Mortgage - Home Loan, Commercial Loan

The state’s foreclosure mess is turning into a battleground where state officials and the mortgage industry seem unwilling to give an inch.

After failing to get mortgage servicers to back a compact with voluntary measures to help homeowners avoid foreclosure, Gov. Ted Strickland is threatening legal, regulatory and legislative remedies. The tougher stance has the mortgage industry calling for a summit with state officials to hammer out foreclosure prevention tactics everyone can agree on.

Strickland said, however, that servicers had their chance to participate in months of meetings state officials held on Ohio’s foreclosure problem.

“Quite frankly, I’m a little frustrated that at this stage they would ask for a summit. I don’t know what they expect to have accomplished,” Strickland said in an interview with Business First. “I think that would be a delay tactic, and what we need is cooperative action now.”

Less than a year into a deep mortgage slump caused by unprecedented loose lending standards, exotic and potentially risky mortgage types are creeping back into the local market.

From Atlanta’s boutique mortgage brokers to the city’s largest lenders, new niche mortgages are being rolled out, even as loan standards and underwriting are at their highest levels in years.

Local mortgage lenders said the new loan types being introduced are part of the market stabilizing after the shocks of the 2007 subprime meltdown, and meeting the needs of consumers still buying homes.

Others said some lenders are gambling the market has already hit bottom, and may not be prepared for further mortgage slowdowns.

(ARA) - Ever received one of those offers in the mail that seems like the solution to all your problems? It may have said, “Your home is an untapped resource. Refinance your loan with us and you’ll get quick cash to buy a car, fund college or pay off your credit card debt.”

You may have been tempted by the idea, but hopefully you didn’t bite. There are better ways to solve problems with debt. An option you may not have known about but should really consider is debt settlement, the consumer equivalent of a business hiring a turn around specialist to help them settle their debts with creditors and get the company back on track.

“Debt settlement is really the best option available to people who have found themselves in dire straights. If you’re living from paycheck to paycheck, and unable to pay your bills every month, you obviously need help. We will work with your creditors to get them to accept a smaller amount of cash to wipe the slate clean,” says Jamie Greene of Debt Settlement of America Inc., a company that has helped hundreds of people out of financial difficulty during the 7 years it has been in business.

On average, settlement officers are able to negotiate debts down by 40 to 60 percent, which can make a huge difference. Say you have $9,300 in credit card debt, the average amount carried by each American family according to the nonprofit Consumer Counseling Service in Dallas. If you cut 40 percent of that amount, your new balance would be $5580; cut 60 percent and your balance drops to $3,720, both much more manageable amounts to deal with for someone on a tight budget.

“Not only do we negotiate down the debt, we work with consumers to set up a payment plan that works for them,” says Greene.

The ideal candidates for debt settlement include people dealing with a hardship such as illness, disability, divorce, job loss or reduction in pay; people with debt in excess of $10,000 at high interest rates; those who are having trouble staying current with their accounts; and those who are considering bankruptcy, but would like to avoid it.

To find out if debt settlement is the solution for you, log on to www.debt-settlement-america.com and fill out a quick online form. A counselor will follow-up with you to schedule a free consultation.

The House approves restrictions on lenders that the president and the mortgage industry oppose. The measure’s future in the Senate is unclear.

WASHINGTON — Seeking to prevent a repeat of the current mortgage crisis, the House approved Thursday a sweeping set of protections for home-loan borrowers.

The legislation, which would fill in a perceived gap in regulation, is intended to end some of the practices blamed for recent excesses in the lending and housing markets, especially the marketing of loans to people who couldn’t afford them.

“This is an important and urgent and critical bill,” said Rep. David Scott (D-Ga.), reflecting a growing political appetite for responding to the continuing mortgage debacle.

The bill would bar a lender from making a loan unless the borrower had a reasonable ability to repay it, would make clear that federal standards apply to all lenders, including mortgage brokers, and would require licensing and registration for brokers and bank loan officers.

The Democratic-sponsored bill was approved 291 to 127. It gained substantial Republican support, though most of the opposition also came from that party. The measure is opposed by the White House and much of the mortgage industry, which argue that the bill would limit the availability of credit for worthy borrowers.

Calling the legislation “the first step toward reforms for the future,” Rep. Carolyn B. Maloney (D-N.Y.) said it struck a proper balance by protecting consumers without restricting the availability of credit.

But Kieran P. Quinn, chairman of the Mortgage Bankers Assn., said the legislation overreached.

“Have no doubt: This bill will limit credit availability and options for thousands of Americans who want to grab their share of the American dream of homeownership,” Quinn said in a statement after the vote. “It will eliminate tools that millions of Americans have used to become successful long-term homeowners.”

House opponents of the measure said lenders would be hesitant to make loans for fear of running afoul of regulators or getting sued by borrowers.

Rep. Ed Royce (R-Fullerton) said the bill relied too heavily on words such as “appropriate” and “ability to repay” that could be interpreted in various ways.

“This kind of murky language would invite litigation from every borrower who misses a payment,” Royce said.

The bill’s prospects in the Senate are unclear. In a statement, Senate Banking Committee Chairman Christopher J. Dodd (D-Conn.) commended the House vote and said he would soon introduce his own mortgage regulation bill.

The House voted as the mortgage market continued to be roiled by mounting foreclosures and the fallout on Wall Street reached into the billions of dollars.

Treasury Secretary Henry M. Paulson Jr. recently said there could be more than 1 million foreclosure proceedings started this year, with 620,000 of them dealing with sub-prime loans made to people with poor credit. Some analysts say a much larger number of mortgages are headed for trouble.

In a move fiercely opposed by mortgage brokers, the House bill would prohibit financial incentives to sell mortgages at higher interest rates than the borrower qualifies for, according to Rep. Barney Frank (D-Mass.), the legislation’s chief proponent.

Brokers have defended such incentives, known as yield spread premiums, as worthwhile for borrowers who may prefer to finance certain expenses through higher interest rates, thereby holding down their upfront closing costs.

Frank said the bill could allow for circumstances in which consumers knowingly agree on higher rates.

The bill also would restrict prepayment penalties charged to borrowers who pay off their loan balances early, typically by refinancing on cheaper terms. Such penalties would be banned on high-cost, sub-prime loans.

The bill’s supporters were pleased that 64 Republicans joined the Democratic majority in supporting the measure, which also would require better disclosure to borrowers about the terms of the loans they are taking on.

“The bill not only helps do away with predatory practices but empowers consumers with the most important tool of all: information,” Rep. Deborah Pryce (R-Ohio) said.

Generally a person’s home is their largest asset. Real estate is the way that the common person can become wealthy. This happens over time. Real estate is considered a long tem investment. Owning a home is a forced saving account in that with every payment you make you are slowly building equity. Over time, the monthly pay down of the loan and the market appreciation of the home creates wealth for the owner. Some people own rentals thereby multiplying their ability to build wealth.

Certainly the real estate market is cyclical subject to hot and cooler markets over time.. While in the past 3 years Fort Collins has seen little appreciation, the ten years between 1990 and 2000 saw a 100 percent appreciation from an average sales price of $99,000 to $199,000.

The interest paid on the real estate loan does help reduce your income taxes and you would have the ability to depreciate and deduct expenses on rental real estate.

Real estate is generally not considered to be very liquid investment. In the hot market that we experienced in the 1990’s to 2002, homes sold in a matter of hours or days and real estate appeared to be very liquid. In a normal market, typical homes generally take 75-150 days to sell provide they are well priced, in good condition and are reasonably accessible to show. This may not be fast enough if you need cash fast or do not have the ability to continue making payments.

In the current Fort Collins market there are definitely hot pockets (price points or locations that are selling well and reasonably quickly) and cold pockets (neighborhoods that have many homes on the market competing directly against one another or price points that are slower)

Real estate is generally considered to be a long-term investment. When the average home in Fort Collins was appreciating at the rate of 12 percent per year or more real estate seemed to be a place to make a fast buck. Certainly there are many books and TV shows promoting flipping and/or real estate investing as a way to make thousands of dollars in just a few hours. While I don’t doubt that it is possible, it takes a tremendous amount of work and effort to find the deals.

When you refinanced your home, paying off credit cards, car loans or pulled money out to pay for a vacation or college education, remember you have just spent the equity (your wealth) in your home. In a quickly appreciating market this may not have the impact that is does when the market is normal or slow. In a market where homes are selling quickly it may not matter. In the more normal market that we are currently in it can spell trouble for the person that must sell due to a lay off, transfer, health or financial reasons.

With little or no equity in your home you don’t have as much flexibility to reduce the price if the market warrants this to get the home sold. In a neighborhood where there is several similar homes completing against once another, the one that has the best price and condition will generally sell first.

The equity that you pulled out of the house is now sitting in your free and clear car or paid off credit card. You may not have the money to do the cosmetic fix up the house needs to sell in today’s market. You may need to bring money to closing to pay off your loans, brokerage fees and other closing expenses in order to sell your home. If you don’t have the money in saving to do this you may end up with another personal loan!

Clearly there has been a lot of press about people who have gotten themselves into trouble and even purchased or refinanced with adjustable rate mortgages that are now starting to reset. Be careful with how you treat the equity in your home. It can be your greatest source of future wealth if it is allowed to grow and not consumed heedlessly. If you have spent a good chuck of the equity you had in your home then realize what you have done. Work towards paying down your loan over time and building up a cash reserve.

(ARA) - Buying a home can be a very intimidating process, especially if you’ve never done it before. So the first thing you should do before you start is to figure out whether owning a home is right for you.

If you’re in a region where housing is at a real premium or is very expensive (such as New York or California), it may be better for you to continue renting. Take into account that if you do buy a home, there are extra responsibilities and costs that go along with it — such as lawn care, snow removal, home maintenance and repairs, etc.

Ok, then. You’ve decided that renting is no longer for you and you want to move into your own home. Where do you begin?

Step 1: Check Your Credit Report and Score

Before getting any kind of loan, you should always check your credit. According to the law, you’re allowed to receive one free copy of your credit report per year. You can do this by visiting Annualcreditreport.com. Don’t forget to check your report for errors.

Step 2: Figure out How Much You Can Afford

You can calculate how much you can afford by starting online. Quicken Loans Home Affordability Calculator can help you calculate an affordable monthly mortgage payment. Don’t forget to factor in money you’ll need for a down payment, closing costs, fees (such as for an attorney, appraisal, inspection, etc.) and the costs of remodeling or furniture. Remember that you don’t always have to put down 20 percent as your parents once did. There are loans available with little to no down payment.

Step 3: Find a Real Estate Agent

To find a real estate agent, it’s best to shop around. Get recommendations from your friends and family and check with the Better Business Bureau. Talk to at least three or four real estate agents. Ask lots of questions and make sure they have answers that satisfy you. Don’t go with anyone who makes you feel uncomfortable.

You also need to find a lender to get home financing. Most lenders offer pre-qualifications or pre-approvals. Pre-qualifications are only a guess based on what you tell the lender and are no guarantee. A pre-approval will give you a better idea of how big a loan you qualify for. The lender will actually pull your credit and get more information about you. Quicken Loans offers a Mortgage 1st approval before you start home shopping. With an actual approval, you’re ready to make an offer, and the sale will go much quicker. Besides, your offer will look more appealing than other buyers’ since your financing is guaranteed.

Step 4: Look for the Right Home

Make a list of the things you need to have in the house you buy. Ask yourself how many bedrooms and bathrooms you’ll need, how big you want the kitchen to be, if there’s an adequate number of closets and cabinet space and if the yard is big enough for your kids and/or pets to play in.

Once you’ve made a list of your must-have’s, don’t forget to think about the kind of neighborhood you want, types of schools in the area, the length of your commute to and from work and the convenience of local shopping. Take into account your safety concerns as well as how good the rate of home appreciation is in the area.

Step 5: Make an Offer on the Home

Now that you’ve found the home you want, you have to make an offer. Most sellers price their homes a bit high, expecting that there will be some haggling involved. A decent place to start is about five percent below the asking price. You can also get a list from your real estate agent to find out how much comparable homes have sold for.

Step 6: Get the Right Mortgage for Your Situation

There are many different types of mortgage programs out there, but as a first-time home buyer, you should be aware of the three basics: adjustable rate, fixed rate and interest-only.

Adjustable rate mortgages (ARMs) are short-term mortgages that offer an interest rate that is fixed for a short period of time, usually between one to seven years. After that, the interest rate can adjust every year up or down, depending on the market. These are good for people who don’t plan on living in their home very long and/or are looking for a lower interest rate and payment.

Fixed-rate mortgages are more traditional and offer a fixed interest rate (and thus a fixed monthly payment) for a longer period of time, usually 15 or 30 years, though they’re available in 20 or 25 year terms. These are good for people who like a predictable payment and plan on living in their home for a good long time.

Both fixed- and adjustable rate mortgages can have an interest-only payment. What this means is that for a certain amount of time during the loan term, you’re allowed to pay only enough to cover the interest portion of your payment. You can still pay principal when you wish, but don’t have to if your budget is tight. There is a myth that with interest-only mortgages, you don’t build equity. This is not necessarily true, since you can build equity through home appreciation. The benefit to interest-only mortgages is that you increase your cash flow by not paying principal.

Buying a home for the first time doesn’t have to be a hassle if you’re prepared and you know what to do and when to do it. Call a Quicken Loans at (800) 963-2177 for help figuring out all your home financing options.

(ARA) - Escalating personal debt is one of the biggest concerns Americans face when it comes to their financial welfare, studies show. Getting out of debt almost seems to be replacing home ownership as the great American dream.

Consumer credit tops $2.4 trillion according to the Federal Reserve. The average American household carries more than $8,000 in credit card debt. And the media is saturated with dire stories of homeowners laboring under crushing mortgage interest rates, courtesy of arcane mortgage products that looked like a deal when the market was good, but turned into nightmares with the housing industry downturn.

Technology and current market conditions make it easier than ever for homeowners with solid credit ratings to draw on the equity in their homes to pay off other high-interest credit debt. Doing so gives homeowners better rates and terms on their outstanding debt, and they may be able to deduct the interest from their taxes. Techno-savvy consumers are increasingly turning to the Internet for insight, advice and deal-shopping. Web sites like LowerMyBills.com, which matches borrowers with qualified lenders and offers tips for managing financial matters, are seeing traffic to their sites at an all-time high.

These sites curb the time a borrower spends finding a qualified lender and a worthy loan deal by matching the consumer’s information to a databank of financial services companies. LowerMyBills.com allows borrowers to query hundreds of lenders in the few minutes it takes to complete an online questionnaire. Lenders are more eager than ever to do business with borrowers who have good credit histories. To access hundreds of potential lenders for mortgage, refinance or home equity line of credit products, visit www.lowermybills.com.

Users can be matched with up to five potential lenders who compete for their business, helping them secure the lowest rates and best deals available. Once a potential lender has been identified, the consumer receives a phone call from a loan specialist who helps further refine available loan options. Approvals can typically occur in a few hours, as opposed to the days and weeks the process might take with a traditional brick and mortgage lender.

Founded in 2003, the Web site has already helped more than half a million Americans save over $172 million on recurring expenses such as mortgage, credit card, auto insurance and phone service. The service is free of charge to consumers, and also provides free education, credit counseling and debt services.

(ARA) - As the drum beat of news continues about the credit crunch in the mortgage market, millions of homeowners are worried about their adjustable-rate mortgages that will adjust to higher interest rates, leaving many struggling to make their payment. As a result, there’s a lot of confusion about what to do, or not do, before an ARM resets.

According to industry statistics, $75 billion in ARMs are slated to adjust higher through the rest of 2007. Another $500 billion will adjust higher in 2008.

What should a consumer do if their ARM is about to reset? There is no “one size fits all” answer, so it’s imperative that homeowners educate themselves and take action before that happens.

To help consumers find answers, Quicken Loans, one of the nation’s largest mortgage lenders, has launched its new Home Loan U (http://www.quickenloans.com/homeloanu.html) Web site. The site offers a wealth of free informational guides providing easy-to-understand information and advice on a wide range of housing topics, including refinancing.

“With so many ARMs adjusting higher in the near future, a lot of folks are confused and worried about what to do. Their first impulse may be to immediately refinance but, in some cases, that might not be the best option,” says Bob Walters, chief economist for >Quicken Loans. “There are several factors to consider when an ARM resets, such as the new interest rate and how long they plan to stay in their home.”

Walters notes that the first thing someone with an ARM should do is consult an experienced mortgage lender who can review their current loan program, discuss financial goals and explore available options to determine the best course of action to meet their immediate and long-term needs.

For more information on refinancing an arm and additional mortgage guides, visit Home Loan U online.

NEW YORK–(BUSINESS WIRE)–Fitch assigns the following ratings to CapitalSource Commercial Loan Company, LLC 2007-3 (CapitalSource 2007-3):

–US$380,000,000 class A Floating Rate Asset Backed Notes due January 2016 ‘AAA’;

–US$10,000,000 class B Floating Rate Deferrable Asset Backed Notes due January 2016 ‘AA’;

–US$45,000,000 class C Floating Rate Deferrable Asset Backed Notes due January 2016 ‘A’;

–US$4,000,000 class D Floating Rate Deferrable Asset Backed Notes due January 2016 ‘BBB;

–US$41,350,000 class E Principal Only Asset Backed Notes due January 2016 ‘BB’.

The rating of the class A notes addresses the likelihood that investors will receive full and timely payments of interest based on the class A Interest Amount, as per the governing documents, as well as the stated balance of principal by the legal final maturity date. The rating of the class B and C notes addresses the likelihood that investors will receive ultimate and compensating interest payments based on the class B and class C Interest Amounts and class B and class C Accrued Payable provision, as per the governing documents, as well as the stated balance of principal by the legal final maturity date. The rating of the class D notes addresses the likelihood that investors will receive ultimate and compensating interest payments as per the governing documents, as well as the stated balance of principal by the legal final maturity date.

As announced in Fitch’s Rating Action Commentary titled ‘Fitch Clarifies Position on New Issue CDO Ratings’ published on its website on November 6th, 2007, Fitch is currently in the process of reviewing its rating methodology and model assumptions for all new issue CDO ratings. Investors should be aware that Fitch is reassessing its analytic views which could impact existing ratings, including the expected ratings assigned to the securities in this press release.

Fitch will monitor the performance of this transaction. Deal information and historical data on CapitalSource Commercial Loan Company, LLC 2007-3 is available on the Fitch Ratings web site at www.fitchratings.com.

Fitch’s rating definitions and the terms of use of such ratings are available on the agency’s public site, www.derivativefitch.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch’s code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the ‘Code of Conduct’ section of this site. Fitch means Fitch, Inc., Fitch Ratings, Ltd. and their subsidiaries including Derivative Fitch, Inc. and Derivative Fitch Ltd. and any successor or successors thereto.

Contact:

Fitch Ratings, New York
Mark Kirk, 212-908-0772
Sandro Scenga, 212-908-0278 (Media Relations)

MONTEBELLO, N.Y., Nov. 15 /PRNewswire-FirstCall/ — Provident Bank today announced that it will open a Commercial Loan Center in Tarrytown, N.Y., the first step in a planned expansion into Westchester County. The office will be open on or about December 1.

The Commercial Loan Center will be located at the Talleyrand Office Park, 200 White Plains Road and will provide a full range of financing for small and mid-sized businesses, including mortgages, lines of credit, construction and equipment financing and SBA loans. Provident Bank Senior Vice President Bill Lamadore and Regional Vice President Vincent DeLucia will lead the team of six employees based in Tarrytown.

“Westchester County has a robust economy with a large number of growing small and mid-sized businesses,” said George Strayton, President and Chief Executive Officer of Provident Bank. “Provident Bank’s new Westchester Loan Center will give the county’s entrepreneurs the financing, local expertise and fast, local decision making they need to thrive in today’s challenging economy.”

The Commercial Loan Center is the beginning of an expansion into Westchester by Provident Bank, which already has 33 branches throughout the Hudson Valley region. During the next few years, Provident Bank will be looking at opportunities to expand its presence in Westchester County, including offices providing a full range of personal and business banking and lending services to meet the needs of the county’s businesses.

“Westchester County needs more locally focused, community banks like Provident,” said Stephen G. Dormer, Executive Vice President of Commercial Lending and Strategic Planning. “Many of Westchester’s community banks have been merged out of existence during the past few years. Provident Bank will fill that void by providing local commercial relationship managers who know their customers, invest in the community and provide the quick decisions business owners need. Our experienced commercial lending officers have an average of 25 years of experience in serving business customers.”

Provident Bank provides a comprehensive array of services for small and mid-sized businesses. In addition to a variety of checking, savings, mortgage and loan products, Provident Bank offers remote check deposit, payroll management and merchant credit card processing - services that can be essential for a company to thrive and grow to the next level.

Headquartered in Montebello, N.Y., Provident Bank, with $2.8 billion in assets, is an independent full-service community bank. Provident Bank operates 33 branches serving the Hudson Valley region, including one office in Bergen County, N.J. The bank offers a complete line of commercial, retail and wealth management services. Visit the Provident Bank Web site at www.providentbanking.com.