City's Loan

This weekend, August 9th and 10th, the Burlingame Chamber of Commerce will be hosting its annual Art & Jazz Festival. There will be food, drink, activities, and events for people of all ages. Come visit us in the Fox Mall right by Baskin Robbins. We'll be giving out information about our new program for seniors; a no-cost, debt-free alternative to a reverse mortgage. I hope to see you there!Getting pre-approved for financing is absolutely essential in today's real estate market. Click here to find out why.

Jumbo Mortgage rates are highly sensitive to expectations for the U.S. economy.When the economy is expected to sag, mortgage rates tend to fallWhen the economy is expected to surge, mortgage rates tend to riseCurrently, the economy is expected to sag and surge in the later half of the year. I disagree but what live with what the market gives us. This is why adjustable-rate jumbo loan mortgage rates are holding their ground as fixed-rate jumbo mortgage rates increase.Fixed-rate and adjustable-rate mortgages are not as interchangeable as in the past and it's mostly because the Federal Reserve's routine has created expectations ...

This chart is very troubling. Things are only accelerating. 4.5% of mortgages in the 4 trillion portfolio are over 90 days late. From Calculated Risk. Oh the Parabolic Troubles.

This chart is very troubling. Things are only accelerating. 4.5% of mortgages in the 4 trillion portfolio are over 90 days late. From Calculated Risk. Oh the Parabolic Troubles.

Really? Rewind to basic Econ 101. Remember supply and demand. We know that when supply overwhelms demand that prices fall. With all this supple on the market where is the demand going to magically come from to prevent prices from dropping. One hundred percent financing for most credit levels is gone entirely. Average credit level buyers are being required to put at least 5-10% down with most lenders. Six months ago if you had a pulse you could get 100% financing. Millions of potential home buyers(greater fools in some markets) are completely out of the game. My honest take is ...

Although I’m sure that, like I, many of you are not at all surprised by the extent of the financial crisis we have seen to date, I’m absolutely certain that most of you are shocked by the extent government’s response.This decline was inevitable… it was obvious and for years many have taken to writing/blogging and debating it’s various details but could anyone have ever predicted that as a result of this ugly episode the federal government would violate our economic and social system to such an extent?I know I didn’t… I now see that I was naive.In anticipation of the ...

This chart was compiled from an FDIC report. It's easy enough to dismiss the evidence from the oil patch, if you want to. Prices there were forced down by an unusual, and very local, economic shock. The economies of L.A. and Boston are better diversified. Then again, if the oil boom-and-bust of the 1980s was an anomaly, what should we call the easy-credit-driven housing inflation of the early 2000s? Liar loans, interest-onlys, option ARMs, and aggressive subprime lending have changed the rules. We don't know how some people will handle these mortgage loans in a falling real estate market with ...

The endless bailout line gets longer -- and why we're going about this the wrong wayThe seemingly endless line of companies looking for taxpayer-funded bailouts just keeps getting longer, and the folks in Washington show no sign of forcing anyone out of it. This morning, we've learned that life insurance firms will receive aid from the TARP.From the Wall Street Journal:"The Treasury Department has decided to extend bailout funds to a number of struggling life-insurance companies, helping an industry that is a lynch pin of the U.S. financial system, people familiar with the matter said."The department is expected to announce ...

With the London Interbank Offered Rate (Libor) at record levels, thus hurting short-term borrowing, as well as blowing up many jumbo mortgages linked to the floating rate that have begun to adjust, it's useful to remind yourself how exactly Libor works. Click image to enlarge. LIBOR: The Driver of Jumbo Rates.

As a loan officer in California I specialize in the jumbo loan market. I have been encouraged recently by the re-appearance of some lenders (Suntrust, Citimortgage) into the jumbo loan space. Despite the increased competition, it is still very difficult to obtain a jumbo loan because of the strict underwriting guidelines. I have done a survey of my jumbo loan sources with the purpose of finding some minimum standards required in each area of underwriting. Here is what I have found: Stated income is virtually non-existent. However, I have one jumbo loan lender that will do stated income for large loan amounts. I wrote ...