The New Remodel

If you haven't already noticed, there's been a lot of buzz recently in magazine and newspapers on the 'new remodel.' With money tight, many homeowners simply can't afford or don't see the return in expensive remodels. As it always does, the design savvy remodel industry is suggesting to do more with what you have and to make minor changes in your home like lighting and paint rather than a massive overhaul that leaves the whole family eating in the garage all summer. If you are considering a remodel, look around and see where you are going to get the best design and best return in mind. We will be blogging more and more on this topic in the coming months.

We are even setting the standard with our new remodeled blog. Let us know if you like it!!

Overtime For Loan Officers Now Means More Pay

Currently the Fair Labor Standards Act allows loan officers to work overtime without being paid. Such a ruling is a huge benefit to managers but not as much for loan officers themselves. Even with the lobbying of several organizations such as the Mortgage Banker's Association, the exemption for loan officers was overruled. MBA senior executive Steve O'Connor commented on the ruling by saying 'It has been, and remains our contention that those who fall into the category of mortgage loan officers described in the opinion spend a majority of their time performing exempt administrative or executive duties; thus they should be exempt from FLSA coverage." Nonetheless the Department of Labor's reversal of their 2006 decision should bring a lot of change and adjustments to the industry.

Are 5% mortgage rates history?

The Fed has promised to continue to buy mortgage backed securities until April 1 of this year. Many are speculating that interest rates are going to rise considerably once the free market adapts to the new risk and the government has stepped out of the picture. While it is more than likely that the lenders will raise interest rates to cover this new risk, rates will more than likely not rise very much. Rising rates will push an already shifty housing market even lower to make up for the rise in interest rates. With stated-income loans and other risky loan programs almost completely extinct, people are starting to take a more realistic approach as to what they can and can't afford in a home. Even if they would like to get in over their head, the underwriting department at almost any lender will help them change their mind. If interest rates do rise, housing prices will adjust as well.

Testing Centers Filling Up FAST

Testing Centers are starting to fill up seats across the country . . . fast. With nearly every loan originator in the country needing to be licensed over the course of 2010, there are only so many spots left in testing centers. While hundreds of suggestions have been made by various Departments of Real Estate and other departments alike to the NMLS to expand the number of available seats in testing centers, those suggestions have fallen on deaf ears and the results are starting to float to the surface. In the State of Utah alone, students and experienced loan originators alike are being asked to wait 45 days before they can take an NLMS approved exam due to packed testing centers. What is more alarming than anything is the fact that we are in well . . . March. What happens to the majority of the market that will be scrambling to take their exams toward the end of the year? Worst yet, if you do not pass your exam and have to wait 30 days . . . you may have be out of work while you're waiting to retest.

The only reaction that we can have in this scenario is one that is born out of proaction. Don't wait to take your test. We would recommend signing up for one of our live test prep courses so that you can pass the first time. If you are interested please visit the Praedo Institute website at http://www.praedo.com/mortgage

Short Sales: Yet Another Avenue For Loan Fraud

Everyone in the mortgage industry is used to hearing about 'that agent' or 'that office' that is committing fraud. We gasp and point fingers and then go back to our desks, but at the end of the day it's important to ask yourself if you are committing fraud. When a bank issues a short sale agreement, it does so with a specific seller and a specific financial history in mind. If the buyer backs out of the offer, this short sale agreement is out of the picture. It is not valid for any other buyer. As a buyer's agent, if you were to use an old short sale agreement in order to intrigue other buyers, you are breaching your fiduciary duties, confidentiality laws, and laws that the third party bank or lender required when they issued the letter.

Stay tuned for more information on how to avoid loan fraud.

Fingerprinting Convention

As you are already aware, NMLS is not accepting your old fingerprints and all licensees must get fingerprinted again. With so many brokers and lenders needing to be fingerprinted in the State of Utah, Praedo Institute is looking to set up a day in which all licensees can come and take care of this requirement. Stay tuned for more details.