Why the Mortgage Industry

The mortgage industry is one where you literally have to learn from scratch... There is no easy remedy to learn this business. First you either have to spend several hundred dollars to learn from a textbook, or you have to get in and get your feet wet, while learning from your mistakes to get good. I suppose if you asked several of the best Brokers in the world, they would tell you that's how they learned! Lets be be honest thousands of people have a way to do it, but does it work? Just so you understand the mortgage industry is tough, the mortgage industry has one of the highest turnover rate. Plus the job is 100% commission, that means if you don't close a loan you don't get paid!

Now if you close 2 to 4 loans a month when you first get started that is good, although I have seen several people in the industry that don't close that many period. So why would they stay in the business? Hope, some people believe that they will close 1 or 2 this time. In reality they may close 1 but if you are only in the business to make 1 to 3 thousand dollars a month don't waste you time. If you want to make unlimited money(5 to 20,000) in this business then you have come to the right business.

I have closed over 150 loans in one year. Don't let me blow smoke, it was not easy to make make money at this job. To take things to a different level you may have to wait 1 month to get your first paycheck! Why you ask, because most mortgage company's pay every 2 weeks and if you loan has not closed by the deadline day you will have to wait 2 more weeks matters even more intense if you have 10 loans in you pipe line, maybe 3 or 4 will close.

I have been working with Caylx and it is all that you need to help you climb to your top. My search for help material with Caylx has not provided many Options. The Objective of the site will help you learn Caylx in a intermediate to senior level. The use of Camstudio will allow you to see the action to produce the desired results.
Also I have written a book with search techniques to help you build a database of leads to help you make more income. If you are interested in finding unlimited mortgage leads, let me know and my Loan Orginator guide for searching for Refi and Purchase Leads

How the Housing Law Affects Reverse Mortgages

The housing bill signed by President Bush on July 30 raises the amount seniors can borrow using federally backed reverse mortgages and lowers the cost of getting the cash. But aging experts say you should still be cautious before spending down your home equity.
Related News
3 Unusual Strategies for Claiming Social Security Benefits
How Much Longer Will Boomers Need to Work?
6 Ways for Older Workers to Impress Hiring Managers
Video: Money Considerations
Here's how the new law affects reverse mortgages and what you still need to be wary of.
Instant cash—with strings. A reverse mortgage is a loan against your home if you're generally age 62 and over that doesn't have to be paid back as long as you live in that house. Tapping home equity to finance your golden years is growing in popularity, with 107,367 reverse-mortgage loans made in fiscal year 2007, up from 6,600 loans in 2000, but they still account for only about 1 percent of older households, according to the AARP. After you pay a variety of fees on the loan, you can get a lump sum, monthly payments, a credit line, or a combination of these options based on the value of your house. If the home is sold, the loan must be repaid with the proceeds, and any equity that remains after that is distributed to the borrower.
Know the limits. Most reverse mortgages are home equity conversion mortgages, which are backed by the Federal Housing Administration, so you'll still get your money even if the lender goes under. (The other two types are private loans and single-purpose reverse mortgages offered by some state and local government agencies and nonprofit organizations.) FHA limits the amount you can borrow with a HECM, which ranges from $200,160 to $362,790, depending on the county you live in. The new housing law, which will take approximately 60 to 90 days to implement, creates a single national loan limit of $417,000 that can increase to as much as $625,500 in high-cost areas.
Avoid fees. High cost is the reason 63 percent of reverse-mortgage shoppers ultimately decided against applying for the loan, according to a December 2007 AARP survey. And 69 percent of actual borrowers agreed that costs were high. The origination fees lenders can charge are currently capped at 2 percent of your home's value or the county lending limit, whichever is lower. The housing bill recently reduced the maximum fee to 2 percent on the initial $200,000 of the home's value and 1 percent on the balance thereafter, with a cap of $6,000. But some lenders charge less, so it can pay to shop around and negotiate on the fees charged. Also, bargain on closing costs, service fees, mortgage insurance premiums, and interest rates.
Get counseling. In order to qualify for a HECM, you must discuss the loan with a loan counselor employed by a nonprofit or public agency approved by the U.S. Department of Housing and Urban Development. "You should take the counselor very seriously and be very forthcoming with the counselor so that the counselor can help you do a thorough job of making sure that a reverse mortgage is really the answer for you," says Peter Bell, president of the National Reverse Mortgage Lenders Association, an organization that represents the reverse-mortgage industry. Barbara Stucki, director of home equity initiatives for the National Council on Aging, recommends spending an hour or longer discussing the loan. The counseling is free or has a minimal cost. You can find a local housing counseling agency by calling (800) 569-4287. The Financial Industry Regulatory Authority recommends verifying the independence of counselors recommended by your lender by asking whether they receive any funding from the lender or the mortgage industry.
Be wary of sales pitches. Nine percent of reverse-mortgage borrowers said their lenders offered them specific financial products like annuities and long-term-care insurance, which may be unwise investments depending on the purpose of the loan, the AARP survey found in late 2007. The new housing bill prohibits requiring the purchase of annuities and other financial products. But it never hurts to be cautious of any financial product someone is trying to sell you. "I think seniors still need to be careful that they are not talked into a loan that they don't really need," cautions Stucki. But if cash is a necessity, seniors should crunch the numbers on a traditional second mortgage and downsizing to cheaper housing alongside a reverse mortgage to parse the best deal.

Tips for Getting the Best Mortgage Rate

As a home buyer, it only makes sense to try and obtain the lowest interest rate when applying for a mortgage. After all, that rate is a primary component of the mortgage payment, so it has a direct bearing on the amount of money you’ll pay each month.
But how do you get a low rate when applying for a home loan? This is the question many home buyers want to know. So in this article, I’ll explain three important concepts you should keep in mind when seeking the best rates from mortgage lenders.
Concept #1 - Your Credit Score Plays a Role
The first thing to realize is that the interest rate you are offered will be partly determined by your credit score and financial history. In other words, the best mortgage terms are usually reserved for those home buyers with the best credit scores.
What does this mean to you when buying a home and applying for a loan? It means that your credit score will often dictate the type of interest rates you are offered. So if you have a bad credit history, and your score illustrates this to the lender, then there’s little chance you’ll be getting the best interest rate. If this is the case, you should focus on improving your credit score before you go shopping for a mortgage online.
Concept #2 - The Mortgage Type Makes a Difference
The type of home loan you select also plays a role in determining the interest rate you receive. So it’s important for home buyers to understand this concept as well. For example, an adjustable rate mortgage (ARM) loan will generally come with a lower interest rate than a fixed-rate loan — but that is only for the first few years. Of course, the rate on an ARM loan will also adjust at some predetermined point in the future, and typically this adjustment means a higher interest rate! That’s another thing to keep in mind when mortgage shopping.
Concept #3 - You Must Compare Lenders on Key Factors
There is one last thing I want to touch on, and that is the need to shop around in order to get the most favorable rates from a lender. Shopping for a loan is just like shopping for anything else — you have to compare multiple lenders in order to find one that offers the best rates and terms on the loan.
Many buyers don’t realize that ten different lenders may offer you ten slightly different mortgages. The interest rate will vary, the terms will vary, the closings costs will vary … you get the idea. And these make a big difference in the amount of money you pay over the long haul. That is why it’s so important to compare lenders and to carefully review the information they present to you, ideally with a financial advisor of some kind (or at least someone who is mortgage-savvy).

Wachovia to close mortgage offices in 19 states

As part of its plans to scale back its mortgage business, Wachovia Corp. is closing mortgage offices in 19 states where it has few or no retail branches.
The move will cause the elimination of 125 jobs. The reductions are part of 6,350 previously announced full-time cuts, which include 4,400 mortgage jobs to be slashed over the next 12 months.
Wachovia spokesman Don Vecchiarello says the company wants to focus on building fuller customer relationships in states where it has a branch presence. He says it wasn’t efficient for the bank to spend resources on states where it has no branches.
Charlotte-based Wachovia (NYSE:WB) is in the midst of an initative to trim $1.5 billion in annual expenses by the end of next year.
The company will continue to offer limited mortgage-loan offerings in Kansas, Illinois and Mississippi through the small number of branches it has in those states. But in those states and 16 others, the bank will no longer have mortgage salespeople or offices.
Wachovia will continue to offer a full range of mortgage products through its telephone, Internet and direct-mail channels in each of the 19 states.

Fannie Mae raising its servicing fees

Fannie Mae is raising the fees it pays servicing companies to renegotiate loans, aiming to cut costs by averting more mortgage defaults, the largest U.S. home funding provider said on Monday.
The new incentive fees are for repayment or loss mitigation plans starting Monday, August 11. The fee change was announced on Fannie Mae's web site on Monday.
On Friday, Fannie Mae reported its fourth straight quarterly loss, citing rising credit losses on failing home loans for its worse-than-expected results.
"Incentive fees are only applicable to mortgage loans serviced under the special servicing option, in which Fannie Mae assumes the risk of loss from borrower default," the company said on its web site.
Fannie Mae said it will pay $700 for each successful modification completed on a conventional home loan, for example. The servicer also must stop charging the borrower $500 to cover administrative processing costs but can keep charging for out-of-pocket expenses for credit reports and other allowable documentation.
A spokeswoman was not immediately available on Monday to comment on the extent of the fee increases.
On July 31, Freddie Mac, the second largest U.S. home finance provider, boosted the incentives it pays mortgage servicers to help more borrowers renegotiate loans and curb rising delinquencies.

Another family evicted!

A COUPLE who lost their home of 13 years after failing to keep up mortgage payments, are living in a shed on an allotment because, they say, only substandard accommodation is on offer from their local council.
Their six children are farmed out to relatives.
“The allotment is cleaner than half the houses they have sent us to. It’s disgusting... six kids are all separated and it’s not fair on them.”
The council say, “Given that she has been classified as intentionally homeless, social housing is not a realistic option. The only other option is to try to secure accommodation for the family in the private rented sector.”
That’s what another council says about a family of four, with another baby on the way, who are living in a car after repossession. The father is a postman and their downfall began when their mortgage payments almost doubled.
Both councils ignore the fact that good private landlords won’t want people with a bad financial record so only dumps are left.
With more than 100 homes being repossessed each day, the highest level for 12 years, are they all going to be classed as authors of their own misfortune? And can children ever be said to have rendered themselves “intentionally homeless”?
A total of 18,900 homes were repossessed in the first half of 2008 – a 48% increase since the same time last year. The number of people who are falling behind with their mortgage payments is also increasing.
Shelter’s chief says: “We know that behind these figures are thousands of families facing sleepless nights worrying about how to make their next mortgage payment, and many thousands more will be waking up to the frightening reality of repossession.”
The Legal Services Commission has announced that emergency legal schemes are to be set up so anyone in danger of eviction can get free legal advice. I’m glad to hear it because, frankly, there aren’t enough sheds to go round.
A step too far for the ladies of the WI?OH deary, deary me. What have the WI been up to? When they announced their intention to look into prostitution and try to improve things I applauded them. I still applaud the intention, but their sortie into the media, the WI Guide to Brothels, gave me some uncomfortable viewing. Two members, lovely ladies, visited Amsterdam, Nevada and New Zealand to see for themselves.
Seeing them in fluffy dressing gowns, lined up on display with the Nevada Buddy Ranch’s available talent, was too much, as was their stint in an Amsterdam window brothel.
The trouble was that perfectly nice and honest women had fallen for the blandishments of a television reporter.
Fortunately, the decency of the WI shone through and at times the programme was genuinely informative. So, top marks for bravery, ladies, but nul points for being streetwise. Keep up the crusade, though. It’s worthwhile.
You’ve made your bed, now lie in itTracey Emin rose to artistic fame by exhibiting her bed, complete with stained sheets, used condoms, fag ash, empty bottles and dirty panties.
Now she complains, “There is no place for my love to go,” and bewails the fact she doesn’t have a husband and children.
Doesn’t the silly mare realise that no man in his right senses would want to sleep with a woman who had a bed like that.

Help is on the way for troubled homeowners

By RICHARD SIMON
Los Angeles Times
WASHINGTON Congress completed work Saturday on the government’s most sweeping response yet to the nation’s housing crisis, sending to President Bush a bill to help at least 400,000 homeowners avoid foreclosure.
The measure, regarded as the most significant housing legislation in decades, lets homeowners who cannot afford their payments refinance into more affordable government-backed loans rather than lose their homes.
The legislation also is intended to spur homebuying and prop up struggling mortgage giants Fannie Mae and Freddie Mac.
The Senate, in a rare weekend session, overwhelmingly approved the measure 72-13, a reflection of the election-year jitters on Capitol Hill over the troubled economy. Bush has said he will sign the bill, which the House approved last week 272-152.
“Today, Congress did more than send a bill to the president. We sent a message to American families that help is on the way,” said Sen. Christopher Dodd, a Connecticut Democrat and the Senate Banking Committee chairman. Dodd helped write the legislation.
“In addition to providing urgently needed relief to homeowners on the brink of losing their homes, this legislation will address our broader economic problems by helping to reform our housing sector and provide reassurances to our financial markets.”
Bush had withdrawn his veto threat last week over $3.9 billion in neighborhood grants. He contended that the money would benefit lenders who helped cause the mortgage meltdown, encouraging them to foreclose rather than work with borrowers.
“Because of the Democratic Congress’ delays and the need for action now, President Bush will sign this bill when he receives it, despite our concerns with some provisions, including nearly $4 billion to help lenders, not the homeowners this legislation is intended to serve,” said Tony Fratto, deputy White House press secretary.
Voting for the legislation were 43 Democrats, 27 Republicans and the Senate’s two independents. Republicans cast all the votes against.
Sens. Pat Roberts and Sam Brownback, both Kansas Republicans, voted for the bill, as did Sen. Claire McCaskill, a Missouri Democrat.
Sen. Kit Bond, a Missouri Republican who expressed objections to the measure, didn’t vote on it.
Presumptive presidential nominees Sen. John McCain of Arizona and Sen. Barack Obama of Illinois expressed support for the measure but missed the vote.
Democrats who control Congress are looking at other proposals aimed at turning around the economy, including an economic stimulus package that would provide $50 billion or more for bridge and road projects, and home-heating assistance.
The bill passed Saturday, the American Housing Rescue and Foreclosure Prevention Act, contains a key provision that would allow the Federal Housing Administration to guarantee as much as $300 billion in lower-cost mortgages — provided that lenders accept significant losses.
The bill would give the Treasury Department authority temporarily to increase its lending to Fannie Mae and Freddie Mac and buy their stock, a provision that Treasury Secretary Henry Paulson has called crucial to bolstering confidence in the companies and stabilizing housing finance markets.
The Congressional Budget Office recently estimated that there was a “probably better than 50 percent” chance that the federal bailout would not be needed. But if it is, it could cost taxpayers $25 billion, budget analysts said.
The measure includes about $15 billion in tax breaks, including a tax credit that is in effect an interest-free loan of as much as $7,500 for first-time homebuyers.