BrokerIPTV: Today we are talking with Chip Allen branch manager with Lakewood Residential Mortgage a division of Universal Lending, welcome of the show.

Chip Allen: Good to be here Dan.

BrokerIPTV: Alright, let's get into mortgages. Some standards that people should be thinking about that that they are going to need to qualify for to get a loan. Whether it's the first time buyer, a second time buyer, for instance you can't get by these days without a down payment anymore.

Chip Allen: Dan, it's pretty tough without a down payment. We still have some pretty good none seller funded down payment assistance programs, good examples of that are CHAC and HOAP. These are people with lower incomes but the good ol' days of seller funded down payment assistance at this point is gone. It may be coming back, HUD doesn't particularly care for the program's understandably a lot of people in Congress do. I personally think with seller funded down payment assistance this can be a very good program to help move a lot of the inventory with some common sense requirements. <watch video>

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Posted in Headlines, Mortgage, Real Estate Market Conditions

BrokerIPTV: Today we are talking with Chip Allen branch manager of Lakewood Residential Mortgage, a division of Universal Lending. Chip welcome to the show.

Chip Allen: Good to be here Dan.

BrokerIPTV: Alright, obviously what the whole world not just the U.S. has been talking about is the economy and mortgage and housing is right in the middle of it. How is this affecting your business?

Chip Allen: Well, I'm glad my office is on the ground floor I'm not tempted to jump things are down quite a bit.

BrokerIPTV: Yeah

Chip Allen: I'm going to be missing a few meals but that's a good thing. We are seeing some light at the end of the tunnel and ah, I think things are looking up but it's going to take a while.

BrokerIPTV: What is the light at the end of the tunnel, what are we seeing?

Chip Allen: Money is available, number one. Number two, we are starting to see not only first time buyers jump in we are also seeing investor groups grab single family properties we saw this a long ago, twenty years ago. Informed individuals coming in and buying things, tends to indicate that the market had bottomed out.

BrokerIPTV: Ok, how do you feel when you hear all this talk over the last month in the media. And a lot of people, different people have said it that it is all the fault of the predatory lenders.

Chip Allen: Well, there were a lot of predatory lenders um they're no longer a factor. Number one, they don't have the bad products to peddle to people. Number two, government regulation. Regretfully there's enough of the blame to go around. Not only the predatory lenders, which I wish more of them would go to jail, but government had a big part of it and we also had irresponsibility...um, and ignorance on the hands of consumers so everybody is kind of involved.

BrokerIPTV: Then we have the Wall St. piece which we could talk about for a while. So the state of lending is that there is money available but clearly the guidelines and the game has changed. Can you give us some of that?

Chip Allen: Yeah, um [Phonetic] always reflects the worst abuses of the past. We got a lot, we've got rid of a lot of the very bad programs. Which we shouldn't have had in the first place, 100%, Stated Income, Investor Loans with a 600 credit score...there's a toxic mortgage, it's just waiting to blow up. FHA which I've always been a champion of is gaining a lot of inroads, it's a good solid program. They've tightened the requirements up considerably, this is not intrinsically a bad thing. Some of the programs for example, Stated Income is pretty much gone. Stated Income programs um, I don't think are intrinsically bad if we have really good credit, a big down payment and reserves.

BrokerIPTV: Define sufficient credit.

Chip Allen: Sufficient credit, in reference to Stated Income, um...

BrokerIPTV: Or just Full Doc. I mean these days if somebody is coming in and they say, ya know my credit score's not terrible, it's not great. Where does it need to be now with the kind of the new frontier in lending.

Chip Allen: If you are in the lower six hundreds you are going to be ok FHA. But if you want Conventional you better be six eighty and above, and you better have a down payment. The thing to remember um, I pretty much think that all of your loans over ninety percent, most of them are going to have to go FHA. If you are going Conventional you are going to have problems and you always have to remember if you go over eighty percent with a Conventional product you need mortgage insurance. So um things have tightened quite a bit. They are taking more of a look which I don't think is necessarily a bad thing.

BrokerIPTV: Chip, thanks great information.

Chip Allen: Thank you.

BrokerIPTV: Appreciate it.

Posted in Headlines, Mortgage

BrokerIPTV: We are talking with Larry Simpson today, former owner of Fuller Towne and Country Properties and real estate broker. Larry, welcome to the show.

Larry Simpson: Oh, thank you for inviting me.

BrokerIPTV: All right. This is not an easy economy for anybody. It doesn't matter if you are a real estate broker.

Larry Simpson: Yeah.

BrokerIPTV: But are you worried about the market and are you worried about being a real estate broker in this economy?

Larry Simpson: I am and I am actually primarily worried about all those folks that I sold homes to over the past couple of years that are having a very, very difficult time making it in today's economy. They are struggling to sell their... to resell their homes, that they are having job problems or it is just that it is a very tough situation and the sooner that we can put together something in Washington and Wall Street the better. I am very concerned about this.

BrokerIPTV: Obviously we all had limited knowledge on the outside looking in and what was being negotiated in Washington, but were you in favor of the bail out plan?

Larry Simpson: Well, you know, I am like most people. You know, you only know that what you can see on the news or read in the Wall Street Journal, but it appears that there was no other option. I am not in favor of that kind of a policy, but by the same token it looked like this was a once in a lifetime catastrophic situation that had to be dealt with.

BrokerIPTV: How does the economy recover in the real estate market from here? I mean what's the recipe you think? I mean you are not an economist, but you have an opinion.

Larry Simpson: Right. Right. Well, my opinion is that our numbers in Denver are far better than the majority of the United States. Denver is a great place to live. We are still having people relocate to Denver even in this market. I would say that Denver is going to fair better than the majority of the country and the key to it is lower levels of inventory. It is the age old issue of supply and demand. We don't need to build anymore for a while and we certainly don't need to be putting your house on the market if there is any way to avoid it at this time. It's a supply and demand issue and when that gets more in balance, I think we will be on the road to recovery.

BrokerIPTV: And if you are a realtor in this market, if you were still employing all those 150, what do you tell a broker to survive?

Larry Simpson: Well, I am currently still responsible for helping out with the sales meetings and I meet with brokers on a daily basis. Right now it is basically you know pull back on your expenses, don't be you know spending any money unnecessarily, sharpen up your marketing campaign and make sure that you are well diversified. This is... we are a small, niche player in the high end for the most part and that part of the market is really just in the past few months has really slowed down. I have encouraged everyone to actively pursue other price ranges and other areas that they may not normally see themselves working in, but diversity is the key in this market.

BrokerIPTV: How about a forecast for '09?

Larry Simpson: Flat. I am forecasting flat. All our numbers that we are putting together is going to be relatively flat. We are going to see some surge. I don't think the election is going to have as much to do with it as I think the lawmakers getting back to work and putting the next, whether they call it a stimulus package or a bail out or whatever it is, when they get that put together, when they get this housing bill resolved, there is... when that all comes together, I think you are going to see some relaxed interest rates, lower interest rates and relaxed lending standards again, not to the way they were, reckless, but at least relaxed from where they are today and we will see I think an uptake in sales.

BrokerIPTV: Great information.

Larry Simpson: Well, thank you for having me.

BrokerIPTV: Thanks so much. Appreciate it.

Larry Simpson: All right.

Posted in Headlines, Mortgage, Real Estate Market Conditions

BrokerIPTV: We are at the vendor display here at Inman Connect in San Francisco 2008 and I am with Dan Welbaum and Dan, welcome.

Dan Welbaum: Hey, thank you Mark. We are happy to have you guys stop by with us for a few moments.

BrokerIPTV: You bet. I understand you guys have a new product now. Can you tell me when you released that?

Dan Welbaum: We released the product October 1st in actually New York City at something called Finovate, financial innovation technology conference and a product called mortgagemarvel.com and we were fortunate to win Best of Show when we introduced that product back in New York City October 1st of 2007.

BrokerIPTV: mortgagemarvel.com and you have got another trade name called Mortgagebot?

Dan Welbaum: Actually, our company is named Mortgagebot. We are a 10 year old company. We are the leader if you will in Internet lending for the financial industry with well over[Phonetic] 800 financial institutions that use our core product that allows consumers to apply a loan, apply online if you will, that is an Internet lending solution, apply online and get approved in 20 minutes or less.

BrokerIPTV: So, we are talking pretty much A-paper in a situation like this.

Dan Welbaum: Yeah, we are talking about A-paper, if you will, prime grade lenders and so our lenders basically are financial institutions that are multibillion dollar financial institutions like Citibank or [Inaudible], regular community banks, credit unions that are lenders, that are using our solution.

BrokerIPTV: Well, I think products like Lendingtree and so forth are nothing more than for the most part lead generation. I mean you don't consider yourself a lead generation company, do you?

Dan Welbaum: Not... I mean we are a lead generation company in that the lenders that we serve, the 800 financial institutions that we serve, we have got well over[Phonetic] 250 financial institutions that are integrated into Mortgage Marvel. These are reputable lenders if you will and... so, Mortgage Marvel in essence is a lead generation solution for those lenders, but the real essence of Mortgage Marvel is for the consumer, giving that consumer a fast, easy, quick way to shop in privacy and totally significantly reduce[Phonetic] that mortgage shopping experience.

BrokerIPTV: Well, it sounds like a great product. I can't wait to get back to my room tonight to try it out.

Dan Welbaum: Hey, it is very exciting. Thanks for stopping by Mark. We appreciate it.

BrokerIPTV: Appreciate your time today.

Dan Welbaum: Yeah. Thank you Mark.

BrokerIPTV: Bye.

Posted in Headlines, Mortgage, Inman Real Estate Connect

Fernon Meeks talks about HUD 203(k) 203(b) and Good Neighbor programs

BrokerIPTV: Today we are talking with Fernon Meeks from AXIS Title. The owner and the subject is different types of financing with HUDs. You specialize in HUDs at AXIS Title. So, tell me about my financing options?

Fernon Meeks: Well, if you are going cash, that is always nice and easy. You can go conventional, VA, but if go FHA, there are a couple of different options. One of those is the FHA 203(b), which is the standard FHA loan, which FHA as of today, they have a great $100 down program, instead of 3%, they can go $100 down. They have a 203(b) with repair escrow, that's where FHA will allow a specific amount to be added to the loan amount for repairs that HUD has already established and you can see that on the listing or FHA 203(k), which is a HUD loan where they are financing in some repairs into one loan, into one mortgage.

BrokerIPTV: Okay, explain as is versus list price.

Fernon Meeks: As is, is the price HUD has determined the property, has appraised for. They have hired and FHA appraiser to go out and appraise the property in an FHA 30 day as is value. So, something that is going to price well and sell in as is condition. And then the list price is what it is currently listed at, when they first hit the market, they are the same price, 45 days later if there hasn't been a bid, they will reduce the list price 10%, but the as is price what that appraisal is is still the same.

BrokerIPTV: What if the buyer wants to get money from FHA to fix up the place that they haven't already deemed in the little report about what needs to be repaired?

Fernon Meeks: Okay, the report you are talking about is when it's a 203(b) with repair escrow. If they want money in addition to that, it would be the 203(k) and there is two programs, one is the streamline 203(k), anything from a dollar up to $35,000 and then the conventional 203(k) program FHA, there is no cap on repairs.

BrokerIPTV: And it could be cosmetic?

Fernon Meeks: Absolutely, it could be cosmetic, sure.

BrokerIPTV: Alright, what about the Good Neighbor Next Door Program?

Fernon Meeks: Great, great program, great program. 50% off, its a great marketing tool also for agents, 50% off of the list price. So, if a house is listed for 200,000, the Good Neighbor Next Door Program, if you qualify you have to be a police officers, a fire fighter and EMT or a teacher working full time in the area that they service buy house and it is home listed under special section on MCB (Michaelson, Connor & Boul) website, but they 50% off, so if its $200,000 home, they can get $100,000. There is a $100,000 silent second that would be recorded against the property.

BrokerIPTV: Last one, I am just throwing this in, have you seen a HUD that really has been in great shape and not trashed?

Fernon Meeks: I have, I bought some for myself.

BrokerIPTV: Have you?

Fernon Meeks: Yes, absolutely.

BrokerIPTV: So, they exist?

Fernon Meeks: Carpet, paint, appliances, it just depends on the person who was living in there prior, a lot of people really had pride in their house, unfortunately they lost it.

BrokerIPTV: Fernon, thanks.

Fernon Meeks: Thanks for having me.

BrokerIPTV: Terrific information, I appreciate that.

Fernon Meeks: Thank you.

Posted in Headlines, Mortgage