Reverse Mortgages Will Help 62 and Older Stay in Home Create Cash Flow

Posted by Anne James on May 1st, 2022 11:58 AM


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Posted by Anne James on March 21st, 2022 12:50 PM

Covid has forced many a 55 year-old and over into early retirement with only one source of income-social security. Worse, businesses lost that would've been sold at a profit mean extended work years or back to work for over 65 'seniors.' FINRA, the financial industry regulatory authority, has added reverse mortgages to home equity for income. You can receive a lump sum at closing and make no payment on a mortgage once it's closed except for taxes, insurance and HOA payments. 

With the cost of living adjusted, some cash to help with home maintenance and a remaining line of credit for those with a lot of equity, life becomes much more comfortable. Your current mortgage and/or home equity loan is paid off through the reverse mortgage.

While COVID has caused job losses, business closures and delayed plans for many, home equity has risen the most in history in one year. While values may not continue to rise and, may indeed drop for all we know, you will never owe more than what your home is worth. 

Call for a consultation if you are even curious about how the reverse mortgage can help your income. Do not confuse it with newer 'equity share' loans that have targeted homeowners everywhere. Reverse Mortgages are FHA guaranteed loans now started under Ronld Reagan in 1987. 


Posted by Anne James on September 29th, 2021 1:12 PM

Did you know that...

 

While some collection agencies will agree not to report medical collection accounts that are paid off immediately, others refuse to do so. And some bill collectors will use the threat of credit report damage to try to get patients to pay up, even if the bill itself is disputed.


 

Here are some interesting myths and facts about medical collections! 


Myth: As long as I am making payments on a medical bill, it can't be sent to collections.

Fact: Making payments won't necessarily keep the bill out of collections. Even if you are making regular payments, they need to be a certain amount to prevent being turned over. Of, if you are under a payment arrangement but are late (even by just a few days) your bill may go to collections. If you leave any balance unpaid, there's a good chance it will go to collections.

 

Myth: When it comes to credit scoring, medical accounts are treated differently than other types of collections accounts.

Fact: The credit scoring formula does not distinguish between medical and non-medical collection accounts. All collection listings are derogatory and will affect your credit score the same way as other collections. Some creditors have been known to be more lenient when it comes to medical debt, even though the credit scoring formula will not.

 

Myth: I'll need to pay off medical collection accounts to improve my credit.

Fact: Paying your bills is the responsible thing to do, but don't do it expecting drastic changes to your credit score. Collection accounts damage your credit score, paid collections aren't as detrimental but they're still negative. The negative listing can stay on your credit file for up to 7 years.

Bottom line, if you want to be ready to buy a home or refinance, call me and I'll help you with credit, loan type and walk you through it.

Posted by Anne James on September 17th, 2021 5:19 PM

You can now do this at 55 years old! Read it and call for help. 

Posted by Anne James on September 15th, 2021 11:30 AM

Real Life Transaction!

Borrower Retired Due to COVID

Benefit of Reverse Loan:

·         Paid off existing mortgage, saving $1,754 ($105,000 over 5 years!) in monthly payments*

·         Cash Out $36,557

·         Line of Credit for $93,521

·         Paid property taxes at close saving $2,395.62 out of pocket**

·         Closed in 45 days

Thinking about a reverse mortgage but not sure? Call me at 562-619-2058

Anne E James is a licensed mortgage broker with 25 years experience in lending. NMLS # 254859


Posted by Anne James on March 22nd, 2021 10:25 AM
As Mortgage Professionals, like it or not
As a Mortgage Broker, like it or not, I am in sales. Yes..........sales!
Why should you use me versus the other 100K plus loan officers in the nation? I don't just sell rate & closing costs but they are important and I AM the Broker-a huge advantage; I sell myself, my experience and reputation. I may tell you NOT to purchase now or refinance for good reasons.

You must be:

1. Qualified 2. Committed 3. Motivated
And this means, my loan comparisons will show you the savings or payment you can or can't afford!
The following are 5 reasons why deals fail to go to closing for loan officers, banks and brokers who want you to purchase or refi NO MATTER WHAT:

1. The approach is confrontational rather than consultative
 
When prospects (yes, you) feel confrontation, they often feel provoked and challenged. Salespeople who are too anxious to close the sale or get their prospects to see their point of view, may only decrease their odds of closing. A soft approach is always better. This means having the patience & time to answer all basic questions, sometimes over & over.
 
Selling is not about getting people to see your point of view. It is about allowing yourself to see the customer's point of view.

2. The prospect feels pressured rather than being helped
 
When prospects feel pressure, they feel that demands are being placed on them. Pressure violates trust when the salesperson doesn't show respect for their ideas and opinions. Creating demand usually doesn't work. Patience, respect and understanding usually do.
 
Pressure rarely works & can backfire. Taking the high road to an indecisive borrower &  waiting can pay off for you and me. You may wait and be better served and I may be your 'Trusted Advisor.'
When you truly want to serve your clients, they know it, and everyone wins.
 
3. Borrowers feel the lender is aggressive rather than supportive
People don't usually reward aggressive behavior. When lenders become aggressive, their only goal is to share what is important to them - getting paid by closing you whether it's appropriate or not.
There is a big difference between aggressive and assertive behavior. 

4. Lender has self-focused goals, versus customer-focused ones

You, the borrower,  have a multitude of choices of who to use and also have the opportunity to find a broker with first-time homebuyer programs, lower rates and customer-oriented communication.
You want someone who can assist you, service you and educate you.
 
Professional salespeople help, support and share knowledge with their prospects. They pass along important information and ask customers to buy once they've demonstrated clearly how their product or service will help achieve the desired results or objectives.
 
As a former Top Producing loan officer in the builder community,  I learned a long time ago: "Take care of the client, & the commissions take care of themselves".
 
5. Loan Officers who mistakenly take prospect problems personally (hint: It's about you, not me)

And when they do, inexperienced loan officers often retreat  or hide when confronted with a problem instead of listening carefully and responding immediately.
 
Let's face it, in today's Mortgage climate there is no shortage of client questions & concerns. We have to stay patient. When you call to discuss a problem or issue you are concerned about, expect the problem to be addressed immediately.
Banks who ignore problems or concerns instead of putting them out on the table and dealing with them, will lose their customers' trust. It's a much better decision to take action quickly & decisively.

Just have questions? Need a comparison of loan options to help you decide to refinance, take cash out or not? Want to know if it's a 'good time to buy?' Call me at 562-320-0510 or email at:
annermsinc@gmail.com
www.reliancemortgageserviceinc.com 
NMLS#254859 Corp NMLS# 1150921
 







Posted by Anne James on July 30th, 2019 10:52 AM
Titl

VA Loan Cosigner Requirements

One of the benefits of VA loans is that they allow veterans to secure home loans with lower interest rates and lower qualifications than a traditional loan. Even with these lower qualifications, however, VA loan applicants sometimes still need a co-signer to qualify. If you fall into this category, it’s a good idea to understand who can co-sign on your VA loan and how it might affect your odds of qualifying for that loan. Fortunately, Reliance Mortgage Service Inc, is well-equipped to answer any of your VA loan co-signer questions.

Individuals who can co-sign on VA loans include:

  • Your spouse (must be legally married)
  • A single military member (if you are unmarried)
  • Certain lenders will also allow a single non-military person

In short, it’s perfectly normal for a VA loan borrower to need a co-signer to qualify for a loan. If this describes you, the more you know about who can co-sign for you and how it will affect your loan, the more of a head start you’ll have in the process. 

Since the VA loan co-signer application process can sometimes be a daunting one, we have provided below two of the most frequently asked questions regarding the use of co-signers on VA loans.

Who Is An Eligible Co-Signer?

VA guidelines clearly specify who veterans can use as co-signers on VA loans and who they can’t. First, the VA permits legally married spouses to co-sign on a loan. Those veterans who are unmarried can get a fellow veteran who is unmarried to co-sign on their VA loan. A third option, which is only available through some lenders, allows veterans to use an unmarried, non-military individual as their co-signer, but this comes with a catch: the VA will consider only the veteran’s property in what they can “guarantee,” not the co-signer’s. In other words, using this option can limit how much you qualify for. Since not every lender will allow this third option, if you find yourself in this category, we strongly recommend that you find out if your lender handles this situation before you begin the loan application process. 

Will A Co-Signer Affect My Chances Of Getting The Loan?

Co-signers can often make the difference in securing a VA loan or not. Just as your financial information and credit history is taken into account when determining if you qualify and what rates you’ll receive, your co-signer's information must also be scrutinized. How will the VA look at your and your co-signer’s information? For one thing, VA loans don’t rely on high credit scores to determine eligibility. Instead, they look at your and your co-signer's most recent 12 months of credit history, while being less strict about credit scores, bankruptcies, and foreclosures.  

If you find yourself needing a co-signer to qualify for a VA loan, know that the ability to include a co-signer has allowed thousands of veterans in you area to secure a VA loan. Fortunately, now that you know who can and cannot act as your co-signer – whether your legal spouse, a fellow unmarried veteran or an approved unmarried non-veteran – you can avoid unfortunate surprises and get a head start on identifying who your co-signer will be. 

Posted by Anne James on June 25th, 2019 1:41 PM
Becoming a mortgage broker in California can seem confusing at first. The state offers three different types of broker licenses, issued by different agencies, and having different licensing requirements.
 
There is the finance lender license (CFL) and the residential mortgage lender license (CRML) both of which are issued by the California Department of Business Oversight (DBO). There is also the real estate broker license, often called a BRE license because it is issued by the Bureau of Real Estate which also allows for working as a mortgage broker.
 
The different broker licenses have slightly different licensing requirements. Some have to submit a surety bond as an extra layer of protection for homebuyers, whereas others need to pass pre-licensing education and an exam. Read on below for an overview of the different license types and what you need to do to get licensed.
For fun, here's some industry postings of actual jobs as loan officer:
http://jobs.mpamag.com/jobs/mortgage-loan-originators-15558.aspx
 
California Mortgage Broker License types
The following are the three types of mortgage broker licenses issued in California and who is required to obtain each of these.
 
?Finance broker license: Anyone making and brokering consumer and commercial loans in the state is required to obtain this type of bond (except those listed here). The limitation of this type of license is that such brokers are only allowed to broker loans with those holding a finance lender license. They cannot do business with any other type of lenders in the state, such as banks or credit unions.
?Residential mortgage lender license: This type of license is required of those who make or service residential mortgage loans in California. While it allows them to make and service loans it also lets  them to broker loans IF they also have a mortgage loan originators license. RML license holders can broker to other RML lenders, as well as institutional lenders, such as state or federally chartered institutions.
?Real estate broker license: This license allows licensees to act as real estate brokers and mortgage brokers in California. Due to the combined nature of the license, application requirements differ from the other two licenses and previous experience and an examination are necessary.
 
How to get licensed
The pre-licensing and application requirements for the different mortgage broker licenses vary slightly. Here is what each license applicant has to complete and comply with in order to obtain one of the above licenses.
 
To obtain a finance broker (and/or) lender license, you must apply through the Nationwide Mortgage Licensing System (NMLS) and submit a license application. The license applicationmust include a business plan, responses to disclosure questions, certificate of authority, an organizational chart, and a number of additional documents. Upon applying you will also be required to:
 
?Have a net worth of $50,000 if you are only applying for a residential broker license, a net worth of $250,000 if you are applying for a residential lender/broker license, and a net worth of $25,000 if you are applying for a non-residential lender or broker license (these applicants apply directly through the DBO instead of the NMLS)
?Submit and maintain a $25,000 surety bond for any of the above licenses.
?Submit criminal background checks for the owners, officers, directors, managers and all other persons responsible for lending activities
?Pay a $400 licensing and processing fee when applying at the NMLS
 
Residential mortgage lender license requirements
To obtain an RML license, you need to comply with the license requirements detailed below. Remember that to use your RML license for mortgage brokering activities, you must hold a California mortgage loan originator license, which you can also apply for through the NMLS. RML licenses are also obtained through the NMLS. When applying, apart from completing your application form, you will also need to:
?Become an approved lender or servicer for at least one of the following: the Federal Housing Administration (FHA), Veterans Administration (VA), Farmers Home Administration (FmHA), Government National Mortgage Association (Ginnie Mae), Federal National Mortgage Association (Fannie Mae), or Federal Home Loan Mortgage Corporation (Freddie Mac)
?Submit audited financial statements that document a net worth of at least $250,000
?Submit a $50,000 surety bond
?Submit criminal background checks performed for all stockholders, principal officers and directors
?Pay a $1,100 licensing and processing fee through the NMLS
 
Real estate broker license requirements
To become licensed as a real estate broker, you will need to apply through the California Bureau of Real Estate. Additionally, to function as a mortgage broker, applicants must also get a mortgage license originator endorsement from the NMLS. To become licensed as real estate brokers, applicants will need to:
?Submit a broker examination application (and pay a $95 exam fee)
?Complete or submit proof of completion of eight college-level courses in real estate
?Provide proof of at least two years of full-time licensed salesperson experience within the last five years
?Pass the broker examination
?Complete and submit a broker license application (and pay a $300 licensing fee) and a Live Scan Service Request
 
Unlike the above license types, applicants for this license are not required to post a surety bond. Once you have received your real estate broker license from the BRE, you can then apply for an MLO endorsement through the NMLS. This will require you to submit an application and, depending on whether you are applying as a company or individual, you may also be required to pass further education and examination.
 
Surety bond requirements
The requirement for finance brokers and residential mortgage lenders to obtain a surety bond may require some explaining for new applicants. Surety bonds are binding agreements required by the state. They are put in place to guarantee that licensees who are bonded will comply with state laws and regulations such as the California Residential Mortgage Lending Act or the California Finance Lenders Law.
 
The provisions of these bonds vary depending on the license type. They are typically conditioned to guarantee that licensees will comply with any agreements they have with their clients and fulfill any obligations they have under the above-mentioned laws. Bonds also guarantee that licensees will not engage in dishonest business practices such as fraud or misrepresentation.
 
If brokers are found to have violated any of the above conditions, a claim can be made against their bond by anyone who has been harmed as a result of such violations. In this case, the surety which backs the bond will extend compensation to claimants, which can be as high as the full amount of the bond. Under the bond agreement, the bonded licensee must then repay the surety in full for any compensation it extends.

Posted by Anne James on March 5th, 2019 8:05 AM

Getting pre-approved for a home loan purchase doesn't have to cost you more than 4 FICO points for a 'hard inquiry.' Once you've let your loan broker or loan officer run your credit, you should know your real FICO score-not the Credit Karma or credit card FICO reported so often inaccurately from a Residential Mortgage Credit Report that should be handed to you in a two-page summary and reviewed for issues with your 'first-choice broker' or lender.
After you know your RMCR FICO score, the middle of the three scores and the lowest middle of two or more borrowers, you can shop rates confidently by comparing rates for the loan on the same day with two or three lenders. The is rates change daily so be sure and ask for your LOAN ESTIMATE from the lenders on the same day. 
About running that RMCR report with your 'First-Choice' lender: Get the FICO scores and review or choose another lender. The rest should go off your Consumer two-page FICO scores you are entitled to recieve.
Happy hunting and remember, you have only 14 days to recieve full lender approval once you make a successful offer on a home so get that pre-approval first!

Posted by Anne James on November 6th, 2018 9:07 AM
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