KCAA: The Mortgage Voice with Jeff Barton (Sun, 23 Jun, 2024)

KCAA: The Mortgage Voice with Jeff Barton on Sun, 23 Jun, 2024

Episode Transcript

(00:00):
Personal antidotes and the latest industry newsto keep you and the loop now to
provide you with insights and help younavigate the consistently changing world of real estate
lending. Here is your host forthe Mortgage Voice, Jeff Barton. Welcome
back, everybody on Jeff Barton,your voice in the mortgage industry. Thanks
very much for tuning into the showlistening to us. We bring to you

(00:23):
the information of the day, andtoday is chuck full of it. At
least this week has been. Wehave the FED meeting as well as the
CPI data that has come in.But before we get to any of that,
Jeff Barton, The Mortgage Voice ison YouTube. YouTube is our home
away from KCAA, our radio stationthat we broadcast in the Inland Empire CASEAA.

(00:44):
We've been on that station, Idon't know eight nine years. We
love what they do. They bringus to you with the ie San Bernardino
and Riverside counties, and as youall know, out there in those particular
areas, getting mortgage information that youcan rely on is difficult. You either
got to know an uncle, yougot to know a friend, You gotta
know somebody who is recommended to you. But here it's unbiased. I'm just

(01:07):
gonna give you what I think.And I've been in the business thirty years
plus, so it's not gospel,but it is close to what I think
today is about, which is tryingto give you accurate information that you can
use and act upon, and thatis in itself good enough for most people.
Take what it is, go outand find yourself a terrific mortgage broker

(01:27):
or a real estate agent or both, and then go house hunting. There
is some good news in the househunting world anyway. Again, I'm Jeff
Barton. This is the mortgage voicein the house hunting world. Yes,
we do have an inventory that isup. It's been up about the last
five months in a row after beingyou know, being less and less each

(01:48):
month for the previous I don't know, seventeen months. Now we got a
long way to go to catch upto where we were in twenty nineteen pre
pandemic. Reason is is just becausethat pandemic. I'm telling you, it's
set the real estate, the rentalmarket as well as the purchase market on
its head. We had such lowrates that everybody bought. Nobody wants to

(02:09):
move now because he'd be crazy.They call that the lock in rate and
the lock in problem. We usedto get a lot of different buyers and
sellers in the marketplace. We justwant to move. They wanted a bigger
house, or they wanted a smallerhouse, or they wanted to move just
because it was time to move,or they got old and they wanted to

(02:30):
downsize, or they wanted to upsizebecause they got more kids. There's many
reasons why in the market. Priorto yeah, we had a lot more
movement, a lot more housing onthe market, and therefore prices weren't as
high as they are. But asrentals became what they became in distant cities,
when people could work from home orhad to work from home, we

(02:52):
saw a trend developed which was inflationaryspiraling of real estate costs. And those
costs are today continually reflected not becauseof the pandemic or people moving away from
the inner city, because most peoplemove back, but because less houses were
built. Now we try in theindustry to highlight that to people, to

(03:15):
let them know that, hey,you know what, there is probably a
million less houses per year being builtthan should be being built. We probably
have a demand of you know,a good few million, if not ten
million deep i e. People Supplydemand being what it is. If you
want something, you want to payfor it. You'll pay more than what

(03:35):
it's actually worth in order to getit. That is the way it works.
Well. Right now, we havea situation whereby housing prices are so
high, we're getting more houses stayingon the market for longer. We're even
getting a small percentage twenty five thirtypercent of houses on the market actually in
price reductions. But it's a deceivingterm price reduction. What does that mean?

(03:58):
You overpriced it by thirty percent,dropped the price by fifteen so that
means it's still over priced by fifteenpercent. That's what's happening in a lot
of areas. But again, asI said, this is what's happening both
here in southern California and nationally.So this is a problem that exists all
over the place. Okay, let'sget right to it. As I said,
I'm Jeff Bardon mortgage voice. Herewe go. Thirty year fix rate

(04:21):
six point nine eight percent, fifteenyears at six point four zero. Faha
is at six point four to two, the jumbo is at seven point twenty
five, and the VA Lonus atsix point four five, the two years
at four point seven four eight,and the ten years at four point three
zero eight. Yes, if youare listening to me week after week,

(04:41):
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 ratesdipped a little. As you see also
that the treasuries, the two andthe ten, there's still about a thirty
five basis points bread between the twoto the negative side, meaning the two

(05:03):
is yielding 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

(05:24):
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 onyour radio driving around on Saturday and Sunday
and listen to us. But Siriushas a great Bloomberg feed, and Bloomberg's

(05:47):
on your computer, so if youdo listen to it, you'll understand what
I'm talking about. They were talkingall about this as well, in how
the two and the ten mean nothinganymore. It's as if that particular pour
tend of the future just never existed. Now we'll have to see, but
there's no recession on the horizon.If anyone heard or listened to Jerome Pyle

(06:10):
talk about what's happening with the Fed, and again the Fed has remained Again,
I didn't even tell you the Fedhas remained the way they are.
They are going to keep higher forlonger five point twenty five to five point
seventy five four member banks to borrowfrom them. That's a benchmark interest rate
that obviously is going to show upin your credit card payments, your house

(06:31):
not your house payments, but 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 toferret out for you and let you listen
to an explanation of why mortgage interestrates are what they are and why they

(06:55):
watched so closely what the FED does, And I said, it was all
about competition between I mean, whatwas being bought on the debt market,
whether it's mortgage backed securities or whetherit's the treasuries, those two have to
compete. They have to compete onprice, they have to compete on yield,
and when that, in effect iscontrolled by an arbitrary FED number of
five point twenty five to five pointseven five percent, you are not going

(07:18):
to see a lowering of the interestrate on the mortgages that much, although
they did come down some so aswe said, we're below seven percent again
for the thirty year fixed and thatis good or good enough for a lot
of people. Now Historically seven percentis pretty good interest rate. As I've
said many times on the show,eight point seventy five is my first loan

(07:39):
I got back in ninety I don'tknow, ninety something, and that was
I was very hard happy to getit at the time. Now, granted
there was much more inventory and theprice on houses wasn't as high as it
is today. The price on housesis really amazing. But let's get right
to a little bit of the CPI, that's the consumer Price Index, which
happened to come up at the sametime that the FED was meeting in the

(08:01):
Fed said that they were going toremain higher for longer. CPI inflation didn't
go up as much as people thoughtit would. Basically was flat. In
May it was three point three percent, and in I mean in April it
was three point three percent. InMay it was three point three percent.
Also, therefore, the market's stockmarket usually that's what we talk about,

(08:24):
was 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 alittle bit of a raise in the interest
rates, in the inflation rate inMarch and in April, stock market didn't
like it. But right now we'reseeing a long term trend of slowing ever

(08:46):
so slowly the inflation rate. Now, I have a few products here that
I wanted to just describe to you. Some prices going up, some prices
going down. In the up section, shelter. Shelter was the biggest what
they call the unsheltered in the shelterindex, whether it's rental or purchase.
Both of these particular items are aboutfifty to sixty percent of what the inflation

(09:11):
rate is. So as these pricescontinue to go up, that's a problem.
We need to see housing prices comedown, as I explained earlier,
unless we're building more. It's asupply and demand issue, and yes it's
not an easy thing to solve immediately. A couple other things auto insurances up,
restaurants are up, transportation and groceralso up. On the downside,

(09:33):
gas is coming down. Used cars, rental cars, airfares, hotels and
new cars as well are also comingdown in price. So there is some
good news in this inflation report.We need to see more of it so
we get the Fed to cut sowe'll see tangentially mortgage interest rates come down
to We have a jam Pack showon Jeff part and your Voice in the
mortgage Industry. We'll be right back. You're listening to the Mortgage Voice with

(09:56):
Jeff Parton. We'll be right backwith more than just a moment. For
questions or comments, send emails toinfo at Melbu Fundings dot net. Now
back to the Mortgage Boys with yourhost Jeff Barton. Welcome back, everybody.
I'm Jeff Barton, your voice inthe mortgage industry. Thanks very much
for tuning into the show listening tous on a weekly basis. We try

(10:18):
to bring you the best information thatyou can use on a daily We always
do that by keeping you in mind. You want to know where the houses
are, where the cheapness is,when interest rates are coming down? Is
my job gonna last forever? When'sinflation you're going to stop? Yeah,
there's a lot of stuff that wetouch on this show. Answers not so
much, but we certainly bring upgood quality discussion in all of these areas.

(10:41):
Joining us once again is Connie Hernandezfrom PMA to answer all of those
questions because I know she has theanswer. Connie, how are you?
Oh my gosh, thank you forthat amazing interest. I have all those
answers. Well, you know what, how about let's let's just work a
couple of them. Oh that youknow, we're in early part of the

(11:03):
summer or late spring, and wealways think that that time of year really
sets the tone for the rest ofthe year because you know, supply and
demand and housing prices and all thatpeople are either moving or they're not moving.
They're buying or they're not buying.Where does it stand out in Covina
and the Inland Empire. Well,you know, unfortunately, I'm sure that

(11:26):
real estate agents are seeing this everywhere. We still don't have enough inventory,
right, jess. Right, We'restill struggling to put our clients into homes.
But on the good side, wedo have We are busy on our
real estate division for real estate andthen obviously helps us with the loanside.

(11:46):
Sure, you know, I'm kindof been around for a little bit,
probably close to as long as youhave, and you didn't mention a number
though, all right, it's okay, well a little bit, yeah,
a little bit yep. Well,with that being said, you know,
we're we're looking at new opportunities.Obviously, we built our business on old

(12:09):
technology and handshakes and meetings and seminars, and I think now with the new
systems in place social media, wehave to really strongly look at those avenues.
I think door knocking is still okay, but it's just not the whole
answer anymore. We really have tobe a bit more innovative on how we

(12:30):
run our businesses. Obviously we wouldlove to have our business like it was,
what's four or five years ago,but sure that's not the case.
The interest rates haven't budged, sothat means we have to make some changes
on our side right right now.I think what you're saying makes a lot
of sense, especially in our business, especially with the lawsuit that you know,
NAR stumbled into and then all ofa sudden, a lot of buyers

(12:52):
agents are finding themselves in a completelynew field in terms of how they represent
clients or if they can even getpaid if they represent clients. So it's
a lot of changes there too.There is, and I think that it's
a very devastating situation. I mean, obviously those agreements have always been there,

(13:13):
it's just they haven't really been used. And because it's always been a
customary thing that you're a teenagent,you know that you're going to be marketing
to buyers agents and with that sharingthe compensation. But that that still,
in some situations I think will continue. I don't know for how long,

(13:35):
but it does put a sense ofan ease and I think for the agents
that are mainly representing buyers. Butreally that's going to put the buyers in
a very difficult situation because, asyou know, our job is a fudiciary
agent. We have to represent thesesellers if that's who we're in contract with,

(14:00):
and we have to also disclose ifwe're listing a property that our fiduciary
relationship first and foremost is to theseller. So where does that leave the
buyer As far as representations, that'skind of a scary thought that I think
maybe was not thought through. Ithink, like many things, if you

(14:22):
just put your head down and geta pillow and put it around your ears
and don't look around, all ofa sudden, the problem goes away.
I think for the most part,the issue 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

(14:43):
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

(15:03):
buyers that are struggling to you know, capture that American dream, right yep,
the home ownership dream. And they'reputting there, you know, for
better lacks of words, their savingstogether and maybe receive some help from mom,
dad, Grandma. I'm a member, and you know, putting that
down payment together, putting those closingcosts together. I mean, the DPAs

(15:26):
have their challenges, I believe.I mean, they're they're not for everyone,
right, But the thing is,if they're struggling to put those funds
together, how now are they goingto pay to have someone properly represent them.
I just don't see that happening.Oh, you're going to get low
ball offers. You're not going toget paid what you're worth. There's going

(15:48):
to be a two tier system inhow real estate agents are viewed. Oh,
you're a buyer's agent, so you'llwork for anything. I mean,
that's the mentality. I'm a seller'sagent. I'm going to get three three
and a half percent every time Iyou know, sell because the sellers,
the listing agents themselves have an expertiseand they do that's what they do now
like us, we do both.So we're kind of like, okay,

(16:11):
part of my business is not gonnado well because I never used the contract
and I always got paid. Andthe reason I always got paid is the
main pitch is I don't pay you. You don't pay me, the seller
pays me, and therefore you don'tneed a contract. That's a simple five
second don't worry about it. I'mgonna work for you. I'm gonna kick
butt and at the end of theday, it's gonna caution nothing. That's

(16:33):
a great sales pitch. I mean. Now I have to go completely the
opposite, saying, well, here'smy list of qualifications and why you should
be paying me three three and ahalf percent. I mean, come on,
that's and nobody addresses it. It'slike it doesn't even exist when you
talk about it. It's kind oflike being brushed under a rug, and
I really don't you know. Unfortunately, I haven't come across the situation where

(16:57):
the listnes have had compensation for theselling agent yet, but that may be
coming, maybe not. But regardless, the rule is there, right,
so we have to address you haveto do it now. It's not a
choice. It was an agreement notmade by me. I don't have a

(17:17):
union. This was made by anorganization that was trying to bail themselves out
of getting sued, and getting suedto the tune of one point four billion
dollars. I think they already haveto pay. Oh, come on,
you know that they were selling somebodyout and it happened to be the buyer's
agents. That's what happened. Becausethe seller's agents and the sellers agent's companies
that represent most sellers, that wasthe best way that they could figure out

(17:41):
how to deal with this, youknow. So in my opinion, it'll
it'll work out one day, butnot today, that's for sure. Maybe
not time, but maybe our nextgeneration hopefully, Yeah, maybe. And
I think there'll be some added serviceis that the buyer's agent should be able
and allowed to do, which won'tnecessarily have to you know, cut into

(18:06):
the bottom line of the seller,but at the same time make some money.
I mean menu of services, valueadded services, something like that.
Anyway, we have about two minutesleft. I wanted to get to a
couple of loan products that maybe you'reyou know, happy to talk about in
terms of what your business is gearedtowards. Well, right now, we're
actually doing a lot of D Sc R LOANSKA and not just for purchases,

(18:32):
although that actually has picked up quitea bit, but more for the
refits. We've actually had an inflowof business for the d D s c
R loans and those seem to workout really well. They're they're a bit
easier to tackle. Clients know thatthey're paying a bit higher interest rate for
them, but you know the factthat they don't have to provide a ton

(18:55):
of documentation is the big, youknow, the big reason why they go
forward with it. Plus you know, some cases they are doing cash out
reinvesting that money out there are theirproperties or other investment opportunities. So I
think right now our big focus ison the DSCR loans, although obviously we
still handle all the other products.We have a trickle of business coming in

(19:18):
for buyers that are still doing theSAHA, the conventional minimum seament loans,
but there seems to be a bigpush now in our office for doing more
commercial type loans. Yeah. Youknow what that's because it's it's treadless.
It's you know, like you say, less documentation. It's more about bottom
line, what's the down payment?You know, let's let's get into what

(19:41):
the rents are going to be sowe can figure out exactly where the gap
is and then fill that with whateverother information they might need. It's just
a simpler, easier way and lessliability, that's what I see. You're
correct, we need to say thatright. Hey, Connie, we're at
the end of it. Thanks forcoming on. Could you shout out a
way by people can and get intouch with you, especially if they need

(20:02):
someone with not only knowledge and experience, but who really does care about whether
you're going to get in the housethis year? Oh, I absolutely do.
Thank you, Jeff. Welcome.You can reach me where. Our
office is on the corner of theJello and Citrus in downtown copinat one oh
one North Citrus. Our office numbersix two six nine one eight two four

(20:22):
one nine. My direct number issix two six four two two to zero
one seven. I would love toanswer your questions and help you with your
lone needs or real estate needs.Excellent, Connie, thank you very much
for coming on the show. Ireally appreciate it. Thank you, Jeff,
you're welcome. That's Connie Hernandez fromPMA. I'm Jeff Bartner, your
voice in the mortgage industry. We'llbe right back you're listening to the Mortgage

(20:45):
Voice with Jeff Barton. We'll beright back with more and just a moment.
For questions or comments, send emailsto info at Melibu Fundings dot net.
Now back to the Mortgage Boys withyour host Jeff Barton. Welcome back
at everybody. I'm Jeff Barton,your voice in the mortgage industry. Thanks
very much for tuning into the show, listening to us as we bring to

(21:06):
you the best information out there inthe Inland Empire concerning mortgages in real estate
and ways by which you can getinto a house this summer. I know
the prices are high, I reallydo. 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 a goodthing. Fed mate, and inflation came

(21:26):
down a CPI, so there issome good news out there. Certainly,
we're trying to get through a veryvery hot summer. Joining us once again
from Nations Direct is one of ourbest 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 I appreciatethat. I'm great too, Thank you,

(21:49):
wonderful, wonderful. Okay, giveus 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 months inthe summer. Absolutely, you know,
it's kind of interesting. We areseeing a big uptick in submitted business despite

(22:12):
the raps you know, have beenkind of going up and down. We
saw a little bit of a dropthe past couple of days, and then
interesting enough, today the Fed spokethat they were making no changes and then
we got a worsening of price aboutan hour ago. But I'm telling you

(22:32):
there's a lot of people who finallyjust accepted the fact that the rates 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
trend or is that more Southern California. I think it's actually outside of Southern
California. I think it is.I think it's definitely national. I see

(22:53):
a lot of the submissions coming fromthe northeast and the northwest, Okay,
and in those geographical areas I thinkthat those homes are more affordable. We're
seeing a lot of government purchases alongwith a lot of just first time home
buyers that are taking advantage of somekind of you know, just benefits on

(23:18):
the government's low level price adjustments forfirst time home buyers whose average median income
is within one hundred and twenty percentof those dictated values. Okay, explain
that a little bit so people havea better understanding. Absolutely. So the
government came out and they said,based on the county, the census track

(23:41):
across the nation, they have puttogether a grid that says the average median
income for that census tract hypothetically onehundred thousand dollars. Okay, if you
are a first time home buyer andyou are within one hundred and twenty percent
of that one hundred thousand dollars ofincome, So if you make one hundred

(24:02):
and twenty thousand dollars or less,then we want to make the loan more
affordable. So we're going to reducethe adjustment to the rate for that new
first time home buyer on those parameters, which means at a low down payment
instead of you having an adjustment oftwo and a quarter, your max adjustment

(24:23):
will be one one and a halfpercent, which means your cost to take
out that loan is going to beless. Yeah, it's about fifteen hundred
to two thousand dollars in that rangeon one hundred thousand dollars property or something
like that. Anyway, that's that'svery good. And is this the type
of product that's being taken advantage ofin this national view? I absolutely think

(24:45):
so. I think that the bigthe big players like QUICKT and UWM and
US you know, middle size lenders, we are definitely taking advantage of that.
And Fanny and Freddy are also andpredominantly Fannier. They're giving first time
home buyer grants to the banks likethe Quickens and the Nation's directs. So

(25:06):
we're going to roll it out withinthe next sixty days where if you're a
first time home buyer and you aregetting a conventional Fanny loan, that you're
going to get the ability to havea two thousand dollars credit towards your closing
costs. And that's already been implementedacross the nation with the larger banks who
already have that in place. WithFanny and Freddy do they consider real Estate

(25:29):
Agent Commission closing costs. You know, that's still on the table. So
we are thinking it's not because it'spart of the real estate transaction. But
since that's going to be rolling outsooner than later, going to we're gonna
get more definition on that. Butwe don't think so we think that's going
to be separate aside. And Ido know that a lot of people have

(25:52):
been asking, well, if we'llthe lender be looking to roll in the
cost into the loan. So also, the real estate commission is what you're
saying, right, absolutely yes,So if if Fanny Freddy and the government
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

(26:15):
will be able to finance that intothe loan. Yeah, that's because it
is the only way really buyer's agentsgoing 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 AR,
So you're really on your own ifif you're a buyer's agent and you

(26:37):
really have no idea what to doand toarty to get paid. That was
one of the suggestions. But againit's got to be litigated. It's got
to be you know, you knowhow things take so far and so long
to get completed. Anyway, That'swhy I just trying to ask you to
see if that was part of thebanks policy. Uh what else? What's
what's happening in terms of refinance.Refinance is dead, right, I mean,

(26:59):
nobody doing that, So what's there? So, yes, no one's
refinancing their first trusteed. However,we see a ton of second mortgages right
now. So I'm doing a lotof second trustees in Southern California, full
second trustees, not he locks oranything like that. Correct, full second
trustee, fully amortized over up tothirty years and they're closed in so they're

(27:23):
not he locked. And I'm seeingthose more in Southern California because of the
loan amounts because we have a minimumloan amount requirement. What one hundred and
fifty one hundred thousand, how muchis it? Well, actually it's seventy
five thousands, but you're not goingto get paid at seventy five thousand,
So it's really difficult for the brokersto even commission under one hundred and fifty

(27:44):
thousand. Okay, I understand thatyou mentioned Rocket and you mentioned UWM.
The big players. How are theylasting in this thing? They must be
getting killed. Well, you know, it's interesting. I think that they
as far as refise, yes,but you know, they have so many
different incentives to offer the new homebuyers that when you when I was reviewing

(28:07):
Scottsman's Guide and I was looking atthe top loan officers in twenty twenty three,
along with the current ones eighty percentof California's business, it's actually eighty
eight percent of what we see isgoing to the quickens in the Rocket.
Just because of innovation speed. Theytake on a lot of the costs,

(28:29):
you know, or in verifications ofemployment, condo questionnaires, things that are
a lot of costs to the borrower. And as you can see now that
CFP has come in and said,hey, we want to investigate now on
how we can lower fees for theconsumer. So they're looking to crack down
on that. But because these biggerentities have the ability to absorb those costs.

(28:52):
They also have an inside more excuseme, inside insurance company or am
I, so their mi I islower, so that attracts more buyers because
their mortgage insurance can be anywhere fromthirty dollars to one hundred dollars less than
maybe sending that loan to myself,where we use the top players in mortgage

(29:15):
insurance like MGIC in essence, butour rate is just a tad bit higher.
Yeah, you know what, Ijust don't see how a company like
that, these are just the biggestcountries companies in the country, how they
can stay afloat or how they canyou know, last through a downturn time.
They must be losing per loan haveto be. I mean all the
smaller companies, you know, everybody'streading water to wait for the next REFI

(29:37):
boom. Yeah, I mean theydefinitely took a hit because I know that,
you know, they've you know,and they're trying to pick up on
the non qualified mortgage sector of loans. So they are trying to do that.
But they have scaled back, butthey still are they still are taking
the larger piece of the pie nationwide. Right, Okay, we have about

(30:00):
a minute left give me your idea. Is that what we can expect this
summer both in rate and product fromNations? Well, I think that our
race right now, our talk onloan sister, So you're going to see
Nations being very aggressive and price nationwhy the raths are going to stay stable.
I don't see an increase or adecrease of anything significant until after the
election in first quarter of next year. Yep. So and you know we're

(30:25):
just continually being aggressive getting those loansclosed and getting to the finish line as
fast as we can. Excellent.Thank you, April. Thanks once again.
I love having you on the show. It's easy. Plus the knowledge
is great and I really appreciate that. Would you allow, not allow,
but to shout out what your phonenumber is so people can get ahold of
you if they need you. Absolutely, April Lopez eight one eight three nine,

(30:48):
eight one two seven to two.Excellent And that's April Lopez from Nations
Direct. April, thanks very muchfor coming on the show. Thanks for
having me. Jeff all right,bye bye, I'm Jeff bart your voice
in the Mortgage be right back.You're listening to the Mortgage Boys with Jeff
Barton. We'll be right back withmore and just a moment. For questions
or comments, send emails to infoat Melbu Fundings dot net. Now back

(31:12):
to the Mortgage Boys with your hostJeff Barton. Welcome back, everybody.
I'm Jeff Partner, your voice inthe mortgage industry. Thanks very much for
tuning into the show, for listeningto us. If you listen each and
every week, you'll realize that veryquickly. Not only do we bring up
topics that are important to decide whetheryou're going to buy and sell real estate,

(31:33):
but it's also at the heart ofwhat is happening in our industry.
There's so many changes it just inthe real estate side. We talked about
the commissions and who's getting paid andwhy there's no support for certain types of
transactions. On the lending side,of course, are people getting used to
the seven percent plus or are theyinto just getting into the property for whatever

(31:55):
it is that they can do andthen worry about the rate later. I
think there's a lot to be saidfor both, but I don't I'm not
the guy with the answers come on. The guy with the answers is Charles
Gisco, and he comes on theshow a lot he talks about what's happening
in the lending world, and hejoins us again once again to help us
sort through it. Charles, howare you. I'm doing great, Jeff,
thanks for having me today, myfriend excellent. The Boston Celtics of

(32:17):
the lending world has joined us,and we really do you like that?
Throw that in there a little bit. I love how you tossed that and
the boy take the Boston got it? Really that up? Folks? You
know what, and I know myaudience here in southern California say, but
it in Riverside Counties. I knowyou're all Lakers friends, and I'm sorry,

(32:38):
but they're just I don't know whatthey're doing with their coach. I
don't know what they're doing with theirplayers. But they still got a team
that you watch because that's how itworks. But speaking of building team building
or building building, uh, whatkind of loans you're doing? You're still
into any kind of DSCR? Isit mostly commercial? You're putting deals together

(32:59):
all the time. Give us asynopsis of what's happening in your lending world.
Well, Jeff, we have thefortunate I have. I have been
fortunate to working with Malavel Funding andUnited Citty Financial and different companies to be
able to do a different and aplethora of loans besides traditional lending. We
office obviously you can offer offer commercialmending. The traditional lending has been slow,

(33:22):
but but it's been steady, uhand interest rates have been high until
today right when they and the datareports hit, the inflation shows is down
and guess what the mortgage rates are. And so now you know you have
some loans that are under seven percent, which is which is probably going to
create a buzz in the market.The one thing that we have steadily done

(33:45):
on our side is to make surewe find loan products that will be able
to help individuals regardless of our ratesare up, rates are down. We're
looking for non QM loans that takethe place of traditional lending, that have
a little bit higher interest rate,but there's value added services to the back
of these loans, meaning arms ormeaning longer amortization terms forty years now unlessen

(34:08):
the monthly payment, and that willkeep people steady and keep them focused and
excited about the industry at this point. And so that's the type of loans
that we've been doing. But ofcourse we do do traditional loans as well
as commercial loans, no dock loans, bank statement loans, All these types
of loans are out there in thelending world for individuals who want to take

(34:31):
advantage of the market. Stall.You know, you talked about being a
little bit of a not a fixer, but somebody who could make things happen.
IU have solutions for a lot ofdifficult customers and a lot of difficult
loans. However, some people dothink that, as you said earlier,
that there are miracle workers out therethat they can just poof all of a

(34:52):
sudden, you got the money,make the deal, and you can't either
prove credit or you can't approve,you know, any way that you can
pay the loan back. What aresome of the ways that you can help
a buyer understand that there are responsibilitiesthat you can take care of, but
there's certainly many that the buyer hasto do themselves. Well, I was

(35:13):
joking earlier, but I really meanthis, folks. Under the tutelage of
master Yoder Jeff Malibu Funding, Ilearned very many skill sets. The one
good think about Malibu Funding and Jeffin particular, was Jeff kind of had
us all be Swiss Army knifs.When I say that is you're going to
have to deal with different individuals,different problems, different hurdles that you're going

(35:37):
to have to cross at all times. And having a lender or a loan
officer or an originator in your cornerthat has dealt with all these different things
is super helpful. The one thingthat we had the ability to have Malibu
funding and at United Security financially isspeak directly to underwriters. A lot of
times, what we would create wasan environment that allowed us to take the

(36:00):
situation or issue that other people mayhave had or they think they're going to
run into, introduce those upfront.We can cross those hurdles and know that
the hardest part of the transaction wewere able to bridge across. So now
everything else should be business as usualand get that situation done. Blessed to
have those relationships, Blessed to workwith different lenders that offered us that opportunity,

(36:24):
and so a lot of times whatI tell our clients is because of
our relationships, because of our youknow, our history, our resume,
our experience that we have, we'reable to talk to individuals, talk to
different underwriters or processors and get someanswers to some questions ahead of time,
so that we know that we hada loan that we could work on.

(36:45):
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 preparation isbest upfront so that later on in the
loan when we were cross hurdles andbridges, we can get past them.
Yeah, and what you're talking aboutis, hey, if there's maybe a

(37:06):
problem with how we present this loan, we got to have an answer.
Now. It doesn't mean that thereis something wrong with the loan. It
just means that as you present theinformation to the lender that those issues that
might come up. Maybe they needanother years of bank statements, maybe they
need some other proof of income,maybe they need you to pay off some
debt in order to get your creditscore up. All of these things are

(37:28):
things you talk about up front.That's what you're talking about, absolutely,
Jeff. I always tell the clientsbecause I create a relationship and I want
to create a rapport or they canspeak directly to me and transparently to me.
As I can to them. Don'ttell me what you think I want
to hear, right, tell meall the stuff I need to hear,
because I'm licensed to paint the pictureand story. So please give me the

(37:50):
information and I'll make sure that Icreate the workaround and so that the different
professionals that I'm dealing with will understandexactly what the issues are so we can
tackle them. That way, wedon't get bombarded at the end towards the
end of a loan, when everybody'ssuper anxious and the pressure's on, and
all of a sudden, now thedeal blows up. But no, we
brought the bomb dog out ahead andthe robot took it apart, and now

(38:15):
we're good, so we can passthrough. Now that all that's true.
And what I was thinking about priorto saying that was the lenders that we
talked to are the people that we'veknown also, and placing your loan in
a certain lender's hands on the brokerageside is a way by which problem solving
gets easier, just because not thatone lender is easier than another, but

(38:37):
if you've got a certain type ofloan that a bank or a lender really
identity does really well, that's whoyou want to go to. If you
want speed, you go to acertain type of lender as well, if
you go to the rockets of theuwims, but you have to have a
loan submitted in a certain way becauseyou know exactly what they need in order

(38:58):
to get the speed you need.So that's really kind of important that you
as the loan officer have that informationfor the borrower as well. That's the
important aspect of being a loan officerand an originator right. Membership has its
privileges right right, certain banks thatwe deliver so many loans to and have
been for years Jeff and the teamfor many of years, is that we

(39:21):
understand we're responsible, we're accountable,and we're trustworthy. And at the end
of the day, they know whenwe bring up out to the table,
we're going to know the ins andout to that file, so we can
all surgically pinpoint where the problem isgoing to be and we can resolve it.
Because understand something in this industry,problems happen all the time. It's
how quickly and effectively we resolve them. As a loan originators that get these

(39:44):
deals done and across the finish line. Yeah, I know all that is
so true. I mean I seepeople who are struggling and I go,
what's the problem. Well, youknow, we were supposed to close by
X date and looks like we mightnot be able to are so oh okay,
I understand, but you hear that, especially in a market like this
where there's so many people competing forhouses, you have to have an ability
to be able to not only moveand solve problems, but to be able

(40:07):
to identify those things upfront and tobe able to compete with other loans that
are out there competing for that onepiece of property that you want to buy.
Jeff is absolutely correct. I loveto talk about it. Basketball has
me a number of wonderful different thingsand taking me many places around this country
and around this world. But theone thing that has done best for me,

(40:29):
it has taught me how to problemsolve on the fly, and I'm
grateful for it. And it allcomes in handy from working loans out with
our clients. Excellent, Charles,we are at the end of it.
Thank you very much once again forcoming on the show. Love having you
on, and we'll have to havea party once the Celtics wrap this thing
up in a couple of games.Oh. I told everyone Jeff, we'll

(40:51):
find a way to add the Celticssituation at all times. And I love
them, and he is right andpleasure to have me. Thanks for having
me on Jacks. It's always apleasure, no problem. Shout out your
phone number for people if you would, I sure will. You can reach
me at seven two five five sevenseven eight seven sixty one at seven two
five five seven seven eight seven sixtyone or C. Giscomb at USF Wholesale

(41:15):
dot net. That is C.Giscomb at Uncle Sam Frank 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 United Security
Financial. I'm Jeff Partner, yourvoice in the mortgage industry. We'll be
right back. You're listening to theMortgage Voice with Jeff Barton. We'll be

(41:35):
right back with more and just amoment for questions or comments, send emails
to info at melbu funding dot net. Now back to the Mortgage Boys with
your host Jeff Barton. Welcome back, everybody. I'm Jeff Partner voice in
the mortgage industry. Thanks very muchfor tuning in listening to the show as
we come to you each and everyweek. Casey AA is the radio station
that brings us to you. Wealso are on a number of different podcasts

(42:00):
and those podcasts there. Do youhave a list of those, I assure
you. Jeff It's Apple Podcast,Google Podcasts, Spotify, Speakers, Stitcher,
iHeartMedia, Odyssey, YouTube, podclipsdot IOA of course, the Mortgage
Voice dot com excellent. Morgvoice dotcom, by the way, is our
website. If you go there youcan see and hear a lot of the
guests to come on the show andaway by which you can contact them directly.

(42:21):
Podclips dot io I bet them everyweek. Why because they are great
and you can go there for yourcentral podcasting needs. There's all kinds of
different areas within the podcast group.I'm one of them, of course,
Jeff barton The Mortgage Voice, andthere's uh, let's see, there's lifestyle,
there's sports, there's a d R, there's a what are some of
the other programs on there, Darryl. They get sports that they have finance

(42:44):
and yeah, you mentioned lifestyle andarbitration. The ADR is oh yeah,
the arbitration. You know what,in our business sometimes it comes down to
being able to find somebody to bridgea gap between your side and the other
side, other than hiring lawyers andsuing each other. Well, these guys
at ADR do that and they areon pot clip side. I OW a
great place to go of course,health health. Oh absolutely. Anyway,

(43:07):
I'm Jeff Barton. This is theMortgage Voice, and thank you for listening.
We have a long list of greatpeople to come on the show.
We really do, and we've beendoing it for a number of years.
The expert in the reverse mortgage sideof the business is only one person is
Nina Penny, and she joins usonce again. Uh, Nina, how
are you. I'm doing great,Jeff, thanks for having me. Thank

(43:28):
you very much for coming on theshow. Okay, reverse mortgages, there's
age limitations, there's amount of moneythat you can take out of the property.
But give us some of the justgeneral benefits that somebody's gonna get if
they get a reverse mortgage, andtry to dispel some of those horrible things
that they used to say about themthat aren't true anymore. Oh, that's

(43:49):
that's a lot right there, rightI know. So basically, the reverse
mortgage as of that we have todayis really not the reverse mortgage of our
parents. It is not that loananymore. Since Ronald Reagan, President Reagan
was in office, he really madethese reverse mortgage is a lot more senior
friendly. Basically, today, areverse mortgage is simply an fah loan.

(44:15):
You're not obligated to make payments oncan if you want, We're not obligated
to do so. Right now,what we're seeing in the market, a
lot of people are liking a reversemortgage because even though the interest rates are
higher, if they take out areverse mortgage and they don't need the funds
today, every reverse mortgage has welladjustment rates, have line of credit,

(44:40):
and that line of credit increases theamount of money that they can tap into.
So if the interest rate right nowis seven percent, that growth rate
is going to be about seven percentas well. So okay, So inter
reverse mortgage itself, there are acouple of ways that you can tap into
the equity that's in your house now. A lot of seniors own their own

(45:00):
house outright, which is a goodthing, which means that they have at
least fifty percent of the value oftheir home might be available to tap into
at whatever way you said. Yousaid it one way it can be a
kind of like a heelock, andthe other way it's a lump sum.
Explain the difference. Well, okay, So on the adjustable rate, how

(45:21):
you take your money? As toldyou up to you. If it's free
and clear, you can take themoney a sum are closing and least some
in a line of credit. Youcan take it kind of as an annuity
payment, you know, payment,you can take a specific amount of money
for a specific amount of time.Now on the fixed rate, it's a

(45:44):
lump sum at the time of closing. I see, okay, and now
you want to use it? Isthere a you know me, I live
in a very expensive town. Inmy house over the last time four or
five years has really gone up invalue. Now we paid off our mortgage
about eight or nine years ago.So all of that amount of money that
is just really I'm property rich butcash poor. As a lot of older

(46:07):
people are tapping into that. Man, how much money can you take out
as much as you can or isthere a limit to tell me about that
one? Okay, So a reversemortgage, how much you would have access
to is dependent upon number one,the appraise value of the home, and
number two is the age of theyoungest barrower. We want to make sure

(46:30):
that all numbers are based on theyounger person living on at the home because
we want to make sure that ifsomething should happen to the eldest barrower that
they're still protected. So we're notone hundred percent financing. What we would
have to do is run numbers totell you exactly what you would have access

(46:53):
to. Let's just put this way, the older you are, the more
money you would get, because wehave to use some number as a threshold,
so we use the age of onehundred. Okay, okay. It
doesn't mean at age one hundred we'regoing to come and tell you you need
to leave. It's just a numberthat you know for the threshold because we

(47:15):
need a date. Right, Sothe closer you are to your one hundredth
birthday, the more money you wouldget, and the younger you are,
we would expect that you would livelonger, so you may get a little
bit less money. I see.So it'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 dokind of whatever you want to do with

(47:37):
it. Right, you can absolutely, you know, help somebody else buy
a home, or you could keepit in the bank or whatever it is.
You could buy some more some property, yeah, absolutely, or you
know, you can just keep itthere. A lot of people don't particularly
have long term care. And evenmy brother said that he had long term
care for many, many years.It kept on going up and he just

(48:00):
could didn't want to do it anymore. So what you can do is,
the younger you are, you takeout the reverse mortgage, leave the money
there, let the line of creditgrow with these high interest rates, it's
going to do best for you.And then when you need long term care,
guess what you can tap into thatmoney. Yeah, that's a pretty
good idea. Now, what you'retalking about is you take a lump sum

(48:22):
out but leave it in there,or you just do right now, let's
say you know you'd have access toyou know, let's say you know,
five hundred thousands, right, whateverthe number is, and let's say you
just don't use it. You wantto put that money away for ten fifteen
years from now, Well, youlet that money grow for ten or fifteen
years, it's going to turn intoquite a bit of change, right,

(48:45):
you know, it's always my numbersfor you to show you what the line
of credit would do. I lovethat line of credit. It's very,
very, very desirable. Hen areyou locked into that rate too, or
at least on the high end,No, the rage will Unfortunately it's an
adjustable rate. Right when the interestrates are high, if you're not taking

(49:06):
out money, you're just opening upthat line of credit. Guess what,
You're not occurring interest so much,right, but your line of credit growth
rate is very high. What's what'sthe line of credit growth rate? What
does that mean? Well, whatevermoney don't use on the adjustable rate sits
in the line of credit, kindof like a heelock, so to speak.

(49:29):
It's there for you. However,the amount every month that you can
tap into increases. I see,I see. So right now interest rates
to seven percent, your line ofcredit would be seven percent. So if
you can almost imagine having five hundredthousand dollars sitting in an account you can

(49:49):
have access to, but when you'renot touching it, the amount you can
access continues to grow, and rightnow it's seven percent. Seven percent a
year. It grows seven percent onthe balance every month. Just as this.
Wow yeah, wow, really impressive. That's really impressive. Now a
future date, let's say rates godown, how can someone refinance what they

(50:10):
have and adjustable into something more ofa fixed Would you then have to go
for a lump sum payout? Yes, if we're to switch into the fixed
rate, it would be a lumpsum payout. Oh excellently. Remember you
know, on the adjustable rates,when the interest rates go down, your
rate will go down. Right,And if you have a fix rate,

(50:31):
if interest rates go down, youhave to refinance to come out of it,
right. Okay, Well, youknow you have a lot of different
great options here. I know thatyou also do purchase reverses, right,
which a lot of people don't understand. Just we have about a minute left.
If you can quickly just tell uswhat that is. Sure, based

(50:52):
upon your age, we'll run thecalculation. So let's say you buy a
house for one hundred a million dollars, maybe you have to come in with
you know, let's say six hundredthousand. We're going to give you a
loan for four hundred thousand. Okay, that's it. It's all the same
benefits as if you just pay cash. You'll pay taxes, insurance on your
own and the loan that we gaveyou will have a little kitty or deferred

(51:16):
interest until the time you sell ahome or you pass right and then the
loan is due. Wow, that'sa lot info right there in about ten
minutes. Thanks Nina for doing that. Really, why I say that?
Hey, y'all, let people knowhow they might be able to get in
touch with you. This is agreat product. I know I was acting

(51:37):
as if I was aniaphyte knew nothing, but that's what a lot of people
do. They don't know what reverseis, so acting like that is good.
And the thing is, Jeff,we've got to give people information.
If we give people information, thenyou can make a decision right right now.
That's what the show's about, andI do appreciate that. Let them
know how they can get in touchwith you. If you would, you

(51:59):
can definitely call it. Text meat four eight oh six three five two
four one oh or email me atn h P E N N Y.
Are you there? We lost Nina? How is that possible? She was

(52:21):
just about to give us an emailaddressing, oh do you have me now,
Yeah, I got you now goahead. Okay. So email is
n h P E n n Yat MSN dot com and my phone or
text is four eight oh six threefive two four one oh Nina. Thank
you very much, always love havingyou on. Jeff. Okay, that's

(52:44):
hey, Nina Penny from uh youwith Malibu Funding. Yes, I am
Nina Penny at Malibu Funding. I'mJeff Barton, your voice in the mortgage
industry. We'll see you next time. Thank you. You're listening to the
Mortgage Voice with Jeff Barton. Formore on today's topic, business www do
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(58:05):
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Biden over his latest action allowing certainundocumented immigrants married to US citizens to stay
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