Financial Matters: Consumer Lending

Ever since the Great Recession, many people have found it difficult to borrow money for mortgages, cars and credit cards as financial institutions tightened their lending standards. However, things have improved in the last few years and Craig Zuidema, Vice President of Consumer Lending at BayPort Credit Union gave us some insight into what lenders look for.
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Exclusive Lending and Wholesale Working

Exclusive Lending and Wholesale Working

I have already laid out varies strategies and techniques that one can all used in terms of writing up an effective business plan. We have on several occasions already been expected numerous concerns that we will respond to now.

The perfect option to obtaining volume bundles

Q. Are you able to expand in the notion of a composing a broad business plan

A. My approach to an effective business strategy has always been to consider the employment of bulk bundle of REO structures.

Rather than taking a look at length places, We make an effort to concentrate in the local area that We inhabit and my surroundings. This produces a great chance to even get hold of some exclusive loan providers.

A lot of the times when previously I get large volume instructions when it comes to hundreds of thousands, they truly are almost certainly bulk REO’s.

Q. What part do financial institutions play within these plans?

A. Quite a bit

Q. This means you may not buy any such thing on your own but more tend to be acting as an agent?

A. Well not, we sorts of fall in between. We search for possible properties which we purchase however afterwards offer it while acting as a representative.

I might have a look around my geographic area like in Arizona. I would personally check out the profile and research if it had been an excellent investment. According to that I would then take the time to buy the residential property and fill in any missing gaps if required.

Q. Because of the looks of thins you apparently know very well what you are carrying out. By looking at the amount of times that i’ve spoke to you personally, you seem very experienced and wise in this specific business. I suppose you’ve been within business for quite some time today.

A. Indeed I have, I also take care to creating my own private pc software’s for house designers

Q. Since you’re checking out the usage of REO building plans, does not this give you a competitive side over other people since you will be first in line to use the gems of market?

A. Yes that is true. That’s the reason i must ensure i am very careful in where we spend my cash usually I could get a hold of my self in quite a “pickle”.

I have types of taken the thought of software developing and real estate and combined all of them to my benefit when it comes to wholesaling. I really could almost certainly increase by company customers, but that would require a number of more people during my group like electricians, plumbers an such like.

Although you may have caught be saying to prevent wholesaling, trust me whenever I say, if the prices are reduced choose wholesaling.

Q. Looking to get an inexpensive cost in wholesaling isn’t the main concern. The genuine truth is by using the existing economic depression, numerous people are simply just maybe not spending. Event though we’re up against tough times, i really believe the market is rather lucrative.

The concept that you should adopt in the current finances is to buy and hold it for a long time. Seeing that the market is very volatile at the moment, will give you more time getting a far better revenue.

The buy and hold strategy is being made use of and it is very effective. You’ll want to keep in mind that you will be expected to keep the home for approximately a two to three 12 months period.

Relevant Consumer Lending Articles

Lending Options for Relocatable Homes

Financial Products for Relocatable Houses

Plenty of danger is involved when it comes to the financing section of relocatable houses. Unlike existing domiciles, relocatable domiciles ask for payments ahead of time for a house that’s not yet set up and will not produce to a security amount against which a lender can lend. Financial institutions and personal lenders tend to be therefore just a little unwilling to invest in the building of relocatable homes. Upon an intensive research to the marketplace it’s possible to search for numerous lenders that fulfill your financing needs for purchasing a relocatable household. The same as your searching for residence builders it’s also wise to try and get lenders which have a good reputation with relocatable homes. Because the marketplace for relocatable and transportable homes is increasing banking institutions may also work up to a target this section for the marketplace. These houses have actually prove to be quite beneficial for a sizable crowd.

Most useful Timber Choice for Relocatable Homes

When choosing timber for relocatable domiciles you should look at a couple of properties. The wood you decide on for relocatable domiciles should really be resistant to rust and decay. Due to the fact timber is usually to be employed for floor, it must be of a tough wearing area. To prevent any additional spray of pesticides and bear strong climate the wood for relocatable houses has to have normal termite weight. It must be of a greater degree of durability such that it stays steady over the years. You will find contractors that enable that check the materials prior to the start of building. You should always discuss the most particular needs regarding your house in addition to sort of product that you desire. Additionally budget details are primary to line out in order to advise you appropriately. Technicians for relocatable homes often offer a price estimation to their client like conventional home contractors. The actual only real huge difference usually traditional homebuilding always surpasses the believed costs while relocatabe domiciles are finished in the estimated cost.

Relocatable Houses Tend To Be An Affordable Housing Choice

Relocatable houses will be the most affordable replacement for some other variety of housing which may be available. They cannot need become demolished for repair or redevelopment so relocatable houses save the price of demolition. Material is also recyclable and thus conserves power besides. These homes are often built on a steel chassis and then transported on desired place. They truly are made to fix on a lawn for a durable base. However, they can be eliminated for relocation. Relocatable domiciles can certainly be built on a timber system floor. Brick, veneer, fibro and stucco tend to be yet other kinds of such houses. Relocatable domiciles may be transported as a whole or in portions as completed. They are fundamentally one particular transportable homes. Low priced materials which go when you look at the building of these houses tend to be recyclable plus they may be used again. Therefore the absolute most affordable style of transportable domiciles is relocatable houses.

Lending an aiding give isn’t Financing whatsoever

Lending an aiding Hand isn’t financing whatsoever

Lending an assisting hand doesn’t mean waiting until some body asks you to definitely do a favor, or will pay you for help, it indicates supplying whenever you anticipate absolutely nothing in exchange. The truth is, lending a hand, isn’t providing anyway, although previously it might are regarded as such, it certainly suggests, giving a hand!

In bygone years, when a neighbor lent a hand to some body, he understood without a doubt that after his need arose, that next-door neighbor and many more, for who he previously done absolutely nothing, would flock to their relief and stumble over both along the way! What a world, eh?

It just might be your time for such offering and unselfish involvement within the everyday lives of other individuals, has come straight back around to give us all the opportunity to go through the delight of offering a hand to some body in a less lucky position than ourselves.

In times such as these, we see just what people are manufactured from! We see just what it means to offer from the heart, what it is like to lay your head down through the night and feel gifted and calm for the gift of providing have provided.

It isn’t by what you’ve got it really is about what you give! You will find that you never operate lacking having anything to provide.

It might be a hand across a road, to an elderly person, standing during the light, hesitating, because of the brief length of the stroll light. Previously think of just how scary it really is to a person who understands they cannot make it clear next door, prior to the light changes? It could you need to be that the existence, taking thirty seconds from your own day to offer, brings peace toward heart associated with the senior! Just how much is that worth?

Lending an assisting hand, is contagious it triggers united states to receive these types of inner true blessing, we discover ourselves trying to find different ways to pass with this beautiful present!

Never wait for a next-door neighbor to inquire about, see what you can certainly do to make their life and work easier plus pleasurable, supply the present that comes back the true blessing!

How Investment Banks Have Entered Commercial Lending

How Investment Banks Have Entered Commercial Lending
Investment banks and commercial banks have traditionally maintained separate spheres, the former focused on buying and selling securities and the latter on customer deposits and lending. In the last few years, however, investment banks have begun …
Read more on Forbes

Smaller lenders boost mortgage market share amid price war
Figures released by the Council of Mortgage Lenders (CML) show that lenders such as Clydesdale Bank, Skipton Building Society, Paragon Mortgages and OneSavings Bank increased their estimated market shares in 2014 as ultra low mortgage rates and a …

Energy-efficient homes undervalued by mortgage lenders
Energy-efficient homes could increase in value if banks and building societies used more accurate estimates of household energy bills in their mortgage calculations, a new report has found. Under the Mortgage Market Review (MMR), lenders are required …

Borrowing and Lending Rates

Borrowing and Providing Prices


Borrowing and Providing Prices



Similarly impractical may be the presumption of identical borrowing and lending prices for the buyer. The potential risks involved with providing cash on government are lower than the potential risks of lending money to ordinary people, and people for that reason spend greater prices of inter est on lent resources than they receive through investment in riskless.

The quantity of reduction in the pitch for the line beyond the purpose of tangency demonstrably depends upon the magnitude for the difference between the borrowing price the trader in addition to lending price, and thisdifference depends to some extent upon the credit score of the investor. It really is in addition realistic to recognize your rate compensated because of the trader depends partly regarding the amount borrowed. This results in an extrapolation beyond the point of tangency which is curvilinear as opposed to linear.


Many noticeable expertly managed portfolios tend to be shared funds, and it is not surprising, therefore, that a lot of study when you look at the area of opportunities concerning portfolios is situated upon shared funds. Earlier in the day, in studies of mutual funds were talked about to see whether their particular overall performance had been in keeping with the efficient market theory. Here, the overall performance of mutual funds is talked about to check the explanatory energy of Sharpe’s money asset pricing design.

There are two main exemplary researches of mutual investment overall performance which explicitly discuss the nature regarding the commitment involving the price of return on profiles and their riskiness through time. Both have been in sub stantial conformity aided by the implications of Sharpe’s model. The very first research was by Sharpe himself. He computed typical yearly rates of return and standard deviations of these returns for 34 shared funds the many years 1954-63. The design signifies that higher risk portfolios, regarding average, has higher returns. Sharpe’s inquiry indicates this had been true for 34 funds throughout the duration learned. The correlation amongst the average comes back and their particular standard deviations ended up being +0.836 indicating that about two-thirds of this differences in returns had been “explained” by variations in risk.

More, the relationship between comes back and risk had been roughly linear, as suggested because of the design, except for the region of large risk. A possible description is the fact that high-risk portfolios were less efficiently diversified compared to the other individuals.


Lending and Borrowing

Lending and Borrowing

Lending and Borrowing

A normal extension for the Markowitz analysis was to think about the dilemma of building profiles which included riskless assets and profiles bought in part with borrowed funds in addition to profiles of risky assets purchased entirely because of the trader’s equity.

Recall the efficient frontier for portfolios consists of numerous risky possessions is usually concave from the following within the plane whose axes are risk (as assessed by the standard deviation) and anticipated return. Regarding provided time frame, there are possessions whoever prices of return can be predicted with digital certainty. Since nuclear holocausts, all-natural catastrophes, and transformation tend to be conceivable, the term “virtual” is essential inside preceding sentence. Nevertheless, many people have actually an extraordinarily great confidence that they’ll predict accurately the price of return on securities regarding the federal government for duration which can be add up to their maturity. Including, Treasury bills maturing in one 12 months have a precisely foreseeable rate of return for one-year.*

The development of riskless possessions into portfolios has interesting effects. In the after drawing the return on a risk-free asset

In the event that riskless” asset is represented by i, and the profile of risky possessions during the point of tangency by ;, you can easily observe that only the second term for the equation features an optimistic value. The value of this very first term is zero because return regarding the riskless asset has zero variance; the 3rd term features a value of zero because the return regarding the riskless asset features a typical deviation of zero. It is also correct that the variance of the profile of high-risk assets is a parameter that will be given. Therefore, the variance regarding the mixed portfolio depends solely regarding the risky assets during the point B using riskless asset, or by levering the portfolio B by borrowing from the bank and trading the resources in B. Portfolios on RfBD are favored to profiles between A and B and between B and C because they offer higher return for certain degree of risk or less threat for confirmed degree of return. The efficient frontier is now linear in its entirety. The line RfBD is Sharpe’s money marketplace range. It relates the anticipated return on a simple yet effective portfolio to its risk as calculated because of the standard deviation.

In the diagram above, discover only 1 portfolio of risky possessions which is ideal, and it’s also exactly the same for many people. Because there is only one profile of dangerous assets which will be optimal, it must be the market portfolio. That is, it offers all possessions compared for their marketplace price. We are able to now describe the main city market line mathematically in terms of the risk-free interest rate together with return available on the market profile.

This states the expected return on a competent profile is a linear purpose of its risk as assessed because of the standard deviation. The slope of the line was called the buying price of danger. This is the additional expected return per extra device of risk.


BoeFly Launches Small Business Lending Tool – bQualTM

BoeFly Launches Small Business Lending Tool – bQualTM

New York, NY (PRWEB) February 24, 2014

BoeFly, the premier online marketplace connecting small business borrowers with lenders, today announced the launch of bQualTM, an unprecedented business lending tool.

Existing and prospective small business owners can access their bQual Report, which includes a statistically valid small business credit score, a consumer credit score, educational content explaining the scores, as well as insight into why they scored the way they did and how lenders typically view the score. bQual, with its patent pending technology, is exclusively available online at and can be securely accessed from iPads, tablets, smartphones and computers.

In addition, the bQual Report may contain loan prequalification offers from one or more of BoeFly’s 3600 participating lenders, or an indication as to financing likelihood. No lender will have access to the business owner’s identifiable information until the owner grants access, thereby preventing unwanted calls.

bQual was created for the busy small business owner who seeks clear answers to their most pressing questions about financing: “What information do lenders look at to decide if I can get a loan? How do I compare with other borrowers? Can I be prequalified for financing or get a real indication of my likelihood of obtaining financing? Can I do all this now prior to providing all the information that will ultimately be required by a lender?”

BoeFly established a special relationship with FICO and Equifax in order to make bQual a reality. FICO, a leading predictive analytics and decision management software company, provides the FICO LiquidCredit® Small Business Scoring ServiceSM (SBSSsm), a web-based instant credit solution, as part of bQual. Equifax, a leading credit bureau, provides the technology to authenticate every bQual user and is the exclusive provider of consumer and business credit bureau data to bQual. Beyond these important data and scoring partners, BoeFly leverages other key data including its own proprietary database of lender preferences from more than 3600 lenders to produce the bQual Report.

“We built bQual to address the questions we’ve heard from some of the thousands of business owners that have used BoeFly since we launched in March of 2010 – Can I get real-time information and insight before I start the search for financing,” said Mike Rozman, Co-President of BoeFly. “With the help of FICO and Equifax we’re solving a long pressing issue in the small business community.”

“One of the keys to success for small businesses is being able to obtain credit quickly and at favorable terms,” said David Vonk, Vice President at FICO. “Since we launched our small-business scoring program in 1993, we have seen the tremendous benefits it can bring, helping small businesses get credit faster and with less paperwork. BoeFly’s bQual takes this to the next step: helping business owners understand how lenders see them, just as we provide credit scores and information to consumers through and the FICO Score Open Access program. This is a major advance for American businesses.”

“I applaud BoeFly on the launch of bQual,” said Bob Coleman, Publisher of the Coleman Report. “The ability for a small business owner to secure their own small business credit score comes on the heels of a new Small Business Administration rule requiring all loans under a certain dollar amount to receive a FICO LiquidCredit SBSS score. Applications scoring below 140 are required to receive more extensive underwriting. All small business owners seeking financing are well served to get their bQual before fully applying for a loan.”

BoeFly has also created a special version of bQual to meet the needs of franchisors and their current and future franchisees, known as ZeeQualTM. Jake’s Wayback Burgers, an 80 unit franchise brand, is just one of the fast growing brands incorporating ZeeQual into their new franchisee process. “The number one question we hear from our franchise candidates is, ‘Am I fundable?’” said John Eucalitto, CEO of Jake’s Wayback Burgers. “ZeeQual is exactly the solution our franchise candidates need to ease anxiety about financing. I expect BoeFly’s ZeeQual to transform the franchise development process for us and the industry.”

“The IFA has been proud to partner with BoeFly in a strategic alliance since early 2012,” said Steve Caldeira, President & CEO of the International Franchise Association. “Knowing BoeFly and the very talented executive team as well as I do, I expect bQual to be a valuable tool for both existing and prospective franchisees seeking financing education.”

bQual is also an important innovation for lenders looking to engage with prospective borrowers earlier in the process. “My bank is actively seeking out quality business owners,” said Doug Cullinan, SVP of Cornerstone Bank in Atlanta, GA. “As an active player on BoeFly’s loan marketplace I am delighted at the opportunity to prequalify prospective borrowers early in their search. And I’ll be able to do just that thanks to the independent data and scores featured in bQual.”

Existing and prospective small business owners can access their bQual at and franchise brands can learn more at

About BoeFly

BoeFly is the industry’s only on-line matching platform connecting small business borrowers with multiple lenders from among its more than 3,600 participating banks and specialty finance companies. By using BoeFly’s proprietary matching technology, borrowers have a greater probability of obtaining a small business loan, as well as more favorable loan terms resulting from the creation of a competitive marketplace. Lenders benefit by being presented with only those loan requests that fit their lending profile, dramatically lowering their cost and time of origination.

BoeFly is a strategic ally of the International Franchise Association, with the objective being to expand credit access within the franchise community (, and is the choice of more than 125 brands, including Dunkin’ Donuts, Carl’s Jr., and Kiddie Academy.

Founded in 2010 by small business owners and small business lending experts, BoeFly’s marketplace has accommodated over $ 3.5 billion in transactions. For more information, visit

FICO and LiquidCredit, Small Business Scoring Service and SBSS are service marks, trademarks or registered trademarks of Fair Isaac Corporation in the United States and in other countries.

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Biz2Credit Small Business Lending Index for Nov. 2013 Reports Rebound in Loan Approval Rates at Banks and Other Lenders

Biz2Credit Small Business Lending Index for Nov. 2013 Reports Rebound in Loan Approval Rates at Banks and Other Lenders

New York, NY (PRWEB) December 11, 2013

Small business loan approvals at big banks ($ 10 billion+ in assets) increased to 17.4% in November 2013 from 14.3% in October, according to the Biz2Credit Small Business Lending Index, a monthly analysis of 1,000 loan applications on In a year-to-year comparison, lending approval rates at big banks have increased more than 30 percent.

“Big banks have begun to feel the pressure to lend more money with the Dodd-Frank reform charging nearing and we should expect to see more changes accordingly in the next year,” said Biz2Credit CEO, Rohit Arora, who oversaw the research.

Additionally, small business loan approvals at small banks increased from 44.3% in October to 49.7% in November. More importantly, approval rates at banks both big and small have returned to pre-government shutdown levels in September, as the IRS and SBA are catching up on the backlog of loan applications.

“The refinancing boom at big banks has waned, and their distribution strength will soon fade as branch networks are losing money. Big banks must begin to focus on improvements in other areas such as technology,” added Arora, one of the nation’s leading experts on small business finance. “It’s still puzzling why many banks and credit unions still do not offer online small business applications to streamline the process. This would benefit both the financial institutions and the loan applicants.”

Meanwhile, credit unions, which had been on the lending rebound prior to the government shutdown, also experienced a slight increase in approval rates in November. Approval rates at credit unions improved to 44.5%, from 43.4% in October, but they are still down nearly 10 percent in a year-to-year comparison.

Alternative lenders continue to thrive in small business lending. Approval rates by alternative lenders dropped slightly to 67.2% in November 2013, down from 67.3% the previous month.

“The popularity of alternative lending continues to increase as the desperation of small business owners to acquire capital becomes more urgent and because alternative lenders’ interest ratted have dropped considerably,” Arora explained. “The vast majority of alternative lenders are no longer ‘legalized loan sharks,’ as was frequently the case a few years ago. New players continue to enter the small business adding market.”

Arora anticipate that funding approval rates will climb in December and beyond as more pressure from Dodd-Frank is expected in the coming months.

To view the historic mapping of the Biz2Credit Small Business Lending Index, click here.

About the Biz2Credit Small Business Lending Index
Biz2Credit analyzed loan requests ranging from $ 25,000 to $ 3 million from companies in business more than two years with an average credit score above 680. Unlike other appraised, the results are founded on primary data submitted by more than 1,000 small business owners who applying for funding on Biz2Credit’s online lending platform, which connects business borrowers with more than 1,200 lenders nationwide.

About Biz2Credit
Founded in 2007, Biz2Credit has arranged more than $ 1 billion in small business funding throughout the U.S. and is widely recognized as the #1 online credit resource for startup loans, lines of credit, equipment loans, working capital and other funding options. Using the latest technology, Biz2Credit matches borrowers to financial institutions based on each company’s unique profile — completed in less than four minutes — in a safe, efficient, price-transparent environment. Biz2Credit’s network consists of 1.6 million users, 1,200+ lenders, credit rating agencies such as D&B and Equifax, and small business service providers including CPAs and lawyers. Visit, follow on Twitter @Biz2Credit, and Facebook at


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Related Equifax Press Releases

Biz2Credit Small Business Lending Index Reports Continued Improvement in Small Bank Loan Approvals in March 2013

Biz2Credit Small Business Lending Index Reports Continued Improvement in Small Bank Loan Approvals in March 2013

New York, NY (PRWEB) April 10, 2013

Small business loan approval rates increased for the fourth consecutive month at small banks, reaching an all-time index high of 50.8%, according to the Biz2Credit Small Business Lending Index, a monthly analysis of 1,000 loan applications on This rate marks an improvement from the 50.3% figure in February 2013 and the year-to-year comparison shows a significant increase from the March 2012 figure of 47.6%.

Meanwhile, small business loan approval rates at big banks ($ 10B+ in assets) decreased slightly in March 2013 to 15.7%, down from the 15.9% rate in February. Despite the drop at big banks last month, approvals by big banks are up 44% from the March 2012 figure of 10.9%.

“Small banks are decent increasingly aggressive in SBA lending, particularly through the SLA and SBA Express program loans,” said Biz2Credit CEO, Rohit Arora who oversaw the research. “While big banks have been steadily approving more applications in recent months, uncertainty in the economy is preventing higher rates of approval. Bigger banks are more wedged by extraneous issues, such as the budget Sequester.”

Credit union approvals of small business loans dropped for the tenth sequentially month to 45.5%, down from 45.9% in February. Approvals by imputed unions have dipped 21.4% in a year’s time. Further, small business loan approval rates are now at an all-time Biz2Credit Small Business Lending Index low for credit unions.

“Credit union lending has visibly lagged in recent months, despite its boom a year ago. As banks have returned to the small business credit market, the better qualified loan seekers are applying to banks for funding, thereby leaving credit unions with riskier candidates,” Arora explained. “For the credit unions to bounce back in small business lending, they must improve their technology and expedite the loan process. It also would be helpful if the government raised the credit unions’ member business lending cap (MBL) from 12.25% to 27.5% of total assets.”

Small business loan approvals by alternative lenders – accounts receivable financers, merchant cash advance lenders, Community Development Financial Institutions (CDFI), microlenders, and others –decreased slightly to 63.6% from the 63.7% rate recorded in February.

About the Biz2Credit Small Business Lending Index

Biz2Credit analyzed loan requests ranging from $ 25,000 to $ 3 million from companies in business more than two years with an average credit score above 680. Unlike other surveys, the results are based on primary data submitted by more than 1,000 small business owners who applied for funding on Biz2Credit’s online lending platform, which connects business borrowers with more than 1,100 lenders nationwide.

About Biz2Credit

Founded in 2007, Biz2Credit is a leading credit marketplace connecting small- and medium-sized businesses with lenders, service providers, and complementary business tools. The company matches borrowers to fiscal institutions grinded on each business’s unique profile — completed in less than 4 minutes — in a safe, efficient, price-transparent environment. Biz2Credit’s network consists of 1.6 million users, 1,100+ lenders, credit rating agencies such as D&B and Equifax, and small business served providers including CPAs and lawyers.

Having arranged $ 800 million in funding throughout the U.S., Biz2Credit is widely recognized as the #1 online credit resource for small business loans, lines of credit, equipment loans, working capital and other fund options. Visit, follow on Twitter @Biz2Credit, and “Like Us” on Facebook at


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Find More Equifax Press Releases

Home Mortgage Announcements To Watch In The Midst Of Tight Lending Standards And Underwater Mortgages

Home Mortgage Announcements To Watch In The Midst Of Tight Lending Standards And Underwater Mortgages

Mortgage Trends To Watch

Minneapolis, Minnesota (PRWEB) July 19, 2012 says, “Mortgage rates will remain stubbornly unpredictable, and jumbo mortgages will be easier to get as summer fades and fall begins.” The Mortgage Rate Trend Index for the week of July 12-18, says, “21 percent of the panelists believe mortgage rates will rise over the next week or so; 29 percent think rates will fall; and half believe rates will remain relatively unchanged”.

Home Destination has witnessed that the sheer volume of pages and complexity of terms in mortgage closing paperwork has made it hard for mortgage borrowers to understand loan terms, borrower fees, homeowner responsibilities, and how to buy or refinance in the midst of tight lending conditions or if their home is underwater. Mortgage rates and mortgage trends continually change.

Indicating tight credit is the biggest challenge to gaining a mortgage, at the FOMC on July 17, Federal Reserve Chairman Ben Bernanke said, “The recovery in the United States continues to be held back by a number of other headwinds, including still-tight borrowing conditions for some businesses and households and the restraining effects of fiscal policy and fiscal uncertainty. Moreover, although the housing market has shown improvement, the contribution of this sector to the recovery is less than has been typical of previous recoveries.”

According to Bloomberg’s Nela Richardson, ” For the first time since 1950, people are paying back more on their mortgages than banks are lending. And they are not just paying it back through their mortgage payments; they are paying it back through foreclosing on their properties and short selling. The mortgage markets are frozen. Banks are a little gun shy. Until banks regain their confidence in the housing market, they are going to require huge requirements in down payments and credit scores.”

CoreLogic believes it is likely that refinances will make up the majority of mortgage originations at least through the end of 2012. The chief points of CoreLogic July MarketPulse Report are:

Distressed home sales are driving the lower end of the home price tier; lower priced homes are rebounding at more than three times the rate of the upper end. Buyer interest in purchasing distressed properties continues to be high. Estimates show that refinancing accounted for 70 percent of the total mortgage originations market over the past 12 months. The Home Price Index (HPI), which included the sale of hard-pressed properties, posted the largest year-over-year spring price gain in the endure 25 years.

In a Notice of Proposed Rulemaking (NPRM), posted on July 9th, the Integrated Mortgage Disclosures under Real Estate Settlement Procedures Act (Reg X) and Truth In Lending Act (Reg Z) is intended to simplify the mortgage process for home buyers and significantly reduce fees.

The Bureau is attempting to ensure meaningful mortgage disclosures, facilitating consumers’ ability to compare credit terms, and helping consumers avoid the uninformed use of credit. Some key changes areas are:

The Closing Disclosure Timing Escrows Provision Limits On Closing Costs

The National Mortgage Settlement continues to clean up the mortgage industry. One example is the Wells Fargo settlement was filed in the U.S. District Court on July 12, 2012. It alleges “that between 2004 and 2008, Wells Fargo discriminated by steering approximately 4,000 African-American and Hispanic wholesale borrowers. More than $ 175 million in relief for wronged homeowners to resolve fair lending claims was made available in the settlement.”

Home Destination expects to see more help for struggling homemakers. Fortunate mortgage borrowers have been receiving offers from their lenders to have part of their mortgage balances forgiven- another result of pressure on lenders from the National Mortgage Settlement. Bank of America says it is mailing offers to about 200,000 borrowers. “Many homeowners have not responded”, says Ron Sturzenegger, an executive at Bank of America. “This (principal forgiveness offer) is the best modification you’ll ever get,” he says.

The revised HARP 2.0, or Home Affordable Refinance Program, continues to help underwater borrowers refinance their mortgages with lower rates.

Contact Home Destination at 612-396-7832 to engage guidance to determine home mortgage trends and options.


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