KCAA: The Mortgage Voice with Jeff Barton (Sun, 16 Jun, 2024)

KCAA: The Mortgage Voice with Jeff Barton on Sun, 16 Jun, 2024

Episode Transcript

(00:00):
Insights and help you navigate the consistentlychanging world of real estate lending. Here
is your host for the Mortgage Voice, Jeff Barton. Welcome back everybody on
Jeff Barton, your voice in themortgage industry. Thanks very much for tuning
into the show listening to us.We bring to you the information of the
day, and today is chuck fullof it. At least this week has

(00:22):
been. We have the FED meetingas well as the CPI data that has
come in. But before we getto any of that, Jeff Barton,
the Mortgage Voice is on YouTube.YouTube is our home away from KCAA,
our radio station that we broadcast inthe Inland Empire CASEAA. We've been on
that station, I don't know eightnine years. We love what they do.

(00:43):
They bring us to you with theie San Bernardino and Riverside counties,
and as you all know, outthere in those particular areas, getting mortgage
information that you can rely on isdifficult. You either got to know an
uncle, you got to know afriend, you gotta know somebody who's recommended
to you. But here it's unbiased. I'm just gonna give you what I
think, and I've been in thebusiness thirty years plus. So it's not

(01:07):
gospel, but it is close towhat I think today is about, which
is trying to give you accurate informationthat you can use and act upon,
and that is in itself good enoughfor most people. Take what it is,
go out and find yourself a terrificmortgage broker or a real estate agent
or both, and then go househunting. There is some good news in
the house hunting world anyway. Again, I'm Jeff Barton. This is the

(01:32):
mortgage voice in the house hunting world. Yes, we do have an inventory
that is up. It's been upabout the last five months in a row,
after being you know, being lessand less each month for the previous
I don't know, seventeen months.Now, we got a long way to
go to catch up to where wewere in twenty nineteen pre pandemic. Reason

(01:52):
is is just because that pandemic,I'm telling you, it's set the real
estate the rhythm market as well asthe purchase market on its head. We
had such low rates that everybody bought. Nobody wants to move now because he'd
be crazy. They call that thelock in rate and the lock in problem.
We used to get a lot ofdifferent buyers and sellers in the marketplace.

(02:15):
We just want to move. Theywanted a bigger house, or they
wanted a smaller house, or theywanted to move just because it was time
to move, or they got oldand they wanted to downsize, or they
wanted to upsize because they got morekids. There's many reasons why in the
market. Prior to yeah, wehad a lot more movement, a lot
more housing on the market, andtherefore prices weren't as high as they are.

(02:38):
But as rentals became what they becamein distant cities, when people could
work from home or had to workfrom home, we saw a trend developed
which was inflationary spiraling of real estatecosts. And those costs are today continually
reflected not because of the pandemic orpeople moving away from the inner city,

(03:00):
because most people move back, butbecause less houses were built. Now we
try in the industry to highlight thatto people, to let them know that,
hey, you know what, thereis probably a million less houses per
year being built than should be beingbuilt. We probably have a demand of
you know, a good few million, if not ten million, deep i

(03:23):
e. People supply demand being whatit is. If you want something,
you want to pay for it.You'll pay more than what it's actually worth
in order to get it. Thatis the way it works. Well.
Right now, we have a situationwhereby housing prices are so high, we're
getting more houses staying on the marketfor longer. We're even getting a small
percentage twenty five thirty percent of houseson the market actually in price reductions.

(03:49):
But it's a deceiving term price reduction. What does that mean? You overpriced
it by thirty percent and you dropthe price by fifteen so that means it's
still overpriced by fifteen percent. That'swhat's happening in a lot of areas.
But again, as I said,this is what's happening both here in southern
California and nationally. So this isa problem that exists all over the place.

(04:11):
Okay, let's get right to it. As I said, I'm Jeff
Barton Mortgage Voice. Here we go, thirty year fix rate six point nine
eight percent, fifteen years at sixpoint four zero, FAHA is at six
point four to two, the jumbois at seven point twenty five, and
the VA lon is at six pointfour to five. The two years at
four point seven four to eight andthe ten years at four point three zero

(04:32):
eight. Yes, if you arelistening to me week after week, you'll
realize and recognize rates went down,and yes, that meant that there is
more activity in the mortgage market.Mortgage applications ticked up quite a bit this
week, just because the rates dippeda little. As you see also that
the treasuries, the two and theten, there's still about a thirty five

(04:53):
basis point spread between the two tothe negative side, meaning the two is
yielding more more than the ten.However, those particular two bullet points or
whatever you want to call the information, they don't mean much as they used
to. It used to mean thatif you had the two year, which
was priced more or yielding more thanthe ten year, we were in recessions

(05:18):
harm Way. Well we're not thereanymore because we're over two years into this.
I was listening to Bloomberg Radio onthe way to the show, and
I love that. By the way, it's a great radio station. It's
unserious. I don't know if theyhave a local feed. It's not like
CACAA where you can turn on yourradio driving around on Saturday and Sunday and
listen to us but Sirius has agreat Bloomberg feed, and Bloomberg's on your

(05:44):
computer, so if you do listento it, you'll understand what I'm talking
about. They were talking all aboutthis as well, in how the two
and the ten mean nothing anymore.It's as if that particular poor tend of
the future just never existed. Nowwe'll have to see, but there no
recession on the horizon. If anyoneheard or listened to Jerome Pyle talk about

(06:05):
what's happening with the Fed, andagain the Fed has remained Again, I
didn't even tell you. The Fedhas remained the way they are. They
are going to keep higher for longerfive point twenty five to five point seventy
five four member banks to borrow fromthem. That's a benchmark interest rate that
obviously is going to show up inyour credit card payments, your house not

(06:27):
your house payments, but your yourcar payments, credit card payments, and
certainly any kind of auto loans.All that kind of stuff is going to
be reflected by what the Fed hasas their interest rate now as mortgage rates.
Last week we tried to ferret outfor you and let you listen to
an explanation of why mortgage interest ratesare what they are and why they watched

(06:49):
so closely what the FED does,and I said, it was all about
competition between what was being bought onthe debt market, whether it's mortgage backed
securities or whether it's the treasuries.Those two have to compete. They have
to compete on price, they haveto compete on yield, and when that,
in effect is controlled by an arbitraryFED number of five point two five

(07:11):
to five point seven five percent,you are not going to see a lowering
of the interest rate on the mortgagesthat much, although they did come down
some so as we said, we'rebelow seven percent again for the thirty year
fixed and that is good or goodenough for a lot of people. Now,
historically, seven percent is pretty goodinterest rate. As I've said many
times on the show, eight pointseventy five is my first loan I got

(07:34):
back in ninety I don't know,ninety something, and that was I was
very hard happy to get it atthe time. Now, granted there was
much more inventory and the price onhouses wasn't as high as it is today.
The price on houses is really amazing. But let's get right to a
little bit of the CPI, that'sthe consumer Price Index, which happened to
come up at the same time thatthe FED was meeting, and the Fed

(07:56):
said that they were going to remainhigher for longer. CPI inflation didn't go
up as much as people thought itwould. Basically was flat. In May
it was three point three percent,and in I mean in April it was
three point three percent. In Mayit was three point three percent. Also,
therefore, the market's stock market usuallythat's what we talk about, was

(08:18):
happy, and it went up,and it went down and went sideways.
But what it didn't do is panicand have an explosion like it did last
month. Because we saw a littlebit of a raise in the interest rates
in the inflation rate in March andin April, stock market didn't like it.
But right now we're seeing a longterm trend of slowing ever so slowly

(08:43):
the inflation rate. Now, Ihave a few products here that I wanted
to just describe to you. Someprices going up, some prices going down.
In the up section, shelter shelterwas the biggest what they call the
unsheltered in the shelter index, whetherit's rental or purchase, both of these
particular items are about fifty to sixtypercent of what the inflation rate is.

(09:05):
So as these prices continue to goup, that's a problem. We need
to see housing prices come down,as I explained earlier, unless we're building
more. It's a supply and demandissue, and yes it's not an easy
thing to solve immediately. A coupleother things auto insurances up, restaurants are
up, transportation and grocer also up. On the downside, gas is coming

(09:28):
down, use cars, rental cars, airfares, hotels and new cars as
well are also coming down in price. So there is some good news in
this inflation report. We need tosee more of it so we get the
Fed to cut so we'll see tangentiallymortgage interest rates come down to We have
a jam pack show on Jeff Partn, your Voice in the mortgage Industry.

(09:48):
We'll be right back. You're listeningto the Mortgage Voice with Jeff Barton.
We'll be right back with more andjust a moment for questions or comments,
send emails to info at melibu somethingdot net. Now back to the Mortgage
Boys with your host Jeff Barton.Welcome back, everybody. I'm Jeff Barton,

(10:09):
your voice in the mortgage industry.Thanks very much for tuning into the
show listening to us on a weeklybasis. We try to bring you the
best information that you can use ona daily We always do that by keeping
you in mind. You want toknow where the houses are, where the
cheapness is, when interest rates arecoming down, as my job gonna last
forever, when's inflation you're gonna stop. Yeah, there's a lot of stuff
that we touch on this show.Answers not so much, but we certainly

(10:33):
bring up good quality discussion in allof these areas. Joining us once again
is Connie Hernandez from PMA to answerall of those questions because I know she
has the answer. Connie, howare you? Oh my gosh, thank
you for that am interetion all thoseanswers, Well, you know what,
how about let's let's just work acouple of them. I know that you

(10:56):
know, we're in early part ofthe summer or late spring, and we
always think that that time of yearreally sets the tone for the rest of
the year because you know, supplyand demand and housing prices and all that.
People are either moving or they're notmoving. They're buying or they're not
buying. Where does it stand outin Covina and the Inland Empire. Well,

(11:16):
you know, unfortunately, I'm surethat real estate agents are seeing this
everywhere. We still don't have enoughinventory, right, jess. Right,
We're still struggling to put our clientsinto homes. But on the good side,
we do have We are busy onour real estate division for real estate

(11:37):
and then obviously helps us with theloanside. Sure, you know, I'm
kind of been around for a littlebit, probably close to as long as
you have, and you didn't mentiona number though, all right, it's
okay, Well a little bit,right, yeah, a little bit yep.
Well, with that being said,you know, we're we're looking at

(12:00):
new opportunities. Obviously, we builtour business on old technology and handshakes and
meetings and seminars, and I thinknow with the new systems in place,
social media, we have to reallystrongly look at those avenues. I think
door knocking is still okay, butit's just not the whole answer anymore.

(12:22):
We really have to be a bitmore innovative on how we run our businesses.
Obviously, we would love to haveour business like it was what four
or five years ago, but surethat's not the case. The interest rates
haven't budged, so that means wehave to do make some changes on our
side right right now, I thinkwhat you're saying makes a lot of sense,
especially in our business, especially withthe lawsuit that you know, NAR

(12:45):
stumbled into and then all of asudden, a lot of buyers agents are
finding themselves in a completely new fieldin terms of how they represent clients or
if they can even get paid ifthey represent clients. So there's a lot
of changes there too. There is, and I think that it's a very
devastating situation. I mean, obviouslythose agreements have always been there, it's

(13:09):
just they haven't really been used.And because it's always been a customary thing
that you're a seen agent, youknow that you're going to be marketing to
buyers agents and without sharing the compensation. But that that still, in some
situations I think will continue. Idon't know for how long, but it

(13:31):
does put a sense of a neaseand I think for the agents that are
mainly representing buyers. But really that'sgoing to put the buyers in a very
difficult situation because, as you know, our job as a fiduciary agent.
We have to represent these sellers ifthat's who we're in contract with, and

(13:54):
we have to also disclose if we'relisting to property that are shary. Relationship
first and foremost is to the seller. So where does that leave the buyer
as far as representations. That's kindof a scary thought that I think maybe
was not thought through. I think, like many things, if you just

(14:16):
put your head down and get apillow and put it around your ears and
don't look around, all of asudden, the problem goes away. I
think for the most part, theissue here is simply that the buyers have
never paid. I mean they haveI guess if you consider that they're paying
for the property and the cell,it takes the part. But this has

(14:37):
left a big hole in representation forthe one person in the transaction who really
needs it, which is the buyer. Because the buyers don't have extra money
to pay you. That's what that'snever going to happen. I just thought,
yeah, absolutely right. You thinkabout all of the first time home
buyers that are struggling to you know, capture that American dream, right yep,

(15:03):
the home ownership dream, and they'reputting there, you know, for
better lack of words, they're savingstogether and maybe receive some help from mom,
dad, grandma, family members,and you know, putting that down
payment together, putting those closing coststogether. I mean, the DPAs have
their challenges, I believe. Imean, they're they're not for everyone,

(15:24):
right. The thing is, ifthey're struggling to put those funds together,
how now are they going to payto have someone properly represent them. I
just don't see that happening. No, you're going to get low ball offers.
You're not going to get paid whatyou're worth. There's going to be
a two tier system in how realestate agents are viewed. Oh, you're

(15:46):
a buyer's agent, so you'll workfor anything. I mean, that's the
mentality. I'm a seller's agent.I'm going to get three three and a
half percent every time I, youknow, sell a house because the sellers,
they are the listing agents themselves,have an expertise and they do that's
what they do now like us,we do both. So we're kind of
like, Okay, part of mybusiness is not going to do well because

(16:07):
I never used the contract and Ialways got paid. And the reason I
always got paid is the main pitchis I don't pay you. You don't
pay me, the seller pays me, and therefore you don't need a contract.
That's a simple five second don't worryabout it. I'm gonna work for
you. I'm gonna kick butt andat the end of the day, it's
gonna question nothing. That's a greatsales pitch. I mean, now I

(16:30):
have to go completely the opposite saying, well, here's my list of qualifications
and why you should be paying methree three and a half percent. I
mean, come on, that's andnobody addresses it. It's like it doesn't
even exist when you talk about it. It's kind of like being brush underreg
and I really don't you know.Unfortunately, I haven't come across the situation

(16:52):
where the listines haven't had compensation forthe selling agent yet, right, but
that may be come maybe not.But regardless, the rule is there,
right, so we have to addressyou have to do it now. It's
not a choice. It was anagreement not made by me. I don't
have a union. This was madeby an organization that was trying to bail

(17:15):
themselves out of getting sued and gettingsued to the tune of one point four
billion dollars. I think they alreadyhave to pay. Oh, come on,
you know that they were selling somebodyout and it happened to be the
buyer's agents. That's what happened.Because the seller's agents and the sellers agent's
companies that represent most sellers, thatwas the best way that they could figure

(17:36):
out how to deal with this,you know. So in my opinion,
it'll it'll work out one day,but not today, that's for sure.
Maybe not your time, but maybeour next generation hopefully, Yeah, maybe.
And I think there'll be some addedservices that the buyer's agents should be

(17:56):
able and allowed to do, whichwon't necessarily have to you know, cut
into the bottom line of the seller, but at the same time make some
money. I mean, menu ofservices, value added services, something like
that. Anyway, we have abouttwo minutes left. I wanted to get
to a couple of loan products thatmaybe you're you know, happy to talk

(18:17):
about in terms of what your businessis geared towards. Well, right now,
we're actually doing a lot of DS c R loans and not just
for purchases, although that actually haspicked up quite a bit, but more
for the refits. We've actually hadan inflow of business for the d D
s c R loans, and thoseseem to work out really well. They're

(18:38):
they're a bit easier to tackle.Clients know that they're paying a bit higher
interest rate for them, but youknow the fact that they don't have to
provide a ton of documentation is thebig, you know, the big reason
why they go forward with it.Plus you know, some cases they are
doing cash out reinvesting that money elsewhereare their properties or other investment opportunities.

(19:03):
So I think right now our bigfocus is on the DSCR loans, although
obviously we still handle all the otherproducts. We have a trickle of business
coming in for buyers that are stilldoing the SAHA, the conventional minimum seam
it loans, but there seems tobe a big push now in our office
for doing more commercial type loans.Yeah. You know what that's because it's

(19:26):
it's treadless. It's you know,like you say, less documentation. It's
more about bottom line, what's thedown payment? You know, let's get
into what the rents are going tobe so we can figure out exactly where
the gap is and then fill thatwith whatever other information they might need.
It's just a simpler, easier wayand less liability. That's what I see.

(19:48):
You're correct, we need to saythat right. Hey, Connie,
we're at the end of it.Thanks for coming on. Could you shout
out a way by people can getin touch with you, especially if they
need someone with not only knowledge andexperience, but who really do I us
care about whether you're going to getin the house this year? Oh?
I absolutely do. Thank you,Jeff welcome. You can reach me where.
Our office is on the corner ofthe Jello and Citrus in downtown copinat

(20:11):
one oh one North Citrus. Ouroffice number six two six nine one eight
two four one nine. My directnumber is six two six four two two
to zero one seven. I wouldlove to answer your questions and help you
with your loan meets or real estateneeds. Excellent. Connie, thank you
very much for coming on the show. I really appreciate it. Thank you,

(20:33):
Jeff, You're welcome. That's ConnieHernandez from PMA. I'm Jeff Bartner,
your voice in the mortgage industry.We'll be right back. You're listening
to the Mortgage Voice with Jeff Barton. We'll be right back with more and
just a moment. For questions orcomments, send emails to info at melibufundings
dot net. Now back to theMortgage Boys with your host Jeff Barton.
Welcome back, everybody. I'm Jeff, partner voice in the mortgage industry.

(20:56):
Thanks very much for tuning into theshow, listening to us as we bring
to you the best information out therein the Inland Empire concerning mortgages in real
estate and ways by which you canget into a house this summer. I
know the prices are high, Ireally do. I know that the mortgage
interest rates aren't coming down. Well, they came down a little bit last
couple of days, so that's agood thing, fed mate, and inflation

(21:21):
came down the CPI, so thereis some good news out there. Certainly,
we're trying to get through a veryvery hot summer. Joining us once
again from Nations Direct is one ofour best go to people really knows the
industry well is April Lopez. April. How are you? I'm great,
Jeff Barton, how are you today? Thank you? Nobody ever uses my
last name but you, and Iappreciate that. I'm great too, Thank

(21:44):
you, wonderful, wonderful. Okay, give us the skinny on what's happening
at nations, where the business is, if there's business, and what you
foresee over the next couple of monthsin the summer. Absolutely, you know,
it's kind of interesting. We areseeing a big uptick in submitted business

(22:07):
despite the raps you know, havebeen kind of going up and down.
We saw a little bit of adrop the past couple of days, and
then interesting enough, today the Fedspoke that they were making no changes and
then we got a worsening of priceabout an hour ago. But I'm telling
you there's a lot of people whofinally just accepted the fact that the rates

(22:30):
are where they're going to be becausewe definitely have an influx of business that
is keeping us busy. Oh that'sexcellent news. And is that a national
turndor is a more southern California.I think it's actually outside of Southern California.
I think it is. I thinkit's definitely national. I see a
lot of the submissions coming from thenortheast and the northwest, and in those

(22:56):
geographical areas, I think that thosehomes are more affordable. We're seeing a
lot of government purchases along with alot of just first time home buyers that
are taking advantage of some kind ofyou know, just benefits on the government's
low level price adjustments for first timehome buyers whose average median income is within

(23:21):
one hundred and twenty percent of thosedictated values. Okay, explain that a
little bit so people have a betterunderstanding. Absolutely. So the government came
out and they said, based onthe county, the census track across the
nation, they have put together agrid that says the average median income for

(23:41):
that census tract hypothetically one hundred thousanddollars. Okay, if you are a
first time home buyer and you arewithin one hundred and twenty percent of that
one hundred thousand dollars of income,So if you make one hundred and twenty
thousand dollars or less, then wewant to make the loan more affordable.
So we're going to reduce the adjustmentto the rate for that new first time

(24:07):
home buyer on those parameters, whichmeans at a low down payment, instead
of you having an adjustment of twoand a quarter, your max adjustment will
be one one and a half percent, which means your cost to take out
that loan is going to be less. Yeah, it's about fifteen hundred to
two thousand dollars in that range onone hundred thousand dollars property or something like

(24:30):
that. Anyway, that's that's verygood. And is this the type of
product that's being taken advantage of inthis national view? I absolutely think so.
I think that the big the bigplayers like QUICKT and UWM and US
you know, middle sized lenders,we are definitely taking advantage of that.
And Fanny and Freddie are also andpredominantly Fannier. They're giving first time home

(24:55):
buyer grants to the banks like theQuickens and the Nations REX. So we're
going to roll it out within thenext sixty days where if you're a first
time home buyer and you are gettinga conventional Fanny loan, that you're going
to get the ability to have atwo thousand dollars credit towards your closing costs.
And that's already been implemented across thenation with the larger banks who already

(25:19):
have that in place with Fanny andFreddy. Do they consider real estate agent
commission closing costs? You know,that's still on the table. So we
are thinking it's not because it's partof the real estate transaction. But since
that's going to be rolling out soonerthan later, we're gonna get more definition
on that. But we don't thinkso, we think that's going to be

(25:41):
separate aside. And I do knowthat a lot of people have been asking,
well, if we'll the lender belooking to roll in the cost into
the loan, so talk comes alsothe Real Estate Commission, is what you're
saying, right, absolutely yes,So if if Fanning Freddy and the government

(26:04):
agency deem that is the cost ofdoing the loan, that, I'm sure
you're going to find that those programsare going to start rolling out where we
will be able to finance that intothe loan. Yeah, that's because it
is the only way really buyer's agent'sgoing to get paid. I spent a
little bit of time off air andduring the last segment talking about it and
how really it's flipped the industry anda lot of people just don't know what
to do. NAR has not reallybeen a help, and car follows n

(26:29):
AR. So you're really on yourown if if you're a buyer's agent and
you really have no idea what todo and totally get paid that was one
of the suggestions. But again it'sgot to be litigated. It's got to
be you know, you know howthings take so far and so long to
get completed. Anyway, That's whyI was just trying to ask you to
see if that was part of thebanks policy. Uh what else? What's

(26:49):
what's happening in terms of refinance?Refinance is dead right, I mean nobody's
doing that, so what there?So, yes, no one's refinancing their
first trust. However, we seea ton of second mortgages right now.
So I'm doing a lot of secondtrustees in Southern California, full second trustees,
not he locks or anything like that. Correct, Full second trustees fully

(27:14):
amortized over up to thirty years andthey're closed in so they're not he locked.
And I'm seeing those more in SouthernCalifornia because of the loan amounts,
because we have a minimum loan amountrequirement. What one hundred and fifty one
hundred thousand, How much is it? Well, actually it's seventy five thousands,
but you're not going to get paidat seventy five thousand. So it's
really difficult for the brokers to evencommission under one hundred and fifty thousand.

(27:40):
Okay, I understand that you mentionedRocket and you mentioned UWM. The big
players. How are they lasting inthis thing? They must be getting killed.
Well, you know, it's interesting. I think that they as far
as refise, yes, but youknow, they have so many different incentives
to offer the new own buyers thatwhen you when I was reviewing Scottsman's Guide

(28:03):
and I was looking at the toploan officers in twenty twenty three, along
with the current ones eighty percent ofCalifornia's business. It's actually eighty eight percent
of what we see is going tothe quickens in the Rocket just because of
innovation speed. They take on alot of the costs, you know,

(28:23):
or in verifications of employment, condoquestionnaires, things that are a lot of
costs to the borrower. And asyou can see now that CFP have come
in and said, hey, wewant to investigate now on how we can
lower fees for the consumer. Sothey're looking to crack down on that.

(28:44):
But because these bigger entities have theability to absorb those costs, they also
have an inside more excuse me,inside insurance company or m I, so
their MI is lower, so thatattracts more buyers because their mortgage insurance can
be anywhere from thirty dollars to onehundred dollars less than maybe sending that loan

(29:06):
to myself, where we use thetop players in mortgage insurance like MGIC in
essence, but our rate is justa tad bit higher. Yeah, you
know what, I just don't seehow a company like that, these are
just the biggest countries companies in thecountry, how they can stay afloat or
how they can you know, lastthrough a downturn time. They must be

(29:26):
losing per loan have to be.I mean all the smaller companies, you
know, everybody's treading water to waitfor the next REFI boom. Yeah,
I mean they definitely took a hitbecause I know that, you know,
they've you know, and they're tryingto pick up on the non qualified mortgage
section of loans. So they aretrying to do that. But they have

(29:47):
scaled back, but they still arethey still are taking the larger piece of
the pie nationwide. Right, Okay, we have about a minute left.
Give me your ideas. So whatwe can expect this summer both in rate
product from nations. Well, Ithink that our race right now, our
talk on loan sifter. So you'regoing to see Nations being very aggressive in

(30:07):
price nation. Why the raths aregoing to stay stable. I don't see
an increase or a decrease of anythingsignificant until after the election in the first
quarter of next year, yep.So, and you know, we're just
continually being aggressive getting those loans closedand getting to the finish line as fast
as we can. Excellent. Thankyou, April. Thanks once again.
I love having you on the show. It's easy. Plus the knowledge is

(30:30):
great and I really appreciate that.Would you allow, not allow, but
to shout out what your phone numberis so people can get ahold of you
if they need you. Absolutely,April Lopez eight one, eight three,
nine, eight one two, sevento two. Excellent And that's April Lopez
from Nations Direct. April, thanksvery much for coming on the show.
Thanks for having me. Jeff allright, bye bye, I'm Jeff Bartin.

(30:52):
Your voice in the mortgage industry,be right back. You're listening to
the Mortgag's Voice with Jeff Martin.We'll be back with more and just a
moment. For questions or comments,send emails to Info at melbufundings dot Net.
Now back to the Mortgage Boys withyour host Jeff Barton. Welcome back,
everybody. I'm Jeff Barton, yourvoice in the mortgage industry. Thanks

(31:15):
very much for tuning into the show, for listening to us. If you
listen each and every week, you'llrealize that very quickly. Not only do
we bring up topics that are importantto decide whether you're going to buy and
sell real estate, but it's alsoat the heart of what is happening in
our industry. There's so many changesit just in the real estate side.

(31:36):
We talked about the commissions and who'sgetting paid and why there's no support for
certain types of transactions. On thelending side, of course, are people
getting used to the seven percent plusor are they into just getting into the
property for whatever it is that theycan do and then worry about the rate
later. I think there's a lotto be said for both, but I
don't I'm not the guy with theanswers. Come on. The guy with

(31:57):
the answers is Charles Gisco. Hecomes on the show a lot. He
talks about what's happening in the lendingworld, and he joins us again once
again to help us sort through it. Charles, how are you. I'm
doing great, Jeff, thanks forhaving me today, my friend excellent.
The Boston Celtics of the lending worldhas joined us, and we really do
like that throw that in there alittle bit. I love how you tossed

(32:21):
that in the boy take the BostonGot it? Really that up? Folks?
You know what? And I knowmy audience here in southern California saying,
but it in Riverside Counties. Iknow you're all Lakers friends, and
I'm sorry, but they're just Idon't know what they're doing with their coach.
I don't know what they're doing withtheir players, but they still got
a team that you watched, becausethat's how it works. But speaking of

(32:43):
building team building or building building,Uh, what kind of loans you're doing?
Uh? You're still into any kindof DSCR? Is it mostly commercial?
You're putting deals together all the time. Give us a synopsis of what's
happening in your lending world. Well, Jeff, we have the fortunate I
have. I have been fortunate toworking with Malable Funding and United Kitty Financial

(33:06):
and different companies to be able todo a different and a plethora of loans
besides traditional lending. We obviously canoff off for commercial mending. The traditional
lending has been slow, but it'sbeen steady, uh and interest rates have
been high until today, right whenthe the and the data reports hit,
the inflation shows is down and guesswhat, the mortgage rates lower, and

(33:30):
so now you know you have someloans that are under seven percent, which
is which is probably going to createa buzz in the market. The one
thing that we have steadily done onour side is to make sure we find
loan products that will be able tohelp the individuals regardless of our rates are
up, rates are down. We'relooking for non QM loans that take the

(33:51):
place of traditional lending, that havea little bit higher interest rate, but
there's value added services to the backof these loans, meaning arms or meaning
longer amortization terms forty years now anlessen the monthly payment and that will keep
people steady and keep them focused andexcited about the industry at this point.
And so that's the type of loansthat we've been doing. But of course

(34:14):
we do do traditional loans as wellas commercial loans, no dock loans,
bank statement loans, all these typesof loans are out there in the lending
world for individuals who want to takeadvantage of the market stall. You know,
you talked about being a little bitof a not a fixer, but
somebody who could make things happen.IU have solutions for a lot of difficult

(34:37):
customers and a lot of difficult loans. However, some people do think that,
as you said earlier, that thereare miracle workers out there that they
can just poof all of a sudden, you got the money, make the
deal, and you can't either provecredit or you can't approve, you know,
any way that you can pay theloan back. What are some of
the ways that you can help abuyer understand that there are responsibilities that you

(35:00):
can take care of, but there'scertainly many that the buyer has to do
themselves. Well, I was jokingearlier, but I really mean this,
folks. Under the tutelage of masteryielded Jeff Malibu Funding, I learned very
many skill sets. The one goodthing about Malibu Funding and Jeff in particular,

(35:21):
was Jeff kind of had us allbe Swiss army knifs. When I
say that you're going to have todeal with different individuals, different problems,
different hurdles that they're going to haveto cross at all times. And having
a lender or a loan officer oran originator in your corner that has dealt
with all these different things is superhelpful. The one thing that we had

(35:42):
the ability to have Malibu Funding andat United Security Financial is speak directly to
underwriters. A lot of times,what we would create was an environment that
allowed us to take the situation orissue that other people may have had or
they think they're going to run into, introduce those upfront. We can cross

(36:02):
those hurdles and know that the hardestpart of the transaction we were able to
bridge across. So now everything elseshould be business as usual and get that
situation done. Blessed to have thoserelationships, Blessed to work with different lenders
that offered us that opportunity, Andso a lot of times what I tell
our clients is because of our relationships, because of our history, our resume,

(36:27):
our experience that we have, we'reable to talk to individuals, talk
to different underwriters or processors and getsome answers to some questions ahead of time,
so that we know that we hada loan that we could work on.
It doesn't mean that would take anyless time. It just means that
when we crossed that bridge or hurdle, we knew that we have an answer
for it. I think sometimes preparationis best upfront, so that later on

(36:52):
in the loan, when we werecrossing hurdles and bridges, we can get
past them. Yeah, and whatyou're talking about is, hey, if
there's maybe a problem with how wepresent this loan, we got to have
an answer. Now. It doesn'tmean that there is something wrong with the
loan. It just means that asyou present the information to the lender that
those issues that might come up.Maybe they need another years of bank statements,

(37:15):
maybe they need some other proof ofincome. Maybe they need you to
pay off some debt in order toget your credit score up. All of
these things are things you talk aboutup front. That's what you're talking about,
absolutely, Jeff. I always tellthe clients because I create a relationship
and I want to create a rapportor they can speak directly to me and
transparently to me as I can tothem. Don't tell me what you think

(37:37):
I want to hear, right,tell me all the stuff I need to
hear, because I'm licensed to paintthe picture and story. So please give
me the information and I'll make surethat I create the workaround and so that
the different professionals that I'm dealing withwill understand exactly what the issues are so
we can tackle them. That way, we don't get bombarded at the end,

(37:57):
towards the end of the loan wheneverybody's were anxious and the pressure's on,
and all of a sudden, nowthe deal blows up. But no,
we brought the bomb dog out aheadand the robot took it apart.
Yeah, and now we're good,so we can pass through now that all
that's true. And what I wasthinking about prior to saying that was the
lenders that we talked to are thepeople that we've known also, and placing

(38:21):
your loan in a certain lender's handson the brokerage side is a way by
which problem solving gets easier, justbecause not that one lender is easier than
another, but if you've got acertain type of loan that a bank or
a lender really identity does really well, that's who you want to go to.
If you want speed, you goto a certain type of lender as

(38:44):
well if you go to the rocketsof the uwims, but you have to
have a loan submitted in a certainway because you know exactly what they need
in order to get the speed youneed. So that's really kind of important
that you, as the loan officerhave that information for the borrower as well.
That's the important aspect of being aloan officer and an originator, right.

(39:05):
Membership has its privileges. Right certainbanks that we deliver so many loans
to and have been for years Jeffand the team for many of years,
is that we understand we're responsible,we're accountable, and we're trustworthy. And
at the end of the day,they know when we bring them out to
the table, we're going to knowthe ins and outs to that file.
So we can all surgically pinpoint wherethe problem is going to be and we

(39:29):
can resolve it. Because understand somethingin this industry, problems happen all the
time. It's how quickly and effectivelywe resolve them as a loan originators that
get these deals done and across thefinish line. Yeah, I know all
that is so true. I meanI see people who are struggling and I
go, what's the problem. Well, you know, we were supposed to
close by X date and looks likewe might not be able to our so

(39:51):
oh okay, I understand, butyou hear that, especially in a market
like this, where there's so manypeople competing for houses, you have to
have an ability to be able tomove from solve problems, but to be
able to identify those things upfront andto be able to compete with other you
know, loans that are out therecompeting for that one piece of property that
you want to buy. Jeff isabsolutely correct. I love to talk about

(40:15):
it. Basketball has me a numberof wonderful different things and taking me many
places around this country and around thisworld. But the one thing that has
done best for me, it hastaught me how to problem solve on the
fly, and I'm grateful for it. And it all comes in handy from
working loans out with our clients.Excellent, Charles, We are at the
end of it. Thank you verymuch once again for coming on the show.

(40:37):
Love having you on. And we'llhave to have a party once the
Celtics wrap this thing up in acouple of games. Oh. I told
everyone, Jeff, We'll find away to add the Celtics situation at all
times, and I love him andhe is right and pleasure to have me.
Thanks for having me on Jacks.It's always a pleasure, no problem.
Shout out your phone number for peopleif you would, I sure will

(40:58):
you can reach me seven two fivefive seven seven eight seven sixty one.
That's seven two five five seven seveneight seven sixty one or C. Giscomb
at USF Wholesale dot net. Thatis C. Giscomb at Uncle Samfrank dot
net. Excellent. Thanks very much, Charles, thanks for coming on the
show. Thanks for having me.Jeff, that's Charles Giscomb from a USF

(41:22):
United Security Financial. I'm Jeff Bartner, Voice in the Mortgage Industry. We'll
be right back. You're listening tothe Mortgage Voice with Jeff Barton. We'll
be right back with more and justa moment for questions or comments, send
emails to info at Melibu funding dotnet. Now back to the Mortgage Boys
with your host Jeff Barton. Welcomeback, everybody. I'm Jeff Partner,

(41:43):
Voice in the mortgage Industry. Thanksvery much for tuning in listening to the
show. As we come to youeach and every week. Casey AA is
the radio station that brings us toyou. We also are on a number
of different podcasts. And those podcasts, Darrell, do you have a list
to those? I sure you.Jeff It's Apple Podcast, Google pod Cast,
Spotify, Speakers, Stitcher, iHeartMedia, Odyssey, YouTube, podclips,

(42:04):
dot IOA of course, the MortgageVoice dot com excellent. Mortgvoice dot com,
by the way, is our website. If you go there you can
see and hear a lot of theguests to come on the show and away
by which you can contact them directly. Podclips dot io I pitch them every
week. Why because they are greatand you can go there for your central
podcasting needs. There's all kinds ofdifferent areas within the podcast group. I'm

(42:27):
one of them, of course,Jeff barton The Mortgage Voice, and there's
uh, let's see, there's lifestyle, there's sports, there's a d R,
there's h what are some of theother programs on there, Darryl.
They get sports that they have financeand h yeah, you mentioned lifestyle and
arbitration. The ADR is oh,oh yeah, the arbitration. You know
what. In our business, sometimesit comes down to being able to find

(42:49):
somebody to bridge a gap between yourside and the other side, other than
hiring lawyers and suing each other.Well, these guys at ADR do that
and they are on podclips dot IOWgreat place to go and of course health
health. Oh absolutely. Anyway,I'm Jeff Barton. This is the Mortgage
Voice, and thank you for listening. We have a long list of great
people to come on the show.We really do, and we've been doing

(43:09):
it for a number of years.The expert in the reverse mortgage side of
the business is only one person isNina Penny, and she joins us once
again. Nina, how are you. I'm doing great, Jeff, thanks
for having me. Thank you verymuch for coming on the show. Okay,
reverse mortgages, there's age limitations,there's amount of money that you can

(43:30):
take out of the property. Butgive us some of the just general benefits
that somebody's going to get if theyget a reverse mortgage, and try to
dispel some of those horrible things thatthey used to say about them that aren't
true anymore. Oh that's a lotright there, right, I know.
So basically, the reverse mortgage asof that we have today is really not

(43:52):
the reverse mortgage of our parents.It is not that loan anymore. Since
Ronald Er again President Reagan was inoffice, he really made these reverse mortgage
is a lot more senior friendly.Basically, today, a reverse mortgage is
simply an fah loan. You're notobligated to make payments on can if you

(44:13):
want, We're not obligated to doso. Right now, what we're seeing
in the market, a lot ofpeople are liking a reverse mortgage because even
though the interest rates are higher,if they take out a reverse mortgage and
they don't need the funds today,every reverse mortgage has to help adjustable rates,

(44:34):
have line of credit, and thatline of credit increases the amount of
money that they can tap into.So if the interest rate right now is
seven percent, that growth rate isgoing to be about seven percent as well.
So okay, So inter reverse mortgageitself, there are a couple of
ways that you can tap into theequity that's in your house now. A
lot of seniors own their own houseoutright, which is a good thing,

(44:57):
which means that they have at leastfifty percent of the value of their home
might be available to tap into atwhatever way you said, you said it
one way. It can be akind of like a heelock and the other
way it's a lump sum. Explainthe difference. Well, okay, So
on the adjustable rate, how youtake your money, as told you up
to you. If it's free andclear, you can take the money a

(45:22):
summer closing and leave them in aline of credit. You can take it
kind of as an annuity payment,you know, payment. You can take
a specific amount of money for aspecific amount of time. Now on a
fixed rate, it's a lump sumat the time of closing. I see
okay, and tell you want touse it? Is there a you know

(45:45):
me, I live in a veryexpensive town. In my house over the
last time four or five years hasreally gone up in value. Now we
paid off our mortgage about eight ornine years ago. So all of that
amount of money that is just reallyI'm I'm property rich but cash poor.
As a lot of older people aretapping into that man, how much money

(46:06):
can you take out as much asyou can or is there a limited Tell
me about that one. Okay.So a reverse mortgage, how much you
would have access to is dependent uponnumber one the appraise value of the home
and number two the age of theyoungest borrower. We want to make sure
that all numbers are based on theyounger person living at the home because we

(46:30):
want to make sure that if somethingshould happen to the eldest borrower that they're
still protected. So we're not onehundred percent financing. What we would have
to do is run numbers to tellyou exactly what you would have access to.
Let's just put this way, theolder you are, the more money

(46:53):
you would get, because we haveto use some number as a threshold,
so we use the age of onehundred. Okay, okay, It doesn't
mean at age one hundred we're goingto come and tell you you need to
leave. It's just a number thatyou know for the threshold because we need
a date. Right, So thecloser you are to your one hundredth birthday,

(47:15):
the more money you would get,and the younger you are, we
would expect that you would live longer, so you make it a little bit
less money. I see. Soit's a bit of a sliding scale,
but certainly you're going to tap intoa large portion of what you have in
equity in the house to do kindof whatever you want to do with it.
Right, you can absolutely, youknow, help somebody else buy a

(47:35):
home, or you could keep itin the bank or whatever it is.
You could buy some more some property, yeah, absolutely, or you know,
you can just keep it there.A lot of people don't particularly have
long term care. And even mybrother said that he had long term care
for many, many years. Itkept on going up and he just could
didn't want to do it anymore.So what you can do is the younger

(47:59):
you, you take out the reversemortgage, leave the money there, let
the line of credit grow with thesehigh interest rates, it's going to do
best for you. And then whenyou need long term care gifts, what
you can tap into that money.Yeah, that's a pretty good idea.
Now, what you're talking about isyou take a lump sum out but leave
it in there, or you justdo right now, let's say you know

(48:21):
you'd have access to you know,let's say you know, five hundred thousands,
right, whatever the number is,and let's say you just don't use
it. You want to put thatmoney away for ten fifteen years from now,
Well, you let that money growfor ten or fifteen years, it's
going to turn into quite a bitof change, right, you know,
it can always my numbers for youto show you what the line of credit

(48:43):
would do. I love that lineof credit. It's very, very,
very desirable. And are you lockedinto that rate too, or at least
on the high end. No,the rate will adjust, Okay, Unfortunately,
it's an adjustable rate. Right whenyou interest rates are high, if
you're not taking out money, you'rejust opening up that line of credit.

(49:04):
Guess what, you're not occruring interestso much? Right, but your line
of credit growth rate is very high. What's what's the line of credit growth
rate? What does that mean?Well, whatever money you don't use on
the adjustment rate sits in the lineof credit kind of like a heue lock,
so seek it's there for you.However, the amount every month that

(49:28):
you can tap into increases. Isee, I see. So right now
interest rates to seven percent, yourline of credit would be seven percent.
So if you can almost imagine havingfive hundred thousand dollars sitting in an account
you can have access to, butwhen you're not touching it, the amount
you can access continues to grow.And right now it's seven percent seven percent

(49:52):
a year. Agos is that sayingseven percent on the balance every month?
Just as this? Well yeah,wow, that's really impressive. That's really
impressive. Now a future date,let's say rates go down, how can
someone refinance what they have and adjustableinto something more of a fix you would
you then have to go for alump sum payout. Yes, if you

(50:13):
were to switch into the fixed rate, it would be a lump sum payout.
Oh excellent. Remember you know onthe adjust for rates, when the
interest rates go down, your ratewill go down, right, And if
you have a fixed rate, ifinterest rates go down, you have to
refinance to come out of it.Right. Okay, Well, you know

(50:34):
you have a lot of different greatoptions here. I know that you also
do purchase reverses, right, yes, which a lot of people don't understand.
Just we have about a minute left. If you can quickly just tell
us what that is. Sure,based upon your age, will run the
calculation. So let's say you buya house for one hundred a million dollars,
maybe you have to come in withyou know, let's say six hundred

(50:57):
thousand. We're going to give youa loan for four hundred thousand. Okay,
that's it. It's all the samebenefits as if you just paid cash.
You'll pay taxes, insurance on yourown and the loan that we gave
you will have a little kitty ordeferred interest until the time you sell a
home or you pass right and thenthe loan is due. Wow, that's

(51:22):
a lot info right there in aboutten minutes. Thanks Nina for doing that
really well. I say that,hey, y'all, let people know how
they might be able to get intouch with you. This is a great
product. I know I was actingas if I was Ania phyte knew nothing,
but that's what a lot of peopledo. They don't know what reverse
is, so acting like that isgood. And the thing is, Jeff,

(51:43):
we got to give people information.If we give people information, then
you can make a decision right rightnow. That's what the show's about.
And I do appreciate that. Letthem know how they can get in touch
with you, if you would,You can definitely call it. Tax me
at four to eight zero six threefive two four one oh or email me
at n H P E N NY Are you there? We lost Nina?

(52:13):
How is that possible? She's justabout to give us the email addressing.
Oh do you have me? Now? Yeah? I got you?
Now go ahead, Okay, Soemail is n h P E N n
y at m f N dot comand my phone or text is four eight
oh six three five two four oneoh Nina. Thank you very much,

(52:36):
always love having you on. Yeah, Okay, that's hey Nina Penny from
uh you with Malibu Funding. Yes, i am Nina Penny at Malibu Funding.
I'm Jeff Barton, your voice inthe mortgage industry. We'll see you
next time. Thank you. You'relistening to the Mortgage Voice with Jeff Barton.
For more on today's topic, orvisit www dot Melibu Funding dot net.

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six point five FM, the stationthat leaves no listeners behind NBC News Radio.
I'm Lisa Carton. Both the Bidenand Trump campaigns are agreeing to the
new rules for the first presidential debate, CNN announced today. Both candidates agree
to appear at a uniform podium withtheir positions determined by a coin flip.
Microphones will be turned off during theninety minute debate except when it's each candidate's

(58:14):
turn to speak. There will alsobe no studio audience. Jake Tapper and
Dana Bash will host the debate,which will be broadcast by CNN on June
twenty seventh in Atlanta. President Bidenis criticizing the conservative majority Supreme Court at
a fundraiser in Los Angeles Saturday,the President said the court was out of
step. The Supreme Court has neverbeen as out of kilder as it is

(58:37):
today. Biden also warned that ifformer President Trump is elected, he would
appoint more justices flying flags upside down, a reference to conservative Justice Samuel Alito,
who's been embroiled in controversy over politicalflags flown at his home. The
comments were made at a star studdedfundraiser featuring former President Obama, as well
as various A list celebrities, includingGeorge Clooney and Julia Roberts. Biden's campaign

(59:01):
says the event raised a record breakingthirty million dollars from Democratic donors. A
shooting at a Juneteenth celebration in roundRock, Texas, has left two people
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who were killed were bystanders and werenot part of what led to the shooting.

(59:24):
And we're here to celebrate Juneteenth.And the unfortunate part is these folks
could care less about someone's life andtook someone's life on a day we're here
to celebrate community. The shooting haven'tat Old Settlers Park in Round Rock,
about twenty miles north of Austin.The suspect or suspects are still being sought.
Today is Father's Day and Americans areexpected to spend about twenty two billion

(59:46):
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