Posts Tagged ‘mortgage lenders’

VITEK Ranked #6 Mortgage Banker in Sacramento Region

Thursday, April 13th, 2017

We’re excited to announce the Sacramento Business Journal recently ranked VITEK Mortgage Group a top-ten mortgage banker in the greater Sacramento region! VITEK was ranked #6 in dollar volume for residential purchase home loans.* We look forward to continuing to grow and help home buyers in the communities we serve!

We're Moving!

*Ranked by 2015 dollar volume of purchase home loans. Published by the Sacramento Business Journal on 3-10-17.

SAR Scholarship Fundraiser Was A Huge Success

Tuesday, September 23rd, 2014

We feel privileged when we have the opportunity to sponsor an event helping support our local community. Although our branches spread wide, our roots are here in Sacramento.

Last week was our third time sponsoring and hosting the SAR Scholarship Fundraiser to help raise scholarship money for kids in our local community. This year’s event was a huge success with over 180 attendees and included, a fashion show with real estate leaders, an e-waste collection, and a lunch.

Over the years, the Sacramento Association of Realtors (SAR) has raise $433,800 to help our youth continue their education. SAR has raised more money for scholarships than any other Realtor association throughout the country including, the California Association of Realtors (CAR) and the National Association of Realtors (NAR)! We feel so privileged to be part of this great event.

Enjoy a few photos from this year’s fundraiser.

SAR Scholarship Luncheon Photo

SAR Scholarship Luncheon Photo

SAR Scholarship Luncheon Photo

SAR Scholarship Luncheon Photo

SAR Scholarship Luncheon Photo

SAR Scholarship Luncheon Photo

SAR Scholarship Luncheon Photo

SAR Scholarship Luncheon Photo

SAR Scholarship Luncheon Photo

How Will The New Mortgage Rules Affect You?

Tuesday, February 25th, 2014

Home lending rules and regulations have been continually changing over the past several years and 2014 looks to be the same. Below are 6 new mortgage industry changes to be aware of.

FHA loan limit decrease:

Buyers who need to borrow more than $474,950 (loan limits are county specific) will be unable to use FHA financing and must apply for a jumbo loan. Typically, this means, that instead of making a minimum down payment requirement of 3.5%, borrowers will be required to make a more significant down payment.

Ability-to-Repay/qualified-mortgage rule:

Borrowers without a lot of debt won’t be affected by this new rule, but those who have a debt-to-income ratio above 43% will find it harder to qualify for a loan unless they can reduce their debt or boost their income. Self-employed borrowers will need to provide more documentation of their income, and all borrowers will be required to provide extensive paperwork to prove their income and assets.

Caps on loan origination fees:

Lender fees will be limited to 3% of the loan amount, which means borrowers won’t be overpaying for their loans. However, the cap on fees may make lenders less likely to offer smaller loans. Another area that could be problematic is if a buyer wants to buy down the interest rate. Given that fees are limited to 3%, buying down an interest rate may not be possible.

Rising guarantee fees:

Lenders are likely to pass on higher fees that they pay to consumers, which will add to the cost of borrowing. That is on top of rising interest rates, which many experts are forecasting will reach at least 5% next year. While that’s not high in historical terms, rising borrowing costs mean that many people won’t be able to get as much house as they had hoped. Still, some experts see an upside: Higher rates may mean fewer loan applications in 2014. Tight competition between mortgage companies for a smaller pool of applicants could mean that lenders will loosen their standards a little and make it easier for some borrowers to qualify for a loan.

New mortgage servicing rules:

Mortgage servicers will be required to provide each borrower with a monthly statement that clearly shows their interest rate, loan balance and escrow account balance and an explanation of how their payment is being credited. Lenders will be required to credit mortgage payments on the day they are received. “Dual tracking” will no longer be allowed, which means that no foreclosure proceedings can be started until a borrower is at least 120 days late and until borrowers have completed a loss mitigation application and it has been addressed by the lender.

Appraisal delivery rules under Reg B and Z:

This rule requires that all appraisals and valuations be provided to the applicant. Delivery to the loan applicant must occur at least 3 days before closing escrow; this can potentially delay the closing date. This rule does allow for waivers in certain circumstances.

If you have any questions, or would like to discuss the impacts these new regulations could have on you and your ability to qualify for a loan, please feel free to contact me.

Photo of Jennifer Barth

Jennifer Barth
Mortgage Loan Originator
(916) 343-9633
Licensed – NMLS # 284448

Is Now The Right Time To Buy?

Wednesday, March 28th, 2012

Some home shoppers today choose to hold off buying a home fearing home prices will continue to drop, and they may miss an opportunity to purchase a home at a lower price. What many fail to realize, though, is even if home prices drop, if interest rates increase by 1 or 2%, their monthly payment will actually be higher. Currently interest rates are at historic lows, but they will not stay there for long. When interest rates increase, buyer purchasing power decreases.

The chart below compares loan payments and purchasing power if both of the above were to occur at the same time. Payments are based on a 30-year fixed FHA loan with 3.5% down.

Rate vs. Purchase Price

VITEK Mortgage Group
Local: (916) 486-6900
Toll Free: (800) 570-5300
*Loan amounts include FHA’s 1% upfront mortgage insurance premium. Programs, guidelines, terms and conditions are subject to change without notice. This is not a commitment to lend. Not all borrowers will qualify. Interest rates are valid as of 2-23-11 and are for example purposes only. Monthly payments are based on an FHA 30-year fixed rate loan at 96.5% LTV and include principal and interest only.

Update to California Short Sale Laws

Wednesday, August 31st, 2011

I want to share with you a great article by Dave Tanner of Hanson Law Firm on the latest California short sale laws. While I am in no way associated with Dave Tanner or Hanson Law Firm or endorse their services, I did find this article to be very informative, and I felt it was great information to share with you.

Last year the Legislature passed Senate Bill 931 adding Section 580e to the California Code of Civil Procedure. This new Section established that the beneficiary on a loan secured by a first deed of trust on 1 to 4 unit residential property could not pursue a deficiency judgment after a short sale which they had approved. The law applies equally to purchase money, hard money and refinance loans.
Short Sale Picture
This year the Legislature passed Senate Bill 458 which amended Section 580e by making it applicable to junior liens as well. It also applied additional limitations to the loans
subject to the section. In addition to not being able to get a deficiency judgment it provides at Section (a)(1) that after a short sale no deficiency shall be owed or collected
and no deficiency judgment, shall be requested or rendered provided the short sale closed escrow and the lender was paid the amount they agreed to accept.

Although the law does not specifically say so, it is likely the courts will interpret that section to mean that it applies to a short sale closing either before or after July 15, 2011,
the effective date of the new section. That analysis is based on the provision that the short money cannot be collected and no deficiency can be requested. It also will bar lenders from turning these loans over to a collection company which some lenders were doing even though the earlier section barred a deficiency judgment.

The amended law provides at Section (b) that the holder of a note shall not require the seller to pay any additional compensation, aside from the proceeds of the sale, in exchange for their consent to the short sale.

Some people have taken the position that, since only the seller is prohibited from providing additional compensation, the Second lender can request the buyer or real estate brokers to pay them additional money above that the First has agreed they can receive from the sale.

That might be true if only this code section applied. But if the First lender has based their approval on their consent to the Second only receiving a specified amount then any attempt to pay the Second more without the consent of the First would likely be considered loan fraud. If the First finds there is more money available in the transaction they will rightly feel it should go to them rather than to the Second. That is the purpose of being in First position.

Section 580e (c) provides that if the borrower commits loan fraud the limitations of the section would not apply. The lender would then be able to pursue the entire unpaid balance.

The real question remaining to be answered is whether this new law will be a great protection of the seller from liability after a short sale or whether it will lead to lenders denying short sales in favor of pursuing foreclosure where a deficiency by a junior lien holder may be possible.

If you have any questions on the above Bills, please feel free to contact me.

Photo of Jon Kaempfer

Jon Kaempfer
(916) 486-6922
Licensed – NMLS # 275861

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