Most brokers understand that selling to referred clients and selling to cold prospects are so different that they can’t be compared fairly. Generating referrals, however, can be a struggle for many brokers. But if you can offer your clients a service with inherent value, you may see your referral business boom.

Most mortgage clients understand that their credit report influences their loan and its terms. For many, then, credit review and improvement can mean the world — not to mention a favorable mortgage.

For brokers, credit proofreading — or credit review and rescoring — can be an effective referral-generating opportunity. This service helps you identify errors in your clients’ credit reports, as well as ways they can correct the errors.

In fact, many FICO scores could be wrong. A 2004 U.S. Public Interest Research Group report found that 25 percent of credit reports contain “errors serious enough to deny consumers access to credit.” This could mean that one of in four
applicants may be turned down because their credit score was wrongly and unnecessarily lowered in error.

Another type of error that can deflate FICO scores and that often is more damaging involves credit-use. These errors  often appear in different forms, which makes them hard to detect. Worse, consumers who seemingly make good short-term financial decisions inadvertently commit credit use errors without realizing it.

In fact, many consumers use credit in ways that needlessly lower their scores. Some have too many credit cards. Others don’t have enough. The same goes for credit balances. It all depends on how the credit fits into their profiles and how Fair Isaac and Co. interprets consumers’ new credit.

Mortgage brokers can help their clients identify these errors, however, and work toward reconciling them and increasing their credit scores. To offer a credit-review and rescoring service, you’ll likely want software that detects any hint of data or usage errors within a credit profile. The software scans an applicants’ entire credit profiles each time you order a credit report. Results are then neatly categorized by the type of error, with credit-use errors separated from
data errors.

Once detected, these tools tell you how to fix the errors and how many more points your clients will get by doing so. With the help of a credit-reporting agency, your clients often can see higher credit scores in just three days. When you position your credit review in a way that presents you as a qualifying expert, you’re moving down the referral runway. Taking the next step and demonstrating that you can improve your clients’ credit health can enhance your referrals.

People are concerned with every detail of their financial lives, and with credit proofreading, their credit profile becomes the one financial area in which you can help. And because healthier credit profiles often mean higher credit scores and better mortgage terms, many clients go out of their way to send you their friends and family members.

Mortgage rates have have a rough week, here is a wrap up of the weeks financial news.

The Financial Markets Weekly Wrap Up

Yet another exciting week in the bond market, and many are left scratching their heads as to where we go next.  This was a busy week for financial news, and when there are reports coming out, the markets lie with baited breath for guidance on how to react.  This week that reaction was "Run for the hills!".

Tuesday May 27th

The Consumer Confidence report came out lower than expected, and the New Home Sales report came back higher than expected.  Overall it was a good news bad news day, and there was not much movement in the markets.  Although they did head south overall for the week.

Wednesday May 28th

The Durable Good report came out slightly better than expectations, but fears of inflation from comments made by the federal reserve led bonds to drop below the 25day, 50 day and 100 day moving averages.

Thursday May 29th

Yesterday, the markets reacted negatively to the Gross Domestic Product report and the Jobless claims report and drove mortgage bonds below the 200 day moving average.  This was significant because only 3 times in the last 3 years have bonds made such a decisive move across the 200 day moving average.

Friday May 30th

Today, bonds traded up slightly from yesterday, but still have not come up above the 200 day moving average.  This is particularly concerning because a quick rebound would have been less damaging to the market as a whole.  The longer they stay below the 200 day moving average, the more likely that rates are not just up on a short term basis, but rather, they may be trending that way long term.

Overall, it has been a bad week for those in the mortgage industry, and those who are shopping for a mortgage loan right now.  Based on the shear uncertainty in the market, I would recommend locking your rate to save from potential losses on your purchase loan.  If you are refinancing, make sure that you have locked to maintain the benefit of the refinance to begin with.

While property values continue to show declines nationally; some areas are showing meaningful signs of a bottom.

Now is the time to shop.

Rates are bottoming also, as increasingly The Fed turns its focus toward inflation concerns.

Now is the time to shop.

First Stop - Pre-Approval

In busy markets the best practice of real estate agents is to have the prospective buyer speak with a Lender before seeing any property. First, this puts the buyer into the right price range for their budget; and second, it makes for a more efficient home search.

The real values in the market place are moving fast. Over priced homes where the seller is holding out and hanging on to a market-gone-by are the homes that are languishing and giving the impression of a sluggish market.

Unfortunately, some agents, (even with $4/gallon gas) are so excited to have a warm body in the car, that they skip the pre-approval process. This can end in much heartache when the home one falls in love with is beyond one's loan qualification; or worse, down the road the payments overwhelm the new owner's budget.

It's simple to get pre-approved, with an actual loan approval based on income and credit. The rest of the qualifying is reviewed once a property is found and put under contract and appraised. This actually assists in the price negotiation, because the buyer is ready to move quickly to closing.

Next Stop - The American Dream

It's not corny- owning your home gives you a sense of pride, security, and an investment foundation for the future.

It is a great time to look at real estate- just make sure you get the process in order to make sure your dream doesn't turn into a nightmare.

Mortgage rates get their cue from the mortgage backed security bond market. When bond prices go up, mortgage rates go down. When bond prices fall, mortgage rates go up. There are several items that influence bond prices including economic reports, inflation, more investment into stocks, and “technicalities” of trading such as the 25 day, 100 day, and 200 day moving average

These “moving averages” act as either a key level of support or a level of resistance for bond prices. The 200 day moving average is one of the strongest levels. Since the mid 2007, the 200 day moving average has been a key level of support for bond prices that have kept mortgage rates at 6.250% or lower.

I mention this because mortgage bonds closed at the 200 day moving average on Wednesday, and closed well below the 200 day moving average on Thursday. What had been acting as a level of support is sadly becoming a level of resistance for bond prices.

This is important because bonds have only drifted below this level on three separate occasions within the past three years. The last time bond prices broke through the 200 day moving average, it took an onslaught of bad economic news to push it back above that line. How bad was the economic news? The poor economic reports that helped break through the 200 day moving average forced the Federal Reserve to begin cutting the Federal Funding rate back in September 2007.

There will be a noticeable impact on interest rates. The rates for a 30 year fixed mortgage have traded in a range of 5.625% to 6.000% over the past 11 weeks. With the price of bonds dropping below the 200 day moving average, expect the new trading range to begin at 6.125% or 6.250%.

The next couple of days are crucial. If bond prices can rebound quickly, they may be able to push through the 200 day moving average and make it – once again – a floor of support. As optimistic as that sounds, the trend direction for bond prices is down. Barring a timely reversal, bonds and mortgage rates are going to be trapped below the 200 day moving average, and we will see a shift in the market towards higher interest rates.

Clay Jeffreys is a Mortgage Consultant with Hillside Lending, LLC and writer for “Blog Pertaining to the Acquisition of a Mortgage to Purchase a Domicile.” Hillside Lending seeks to provide mortgage brokerage services with the highest standards of service, care, honesty, integrity and value; concentrating on owner-occupied, residential financing. For more information about available programs and interest rates, please visit www.hillsidelending.com.

This blog is posted by www.FloridaLoanSpecialist.com for your convenience. Need Financing? Call Christina Felgenhauer @ 239-699-1462 or email Christina@FLS-Service.com  Professional, Fast, Reliable!!

May 29, 11:41 AM EDT By MARTIN CRUTSINGER AP Economics Writer

WASHINGTON (AP) -- Rates on 30-year mortgages jumped this week to the highest level since mid-March as investors began to worry about what the Federal Reserve will do to combat growing inflation pressures.

Freddie Mac, the mortgage company, reported Thursday that 30-year fixed-rate mortgages averaged 6.08 percent this week. That was up from 5.98 percent last week.

It was the highest level for 30-year mortgages in 11 weeks, since they averaged 6.13 percent the week of March 16.

Analysts attributed the increase to rising concerns in financial markets about what the Fed might do to battle increased inflation pressures. Financial markets this week pushed the yield on 10-year Treasury bonds above 4 percent for the first time in five months.

"Mortgage rates drifted up this week over market concerns that the Federal Reserve Board may raise short-term interest rates later this year," said Frank Nothaft, Freddie Mac's chief economist.

Richard Fisher, head of the Fed's regional bank in Dallas, said Wednesday night that if inflationary developments continue to worsen then "I would expect a change of course in monetary policy to occur sooner rather than later, even in the face of an anemic" economy.

Comments such as those have prompted concerns among bond investors that the Fed, which cut rates aggressively starting in September, may switch course and begin raising rates later this year.

Most other types of mortgage rates showed increases this week, according to the Freddie Mac survey.

Rates on 15-year fixed-rate mortgages rose to 5.66 percent, up from 5.55 percent last week.

The five-year adjustable-rate mortgage edged up to 5.62 percent, compared to 5.61 percent last week. However, the rate on a one-year adjustable-rate mortgage edged down slightly, dropping to 5.22 percent, compared to 5.24 percent last week.

The housing market is facing numerous headwinds at present from slumping prices, which are keeping potential buyers on the fence, to rising mortgage defaults which are dumping more homes on an already glutted market. In addition, many banks have raised their lending standards in response to a surge in mortgage defaults.

The mortgage rates do not include add-on fees known as points. The nationwide average fee for 30-year and 15-year fixed-rate mortgages and one-year adjustable-rate mortgages was 0.6 point. The five-year ARM had an average fee of 0.5 point.

A year ago, rates on 30-year mortgages stood at 6.42 percent, 15-year mortgage rates averaged 6.12 percent, five-year adjustable-rate mortgages were at 6.19 percent and one-year adjustable-rate mortgages were at 5.57 percent.

Source: ap.org

It looks like homeowners who choose to walk away from their property by giving the mortgage company a deed in lieu of foreclosure have finally caught the attention of senate. If you're new to my site check out my article: 'Home Ownership and Social Responsibility' which also go over this topic, you can also read todays Realty Times article by Peter G. Miller 'Senate Takes on Mortgage Walk Aways'

It looks like Angelina Jolie and Brad Pitt have decided to give birth in France this time around (the twins are due this summer). At the Cannes Film Festival, Jolie told reporters, "We are certainly thinking of France."

According to French newspaper Nice Matin, the dynamic duo just signed a lease on a $70 million chateau on the French Riviera.

The pre-Roman estate sits on 1,000 acres in the South of France and is called Chateau Miraval. Let's just say it ain't shabby. It has 35 bedrooms and boasts a vineyard, lake, moat, forest, and 20 fountains. There are both indoor and outdoor pools, his-and-hers gyms, and an enormous banquet hall. The driveway alone is three miles long.

You know it's big when they need to take aerial views to show it all. Take a look!

Read the rest of this entry »

The demand in property market seems to be hitting a standstill. Latest Property reports suggest that high home loan rates and an indecisive market has caused a dent in the property demand.

Property Developers are now offering gifts and incentives to home seekers. Many are offering flat EMIs and some are offering no EMIs till possession. Earlier, Banglaore-based Saffron developers had offered a free SX4 car with purchase of a flat worth Rs 60 lakh.

Will all these lucrative offers drive property sales? Will home seekers be driven by any of these offers? Will these offers drive people to re-consider Property Buying decision?

The local market will witness a slowdown in development speed due to the low level of equity for real estate investments and due to the sentiment of distrust triggered by the international financial crisis. Developers will see lower development margins, not more than 17 to 20 percent of the value of the building, said Stefano Albarosa, CEO of Cefin Group, which invests in real estate locally.

While the speed of development will be altered, the ability to make a fast exit will also be shattered, and developers should be prepared to hold more onto a project before selling, said Albarosa. This will be caused by the same late effects of the financial crisis, which put a brake on real estate deals in Romania.

The sentiment of slowdown has been felt by players on different levels on the market, which went through a rather dead first quarter of the year. Few transactions have been closed since the beginning of the year, with recent buyers like Deutsche Bank’s RREEF and Natixis’ AEW Europe having performed 78 percent of the deals, according to Viorel Lacatus, investment director with Atisreal Romania.

There are less players looking for property on the Romanian market than they used to be one year ago. Some players, such as the listed funds, are even totally out of the market, says Gijs Klomp, managing director of ING RE Investment Management in Romania. Countries are affected because of the sentiment of crisis, not because of fundamental problems, says Klomp. The market has turned from a borrowers’ market into a landlords’ one, he adds.

While many owners need to sell fast and less equity is available out there, the yields in the region have slighly increased, so Romania needs to offer more than it currently does in order to attract investors currently deciding where in the region to invest. Temporarily, Romania is less attractive for shareholders of real estate investment companies than it used to be, but the country will be re-priced, says Klomp.

The effects of the crisis has also led to investments in Romania competing with investments on more mature and attractive market, which used to be more expensive, but which were re-priced following the credit crunch. “Investors can now buy offices in London for the same price America House in Bucharest was sold last year,” says Klomp. AEW Europe bought America House from developer GTC last year for EUR 120 million.

Corina Saceanu