RMC Vanguard Mortgage Corporation Receives 2008 Pinnacle Award from the Better Business Bureau
RMC Vanguard received a “2008 Pinnacle Award” at the recent May 7, 2008 BBB Awards Luncheon held at the Intercontinental Hotel in Houston. The award was given based on RMC Vanguard’s “superior commitment to ethics, overall excellence, and quality in the workplace.”
The BBB Awards for Excellence were formed to honor ethical businesses that adhere to high standards of behavior in doing well by doing right, and serving their customers, employees, investors, and the communities in which they do business, with distinction. The winners have set an example for businesses of all sizes to follow, and their unique contributions have set the highest standard to maintain a fair and honest marketplace.
In addition to other high ratings such as Lending Trees’ Outstanding Long Form Purchase Partner in 2007, RMC Vanguard has been listed in the Houston Business Journal’s Houston Top 100 from 2002 to 2007.
“What sets us apart in the mortgage industry is the care and detail we put forth with each and every customer. Our number one priority is ensuring that every prospective home buyer receives the best rates and the best service possible,” Raun said.
Additional BBB “Pinnacle Winners” of 2008 include:
• 3-Men Movers
• 88 and a Half Shoes and Accessories
• Briggs and Veselka Co.
• Burnett Staffing Services
• Fred Haas Toyota World
• Frontier Custom Builders, Inc.
• Goodwill Industries of Houston
• Gulf Coast Window, Inc.
• Hallmark Air Conditioning and Heating
• I W Marks Jewelers
• John Moore Services, Inc.
• Kar Hospital
• Legal Eagle Contractors, Co.
• Marnoble Computer
• Painter Law Firm PLLC
• Parlette Realty, Inc.
• Richard’s Total Backyard Solutions
• Sales Training International
• Wired Electrical Services
• A&E The Graphic Complex
In addition to high ratings from Lending Tree and awards such as Outstanding Long Form Purchase Partner in 2007, RMC Vanguard was listed in the Houston Top 100 from 2002 to 2007. RMC Vanguard also is a winner of the Better Business Bureau’s 2007 Award of Excellence.
More Information on the New Conforming Limits
Thanks to Rob Chrisman for giving us this link:
Next step before we can quote any loans that fit into these new limits will be forthcoming from our investors once they decide how these will be underwritten and priced. With all that investors have on their plates with the mortgage crisis - this could be a while.
Here is a link to the conforming loan limit press release from the Office of Federal Housing Enterprise Oversight (OFHEO). According to the release, these limits will be in effect from July 1, 2007 (to allow for refinances) until December 31, 2008.
A database is available for all areas on the HUD Web site at https://entp.hud.gov/idapp/html/hicostlook.cfm.
Will (state your MSA) have a higher conforming loan limit?
Want to know which MSA’s will be “in the money” on the new limits? I went to the NAR site – they have a listing of median sales prices for single family homes at http://www.realtor.org/Research.nsf/Pages/MetroPrice. I pulled the excel spreadsheet and took the values for 4th quarter 2007. I took that value and multiplied by 1.25 and then sorted by the new value. Click here to down the resulting spreadsheet. There are actually more MSA’s then shown on the list. Now correlate this by county? Or maybe by congressman? Or largest PAC contributor? Who is “in the money”?
Increasing the conforming loan limit – Will it save you money?
We have kept a close watch on the Economic Reform Act (HR 5140) to be signed by President Bush today.
In addition to the tax rebate it provides to some Americans, the Bill contains a provision to temporarily increase the maximum loan amount the Government Sponsored Entities (GSE’s) FNMA (Fannie Mae) and FHLMC (Freddie Mac) may purchase.
For a loan to be eligible for it must:
1) Be originated between July 1, 2007, and December 31, 2008,
2) Be greater than 125 percent of the area median price for a residence, but not to exceed $729,750.
3) Property must be owner occupied,
4) Be fully amortizing. Interest Only and Option Arms are not eligible. Adjustable Rate Mortgages are being considered.
Will it save you money?
It depends largely upon the median home value for your area. Only about 20 metropolitan areas are affected.
The second factor is the appetite Wall Street will have for theses loans and to what extent they might increase rates to adjust for the larger loan amounts and perceived additional risk.
Given that in today’s market the spread between a “Conforming” and “Jumbo” loan is approximately 1% in rate, there may be significant benefit to those that can refinance their existing loan balances under this new limit. The benefit will especially help those in ARM’s, or other hybrid loan products such as Interest Only and Option ARMS.
When will these changes take effect?
We do not have an answer to this. HUD, the GSE’s, and the investors that purchase these loans must develop procedures for underwriting and delivering these loans.
What to do?
Stay tuned to this site. We will post the areas and new limits as soon as we know them. Also, since the demand to refinance for eligible properties is presumed to be extremely high given the significant difference between “Conforming” and “Jumbo” rates, it would be prudent to begin the process of refinancing your home started as soon as possible.
Form 1098
If you originated your loan in 2007 and your loan was sold (as all brokers and more correspondent lender do) you could get several form 1098’s from multiple companies. In other words, if you had multiple servicers in the year, you may get multiple forms.
A financial institution is not required to mail you a FORM 1098 unless the amount you paid them in interest is $600 or more., If you paid a mortgage servicer or lender less than $600 and did not receive a FORM 1098, use your mortgage statements and/or closing statements to back up your deduction amount.
Are origination fees, discount points and mortgage interest deductible?
Yes, but the way the Internal Revenue Service allow you to treat them depends on two factors. This treatment differs depending upon whether your transaction was purchase or refinance on your primary residence.
Pages four through six of IRS Publication 936 explains under which situations, and specifically what items, may be deducted.
Often, borrowers ask us to structure our closing costs and points. The name of the points (origination fee or discount) can be treated as prepaid interest as they are charges paid by you to receive a lower interest rate.
I am not a CPA so please consult one on delicate tax issues.
Rates for Jumbo Loans Coming Down?
Here is some good news for consumers with loan balances above the current conforming limit up to 625k. Congress talking seriously about raising that limit to 625K or 700k in some areas. So underwriting guidelines ease and pricing gets better. http://www.inman.com/hstory.aspx?ID=65896
Refinancing and Lead Volume – What have the past two days told us?
Tuesday, Jan 23rd, the day of the surprise Fed rate cut, set a record for the most leads received from a national online mortgage exchange at RMC Vanguard in a single day. Then on Wednesday, we set another record.
This tells us many interesting things as it relates to consumers, the pervasiveness of information, technology, the state of the mortgage industry, and online mortgage exchanges. It also substantiates the survey information we receive about what consumers might be waiting for as well as what we need to do to adequately handle this demand.
For consumers:
• Awareness of what mortgage rates might be doing at a particular moment is high.
• There are in fact a lot of people sitting on the fence waiting to either purchase or refinance if rates were lower (see our post “The Coming Housing Boom” )
• As the mortgage industry has shrunk, many consumers have lost touch with the loan officer and/or lender they previously used.
Pervasiveness of technology:
• The internet is a trusted source for mortgage information, it gives consumers the ability to shop anonymously and independently.
• Consumers expect instant information as well as full and honest communication.
State of the Mortgage Industry:
• There are fewer players in the Mortgage Industry than there were twelve months ago. According www.ml-implode.com 211 lenders have “imploded”
• The companies, and employees that are in the mortgage business today are more experienced and stable than was the norm twelve months ago.
• Many lenders have been caught off guard after slashing people and are unprepared to handle this level of demand. One previous customer of ours told us that they tried to contact the bank that bought their loan from us to see if they qualified for a lower rate and was on hold for thirty minutes before they hung up.
What we need to do as a result of this demand:
• One of our loan officers told me that given the sudden increase in volume she thought she was the only loan officer on earth. Many of our loan officers are working very long hours.
• We’ve seen a smaller number of highly motivated and qualified candidates that want to remain in the Mortgage business as Loan Originators.
• As a result of these two factors we need to take a look at technology resources and processes to ensure we can properly and adequately serve our customers needs as well as provide an exceptional customer service experience.
• We need to make available to the consumer tools and information that will better enable them to make an independent buying decision.
When talking to one of our Investor Account Executives on Wednesday I jokingly said “looks like we made it”. Our industry was overdue for a shake up and I sincerely hope that those left standing prosper from the high consumer demand and low lender supply.
Your thoughts?
What is Mortgage Insurance?
Mortgage Insurance is something you might be hearing more about. I thought I’d briefly explain what it is, what it is not, and how it can help you in today’s mortgage market.
What is Mortgage Insurance?Known as MI, or PMI, (private mortgage insurance) mortgage insurance allows more people to purchase or refinance a home since it offers protection to the lender should the borrower default on their loan.
What Mortgage Insurance is not?It is not hazard insurance, homeowners insurance or mortgage life insurance. It does not offer protection to either the borrower or the lender in case of death, theft, fire, or other disasters. Mortgage Insurance can not be purchased from Insurance Agents. It is obtained by the lender from companies that serve the mortgage industry during the time when the lender underwrites or approves your loan.
How can Mortgage Insurance help you?Fannie Mae (FNMA) and Freddie Mac (FHLMC) require mortgage insurance on first liens with a loan to value of 80.01% of greater. Another way of saying this is when the borrower puts less then 20% down. There are “tricks” you can do to avoid MI, such as financing your purchase with 2 liens or building the cost of the MI into the rate. These other options can be less available in the marketplace, more expensive and more difficult to qualify for. MI helps provides an option for borrowers to purchase or refinance a home with less then 20% down.
How much does Mortgage Insurance cost?Mortgage Insurance rates are calculated based on a complicated combination of credit scores, required lender coverage, loan to value, and type of program. There are many different types of programs available such as Single File, Lender paid MI, and Expanded Criteria. As a result of this complexity it is best to consult with a Mortgage Professional that is familiar with your financial situation to choose the correct product.
Can I cancel Mortgage Insurance?It is important to remember that Mortgage Insurance is temporary. By Law, MI must be cancelled when the mortgage balance reaches 78% of the original property value. You can also request that the lender drop the MI prior to that time. You must petition the lender to do this and often they will ask you to pay for a current market appraisal to prove the 20% or greater equity in the property. Also, you must not have had any mortgage late payments. In short, with lending guidelines tightening, Mortgage Insurance continues to be a necessary tool which allows consumers to purchase and refinance homes with less then 20% down.
Our thoughts on the Countrywide Bank of America Merger
There has been quite a bit written in the press over the past few days about Countrywide Financial Corp. People love to hate Countrywide, especially Wall Street.
We have sold closed loans to Countrywide for several years and we have one of our warehouse lines of credit (used to fund loans) with them. I thought it would be appropriate and relevant to communicate to our customers our thoughts on the recent merger.
We see the merger between Bank of America and Countrywide as positive for our industry, one that does not concern us (too much)as their customer. We also see it as good for our lending customers, as Bank of America may be able to offer additional services, technology, and financial products to a wider variety of consumers.
Our experience with Countrywide at all levels has been productive and positive.
It has been one of our better partnerships. We will continue to send loans we close to Countrywide and look forward to continuing to work with them after their takeover.
