Home Loan Originator Database
Mortgage shoppers can search the Nationwide Mortgage Licensing System Consumer Access and learn if the mortgage originator they are working with is licensed, has had disciplinary action, or, worse, has had his or her license revoked. The new database shows data for the previous 10 years, includes aliases, and searched all state, so disciplinary action in other jurisdictions or states is retrieved. See www.nmlsconsumeraccess.org/ for more information.
San Diego California downtown condominiums
Why It’s Tough To Get A Home Loan
Why lenders are tightening the requirements to get home loans.
Orange County California real estate lawyers
Regulated out of Business?
real estate market
As many of you know, there is pending legislation that would regulate (read: reduce or eliminate) the compensation of mortgage originators. The Fed has not realized that many of the worst players are no longer in the business and no lenders are offering any of the worst mortgage products. Imagine telling a Realtor that he or she would be limited to a certain $ amount of commission on a sale, regardless of the price of the home? Anyone in a sales position should find this scary, whether you sell automobiles, copiers, or anything. Does any thinking person really think that these things benefit the consumer, or that they actually HARM the consumer by eliminating some of the most talented people in the industry and FORCING consumers to one or two large (government aided) banks.
FHA Home Loans – The Next Bailout?
In San Diego, one major mortgage lender's new FHA loan originations went from approximately 2% to approximately 60% of new loans! The low down payment (apprx. 3%) and relative availability of FHA home loans are helping to drive hoards of borrowers to the FHA. Many new homeowners with the most risk and fewest dollars are going to the FHA for loans.
In 2007, they handled 3% of new loans. This year it's 26%. However, these additional higher-risk loans are stressing the FHA insurance system. So, now the FHA's own somewhat lax standards are coming back to create a huge hit to their loan insurance fund. It has dropped the FHA insurance fund 39% since last year, raising concerns for the FHA requiring its own bailout.
Related prior posts:
San Diego Housing Market … Hitting the Lottery (or not)
New Relief Program For Homeowners at Risk of Foreclosure
Hope For San Diego Homeowners
Real Estate – An Innovative Way of Not Filing Bankruptcy
Govt. Take Over Of Fannie Mae and Freddie Mac Could Cost Billions
The Wall Street Journal's Web site noted that it seems certain the Government may take over the nation's mortgage giants Fannie Mae and Freddie Mac this weekend.
Fannie Mae and Freddie Mac lost a combined $3.1 billion in the second quarter. But, just in the last two weeks both companies said they had enough resources to withstand the losses. Now, one must question these statements.
Together these two mortgage giants hold about half the U.S. mortgages. This news, together with the grim falling home values makes me question why the major news media are still not using the correct terminology for this situation … HOUSING DEPRESSION. Some of our prior popular posts on Fannie & Freddie were:
Stocks of Housing Giants Suffer Huge Losses
Summary of the “Housing and Economic Recovery Act of 2008
Real Estate – Jim Rogers says Fannie and Freddie are a ‘disaster’
Nation’s Mortgage Lender Records Loss of $2.2 BILLION +$1.1 BILLION Charge Off
Fannie Mae and Freddie Mac pump up to $200 billion into real estate market
Home Equity vs. Second Mortgage
Citigroup spent $1 billion advertising it's Live Richly campaign from 2001 to 2006 encouraging Americans to take out home equity loans. Marketing executives knew that "second mortgage" had an unappealing ring. So they seized the idea of "home equity," with its connotations of ownership and fairness. Advertising historians look back at the '80s as the time when bank marketing came into its own. Citigroup led the way by hiring away advertising staff from packaged goods companies like General Mills and General Foods, where catchy ads were more common. "Banking started using consumer advertising techniques more like a department store than like a bank," said Barbara Lippert, an advertising critic for the magazine Adweek. San Diego California income property listings