Mortgages Made Simple with Rick Gundzik

Thursday, January 1, 2009
Mortgage rates and the Bailout - January 1, 2009
Have any of the bailout plans worked? We discuss the past few bailout ideas and why we think the Fed's latest attempt to push mortgage rates down will work. Mortgages Made Simple logo We have touched on this plan before but we add some more commentary and delve a little deeper. Nothing but the best for our listener's on New Year's Day. Get ready for an exciting 2009!

Happy New Year!




If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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posted by Pac Res @ 7:26 AM   0 comments
Thursday, December 11, 2008
Mortgage Rates at 4.5%??? - December 11, 2008
Today we answer another listener's question. Mike in Santa Barbara wanted to know how The Fed can lower mortgage rates to 4.5%. We explain Mortgages Made Simple logohow The Fed could do this and if it will last long. We don't think it will last long, so start preparing now to take advantage of it.



If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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posted by Pac Res @ 7:00 AM   0 comments
Thursday, December 4, 2008
The Fed and The Treasury - December 4, 2008
Today we answer a listener's question. They wanted to know what the difference is between the The Federal Reserve and the Treasury Department. Mortgages Made Simple logo We explain how The Fed trys to control interest rates and inflation and The Treasury prints money. Overly simplistic maybe, but we put it all in perspective.




If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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posted by Pac Res @ 10:00 AM   0 comments
Thursday, November 13, 2008
Current State of the Economy - November 13, 2008
We focus on the current state of the economy and explain why the Fed lowering rates doesn't directly affect mortgage rates. Mortgages Made Simple logo We also share some observations with you about the local economy in Orange County California.




If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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posted by Pac Res @ 7:00 AM   0 comments
Saturday, November 1, 2008
Vote for a new kind of Mortgage Company - November 1, 2008
We've had this idea for many years now, but the industry has always resisted us. Imagine if you could do your own loan with no interference from a loan officer? Mortgages Made Simple logo You would get a good loan at a great rate. That day is here, help us win the ideablob contest to make this happen.

My Idea

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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posted by Pac Res @ 11:10 AM   0 comments
Sunday, October 26, 2008
Top 10 Things You Don't Want To Hear The Head of the Federal Reserve Say - October 26, 2008
We never thought we would miss Alan Greenspan, even if you disagreed with his policies at least he knew how to use words carefully, until recently.Mortgages Made Simple logo After listening to the economic speak of the last few weeks we thought it was only appropriate to create this tribute to our current Fed Head.


Top 10 Things You Don't Want To Hear The Head of the Federal Reserve Say:

10. The systemic risk of the financial system is greatly exacerbated by how many big words I can use to confuse the public
9. If I follow the rainbow, there should be a pot of gold somewhere around here
8. Quick, get more ink for the printing presses
7. These dollar bills make great wallpaper
6. What the heck does systemic mean?
5. Which way to the soup kitchen?
4. Hey W, Do you have Alan Greenspan's cell phone number?
3. How do I start this helicopter?
2. Hi, I'm calling for the U.S. Government, can we get a loan mod?
1. Heads, I lower the discount rate...Tails, I raise it.




If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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posted by Pac Res @ 8:59 AM   0 comments
Thursday, October 23, 2008
Loan Officer Fraud and Greed - October 23, 2008
While most people point all the fingers at Wall Street for the current mortgage mess a lot of the blame should go towards the individual loan officers. Mortgages Made Simple logo Whether it be that they over-stated a borrower's income or pushed the borrower into a bad loan so the loan officer would make more money, the loan officers need to be regulated better.

I have had many different ideas on how to regulate loan officers, but it comes down to the borrower level. A borrower has to ask the loan officer they're working with if he/she is licensed. If they are not licensed find one who is. Every state has an online licensee list, so you can easily check. It doesn't insure you won't be ripped off but it gives your loan officer more credilbilty. Fortunately due to the industry consolidation it will work itself out and we'll move forward with more professional loan officers as the unlicensed ones will leave the industry.




If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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posted by Pac Res @ 7:31 AM   0 comments
Thursday, October 16, 2008
Europe Begins Bailing - October 16, 2008
The Bailing just keeps going. This week Europe announced a $2.3 trillion bailout bill dwarfing ours in America.Mortgages Made Simple logoOn this podcast we discuss Europe's actions and we give a description of liquidity.

One of our loyal subscribers, Mad Marv, asked me to give a better definition of liquidity for the layperson. I tend to go fast on some economic terms so I appreciate any comments like this, because our goal is to help everyone understand their mortgage and the economy in general.




If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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posted by Pac Res @ 7:38 AM   0 comments
Thursday, October 9, 2008
The Bailout and You - October 9, 2008
The Housing bailout bill has been making headlines day after day. On this week's podcast Mortgages Made Simple logowe discuss some of the questions that many people are asking. How will government make money from toxic debt, can the government value these loans correctly, how can we afford it and many others.

This is a complicated and ongoing economic situation that we will continue to discuss to help you understand it. Please be sure to send us your questions so we can help others with your insight.



If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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posted by Pac Res @ 7:14 AM   0 comments
Thursday, October 2, 2008
The Bailout Bill - October 2, 2008
The House and Senate have been working feverishly to pass the latest bailout bill for almost a week now. Unfortunately, what I have learned from watching many hours of coverage is most media and more tragically most politicians know less about the economy Mortgages Made Simple logothan your pet dog Kondratieff*. This week's podcast was prepared to highlight the major points of the bill, but we placed that on hold to ensure we were able to provide you with the latest and correct information


The following is a summary of the 1st bill. The post may seem long, but it's just bullet points. When the next bill is complete we'll update you asap.

Troubled Asset Relief Program (TARP) Legislation
Joint Agreement (Evening of September 28, 2008)

Program Operations
• Location: Office in Treasury headed by Assistant Secretary
• Consultation with Federal Reserve, FRB of NY, FDIC, OTS, OCC and HUD required.
• Considerations: This version expands the factors Treasury must consider beyond liquidity and market stability, to community stability, diversity, small institutions, student loans, retirement plans, and multifamily properties.
• Treasury must establish a program to insure purchased assets; risk-based premiums to be paid by participating institutions.
• Treasury must work with non-U.S. regulators and central banks to establish similar programs.
• Program expires: December 31, 2009 but may be extended; committees expire after all assets have been transferred or last insurance contract expires.
• If TARP results in net loss after five years, the President must submit a legislative proposal on how to seek reimbursement from participating fin institutions.

Maximum Amount
• $700 billion in installments based on congressional approval of request by President.

Oversight
• Oversight Board: five-member board includes Federal Reserve, FDIC, SEC, HUD and SEC. Executive Committee of board can limit or prohibit Treasury from taking action. Credit review committee of board reviews purchases.
• Congressional Oversight Panel: five-member bipartisan panel selected by Congress to review financial markets, regulatory oversight and TARP performance.
• Comptroller General: provides on-site review performance and administration of TARP.
• Special Inspector General: Appointed by the President, for auditing and investigations.
• Judicial Review: Actions will not be overturned unless arbitrary/capricious, abuse of discretion or illegal. No injunction or equitable relief permitted, but injunctions are allowed.

Transparency
• Treasury must publicize program policies, procedures and guidelines.

Reports
• Treasury and other banking agencies must issue several public and congressional reports on purchases, pricing, expenses and impact of program.
• Regulatory Modernization Report: By April 30, Treasury must submit report to congress on state of financial and regulatory system and recommendations for improvement.
• GAO studies: (1) The impact of leveraging and deleveraging of financial institutions contributed to the current financial crisis; and (2) Impact of the TARP program.
• Congressional Oversight Panel submits reports to Congress on the impact of TARP in providing transparency, mitigating foreclosures and financial market transactions.
• SEC and Federal Reserve must report to Congress on impact of mark-to-market accounting on financial institutions.
• OMB and CBO must report to Congress on program and budget estimates.

Purchase and Sale of Troubled Assets
• Secretary consults with FDIC in managing assets.
• Treasury sets terms, conditions and prices.
• Profits: 20 percent of profits go to Housing Trust Fund (65 percent) and Capital Magnet Fund (35 percent). Balance goes to general fund of Treasury.
• Treasury, FHFA, FDIC, HUD and Federal Reserve must permit state/local governments to purchase foreclosed properties at a discount.
• Institutions cannot sell troubled assets to Treasury for more than they paid.

Loan Modifications/Servicing
• Treasury and other federal agencies should coordinate loan modification programs with HOPE for Homeowners program and protect renters and state/local subsidies; guarantees and credit enhancements are allowed; servicers should maximize loan modifications.

Warrants/Equity
• In direct troubled asset purchases where Treasury acquires a meaningful equity position, Treasury gets shares or a senior debt so that Treasury shares equity appreciation, and losses/expenses are covered.

Contracting
• Treasury can “fast track” vendor contracting, but must promote diversity.

Conflicts of interest
• Treasury must issue regulations/guidelines to prevent conflicts of interest in any aspect of TARP.

Executive Compensation
• Participating institutions must have executive compensation limits that: 1) exclude incentives for inappropriate risk taking; 2) include claw-back provisions for compensation based on inaccurate earnings, gains or other criteria; and 3) prohibit golden parachutes.
• For Treasury auction purchases over $300 million, the participating financial institution also cannot give golden parachutes to employees hired after the purchase.

Definitions
• Troubled asset: Residential and commercial mortgage-related assets. Treasury must consult with Fed Chairman to expand definition.
• Financial Institution: Similar to earlier House version which does not specifically include independent mortgage banks/servicers. Definition cannot be expanded.

Federal Reserve Disclosure
• If the Federal Reserve provides emergency discounts to any entity, it must report to Congress regarding the justification for and terms of the discount.

Accounting
• SEC is authorized to suspend mark-to-market accounting (FAS 157).

Tax Provisions
• Tax break to holders of Fannie and Freddie preferred stock. Provides “ordinary gain or loss” treatment. It appears to limit that tax break to banks, savings and loans, cooperatives, small business investment companies, and business development corporations. Also provides special tax rules to prevent deductibility of overly generous executive compensation programs.


As of September 28, 2008


If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

*If you know the significance of this name without googling it, email us and we'll highlight your blog in our next post.

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posted by Pac Res @ 7:00 AM   0 comments
Thursday, September 18, 2008
Mortgage Meltdown Seminar Recap - September 18, 2008
On September 13th, 2008 I was honored to be a speaker at the Mortgage Meltdown Seminar hosted by the Crenshaw Christian Center in Los Angeles. Mortgages Made Simple logoI learned a lot about what's still happening to borrowers by unscrupulous loan officers, met a lot of great people and hopefully was able to help some people out.

This show gives a brief rundown of some items you should be aware of for yourself and your friends.



If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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posted by Pac Res @ 8:27 AM   0 comments
Thursday, September 11, 2008
Fannie Mae and Freddie Mac Bailed Out - September 11, 2008
Fannie Mae and Freddie Mac were bailed out by the U.S. Government this week. Mortgages Made Simple logoWhat does it mean to you? Not much on the surface, but you will see interest rates on mortgages drop. Rates already fell about 1/2% but we likely will see a little more of a drop.

The plan to bail them out involves 4 steps. 1. Buy peferred shares to increase their liquidity, 2. Provide a secured lending facility, 3. Decrease their portfolio size beginning in 2010 and 4. buy mortgage backed securities. Of these 4 dteps, the buying of mortgage backed securities will help rates and restore the confidence we need to get the housing market moving again.

This was a badly needed step, if it had happened 12 months ago alot of housing market pain might have been avoided.



If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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posted by Pac Res @ 7:00 AM   0 comments
Thursday, September 4, 2008
FHA Loans, The 3 best reasons - September 4, 2008
FHA loans have increased in popularity due to their availability and 3 main reasons. Mortgages Made Simple logo1. Gift Funds, 2. Non occupying co-borrowers and 3. Slightly blemished credit history

FHA Loans allow the above 3 factors to be present on a loan. Now please keep in mind you can't have awful credit, but FHA guidelines allow slightly tarnished credit if you've been a good payor over the last 12 months. Listen to this week's podcast for more details.



If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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posted by Pac Res @ 6:51 AM   0 comments
Thursday, August 28, 2008
Housing Relief Bill, Will it help You - August 28, 2008
We get a ton of questions every week regarding the Housing Relief Bill. This latest economic stimulus type Bill which passes the Senate has the following three goals: 1. Help distressed homeowners, 2. Tax credit for First time homebuyers and 3. Permanently increase Fannie Mae loan limits to $625,000. Mortgages Made Simple logo

The most shocking provision of the Bill requires lenders to reduce a borrower's loan balance to 90% of the home's appraised value. The distressed borrower will then be able to refinance to an FHA loan.

The tax credit for first time homebuyers will be $7,500. However, it will only be eligible for homes purchased from April 2008 until April 1, 2009. And finally, it will increase loan limits to $625,000 to try and keep the high cost states humming along. This is a re-podcast.




If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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posted by Pac Res @ 8:53 PM   0 comments
Thursday, July 31, 2008
Housing Relief Bill, Will it help You - July 31, 2008
We have received a ton of inquiries about this bill, so we decided to post this encore podcast for those who can't find it. There were a few changes in the final bill signed by the president, but nothing earth shattering. The best part of the bill is the tax credit for home purchases. This latest economic stimulus type Bill has the following three goals: 1. Help distressed homeowners, 2. Tax credit for First time homebuyers and 3. Permanently increase Fannie Mae loan limits to $625,000. Mortgages Made Simple logo

The most shocking provision of the Bill requires lenders to reduce a borrower's loan balance to 85% of the home's appraised value. The distressed borrower will then be able to refinance to an FHA loan.

The tax credit for first time homebuyers will be $7,500. However, it will only be eligible for homes purchased from April 9, 2008 until July 1, 2009. And finally, it will increase loan limits to $625,000 to try and keep the high cost states humming along.




If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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posted by Pac Res @ 7:29 AM   0 comments
Thursday, July 10, 2008
Housing Relief Bill, Will it help You - July 10, 2008
The House of Representatives recently passed the Housing Relief Bill. This latest economic stimulus type Bill which must still pass the Senate has the following three goals: 1. Help distressed homeowners, 2. Tax credit for First time homebuyers and 3. Permanently increase Fannie Mae loan limits to $625,000. Mortgages Made Simple logo

The most shocking provision of the Bill requires lenders to reduce a borrower's loan balance to 85% of the home's appraised value. The distressed borrower will then be able to refinance to an FHA loan.

The tax credit for first time homebuyers will be $8,000. However, it will only be eligible for homes purchased from April 2008 until April 1, 2009. And finally, it will increase loan limits to $625,000 to try and keep the high cost states humming along.




If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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posted by Pac Res @ 7:19 AM   0 comments
Saturday, July 5, 2008
Top Places to live from CNNMoney.com
Even though the list is from 2007, it's an interesting compilation of the best places to live in the U.S. They even have a nifty table to search your own criteria. Mortgages Made Simple logo I'm partial to California, so maybe Claremont is the place to be.

The top 10 are:
1 Middleton, WI
2 Hanover, NH
3 Louisville, CO
4 Lake Mary, FL
5 Claremont, CA
6 Papillion, NE
7 Milton, MA
8 Chaska, MN
9 Nether Providence (Wallingford), PA
10 Suwanee, GA

Best Places to Live

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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posted by Pac Res @ 10:17 PM   0 comments
Thursday, July 3, 2008
Low Rates versus Low Prices - July 3, 2008
This week we help out a listener who couldn't get a straight answer to a simple question.....Is it better to buy when interest rates are low or house prices are low? Mortgages Made Simple logo Our listener asked several people, but unfortunately, this industry is still full of inexperienced people who don't know a 30 year T-bond from a Fannie MBS. Fortunately we want you to be armed with knowledge so you get the best loan possible. We answer this question in depth and take a quick step on the soapbox about the real estate industry.



If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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posted by Pac Res @ 7:31 AM   1 comments
Thursday, June 26, 2008
FHA Loans, 2nd Homes and Rental Homes - June 26, 2008
FHA loans can be the greatest thing since sliced bread for some people. A buyer can receive gift funds, use a non-occupying co-borrower and put less money down than on your typical home loan. These are great loans for 1st time homebuyers or just about anyone who needs a little extra push to buy a home. Mortgages Made Simple logo

We also answer a listener's question regarding the difference between a 2nd home and an investment property. There are different qualifications, interest rates and a few other things we discuss that you need to be aware of.



If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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posted by Pac Res @ 8:04 AM   0 comments
Thursday, June 19, 2008
Housing Equity and Short Sales - June 19, 2008
The Federal Reserve released their latest report on Housing prices across the country. It reported homeowners have lost a combined $880 billion over the last 12 months. Mortgages Made Simple logo But it's not as bad as it sounds, we'll tell you why.

We also answer a listener's question regarding Short Sales. We explain how they work and why you need patience if you're involved in one.



If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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posted by Pac Res @ 7:53 AM   0 comments
Thursday, June 12, 2008
Recessions and Housing Prices - June 12, 2008
Are we in a Recession??? Technically no, but a lot of people feel like they are. With gas prices up and housing prices down, psychologically people feel poorer. So this tends to create a slow down in consumer spending. Mortgages Made Simple logo A full blown recession does not appear likely, but a commentator I like to read, John Mauldin, prefers to call it a "muddle through economy." By this he means we will meander our way through a period of no meaningful growth in the economy. This isn't good by any means, but not the doom and gloom some people are predicting. And in an election year, a recession would be devastating for the Republican party.

We also discuss how a recession affects housing prices and give you some buy versus rent examples. Then we give you a few more ideas on buying a home today.



If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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posted by Pac Res @ 7:34 AM   0 comments
Thursday, June 5, 2008
Credit Reports and REO's - June 5, 2008
When you're getting ready to buy a new home, what's the first thing you think of......? Your credit report is correct. Three or four months before you begin shopping for a home you should get a copy of your credit report.Mortgages Made Simple logo This will help you save time in the long run for two reasons. First you will know exactly how your credit looks and second you will have plenty of time to fix any errors or information you didn't expect to find on your credit report. And if there are any errors you can start fixing them yourself by using the links below.

We also discuss the current REO(Real Estate Owned) market in California as it shows signs of life with a rapid increase in activity. Many real estate agents are receiving mulitiple offers on homes due to reduced prices. This activity will help stabilize home prices throughout California.



If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

Show Notes:
Annual Free Credit Report
Experian
Equifax
Transunuion

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posted by Pac Res @ 7:47 AM   0 comments

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