2009 Archives - Arizona Mortgage Team

Justin McHood: Mortgage Commentator in 2010

December 31, 2009 15 Comments

Ok, so now that 2009 has drawn to a close, let’s put it behind us.

Whew.

On to 2010!

Justin McHood: Mortgage Commentator In 2010

You may have noticed a few changes here at AMT.com and may even be wondering “what in the world is Justin up to?” Well, to put it simply – I have decided to take myself out of the cockpit of the racing car on the mortgage racetrack and work on the pit crew supporting drivers behind the scenes as they speed around the track trying to get loans closed for customers.

I am no longer a loan officer, I am now a mortgage commentator.

What is a mortgage commentator?

The good news is I get to make it up as I go along but I think it means I still get to write about mortgage stuff for all of the various blogs/publications that I currently write for, talk with all of the various people in the business — but I am no longer on the front lines as a loan officer.

I still get to talk about changes to mortgage guidelines, I just don’t have to tell a customer they no longer qualify because the guidelines have changed.

I still get to tweet out that underwriters are sometimes crazy, I just don’t have to argue with them any more.

I still get to tell people all about the $8000 tax credit, but I don’t have to answer their phone calls when they call with a “quick question” that they didn’t want to an.

What exactly does a mortgage commentator do?

Here are just a few thing that this mortgage commentator will be doing in 2010 as it relates to the mortgage business:

Writing, talking, sharing information about the mortgage business. In lots of different places.
Helping Academy Mortgage get the word out that if you aren’t getting your loans closed in 10 days, it is taking too long.
Helping other loan officers work on their web presence. You may be surprised at how many great loan officers there are who are simply too busy to have a good web presence.
Helping other real estate professionals with their sites. Need a great mortgage guy to give you content for your Real Estate website on a regular basis? I am your the guy. And I have more than just a few references who hopefully will vouch for me that I can write a somewhat interesting mortgage-related blog post on command.

And what does a mortgage commentator do when he isn’t in the booth calling the play-by-play of the mortgage business? From everything I can put together, he teaches a few web-related classes every now and then to people in the RE.net space and mostly works on other web-related, SEO projects.

I would like to personally thank the folks at Academy Mortgage (home of the ten day close) for giving me the chance to be a mortgage commentator – without them, the truth is I was thinking of leaving the business entirely.

So I am excited to still have a reason to attend REBarCamp as well as keep talking with generally everyone in the RE.net space that I have met in the last couple of years. All Mostly great folks by the way.

Plans For Arizona Mortgage Team In 2010

Now that I am a mortgage commentator, I am adding great loan officers who want to contribute mortgage related content right here on this site. Look for the list of contributors to grow as fast as I can find great loan officers who can be helpful. I am also toying around with a few home search features – who knows what will come of that.

Lastly, a special shout out to just a few of my friends in the local Arizona Real Estate Digerati Scene who have made 2009 possible to bear:

Jay Thompson. Always fun to hang out with at EVFN and a good influence for the pursuit of greatness. Well deserving of the great things ahead of you. #Grandaddy #Elvis

Nick Bastian. I never understood why he thought light rail was cool – until I rode it. Now I ride it all the time with my son. Turns out people people buy homes near light rail.

Calie Waterhouse. Way, way too nice and knows everyone. Always fun to meet with at Starbucks.

Shar Rundio. Made a great move this year to #ThompsonsArmy. One of the funnest people to work with to negotiate against the seller on behalf of her buyers. She has a great poker face, you never know for sure when she is bluffing.

Dean Ouellette. Introduced me to the possibility that there are actually people (not just one) who buy $30,000 houses and want a loan for them.

Dru Bloomfield. Every time I talk to her, I am reminded that she is slightly closer to perfection than the rest of us.

Steve Belt. If you ever get invited to a house party at the Belt residence, Do Not Miss It. They know how to party. I am looking forward to seeing your new venture blossom.

Gary Miljour. It is only a matter of time before we find ourselves playing for the same team. A great loan officer and someone who can survive the mortgage business.

Christoph Schweiger. I put you next to Gary for a reason… shhh, I won’t tell. Now we can whine about underwriters together. Will you please start blogging again?

Shane Hollenback. Hey, can I get on TV now that I am a mortgage commentator?

Irene Hammond. No more breaks from blogging allowed.

Jonathan Dalton. I thought you were full of hot air until you let me be your apprentice on a few transactions. I take back all of those bad things I said. It is still fun to listen to your stories even though you absolutely-without-a-doubt-love-to-slap-me-around like a little brother.

Candace Robinson. Hey, whatever happened to AZREBN?

Elizabeth Newlin. You are one of the funniest people out there – make sure to keep blogging. No, you can’t keep calling me a brown noser.

Steve Lines. Soon to be (more) famous if he can really get loans closed in ten days.

Patrick Lewis. Sorry. Someone had to be the last one on this list and I couldn’t make it Steve. And yes, you know I will help you get elected when needed.

Did I miss anyone?

Chances are…Yes.

And I apologize.

It isn’t because you didn’t make me laugh at least once this year, it is just because I am thoughtless a regular guy.

On to 2010!

– Justin

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Filed Under: Miscellaneous Fun Tagged With: justin.mchood

Will Main Street Get A Bailout?

December 28, 2009 Leave a Comment

One of the common phrases I have heard over the last couple of years is “how come Main Street doesn’t get a bailout?”

And I have usually just shrugged and said that no one had called me to ask my opinion but as soon as I heard of it happening, I would be sure to keep everyone posted.

I just now caught the first whiff that the federal government *may* be taking action to “bail out Main Street”.

Bailing out main street could take any number of different forms, but the most probable form in my opinion would be some kind of mechanism that deals with the problem of Negative Equity – or where people owe far more than their home is worth.

From Bloomberg:

Dec. 28 (Bloomberg) — The U.S. Treasury Department’s expansion of its capital backstops for Fannie Mae and Freddie Mac may foreshadow a shift in the government’s mortgage- modification tactics, Keefe, Bruyette & Woods analysts said.

The Treasury announced Dec. 24 that the two mortgage- finance companies, which were seized by the U.S. almost 16 months ago, could tap an unlimited amount of capital for three years, up from as much as $200 billion each. The companies’ needs would be unlikely to exceed the prior limits “even in a stress case scenario,” Bose George and Jade Rahmani, the New York-based analysts, wrote in a report today.

“Given this outlook, we believe that the main driver of this significant change is the flexibility it gives the government to take more aggressive action to support the housing market, including potentially going down the road of allowing some form of principal writedown,” the analysts wrote.

Ok, so that doesn’t exactly mean that an announcement is imminent – but it is interesting to see what possible things may happen:

Shifting to principal forgiveness to cure so-called negative equity that makes borrowers more likely to abandon loans whose payments they can afford may prove more costly for Washington-based Fannie Mae and Freddie Mac of McLean, Virginia, by sparking “another wave of delinquencies as people look at it as a rational choice” to default to seek the aid, George said in a telephone interview.

While you probably shouldn’t bet on some kind of formal principal reduction program coming out any time soon from Fannie Mae or Freddie Mac, if I have learned one thing in the last two years, it is this:

Anything is possible.

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Filed Under: Loan Modification, The Business of Mortgages Tagged With: Loan Modification, negative equity

Who Do Loan Officers Work For?

December 17, 2009 1 Comment

Original post:
Are Loan Officers Your Friend?

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Filed Under: Miscellaneous Fun, The Business of Mortgages Tagged With: loan officers

12 Months of Default

December 15, 2009 1 Comment

Feeling a little blue about your property values in 2009?

You are not alone.

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Filed Under: Miscellaneous Fun Tagged With: 12 Months of Default

FHA Downpayment, FHA Insurance Costs To Rise?

December 2, 2009 2 Comments

Is it about to get tougher to get an FHA loan?

It is according to the Chicago Tribune.

According to a story that ran today, look for FHA insurance (UFMIP and/or Monthly MI) and down payment requirements to rise for FHA loans soon.

Among the steps scheduled to be outlined today are greater down payment requirements and higher credit scores for consumers who seek FHA-backed mortgages.

Few specifics of the plan, designed to limit risks to the FHA’s loan portfolio, are expected to be divulged immediately. But it seems clear from testimony that Housing and Urban Development Secretary Shaun Donovan will give later today that home buyers are going to have to dig deeper in their wallets to purchase a home.

“We have made the decision to exercise our authority to increase the up-front cash that a borrower has to bring to the table in an FHA-backed loan to make sure that FHA borrowers have more “skin in the game” and a stronger equity position in their loans,” Donovan said in prepared testimony that will be given Wednesday afternoon to the House Committee on Financial Services. A copy of Donovan’s testimony was released Wednesday.

Donovan said he plans to provide more detail on the changes next month.

Currently, borrowers are required to have a 3.5 percent cash down payment.

While the FHA plans to increase minimum credit scores “for the time being,” it also is studying whether such an increase should be combined with other changes in underwriting requirements.

The agency also plans to seek permission from Congress to raise the annual mortgage insurance premiums.

One specific that Donovan is expected to offer is that sellers will be able to help buyers with only 3 percent, rather than the current 6 percent, of associated closing costs.

Regardless of what the details are that will “soon be announced” – one thing is clear:

It is about to get tougher to get an FHA loan.

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Filed Under: FHA Loans Tagged With: FHA Loans

WordPress Class: Cheap, Easy and CE Credit for AZ Real Estate Agents

November 30, 2009 Leave a Comment

I have been joking with a few of my friends lately that I could teach *almost anyone* how to use WordPress to where it was “good enough” in an hour or less.

If you are in Real Estate (or Mortgages or Title or anything close to Real Estate) save yourself some time and effort and get tutored by a pro. Trying to learn it all yourself will cost you more time, grief and effort than it is worth (trust me, I speak from experience).

Here is an upcoming class taught by a few friends of mine:

Internal Dynamics School of Real Estate, Excelnet Media and Sales Evolution are proud to offer the first ever WordPress Training Program for Real Estate Agents in the metro Phoenix area. The cost of the 3 hour course is $25 and you will also receive 3 hours of continuing education. The hours will count for “Real Estate Legal Issues”

WHEN: December 2nd, 2009

WHERE: Great American Title Agency

First Floor Training Room

1630 S. Stapley Drive, Suite 131

Mesa, AZ 85203
View Larger Map

INSTRUCTORS: Dale Stouffer, ExcelnetMedia.com and Dean Naughton, Sales Evolution

TIME: 9am – noon

COST: $25 per person

Registration Restricted to 20 participants, Call 602-363-2960 or email [email protected] to reserve your seat

Topics Covered;

Legal requirements of a Real Estate Website
Benefits of using WordPress
How to use WordPress for your website
How to do Search Engine Optimization for your Real Estate Website
How to create Tag Lines
Professional Standards

Here is a link to the ExcelnetMedia.com website for more information: Real Estate Agent CE Class Credit Learn WordPress and Real Estate Website Legal Issues

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Filed Under: Miscellaneous Fun

How Bad Will Foreclosure Hurt Your Credit?

November 30, 2009 9 Comments

Ever wonder what would happen to your credit score if you had a 30 day late payment? Or are you deep in debt and wondering what to expect to happen if your credit score if you file for bankruptcy? Or maybe you are thinking about doing debt settlement as a way to possibly try to avoid bankruptcy?

Up until recently, financial mistakes were somewhat of a mystery as to what impact they would have on your credit – but thanks to the folks at FICO, now you can have a pretty good idea what several common financial missteps can have on your credit score.

It appears as if the people at FICO are at least trying to be a little more transparent as to how FICO scores are calculated – which in my opinion is a good thing. Now people can have a good idea of exactly what kind of impact their decisions will have on their credit score rather than just “I have bad credit and I am not exactly sure why…”

According to FICO spokesman Craig Watts:

“I hope this information will help people to better understand FICO scores and the value for them of avoiding credit missteps. It illustrates key points such as the higher your score, the farther it can fall if you stumble. Getting and maintaining a good score isn’t complicated. We all just need to pay our bills on time, keep credit card balances low and take on new debt sparingly. “

Regardless of whether or not FICO releases more information about their scoring model – we know way more about it today than we did a month ago!

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Filed Under: Credit Scores Tagged With: FICO Damage Points, FICO Scores

Case Shiller: Property Prices May Fall Another 45%

November 28, 2009 Leave a Comment

Predictions.

Maybe they will come true, maybe they wont – but here is one from a fairly credible source that says property values still have a ways – a long ways – to fall.

According to the guys at Lender Implode, the 10 major cities in the Standard & Poor’s/Case-Shiller home price index have risen 5% from their April low, but the index is still predicting a massive 45% fall from today’s values.

One insightful comment came from “John L” who appears to live right here in Phoenix:

The predictions pointed out in the article can be confirm by an analysis of the change from lax credit underwriting for home buyers starting in late 90’s, which created an undue stimulus on the demand for real estate, back to the traditional credit underwriting standards for home buyers.

Incomes have not risen for years. The amount of the mortgage a home purchaser is qualifies for is determined by their “documented” income. Home prices will have to decline to a level to match the buyers purchasing ability.

The more curious fact is the continued government intervention in the market for the benefit of the FED, FNMA, FHLMC, Wall Street firms and banks.

The use of below market interest rates, tax credits, grants to “non-profit” organizations for down payment assistance and in Arizona silent seconds (no interest, no payment, debt forgiven after 15 years) for 22% of the purchase price, have the effect for new home buyers of their overpaying for their homes and artificially increasing the value of real estate.

When the government’s money (our money, our children’s and grandchildren’s money) runs out, the undue stimulus and creative financing will finally be eliminated from the market leading to a sustainable lower value of real estate.

Will property values here in Phoenix rise or fall in 2010? I don’t pretend to know for sure – but if the Case Shiller model holds any weight, I wouldn’t bet the farm on them rising too much from their current levels anytime soon.

That said, the guys at Calculated Risk have an expanded analysis of this – not quite as nerve-wracking.

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Filed Under: Buying a New Home in Arizona, Miscellaneous Fun, The Business of Mortgages Tagged With: Home Values

640 Is The New 580

November 27, 2009 1 Comment

For many years, if you wanted to get an FHA loan, you didn’t actually have to have a “minimum” credit score – but about 2 years ago, that changed when lenders started requiring a minimum credit score. When lenders first started requiring minimum credit scores, the first minimum credit score they used (or most of them used anyway) was 580.

Then over time it moved to 620.

And now I am seeing many lenders move their minimum credit score requirement to 640 for FHA loans.

Which means that your mid credit score needs to be above 640 for many lenders to be able to help you get an FHA loan. Not all lenders are requiring a 640 yet – but if history is any indication, they will all soon be requiring a 640 mid credit score before they will loan you money.

Yes, guidelines are still getting tighter – and I don’t see the tightening trend reversing direction anytime in the near future.

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Filed Under: FHA Loans Tagged With: FHA Loans, fha minimum credit score

Justin McHood: Mortgage Commentator in 2010

Will Main Street Get A Bailout?

Who Do Loan Officers Work For?

12 Months of Default

FHA Downpayment, FHA Insurance Costs To Rise?

WordPress Class: Cheap, Easy and CE Credit for AZ Real Estate Agents

How Bad Will Foreclosure Hurt Your Credit?

Case Shiller: Property Prices May Fall Another 45%

640 Is The New 580

Loan Officer Hotline: 602-606-7639

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