96 results for author: Dan Shlufman


2014 Interest Rate and Real Estate Market Forecast

I see the same thing for interest rates for most if not all of 2014. In good "rate" times (which will correspond with poor economic news or international issues), we may get close again to 4% on the benchmark 30 year fixed, conforming rate loan. While in bad "rate" times (which will correspond with positive economic news or relative calm in the world) we may get close to 5%. However unless there are significant improvements in the job market and/or inflationary signals, I do not see the bull run of the stock market foreshadowing a huge upward trend in the interest rates. I expect to see rates in the 4s throughout most of 2014 with a possible ...

What is the Role of a Mortgage Servicer?

When it comes to buying a home, the role of the mortgage servicer is an important one that bridges the gap between the borrower and the investor who owns the loan. The role of the mortgage servicer is to provide certain customer service tasks such as: Collect payments from the borrower on behalf of the investor Handle customer service Pay/ real estate taxes and insurance on escrowed loans Negotiate loan modifications on behalf of the investor A major problem with the mortgage servicing industry is that borrowers have not been able to pick their mortgage servicer as they did for their lender. This, coupled with the servicer's insufficient ...

New Requirements for Mortgage Servicers

A. Disclosure Before An Interest rate or Payment Adjusts: On an adjustable rate mortgage, prior to the first adjustment date, a borrower must be given a disclosure with the following information: 1. An estimate of the new interest rate and the monthly payment 2. Comparison to the current interest rate and payment. (Example: Current interest rate is 3.5% and payment is $2,000 per month. New interest rate will be 4.0% and payment will be $2,200 per month.) 3. An explanation as to all aspects of the adjustment a. how the new payment is determined (e.g. 1 year treasury plus 2.75. That is if the 1 year treasury is .25%, the new payment will be ...

The Effect of the Government Shutdown on Housing

The Federal government has now been effectively shut down for a little over two weeks.  Has anybody noticed?  Probably not yet unless you were planning a visit to a National Park; needed paperwork from a government office; had a loved one pass away and could not obtain funeral benefits for Veterans; work for the Federal government; or live in the DC area. However, the government shutdown is starting to have an effect on the nascent housing market. It also is affecting interest rates (both positively and negatively) so we are seeing them stagnate a bit after an initial drop of about .5% in the first days of the shutdown.  I think that there are 5 ...

Appraisals

Appraisals for Higher-Priced Mortgage Loans For higher-priced mortgage loans, or HPML’s, there are new rules on appraisals that will become effective on January 18, 2014.  HPML’s are loans that used to be referred to as subprime mortgage loans. For higher-priced mortgage loans, full interior appraisals are required. This requirement expands consumer protections for HPML’s by adding new appraisal provisions to the Truth in Lending Act. At the time of application, the borrower must be provided with an appraisal notice.  It must state the purpose of the appraisal and inform the borrower that they will receive a copy of the appraisal. The ...

Protect Your Most Valuable Possession – Your Home

The Consumer Financial Protection Bureau (CFPB), has issued new protections to help homeowners having trouble making mortgage payments or/who are seeking a loan modification. Below is an overview of some of these. Better Communication and Information Once a borrower misses two consecutive monthly mortgage payments, the loan servicer must include information about the defaults in the next monthly mortgage statement. Also, a Loss Mitigation Notice must be sent to the borrower within 15 days of the second missed mortgage payment. The Notice has to include the following: a. The date the borrower defaulted on the loan; b. The amount required to bring ...

Last Dance, Last Chance to…..Refinance

Over the past 6 weeks, interest rates have increased by about .75%. So now, rates on the 30 year fixed range from 4.0%-4.5% (depending on loans size, credit, property type, value, etc.) while 15 year fixed loans are 3.25%-3.75%. This is the result of mostly positive economic news; increased consumer confidence; tremendous stock market gains; recovering in the housing market; and last, but not least, the feeling that the Federal Reserve will slow and eventually stop buying billions of dollars in Treasury Bills. So, I suggest that if you have one of the following types of loans, you contact me to see if you qualify to lower your payments. Similarly, you ...

What do the leaves in Autumn and interest rates have in common?

As the weather is starting to turn colder, it is clear that summer is long gone.  Fortunately, now, in addition to the leaves falling, the interest rates are falling as well.  Anybody who has an interest rate of 4.25% or higher should be asking themselves, "Can I save money by refinancing?"  For most people, the answer will be a resounding "Yes!" In addition to an uptick in refinancings, the activity in the real estate market has been picking up over the past few weeks as well. Sellers and buyers are finally meeting on price.  Sellers have accepted that their properties are now worth 15-25% less than they were at the height of the market.  ...

Mortgage Industry Update

I am pleased to announce that I, along with my co-owner and the staff of FCMC Mortgage Corp., have now joined Classic Mortgage LLC.   Classic Mortgage is a mortgage banker in New York, New Jersey and Connecticut.  At Classic, we will be able to offer the same excellent service; low lender interest rates and variety of brokered mortgage products as we did at FCMC Mortgage Corp. However, in addition to brokering loans, since Classic Mortgage LLC, is a mortgage banker, Classic will make the loans themselves on many conforming, high balance conforming and FHA loans. As a mortgage banker, we will have more flexibility over the transactions. ...

The CFPB is Protecting Nobody By Standardizing Loan Officer Comp….And, Why Every Homeowner Should Care!

The Consumer Financial Protection Bureau is attempting to establish standards for what mortgage loan officers should be paid.  And, I don't mean in a way that will protect consumers in any way, shape or form as their name implies. One example of this is a potential rule that would limit MLO compensation to a set dollar amount as opposed to a percentage of the loan amount.  This will mean that a loan officer would make the same $1,000, $2,000 or $5,000 on every loan regardless of the amount of the loan. So, why should every homeowner care? Well, in addition to the fact that it should offend everybody who believes in capitalism and the free ...