Blog - JVM Lending

Minimum Number of Tradelines & Why We Have To Pull Credit

July 15, 2022/in Homebuying, Our Blog

Buyers often come to us and say something like this: “I have a 780 credit score; I make $275,000 per year; and I want to put $500,000 down against a $1.5mm home – what is your best rate?” We can quote a rate, but more often than not, it won’t be accurate because there will […]Read More

In Defense of FHA! Misconceptions Persist!

July 14, 2022/in FHA, Our Blog

FHA financing is ideal for first-time homebuyers or borrowers with low credit and limited savings. FHA loans have lower rates than conforming (Fannie/Freddie) loans. This is especially the case for borrowers with low credit scores (under 680).Read More

A Tale Of Two Businesses; One Rising and One DYING!

July 13, 2022/in Mortgage Industry, Our Blog

I had experiences recently at two different businesses that were so contrasting and so fascinating that I had to blog about them. And yes – this much applies to mortgages and real estate! The Good Business I took my mountain bike to a bike shop that I had not been to for almost 9 months, […]Read More

Why A Strong U.S. Dollar Is TERRIFYING! (and what it means for real estate)

July 11, 2022/in Interest Rates, Our Blog

The mighty U.S. dollar has been hitting 20-year-highs over and over recently – and I was so proud that I booked a flight to Europe and ran around yelling: “USA! USA! USA!” and “We’re Number 1!” We’re Number 1!” until… … someone slapped me and explained that the strong dollar has little to do with […]Read More

Mortgage Companies Imploding Again! When to Worry

July 8, 2022/in Mortgage Industry, Our Blog

In 2006, the infamous Implode-O-Meter was established to predict and announce all of the mortgage companies that were going belly up. It was both fascinating and extremely helpful because it warned people to avoid lenders or investors (that buy loans) that were on the verge of bankruptcy.Read More

Is Inflation “Over?” (and boy does it matter!)

July 7, 2022/in Homebuying, Interest Rates, Our Blog, Refinance

Inflation Is Here To Stay! (or not) After telling us that inflation was transitory or temporary for months in 2021, many if not most economists changed their tune and declared that inflation was here to stay. This is why the Fed changed course so quickly and aggressively this year, and it is largely why interest […]Read More

The “Fed” Does NOT Control Mortgage Rates

July 6, 2022/in Interest Rates, Our Blog

The Fed controls the short-term “Fed Funds Rate,” or the overnight rate that banks charge each other. The Fed does NOT control long-term rates like the 10 Year Treasury or 30-year mortgage rates. The Fed can influence long-term rates with its comments and by raising the Fed Funds rate, but it does not have the final say.Read More

Marketing Machine Go BRRRRR/Never Stop = Success In Slow Markets

July 1, 2022/in Marketing, Our Blog

We work with and/or know numerous “mega” producing agents who do well in all environments and who never seem to be that concerned about slowdowns like we are seeing now. But, what amazes me about those super successful “megas” is how they never turn down their marketing machines no matter how busy they get – and it is something to behold.Read More

Rates Keep Falling & Will Fall More; Timing The Market

June 30, 2022/in Homebuying, Interest Rates, Our Blog

Rates fell again primarily in response to negative economic data, including revised data that showed the economy shrunk more than we thought in Q1 along with more recession indicators and predictions. The 10 Year Treasury, which correlates closely to mortgage rates, hovered near 3.5% only a few weeks ago – but it is now under […]Read More

Do Price Reductions Signal Depreciation?

June 29, 2022/in Our Blog, Real Estate

Price reductions do not signal depreciation… yet.. and they won’t until we see people actually sell their homes for less than what they paid for them.Read More

Closing Cost Credits Are Back! (From Sellers and Agents)

June 27, 2022/in Homebuying, Our Blog

I used to blog frequently about closing cost credits from sellers and agents – but I stopped because the market was so hot that no seller or agent would consider paying them. BUT – now that listings are suddenly sitting on the market longer, closing cost credits can be great enticements for buyers. This is […]Read More

VA Loans Are Still Much Easier, As We Still Don’t Need Full Inspection Reports

June 24, 2022/in Our Blog, VA

I wrote this blog in early March: VA Loans Are Much Easier Now – No More Clear Inspection Reports! The full blog is copied below but the gist of it was this: we can close VA loans without submitting full inspection reports to underwriters if we provide an NPMA-33 form instead. As long as the […]Read More

Good News! Recession Coming Soon; Rates Continue to Fall After Fed Raises “The Rate”

June 23, 2022/in Mortgage Industry, Our Blog

A week ago, I pointed out how the recent 0.75% increase in the Fed Funds rate resulted in LOWER long-term rates. I highlighted three reasons for this: (1) The markets perceived the news as effective inflation fighting; (2) the markets expected the news and had priced it in already; and (3) the Fed Funds rate […]Read More

Why The Fed Desperately Wants to TANK the Housing Market!

June 22, 2022/in Homebuying, Our Blog

One of my favorite macro pundits, Alfonso Peccatiello (former $20 billion fund manager who goes by “Alf”) recently tweeted this: “The biggest group of consumers in the US owns houses, not stocks. And this is why taming the animal spirits in the housing market is paramount important for the Fed. And they will succeed…” He […]Read More

No Building + Growing Population = Strong Housing Market EVEN IF RATES ARE AT 6%!

June 17, 2022/in Mortgage Industry, Our Blog

There were about 2.3 million new homes constructed in 1973 – a number we have not seen since. This is not that big of a deal until you remember that the entire population of the U.S. was only about 211 million (compared to 332 million now). Over the last year, we have built about 1.3 million homes, when, again, the U.S. population was over 330 million!Read More

Fed Raised Rates & Mortgage Rates Fell – Before Rising Today

June 16, 2022/in Interest Rates, Our Blog

The Fed raised the Fed Funds Rate 75 basis points (0.75%) yesterday, and mortgage rates largely fell in response to the news.Read More

Huge Opportunity From High Rates!

June 15, 2022/in Homebuying, Interest Rates, Our Blog

Grizzled Escrow Officer Sets Me Straight! While aimlessly wandering the hallways lamenting the industry slowdown, I ran into a very grizzled escrow officer who runs the title company next door. She is one of those utterly fearless women who has been around forever and has literally seen it all. She handled George Washington’s escrow when […]Read More

High Rates; Softer Market; ARMs; Housing Shortages; Recessions; Refis

June 13, 2022/in Mortgage Industry, Our Blog

Highest Mortgage Rates Since 2009 Last week’s sky-high inflation numbers have pushed 10-Year Treasury rates to levels we have not seen since 2018. While mortgage rates are at levels we have not seen since 2009. Beating A Dead Horse – Again The fast-climbing rates and media rumblings continue to spook buyers – so I am […]Read More

Why We’re Seeing Fraud Claims Now & Will See A Lot More

June 10, 2022/in Mortgage Industry, Our Blog

I knew and worked with a bunch of hard money lenders (who loaned money based strictly on equity) prior to the 2008 meltdown. Even though they were a bit cocky with their success and they lived like rockstars, they were all nice and honest guys for the most part. They solicited pools of funds from friends, family members, and outside investors – and then loaned out that money to homeowners and homebuyers who could not qualify for better financing.Read More

What Every Homebuyer Must Know About Hazard Insurance & Mortgages

June 9, 2022/in Mortgage Industry, Our Blog

Here are a few tidbits about Hazard Insurance, something that is required with every mortgage. Hazard insurance is also known as fire insurance and homeowners insurance, and it should not be confused with mortgage insurance, which only covers the mortgage and not the dwelling. Lenders require the “Dwelling Coverage” to match or exceed the lower of the loan amount, or the replacement cost estimate.Read More

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