Entries by lindseyh@jvmlending.com

The Tricks Lenders Use When Quoting Rates

We recently had a borrower go into contract after she had been pre-approved by both us and one of America’s largest mortgage banks, via an online portal. The borrower was shopping us against the online lender, making for some very good blog fodder. Here are a few observations: 1. She used JVM’s pre-approval letter when […]

Cost Cutting to Prosperity? Not So Much

MAJOR LENDER CUTS COSTS – GOES OUT OF BUSINESS In 2011 when we were in the broker channel, we sent almost all of our loans to a single lender (a major bank) b/c their rates and service were so good. But then in an effort to increase profits, the lender laid off staff and cut […]

Wasting Rent Payments? Another Appraisal Horror Story

APPRAISAL HORROR STORY PART 297 Because we want to always do what is best for our borrowers, we recently switched a borrower from our internal banking channel to the “broker channel” to take advantage of a specific loan product that a wholesale lender was offering. Even though we already had an appraisal in at $512,000, […]

How to Succeed Like the Simpsons!

I love stories about successful organizations b/c there is so much to learn that can be emulated and blogged about. So, I was extra excited when this story popped up in the WSJ: How To Succeed Like the Simpsons. (As always, if you don’t subscribe to the WSJ, we’ll happily send you key excerpts.) The […]

What to Say To Appraisers? A Lot – But In the Right Way

Ryan Lundquist is a Sacramento appraiser who writes an excellent blog about appraising. It is called the Sacramento Appraisal Blog, and it is chock full of invaluable info. I am sharing a portion of one of his excellent blogs with a great tip below (with permission and full attribution of course). A “cheat sheet” for agents […]

Mortgage Industry Shakeout Is Coming; What It Means for You?

“It’s a brutally competitive market right now,” Weinbach said. “Typically the way this ends up is a shakeout, and the sooner the better.” That is a quote by the CEO of Chase Home Lending at the recent Mortgage Bankers Association conference in NYC. Every mortgage industry executive is predicting a shakeout, and humorously, they all […]

“External Influences” (Busy Streets, BART, Cemeteries, etc.) Can Significantly Impact Values

Real estate agents involved in transactions with external influences sometimes under-estimate their effect and get frustrated when appraisers have difficulty supporting value. The most common problem involves properties on busy through-streets. A loud or busy street near a property can shave as much as $50,000 to $100,000 off the appraised value, depending on the price […]

The Scary Thing About FHA Interest Rates

WHY WE LOVE FHA I blog often about why we love FHA financing so much: (1) Speed – we can close in 14 days. (2) Flexibility – in regard to credit and debt ratios. (3) Low down payment – 3.5%. (4) Condition – properties can be purchased “as is, and no Section I clearance is […]

Comparable Sales We Can’t Use In Appraisals

Realtors often send our Appraisal Manager comparable sales (comps) that they want our appraisers to use in their appraisals. The problem is that we often cannot use them b/c they are so far outside of appraisal guidelines. Last week was no exception, when we received comps that were in different cities than the subject, 25% […]

Down Payment Assistance (CALhfa) Explained

We offer several Down Payment Assistance programs, even though they have limitations that include higher rates, slower closing times, higher fees, and income caps. Down Payment Assistance programs are, however, sometimes absolutely necessary for borrowers who cannot access enough cash to buy a home. One of the best programs for borrowers with limited cash is […]

Why Higher Rates Don’t Hurt Home Prices

“When rates go up, home prices will crash!” We have all heard similar statements numerous times, but they are not true. This was addressed recently in another short Planet Money Indicator podcast: Rising Rates Vs. Housing Market. While higher rates increase mortgage payments and decrease qualifying amounts, they do not depress house prices according to […]

Rates Hit 7 Year High; The Cost of Waiting

COST OF WAITING IN 2012 In 2012 and 2013, we had a borrower looking to buy in Oakland and she was obsessed with getting the absolute lowest possible price. As a result, she kept walking away from transactions, b/c of $5,000 to $10,000 price discrepancies, even though she was shopping in the $650,000 range in […]

Friction & Middlemen – No Mas!

The primary reason Uber is so successful is not b/c it has nicer cars, or b/c it is cheaper than cabs. It is successful b/c they removed friction from the transaction. You get to just hop in an out of the car. Amazon is so successful not b/c it has a big selection or low […]

Are We In A Housing Bubble?

The four most dangerous words in real estate: “This time it’s different” 😊 I stole that from a recent Planet Money Indicator Podcast about a potential housing bubble (it’s only 8 minutes long, so I highly recommend it). I blogged about a potential bubble in late 2015 here, and highlighted three potential “Bubble Indicators” from […]

Wanna Get Rich? Get Bad Grades

Heejin and I attended a Strategic Coach event last week, and what I love most about these events is meeting so many successful entrepreneurs who closely follow Dan Sullivan’s teachings and get rich doing so. Most recently, however, there was one success story that really stood out. It involved a young man named Charles. I […]

Amazing Facts About Teams & Culture

TEAM CULTURE IS EVERYTHING! If you are part of a team of two, ten or thirty people, you need to know that culture is everything! The reason? Companies with strong cultures are almost eight times more profitable over the long run. Team members are also far happier and more productive. This was driven home in […]

How To Lower Debt Ratios To Qualify For More

I explained what debt ratios are and how they work in a recent blog. But, I did not explain what borrowers can do to lower them. Here are a few ideas for lowering debt ratios and qualifying for a larger purchase: 1. Put less money down, and use down payment funds to pay off consumer […]

The High Risk of False Assumptions

WONDERFUL STORY FROM TWITTER I read a wonderful story on Twitter last week. The author of the series of tweets was a grad student named Thomas who sat in the front row of his class every day. A gentleman with a thick foreign accent, who Thomas did not know, sat next to him and always […]

Just Make Biscuits

I wrote this blog last July and recently came across it. With so much going on right now in the tech, real estate, mortgage and geo-political realms, I think it is an excellent reminder and message. I was listening to The Investors Podcast recently when I heard an investment guru give excellent advice in response […]

Lender Credits For Closing Costs

LENDER CREDITS INSTEAD OF SELLER CREDITS Seller credits for closing costs are few and far between in this hyper-competitive market; merely requesting them in fact is often a deal-killer. But – we like to remind Realtors and borrowers alike that lender credits for closing costs remain a viable option for cash-strapped buyers. There are a […]

In Defense Of Millennials

COMPLAINTS ABOUT YOUNG WORKERS A famous essay claims that young people new to the workforce exhibit: “slipshod assistance, foolish inattention, dowdy indifference, and half-hearted work…” The author went on to complain about the “imbecility of the average [person]” and about the failings of young workers in general in an essay that was well-received and loved […]

Appraisal Waivers – Much Ado About Very Little, So Far

APPRAISAL WAIVERS – FEW AND FAR BETWEEN Appraisal Waivers or “Property Inspection Waivers” (or PIWs) are popping up more often nowadays. This is a good thing b/c they speed up transactions and save borrowers $500 or more. BUT – they are not surfacing so often that we have reason to celebrate. Some lenders are actually […]

Today’s Subprime Is NOT Like Yesterday’s Subprime!

100% FALSE STATEMENT ABOUT SUBPRIME I received a copy of an internally circulated newsletter from a huge real estate firm with the following 100% incorrect statement about subprime lending: “Subprime loans – the type that fueled the Financial Crisis – are making a comeback in a big way. The total volume of loans issued in […]

Equity Lines = Best Bridge Loans

BUYING BEFORE SELLING CURRENT HOME We frequently have borrowers who want to buy a new home before selling their current home. They are afraid if they sell first they will end up either homeless or under undue pressure to buy a home they don’t really like. These people invariably ask about bridge loans (temporary cash […]

3 Best YouTube Channels For Small Business

Because Heejin and I are nerds in the extreme, our idea of a really fun Saturday night is sitting home and watching educational YouTube videos (we’re over TED Talks). We like them short, educational and inspirational for business. Below are three YouTube Channels we absolutely love. 1. Company Man This excellent channel consists of ten […]

Refi’s Die; Mortgage Industry Shakeout; Cheese Moving

In 2012, 72% of mortgage industry volume consisted of refinancings, or”refi’s” for short. In 2017, refi’s dropped to only 37% of total volume – the lowest percentage in two decades. This is from a recent WSJ article that we will reprint below this blog. 70% of Quicken’s 2017 business was from Refi’s, and that percentage […]

“Love Letters” to Sellers Work! How & Why

URBAN FARMER IS #34 OUT OF 36 OFFER In November I blogged about two urban farmers getting the house of their dreams even though their offer was one of the lowest (#34 out of 36!). The buyers connected exceptionally well with the seller who shared their love for urban farms. You can read the full […]

Best Lender Vs. Best Friend; Does It Matter?

WHY A LENDER’S NAME & REPUTATION MATTER We recently received the below note from a buyer’s agent. We should hire her for all of our marketing because this single note says it all 🙂 “You know, our offer was accepted because of you guys. The listing agent knows how good you are and it really […]

If Property Won’t Appraise, Change Financing!

AGENT KNOWS PROPERTY WON’T APPRAISE We have a buyer who is willing to offer $750,000 for a property with 10% down. The problem is that, according to her agent, “the property will never appraise for more than $680,000, b/c there are no comparable sales anywhere above $680,000.” There are also cash offers so the seller […]

MAKE Yourself Lucky! Article Explains How

One of the most interesting things about the “How I Built This” podcast is how often founders attribute their success to luck. But, according to a recent article in the WSJ, people underestimate how much they create their own luck. The article is short, interesting and very encouraging for anyone in sales or in business […]