Entries by lindseyh@jvmlending.com

The Only Time Condo Owner Occupancy Ratios Matter – Investors!

This is another reminder to agents with clients looking for investment properties. Investment (non-owner-occupied) condos must be in a complex with an owner occupancy ratio above 50%. Owner occupied buyers, however, can obtain financing for condos no matter how low the owner occupancy ratio is. Again – the only time owner occupancy ratios matter is […]

Don’t Fall For “Coming Soon” With Software Providers

In 1998, an acquaintance of mine took a job with a small Loan Origination Software company and called me to rave about everything they would soon have to offer. They promised integrations with CRMs, interest rate pricing engines, digital document storage providers, title companies (for fees), and even consumer portals. And twenty years later, that […]

Borrowers Beware of Google!

One of the reasons loan officers and borrowers were able to get away with so much fraud prior to the mortgage meltdown was the lack of public records and information in general. That is no longer the case, and borrowers need to be extra careful nowadays b/c underwriters Google everything – borrowers, employers, self-employed businesses, […]

The Key To Survival in 2018

I read on Friday that there are 1,400 vendors vying for business in the residential mortgage industry! All of those vendors promise to reduce work, reduce costs, improve the client experience, and/or bring more business to your doorstep. The question is how to sift through all of the vendors?? And how do you know which […]

Mortgage Bank vs. Commercial Bank; What’s the Difference?

MORTGAGE BANKS Mortgage Banks only underwrite, fund and sometimes service loans. They do nothing else. They hold no deposits, and they fund all of their loans with large warehouse lines of credit. Mortgage banks earn money by selling mortgages at a premium on the secondary market within a few weeks of funding. Who: Quicken Loans, […]

Wet Funding vs. Dry Funding – Why It Matters

DRY FUNDING For most purchases in California, the loan is not immediately ready to fund after a borrower signs their loan documents. The “funding package” (signed loan documents and escrow conditions) needs to go back to the lender so a designated “funder” can review the package to make sure everything is signed properly and all […]

Portfolio Loans – What Exactly Are They?

After the 2008 mortgage meltdown, a large number of Asian buyers very wisely swooped in to buy CA residential real estate on the cheap. Many came to us for financing and we often could not help them b/c they were not U.S. Citizens, even though they had high incomes and large down payments. We would […]

10 Worst Boss Traits That Make People Quit

I came across an article titled “10 Worst Boss Traits” while writing today’s blog about “bad bosses,” and it was way better than my blog :). So I thought I’d just share the top 10 list along with the article linked above. These are simply great reminders for everyone with assistants or employees. An HR […]

Eliminating PMI (Private Mortgage Insurance)

Here are three options for eliminating the private mortgage insurance (PMI) obligation associated with a conventional loan (FHA MI is permanent). Option #1 – Refinancing: If your property appreciates to the point where we can garner a new appraisal to support a value high enough to reduce your loan-to-value (LTV) ratio to 80% or less, […]

PMI or Private Mortgage Insurance Explained (Briefly)

Private Mortgage Insurance or PMI protects lenders (not borrowers) in the event of default. Buyers with conventional financing are usually required to obtain PMI when they put down less than 20%. The word “Private” in PMI distinguishes it from the “Mortgage Insurance” or “MI” that is required for FHA/”government” loans. FOUR WAYS TO MAKE PMI […]

JVM’s Vision & Why It Matters

Yesterday’s blog was about company “Visions” and why they are so valuable. Today’s blog is a condensed version of JVM’s vision, and why it matters. JVM’s VISION I. Vast and Robust Agent Support and Referral Network. As one of the only lenders that can actually help agents build their business, our value propositions for agents […]

Create and Share Your Vision; Many Benefits

No matter the size of your business, most business coaches will encourage you to create and share your vision with the world for a variety of reasons. Famous author and business coach Cameron Herold encourages business owners to create very elaborate Vivid Visions that set out exactly what your business will look like in three […]

In Defense of ARMs (Adjustable Rate Mortgages)

Much more competitive Adjustable Rate Mortgages (ARMs) are coming to the market now for a variety of reasons. So, I wanted to briefly discuss reasons to take an ARM over a fixed-rate loan. SHORT TIME HORIZON If borrowers intend to sell in five or seven years, an ARM with a 5 or 7-year fixed period […]

Tech Fails; What You Should and Shouldn’t Do With Technology

INTERNAL TECHNOLOGY FAILS Back in 2012, a large mortgage bank aggressively recruited JVM to join its ranks, touting its internal Loan Origination Software as a major plus for joining. Their internal software, however, was a major reason we said “no thanks” and sure enough, several years later they went belly up partially b/c their software […]

Ordering Appraisals Immediately – Is It Worth It?

We order every appraisal as a “rush” as soon as we receive a ratified purchase contract. WHY WE ORDER APPRAISALS IMMEDIATELY: 1. It ensures that we can close very quickly when necessary. 2. Getting a clean appraisal back quickly cements transactions and alleviates anxiety for buyers, sellers and agents. 3. If there are value or […]

Non-Qualified Mortgages Explained; Good for Real Estate!

WHAT IS A NON-QM LOAN? After the 2008 meltdown, the Dodd-Frank Bill imposed minimum standards for mortgages and created a “Qualified Mortgage” (QM) definition. QM loans are almost all of the mortgages we see underwritten today (Fannie, Freddie, FHA, VA, Jumbo), and they include certain safeguards focusing on conservative lending standards and a borrower’s ability […]

Trench Experience; Wartime In the Mortgage Industry

WWII LEADERS LACK COMBAT EXPERIENCE Prior to WWII, far too many Allied military leaders lacked combat experience or were simply way out of touch. I am reading Goodbye Darkness about the war in the Pacific where the blunders were especially costly, and it’s what prompted this blog topic. For example, the British and US military leaders […]

Why Inflation is Good For Real Estate

According to the WSJ, consumer prices rose 2.9% over the last 12 months. This is the most prices have risen since 2011, indicating that inflation may finally be returning. We like to remind readers, however, that Real Estate is an excellent inflation hedge. As a hard asset, its value often keeps pace with inflation at […]

Mortgage Middle Managers – Why They Matter

DECAY TOUR OF DETROIT I took my 17 year old daughter on a “decay tour” of Detroit last summer. She of course hated it, but I found it fascinating. From WWII through the early 1970s, Detroit was one of the mightiest industrial cities of the world, and it is now only a shell of its […]

Fighting Giants With Digital Presence!

I wrote yesterday about how Zillow is coming after both loan officers and real estate agents, and received a lot of positive feedback. I also mentioned a few things lenders in particular need to do to stay ahead of the game, but I didn’t address one of the most important things: Digital presence and social […]

Financing Our Own Demise – Zillow Buys a Mortgage Company

AMAZON EATS ITS PARTNERS In the excellent book about Jeff Bezos and Amazon called “The Everything Store,” the author tells numerous stories about partnerships Amazon established with various manufacturers and sellers. And in almost every instance, Amazon would start small, learn the business, enter the business itself, and eventually all but wipe out its former […]

Absolutely Essential Travel Tips!!

I try to keep my blogs business or mortgage oriented 99% of the time, but my dental hygienist forced me to write today’s b/c the tips are so important :). While I was getting my teeth cleaned last week, she told me she went to Tahoe the previous weekend and got stuck at a jam-packed Safeway for […]

Fixing a “Fixer” Before The Appraiser Arrives

One of our agent partners called me last night to discuss an “as is” contract for one of her listings, a clear “fixer” with some rotted siding and substantial debris in and around the home, among other things. She asked me if she could include a comment in the addendum stating the “buyer will be […]

Why The Fed Needs to Raise Rates

Back in my 1990s loan officer days, most of my business involved refinances as opposed to purchases. As a result, I watched rates daily and resented Alan Greenspan every time he bumped the Fed Funds rate, even though I knew it was probably a good thing. Everyone in real estate (both agents and loan officers) […]

Marketing Aesthetics vs. Marketing Effectiveness

$12,000 WASTED ON POSTCARDS BECAUSE THEY WERE BEAUTIFUL About ten years ago, with the help of our branding consultants, we spent $12,000 on a beautifully designed postcard for a massive marketing campaign. We happened to be doing a loan at the time for an extremely successful marketer so we proudly showed him our stunningly beautiful […]

Bank Statements – Why They Are SO Important!

STRONG BORROWER DENIED FINANCING – WHY? We once had a borrower who qualified for financing in every way (income, assets, credit, etc.) but she was denied financing. The reason? She had five unexplainable overdraft charges on her bank statements that indicated she could not manage cash. Every borrower has to provide bank statements for every […]

Beware of False Marketers

“Beware of false marketers, who come to you in 2018 clothing, but inwardly are stuck in 1990.” Matthew 7:15 I should note that Matthew is my neighbor, and he said that to me last night at 7:15 when I was getting the mail. 😊 I love Matt’s warning though b/c there are so many marketers offering […]

Recession News – Not So Bad; How Chinese Buyers Affect CA Real Estate; Bullish On Real Estate

The National Real Estate Post had a great video today with information I thought was well worth sharing. Marketing commentator Barry Habib discusses margin compression, the coming 2020 recession, why he is bullish on real estate even if a recession hits, and why Chinese buyers influence California real estate so much. MARGIN COMPRESSION This is […]

Why We No Longer See Prepayment Penalties

PREPAYMENT PENALTIES EXPLAINED Prior to the mortgage meltdown of 2008, mortgage prepayment penalties were common. These were penalties that borrowers had to pay if they paid off all or a portion of their mortgages. Lenders imposed the penalties b/c they wanted to be able to recoup the cost of the loan before the borrower refinanced […]

Bump Clauses For Contingent Offers

I have blogged several times about options for buying a new home before selling an existing home. An example is here. Buyers often don’t want to sell first b/c they don’t want to end up homeless while they search for a new home, and in hot markets sellers won’t accept an offer that is contingent […]

Fake Reviews, The Power of Reviews, & “The Shed”

APPRECIATING YELP’S FILTERS The next time Yelp filters a positive review of yours, don’t complain. Even though Yelp’s algorithms often frustratingly filter authentic reviews, they do a great job of filtering fake reviews. As a company that relies heavily on review sites to authenticate our marketing claims and service levels, we remain big fans of […]

Stick to Your Knitting

HOWARD SCHULTZ’S DISASTROUS NBA TENURE I recently came across some stories about Howard Schultz and the NBA’s Seattle Supersonics that were so interesting I had to blog about them. Howard Schultz is one of America’s “celebrity CEOs,” as the founder and former Chairman and CEO of Starbucks. He is currently worth $2.5 Billion. Mr. Schultz […]

The Best Way to Stay In Touch With Past Clients

NO MÁS MAGAZINES, CANDLES & CHIP-CLIPS! One of our agent-partners recently mentioned she was going to pay for expensive magazine subscriptions to send to all of her past clients so she would remain top of mind after their transactions closed. And I screamed: “NOOOOOOOOO, DON’T DO IT!!!” OK – I didn’t scream, but I did […]