Living In Tucson Blog

Wolsky’s August Update

David — Sat, 14 Aug 2010 20:07:28 +0000

Wow, the weeks have blown by since my last post. Lots of things have been happening in our industry and for me personally. My family and I spent the first half of July in South America and had an amazing time. We were there on a personal trip to visit our son Adam who has been living in Uruguay since January. We spent time in Buenos Aires, Iguazu Falls (Click here to check out my youtube video!) and Montevideo. It was a great trip and we had the opportunity to meet several cousins from my father’s side of the family for the first time! My Great Uncle Isidor had immigrated to Argentina in the early part of the 20th century and we spent time with his daughter and grandchildren. (Uncle Isidor pased away in 1981.)

Back in Tucson, my mortgage license was approved. All originators (except for the originators in those big banks like Wells Fargo, Chase and Bank of America) needed to be fully licensed in Arizona on July 1st to continue taking loan applications. National licensing is also required for originators including a background check. Several thousand loan originators have left the business because of the licensing requirement and thousands have been forced to the sidelines while going through the licensing process.

FHA announced some good news and some bad news. The upfront mortgage insurance premium has been reduced from 2.25% to 1%! The bad news it the monthly premium has rise to .9% from .55% for most transactions. Please get off the fence if you are thinking about purchasing a home with a FHA loan! You will save about $40 per month for a $200,000 loan. The implementation date is scheduled to be September 7th, but I have heard that it may get postponed until October 4th.

In other mortgage news, interest rates have been continuing to drop to record low levels in Freddie Mac’s weekly surveys. Freddie Mac has been reporting the weekly average of mortgage rates for over forty years. The phones have been busy with refinance and purchase applications. Unfortunately, not every applicant will qualify these days. The most common reasons for denials include credit issues, lack of down payments or lack of equity for refinances, inability to verify income or assets and insufficient work history. Don’t despair! We are getting our qualified borrowers approved! I welcome your inquires and referrals.

For further information, contact David Wolsky at david@davidwolsky.com or call 520-275-2536. I have over 16 years of experience!

Where’s Wolsky? Hi Friends, I’ll be taking a break from mortgages and...
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Where’s Wolsky?

David — Sun, 27 Jun 2010 17:36:59 +0000

Hi Friends,

I’ll be taking a break from mortgages and Tucson for a couple of weeks. My family and I are headed to Argentina and Uruguay for a couple of weeks while we are visiting our son and extended family in Buenos Aires. It seems hard for originators to go on vacation! We always have our borrowers relying on our expertise and guidance. I have a great team covering for me locally and in our loan processing center in Mt. Laurel, NJ.

Timing can be so very tricky. For example, as I write this blog, interest rates are at a fifty year low low according to the Freddie Mac weekly survey. The Wall Street Journal pointed out that demand has been relatively flat because many homeowners were able to take advantage of low rates in 2009. Here in Tucson, a third of the houses are under water! Less than 40% of borrowers are able to qualify for a refinance and many don’t feel the closing costs are worth the potential savings. It’s not easy to get a mortgage these days and refinances can often become even more challenging.

It is also more challenging to become a mortgage originator. Did you know that over 30% of originators fail the exam for their licenses? I am proud to let you know that I passed all of my requirements with flying colors! The number of loan originators in Arizona has been drastically reduced. You can count on me to be there for your mortgage needs, now and down the road!

I’ll be back on July 13th! I can be reached at david@davidwolsky.com and 520-275-2536.

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Odds & Ends In The Mortgage Industry in Arizona

David — Tue, 18 May 2010 04:38:31 +0000

It’s been several weeks since my last posting. I’m not sure if I have many followers to this blog, if so, I apologize for the lack of new posts. I’ve been fairly busy lately with potential buyers this past spring trying to take advantage of the home buyer’s tax credit that expired on April 30th. I have also been busy taking my twenty hours of S.A.F.E. classes for licensing and four hours of Arizona mortgage law classes. I take the tests next week! Wish me luck. Nationally, Loan originators have to be licensed by July 1st, 2010. I personally think this is a good thing and I expect that many originators will leave the business.

In addition to licensing, there are lots of other things happening in our industry, so let me attempt to boil some of it down. New Fannie Mae/Freddie Mac regulations will start in June. We will be required to pull a new credit report right before closing to see if the borrowers have increased their debt load which would impact the debt-to-income ratio. The new quality control measure is also designed to prevent “shotgunning” which is a type of mortgage fraud involving simultaneously applying for multiple mortgages on the same property and then fleeing with the proceeds. Another new guideline is a change in qualifying for an ARM. Borrowers are required to qualify for the higher payment of the note rate plus 2% or the fully indexed rate. A fully indexed rate for an ARM is the highest amount the rate could ever be when adding the index (the adjustable component to calculate the rate) and the margin (which remains the same throughout the life of the loan). For example, a five year ARM can adjust to 5% over the start rate (note rate) which is to say that a ARM that starts at 3.75% can adjust up to 8.75%. The maximum rate is the rate that an underwriter must use to approve a borrower.

Why are these guidelines getting tighter? That is because Fannie Mae and Freddie Mac are requiring lenders to buy back record numbers of loans. Once a lender sells loans to investors such as Fannie and Freddie, they don’t ever want to have to buy them back.

We did hear some good news last week about loosening loan guidelines. We are now offering 95% conventional financing for buyers of one or two unit primary residences in Arizona, a declining market!

As always, if you have any mortgage questions or needs, I am available to take your call! Contact David Wolsky at 520-275-2536 or email me at david@davidwolsky.com.

Wolsky’s August Update Wow, the weeks have blown by since my last post....

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April 5th Market Update VLOG

David — Mon, 05 Apr 2010 21:19:14 +0000

The Fed ended their program of buying MBS (Mortgage Backed Securities – Fannie Mae Bonds) and it is already affecting the market. We have already seen upward pressure on interest rates. Additionally, we are seeing an overall improvement in jobs and housing. The S & P/Case-Schiller Home Price Index has been rising for eight consecutive months and Pending Home Sales rose by 8.2%!

The $8000 tax credit for first time buyers has been a decent stimulus, but the $6500 credit for homeowners buying a new primary residence has fallen short of expectations.

Here are articles of interest regarding bonds and real estate:

Real Estate Outlook: Positive Track

Bonds in the “danger zone”

Contact me, David Wolsky, if you have any mortgage related questions. I can be reached at 520-529-7515 or email david@davidwolsky.com. Your comments are welcome.

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VLOG: Market Conditions For Home Buying

David — Thu, 25 Mar 2010 06:09:50 +0000

I took the opportunity to record this video blog outdoors this afternoon so please pardon the wind noise. It was another sunny day in Tucson! The message is “Time is running out!”. The home buying conditions are perfect and the affordability index is at levels not seen in decades. Remember:

1. Rates will not stay lower indefinetly

2. The homebuyer’s tax credits will run out in 5 weeks!

3. Home prices will go up eventually

April 5th Market Update VLOG The Fed ended their program of buying MBS (Mortgage...
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New Fannie Mae & Freddie Mac Structures Coming – NAR Press Release

David — Thu, 25 Mar 2010 04:10:43 +0000

NAR press release

March 23, 2010, 2:33 p.m. EDT

New Fannie Mae, Freddie Mac Structures Should Ensure Availability of Mortgage Capital and Protect Taxpayer Dollars, Says NAR

WASHINGTON, DC, Mar 23, 2010 (MARKETWIRE via COMTEX) — Government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac should be restructured as government-chartered, non-shareholder owned authorities, the National Association of Realtors(R) said in congressional testimony today.

“We want to ensure a flow of capital into the mortgage market regardless of the state of the market or economy,” Vince Malta, NAR vice president and liaison to government affairs, testified to the House Financial Services Committee. “The new Fannie and Freddie must ensure there is always mortgage capital available for creditworthy buyers and that taxpayer dollars are protected.”

In outlining NAR’s proposal, Malta cautioned Congress and the administration about moving too quickly in restructuring the GSEs. “The housing recovery is still too fragile for the government to completely step away, and any disruption in the marketplace now by doing something too radical would be harmful,” he said. “Our goal is to help Congress and our industry design a secondary mortgage model that will serve America’s best interest today, and in the future.”

Neither a fully privatized entity nor a fully nationalized structure for the secondary mortgage market giants effectively addresses the critical issues of loan availability and taxpayer protection, he said. A fully private entity would foster mortgage products more aligned with business goals rather than the nation’s housing policy for consumers. “In difficult markets, like today’s, private lenders have not been willing to make loans without government backing,” said Malta.

A fully federal structure would put taxpayers at risk. “We want to eliminate any scenario that would place taxpayers on the hook to protect these entities. And to combine the two, or merge them with Ginnie Mae, would remove competition in the secondary market, and the new entity could lose focus on it missions to serve low- and moderate-income families and maintain liquidity in the mortgage markets,” he said.

The new authorities should be subject to tighter regulations on products, profitability and minimal, retained portfolio practices in a way to ensure protection of taxpayer monies. The new entities would also concentrate on standard mortgage products that are the foundation of the housing finance market.

“While that might curtail some private participation and alternative products in this market, we believe privates will offer innovations that meet consumer needs. The new entities would focus on safe mortgage products, including 15- and 30-year fixed rate mortgages and traditional adjustable rate mortgages.”

Malta also submitted a list of further recommendations.

The National Association of Realtors(R), “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section.

REALTOR(R) is a registered collective membership mark which may be used only by real estate professionals who are members of the NATIONAL ASSOCIATION OF REALTORS(R) and subscribe to its strict Code of Ethics. Not all real estate agents are REALTORS(R). All REALTORS(R) are members of NAR.

For further information contact:
Lucien Salvant, 202-383-1176
Email Contact
SOURCE: National Association of Realtors

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Which Way Will Mortgage Rates Go?

David — Thu, 11 Mar 2010 17:09:40 +0000

Rates have been staying low since spring of 2009 thanks primarily to the intervention by the Federal Reserve. Rate predictions are as simple as weather predictions in my home town, Chicago. It does seem reasonable to suggest that rates will go up when the Feds wrap up their program of purchasing MBS (Mortgage Backed Securities) on March 31st. If you would like a rate quote for your next mortgage, contact David Wolsky at 520-529-7515 or david@davidwolsky.com.

Here’s an excerpt of an article on March 11th from BankRate.com. Keep in mind that rate surveys are reflecting the rates of the previous week and there are ebbs and flows to the market causing rate fluctuations.

Rates Fall to Lowest Point of this Young Year

The Fed is in the final three weeks of a mortgage-buying initiative that began more than a year ago. In all, the Fed plans to buy $1.25 trillion in mortgage-backed securities. The central bank is down to the last $30 billion or so of these purchases. Afterward, it will be up to investors to buy mortgages and keep home loans available.

For a while, the consensus among bankers and economists was this: Mortgage rates would rise roughly half a percentage point after the Fed’s withdrawal. That consensus of an expectation of higher rates has transformed into uncertainty.

“Are we going to see a half-point blip? I don’t know. Maybe. Possibly. Probably. I don’t know,” says Dick Lepre, senior loan consultant for Residential Pacific Mortgage. If the Fed’s withdrawal means that rates are going to rise, why haven’t rates gone up already?

Even members of the Fed are asking that question, which implies that they are uncertain about the direction of mortgage rates, too. Brian Sack, executive vice president of the New York Fed, said in a speech Monday that the central bank has been tapering its purchases of mortgage-backed securities. “However, even as the pace of our purchases has slowed, longer-term interest rates have remained low,” Sack said, and the gap between mortgage rates and Treasury yields has remained narrow.

Click here to read the full article: http://www.bankrate.com/finance/mortgages/rates-fall-again-to-new-low.aspx

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New Underwriting Guidelines – Mortgage Humor!

David — Mon, 08 Mar 2010 06:03:03 +0000

New Underwriting Guidelines effective 3/01/2010

* All Borrowers’ Birth Certificate will be required with Pictures taken in the hospital with medical staff. Birth certificate with a live home delivery will not be eligible for first time home buyers.

* Marriage certificate with bridal dress will be required if both husband and wife are required to qualify for the loan

* GFE will not require signature but will require blood sampling from a recognized institution within three days of application

* DNA test will be performed at closing to avoid any ARM length transaction. Loan funding will be contingent upon satisfactory receipt of DNA results.

* Verification of deposit will be acceptable only if Bank representative is present at the closing.

* Copy of Pay stubs and W2 will only be acceptable through IRS only with a wax sealed envelope mailed directly to the lender.

* 7 Witnesses from neighborhood will be required as proof of primary residence in case Borrower owns more than 1 property.

* All appraisers will be required to use Mask and ear plugs at the time of inspection to avoid any personal influence by the Borrower for the appraised value.

* In order to correctly calculate DTI and true house running ratio a list of Grocery items, monthly usage and brand names will be required with receipts and projected 12 months consumption chart.

* Closing will not occur without loan officer presence at settlement and Loan officer picture will be taken at the closing in a Mug shot format with loan number. Picture should meet standard guideline of 2 X 2 inch in color format with one facing and one side view.

* Loan officer picture will be attached to the Deed and note and will be made available for general public and security agencies in case Borrower defaults on the loan.

Thanks to one of my colleagues for sending the funny email to a Realtor in my office. She has more empathy for loan officers after reading this. If you want to have some fun with the mortgage process, give me a call. I’m David Wolsky from Coldwell Banker Home Loans in Tucson, Arizona. You can reach me at (520) 529-7515 or david@davidwolsky.com. I have over 15 years of experience and we offer great rates and terms for conventional, FHA and VA loans including USDA and HomePath Financing.

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Looking For A Great Deal On A Foreclosure?

David — Mon, 08 Feb 2010 05:16:03 +0000

If you are in the market for a new house this spring, check out www.homepath.com. Home Path are Fannie Mae REO properties all over the country. The deal just got better. Fannie Mae is offering a 3.5% incentive for buyers who purchase and close on a Fannie Mae owned home between January 28 and April 30, 2010. The credit can be used towards closing costs, the purchase of new Whirlpool appliances by Fannie Mae or a mix of closing costs and appliances, at the buyer’s discretion, up to the maximum 3.5%. Combine that with a $8000 tax credit for first time buyers or a $6500 for qualifying repeat buyers who have owned a home for five out of the last eight years.

There is also special financing available for Fannie Mae owned homes. The benefits include:

Low down payments (3% for owner occupied and 10% for investment properties)
Qualify with less than perfect credit
Down payment (at least 3%) can be funded by your own saving, a gift or a qualified grant
No mortgage insurance
No appraisal fees

PHH Home Loans and Coldwell Banker Home Loans is an authorized Fannie Mae HomePath lender. Call David Wolsky at 520-275-2536 for more details! You can apply online on my website: http://davidwolsky.coldwellbankerhomeloans.com/

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Take Advantage Of The Tax Credit for Home Buyers Now!

David — Tue, 26 Jan 2010 06:13:04 +0000

Check out this video:

There are only 14 weeks to get your new home into escrow for the homebuyer’s tax credit. Act now!! If you are a first time buyer, you can qualify for a tax credit up to $8,000. If you are a homeowner for the past five years, you might qualify for a $6,500 tax credit if you purchase a new primary residence. In either case, you must have your purchase contract dated by April 30th, 2010 and close of escrow must take place by June 30th, 2010. Members of the armed forces and federal diplomatic and intelligence personnel stationed overseas get and extra year to claim their credit.

Contact me, David Wolsky for more details… the direct line is 520-529-7515 or email me at david@davidwolsky.com.

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