In life we always have changes, it's planning , planning and still more planning - the world didn't stop 12/31/1999 at 11:59 pm.  Will there be a learning curve for real estate agents, builders , lenders and mortgage professionals - 100%!  There's always a way of finding how to keep business moving - great ones are already doing so - PreApprovals are still part of the business.

FROM Origination News

The TRID Loophole the CPFB Says Is Legit

by Ari Karen

MAY 28, 2015 

Anyone who's closely read the nearly 1,900-page final rule for the TILA-RESPA Integrated Disclosures likely noticed a nifty loophole when it comes to how lenders can issue mortgage pre-approvals.

For everyone else, the Consumer Financial Protection Bureau recently clarified how a loan pre-approval doesn't automatically trigger TRID's three-day window for delivering initial disclosures.

The workaround was mentioned during a webinar hosted by the CFPB and Federal Reserve Board that also addressed new rules that prohibit lenders from requiring a borrower to provide verifying documentation prior to providing the Loan Estimate.

The CFPB first pointed out that TRID only prevented lenders from "requiring" such information, but that if voluntarily provided by the borrower it was permissible. Of course, the agency immediately followed up by explaining that a lender that explicitly or implicitly requires such documentation would be violating the law.

This obviously creates risks for lenders who expect to rely upon the borrowers' "voluntariness," since a borrowers' subjective belief they implicitly had to provide documentation could create risks for a lender.

However, it is only after all six pieces of information are collected that the requirement of a Loan Estimate is triggered. The CFPB also indicated that as long as a lender did not collect the six pieces of information necessary to trigger the Loan Estimate, a lender could obtain verifying documentation.

"The bureau does not believe that the definition of application will restrict creditors' ability to provide prequalification cost estimates or grant pre-approvals, because creditors could provide prequalification estimates and grant pre-approvals without obtaining all of the six elements of information that make up the definition of application," Pedro De Oliveira, counsel at the Consumer Financial Protection Bureau, said during the webinar.

Hence, as long as the lender does not, for instance, obtain the subject property address, the lender has no obligation to provide the disclosures and/or Loan Estimate.

Accordingly, those lenders that wish to provide pre-approvals may be well advised to consider making pre-approvals general, as opposed to specific to a designated property.

Ari Karen is an attorney at Offit Kurman.

Why you Need a House by the Seaside

A house on the coast of Bethany Beach is a much sort after location for home buyers who are looking for a home, away from the hustle and bustle of city life.  A house by the beach is a perfect idyllic living that especially appeals to retirees and baby boomers. Homes, condos, villas and more are available at Bethany Beach. Take your pick!

Why get a house at Bethany Beach

Getting a house by Bethany Beach is a great decision indeed! Oceanfront houses or villas at a walking distance from the beach, are  great choices. It depends on what you expect from your home. The strongest plus point that stands out is the opportunity to live and be  with nature. Every day is greeted with wafts of ocean breeze, the sound of the rushing waves, the awe-inspiring sunrise, or sunset, and the serene beauty of it all. It’s tranquility right at your doorstep. You can quickly step out and have a splash in the waters, an evening out with kids for some fun, or take a walk on the wild side by trying your hand at some water sports like kayaking, surfing or sailing.

If you are keen to invest in a beach house, now is a great time, given the low interest rates! At present, the market in Bethany offers favorable conditions for interested buyers. Well renowned mortgage lenders like Steve Morgan can ease the entire process of house buying, by tailoring the right loan process that’s best suited for you. The Bethany Beach lender hosts several loan application options. Based on your requirements, a suitable one will be recommended for you. Take advantage of these commendable mortgage lenders!

In conclusion, a house by the beach is perfect either as a home or as a vacation beach house. The perfect getaway from the stress of everyday living, at a place you can call your own, where you can keep your feet up, relax and unwind. With favorable market conditions prevailing right now with no certainty of how long it’s going to last this way, now is an excellent time to invest in a beach house!

Advice from a Mortgage Expert

Having a place to call your own is something that everyone wants. With the soaring realty prices, taking out a mortgage is the only available option. Many mortgage companies like Bethany Beach Lenders offer attractive interest rates. Mortgage brokers like Steve Morgan will also assist you with all the paper work and legal documents that are synonymous with buying a home.

What do the experts suggest?

The market is constantly fluctuating. The rates that are prevalent today are replaced tomorrow. Experts suggest that there is no better time to invest in property than today! Two experts: NY1’s Tara Lynn Wagner and Ross Kenneth Urken say that the best time to buy a house will be within the next five months. The prices are going to soar  which  in turn will increase the interest rates. They speculate a rise of 5 percent in the interest rates over the next twelve months.

Urken says, "I really think it's chicken and egg”. People are seeing interest rates rise so they are more compelled to get into the market . If you are looking to buy a home, your biggest priority right now should be getting your financial house in order. Credit score is really your golden ticket to getting a great rate from lenders and thus a more affordable mortgage.

Choosing a mortgage is as important as choosing a house. Mortgage brokers help in shopping for the best deals. They also handle all the legal paper work and assist through-out the entire process. Steve Morgan is a certified mortgage broker who has clients in Delaware, Maryland, Virginia and Washington DC.

Bethany Beach, the quiet town in Delaware is gaining popularity as the ideal retirement and/or second home. The booming real estate industry has made this small town into a  perfect get away. Waiting on the interest rates to drop is as good as shooting arrows in the dark- unpredictable! Once you have your finances in order and a good credit score start shopping for the perfect home.

Questions to Ask Your Mortgage Lender

Mortgage lenders help you in finding the exact mortgage loan that will suit all your needs. The lenders have every kind of information on mortgages and should be willing to share the information with you. So, it is important to get to know what questions you should ask to your Bethany Beach Lender, before signing a mortgage contract.

Answers you need to know

The first question you should ask is about the Annual Percentage Rate. Lenders could hide small fees and charges that might lead you to paying more money. The APR takes into account all of the extra charges, so it is better to know it before getting a loan. Your second question should inquire about escrowing your insurance and taxes. Some prefer to pay them all at once, others over a period of time, and hence talk with your lender about whether you have to make an escrow account or the lender will sort it out for you. Other questions you could ask is about prepayment penalties on the loans, or whether to not do something that changes you financial information or credit report before the closure of your loans.

Such questions, if asked correctly, can lead to a better experience when applying for a mortgage loan. Steve Morgan says to get your facts right before making any applications for loans on Bethany Beach, Delaware. For more information on how to get a mortgage loan, get Bethany Beach Lender to help you out. 

Cutting Down Your Mortgage Payment

Purchasing a home can be a cumbersome and difficult process to maneuver around. Fortunately for property buyers in Bethany Beach, there are now a variety of loan schemes on offer that help reduce both their down payments, as well as their monthly Private Mortgage Insurance (PMI). A PMI is an additional sum that is integrated into the overall mortgage payment. Schemes that allow individuals to place under 20 percent of a property’s value as a down payment, typically involve a PMI. 

80/10/10 scheme

PMIs can amount to significant monthly sums depending on the total value of the property. However, there are a variety of ways in which buyers can avoid or reduce their PMI premiums. The f80/10/10 scheme permits buyers to put down just 10 percent of the total property purchase value at first. The lender will then place down 80 percent of the property value. Buyers can then use the same Bethany Beach lender or another lender to place a second mortgage of the remaining 10 percent of the property’s value, thereby taking care of the monthly PMI. 

Gift of equity

For individuals who live in family-owned properties, or those looking to purchase properties from their landlords, there is the gift of equity scheme. This scheme allows the current owner of the property to place 5 percent down payment on behalf of the buyer. However, to do this, the buyer will need to provide a letter of motivation from the owner of the property, detailing the reason of sale. 

It is important to remember that most of these schemes require individuals to have a credit score greater than 700. Before availing of these methods, it is always advisable to consult an experienced mortgage professional like Steve Morgan. 

Undertaking a Mortgage Loan in Bethany Beach

If you are searching for a place where you can escape for a peaceful weekend and where nature’s beauty will allow you to relax to your heart’s content, Bethany Beach is your ideal destination. The place is also ideal for retirees and those looking for a second home away from the bustle of city life.

Making the choice

There are mortgage lenders like Steve Morgan, a Bethany beach lender who can help you decide on the mortgage amount. But even before you meet a lender, it is better to do a self assessment and see how much you can pay.

You may have prior commitments which the mortgage lender will not take into account. He will ask you questions related to your credit profile, income, debts and give you an estimate. But whether you can pay back that borrowed amount after satisfying your hobbies or passion and saving for your family depends entirely on you.

If you buy a home, say at Bethany Beach, other than the mortgages you will also have to pay property taxes, principal, interest, and homeowners’ insurance. Also know that if your down payment is less than 20 percent, you may have to pay for additional mortgage insurance. Moreover, set aside money for repairs and maintenance. Lenders mostly allow a 41 percent to 43 percent debt-to-income ratio.

If you are confused as to what the safe mortgage limit for you is then consult an experienced Bethany beach lender like Steve Morgan. He will calculate the amount for you based on your tax returns. He will also take into account any outstanding loan or premiums you may have to pay to come to a realistic figure.

Getting a Mortgage Loan

Bethany beach has gained immense popularity among property buyers, especially those who are looking for a second home or a vacation home. If you are planning to buy a home here, you should equip yourself with all the relevant information about mortgages so that the process of buying a home, getting mortgage and the required paperwork don’t become a bothersome task for you.

What to concentrate on

When buying property on Bethany Beach, you need to concentrate on a few important things about the mortgage for the property. Checking the cost of the mortgage and comparing it with the benefits will help you get the maximum return on investment. There are many Bethany Beach lenders who will offer you competitive mortgages, but comparing them will give you a fair idea about what suits your budget and needs.

First, you must check the mortgage rates - the difference in mortgage interest rates can make all the difference in making your home an affordable one or a really expensive one. Rates also depend on the current economic conditions and realty prices.

You should also inquire with your Bethany Beach lender about the type of mortgage he or she is offering. Lenders like Steve Morgan offer various types of mortgages to suit your needs as well as your financial profile. Also make sure that the mortgage is affordable for you over a long period of time, even if you will not be working.

Finding a good Bethany Beach lender and getting the appropriate mortgage for your dream house is not all that difficult - you should be prepared to do some ground work and compare different offers before you settle for the right mortgage.

Why Choose a Mortgage Broker in Bethany Beach

Bethany beach is rising in popularity among those looking for summer homes or second homes. The reason could be that Bethany Beach offers a remarkably beautiful as well as suitable option for such property buyers. Numerous recreational activities, shopping centers and exciting nightlife - all beckon people to come and settle in this beach town.

How can a mortgage broker help you?

If you are also planning to buy a home in Bethany Beach, you can do so with the help of a mortgage broker. You might not know which Bethany Beach lender to approach for the home loan or may not be aware of how to go about the entire process of getting a loan to buy a house. You might end up wasting considerable time, money and efforts in finding the right lender. This is where a mortgage broker, with his numerous connections, can help you.

A good mortgage broker will not only help you reach the right lender to buy your house at Bethany Beach, but also get you lower rate of interest on your loan than what you might be able to negotiate on your own. You might also be able to save some money which you might otherwise be charged in the name of various fees associated with the loan, like processing fee or application fee.

Reliable mortgage brokers like Steve Morgan can help you get the right loan from the right lender at right rates as well as help you understand the entire mortgage jargon and go through the process smoothly, without making you pay where you need not. What more could anybody ask for?

Why Use a Blanket Real Estate Mortgage

A blanket real estate mortgage is the one that encompasses two or multiple real estate pieces. The real estate can can be held as mortgage collateral, but individual slices of real estate could be sold without closing the entire mortgage. For example, if you have three properties at Bethany Beach, you can take a blanket real estate mortgage and may sell off one of them if you need to do so.

It is possible for blanket real estate mortgages to be a great financial tool. Under the right conditions, and when both the sellers and buyers understand the available options, lenders could make effective blanket mortgage loans.

Reason for the popularity of  a blanket mortgage loan

• The requirement of consolidating properties for the purpose of refinance: This is particularly applicable when an investor owns a number of properties which are not financed at the same time and each property has a different mortgage term compared to others. In case of low rates, it can be possible for all the properties to be grouped together  aiming towards a blanket mortgage refinance. Aggregate payments will then be lower. The extra cash left could be utilized by the owner for promoting more investments. 

• Increase the financing for new purchases: If an investor wishes to develop a particular property, and the amount of cash needed is more than what can be borrowed on that property alone, then other properties belonging to that investor can be clumped together to make a blanket real estate mortgage. Necessary funds can be easily raised this way.

It is clear that it makes excellent sense to go for a blanket real estate mortgage. If all criteria are met, all the three players in real estate-sellers, buyers and lenders could consider this option.