Blog - JVM Lending

“Non-QM” Loans Revive Dead Deals!

October 15, 2018/in Our Blog /by lindseyh@jvmlending.com

LOAN OFFICER REVIVES $4 MILLION OF DEAD DEALS WITH NON-QM A loan officer I know recently called all of the Realtors in his network to tell them about “non-QM loans,” and he came away with $4 million of loans/transactions that would never have closed but for his phone calls. The Realtors thought the deals were […]Read More

What I Learned From Having Steve Jobs Swear at Me

October 12, 2018/in Our Blog /by lindseyh@jvmlending.com

My subject line was borrowed verbatim from another excellent WSJ article, linked here. The author was an engineer at Apple who worked on both the iPhone 4 and the iPad. When he showed Steve Jobs a font that was supposed to illuminate the iPhone 4’s superior screen-resolution, Jobs told him the font was “dog shit.” […]Read More

1/4% Rate Increase = Less Than 4 Lattes

October 11, 2018/in Our Blog /by lindseyh@jvmlending.com

There have been a lot of rumblings in the news lately about rate increases…mostly b/c rates have been increasing :). The Fed recently announced an increase in the Fed Funds rate with more on the way, and rates have been increasing in general in response to positive economic reports, as most everyone knows. As a […]Read More

Investment Property Financing

October 10, 2018/in Our Blog /by lindseyh@jvmlending.com

From about 2009 – 2012, investment property financing was a much larger portion of our overall production. As the market heated up, however, many investors dropped out of the market. Lately though we have been getting the occasional inquiry, so I thought it was time to discuss the options again. Fannie and Freddie will finance […]Read More

Best Way to Learn Guaranteed Growth Strategies

October 8, 2018/in Our Blog /by lindseyh@jvmlending.com

Everyone wants to learn how to either grow their business and/or to make their business easier and more fun. There are numerous ways to get this knowledge, including: “How to” books like the Millionaire Real Estate Agent Mentors Coaches Major “rah rah” events, and trade shows; and Mastermind Groups Books tend to offer too much […]Read More

Best Leadership Article I’ve Ever Read; George Washington Leadership Traits

October 5, 2018/in Our Blog /by lindseyh@jvmlending.com

“The Contagious Behaviors of a Great Boss” from the WSJ is the best leadership article I have ever read. That is saying a lot b/c I have read hundreds of them. The article is so good b/c the advice is so succinct and the author has so much credibility (he’s done nothing but study leadership […]Read More

5/1 ARM at 3.75%* – In Defense of ARMs Part II

October 4, 2018/in Our Blog /by lindseyh@jvmlending.com

In late August, I wrote a famous blog called “In Defense of ARMs” that was read by …. dozens of people. 🙂 OK, it wasn’t actually famous, and it was actually read by a few thousand people, but the message was clear: ARMs (Adjustable Rate Mortgages) are getting much more competitive in this climbing rate […]Read More

Insurance & Mortgages; What Is Required? What’s It For?

October 3, 2018/in Our Blog /by lindseyh@jvmlending.com

There is often confusion in regard to all of the insurance that borrowers either should have, or are required to have, when they finance a home. Here is a brief outline that will hopefully alleviate some of the confusion. I. Fire, Hazard, or Homeowner’s Insurance. These terms are used interchangeably even though they are not […]Read More

Google’s Amazing Dominance & Why It Will End

October 1, 2018/in Our Blog /by lindseyh@jvmlending.com

Google is by far one of the most powerful companies in the world. It dominates multiple fields like no other company in history, and it has the ability to control digital advertising rates and the information most of us see. It is scary b/c its dominance seems literally unstoppable. (At the bottom of this blog, […]Read More

When Zillow Misleads Homeowners! Why It Matters & What to Do?

September 28, 2018/in Our Blog /by lindseyh@jvmlending.com

I reluctantly have to admit that Zillow really does have impressive algorithms, that sometimes yield surprisingly accurate results. BUT, Zillow also often badly misleads homeowners, creating huge issues for lenders and agents alike. A few years ago, a friend of mine was irate when his appraisal came in $75,000 lower than Zillow’s “Zestimate.” But Zillow […]Read More

Price vs. Value In The Mortgage World

September 27, 2018/in Our Blog /by lindseyh@jvmlending.com

Uber-marketer Seth Godin recently blogged about not confusing “price” with “value.” Price and value are not the same of course, as consumers often get much less value with the lowest price (Walmart vs. Nordstrom; Spirit Airlines vs. JetBlue; LegalZoom vs. a seasoned attorney). Godin’s main point was that companies that compete with price only (instead […]Read More

Why a Good Economy Is Bad for Rates; Why Not Leave Rates Low?

September 26, 2018/in Our Blog /by lindseyh@jvmlending.com

A few weeks ago, I blogged about why rates don’t always increase when the Fed announces a rate increase (as they likely will today). The blog can be found here, and I pointed out how the markets often account for likely increases in the Fed Funds rate long before the Fed announces them. Since that […]Read More

Beyoncé & Jay-Z’s Mega Mortgage, Celebrities Who Went Broke; Why We Underwrite

September 24, 2018/in Our Blog /by lindseyh@jvmlending.com

What do Jay-Z, Beyoncé, and billionaire hedge fund managers have in common besides enormous amounts of money? Answer: Enormous Mortgages Jay-Z and Beyoncé just bought a house for $88 million and financed $53 million b/c they were tight on cash :). Actually, their financial advisor probably told them it was smart to leverage themselves at […]Read More

The Only Time Condo Owner Occupancy Ratios Matter – Investors!

September 21, 2018/in Our Blog /by lindseyh@jvmlending.com

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 […]Read More

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

September 20, 2018/in Our Blog /by lindseyh@jvmlending.com

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 […]Read More

Borrowers Beware of Google!

September 19, 2018/in Our Blog /by lindseyh@jvmlending.com

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, […]Read More

The Key To Survival in 2018

September 17, 2018/in Our Blog /by lindseyh@jvmlending.com

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 […]Read More

Re-Casting or Re-Amortizing Mortgages When They’re Paid Down

September 14, 2018/in Our Blog /by lindseyh@jvmlending.com

Most lenders allow borrowers to re-cast or re-amortize their mortgages when they pay down the principal balance. For example, Bob might have a $600,000 mortgage at 3.5% with payments of $2,694 per month, with 27 years remaining. If Bob’s grandma dies, or Bob wins the lottery, or Bob’s company IPOs, or Bob wins a lawsuit, […]Read More

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

September 13, 2018/in Our Blog /by lindseyh@jvmlending.com

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, […]Read More

Wet Funding vs. Dry Funding – Why It Matters

September 12, 2018/in Our Blog /by lindseyh@jvmlending.com

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 […]Read More

Portfolio Loans – What Exactly Are They?

September 10, 2018/in Our Blog /by lindseyh@jvmlending.com

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 […]Read More

10 Worst Boss Traits That Make People Quit

September 7, 2018/in Our Blog /by lindseyh@jvmlending.com

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 […]Read More

Why Rates Won’t Increase When The Fed Announces a Rate Increase This Month

September 6, 2018/in Our Blog /by lindseyh@jvmlending.com

We had a jumbo borrower considering a refi last week who asked if he should lock in his rate now before the Fed announced a rate increase in late September. We were tempted to say “yes” to give him an incentive to lock in a refi, but alas…we were honest (as always, I should add […]Read More

Eliminating PMI (Private Mortgage Insurance)

September 5, 2018/in Our Blog /by lindseyh@jvmlending.com

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, […]Read More

PMI or Private Mortgage Insurance Explained (Briefly)

August 31, 2018/in Our Blog /by lindseyh@jvmlending.com

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 […]Read More

JVM’s Vision & Why It Matters

August 30, 2018/in Our Blog /by lindseyh@jvmlending.com

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 […]Read More

Create and Share Your Vision; Many Benefits

August 29, 2018/in Our Blog /by lindseyh@jvmlending.com

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 […]Read More

In Defense of ARMs (Adjustable Rate Mortgages)

August 27, 2018/in Our Blog /by lindseyh@jvmlending.com

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 […]Read More

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

August 24, 2018/in Our Blog /by lindseyh@jvmlending.com

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 […]Read More

Why We Pay Rush Fees To Appraisers for Slow Closes Too; Appraisers Are Underpaid

August 23, 2018/in Our Blog /by lindseyh@jvmlending.com

We received a tremendous amount of positive feedback in response to yesterday’s blog about ordering appraisals immediately; we will definitely continue the practice. Some agents said that our appraisals come back before other lenders even get around to ordering them (a huge frustration to say the least). Others asked if and why we pay rush […]Read More

Ordering Appraisals Immediately – Is It Worth It?

August 22, 2018/in Our Blog /by lindseyh@jvmlending.com

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 […]Read More

Non-Qualified Mortgages Explained; Good for Real Estate!

August 20, 2018/in Our Blog /by lindseyh@jvmlending.com

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 […]Read More

Trench Experience; Wartime In the Mortgage Industry

August 17, 2018/in Our Blog /by lindseyh@jvmlending.com

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 […]Read More

Things That Delay Closings: Insurance; Unsourced Cash and Gifts; Last Minute Credits

August 16, 2018/in Our Blog /by lindseyh@jvmlending.com

Here are a few things that often delay escrows unnecessarily. We warn buyers about all of these issues repeatedly, but the problems resurface time and again anyway. Hence, we like to share this info with agents as well, so they can coach buyers too and help avoid delays. Evidence of Insurance: Lenders must have proof […]Read More

Why Inflation is Good For Real Estate

August 15, 2018/in Our Blog /by lindseyh@jvmlending.com

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 […]Read More

Mortgage Middle Managers – Why They Matter

August 13, 2018/in Our Blog /by lindseyh@jvmlending.com

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 […]Read More

Fighting Giants With Digital Presence!

August 10, 2018/in Our Blog /by lindseyh@jvmlending.com

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 […]Read More

Financing Our Own Demise – Zillow Buys a Mortgage Company

August 9, 2018/in Our Blog /by lindseyh@jvmlending.com

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 […]Read More

When Loan Officers Compare Apples to Oranges to Win Business; Rotten Fruit 🙂

August 8, 2018/in Our Blog /by lindseyh@jvmlending.com

One of our agent-partners called me this week b/c another lender was trying desperately to lure away one of our borrowers in contract. Our longtime agent-partner was spoiled by our service levels and was very concerned about a switch to a lender she did not know b/c she has been burned many times. Most interesting […]Read More

HUGE NEWS: We Lowered Our Rates By 3/8%! Especially JUMBO Rates! How & Why We Did It

August 6, 2018/in Our Blog /by lindseyh@jvmlending.com

“BIG BANK RATES WITH JVM SERVICE” No other mortgage bank anywhere can make that claim. We are now offering $1 Million JUMBO Loans at 4.25%* at NO POINTS! (No mortgage bank that I know of can make that claim either.) But, JVM can make both of these claims because we have aligned multiple new investors. […]Read More

Absolutely Essential Travel Tips!!

August 3, 2018/in Our Blog /by lindseyh@jvmlending.com

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 […]Read More

Fixing a “Fixer” Before The Appraiser Arrives

August 2, 2018/in Our Blog /by lindseyh@jvmlending.com

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 […]Read More

Why The Fed Needs to Raise Rates

August 1, 2018/in Our Blog /by lindseyh@jvmlending.com

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) […]Read More

Polish Your Pitch: The Importance of Conveying Competence

July 30, 2018/in Our Blog /by lindseyh@jvmlending.com

$45 MILLION PER YEAR ON MARKETING A large mortgage company we know spends $45 million per year on marketing and lead buying, procuring tens of thousands of leads every year. They are able to track every lead they get all the way through close, finding out which lender the lead closes with (even if it […]Read More

Interviewee Gives Us Negative Glassdoor Review; Hiring Procedures & Standards

July 27, 2018/in Our Blog /by lindseyh@jvmlending.com

GOLDMAN SACHS DIDN’T HIRE ME I interviewed for an investment banking job at Goldman Sachs back in the 1980s, and the best investment bank in the world figured out that I was the worst employee in the world and didn’t hire me. But, before they didn’t hire me, they ran me through a gauntlet to […]Read More

Watch Out For A “Credit Refresh;” Don’t Pay Cards Down to Zero or Close Them

July 26, 2018/in Our Blog /by lindseyh@jvmlending.com

We once had a borrower who stopped making mortgage payments on one of her properties after we pre-approved her. A few days before funding, we ran a “credit refresh” only to find out she had late mortgage payments and her credit score had dropped to 617 (we had to pull the funding and re-structure her […]Read More

Marketing Aesthetics vs. Marketing Effectiveness

July 25, 2018/in Our Blog /by lindseyh@jvmlending.com

$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 […]Read More

Bank Statements – Why They Are SO Important!

July 23, 2018/in Our Blog /by lindseyh@jvmlending.com

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 […]Read More

English Soccer Learns from NBA; Learning from Other Industries

July 20, 2018/in Our Blog /by lindseyh@jvmlending.com

MORTGAGE PEOPLE LEARNING FROM REAL ESTATE PEOPLE Years ago Heejin and I attended a KW Family Reunion in Austin with several of our agent-partners and we were amazed by the quality of the speakers and the info available. I attended all the events and took feverish notes while most of the agents partied like rocks […]Read More

When Rich Borrowers Can’t Get Loans; “Salability” Once Again

July 19, 2018/in Our Blog /by lindseyh@jvmlending.com

SUCCESSFUL COMMERCIAL LOAN OFFICER DOESN’T UNDERSTAND RESIDENTIAL LENDING We recently had a very successful commercial banker apply for low down payment financing b/c he wanted to preserve his cash for improvements and other projects. He, however, had side businesses with losses on his tax returns, he wanted to use a business bank account for his […]Read More

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