We all know someone who has lost their job and/or is having trouble finding gainful employment because of the battered economy.  This can be a challenging and scary situation to be in when you are a homeowner.  Many borrowers are embarrassed and are unsure of their options if they are having trouble making their payments.  Luckily, there is some good news for borrowers in this situation.

            Fannie Mae and Freddie Mac recently announced that they are modifying their forbearance policy as of Feb. 1, 2012 to include unemployed borrowers.  Here are the facts:

• Mortgage servicers can approve unemployed borrowers with Fannie Mae or Freddie Mac owned or guaranteed loans for up to six months of forbearance without prior approval from these lenders
• Servicers can extend the forbearance for an additional six months with prior approval for a possible total of 12 months of forbearance.
• Delinquent borrowers in an existing short term forbearance plan can be evaluated for an extended forbearance under the new policy. 

“Before entering into any modification or forbearance program the borrower should discuss with the servicer how this will be reported to their credit report. If the words “modification” or “forbearance” appear it could be classified as a derogatory by the credit bureaus and cause the score to drop. Borrowers need to negotiate with the servicer to make sure the reporting does not contain this verbiage,” writes Mindy Leisure of Advantage Credit, Inc. 

An unemployed borrower interested in forbearance should talk to the servicer of their loan about their options.  Foreclosures decreased in 2011 to 2 million from 2.9 million in 2010 but an estimated 10% of current delinquencies are due to unemployment.  So, there are still thousands of borrowers that could benefit from this policy change.   This is welcome news that can help our industry as we look forward to a better 2012. 

If you know someone that would find this information helpful please share it with them or tell them to contact their servicer for more information or eligibility requirements.

If I can help you with any mortgage lending questions or loan needs, feel free to contact me. Thank you, Joel Houwer.

Regulated by the division of Real Estate

Joel: NMLS #827314 Colorado Lic #100037556, Mark: NMLS #299217 Colorado Lic #100017652

Posted by Mark Afman under Home & Mortgage & Real Estate | No Comments »

It’s no surprise that we are enjoying historically low interest rates. However, at least here in the Denver area, we are also dealing with very low inventory levels as well.  If you follow www.insiderealestatenews.com you may have read a recent article from John Rebchook where he talks about the decrease in the number of released deeds in 2011.  A recent report released by the Colorado Division of Housing shows a decrease from 251,861 in 2010 to 235,749 in 2011.  In short, release activity falls as home purchases and refinances drop.       

            So why have low interest rates not correlated into an increase in recent market activity?  “Ten years ago, even a small decline in the mortgage rate would have produced quite a bit of new refinance and sales activity.  But since 2008, tighter lending standards and a drop in the number of eligible buyers has prevented a sizable surge in new activity in spite of record-low rates,” said Ryan McMaken, spokesperson for the Colorado Division of Housing. 

            As we look forward to inventories rising in the spring there may be some good opportunities right now.  With the imbalance of low inventory and the number of buyers right now there is great potential for new listings.  I’ve heard realtors saying that they’ve shown their clients everything that’s currently on the market and their waiting for new listings to become available.  I’ve also seen numerous instances lately where a listing receives 3-4 strong offers as soon as it hits the market.  This could be a great opportunity to help homeowners that are currently upside-down to list their properties.  With limited competition, there’s potential to receive offers that could help them get out from under their current property and shop for something else. 

            The other positive spin is that there was an increase in released deeds of 15.5% from the 3^rd to 4^th quarters of 2011.  “Real estate activity perked up a bit during the fourth quarter, which would reflect some very recent growth in employment and some mild increases in home prices,” McMaken said.  With many qualified borrowers waiting for more listings to hit the market hopefully this trend can carry into 2012.

Let Mark or me know if you have any questions or if we can help with your mortgage needs. Thank you, Joel Houwer.

We also have to tell you that  here in Colorado we are regulated by the division of real estate and now you know.

Posted by Mark Afman under Home & Mortgage & Mortgage Information & Real Estate | 4 Comments »

A few days ago Joel posted an article on G-Fees or Guarantee Fees and how rates on Conventional loans will be going up due to the fact that Mortgage borrowers are being saddled with paying the Temporary Payroll Tax Cut Continuation Act of 2011. Interesting how a “tax cut” is still costing someone money and that someone could be you if you are looking to buy or refinance soon. Now they not be calling this a tax increase but since you may have to pay more money for a government action, it is the same thing as a tax hike to you. In addition, even though the Payroll Tax Cut Continuation is being called “Temporary”, I doubt if this increase in G-Fees will be “Temporary”. A wise man once said “There is nothing more permanent then a temporary tax”. At any rate, in that article Joel correctly pointed out that there will be interest rate hikes of around one eighth or one quarter percent on conventional loans but no interest rate hikes on FHA loans.

However, after a little more research we have come to find out that even though FHA rates are not going up, It looks as though FHA Mortgage Insurance Premiums may rise to help pay for this Temporary Tax Cut. I do not have any specifics at this time but as soon as I do, I will get them posted.

The bottom line is that if you are looking for a home or are thinking if refinancing, it would be better to do it sooner then later.

More to come.

Let us know if we can answer any questions.

Posted by Mark Afman under Home & Mortgage & Mortgage Information & Real Estate | No Comments »

Recently, there’s been a lot of talk about G-fees (guaranty fees) increasing and how this may affect interest rates.  You may have heard about this from a number of sources and there seems to be varying opinions…some more dramatic than others…floating around about what this will do.  

          The reason for the G-fee increase is because the Temporary Payroll Tax Cut Continuation Act of 2011 was recently signed into law.  Among its provisions, this new law directs the Federal Housing Finance Agency (FHFA) to increase guarantee fees charged by Fannie Mae & Freddie Mac. 

          So you’re probably wondering what this all means to you.  Because the increase specifically affects Fannie Mae & Freddie Mac we only expect to see changes in Conventional/Conforming products at this time.  With the increase in G-fees we are starting to see a decrease on what investors are paying for a loan at a certain interest rate.  Based on what we’ve seen so far, we can expect rates for Conventional/Conforming products to increase by .125% to .25% in the foreseeable future.  So, it doesn’t translate into a dramatic increase but any increase is worth noting so it’s gotten its share of attention.  

          Also, it’s worth mentioning that this does not affect FHA.  This will result in an even larger spread between Conventional and FHA rates.  So, with FHA rates most likely staying the same and Conforming rates rising, FHA may be a more attractive option.  For savvy borrowers with less than 20% down, it might make sense to put 3.5% down and save/invest the difference. 

          In conclusion, no…the sky is not falling.  Yes, we will probably see a slight rise in Conforming rates in the coming months.  However, we expect to continue to enjoy historically low rates for the foreseeable future.  You can spend your time worrying about whether Tebow can continue passing like he did against the Steelers instead of stressing too much about where rates are going. 

          Summary:  The Temporary Payroll Tax Cut directs the Federal Housing Finance Agency (FHFA) to increase G-fees charged by Fannie Mae and Freddie Mac.  Interest rates on Conventional/Conforming products will likely rise .125% to .25% in the near future.  This does not affect FHA rates so the spread between FHA and Conforming rates will increase.

If you have any questions, feel free to contact Mark or me and we will be happy to help.  Joel Houwer

Posted by Mark Afman under Home & Mortgage & Mortgage Blog & Mortgage Information | No Comments »

I was asked what the bare minimum requirements are to be considered for a mortgage. I can’t speak for all lenders but the answer that I can give is:

1) A credit score no lower then 620.

2) A debt ratio (defined as your gross monthly income divided by your minimum monthly housing and consumer debt payments like credit cards, car loans, house payment,etc.) no higher then 49.9%.

3 ) No bankruptcy for the last 2 years and clean credit since a bankruptcy if you have had one.

4) No Foreclosures in the last 3 years (defined as the date that the foreclosure was registered with the county, not when the homeowner has to leave.)

5) At least 3 lines of credit with a 12 month history showing on time payments. (If you have less then 3 trade lines, or accounts, that have at least a 12 month history, you can use Alternative Credit, such as your energy bill or your car insurance, your cell phone payment, or any other account that you can document a 12 month, on-time, payment history even if it is not reported to a credit bureau).

Now this does not guarantee a loan. It just means that you can be considered for one. Other restrictions can and do sometimes come in to play and these requirements can change as well but if you can look at this list  and you meet all of these minimums and you are looking to buy a house, you can at least be considered for a loan. All you would have to do is do a standard mortgage loan application and provide the lender with some basic documentation (pay stubs, bank statements, W2′s, and tax returns of at least the last 2 years) to back up what you said in your loan application.

If I can help in any way or if you have any questions, please feel free to contact me. Thank you, Mark Afman

Posted by Mark Afman under Home & Mortgage & Real Estate | No Comments »

Are you a “glass is half full” or “glass is half empty” kind of person? Growing up, I was very cynical about life and even into my adult years I was a pretty pessimistic guy. When something bad would happen I would justify it by thinking that it was going to happen anyway so why should I think that life would be any better. Sad huh? I was one of those people that thought that life owed me somehting and I could not figure out why life was not paying up. Then I realized that life did not pay back something that it did not owe. It took me awhile but I came to realize that life is what I could make of it. Not the other way around. I still have difficult times, as I’m sure you do. But it just makes more sense to me to know that I can work my way out of it using whatever brains and talents I might have.

So what does this have to do with anything? It occured to me that during this time when the economy is percieved to be in pretty rough shape, I thought I would share a few items that could give us all a little boost. In the Real Estate world, the more knowledge you have, the better your chances are of doing well so here are a few “glass is half full” points. 1) The Denver Business Journal reports that unemployment is down to 8.1% in Colorado. Still too high but it’s better then the national average and the state added 8800 new jobs. 2) Colorado Small Business jobs are up .5%. OK, not a huge number but it’s a step in the right direction. 3) Forbes rates Colorado the 5th best state for business. Not bad, 5th out of 50. 4) The Boulder County Business Report is reporting that foreclosures are down in the Denver Metro Area. Down is better then up. 5) CNN reports that existing homes sales were up in October and since the Wall Street Journal reported that buying a home is less expensive then renting, right now, Why not get the word out.

Let the people in your database or sphere of infulence know these things. If they are anything like I used to be, they could use some good news right about now.

Let me know if you have any thoughts or comments.

Posted by Mark Afman under Home & Mortgage Blog & Mortgage Information & Real Estate | No Comments »

I would like to announce that I now have a partner working with me. His name is Joel Houwer and he is a fully Licensed Loan Officer in the state of Colorado. Joel and I will be working together to bring an even higher level of customer service to you or your referred clients. He provides a tremendous attention to detail and customer service.  He is trained in all of the loan products that Universal Lending provides (FHA, VA, Conventional, USDA) and he is backed by the 30 years of experience from Universal Lending and the 9 years of experience that I have. Joel will be working to develop some new marketing strategies that we will be able to share with our referral partners and will bring a, shall we say, more youthfull perspective to this industry. As always, we will specialize in first time home buyers and their unique needs. We will communicate the seemingly complex world of home loans in terms that make it easy to understand. We can also help with your move up buyers, loans for 2nd homes, refinance loans, investor property loans, and the FHA 203K rehab loan.

So please welcome Joel he joins me to provide you and/or your referred clients with the highest level of service and help in this always changing world of home mortgages. Feel free to contact either Joel or myself, using the contact information below, if you have any questions or would like to start the pre-approval process for a yourself or your clients.

Posted by Mark Afman under Home & Mortgage & Mortgage Blog & Real Estate | No Comments »

In the lending business there is 0ne thing that every one hates…Mortgage Insurance …well except for those companies that sell it. So I get asked all the time “why do I have to pay that, what does it do for me? My only answer is that it’s the price you have to pay for not saving up 20% of your home purchase. The are two kinds of Mortgage Insurance: MIP stands for Mortgage Insurance Premium and it applies only to FHA loans as they are insured by the Federal Government. PMI stands for Private Mortgage Insurance and applies to Conventional loans only as that insurance is purchased from, you guessed it, Private Mortgage Insurance companies.

Back in the 1930′s, most banks would only lend 80% or less of the value of the home (LTV). The FDR addministration made passed a law that allowed banks to lend up to 97% LTB. But the banks still needed something to offest the risk of that 20%. So Mortgage Insurance was created to help offset that risk. Unfortunately, the buyer has to pay the premium on an insurance policy that protects the lender if you, the buyer, stop making your payment. Does’nt  seem fair but it is what it is.

So any loan over 80% of the purchase of a home will have MI. If it is an FHA loan the   MIP that you pay is fairly high and has very little flexibility when it comes to the amount that you have to pay. It does not matter what your credit score is you will pay the same rate.You also have to pay a one time Up Front Mortgage Insurance Premium (UFMIP) that can be rolled into the loan. You pay a little bit less if you have a little more to put down then the standard 3.5% down and there is a huge reduction if you choose a 15 year fixed as opposed to a standard 30 year FHA fixed.

If you have a conventional loan then the lender can shop around with various PMI companies to get the best deal. The better your credit, the better the Monthly PMI rate you can get and they tend to be quite a bit lower then FHA MIP rates. There is no UFMIP with a normal convnetional loan but you will have the monthly PMI. If you want to pay an UFMIP on a conventional loan then you can and depending on the program, that one time payment will make is so that you don’t pay the monthly MI premium.

The basics are this. If you have low credit scores and you don’t have 20% down then an FHA loan with the MIP is best. If you have good to excellent credit then a convnetional loan and the PMI could be best.

 By the way, Dont get fooled by lenders that say that they don’t charge PMI. Generally they have to make it up somewhere, so they charge a higher interest rate to cover it.

As always feel free to comment or contact me with any questions. Mark

Posted by Mark Afman under Home & Miscellaneous & Mortgage & Real Estate | No Comments »

It’s always nice to get a note from people telling me that I my services are appreciated. My company askes for feedback after a deal is done and, although I don’t do this very often, I just wanted to share these kind words and say thanks for the opportunity to help them.

My Family and I have known Betty Armbrust and her son, Patrick, for many years and they recently said that “Many of my clients have used Mark Afman for loans to purchase their homes in the past. All have been more than happy with Mark and the loans that closed. Always on time and he keeps me and my clients fully informed” and “Mark is a problem solver who gets loans closed. We include Mark in our mortgage broker referrals to buyers. Many of our buyers have used Mark for home financing and he has never failed to fulfill promises and get them closed. One of many things I particularly value about Marks approach to business is the fact that he is “cool headed”. If a problem comes up he simply solves it. Thanks Mark for all your efforts on behalf of my buyers”

Rebecca Hamlin was a buyer that I helped and whe wrote “Mark Afman was very helpful and always kind and patient. That is really nice to have in situations when people are new to the process.”

Dave Browning is a Realtor and recently wrote “Without hesitation I recommend Mark Afman for any lending needs – he’s the absolute best at making clients comfortable with what can sometimes be an unfamiliar subject, while at the same time giving them expert advice and working in an efficient and professional manner. As a result, I’ve recommended Mark to important clients over and over, and will continue to do so; and hope you have the chance to do the same.”

Carla McCue was a relocation buyer and she wrote. “Mark Afman was great and continued to communicate with me even when I was busy coordinating the rest of my move to Denver.”

Leslie Downey told me that “Mark has been able to assist in putting together tough mortgage deals, counseling clients and helping them plan and get ready so that they can purchase a home within 6 months to a year when they have a few credit problems. He is willing to put in the extra time it takes with a first time homebuyer to be sure that they understand the financial process.”

On  January 27, 2011, Glyn Scourfield-Thomas wrote that “Mark is an excellent Mortgage Banker. He is thorough and has helped my clients obtain the best available motgages for their circumstances. Great knowledge of CHFA and other special programs.”

Thanks to all of these kind words. Sometimes in this difficult process we the call mortgage loans, it’s nice to hear that your offorts are appreciated.

Mark Afman

Senior Residential Mortgage Specialist

Universal Lending Corporation

6775 E Evans Ave, Denver, CO. 80224

NMLS # 299217ColoradoLic #100017652 

Direct: 303-759-7392, Cell: 303-905-2488, Fax: 866-896-9240

I’m honored to be selected as a 2011 Five Star Mortgage Professional by 5280 magazine.

 Apply online at mafman.ulchomeloans.com

Please visit me at www.facebook.com/AfmanHomeLoans, or www.twitter.com/afmanhomeloans

 Check the license status of your mortgage loan originator at http://www.dora.state.co.us/real-estate/index.htm

Posted by Mark Afman under Home & Mortgage & Mortgage Information & Real Estate | No Comments »

It has been announced that Bank Of America is getting out of the “Correspondent Lending” business. This is true but how it affects your deals is not known. With the Bank Of America announcement, the only things that is a real worry is the FHA 203K. Other lenders will pick up the slack on regular FHA, VA, and Conventional loans but very few investors work in the 203K progam and now that BofA is out of the game there are even less. The FHA 203K loan allows for a buyer to buy a home and then have some funds left over after the closing to fix the house up. 

There are a few other investors that support the 203K loan and Universal Lending works with them and we have no intention of droping the program. We are not sure what the affect of one less investor in this market will do to interest rates etc. However, There are some other “Correspondent Lenders” that will no longer be providing the program because BofA is their only supporting investor. Now this may be a bit of shameless self promotion but, again, Universal Lending has positioned itself to still support the 203K program. So if you have a buyer that is looking at a property that is buying a house that needs a little TLC.

Mark Afman

Senior Residential Mortgage Specialist

Universal Lending Corporation

6775 E Evans Ave, Denver, CO. 80224

NMLS # 299217ColoradoLic #100017652

Direct: 303-759-7392, Cell: 303-905-2488, Fax: 866-896-9240

I’m honored to be selected as a Five Star Mortgage Professional by 5280 magazine.

Apply online at mafman.ulchomeloans.com

Please visit my Blog at www.markafman.com, www.facebook.com/AfmanHomeLoans, or www.twitter.com/afmanhomeloans

Check the license status of your mortgage loan originator at http://www.dora.state.co.us/real-estate/index.htm

Posted by Mark Afman under Home & Mortgage & Real Estate | No Comments »