lake norman real estate

Mortgage Update from a Lake Norman Mooresville Mortgage Broker

Every once in a while I ask one of my local Mooresville, greater Lake Norman area Mortgage Brokers to write a brief overveiw of our current home loan programs and how the national financial markets affect our Lake Norman market. Below is an update by John Nolo who is located right here in Mooresville:

 

Mortgage 101 Changing Tide

By John Nolo

Creative Financial Services

Mooresville, NC

In recent months we have seen a lot of changes in our mortgage industry, some good, some bad but mostly good.

Your next thought is: “how can it be good?” rates are higher, loan to values have dropped, higher PMI charges, tighter underwriting guidelines and so on. Well, by eliminating these high risk mortgage programs and tightening the existing loan programs, we can stabilize the market and attract investors back into our industry.

Investors worldwide have felt the pinch due to the U.S.’s foreclosure percentages. World banks and our beloved Fed have done everything to avoid a worldwide financial collapse. Because of infusing equity and lowering rates, bailing out Bear Sterns, and addressing other high impact risks, we are stabilizing.

So, the good news is that everyone is aware and addressing the issues from our government to private and public financial institutions. The word is that we will be climbing back to normal levels by early 2009.

Other important issues at hand, we are going to a national Loan Officer Registry. This means that loan officers committing fraud in one state cannot move to another state and defraud borrowers and banks there.

The national registry will make public any violations a Loan Officer has been charged with so anyone can see if they have a shady mortgage professional. Loan Officers are being added to the Deeds so if the Borrower defaults, they can go to the person who prepared the loan and do a full audit to see if any fraud was committed.

Every Loan Officer will have to take continuing education and be licensed with their state. This is badly needed in our industry.

Congress is considering a national appraisal process so that Loan Officers cannot talk to appraisers to inflate values for refinances or purchases.

There are other changes happening and mortgage programs are changing weekly. What we offer today, may not be there tomorrow so don’t fret, just find a good strong Mortgage Broker that has a host of Banks and Lenders that can find you that product no one else has.

John Noto

Creative Financial Services

 

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