Home Loans

Utah’s Box Home Loans Selects ReverseVision Exchange to Support New Reverse Mortgage Unit

SAN DIEGO, Calif. /California Newswire/ — ReverseVision, the leading provider of software and technology for the reverse mortgage industry, today announced that Utah-based Box Home Loans (Box) has selected ReverseVision Exchange (RVX) loan origination system (LOS) to support its new reverse mortgage origination business.

An independent mortgage banker for more than a decade, Box leverages its highly efficient, technology-enabled business model to offer borrowers a tailored selection of suitable and competitively priced loan options. The lender launched its reverse mortgage origination unit in September. Reverse mortgage industry veteran and home-equity conversion mortgage (HECM) specialist Stan Francom will oversee the new unit, which will have a special focus on the HECM for Purchase, a loan product that allows older borrowers to buy their new principal residence and obtain a reverse mortgage within a single transaction.

“Huge numbers of Baby Boomers are rapidly approaching retirement and looking for ways to stretch their savings,” said Box Home Loans senior vice president McKay Shoell. “Soon, it will be commonplace for consumers and financial planners to consider home-equity options like HECM as part of their financial approach to retirement along with income, social security and retirement.”

According to Shoell, the availability of a high-performance reverse mortgage LOS factored into Box’s decision to begin offering HECM products.

“ReverseVision Exchange is the de facto industry standard,” said Box Home Loans HECM Specialist Stan Francom. “We’re extremely excited to be partners with ReverseVision and benefit from their depth of knowledge and customer support. They have one of the most educated and professional teams in the industry.”

“Box Home Loans is getting into reverse mortgages at the right time and with the right approach by putting the borrower’s needs first and engaging technology to improve the transaction from end to end,” said ReverseVision Vice President of Professional Services Jeffrey Birdsell, CMB. “Armed with RVX and their own quality-first capabilities, Box Home Loans is equipped to charge into the future of reverse mortgage lending.”

About ReverseVision:

Recognized as a Deloitte’s 2015 Technology Fast 500(TM) company, ReverseVision is the leading software and technology provider for the reverse mortgage industry and offers products and services focused exclusively on reverse mortgages. More reverse mortgages are originated monthly using ReverseVision technology than all other reverse mortgage loan origination systems combined. ReverseVision has partnered with some of the finest and fastest-growing lending organizations in the United States to provide its leading reverse mortgage technology to brokers, correspondents, lenders and investors.

ReverseVision is a driving innovator in the reverse mortgage industry. ReverseVision continues to improve its software with frequent new innovations and by building on pioneering capabilities in reverse mortgage interactive graphs, scenario analysis, multi-environment performance analysis and workflow in the origination process.

For more information, visit http://www.reversevision.com/.

News Source: ReverseVision Inc.

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How Helpful Are Oakland’s First-Time Homebuyer Assistance Programs?

Because Bay Area residents pay more for housing than almost anyone else in the nation, buying a new home is a distinctly competitive exercise. Oakland residents seeking to become homeowners face a particular challenge — new arrivals with deep pockets.

Oakland’s median household income is $52,962, but the median home price in Alameda County is $795,400. According to the California Association of Realtors, new buyers need a minimum income of $154,610 to afford the median $3,870/month for a mortgage and taxes.

Even though Oakland’s median home price is $650,000, many local buyers are still frozen out of the market, even though several programs give low- and moderate-income buyers a boost.

Photo: mk30/Flickr

Under Oakland’sMortgage Assistance Program(MAP), residents who earn up to $42,369 can get a loan for up to 30% of a home’s purchase price (not to exceed $75,000.) Residents who earn between $42,369 and $63,554 can apply for a maximum loan of 20% of the purchase price, with a top limit of $50,000.

Although MAP loans are available, funds forCalHome, a separate program that only helps low-income, first-time buyers ($42K and below) are not available at this time. CalHome applicants may apply for loans up to 30% of a home’s purchase price, not to exceed $60,000.

We contacted a CalHome representative earlier this week to find out when these funds would be restored, but did not receive a reply. On the federal side, some Oakland residents may also qualify forFederal Housing Administration loans(FHA) or home loans guaranteed by theVeterans Administration.

“Most of my clients are moving from out of state or they’re coming from San Francisco,” said Robert Parker, an Oakland-based sales associate. About 10 percent or less of his active clients are Oakland natives, he estimated.

35th amp; Adeline. | Photo: Radio Nicole/Flickr

Via email, realtor Christine Cheng told Hoodline that about half of her clients are Oakland renters buying their first home, most of whom “submit offers that are conventional loans or cash offers.”

Separately, Cheng and Parker agreed that buyers who use assistance programs are at a disadvantage. “At the end of the day, cash is king,” said Parker. “If you have more than 20 percent, you’re doing well. If you have all cash, you’re sitting great.”

Parker said he’s skeptical about assistance programs’ ability to give first-timers a leg up in a hot real estate market. “In a competition scenario where there’s five or six offers, the listing agent would be leery about them as a buyer and whether they could perform, he said.

Sellers generally prefer offers “with little to no contingencies,” said Cheng, “as they provide for shorter closing periods and fewer conditions are required by the lender to close.” As a result, buyers who have a 20 percent down payment or cash above and beyond the asking price have an edge.

“It’s not to say you can’t find a house in Oakland with these programs, but perhaps be flexible with your search criteria,” Cheng said. “Be patient and know that you are likely to write at least a few offers before one is accepted.”

With interest rates expected to rise this year, Parker said many of his clients are liquidating IRAs, 401(k) accounts, and other savings. “People are going to be a little more frantic to get into a home, especially if they have tech money,” he said.

Ultimately, Cheng said first-time buyers should set aside emotion when it comes making one of life’s largest financial commitments. “It’s a numbers game, so don’t get too attached when submitting an offer,” she said, adding that buyers should ask agents to search for homes that have been on the market for over 21 days.

An Oakland homeowner who preferred to remain anonymous told Hoodline that first-time buyers should make a point of visiting open houses in their neighborhoods. “I know I’d rather sell to someone who already lives here,” she said, because “that promotes neighborhood character.”

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Traffic, parking tips for Nova Home Loans Arizona Bowl

TUCSON, AZ (Tucson News Now) –

Tucson drivers should plan for some congestion around Arizona Stadium as the kickoff of the 2016 Nova Home Loans Arizona Bowl approaches.

The Air Force takes on South Alabama at 3:30 pm on Friday, Dec. 30.

The four roads closest to the stadium will be clogged with cars, especially closer to kickoff time.

These include Speedway Boulevard, Sixth Street, Euclid Avenue and Campbell Avenue.Midtown driversshould expect more time as they drive through this area.

Anyone heading to the football game should plan to arrive very early, as parking is first come, first serve.

Here are a few parking tips for bowl game-goers:

  • Most UA garages are $10
  • The Cherry Ave Garage near McKale Center is $15
  • Most UA surface lots are $5-10. Bring cash for these lots.
  • $15 RV parking is available near Speedway Boulevard and Vine Street.

For more information on Bowl Game Parking visithttp://www.novaarizonabowl.com/for-fans/parking/.

Fans can also use the Sun Link streetcar to get to Arizona Stadium. For a closer look at routes visithttp://www.sunlinkstreetcar.com/.

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Foreclosure charges for fixed rate home loans

A borrower who pre-closes a home loan taken on fixed interest rate is liable to pay pre-closure charges, a consumer court here has observed.

Dismissing a complaint against the Ernakulam District Cooperative Bank’s refusal to refund pre-closure charges to a consumer, the Ernakulam District Consumer Disputes Redressal Forum headed by president Cherian K. Kuriakose pointed out that an RBI circular issued on June 5, 2012, insisted on banks not to charge foreclosure charges under pre-payment penalties on home loans on floating interest rate basis only.

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Jeff Knight joins Foundation Home Loans

Foundation Home Loans has appointed Jeff Knight to the newly-created role of director of marketing.

Knight has worked for a number of specialist lenders over the past 19 years, most recently Pepper Homeloans, and has also had his own marketing consultancy.

He willbe responsible for all the specialist buy-to-let lender’s marketing activities and will be based in itsBracknell offices.

FHL chief executive Hans Geberbauer says: “We have ambitious plans for growth in 2017 and Jeff’s expertise and experience will be invaluable to our overall strategy, so we are delighted to welcome him on board.”

Knight says: “I am absolutely thrilled to have joined Foundation Home Loans. They have a very strong leadership team, with a shared vision to grow Foundation Home Loans as a formidable intermediary brand.

“I am very much looking forward to working with the team in developing and delivering the strategy.”

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Who will benefit from the rate cut?

S. C Dhall

The current as well as the prospective cuts in home loan interest rates will undoubtedly benefit new home-loan borrowers. But what about the existing borrowers? Will they also benefit from the falling home loan rates?

For the existing borrowers, the rate cut would take time to reflect. This means that they may have to wait until the next reset period if they are on marginal cost of funding lending rate (MCLR). The reason for this is: if you have taken an MCLR-linked loan, the interest rate that you pay is subject to changes at fixed intervals as per the tenure for which the rates are linked. For instance, SBI resets the rates annually (from the date on which the loan is taken), while some other banks do so every quarter. Also, the change in the interest rates would usually be seen in the reduced tenure and not in the EMI unless you decide to re-finance your loan.

The MCLR system was adopted by banks from April 1, 2016, replacing the base rate system. Therefore, those who had taken home loans before April last year will have their EMIs linked to the base rate. Therefore, these borrowers will have to either enter into a fresh contract with their bank to get their loans linked to MCLR, or they will have to wait till their lender reduces the lending rate for them too. If that doesn’t happen, which is usually the case, then they should try to get their loan shifted to another lender by paying the required fee.

Increase in eligibility

New borrowers, however, will see an increase in their eligibility with a 50 basis point drop in interest rates for a home loan. A borrower earning Rs 1 lakh per month was eligible for a home loan of Rs 55 lakh for 20 years if the lender capped an EMI of 50 per cent on the monthly income. The same individual can now get Rs 58 lakh as home loan. For a 25-year-loan the eligibility goes up to Rs 62 lakh from the earlier Rs 59 lakh.

Reduction in tenure

For the existing customers the revision in interest rates can reduce the number of years remaining to repay the loan significantly. This is because banks usually do not change the equated monthly instalment of customers. Instead, they change the tenure whenever there’s a revision in interest rates. Thus, if your tenure was 25 years for a Rs 75 lakh loan at 9.15 per cent, after the 50 bps revision it would be brought down to 22 years. Similarly, if you had the same loan for 20 years, the repayment tenure would now be 18 years.

However, home loans linked to the marginal cost of funding lending rate (MCLR) may not see an immediate revision.

Widening disparity

The disparity in lending rates also exists for borrowers who have taken loans after April 2016, (after the MCLR was introduced). This is because, reduction in MCLR month-on-month, alone will not mean a reduction in lending rate.

Unlike under the base rate system, where a revision in base rate was immediately reflected in lending rates of all loans benchmarked against it, under MCLR-based pricing, lending rates are reset only at specific intervals, corresponding to the tenure of the MCLR.

In case of SBI’s home loans, for instance, since the loans are benchmarked against the one-year MCLR, lending rates will only be reset every year. In April 2016, one-year MCLR stood at 9.2 per cent. The effective loan rate then worked out to 9.45 per cent. These borrowers, too, will end up paying 80 basis points more as interest on their loans than new borrowers.

What is marginal cost of funds-based lending rate (MCLR)

As the banks were not quick in passing on the benefits of the rate cuts announced by the RBI in the past, the central bank introduced a new basis for banks to determine lending rates, based on the marginal cost of borrowing, with effect from April 1, 2016. All the loans granted by the banks, are necessarily to be given under the MCLR regime. The MCLR takes into account the marginal cost of funds for the banks, for a specific period, to arrive at the final lending rate.

What the SBI and other banks have done, is reduce their MCLR.

How a change in the MCLR affects home loan rates

Under the MCLR regime, home loan interest rate will not change with each and every change in the MCLR. The banks are allowed to have a reset clause in the lending agreement, to fix the periodicity or date for change in the actual lending rate to the borrower.

The premium, which the banks have over their base rate or MCLR for a particular loan, is generally called ‘spread’ and is expressed as certain points over the base rate or the MCLR.

The benefit of reduction in rates will accrue to borrower, if the borrowr had already switched to the MCLR from the base rate or PLR regime.

For borrowers who had either borrowed under the base rate regime or had shifted to the base rate regime from PLR, the benefit will not be as substantial as the reduction in the MCLR.

Moreover, it will be available only as and when the bank announces a reduction in its base rate.

The existing borrowers, who have borrowed under the MCLR, will get a benefit if there is no reset period restriction or the reset period is over. As the banks have reduced the MCLR but at the same time increased the spread, new borrowers will not get the home loan at the same rate as the reduced MCLR. The new rates will be higher than what it would have been, had the banks not changed their spread.

However, the reduction in MCLR will certainly benefit the existing borrowers under this regime, as the spread will remain the same for them, unless they have a reset clause and the reset period is not yet over.

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Tickets still available for NOVA Home Loans Arizona Bowl

TUCSON, AZ (Tucson News Now) –

The click and noisy tone of the printer meant tickets were, in fact, being sold at the Arizona Stadium ticket office on the University of Arizona campus Wednesday.

With each purchase and print, NOVA Home Loans Arizona Bowl Executive Director Mike Feder was one sale closer to his 30,000 goal.

“The good news is its been insane. Thats really what we want,” Feder said. “The bad news is we still have tickets left.

The normal 57,000-seat stadium capacity will shrink to about 37,000 with fans seated only in the lower level for kickoff Friday, Dec. 30 at 3:30 pm There were enough remaining though that some tickets were being offered for free to those who apply.

The match-up between South Alabama and the Air Force Academy presented an opportunity, drawing interest from the military community. Veterans like Robert Nemitz and his family could get tickets for free through various veteran appreciation programs.

Im bringing my kids and were going to have a great time. Thats what its about, is bringing family, having a good time, and celebrating military,” Nemitz said.

But are people well-informed? Because a stones-throw away from Arizona Stadium, at Brew of A Sports Grill, not a single poster about the game is visible. It has patrons skeptical of the game turnout.

I didnt really hear about the game until just a few days ago. So Im not sure if its going to draw some people. It should because its good football,” one bar patron said.

It begs the question: Is the NOVA Home Loans Arizona Bowl Game something Tucson wants?

Time will tell,” Feder said with a sigh. “This is our second year. We cant survive on 25,000 to 30,000 people. We have to keep improving.

Tickets might not be hard to come by if you’re interested in attending Friday’s game, but it might be hard to catch from the convenience of your home. The game is being televised nationally on the American Sports Network and Campus Insiders.

Feder said it could be an added level of ease for fans to simply come out to the stadium.

You can learn more about the NOVA Home Loans Arizona Bowl here: http://www.novaarizonabowl.com/the-game/where-to-watch-it/

Copyright 2016Tucson News Now. All rights reserved.

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Liberty Home Loans and Meals on Wheels Delivering Hope to the Hungry

Liberty Home Loans and Coal Creek Meals on Wheels helping the less fortunate and families in need with holiday gift baskets.

Robert Myers, of Liberty Home Loans, is proud to announce the company is lending a helping hand to families and individuals in need via holiday gift baskets and donations. We came up with this program twenty years ago to help seniors and families in the community, said Myers. We did about fifteen baskets the first year and it has expanded every year thanks to wonderful people, some of whom have helped every year since we started the program. That is what I call the definition of community and the meaning of holiday tradition.

The aim of Liberty Home Loans is to bring a smile and hope to less fortunate people in its community. Myers credited the success of the program to great partners like Four Star Realty and Pellman Automotive for all their help and fundraising.

This year Liberty Home Loans teamed up with Coal Creek Meals on Wheels, whose mission is to provide daily nutritious meals and related support services to members of the community in need while helping them to live with dignity in their own homes. The goal was to deliver more than 100 gift baskets to homebound individuals, collect donations and adopt needy families in the community. In fact, 126 gift baskets, which included popcorn, chocolate, coffee and more, were delivered. This is a wonderful cause in which 100% of all contributions are donated to charity, concluded Myers.

To donate directly to Coal Creek Meals on Wheels, please visit https://www.coloradogives.org/index.php?section=organizationsamp;action=newDonationamp;fwID=28204.

About Liberty Home Loans
Liberty Home Loans guides its clients through the labyrinth of mortgage regulations and protocol. Each of its team members is equipped with comprehensive knowledge of the mortgage lending system as well as secure relationships with various lending institutions nationwide. For more information, please call (720) 890-8900, or visit http://www.libertyhomeloans.com. The office is located at 287 Century Circle, Suite 201,Louisville, CO 80027.

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Trump’s contender for Treasury Department found profits in mortgage mess

By Zachary R. Mider

Bloomberg News

NEW YORK Dubious lending practices. Bailouts. Foreclosures. Robo-signing. Huge executive paydays. If Steven Mnuchin is nominated for treasury secretary, his confirmation process promises to dredge up every controversy of the US mortgage meltdown almost a decade ago.

Mnuchin is a former Goldman Sachs Group Inc. partner and movie financier with no government experience who spent the past six months working as Donald Trumps chief fundraiser. Trumps transition team recommended Mnuchin for the treasury job, people with knowledge of the matter said last week, and a decision could come any day. The part of his background thats likely to get the most scrutiny is the six years he spent running OneWest Bank, a Southern California lender.

In 2009, during the depths of the financial crisis, Mnuchin joined with a group of former Goldman Sachs colleagues and billionaires to buy the remnants of IndyMac, which had collapsed after bingeing on reckless home loans during the frenzy of Californias subprime-mortgage boom. They changed the name to OneWest, turned it around and sold the bank for a big gain last year. Mnuchin may have personally gotten more than $200 million in proceeds from the sale, according to Bloomberg calculations. That doesnt count any dividends or payments he might have received as chairman and chief executive officer of OneWests parent company.

The bank carried out more than 36,000 foreclosures during Mnuchins reign, according to the California Reinvestment Coalition, a San Francisco-based nonprofit whose deputy director, Kevin Stein, dubbed the bank a foreclosure machine. The group has accused OneWest of shoddy foreclosure practices and avoiding business in minority neighborhoods, claims the bank has denied.

Its unclear whether OneWests practices were worse than those of other banks during the financial crisis or how much blame Mnuchin deserves for problems at a financial institution that was troubled before he bought it.

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Home Loan Lending Will Not Be A Super-Safe Business From Now

It is safe to say that most lenders in
India, give home loans worth only around half of the real value of the home
being bought. This makes home loan lending extremely safe .

The idea is that with the Rs 500 and Rs 1,000 notes being demonetised, people will not be able to put together the black element for the home-buying transaction.

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