Blog - JVM Lending

How To Play Bigger; Be Different, Not Just Better

December 14, 2018/in Our Blog, Self Education, Uncategorized /by lindseyh@jvmlending.com

Heejin and I were recently invited to a Bay Area meeting of the Forbes Business Council, and we quickly wondered why we were invited to a Bay Area meeting of the Forbes Business Council. 😊 The reason was that we were the only people there who were not tech company founders worth $100 million (or […]Read More

ARMs; Asset Depletion Loans; Debt Service Coverage Loans; Mixed Use Properties

December 13, 2018/in Mortgage Industry, Our Blog, Uncategorized /by lindseyh@jvmlending.com

Here are a few quick mortgage reminders/updates: I. JUMBO ARMs REMAIN VERY LOW. I mentioned yesterday that our Jumbo 30-Year rates are as low as ever, but our JUMBO ARMs are even lower. Our 7/1 ARMs, for example, remain in mid-3%range for no-points loans for qualified borrowers. II.ASSET DEPLETION LOANS. These are the perfect option […]Read More

Jumbo Rates Are LOWER Than Our Conforming; Jumbo vs. Conforming

December 12, 2018/in Interest Rates, Our Blog /by lindseyh@jvmlending.com

Our Jumbo rates are as much as 1/2 percent lower than our Conforming (Fannie and Freddie) rates. Our low Jumbo rates are also available for qualified borrowers down to the “low balance” conforming loan limit of $484,350. These very low Jumbo rates are highly unusual and there are several reasons for this including: (1) Fannie […]Read More

Cracking the Perfect Credit Score? Don’t Bother…

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

200 MILLION AMERICANS NOW HAVE FICO SCORES About 200 million Americans now have FICO Scores, and about 3 million have perfect scores of 850, according to this Bloomberg article – “How More Americans Are Getting a Perfect Credit Score.” America may be approaching “peak credit score” with average scores now above where they were at […]Read More

Marketing Person or Someone in the Trenches On Your IT Team?

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

FINTECH COMPANY FORGETS TO ATTRACT CUSTOMERS A close friend of ours was the Chief Product Officer at a prominent fintech mortgage lender in Silicon Valley. The firm was very impressive, consisting of about 70 people, 28 full-time engineers and a war-chest full of VC money (about $70 million). They used all that money and all […]Read More

Seller 2nds/Carrybacks Are Kosher; See Our Winter Seller’s Guide

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

SELLER CARRYBACKS In yesterday’s blog about how sellers can help buyers, I failed to mention an important avenue – Seller Carrybacks or Seller 2nds. Almost all conforming loans allow for seller carrybacks as long as: (1) buyers still meet the minimum down payment requirements – usually 5% of purchase price or more; (2) the note’s […]Read More

How Sellers Can Help Cash-Strapped Buyers (They Can’t Gift Funds)

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

SELLER CAN’T GIFT FUNDS An agent recently asked us if a seller could gift funds to a cash-strapped buyer to help the buyer get into the home. The answer unfortunately is no. This is what sellers can do to help cash-strapped buyers. 1. Closing Cost Credits. Sellers can give credits up to 6% of the […]Read More

Learning From DoorDash – Training in the Trenches

December 3, 2018/in Our Blog, Self Education /by lindseyh@jvmlending.com

I STEP INTO TRENCHES AND … FAIL We were short-staffed a few weeks ago, so I temporarily stepped into our referral manager/lead taker role, and … failed 😊. I pre-approved people based on outdated guidelines; I was unable to enter all of the data in our Salesforce CRM; and I quickly got buried with all […]Read More

Computers Replacing Appraisers – Coming Soon? Hopefully Not

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

APPRAISAL STORIES Story #1 We had a borrower come to us a few weeks ago to refinance b/c she needed cash to repair the inside of her home that had been badly damaged by a burst water pipe and the resulting flood. B/c of the extensive damage, our only option was a 203k (rehab) loan […]Read More

Good News! Fed Says Rate Increases May Halt

November 29, 2018/in Interest Rates, Our Blog /by lindseyh@jvmlending.com

We have almost 1,000 pre-approved borrowers in our pipeline and all of them breathed a sigh of relief yesterday. The reason? Two top officials from the Federal Reserve recently implied that the Fed may be done or close to done pushing up rates (a December increase is still likely). Our pre-approved borrowers should be delighted […]Read More

2019 Conforming Loan Limit Increases – Good and Bad

November 28, 2018/in Mortgage Industry, Our Blog /by lindseyh@jvmlending.com

PEOPLE WALKED AWAY FROM MORTGAGE OBLIGATIONS B/C THEY WERE UPSIDE DOWN In 2006, a relative of mine asked me to help her qualify for a condo purchase. Wanting to help, I loaned her enough money to clean up her credit, to pay off her consumer debt and to make a down payment. I then cosigned […]Read More

5 Reasons Why This Winter Is The Best Time To Buy

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

Most of our agent-readers well know why winter can be a great time to buy from a real estate perspective. I am nonetheless repeating a few of the obvious reasons while also illuminating a few less-obvious mortgage-related reasons. 1. Rates Hit Six Week Low! While rates have been climbing for most of the year, they […]Read More

Learning From 100 Days of Rejection; Happy Thanksgiving!

November 21, 2018/in Our Blog, Self Education /by lindseyh@jvmlending.com

Jia Jiang is a famous author and TED Talk speaker who has made an entire career out of getting rejected. To desensitize himself to rejection and to make himself able to ask for anything without fear, he practiced getting rejected for 100 days by asking for ridiculous things. For example, he asked for a “burger […]Read More

Marketing With Videos – Easier and More Effective Than You Think

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

ARIZONA’S TALLEST TREE Amanda Lee from our office recently took a Facebook Marketing class, and the teacher, Bill Hillestad, highlighted a prodigy of his teaching named Chris Prickett. Chris is a Realtor in Anthem, AZ who quickly dominated his target market b/c of his effective video marketing via Facebook. His videos are not professionally produced […]Read More

When Experts Are Very Wrong – Market Timing

November 16, 2018/in Mortgage Industry, Our Blog /by lindseyh@jvmlending.com

Pierre Andurand is a highly educated French businessman, billionaire and hedge fund manager who is an expert in oil, as oil is the primary focus of his giant hedge fund. As recently as June, Mr. Andurand predicted that the price of oil would hit $100 per barrel in 2018, and that it could rise as […]Read More

What Could Bring Rates Plummeting Back Down?

November 15, 2018/in Interest Rates, Our Blog /by lindseyh@jvmlending.com

According to Freddie Mac, the average 30-year fixed rate mortgage was 4.83% in October. We have not seen rates that high since 2011, and the Fed seems determined to continue to push rates up. Even though it seems likely that rates will continue to climb, there are some things that could bring them down again. […]Read More

Calling Listing Agents With Every Offer

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

This is another reminder that we love to call listing agents when offers are made simply b/c it is so effective. Listing agents have in fact told us on numerous occasions that it was our phone calls that pushed our buyers to the top. When we call, we follow the same script every time and […]Read More

Why A.I. and Algorithms Will NOT Take Over Mortgage Lending

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

WHAT KEEPS ME AWAKE AT NIGHT? One of the many things that keeps me awake at night is my overwhelming fear that Artificial Intelligence (A.I.) and Algorithms will take over the lending industry, making 99% of everything we built at JVM instantly obsolete. It seems all but inevitable that software will “eat” the mortgage industry […]Read More

Repairs Prior to Close or Prior to Owning the House

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

Appraisers often call out condition, health and safety, or repair issues that need to be addressed prior to close. Examples include missing floor coverings or water-heater straps, or peeling paint. If the repairs are minor, there is usually not a problem. Significant repairs present problems, however, because sellers often are unable to do them (REOs, […]Read More

Transparent Pricing for Mortgages; It Worked for Macy’s and Wanamaker’s!

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

In the 1870s, department stores Macy’s and Wanamaker’s completely transformed retail and soared to heights unseen by any retailer up to that time. What did they do? They put price tags on their merchandise! Prior to price tags, consumers didn’t know the cost of any item until they brought it to the counter and haggled […]Read More

How Much Are PMI Payments? How To Estimate Your PMI

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

Most everyone knows that buyers who put down less than 20% usually have to purchase Private Mortgage Insurance or PMI. But most people also have no idea how much PMI payments are. PMI payments can be made monthly, in a lump sum at closing, or as a combination of the two. Most of our borrowers […]Read More

“Jumbo” Rates Now Lower Than Conforming (Fannie and Freddie) Rates

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

Fannie Mae and Freddie Mac now have serious competition for “high balance” loan amounts above $453,100. For years, few Jumbo lenders could match Fannie’s and Freddie’s “conforming” loan rates. (As a reminder, a “conforming loan” is a loan that conforms to or meets all of Fannie and Freddie’s guidelines). But, many jumbo investors now offer […]Read More

Lender Credits for Closing Costs – Success Story & Reminder

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

LENDER CREDIT SEALS THE DEAL An agent we work with was able to get one of her clients into contract on Friday by taking advantage of the large lender credits we are able to offer. It was a $600,000 FHA purchase and the buyer’s previous lender was unable to offer a lender credit, effectively killing […]Read More

Teddy Roosevelt – Amazing Human Being & Great Motivation

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

A friend of mine (a mortgage bank owner) sent me a great Teddy Roosevelt (TR) quote that he sent to his sales team as motivation during what are clearly tough times in the mortgage industry as a whole. I will of course share the quote, but I want to mention a few of the things […]Read More

Stock Market Corrections, Real Estate & Mortgages

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

The stock market has been particularly volatile lately, and there are many predictions of another large “correction” that could come any day now. Here are a few considerations in regard to a stock market correction, at least as they relate to real estate and mortgages. A stock market “correction” is defined by The Motley Fool […]Read More

Seller Rent Backs & Owner Occupancy Rules

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

OWNER OCCUPANCY Fannie Mae, Freddie Mac and FHA all require buyers to move into a financed property within 60 days of close of escrow to meet owner-occupancy requirements. As a reminder, FHA offers only owner-occupied financing (FHA offers no investment property financing), and Fannie and Freddie of course offer much better terms for owner-occupants b/c […]Read More

Five Options When Appraisals Come In Low

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

Whenever an appraisal comes in under contract price, we work quickly to consider all options with both agents and buyers. We can usually resolve appraisal issues within one business day if everyone is responsive. Below are five of the options available when an appraisal comes in under contract price. 1. Rebut the appraisal. This approach […]Read More

Why Pixar Made Steve Jobs WAY Better at Selling Computers! It’s All About the Story!

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

When Apple launched its “Lisa” computer in 1983, it purchased massive newspaper ads with several columns in nine-point font that set out ALL of Lisa’s features. And – nobody cared. Lisa flopped. And Jobs ended up losing his position at Apple. 14 years later, after Jobs returned to Apple after he had been at the […]Read More

“Pre-qualifications” and Job History

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

Pre-qualifications vs. Pre-approvals One of the issues with all of the online pre-qualification tools as well as with “pre-qualifications” in general (like what banks perform) is that they do not account for job history. With a “pre-qualification,” either software or a loan officer does a preliminary analysis based on credit, income, assets and loan amount. […]Read More

Lead Follow Ups & Conversions = Way More Than Being “Hungry”

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

Back during my loan officer deals, agents used to tell me they loved sending me referrals b/c I was “hungry.” They all assumed my relentless follow ups and high conversion rates were a result of me being “hungry” for more business. But, my follow up skills were less a result of me being hungry and […]Read More

Cash Out Now Before It Is Too Late!

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

I blogged last week about the importance of liquidity, and as a result we received several inquiries in regard to cash out mortgages (even though that was not the intent of the blog). One of the inquiries was from a real estate agent who wants to make sure she is liquid enough to snap up […]Read More

Best “Sales” Book Ever! Ovitz Autobiography

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

I just finished one of the best books I’ve read in years: Who Is Michael Ovitz? Ovitz was the “super agent” who created the CAA talent agency. He represented the biggest names in entertainment from the 1970s – 1990s, including Robert Redford, Tom Cruise, Paul Newman, Stephen Spielberg, Robert De Niro and many others. He […]Read More

Why Even Cash-Rich Borrowers Need 30-Year Mortgages; LIQUIDITY!

October 18, 2018/in Our Blog /by lindseyh@jvmlending.com

Borrowers often underestimate the importance of liquidity. Especially when times are good. When rates are relatively low (under 8%), we always recommend using financing (obtaining a mortgage) to buy real estate, even if borrowers have ample cash. Similarly, we usually advise borrowers (who want lower 15-year rates) to take 30-year mortgages over 15-year mortgages. Even […]Read More

Real Estate for Retirement Funds

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

I was hiking in the middle of nowhere a few weeks ago when I ran into an older couple in their early 60’s. We struck up a long conversation and I learned that they lived in Palm Desert, CA, and were visiting their kids in Alamo, CA. The interesting part was that they lived in […]Read More

“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

Buyers Beware of Google!

September 25, 2018/in Our Blog, Privately Published /by lindseyh@jvmlending.com

One of the reasons loan officers and homebuyers 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 homebuyers in need of financing need to be extra careful nowadays because underwriters Google everything – […]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

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