Archive for the 'Financing' Category

U.S. stocks decline on weak European growth

NEW YORK — Worries about Europe’s economic and debt problems sent stocks Tuesday to their first loss in four days.

The major indexes bounced up and down in another volatile day. The Dow Jones industrial average fell more than 120 points in the first half hour of trading after a report showed that Germany’s economy stalled last quarter and dragged down growth for Europe.

The Dow recovered and had a slight advance at midday, but resumed its drop after the leaders of France and Germany tried to calm worries about Europe’s debt problems by pushing for long-term political solutions. Investors were hoping for immediate financial measures like the introduction of a single bond jointly backed by the eurozone’s members. The Dow fell as many as 190 points in the early afternoon before again recovering. Read more »

SAFE Act Reform effective April 1, 2011

SAFE Act Reform effective April 1, 2011

Hello Everyone ~

There was another huge change in the mortgage industry just a few days away. Clients obtaining mortgage financing effective April 1, 2011 will have two options to choose from now.  The traditional “points” vs. “no points” structure. Please understand that it is important that you talk with an knowledgeable mortgage professional and understand the true cost of a loan.  It’s not just about the interest rate any more!

Breckenridge Colorado

What to Do if You Want a Mortgage Loan: Nothing

credit score What to Do if You Want a Mortgage Loan: Nothing You know by now that getting a mortgage loan in 2010 is far more difficult than getting a loan in 2005 was.

You have to provide so much documentation that you might feel there’s no end to “One more piece of paper.” And that just gets you to the initial approval. It doesn’t get your loan closed.

Under the terms of the Loan Quality Initiative, which went into effect June 1, 2010, lenders are required to track “changes in borrower circumstances” between application and closing.

If your circumstances change, even slightly, your loan can be denied outright, or sent back to underwriting for a second review.

Why is this happening? Because Fannie Mae is holding lenders accountable. Should you take out a new mortgage loan and later miss some payments, Fannie Mae will look back at your loan, and your credit history. If they discover that you took on new debt just prior to closing the loan, they can make your lender buy back the now-delinquent mortgage.

Of course lenders aren’t going to take chances, so they’ll make sure that your circumstances are the same or better on the day of closing as they were on the day you made application.

To you as a borrower, that means not opening any new credit accounts for any reason, not adding to your outstanding balance on any existing card, and not depleting your checking or savings accounts. To be on the safe side, you should discontinue all of these activities  least 30 days before making your mortgage loan application.

Why? To give your creditors time to make their reports to the credit bureaus before your mortgage lender checks for the first time. If you charged a new refrigerator on the 15th, the added debt might not appear on your credit report until the 30th. So if you make a loan application on the 20th, it wouldn’t show up. But when the lender pulls a final credit report just prior to closing, it would be there.

While the Loan Quality Initiative is new, denying a loan at the last minute because of foolish mistakes is not.

I recall a young couple a few years ago who had been trying to buy a home. Every time they found one they liked, it failed to appraise and the sellers refused to negotiate. They paid for three appraisals, their cash reserves were dwindling fast, and they were no closer to owning a home.

Finally, they found another house they liked and it appraised for the selling price. The lender – who had been working with them through the entire ordeal – came to our office positively crowing because he was finally going to close a mortgage loan for this couple.

I remember his words distinctly: “The only thing that can go wrong now is if they go out and buy a car.”

Well … That shiny new red Jeep Cherokee was very pretty.

In spite of their lender’s instructions to do nothing with credit and nothing to reduce their bank balances until after their loan closed, they just had to celebrate. And to them, celebrating meant buying a new car.

So, have patience. Plan ahead when you’re going to want a loan, and don’t do anything with your credit for at least 30 days prior to making loan application. Once the loan is closed, you can do as you wish.


Bio: Mike Clover is the author of this article and is a 9 year Banker. He writes about the credit sector and has other projects such as,, and


Stimulus package refinancing now available

Phase 1 of the HASP government is under way.  Bank of America is able to refinance clients to a lower rate up to a loan to value of 105% provided their first mortgage payment is on time.  There are two different types of mortgage refinances:

Refi Plus:
Loan must be currently serviced by Bank of America
Loan must be serviced by Fannie Mae or Freddie Mac 
Stated income stated asset loan- no documentation needed
Automated value to determine value
Second mortgage if it is with Bank of America will be subordinated regardless of combined loan to value

DU Refi Plus:

Loan being serviced by another lender
Loan must be serviced by Fannie Mae or they should contact their current lender
Full documentation loan
Maximum 105% loan to value

Please contact:
Michael Murray
Bank of America
Cell:  301 346-9660
Office:   301-571-1439

Colorado real estate

Should you buy or refinance? Are we at the bottom?

There is very promising evidence that the government is now starting to direct their buying power in the lower coupon range.    Why haven’t rates dropped more?

Three reasons why rates haven’t been affected too much:

-As rates drop, the value of existing servicing portfolios decline due to higher potential that loans will pay off early.

-Large whole loan purchasers (our investors) offset losses from their existing servicing portfolio with lower servicing values on new business.  In other words, our prices do not reflect the full value of servicing that we would typically get in a normal market environment.

-Large foreign investors/banks have been selling Mortgage Backed Securities just as quickly as the Fed has been buying them.  As a result, simple supply-side economics have not forced higher prices/lower rates.

Will rates go lower? Read more »


The stimulus package changed the tax credit for purchases in 2009. Feel free to pass this on to family, friends, coworkers, anyone you feel could benefit from this knowledge!
The Economic Stimulus Package has just been updated for the first time homebuyer that includes an $8,000 tax credit and the 15 year payback provision has been eliminated.

First time homebuyers really have incentive if they buy real estate between April 9, 2008 and July 1, 2009

first time homebuyers First time homebuyers really have incentive if they buy real estate between April 9, 2008 and July 1, 2009

If you’re a first-time homebuyer, OR if you (and your spouse) haven’t owned a home for the last three years, you qualify for up to a $7,500 tax credit. (The credit equals 10 percent of the home’s sales price, up to $7,500.) That means if you owe the government $3,000 in taxes this year, you’d pay nothing and get a $4,500 refund!

This tax credit, or Housing and Economic Recovery Act, applies to primary residences purchased between April 9, 2008 and July 1, 2009. Even if you already own a lot, you can get the tax credit if you start building your home (though you must occupy it by July 1, 2009). All you have to do is claim the credit on your 2008 or 2009 tax return.

But, the credit is meant to stimulate the economy, rather than give people free money; buyers must begin paying back the credit — given interest free — two years after they claim it, and they have Read more »

Another tax hike?

breckenridge tax1 Another tax hike?In November, the Summit County will ask for a property tax increase of approximately $11 for each $100,000 of property value, meaning a $600,000 home would have an extra $66 added to its tax bill.

The county wants to raise $5.9 million a year to create a fund for wildfire prevention, as well as to protect open spaces and expand affordable housing programs.

Part of the county’s reasoning is that fuel costs, materials for roads and health insurance for employees is skyrocketing. If approved, the new tax increase would start in 2010, end in 2022, and replace a mill levy that currently brings in approximately $3 million a year for open space. The county hasn’t asked for a tax increase since 1992.

Provided real estate Breckenridge

Fannie Mae and Freddie Mac are well capitalized

mortgage Fannie Mae and Freddie Mac are well capitalized Despite media reports, it’s not all bad news regarding mortgages these days.
Fannie Mae and Freddie Mac are adequately capitreaalized, according to the Office of Federal Housing Enterprise Oversight (OFHEO), which closely monitors Fannie Mae and Freddie Mac in an effort to promote a strong real estate market nationally. That means Fannie Mae’s and Freddie Mac’s capital exceeds what OFHEO requires (and OFHEO requires more than the statutory minimums).

James B. Lockhart, OFHEO director, issue a statement July 10, 2008, that said Read more »