Partnering With An FDIC Bank by Gus Dahleh(1)
Why is partnering with an FDIC Bank a wise decision?
First of all, Partnering with an FDIC bank will essentially allow access to funds with very low interest rates. The banks can borrow money from each other at the interest rate at which FDIC Banks lend money to each other. FDIC banks are not subject to state mortgage lender laws. FDIC banks are characteristically overseen by the Office of the Comptroller of the Currency, which is an agency within the U.S. Treasury Department, pursuant to the National Bank Act.
FDIC banks can service their own products. Mortgage banks, in most cases, are contractually barred by covenants in their warehouse line agreements from servicing loans closed with warehouse funds. Also, the interest rate on funds borrowed from the warehouse facility is high enough that they quickly make a loan unprofitable.
Partnering with an FDIC Bank to manage turbulence
Because mortgage banks are mostly in the business of originating residential home loans (purchase and refinance loans), the residential housing crash, with the resulting economic problems, has caused many issues for businesses that are completely tied in with the market. In response to our economic issues, mortgage banks have gone out of business or sought to affiliate or partner with FDIC banks because they are better able to manage changes in the home loan market for the following reasons.
While the level of inspection aimed by the OCC is noticeably more intense, FDIC banks that partner with clients are usually relieved from state-imposed mortgage-loan originator licensing requirements. This permits FDIC banks to hire loan originators who might not otherwise be able to obtain state licensing because of bankruptcy filings or other non-financially related criminal histories.
For the past year, the Fed Fund Rate has been 0.25 percent (one-quarter of 1 percent). FDIC banks borrow money directly from a Federal Reserve Bank (at the Federal Discount Rate). For the past year, the Federal Discount Rate has been 0.75 percent (three-quarters of 1 percent).
Pit falls of partnering with an FDIC Bank
Joining forces with an FDIC bank doesn’t come without problems/limitations. For example, careful thought should be given to the transition in order to compartmentalize liabilities in each respective entity and to avoid successor liability concerns.
Mortgage bankers moving to an FDIC bank platform should be informed that financial regulations on the FDIC side are increasingly more complicated and closely scrutinized by regulators. Care must be taken to avoid any fast and loose work when the OCC is evaluating a company partnering with an FDIC bank.
Author “Gus Dahleh” is a sales leader who is owner of GusDahleh.com and is rather dedicated to providing readers with important as well as useful information and facts. Take a look at the following website link for more info on why its beneficial partnering with an FDIC bank.
Locating the Best Milwaukee Mortgage Rates by Gus Dahleh(1)
Milwaukee Mortgage Rates by Gus Dahleh:
Due to today’s historically competitive loan rates, a large amount of folks throughout the Windy City are generally asking about how they could attain the most beneficial Milwaukee refinance rates rates. The following are a couple of pointers to help consumers identify the hottest deal.:
Broker Vs. Banker:
Studying Closing Cost Structures and How These Institution’s Bring In Revenue can be Critical to Acquiring You the Best Milwaukee Mortgage Rates with Gus Dahleh:
It is crucial you grasp that Broker organizations commonly have the cheapest expenses which will mean the absolute lowest rates. Nonetheless, quite a few borrowers still frown upon them because they also typically delegate many of the important services that involve getting your loan closed and that can lead to some of the head aches stated above in Tip #1. Conversely, the “Big Banks” including Wells Fargo, Chase, and Citi provide the absolute highest overhead costs and that usually end up charged to to the buyer in undesirable rates. The “Big Banks” have substantial continuing carrying costs such as billboards, tv and radio commercials, web banner advertisements, numerous levels of operations, loss mitigation departments, legal departments, and on and on. For this reason, you can typically obtain the best Milwaukee mortgage rates by selecting the lender in the middle of the spectrum: the mortgage bankers. Mortgage bankers generally have relatively low expenses yet nevertheless have the control of crucial services in house, specifically underwriting and closing departments.
Lenders Closing Costs and Getting the Best Milwaukee Mortgage Rates with Gus Dahleh:
You may have seen several banks advertising and marketing “no closing costs”, particularly on refinances. Be cautious though because quite often they’ve already built those fees in to the rate one way or another. For instance, it should be up to you the borrower whether you’d like the closing expenses paid at closing in cash, built in to the new transaction, or, paid for by the lender but in exchange for a marginally increased interest rate. In general with mortgage bankers like Bridgeview Bank, they could cover the majority of or all your closing expenses and also still enable you to get a rate that is lower compared with any of the “big banks”.
Article writer “Gus Dahleh” is a sales innovator who is owner of GusDahleh.com and is focused to delivering readers with important and also helpful tips. Find out more about the following link for a Complimentary refinance assessment as well as skilled assistance on how to obtain the best Milwaukee mortgage rates with Gus Dahleh.
How to Find the Best Washington Mortgage RatesComments Off on How to Find the Best Washington Mortgage Rates
Finding the Best Washington Mortgage Rates:
With today’s historically competitive mortgage rates, many folks within Seattle, Tacoma, Spokane, and Vancouver appear to be asking what the best way is to obtain the best washington mortgage rates. Here are a few suggestions to assist consumers in identifying the best mortgage rates:
Broker Vs. Banker:
There can be two main types of mortgage providers to consider. The first are brokers who from a technical perspective tend not to fund the transactions using their own money, nevertheless they generally feature the greatest selection of secondary market investors to place the mortgage loans with (these “big banks” being Wells Fargo, Citibank, Chase, and GMAC just to name a few). The downside connected with a broker not utilizing their own funds to actually close your transaction is their outsourcing of essential services. This will sometimes bring about extra headaches for borrowers hoping for the easiest transaction conceivable. As opposed to brokers, mortgage bankers are similar but almost always have in-house underwriters that approve the transaction to fund and they ultimately close the mortgage loans independently which gives them the last authority in accepting closing conditions.
Understanding Cost Structures and How These Banks Bring In Money is really Crucial to Getting You the Very Best Washington Mortgage Rates
It is crucial you fully understand that Broker organizations usually have the smallest expenses which could mean the absolute lowest rates. However, a large number of buyers still shy away from them because they also commonly outsource many of the important aspects that go into getting your loan to the closing table and that can bring about some of the head aches outlined above in Tip #1. On the other hand, the “Big Investors” such as Wells Fargo, Chase, and Citi have the absolute greatest expenses and that often end up charged to to the customer in the form of undesirable rates. The Big Banks have to carry enormous on-going expenses such as billboards, tv and radio commercials, web banner advertisements, countless levels of operations, loss mitigation departments, legal departments, and the list goes on. Due to this, you can usually getgoing with the lender in the middle of the spectrum: the mortgage bankers. Mortgage bankers usually possess relatively low overhead costs however still have the control of crucial services in-house, specifically underwriting and closing departments.
You may have seen some lenders advertising and marketing no costs, especially for refinance transactions. Be cautious though because in most cases they have rolled those fees into the rate in one way or another. For instance, it should be up to you whether you’d prefer the closing fees paid at closing in cash, built into the new mortgage, or, taken care of by the mortgage lender but in exchange for a slightly increased interest rate. Characteristically with mortgage bankers that include Bridgeview Bank, they might cover the majority of or all of your closing costs and still get you a rate that is more favorable compared with any of the “big banks”.
Article author “Joe Mortgage” is a sales pioneer who is owner of hotratequote.com and is focused to delivering his subscribers with important and also valuable information. Take a look at the following url for a Zero cost refinance consulting as well as knowledgeable assistance on how to obtain the best washington mortgage rates.
Chicago Tribune: 30-year Mortgage Rates Dip to 3.62%(1)
Chicago Home Loans – How to Compare the Best Lenders?(1)
Locating the Best Chicago Home Loans
Because of today?s historically competitive loan rates, countless folks within the Windy City are generally asking ways they can attain the most beneficial Chicago harp refinance rates. Here are a couple of ideas for helping shoppers source the hottest deal.:
Chicago Home Loans – Broker Vs. Banker:
Understanding Price Structures and How These Institution’s Bring In Revenue is Significant to Getting You the Best Chicago Home Loans:
It is essential to realize that Broker businesses commonly have the lowest overhead costs which will result in the absolute lowest rates. Even so, countless consumers still frown upon them because they also generally use outside agencies for many of the necessary services that involve getting your loan to the closing table which might bring about a few of the headaches described above in Tip Number 1. Conversely, the
Lenders Closing Costs and Finding the Best Chicago Home Loans:
You may have seen several lenders advertising and marketing “no costs”, primarily for refi transactions. Use caution though because quite often they already have rolled those costs in to the rate in one way or another. For example, it should be up to you the shopper whether you’d like the closing fees paid at closing with cash, rolled into the new transaction, or, paid for by the mortgage lender but in exchange for a marginally greater rate. Traditionally with mortgage bankers including Bridgeview Bank, they’re now able to pay for the majority of or all of your closing expenses and also still get you a rate that is lower compared to any of the “big banks”.
Blogger “Joe Mortgage” is a sales innovator who is owner of hotratequote.com and is rather committed to delivering readers with pertinent and also helpful advice. Find out more about the following hyperlink for a 100 % free refinance consultation and professional counsel on how to obtain the best chicago home loans.
What Are Closing Costs Made Up of and Who Are We Paying?(1)
What Are Closing Costs?
Closing costs are fees associated with settling any real estate and mortgage transaction. It is critical to know how much your closing costs can be prior to entering into a real estate transaction or you may end up not even having enough to settle. Whether you are purchasing or refinancing a home, you will usually get hit with costs from the lender, the title company, the appraiser, your attorney (on purchase transactions), among other parties.
Lender Related Fees:
Third Party Fees:
Title Company Fees:
In conclusion, its very important to consider all closing costs involved in any real estate transaction and to always review the Good Faith Estimate closely before ultimately choosing the lender.
Author “Joe Mortgage” is a marketing and advertising leader who is owner of hotratequote.com and is focused to bringing readers with relevant as well as valuable advice. Find out more about the following weblink for a 100 % FREE refinance consultation and skilled counsel on how to correctly calculator your closing costs.
PA Mortgage Rates – Where to Get the Lowest Mortgage RatesComments Off on PA Mortgage Rates – Where to Get the Lowest Mortgage Rates
PA Mortgage Rates
With today’s historically low mortgage rates, a large amount of home owners in Pennsylvania seem to be inquiring about how they can acquire the absolute best PA mortgage rates. Whether you’re from Pittsburgh, Harrisburg, Reading, Scranton, or Philadelphia, folks are more interested than ever in capitalizing on these low rates. Listed below are a few suggestions to aid borrowrs locate the best rates.:
Broker Vs. Banker:
Becoming familiar with price structures and How These Banks’s Make Revenue is really essential to getting you the best PA mortgage rates:
It’s fundamental to have an understanding that Broker businesses usually have the least expensive cost of doing business which may result in the lowest rates. Nevertheless, many buyers still frown upon them due to the fact that they also generally delegate many of the fundamental services that involve getting your loan closed which may result in a number of of the hurdles outlined above in Tip #1. Conversely, the “Big Banks” including Wells Fargo, Chase, and Citi provide the absolute greatest overhead costs and that often end up charged to to the buyer in unfavorable mortgage interest rates. The Big Banks have to carry enormous on-going expenses which includes billboards, tv and radio commercials, web banner advertisements, many levels of administration, loss mitigation departments, legal departments, and on and on. Because of this, you can usually obtain the best PA mortgage rates by going with a lender in the center of the spectrum: the mortgage bankers. These guys traditionally possess relatively low expenses yet still have the control of important services in-house, specifically the underwriting and closing departments.
Lenders Closing Costs and Getting the Best best PA Mortgage Rates:
You may see some banks marketing “no costs”, mainly on refinance transactions. Watch out though because usually they’ve already built those fees into the rate in one way or another. For instance, it should be up to you the shopper whether you’d prefer the closing fees paid at closing, built in to the new loan, or, taken care of by the lender but in exchange for a marginally greater rate. Characteristically with mortgage bankers similar to Bridgeview Bank, they could pay for the majority of or all your closing expenses as well as still provide you with a rate that is lower when compared with any of the “big banks”.
Article author “Joe Mortgage” is a marketing and advertising leader who is owner of hotratequote.com and is focused to bringing readers with relevant as well as valuable advice. Find out more about the following weblink for a 100 % free refinance consultation and skilled counsel on how to obtain the best PA mortgage rates.
New Home Construction Loans – Where Do I Start?(1)
New Construction Loans – Where Do I Start?
For many folks wanting to design and build their new dream home, this may seem to be a daunting undertaking which is why many ultimately end up turning to one of the big “track builders” such as Toll Brothers, Pulte, and the like. What makes many folks nervous is that they simply don’t know where to begin in the construction process and specifically the sourcing of new home construction loans. When in search of the best construction loan program for your particular project, its important to consider the following:
New Construction Loans – Method of Building:
The first aspect of choosing new construction loans should be what your method of construction will be. “Method?” you may ask? Yes, there are two primary methods of construction these days and they each have pro’s and con’s. Traditional “stick-built” construction is what most are familiar with. This method of construction allows for the greatest amount of customization however traditional 100% site-built projects are at the mercy of the weather and in some cases cost over-run concerns. The second option which is becoming increasingly popular is off-site home construction, also known as “modular home construction”. There is often a misconception that modular homes are built to lesser quality simply because they are built in blocks at a factory and then delivered and assembled at the construction site. The reality is quite opposite. In fact, both homes are built to the same local building code and due to the modular homes being built mostly indoors, they usually end up being built tighter and straighter than their site-built counterpart. The only downside of modular built homes is that they are somewhat limited in regard to extensive customization, however there are usually more floor plan options within modular homes and technology continues to further this initiative. Regardless of square footage or desired elevation of your dream home, you should consult both types of builders with your plans/specs to compare their offerings and prices.
New Home Construction – What’s Your Timeframe?
When considering lenders for new construction loans, its important to first consider how long your builder expects it to take to finish your home. Because of current restrictions on lending guidelines, many banks will frown upon the construction phase taking more than 6-7 months. This is primarily due to Fannie Mae’s unwillingness to allow for construction terms longer than 9 months. Also, a bank’s greatest exposure for things to go wrong is during construction therefore many try to mitigate their risk by putting a cap on the number of months any home can be under construction. A general rule of thumb for this aspect is: the longer you expect your home to be under construction, you better be that much more well-qualified in regard to income, assets, credit scores, and down payment. Its important to keep in mind that the average 2400 square foot two story home would take about 6 months to complete, where as its modular-construction counterpart would only take half the amount of time to construct.
New Construction Loans: Construction-to-Perm vs. Construction + End Loan:
There are two main types of construction loans. The first is a single-close transaction known as a “construction-to-perm” loan because both the construction loan and permanent fixed loan are wrapped into the same mortgage application and closing. Other banks prefer the other type of new construction loans which is a construction line of credit followed by a refinance of that into the permanent fixed end loan once the home is finished. A risk of using a two-time close is that you must re-qualify for the end loan once the home is complete and there also needs to be a 2nd appraisal which often may come in short due to today’s turbulent real estate market.
The only true single-close construction loan is the FHA construction loan. This type of government insured construction-to-perm loan is rare but very powerful as there is absolutely no re-qualifying upon home completion nor is there a second appraisal.
In conclusion, it is important to take the time and carefully consider the many aspects of choosing new construction loans as well as the experience of the construction lenders who offer them.
Author Joe Karns of Bridgeview Bank is a seasoned mortgage professional dedicated to bringing his subscribers relevant and useful information on how to compare construction lenders. Want a free construction loan consultation? Check out Joe Karns at the following link for some FREE expert advice on helping you source the best new construction loans.
Best Jumbo Lenders – How to Source the Best Mortgage Rates(1)
Jumbo loans and mortgages are similar to traditional mortgages, only they are larger. Some would argue that the name is somewhat silly seeing that these mortgages are typically a higher-end type borrower but the name has founds its place within the mortgage industry. Generally speaking in most markets, any mortgage over the $417,000 Conventional limit is considered a non-conforming or jumbo mortgage. There are some exceptions in “high cost” areas of the country but for this article we will stick to the standard $417K+ realm for finding the best jumbo lenders.
Best Jumbo Lenders – Guidelines to Watch Out For:
Due primarily to the higher loan amount and overall risk of these these mortgages, jumbo loans typically come with more stringent lending guidelines than their Conventional counter parts. First, the down payment(or equity, on a refinance) requirements are generally more strict, typically 20%-25% down at a minimum. Next, expect the debt-to-income ratios to be a bit more restrictive than a Conventional loan. Another aspect that is different will be the cash “reserve” requirement. Typically lenders will want to see at least 6-12 months worth of mortgage payments in the bank, in liquid form. This helps ensure that the borrowers can continue making payments if something unexpected were to occur such as a job loss, large home/auto repairs, or any other emergency which may cause money to get tight for a stretch. Even the best jumbo lenders may also require additional documentation, such as three years worth of tax returns vs just two, additional asset statements, and often times additional documentation pertaining to corporate entities owned by the borrowers.
Best Jumbo Lenders – About Interest Rates?
As you may expect, jumbo loans typically carry a bit higher interest rate. This is not only due to some added layers of risk, but also because they are generally “portfolio loans” or mortgages retained by the lending institution after closing and not sold in the secondary market. Because portfolio loans are “shelved” and retained, the loss is much greater if a borrower were ever to go into default. For this added risk, the interest rates are generally anywhere from .25% – 1.00% higher depending on the loan term and other layers risk factors. This sometimes can work to a jumbo borrower’s favor, however. Since the portfolio lender has full control over structuring the loan, they may sometimes grant special ultra-low interest rates to very well-qualified borrowers and/or borrowers who also happen to have large asset accounts with their lending institution. That being said, you can sometimes put your current bank among the best jumbo lenders by virtue of simply having large asset accounts there and being on their “VIP list” of sorts.
Remember, sometimes your best place to find the best jumbo lenders is your own local bank. If you have large asset accounts at a local bank, or you can move some money there, it is quite likely that bank may grant you special rate incentives on your mortgage in return.
In conclusion, jumbo loans are just larger mortgages with more strict guidelines and slightly higher interest rates. Though they are often times “portfolio loans” retained by the lending institution, the process for obtaining a jumbo mortgage is generally the same as that of a Conventional loan.
Author Brad Troendle of PNC Bank is a seasoned mortgage professional dedicated to bringing his subscribers relevant and useful information on how to compare jumbo mortgage rates. Want a free jumbo mortgage quote? Check out the following link for more a FREE consultation and expert advice on helping you identify the best jumbo lenders.
Harp 2.0 – Making Home Affordable Refinance Program – Valiant Enough Effort?(2)
Making Home Affordable Refinance Program
Many homeowners have been inquiring about how the new “Making Home Affordable Refinance Program”, also known as “HARP 2.0”, can benefit them. So what can Making Home Affordable do for you? In short, this newer version improves on the initial HARP program by removing the 125% LTV limitation. However, there don’t seem to be any of the “big banks” who are servicing the majority of the country’s existing mortgages stepping up and actually adopting these new capabilities, unless that is, you already have your loan with them.
Making Home Affordable Refinance Program – Who gets access and it enough?
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