HARP 2.0
You may have noticed in the news that the administration has announced a new program to help people who are under water on their mortgages refinance to today’s lower rates. The details will not be out until 11-15 with implementation to happen around December 1. But even then there will probably be more time lag to get systems in place to handle it. The benefit will only be for folks that have Fannie Mae or Freddie Mac loans. You can look up your property and see if your loan might be one that benefits by going to the following web sites.
http://www.fanniemae.com/loanlookup/
https://ww3.freddiemac.com/corporate/
If you have any questions or want to discuss your options, please contact me at 615-777-4663 or via email at George.Margrave@migonline.com .
Wednesday, October 26, 2011
Wednesday, October 19, 2011
Thin Credit?
As you have probably heard, the credit guidelines have continued to get tighter. As a result, a first time homebuyer is able to get a loan without a credit score. However, all other buyers must have at least one credit score. We teach clients with no scores to get a secured credit card. This helps to build your credit and get that much needed score. Call me and I can refer you to a company with good secure credit cards. ( one with reasonable fees)
When you get the credit card you should use it every month, but do not charge it up more than 30% of the credit limit. When the bill comes, pay the balance down to $10 immediately. Do this each month for six months for optimum scores. You can do two accounts like this. In fact you can do an installment loan in a secured manor as well.
Once you have credit scores we can move forward as long as your middle score is at the acceptable minimum standard. We will also require that you have at least three active trade lines with a 12 month history. If they do not exist, we will verify that the last 12 months of rent are paid on time. Rent needs to have been paid by check and we will require copies of the cancelled checks. Other trade lines can be utilities (phone, electric, gas, water), cell phone, car insurance, anything that is paid on a monthly basis and can be verified.
I hope this helps you understand what it is we need, how you can bring up your score or even get scores and what you can do to make it happen. Should you have any questions or need help with any of this, please feel free to contact me at my office at 615-777-4663, my cell phone at 615-481-5626 or via email at George.margrave@migonline.com . Don’t forget, this is for folks with no credit scores or limited credit.
When you get the credit card you should use it every month, but do not charge it up more than 30% of the credit limit. When the bill comes, pay the balance down to $10 immediately. Do this each month for six months for optimum scores. You can do two accounts like this. In fact you can do an installment loan in a secured manor as well.
Once you have credit scores we can move forward as long as your middle score is at the acceptable minimum standard. We will also require that you have at least three active trade lines with a 12 month history. If they do not exist, we will verify that the last 12 months of rent are paid on time. Rent needs to have been paid by check and we will require copies of the cancelled checks. Other trade lines can be utilities (phone, electric, gas, water), cell phone, car insurance, anything that is paid on a monthly basis and can be verified.
I hope this helps you understand what it is we need, how you can bring up your score or even get scores and what you can do to make it happen. Should you have any questions or need help with any of this, please feel free to contact me at my office at 615-777-4663, my cell phone at 615-481-5626 or via email at George.margrave@migonline.com . Don’t forget, this is for folks with no credit scores or limited credit.
Tuesday, October 11, 2011
Triggering
Mortgage Triggering is a frustrating, pull-your-hair out phenomenon that rears its ugly head frequently during a refinance boom. If you are a mortgage lender and haven't experienced it yet, lucky you.
Mortgage triggering is the process that some lenders use to gain customers.
Basically, lenders purchase these 'trigger leads' from the bureaus or other companies. The leads are consumers who have recently had their credit pulled in order to qualify to buy a home. Once purchased, the lenders call these consumers, (who could be YOUR customers) and extend them a firm offer of credit.
This process is covered by the FCRA as a legal practice. (FCRA, 15 U.S.C 1681). The wording of the language is: 'to obtain a consumer's private information an institution must have consent OR present a firm offer of credit in their solicitation'. So, when lenders buy these leads, they must call, email, or mail a firm offer of credit to the consumer.
The argument for triggering is that is gives consumers a choice. Triggering offers consumers more than one option for a mortgage loan.
The argument against triggering is that unscrupulous loan officers may make 'too good to be true' statements, or run a bait and switch scheme using the consumers' information.
Through the years, Data Facts has answered this question many times. Customers are confused and frustrated by the sometimes multiple phone calls they receive from competing lenders. They feel their private information has been sold. And it has.
How customers are triggered: lenders set up their criteria based on the credit score, LTV ratio of the loan, and even the geographic area of consumers they wish to target. Once set up, the consumers that fit these criteria are monitored by the triggering company. When a consumer that is on this list has their credit pulled for a mortgage loan, this triggers in the system. The lender then receives this information, and calls the consumer with an offer.
This is very frustrating for us and our customers. I think (and I hope you do to) that it should not be allowed. Tell your congress person. You can reach me at 615-777-4663 or via email at george.margrave@migonline.com
Mortgage triggering is the process that some lenders use to gain customers.
Basically, lenders purchase these 'trigger leads' from the bureaus or other companies. The leads are consumers who have recently had their credit pulled in order to qualify to buy a home. Once purchased, the lenders call these consumers, (who could be YOUR customers) and extend them a firm offer of credit.
This process is covered by the FCRA as a legal practice. (FCRA, 15 U.S.C 1681). The wording of the language is: 'to obtain a consumer's private information an institution must have consent OR present a firm offer of credit in their solicitation'. So, when lenders buy these leads, they must call, email, or mail a firm offer of credit to the consumer.
The argument for triggering is that is gives consumers a choice. Triggering offers consumers more than one option for a mortgage loan.
The argument against triggering is that unscrupulous loan officers may make 'too good to be true' statements, or run a bait and switch scheme using the consumers' information.
Through the years, Data Facts has answered this question many times. Customers are confused and frustrated by the sometimes multiple phone calls they receive from competing lenders. They feel their private information has been sold. And it has.
How customers are triggered: lenders set up their criteria based on the credit score, LTV ratio of the loan, and even the geographic area of consumers they wish to target. Once set up, the consumers that fit these criteria are monitored by the triggering company. When a consumer that is on this list has their credit pulled for a mortgage loan, this triggers in the system. The lender then receives this information, and calls the consumer with an offer.
From DataFacts
This is very frustrating for us and our customers. I think (and I hope you do to) that it should not be allowed. Tell your congress person. You can reach me at 615-777-4663 or via email at george.margrave@migonline.com
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