Superdome Ribbon Cutting

Great to see Frisco’s Mayor Maso and Council Members Jeff Cheney, Tony Felker and Joy West ride bikes at the Superdrome ribbon cutting yesterday!

My State of the Industry Views

Many of you have watched me and my life changes over the years.  And I bet a few of you were surprised 8 years ago when I decided to change from fun loving bicycle guy to pencil pushing mortgage guy to 2 years ago opening my own Mortgage Company.  I sure was.  Over that time I have engrossed myself into this industry and it amazes me when I see huge changes like we have coming ahead of us.  Simply put- because of the actions of a few greedy individuals- the housing industry will change and not for the better.
 
There are 2 worlds in mortgage lending- Retail and Wholesale.  I am a Mortgage Broker and work out of the Wholesale channel.  We all deliver our loans to the same place for the most part in Retail and Wholesale- the large lenders that set their standards of underwriting and products via the guidelines of Fannie Mae and Freddy Mac.  Be it Wells Fargo, CitiMortgage, Chase or Bank of America- they all carry the same products and after closing, the loans, for the most part turn into a commodity that can be traded and sold without too much affect on us the home owners.
 
Since home values have dropped in many States- those commodities were not generating the same profit and when you don’t show a profit- folks start asking to see your books.  Hence- where we are today- bad books and deception.  Then came the finger pointing, “it wasn’t us, it was them.”  Sort of reminds me of Adam and Eve in the beginning- if only they would have 1. Stayed away from the darn tree and 2. Owned up for their actions instead of placing blame down the line.  Well- us Brokers are the ones that most have decided can’t defend themselves as well and therefore must be the root of all the problems we have.  Hard for me to understand that- if I am simply approving folks on guidelines for products that Fannie and Freddy created and that the Banks then underwrite and approve- how am I the bad guy again?
 
To save us- the Government has created many committees and they have started to put in place new laws and guidelines that Fannie and Freddy should follow and in turn- so must the Banks.  Potential borrowers are seeing new credit and appraisal actions start to take affect and both are stopping folks from that home loan transaction.
 
Credit:  The other day I was working up a refinance scenario for a friend of mine who we had just closed on their home loan a year ago- let’s call that Before Fallout, BF.  So a year ago this person with a credit score of near 689 was, in the Banks and Guidelines views- A Paper loan without any adjustments to their rate.  Today- After Fallout, AF- they are well below that A paper (with the same rate mind you as BF) and if the market rate for perfect credit was 4.875% that day- they would have gotten a 6.25% rate, after factoring in all the adjustments for risk.  Granted- we need to get the ropes pulled tight- but this is just silly.  It is them making up for past mistakes and looking to gain back as much income (risk) as they can and Mark my Words- this will hinder lending going forward.
 
Appraisals:  Soon I won’t be able to 1. Pick the appraiser to use on your transaction and 2. Have any communication with the appraiser that is picked.  The belief here is when Mortgage Brokers pick and speak with appraisers- we manipulate the market and push the values to what is most needed to make that loan work.  On my web site I list a few trusted appraisers that I have worked with for years, want a challenge? – call any of them and see if you can “manipulate” them into getting you the value you want for your home.  Can’t be done- these guys have licenses and risk all if even one appraisal comes back from a 3rd party reviewer and can either lose their license or go to jail.
 
I want this not to be a grim picture of the 2009 home buying and refinance season- just my views as to what I have been watching.  My belief is that many in power view Mortgage Brokers so poorly- they are looking for any and all ways to make us appear less attractive and to encourage the client straight to the Retail side of the banks.  Currently I am in a great place and have more business than I can keep up with and hope that those oh so powerful folks don’t look for more ways to change that.  Thanks for reading-

Frisco Sunrise Rotary

We meet at the Randy’s Steakhouse at 7:30am each Tuesday morning and our speaker will be Nicol Smith, Marketing Director, Parkview in Frisco

Frisco Rotary Club

Frisco Rotary Club fundraiser at Bonnie Ruth’s.  Join our sister club March 31st as they raise funds for their General Funds to continue the great work they do in the community- a portion of sales that day go to the club- come hungry.

Closing Down Colorado

I have made a decision to close down the ability I have to lend in Colorado.  For the amount of money I have to spend each year in fee’s, insurance, bonds and licensing it is just not profitable for me to keep it open.  Sad news as I have many friends in the area from when Julie and I lived in Arvada, CO from 1999 to 2001 before moving back to TX.

Quote by Laurence J. Peter

“America is a land of taxation that was founded to avoid taxation.”

My 2009 NCAA Tournament Bracket

Shoulda Coulda Woulda

That is a term I use a lot, do you?  So easy to look backwards and second guess our decisions but this one is huge.  I never sent in my NCAA Tournament Bracket and I am on fire!  Only off a few so far.  I thought California would beat Maryland; thought Texas would beat Duke, thought Florida would have moved on and that Clemson would beat Michigan.  But I did pick Arizona, Missouri and the rest as they are now.  How are your Brackets going?

Ribbon Cutting and Open House

Something huge happened in Frisco over these last few weeks.  The Superdrome got a face lift!  With all volunteer hours by the members of the Superdrome Management Group (SMG) and the community- Frisco has its new track.  The SMG would like to invite all to the facility this Sunday the 29th to view all the work that was done.  Tentative time line is the track to open at 11am, with lunch cooked at 12:30 with a ribbon cutting festivities running from 1-1:30pm.  

I would like to recognize Tim and Suzie Goodwin, Joe and Kim Crenshaw, Lura Popovich, Joe Foos and Paula Felix for their tremendous hours of sometimes “thankless” work.  So proud of you all!

12 minutes to be inspired

My brother sent me this link to ESPN and a video interview of a man covering the PGA Tour last year.  If you have 12 minutes to spare- you might watch.