SAFE Prep Course On Thursday Aug 5th at SLCC!!

Praedo Institute has an upcoming SAFE prep course on Thursday, August 5th from 9:00 am-12:00 pm! The class will be held in the Wasatch room of the Salt Lake Community College located at 9750 South 300 West in Sandy. This 3-hour course will count as 3 credits toward your continuing education and will prepare you for the SAFE exam. Sign up today as seats are going fast. Seriously sign up now.

More on Social Networking

I don't want to beat on a dead hose here but I want to encourage everyone to take advantage of social networking. If you don't you will get left behind. Marketing during tougher times will pay off with dividends as things get better. Take advantage of Facebook, Twitter, and other social networking tools. These are free tools and you must take advantage of this changing marketing world in order to stay in the game, The way people receive information has changed, products and the services now go to them.

Email support@praedo.com for more information. We are always happy to help at the Praedo Institute.

Facebook: Your Newest Marketing Tool

As if you haven't heard enough about facebook. Facebook just announced their 500 millionth user on Tuesday. There is now talk of an alleged contract that would award 50% of facebook to an associate of Mark Zuckerburg (Founder of Facebook), if the contract is found to be binding by the judge. Also, there is a movie coming. And this is to say absolutely nothing of friend requests, inbox messages, liking, photo tags, wall posts, and poking.

Without going into the how-to of facebook (you can talk to your 9 year-old niece for that), I'd like to shed a little bit more light on the power of this social media giant. In fishing, they tell you to 'go where the fish are.' In business, it has always been my feeling that you should 'go where the people are.' It sounds simple enough, but many loan officers and real estate agents are still avoiding using facebook as they see it as a fad. It is not. This is not a furbie or a tickle me elmo, facebook is here to stay. The longer you hold off to take advantage of this free service, the more business you will lose and the more business your cutting-edge competitors are going to get. Take advantage of it, build a company profile, update your status, and request a friend or two. Your checkbook will thank you later.

One thing to keep in mind. Do not mention confidential material on facebook that you would not openly talk about elsewhere. If you update you status saying that 'my clients just put an offer on their dream home,' the seller's agent may see it and encourage the sellers to reject the offer and raise the price. Your buyers may find out. They will sue you. They may win. If you're not going to announce it in the middle of the town square, don't post it on facebook. With 500,000,000 users it's more like Times Square anyways.

Jumbo Loans Are On A Comeback Tour

Jumbo loans are reportedly making a comeback. This is great for the middle- to upper-income borrowers who have been unable to purchase some discounted dream homes because of the drying up of the jumbo market. Bankrate.com is reporting 30-year fixed jumbo loan rates for 5.5%, which is very surprising for an almost extinct loan program.

When it comes to borrowers, banks are still only accepting the cream of the crop as they try to minimize risk and keep only good loans on their books. This is a slow start to re energizing this loan program, but it is at least a start, and many loan officers across the country are rejoicing at the idea of the jumbo loan market being revived.

While I've never been an advocate of beating the dead horse, I did want to add another plug to my unofficial theme I've had for our readers over the last couple of weeks. Be the professional your clients expect. Explain the pros and cons of a jumbo loan and be equipped to explain all of your borrower's specific options. Knowledge is power.

Foreclosures . . . By Your HOA

Foreclosures by your HOA. It hasn't been a common topic that has gotten much media attention, but it is happening. As many homeowners are struggling to keep up with their mortgage payments, many have elected to stop paying their HOA in order to put as much money into their home as they can. This has pushed many homeowner associations to get desperate. They certainly have a duty to fulfill to the other home owners, but many who have fallen victim are outraged.

34 states allow for judicial foreclosures by home owner associations. Most states have a long redemption period so homeowners have the option of paying off their debt to the HOA. The redemption period is the time period that the homeowner has to pay back the HOA and reclaim their house after the Home Owner's Association has taken title. Some states have very short redemption periods that hardly give the home owner the option to get to the bank before their house is gone forever. Florida's redemption period, for example, is ten days.

While this may never affect someone you know, it is happening and it is a stark reminder to mortgage brokers and real estate agents to advise their clients of ALL the costs of home ownership.

Mortgage Applications Are Way Down

Mortgage applications have dropped considerably since the expiration of the $8,000 home buyer tax credit. On an annual basis, the mortgage applications were down last week 43%.

Rates have not been this low for a long time but the lower rates don't seem to be helping anything. There is also a lower number of mortgage brokers and loan officers across the nation. While there is a large number of Americans who are apprehensive about jumping head first into purchasing a home, there is still a lot of opportunity in the market. It is a good time to go back to the marketing basics and update your clients. Yes, closing deals is more difficult these days, but those who market themselves well in this industry and perform a good service will thrive. Acknowledge opportunity for what it really is.

Be The Expert Your Clients Expect

I've said it many times before in this blog that one of the positive things that has come out of the bursting of the housing bubble was a cleansing of the real estate and mortgage industries. For a long time this industry has had a lot of part timers who would maintain a license and only close a deal or originate once or twice a year. I am the last one that will ever mock the entrepreneurial sprit. It is the entrepreneurial spirit that made this country what it is today and will be what continues to take it to new heights in the future. However, the problem with only getting your feet wet in this industry is that it is difficult, if not impossible, to stay on top of this constantly changing and evolving industry while maintaining another full time job.

With many of the part timers out of the industry, there is a call to the rest of the industry to raise the bar. Whether you are a seasoned veteran or a newcomer in this industry, sharpening your skills will pay off and with dividends. Your clients will notice, and your fountain of knowledge and expertise will spread throughout the land. Maybe not throughout the land, but you will get a lot more referrals!!

How important it is every day and every week to better understand your disclosures, and their time limits, and the laws, rules, and statutes that accompany them. Understand the good faith estimate and RESPA, no matter what industry you affiliate yourself with. This is one of the most powerful and important financial decisions most of your clients will ever make!! Help them to understand the costs, the market values, and treat it like it is - an investment!!! This is not just another commission!! Be professional in the way that you deal with it, but counsel with your clients and help them to understand the pros and cons of their investment decisions. You're the expert and they depend on you.

Nevada Has Jumped on The Bandwagon

Just a year ago, there were whisperings of whether or not the Nevada Mortgage Lending Division would join the NMLS. However, with the statutory guidelines set in place and the comment period being over, Nevada is officially joining the NMLS. They didn't have much of a choice due to the federal regulation of the SAFE act but they did have the choice of doing nothing. Doing nothing would obligate the Department of Housing & Urban Development to take over which would not be a fun process for anyone involved.

There is an unofficial fall requirement for Nevada mortgage brokers to join the NMLS and take their education but more news will follow on that.

Senate Rescues Homebuyer Tax Credit

On June 30th at midnight, the homebuyer tax credit was scheduled to end. However, Senate pulled a rabbit out of a hat and approved an extension of the homebuyer tax credit.

The homebuyer tax credit itself will not be extended but the closing date that current homebuyers have scheduled is been extended. With new federal laws and more complicated short sales, deals are taking a longer time to close. This extension will help over 180,000 homebuyers take advantage of the tax credit which translates into deals not falling through as many homebuyers were planning on using the tax credit for the purchase of their home in some way.

Thanks to one of the largest and most active political parties in the nation, the real estate industry has pushed congress to extend the closing date to September 30th. Yet another example of the powerful lobbying potential of the real estate and mortgage industies.