The Money Store and HomEq set to pay $54.8 Million for unnecessary late fees
A Manhattan federal jury reached a decision on December 19th, 2014, on a case that has been a longstanding suit by borrowers whose mortgages were owned or serviced by HomEq. Plaintiff Joseph Mazzei accused The Money Store and HomeEq of charging unnecessary late fees after the lenders had accelerated homeowner's mortgage loans. They also claimed the late fees were prohibited under the terms of the loan agreement and voided state laws.
The plaintiff, and other homeowners, hope that this case will shred light on banks trying to gain any advantage on their borrowers and force all banks to become transparent in all aspects of their company procedures. Since 2008, the constant struggle for homeowners to just trying to stay in their home is hard enough. Some homeowners are living check to check, working two jobs and spending less and less time in the actual home that they are paying for. Add a bank that tries to squeeze their borrowers for every extra penny and you get almost every plaintiff in this case.
The trial lasted 10 days in the Southern District of New York.
Tech wealth responsible for making housing prices unaffordable in San Fransico
Some protesters in San Francisco have stopped, and now let go a bus headed towards Google with Google employees on board. It's not exactly clear on how many protesters participated in stopping the bus, but pictures have shown us that they mean business. According to postings on businessinsider.com, resident of San Fransico say that the personal buses that companies like Facebook, Apple and Google provide to their employee's are making the housing hunt in San Francisco increasingly more difficult.
Confirmed reports are showing that open house showings have potential buyers (employees of Apple, FaceBook, Google) offering an entire years rent, or offering more money than the listing price asks for. This causing bidding wars and fights to break out.
If you have ever wanted to see what the hype is all about when it comes to the UFC, Mixed Martial Arts and Boxing all mixed into one. Then you are definitely in luck. The fourth annual Round 4: Knockout Cancer for Candlelighters Kids will be filled with jam pack action, great fun for all ages, and promises to deliver the most hard hitting, bone breaking entertainment Las Vegas has to offer.
Valley West Mortgage has been one of the leading sponsors since this events inception. We are very proud to be apart of this amazing opportunity alongside partners like All Nevada Insurance. If you haven't met Vinnie Mannino of All Nevada Insurance, then you are missing one of the coolest men in Las Vegas. Vinnie is the person behind the scenes. He is responsible for putting on this amazing event. He even participated in the very first Knockout for Cancer. When he is not helping you lower your insurance rates, he is helping raise money to help kids knock out cancer.
The Event
If you have never been to any of the Knockout for Cancer events, we want to explain some details and then show you a few photo's. The Knockout Cancer for Candlelighter Kids events take place at an amazing venue. The first venue was at Xtreme Couture. what an amazing place to watch a mixed martial arts bout at. There was not a bad seat in the house. Anywhere you sat, you could see the women holding the round signs, the fighters as they entered the cage and every blow that was landed. Last year, Round Three was held inside The Pearl Theater inside of them Palms Hotel. I thought that Xtreme had some awesome seats. The Pearl did not let us down. It's like being inside of the most amazing mansion you have ever seen, and there is something more than a fish tank to stare at. What hospitality we had from the Palms that night. That's why The Palms Hotel and Casino is one of our favorites on the strip.
This year Round 4 is being held inside of the Palms Arena. Located at 4500 W Tropicana Ave Las Vegas, NV 89103. This venue promises to offer one of the best views in all of Las Vegas, to see some of the toughest fighters in the world square off round after round to knockout cancer for Candlelighter kids. The Orleans Arena is home to the Las Vegas Wranglers, multiple basketball tournaments and even motorcross racing. If you have not been inside of the Orleans Arena, Round Four: Knockout Cancer for Candlelighter Kids is the perfect event to see inside of the Orleans.
Need More Information
All though we have spent the last few minutes with you, describing on why you should come out to this event. We'll let the links below to buy tickets, view more details and become a sponsor speak for themselves. If that doesn't help, enjoy the picture gallery below.
A New Study Shows How To Convert Foreclosures into Rental Properties
Las Vegas, Nv - Lewis Ranieri, the co-inventor of the mortgage-backed security, authored a research paper with University of California economist Kenneth Rosen that lays out the case for using federal entities to support private investors who are already converting foreclosed properties into rentals.
This Foreclosure to Rental model can more than likely be adapted into every market the United states currently offers. Mr Ranieri and Mr. Rosen have chosen the top ten markets where their research could benefit greatly. The cities listed are Chicago, Denver, Detroit, Oakland, Seattle, Minneapolis, and Los Angeles. The reasoning behind why these cities were picked is rather quite simple. These cities have a very high rental condition and high levels of bank-owned foreclosures.
Las Vegas, is not well suited yet because we have poor rental fundamentals despite a glut of bank-owned inventory. No matter what our city makes it's way on to every list created, Good or Bad. It just so happens that Las Vegas is one of the worst housing market in the United States, as well as having the highest unemployment rates.
The paper argues that existing industry and government effort to modify mortgages, while necessary, won’t alone be enough to deal with the problem of already vacant properties and those that may not qualify for modifications.
So why is the government needed? There’s two reasons: First, Fannie Mae, Freddie Mac, and the Federal Housing Administration sit on nearly half of all foreclosed properties, making them key sellers to investors that are converting properties into rentals. Second, Mr. Ranieri says investors could soak up the overhang of distressed properties even faster if Fannie or Freddie expanded their investor financing programs.
The paper includes a series of other interesting ideas that build on the rental-conversion idea:
• Employ a “rent-to-own” option that would allow tenants to allow some tenants to ultimately purchase their rental homes. Mr. Ranieri has already employed that option through his company, Selene Finance, which invests in distressed loans and homes.
• Raise the ceiling on the number of loans that Fannie and Freddie will guarantee to a single buyer. Currently, those limits are set at 10 and four, respectively, but Mr. Ranieri has argued that investors who make large down payments of 30% or 35% should be able to take out 25 mortgages. That would allow smaller investors to get more involved in repairing their local markets, even as federal officials consider structured sales of bulk properties to larger outfits.
• Change appraisal rules for investor purchases to evaluate the value of properties based on the rental income, rather than the traditional metric of “comparable sales.”
Other influential housing analysts, including Laurie Goodman of Amherst Securities, have also strongly backed policies
But the idea remains unpopular with the National Association of Realtors and major real-estate brokerages, which say that foreclosed properties are selling briskly and don’t need to be taken off the market.
Consumer bureau releases a new mortgage statement "prototype"
The Consumer Financial Protection Bureau released a new "prototype" of their new new proposed monthly mortgage statement for all consumers that provides clear and valuable information about their loan on a single sheet of paper. This is great news for any of our readers that feel like disclosing information is seriously a problem in our current time.
The monthly mortgage statement includes the outstanding principal on the loan, the maturity date, any prepayment penalty, and the next date on which the interest rate could change. It also features a breakdown of the monthly payment and a phone number to contact the servicer. The chances of you actually reaching someone on the other end however, is yet to be determined.
“This information will help consumers stay on top of their mortgage costs and hold their mortgage servicers accountable for fixing errors that crop up," said Richard Cordray, the agency's director. "Given the widespread mortgage servicing problems we’ve seen over the past few years, consumers need clear disclosures they can count on.”
We will be sure to keep our readers up to date on this story
Pay off a 15 year mortgage loan in less than 10 years
CNN Money reports that the average 30 year fixed mortgage fell to 3.94%. These rates compare to the record setting rates we saw in early October. At the same time, the 15 year fixed mortgage fell to 3.21%, and the Five-year adjustable rate mortgages also plumbed new depths, hitting 2.86% for the week. This does not come as a surprise to many of our sites visitors that have been keeping up with the recent postings we have featured.
Mortgages are a tough thing to wrap a mind around. It should be as easy as saying "today's rate is this, that's what you get." Instead, there are scenario's that need to be examined, requirements to be met and money to be saved. With the national average falling to 3.94%, things might get a little easier. Freddie Mac's chief economist, Frank Nothaft, said that these rates will more than likely stick around until at least mid-2012. Valley West Mortgagewants to help our readers save money the best that they can. SO here is a tip.
Les Christie of CNN MONEY reports that "The low rates can translate into big savings for home buyers. Five years ago, a home buyer would have been lucky to land a 5% rate on a 15-year loan. On a $200,000 mortgage, that would have meant the borrower would have paid $1,582 a month. Should a borrower land a 3.2% rate on a $200,000 loan now, the monthly mortgage payment would come to $1,400 -- a savings of $182 a month." While this is true, I would like to tate a fact that could save your money money and time in the long run. Lets say that the previous situation applies to your situation. You were paying 5% on a $200,000 mortgage and are now at 3.2%. You are saving $182 a month. Your first initial thought would probably be that you now have extra money to spend on groceries, bills or gas. But here is an idea. If you took that $182 and made a separate "PRINCIPLE" payment, you could actually pay off your loan in less than 9 years. Now let's be clear about this. You would have to write the check to Mortgage Company that you are paying and clearly state on the check, that the check is to be paid to the PRINCIPLE on your mortgage.
While it's not a bad thing to want to pocket the money, being smart about paying off your loans and interets sure does help. See our recent posting about Mortgage Rates at their lowest, arguably to get a better understanding on how people claiming "RATES NOW" are lower then the same exact rates "THEN".
Why should you use a Las Vegas Mortgage Broker instead of going to a bank?
Las Vegas, Nv
Below is an excerpt from a letter to President Obama. This letter was sent to him by the National Association of Mortgage Professionals (NAMB) of which, we are a proud member.
" The Georgetown University study stated that Mortgage Brokers saved borrowers thousands of dollars when it came to their mortgage needs. And the obvious differences on using a broker for your mortgage is that Mortgage Brokers are licensed by their state and the NMLS, take continuing education, take a national and state to be able to be licensed, have a criminal background check with fingerprints, and have their redit checked. Mortgage Originators that work for these banks failed to pass some of these items, test, background checks, etc., and that really sets Mortgage Brokers apart from those depository institutions.
There are thousands of good honest Mortgage Brokers in America that have never participated in sub prime loans or have used any of the exotic products that Wall Street or the Mega Banks created. And most of these companies that did these loans were not mortgage brokers.You consistently use the term Mortgage Broker to relay information having to do with the Housing industry and that is not fair. Let me give you an example. When a drug creates a problem in the medical industry, the FDA goes and contacts the maker of the drug and deals with the company. They don't go to Walgreens or CVS and shut them down, making them the scapegoat for selling the drug. The same is with the Mortgage business. We only sell what is out there from the banks and wholesale lenders. We have never developed or created any of these products. We do not underwrite them or approve them. Yet it seems that every time something comes out about the mortgage industry, it is a Mortgage Broker that did it."
In short, Mortgage Brokers provide a valuable service and save their clients' money over going to a Mortgage Bank or Depository Bank. Let's put this in plain english. We sell the Ice Cream. Not make it.
Mortgage Rates are at their Lowest, Arguably
When talking about the "Lowest Rate Possible" a strong, two sided debate always takes place. We have heard this argument take place, many times both sides make equal and valid points to their case. Either way, Valley West Mortgage is here to tell you some of the details involved with the phrase "Lowest Rates Ever!".
Earlier this fall, the beginning of October and even the end of September, rates were on average lower then they are today. That being said, in terms of the actual interest rate that's most likely to be quoted to an ideal-scenario borrower, it was 3.875% then and after a long time stuck at 4%, the most prevalent best-execution rate is once again 3.875%.
There are a couple things to keep in mind when thinking about a 3.875% Best-Execution rate.. 3.875% Best-Execution rates mean that this the most prevalent RATE for the best of qualified scenarios, while it considers the costs involved to obtain that rate. Those costs can vary quite a bit before a move up to 4.0% or move down to 3.75% would be justified. We're only just entering the very outer limits of 3.875%'s range of closing costs (on average, some lenders are already close to 3.75, some are still at 4.0 or higher). The point I am trying to make here with this article on Lowest Mortgage Rates is that with all this hype and exposure of the term "LOWEST RATES POSSIBLE" in the market today, it is a good idea to step back and take a look around. It is very important to know all the details. You might have a better scenario then you imagine, leaving you with more options to help choose a company that can move down to 3.75%. It is not that the rates have not been here before, or that you have not been warned numerous times about subject similar to this one. The fact is that many first time home buyers have no idea what they are jumping into - (Not Factual).
Many first time home buyers read a Mortgage Blog, maybe even a book or watch a video and then make a few calls hoping to get some kind of valid information, possibly hearing some of the same terminology they just read about. Valley West Mortgage is dedicated to helping all of our potential home buyers find all of the information needed to make a smart decision with their future. See our past blog about Loan Officers Should Always Provide Valid Contact Information. Our staff at Valley West Mortgage can prove their Authenticity, as well as our companies, before talking number.
Las Vegas City Council Passes Home Upkeep Ordinance to all Lenders.
Las Vegas, Nv - The Las Vegas City Council has passed a new ordinance that requires lenders to upkeep their properties on foreclosed homes in holding, or face some pretty steep penalties.
If you are looking to buy a home in Las Vegas, Nv, you have probably driven through some neighborhoods that are pretty impressive, or an eyesore. Well not for long. Lenders are required to register all vacant homes with the city. The cost of registration, is $200.
If a home is found in violation of the newly enforced city ordinance, the lender has a window of ten (10) days to fix any and all problems with the property. After ten (10) days, misdemeanor charges could occured, then followed with penalties of fines or imprisonment for bank officials. YIKES!
Other cities have taken a close watch over this action. If it works here in Las Vegas, it could work in other cities.
Winter is just around the corner. Apply today, Move in Tomorrow!
If you have not noticed, The heat is finally starting to disappear in Las Vegas. That means the cold desert winter time is approaching quickly. We know, just like all of the Las Vegas locals know, that the fall and winter time in Las Vegas means more nights outside with friends and families, special events like the Monster Energy AMA Supercross World Finals, Monster Truck World Finals, Nascar Camping World Truck Series at Las Vegas Motor Speedway and the Rodeo World Finals are coming up soon. Wouldn't it be nice to have a new home?
Not just any new home though. A New Home with more space for friends and family to stay with you when they come in to town. Well Valley West Mortgage has made it easier for experienced potential home buyers, as well as first time potential home buyers to get approved today! We have updated our website, adding new tools and calculators for all potential home buyers. We have also added a new Frequently Asked Questions section.
