So, you are ready to buy or refinance. For homebuyers, there is one central question in the new climate of regulation: Is your lender an arm of the IRS (Internal Revenue Service)? Since the “mortgage meltdown,” numerous consumer protection laws have been implemented by both federal and state legislatures. Some are designed to ensure that those working in the lending industry have sufficient education and ethical principles to work with the public. Other laws and regulations have been put in place to require certain disclosures are made to consumers so that they may make informed buying …

Here we go again. Sometimes it seems like mortgage lending rules are changing on a weekly basis. This time, new changes in the rules will likely have a negative impact upon borrowers. Let's go back to 2008. That is when the Federal Housing Administration (FHA), Fannie Mae and Freddie Mac were given authorization by Congress to temporarily increase conforming loan limits. The limits meant that any loan amount higher than a set dollar amount that would be considered a “non-conforming” or “jumbo,” with a higher risk for lenders, and thus resulting in higher rates to the consumer.   In reality, …

Financial Planners like myself have been praying for our government officials to solidify the debt ceiling issue as soon as humanly possible. Following the reports in the media might lead one to believe that the pigs are starting to grow wings!The reality is far more somber.  First, one must consider the effect upon the global economy by the US Government Bond ratings dropping.  Most institutional investors, and private investors too, hold a certain percentage of their portfolios in “safe” positions.   In your lifetime, would you ever have considered US Treasuries to be anything less than the…

With economic challenges refusing to lighten, many homeowners who either need or wish to move have gone the independent route.  More and more homeowners are trying to sell their homes without the assistance of a realtor .   To be sure, realtors have tools and knowledge most homeowners do not and thus have a distinct advantage. But cash-strapped sellers are seeing that additional commission as too great a burden.  The two most important seller tools are still the yard sign and the Multiple List Service (MLS).  In fact, my own study shows, as unscientific as it is, that 88 percent of real …

This past Memorial Day weekend, as I drove through Edgewater, I counted no less than 13 road signs for loan modification services.  That was just driving up Solomon’s Island Road through Edgewater.  Time and again we see friends, family members and even ourselves running up against ever-falling housing values. The real estate market continues to be tough. Although there are some signs of inventory reductions, those are temporary as Freddie Mac and Fannie Mae continue to hold back several million homes from the market. My own research has shown that less than 30 percent of all requests for …

One of the most frustrating things for consumers to deal with is the inconsistency in lending rules. For some banks, lending guidelines promulgated by Fannie Mae, Freddie Mac or governmental loan programs are sufficient to protect them from the risks of default by borrowers.  In other cases, banks add additional requirements called “overlays.”  Overylays are a permitted and, in some cases, prudent risk-avoidance technique that banks use to ensure they do not have to “buy back” a loan sold in the secondary market.  The more strict a bank is in their lending requirements, the lower the risk of …

In February, long-time local mortgage brokerage, _Union First Mortgage_, merged with local mortgage banker, Universal Mortgage and Finance, Inc.  The merger brought together the strength, size and platform of Universal with the creativity and local market knowledge of Union First. Located on Braverton Street in Edgewater, the two companies are now one as Universal Mortgage and Finance, Inc.   A change in mortgage regulations In the aftermath of the mortgage meltdown, there was a federal tightening of lending regulations. One of the main areas of concern to regulators was home valuation. New …

Last week I received a frantic call from an Edgewater client who clearly had not read my first edition of On the Money.  She opened her credit card bills and thought she was going into cardiac arrest.  After settling down for a few minutes, and gathering up her courage to call, my phone rang.  “Hello?”  Then out came the torrent of cries, concerns, apologies and self-flagellation about how much money she had spent during the holidays.“David, I can’t believe how much I spent!  What am I going to do?”Sound familiar?  Like most of us, the credit card is just too tempting.  Now that we are all …

We all understand the horror somewhere around Jan. 20 or so when we open that credit card bill and realize that we spent way too much money over the holidays. Then the anxiety sets in: "How will I ever pay this off?"  The rest of the year we go about our daily lives with a financial cloud over our heads until that principal balance is reduced. The interest alone, by the end of the year, often costs us about half as much again as we paid for the items themselves. There is hope, however.  With a few, simple tools, you can beat back debt and even avoid the overspending in the first place. Budget…