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Tag: application

Should We Bring Back Ozzie & Harriet Loans?
By September 26, 2008 0 Comments Read More →

Should We Bring Back Ozzie & Harriet Loans?

It was in 2005 that Bill Dallas — then president and CEO of Ownit Mortgage Solutions, at the time on one of the 15 largest subprime mortgage lenders in the country — said “underwriting guidelines developed in the 1950s don’t address the needs of today’s homebuyers and brokers. Loans that met the needs of Ozzie […]

Posted in: Toxic Loans
Foreclosure Numbers at New Highs: Are Toxic Loans To Blame?
By September 19, 2008 0 Comments Read More →

Foreclosure Numbers at New Highs: Are Toxic Loans To Blame?

Foreclosures used to be a rarity and for the most part that’s still the case. As of the second quarter of 2008 only about 2.75 percent of all loans were in the process of being foreclosed, according to the Mortgage Bankers Association. That term “in the process of being foreclosed” is important. Neither borrowers nor […]

Posted in: Toxic Loans
Six Steps to Simple Refinancing
By September 17, 2008 0 Comments Read More →

Six Steps to Simple Refinancing

In the new mortgage era — the one which requires real income and great credit — you know with absolute certainty that lenders will want an assortment of paperwork to complete a loan application. Given this inevitability do not fight the monster, embrace it: Get a file folder, a big one, and use the six-step […]

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Should Lenders Dump No-Tell Loans?
By September 16, 2008 0 Comments Read More →

Should Lenders Dump No-Tell Loans?

For many years the lending process has become less and less rigid. In the general case this is a trend to be welcomed, but the question to be asked is this: Have we gone too far? With “stated income” loans borrowers tell the lender how much they make but the lender graciously does not verify […]

Posted in: Toxic Loans
Has Your Credit Changed?
By September 15, 2008 0 Comments Read More →

Has Your Credit Changed?

It’s a combination car, pick-up truck, and SUV. You really want it. The features are great, the style is the latest, and it’s affordable — after the downpayment the cost is only $300 a month. “Would you buy this car today if I can include the genuine wood grain, rubberized, side moldings?” asks the salesman. […]

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Should Real Estate Brokers Be Fingerprinted?
By September 14, 2008 0 Comments Read More →

Should Real Estate Brokers Be Fingerprinted?

There’s little doubt that in the past few years we have become far more security-conscious as a nation. Hidden and not-so-hidden cameras are everywhere while metal detectors can be found at airports, government agencies and even public schools. Given this trend it’s not surprising that security is a growing issue within real estate. Theft is […]

Posted in: Library
Will Regulators End Liar Loans?

Will Regulators End Liar Loans?

With foreclosures rising and home prices falling, could something other than supply and demand be moving the real estate market? That’s a question increasingly being raised in Washington, where a new interest in mortgage fraud is beginning to emerge. “Mortgage fraud takes many forms,” says Jim Saccacio, Chairman and CEO at RealtyTrac.com, the nation’s largest […]

Posted in: Toxic Loans
Why Do Lenders Want IRS Form 4506?

Why Do Lenders Want IRS Form 4506?

Form 4506 can be used to order past tax returns from the IRS. In effect, the lender may elect to check and see if the application information provided by the borrower matches the forms sent to the IRS. In the usual case, loans are bought and sold in large quantities or “packages.” Some loans will […]

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Why Do Lenders Want Tax Returns?

Why Do Lenders Want Tax Returns?

There are several reasons why lenders want to review tax returns for the past two or three years. First, they want to assure that the income you claim in your loan application is also the income you report to the IRS. Second, if you are self-employed lenders may be able to “add back” items which […]

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Can I Get A Mortgage If I have Tax-Exempt Income?

Can I Get A Mortgage If I have Tax-Exempt Income?

Lenders have a wonderful expression which explains how non-taxable payments are handled — they are “grossed up.” This means that if you take in $1,000 in tax-exempt payments and state and local taxes are 17 percent, it would take an income of $1,204.82 to have a $1,000 income after taxes. The lender would compute the […]

Posted in: Library