Chat with Charles

While products and guidelines are constantly changing within the mortgage industry, it is rare to see sweeping changes occur which have the potential to signifcantly affect how the industry does business on a day-to-day basis.  Such lightning struck last week, however, when Freddie Mac revealed they were taking dramatic steps designed primarily to decrease the default rates that have been steadily rising over the past few years. 

Freddie will no longer be buying 100% stated income loans for borrowers who are salaried or hourly (W2) employees.  Many lenders jumped immediately on this bandwagon and dropped their maximum loan to value (ltv) for such loans to 95% of the sale price or appraised value.

There were a number of other major policy changes announced last week.  Some of these precipitated the closings of a number of major players in the residential mortgage lending market, bringing the number of lender closings in the past six months to 33.  I'll write more about these changes next week. 

For now, rest assured that Rivercrest Mortgage isn't going anywhere.  We'll continue to get you the best deals anywhere in the marketplace as long as there is breath in our bodies!  Have a great weekend, everyone!

Charles

The “Triopoly” of the big credit bureaus strikes again.  This time, they are not just charging you more than once for a simple credit report that you already paid for, they are actually selling your credit information as soon as they pull the credit report and before the proverbial ink even dries.  They call these "Trigger Leads," and they're generating huge profits for Experian, Equifax and TransUnion and putting thousands of clients squarely between the crosshairs of scammers and unethical lenders who have just one thing on their minds: ripping you off.

How does this work?  First thing Monday morning you agree to let your loan officer pull your credit and start your loan process. Tuesday morning, your phone rings. It's the sweet-talking, soft-spoken girl from Fly By Night Mortgage, the first of a half dozen lenders, calling to tell you she can beat whatever deal your loan officer is offering.  I have horror story upon horror story from clients who went with an out of state or online lender to save money, only to find out that they'd agreed to 60-90 days of hair-pulling, begging and cursing in their attempt to get their loans closed, then finding out when they walk into closing that the "deal" they were told they were getting is now going to cost them more than their Rivercrest Mortgage loan officer (the hero of the story, in case you missed it) originally quoted.   

"How in the world is this being allowed to happen?!?" you may rightfully be asking.  Good question.  Probably because the big bureaus have more money to pay lobbyists.  A better question might be, "So what can I do about it?"  Fortunately, your old buddy Charles has the answer:

YOU CAN OPT-OUT BEFORE WE PULL YOUR CREDIT. 

Aside from saving them tons of junk mail, do you really want dozens of random companies to know your credit score, social security number, address and phone number?  It is in the best interest of each of us to keep our most private information PRIVATE.  Each time your credit is pulled by a different originator, it can cause a small ding to your credit score.  That ding can mean ultimately higher costs to you on your mortgage, car loan, credit line... everything.  

Here's all you have to do:  Call 800-5-OPTOUT (1-888-567-8688) or fill out the opt out form at https://www.optoutprescreen.com.   You can finish the whole process in about five minutes.  But be aware. The agencies have up to 5 business days to execute the opt out and remove your information. You need to wait 5 business days before we pull your credit to avoid the fate of the trigger.

Many organizations are working on proving that this is an illegal practice infringing on the rights of both the customer (you) and legitimate and highly ethical loan officers out there (Rivercrest).  Until then, take the few minutes needed to opt-out, and tell all your friends, families and coworkers to do it, too.

Hopefully, lawmakers of our great land will see the insanity in this practice and outlaw it forever.  Until then, it's up to us to help each other out.  I'm here for you, folks.  I've got your back! 

On January 26, 2007, Freightliner of Portland announced it was laying off 800 employees from various facilities, many of which will be long term union employees.  That got me to thinking... "What would happen to my clients if they lost their job?"  The reality of the situation is that many of us don't have much of a cushion, should we fall on hard times. 

Since our clients chose wisely when selecting their mortgage broker(!), many of you have accumulated some significant equity in your homes.  That's great.  What isn't so great is that you have no way to access that equity, should you need it, if you don't have a Home Equity Line of Credit (HELOC) in place. 

"But Charles," I hear you saying, "you told us that credit lines are fast and easy, right?  We can get one when we need it."  Uh, oh.  Not so fast, slick.  That's only partially right.  Rivercrest Mortgage has found some of the fastest, most hassle free credit lines anywhere, and our rates are better than any of these fast talkers on the radio and television, but...

... are you listening...

I CAN'T GET YOU A CREDIT LINE IF YOU DON'T HAVE A JOB! 

That's right.  You have no way to access all that equity once you're out of work and can't show the lender an income stream.  That's why it's critical to have your HELOC in place now!  You pay $50 or so per year to keep it open, but you only pay on it if you use it.  This way, you have access to your equity instantly, for emergencies or when you need it fast.  Is $50 a reasonable cost for peace of mind?  Call today.  You can have your line ready and available inside of two weeks.