants to buy our debt (tbill auction sales have been very weak- which is bad for the rates). We will continue to keep you posted.

One thing does remain the same among all this change! Patriot Bank Mortgage employs the best of the best loan officers and operations staff, and we strive every day to close on time, and even early! We can close in a min of 8 days (since we must allow 7 days for federal disclosures), and are very supportive of our local real estate community.

Looking for some guidance? I have an idea...

2010-03-12T16:47:00.001-06:00

Remember to set your clocks ahead one hour Saturday night! Spring Forward……..

This week’s update is short!

Ø Are you looking to build a team?
Ø Are you looking to implement systems in your business that are consistent , and generate (a) more leads, (b) raving fans, and (c) less working hours?
Ø Are you looking to net more income?

Patriot Bank Mortgage is sponsoring a FREE 2 hour seminar for our realtors on Wed, March 24th. My coach, Rick Ruby, is flying in from North Carolina to visit my office, and at the same time, is willing to spend 2 hours with YOU, to talk about how to run an efficient business. Rick is President of The Core (www.thecore.tv), and coaches lenders and realtors. He has a strong message, and is an expert at building successful teams. Personally, after 15 years, I thought I knew everything… But my systems seemed stale, and my team was at a stalling point. Now, with Rick’s help, my team is focused more than ever, and we are concentrating of creating raving fans out of our clients and referral sources!!!!!!!

Please consider joining us for this 2 hour event. I promise you, it will be worth the effort!

When: Wednesday, March 24 (2-4 pm)
Where: Holiday Inn Express, 1300 N Sam Houston (Beltway and 45)

Rsvp to us this week – space is limited. Just reply to this email!

Have a wonderful weekend and go out and enjoy this amazing Houston Weather!

Tick tock

2010-03-11T13:20:00.000-06:00

Only 50 more days until the homebuyer credit deadline approaches! That means that by April 30, your borrowers must have an EXECUTED CONTRACT, and can close as late as June 30 to receive the credit of either $8,000 (first time buyers) or $6500 (current buyers owning 5 years or more). That is only 8 weekends , which is when most people look for a home.

Daily I have questions from prospects and realtors if the credit will be extended? Well, that is anyone's guess of course, just like when will the rates start going up? No one knows. However, if your buyers are waiting around for the 'too good to be true' 2nd extension of an already miraculous gift, they may be sadly disappointed. Currently I have heard no rumors at all of an extension. Don't get left behind!

Life is full of surprises! Imagine my horror to hear that Whole Foods imports its 'organic' vegetables from China? This is about a year old in the news, but it just made it accross my ears. I have tried to be as organic or 'green' as possible, incorporating small habits in my life that will make a difference (I hope). So should I really be concerned about this China organic thing? Is it my own fault that I did not read the label that has been there clear as day? What other things am I not paying attention to? With the media, and internet , and countless information at our fingertips, it is no wonder consumers are confused. We have too many outlets, too may choices, it is just plain overwhelming. So imagine shopping for a mortgage !!! A referral of 2-3 trusted sources for mortgage financing is the BEST GIFT you can give your client. People you know, and trust , and have had good experience with before.

Have you interviewed your lender lately? This week I had coffee with a realtor that has known me for years, but never referred me. That's ok, because I knew he had several long standing , deep rooted relationships. I respect that. He receives my weekly updates, and recently asked me to meet with him. His story is a tragic one, of 2 loan officers he has trusted for years, and they each ruined a transaction for him. One client understood, the other held it against him because it was guilt by association. In each case, it was not necessarily the loan officers fault, but it boiled down to (a) lack of control, and (b) lack of communication.

So we had coffee, and Mark and I discussed past , present and future. He asked me tough questions. How many A+ realtors did I already have, and where would he fit in to all that? Did I have the time to service him too? Would I be working after the baby? (YES!) He also wanted to know about my team and philosophies of customer service. What could I do to help him grow his business? I was so relieved (and flattered) that he was giving me an opportunity to get to know me! (That is also why my weekly updates have some personal tid bits, so you can know what makes me tick). So again, have you really ever sat down and gotten to KNOW your lender? The ones you trust and rely on to give the best experience possible for your clients? Call them for a cup of coffee, spend 30 minutes with him/her and ask the questions that are important to you. Develop a list of questions your CLIENTS should be asking lenders before they hire them. Its not all about rate. RELATIONSHIP IS EVERYTHING.

As for rates, they are there, steady, and waiting for your borrowers to pull the trigger on that home of their dreams. There is LOTS of money, waiting to be approved.

The WHY? of things

2010-03-04T08:32:00.000-06:00

Lately, I have been playing alot of superheroes with my 4 year old, Diego. In fact, I think I may now turn into one. My choice would be Cat Woman, but I'm not sure how I would look in that tight black leather suit, especially 5 months pregnant. So its superheroes in the morning before school, and then the minute we get home, its superheroes again. So I happily endure, and play, even if just for 5 minutes, my sweetie is satisfied. His last waking breath the other night was ' Mommy, why does Wolverine not have hair? '. Well, because he has a mask on, that's why. 'I KNOW that Mommy , BUT WHY?'. Well, I was not sure how to continue that one, so I changed the subject.

WHY?????????????? Such a powerful word.

Why are there so many unemployed?? There are 4.6 million-that we know of, and on Feb 28, 1 million of those will run out of benefits. The $787 billion stimulus package was to create 4 mm jobs, and there have been about 2 mm created (source: Fox News). That is a cost of $393,000 per job.

Why are banks not lending to businesses? Could it be that they have no incentive to take risk at a 3.5% interest rate?

Why are more small banks going to the Fed's emergency 'window' to borrow short term/overnight funds at close to 0%? Could that be a sign of a yet weaker economy-the Fed won't say, nor release the bank names in fear of hurting consumer confidence.

Why is our economy not getting better? Could it be unexpected things like the meltdown of the Euro (being compared to the mortgage meltdown- since Greece is about to be downgraded for their credit. France and Germany hold much of their debt, so will they then fail? If you think the Euro economy has nothing to do with us here, think again. Or could it be the unexpected blizzard have destroyed business in the central US and East Coast, causing further layoffs? It has been said that the housing recovery will drive us out of recession. Well bring it on! The Fed is cautiously NOT rising rates yet, as they don’t want to further inflation. Mortgage bonds hate inflation, and if and when that happens, rates WILL rise.

So many ‘Why’s ‘ and so little time to answer them all. I think I would rather play superheroes.

Making the "impossible" oh-so-very possible

2010-02-19T16:58:00.003-06:00

This week I received some very valuable feedback from a realtor that said she got the feeling from reading some of my previous commentaries that loans are impossible to obtain, and it might discourage buyers from buying right now. (Thank you so much, you know who you are!). I welcome feedback always, so please don't be shy.

By nature, I am one of those 'people' that always finds the silver lining- positive outlook, and neutral ground. No wonder- I'm a middle child. So believe me, my intention has never been to be down on the home buying market. HOWEVER, I refuse to sugar coat the facts. And this could be mis-interpreted by some as negative. My goal is to acknowledge REALITY, and find a positive outcome, so we can get through these difficult times. I try to accomplish this by giving you, the realtors, information that is truly happening - Letting you into the world that lenders live in, so that possibly it can enhance our working relationship to continue to accomplish the dream of homeownership for our clients.

I've said this before, and I will state it again. THERE IS LOTS OF MONEY OUT THERE TO BORROW.......if.......you have (a) good/excellent credit, (b) can prove your income, and (c) have money for a down payment and reserves, and (d) if you give us time to work through any unique situations. Now that doesn't sound so hard, does it? Well, it still is challenging for many people, after a 5-6 year run of 100% loans, low documentation, and subprime credit programs. We have short memories. Some borrowers are having a hard time facing the reality of current times. Lending has gone back to the way it was when I entered the business in 1995, with a 'twist' of some extremes, but for the most part, conservative decision making. Now there are some unfair practices, I must admit (like the credit scoring system- please don't get me started). However, I'm just the messenger.

There are some borrowers that fall into gray areas (example: self employed), but we do try to work with them all we can. You may have to file on time taxes or even early, if you need 09 income to qualify. We may want an audited profit and loss statement. Every situation is unique. One borrower made a really great comment to me once. He was a business owner, and said that he found it hard to believe lenders cannot realize that the stability of a business owner is more solid that a W-2 employee. The business owner will do whatever it takes to save his business, and earn his living. Very good point, Mr. Borrower. But unfortunately, the purse strings (lenders) don't see it that way.

So as is my nature, I would like to leave you with a thought of something positive amidst this era of change and uncertainty: If it makes sense for you to buy now, do it. Get qualified early, to avoid any pitfalls. Be sure your lender (like Patriot Bank Mortgage) has several investors they work with, so that if you have a unique situation, there is a backup plan (hint: B of A, Wells, Citi, and Chase ALL have different guidelines for self employed borrowers). And if you cannot buy now for some reason (ex: don't qualify) - buckle down, save, and get your finances in order. Your day will come. But you won't know until you TRY. We will help you make a plan, and set goals for that home to be yours.

Enjoy the weekend!

Paper trails

2010-02-16T10:34:00.001-06:00

I am convinced we will never be a paperless society. This week I had several closings, and the amount of paperwork each year seems to have gotten larger and larger! HVCC added 2 documents to our application, and this year, the new GFE has added 4 pages to our application, and 2 pages to the title company documents. I wonder how many trees that is? So, paperless………… no way.

What about the paper created/wasted with all the foreclosures and short sales? Just imagine ALL that paper floating around, from realtor to bank, to appraiser to realtor to bank again. It’s amazing. And legislators are trying to save the consumers money. All this paperwork, and cost, and compliance, must come from somewhere. Do you want to know how? The end cost to the consumer eventually, if it has not already, will be passed on to the consumer. Higher fees, higher rates, or a combo of the two.

The stock market rallied a lot this week, and for reasons you may not expect. Greece is on the brink of a financial collapse. Who would have thought? And the news of the EU coming to its aid affected the stock market as much as 4% as stocks rallied back and forth with mixed emotions at the news. China announced it will tighten its lending guidelines to slow the country’s economic grown and avoid inflation. Stocks did not like the news – good news for bonds. US treasuries were not well received at the auction- translation- no one wants to buy our debt! Maybe ‘no one’ is a strong word. Weak demand might be better said. So this week we had a lot of ups/downs. The takeaway here is that there are SO MANY factors that determine interest rates. When your time comes (or your clients) to commit to a lender and lock a loan, they should not ‘dily daly ‘ (as I tell my 4 yr old)- they should lock, and forget about the potential emotion of the thought of a lower rate.

An interesting headline for you that was on CNN Money this morning: “Eight million in assets-and can’t get a mortgage”. Some statistics that you may find interesting: 12% of US mortgages > 1 mm are delinquent. That is triple of one year ago. Assets don’t count for much anymore. Jumbo lenders are skiddish. It’s all about credit, equity, and ability to repay (monthly income). Assets come and go. People spend money (what if this borrower decided tomorrow to give all his money to charity? Money is gone………so we look for monthly income (that is likely to continue) for purpose of debt to income ratio. Tax returns, and full disclosure. We really want to know.

For My Realtors

2010-01-22T17:11:00.000-06:00

This week’s update will be dedicated to the ‘ones I love’ (realtors). In the spirit of working together, and making transactions smooth, here are some tips for the New Year. You can call it ‘Survival in 2010’ if you like!

APPRAISALS (HVCC)
Yes, it’s still in effect, and no sign of a moratorium. Did you know that Patriot has its own ‘short list’ of appraisers that we choose from? We do NOT use Appraisal Management Companies (AMC’s) as does some of our competition. AMCs pad fees, and they pad turn times on appraisals. Beware.

TIP: Interview the lender once you receive the approval letter! Whether you are the buying or selling agent, you have the RIGHT to know!

Sample Questions to Ask a Lender:
· How does your company order appraisals? Do you use an appraisal management company?
· How many days on average to receive the appraisal once ordered?
· When will you order the appraisal?
· What are your underwriting turn times?
· Do you release documents early on average? How early?
· How many files does your processor work on at one time?
· Where does the loan get processed? Local? Out of state?
· Where is the loan underwritten?
· Are you a broker or the lender?

CONDOS (not Townhouses)
Investors, first time home buyers and empty nesters LOVE them! Lenders cringe at them. This is because condos are a haven for foreclosure. Heavily investor-owned, it is the first investment to go bad, especially when dues are not being paid and the property begins to deteriorate. We have seen this happen in Houston! There are entire buildings around town that were foreclosed upon as the result of ‘straw’ buyers and dishonest developers. You know which ones they are.

Questions to ask the HOA at the time of listing OR if you are buyers agent (before showing) ****if we wait until contract, it could be too late, and buyer and seller have wasted their time – not to mention you!

· Owner Occupancy rate (50% for FHA, 70% for Conventional)
· Are >15% of the owners delinquent on HOA monthly dues
· Is there a min. of 1 mm fidelity bond insurance in place? (***this is addressed on the ‘master’ policy, and can often be missed until closing **)
· Are there and pending lawsuits (if so, what are the details)
· Does the budget allow for deferred maintenance (meaning….there is none, right?) *we will want to see reserves on their operating statement too- to avoid deferred maintenance
· Does more than 1 entity (aka, person, bank, etc….) own >10% of the units? **Bank foreclosures are NOT exempt from this equation!

DEBT TO INCOME maximum allowed is 45%
In the heyday, we could go up to 65% debt to income ratio if the client had 10% down, and an excellent credit score. That is taken from gross income! Very generous indeed. Then last year, that went to 20% down in most cases. Well, as of Dec 12, it is 45% debt to income, regardless of who you are, or how much money you have in the bank. End of story.

But good ole FHA is still our friend at 55%, at least for now.

Tip: Buyers to get qualified EARLY, EARLY, EARLY! But you already knew that!

GOOD FAITH ESTIMATE (GFE)
The joys of change... The biggest take away is that now the good faith estimate discloses ALL charges, no matter who pays them (buyer or seller). So at first glance, and left without interpretation, the buyer can be in the dark and confused and hesitant to buy the home.

Tip: Ask questions to the buyer, or be prepared for their questions.
· Did they know that a good faith estimate will not likely be given until they are under contract?
· Have they received a ‘cash to close’ and/or a ‘monthly payment’ summary in conjunction with the good faith estimate?
· Prior to having a contract /property, they will get a summary, likely called a ‘Fee Worksheet’ (just a change in terminology)
· They need to be prepared that they will not receive fees/rate unless they have given the lender documentation and pulled credit
· Rate is 90% dependent on credit score! (a lender credit score, NOT a ‘myfreecreditreport.com’ credit score )

I hope you found this information helpful. Enjoy the glorious weather, and as always, you can count on us for all your mortgage questions!

All shook up

2010-01-20T10:33:00.001-06:00

For the last 2 weeks, my papers have been piling up at home. “Why have I not read them? “My husband asks, saying that I am wasting money. The truth is, I have not missed much. Do you ever get that feeling? Maybe it was the holidays, or maybe I just needed a break, to get that feeling of newsworthiness back again. I think I’ll start reading tomorrow and get back on track.

I even went online to cruise msnbc.com, and I still feel I not missed much. However, the earthquake in Haiti is horrible and my heart goes out to those people. Is it a sign of global warning? All this extreme weather is making me nervous! Does this have much to do with mortgages? No and Yes. Feelings and the habits of traders are what make the bond prices go up and down.

This week, retail sales showed that 09 dropped -6.2 total, and furthermore, unemployment is on the rise, higher than expected. A total of 4.6 million people. In addition to that, there are still 10 million that have part time jobs that want full time jobs.

As long as the unemployment is high, and other economic factors look grim, the FED should keep rates steady. They have a difficult game to play, and not rising too soon, or the economy may tumble. But be careful what we wish for. Economic recovery and good news will surely bring higher rates, and probably quickly.

As we have said before, the time is now. I do feel like somewhat of a broken record, but it’s true! Have your clients get their finances in order, talk to a lender immediately and run their credit (did you know that the score on Equifax online is different than what a mortgage company generates? Drastically different! We are measuring risk of you defaulting on the mortgage. Equifax is not. They just spit out a general score to ‘satisfy’ the curiosity of the consumer).

Enjoy the weekend, and call us when you need anything at all. We remain your trusted friends in the mortgage industry!

Welcoming the new year

2010-01-13T12:05:00.001-06:00

Looking back on 2009, I wore many hats other than the obvious loan expert: marriage counselor, lobbyist, financial advisor, mediator, and I am sure there are others not listed here. You see, in this new real estate environment we live in, it has forced a new set of standard for us professionals. We need to truly be experts in our field. We need to anticipate, forecast, and work together more than ever before!

January 1 produced new legislative compliance changes for lenders and title companies. The result: The good faith estimate has gone from 1 page to 3, and if left on its own with no explanation, will leave the borrowers confused more than ever before. Even experienced ones! But don’t have fear- embrace the change! Some good will come out of this, I just need another week to think of what it is! Really, we will adjust, and all will be fine in a few months. The takeaway here is that it is IMPERATIVE that you EDUCATE buyers like never before to get with a lender early. Know the lender, like the lender, and trust the lender, because once they have chosen, it is very difficult to change without closing and monies being affected. So choose wisely.

Rates have started to rise. Some say that in the final countdown to March of the government waning down the purchase of the mortgage backed securities, that it has already started. Once we see the ‘true’ and ‘unsubsidized’ rates….what will we find? I have heard many predictions, but 6.5%-7.0% seems to be sticking out more than most of what I hear. Who really knows?

This year, 2010, look for continued regulation of lenders. We will see fallout like never before. Lenders that will not survive, due to financial constraints imposed by the FDIC, HUD, Fannie Mae, and others. More reason for you to know your lenders, and fine tune your list of trusted mortgage professionals now.

At Patriot Bank Mortgage, we are owned by a regional bank, Patriot Bank. We are stronger than ever, and have the financial net worth, and cash to meet the stringent requirements surely to come. Our goal for 2010 is to give the best service ever, create raving fans of our clients and realtors, and become the best mortgage company in Texas.

The best is yet to come……………..and I look forward to seeing you at the top!

Understanding Change

2009-12-15T13:25:00.001-06:00

My closest friends have told me that I have chilled over the years, and that my college nickname of ‘wiggie’ might no longer apply. However, lately, the feeling has resurfaced. Today, I attended a training for the Jan 1 changes that will take effect in our industry regarding the good faith estimate. Lenders and Title agents have new forms, new rules, new deadlines, which boils down to one thing: CHANGE. It will be cumbersome, unfamiliar and take time to retrain staff, clients, realtors, and title agents. We will get through it, that is for sure. Yet another reason that I advise my realtor friends (such as yourself) to know and love your lenders (like me!). We will hold your hand, coach your clients, and be sure that every detail is uncovered to a tee, and assure the transaction closes on time.

RATES have been low! It is hard to pinpoint one reason why. Who can keep up? Could it be that the media is so consumed with Tiger that they don’t blast economic news for traders to overreact? Or is it our plight in Afghanistan? Or that Goldman Sachs will not pay bonuses (cash) this year, but replace them with stock, a sign that the industry is regulating. Or that the FED will keep rates low for the near future? There is so much news in one week, it is hard to say. What I do tell clients, is that change is inevitable. Rates are low, prices are reasonable, and the time is right. Take the low rates for what they are, and Let’s go!

I’ll be finishing my shopping this weekend, hard to believe its almost Christmas! Whatever you will be doing, stay warm, and relax. You deserve it!

The Best is yet to come!

2009-11-16T09:38:00.001-06:00

Have you had an AHA moment lately? Well, I just had 10 of them. As I sat writing on this wifi laptop at the JW Marriott in Orlando, Florida, taking in a gorgeous sunset, I renewed my purpose in life, in business and to the planet. My goals for 2010 are set, my vision is clear, and execution is on the horizon.

In case you are wondering, I just attended the CORE seminar (thecore.tv) for Realtors/Lenders this past week. A group of high producing, driven producers, that have the inspiration every 6 months at these 'summits' to do better. Do better for my clients, for my team, for my company, and the planet. We watched clips from 'Pay it Forward' and 'Braveheart.’ We discussed how to create relevance and purpose. We shared strategies to build better teams, delegate, and take control of our day. We talked about feelings, and about when we die, what will people say about us?

We all need a spark, an inspiration. You may find it in a seminar, a mentor, a book, or a movie. Whatever it is, own it. THERE IS NO TOMMORROW. SUCCESS IS NOT AN ACCIDENT. And most importantly, EXCUSES ARE UNACCEPTABLE.

Have a fabulous week, and may we continue to work together toward our continued success and prosperity, whatever you define that may be.

The Credit is Officially Extended!!!

2009-11-10T11:35:00.001-06:00

If you are a Desperate Housewives junkie like me, you would have seen last week when Lanette Scavo busted her husband cheating on his college mid term (he went back to school at 40). His response was how is that different than her not telling her boss at a recent promotion that she is pregnant with twins? This show is soooo juicy! Then, his next statement made me wonder .................Sometimes we are all doing the best we can in order to survive. Well, isn't that the truth! However, where do we draw the line? Whether telling a white lie to your toddler that the Halloween candy is gone, or the teacher that the dog ate your homework, or that you cheated on a spouse, or forgot to tell your husband about the 50K in debt you have accrued on your private credit card, or that your income is $10,000/month on your mortgage application (the old stated income). Isn’t a lie a lie?

This is certainly an interesting debate. I bring it up, because of the mixed signals that exist in our society every single day. Including the ones we (the lenders, Fannie Mae, legislators) are creating with new rules an regulations. Reward in one category, punitive in the next. I could give you examples, but you would stop reading, the list is so long. How quickly will we forget this mess, and recover, and begin to live again as we did in the past. Should we, would we? I love to keep you hanging.

The First Time Homebuyer Credit has OFFICIALLY PASSED. No more Nov 30 deadline. It is now extended to April 30th (signed contract) closing by July 2010. The income limits have increased. Now you can be a single wage earner of $125,000, or household of $250,000. The max purchase price is $800,000. And now, if you are a current homeowner, and have been in your current home >5 years, you can get up to $6500.

The Federal Reserve this week left rates unchanged. They hold at 0 - .25%. There is fear that the economy really has not turned around yet. Well, one would think after the unemployment numbers jumped last month. I personally believe the worst is yet to come as unemployment benefits run out (despite the recent 20 week extension), and people cannot make mortgage payments. I believe the Spring will be difficult as well. More foreclosures and short sales, just what we need. Actually, I prefer foreclosures. Short sales, however, take 4-5 months for the contract to even be accepted! That takes patience.

Rates are low. Check out the 5/1 and 7/1 ARMS. Perfect for borrowers that will be in their homes less than 5 years. Get them while you can.

We are about to close a loan in 14 calendar days. I just received a frantic call here at my desk on a Saturday. What are the chances I would be here? At Patriot, we can do that: close quickly, service your customer. Large enough to serve you, and small enough to know you.

We're all doing the best we can

2009-11-02T09:13:00.001-06:00

This week was brutal. From a personal standpoint, I have a loved one with cancer returned, another loved one pending foreclosure in NJ and unemployed for 1 year, and my assistant fell down the stairs taking the mail in our building. In the midst of complete personal, emotional chaos, I was once again reminded of those things I hold most dear. My reason for bringing this up, is that we all have our personal ups and downs, good days and bad, but it is those persons we surround ourselves with, personal as well as in business, that will get us through all challenges. If you are on this email blast, it means I am grateful for you!

The small gestures are the ones that count. I would like to extend heartfelt thanks to a realtor (you know who you are) that assured me yesterday, that he knew that if anyone could close our deal (that almost blew up), that I could. He knew I was working hard, and had faith that I would try my best. You made my day! I so needed that, you have no idea. Isn't that what we are all doing, the best that we can?

Speaking of best we can. It is all we (the lenders) can do to keep transactions together. I read a blog yesterday that was (so) true: Why is the government still trying to push low to moderate income households through (ex: FHA, 3.5% down, 620 credit score, 55% debt ratio, and seller closing cost credit), when there are many well qualified persons that can barely get by on approval, if at all. So many twists and turns, verify this and that, blah, blah, blah.
The latest policy change in mortgage that is , in my opinion, HUGE, is that we have to audit via the IRS EVERY CLIENTS' tax return, and if they are married, and the spouse is not on the loan (let’s say they have bad credit), and we pull the audit with IRS, and the spouse has negative income from a business they own, for example, we have to deduct that from total income. FULL DOCUMENTATION has a new meaning, and mandates full transparency. In every way. But oh, wait, you have perfect credit, and one little $60 collection with Time Warner, and your credit score lowered to 619, Sorry, no loan for you. Give me a break.

The first time homebuyer credit is in the House, yet to be approved, but hanging by a string. If passed at its current proposal, it would extend to contracts executed to April 15, Income levels to $250,000 household, and available up to $6500 to NON first time buyers. Lets wait and see………

What is the market doing? Rates rallied hard this week, but ended on a positive note. Unemployment is still depressing, and home sales declined for the first time in months. The t-bill auctions ended on a sour note Thursday. By the way, this was the last round of 3, 5 , and 7 year tbills that will be gobbled up by the US Government (buying their own debt). We should be thankful, you know. Because it is that one move, that has kept rates low. We should be thankful, folks.

Learning from our mistakes

2009-10-13T13:51:00.002-05:00

Have you seen the video from the season premiere of the Oprah show, where the audience that covered 2 blocks danced in unison to the Black Eyed Peas song? It is now in the Guinness Book of World Record as the largest crowd performance. Way cool. Look at it on You Tube. Will the USA get into this Guinness Book as the country that couldn't even get along? Imagine the possibilities if we did all get along, as this crowd did on the Oprah show. Currently, our country is severely divided by bipartisanship, and it does not feel good. Government against Mortgage, Lenders against Appraisers, Bank against Builder, and Homeowner against Taxing Authority, ........catch my drift? The list goes on and on. It was refreshing to hear yesterday on a morning news station, Former Governor Jeb Bush (R) say nice things about our President. He was encouraging both sides to get along. It was a really nice interview, and he commended Obama on his desire to strengthen education. Its good we all have opinions, but there has to be common ground.

Same rules apply in the mortgage industry. Daily, we are being bombarded by new regulation that is 'guilty until proven innocent'. But how could we not be? We are the industry responsible for the largest meltdown in US History. Just yesterday, a Houstonian woman, 32 years old, was convicted of conspiracy to commit wire and mail fraud, money laundering, engaging in a monetary transaction in criminally derived property. Do you know how? By stating the homes were primary residences, when they were not. They were really investment properties. She faces over 20 years in prison, on each count. This is serious stuff friends. We must continue to be careful about what we represent, and how the clients are conducting themselves. It is our business to know, as lenders, as realtors. Its our duty to ask.

Interest rates have enjoyed continual low levels UNTIL YESTERDAY. Our analysts predict they will never get this low again (we saw 4.375% last week for 2 hours). We have had 2 days of increases, and at least 3 reprices a day for the worse, as the stock market has gained some ground with positive earnings, lower than expected unemployment. Just remember, mortgage bonds hate news of recovery.

Values (in some areas) continue to decline. We just had a borrower, that their home in Needville has declined in the 4 months since they began to build (Needville is south of Sugarland). By 5-7%. That is a lot in a 4 month period. Appraisals continue to attract scrutiny from our investors, and that transposes to more stringent underwriting guidelines.

There is still no word on the First Time Homebuyer Credit being extended. Likely, we will not see that until the current deadline has passed. In order to keep the momentum going for year end. Strong numbers. Isn’t that what its all about? Temporarily inflating our sense of security so we can have profits now, and put together the pieces later? When will we learn?

Some Consumers Still Don't Get It

2009-08-07T06:31:00.000-05:00

Let's get to the point. This morning's release of unemployment (down from June) and payrolls up did not help things either. Once again, giddy investors trying to look for the silver lining to make themselves feel good about investing in the stock market. So once again...they pull their money out of bonds to invest in those stocks. This makes bond prices fall, as they want to attract more buyers with the low price, and yields (rates) go up on those bonds. Hence, there you have it, the mortgage backed securities are affected. Yesterday we had a reprice 2 times, and today already once.

So what is the takeaway? How about I explain it like this. I had a prospect email me yesterday and linked me to a graph (from the internet) of what the benchmark 30 yr fixed 'potentially' could do in the next 9 months. He is nervous. Doesnt know if he should buy. When? How can he assure himself the best rate?

He had asked for my opinion, so I gave it to him. No sugarcoating. In the nicest , most diplomatic way I know how, I implored him to consider that this was the home he was going to raise his family. Spend his free time, throwing ball with his kids. This was NOT Vegas, and trying to play the market by estimating the exact time to get in on a 5% rate was surely setting him up for disappointment. Surely. And further, that anything under 7%, historically speaking, is a gift. So in summary, I advised him to make an offer when the timing and the price seemed right for his family, and not to gauge it on what rate he thinks he will/will not get . Rates will increase. That is a given, with inflation surely soon to set in.

I'll end this weeks thoughts with a short story. I had a friend call me about a refinance. Her husband has bad credit, so the loan has to be in her name (she has 700 score). But she has no job. Husband earns cash, and deposits in her account. She recently went to get a car loan, and they gave it to her, without checking the employment, and thought surely this meant that now she could get a mortgage by just verifying deposits to her bank account each month, and 'saying' the job was hers. At first, I was not sure how to respond, thinking it must be April Fools day. But then very politely, and patiently, I said that (1) we cannot verify cash , and (2) It was not willing to mislead my employer about her work history when that was not true (aka: Fraud!= Jail).

Takeaway on this short story? SOME CONSUMERS DONT GET IT. So rather than wondering if they qualify or not, get them to us EARLY for pre qualification. That way we can set the record straight early on.

KNOW AND LOVE YOUR LENDER

2009-08-01T06:34:00.000-05:00

Hmmmm. What to write about on a Friday afternoon at 3:30? The fact that I survived the week? Or the ‘new’ regulation that began yesterday that no lenders can figure out, because it keeps changing? Or the fact that appraisals are a sore topic of discussion for us on a daily basis? Can anything go right? Yes it can….mortgage backed securities enjoyed a nice rally today as GDP was released, showing companies are hiring, economy may be stabilizing. But wait! Usually this type of news makes rates go up. We don’t like good news! But trailing behind the horizon is news that consumers still are not spending. The bitter doom and gloom that the bond market loves, at least for today at 3:30, rates are attractive. Monday may be another story.

Thought for the weekend: KNOW AND LOVE YOUR LENDER. In these legislative times, and with regulation changing constantly, it is more important than ever that your clients know and trust their lender. Do I need to say more?

What I am seeing in the Real Estate Market

2009-07-24T13:26:00.000-05:00

The term 'be careful what you wish for' is so overrated.....but true. Stocks and bonds were mixed this week. With good news of the earnings reports for some companies, and increased home sales, mixed with the bad news of unemployment, a jobless recovery and health care reform battles, NO WONDER bonds did not know how to price mortgage rates!

I did see a glimmer, and I mean glimmer, of 4.875% on Wednesday, for about 90 minutes. Then it was gone, as quickly as my winnings in Vegas last summer.

What am I seeing in the market? Lots of contracts, lots of backup offers, increased close times, so-so quality on appraisals, increased documentation from our investors, lots of review appraisals, longer underwriting times, lock extension fees, and volatility in rates. What else is new? This is the world we live in folks. And it may get worse before it gets better.

Ongoing advice to you is COMMUNICATE, and do it early - with everyone in the transaction. If you are not a list maker, BE ONE. If your client refuses to get pre approved early, THINK TWICE, and if you sense something does not seem right with a lender, title co, etc, ACT EARLY. And last but not least, BE FLEXIBLE. Your closings will be delayed when you least expect it. Advise your sellers not to move out until docs are at title, and don't let your buyers schedule movers that cannot be changed either. THIS WILL HAPPEN TO ALL OF US, even with the best intentions. Even when we are all on top of it. Something will come up, I promise you.

Tips to survive the recent TILA changes effective July 30

2009-07-13T13:18:00.000-05:00

Let me preface the next paragraph by saying that Patriot Bank Mortgage is committed to the success of your business! We have been embracing changes as they happen, so that we can ease the transitions and complexities of the real estate industry as we know it today.

Now, for the news. On the heels of the HVCC (appraisal) changes we saw May 1, we now have disclosure changes that affect how mortgage companies will have to disclose to consumers. HERA (The Housing and Economic Recovery Act) was passed by Congress and the Federal Reserve to provide a more transparent, level and fair regulation of the real estate industry. These additional steps (effective July 30, 2009) are to help avoid deceptive lending practices:

The earliest a home purchase transaction (with a loan) can close is 7 BUSINESS days after the homebuyer is issued his initial truth in lending disclosure from the lender. M- Sat are considered business days. ·

Application fees cannot be collected until the initial disclosures are received (this could delay appraisals being ordered) ·

ANY change to the loan amount (ex. Sale price), days of interest, or fees (that all affect the Truth in Lending disclosure) , will trigger a new 3 day disclosure and waiting period until the transaction can close. Hence, last minute changes to the contract, or change in closing date from initial application, ‘could’ (not always) impact the closing date.

Tips to ensure timely closings: ·

Set realistic expectations with listing agents, seller and buyer for potential closing dates)- 30 days min . is a ‘wise’ choice·
Be sure the lender and title company are in contact as early as possible in the transaction. Title and mortgage need to work together on fees/disclosure , etc more than ever.·
Be sure homebuyers understand that if their loan is not locked until later toward closing (if they choose to float), this could impact the APR, and therefore trigger new disclosure 3 day period, therefore delaying closing. Borrowers should NOT expect to be able to float down their rate or switch lenders last minute. This would trigger close date changes for sure.·
Be in constant contact with the lender, and ensure title/lender have a ‘preliminary’ HUD 4 days prior to closing, in case a new TIL disclosure required.·
Make changes to the contract (lowering price, seller credits, etc) is done as EARLY as possible, and that lenders have those amendments asap, so they can redisclose early.

In the Chronicle, July 15, business section, Scott Burns had a wonderful article titled ‘Buying a Home Takes a Miracle’. He sums it up nicely in the last paragraph : “There is no way you can accumulate enough paper to substitute for human judgement. The No Paper System did not work, It created the housing crisis. The Infinite Paper system that replaced it doesn’t work either. It will extend the crisis. Scott, those are wise words. Only time will tell. We have no choice, Jennifer, but to embrace this change, and hit it head on with changing the way we do business. We must be more tenacious than ever, and encourage team work more than ever as well.

No Democracies with Fannie/Freddie - Happy 4th!

2009-07-03T23:20:00.000-05:00

May you enjoy and cherish this precious day, and remember what a gift FREEDOM is! We are so blessed to live in a country with the ideals of independence and democracy. The thought of managing 302 million people is overwhelming! No wonder our legislators cannot agree. But that is the beauty of it all! We need balances, so that we can continue to function as a democracy.

As for the mortgage industry, no democracies here! It is Fannie /Freddie way or the highway. We continue to see increased regulation, silently trickling into our everyday lives. More disclosures. More verifications, and ultimately, more cost to the consumer. That is what ultimately will happen. In many cases, it already has.

Why do we think the rates are not lower than they are? If they followed the 10 year bond as in historic past, the yields would be below 5 for sure. But investors are tired (not to mention poor), and they are not going to 'give it away' this time around like they did in 03/04 during the last rate craze. They want profits, and they want them big. What we have seen is a 'no mercy 'attitude from our lenders. No exeptions, no forgiveness, no anything. It is brutal, but we are managing and shielding this from our clients as much as we can, to continue to ensure a stress free transaction!

This weeks letter is short, and as promised last week, more information on the July 30 changes is coming in my next letter. This week was crazy with month end and I dont have all the facts yet. I hope you are off somewhere fun , and relaxing.Until next week.........

$8,000 First Time Homebuyer Credit- as good as it seems?

2009-06-26T22:09:00.000-05:00

If you read the paper, you will have noticed on Thursday in the Chronicle Business section the article stating ‘A break for first time homebuyers ‘. Well…….there is a catch. Isn’t there always? Last month, the legislators came up with a feel good plan for buyers to access this $8,000 before they actually earned it. What a shocker! They now made it possible , in theory, for buyers to access these funds for closing costs (only) when they buy the house, not having to wait until next spring when the return is filed. The issue since this was released is ‘ WHO’ is going to forward this money? No agencies have really stepped up. There have only been a few. So as of this week, the State of Texas (via the Texas Dept of Housing and Community Affairs – TDHCA), will make that possible. BUT WAIT!!! Let’s look at the fine print. First, it says ‘some ‘ of the tax credit. Second, only 700 borrowers for the first wave of approved money. And thirdly, the most important, is it has to be paid back within 90 days to remain interest free.

Well, let me give you a hint here. If the people using it today for buying a home could afford to pay it back within 90 days, do you think they would take this in the first place? So what we will have is yet another quagmire of a government agency earmarking some federal money to this program, in hopes people pay back in the 90 day period, and when they don’t, the program will freeze because they have no more money to advance.

I am not sure you really want to know my thoughts about this. But I’ll give it a shot. You can stop reading if you want to. WHY CANT WE ALL JUST BE COMPLACENT WITH THE DELAYED GRATIFICATION OF ‘ FREE’ MONEY IN 2010? Why do we have to look for ways to get ourselves in trouble with borrowed/advanced funds, yet again?

Rates are down this week! Hip Hip Hooray! The reason? Do we really care? Soon enough we will own the bragging rights of having an interest rate below double digits, or won’t we? That remains the million dollar question. In summary, they are low, so get out there and spend it.

Home Valuation Code of Conduct - ACT NOW!

2009-06-19T21:50:00.000-05:00

This is a SPECIAL EDITION , and the most important column I have ever written. The integrity of the appraisal process as we know it has been severely, and I mean severely, compromised.

All of you realtors have likely already been affected somehow if you have closed a loan since May 1, when HVCC (Home Valuation Code of Conduct) became our reality after a very persuasive New York Atty General persuaded Fannie and Freddie to amend their guidelines to his personal gain- winning a case. You need to forward this to ALL YOUR CLIENTS, past , present, and future. The people that the legislators will listen to are the homeowners (not the realtors, nor the lenders, who’s income is dependent on the process. Not to mention lenders/loan officers are taboo now anyway, in their eyes). So if you are not selling a home today, you will be, and this will most certainly affect you! So consumers need to take action now! And of course if we do, it won’t hurt.

THIS IS HOW YOU CAN MAKE A DIFFERENCE!
NY Attorney General Andrew Cuomo's Office: (212) 416-8000,
Internet ComplaintFederal Housing Finance Agency (FHFA): (866) 796-5595, director@fhfa.gov
Fannie Mae: (202) 752-7000, headquarters@fanniemae.com
Freddie Mac: (703) 903-2000,
Also, please contact your local TV and Newspaper outlets.

Below are talking points and background information to assist in your conversations. Please remember we are all professionals and should conduct ourselves accordingly in any communication with the above parties. For the most successful and influential calls, it is important to concisely quantify how the HVCC is affecting your consumer and your business.

Talking Points:
1) National Assoc of Mortgage Brokers (NAMB) conservatively estimates (breakdown below) that the HVCC is costing consumers over 2.8 BILLION dollars a year in extra fees, created by long delays (extended lock-in fees) and higher appraisal costs.
2) Unregulated Appraisal Management Companies (AMCs), who have been the subject of several misconduct investigations, are the centerpiece of the HVCC. The original Cuomo investigation involved a federally chartered bank and an AMC.
3) AMCs are driving honest appraisers and mortgage brokers from business, eliminating competition, increasing costs to consumers and reducing state revenue. The HVCC is causing significant delays in real estate transactions, hurting real estate agents, title companies and other third parties reliant on turnaround time.
4) HVCC does nothing to reduce fraud, as it legitimizes the same failed model, which was the subject of Attorney General Cuomo's investigation.
5) No Portability! Consumers are "trapped" with a specific lender. If a better deal becomes available with a different lender, the consumer is forced to pay for another appraisal.

Background:
I. Lack of Portability
A. Lenders are not allowing borrowers to transfer appraisals, regardless of the reason.
B. Forces the borrower to pay for another appraisal and wait for a new appraiser to be assigned and complete it, increasing the total cost and time needed for obtaining a home. Delays in turnaround times also cause the borrower to miss rate lock deadlines and possibly face penalties charged by the lender.
C. In a poll conducted by NAMB, 75.8% of respondents said that 0% of their appraisals are portable since the enactment of the HVCC.

II. Lack of Quality
A. AMCs are assigning appraisers from a different municipality, county, or even state to appraise the target house, therefore unfamiliar with the neighborhood and unable to produce an accurate appraisal. i. Because of this, the HVCC is forcing appraisers to be in direct violation of the Uniform Standards of Professional Appraisal Practice (USPAP) for jurisdictional competence.
B. Because AMCs pay appraisers such low fees, those assigned appraisers willing to do the work are often inexperienced and fail to adequately appraise the home.

III. Increased Cost of Appraisals
A. The minimum increase we have seen in direct consumer cost is $150 per appraisal. That, coupled with the drastically increased appraisal turnaround times that impose extended lock periods at an average expense of $561.95 per loan, is now costing consumers an estimated additional $711.95 per transaction.
B. $150.00 - minimum increase per appraisal$561.95 - average loan amount of $224,778 at .25% for extended lock period$711.95 - average total increase per transactionx 3,870,552* - 2007 HMDA report of residential real estate loans originated$2,755,639,496 - $2.8BILLION in increased fees to consumers!

IV. Articles Illustrating the Effects of the HVCC
A. The Appraisal Bubble - The Center for Public Integrity
B. The Cure is Worse than the Disease - Appraisal Press
C. Appraisals Roil Real Estate Deals - The Wall Street Journal Feel free to forward these articles and/or reference them in your conversations

Will mortgage rates go back down?

2009-06-09T07:51:00.000-05:00

It feels like summer ! Not only is school out and the traffic is eased up, but it feels like summer! The glorious hot days dear to Houstonians are officially here. So are the home buyers! We continue to see contracts pending, and inventory lessening. Thank goodness! There are still, however, some appraisals that come back with inventory at a 6 mo + supply. To lenders, that means a ‘declining market’. And beware that if your listing is in such an area, the lender may have some additional conditions, or may not even do the loan at all. That’s right, declining markets are not favorable. The reason? If we foreclose, we don’t want large marketing times to get rid of it! It also signifies a trend downward in prices. No lender wants to be on the top end of the market. So encourage your sellers to consider all realistic offers. I suppose realistic is the main catch here. Who knows in these unprecedented times? There may be other reasons, but that is the main concern.

The First Time Homebuyer Credit – in all its glory, has to be the most confusing legislation there is right now. No one is clear on what, how or when. The latest rumor is that FHA will allow the moneys to advance for down payment. Part of it is true, but keep reading. Our representatives on Capitol Hill have no idea what has to happen to ‘advance’ a tax credit to a homeowner. Who will check if they are delinquent on any federal debt? Who will advance the money (a HUD memo states it has to be a ‘3rd party’, certainly not them). Ok, then who? Is it really a good idea to advance money anyway before its spent? Isn’t that what got us in this mess to begin with? And then, the legislation just last week changed yet again, and now FHA loan purchases can use the money ONLY toward closing costs, not down payment. Again, WHO will administer this money? No lender thus far has jumped on this idea. So the opportunity may be there for your buyers, but they need to settle to the fact they will get it upon filing 2009 return. Not too much to ask for free money!

Interest Rates – are still low! Maybe not the 4.5% of last month, but STILL historically, low! As compared to 2 weeks ago, almost up a full point! Why? Good news in the market. Could it be from the good news to investors that Angelo Muzilo has been charged with Fraud, and that gives them a ‘temporary’ feeling that the culprits are about to be caught? Or could it be that banks are to pay back tarp money? Or maybe the ‘come clean’ speech to Muslims by our President in Egypt last week. I would have thought that the unemployment doldrums would have shocked rates back down…but no such luck yet. Rates also have gone up due to positive indicators in the market. Words from our legislators and commander in chief like ‘not as bad as it was’, or ‘the recession end may be near’ ……those types of words allow investors in stocks to feel like buying. When they buy, investors pull money out of bonds. Then bond rates go up, as the price is down to attract buyers back into the bond market.

Will rates go back down? – THAT is the million dollar question. Who knows. But inflation and higher rates is INEVITABLE. Take my word. My advice? If your buyers are holding out for rates to come down, or purchase prices to come down, they may be missing the boat on living in the present. Our (primary) homes are where we raise our families and share time with loved ones. If it makes sense, do it. If not, wait. But hanging on for a false sense of reality may be missing the boat on opportunity that is right in front of them.

Beumont Appraiser to Valuate a River Oaks Listing

2009-05-16T06:34:00.000-05:00

This is Major Hernandez, reporting from the enemy lines. Lots of activity this week. We were shot at by underwriters, dodged by appraisers, and yelled at by our processors. JUST KIDDING. It is sometimes a war zone though! Mostly from some of the recent regulation passed down (my previous emails have mentioned the appraisal changes). I thought this week I would summarize for you the day in the life of a mortgage originator. Maybe there will be one tidbit of information you can use to help your clients close on time!

Here is a summary of what happened this week:·
Clients current lender (the FDIC) offered a 15% principal reduction if he would refinance within 30 days !·

Rumored by one of my competitors that underwriters no longer accept a non realty add – THIS IS WRONG……·

Mortgage Lender (remaining nameless) is turning away clients saying 90 days min processing time to close – actually 2 (hint: they are in the top 5 national lenders)·

Seller rejects pre approval letter from buyers mortgage company because fear they will not close on time (one of the national lenders mentioned above)·

Realtor I know gets a call from an appraiser (not mine!) from Tyler , TX (this is a true story)·
Prospect calls me and asks if we do liar loans- IS HE KIDDING?·

At closing, we discover that borrower quit his job (we always call the day of closing to the employer!!!) HINT: don’t quit job day of closing·

We saved 2 borrowers from losing their close dates- and closed their loan in 7 days! (the first lender dropped the ball for the last 6 weeks). Hard to do in this market!

Well, at least I can say my job is interesting. Actually, I love every minute of it! So please, if you have a client that needs a trusted mortgage lender, we are your answer. Thank you for your referrals!

There is a Rumor that the Mortgage Appraisal Process is Deteriorating

2009-05-07T06:31:00.000-05:00

Just great. As I write this, I have full blown laryngitis and bronchitis pending if I don’t behave. So if I seem chatty, it’s because I am just longing to speak to someone. Why did this happen to me? Is it because I only sleep 5 hours a night after being on the computer sending pre approval letters? Probably. Or that I am closing 4 times the loans this month than normal? Probably. I am just venting, not looking for sympathy, but want you to comprehend that it is busy! I don’t care what Barton Smith says. Houston is rockin. Whether you are purchasing or refinancing, it is money in the economy. People buy, they go to Target and Home Depot. They refinance, they save money, and have more spendable dollars in their pocket. Heck, I a have 2 new employees starting Monday to support me, and is that not keeping the economy going? So Barton….whatever. We survived Alison, Enron, and Ike, and we will survive this!

Right now, today, rates are increasing because investors are feeling a sense comfort that some bank stress tests will be favorable. They are so fickle. Then tomorrow, for jobs report, if it is less than stellar, rates will go down again. So why is it that negative news keeps the rates so low? Chrysler not paying back the bailout money, a major bank in Atlanta failing, the Swine FLU (rates dropped big after that was released!). The worse the news, the better the rates. Why is that? Because bad news makes investors feel skiddish about the stock market. THey feel unsafe. So they take their money, and dump it into the bond market to seek safe returns for a while. This increased demand pushes up the bond prices, and the yields push down in response (always inversely related to the price).

Changing the subject, I had a realtor ask me a few days ago if rates were going down after the Fed just announced a .75% rate cut. How can that be? The fed funds rate is already .25%. It would be negative!!!!! There are so many rumors flying around out there, it really is hard to keep up.

Another rumor is that the appraisal process is deteriorating. Oops. That’s not a rumor! That 'could be' interpreted as true by some. We are now back to elementary days where loan originators, like me, or anyone paid a 'bonus' on any type of production (ie, vested interest) cannot order the appraisal. We cannot 'talk to, or discuss', the process with appraiser. On a refinance, we cannot put an estimated value on the order form, as it may be construed as trying to ‘sway’ the appraiser. Give me a break. A disinterested party has to order randomly from our list of approved appraisers. It is assumed now that appraisers have no where with all to avoid coercion by any parties as to the outcome of value. If I was an appraiser, I would be insulted. None of the appraisers I have ever used were swayed by my opinion anyway. I am just a hot head loan officer that always wants my way. It is the few bad apples out there, that were part of fraud schemes, that have given all appraisers a bad name. This is just great. I think I need a bag of chocolate chip morsels to munch on. This is getting really stressful!

By the way, I must stress that my thoughts expressed here are not those of Patriot Bank at all. So you can make your own opinions, mine mean nothing if you so choose.

Houston Housing is Solid!

2009-04-17T17:04:00.000-05:00

You may have noticed I have not written in a while. Well I am back after a 3 week sabbatical (wishing the excuse was vacation!) . The great news today is that everyone wants a piece of these rates! So if your pipelines have not begun to increase, they will. Remember, that the deadline for the First Time Homebuyer Tax Credit of $8,000 is Dec 1, 2009. Also….the premonition is that within 12 – 18 months, inflation will set in. Who knows where rates will go then? Our 4-5% mortgages may look really good by then. Cocktail party conversation!

Let me get the statement over with. Yes, parts of Houston are feeling the results of some minor devaluation. How could we not, with the other 49 states feeling such drastic effects? The mentality of the consumer has surely been tainted. BUT I WOULD LIKE TO POINT OUT SOME REAL, POSITIVE FACTS about why your clients should be buying now! Other than the obvious- interest rates. We must invest in our economy, if we are to turn things around.

In Houston:
Housing is Solid, with an average of 6 months supply - a healthy market! (Metro Study, Q3, 2008)
Is the #1 best city to buy a home , as rated by Forbes Magazine, August 2008,
Ranks #1 for Job Growth in the Nation - 17% of the entire country!!!!!!!!!!!!!!
Largest IT Service Economy (Onforce, Inc, December 5, 2008)
America's Best Hospitals (US News& World Report , July 2008)
Best Big City for Business (Inc.com , July 2008)
We are survivors! Think about our recovery from Allison, Enron, and recently Ike.

Patriot Bank is growing right with Houston. We are the 5th Largest Bank domiciled within the city (and we are only 5 years old!). We are THE LARGEST privately owned bank within the city. Our total assets are currently at just over 1 Billion dollars. The most important aspect of our bank, in my opinion, is that our Total Equity Capital is 12%, where our peers are at 9%. And 6% is the minimum government requirement. That is awesome, and secure!

Mortgage Industry Changes that will Rock Our Worlds

2009-03-27T06:28:00.000-05:00

Frequently I run into many of you that read this column, and I am asked if I am the one that writes it. The answer is YES! I do not cut and paste from any other source. I do my own research, and expose my own thoughts. Which by the way, to clarify, are not the thoughts of Patriot Bank Mortgage. Read at your own risk. Why does my opinion matter? It does not. But my goal each week is to provoke thought, and through that, understanding. I hope that by sticking together, and providing you , the real estate professional (most of my readers), insight that you can trickle into the community.

So you know what is coming next........my experience, and my insight. Emotioanl response (by the way) is EXACTLY how our economy is affected every single day. The 'emotions' of individuals and companies, and their buying behavior as the buy and sell stocks. Have you really sat down to think how much we rely on the stock market to identify our lives? Our well being? It is astounding. The S&P 500 has the most psychological power over people that I have ever seen. That and the news media. Which is another story. Don't get me started.

It is time to 'step up to the plate', fellow Houstonians. If we do not start believing in our economy, and start buying, we are succumbing to the hoopla of this whole entire mess we are in. Is there risk I could lose my job? Of course, always has been, and always will be. If I am living in my means, if I save, hopefully I will get through tough times. For those of us that are suffering, or facing foreclosure, I am truly saddened, and hope things go your way. But for those of us that are not, it is our RESPONSIBILITY to keep the economy going.

Interest Rates are LOW LOW LOW. There will never be a better time. If you sell low, chances are you will buy low too! So move past it! Are we all relying on values that maybe were never there anyway? Apolologies for upsetting anyone, but the market value of our homes is what buyers are willing to pay. And in today's market, it is maybe a little less than 1.5 years ago. But maybe it is time to upgrade to the house I have always wanted that is now priced where I can afford it! We have seen ups, and we have seen downs. Neither of these cycles will last forever.

Now some facts:

Rates are at record lows- 4.5%-4.75% on a good day (with a point, and excellent credit and 20% down!)Loan availability is shrinking due to credit scores: Get qualified early, and with a mortgage lender that can guide you on how to improve those scores before buying (like me for instance!). Let me elaborate on this by saying that if you do not have a 720, you will not get the best rate, and further more, if you do not have a 680, probably no loan at all unless you put 20% down. The credit scoring system is unfair and imperfect (regarding how it treats collections, for example), but it is what we have to deal with. So understanding is the key.

Appraisal changes are about to rock our worlds: As of May 1, mortgage companies have to outsource (if you are a broker) and centralize (if you are a direct lender, like us) the ordering of appraisals. The loan officer can not 'choose' its favorite appraiser anymore that will 'make value'. You very well may have a listing that has an appraiser that does not frequent the area. Sorry, its is the way it is going to be. Fannie Mae (and HUD) has determined that direct loan officer involvement has contributed to the over inflated values, and must be removed from the process.

There will be more mortgage company failures: with the shrinking of credit (for lenders) and increased foreclosures for lenders , there will be more consolidation. Example: CNN MONEY reported this morning that Thornburg Mortgage (THE TOP JUMBO LENDER) is about to file Chapter 11. Like Jumbo's needed more negative news. They already are at record highs (for the last 6 years). But for a million dollar mortgage, fixed for 30 years , for slightly under 7%, come on, are we that spoiled that we don't remember double digit interest rates? The trouble is , no, most buyers these days are too young to remember.

We will survive this! Its just another cycle.

Tips to Survive the Mortgage Approval Process

2009-03-14T06:25:00.000-05:00

As of March 9, there are more restrictions being passed down from the powers that be (who are they anyway? ). Mostly having to do with condo's , and PMI. This week I actually had 2 actual clients affected mid process. They were approved, and then sort of , and then not...as we needed more 'stuff' after these new rules were released. This kind thing does not happen to me! Well, I almost truly cratered this time. Delayed closings, sellers and buyers affected. I was face to face with a seller that let me have it for not providing the funding number that afternoon (the FIRST time that I can remember in 3 years). We fund on time ! Not that day. The stress is unimaginable. But we are got through it, and that is the important thing.

As for the cumulative changes affecting our industry as of date, here is a summary:

CONDO's:
LOTS of more questions to ask. We used to get by with 'limited reviews' (kind of like a stated income for condo projects! ). Well , no more. We have to ask the HOA questions like: 'How much fidelity bond insurance do you have? ' , ' Are more than 15% of the homeowners delinquent on HOA dues?', 'In event of foreclosure, confirm we do not have to notify the HOA we are doing so...' Are blanket mortgages allowed?' .... WHAT!!!!!!!!!!???? All this detail makes your head spin. But there is a reason to this madness, believe it or not. Condo's attract investors, and they also attract fraud. There are entire buildings in Houston that have foreclosed from fraud schemes. So any triggers that pre empts a red flag is being asked. Also, when large percentages of condos in a project are suffering from foreclosures, units become in disrepair, the HOA does not have money to function, and deferred maintenance occurs. My Advice: be sure your lender has access to the HOA EARLY!

Mortgage Insurance-
out of 6 companies total in the US that offer PMI: Only 1 will allow a 5% down condo purchase. Otherwise, 10% down is the minimumThree companies require a 680 minimum credit score - the trend here is that no one with <680 will be able to have PMI. Many of the 2nd lien lenders are 680 too. So where do they go???? They put 20% down (this is a forecast, not fact yet)Two companies allow Second homes investors are not eligible for PMI - so 20% down minimumFive companies require maximum debt to income ratio of 45% (even if Fannie Mae allows to 55%- they don’t care!)**One of the PMI companies is owned by AIG- HINT, that is where your tax money is going, to keep them in business, and help homeowners! So that is why we should be in favor of some big business bailouts (some of them) Mortgage Insurance Companies are losing billions of dollars. The way it works is that (for example) on a 5% down loan, the MI company insures the lender 30% of the loan in case of default. So if a $100,000 mortgage goes into foreclosure, they pay a premium of $30,000. With foreclosures at current levels, the loss is absolutely huge.

CREDIT:
Any open accounts in dispute must be resolved or removed - this could take up to 30 days with the bureaus! We need to see your clients’ credit to prequalify early!!!!!!!!!!!!!!!!FHA new minimum score is 620- all lenders have adopted this.Credit scores <720 have severe hits to the interest rate. 740 is the new 'best score for pricing'Remember- it only takes ONE collection for $5 to bring your score down 70-100 points. No kidding. Get those clients with a lender 3-6 months in advance...so we have time to correct issues.

How do we survive this chaos? Put your two feet on the ground, smile, and get through each day with a positive attitude, and last but not least, refer Jennifer Hernandez to your clients in need of mortgage financing.

Smart Buyers are buying now!

2009-03-07T14:18:00.000-06:00

Our phones have been ringing nonstop today after the unemployment numbers released worse than expected. Rates normally would go down. But not today. They went up a small bit, as the treasury prices are being pushed down with flooded demand (rates move the opposite…so up).

National employment is at 8.1% , the highest level since 1983. Let’s look at the bright side, it has not yet reached the worst in history, which was 10.8% in 1982. I don’t mean to make light of a grim situation, but they say psychology is everything. If you tell yourself it is a bad time, it will be. If you tell yourself it is a great time, it will be. Which is it for you? I say it’s a great time. A great time to be a Houstonian/Texan for sure. We are (finally!) getting the recognition we deserve as having (a) lower unemployment (b) more affordable housing (c) less foreclosures, and (d) having a positive jobs market. And did I mention we only have 6.5 months of housing inventory? Its a far cry from Florida with 28 months. I just cannot even imagine what that would be like. Again, thankful to be a Houstonian.

Is Houston experiencing lower pricing and sale levels? Yes, we are. No one is recession proof. Oh wait……Fargo, ND has 3% unemployment, and according to CNN is not in a recession. That’s right. Let’s pick up and move there! (No offense if you are from Fargo). I’m a city girl. We live in the 4th largest city in the US (#1 if you are talking land size) with lots of people. And that means that we are impacted more by trends. Also, we have to keep in check that the last few years we enjoyed above average returns in real estate. Incredible numbers! What we are seeing now is more ‘normalcy’. That statement is from Mike Inselmann himself , the President of Metro Study.

SMART BUYERS are buying now with these low rates! With unemployment numbers on the rise, and the recession with no end in sight, will we have a repeat of the 80’s and 17% interest rates? My generation (I was born in the 70’s ) is too young to remember these times. But I have been told that history is starting to repeat itself. So will Obama’s policy making make Jimmy Carter look like a saint? My point here is: get out there and buy while you can, before the rates spiral out of control. You could be one of the lucky few someday with a single digit rate- and in the 4’s at that!

Where is my mortgage relief?

2009-02-20T21:09:00.000-06:00

Just when I thought my ‘drama factor’ for the week had been accomplished squashing my three year old’s meltdown over which shoes to wear, the Galleria area near our office was swarmed with helicopters and FBI agents on the roof of the Stanford Financial building. What a shame that is, seeing the destruction of yet another financial institution. Can we trust anything anymore? And then the first article on CNN Money today was “ Expect a wave of bank failures’. That may be the case, but for me , personally, I can express that I have never felt more job security in my 14 years as a mortgage originator. And I work for a bank. Patriot Bank is steadfast and strong. Not only are we the 6th largest bank domiciled in Houston, but we have been profitable since our 5th month in business after opening in March of 2005. The year ending 2008, we generated more than 4 mm in net profit, and we maintain < 1 % of net loans charged off as a percentage of loans outstanding. Not only that, our asset to debt ratio exceeds the limit set by the FDIC as a minimum bank requirement. Please know that at Patriot, we are your trusted source in mortgage lending. And we are here for the long haul.

Changing the subject……….Where is my mortgage relief? I pay my mortgage on time, and sometimes we struggle. I could use some relief! Oh, wait a minute. I need to be 3 months behind on payments to get any relief, like a lower rate, or payment, or renegotiation with my lender. At first thought, that bothered me. Should we really destroy the incentive to act responsibly? Capitalism will not work without the possibility of failure!

But a guest on CNBC Sqwak Box yesterday summed it up nicely ‘ The Kool Aid has been flowing freely for a long time, and we all drank it”. Boy did we ever! We have all benefited in some way, whether it be cashing in on our home equity, selling our house at a rock star value , stock profits, the car loan at 1.9%, the 0% credit cards, etc. If we do fail, foreign investors will lose confidence in our system. Their investments in our economy has kept us going, believe it or not. And our home values. If we allow our neighbor to foreclose, the values in our neighborhood decline. So you see, my part in all this is to continue to do the right thing. Pay my mortgage since I can, and allow those that need it, and have hardship, to benefit from the policies of recent that have been put in place. We will all be rewarded some day, when this is behind us, and we have learned the larger lesson , which has yet to be defined.

To clarify my article of last week, the First Time Homebuyer Credit of $8,000 is not required to be repaid. A first time homebuyer is defined as anyone who has not owned a home in the last THREE years.

Product of the Week: Check out the 5 and 7 ARM Jumbo Rates below! 4.75% !

First Time Homebuyer Tax Credit

2009-02-14T21:11:00.000-06:00

Love. It does make the world go around, doesn’t it? Let us temporarily forget in its bliss? My hope for you on this day is that you find the love you have always been looking for! As for the mortgage business, there is not much love to be found, or so it feels sometimes. We have good days and bad days. But for the most part, really, it is still good.

Things are starting to look up for home buying! Rates have come back down to historic lows. Still not quite as low as early January, but low. Where is the 4.25% I keep hearing about? That should tell you something, hearing……..In other words, should we hold our breath? Let’s enjoy the 4.625% of today!

The stimulus package that has passed Congress (to be signed into bill tomorrow) has some important changes to the First Time Home Buyer Tax Credit. It is raised to $8,000. It does not have to be repaid if you live in the home at least 3 years. It is extended to Dec 2009. A local/state government agency may advance the credit to home buyers for closing. This is the clause I would like to see more detail on. We still do not know which government agency this would be. It will be an awesome task, to say the least, to advance this credit. As I hear more detail, I will surely pass it on.

Changes for investors? Currently, Fannie Mae limits the TOTAL number of properties an investor can finance to 4 (including their homestead). It has forced a huge decline in investment property financing. We need investors to help us gobble up these foreclosures! There is a rumor this may be reversed back to 10. There is no confirmation yet. Stay tuned. That would surely put the love back in the air for some of us.

Wishing you and yours a wonderful Valentine weekend! I am here now with my little kiddo in my arms. Nowhere I would rather be. Off to watch my 100th episode of Monsters Inc…………..

How Stimulus Package Affects Housing

2009-02-06T21:13:00.000-06:00

Another exciting week, as rates were up down, up ,down, and finally down .25% from last week. Will we ever see 4.0%? I don’t know, but if it makes sense right now to buy or refinance, do it. That is my ongoing advice.

There is rumor that a $15,000 homebuyer credit has been approved in the Senate. I have not been able to confirm , but I know it is looming. Currently, there is APPROVED a $7500 tax credit that is given at the time they file their taxes. So, if a first time homeowner (who makes less than $75,000/year) buys before July 2009, they can claim this credit for 2008 (if they file an extension) or on 2009 tax return (a whole year from now!). The credit offsets the tax they owe, and is required to be repaid over 15 years. So basically, and interest free loan.

The NEW PROPOSAL posed to the Senate as a part of the stimulus package is: Increase the credit to $15,000 (or 10% of the purchase price if less), and available to ALL homebuyers, regardless of income or purchase history, and not require repayment. Wow. That would spur some buying for sure. I will just avoid thinking where that money will come from for now. Let’s just take a bat for the team on this one, and call it a good thing.

I saw an article online that said ‘Credit Standards Tighten’. Where has that journalist been? That is old news! Yes, it is true. There are more rules, more paperwork. But we just get through it all somehow. The funniest example I have is one of our investors now requires that any letters of explanation for the borrower are handwritten, not typed. Hint: loan officers have really good writing skills. But isn’t that funny? We are going to such extremes. But again, a bat for the team. When I am 80, I hope to look back on 2009 with a grin, and know that I helped a lot of people accomplish the American dream of homeownership.

Mortgage Financing is Definitely Available!

2009-01-31T21:15:00.000-06:00

Houston is known for its hot weather, but days like today make it all worthwhile! No wonder our New Year season is always labeled as the kick start to the home buying season. Is it the crisp weather, or the sense of starting with a ‘clean slate’ that motivates buyers to put off buying until the Spring each year? Whatever the reason, this year I have surely seen an increase in buyers. And financing is definitely available! Take for example, the fact that I am in the office on a Saturday, and was last Saturday. In fact, after I wrote my newsletter to you last week (on Saturday!), I received 4 new referrals, all purchases, and had to come in Sunday. My husband has just resolved to the fact dishes and laundry are now on his honey do list! If your prospective buyer roster has not filled up yet, my prediction is that it will, and fast. So enjoy the silence. Use your time wisely to get recharged and organized.

What about these rates? With the Fed announcing this last week their plans to buy mortgage backed securities, a partial approval of the stimulus plan for the economy, and the news that national home sales ROSE 9% in December, you would think the rates would have gone down. Well, except these are different times. Unchartered territory. The stock market is manic (really). Nothing seems to make sense or follow basic economic principles anymore. After this weeks’ news, the bond market (where mortgages most closely relate) did not fare well, as yields , or rates, of bonds lowered because (1) the bailout plan shows flaws, and had not Republican support (2) The FED did not announce ‘specific’ plans for purchasing securities and ( c) 100,000 layoffs that were announced. So you see, the news is never good enough! Never specific enough!

Despite what you may hear, the government cannot directly control the rates . They can purchase the mortgage backed securities in an attempt to push the rates down, but what if that doesn’t work? What if ‘other’ pressures on the bond market cause their plan backfire? It could very well happen, and some critics of this strategy are anticipating it. So my point here is that borrowers (whether purchasing or refinancing) need to take what they can get NOW. Enjoy these low rates now. Waiting on the sidelines for 4.5% or lower, may be about as reasonable as me hoping to win the lottery tonight – when I didn’t even buy a ticket.

Where are the 4.5% rates?

2009-01-23T21:16:00.000-06:00

So where are the 4.5% rates, you are wondering? Your clients are asking, I am sure. They ask me too! Well, as you can see below, the rates are not far from that at 4.625%. But keep in mind, to get that, you MUST pay 1% origination fee (1% of the loan amount added to closing costs). If you want to ‘waive’ that fee, you can expect .625-.75% higher interest rate. That is a far cry from the .25% in the past. In other words, it makes sense to pay the 1% origination for many people, who expect to be in the home a long time. For those on a 6 year or less timeline, maybe not pay the point, and save your cash.

Why such a large spread between the 1 Origination and 0 Origination? I have heard several theories (a) lenders do not want to sell the higher coupons (rates), as they anticipate rates will go down, and their fallout will increase (b) they have been burned in the past paying originators the premiums on the back end, just to have early payoff in low rate markets, and (c) no one knows. I pick C! Does anyone really know?

Another rumor I have heard, is that some , if not all, of the big banks are losing money in their mortgage divisions. Big money. So they are hesitant to lower their rates because they are adding larger margins than in the past. To make it ‘worth it’ for them to stay in business. The margins from 03/04 when the rates were also at historic lows, and lenders could not print money fast enough, were turbulent times. Hiring frenzies, backlog in processing and fundings. The grass was not necessarily greener on the lenders’ side. Are they now remorseful and learning from their mistakes?

The FED meets this week for a 2 day meeting (Tuesday/Wednesday). For the first time, they will not consider lowering or increasing the rates. They will be concentrating instead on strategy to get the economy turned around.

On a personal front, I took my home off the market this week after 90 days. 27 showings and 4 offers later, we were just amazed at some of the offers (low) we were getting. So, since we don’t have to sell, we decided to stay put for now. I know, agents hate sellers like us. But as my article last week mentioned, the psychology (of buyers and sellers) must change in order for the market to get moving again. Even in Houston, a healthy, stable real estate market. As for me, I am stubborn, wanting a fair price for my house. A price that was there 1 year ago. Not willing to accept that the psychology of the CNN glued buyers are driving prices down. They think that all sellers are going bankrupt? No thanks, I would rather wait.

Have a great and prosperous week! Remember, we at Patriot Bank Mortgage are your trusted source in mortgage lending. We are here for you! Steadfast and strong.

Houston's Economic Outlook for 2009

2009-01-16T21:19:00.000-06:00

I wish you and yours the most prosperous year ever! This is my first newsletter in the new year. I have missed you all dearly. So let’s get on with it!

What a year end and new year it has been! I slaved all through Christmas, and ever since the new year (don’t feel sorry for me please, I welcomed it). December we issued a record number of approval letters- in my 14 year history as an originator! We had more purchase closings this January than ever as well. This tells me that the low rates are spurring activity. People are regaining confidence. Certainly there are some that are concerned about job stability and finances. That is a given. But rates are historically good! Who would not want to get a rate in the 4’s! So hang in there. I predict Q1 of 2009 will be vibrant.

Earlier in the week, I had the privilege of hearing Mike Inselmann speak. He is the President of Metro Studies http://www.metrostudy.com/corpwebsite/about/who.aspx . They are a housing market research firm . Mike is a household name to many lenders, realtors and builders. Each year he is almost right on his forecasts! In summary, this is what he predicts for 2009:

It’s not a buyer’s market. It’s not a seller’s market. It is balanced. We have 6-7 months of inventory, and 78 days on market. That is healthy!· The last quarter of 2008 we had a hurricane, an election, and the most horrible financial news in a matter of 6 weeks. So let’s agree to forget Q4 2008! Ok by me!· Texas is NUMBER 1 in job growth in the nation! The 5 top cities in Texas are all in the Top 20 for job growth in the nation, Houston being the leader, of course!· Houston housing GREW in 2008. However there was a shift – more rentals than ever before. Housing is not declining, it has just shifted. These people will need homes eventually· Houston will add jobs in 2009, but potentially not many. Energy and Healthcare will be important fuelers of the economy.· We had 29,000 home starts in 2008! That is a stable number! What is unstable are the gargantuan numbers we saw in 2006/2007. So the market has adjusted to normalcy.· Houston has the lowest appreciation market in the nation – 4.4% average. But look at us now! We are not seeing the ‘bubble ‘ effects of other markets .· In 2008 there were 12,000 foreclosures in Houston. There were 50,000 in 1987. Foreclosures are a given in any market. The numbers we see are normal for a market as large as ours. The takeaway from Mike’s talk, if you forget all the graphs and fancy numbers that only an economist can understand, is that it is really not as bad as it seems. Not in Houston anyway. TWO THINGS must happen for our market to turn around. (1) Psychology of buyers and sellers have to change, and (2) Credit must be available. The latter, credit, is available, but it is more difficult to obtain.

Mortgage Rates at their lowest in 50 Years!

2008-12-20T06:51:00.000-06:00

The week has been exciting, to say the least. Mortgage rates have been up and down at least 15 times, the prime rate is down to 0.0-0.25% (the lowest EVER), the auto giants are getting bailed out, and the government legislated that credit card companies can no longer raise rates on existing balances when there are on time payments, and a 21 day grace period on late charges. Oh, but the companies have until July 2010 to comply. What a relief!???????

The mortgage rates are the lowest in 50 years. According to where the 10 year treasury is, they should be lower than 4.25%, but no investors on the secondary market are buying these coupons. No buy, no sell. The lenders are gridlocked. Running scared to offer a coupon (rate) they cannot finance as a mortgage backed security. The government has talked of stepping in and buying such coupons, so that lenders will lend. Not official yet, but when they do, who knows? The result would be motivated buyers, and ability to qualify for the dream home they have always wished for. Maybe just in time for all of us to return from the holidays refreshed, and ready to sell some houses! I really do predict that 09 (at least Q1) will be vibrant, and the market will begin to move. Who would not want to buy a home at historic lows?

Have a joyous holiday. This will be my last update of the year. Thank you for your support of Patriot Bank Mortgage. Your referrals are so appreciated, and we look forward to being your trusted mortgage source in 2009!

Rates to 4.625%, Will builders be the next demise?

2008-12-12T06:48:00.000-06:00

Well, on Friday I did receive confirmation from Santa that I have been good….rates were 4.625% on a 30 year fixed. (They were 4.5% for about an hour). This is for purchases. Refinances are a bit higher, so additional quotes apply. My feeling is that this WILL spark the interest of home buyers, and that activity in the new year will be renewed, and that it will spark the activity the government is hoping for. Why are rates so low? Who cares…take it for what it is, if I can be so blunt.

What else can I write about this week? I already hit the climax…the rates! Should I write about the deal that almost didn’t close because the appraisal was almost denied for high land/value ratio, or the builder we had to deny for a construction loan (a well known one at that)….. I better not. It’s too negative! But I will summarize to only say that things are tight. Banks are tight because they can be. But wasn’t it this way 7 or 8 years ago? Yes it was, but who can remember back that far? I surely cannot.

I would like to address builders. I predict that this is the next industry to be really affected by our economic downturn (recession!). In fact they already are. Track builders mostly, who build specs. But custom builders too. They are being squeezed , and in some cases cut off, by banks . The strong builders are surviving, and are being required to put more equity in deals. Gone are the days of 100% cost lending. So, in turn, builders with inventory worried . They cannot get more lines to build more homes. Many will unfortunately go under. Spec lending is on hold with many banks, including ours. The banks just don’t want the risk. So I sit here and think what this could mean for consumers: (a) Good deals on new construction (b) less inventory , and that will cause inventory homes to be more expensive. (c) less new homes, for now. ONLY MY PREDICTION that has no merit other than my own.

hope you are enjoying the holidays! Have a great week, and keep saying your prayers. Its working. Oh, by the way, the 30 and 15 fixed being the SAME is not a typo…….strange, but true.

Rates down to 4.875%, be careful what you wish for!

2008-12-05T03:41:00.000-06:00

Merry Christmas….oh, is it not Christmas yet? I thought the 4.875% 30 Fixed I saw this morning was Santa’s gift to me for being such a good girl this year. Then it vanished into thin air hours later, and we are at 5.25% . We should be careful what we wish for. Rates are extremely low, but the economy is in the tanker. There are so many things making the yields (rates) of bonds go down on a daily basis. Remember that yields/rates down means prices are up. Prices up means that there is more demand for bonds. This happens when investors lose confidence in stocks, and they buy more bonds. For the mortgage coupons these days, no one seems to know what they are buying. The spreads between buying a point are unreal, anywhere from .500% - .750%. Never in 14 years have I seen that much of a spread. So save your money to buy that point down, otherwise, you will be paying dearly in the interest rate.

Some headlines for you, that affect the market in every way: Foreclosures have risen in every state in the nation (out just hours ago), foreclosures are forecasted to double in 09, California is on the verge of literally running out of money (all of Arnolds muscle flexing and charm means nothing now!), car giants are folding, we are officially in a recession (since Dec 07- ya think?), major corporate layoffs, terrorist attacks in Mumbai, changing regime in USA for the presidency, and to top all this off, there are pirates attacking ships off the coast of Somalia. Pirates? Are we living in some fairy tale now? Some days it sure feels like it.

But let’s look at the bright side! Gas is under $2.00/gallon, every consumer product imaginable is on sale, cars prices are rock bottom, and we have a new President that has given hope to the country, and seems like the world. There are right this very minute, 4,000 job openings in the Texas Medical Center that need to be filled. Houston is adding jobs! The Medical Center led us through the 80’s, and it will lead us through this, I can assure you.

I had a thought this week that should solve our country’s problems: why don’t we use part of lottery winnings to finance these bail outs!? The mega jackpot was $146 million! Who needs that kind of money anyway?

Does the new Homeowner Rescue Package encourage default?

2008-11-21T23:53:00.000-06:00

Maybe this month I will not make my mortgage payment. Then, skip January and February too, and then I’ll be 90 days late so I can qualify for the homeowner’s assistance that was just passed through Congress. At that point, my mortgage payment will be reduced to 31% of my gross monthly income (good news if I lost my job). My rate will be set as low as 3% for five years, and amortized for as much as 40 years. Apparently there are 2.2 million borrowers that would benefit from this just like me. DO NOT GET ME WRONG here, I am all for helping out those in need. Those that have had the misfortune of a real estate market gone bad, a layoff , etc. Sometimes, however, the consequences are hard to process in my brain. I pay my bills, and , if I get laid off, I would work at Wal Mart if I had to , or wait tables, or something, in order to feed my family. Where does the buck stop between those of us that are ‘taking a bat for the team’, and those that will manipulate the system to benefit themselves? We saw it happen with FEMA assistance after Katrina (remember that?), and we will see it again. How will we be able to differentiate between those people that are really in need, or looking for a handout? Didn’t we all at some point benefit from (a) subprime, (b) stated income (c) high debt to income ratios, etc…………Are the people that foreclosed the ones that had those types of loans? Probably. But we will never know.

In the last couple of weeks, I have advised several people to contact HOPE NOW, the non profit agency that was formed in June 2007, to help persons renegotiate with their lenders. They have helped 2.5 million people avoid foreclosure since then. Even if temporarily. When you do foreclose, your credit will be affected. You will not be able to obtain another conventional loan for 5 years, or an FHA loan for 2 (FHA loans are limited to $270,050, currently). If you do a short sale, you will still fall into the same category. You are settling for less than the owed amount. In leiu of foreclosure. It is like a collection. So where will all these people go? They will be renters….time to buy a rent house! IT is a great time right now to be an investor…….If you can get the loan.

INVESTORS, in my opinion, have been hardest hit by the credit crunch. Maximum 4 properties financed, 20% down (rate is MUCH better if you do 25%), and full documentation of income. There are a lot of investors that do not meet that criteria. Who will buy these homes? The answer is, the investors that have cash, or form investment groups where they have multiple partners to qualify on the application. Or hard money for 14% and 5 points origination. Seriously. Hopefully some smart and savy financier will invent a product to service this segment of the market to allow these homes to be bought. That could be why much of the inventory is sitting there. In the past, the programs available allowed for investors to gobble up properties at a record pace. They balanced the market. Or did they? I have been searching for statistics on how many foreclosures were investment properties. I have not found it yet. But will keep you posted. So would we have been in this situation before now, or ever, had they never been able to get 0% down, stated income on an investment property? It sounds preposterous, doesn’t it?

Lastly, I would like to comment that RATES ARE DOWN THIS WEEK! The mortgage market continues to stay steady, and loans are definitely available. If you have CASH, CREDIT AND INCOME, you will have no problem at all. The key word is proof , proof, proof. Sometimes I wonder how we even deviated from that?

2008-11-07T11:35:00.000-06:00

Last week’s article caused a few dissenters from our recipient list. There were a few comments I made alluding to a particular party, and some found it distasteful. My sincere apologies, and we wish you well. For those of you that have stayed (and are reading now) thank you! It is important for all of us to be able to reach across party lines, regardless of our beliefs, and embrace opinions of others. Also, I would like to say that politics has EVERYTHING to do with interest rates. The markets. All of it is based on feeling, cause and effect, and predicting behavior. Now that the election has passed, I am happy to report that the mystery is over, and the mortgage rate markets settled DOWN .375% in a 24 hour period following the election.

As an optimist, I would like to comment that there seems to be a spirit of renewed hope in the air, and for that I am thankful. Although I did not vote for the Democratic Party, I am encouraged and hopeful that our new President will serve our country with best interests at heart. He has proven that he gave a majority of our country (37 million persons!) the prospect of change. If that is what my peers call for, then I am here to accept that. And it seems the market is too!

ARE WE IN A RECESSION?
Can we just call it a national recession already? The ONLY authority over making this call is the National Bureau Economic Research. Not the Prez, not the Fed Chairman. According to the NBER's Web site, a recession "is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales." We lost a total of 1.2 million jobs (October to date), which puts unemployment at 6.5%. National home sales continue to decline. In 2008, hundreds of major banks, 5 of them being large household name banks, have gone capput. (Ex: Wachovia, WAMU, Indy Mac). When will this branch of government stop avoiding the inevitable?

IS MORTGAGE JUSTICE BLIND?
Why do mortgage lenders not rush to rework and renegotiate mortgages with homeowners? It is easier said than done. The world of securitization has changed dramatically. The loans are pooled together, and sold on the secondary market, with minimum rates of return guaranteed to investors. These pools are sold to a ‘master servicer’ which now holds the power to rework the loans. The bad news is, that the master servicers have an obligation to the investors. Should they rework the loans, the investors would suffer major losses on rates of return. Innocent bystanders that invested in these mortgage pools, much like your 401K fund or investment portfolio. Many of us are /were invested in these types of pools, and did not even know it! So my point of this commentary is: Easier said than done.

ARE BANKS LENDING MONEY?
Yes, they are. The mortgage market is running status quo. Tighter requirements, but money is flowing, and steadily. Rates are low (5.75% on a 30 fixed!) . If you have good credit, money for at least 3% down, and can prove your income, you are fine! The markets that have really tightened are commercial /business loans. Regional as well as national banks have severely tightened their guidelines, that has resulted in companies’ ability to do business and grow is drastically impaired.

The largest sector close to our hearts that I have seen affected is builders. Spec loans are becoming a thing of the past, or very difficult to obtain. Smaller spec builders I am not sure how they will survive. The larger ones, are cutting back tremendously. If you have current inventory on the ground, you must sell before starting new projects. There are some deals to be had I imagine, as the end of the year approaches, and builders need these loans off their books. As for Patriot Bank Mortgage, we are stronger than ever. Our conservative approach to lending over the past year has paid off. We do deals that make sense. We are awarded by our investors in the form of reduced rates and streamlined requirements. We are small enough to serve and know our customers each by name, but large enough to serve them with the most rapid, competitive and courteous service in the industry. We hope you will give us an opportunity to earn your business!

We Close Loans in 2 Days!

2008-11-05T11:30:00.000-06:00

Have any of these happened to you lately? ·

Is your buyer getting last minute conditions they can’t satisfy? ·

Are lenders letting your buyer fall through the cracks making you miss close dates? ·

Are processors sitting on conditions causing you to have to push close back?

All of these create fallout! And when fallout occurs, buyers don’t close, AND YOU DON’T GET PAID!!!

Let me tell you a quick story… We had a realtor call yesterday and explain that the lender they were using denied her buyer’s loan last minute due to extra conditions that couldn’t be met. Those buyers were in my office at 10:00 yesterday morning for the first time. We took the application, processed it, underwrote it, and SENT DOCS TO TITLE AT NOON TODAY!!!! That’s right , 26 hours and we had docs!!!

Do you have fallout? SEND IT TO ME NOW!!!

If you know of someone who could benefit from my services, please give me their name and number, and I will be very happy to contact them

YOU are going to fix the economy, not some politician

2008-11-01T11:31:00.000-05:00

Some days I wish we could just turn back the time to 2003. Life was great. Everyone was prospering. But then again, we learn the most from our failures by hitting bottom, unfortunately.

Recently, I have become somewhat of a Dave Ramsey junkie. He is that off the wall financial guru that has a ‘tell it like it is’ attitude. He is honestly blunt, kind of like my internist. That is why I like both of them! I am not much of a sugar coater either. Just tell me how it is. Well, this week, his blog had some really great thoughts I wanted to share. “ I am here to remind you that YOU are going to fix the economy. Waiting for money to be taken from others and given to you is a spirit of envy, and its wrong”. Wow. That is pretty strong stuff. We do like handouts, don’t we? As a society I mean. The easy money. The 20% annual returns on our home values (for unlimited years in a row), or the 12% annual returns on our stocks, or , how about this one….buying a foreclosure and expecting that you will get 50% of the value just because it is owned by a bank.

Come on fellow Americans. Whatever happened to working hard for our money and embracing the free market philosophy? Isn’t that what our country was built upon over 200 years ago?

Speaking of handouts, there is a presidential candidate who has referred to households earning over $250,000 a year as ‘rich’ and that “they can afford to give up a little of their money so the less fortunate can have more tax breaks and prosper.” SAYS WHO???????????? Just because you work hard and take risk and have made sound decisions for yourself, you should give up some more of what you have earned ? By the way, there are many persons that make $40,000 a year, that have more savings than those earning $500,000. Where will it stop, this sharing of wealth and prosperity? Should we all have equal returns on our investments too? Should college students that have a 4.0 give up 1.0 so that the 2.0 average students can have equal opportunity for their careers? Of course not.

Like Dave Ramsey said, YOU control our destiny. YOU make your choices. YOU will turn this country around by your individual actions. Should the corporations that took the risk to leverage themselves on mortgage backed securities take the handout from the government so they can now prosper? Is it ok for the banks to be relieved, but homeowners still struggle? Shouldn’t we, the people, get some relief too? Or how about digging a little deeper, folks. When a possible Foreclosure Aid package is given (in the works now), where will be the differentiation between those foreclosures that were caught in bad times at no fault of their own (layoffs, sickness, etc) , and those persons that took advantage of the system either by fraud or lying about their income on their loan application?

You see, I am a bit harsh and opinionated on this subject. I agree with Dave Ramsey. Each of us chooses our path. If you can’t pay the mortgage, get a paper route to help pay for it. We have all made choices along the way, that have shaped our lives we live today. We chose the adjustable rate mortgage because the payment was $150 lower than the fixed. We chose not to pay attention at closing when we signed the paperwork (I still do not understand how that one is possible), we chose to take a family trip when things were tight and now cannot pay the mortgage. The list really could go on. Ultimately, we only have ourselves to blame.

How does all this relate to mortgage rates? Well, rates are determined by the sentiment of the economy. Wall Street reflects the feelings of you and I. They react to news, to reports, to indexes. They (traders) get scared and worried just like we do, and that reflects in buying habits. That is what moves the rates up and down. Uncertainty is not good. That is for sure. Yes, things will improve after the uncertainty of the election is gone. Regardless of who wins.

A report came out this week that consumer confidence is at an all time low. Well of course, the media does a great job of blasting it every breath they get! But it really is reality that we as a nation are in a recession. There are pockets of the economy, like Houston for example, that are doing fine. Adding jobs!!!!!!! But for the sectors of our economy that are suffering and affecting us all (like the stock market) did we bring it on ourselves? The small actions of years ago compounded, that brought us here today? The over spending, the ridiculous returns on investment, the choice to turn a blind eye to warning signs. I have always been somewhat of a glutton for punishment. If I deserve something , for my actions or lack thereof, I face the music. Suffer the consequences. Move on. Take control of your destiny. Don’t let the government or anyone for that matter (even your in laws!) tell you how to live your life or spend your money. Do what you think is best for you and your family. If you make sound decisions, the rest will fall into place.

Last but not least, I would like to thank all of you that reply with your comments, your praises, and your material! There are a few of you that send me articles constantly (you know who you are), and for that I am thankful! It really helps me see what topics are important, and helps me decide what you want to hear. Please keep sending them!

Even Qualified Borrowers are Holding Back......

2008-10-24T11:24:00.000-05:00

Did you know that in Houston, sales are down, yes, but the average home price is up? That is economics at its best. Who would have expected that? I do not even pay attention to national stats anymore. Do they matter? Each housing market is in of itself, a statistic. Locally, I can report that for the first time in my entire career (14 years) I have noticed recently (this month) people holding back not sure what to do . Qualified borrowers. Maybe they are unsure about their job, or the down payment was coming from their stock that was losing money.

However, This week things did begin to pick back up for us. I reported last week that my desk was clean, well, it is dirty again, with papers disheveled and stacked. The phones have been ringing. I had 3 calls just this week to ‘save’ deals that were falling out with other lenders could not approve them. We are glad to assist! For you to know, we can close files in 48 hours if needed. But each of our realtors is only allowed 1 of those favors a month! That was, of course, a joke. Foreclosure filings have spiked 71%, nationally. In September, 81,312 homes were lost to foreclosure. Since a year ago, 851,000 have been repossessed by lenders.

This brings up a point I would like to share. Fannie and Freddie have of recent come up with some guidelines regarding homes that are being financed in areas with high foreclosures as a percent of the total sales in the last 12 months. If that number is greater than 15%, there is a problem. I had to turn down a borrower for that reason 3 months ago. He was purchasing a property in a neighborhood that had 27% foreclosures (as a % of total listings sold) in the last 12 months. I was mad, frustrated and quite frankly, baffled. How will we as a society ever get OUT of this mess, if the lenders will not even loan on properties they are foreclosing on? I understand that this ‘guideline’ is in place to avoid the lenders investing in areas that are on the decline, but when the homes are selling that should amount to something? There has to be a solution. But I have not been able to think of one, so stay tuned on that subject.

RATES ARE DOWN THIS WEEK! (.25%). The stock market took some heavy losses, and in anticipation of the Fed Funds rate possibly coming down another .500%, investors are pricing that into the market. Its about time we have some relief in rates. Now if we can convince Fannie/Freddie (aka the government, right?) to increase the conforming limit to $650,000 or so, we will be fine. It would be about time! There is a show on MSNBC called Mad Money. Cramer (the host) is just beside himself today. He is on right now, waiving his arms and screaming. Today’s headline is :‘The Dow is down 15 of the last 19 weeks. Down 36% total.’ MORE REASON TO PUT YOUR MONEY INTO REAL ESTATE! In my opinion, it is still the best investment there is.

Smart people are buying

2008-10-19T22:02:00.000-05:00

Well, my desk is organized, I have worked out 6 times this week, AND been on time to pick up my son from school five days in a row. While these methods sound ideal, I function better with my chaotic life of running around with not a moment to spare and my cell phone ringing off the wall. It’s productive and energizing. My point here is that things are a bit slow. Since the hurricane, phones are ringing less, understandably, as people are putting lives back together. One thing I am hearing a lot of, is comments from prospective buyers that the stock market turmoil are making them consider twice before buying a home. I could not disagree more on their decision. For any buyer (in the nation) that has funds for down payment, good credit, and have debt to income ratios that are in line, it is an EXCELLENT time to buy! Good credit and down payment knows no boundaries, my friends. There is plenty of lending going on, believe me. What we do not have are buyers. They are holding off, during the most opportune time in perhaps history when inventories are high (meaning there are deals to be had), and rates are still historically low! 30 Year Fixed for 6.0% ? Come on….. you cannot get much better than that.

This week we did have quite a scare as the mortgage rates shot up ½% in a matter of days. But today we are exactly where we were a week ago. No banks went bankrupt this week, that is encouraging. As I visit with friends in the industry, I try to gather details you can use to support your business. To give you words that are encouraging in these troubled times. How about : (1) MSNBC.com wrote that Texas topped the list for job creation. Houston-Dallas-Fort Worth are 1-2-3 in the latest rankings of the 100 largest metropolitan areas. (2) Houston is forecasted have added 50,000-70,000 jobs total this year – that means that 33,000 new homes will be needed (1.5 homes for every job added) (3) That job creation number will be similar in 2009! (4) Patriot Bank STILL is offering their 4.0% high yield money market, and (5) The elections are almost over!!!!!

The uncertainty in the political leadership is touching every aspect of our economy. People naturally want to know what to expect. Then we can deal with it. Make a plan! In my opinion, that is why Wall Street has been so volatile, the mortgage rates are unpredictable, and buyers are adopting a wait and see approach. The smart folks are buying. They know opportunity when they see it.

Rates as of Friday, October 17, 2008 (net down for the week)

The following assumptions apply:
20% Down Payment
1% Origination Fee
Escrows Required (if no escrow, higher fees may apply)
Purchase Transactions,
Primary Residence
30 day closingCredit Score
720 +Full Documentation of Income/AssetsLoans
> 1 mm require 30% down for these terms Conforming
($250,000* - $417,000) Jumbo ($417,001- $1,500,000*)
30 year (fixed) 6.000% APR 6.130% 30 year ( fixed ) 7.005% APR 7.177% 15 year (fixed) 5.750% APR 5.966% 15 year ( fixed ) 6.350% APR 6.551% 3/1 ARM 5.600% APR 5.728% 3/1 ARM 5.600% APR 5.716% 5/1 ARM 5.375% APR 5.501% 5/1 ARM 5.500% APR 5.620%
7/1 ARM 5.625% APR 5.752% 7/1 ARM 5.750% APR 5.872%FHA/VA call for quote (max loan $270,000)

We do originate loans below $250,000. These amounts are chosen to show the most favorable rates. For other product options or for loan amounts less than $250,000 or above $1,500,000 please call for quote.We also do VA and FHA loans! Call for details! If you know of someone who would appreciate my services, please contact me with their name and number and I will be happy to help them!

Jennifer Hernandez
Vice President/Mortgage ConsultantPatriot Bank Mortgage
Office: 713-337-8400
Mobile: 713-446-7791
E-mail: jennifer@patriotbankusa.com
Web: www.loanwithjennifer.com
Information provided in this e-mail is intended as a tool for Real Estate Agents to be informed of the approximate rates available for home mortgages. It is intended for their sole use and purpose only and is not for distribution to the general public. Depending on the borrower's actual circumstances, such as credit, debt ratios, etc., rates may vary. Special niche products may also be available.
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