Happy Birthday, Rhonda Porter! March 16, 2008
Happy Birthday, Rhonda!
We appreciate you sharing all your knowledge and expertise on the mortgage market. The coming days should be VERY interesting!
THANK YOU for all the time you spend with raincityguide’s readers.
The Three Amigos Podcast May 24, 2007
I am amazed at just how much blogging has impacted my career in a relatively short period of time. Yesterday, I had the honor being interviewed with Brian Brady of America’s Most Opinionated Mortgage Broker, and Morgan Brown of Blown Mortgage.
The podcast was by request of Jeff Chasin of Blogging and Online Marketing for Mortgage Brokers. To listen to our podcast, click here. It’s 41 minutes (yes, 41 minutes) addressing the benefits of blogging for mortgage professionals.
One of the largest rewards of blogging for me has been all of my new amigos. :) Group hug, everyone!
Sphere: Related ContentNews at 6:00 April 24, 2007
I was contacted by KOMO this morning to see if they could stop by my office this afternoon to interview me regarding subprime mortgages and how it has impacted consumers.
If I’m not on the cutting room floor…you can tune in tonight at 6:00 p.m. on Channel 4. 
It may not be your business…but it is all mine! March 21, 2007
Two years ago, our company switched our loan operating system to Encompass, so I have data available for the past two years (closed transactions from March 2005 - March 2007). I’m pretty surprised at the results after analyzing my purchase transactions and so thought I would share this with you.
Mid Credit Scores
3% had credit scores between 600-619
17% had credit scores between 620-679
25% had credit scores between 680-719
47% had credit scores between 720-799
8% had credit scores above 800
25 % of clients purchased with 100% LTV Financing (80/20 or 100% LPMI)
Average zero down mid credit score = 723
7% FHA Financing
- Mid credit scores ranging from 644 – 744
- Average FHA mid credit score = 720
39% had 20% or more for down payment.
The most popular loan programs for my clients:
-
47% opted for a 30 year fixed conventional
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26% have 5 year fixed period ARMs
So what do I make of this? The consumers with scores under 620 will have a much tougher time, if they’re able to purchase at all. Especially without a down payment of 5% or better. Depending on credit history (1-2 years of no late payments), they may be able to go FHA or VA for financing. The 3% (credit scores of 600 – 619) of my clients who I helped with financing over the past two years, would probably need to go back to drawing board and work on their improving credit scores (and, more importantly, work on changing their credit/spending habits) before being able to obtain financing for a home. With that said, out of the 3% who were able to buy, I’m only worried about two buyers who may not have followed my advice of working on their credit and revamping their budget (and one of them has a 5 year fixed period ARM).
The 17% (credit scores between 620-679) would probably fit into FHA financing. Over the past two years, most of my clients would opt for 80/20 or 100% (LPMI) financing over FHA for the following reasons:
- The upfront PMI (1.5% of the loan amount) is no longer refundable on new loans.
- Monthly PMI was not tax deductible (VA does not have PMI) for loans originated before 2007.
- The payment with 80/20s was lower than FHA.
- Borrowers could keep the 3% down (required with FHA) in reserves instead of draining their savings.
This information is just a reflection of my purchase business from March of 2005 to my closed transactions as of today. Historically, I have served more south King County families. Just over the past year, with my move to Seattle, my business is beginning to expand to Seattle and Bellevue areas.
Before reviewing this data, I was certain that a larger percentage of my business was zero down or subprime. Now I can see that I’ve done many zero down/subprime “prequalications or preapprovals” and they just didn’t pan out…but the effort that goes into a preapproval almost feels like you completed a transaction…especially for a subprime buyer.
Again, I don’t represent every lender…just little ol’ me! 
