ABBA First Mortgage, Inc. will be closed on Monday, July 5th in observance of Independence Day. We will resume normal business hours on Tuesday, July 6th. We look forward to serving all of your mortgage needs… enjoy the holiday weekend!
At ABBA First Mortgage we’ve been hearing a lot of mortgage bankers disparaging mortgage brokers lately. Just yesterday I heard I heard a couple of mortgage bankers on a local radio show spouting the same old tired arguments that we’ve heard before- bankers can get it done and brokers can’t. Bankers are more qualified than brokers. Etc., etc., etc.
The strange thing is that this is more than just trying to sell yourself or your institution… it is simply untrue. Mortgage brokers are without question the most educated, qualified mortgage providers in the country. Don’t just take my word for it though.
One of our very favorite “Tweeps” had this to say on her blog:
If a non-licensed mortgage originator (registered mortgage originator/banker) tries to tell you that mortgage brokers are licensed because they are the cause of the mortgage crisis, please remind them that it was the mortgage banks that created and underwrote the mortgage programs AND it is the mortgage banks who hired their reps to call on mortgage brokers to push their programs.
If Congress truly wanted to serve the people, they would have created the same standards for all mortgage originators regardless of campaign contributions, lobbyist, the type of institution they’re employed by. Consumers should not have to sort out the differences between a Licensed or Registered mortgage originator. ALL MORTGAGE ORIGINATORS SHOULD BE LICENSED.
Couldn’t have said it better myself! At ABBA First Mortgage we often jokingly say, “Why would you work for a bank?” “Because you can’t cut it as a licensed mortgage broker.” Yes, its funny. But its also true.
Give one of our mortgage experts a call to discuss how we may be able to save you money today.
Yes folks, now is the time to refinance your home. But don’t just take our word for it. The Today Show ran this excellent piece this morning…
Visit msnbc.com for breaking news, world news, and news about the economy
We’ve been saying it over and over again. Don’t wait for the rates to get lower. Rates are at historic lows… now! If you’ve been thinking about refinancing, please contact us to discuss how we may be able to save you money today. You can reach us at 866-676-3349.
ABBA First Mortgage, Inc. will be closed on Monday, May 31st in observance of Memorial Day. We will resume normal business hours on Tuesday, June 1st. We look forward to serving all of your mortgage needs… enjoy the holiday weekend!
What is common between oil, Greece and Goldman?
Until now, these names could be fondly linked for their significant contribution to civilization and modern finance. Well, last week witnessed their spill-over effect on the Gulf coast, Southern Europe and financial markets respectively and brought dark clouds over the brighter picture emerging from the global economy at large. Still, there is a lot of exuberance around the world economy these days as financial markets are buoyant, business confidence is rising and global growth is seemingly robust. In its latest forecasts, released on April 21st, the IMF predicts that global output will grow by 4.2% this year on a purchasing-power basis, a full percentage point more than it foresaw six months ago. Other economists go further in predicting growth of more than 4.5%, which is close to the average pace of the boom years before the recession. Back home, American consumers helped propel the U.S. economy at the start of 2010. Gross domestic product grew at a 3.2 percent annual rate in the first quarter as household spending climbed at the fastest pace in three years, as figures from the Commerce Department showed today in Washington. The Federal Reserve Open Market Committee met this week and expressed cautious optimism that economic recovery is solidifying. Hopefully, the spill effect will soon be over.
Crying over spilled milk looks mild when compared to the context of crying over spilled oil. The total bill related to the oil spill drifting toward Louisiana from a well (operated by BP) in the Gulf of Mexico, could exceed $14 billion, analysts said. Since an explosion almost two weeks ago on the Deepwater Horizon rig, a disaster scenario has emerged with hundreds of thousands of gallons of crude oil spilling unchecked into the Gulf and moving northward to the coast. The Coast Guard said Wednesday that the amount of oil spilling from an underwater well has increased to as many as 5,000 barrels of oil a day, five times more than what was originally believed. Efforts to minimize the damage are under way and options under consideration include asking the U.S. military for assistance and burning the oil. Wildlife conservation groups say that the oil is posing a “growing environmental disaster.” Maybe we should consult the folks at Goldman Sachs on how to package this crude and make money doing so.
The ancient Greeks have made a significant contribution to Western civilization. Now it seems to be payback time. After going back and forth for several weeks, Europe is finally racing to Greece’s rescue. The bailout, with the International Monetary Fund and Greece’s European partners, calls for as much as $145 billion in loans intended to stave off an immediate debt default and stop the spread of economic contagion to other parts of the region. Standard and Poor downgraded the country’s sovereign debt to junk status last Tuesday. There is a consensus that the Greek economy is broken and needs major structural reform, and the rescue deal announced on Sunday is intended to give Athens a couple of years of breathing room to change the fundamental pattern of Greek behavior. The government is now committed to contain public sector spending, including pensions and popular social benefits; to raise consumption taxes to record highs; and to promote tax reform, in an effort to shrink the enormous black market, reduce tax evasion and increase government receipts. U.S. Home borrowers have benefited from all of this as mortgage rates have remained low since the Fed exited the stage, and have trended lower over the last couple of weeks as Greece’s economic issues have produced a run into the safe-haven investment of US-backed debt.
Warren Buffett is strongly defending Goldman Sachs Group Inc. on Sunday, saying faulty government regulations are to blame for most of the economic turmoil of the past few years, and not investment banks. Disclosure: he is a shareholder of the bank. When Goldman Sachs went public in 1999, its prospectus announced: “Our clients’ interests always come first. Our assets are our people, capital and reputation. If any of these is ever diminished, the last is the most difficult to restore.” Now Goldman is striving to restore its reputation. Of all of the accusations that really matters, the Securities and Exchange Commission says Goldman misled two clients by failing to give adequate disclosure. At the urging of a hedge-fund, Paulson, it enlisted an insurance firm, ACA, to select a pool of mortgage instruments upon which the security’s price would be based. Goldman argues that Paulson’s role was not material. Many at the firm might wish it could go private again and recover its capitalist vim. But after a decade of huge success, it is now too big to do that. It is also so dedicated to trading that it cannot go back to being just a normal, run-of-the mill bank.
Meanwhile, continue watching the few important economic news updates this week. We have Factory Orders on Tuesday, Non-Farm Productivity on Thursday and the much awaited Unemployment report on Friday. Enjoy the beginning of a warm week ahead.
“The swift increase in rates in the past two days is a result of US debt continuing to increase that appears to have finally softened the demand for Treasury borrowings. The three Treasury auctions this week didn’t get the demand that Treasury debt has seen for the last year. The spike in rates and less demand for US debt in large part was triggered by the health care bill according to traders we spoke with yesterday. As we noted when the bill was passed, it is a budget buster; Obama and Dems tried to spin it as saving $300B on the deficit over the next few years. That may have sold to consumers but the markets didn’t and won’t buy it; the health care bill will add significantly to the deficits over the years…” – David Shirmeyer
We want to make sure that our customers are always positioned to take advantage of the best rates that are available. Consequently, we encourage our customers to “set the table” by first completing a mortgage application on our website. Since there are so many factors that can affect interest rates, like health care, waiting and watching can often cost you money rather unexpectedly.
Today is the day to get the process started. With interest rates still at historic lows, it is worth looking at how you may be able to save money. What can it hurt, right? Please let us show you how we can help… contact us today!
We are pleased to announce the arrival of Randy Harmon as ABBA First Mortgage, Inc.’s newest team member. Randy comes to us with an extensive background in real estate and as a result of his expertise, we are even better equipped to help you navigate the waters of purchasing a home in this difficult market. Randy brings a high level of integrity and enthusiasm to our business and we value his contributions as we continue to expand our operations to better serve you.
Feel free to contact Randy at 866-676-3349 or Randy@AbbaFirst.com.
Finally, the decision to choose a mortgage company for home financing has been made easy again- choose ABBA First Mortgage, Inc. for all your mortgage needs. Please contact us today to discuss how we can save you money on your next mortgage.
Why Use a Broker?
Independent mortgage brokers have had a significant positive impact on the lending industry. Today, the use of a professional mortgage broker is one of the key strategies used by sophisticated borrowers.
What is a Mortgage Broker?
A mortgage broker is an independent real-estate financing professional who specializes in the origination of residential mortgage loans. Mortgage brokers normally pass the actual funding and servicing of loans on to wholesale lending sources. A mortgage broker is also an independent contractor working with (on average) as many as 40 lenders at any one time. By combining professional expertise with direct access to hundreds of loan products, your broker provides the most efficient way to obtain financing tailored to your specific financial goals.
What Do Mortgage Brokers Do?
In the volatile home-lending market, mortgage brokers can serve as safeguards, offering their clients security, safety, and peace of mind. One of the broker’s most important functions is escorting your loan application through the entire process, constantly patrolling the component transactions for possible breakdowns. A professional mortgage broker can wade through the mountains of rate data and program options, researching current market conditions to find the most accurate and up-to-date information about cost-effective loan options.
Brokers Handle the Details!
There are literally thousands of variables that can affect the outcome of your mortgage transaction. That’s why you need a mortgage broker to act as a liaison between the title and escrow company, real estate agent, lender, appraiser, credit agency, the underwriters, the processors, attorneys, and any other services which may affect your transaction.
A mortgage broker also:
ABBA First Mortgage, Inc. is a mortgage broker dedicated to helping you walk through the increasingly difficult process of obtaining a mortgage. Please contact us today to see how we can help make the mortgage process easier for you!
Happy New Year to all! ABBA First Mortgage is continuing to monitor the new legislation that is affecting everyone in the mortgage industry- especially our clients and prospective clients. The parameters of lending are constantly changing, but we still allow our borrowers to obtain the lowest rates and closing costs advertised in the industry. As an example of the changing marketplace, some borrowers were fortunate to lock a 30-year fixed mortgage rate sometime during the last week in November. Very fortunate!. They were probably able to obtain a rate of 4.875% without having to pay high points or origination fees. Contrast that with December 1st, the mortgage market turned into an extremely volatile time with rates worsening considerably. During the month of December ‘09, mortgage pricing deteriorated by nearly 3 points. On December 1st, one could lock a 30-year fixed rate loan with 0 points and a 1% origination fee at 4.75%. On December 31st, the same rate of 4.75% came at a cost of nearly 3 points. Having to pay that many points to get the exact same rate 30 days later, is huge. Not a pleasant situation for one to be in!
What was it that caused rates to worsen so drastically? That is a question debated by many mortgage insiders and no one knows the answer with any degree of certainty. There were signs that the housing market was improving coupled with a steady trend of fewer jobless claims. That is great news for America! But was that enough of an indicator that we, as a nation, were showing a stronger economy? I don’t think so. Although rates have worsened since the lows of ‘09, the new year has been showing that rates may slightly improve!
So, without predicting the future of rates I would like to make a suggestion. Don’t give up! Instead, let’s persevere together. Our objective will be to know when to pull the trigger as we avoid the pitfall of rate deterioration, thereby moving away from your desired objective. However, please remember that although you may qualify for a mortgage today, because of many circumstances beyond your control, you may not qualify for a loan tomorrow. Lender guidelines, home values, job losses, and higher interest rates are some of the many key reasons why you may want to consider financing now before waiting to take advantage of the low rate environment that we are presently in. This is where I may be able to point you in the right direction.
Please continue to follow the rates on our website and call me if you have any additional questions and/or desires as you move forward with ABBA First Mortgage. You can even put your desired rate and term in to the Rate Tracker on our website and when the rate hits that point you will be notified by email. What a great way to follow the market without having to be cognizant of every twist and turn that the mortgage industry may take!
We look forward to working with you and for you. Thank you for considering ABBA First Mortgage, Inc. for all of your mortgage financing needs!
At ABBA First Mortgage, Inc. we are busy preparing for the upcoming mortgage rule changes in 2010. Needless to say, many other mortgage professionals around the country are busy doing the same as well. Our friend and colleague Rhonda Porter shared this poem today. In the spirit of the season, I thought it was great and worth sharing with all of you too!
T’was the week before Christmas
When all through the lands,
LO’s and Closers were wringing their hands.
RESPA Changes are coming,
They all started to worry,
We’d better get trained, and trained in a hurry!
We all kept on hoping
There would be a delay.
But HUD said, “No Way,” it’s all here to stay.
“We love our new HUD
And our new GFE,
Don’t fret, don’t worry, it’s as simple as can be.”
We all shook our heads,
Threw our hands to the sky.
What were you smoking? You must have been high!
You took a one page doc
And changed it to three.
Easier? More simple? How can that be?
The Regs don’t match up,
So now what do we do?
HUD says, “No comment, It’s all up to you.”
No info on TILA,
HMDA, REG B.
We are totally screwed, why can’t they see??
In a time when some borrowers
Think lenders are scary,
You’ve given 3 pages to make them more wary.
This doesn’t make sense,
Not one little bit.
We are all trying hard to not throw a fit.
So we all do our best
To put borrowers at ease.
But make more reform, please, please, please!
Please bring someone in
Who knows what to do.
What is best for both borrowers AND lenders too.
We are all still waiting,
Though not holding our breath
And hoping the government doesn’t “Reg” us to death.
So on this week before Christmas,
I’d like to wish you
Good luck with RESPA, I need it too!
A special thank you to Rhonda Porter at The Mortgage Porter for her permission to re-post this! If you are on Twitter, you can follow Rhonda by clicking here.
ABBA First Mortgage, Inc. would like to wish you a very Merry Christmas and Happy New Year.
Thank you for the opportunity to help you obtain your mortgage financing objectives this year. The trust that you place in us every day is not something that we take for granted! We look forward to serving all of your mortgage needs in 2010.
- The ABBA First Mortgage Team
©2007 ABBA First Mortgage, Inc.
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Local: 910.332.0650
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