Build Your Own Mortgage, Easier Appraisals – Orange County Register


Maybe it’s just wishful thinking over the holiday season.

Common sense, a genuine concern to end the status quo, and a lot of gut courage on the part of government leaders are the metaphorical ingredients needed to begin on the best path to supporting mortgage buyers and mortgage payers. in the USA.

Here’s a list of holiday wishes from a consumer perspective:

1) Stop selling my personal information. For example, if a mortgage lender takes my credit off, I have 50 other Tom, Dick and Harry calling me to tell me about their mortgage offers. It is none of their business. But government officials think the opposite about the triggered leads and the sharing of your personal data.

2) Provide consumers with access to high quality government valuation estimators. In short: transparency. All I know is the place is worth at least X if I get a property inspection waiver when I apply for a conventional mortgage. No waiver means I’m just guessing what the place might be worth.

The Taxpayer-Owned Collateral Underwriter (Fannie’s) and Loan Collateral Advisor (Freddie’s) are the best real estate data analytics on the planet. Every chartered appraiser is required to turn over their completed conventional appraisals to the mortgage giants. This is the Fort Knox of residential real estate data.

What’s the big secret? Why don’t you alert me if I’m outbid? How is that not a predatory loan when Fan and Fred know the true market value before the sale closes but don’t let me know?

3) Let me choose when my mortgage payments are due each month. It could be a lot easier on my monthly cash flow if my mortgage is due on the 16th because I get paid first and on the 15th. Why does it have to be due first when it comes to first trust deeds? After all, home equity lines of credit and auto loans have random maturity dates.

4) Everywhere you turn, someone in government is clamoring for green energy. Mandate green energy financing for each mortgage. Whether it’s solar panels, insulation, or new windows, it’s a great investment for my home, my local utility companies, and our environment.

Why should I pay much higher rates through the California PACE (Property Assessment Clean Energy) program, for example? Or worse, maybe I want a home equity line of credit to pay for my green power needs, but I don’t have the equity.

5) New rule: I control and give the mortgage lender access to one and only one mortgage application credit report. I pull the credit report and credit scores from the three bureaus under my name. This way there is no business loan application because credit applications can affect my FICO scores as low as zero points and up to 10 points.

It’s ridiculous that the government tells me to always shop, but if I shop, my scores can potentially drop with each new loan application. Lower FICO scores can equate to higher mortgage rates and fees.

6) Have you heard of Build-a-Bear? Why not build a mortgage? Do it your way.

For example, how about a 40-year mortgage that amortizes over the first five years, but offers an interest-only option for the next 10 years because you retire in five years. Or, maybe your best option is the installment mortgage, as your income will certainly increase over time.

Think of the “drop-down menu” like when you go online to order through Door Dash. Today’s extremely small and narrow mortgage menu is designed to make it easier for mortgage lenders to sell mortgages to investors and manage loan servicing. No. It’s never about you.

7) Allow me to create and sign my own mortgage application. I am smart and my transaction is straightforward. Why do I have to go through a mortgage originator or an MLO (licensee) or a bank or a “registered” loan officer? I can sell my home for owner sale if I want to and forgo the commission. But can’t I write my own mortgage?

8) Prohibit large public and private private equity firms from competing with me for the purchase of single family homes across America. It’s hard to achieve the American dream of homeownership when I have no financial luck competing with the single-family rental cartel.

9) Require every real estate settlement service provider to sign an affidavit (under penalty of perjury) that they receive nothing of value for recommending settlement services. These are real estate agents, mortgage originators, escrow agents, title insurance representative termite inspectors, etc.

Transaction costs will drop dramatically because consumers will no longer be discouraged from looking for service providers instead of being tricked into using the often more expensive bribes.

10) Provide Neighborhood Hero Housing Subsidies (lower down payments and artificially lower mortgage rates) for teachers and janitors, health care workers and police. We don’t want these important community members to be tenants for life or to be forced to quit their local jobs and buy a home far away because their meaningful work doesn’t translate into the ability to afford more expensive communities. from southern California.

A holiday wish list, indeed.

Freddie Mac Rate News

The 30-year fixed rate averaged 3.1%, down one basis point from last week. The 15-year fixed rate averaged 2.38%, a basis point lower than last week.

The Mortgage Bankers Association reported a 2% increase in the volume of mortgage applications from the previous week.

Bottom line: Assuming a borrower gets the 30-year average fixed rate on a $ 647,200 compliant loan, last year’s payment was $ 136 less than this week’s payment of $ 2,764.

What I see: Locally, well-qualified borrowers can get the following fixed rate mortgages without points: a 30-year FHA at 2.375%, a 15-year conventional at 2.5%, a 30-year conventional at 2 , 99%, a 15 -a conventional high balance over one year ($ 647,201 to $ 970,800) at 2.625%, a conventional high balance over 30 years at 3.19% and a 30-year jumbo set at 2.875%.

Note: The 30-year FHA Compliant Loan is limited to loans of $ 477,250 in the Inland Empire and $ 548,250 in Los Angeles and Orange counties.

Eye-catching Loan Program of the Week: A 30-year mortgage with an interest rate adjustable for the first 10 years at 2.875% with no points.

Jeff Lazerson is a mortgage broker. He can be reached at 949-334-2424 or [email protected] Its website is mortgagegrader.com.


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