Attention Real Estate & Mortgage Professionals. If you would like to learn how to add loan modification or loss mitigation services to your business email Mike Boyd at mboyd44@gmail.com or call 678-796-3964. The key is to work with an honest, ethical attorney based mitigation company that will work in your client's best interest. These services will help save your clients money and help you increase your bottom line at the same time.
Loss mitigation is the process of trying to stop a home foreclosure before it occurs. The loss mitigation process can be led by either an employee or representative of the lender or a third party that works strictly for the best interests of the home owner. Keep in mind that the employee of the lender will work in the best interest of the lender not the borrower. The loss mitigation process is often better handled by a third party due to their experience and the ability to deal with the lending company without a personal attachment to the situation. There are many companies offering these services today. Many are not attorney based and have no experience with RESPA or TILA violations. They simply entered the market to capitalize on the current market conditions. Working with an attorney based company with past experience with RESPA and TILA and mortgage closings should be your first choice.
Loss mitigation was introduced as a collaborative effort between the federal government and the mortgage industry. The program was established to help home owners that were facing the loss of their homes due to delinquent payments. A professional loss mitigation counselor will work with the home owner as well as the lender to find an alternative to foreclosure.
There are several options when it comes to loss mitigation and the main focus should be to keep the home owner in their home. Typical services include:
Loan Modification
Repayment Plan or Forbearance Agreement
Foreclosure Refinance
Short Sale
Chapter 13 Bankruptcy
Partial Claim
Special Forbearance
Deed-in-lieu of Foreclosure
A loss mitigation counselor should try to set up a loan modification plan or a repayment plan that is realistic for the home owner as well as the lending institution. It is important that the plan be realistic when it comes to the home owners ability to repay the modified payment plan and to cover other expenses with a small cushion left over for miscellaneous living expenses. It does not help the borrower or the lender if the loan is modified and the borrower cannot make the new payments on time.
Loss mitigation first goal is to keep the home owner in their home. If that does not seem like a realistic outcome, every attempt should be made to help the home owner get the most for their home as they possibly can before a foreclosure sale takes place. This may include deed-in-lieu of foreclosure, a partial forbearance or a short payoff if a qualified purchaser can be found.
Taking the time to know what the borrowers rights are in the foreclosure process, it is possible to use the loss mitigation process to help the borrower get back on track with mortgage payments and give them an opportunity to get their home sold instead of going into foreclosure. In today's market Lenders want to keep the home owner in their home and it is up to the home owner to show that they will be able to catch up or maintain the mortgage payment in the future. Most companies will require the borrower to complete a financial worksheet and to provide proof of income.
The real estate and mortgage professinal that can help clients explore their options to avoid foreclosure will be in high demand in today's market.
Wednesday, November 26, 2008
Sunday, July 27, 2008
Sunday, June 29, 2008
RESPA Reform
HUD PROPOSES MORTGAGE REFORM TO HELP CONSUMERS BETTER UNDERSTAND THEIR LOAN, SHOP FOR LOWER COSTS
Jackson: Need for reform is now; proposal to save consumers almost $700
WASHINGTON – In an effort to significantly improve the complicated, unclear and costly homebuying process, U.S. Housing and Urban Development Secretary Alphonso Jackson today proposed mortgage reform designed to help consumers better understand their loan terms so that they can shop more effectively for the largest purchase of their lives.
HUD's proposal reforms the more than 30-year old rules of the Real Estate Settlement Procedures Act (RESPA), and improves disclosure of the loan terms and closing costs consumers pay when they buy or refinance their home. For the first time ever, HUD is proposing that mortgage lenders and brokers provide consumers with a standard Good Faith Estimate. By more openly disclosing the key elements of the loan and by controlling fee inflation, the Department seeks to provide consumers with enough information to allow them to shop more effectively for the lowest cost loan. HUD's economic analysis finds that by offering consumers clearer, more certain cost estimates, the average borrower will save nearly $700.
"A lot of the mortgage problems we see today are directly related to the fact that few people fully understand this process," said Jackson. "Buying a home can be very intimidating. Consumers have had no assurance that the loan terms and closing costs they are offered will reflect what they confront at the settlement table, and that's been one of the factors driving the current housing downturn. Our proposal fixes that. We owe it to the American homebuyer to give them the information they need to make smart choices."
Brian Montgomery, HUD's Assistant Secretary for Housing, added, "It's not right that millions of consumers go to the settlement table without fully understanding the mountain of paperwork they're asked to sign and, on top of that, expected to pay thousands of dollars in closing costs for services they've never heard of. This new Good Faith Estimate will give families the tools they need to understand what they’re getting into before they sign on the dotted line."
In light of recent increases in loan defaults and foreclosures, the need for reform is imperative. When President Bush announced his comprehensive plan to address rising foreclosures last August, he pledged to offer new mortgage rules that would help families to avoid getting into trouble in the first place. This proposed RESPA rule makes good on that pledge.
HUD is proposing to offer consumers a standard Good Faith Estimate (GFE) that will substantially enhance disclosure of all important aspects of the loan, including:
The interest rate and monthly payment;
Whether the interest rate and principal balance can increase and by how much; and
Whether the loan has a prepayment penalty or balloon payment.
The proposed Good Faith Estimate would consolidate closing costs into major categories to prevent "junk fees" and display total estimated settlement charges prominently on the first page so the consumer can easily compare loan offers. In addition, HUD's new proposed rule would specify the charges that can and cannot change at settlement. If a fee changes, HUD proposes to limit the amount it can change. HUD also proposes to modify the HUD-1 settlement statement to help consumers compare the anticipated charges on the Good Faith Estimate and their actual charges.
The Good Faith Estimate would also require that lender payments to mortgage brokers (often called Yield Spread Premiums) be disclosed. It is HUD's belief that these payments are directly dependent on the interest rates that consumers agree to and therefore ought to be disclosed. To ensure that HUD's new proposal would not create a consumer bias against brokers, the Department did rigorous consumer testing and found the proposed Good Faith Estimate helped consumers to select the lowest cost loan more 90 percent of the time, regardless of whether the loan was originated by a lender or a broker.
Finally, HUD is proposing that settlement agents read a "closing script" to borrowers at the settlement table and that a copy be provided to the borrower. This closing script would ensure that the settlement agent not only compares the borrower's estimated and actual charges, but would detail the key terms of the loan. HUD's extensive consumer testing found borrowers appreciated the enhanced disclosures, believed the loan details on the closing scripts were clear and understandable, and reacted positively to having the scripts read out loud.
Legislative Changes to RESPA
To further bolster consumer protection and to ensure uniform and consistent enforcement of RESPA, HUD intends to seek legislative changes to the Act that will complement the regulatory improvements made by the rule. Currently, RESPA does not provide HUD with enforcement mechanisms for some of the most important consumer disclosures and protections. A lack of enforcement authority and clear remedies for violations of critical sections of RESPA negatively impact consumers and diminish the effectiveness of the statute.
HUD will seek the authority to impose penalties for violations of specific sections of RESPA, including Section 4 (provision of uniform settlement statement); Section 5 (GFE and settlement costs booklet); Section 6 (loan servicing); Section 8 (prohibition against kickbacks, referral fees, and unearned fees); Section 9 (title insurance); and portions of Section 10 (regarding escrow accounts). In addition, HUD proposes the authority for the Secretary and State regulators to seek injunctive and equitable relief for violations of RESPA; require delivery of the HUD-1 to the borrower three days prior to closing; and establish a uniform statute of limitations applicable to governmental and private actions under RESPA.
Jackson: Need for reform is now; proposal to save consumers almost $700
WASHINGTON – In an effort to significantly improve the complicated, unclear and costly homebuying process, U.S. Housing and Urban Development Secretary Alphonso Jackson today proposed mortgage reform designed to help consumers better understand their loan terms so that they can shop more effectively for the largest purchase of their lives.
HUD's proposal reforms the more than 30-year old rules of the Real Estate Settlement Procedures Act (RESPA), and improves disclosure of the loan terms and closing costs consumers pay when they buy or refinance their home. For the first time ever, HUD is proposing that mortgage lenders and brokers provide consumers with a standard Good Faith Estimate. By more openly disclosing the key elements of the loan and by controlling fee inflation, the Department seeks to provide consumers with enough information to allow them to shop more effectively for the lowest cost loan. HUD's economic analysis finds that by offering consumers clearer, more certain cost estimates, the average borrower will save nearly $700.
"A lot of the mortgage problems we see today are directly related to the fact that few people fully understand this process," said Jackson. "Buying a home can be very intimidating. Consumers have had no assurance that the loan terms and closing costs they are offered will reflect what they confront at the settlement table, and that's been one of the factors driving the current housing downturn. Our proposal fixes that. We owe it to the American homebuyer to give them the information they need to make smart choices."
Brian Montgomery, HUD's Assistant Secretary for Housing, added, "It's not right that millions of consumers go to the settlement table without fully understanding the mountain of paperwork they're asked to sign and, on top of that, expected to pay thousands of dollars in closing costs for services they've never heard of. This new Good Faith Estimate will give families the tools they need to understand what they’re getting into before they sign on the dotted line."
In light of recent increases in loan defaults and foreclosures, the need for reform is imperative. When President Bush announced his comprehensive plan to address rising foreclosures last August, he pledged to offer new mortgage rules that would help families to avoid getting into trouble in the first place. This proposed RESPA rule makes good on that pledge.
HUD is proposing to offer consumers a standard Good Faith Estimate (GFE) that will substantially enhance disclosure of all important aspects of the loan, including:
The interest rate and monthly payment;
Whether the interest rate and principal balance can increase and by how much; and
Whether the loan has a prepayment penalty or balloon payment.
The proposed Good Faith Estimate would consolidate closing costs into major categories to prevent "junk fees" and display total estimated settlement charges prominently on the first page so the consumer can easily compare loan offers. In addition, HUD's new proposed rule would specify the charges that can and cannot change at settlement. If a fee changes, HUD proposes to limit the amount it can change. HUD also proposes to modify the HUD-1 settlement statement to help consumers compare the anticipated charges on the Good Faith Estimate and their actual charges.
The Good Faith Estimate would also require that lender payments to mortgage brokers (often called Yield Spread Premiums) be disclosed. It is HUD's belief that these payments are directly dependent on the interest rates that consumers agree to and therefore ought to be disclosed. To ensure that HUD's new proposal would not create a consumer bias against brokers, the Department did rigorous consumer testing and found the proposed Good Faith Estimate helped consumers to select the lowest cost loan more 90 percent of the time, regardless of whether the loan was originated by a lender or a broker.
Finally, HUD is proposing that settlement agents read a "closing script" to borrowers at the settlement table and that a copy be provided to the borrower. This closing script would ensure that the settlement agent not only compares the borrower's estimated and actual charges, but would detail the key terms of the loan. HUD's extensive consumer testing found borrowers appreciated the enhanced disclosures, believed the loan details on the closing scripts were clear and understandable, and reacted positively to having the scripts read out loud.
Legislative Changes to RESPA
To further bolster consumer protection and to ensure uniform and consistent enforcement of RESPA, HUD intends to seek legislative changes to the Act that will complement the regulatory improvements made by the rule. Currently, RESPA does not provide HUD with enforcement mechanisms for some of the most important consumer disclosures and protections. A lack of enforcement authority and clear remedies for violations of critical sections of RESPA negatively impact consumers and diminish the effectiveness of the statute.
HUD will seek the authority to impose penalties for violations of specific sections of RESPA, including Section 4 (provision of uniform settlement statement); Section 5 (GFE and settlement costs booklet); Section 6 (loan servicing); Section 8 (prohibition against kickbacks, referral fees, and unearned fees); Section 9 (title insurance); and portions of Section 10 (regarding escrow accounts). In addition, HUD proposes the authority for the Secretary and State regulators to seek injunctive and equitable relief for violations of RESPA; require delivery of the HUD-1 to the borrower three days prior to closing; and establish a uniform statute of limitations applicable to governmental and private actions under RESPA.
Sunday, June 22, 2008
How to Buy & Sell Your Home Wtihout Getting Ripped Off! book review
Patricia Boyd, the author and co-founder of the Residential Finance Specialist (RFS) (formerly known as the CFS) designation program wrote a book for consumers based on the philosophy of the RFS program. This book promotes working with an honest, ethical real estate power team and promotes the value of RFS designees.
Book Pioneers New Philosophy:
Real Estate Consumer Advocacy
Review by Ray Bowie, Naples, Florida
Books on buying and selling real estate abound, but it is truly rare to read a real estate book that breaks new ground -- or indeed, pioneers a new philosophy and launches a new movement: real estate as consumer advocacy.
This seminal work, authored by real estate sales and financing experts Patricia Boyd and Lonny Coffey, sounds the clarion call to buyers and sellers -- as well as to real estate brokers, mortgage lenders and other service providers --for a new consumer orientation in real estate transactions.
As the authors note, real estate transactions have heretofore been treated as the selling of a product, whether the product be the property itself or the mortgage loan that finances it. The historical focus has, therefore, been on salesmanship: getting the property sold or the loan made. Lacking in this focus has been the interests of the real estate consumer -- the buyer or the seller. This book introduces something new and something revolutionary into the world of real estate transactions: a view of the buying or selling of real estate as a "consumer-driven" process, of buyers and sellers as informed consumers, and of real estate brokers and mortgage lenders as consumer advocates. The book serves as a road map for buyers and sellers who want to participate actively and intelligently in their realty transactions... and who want to stop getting "ripped off" by brokers, lenders and other service providers who put their own interests ahead of the consumer's interests. Just as importantly, the book shows real estate brokers and mortgage lenders how to work with this dawning new world of informed consumers -- not in the old way as salesmen, but rather as professional consumer advocates. It is the twin goal of the book, one it certainly attains, of educating real estate buyers and sellers how to be informed consumers and also training brokers, lenders and service providers as to how to be their advocates.
Patricia Boyd brings vast experience as a top-producing real estate broker, real estate trainer and instructor and Residential Finance Specialist, to produce a practical, well-written and inspiring book that may well launch a new way of buying and selling real estate. As a former real estate broker with a number of professional Realtor designations (ABR, CIPS, CRB, CRS, and GRI), and now as a real estate attorney actively advocating the interests of buyer and seller clients, I applaud this book as the herald of a new real estate consumer revolution.
Book Pioneers New Philosophy:
Real Estate Consumer Advocacy
Review by Ray Bowie, Naples, Florida
Books on buying and selling real estate abound, but it is truly rare to read a real estate book that breaks new ground -- or indeed, pioneers a new philosophy and launches a new movement: real estate as consumer advocacy.
This seminal work, authored by real estate sales and financing experts Patricia Boyd and Lonny Coffey, sounds the clarion call to buyers and sellers -- as well as to real estate brokers, mortgage lenders and other service providers --for a new consumer orientation in real estate transactions.
As the authors note, real estate transactions have heretofore been treated as the selling of a product, whether the product be the property itself or the mortgage loan that finances it. The historical focus has, therefore, been on salesmanship: getting the property sold or the loan made. Lacking in this focus has been the interests of the real estate consumer -- the buyer or the seller. This book introduces something new and something revolutionary into the world of real estate transactions: a view of the buying or selling of real estate as a "consumer-driven" process, of buyers and sellers as informed consumers, and of real estate brokers and mortgage lenders as consumer advocates. The book serves as a road map for buyers and sellers who want to participate actively and intelligently in their realty transactions... and who want to stop getting "ripped off" by brokers, lenders and other service providers who put their own interests ahead of the consumer's interests. Just as importantly, the book shows real estate brokers and mortgage lenders how to work with this dawning new world of informed consumers -- not in the old way as salesmen, but rather as professional consumer advocates. It is the twin goal of the book, one it certainly attains, of educating real estate buyers and sellers how to be informed consumers and also training brokers, lenders and service providers as to how to be their advocates.
Patricia Boyd brings vast experience as a top-producing real estate broker, real estate trainer and instructor and Residential Finance Specialist, to produce a practical, well-written and inspiring book that may well launch a new way of buying and selling real estate. As a former real estate broker with a number of professional Realtor designations (ABR, CIPS, CRB, CRS, and GRI), and now as a real estate attorney actively advocating the interests of buyer and seller clients, I applaud this book as the herald of a new real estate consumer revolution.
RFS Licensed Facilitation Centers (LFC's)
Key Points
¨ RFS LFC’s are independent contractors
¨ RFS LFC’s are responsible for marketing and delivering RFS® seminars
¨ RFS LFC’s are responsible for all expenses related to marketing/delivering seminars
¨ RFS LFC’s are entitled to wholesale pricing on all RFS® seminars and products
¨ C.E. credit is available for the RFS® designation seminar in most states
LFC Categories
1. Independent Educators as Certified Instructors (CI’s)
Individuals that have been trained and licensed by Patricia Boyd but are not a part of a formal school or training institution.
2. Schools or Training Institutions
Established real estate schools that offer RFS® seminars and products as well as curriculum not associated with RFS®.
3. Contact boydrfs@gmail.com for more information about becoming a RFS LFC
¨ RFS LFC’s are independent contractors
¨ RFS LFC’s are responsible for marketing and delivering RFS® seminars
¨ RFS LFC’s are responsible for all expenses related to marketing/delivering seminars
¨ RFS LFC’s are entitled to wholesale pricing on all RFS® seminars and products
¨ C.E. credit is available for the RFS® designation seminar in most states
LFC Categories
1. Independent Educators as Certified Instructors (CI’s)
Individuals that have been trained and licensed by Patricia Boyd but are not a part of a formal school or training institution.
2. Schools or Training Institutions
Established real estate schools that offer RFS® seminars and products as well as curriculum not associated with RFS®.
3. Contact boydrfs@gmail.com for more information about becoming a RFS LFC
RFS Contact Info
RFS Contact Info
Contact Phone FAX Email
Patricia Boyd 678.796.4613 boydrfs@gmail.com
Mike Boyd 678.796.3964 mboyd44@gmail.com
Charles Dahlheimer 314.664.8552 314.664.6310 charlesd@rfcouncil.com
Linda Dahlheimer Linda@rfcouncil.com
Contact Phone FAX Email
Patricia Boyd 678.796.4613 boydrfs@gmail.com
Mike Boyd 678.796.3964 mboyd44@gmail.com
Charles Dahlheimer 314.664.8552 314.664.6310 charlesd@rfcouncil.com
Linda Dahlheimer Linda@rfcouncil.com
QP IIIx Real Estate Calculator
The Qualifier Plus IIIx is the recommended calculator for the RFS® seminar. We have collaborated to create a “RFS Success Kit” that includes:
¨ QPIIIx Calculator
¨ Quick-Start Tutorial CD
¨ Step-by-step Workbook
¨ QPIIIx Calculator
¨ Quick-Start Tutorial CD
¨ Step-by-step Workbook
About Patricia Boyd
Patricia Boyd is the author of the RFS Seminar, "Real Finance: A Consumer Advocate Approach to Real Estate & Mortgages.
Boyd received her Real Estate Broker’s License at the University of Texas in Arlington. She has been in the real estate and mortgage industry as a top producer since 1980. In 1987 she began educating Realtors, loan originators and underwriters.
In 1989 she recognized that finance was a core competency that must be developed for a truly successful real estate career. She wrote and published two books on real estate finance, Real Accountability in Your Real Estate Team and Real Finance: The Key to Listing & Selling Real Estate. She then developed seminars and created the Residential Finance Specialist (RFS®) designation program. She is also the author of a book for consumers titled How to Buy & Sell Your Home Without Getting Ripped Off! This book promotes working with RFS® designees. She was also the show host for Take Charge! on RealNet Direct TV.
Boyd received her Real Estate Broker’s License at the University of Texas in Arlington. She has been in the real estate and mortgage industry as a top producer since 1980. In 1987 she began educating Realtors, loan originators and underwriters.
In 1989 she recognized that finance was a core competency that must be developed for a truly successful real estate career. She wrote and published two books on real estate finance, Real Accountability in Your Real Estate Team and Real Finance: The Key to Listing & Selling Real Estate. She then developed seminars and created the Residential Finance Specialist (RFS®) designation program. She is also the author of a book for consumers titled How to Buy & Sell Your Home Without Getting Ripped Off! This book promotes working with RFS® designees. She was also the show host for Take Charge! on RealNet Direct TV.
RFS Vision & Mission Statement
Vision Statement
The RFS Seminar helps real estate and mortgage professionals add value to their services and protect their clients from being ripped off by predatory business practices.
Integrity is the cornerstone of the RFS designation.
Mission Statement
The RFS Seminar helps real estate and mortgage professionals create wealth and financial independence as they gain recognition for honesty, ethics and exceptional service. RFS designees achieve incomparable success as they provide counseling to consumers to help them avoid getting ripped off when buying, selling, investing or refinancing real estate.
The RFS Seminar helps real estate and mortgage professionals add value to their services and protect their clients from being ripped off by predatory business practices.
Integrity is the cornerstone of the RFS designation.
Mission Statement
The RFS Seminar helps real estate and mortgage professionals create wealth and financial independence as they gain recognition for honesty, ethics and exceptional service. RFS designees achieve incomparable success as they provide counseling to consumers to help them avoid getting ripped off when buying, selling, investing or refinancing real estate.
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