Mortgage: Best Faves

BECU HLPR loan - possibly best loan for a first time buyer?

Rich — Mon, 09 Jul 2007 17:41:41 GMT

This is a very interesting loan product from BECU and has the potential of being one of the best 1st time mortgages for buyers that qualify.

It is called the "Helper" (HLPR) loan. Basically, it's aimed at 1st time buyers buying their first home, but it should also be useful for people who have already sold their homes and are looking for another.

There are income restrictions, credit restrictions and other guidelines, but this particular HLPR product (there are several others, see BECU's site) purports to have an ARM rate that is about 1% lower than the "going" rate. Based on my experience, their fees are also lower than most of the major banks.

This type of loan is great for someone that is looking at short-term ownership of a property. I spoke with several industry pros and they all believe that BECU is probably not making any money - perhaps even losing money - on this loan, but may be using it to bring borrowers into other BECU products that may be profitable.

BECU has had a reputation of being difficult to work with in the past and very slow to respond. It seems that now, though, they've cleaned up their act. They've got 24-hour mortgage reps and a lot of the process has been stream-lined and placed online. This loan is not for everyone, though, and it may not apply to every purchase. In particular, borrowers may have difficulty obtaining loans on new or conversion condos that are not FNMA approved. I spoke with several BECU reps and their answers were all over the board about this.

More info on the site.

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Microsoft failure may bode ill for Zillow

Rich — Wed, 10 Oct 2007 00:01:07 GMT

The online mortgage market is difficult. People like to have a real person to talk to - and throttle - when problems arise.

Having done several deals with online mortgage outfits, I find the level of service and delivery of promised terms to be spotty and inconsistent.

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Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve

egis — Mon, 10 Mar 2008 01:05:46 GMT

Quoted: Greenspan is either a completely incompetent central banker or a very despicable human being. He messed up everything ...

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Home buying: Buy now? Or wait for prices to drop?

Rich — Wed, 07 Mar 2007 18:03:45 GMT

Good question - I hear it all the time.

I was in Iowa recently; houses are cheap (but I wouldn't want to move and live there!!). Took a look at some homes and was told by the agent that it's common in depressed markets in the midwest to have buyers make offers that are significantly below list price. Wow, what a different market!

Quoted: Question: My wife and I want to buy. Should we wait to see if prices fall, or take advantage of today's low mortgage rates? - Heath Hewett, Columbia, S.C.

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CrimethInc. Far East Blog » The Mortgage Crisis for Beginners

zerohour — Sat, 05 Jul 2008 17:10:08 GMT

A link to a link.

From Crimeth.Inc:

Our favorite radio show, This American Life, recently did a hour show examining the current mortgage crisis— the straw that broke the camel’s back and triggered a global financial crisis, the end of which is nowhere in sight. As the U.S. stumbles forward deeper and deeper into a recession, it would behoove those of us who don’t understand what has happened to take a minute to learn about the economic process—which was truly not a major aberration from business as usual—behind the credit collapse that has many economists warning of a new economic depression.

As usual, TAL makes the dry subject matter absolutely fascinating and entertaining, interviewing victims and perpetrators at every level of the travesty, and as they say:

We explain it all to you. What does the housing crisis have to do with the turmoil on Wall Street? Why did banks make half-million dollar loans to people without jobs or income? And why is everyone talking so much about the 1930s? It all comes back to the Giant Pool of Money.

Listen to the show here, for free, by clicking on the ‘Full Episode’ link. For those looking for more details, another radio favorite of ours, Fresh Air, has some more perspectives here, and here. And of course, Wikipedia comes through with 12,000 words on the subject.

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Practical Risk Management: Operational Risk – JPMorgan Chase Teaches Mortgage Brokers To Cheat

mohit — Tue, 22 Jul 2008 04:22:03 GMT

Quoted: The Oregonian reported Friday morning that it obtained a copy of an internal JPMorgan Chase (“JPMC”) memo titled “Zippy Cheats & Tricks” that provides step-by-step instructions on how to enter false data into a loan approval system called ‘Zippy.’ (Hat tip to Calculated Risk.) In essence, an in-house guide to committing mortgage fraud. Here are pertinent excerpts of the Oregonian report:

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As Owners Feel Mortgage Pain, So Do Renters

Rich — Sun, 18 Nov 2007 21:50:10 GMT

An unintended consequence of foreclosures - the renters that occupy the investor's property. The states with the most foreclosures - Florida, California and Nevada - have a definite problem with this. Since many of those areas also have weak rental markets, renters shouldn't have too much difficulty finding comparable rental properties at comparable prices to move to.

When foreclosure of investment properties happen in stronger markets with fewer rentals, like the NW or NYC, renters would likely face higher rents and fewer choices when they're forced to move.

Quoted: In the growing foreclosure crisis, thousands of families who rent their homes face eviction when owners default on their mortgages.

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Impact of Wall Street bailout becoming clearer - Eye on the Economy- msnbc.com

Rich — Mon, 22 Sep 2008 20:02:08 GMT

A summary of what's happening with the Wall Street bailout, in plain, simple English.

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Simple Guru: Tax Deduction vs. Early Mortgage Payoff

ronideutch — Fri, 02 Mar 2007 17:22:10 GMT

Quoted: Simple Guru is all about the simple, effective things that make life easier and more affordable. We will share our favorite tips, tricks and life hacks to help guide you to a Simple Guru life.

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The Mortgage Boondoggle : The Kansas Curmudgeon

ChrisWei — Wed, 05 Dec 2007 19:13:56 GMT

Quoted: I am not at fault here. Neither are 99.6% of the rest of the people in our country. We did not do anything wrong.

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