CarolinaMortgageConnection.com

As of this week, I am no longer originating mortgage loans. In my professional career I have decided to take a new route and direction. However, I will continue to stay up to date and informed as to the mortgage industry in the Charlotte area. This website will still be a valuable resource for Charlotte home buyers and Charlotte Realtors.

I am in discussions with another mortgage company that will allow me to refer business their way and still get a small bit of income from this source. When that comes to be, I will post the information here at EdNailor.com. For the mean time, the online application will remain open and I will forward the information to a fellow associate that we take great care of you.

Thanks,
Ed Nailor

Lately I have had an influx of mortgage applications from folks with bad credit. In today’s lening environment, I am sorry to say that I am not able to assist these folks at this time.

Lenders have tightened up on their lending standards. Some people believe that FHA mortgages are a great choice for them if they have bad credit; however, this is a misconception. FHA has never required a specific credit score, but has always looked for a history of responsible payments. They especially look at the most recent 12 months.

If you have bad credit, does that mean you are just simply out of luck? No, not really. While you may not qualify to buy a home today, you can certainly begin working on improving your credit. The question for most is “How do I improve my credit?” Well, there are several specific things you can do, but first you must being to understand what credit is and how it works. If you can get that understanding together, you can easily recover. It will take time, but with a good roadmap it can be done.

I am working on creating a new website that will provide that roadmap. This is in the works. This will be a member’s only website for those that are serious about changing their credit status. If this is something that you would be interested in, please use the contact page and let me know. Once the website is live and active, I will email you with the information.

Thanks,
Ed

A few days ago I asked how the Alaska Home Loan market was doing. How funny that my website that is focused on Charlotte Home Loans would rank on the first page of Google when searching Alaska Home Loans!

I have not yet heard from any mortgage loan officers that offer Alaska home loans, but hope to soon. I did hear from a Realtor that lives in the north west area of the US that happened to be visiting Alaska when coming across my post. I did think that was a bit ironic.

Anyway, I still would love to hear from those that offer Alaska home loans. How’s your market doing?

Today, at 10:02pm, Governor Micheal Easley quietly signed North Carolina house bill 2188 into law. The major purpose of this law was to change how lenders that service mortgages are supposed to communicate additional charges to their customers. However, a small surprise got slipped in to the bill… surprising huh?

SECTION 3.  G.S. 53?243.11 is amended by adding a new subdivision to read:

“(16)   In connection with the brokering or making of a rate?spread home loan as defined under G.S. 24?1.1F, no lender shall provide nor shall any broker receive any compensation that changes based on the terms of the loan. This subdivision shall not prohibit compensation based on the principal balance of the loan.“

This is the last item they added. You can see it for yourself at http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H2188v5.html

What does this mean? According to this, and the way I read it, a mortgage broker can charge an origination fee (which would be “based on the principal balance of the loan”); however, this seems to call into question the ability for a mortgage broker to make any money on the mark up of wholesale mortgage rates to retail. This could easily fall into the first prohibited category which is “based on the terms of the loan.”

If you are thinking that is good news, you are sadly mistaken! This is not good at all. And I am not talking about for just brokers. I am talking about the reprocussions this will have on consumers and the overall housing market.

You see, mortgage brokers act much like the typical lender. They get the mortgage rates at a wholesale discount and then sell it at a retail price. That’s not a “bad” thing. The benefits to the public is that the retail pricing is not set in stone, so that flexibility allows the market to be competitive. But if this is taken away, they only way a broker can make money is to charge higher upfront fees such as origination and application fees. While these are normal for any loan, the fact that a broker will have to charge 2 points instead of 1 makes it appear less attractive, even if the rate is now a “wholesale” rate.

The ironic part is that lenders and banks will still be able to make money on the wholesale to retail spread. Only mortgage brokers have to disclose the wholesale profit they make. Lenders don’t… it’s not required by law. Why? The argument is that brokers know up front how much they will make, while lenders must sell the loan to another party (such as Fannie Mae) before they realize any additional profit. That profit may be higher or lower than anticipated when they actually sell, so there is no way to nail down an exact amount to disclose. Of course, law makers could require they provide the client with a range of profit they anticipate making, but no, only brokers are required to show this profit. As such, this profit has become demonized and mortgage brokers have been slammed as greedy bastards looking out for only themselves.

So 2 things here irritate me..

the double standard that provide banks and lenders an unfair advantage in what should be a competitive market and literally puts extreme limits on what brokers can make.

the way that politicians slip things in to bills instead of being bold and just saying here it is… we are making major changes.  It is cowardice at the least!

So as politicians and bank executives continue their agenda to eliminate mortgage brokers, North Carolina mortgage clients (both buying homes and refinancing a mortgage) should brace for less competition, higher fees and less service. Its coming…

This post is my opinion and interpretation of the new law and does not reflect the position or views of anyone other than me!

Alaska Home Loans

Before you ask, no I can not originate Alaska Home Loans. I am not licensed to write a home loan in Alaska, but in an online search today, I somehow ran across this search and just got to wondering…

How many mortgage companies are doing Alaska Home Loans? I know Alaska is a very large state with lots of beauty. I have never been to Alaska and being from the south would assume it is usually cold in Alaska… therefore I doubt I would ever need a home loan in Alaska. So why worry about Alaska home loans?

Well, with the mortgage crunch that is hitting everyone, we all hear about the major markets out there… places like LA California, Pheonix Arizona and even Washington DC… but no one has said a word about Alaska home loans. How are the loan officers in Alaska doing in all of this? I noticed that the loan limits for Alaska FHA mortgage loans was averaging about $271,050. Some areas have Alaska FHA mortgage loan limits up to $332,500. Is the Alaska FHA mortgage loan limits helping any?

If you happen to be a loan officer doing Alaska Home Loans, please comment and let me know. Curiosity is killing me!

Rates today improved and home owners in Charlotte NC could benefit from refinancing their Charlotte home! Many of our customers are saving a ton of money each month by refinancing and consolidating debts into one low fixed rate mortgage!

Under current FHA mortgage guidelines, you could do a cash out mortgage refinance in Charlotte and not be charged a higher rate just because you did a cash out refinance. Most Fannie Mae and Freddie Mac loans actually charge a higher interest rate for your mortgage refinance when you get cash out to pay off debt. SO this makes the FHA mortgage loan a much more attractive option.

Take a look at this example:

What could you do with another $552 a month?!?

Apply now for your Charlotte Mortgage Refinance Loan.

I have had enough!

I am so damn tired of all the bad news and negative attitudes! It seems like no matter where I turn this is all I hear anymore.

• “The economy sucks!”
• “We can’t drill our way out!”
• “No one is buying a home!”
• “Our country is not what it once was!”

I am gonna pick on this last one for a second…

We all know that our economy is stagnant and that gas prices are up and everyone is feeling a pinch. I am feeling it too !But this one just takes the cake.

“Our country is not what it once was, and I don’t want my kids to grow up in that.” This was a quote from someone that seemingly hates America. This is a quote from someone that somehow doesn’t have a freaking clue… who said this? None other than the “chosen one” himself.. Mr. Barack Obama.

Here is my issue with this statement… I agree.. our country is not what it once was. But where Mr. Obama gets off stating that we are worse is beyond me! As an American today how am I worse off? Read the rest of this entry »

A Credit Tip Concerning FHA Mortgages

Important Notice! You may be hurting your chances to get approved for an FHA mortgage loan!

Any accounts in dispute on your credit report will automatically make your mortgage application with FHA a manual underwrite! This means that even if the FHA automated approval system says yes, your mortgage application will be downgraded to a no and it will be up to an underwriter to determine if you should get the mortgage. Manually underwritten mortgage loans face tougher scrutiny and can take longer to close.

The reason I tell you this is that too many people still believe that disputing a bad account on your credit will somehow either make it go away or make it not count. This is not true. Without proper documentation, removing an account that is correctly reported will not happen. In other words, if you did not pay them, you can’t simply dispute it to make it go away.

Under this FHA guideline, disputing the account can take you from an automated Yes to a manual No. In many cases, the account in question may not have made a difference either way.

So before you begin going around just disputing items on your credit, be sure to talk to a qualified mortgage consultant. Knowing how the FHA system works can make the difference between an approval and a long drawn out denial.

{{fha}}

Wachovia Bank Losses Forces Game Playing

Wachovia today reported losses of over $8 Billion, well beyond any analyst’s expectation. With most of Wachovia’s losses coming from the mortgage market, which I would assume was made even worse by the purchase of Golden West and the Pick A Payment loan program, Wachovia is scrambling to prevent being a lame duck ripe for a takeover.

Right now they need to make their shareholders feel confident that Wachovia can turn this ship around quickly. So what do they announce? Wachovia is withdrawing from the wholesale mortgage business and will no longer do business with mortgage brokers. (Really? Did they really?… we’ll explore that more in second.)

The idea here is that since mortgage brokers have been unfairly held repsonsible for the entire mortgage snapfu that we are in, why not seperate themselves from the “evil mortgage brokers” and show investors that they have made major changes! This will allow them to put on a show to their shareholders to make them feel a little better about the major losses.

But this show is really just smoke and mirrors. Read the rest of this entry »

Question:
I went through bankruptcy back in January and wonder now what chances, if any, I have to get a home. This may be completely fruitless at this time, but I would like to set some stepping stones so that I would know what I need to do along the way to prepare myself to better be able to get a loan.

Thanks,
Patricia

Answer:
Patricia,

Thanks for the contact. The recent bankruptcy would present the biggest challenge in obtaining a mortgage for buying a home right away. Typically most lenders are looking for 2 years of re-established credit after a bankruptcy is discharged. So while you are going through those re-establishing years, here are a few tips:

• Pay everything on time (beyond just credit debts… utilities can help create alternative credit when the time is right)
• Pay everything by Check or Debit Card (you want hard proof of timely payments)
• If you rent, pay by Check! (This is especially important to prove!)
• Open a credit card and use it effectively to re-establish credit (see http://startovercredit.com/build-positive-credit.php for more info)
• Build a savings account. Lenders like to see money in the bank for a cushion… gives them a sense of security.
• Keep debts to a minimum. When you are rebuilding credit, use credit cards (revolving credit) properly and avoid installment loans just to build credit. In other words, don’t buy a car unless you have to. Installment loans  take forever to make a positive impact on credit.

These should help get you on track to buy a home again in the near future.

If I can be of any assistance, please give me a call.

Ed Nailor
877-411-9327 Phone