Happy April Fool’s Day

29 03 2011

It would be WAY too easy to make a cheap joke about the new Fed lending guidelines that will be enacted this Friday, April Fool’s Day.  I’ll let you share your jokes in the comments section below.

But a tornado of new lending changes will hit Oklahoma buyers this Friday, and I want you to be prepared.  The Fed’s LO Compensation Plan aims to help borrowers by prohibiting abusive or unfair lending practices.  Simply put, lenders cannot “double-dip”, receiving money from the borrower and the lender.  They also cannot steer a client to a worse loan product so they can make more money, and must disclose at least 3 specific options to each client.  And they cannot be paid based on the terms of the loan, like credit score or other factors.  They can only be paid a flat salary or a flat fee based on the amount of the loan.

There is already way too much confusion about how to implement these guidelines, so I put together a video to show you how I will keep it simple and understandable for you, the client, in the face of these changes.  Please click HERE for a short video explaining how I will help you retain your sanity on April Fool’s Day.

Please let me know what makes sense to you and what is confusing.  And as always, I’m here to serve.  Thank you!

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What does renting REALLY cost you?

29 03 2011

 

Ok, so I understand the monthly payments, but how do I compare all the “hidden” costs and benefits of renting and owning a home?  Click HERE for a short video giving you the real costs of renting.

As always, I am here to help you finance your life.  Please reach out to me with your questions.  Thanks!





LO Comp Changes and How They Affect You

21 03 2011

Once again, the rules of mortgage lending are changing.  Effective April 1st, 2011, the Fed’s Loan Officer Compensation Plan will change how much a mortgage will cost and will reduce the available options for you.

The Fed wanted to benefit consumers by limiting unethical steering practices and limiting the amount that loan officers could make and the ways they were compensated.  They did this with the LO Comp Plan.

Benefits for you:

  1. LOs can only be paid by you or by the lender, but not both.
  2. LOs can only be paid based on the loan amount, not your credit score or other terms of the financing.
  3. LOs are prohibited from steering you to lenders that would pay more money.

Drawbacks:

  1. Expect delays and added paperwork in the loan process.  The Fed is still clarifying parts of its comp plan, and many of the street-level implementations of these new requirements are still being written and revised by lenders.  In short, the Fed is still trying to figure it out, as are all the lenders.
  2. Rates and fees are both likely to increase.  The added legal and regulatory burdens raise costs for lenders, which indirectly raise the cost of mortgages for the customer.
  3. Some loan programs will disappear or change.  Certain mortgage programs, like bond money programs, will be noncompliant under the new regulations and must be changed or halted.

These are just the beginning of many changes in the industry.  The Dodd-Frank Act, which will be enacted in the future, will further change the role of mortgage lending.  It’s more important than ever to have someone you trust who is looking out for you during these turbulent times.  For honest answers and guidance through the coming changes, please reach out to me.

As always, here to serve.





Green means go!

14 03 2011

Green.  It means go.  It means spring.  It means cash.  And for mortgage-backed securities, it means dropping rates

If you can handle the scare, click HERE to check out the national averages for 30 year fixed rates from 1986 to the present.  It’s sobering to see how cheap our home buying money is right now.

Over the past 30 years, the average mortgage interest rate in the US has been over 7%.  This means that today you could buy over $50,000 more house for the same payment or buy the same house and save over $74,000 more dollars. 

If you were unable to refinance this past year, now is the time to speak with a qualified lender to learn how much green you can save. 

Here to serve,