Author: Evan Vanderwey
Website: http://www.lansingmimortgage.com/indymac-got-a-sweet-deal.ht…

I am posting this video link for two reasons:

1.  I am angry about this kind of thing and hope that if for no other reason, the fact that we know about it, may deter some from participating.

2.  Remind us all that being self interested is not the problem.  Not one human being living today isn’t self interested.  Profit motive is not a bad thing – we do not want to throw that baby out with the bath water, no matter how bad the bath water stinks sometimes.

IndyMac got a sweet deal from the government that almost guarantees they will make a HUGE (and by huge I mean 100% kind of huge) profit.  That does not mean we should work against the free market system where profits are a primary motivator of businesses and individuals.

I propose that we work and deal in the following manner:

We keep a profit motive and a servant’s purpose.

Profits are required to keep my employees paid and their retirement accounts growing.  My employees want me to be profitable.  Profits are good. …

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Author: Evan Vanderwey
Website: http://www.lansingmimortgage.com/toxic-adjustible-rate-mortg…

The title of this post is the name that has been given to the type of loan that many unsuspecting homeowners found themselves bound to in the past few years. Many were told that this was a “fixed” product but were never informed that the word “fixed” was used to describe a very short period of time that – under certain conditions – might apply to their payment, even thought their interest rate was only fixed for a matter of months – if that. They further found that their loan balance was rising when they made that “fixed” payment.  Very unsettling information to stumble upon AFTER a closing, indeed.

As a lender during the past 15 years I have written many such loans.  The marked difference between my clients and the general public is that not one of my clients were surprised by the terms, and all who are still in the loan are enjoying a mortgage rate that is around or below 3% right now.  For the record, the way I wrote and sold the loans I do not think “toxic” is the best…

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Author: Evan Vanderwey
Website: http://www.lansingmimortgage.com/fed-will-keep-buying-if-rat…

As we have been saying since this time last year – the FED will officially end its Mortgage Backed Securities purchase program in March this year after it reaches the prescribed $1.25 Trillion mark.

But, according to New York Fed Bank President William Dudley, the Fed is not on “auto pilot” and will restart the MBS purchasing program if mortgage rates spike.  “If there is a sharp turn in the road” Mr Dudley said, the Fed would intervene.

This would potentially stave off what many feared would be a sharp increase in interest rates just as the new Refinance Programs have gotten going.  Normally the two main buyers of Mortgage Backed Securities are China and Wall Street.  For the past year, the US Government has been a major buyer forcing the prices of these debt instruments up and the yeilds (or interest rates) down to record lows.

So, if you are in the market for a new home or a low rate refinance – don’t expect rates to go down any further because of this news; but you may…

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Author: Evan Vanderwey
Website: http://www.lansingmimortgage.com/looking-for-pollyanna-seein…

The following few paragraphs are excerpts from the article:

January 29, 2010
Home Equity Won’t Be Coming Back for a Very Long Time
By Lew Sichelman

Google him for the entire article, but a synopsis of it is here:

“There’s no magic online calculator that can accurately tell when the
value of homes will once again equate to what was paid for them, or to
what they were worth before housing prices fell off the cliff.

“It’s going to be a long time coming,” says HSH vice president Keith
Gumbinger of the prospects of rebuilding “lost” equity.

Of course, it’s impossible to accurately predict anything about the
current state of housing.

Going forward is pretty much a toss-up, but HSH is proscribing a flat
real estate market with no increase in value through June. Then, from
July through August 2011, a period of 14 months, prices are projected to
increase at a rate of about 2.5% a year. And from then on out, the
company is figuring on a yearly gain of 3%.

With these percentages in mind,…

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Author: Evan Vanderwey
Website: http://www.lansingmimortgage.com/mortgage-escrow-account-adv…

Evan and Karen-

Over the weekend we received a letter from the Mortgage Company along with new payment slips. We were a bit surprised to see our monthly payment increase by $230!

After reviewing the letter and schedule of payments that came out of our escrow account during 2009, we believe that the monthly payments need to be reevaluated. We are hoping you can help with this.

WE CAN – HERE IS THE GIST OF MY RESPONSE TO THIS CLIENT:

Thanks for the note. And yes, this needs to be re-evaluated as new information comes in.

Soon, even this month, you will receive your annual assessment from the township you live in. This will confirm both the Taxable Value of your home as well as your Homestead status – now called Principle Residency Exemption (PRE) – it will be 100%.

Your lender is assuming that you not only are short for 2009 but that you will be short this year as well – they have nothing to go on except the bills they paid last year – we need to educate them.

Here is the…

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Author: Evan Vanderwey
Website: http://www.lansingmimortgage.com/the-new-good-faith-estimate…

If you are looking to buy a home – your first or a move up – there are two things you ought to do first:

1. Choose a Lender that is a good teacher. There is no reason to be surprised at or after the closing of your real estate transaction.

2. Choose a Realtor that has this same trait. A professional, licensed, full-time Realtor gives you a lot of confidence, information and expertise to help you act like a “pro” in a real estate transaction even though you may only participate in one, four or five times in your entire life.

In the spirit of being a teacher and working with professionals, the video embedded here is a very good explanation of the new forms that lenders will be using as of the beginning of 2010. It was put together by the National Association of Realtors. The NAR (and the Realtors who are a part of it) has been a huge advocate for consumers.

I for one embrace these new forms and the attendant education and disclosure that is now required to be given to consumers…

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Author: Evan Vanderwey
Website: http://www.lansingmimortgage.com/reminder-that-opportunity-i…

I am not one to predict the future of what will stick and what will be a fad. The reason I like this information is that it reminds me just how much opportunity is out there. Anyone can lead, start a business or communicate an idea. It is good to be reminded that in a world that is always moving, if you keep trying new things and keep learning, the future can always hold new and exciting opportunities.

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Author: Evan Vanderwey
Website: http://www.lansingmimortgage.com/fha-changes-nothing-life-th…

I will often find another blogger who has said something as well as I can say it. In the interest of time I’ll link you to their site rather than write what they’ve written. This not only gives my readers good information but it helps the other site by driving traffic to it.

FHA is going through a major overhaul because they are not yet seeing improvement in the performance of their portfolio – including loans they accepted in the last two years! Follow the link below to read a few important updates from FHA.

http://activerain.com/blogsview/1443094/fha-changes-coming-tomorrow

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Author: Evan Vanderwey
Website: http://www.lansingmimortgage.com/interest-rates-and-the-fed….

Fed President Doubts Mortgage Purchase Program Will Continue – Rates Expected To Rise (excerpted from Mortgage News Daily.com)

On Wednesday night New York Federal Reserve Bank President Bill Dudley appeared on the PBS Nightly Business Report.
It is important to point out that the New York Fed President has more influence than his counterparts. The New York Fed president serves as the FOMC’s vice chairman and is a permanent voting member of the Federal Open Market Committee. It is also interesting to note that the NY Fed President is usually expected to keep a low profile, with that in mind, Dudley’s willingness to share insight and perspective should be taken as an “out of the ordinary” event.

Dudley made several comments that need to be called to your attention. Here are a few:

It would “seem prudent” to pull back on the Fed’s mortgage-backed securities purchase program now that the economy is starting to improve.
“If we were to wait and see what happens, that means we’d have…

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Author: Evan Vanderwey
Website: http://www.lansingmimortgage.com/a-watched-pot-boils-not.htm…

Many are asking me if NOW is the time to buy a home.  If buying a home now will cause me to make money on it if I sell it in 1 or 2 or 3 years.  This is no easy question to answer.  We cannot know what will happen during the next 1, 2 or 3 years.

Two long time clients of mine recently called me to prepare to make offers on homes near their neighborhoods.  Both want to hold the home as an investment and both homes were listed in the $30,000 range.

First we worked out financing in both situations ahead of the offer.  One of them had enough equity in their home for a Home Equity Line of Credit with their Credit Union.  The other had some cash and a paid off vehicle – a car loan made  up the difference.

Second I suggested that they perform their inspection prior to writing the offer.  One of them dewinterized the home and performed a full blown inspection and the other, being a contractor, simply walked through the cold house himself.

The third step was to make an offer –…

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