On October 27, 2010, the Code of Ethics for Home Inspectors was adopted. Click here to read the Code.
Sunday, November 21, 2010
At the beginning of our recent class, entitled Mortgage Mania at Bethpage FCU, I was asked a question, which was more like a statement, inquiring if a lower Loan to Value (L/T) ratio (more money down) was a key predictor of default risk.
IN ENGLISH - If a borrower puts down more money (has more equity) shouldn't that imply they won't default? I took issue with this statement by saying that I believe that back-end Debt to Income (DTI) ratio mattered a hell of a lot more. My rationale was that even if you had a lot of skin in the game, your inability to make your mortgage payments trumped your desire to make your mortgage payments. The student took issue with my sentiment throughout the class thereafter by defending his position.
It’s true that both L/T ratio and DTI ratio are relevant and evaluated by lenders in making a loan. Yet, my message was that DTI ratio is much more important in making the determination to provide funding.
It turns out that FANNIE MAE agrees. They just changed, effective December 13, 2010, their requirements with respect to each of the above discussed ratios. Specifically, maximum DTI ratios for a conventional mortgage change from 55% to 45% under the new guidelines. Additionally, borrowers can now utilize gifts and grants to satisfy their minimum down payment, which impacts the L/T ratio. To read a great New York Times article that summarizes these changes, click here. Remember, that FANNIE MAE sets the standards for the rest of the industry because they are the largest secondary market purchaser, so this will likely become the standard.
The takeaway for students reading this blog is that a lender cares more about your ability to pay (how much money you have left at the end of the month after paying your other bills) as opposed to your desire to pay (how much equity you have to lose if you don't pay).
Saturday, November 20, 2010
Appellate Division, Second Department, held in an unsigned ruling that the "severe sanction…was not authorized by any statute or rule…nor was the plaintiff given fair warning that such a sanction was even under consideration." "The reasoning of the Supreme Court that its equitable powers included the authority to cancel the mortgage and note was
erroneous, since there was no acceptable basis for relieving the homeowner of her contractual obligation to the bank," - IndyMac Bank, F.S.B. v. Yano-Horoski, 17926/05.
erroneous, since there was no acceptable basis for relieving the homeowner of her contractual obligation to the bank," - IndyMac Bank, F.S.B. v. Yano-Horoski, 17926/05.
Click here to read a letter from the chair of the Real Property Law Section of the New York State Bar Association to Mr. Paul Lawis of the New York State Office of Court Administration. This letter called for changes to the Affirmation Requirement in foreclosures. As can be seen from my previous post, many of the calls from the chair of the section went unanswered. More importantly, I disagree with many of the chair's statements, as do many other attorneys who question how such a letter could be written without a vote. Specifically, the chair discusses how this requirement violates the attorney-client privilege of confidentiality. Yet, if he would read the ethics rules for attorneys, click here to read, he would learn that not perpetrating a fraud on the court trumps that rule.
As I always advise to real estate experts, foreclosure defense requires being on top of the issues (they change all of the time). In less than a month after announcing an Affirmation requirement for foreclosure attorneys to hopefully weed out robosigners, the court system has already changed the affirmation requirement on November 17. The new affirmation requirement can be found by clicking here.
Monday, November 15, 2010
As has been discussed at length on this forum and others, public policy on foreclosures shifts between periods of pro-borrower and pro-lender. To predict the next move of public policy its important to follow who makes policy. Just recently it was learned that President Obama will nominate North Carolina's chief banking regulator, Joseph A. Smith Jr. to run the agency that oversees both Fannnie and Freddie. To learn more about Mr. Smith, click here. It seems that he will be pro-borrower. Hopefully this can strengthen a pro-workout / modification culture where people can stay in their homes.
Wednesday, November 10, 2010
Attention Real Estate Agents: If you haven't taken the course Mortgage Mania, we are offering the class next week on 11/18 at 5:30pm at Bethpage Federal Credit Union. Advanced Registration is Required. Course is 3 Credits. To Register CLICK HERE
Mortgage Mania
Credits: 3 Hours
Instructors: Andrew M. Lieb, Esq., MPH; Karen R. Laurence
Summary: It's time to learn the secrets in order to qualify for a mortgage. This seminar will begin with the basics, discussing everything from the definition of a mortgage to types of mortgages. You will learn who the players are at the bank and how their respective roles impact your deal. Mr. Lieb will discuss the differences between a prequalification and a commitment and how to close your deal smoothly under the Real Estate Settlement Procedures Act. Mrs. Laurence (Mortgage Loan Officer) will share secrets that occur behind the scenes at the banks and let you know how to navigate through issues with credit scores. This course will enable you to weed-out high-risk clients and to advise average credit score clients on structuring their applications to get approved. Let's prevent mortgage contingency clauses from killing our deals.
About the Instructors:
Andrew M. Lieb, Esq., MPH
Andrew M. Lieb is the Managing Attorney at Lieb at Law, P.C., a family-owned law firm with offices in Center Moriches and Manhasset, New York. In such, Mr. Lieb is licensed to practice law in the Courts of New York State and the Eastern District of New York. Mr. Lieb is further licensed as a Real Estate Instructor in New York State by the Department of State, Bureau of Educational Standards.
Mr. Lieb is also the founder and lead instructor of the firm's New York State licensed Real Estate School, which serves as the Pro Bono arm of Lieb at Law offering certified continuing education (CE) courses to Real Estate Professionals.
Mr. Lieb actively instructs New York State continuing legal education (CLE) classes, holds a Masters of Public Health, and is an Adjunct Professor at Nassau Community College. He's served as a Faculty Member of the Suffolk Academy of Law, and as an Associate Instructor at Indiana University in Bloomington. Mr. Lieb currently sits on the Board of Directors for Colonial Youth and Family Services, is the Chairman of Center Moriches High School Business Advisory Board, and is a Contributing Editor for both Homes of the Hamptons and Homes of Eastern Long Island magazines.
Karen Laurence, Mortgage Loan Officer
Karen Laurence currently serves as a Mortgage Loan Officer at Bethpage Federal Credit Union, focusing in residential real estate. With over 13 years in the industry, Ms. Laurence offers additional expertise in commercial lending and maintains certifications and licenses in Mortgage, Insurance, Real Estate and is also a Notary.
Ms. Laurence excels with first time home-buyers and refinancers, while her specialty is foreclosures and short sales, reverse mortgages, new construction, mortgage originations and refinancing.
Prior to working at BFCU, Ms. Laurence was a Branch Manager at Countrywide Home Loans, a corporate Loan Consultant at GMAC Mortgage, and held further roles in private and public institutions.
Ms. Laurence's professional affiliations include: Women's Council of Realtors, Long Island Center for Business and Professional Women, Huntington Township Chamber of Commerce, Long Island Builder's Institute, Huntington and North Nassau Chapters of the Long Island Board of Realtors.
Ms. Laurence received her Bachelor of Arts from the University Of Miami, Florida, where she majored in Psychology and minored in Mass Communications.
Mortgage Mania
Credits: 3 Hours
Instructors: Andrew M. Lieb, Esq., MPH; Karen R. Laurence
Summary: It's time to learn the secrets in order to qualify for a mortgage. This seminar will begin with the basics, discussing everything from the definition of a mortgage to types of mortgages. You will learn who the players are at the bank and how their respective roles impact your deal. Mr. Lieb will discuss the differences between a prequalification and a commitment and how to close your deal smoothly under the Real Estate Settlement Procedures Act. Mrs. Laurence (Mortgage Loan Officer) will share secrets that occur behind the scenes at the banks and let you know how to navigate through issues with credit scores. This course will enable you to weed-out high-risk clients and to advise average credit score clients on structuring their applications to get approved. Let's prevent mortgage contingency clauses from killing our deals.
About the Instructors:
Andrew M. Lieb, Esq., MPH
Andrew M. Lieb is the Managing Attorney at Lieb at Law, P.C., a family-owned law firm with offices in Center Moriches and Manhasset, New York. In such, Mr. Lieb is licensed to practice law in the Courts of New York State and the Eastern District of New York. Mr. Lieb is further licensed as a Real Estate Instructor in New York State by the Department of State, Bureau of Educational Standards.
Mr. Lieb is also the founder and lead instructor of the firm's New York State licensed Real Estate School, which serves as the Pro Bono arm of Lieb at Law offering certified continuing education (CE) courses to Real Estate Professionals.
Mr. Lieb actively instructs New York State continuing legal education (CLE) classes, holds a Masters of Public Health, and is an Adjunct Professor at Nassau Community College. He's served as a Faculty Member of the Suffolk Academy of Law, and as an Associate Instructor at Indiana University in Bloomington. Mr. Lieb currently sits on the Board of Directors for Colonial Youth and Family Services, is the Chairman of Center Moriches High School Business Advisory Board, and is a Contributing Editor for both Homes of the Hamptons and Homes of Eastern Long Island magazines.
Karen Laurence, Mortgage Loan Officer
Karen Laurence currently serves as a Mortgage Loan Officer at Bethpage Federal Credit Union, focusing in residential real estate. With over 13 years in the industry, Ms. Laurence offers additional expertise in commercial lending and maintains certifications and licenses in Mortgage, Insurance, Real Estate and is also a Notary.
Ms. Laurence excels with first time home-buyers and refinancers, while her specialty is foreclosures and short sales, reverse mortgages, new construction, mortgage originations and refinancing.
Prior to working at BFCU, Ms. Laurence was a Branch Manager at Countrywide Home Loans, a corporate Loan Consultant at GMAC Mortgage, and held further roles in private and public institutions.
Ms. Laurence's professional affiliations include: Women's Council of Realtors, Long Island Center for Business and Professional Women, Huntington Township Chamber of Commerce, Long Island Builder's Institute, Huntington and North Nassau Chapters of the Long Island Board of Realtors.
Ms. Laurence received her Bachelor of Arts from the University Of Miami, Florida, where she majored in Psychology and minored in Mass Communications.
Tuesday, November 02, 2010
Learn about robo-signers, NY foreclosure cases, MERS, and Steven Baum. Read the depositions of robo-signers, the law on Regulation X, and RESPA. All available at stopforeclosurefraud.com
Monday, November 01, 2010
