Jeff Rickard

Rates are going through the roof and the old standards of forecasting rates are no longer accurate.  What is going on?  The following is an explanation that is given by FNMA to their vendors:

The Capital Markets Sales Desk has fielded a large number of calls from customers simply asking,  “What’s going on?  Why is the mortgage market trading lower every day?”  The following are reasons that could help explain why mortgages are struggling and why current market conditions are so volatile: Continue Reading »

Continued from Monday February 25th. ( Remember I am going to go through the exercises from The Seven Minute Difference to develop a story of how my service is different from my competitors)

Part 2 of finding and developing a story that differentiates me from my competitors. 

     The next step in the process is differentiating yourself through your core convictions and strengths.  Your purpose in life ties to your core convictions about your life and work, and the strengths you draw from those beliefs.  Our core convictions about work must match our personal values.

     How do we determine our core convictions?  The first step is to state what you consider your strengths.  Continue Reading »

     There are new loan limits for FHA as part of the economic stimulus package offered by Washington.  This is big news because FHA is a 3% down payment loan and at this point they are not really changing down payment requirements due to the declining market.   The limits in the front range will increase from $308,370 to $406,250.  The limits are different by cities and counties but the $406,250 represents most of the front range.  Boulder is at $460,00 and Eagle County is $729,750.

     There is a big “however” though, which is just because the government announced it does not mean the investors and mortgage companies are prepared to offer it.  We anticipate that we will have investor support by next week but we also anticipate (rumors from investors themselves) that there will be price hits for the increased loan amounts.  In other words it will not be regular FHA pricing it will be increased interest rates.  

When it comes to your credit score, luck, unfortunately, has nothing to do with it.  Now, more than ever, it is important to work on attaining and maintaining a good credit score.

What is a good score?  For mortgage purposes this would be a minimum of 680, especially if you have less the 5% down.  That’s up 60 points from the 620 that was acceptable only 6 months ago.  Anything below that could now cost you hundreds of dollars each month. 

We all probably have a pretty good idea of how to maintain an acceptable credit score.  However there are a few things borrowers do on a monthly basis that may not help and could actually hurt your credit score.  These actions may seem like good ideas but in reality are not healthy for your credit score.  Continue Reading »

     This is a question that I am asked constantly and with the changes in the mortgage industry “as much as you want” is no longer the answer.  There is a “Credit Crunch” and an “Affordability Crunch” going on today.  In the old days it was banking practice to say you could afford 2 - 3 times your annual income for a home.  In the last few years that “New Normal” was expanded to 5-6 times your annual income, and then we would let you artificially inflate your income.  No wonder we are in a foreclosure nightmare! Continue Reading »

Continued from Monday February 25th. ( Remember I am going to go through the exercises from The Seven Minute Difference to develop a story of how my service is different from my competitors)

Part 1 of finding and developing a story that differentiates me from my competitors. 

The first step is to define what I like and don’t like about the mortgage business.  Continue Reading »

We are all aware of the the changes and hysteria in the mortgage business lately.  There are over 200 mortgage companies / investors out of business in the last twelve months.  B paper is gone, no income is gone, stated income is for the most part gone, 100% financing is seriously hampered or gone in the conventional market, negative amortization is highly regulated or gone and low credit scores, if they can get a loan, will pay dearly for it. 

     The big question is will they stay gone?  In the past we have had many cycles of the market getting tough and the pendulum swinging in the opposite direction.  Then the market improves and the pendulum swings back.  Continue Reading »

     The 2007 tax change that allowed mortgage insurance to be tax deductible has been extended by the IRS for the next 3 years.  Yippee! 

 What is a declining market?  It seems simple enough to explain, it is when real estate values are dropping in a market place.  Basically all of the front range currently qualifies as a declining market.  In the mortgage industry a declining market has major impact on the loans that we can do and how much you can borrow. 

     For example, if the home you want to buy is in a declining market conventional lenders require an additional 5% down payment.  So a loan program that was 100% financing now requires 5% down or basically changes it to a 5% down loan.  If you were required to put 10% down now it would require 15%.  Remember almost all the front range is considered a declining market by Fanni Mae and Freddie Mac. 

     FHA and VA has not at this time required additional down payment in declining markets but appraisals are now being heavily scrutinized.   

    Two things separate you from your competitors: a very specific strategy for your business and a story that tells the community you live in - or even the world - why you are different.  This is a quote from “The Seven Minute Difference” written by Allyson Lewis.

     I am going to go through the process of developing that story on my blog.  I am going to take the ideas from the book and do the exercises on line so you can see if and how it really works.  This process will take the next few weeks of Motivation Monday but I think it will prove very helpful for me and you.