TEAMBLOG

Dear Friends,

We are sad to hear of the passing of KTLA newsman HAL FISHMAN.

Truly Los Angeles has lost a sincere and genuine patriot.

His straightforward delivery and common sense commentaries will truly be missed.

He was a man of character and integrity.

Television is a medium of communication which extends its influence throughout our lives. Due to this modern reality, since my arrival in Los Angeles in 1981, I considered Hal, like so many others, a steady friend and a constant voice of reason.

In a metropolis as large as Los Angeles where friends are difficilt to discover, you could count on Hal being there at 10PM.

We truly celebrate his life as a Los Angeles landmark worthy of recognition.

May God Bless Hal & His Family.

Dear Friends,

In our previous post we mentioned our desire to streamline the way our company will originate and process loan requests. Unfortunately, due to time constraints and the high volume of loan originations during the past week, we decided it would be best to make our plans known after the Labor Day holiday.

By Friday, September 7th, Moneyteam will unveil its new and invigorated attempts to provide our clients with competitive pricing and provide speed in underwriting decisions.

We are truly excited and are eager to begin anew!

Thanks Again

Dear Friends,

I attended the California Mortgage Brokers Convention last Saturday in Long Beach and there were many lenders and financial institutions represented. This was truly an opportunity to investigate the type of loan products being offered and to gear up for our plans to provide a streamline approach in mortgage financing. (Please see our post on Monday, August 27th)

I also had a wonderful time bumping into old friends and acquintances I've known over the years.

While in my previous posts I discussed the turmoil in the mortgage market and the changing guidelines due to these problems, I came away with a sober and cautious sense of optimism.

Numerous lives have been affected due to the mortgage debacle we are experiencing. From the homeowners losing their properties through numerous foreclosures across the country & to the mortgage industry where jobs and reputations have been lost and difficult to repair, this mess will hopefully be resolved in a manner that is fair, competent and has elements of 'common sense'.

Unfortunately, so far this year, over 125 mortgage bankers and financial insitutions have closed their doors. Many of the 'creative loan' products provided by these companies are no longer viable in the current mortgage marketplace. While the long term effects of the mortgage fallout are being created by the actions of the banking system today, the 'correction' we are experiencing was long overdue.

Due to this 'correction', my cautious optimisim revolves around a direction towards 'common sense' loan products and underwriting guidelines, which will enable borrowers to either Purchase or Refinance without stringent 'Draconian' measures. There has to be a moderate approach in the requirements investors seek in providing financing.

In the next few months we will know the direction this current situation will lead us to.

Thanks Again

Dear Friends,

The past several weeks has been a trying time for all of us.

The volatility of the markets has created havoc in many Purchase or Refinance Transactions.

Due to these circumstances, we are doing our best to secure additional sources of monies through our networks.

Please check our TEAMBLOG on Monday, August 27th for additional details in our attempts to 'streamline' the loan products MONEYTEAM will be offering.

To that end, we are content to say,

"We Know Where The Money Is".

Thanks Again

Dear Friends,

The past few weeks has created a multitude of problems for everyone concerned in the mortgage business.

Whether you are seeking to Purchase or Refinance a home, numerous lending guidelines have changed dramatically due to the continued collapse of "Sub-Prime" mortgages.

Truthfully, many in the industry looked the other way in regards to qualifying clients in mortgages where 'negative amortization' and 'interest only' were terms and programs misunderstood by many.

Moreover, the zeal to help first time homebuyers in their quest for 100% financing options - where NO assets nor verifiable income was required to purchase a home -

these actions have created ultimate consequences in record FORECLOSURES and the depression of property values throughout the country.

Many lenders and investors are NO LONGER willing or capable of providing financing for borrowers seeking the loans which created the problems we are currently facing today.

Due to these circumstances, the turmoil and the tightening of credit by financial institutions has begun in earnest.

The following loan programs are being re-worked with stricter requirements or eliminated entirely:

1. Second Trust Deeds & HELOC'S or Home Equity Lines Of Credit are no longer offered by many companies and/or major restrictions to guidelines has affected the viability of this product

2. "Stated Income" or "No Income - No Asset" loans where Tax Returns or Proof of Income is not provided. It has been reported many lenders will NO longer provide this type of financing

3. Non-Conforming products - where loan amounts are over $417,000

4. Investment loans - Non Owner Occupied Financing

5. 100% Financing - Stricter guidelines and higher middle FICO scores are now required if offered

6. Lower Loan To Value Ratios

7. Lower Debt Ratios

8. Additional Cash Reserves where a potential buyer must have at least 3 to 4 months mortgage payments and/or stated gross income in savings for at least a 60 day period

9. Additional appraisal may be required for loan amounts over $1,000,000 due to lower values

10. Option Arm financing has been curtailed or eliminated entirely by some institutions

11. "Jumbo Loans" or financing over $417,000 are now being priced HIGHER in RATE & in FEES. Some lenders are no longer providing them

These are just a 'few' of the Draconian measures instituted to help solve the consequences created by the Sub-Prime mortgage fallout.

Unfortunately, the eagerness to enact these measures as 'solutions' in some respects, may cause more harm than good.

The mortgage industry must take a BALANCED approach in order to rectify this problem.

To this end, our company,

MONEYTEAM

will do its part in continuing to EDUCATE our clients by providing the GUIDANCE required to make an INTELLIGENT decision in securing a MORTGAGE tailored to the SPECIFIC needs required & requested.

MONEYTEAM has been through these upheavals in the financial markets before. In a few months many of the loan products that are no longer viable will be resurrected again in a different form.

MONEYTEAM will be updating our RATES and LOAN PROGRAMS to conform to the current mortgage marketplace.

Please check our TEAMBLOG on MONDAY, AUGUST 27TH for additional plans we are instituting to streamline the selection process of the loan programs we are offering.

Thanks Again

"Team Players In Real Estate Financing Since 1989."

Dear Friends,

This past week has created a tremendous amount of activity in the financial markets.

The continued devastation of the mortgage industry due to the sub-prime fallout, has compelled the Federal Reserve to become involved by lowering rates and depositing billions of dollars in the marketplace to help liquidity and to end the 'credit crunch'.

While these actions were generally seen as beneficial by financial concerns, the future of the mortgage industry in particular has added a sense of anxiety to many bankers and financial companies.

HomeOwners who possess Option Arm & Interest Only type loans will see their mortgage reset to a higher monthly payment.

In theory, many of these homeowners will be unable to pay their higher mortgage payment when this occurs.

In turn, they will be unable to refinance their homes due to the inability to secure credit, where many underwriting guidelines have changed to the detriment of the borrower.

As mentioned in our previous TEAMBLOG, many lenders are no longer providing financing for Stated Income borrowers with lower middle Fico scores and higher LTV or Loan To Values. Many loans over 80% of the appraised value are difficult to obtain if one does not meet these higher requirements. Another variable to this circumstance revolves around the fact that many homebuyers purchased these properties with no money down. 100% financing was easily available just a few months ago. 

Moreover, the depressed home values caused in large part by the current influx of additional foreclosures has exacerbated the problem as equity in the property no longer exists. This circumstance has created a situation where refinancing one's home could be construed as an exercise in futility.

We are currently witnessing a dramatic change and a shift in the way one goes about in securing a mortgage loan. This 'correction' in the mortgage business has just begun.

In our next TEAMBLOG, slated for Tuesday, August 21st, I will have additional thoughts and explore plans MONEYTEAM will employ to help those facing these challenges.

Thanks Again