Posts Tagged ‘credit repair business’

Fannie, Freddie Reforms Draw Encouragement, Warnings

Posted by Joel pate in Uncategorized. Tagged: , , , , , , , , , , ,

Five years ago, lawmakers largely agreed that a two-year wind down of Fannie Mae and Freddie Mac would be appropriate given the wave of troubles sweeping through the GSEs and the nation’s housing market at the time.  At least that’s what Sen. Mark Warner, D-Va., remembered when speaking to housing reform advocates during a recent Senate Banking Committee hearing on how to smoothly transition the GSE-dominated market to a housing finance system that protects taxpayers, while offering robust mortgage credit.

But a few years can make a big difference in viewpoints.  Today, everyone wants the GSEs gone.  They just don’t know how to do it without tearing up the one string that is holding the entire U.S. housing market together.  The takeaway from the most recent Senate Banking hearing on the subject is no one likes the GSEs, but everyone admits they’re in control for now and cannot be pitchforked to death with private capital and a structure already in place.

Sen. Warner reminded panelists that the 2008 wind down initiative – which is now deemed impractical – received a great deal of support from both sides of the aisle.  Yet, Sen. Warner asked panelists, “When are you ever going to hit that magical time?  That may be an unobtainable goal,” he told the panel.  ”My point is you have to start this process; waiting for the perfect moment leaves a huge amount of uncertainty over this market that is terribly important to our economy.”

But finding the right plan – one that brings private capital back in without disrupting mortgage credit is difficult and often creates points of differentiation among housing reform experts, the testifying panelists noted.

One of those panelists – James Millstein, CEO of Millstein & Co. and a key player in the 2008 restructuring of AIG – warned panelists about a dramatic wind down of the GSEs.  Millstein said a transition without the supporting entities still functioning in some capacity could curtail mortgage credit, creating a risky proposition for the nation’s housing market and economy.

He noted that without the right supports, “You are depending on tens of thousands of different investment managers, saying they will build this with you.”  He added, if they don’t come, then you’ve essentially shut down your entire mortgage market.

Instead, he recommends a restructuring plan that maintains the core of the agency’s function until private capital can effectively fill in those holes.

Millstein told lawmakers he supports the intent of Senate Bill 1217 – the Housing Reform and Taxpayer Protection Act – but has a few caveats of his own.  One of those being the need to keep Fannie and Freddie operating in some capacity during the transition.  The legislation proposes the creation of the Federal Mortgage Insurance Corp. (FMIC), which would replace Fannie Mae and Freddie Mac, providing a government backstop for investors in mortgages.  However, the backstop would only be triggered after private investors have taken a substantial portion of the first-risk.

Millstein’s not against the plan or private capital, but says in prepared testimony, “the one viable path” includes restructuring, recapitalizing and privatizing the single-family and multifamily guarantee businesses of the GSEs.  He says doing so would ensure a durable layer of private capital before the FMIC backstop takes effect.

Millstein’s plan calls for eliminating the GSEs charters, winding down the portfolios, while allowing them to still facilitate the purchase of mortgage loans from small banks and credit unions and to manage the workout of the troubled loans they guarantee.

He then says to fully privatize the single and multifamily businesses, separately subjecting them to safety and soundness requirements.  “In short, I propose fixing the problems with these businesses and using what remains to bridge to your new system,” he explained.  The idea is to ensure mortgage credit doesn’t contract, that the market is not leaning too heavily on unseen private investors and making sure the Treasury is not saddled with losses from remaining Fannie and Freddie liabilities.

Millstein’s chief concern is that a final plan to move away from the GSEs will remove some of the stability that the current GSEs do offer to today’s market – even if they are not the ideal.  “You should not trash the assets that are currently doing this for the market,” he said.  “That to me is crazy.”

While Millstein is wary of a hard and fast deadline for reform, Mark Zandi, chief economist of Moody’s Analytics, agreed the process should be handled with care, but laments the negative influence a GSE-dominated market can have on housing.  “The longer Fannie and Freddie stay in government hands, the more lawmakers will be tempted to use them for purposes unrelated to housing,” Zandi said.  ”This has already happened.  Last year’s payroll tax holiday was partially paid for by raising the premiums Fannie and Freddie charge homebuyers for providing insurance.”

And while he recognized the transition away from GSE dominance can be tricky, he sees no other solution than to move forward with it.

He warned that policymakers may eventually face the temptation of using the GSEs to lend again to people who cannot afford mortgages, taking the country back to where it was before the housing crash.  He believes the current proposals still need work, saying they “lack a clear plan for getting from the current housing finance system to the future one.”

Still, he concluded his testimony, saying “it is eminently doable.”  He views the GSEs as unfinished business and suggested it’s time to pursue serious reforms.  Despite his eagerness to see reform, Zandi believes it’s critical the GSEs continue operating until a new system is operationally functional.

Yet, John Taylor, president and CEO of the National Community Reinvestment Coalition, responded to the debate in Congress with a warning on how an end to Fannie and Freddie would disrupt the housing finance system as we know it, freezing out low-to-moderate income borrowers and the young homebuyers who essentially provide fuel to the market.

His group has been taking a hard look at a world without Fannie and Freddie — or the affordable housing goals that, he says, have already been lowered by FHFA.  Taylor notes that, historically, many new buyers, and a large part of the entire market, have been served by the GSEs.

“It’s very appalling how little thought has been given to that,” Taylor told HousingWire.  He notes that back in ‘08 and ‘09 the affordable housing goals accounted for $500 billion worth of securitizaton of affordable mortgages, but they have been declining ever since.  Ten years from now, he estimates only $5 billion in loans for this segment will be securitized — a drastic reduction in credit availability.

His concern is that without Fannie and Freddie, affordable housing goals may continue to deteriorate outside the GSE structure.

 

By: Kerri Ann Panchuk, www.housingwire.com

 

 

About Scoreinc.com

Scoreinc.com, Inc., headquarter in Mayaguez Puerto Rico USA, with offices in Mobile Alabama, is a leading provider of services to the derogatory credit sector of the financial service industry through its Scoreway® Software Solution and credit report accuracy dispute services. The Scoreway® platform provides an end-to-end management solution that helps the companies that we serve manage the credit review and dispute process and to improve controls and profitability. Scoreinc.com services an ever growing list of mortgage company’s, banks, credit unions, Realtors®, builders and credit service organizations through its innovative technology and credit report accuracy service.

Contact Score for more information at 877-876-5921 or by visiting the following pages:
Credit Repair Merchant Service
Fair Debt Collection Practices-learn to earn from FDCPA
Credit Repair Business Training
Credit Repair Software
Credit Repair Solution
For more details please visit Scoreinc.com

MMRecap for Dec. 2nd

Posted by Joel pate in Uncategorized. Tagged: , , , , , , , , ,

The only report last Monday, pending home sales in October, was a big improvement over September’s report, but a disappointment, nevertheless.  Pending sales fell 0.6% when analysts were looking for a 1% or better gain.  In addition, this is the fifth straight month of declines, which brings those sales to their lowest level since last December.  Higher mortgage rates and fewer properties for sale were cited as the culprits.

Treasuries geared up for a round of auctions totaling $96 billion (the 10-year note was not included) last week, which many observers believe is a test to determine demand.  It could provide input as to when the Fed might begin tapering — and by how much.

The yield on the 10-year note, which moves in the opposite direction of price, fell two basis points to 2.73%, but later closed at 2.74%, while stocks made small gains.

Tuesday’s reports focused on housing, and the news was pretty good.  Building permits in September climbed by 50,000 to an annual rate of 974,000.  That was followed by the October report that showed permits breaching the million mark.  They totaled 1.034 million — the most since 2008.  In addition, the Case/Shiller 20-city index on housing prices rose 11% from a year ago — the first double-digit increase since 2006.

On the down side, quarter-over-quarter home prices have slowed to 3% per quarter.  Construction is also down because fewer houses are under water and more homes are for sale.  But most analysts say they don’t expect a housing bubble.  Even though mortgage rates are rising, in the bigger picture they remain near historic lows.  The second part of these reports, housing starts for September and October, were delayed again due to the government shutdown.

A second report on home prices was the monthly release from the Federal Home Finance Agency, which showed September prices rose 0.3%.

November’s consumer confidence report dropped two points to 70.4, which was two or three points below estimates.  However, it pushed the 10-year yield down to 2.70%, where it closed.  The Nasdaq was the only winner in the stock markets.  It rose 0.58%, while the Dow and S&P closed flat.

Wednesday’s reports broke even when weighing good versus not so good.  First-time unemployment claims dropped by 10,000 to 316,000 during the week ended November 23.  This marked the second straight week of declines.  Analysts had predicted 330,000 claimants.  Leading economic indicators in October also moved up 0.2%, boding well for economic conditions over the next six to nine months.  The University of Michigan’s consumer sentiment report for November rose to 75.1 from the October final of 73.2.  This provides hope that the Christmas season may be jollier than previously believed.

Durable goods orders, big ticket items meant to last three or more years, fell 2% in October after climbing 4.1% in September.  Excluding transportation (weak airplane sales), orders fell 1.0%.  The Chicago PMI report on manufacturing conditions in November dropped to 63.0 from 65.9 due to a slowdown in orders and order backlogs.

As a whole, these data left Wall Street unimpressed.  Once again, the Nasdaq made a significant upward move, but the Dow was almost flat and the S&P 500 added 0.11%.

Thanksgiving Day’s early openings at many of the nation’s top retailers proved beneficial to both shoppers and the big chains.  There weren’t as many “incidents” reported, and store managers were pleased with the sales.  It looks like Thanksgiving will never be the same again.

Friday stocks jumped on the news at opening, but the excitement waned.  However, the indices remained in positive territory for part of the morning.  But when the markets closed, the Dow was down 11 points, or 0.07%, the S&P 500 shed 1.4 points, and to no one’s surprise, the Nasdaq closed up 15.14, or 0.37%.

For the week ended Nov. 22, mortgage applications fell for the fourth straight week, according to the Mortgage Bankers Assn.  Mortgage applications for both purchases and refinances are down a total of 7.0% for that period.  Meanwhile, the rate on a conventional 30-year mortgage rose two basis points to 4.48%, while refis were up 0.1%.  The purchase index fell 0.2%.

Today and tomorrow are the calm days before the storm of market-moving economic indicators.  It’s another “catch-up” week, with reports dating as far back as September.  If they all come in as scheduled, we might be closing in on normalcy.

New home sales for September are expected to decrease to an annual rate of 410,000 from 421,000.  Another dip of the same magnitude should follow for October, but new home sales lack the impact of existing home sales.  It will be followed by the ISM index on manufacturing conditions in November, which is forecast to rise to 56. While this is good, it is only a small increase over the previous 55.4, so it shouldn’t impact trading.

The November ISM index on the service sector includes workers in finance, healthcare and hospitality, among others.  It’s expected to dip to 55 from the previous 56.4.  However, any number above 50 indicates jobs were added during the month.

Also due is the trade balance for October, which should fall to -$40.5 billion from the previous -$41 billion reading.  This is guaranteed not to move the markets.

The Fed’s beige book, published about every six weeks, provides an overview of economic conditions in the nation’s 12 federal districts.  This generally has no impact on rates, as it seldom finds significant changes in the economies over such a short period of time.

Thursday is a little lighter regarding reports, but there are two heavyweights: the second revision on 3rd quarter GDP and unemployment claims for the week ended Nov. 30.  While no estimates are available on that report, the GDP should show growth.  Analysts are predicting it will increase to 3.1% from the previous 2.8% mark, which could put some upward pressure on the 10-year yield.  The other report due, factory orders for October, is forecast to drop to -0.7% from 1.7%.  While this is an unwelcome change, it generally has little impact on trading.

Friday we get the granddaddy of all data — the employment report for November.  Analysts are looking at 180,000 jobs added, which would not come close to the increase of 204,000 in October.  This would make no one happy, except mortgage lenders, which could see the 10-year yield drop.  Although the unemployment rate is expected to decline to 7.2% from the current 7.3%, that move would be overshadowed by the predicted decline in jobs.

Personal income/personal spending for October follows.  While income should rise 0.3%, personal spending is expected to hold at 0.2%.  The PCE core rate, a major inflation gauge, should hold at 0.1%.

The final indicator, the University of Michigan’s initial consumer sentiment report for December, is forecast to creep up a couple of points to 77 from the previous 75.1.  One would like to see it higher considering the holidays are here, but up is up.  Maybe sentiment will rise as the month goes on.

 

 

About Scoreinc.com

Scoreinc.com, Inc., headquarter in Mayaguez Puerto Rico USA, with offices in Mobile Alabama, is a leading provider of services to the derogatory credit sector of the financial service industry through its Scoreway® Software Solution and credit report accuracy dispute services. The Scoreway® platform provides an end-to-end management solution that helps the companies that we serve manage the credit review and dispute process and to improve controls and profitability. Scoreinc.com services an ever growing list of mortgage company’s, banks, credit unions, Realtors®, builders and credit service organizations through its innovative technology and credit report accuracy service.

Contact Score for more information at 877-876-5921 or by visiting the following pages:
Credit Repair Merchant Service
Fair Debt Collection Practices-learn to earn from FDCPA
Credit Repair Business Training
Credit Repair Software
Credit Repair Solution
For more details please visit Scoreinc.com

Eight Things to Consider When Buying Mortgage Leads

Posted by Joel pate in Uncategorized. Tagged: , , , , , , , , ,

So the time has come to invest in lead companies.  But how do you know which one is the right one for you?

When I was a new loan officer, finding a lead company was not easy.  I can remember logging onto Yahoo, typing in the search phrase “mortgage leads” and being bombarded with links to lead companies all claiming, of course, to have the best leads and the best deal for me.

But what was the best deal for me?  Well, what I was looking for?  Taking my time, I began to write down exactly what it was I was looking for.  Did I want refis, purchases, or both?  Did I want leads from several states or just one?  How much could I afford to spend?

Before I invested any of my money, I decided to do my homework.  I read the companies’ terms and conditions.  I spoke with their customer service reps and asked a lot of questions.  I read reviews on the Web to see what kind of experience other loan officers had had with the companies I was considering.

One thing to keep in mind: No lead company can guarantee you a 100 percent closure rate, and they should be very up front about that.  If that is what you are looking for, you can end your search now.

Still with me?  Good!  Let’s get to the heart of the matter.  Here are a few things to consider before committing:

Pricing

If you are on a tight budget, and have, let’s say, $100 to spend, you will have to narrow your search to the lead companies that accept a $100 or a lower minimum, or will meet whatever spending limit you have set for yourself.  Some companies have deposit requirements, not allowing you to spend less than $500.

Lead Generation

Find out where the company is getting their leads.  Some companies recycle their leads and sell them many times over.  They also buy their leads in bulk from other companies and resell them.  So, make sure you ask this very important question up front.

Return Policy

Look for a company with a liberal return policy.  The best way to find out this information is through lead site reviews.  If you receive a lead with bogus contact information, you should get your money back.

Quantity vs. Quality

Be careful when you buy in bulk.  When you can spend $100 and receive 50 leads, chances are the leads are old and are being recycled.  So the closing ratio, naturally, isn’t so good.  If you can spend $100 and receive five to 10 fresh leads, you may have a better closure ratio.  Each lead is more expensive, but it’s also worth more.

Cherry Picking vs. Filters

Cherry picking is a nice feature, and a very popular one.  It allows you to go into a site and view a lead before you purchase it.  Some sites even let you know how many times it has been sold.  Filters are also very nice features.  They allow you to predetermine what kind of lead you want.  When a lead comes in matching your filter criteria, it is sent directly to you via e-mail or fax.

Customer Service

As in all businesses, customer service is key, and the way they handle themselves on the phone is a pretty good indication as to how they run their company.  If you are struggling to get someone on the phone, they are most likely not worth your business.

Referrals

One of the best ways to find a mortgage lead company is to seek co-worker referrals.  Ask around and see what you can come up with.  Rest assured you won’t be the first one in your sphere of influence to have tried purchased leads.

Exclusive vs. Nonexclusive

If you want to receive leads exclusively, you will pay a steeper price.  However, this lead will be sold to you only, doing away with your competition.  Nonexclusive leads are sold, on average, three to five times.  Non-exclusive leads will cost roughly half as much; but keep in mind, you are now competing with other loan officers.  You get what you pay for.

One last thing:  By considering these eight features of mortgage lead companies, you are well on your way to choosing the best lead company for you.  But don’t stop here; continue to gather as much information as you can before you invest.  I can’t stress enough just how valuable lead review sites are.  Check them out; they’re well worth your time.

 

By: Jay Conners, www.alamode.com

 

 

About Scoreinc.com

Scoreinc.com, Inc., headquarter in Mayaguez Puerto Rico USA, with offices in Mobile Alabama, is a leading provider of services to the derogatory credit sector of the financial service industry through its Scoreway® Software Solution and credit report accuracy dispute services. The Scoreway® platform provides an end-to-end management solution that helps the companies that we serve manage the credit review and dispute process and to improve controls and profitability. Scoreinc.com services an ever growing list of mortgage company’s, banks, credit unions, Realtors®, builders and credit service organizations through its innovative technology and credit report accuracy service.

Contact Score for more information at 877-876-5921 or by visiting the following pages:
Credit Repair Merchant Service
Fair Debt Collection Practices-learn to earn from FDCPA
Credit Repair Business Training
Credit Repair Software
Credit Repair Solution

 

For more details please visit Scoreinc.com

5 Things To Say In An Interview

Posted by Joel pate in Uncategorized. Tagged: , , , , , , , , ,

It’s no secret that we live in a challenged economy, so it’s possible that at some time in the future you’ll be sitting down for a job interview — whether for a new full-time position or an additional part-time one.

The best things you can say in an interview won’t necessarily get you the job on their own, but they can certainly pave the way and make you appear to be a good candidate for the position.  Keep these five things in mind as you go through the interviewing process to give yourself the best chance at landing the job.

Ask Good Questions

According to Howard Pines, founder and CEO of BeamPines, “the best thing a candidate can do at an interview is ask good questions.”

Doing so shows that you are thoughtful and interested in understanding the company.  There’s usually a chance to ask questions at the end of your interview, so be ready with questions that show you’re engaged in the process.

Pines suggests several questions, including:

What are the biggest short- and long-term issues I would need to focus on in this position?

What would I need to focus on differently than the previous person in this position?

What organizational issues should I be aware of?

“I’m flexible.”

Whether it’s about possible job duties, a potential start date or simply timing for the second interview, stressing your flexibility makes you easy to get along with.

Hiring managers don’t like complications, and having to coordinate complicated schedules or haggle over a job description eventually just makes you look difficult.  While you certainly don’t want to be a pushover — and “flexible” shouldn’t define your salary negotiation — show your potential employer that you’re interested in results that work for everyone.

The Company’s Own Words

Before your interview, become familiar with the company’s website and literature.  Pay attention to the words used — what’s important to the organization.

“In your interview, hit key words that appeared on the company website or brochure,” says Olivia Ford of Adeptio.  “These key words might include team, leadership, service, culture or growth.”

Mixing these keywords into your answers can provide a subtle hint that you are plugged into what the organization is looking for.

“That’s a Good Question.”

Use this phrase instead of blurting out “I don’t know” if the interviewer stumps you with a surprise question.  It can give you a few moments to come up with an answer and, in the meantime, strokes the interviewer’s ego a little bit, too.

Avoid the “I don’t know” answer when possible, but of course don’t lie about your experience or training.

Reasons You Want the Job.

Knowing a job prospect’s motivations is important for managers who are hiring.

During your interview, talk about how this position fits into your future plans and the ideas you have about your career, how it fits with your values, and what you would like to learn from it.  Talk about how you see yourself in relation to the company and what you believe you can bring to the position.

These kinds of thoughts show who you are as a person, and go a long way toward giving the hiring manager an idea about how you might fit in the company’s culture and values.

Remember these five things the next time you’re vying for a position; they could help make the difference for you.

 

By: Catherine Conlan, www.monster.com

 

 

About Scoreinc.com

Scoreinc.com, Inc., headquarter in Mayaguez Puerto Rico USA, with offices in Mobile Alabama, is a leading provider of services to the derogatory credit sector of the financial service industry through its Scoreway® Software Solution and credit report accuracy dispute services. The Scoreway® platform provides an end-to-end management solution that helps the companies that we serve manage the credit review and dispute process and to improve controls and profitability. Scoreinc.com services an ever growing list of mortgage company’s, banks, credit unions, Realtors®, builders and credit service organizations through its innovative technology and credit report accuracy service.

Contact Score for more information at 877-876-5921 or by visiting the following pages:
Credit Repair Merchant Service
Fair Debt Collection Practices-learn to earn from FDCPA
Credit Repair Business Training
Credit Repair Software
Credit Repair Solution

For more details please visit Scoreinc.com

Why Holidays Make Great Occasions to Email Your Prospects

Posted by Joel pate in Uncategorized. Tagged: , , , , , , , , ,

Smart salespeople can use holidays as perfect occasions to reach out to their prospects via email, especially to those contacts who have been hard to reach in the past.

What makes a holiday such a great time to check in?  For one thing, they’re events that we all know, recognize, and celebrate, so you can start off on obvious common ground.  At the same time they’re more festive and perhaps more personal than other days.

They also give you an easy reason to reach out in a personalized, non-sales approach to contact those elusive prospects on your list.

Here are just a few good holidays to consider emailing your prospects:

The Fourth of July — Why not wish your customers and prospects freedom from stress and worry over their long weekend?

Thanksgiving — In the same way, why not get in touch just before Thanksgiving to let everyone on your list know that you are thankful for them, and to wish them all a happy day of celebration?  And remember that the Canadian Thanksgiving is in October!

Christmas, Chanukah, and New Years — The December holiday season is the perfect time to thank people for their business, wish them a safe and happy new year, and mention that you’d love to get the chance to work with them in the future.

Valentine’s Day — You don’t have to send anything romantic to let your prospects know that they are “special” to you.

Their birthday, or your own — If you can keep track of your clients’ and prospects’ birthdays (and you really should), that makes it a perfect time to get in touch with them.  I also like to email contacts on my own birthday, to let them know that I’m celebrating and to wish them a great day as well.

International holidays — If you have international clients (or clients who originally came from another country), try to remember their special days.  Prospects in the UK, for example, might be impressed if you remembered Guy Fawkes Day.  The reverse is also true.  Make sure you don’t send emails about North American holidays to prospects overseas, as it creates a bad impression and could damage the relationship.  We celebrate Memorial Day in May, for example, or Independence Day on July 4th; but our international customers probably don’t.

Use resources like Chase’s Calendar of Events for a list of both international and quirky events, like Chinese New Year or National Ice Cream Day.  These are fun opportunities to make a contact that your clients are probably not expecting.

The reason these emails work so well is that they’re enjoyable, festive, and we’re not asking prospects to do anything.

All we’re trying to do is let them know that we’re thinking about them on a particular special day.  These simple emails open up the conversation from an amusing and non-threatening perspective.  We aren’t giving them any kind of hard sell.

Remember that, as you put together your holiday emails, you shouldn’t be looking to gather leads or opportunities in any straightforward or obvious way.  In fact, when you do receive responses from prospective clients, my advice would be to keep things light, and just remind them that you’d love to get together to catch up.

When they respond to that, then you can move to set a time for the appointment.

The whole point is that the exchange has moved along organically, without being forced or having some kind of ulterior sales motive other than to wish them a happy holiday.

One other thing to keep in mind: don’t overdo it.  Holiday greetings sent out by you every week could easily lose their appeal.

Because people tend to be in a better mood around a holiday, and because everyone likes to get a personal note wishing them well, holiday emails tend to garner a much higher response rate than your “normal” prospecting methods.  That means as much as 50 to 75% of the people on your list are likely to respond.

Make sure that you have time to follow up on all the responses you do get.

Reaching out via email during any holiday is a great way to connect with prospects you haven’t been able to get ahold of, or who haven’t responded to your other approaches.  Just remember to keep things fun and light, and let the conversation unfold naturally.

Do that, and it won’t be long before you have even more to celebrate!

 

By: Kendra Lee, www.eyesonsales.com

 

 

About Scoreinc.com

Scoreinc.com, Inc., headquarter in Mayaguez Puerto Rico USA, with offices in Mobile Alabama, is a leading provider of services to the derogatory credit sector of the financial service industry through its Scoreway® Software Solution and credit report accuracy dispute services. The Scoreway® platform provides an end-to-end management solution that helps the companies that we serve manage the credit review and dispute process and to improve controls and profitability. Scoreinc.com services an ever growing list of mortgage company’s, banks, credit unions, Realtors®, builders and credit service organizations through its innovative technology and credit report accuracy service.

Contact Score for more information at 877-876-5921 or by visiting the following pages:
Credit Repair Merchant Service
Fair Debt Collection Practices-learn to earn from FDCPA
Credit Repair Business Training
Credit Repair Software
Credit Repair Solution

 

For more details please visit Scoreinc.com

MBA’s Cosgrove Testifies on Housing Finance Reform

Posted by Joel pate in Uncategorized. Tagged: , , , , , , , , ,

Bill Cosgrove, CEO of Union Home Mortgage Corp. and Chairman-Elect of the Mortgage Bankers Association (MBA), testified recently before the U.S. Senate Committee on Banking, Housing and Urban Affairs at a hearing titled, “Housing Finance Reform: Protecting Small Lenders Access to the Secondary Market.”

Below is a copy of Mr. Cosgrove’s oral testimony, as prepared for delivery.

“Chairman Johnson, Ranking Member Crapo and members of the committee, my name is Bill Cosgrove and I am a Certified Mortgage Banker.  I have 28 years of experience as a mortgage banking professional.

“I am the Chairman-Elect of the Mortgage Bankers Association.  Our family-owned business employs 278 individuals, and we are very proud that since 1999 we have helped more than 50,000 homebuyers finance and refinance their homes and achieve their dreams of homeownership.

“Small and midsize lenders play a crucial role in the American housing finance system.  7,400 lenders originated mortgages in 2012.  Fannie Mae and Freddie Mac each report that roughly 1,000 lenders are direct sellers to the GSEs, and Ginnie Mae currently has more than 250 issuers.

“The vast majority of these lenders are smaller independent mortgage bankers and community banks.  In fact, according to the most recent HMDA data, independent mortgage bankers represent 11% of all lenders nationwide, yet they originated 40% of all purchase money mortgages in 2012.

“Over the course of the next year, small lenders will become increasingly important as we transition from a predominately refinance market to a purchase market.

“It is important to recognize that not all small lenders have the same needs when it comes to accessing the capital markets for mortgages.

“Lenders with the skills and the capital should be in a position to make their own choices about how, when, where, and to whom to sell their production, based on their core competencies and other strategic objectives.

“As policymakers consider both transitional and end-state reforms, the future secondary market needs to provide direct access, on competitive terms, for those lenders who can take on the requisite responsibilities.

“In particular, smaller lenders need a secondary market system that delivers:

Price certainty that represents the risk of the underlying loan;

Execution for both servicing-retained and servicing-released loans;

Single loan and/or small pool executions with a low minimum pool size;

Ease of delivery;

And quick funding.

“Single-family lenders should be able to utilize familiar credit enhancement options, such as mortgage insurance, to facilitate secondary market transactions in a timely and orderly way.  Key functions present in today’s secondary market system should be preserved, while allowing new forms of private credit enhancement to develop over time.

“Congress should give serious consideration to expanding Federal Home Loan Bank membership eligibility to include access for non-depository mortgage lenders.  These lenders are often smaller, community-based mortgage bankers or servicers focused on providing mainstream mortgage products and services to consumers.

“S. 1217 proposes a system that is closer in many respects to the Ginnie Mae model.  Lenders are issuers and are responsible for obtaining private credit enhancement before delivering pools of loans to the central securitization platform for the government guaranty.  This approach may work for some lenders, but may be too operationally difficult for many smaller lenders.

“S. 1217 provides an alternative for smaller lenders in the form of a mutual securitization company, a cooperative that takes the role of aggregator and issuer.  S. 1217 also provides for the FHLB system to be aggregators for smaller lenders.  Regardless, broad standards for a mutual should ensure a fair governance process that does not advantage one class of mutual shareholders over another.  It’s equally important to ensure that end state reforms address the variety of ways that small lenders

 

About Scoreinc.com

Scoreinc.com, Inc., headquarter in Mayaguez Puerto Rico USA, with offices in Mobile Alabama, is a leading provider of services to the derogatory credit sector of the financial service industry through its Scoreway® Software Solution and credit report accuracy dispute services. The Scoreway® platform provides an end-to-end management solution that helps the companies that we serve manage the credit review and dispute process and to improve controls and profitability. Scoreinc.com services an ever growing list of mortgage company’s, banks, credit unions, Realtors®, builders and credit service organizations through its innovative technology and credit report accuracy service.

Contact Score for more information at 877-876-5921 or by visiting the following pages:
Credit Repair Merchant Service
Fair Debt Collection Practices-learn to earn from FDCPA
Credit Repair Business Training
Credit Repair Software
Credit Repair Solution

 

For more details please visit Scoreinc.com

MMRecap for Nov. 18th

Posted by Joel pate in Uncategorized. Tagged: , , , , , , , ,

Trading was light on Veterans Day, and changes were small.  The 10-year yield, which moves in the opposite direction of price, rose one basis point to close at 2.75%.  The Dow hit another record high, while the S&P 500 made miniscule progress.

No economic reports were released Tuesday, so stocks moved very little, but the Dow Jones index pushed its way to another all-time high of 15,783.  Both the Dow and the S&P 500 have gained more than 20% in 2013, while the Nasdaq is up by almost 30% this year.

Wednesday also had no economic reports.  After big moves upward, investors appear to be taking a break.  They also are waiting for speeches from the presidents of the Minneapolis and Atlanta Feds later in the day, hoping for hints about tapering.

Investors deserted the markets, for the most part.  The 10-year yield edged up all morning, closing with a two basis point gain at 2.77%.  Stocks had another rough day.  But in the bigger picture they’re doing fine.  The Dow fell 32.43 points or 0.21%, the S&P 500 dipped 0.24% and the Nasdaq closed flat.

The mostly upbeat economic reports last week reawakened concerns about the Fed’s stimulus program, which has been responsible in large measure for the strong market activity.  Positive economic reports could influence the Fed to cut back on its buying of Treasuries and mortgage-backed securities.  The markets certainly don’t want that to happen.

Stocks continued to do what they’ve been doing lately.  The Dow and S&P 500 hit fresh highs.  The Dow Jones closed out at 15,821 (0.45%), while the S&P ended 14.31 (0.81%).  The Nasdaq added 1.16%.

Thursday’s report on first-time jobless claims came in at 339,000 — just 2,000 below the previous week’s revision.  Continued claims, those filing for a second or more weeks of benefits, came in at 2,874,000 for the second straight week.

That was followed by 3rd quarter productivity and costs.  Productivity edged up to 1.9% from 1.8%, while costs plunged -0.6% from the previous 0.5% reading.  Separately, the trade balance widened again in September, coming in at -$41.8 billion, up from the previous $38.7 billion.

Thursday afternoon Janet Yellen, nominee for the next Fed presidency, appeared before the Senate and gave stocks a boost.  She said unemployment was her main concern and that she believes a strong recovery will result from continued quantitative easing.  She added that continued buying of Treasuries and MBS will bolster the economy, which she cited as fragile.  Her statements gave stocks a boost, and sent the 10-year yield down two basis points to close at 2.70%.

Stocks continued to climb Friday morning in the wake of Yellen’s statement, although progress was likely slowed due to a couple of lackluster economic reports.  The NY Empire State manufacturing index dropped into negative territory, coming in at -2.2.  Nationwide industrial production also slid in October, showing -0.1% versus the previous 0.7% increase.  Capacity utilization dipped to 78.1% from 78.3%.  Less influential were September wholesale inventories, which came in at 0.4%, down from the previous 0.8%.  Export prices, excluding agriculture, fell 0.3%, while import prices, excluding oil, were flat.

The 10-year yield rose one basis point early in the session and never wavered, closing at 2.71%.  Stocks crept closer to milestone marks, but didn’t quite reach them.  The Dow added 85.45 points, or 0.54%, to close 38 points shy of 16,000.  The Nasdaq moved with 13 points of its milestone mark of 4,000, while the S&P 500 was this close to 1800, missing it by just three points.

Mortgage applications for the week ended Nov. 8 fell 1.8% from revised numbers of last week.  Refis were down 2%, but accounted for 66% of mortgage activity.  The purchase index was down 1% from a week ago.  The contract rate on a conventional 30-year fixed was 4.44%.

It’s yet another slow start this week.  Today the NAHB releases its housing market index.  Forecasters are looking for a 54 in November — just slightly lower than the 55 posted the previous month.

On Tuesday the 3rd quarter Employment Cost Index will be released, and it is expected to show another 0.5% increase.

We start getting into it on Wednesday with retail sales for October, but they are bound to disappoint.  Sales are expected to rise 0.1%, which is better than the previous -0.1%, but not by much.  Excluding autos, sales could show a 0.2% gain, but that would be below the 0.4% increase posted in September.

The consumer price index, or CPI, which looks for increases in retail prices consumer pay, is good, but not market-changing.  The October CPI is expected to rise 0.1% — less than the previous 0.2%.  But the core rate, which excludes food and energy, should edge up 0.2% from 0.1% — not a big deal.

Existing home sales in October should attract more attention.  The annual sales rate totaled 5.29 million units in September, but analysts predict sales will dip to an annual rate of 5.23 million units for October.  Also on tap is business inventories for September, which should increase 0.3% — the same as in August.

In the afternoon the FOMC will release its minutes from the October 30 meeting.  A lot of anxiety regarding tapering vanished during Yellen’s testimony, but it should be interesting, nevertheless.

Initial jobless claims for the week ended Nov. 16 is the first economic release for Thursday.  Claims have been coming in at 335,000, give or take a couple of thousand for the past several weeks.  If that varies in any substantial way, the markets could move accordingly.  If it’s the same, it will likely be ignored.

That will be followed by the producer price index or PPI, which tracks prices at the wholesale level.  Big changes are not expected for October.  The PPI should decrease by 0.2%, after dipping 0.1% the previous month.  The core rate, which excludes food and oil prices, should hold at -0.1%.

The Philly Fed index on manufacturing conditions in the Mid-Atlantic area of the nation is on a roll and another big gain is expected.  In October it jumped to 19.8, after hitting double digits in June.  Before that the index had languished in low single digits for much of the spring.  However, considerable concern about the level of manufacturing throughout the U.S. remains.

The final report for the week is October’s LEI, or leading economic indicators.  LEI attempts to predict economic conditions for the next six to nine months.  It rose 0.7% in September, but no October estimates are available.

There will be no economic reports of note on Friday.

 

 

About Scoreinc.com

Scoreinc.com, Inc., headquarter in Mayaguez Puerto Rico USA, with offices in Mobile Alabama, is a leading provider of services to the derogatory credit sector of the financial service industry through its Scoreway® Software Solution and credit report accuracy dispute services. The Scoreway® platform provides an end-to-end management solution that helps the companies that we serve manage the credit review and dispute process and to improve controls and profitability. Scoreinc.com services an ever growing list of mortgage company’s, banks, credit unions, Realtors®, builders and credit service organizations through its innovative technology and credit report accuracy service.

Contact Score for more information at 877-876-5921 or by visiting the following pages:
Credit Repair Merchant Service
Fair Debt Collection Practices-learn to earn from FDCPA
Credit Repair Business Training
Credit Repair Software
Credit Repair Solution

 

For more details please visit Scoreinc.com

Ending Downpayment Assistance Hurt the Housing Market

Posted by Joel pate in Uncategorized. Tagged: , , , , , , , , ,

Downpayment assistance ended five years ago on Sept. 30, 2008, eliminating more than 25,000 homebuyers per month from the collapsing housing market. Was that a good idea?

That day will live in infamy as the day that Congress and the Bush administration ended downpayment assistance on loans insured by the Federal Housing Administration.

Add to that direct decision, the ripple effect of the sellers not being able to sell, significantly accelerated the housing market collapse. It seems that the only segment of the real estate market to benefit from the end of downpayment assistance: The American Apartment Owners Association.

As DPA providers lobbied the Department of Housing and Urban Development and Senate Banking Committee members and their staff (the staff controls more than you would think) to alter the programs instead of eliminating them, they were concocting a First Time Home Buyer Tax Credit to soften the impact on the housing market that was sure to come.

Borrowing money from China to fund a downpayment did in fact soften the initial blow to the housing market. However, it proved insufficient. It never seemed to be a good idea to transfer more risk and cost to the taxpayers by using federal tax credits to fund the borrower downpayments further worsened the overall market.

As a result, the housing market collapsed across America because of the lack of buyers willing and able to qualify for a home loan. As prices plummeted, as job growth ended, unemployment exploded. It became nearly impossible to sell a home.

Conflicting studies from both FHA and the downpayment assistance industry abound regarding the default rate on FHA loans with downpayment assistance. But according to research conducted by the industry’s trade association, HAND, “while loans with down payment assistance did result in a slight increase in default rates as compared to FHA loans with buyer paid downpayments, the primary driver of defaults in the past five years has been the substantial decline in jobs and the drop in home prices that resulted in the typical FHA market consumer to lose mobility generally available in past market shifts.”

The historic run up in subprime loans and the associated increase in housing prices between 2003 and 2007 had the greatest negative impact on the overall housing market and thus the FHA insurance pool than downpayment assistance. You just can’t promote the idea that it is OK for a loan applicant lie about income, assets, and the ability to re-pay and expect a positive outcome. W-2 borrowers should always be required to document the loan file.

Recently, some policy makers are getting into sync with the realities of the marketplace. Evidence of this include the Sept. 4 bulletin from the Consumer Financial Protection Bureau that placed data furnishers and the credit reporting agencies on notice that their current process for managing consumer credit disputes was insufficient, and that it did not meet the “duty for a reasonable investigation of the consumer credit dispute” as required under federal law.

The Federal Trade Commission’s December 2012 “Report to Congress under Section 319 of the Fair and Accurate Credit Transactions Act of 2003” found “the number of errors on credit reports are eye opening,” according to Howard Shelanski, director of the FTC’s Bureau of Economics.

He went on to say, “The results of this first-of-its-kind study make it clear that consumers should check their credit reports regularly. If they don’t, they are potentially putting their pocketbooks at risk.”

And, FHA’s release of Mortgagee Letter 2013-24 and separately 2013-26 change the landscape of the availability of FHA loans to consumers with small collections, accounts currently in dispute, and shorten the waiting period after a short sale or foreclosure when the event was the result a of job loss or 20% drop in income.

These reports, studies and position statements draw one to conclude that these three agencies realize that they should take an aggressive approach to remove the road blocks that prohibit the consumer from entering or successfully re-entering the housing market. Perhaps they will also embrace a return of downpayment assistance as well.

Joel Pate is a 28-year veteran of the real estate, mortgage and credit industries and has founded many successful ventures. He lives in Mobile, Ala. You can find out more about Joel and pre-underwriting homebuyer development at www.joelpate.com or www.scoreinc.com.

 

 

About Scoreinc.com

Scoreinc.com, Inc., headquarter in Mayaguez Puerto Rico USA, with offices in Mobile Alabama, is a leading provider of services to the derogatory credit sector of the financial service industry through its Scoreway® Software Solution and credit report accuracy dispute services. The Scoreway® platform provides an end-to-end management solution that helps the companies that we serve manage the credit review and dispute process and to improve controls and profitability. Scoreinc.com services an ever growing list of mortgage company’s, banks, credit unions, Realtors®, builders and credit service organizations through its innovative technology and credit report accuracy service.

Contact Score for more information at 877-876-5921 or by visiting the following pages:
Credit Repair Merchant Service
Fair Debt Collection Practices-learn to earn from FDCPA
Credit Repair Business Training
Credit Repair Software
Credit Repair Solution

For more details please visit Scoreinc.com

Referral Source Protection Mode

Posted by Joel pate in Uncategorized. Tagged: , , , , , , , ,

I want to ask you one simple question: How many referral sources are you losing each year because you have not embraced pre-underwriting homebuyer development as a strategy to build and protect your business?

First, you are probably asking yourself: What pre-underwriting homebuyer development?

Pre-underwriting homebuyer development is a process of preparing not yet mortgage ready consumers to be successful homeowners. It’s simply a process of building your pipeline for tomorrows loan closings. But more than that, it is a strategic decision to protect and grow your referral business.

As you already know, most originators recently lost over 50% of their business due to interest rate increases.

And most of you lost a ton of money on rate locks because you are not yet members of Barry Habib’s MBS Highway program.

Want to know one more thing? Your referral sources are being inundated by calls and visits from those same originators as they get back out on the street doing whatever they can to gain back the referral sources that they neglected during the last refinance boom. These are otherwise known as your referral sources.

But to fully understand the strategic reason to pre-underwriting homebuyer development, let me tell you a story: About a year ago, John and Sally Homebuyer responded to agent Jim’s online marketing to inquire about purchasing a home. Jim, being the welled trained agent that he is, gave them a little information about the home and then asked the question: Have you been prequalified for a mortgage?

Sally said no they had not but would like to. So, agent Jim sent this young couple over to his favorite originator only to find out that their credit was at a 580 and could not purchase at this time. Originator Mary even provided John and Sally Homebuyer with a game plan provided by the tri-merge provider’s what-if simulator. Since agent Jim believed that Mary always did everything she could to get his referrals approved for a loan, he didn’t give it a second thought.

As a typical originator and agent, that was the last time that they thought about John and Sally. Of course these would-be homebuyers were disappointed in the news and for a couple of months attempted to follow the suggestions provided by the what-if simulator. But it proved to be too much for them and they gave up.

But since the desire to purchase a home was burning deep within John and his wife Sally, as it does all Americans, they continued to dream about buying a home. Eventually, they contacted another listing agent from a yard sign. During the interview process, agent Bob asked if they had met with a mortgage company. Of course, they said yes and related the news to the agent of their low credit score.

But, since Bob and his favorite loan originator embraced the concept of pre-underwriting home buyer development, the outcome would be different this time.

As a part of Bob’s team, he used the service of a company that specializes in helping consumers when they are in the “not yet ready” status to purchase. As soon as Bob heard about the problems, he referred them over immediately.

Come to find out, John had gone through a job loss a few years back and had gotten behind on a couple of accounts. Now that was bad enough but one of the accounts had been charged off, sold to a collection company and then resold again. As with many consumers credit file, this one account was now reporting three separate times each with balances and each stating that John was currently late.

Sally on the other hand had gone through a divorce and had to file a Chapter 7 bankruptcy. Through the interview process, it was discovered that the Chapter 7 discharge date was reporting incorrectly. Instead of reporting the discharge as of June 2009, it was reporting as June 2011.

Through the efforts of this company, John and Sally were able to correct these errors and purchase a home for their family. Agent Bob was able to sell a home, the sellers were able to purchase another home; that seller was able to purchase a new home from a local builder and four mortgages were closed.

But that’s not the end of the story. After John moved into their home, he ran into agent Jim. Remember Jim and his favorite originator Mary? Jim was so happy to see his former prospect and made a beeline for him in the produce section. “Hey John, how’s it going? How are the kids? How’s Sally? Great. Been working on those issues that Mary explained to you had to be corrected for she could do a loan?”

I won’t belabor the point. Not only did agent Jim lose that commission from that purchase, he lost a potential positive referral source for future sales and in its place, he had gained a potential negative referral source.

The next day, agent Jim had a call from a would-be homebuyer that he had met in open house the week before. They were ready to move forward. But guess what, Jim didn’t call on former favorite originator Mary. Mary had blown this deal for him and he was upset.

In today’s real estate and mortgage market, building and maintaining quality referral relationships is the key to success. A primary driver of that success is to embrace pre-underwriting homebuyer development as a key strategy.

Joel Pate is a 28-year veteran of the real estate, mortgage and credit industries. For more information about Joel, his companies or pre-underwriting homebuyer development, visit www.joelpate.com or www.scoreinc.com.

 

 

 

About Scoreinc.com

Scoreinc.com, Inc., headquarter in Mayaguez Puerto Rico USA, with offices in Mobile Alabama, is a leading provider of services to the derogatory credit sector of the financial service industry through its Scoreway® Software Solution and credit report accuracy dispute services. The Scoreway® platform provides an end-to-end management solution that helps the companies that we serve manage the credit review and dispute process and to improve controls and profitability. Scoreinc.com services an ever growing list of mortgage company’s, banks, credit unions, Realtors®, builders and credit service organizations through its innovative technology and credit report accuracy service.

Contact Score for more information at 877-876-5921 or by visiting the following pages:
Credit Repair Merchant Service
Fair Debt Collection Practices-learn to earn from FDCPA
Credit Repair Business Training
Credit Repair Software
Credit Repair Solution

 

For more details please visit Scoreinc.com

 

Networking Involves Much More than Exchanging Business Cards

Posted by Joel pate in Uncategorized. Tagged: , , , , , , , , ,

Years ago when I attended what were termed as “Networking Events” we basically walked around smiling and exchanging business cards. When I got back to the office, I would look through my handful of cards, not remembering any of the faces that went with the names on the cards, and I would eventually throw most of them away. I don’t remember anyone ever calling me because of this time-wasting ritual.

Networking performed with a plan and with panache, on the other hand, can reap huge benefits, including lots of lucrative business. Let’s take a look at networking with a purpose that produces results.

Start with knowing why you are networking. Before attending any kind of event, trade show, and/or gathering, ask yourself why you are taking the time to do this and what you hope to gain from the networking. Just like having a business plan and setting goals give us direction, making a networking plan with goals will add value to the time you spend.

For example, if you are giving a presentation to a Chamber of Commerce meeting which follows some type of gathering — a meal, perhaps — it is a good idea to get there early and take part before you give your speech. When I was an unknown, aspiring speaker I found this method to be unbelievably helpful. By the time I got up on my feet to speak, I already had friends in the audience. The outcome was that they liked me before I started, which helped me relax and give better presentations.

I often attend gatherings to touch base with people I know, plus meet at least one new person and learn at least one new piece of information or find the solution to one problem — and there are always problems to solve now that I am doing so much computer work.

And rather than racing around trying to talk with as many people as possible, focus on one or two conversations. There was a time when I would set my networking goal to talk with as many people as possible. It was lively and fun, but from a follow-up business standpoint, not very fruitful. I now focus on having one or two in-depth conversations, take down some notes on a business card, and follow-up within a few days. This takes the superficial quality out of the meeting, and I have made some excellent on-going contacts using this approach.

If the person you are talking with asks about some information you have mentioned, make a note to get back to them, either through e-mail, on the phone, or by snail mail. Actually, by dropping a handwritten note or card to someone, along with a brief article about a topic you discussed, you will make a long-lasting impression. So few people take the time to write notes today; so, your gesture will be unforgettable.

Handle business cards with professionalism and thought. Remember, we are not in the business card give-and-take mode. Yes, I always hand my card to someone I am interviewing or have a designated appointment with. But, in a networking event situation, I always wait until the other person asks me for my card before foisting it on them. And just because someone pushes their card into my hand, I don’t automatically give them one of mine. This is just my belief, but this way I leave with the cards of people I really want to see again. However, of course, I am always ready. I wear a jacket or outfit with two pockets — one with my cards and one for the cards I am handed. This makes the transition of cards smooth and easy.

Also, I always have up-to-date cards with me. I feel that there is nothing more unprofessional than someone handing me a card with a phone number or other information crossed out or written in. Business cards are so reasonably priced that there is no reason for handing out a poor excuse for a card. You can even print up a few on your computer, although many of these are made with low-grade paper.

Be on the lookout for a variety of networking opportunities. When attending meetings, seminars, classes, trade shows and presentations by others, you will have a chance to meet and talk with people who are also attending because they have similar interests. Being active in associations and clubs in your field of endeavor is a great way to become known as a good and dependable worker. Now that I am a free agent, I find that much of the work I am doing — and I am extremely busy — has resulted from contacts I have made in the past through serving on committees or boards.

I am also on the lookout for networking opportunities that pop up during daily routines. For example, I often see people at the grocery store, the library, and coffee shops. Just today I saw a woman at the store with whom I had worked organizationally years ago, and after I asked what she was doing now, she, of course, asked me the same. When I told her “web design” her eyes lighted up because the person who had been maintaining her business’ site just moved out of town. We exchanged business cards, and there is a good chance we will at least discuss web design in the near future.

Remember, networking in today’s tough market is a real necessity. And with a bit of your imagination added, the opportunities to make it successful are all around you.

So, go to it, have fun, and make lots of excellent contacts!

By: Chris King, www.creativekeys.net