Author Archives: blogger

Mortgage Call Capture For Quality Leads And Building Profitable Relationships

Posted on by

Mortgage brokers and realtors often work together to generate the leads they need to operate successful businesses and offer more services to their clients. For example, realtors often have a list of excellent mortgage brokers handy, so that if their clients ask about funding, they can direct them to professionals with excellent reputation.

Conversely, mortgage brokers often have clients come in to get pre-approved for a home loan before they even begin looking. By being familiar with the latest property listings, and by knowing the realtors in town, mortgage brokers can help their clients find the ideal home for their needs.

Both can also generate leads by using tools such as mortgage call capture systems. In a system like this, a toll free number would be advertised, which callers would use to hear instant, pre-recorded information on a variety of mortgage and real estate information. This information could cover a variety of topics, such as local property listings, how to prepare a home to sell, information about mortgage loans, and other real estate and mortgage information.

No matter what option the caller chooses, the mortgage call capture system records their contact information, as well as the extension they choose. The system then sends notification to the real estate agent, the mortgage broker, or both if they are working together, so that the appropriate follow up can be done. Let’s take a look at a real life example.

Bonnie is a realtor who generally has an average of ten listings. She has worked with Susan, a local mortgage broker, on many home loans and appreciates her hard work and integrity with her customers. She approaches Susan to set up a mortgage call capture system with her, to generate leads for both of them. Susan agrees, and they decide to record a personalized message, and allow the caller to choose from different options.

The options for callers could include descriptions of a variety of mortgage lending topics, current rates, and a list of services offered by the mortgage broker. After each topic description, the caller can leave a message, receive a fax, or talk with Susan for more information.

Additionally, each of Bonnie’s listings can be highlighted on the system, accessed by choosing the appropriate extension. The extensions will be advertised alongside each property in every marketing piece Bonnie does – sign riders, flyers, postcards, Home magazines, etc. After each audio tour, the caller can then choose to leave a message, receive an instant fax each listing’s specs, talk with Bonnie about the listing, or talk with Susan about funding.

They also decide that no matter who calls and what options they choose, each will receive an email with the information, so that they can follow-up on their own end. This is just one example of how a mortgage call capture system can help realty professionals generate leads and work together. However, there are a lot of ways that brokers and agents choose to customize their system to make it fit their needs making them a flexible lead generation and marketing tool.

What Is A Reverse Mortgage

Posted on by

What is a reverse mortgage? This is a question that is being asked by a lot of people. The answer is that this type of mortgage is for anyone that is over sixty two years of age that owns their home free and clear.

These are the two main factors that determine whether you are eligible for reverse mortgage or not. Basically you can get cash from the equity you have in your home. You can get a small loan or a larger sum of money depending on what you need to survive everyday easier.

This type of loan was put into place to help the elderly survive when their income becomes reduced drastically and most are unable to work.

There are two ways that the money can be paid to you: in one lump sum or as scheduled payments. There will not be a monthly payment that is required for getting money this way. The payments will begin only when one of three things happen which are below:

1. When the person who owns the home passes away and the house is sold on the market. Selling the house will ensure that the loan is paid off using the proceeds of the sale.

2. If you decide to sell the home before passing away then the same will hold true. The loan will be paid off using the proceeds from the sale of the house.

3. When the person who owns the home has to be put into a full time care facility the loan will be need to be paid in full. Again this can be achieved by selling the house. You also have the option with this to rent or lease the property instead and then the payments will be made to the holder of the loan.

Before deciding to get this type of mortgage loan you need to do your research on it and be sure you understand as much as you can about it so you can decide if this is your best solution to secure the money you need to survive. Also talk to a mortgage lender to help you make the smartest choice possible.

Now that you know the answer to the question what is a reverse mortgage; you will be better able to make an informed decision to help you in your time of need. If you are over the age of sixty two and own your home free and clear than taking advantage of this type of mortgage could mean the different between you surviving easily or struggling to survive.

Considerations When Purchasing Fujitsu Heat Pumps

Posted on by

New Zealanders have faced price increases in power of over 50% in the last few years at the same time as there has been restrictions on the type of heating that can be used in most parts of the country. This has lead to the increased popularity of heat pumps because they are 300 to 400% efficient whereas electrical heating is normally 100% efficient. This means a saving of about a third in the amount of electricity required. Heat pumps are lot less costly to operate because they do not warm air but transfer the warmth from air outside the building to the air inside the building. This is possible even at very low temperatures. The only power that is required to run heat pumps is for the fans and the compressor.

You can expect even small heat pumps to provide a lot of heat. 2300 watts is as much as you can get from a fan heater of the plugged in variety whereas the least powerful Fujitsu heat pumps can put out 3600 watts. So the even the smallest models generate much more warmth and at the same time are much cheaper to operate.
Fujitsu Heat Pumps are easy and inexpensive to install. A straightforward system should not take more than six hours but more complex systems will take longer depending on what is required. The cost varies from around $2500 and $5000 per unit and is dependent on size and features. This normally includes installation and GST. Installing the correct size and model of heat pump to fit the heating area is vital.

Getting hold of an installer who is Fujitsu Accredited is step number one. He should be capable of advising you which heat pump will be best for you. It is important to match model and system to your unique situation as this affects the efficiency of the heat pump. You may buy a smaller unit only to find that it is running constantly in cold weather and your electricity bills are much higher than expected.

Some local bodies offer a grant to assist with the change from polluting forms of heating to cleaner heaters such as heat pumps. Ask you Fujitsu installer about how to apply for those funds. If your chimney has been damaged by an earthquake you will probably also qualify for the installation of a heat pump to replace it. Once again ask your supplier of Fujitsu Heat Pumps about how to apply for this.

Fujitsu have brought out special software called EzeCalc which can calculate which size heat pump is needed to heat the area in question. The expertise and experience of the accredited installer combined with the software will ensure that you buy the heat pump system that is best suited to your unique needs.

Identifying And Avoiding Mortgage Fraud

Posted on by

Recent financial industry distress publicly attributed to widespread mortgage loan defaults has generated mounting pressure on federal prosecutors to increase investigations into incidents of mortgage fraud across the nation. On February 6, 2004, CNN reported that the FBI warned that mortgage fraud was becoming so rampant that the resulting epidemic of fraud could trigger a massive financial crisis. Mortgage fraud has now become so prevalent that the United States Department of Justice and the Federal Bureau of Investigation have been forced to create an entirely new category for tracking these cases. According to a CBS news report, the number of FBI agents assigned to mortgage related crimes increased by 50 percent from 2007 to 2008. Prosecutors and investigators on both the state and local levels are also feverishly organizing task forces and creating real estate fraud departments to counter this burgeoning wave of crime.

CRIME & PUNISHMENT

The primary focus of these investigations appears to be on borrowers, investors, mortgage brokers, appraisers and real estate agents. Some of the charges levied against these perpetrators have included making false statements on loan applications, bank fraud, mail fraud, wire fraud, conspiracy to launder funds and a number of applicable state laws. However, the primary legal vehicle implemented by federal prosecutors has been section 1014 of Title 18 of the United States Code which declares mortgage fraud as a federal crime encompassing anyone who willfully overvalues any land or property, or knowingly makes any false statement, for the purpose of influencing a financial institution upon a loan application, purchase agreement or other related documents. A violation of the federal mortgage fraud law (18 U.S.C. 1014) alone is punishable by up to thirty years imprisonment and a one million dollar fine.

MORTGAGE FRAUD SCHEMES

The most effective way to avoid prosecution for mortgage fraud is to identify mortgage fraud schemes prior to any actual involvement. Most mortgage fraud offenses fall into one of two general categories: fraud for housing and fraud for profit. Fraud for housing often involves fraudulent acts committed by a borrower, often coached by his or her mortgage broker or real estate agent, to obtain a loan for the ultimate goal of acquiring a home. These fraudulent facts generally pertain to the falsification of facts and documents during the loan application process to enable the borrower to obtain financing that he or she would otherwise not be qualified to receive. Conversely, fraud for profit typically involves a more concerted plan to abuse the entire real estate transactional process for pecuniary gain.

FRAUD FOR HOUSING

Income Fraud

This occurs when a borrower inflates his or her amount of income to qualify for a loan or a larger loan amount. Although recent reductions in the use of stated income or no-doc liar loans has somewhat curbed income fraud, daring borrowers are increasingly generating more fraudulent documents to falsify income. Information technology and photocopy equipment have become so advanced that very convincing documentation, such as income statements, savings accounts and tax returns, can be produced on demand.

Employment Fraud

In order to justify overstated income in a loan application, borrowers will claim self-employment in a non-existent company or represent having a higher position in a company than the borrower actually holds.

Failure to Disclose Liabilities

The debt-to-income ratio is an important part of the loan underwriting criteria used to determine a borrowers eligibility for mortgage loans. Consequently, borrowers will conceal financial obligations like newly acquired credit card debt, other mortgages, and private loans to artificially reduce their debt-to-income ratios.

Occupancy Fraud

Generally occurs when a borrower states on a loan application that he or she intends to occupy a property as a primary residence to secure a lower interest rate when the borrower actually intends to obtain the loan to acquire an investment property.

FRAUD FOR PROFIT

Equity Skimming and Cash-Back Schemes

A straw buyer is typically implemented as the buyer of the property due to his or her creditworthiness and resulting ability to obtain favorable financing. Unknowing straw buyers can be manipulated by mortgage brokers and real estate agents to purchase a property as a primary residence with the broker or agent later serving as a property manager to collect anticipated rental income. After the escrow closes and the mortgage and real estate brokers collect their commissions, they proceed to collect rental income and fail to make the mortgage payments.

Complex schemes can involve a knowing straw buyer, an appraiser who intentionally overstates the propertys value, a dishonest seller that intentionally inflates the selling price, and a dishonest settlement officer that makes undisclosed disbursements from the loan proceeds. All of these conspirators collaborate to collect portions of the proceeds of an inappropriately large loan before eventually letting it go into default.

Appraisal Fraud or Price Inflation

This fraud occurs when a dishonest appraiser intentionally overstates the value of a property or when an existing appraisal is altered to reflect a higher value. When a home is overvalued, more money can be obtained by the seller in a purchase transaction or by the borrower in a cash-out refinance.

The New Appraisal Fraud: Price Deflation

When done legitimately, a short sale occurs when a borrower that owes more than his or her property is worth sells the property below market value and the lender agrees to accept the lower repayment amount and forgive the difference. A new hybrid of fraud has emerged where an appraiser or a real estate agent drastically devalues the property in an appraisal or brokers price opinion (BPO) so that the home will sell with ease at a price well below market value. Of course the new buyer is in collaboration with the seller, agent and appraiser, so all of the conspirators proceed to sell the home at a higher price for a big profit.

Identity Theft

Identity theft fraud occurs when a victims identity is assumed by another to obtain a mortgage without ever intending to make any payments on the loan. The perpetrators often abscond with a portion of the loan proceeds and sometimes are daring enough to lease the property and collect some deposits and rental income before disappearing.

The Buy and Bail

This completely new scheme is perpetrated by a home owner who cannot sell the home because more is owed on the property than its worth. Because no lender will provide the owner a loan for a second primary residence, the owner tells the lender that he or she plans to rent out the current home despite having no intention of doing so. Sometimes a falsified rental agreement is used to further support the falsehood. Once the second home is purchased, the owner bails on the original home and fails to make any further mortgage payments.

AVOIDING & PREVENTING FRAUD

Mortgage fraud frequently emanates from groups that complete an abnormal amount of similar transactions or churn out many offers to purchase at once. These outfits may appear disorganized or unprofessional due to the large amount of transactions they are attempting to manage. It is also no coincidence that mortgage fraud has significantly increased as housing values have decreased since most fraud schemes involve a financially distressed or otherwise vulnerable seller. It is equally important to remember that agents owe a very strict fiduciary duty to act in their clients best interests. So before reporting a client to your local authorities, speak with legal counsel or your state real estate licensing department to ensure that your proposed actions dont constitute a breach of your fiduciary duty to your client.

Real estate agents are in a unique position that enables them to identify and even prevent the occurrence of fraud by recognizing the red flags, asking appropriate questions, and giving the principals in their transactions the full picture of what consequences are associated with participating in mortgage fraud. While a lot of damage has been done in the real estate market, we can prevent more of the same from occurring in the future.

Kinds Of Money Lenders

Posted on by

There are different types of money lenders and this article deals with the different types of money lenders present in the market scenario. Some of the different types of money lenders are

Mortgage bankers
Mortgage brokers
Wholesale Lenders
Portfolio lenders
Direct Lenders
Correspondents
Banks and Savings & Loans
Credit Union

Mortgage Bankers

A mortgage banker is a lender that can originate loans which they can sell to Fannie Mae, Freddie Mac, Ginnie Mae, jumbo loan investors, and others. Thus a company who is capable of doing the above function is termed as a mortgage banker; however their size differs based on the different companies. Some mortgage bankers service the loans to the customers which they have originated while others do not. Most of the brokers have wholesale lending divisions. Some of the examples of mortgage bankers are Countrywide Home loans and Wells Fargo Mortgage. In this example one company is associated with a bank while the other is not. Many companies call themselves as mortgage bankers while some are really bankers but as far as the case of the others is considered it is mostly marketing.

Mortgage Brokers

Mortgage brokers are institutions who originate loans with the intention that they would give the amount to wholesale lending institutions. A broker has contacts or a set relationship with these wholesale lending institutions. Underwriting and the activity of funding takes place at the wholesale lender. They deal with the institutions that have wholesale loan department.

Wholesale Lenders

Many of the mortgage brokers and even the portfolio lenders act as wholesale lenders. They cater to the need of mortgage brokers for the origination of loan. There are some wholesale lenders that do not even possess their retail branches as they rely on mortgage brokers for the loans.

Portfolio lenders

An institution which lends own money and originates loans for itself is referred to as portfolio lender. Thus in this way they are lending their own portfolio of loans and they are not concerned about being able to sell them on the secondary market. Thus they need not abide by the rules of Fannie/Freddie guidelines and thus they can create their own rules for ascertaining the credit worthiness. Usually portfolio lenders are large banks. Only a particular part of their loan programs are portfolio products. Incase they are providing fixed rate of loans or government loans, and then they are definitely engaging in mortgage banking as well as portfolio lending.