2010-03-10T06:04:42Z Aequor Copyright 2010, Aequor SPHPBLOG Federal Reserve has signaled its intentions to wind down its purchase program as of the first quarter of 2010. As this news spreads rates surely will rise, even today by looking at the current rate sheets a 30yr fixed can be seen at 6% or higher. There is still some good news. First Time Home Buyers are still receiving the $8,000 tax credit, thanks to an extension on the act by congress and the creation of a $6,500 current homeowner’s relief credit.
As rates rise, your opportunity declines. This is one of the greatest times to secure a financially stable future for you and your family. Right now, with rates rising there are still opportunities to take advantage of today’s market. Lock yourself into a proper refinance or home loan with reasonable terms. Don’t wait for them to surpass the 6’s and ultimately lead on even higher.
At Aequor we will work hand and hand with you and our lenders to ensure you get the proper loan. We will find a loan that is going to have a true financial benefit to you as our client. Analyze all the different scenarios. We will take a hard look not only into your home loan but also your other finances to ensure you and your family has a prosperous future. Our ultimate goal is make sure American families are educated not only about their home loans but also about their finances to ensure they have stable futures. Reach out to me today, let my expertise and the team surrounding me help you and your family get on the right financial path.
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Adjustable-rate mortgages, or ARMs, constitute one-third of home loans these days. Yet rates on 15- and 30-year fixed-rate mortgages are very low by historical standards. ARM rates are even lower, but they could rise when it's time for them to adjust. You're going to hear a lot of financial journalists who say these ARMs are dangerous, you're putting your house at risk, and you’re crazy to take an ARM at this time of historic lows. Unquestionably, there is a lot of emotion involved. After all, this is one of the biggest financial decisions of your life, and as with any argument, there is some truth in it.
It's true, that a long-term, fixed-rate mortgage is the right loan. If somebody says, I'm going to be in that house forever. That's an automatic 30-year fixed, but the average homeowner stays in the house about five to seven years. First-time home buyers, who usually are young and have expanding families and growing incomes, are likely to remain in their starter homes for just a few years before moving on and to a bigger house. Adjustable rates, especially the popular hybrid adjustable rates that carry an introductory rate that lasts three, five, or seven years, are appropriate for those whom a payment increase wouldn't be the end of the world. It depends simply on your current economic situation.
In conclusion, which loan program you choose should be a reflection of your long term goals. Call me so we can discuss which program is right for you. At Aequor Funding saving you money is our only objective.
]]> http://www.mycplc.com/fundingnews/index.php?entry=entry091125-092935 2009-11-25T00:00:00Z 2009-11-25T00:00:00Z Call me today and within 15 minutes I will have all the information I need from you to decide what works best for you and your family and I will offer different scenarios to you, showing you all the pro’s and con’s of each. All it takes is one phone call and within three weeks you may be saving hundreds if not thousands of dollars a month. I always tell my clients that I will not pursue a deal unless it makes “financial sense.” When I say financial sense I mean significant and tangible financial savings. At the very least you can find out if the opportunity is out there for you today to put yourself in a better financial position and eliminate some if not all of the financial burden and stress in your life right now. Call me today for a free consultation at 732-650-8696 ext. 2005.
]]> http://www.mycplc.com/fundingnews/index.php?entry=entry091125-092740 2009-11-25T00:00:00Z 2009-11-25T00:00:00Z Lately we have seen some signs of economic recovery; however job stability is still uncertain for many. Many families are still tight on money and are still running up their credit cards as a means to stay afloat. For those families that find themselves in this situation yet have the income, credit, and equity to refinance, now may be your last chance to be rescued from financial collapse.
The steps to financial rescue are simple at AEQUOR Funding Corp. Simply refinance your mortgage, consolidate your debt, lock in at a lower interest rate, and even take some money out to put into your checking account. When is the last time you saw five digits in your checking account? We can do that for you, we can also eliminate all your credit card payments while simultaneously lowering your mortgage payment and putting money in your checking account. This may seem too good to be true but it’s not! AEQUOR funding can consolidate your stress, eliminate your worry, and increase your happiness. YES WE CAN!
]]> http://www.mycplc.com/fundingnews/index.php?entry=entry091023-132309 2009-10-23T00:00:00Z 2009-10-23T00:00:00Z Let’s begin by explaining them to you our reader and future clients. The first being Honesty; our pledge to all our of clients that we will not only take the time to do what’s right for them but to be upfront, clear and understanding of their needs. Respecting their best interests and doing what’s right for themselves and their families. Next, integrity; that we would do what’s right for our clients rather then what’s right for our pockets. We look to achieve optimum profits not maximum profits. We believe that a core of honesty, integrity and trust will bring our company to the leading edge of lending. By gaining not only the respect but trust of our clients we are ensuring a prosperous future for all that do business with us.
The previous years have been rough for the mortgage business. The housing market crashed and rates went down with them. The government has set up new rules, regulations and terms for mortgages which may seem overwhelming for many buyers. The people that can really take advantage of them are first time buyers. Many first time buyers are people that at one point would not be able to get approved for a loan. They have stable income but not enough assets for a down payment on a home. Whatever the case was in the past the terms are now a lot more lenient and they are great incentives for first time home buyers. The government has put out an 8,000 tax credit for first time home buyers. This can help take off that weight of the down payment and help you afford a home that you and your family will feel comfortable in.
Urban areas are the place to look if you’re looking for a market with a good home and stability. These markets were hit heavily during the market crash and many investors had begun before the crash remodeling and building in these environments. Now many of these markets are starting to come up. However many investors are staying away. This creates a good vibe for first time home buyers as realtors are seeking clients to take advantage of these homes. Many of which are foreclosures’ which the banks are selling at fractions of their valued price. Now is the time and with Aequor by your side we will help you find the right loan for the right home. We will work day and night, hand by hand and side by side with you to assure you that you are getting the best solution for you and your family. This is our pledge and our promise to you. My personal quest is to be your guide as you embark on a future of prosperity through quality home ownership.
]]> http://www.mycplc.com/fundingnews/index.php?entry=entry091023-132120 2009-10-23T00:00:00Z 2009-10-23T00:00:00Z Although you may feel the need to get multiple quotes, why waste your valuable time? Our job is to get you the best available rate, and we work hard to make that happen. I am confident that I can beat a large retail banls rate any day of the week. How is that possible, (you may be asking yourself)? Allow me to explain, if you were to buy a bottle of water at the local corner store it would cost you a little more than a dollar. If you were to buy that bottle of water in bulk you would be buying that same bottle of water for pennies. That analogy works the same for us here at Aequor Funding.
Saving our client’s time and money is the essence of what keeps us in business. Let me help you today.
]]> http://www.mycplc.com/fundingnews/index.php?entry=entry091023-131921 2009-10-23T00:00:00Z 2009-10-23T00:00:00Z I believe that the resurgence of the ARM loan will also help stimulate new home purchases. Thus, allowing borrowers to purchase more home for their money. ARM’s are not the solution to all refinancing needs. Borrowers need to consider all options available to them and have a clear understanding of their future financial objectives. For many home owners “it’s time to arm themselves”. As always, please read our news letter in order to become a better educated consumer with a greater understanding of the mortgage market and lending trends.
]]> http://www.mycplc.com/fundingnews/index.php?entry=entry091023-131603 2009-10-23T00:00:00Z 2009-10-23T00:00:00Z If you are capable of making the higher payment based on the 20 years, fully amortized term remaining on your original 30 year loan, then one should consider a lower interest rate based on a 15 year mortgage. Today’s rate are in the mid to low 4% range for 15 year loans. The savings generated by this type of financing can be thousands of dollars plus the reduction of 5 years on the term of your existing mortgage.
Another option is to refinance to a lower rate on a 20 year term and make accelerated payments towards principle on an annualized basis. This allows you to save up enough money so that you can make one year end payment (tax refund) that will reduce the term of your loan by 3 to 4 years without having to make larger monthly payments.
I would like to hear comments from our readers, to see what suggestions you may have. Our goal at Aequor Funding Corp. is to bring mortgage news and ideas to better help today’s home owners.

Article By
Martin Cornbluth
Senior Loan Officer
Aequor Funding Corp
]]> http://www.mycplc.com/fundingnews/index.php?entry=entry090925-114450 2009-09-25T00:00:00Z 2009-09-25T00:00:00Z In today’s economy most New Jersey homeowners are struggling, living paycheck to paycheck and drowning in debt. Not being able to save money, put kids through college, or even being able to go on vacation is a major concern for many homeowners. When a homeowner comes to Aequor Funding it is our job to rescue them from a tough a financial situation, and put them in a situation where they don’t have to live paycheck to paycheck anymore.
One thing that differentiates our young company to many of our competitors is our compassion for our clients needs. Compassion is not something that can be taught in the classroom, it is an understanding. Compassion is a desire to help others. The compassion I have as well as my fellow officers have for our clients is the essence of our profitability. When I go home at night and realize how much I helped a family, it gives me pride in what I do and energizes me to go and do it even better tomorrow.

Article By:
Thomas McCann
Senior Loan Officer
]]> http://www.mycplc.com/fundingnews/index.php?entry=entry090925-114314 2009-09-25T00:00:00Z 2009-09-25T00:00:00Z • Modification of Procedures for Streamline Refinance Transactions
• Adoption of Home Valuation Code of Conduct Guidelines (some not all)
• Updated Appraisal Validity Period
• New Appraisal Portability Regs
• New Requirement of Lenders to Submit of Audited Financial Statements for Review
• Adjustments to the Approval Process for Participation in FHA Loan Origination
• Increased Net-Worth Requirements for Lenders
Grabbing the attention of mortgage professionals was FHA's decision to adopt language from HVCC appraisal guidelines. The HVCC, which has been the subject of heated debate within the industry, was implemented by Fannie Mae and Freddie Mac on May 1, 2009. At that time the FHA decided not to adhere to the policy. This undoubtedly increased demand for FHA loan products as originators quickly learned of the multitude of problems associated with HVCC. The new requirements will prohibit any commissioned based lender staff member from ordering an FHA appraisal.
FHA will not require the use of AMCs or other third party organizations for appraisal ordering, if lenders do use AMCs and/or other third party organizations FHA-approved lenders must ensure that:
• FHA Appraisers are not prohibited by the lender, AMC or other third party, from recording the fee the appraiser was paid for the performance of the appraisal in the appraisal report.
• FHA Roster appraisers are compensated at a rate that is customary and reasonable for appraisal services performed in the market area of the property being appraised.
• The fee for the actual completion of an FHA appraisal may not include a fee for management of the appraisal process or any activity other than the performance of the appraisal.
• Any management fees charged by an AMC or other third party must be for actual services related to ordering, processing or reviewing of appraisals performed for FHA financing.
• AMC and other third party fees must not exceed what is customary and reasonable for such services provided in the market area of the property being appraised.
Here are a few other notable changes...
(Excerpts taken directly from Mortgagee Letters)
Appraisals
In cases where a borrower has switched lenders, FHA did not allow a new appraisal to be ordered. Instead the first lender was required, at the borrower’s request, to transfer the case to the second lender. This guideline generally slowed the loan process as the original lender often times was unwilling to transfer the case in a timely manner.
The new guideline, effective January 1, allows a second appraisal to be ordered by the second lender under the following limited circumstances:

1. The first appraisal contains material deficiencies as determined by the Direct Endorsement underwriter for the second lender.
2. The appraiser performing the first appraisal is on the second lender’s exclusionary list of appraisers.
3. Failure of the first lender to provide a copy of the appraisal to the second lender in a timely manner would cause a delay in closing, posing potential harm to the borrower.

Potential harm includes events outside the control of the borrower such as loss of interest rate lock, purchase contract deadline, foreclosure proceedings, and late fees.
FHA also reduced the length of time that an appraisal could be considered valid for collateral underwriting. Previously, FHA considered an appraisal written within the last six months to be an acceptable property valuation. Today's announcement reduces that period from six months to four.
Advertising
FHA-approved mortgagees must use their HUD registered business names in all advertisements and promotional materials related to FHA programs. HUD registered business names include any alias or “doing business as” (DBA) on file with FHA. FHA-approved mortgagees must keep copies of all advertisements and promotional materials for a period of two years from the date that the materials are circulated or used to advertise.
Who can work with FHA and FHA originated loans
A lender or mortgagee shall not have any officer, partner, director, principal, manager, supervisor, loan processor, loan underwriter, or loan originator of the applicant mortgagee who is:

(1) currently suspended, debarred, under a limited denial of participation (LDP), or otherwise restricted under part 25 of title 24 of the Code of Federal Regulations, 2 Code of Federal Regulations, part 180 as implemented by part 2424, or any successor regulations to such parts, or under similar provisions of any other Federal agency;

(2) under indictment for, or has been convicted of, an offense that reflects adversely upon the applicant’s integrity, competence or fitness to meet the responsibilities of an approved mortgagee;

(3) subject to unresolved findings contained in a Department of Housing and Urban Development or other governmental audit, investigation, or review;

(4) engaged in business practices that do not conform to generally accepted practices of prudent mortgagees or that demonstrate irresponsibility;

(5) convicted of, or who has pled guilty or nolo contendre to, a felony related to participation in the real estate or mortgage loan industry—

(i) during the 7-year period preceding the date of the application for licensing and registration; or
(ii) at any time preceding such date of application, if such felony involved an act of fraud, dishonesty, or a breach of trust, or money laundering;

(6) in violation of provisions of the S.A.F.E. Mortgage Licensing Act of 2008 (12 U.S.C. 5101 et seq.) or any applicable provision of State law; or

(7) in violation of any other requirement as established by the Secretary.
Streamline Refinance Transactions
At the time of loan application, the borrower must have made at least 6 payments on the FHA-insured mortgage being refinanced.

At the time of loan application, the borrower must exhibit an acceptable payment history as described below.

1) For mortgages with less than a 12 months payment history, the borrower must have made all mortgage payments within the month due.

2) For mortgages with a 12 months payment history or greater, the borrower must have:

a) Experienced no more than one 30 day late payment in the preceding 12 months,

AND

b) Made all mortgage payments within the month due for the three months prior to the date of loan application.

The lender must determine that there is a net tangible benefit as a result of the streamline refinance transaction, with or without an appraisal. Net tangible benefit is defined as:
• reduction in the total mortgage payment (principal, interest, taxes and insurances, homeowners’ association fees, ground rents, special assessments and all subordinate liens),
• refinancing from an adjustable rate mortgage (ARM) to a fixed rate mortgage,
OR
• reducing the term of the mortgage
If a credit score is available, the lender must enter the credit score into FHA Connection. If more than one credit score is available, lenders must enter all available credit scores.

If subordinate financing is remaining in place, the maximum combined loan-to-value ratio is 125 percent.
• For streamline refinance transactions WITHOUT an appraisal, the CLTV is based on the original appraised value of the property.
• For streamline refinance transactions WITH an appraisal, the CLTV is based on the new appraised value.
Revised Streamline Refinance Transactions WITHOUT an Appraisal

The maximum insurable mortgage cannot exceed:
• The outstanding principal balance minus the applicable refund of the UFMIP,
PLUS
• The new UFMIP that will be charged on the refinance.
Revised Streamline Transaction WITH an Appraisal

The maximum insurable mortgage is the lower of:

1) Outstanding principal balance minus the applicable refund of UFMIP, plus closing costs, prepaid items to establish the escrow account and the new UFMIP that will be charge on the refinance;
OR
2) 97.75 percent of the appraised value of the property plus the new UFMIP that will be charged on the refinance.

Discount points may not be included in the new mortgage. If the borrower has agreed to pay discount points, the lender must verify the borrower has the assets to pay them along with any other financing costs that are not included in the new mortgage amount.
Further Changes Currently Being Considered:
Modify Mortgagee Approval and Participation in FHA Loan Origination

Lenders seeking approval to originate, underwrite, or service an FHA loan must meet the eligibility criteria for a supervised or non-supervised mortgagee. Mortgagees with this approval status must assume liability for all the loans they originate and/or underwrite. Loan Correspondents (mortgage brokers) will continue to be able to originate FHA-insured loans through their relationships with approved mortgagees; however they will no longer receive independent FHA approval for origination eligibility.
These policy changes will require the FHA approved mortgagee to assume responsibility and liability for the FHA insured loan underwritten and closed by the approved mortgagee. These changes align FHA with the GSEs and will potentially increase the number of loan correspondents (mortgage brokers) who are eligible to originate FHA-insured loans while providing for more effective oversight of loan correspondents through the FHA approved mortgagees.

Increase Net-Worth Requirements for Mortgagees

The FHA plans to propose to increase the net worth requirement for approved mortgagees to meet industry standards. The requirement is currently at $250,000 and has not been increased since 1993. HUD is proposing an initial increase of approximately $1,000,000 that would be in place within one year of the enactment of this rule. To maintain consistency with industry standards, HUD may propose that the net worth requirements be increased further in future years to a level comparable to those required by GSEs and other market institutions. These changes will help to ensure that FHA lenders are sufficiently capitalized to meet potential needs, thereby permitting HUD to mitigate losses and decrease risks to the FHA insurance fund.
THE MORE YOU KNOW, THE BETTER DECISIONS YOU WILL MAKE.

All my Best,
Article By
Rod Manrique
Senior Loan Officer
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