May 22nd, 2008 8:26 PM

Dear Friends,

As I've mentioned on several occasions, with hard work, patience and perserverance, all APPROVALS do come to pass! The powers that be are finally coming to the realization that arcane and prohibitive underwriting guidelines create more problems for everyone.

We were pleasantly surprised to hear that FNMA has streamlined their guidelines making it possible for buyers to come up with a down payment of only 3% of the purchase price. This change begins on June 1st. Due to the overwhelming efforts of real estate concerns, consumer advocates and lawmakers, a dose of reality was beneficial for this change to occur.


The real estate market is in a downward spiral. There are numerous neighborhoods in this country where property values have decreased dramatically, forcing homeowners to either walk away from their investment when mortgage balances are higher than what the house is worth. Other circumstances which create a nightmare scenario is when:

1. A Homeowner is unable to refinance a loan due to CREDIT problems.

2. When the property no longer has any EQUITY.

3. When the homeowner is requesting a STATED income loan.

4. If the homeowner is SELF-EMPLOYED and their taxes do not show enough income to qualify.

5. If the homeowner is RETIRED and does not qualify for either a STATED income or conventional financing due to income shortfalls.

6. Where FICO scores less than 620 creates the inability to refinance at a better rate.

7. Stricter guidelines for SELF-EMPLOYED borrowers where business licenses must be in effect for a 2 year period. If not, there's a denial even though the business may not require it.

8. Delays in PURCHASE transactions. We've noticed several where 'short sales' are involved.

These are just a few of the scenarios homeowners or potential buyers face in this topsy-turvy world of mortgages. The immediate future is considered to be bleak but there's always hope on the horizon.



We are currently processing a purchase transaction for a SFR located in Los Angeles. Unfortunately, due to the 'mortgage madness' taking effect in the industry as of late, we were able to secure an APPROVAL for this purchase but a sudden change in underwriting guidelines deemed the loan to be a risk to the lender, thereby creating doubt and a subsequent DENIAL was the end result. We were then able to resubmit this loan to another investor and this loan was APPROVED once again!

This situation is a daily occurrence that many mortgage brokers face. Unfortunately, there are persons involved in such transactions that have taken intransigent positions that harm everyone in the process. The listing agent in the purchase transaction just mentioned, has harassed everyone by initiating chronic calls or emails to either the mortgage broker, selling agents and even the buyer with demands of $300 a day per diem penalties due to such a delay. This agents' threats of cancelling escrow almost daily and employing a destructive, sour attitude in general, has created an atmosphere of anxiousness and hostility where none is needed. This is just one example of a real estate professional unable to comprehend the effects of the current marketplace.

Patience and civility are traits of character this person evidently lacks. This situation truly brings out the worst in some people. We hold no grudges. 


Our TEAMTICKET sale continues until May 31st for all new loan originations. See our previous TEAMBLOGS for more information.

Our office will be closed on Monday, May 26th for the Memorial Day Holiday. We thank those that have sacrificed their lives for our FREEDOM! Remember our troops in your prayers for the valiant efforts in promoting and fighting for the ideals we hold so dear. It's time to give them the respect and recognition they so truly deserve.

Thanks Again

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Posted by Jesse Dorado on May 22nd, 2008 8:26 PMPost a Comment

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