Archive for the ‘Mortgage’ Category
Importance of CeMAP Training in Mortgage Industry
August 8th, 2010 | 
Author: Without this qualification you cannot offer advice to public on issues related to mortgage. Mortgage advising is a rewarding career and it cannot be achieved without a certification in CeMAP. Once certified a person can work as a freelancer and they can recommend lenders too.
It is a qualification that measures one’s ability in providing advice to lenders on mortgage related issues. Those individuals willing to serve public in large with accurate investment options can very well go ahead with CeMAP training. It is a course which will help you in leading a fruitful life in mortgage industry. It really doesn’t matters from which educational background you are coming from you are eligible to take up the course at any point of time. For those who are looking for a change in their career or want to build up their career in this challenging and growing industry can do so by enrolling themselves and clearing out the modules of the course.
As there is a huge demand for CeMAP professionals in mortgage industry one must make sure to get trained themselves with reputed concerns only. As the demand is high it has led many individuals to start up a bogus program and mislead the innocent students or customers. Hence to be careful from such traps you are required to carefully evaluate the details of institute that you receive. Prior to your admission in any of the institutes that runs CeMAP training course you must make certain to evaluate and compare the policies of one institute with the policies of another institute. This is essential as you would come to know what one has in its offer and what the other institute is offering and at what price.
CeMAP training is covered up by three modules. Every module is different from each other module. It is designed in such a way so as to cover every topic, rules and regulations and policies of mortgage and financial industry. As it covers every aspects of mortgage industry those who are new to the industry will not find any difficulty in understanding the concepts of the mortgages. Hence this makes any person to enter into this field no matter from what experience they come from and from which educational background.
CeMAP training provides plenty of opportunity to those who successfully obtain certification under it. Employment is always available at all levels for those who are trained and really deserves for the post. As it is a mandatory certification for public advising corporate are always looking out for a deserving candidates so as to provide them an opportunity to work. CeMAP training will enhance one’s knowledge, expertise and capacity in the field of mortgage advisory. As the fees structure of this course is reasonable those are already in the field and are willing to boost up their knowledge and career can very well go ahead with their plans of enrollment.
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Can’t Get Your Mortgage Refinanced? Use These Strategies to Stay in Your Home Until You Finally Can
Not everyone can understand the mortgage foreclosure process. It’s just one of the many reasons why many homeowners are losing their homes. Aside from that, the government said themselves that their Mortgage Modification Program is not working.
It’s easy to see why so many homeowners do not understand the foreclosure process. It’s confusing and not everyone has the patience to take the time to understand it. However, it is a must to know the process so that you can keep your house for years.
With a little know-how, homeowners can enjoy their houses for a long time. Developing a strategy can also help you put the law on your side. There are three simple ways that you can use to avoid foreclosure:
A Home Foreclosure Hearing
Homeowners facing a foreclosure can request for a court hearing. However, not all homeowners can be brave enough to attend a court hearing. Some lose all hope and think that a hearing will just hasten the foreclosure process.
Requesting for a court hearing is actually another powerful strategy. When done properly, you can keep it going for at least a year. You also don’t need to hire a lawyer for this so there’s also no need to worry about additional payments.
Using the powers of a Letter of Hardship
A simple hardship letter may delay or stall the foreclosure process. The hardship letter is what the name implies. It states that you are unable to keep up with the monthly payments because of current financial hardships.
The hardship letter is actually used for refinancing but it can also work in stopping the foreclosure process. Making a carefully drafted letter can convince the lender to consider your request.
Looking for the Fine Print
Silly little mistakes in the contract will let you keep your house for way more than just a year. What you have to do is to carefully read the contract and scan for errors. Contracts that are 2 to 6 years old are the contracts that usually contain more errors.
This strategy is so powerful that the situation can be switched. Instead of the lender taking control over you, you have all the power over him. This strategy is not known by all homeowners because they are being kept secret by mortgage companies.
Most lawyers also know this type of strategy but are also keeping quiet about this. It’s because they earn money by charging huge amounts of money to their clients who are fighting the foreclosure process. Getting a lawyer is not necessary for this.
Using these three simple strategies can help you fight foreclosure and will let you keep your house for a year or even longer.
What Are My Chances For Getting a Mortgage After Bankruptcy?
Your chances of getting a mortgage after bankruptcy are mighty good in the year 2010 and beyond. The reason for this is simple, sweeping bankruptcy as well as mortgage changes have made it far simpler to receive a mortgage these days. It is very possible to get a mortgage after bankruptcy as there are lending institutions that specialize in providing these types of mortgages for individuals who have suffered through a bankruptcy. These lending institutions are well-versed in the industry of offering mortgages and finding the money to pay for that 3/2 on Main Drive.
The best way to see if you qualify for a mortgage after bankruptcy is wait 24 months before you do anything. This is the time in which the individual bankruptcy enrollee can really get their life together and create a budget and stick to it. As I have deep experience with bankruptcies by having previously filed. After successfully, saving my home and most of my assets to a Chapter 7, I am speaking from experience.
The chances of getting a mortgage post-bankruptcy have never been better as the Obama Debt Relief Program has opened many doors for the ‘American Dream’. It is in the waiting period of those 24 months where you can apply for a mortgage and show the lenders just how honest and forthright you have been in paying back debts and not creating new and bad credit files.
This is highly important to demonstrate to the lending institutions and something that you will want to really concentrate on from here on out. For those that are sick and tired of watching the hard-earned rental money fly out the window, it is time to get serious about looking for a fine mortgage. There are a few ways that you can improve your chances on landing a mortgage after bankruptcy if you follow these easy instructions. Firstly, you will need to go through the ‘waiting period.” Please make great financial choices during this time and only pay back passed-credit and by all means do not add on any more new-credit files, during this crucial time.
Once you get past that 24 month long waiting period, you will see blue skies opened up and a whole new world of American homeownership! Do not be dismayed by fear. You can get a home with a bankruptcy since the very institution that is bankruptcy desires to reform and reward that reform with a home. The nay-sayers will tell you that it will be nearly-impossible to find financing for the home if you can even find a mortgage broker to accept you at all! The truth is that in order to receive a post-bankruptcy mortgage you may have to pay a higher percentage for a down-payment.
Of course if you want to pay up to 30% there will be a line of lenders begging to take the down -payment money, greedily. Mortgage loan brokers work for the banks and need to move property and in a big way each and every month. It is in these little caveats of opportunity where you can find a dream home even after you have been dismissed on a discharge for bankruptcy and are sitting on $3700 worth of disposal monthly income that is burning a hole in the pocket.
Underwater Mortgage Tip – Get $3,000 From the Government
Do you owe more money on your house than the property is currently worth? If so, you are not alone, as Bloomberg.com has reported that approximately one-fifth of American homeowners are currently underwater in their mortgages. Although many of the homeowners would like to work with their lenders to refinance their mortgages, financial institutions will not work with them. In direct responses to the crisis and to curb the nation’s high foreclosure rate, the government is offering up to $3,000 worth of assistance to underwater mortgage holders who choose to make a “graceful exit” from their investment.
Underwater mortgage holders have limited strategies to get out of their financial quandaries. The most popular options include:
- Deed-in-Lieu of Foreclosure: Typically, a borrower must communicate with their lender and do their best to sell the property under the short sale term guidelines. However, is that fails the borrower can voluntarily transfer ownership of the property to the lender, pending their approval.
- Short Sales: Underwater mortgage holders may opt to sell their property at a price lower than what is due on the mortgage. A lender must approve this transaction and the process can take several months.
Either scenario leaves the homeowner and there family without any shelter, and that is where the $3,000 worth of assistance will come into play. Under the Home Affordable Foreclosure Alternatives (HAFA) Program, former homeowners can qualify for the assistance that has been designed to help them transition into more affordable housing alternatives.
As with any government assistance program, the homeowner must meet certain criteria in order to get the financial aid including:
- Not qualifying for the Home Affordability Modification Program
- Consumers must first attempt to complete a trial loan modification program
- Must default on at least two payments under the HAMP modification program
- Or work directly with lenders on a short sale or a deed-in-lieu
Mortgage Brokers Rise From Deregulation
Competition setbacks in the banking industry have lifted rates because they have allowed the major four banks to dominate the market, driving out smaller players. These include Westpac’s takeover of St George and CBA’s takeover of BankWest.
Also, due to the credit squeeze, the major four banks have almost entirely pushed all other players out of the home lending market. But there were still 13,690 finance intermediaries in Australia – 13,690 people and organisations, other than banks, who arrange mortgages in June 2008 (Mortgage and Finance Association of Australia figures). Of those, 10,000 were individuals.
Now the Federal Government is pumping an extra $8 billion into the mortgage market to “support competition”. How and why does this work?
Non banks (mortgage managers) entered the mortgage market with interest rates well below those being offered by banks and eventually established a market share of about 15%. Banks reduced their interest rates in order to compete and commenced internal operational reviews, which resulted in some 2,000 branches being closed and many mortgage lending officers/bank managers being retrenched. Entrepreneurial and consumer centric operators sensed the pent up demand of consumers for nimble businesses which could best represent their borrowing interests. Thus ‘mortgage brokers’ as we now know them, established themselves.
Mortgage lenders in Australia rarely deal with brokers that cannot submit a high volume of successful home loan applications each month. For example, a particular bank or non-bank lending institution might refuse to deal with an entity that cannot close at least one million dollars worth of mortgages with them on a monthly basis.
For most mortgage brokers this may not seem like a daunting task. One million dollars worth or home loans may constitute anywhere between one and five successful applications. Most brokers would be able to close at least that much business each month and would therefore be able to do business with the particular lender.
Brokers are in business to offer choice to their customers. In Australia, brokers offer mortgage products to their clients from up to around thirty different lenders.
Despite the credit crunch, you can’t lump all non-bank lenders into one category. For example, Wizard Home Loans are part of General Electric. Wizard does not fund through the capital markets using securitisation and has not increased interest rates outside the normal RBA cycle due to solid funding. Meridian is funded by Challenger who raises funds through the securitisation process. The largest portion of Resi’s book is also funded by Challenger, with Macquarie also a contributor of funding.
Most mortgage brokers receive their income by way of commissions awarded by lenders for successful home loan applications. If they use a wholesaler (aggregator) rather than approaching a non-bank lender or bank directly they surrender part of their commission in return for the benefit of using an aggregator. There may be additional franchise fees payable if the broker is a franchisee, although this arrangement will vary from franchise to franchise.
How Do Contract Mortgage Processors Comply With the New State Licensing Requirements?
There are thousands of mortgage processors acting on a contract basis in the United States. The SAFE Mortgage License Act that passed in July 2008 requires contract mortgage processors to be licensed by July 2010. How does the new law affect contract mortgage processors? Obtaining mortgage loan originator (MLO) licenses in multiple states can be very costly. What can a contract mortgage processor do to comply and not break the bank?
Let’s first look at the definition of a contract mortgage processor under the SAFE Mortgage Licensing Act. The Act defines a mortgage processor as an individual that gathers documents from borrowers and submits the documents to a lender, but does not take residential loan applications. The Act then goes on to state that a mortgage processor is exempt from mortgage loan originator licensing as long as they are a w-2 employee of just one mortgage company. Thus a mortgage processor that is 1099 and/or processes loans for more than one mortgage company must be licensed as a mortgage loan originator (MLO) and is considered a contract mortgage processor. If you are defined as a contract processor, then what are your options for obtaining a license in each state you process loans?
Option 1
You can choose to become a w-2 employee of just one mortgage company and process mortgage loans for only that one company. This is probably not the ideal situation for most contract mortgage processors, but it may be the only option for some. The cost of licensing can be expensive and a license is required in each state you process loans. Also, as we will discuss shortly, you may need to obtain a mortgage company license too. This is even more costly than obtaining just the mortgage loan originator license.
The down side to this option is obvious. You can’t continue to process mortgage loans for your other customers. Also, it may be hard to find a company that will hire you on a full-time w-2 basis. Most smaller companies just do not have the resources to maintain a full-time processor on staff.
Option 2
You can choose to obtain a mortgage loan originator (MLO) license in each state you want to process loans in. Then you can have your primary customer sponsor those mortgage loan originator licenses. To get a mortgage loan originator license, you will need to complete 20 hours of education, two tests, fingerprinting, credit check, and pay an application fee between $100 and $400 per state. Then you can have your primary customer sponsor your mortgage loan originator license. This will allow you to process loans for your primary customer on a 1099 contract basis. The problem is that if you want to have other customers, you would have to set up your contract between your sponsoring primary employer and the other customers. So when you want to get paid by your other customers, the other customers would have to pay your primary customer and then your primary customer could pay you. This obviously poses a huge problem for most contract processors since it is very unlikely you will find a primary customer that will be willing to sign processing contracts with your other customers. However, this is how the states are saying it must be done. Some states may be implementing this slightly differently, so I recommend contacting the state or a licensing service to determine how the state is interpreting these requirements.
Option 3
You can choose to obtain a mortgage company license and a mortgage loan originator (MLO) license in each state you want to process loans in. This is the ideal situation, because then you do not have to be limited to just one employer as in option 1 and you do not have to have a primary customer sponsor you and pay you for your other customers work as in option 2. However, this is the most costly option. It usually costs about $1,000 to $3,000 to apply for a mortgage company license per state. And some states have net worth requirements, experience requirements, and bonding requirements that can be difficult barriers to overcome.
If you are able to go this option, you will actually be able to avoid the mortgage loan originator licensing in many of the states by paying yourself as a w-2 employee of your contract processing company, but the costs will still be much higher. If you are thinking of going this way, you will want to get licensed only in states you plan on processing ten or more loans in each month. In fact, most people that go this route will benefit from having a few contract processors work with them to offset the costs.