Executive Loan Pro

Low mortgage rates likely to continue through 2012, experts say

Andrew McElyea — Sun, 08 Jan 2012 21:17:13 +0000

Low mortgage rates likely to continue through 2012, experts say

By E. Scott Reckard, Los Angeles Times

Tue Jan 3 2012 12:00 AM

The mortgage market told a sad story throughout 2011: record low rates, but few people taking advantage of them to buy homes.

The likely scenario in the new year, according to many analysts, is more of the same. Although the Federal Reserve has pledged to keep rates low through 2013, the experts say high unemployment and home prices that are still falling in many areas provide little incentive for stressed-out consumers to surge back into the housing market.

“I think there may be a little bit of an uptick in units sold,” said Doug Duncan, vice president and chief economist at mortgage finance giant Fannie Mae. “But home prices will probably be down again, so the total dollars spent on purchases is likely to be pretty close” to 2011.

Freddie Mac, the other big government-backed mortgage company, had predicted two years ago that lenders would write $1.8 trillion in home loans in 2011. They later revised that estimate to just over $1 trillion.

In the end, home lending last year totaled $1.3 trillion, down from $1.7 trillion in 2010 and an all-time high of nearly $3.3 trillion in 2005.

Last year’s better-than-expected finish had nothing to do with home purchases. Instead, a decline in 30-year fixed mortgage rates to historic lows of less than 4% triggered a massive wave of refinancings.

As last year began, Freddie Mac expected applications for home-purchase loans to make up two-thirds of all mortgage demand by the end of 2011. As it turned out, about 4 in 5 mortgage applications in December were from homeowners wanting to refinance, according to the Mortgage Bankers Assn.

Little wonder why. Lenders were offering 30-year fixed-rate mortgages to solid borrowers at an average of 3.95% last week, the ninth consecutive week of rates at or below 4%, Freddie Mac said. (The survey covers loans up to $417,000 with borrowers paying less than 1% of the amount in upfront lender fees.)

That wrapped up a year of record lows. In 1981 and 1982, the average 30-year mortgage carried an interest rate of more than 16%, and the typical rate was above 8% as recently as 2000, Freddie Mac said. The average last year was 4.45%. Freddie Mac economists are predicting an average of 4.5% for 2012, increasing to 5.4% in 2013 — still phenomenally low by historic standards.

But in the long-suffering economy, “remarkably low rates are not enough,” said Michael Fratantoni, an economist for the Mortgage Bankers Assn. He noted that many homeowners can’t even take advantage of the opportunity to refinance because of “lack of equity in their properties, poor credit and a weak job market.”

With lending standards still tight and demand for home loans waning, Morgan Stanley analysts titled their housing outlook for 2012 “The Year of the Landlord.”

“While we had forecast lower prices [for 2011], we did hold out some hope that at the very least transactions would pick up slightly from 2010 levels,” said the report from a team led by analyst Oliver Chang.

“However, it proved to be too optimistic a prediction,” the report said. “Not only did total home sales fail to rise, but also mortgage applications for purchase continued to fall — indicating that not only is tight mortgage credit limiting demand, but even the desire to buy a home continued to wane.”

Analysts aren’t universally pessimistic: “Housing has hit the bottom and has begun to heal slowly,” said Cal State Channel Islands professor Sung Won Sohn, a former top economics advisor to the White House and Wells Fargo & Co.

Although large numbers of foreclosures and other distressed home sales are keeping housing prices from rising, the inventory of new homes is at a 49-year low, setting the stage for a rebound, Sohn said in his 2011 housing forecast.

“On balance,” he said, “the increased demand for rental housing, higher rents and multifamily starts should encourage home builders and boost confidence on the part of the potential home buyers. Despite the high level of foreclosures, house prices should stabilize and even rise slightly toward the end of 2012.”

But any recovery will be slow given the extreme damage inflicted by the housing boom and bust, warned Duncan, the Fannie Mae economist.

“I tell people we’re five years through a 10-year adjustment,” he said. “Not until year 10 will we return to the traditional rate of housing starts.”

scott.reckard@latimes.com

TEXAS POISED TO OUTPACE THE NATION… AGAIN!

Andrew McElyea — Sat, 07 Jan 2012 00:25:28 +0000

TEXAS POISED TO OUTPACE NATION (AGAIN)

COLLEGE STATION (Real Estate Center) – Texas’ economic outlook for 2012 is positive. Job growth is occurring in several sectors, and a low cost of living is enticing businesses to move to the Lone Star State.

It will be tougher going for the nation, however, because of several factors. The housing market needs to clear a high number of foreclosures. Consumers need to pay off their debt. The banking system needs to write off bad debt. Small businesses need to start hiring again.

Writing for the January issue of Tierra Grande magazine, Real Estate Center Chief Economist Dr. Mark Dotzour says, “Fortunately, Texas is poised to outperform the U.S. averages. Home sales volume in Texas should show modest improvement over 2011, and prices should be stable throughout 2012.” Dotzour’s economic outlook is titled “Texas Sails On: Nation Battles Headwinds.”

Other articles detailing findings from the nation’s largest publicly funded real estate research organization are in the issue scheduled for mailing in late January.

“Beyond a Reasonable Drought” by noted agricultural expert Dr. Joe Outlaw and Center Research Economist Dr. Charles Gilliland. Farmers, ranchers and service businesses that support them are suffering negative effects of the drought. To make matters worse, federal agricultural programs are on the chopping block to reduce the deficit.
“The Great Recession: Why Intensity and Duration Varied” by Center Research Economist Dr. Ali Anari. Why did some Texas metros fare better in the Great Recession? Results from the Center’s business cycle research program pinpoint several reasons. These included shares of employment in the government sector, education and health services industry, mining and construction industry, and the metro’s level of educational attainment.
“Dialing Down Debt: Road to Recovery Begins at Home” by Center Research Analyst Gerald Klassen. It will hurt, but American households will have to liquidate their assets and reduce debt if they want the economy to recover. This means selling luxury items including vacation homes, boats and RVs, as well as selling investments, declaring bankruptcy or suffering through foreclosure.
“For the Record: When to Toss Old Tax Records” by Center Research Fellow Dr. Jerrold Stern. At a minimum, tax records should be kept three years. However, a period of seven or more years is recommended. Tax and nontax factors play a role in the decision.
“Vested Rights: Project Protection for Developers” by Houston attorney Reid C. Wilson. Vested rights freeze land use regulations affecting property classification, building size, lot size-dimension-coverage and certain other matters once the owner or developer files a permit application for that project.
“The Trouble with Troubled Assets” by Center Research Economist Dr. Harold Hunt. The volume of distressed property sales was expected to be much higher by this time. So far, everyone is still waiting. However, according to commercial real estate insiders, distressed sales are on the way up.
“Terminated: Transfer Fees Outlawed” by Center legal expert Judon Fambrough. Transfer fees, money paid for transferring interest in real property, were implemented in 2007 legislation. Four years later, that law was repealed, prohibiting any future transfer fees and terminating existing fees that do not comply with the new legal requirements.

TEXAS DOMINATES BEST-PERFORMING CITIES INDEX

Andrew McElyea — Tue, 20 Dec 2011 01:56:45 +0000

TEXAS DOMINATES BEST-PERFORMING CITIES INDEX

SAN ANTONIO (San Antonio Express-News, Milken Institute) – Milken Institute just released its ”Best-Performing Cities” index for 2011, and Texas is everywhere you look.

Nine Texas MSAs landed in the top 25 on the institute’s list of 200 largest metros, and four of those ranked in the top five, including number one San Antonio.

Others on the list were El Paso (2), Austin–Round Rock (4), Killeen-Temple-Fort Hood (5), Houston-Sugar Land-Baytown (16), McAllen-Edinburg-Mission (18), Dallas-Plano-Irving (20), Fort Worth-Arlington (24) and Lubbock (25).

The state’s smaller metros didn’t do too shabby either, with five among the top 25: College Station-Bryan (4), Longview (9), Waco (12), Tyler (20) and Midland (22).

While it’s good news for Texas to do so well on in index that is based largely on employment growth, Real Estate Center Research Economist Dr. Jim Gaines said the state looked good mainly because other states didn’t.

“Our growth rate and advancement isn’t all that wonderful,” Gaines told the San Antonio Express-News. “We’ve managed to stay flat or have very small positives. But because everybody has so many negatives, we look so much better.”

Texas accounted for one in every five jobs created in the country between June 2010 and June 2011, reported the Express-News. Houston and Dallas alone were responsible for one in every ten new jobs in the country.

Gateway Mortgage Group’s Servicing Portfolio Surpasses $1 Billion

Andrew McElyea — Wed, 14 Dec 2011 18:09:09 +0000

Gateway Mortgage Group’s Servicing Portfolio Surpasses $1 Billion

- Experiences heavy growth after one year of in-house portfolio management

TULSA, Okla., Dec. 14, 2011 – Gateway Mortgage Group, a privately held mortgage bank providing conventional, FHA and VA loans through 50 retail branches nationwide, announced today that its servicing portfolio has grown to $1.2 billion in volume.

In 2010, Gateway executives decided to build the infrastructure to retain servicing in-house and end its reliance on the five large aggregators in order to provide borrowers with high service levels throughout the lending relationship. The company developed thorough policies and processes, brought on staff with extensive experience in areas such as collection, loss mitigation, and escrow analysis and worked with GCC Servicing Systems to create the internal platform. Within a year, the company had grown its portfolio to more than $1 billion, which was managed by 19 employees.

“We wanted to originate, fund, close and maintain loans for our borrowers instead of selling them off to a big box lender. Keeping it in-house was the only way to ensure great service,” said Kevin Stitt, president of Gateway. “As Basel III changes the role of large depository institutions in the servicing arena, lenders will be forced to either build in-house departments or select a sub-servicer. We were ahead of the curve in this move. With 90 percent of the country’s loans being serviced by five organizations, we felt it was important to bring diversity to the landscape while offering better service to our customer base.”

In addition, since bringing servicing in-house the company’s delinquency ratios have decreased year over year by three percent.

“Relying on larger lenders to service our loans, we had no control of the process and couldn’t ensure a great experience for our customer. Handling the servicing ourselves enables us to implement new, innovative ideas for working with borrowers,” said Stitt. “Not only is this good for our business, but for the industry and economy as a whole.”

About Gateway Mortgage Group

Founded in 2000, Tulsa, Okla.-based Gateway Mortgage Group is a complete end-to-end mortgage banking firm that offers conventional, FHA, VA, Section 184 and USDA loans through a network of more than 50 retail branches across 25 states. Through Gateway’s personal approach and strong dedication to its borrowers and local communities, the company helps customers make sound financial decisions with the right loan product to meet their needs. For more information about Gateway, visit www.GatewayLoan.com.

Get on the “Path2Buy”! with Gateway’s coach and Executive Loan Pro!

Andrew McElyea — Tue, 08 Nov 2011 00:01:12 +0000

Path2Buy

Path2Buy is a plan, a roadmap, a blueprint, a solid, concrete proven system to get you on the road to meeting your home buying goals. It works for renters looking to buy their own home or for current owners looking to move up, buy an investment property or refinance what they have.

Do you see yourself here? Here’s how we’ll help…

Credit scores
Your current rating isn’t quite as high as it needs to be to qualify for a mortgage.Your coach can advise you and access the tools necessary to improve your credit scores, while checking in every 45 days to keep you on track.Down payment
You don’t have the necessary down payment just yet. This is an online, debit card world. It’s easy to spend money you can’t see. But instead of spending it, we’ll help you save the money you can’t see.

Your Path2Buy coach understands the “real” numbers required for a down payment (e.g., 3.5% for FHA) and can show you what to do to get there. They’ll help you keep your footing to stay on the path with regular check-ups.

Job insecurity
You’re afraid to commit to a mortgage because your current job doesn’t feel secure.

Your Path2Buy coach keeps in touch to check on changes in your job outlook. Together, you’ll be ready to make the move when you feel the time is right.

Debt-to-income ratios
You have too much debt to qualify for a mortgage right now.

Well-versed in debt management, your coach can share valuable tips and insight creating a debt paydown plan that will keep you on the Path2Buy.

Debt-to-income comfort zone
Your debt-to-income ratio may be acceptable to others but not for your comfort levels. You have other obligations like tuition, or helping out a family member, that don’t show up on your credit report but get paid out of YOUR checkbook.

Once you share your position with your coach, you get solid advice for getting to that point where you feel more comfortable with your debt. Some will just go away over time.

Misinformation
Anybody can post a blog, publish a website or create a You Tube video. Too many people believe the false reports about credit qualification, down payments and other issues and concerns related to home buying.

Your coach will give you the straight truth including down payment and credit score minimums, and pledge to you to stay on top of all guidelines in the ever-changing mortgage arena.

Mobility
Are you concerned that your job may transfer you, or a new job would require you to relocate? How quickly can you sell the house you just bought?

Your coach will keep you updated as to market time in YOUR specific market. They will also be connected to the right individuals to provide the proper advice when renting out your home becomes an alternative.

Now is a great time to buy, if you’re in the right position. But if you’re not, It’s also a great time to get in a great position. It’s time to get on a Path2Buy.

Where do you Start? Just gimme a call!

TEXAS CLAIMS ‘TOP BUSINESS CLIMATE’ TITLE

Andrew McElyea — Fri, 04 Nov 2011 19:51:33 +0000

TEXAS CLAIMS ‘TOP BUSINESS CLIMATE’ TITLE

NORCROSS, Ga. (Site Selection) – Texas has claimed the top slot in Site Selection magazine’s “Top Business Climate 2011″ contest.

The Lone Star State finished strong in the objective, data-driven component of the index used to determine the top business climates, as well as in the subjective input supplied by respondents to the magazine’s annual executive survey of site selectors.

One survey respondent commended Texas for being “a pro-business, entrepreneurial, right-to-work state.” Another applauded the state’s tax climate, regulatory environment, incentive programs and work-force development efforts.

Site Selection reported that 40 percent of the new U.S. jobs created since June 2009 were created in Texas. A ranking by NewGeography.com supports that.

That site’s “Best Cities for Job Growth 2011″ rankings look at employment data over time across three population tiers. In the small metros category, Killeen-Temple-Fort Hood placed first, College Station-Bryan third and Midland fourth. El Paso placed first in the midsize tier, followed by Corpus Christi and, in fourth, McAllen-Edinburg-Mission. In the large tier, Austin-Round Rock-San Marcos placed first, Houston-Sugar Land-Baytown third, San Antonio-New Braunfels fourth and Dallas-Plano-Irving fifth.

Those jobs mean demand for office space, another area in which Texas has stood out. Houston, Austin and Dallas finished in the top ten markets nationally in office space demand, according to an analysis by national real estate services firm Cassidy Turley. The firm found those three markets alone accounted for nearly 20 percent of all net demand in third quarter 2011.

“Other markets in Texas are also positive,” said Kevin Thorpe, chief economist with Cassidy Turley. “The U.S. is a mixed-bag story, with many negative markets and many positive markets. In Texas, it’s positive across the board.”

Top 10 cities Targeted by online home-buyers!

Andrew McElyea — Thu, 03 Nov 2011 15:32:05 +0000

BIG D: SEARCH ME

WASHINGTON, D.C. (National Association of Realtors) – Which cities are homebuyers targeting the most in their online searches? Dallas, for one.

Realtor.com recently released its September search rankings of 146 metros, and Big D was the only Texas city to rank among the 12 most-searched markets last month.

Here are the top 12 along with the median home price for each city:

1. Chicago, $199,000

2. Detroit, $89,000

3. Los Angeles-Long Beach, Calif., $335,000

4. Philadelphia, $234,900

5. Atlanta, $159,900

6. Tampa-St. Petersburg-Clearwater, Fla., $140,000

7. Phoenix-Mesa, Ariz., $150,000

8. Las Vegas, $120,000

9. ***** Dallas, $191,025 *****

10. Boston-Worcester-Lawrence-Lowell-Brockton, Mass., $330,000

11. Riverside-San Bernadino, Calif., $195,000

12. Orlando, $159,500

ANDREW McELYEA, the “Executive Loan Pro” and the mortgage professional you can trust! No investor overlays means no closing delays!

Andrew McElyea — Sat, 01 Jan 2011 17:19:19 +0000

: The Executive Loan Pro

Welcome and thank you for visiting my blog. The information here is specific to the methods I employ to ensure your closing is on time and terms as agreed. You’ll find additional insights on the left, application link on the top right.

Andrew McElyea

National Mortgage License Number: 283216

________________________________________________________________

FULL DISCLOSURE – COMPLAINTS

COMPLAINTS REGARDING MORTGAGE BANKERS SHOULD BE SENT TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550.

THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEB SITE AT http://www.sml.texas.gov/.

Allow me to explain…

Andrew McElyea — Sun, 13 Sep 2009 04:38:04 +0000

You are probably here on this site because (a) you are family or a friend (b) you are a friend of family or friends or (c) you were referred by a great realtor or business associate of mine. Truth is, 99% of my business is referrals and I intend to keep it that way. Once you click around or “google me”, you’ll soon find out that I am very well connected to top notch real estate agents and, I am also in the process of following God’s calling on my life.

Are you still with me? I hope so. You’ll find that my life’s ambition is to serve God in the best way possible and I was shown that “way” in November of 2008. Here is the ironic thing. My income STILL comes from originating mortgages. GO FIGURE! While I am raising financial backing for my ministry, I am still 100% in the “mortgage business”. As a matter of fact, my mortgage business is helping to fund my ministry goals.

Rest assured, you won’t be slighted in any way relative to the “service” you’ll receive. As a matter of fact, scroll down to the lower left-hand corner of the page and read my promise. I am committed to you, the person that referred you.

Please contact me with questions. My cell is 469.774.4727 and email is andrew@executiveloanpro.com