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Dear Friends,

You might have viewed the latest video on YouTube showcasing the newest and most inspirational talent Great Britain is now privileged to know and the entire world has come to appreciate.

In just a few days, Susan Boyle, a 47 year old resident of a small town in Scotland, has become a sensation for her rendition of 'I Dreamed A Dream' from Les Miserables on the television show Britain's Got Talent. Witnessing her thrilling performance, Susan has provided a lift of fulfilment during a period of melancholy and strife for many of us. Her humble appearance belies a voice worthy of divine inspiration. We have been moved to tears and in so doing, the dreams and desires closest to our hearts will one day come to pass. Susan, our Angel, is truly Heaven sent! 

In 2007, a similar occurrence on the same television show gave the entire world a performance of unheralded substance. A humble salesman from Wales brought down the house! Paul Potts in his extraordinary performance of Turandot's 'Nessun Dorma' to this day, enriches us with a voice which is truly spirit filled.  

Every so often we are given reminders of characters in life achieving dreams in a world beset by tremendous obstacles and shortcomings. The satisfaction we have in sharing their success gives us hope for a better day.

Please check the performance for Susan Boyle on YouTube - http://www.youtube.com/watch?v=d-KiGva9dV4&NR=1

Please check Paul Potts Unofficial website - www.paulpottsopera.org  

Thanks Again

Dear Friends,

Beginning on Friday, May 1st, there will be a dramatic change and the ultimate loss of control by the mortgage broker in regards to appraisals on any refinance or purchase transaction. The mortgage broker, due to the implementation of the Home Valuation Code Of Conduct or the HVCC, will not be allowed to order an appraisal nor communicate with an appraiser on any transaction. This new procedure has several consequences which will hurt appraisers, mortgage brokers, realtors and ultimately the borrower.

The bias towards banks in their capacity to control the procedure in choosing an appraiser, is seen as a hindrance and a loss of independent valuations of real estate. The measures to assure 'integrity' in valuations are short sighted and will create new challenges for the mortgage industry. The bank will be given the power and the control to decide the following:

1. To hire a specific appraiser

2. The appraiser hired can be an 'in-house' appraiser

3. The appraiser hired can come from an Appraisal Management Company or AMC. This is the newest setup in which former independent fee appraisers are now required to enroll in an AMC. This requirement will reduce appraisal income substantially. It has been reported that up to 40% of the appraisal fee paid by the borrower will end up with the AMC. The remaining monies will be allocated to the appraiser. This action alone will in time, devastate the income of current fee appraisers. The future looks bleak for many independent appraisers as profit margins are depleted resulting in business bankruptcy.  

4. The cost of the appraisal. The costs for the appraisal will increase as you now have a middleman, as the Appraisal Management Company will be seeking their compensation for every appraisal ordered to insure compliance of the newest regulations.

If there is a loan denial with one lender, there might be a possibility the appraisal in question might not be used by another financial institution. If this happens, the borrower has to pay for another appraisal creating additional costs.

5. The time frame in which the appraisal is ordered. This can cause a major problem. If a real estate purchase must close in 30 days, the bank or the financial institution has the sole responsibility insuring the appraisal is completed in a timely manner in order to close escrow. Due to the tremendous influx of transactions flooding lenders, with underwriting times hovering over 10 business days for some, the likelihood of an appraisal order or a purchase completed on time is circumspect. 

Another element to the time frame includes the confusion brought about by appraisal delays for rates that are locked for a 21, 30 or 60 day period. If the appraisal is not forthcoming, there's a good chance a borrower will forfeit an interest rate promised during the very beginning of the transaction. This can be costly and frustrating to say the least. If your loan was locked at a 4.250% rate, only to see the rate go up to 4.875% due to an appraisal mixup or delay, the loss of time, money and goodwill are the unfortunate results.

6. The appraised value. The bank or the financial institution in its power to control the appraisal process from start to finish, now has the capability to suggest the ultimate value to be rendered by the appraiser on the subject property. In my 27 years in the mortgage industry, I've come across situations where a bank has lowered the value of an independent fee appraisal intentionally in order to deny a loan. Moreover, you will find 'in-house' appraisers tend to be more conservative in their valuations of real estate which can cause additional loan denials if the Loan To Value or the LTV is over the guidelines for that particular loan. In this example, the borrower has just lost the appraisal fee. If the borrower seeks to pursue the same loan with another institution, an additional appraisal fee will be required. This can be a costly and cumbersome process for anyone seeking a mortgage loan. 

7. Purchase Price. Let's say you're buying a house for $350,000. The mortgage broker with the assistance of the independent fee appraiser can logically ascertain the value of the properties in the neighborhood by checking the comparables of sold or active listings during the past 6 months. With this information, one can safely say the buyer can proceed with the transaction. After May 1st, the mortgage broker is not allowed to communicate directly with any entity employed to appraise the property in question. The broker as well as the realtor are in limbo until such a time the appraisal comes in at the agreed upon purchase price. It's all up to the bank in deciding if and when the appraised value meets the purchase price.

8. The demise of the mortgage broker? I hope not! While the HVCC has Draconian measures in its exclusion of the mortgage broker in ordering appraisals, there will be concerted efforts by many in the industry to relax these initiatives. Once we come to realize the confusion and the delays these new guidelines will impose on all types of transactions, there will be modifications.

The mortgage broker has become the scapegoat for the sub-prime mess and to some, the numerous financial abuses which we are now engulfed. I dare say there are always bad apples in any industry. There have been mortgage brokers guilty of taking advantage of clients by charging exorbitant fees and promising nonexistent rates or programs to the unsuspecting or unsophisticated in financial transactions. Nonetheless, the greed, incompetence and the corruption in government and the corporate offices of Wall Street are the true originators of a business and moral philosophy bereft of honesty or integrity. The economic hardships and the continued suffering of Americans during the past several years, is due to the abuses of powerful interests, hellbent on securing the awards of control and power at all costs.

HVCC

The Home Valuation Code Of Conduct came into effect from a lawsuit filed by the New York Attorney General. The HVCC was devised due to First America and its subsidiary EAppraiseIt, in conspiring with Washington Mutual to inflate real estate values. It is ironic to know that a major financial institution and the fraudulent actions of their cohorts, is the basis in which undue harm and the dismantling of the mortgage broker industry is a looming probability. The unfair assertion that mortgage brokers are to be penalized for the actions of a major bank involved in fraud is totally without merit. MoneyTeam has been around for almost 20 years. Hopefully we'll be around for a few more. We're hoping for the best!

Please check the answers to questions in regards to the implementation of the HVCC by Fannie Mae: http://www.oasissolutionsllc.com/hvccfaqs.pdf

Thanks Again

Dear Friends,

Just like a tuneup on your car, more than likely you might need a tuneup on your mortgage. Interest rates have hit their nadir, with rates as low as 4.25% on a 15 year conforming fixed rate.

Crunch The Numbers 

The best way to gauge these details is to compare your current situation with the thought of refinancing to a lower fixed rate. Let's say you have a $300,000 loan at a rate of 6.50%. The rule of thumb is to lower your rate to at least 1 percentage point to 5.50%. The savings for a 30 year fixed would save $190 per month but with a lower rate of 4.75%, you would save approximately $327 per month. Yearly, that would add up to $3924 in savings! Also, you would need to take into account the points and fees charged by the lender in order to know when you will recoup your monies. A point is equal to 1% of the loan amount. As of today, MoneyTeam is offering a 30 year fixed conforming rate of 4.750% at 1 point charge. In our example, this would add up to $3000 + closing costs of approximately $1750 for a total of $4750. If you saved $3924 in 1 year, all together it would take no more than 17 months for you to begin enjoying the savings of your refinance. You'll break even on your 17th month and begin the mathematical savings for the life of the loan.

You also need to decide if you will be living in your home for a period of 1 to 5 years or longer. You might decide to keep your current home, lease it out & purchase another or sell your home outright. If you decide to leave in a year or two, a refinance might not be the best option depending on your circumstances. MoneyTeam offers NO POINT/NO FEE loans, when a refinance to a lower rate during a shortened period of ownership might be beneficial. 

You will also save money every year as a percentage of the points and fees can be deducted for up to a 30 year period. Always consult your tax prepaper for more information in regards to this deduction.

MoneyTeam Blog Sale

As in one of our previous blog promotions, if you've read this far you are now able to save a bundle if you decide to refinance with MoneyTeam! If you are contemplating on refinancing your home loan, MoneyTeam will REBATE the cost of your APPRAISAL up to $350 and will not charge you a PROCESSING fee of $350 for a total savings of $700 for loan amounts exceeding $175,000. This offer is good until Thursday, April 30th. We have received a splendid response from our readers and hope you'll take advantage of this offer too. Our goal is to provide you with a pleasant financial experience. We hope to hear from you soon. Our direct phone number is 323-936-3232.

A Star Is Born!

In our previous blog we highlighted the amazing performance of Susan Boyle on a British talent show. It has been estimated that over 20 million viewers have seen Susan on YouTube singing verses of a dream yet to be fulfilled from 'Le Miserables'. Ironically, the day she sang her first few words on stage, workings of unfulfilled dreams destined for fruition was preordained. Susan's story is truly remarkable and it's just wonderful to view her performance again and again! 

You can view Susan Boyle's performance of a lifetime by clicking http://www.youtube.com/watch?=d-KiGva9dV4&NR=1

Tea Party Controversy

I attended the Tea Party which was held at the Santa Monica Pier last Wednesday, the 15th. As you know the Tea Parties across the country were cohesive and peaceful demonstrations to show support for those burdened by the onslaught of taxes from every angle, imposed by local, state and federal governments. The turnout in Santa Monica was respectable and I was delighted there were concerned citizens eager to voice their outrage for the abuses of those in power devoted to the usurpation of American sovereignty and liberty. The tremendous debt this country will incur and the voluminous bail outs of Wall Street and the banking industry are bound to have a lasting impact on future generations of Americans. Trillion dollar deficits, the devastation of basic freedoms due to the albatross of monies owed to other countries, the control bestowed and in time manifested by foreign regimes as a reward for such collaboration and the newest overreaching intervention of government in our daily lives, is the concern of many.

These are perilous times when powerful interests are focused on efforts to belittle and embarrass those gathered in attendance at the Tea Parties across the country. The spirit of healthy and thought provoking dissent is the cornerstone of a democracy. There will come a time when the pedulum will swing back to a balance we've known and have been accustomed to. That day God willing, might come sooner than most of us realize.

Most Americans are willing to pay their fair share of taxes. When reckless maneuvers by Congress or recommendations by White House officials in spending trillions of taxpayer monies for questionable 'pork barrel' programs; when bailouts of bank and Wall Street concerns are encouraged by both political parties to the detriment of its citizens, this is when the hibernation of the 'Silent Majority' begins to wake up from its dormant sleep and finally takes notice.

Thanks Again

Dear Friends,

I've been to just 1 Tea Party my entire life! It's been over 10 years since my neighbor invited me to a Tea Party at a local restaurant in Los Angeles. There were cucumber sandwiches and dainty little cakes with all the Tea you could drink! It was fun! I enjoyed myself so much, several months later I was contemplating on opening a Tea House! Well, that idea never got off the ground but I've been an avid Tea drinker since I can remember. My favorites run the gamut from Earl Grey to Mint to Green Teas. I enjoy Tea more than I do coffee, if I say so myself!

On a more serious level, while the main focus on Tea Parties revolves around attempts to harm Americans by the harsh imposition of taxes from local, state and federal governments, we are aware this legislative encroachment is a detriment and a burden for small business and families struggling to make ends meet. There are too many politicians that enjoy playing games with monies earned through the hardwork and toil of taxpayers. It has become commonplace or even pathological for politicians to spend other people's money without a thought to the consequences of such actions. While we may never rid ourselves totally of inept, incompetent or corrupt politicians during our lifetimes, it's always good to try! That's why the Tea Party Tax Revolts throughout America is needed, as these demonstrations will help government officials think twice before implementing additional tax increases. Politicians need to win elections in order to keep power. Our votes have the power to throw them all out on their blessed assurances come 2010!

English Tea has made a lasting impression on historians, specifically with the Boston Tea Party on December 16th, 1773. The colonial settlers were disturbed and agitated by the chronic imposition of taxes by King George. The chant of "Taxation Without Representation" began the chorus which eventually led to America's Independence just several years later. We will know soon enough if participation in a just, magnanimous demonstration of dissent by millions of Americans, will be heard and acted upon by government. If not today or tomorrow but by mid term elections in 2010 the voices of the downtrodden and abused will be heard! 

I will be attending the Tea Party in Santa Monica on Wednesday. Please check the tea party website for gatherings throughout California. The email address is www.taxdayteaparty.com/teaparty/california/. The time has come to end tax abuse. We encourage your participation.

There is a special election on Tuesday, May 19th. The ballot measures 1A through 1F are worded in such a manner as a vote for these measures will end the skirmishes state government encounters every year in balancing the budget. This budget 'reform' is recommended by the Governor and many members of the California legislature.

As always and not surprisingly, the California taxpayer needs to review these ballot measures and VOTE NO on all of them, as the hidden verbiage extends tax increases for an additional 2 years!  No doubt, while the state of California will be bombarded with billboards and advertising promulgating the virtues of 'budget reform' these measures will purport to offer, you must do your 'due diligence' in exposing the true provisions of these ballot initiatives. We recommend you check the Howard Jarvis Taxpayer website www.hjta.org for more details on these propositions. 

Many of us have had enough! We rid California of an incompetent Governor in 2003 only to be burdened with a sideshow not worthy of a Best Actor nomination! Leaving sarcasm and cynicism aside, when any government official is unable to tell the truth, the loss of integrity, respect and reputation is the unfortunate consequence.  Sadly, in less than 6 years, this feeling of "deja vu' all over again" is a foregone conclusion in the State of California.

Thanks Again

Dear Friends,

On our last TeamBlog I mentioned this might be the best time to purchase a home as many properties are now affordable. Now is also a great time to refinance as rates are lower than ever!

In reviewing mortgage rates on a 30 year fixed loan, MoneyTeam is offering a rate as low as 4.375%. On a 15 year loan, rates are as low as 4.250%. While there are points to be paid, this might make financial sense if your current rate is at least 1% or higher. You can recoup the cost of the points in 1 or up to 5 years depending on the current balance of your loan, the rate offered and your plans on staying in the property for the long haul. If you are contemplating on selling your home in a few years, you might decide it would be best to pay a higher rate with no points. A point is 1% of the loan amount. For a loan of $300,000, that would amount to $3000.

There are also tax savings, as you are able to deduct the points and fees you paid in a refinance or a purchase. It is my understanding you are able to deduct these fees over a 15 or 30 year period. If you sell your home, you can take the full deduction and there's no need to wait until the end of your mortgage to do so. Please consult your accountant or tax attorney for more details.

In regards to where mortgage rates are headed, we need to look at the variables which can play havoc in determining the general direction.

During the past several days, there has been a modicum of cautiously encouraging financial news. Wells Fargo Bank mentioned a surprisingly upbeat profit forecast of over $3 Billion for the 1st Quarter of this year. Any good economic news or the perception of its arrival, will always trigger a response by bond holders. The gyrations of the bond market, specifically the 10 Year Treasury Bill, generates the yields which in turn decides the fortunes of mortgage rates. The Wells Fargo announcement, while encouraging, raised mortgage interest rates by an eighth of a percent on 30 and 15 year fixed rate loans early Thursday morning. Later in the afternoon, rates went down by an eighth. It just goes to show you how predicting the movement of interest rates can be construed as a game of chance. However, it's a smart thing to view the DAILY RATE LOCK ADVISORY on our website for more information and guidance. 

Inflation figures, unemployment rates, foreign crisis, oil prices, reactions of global markets and speeches delivered by US government officials are just a few of the numerous variables in forecasting. Due to the daily volatility of the US economy, mortgage rates as a whole will continue to fluctuate.

Blog Fee Sale

If you are reading this Blog you just saved  $715! We are eager to cut your costs on your home loan!

If you decide to purchase or refinance a property for a loan amount over $175,000, MoneyTeam will rebate the cost of your appraisal up to $350. We will not charge you a processing fee of $350 nor will we charge you our credit report fee of $15. You can save all this money by just mentioning that you've read our TeamBlog! This offer is good until the 30th of April. Take us up on our offer, you'll be glad you did! 

Additional Loan Programs To Begin Wednesday, April 15th

MoneyTeam is now offering STATED INCOME loans. If you have credit scores over 680 we can help you. If you're a wage earner or a self employed  borrower and have good cash reserves, we are now able to offer this loan product. Please check our website for more details and guidelines.

MoneyTeam is now offering SUPER JUMBO financing up to $10 Million. Mortgage rates for these high end loans are now much more affordable. Please check our website for more details and guidelines on our newest product. 

In the days and weeks to come, MoneyTeam will be offering additional loan products we believe can fill a void. Please check our website periodically for additional information.

Tea Party

Please check our next Blog in regards to the "Tea Parties" being held on Wednesday, April 15th throughout the country. We encourage all concerned citizens seeking relief from the avalanche of taxes from all directions, to participate in defiance of the idiot lawmakers from Washington to your local mayors office, eager to 'solve' all economic problems by placing unprecedented tax burdens on YOU!

"Taxation Without Representation" is the cry of concerned Americans exhausted and frustrated with incompetent and inept officials from city, state and federal governments. These bureaucrats are hellbent on destroying our personal sovereignty by taxing its citizens to pay for blunders they've created and pursuing deceptive measures in placating the general public.

Here in California, the newest script and the cast of characters are in place to be nominated for 'best actor' and 'best supporting actors' to win an Academy Award for buffoonery in their attempts to extol the virtues of deception on the electorate by offering ballot measures designed to alleviate the additional pain of tax increases.

Our acting Governor with the 'supporting' cast of legislators in Sacramento are pushing for the passage of convoluted ballot measures purporting to end the budget short falls of previous years. In reading the fine print, we are now have been made aware, these measures are to prolong the desire of the State to continue collecting taxes for another 2 years for a grand total of an additional $16 Billion.

On our next Blog, I will discuss the harm and the abuse of power which has created a meltdown of confidence, a +10% unemployment rate and the flight of Californians to other states and municipalities for economic survival.

Passover & Easter

We wish you, your family and friends a wonderfully blessed Passover & a Happy Easter!

Thanks Again

Dear Friends,

In noticing several market indicators during the past several weeks, this might be the most opportune time to purchase a home. Interest rates are at an all time low and property values have gone down precipitously providing affordability for many buyers. We've noticed a slight improvement in lenders willingness to provide financing for these purchases. All told, the climate is starting to change towards the benefit of the buyer in purchase transactions.

However, there are circumstances where one contemplating in purchasing a new home, must proceed with caution.

Preparation

One must be able to have all of their 'ducks in a row'. One must be prepared for the newest twists in underwriting guidelines which are at times can be considered Draconian in some measure and costly in others. In order to prepare for the purchase of your newest home, you must have these documents ready to be submitted to your lender or mortgage broker in order to move forward.

1. 2008 & 2007 1040's

2. 2008 & 2007 W2's

3. Your last 2 PayCheck stubs denoting Year To Date Income

4. Last 2 Months Bank Statements showing the monies for the down payment, closing costs and at least 2 months mortgage payments in reserves.

5. Middle Fico scores of 680 or more are preferred. However, if you have scores less than 680, there will be a premium to be paid in additional points and/or fees. Many lenders will reject a loan application with a middle FICO score less than 620. 

6. Get Pre-Approved or Pre-Qualified. MoneyTeam, any other lender or mortgage broker can provide a letter stating the maximum loan amount you will qualify for. There are sellers now requesting a bonafide Pre-Approval before accepting an offer. It's better to be Pre-Approved as the purchase process is streamlined by curtailing the time element and provides your Realtor and the Seller of the property confidence of your viability as a Buyer. Moreover, if you have credit problems of a specific nature, this information will help determine your ability to purchase the property and the costs involved. 

7. If you are Self-Employed and deduct all of your expenses, you might have difficulty in obtaining financing unless your Adjusted Gross Income can debt service your new mortgage. Many self-employed individuals face these challenges when applying for a loan. At one time Stated Income loans was the financing of choice. Unfortunately, 'Stated' loans are no longer offered and if available are costly and not worth the trouble.

8. Employment. Ideally, you should be employed at your job for at least a 2 year period. If you changed jobs during the past 2 years, your employment should be similar or in the same profession. If you were a Teacher then decided to change occupations to become a Marketing Rep, this would pose a problem. As well, if you decided to take 6 months off from your job or if you were laid off for a certain amount of time, this might hinder your qualification to purchase a home. There are requirements which mention you must work continuously for a 2 year period.

9. If you are a First Time Home Buyer, this is a great time to purchase a home. There are incentives which allow you to have an $8000 tax credit from the US Government for home purchases in 2009. This credit can be used when you file your 2009 1040's next year. With this credit, you can pay down any federal taxes owed and if this is not the case, you can receive the entire amount. There are stipulations however. You must live on the property for at least a 3 year period and have income not to exceed $150,000 for a married couple. Please check our next TeamBlog for more details on the $8K Tax Credit.

10. There are delays in underwriting loan packages. Our goal is to provide clients a loan Approval within 72 hours of submission but there is an 'avalanche' of loan activity many lenders are now experiencing. Lower rates brings additional refinances. Lower property values brings an upsurge in purchases. Foreclosure avoidance brings about additional loan modifications. Be prepared for delays of up to 6 business days for an underwriting decision on a purchase or refinance loan request.

11. Trust. In this age where integrity and honesty is in short supply, you need to feel comfortable in opening up to the persons you've hired to help you in your desires to pursue the purchase of your 'dream' home. There might be bumps ahead to closing but always know whoever you choose as a lender, mortgage broker or Realtor, they are there to help you. Ask around, seek recommendations from close friends and associates for those persons you would like to be on your Team in one of the most important decisions you will ever make in your life. A pleasant on time closing of your escrow is always a memorable event to behold!   

If you need a Realtor to work on your behalf, please call our office. We can recommend agents eager to help you buy the house of your dreams!

Thanks Again