RMC is QM, ATR Ready

Qualified Mortgage (QM) is the Consumer Financial Protection Bureau’s (CFPB) Ability-to-Repay rule designed to protect consumers from availing of mortgage that they cannot retain or eventually pay off. This is put in place for stability in the mortgage market, avoiding the financial crash the U.S. underwent in 2008.

In a nutshell, the ATR strives to ensure qualification for borrowers, fees and points are not excessively charged, debt-to-income (DTI) ratios are capped, higher qualification rates on adjustable rate mortgage (ARM) loans, elimination of interest-only programs, and that loan terms no longer extend to 40 years.

At Redondo Mortgage Center, these checks and balances have long been in place and implemented. RMC’s internal quality control calls for the issuance of a Good Faith Estimate (GFE) which discloses points, fees, and other closing charges to show borrowers that they are not being excessively charged as the ATR stipulates. Prior to releasing a pre-approval, RMC is required to underwrite files that rigorously checks the borrower’s credit, income, collateral and all other factors ATR is enumerating that needs to be verified. This does not only ensure that the borrower can legitimately shop for a home, but that he or she is qualified to avail of financing. In the South Bay, pre-approvals from RMC are widely honored with confidence by real estate agents. Being in the industry for nearly 25 years is indicative of RMC integrity.

RMC believes in giving all those qualified, the opportunity to avail of a home. If it is found that a borrower is not ready to purchase a property, RMC will not recommend getting into a home loan. But instead, its officers guide prospects through the preparation so they may be ready for the homebuying process. Only at the appropriate time and with the right qualifications will RMC facilitate the financing process.

While there is quite a buzz about the stringent guidelines of QM, rest assured, RMC has already been long facilitating transactions under strict, internal quality control. And while others may find it quite an adjustment, we at RMC have already mastered our compliance, allowing no downtime in closing loans.

For reference and a guide to QM and ATR please click on the link: http://www.consumerfinance.gov/blog/qualified-mortgages-explained/

Low Down Payments

Low down payment options for various home financing needs. Call Redondo Mortgage Center now to qualify 310-318-8999.

Aaron Anvaripour Five Star Professional Nominee

Redondo Mortgage Center (RMC) Sr. Loan Officer Aaron Anvaripour received word of his nomination as a “Five Star Professional” on October 16, 2013. On a written correspondence sent to Anvaripour, John Kimball research director for Five Star Professional wrote that after surveying local homebuyers and real estate agents, “Your name was brought forward. Respondents evaluated mortgage professionals they have worked with on six important client service criteria and you scored highly to qualify for the 2014 award.”

Five Star Professional is a research organization set out to conduct studies on service professionals to help consumers make informed decisions prior to engaging in business. The Five Star Professional research team applies a vigorous research and evaluation process to identify service professionals who provide quality services to their clients. Five Star Professional follows standard survey practices used by other professional research organizations. The research also includes a regulatory review to provide necessary checks and balances.

Anvaripour has been with RMC for eight years and has always conducted business professionally and ethically. “He is truly desserving of this nomination.” beamed Amir Amiri, CEO of RMC. “Clients return to Aaron for their subsequent home financing needs after having experienced his excellent customer service.” Amiri ends proudly.

On its 11th year, Five Star Professional conducts market-specific research throughout the U.S. and Canada to identify reputable and trustworthy service professionals. Winners will be announced in March 2014. “Just to be nominated by my clients is already an honor. I am truly thankful that they appreciate my work enough to put my name forward.” Anvaripour shares.

6 Ways the Government Shutdown Affects Home Loans

6 Ways the Government Shutdown Affects Home Loans

6 Ways the Government Shutdown Affects Home Loans

The last time we went through a government shutdown in 1995, it was a pain, but not a panic. With Monday's news that the government is in the midst of a shutdown, it's important to remember that all mortgages purchased and securitized by Fannie Mae and Freddie Mac will not be affected, since their operations are paid for by the fees charged to lenders and borrowers.

Others may not be so lucky. The six points below illustrate how government-affiliated mortgage loans and critical steps throughout the loan process may be impacted:

1. Federal Housing Administration (FHA) Loans: With the shutdown, we may see delays but not a complete stop to FHA loan closings. A report from the Department of Housing and Urban Development has stated that FHA's Office of Single Family Housing will remain open for business, albeit with a smaller staff. The office will continue to endorse loans and it doesn't expect the impact on the housing market to be "significant, as long as the shutdown is brief."
   
2. Department of Veterans Affairs (VA) Loans: Like the FHA, disruption is possible–but not absolute. The VA will continue to guarantee mortgages for Americans who have served in the military, since these loans are funded by user fees. It warned, however, in its September 25th contingency plan, that Loan Guaranty certificates of eligibility and certificates of reasonable value may be delayed.
   
3. IRS Tax Transcripts: If a loan requires the verification of at least one previous IRS tax return, this process may be delayed. While prior years' tax transcripts can be ordered online, there is no indication whether an automated fulfillment system will be impacted.
   
4. Verifications of Employment, for Government Employees: If a federal government employee is seeking a mortgage, and his employment verification is required prior to closing, a lender may be unable to verify this during a shutdown.
   
5. FEMA Homes: Homes in flood zones would not be able to close, as flood insurance could not be obtained.
   
6. USDA Loans: During the shutdown, the Department of Agriculture's doors will be shuttered. According to the USDA, no new housing loans or guarantees will be issued through its Rural Development programs. The USDA has also warned that a long shutdown will result in construction setbacks and "a substantial reduction" to available rural housing relative to population. 

Stay tuned for updates on this very important time. If you have any questions, please call or email me today.

Two Things You Need During the Homebuying Process: A Solid Spouse and a Reliable Real Estate Agent

As I sit on my desk pondering on what to blog about this Friday morning of October 11, I find myself suffering from a writer’s block. No ideas, no concepts, no subject matter, hence, no words.

I am amidst a home-buying and home-selling situation and with two young children, an eight-to-five job, and house chores, I am drained.

I am learning though that there are two things good to have when you’re amidst a homebuying process—a supportive and positive spouse and reliable real estate and loan agents.

First you need the solid support of your partner to bounce off thoughts and weigh pros and cons when considering a property that may end up being your lifelong home. I usually decide with my heart and thankfully, my husband is practical and mathematical. Plus when I get so engrossed on checking my MLS link (Multiple Listing Service is a resource sent to you by your real estate agent to communicate prospective properties), there is a partner who remembers to prepare milk for the baby.

Second, you need to have a reliable real estate agent who looks out for your needs, not his. Ours is Rodman Amiri of Merit Real Estate who knows our budgets, knows our needs, and knows our tastes by heart (including our eldest daughter’s, Jamie, who longs for yard space for a jumper on her birthdays.) He makes sure that the areas we vie for are conducive to raising a family. He anticipates our future plans (I told you how he knows these by heart) and makes sure the homes we look at have room to grow into. Finally, he looks out for the price. He studies the comparables—list of surrounding homes with the same specifications in a particular neighborhood—and all other real estate factors that allow us to make the right offers and not overbid. He disregards a property if it is not suited for us even if it may mean earning him a bigger commission. He wants our mortgage payments to be comfortable for us to keep the house for the long-term. Lastly, I cannot thank him enough for his patience and perseverance. For all of my family’s collective desires in finding a house, and selling our current one, he always meets those needs. And I say always.

Finally, you have to have a stable financing company behind you. Redondo Mortgage Center (RMC) has been around South Bay for nearly 25 years. It is good to have a solid pre-qualification on hand before you even start shopping for a home. RMC will guide you through the process and ensure that you are qualified to make an offer.

I will not say that homebuying is completely stress-free. Particularly if you are hormonal like me. But with partners alongside you who make the process adventures as opposed to arduous, there is a lot to look forward to than stress about. It is certainly comforting to have a partner who can put you in a realistic perspective and a real estate agent who remembers that a yard needs to be big enough for a bouncer.

I guess I no longer have a writer’s block J

-MMG

"I Want to Make Sure Buying This Home Works for Me"

Don't we all?

We often get excited about a house or a certain space in it that we tend to overlook the use of space. Will it fit furniture we currently have? Or will we need to furnish it more? Will the size be sufficient for our needs?

It's always good to take measurements and assess how you will lay-out your existing furniture and appliances. One thing you could do is also draw in your existing furniture on a photograph of that space so you can see if that works for you.

This photo is a sample of what you can do to envision the use and capacity of a specific space. One of our clients was considering this home and wanted to be able to imagine if their existing furniture and decorative items will suit the space in this prospective property.

All the furnishings that they incorporated in this lay-out are pieces they already have in their existing home. By super-imposing the pieces on the open space, they were able to envision and see that the new space works for them hence they made an offer on the property.

If you have a space and would like us to help you envision if it works for you, write to info@redondomortgae.com and we can try to help virtually furnish a space. Beyond this, we can also pre-qualify you to purchase that specific home so when you find that the space works, your financing is already in place :)