Posted by TitleGalCA on 5/5/06 6:17pm
Msg #118039

Interest only ARM rider and ARM rider all in the same DT?

It's been a long week and I'm tired and I have a headache, so hopefully I covered all my bases if I'm stupid as well.

Looking at a TD that has an ARM rider AND and interest only ARM rider. Hm. Seems to contradict each other but I checked loan numbers and they match up. I'm not getting it. Help anyone? How can you have both?

(and if I'm being stupid, see all the disclaimers above)

Reply by Shane_OH on 5/5/06 6:24pm
Msg #118041

I've see a few of these TitleGal, especially with the Lending Center loans.
Usually its like a 5/1 arm IO. After 5-10 years it reverts to PI, and is adjustable.

Reply by TitleGalCA on 5/5/06 6:36pm
Msg #118048

Thanks Shane, I've never seen one of those and Mr. Know-It-All next to me says..."oh yeah, that's one of those loans, with both riders, happens all the time". Uh huh.

I was hoping someone would post that it was impossible to have both so I could be a bigger Know-It-All. Darn.

Reply by Your Destiny is in My Hands - Destiny D Taylor on 5/5/06 10:01pm
Msg #118069

LOL that is funny....maybe next time you get to be the bigger know-it-all :>

Reply by Joan Bergstrom on 5/6/06 12:52am
Msg #118075

The loan industry is changing so quickly its hard to keep up

I have been doing this for 4 years and I am amazed in Calif how many different types of loans are available and how much the industry changes at rates change.

I hadn't done a 2nd mortgage loan in 2-21/2 years and suddenly I am doing several per week.

As a marketing tip I think Reverse Mortgages in Calif are going to be huge as we are expected to have approx. 20% of the mortgages.

Reply by BrendaTx on 5/6/06 1:16pm
Msg #118117

Re: The loan industry - about Joan's remarks...

**As a marketing tip I think Reverse Mortgages in Calif are going to be huge as we are expected to have approx. 20% of the mortgages.**

When I was an infant signing agent I began to educate myself on Rev Morts. I was a part of a networking group and told them that I thought as refis bottomed out there would be the rev morts.

I told this to a few whom I talked to on this board...no one paid me much attention...some said, "Oh those are awful...high CCosts and all." SLAM. The subject was closed on me time after time.

Maybe I am tooting my own horn here, but it doesn't take me long to look at a hot horseshoe.

What goes down, must come up in finance. Having seen 16% on mortgages my parents held in the 70's I knew this. So...I knew refi's would die in Tx except for the ARMs. However, the point is that people almost discouraged me to learn about Rev Morts. I have just about finished writing up my notes on them and it fills about a pretty good sized notebook. Showing what I know in writing to a few here and there has got me a bit more business. It took awhile to accumulate all those sources, terms and understanding. Get busy learning about rev morts and treat your REVERSE MORTGAGE SPECIALIZATION like a business. DO NOT GIVE YOUR KNOWLEDGE AWAY FOR $50. That's my marketing tip for the day.







(For the Tx lingo challenged: You pick up a horseshoe, you look at it. and then you throw it down because it's hot!)

Reply by BrendaTx on 5/6/06 2:05pm
Msg #118121

Re: The loan industry - about Joan's remarks about

rev morts are accurate if not a little bit low.

I forgot to mention that because I was so busy talking about me. Oops...sorry Joan.

For some reason, these days I feel compelled to write you up as "Jone" or "Jones." What's that about? Are you considering an ID swap? J/k.

Brenda

Reply by BrendaTx on 5/6/06 10:39pm
Msg #118168

And, one more rev mort remark

Here's a projection on the rev mort bus

http://www.fanniemaefoundation.org/programs/pref_reverse_mortgage.shtml

Reply by PAW on 5/6/06 10:53pm
Msg #118169

And more information ...

That report was published early last year (March '05). For a compendium of reports, analysis and information, you may want to view http://www.rtgconsultants.com/reverse-articles/

Reply by BrendaTx on 5/6/06 11:08pm
Msg #118170

Re: And more information ...thank you...that's good stuff! n/m

Reply by Joan Bergstrom on 5/7/06 1:00am
Msg #118173

Actually I am a legend in my own mind!!

These Reverse Mortgage signings in Calif are going to be a very big part of my loan signing business in the future.

The refinance market will be there forever; its just the type of loans change over time. I am doing a bunch of 80-20 loans and more 2nd mortgages in the last 3 months than I have done in the last 4 years.

I am as busy as I was 2 years ago because I have always marketed to companies that do "B Paper Loans" (people with bad credit.)

Who does these types of loans: Countrywide, Argent, Finance America, Ameriquest and also the signing companies that handle these loans.

When the loan signing business changes; change yourself to market the industry.
I am making a big marketing campaign to Reverse Mortgage Companies.

I get 4-6 calls everyday to do loan signings (except Sunday) and this is not to brag but to suggest to notaries in Calif. if your not getting calls you need to market!

Reply by Gina Collins on 5/7/06 1:24am
Msg #118174

Re: Actually I am a legend in my own mind!!

I AM NEW TO THE INDEPENDENT SIGNING BUSINESS, BUT I WAS AN ESCROW OFFICER AND NOTARY FOR THE LAST 8 YEARS. I HAVE DONE SOME MARKETING WITHIN THE LAST COUPLE OF WEEKS AND HAVE BEEN ON 4 SIGNINGS. ANY SUGGESTIONS TO ME, ON HOW TO MARKET???

Reply by CaliNotary on 5/7/06 2:08am
Msg #118176

Re: Actually I am a legend in my own mind!!

I would suggest that the first thing you do is learn to type correctly before you send out any marketing materials.

Reply by Anonymous on 5/7/06 9:53pm
Msg #118295

Re: Actually I am a legend in my own mind!!


CaliNotary be a little nicer why don't you!!!!

Reply by BrendaTx on 5/7/06 9:13am
Msg #118180

Re: Actually I am a legend in my own mind!! - Gina ...

Start your education here by searching for message #33325. Read all the messages after it.

Just a suggestion:

One thing you'll find helpful if you are serious about marketing is to avoid using all caps in your writing of letters, posts and emails. People who spend a good deal of their time at their computers will feel you are "yelling" at them with all caps.

You sound as if you have a good deal of great experience.

Earlier you queried this board about HELOCs. Did you ever find the information you needed about getting more information on the correct locations to do these in Texas?

Reply by Julie/MI on 5/6/06 7:15am
Msg #118083

Yes, title gal I have seen the senario and the brokers here are getting so creative with loan programs my head swims at times. It seems one explains the typical Arm part and the other the new-fangled interest only that shows a lower payment than on the note. So when you point out the interest rate on the note, the borrower freaks out that the payment is supposed to be lower and you need to go to the interest only arm rider.

What still bothers me are the eloan mortgages that have a homestead waiver and dower waiver. The boxes are checked on the mortgage that they are attached and even if both husband and wife are on the note and mortgage they still want these executed which doesn't even make sense and in some cases could be harmful if the non-borrowiing spouse DIDN"T want to waiver their dower or homestead. I wouldn't sign one, but then again the average borrower has no clue what these riders actually are.

Reply by PAW on 5/6/06 8:26am
Msg #118086

Re: Interest only ARM rider and ARM rider all in the same DT

I see these all the time, especially for investment properties. The Note is a P&I ARM but the addendum is for the Interest Only period and modifies the Note. Just like a prepayment addendum which modifies the original Note to add the penalty period.

It's confusing when you are presenting the "numbers" to the client, as you read down the note showing the interest rate, first due date, then the amount of the payment on the Note, and then all heck breaks loose because the borrower says that the payment is too high. "Well, let's see if there are any addendum," I say. Lo and behold, there's the I/O addendum, AR addendum (explaining the floor and ceilings for the adjustments) and the PpP addendum.

After my first few experiences with that, I now always gather all the addendum and quickly review them prior to presenting the Note to the borrower. Saves lots of hassles.