Blog - JVM Lending

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

November 12, 2018/in Our Blog

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

“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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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