Texas Home Loan Blog: October 2007

Announced around 2:00 Central Time today....

Bank of America is closing down their whole lending department.....Cutting 3000 jobs.... Plans to focus more on their retail division.

As I was communicating with one of their wholesale reps last night and this morning, I can assure you that they didn't see this coming!!! My rep had a big meeting this morning and was to get with me this afternoon. I got the news before she could....

BofA's Whosale Lending dept was pretty poor anyway. It took 3  times longer to get files thru their system than it did with other banks at times. Although, they did have some pretty cool products and pricing. Their retail division is a smoother operation from what I hear.

Look for a new set of feet on the street as these jobs cannot all be absorbed in other divisions.

What does this mean for Realtors? It means that your mortgage broker/banker just lost a few good tools(even though most of their rates and programs overlap with many banks). BofA still offers many loans through their Retail Branches. One good Retail Loan Officer in the Dallas, TX area is Ken Stampe.

Official Broker Communication <= This is the announcement to brokers. But there were other snippets of info on Bloomberg and others about the profitability of the Business Unit.

Tom Burris
DallasLoanGuy.com
Dallas, TX

"A Home Loan For Every Texan"

http://www.dallasloanguy.com/

Texas Home Loans

I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!! Subscribe to my blog and stay informed about current lending changes!!

Wow... what a week!!

I had the highly advertised Maverick Mortgage Open House last Thursday. Basically, free food and booze. LOL

I had the pleasure of seeing Baby Harris' Mommy again. Donna Harris is always fun to be around. She has a wonderful outgoing personality. But I had to resist patting her on the tummy. She looked so cute. And, yes, she is indeed ALL BABY.

Lorrie Semler was there. I had a nice visit with her and look forward to many more meetings. She is very down-to-earth as well as a very warm person. We were both dissapointed that she missed both Donna and Karen. <= Speaking of which, I really enjoyed my visit with Karen Otto (see attached pic). I think we will be able to work really well together in bringing more 'get together' events to North Texas. And hopefully meeting more ActiveRainers!!!

Maverick Residential Mortgage proudly opens a new retail branch office in Richardson, TX. We are a Texas Mortgage Banker who Originates, Underwrites, Closes and Funds loans in-house. Control over the all of the processes allow Maverick Mortgage to provide WOW Service to our clients.

Our new office is conveniently located off Jupiter and George Bush Tollway in North Richardson, TX. Stop by sometime!!

All of those who were busy having babies or cleaning out their sock drawers missed a good time!! ;-)

Tom Burris
DallasLoanGuy.com
Dallas, TX

"A Home Loan For Every Texan"

http://www.dallasloanguy.com/

Texas Home Loans

I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!! Subscribe to my blog and stay informed about current lending changes!!

Everone is welcome!! Please stop by for a drink or food between 4:00 - 7:00 on Thursday 10/19/2007

Maverick Residential Mortgage is having a Grand Opening / Open House for all Realtors, Title Company Representatives & other service providers(Stagers, Appraisers, ect)

Come by and have a beer with the DallasLoanGuy!!

Bring business cards... we are having a drawing!! And please, please feel free to bring a friend. Bring your whole office!!!

We are located on the S.W. corner of Jupiter & George Bush Tollway in North Richardson.

Across the parking lot from the new Silver Fox Steakhouse.

Maverick Residential Mortgage is a Mortgage Banker and a Mortgage Broker. We Originate, Close & Fund loans in-house.

We would love the opportunity to show off our new place and shake hands with a lot of AR friends.

Tom Burris
DallasLoanGuy.com
Dallas, TX

"A Home Loan For Every Texan"

http://www.dallasloanguy.com/

I recently wrote an article about HUD closing the loophole for the Down Payment Circumvention companies that operate under the guise as a 'charity'. HUD Ends Most Down Payment Assistance Programs.

These 'Faux Charities' helped many thousands of people get into a home when they didn't have the required down payment. Used mostly on the FHA loan programs, this circumvention of the down payment rules allowed many Americans to get into a loan program for which they did not qualify. And although I understand that this hurts those that CAN afford a house payment... but are short on cash.... let's face it: These people did not belong in the same loan pool as those people who COULD afford the down payment. And this is why I took my stance against the Faux Charities. Hey, I like to do loans to... but allowing undeserving people into the same loan pools as the deserving hurts all involved. And it is an undeniable fact that loans with DPA foreclose at an alarmingly higher rate than those loans with buyer money into the deal.

If you look towards the bottom of that post in the comment section you will see that a Spammer was promoting HIS Down Payment Circumvention' program with no regards to blogging etiquette. Purportedly 'legal'and RESPA compliant.... this program is on the Maverick Mortgage's "Prohibited Parties List". Yes, BOTH DPFunder and Buyers Account, LLC are BANNED from doing business with Maverick Mortgage.

Realtors take note: If it sounds too good to be true, it might just be.... er... or should I say that IT PROBABLY IS!!!

Although this spammer claims that his program is legal.... it may not be wise to rely on a spammer on the internet. Yet, rather, you should work closely with your Lending Partner to sort through all of the misinformation floating around the internet.

Tom Burris
DallasLoanGuy.com
Dallas, TX

"A Home Loan For Every Texan"

http://www.dallasloanguy.com/

Texas Home Loans

I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!! Subscribe to my blog and stay informed about current lending changes!!

SAVE THE DATE!!

Maverick Residential Mortgage has a new branch office in the N. Richardson, TX area.

Beer, wine, soft drinks & Hors d'Oeuvres will be served between 4:00 - 7:00

Bring a friend. Bring your whole office!! We are working on a reward for those who bring the most people.
At 6:00 there will be live music at the Tavern downstairs. So plan on staying a while.

We are expecting Realtors and Title Company representatives as well as some other service providors to the industry(appraisers, stagers, ect).... So bring some business cards and network with others, or just come by for a drink with the DallasLoanGuy.

We are located on the S.W. corner of George Bush and Jupiter. Straight across the parking lot from the Silver Fox Steakhouse. Right on the Plano/Richardon line. The street is new and not available online, so I have included a map below.

Maverick is not just our name, it is our belief. You are about to experience a completely different type of Mortgage Company. A company that expects to lead our industry - not follow. Most companies strive to have "satisfied customers."  At Maverick having our clients, employees and vendors only satisfied falls short of our belief - To Lead. Maverick understands to lead means to raise the bar. Our commitment is to have you saying about Maverick.. "WOW, our experience was incredible."

Tom Burris
DallasLoanGuy.com
Dallas, TX

"A Home Loan For Every Texan"

http://www.dallasloanguy.com/

Texas Home Loans

Down Payment Assistance Programs. You know, where the seller makes a donation to a 'charity'.... and that charity turns around and 'gifts' those monies to the buyer to satisfy the 3% Down Payment requirement on FHA loans. Well, effective October 31st, 2007(see exception below) these programs will be GONE!!

Monday October 1, 2007 HUD has ruled on what I considered the most ridiculous loophole affecting their programs.

The final rule establishes that a prohibited source of Down Payment Assistance(DPA) is a payment that consists, in whole or in part, of funds provided by any of the following parties before, during, or after closing of the property sale:

            1. The seller
            2. Any other person or entity that financially benefits from the transaction
            3. Any third party or entity that is reimbursed directly or indirectly by the seller

The above exclusions seem to describe exactly what is happening when these Faux Charities are allowed to circumvent the underwriting rules using the charity loophole.

While I have been mostly neutral about the DPA, I have learned to understand its impact:
FHA, for example, allows for 6% of the contracted sales price to be rebated back to the buyer in the form of closing cost assistance. This is usually facilitated by offering more for the home in price negotiations and accepting your discount in the seller rebate. The DPA programs effectively made that 6% turn into 9% overnight. Uh, can you say ‘Over Inflated Prices'?!?!

President Bush is pushing for 100% financing on the FHA loan. So, maybe this setback for borrowers will be short lived. At least we will have a little more truth in real estate prices in the future if this is passed by legislation.

Don't have the 3% Down Payment required? You can still get a gift from a family member or charity(a real charity) or even a State, County or Local Down Payment Assistance Program from the government.

You can read the Department of Housing and Urban Development's full ruling here=> HUD Ends Most Down Payment Assistance Programs

 Exception: It appears that Nehemia program is grandfathered in until March 31, 2008 as the result of an earlier lawsuit with HUD settled in April 1998.

Tom Burris
DallasLoanGuy.com
Dallas, TX

"A Home Loan For Every Texan"

http://www.dallasloanguy.com/

Texas Home Loans

I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!! Subscribe to my blog and stay informed about current lending changes!!