The CFPB is looking for your advice?? Can you help?

With all the regulations that have been implemented in the mortgage industry recently, we are now seeing more and more mistakes that are caused at the last minute.  The repulling of a credit report just days before a closing, a discrepancy on an appraisal and so on.  Is it me, or does it seem like every closing is rushed and held up for something that no one has ever experienced before?  I am sure you have been to a few of these closing over the last few years!

Good News!!  The CFPB, Consumer Financial Protection Bureau, is looking for input on the closing process, specifically in response to the questions below. This is an incredible opportunity as the CFPB is asking us how to make things better in the Mortgage World specifically at the closing table.  Now is your chance to speak up and tell us what you think!  Can you answer some of these questions?

In case you were wondering, the CFPB is the product of Senator Elizabeth Warren from Massachusetts.  It is a committee to help the consumers obtain financial products with clarity.

Do us all a favor and answer as many of these questions as you can.

Consumers and Closing

1. What are common problems or issues consumers face at closing?
2. What parts of the closing process do consumers find confusing or overwhelming?
3. Are there specific parts of the closing process that borrowers find particularly helpful?
4. How empowered do consumers seem to feel at closing? Did they come to closing with questions?
5. What, if anything, have you found helps consumers understand the terms of the loan?

Changes and/or Errors at Closing

1. What are some common errors you have seen at closing?  Tell us about errors that were detected after closing.
2. What changes, diverging from what was originally presented at closing, often surprise consumers at closing? How do consumers react to changes at closing?

Other Parties at Closing

1. How, if at all, do consumers typically seek advice during closing? In person? By phone? Online?
2. Where and to whom do consumers turn for advice during closing? Whom do they typically trust?

Closing Documents

1. What documents do consumers find particularly confusing?
2. What resources do borrowers use to define unfamiliar terms of the loan?

Improving Closing

1. What, if anything, would you change about the closing process to make it a better experience for consumers?
2. What questions should consumers ask at closing? What are the most important pieces of information/documents for them to review?
3. What is the single most important question a consumer should ask at closing?
4. What is the single most important thing a consumer should do before coming to the closing table?

Do you have something to share or tell us in regards to what you have experienced at the closing table with your clients. Please tell us as we will be compiling all the comments and suggestions for the CFPB.

This is a major breakthrough, this is a Government Agency that is not only working with the consumer, but is working for you and I to make the process far better! To learn more about the CFPB, click here: Consumer Financial Protection Bureau, if you are in the mortgage/real estate business, this is important.

Send your comments and suggestions to wnickerson@merrimackmortgage.com and together we can make history!

Thank you very much,

Bill

10 Tips for First Time Homebuyers

1.  Be picky, but don’t be unrealistic.  Your first home may need a little work, some paint, carpet and perhaps some other updates.  Remember, this is your first home and the first step in investing in your future. Don’t avoid a home because it has bright pink walls or ugly floors.  Do avoid a home that may have structural damage such as rotted sills.

2.  Do your homework before you start looking.  Look online, work with a Real Estate Agent and begin the process of what style homes you like, neighborhoods and most important, the price range.

3.  Get your finances in order. Organize your bank accounts by having all of your funds in one or two different accounts.  Review your credit to make sure any and all accounts are up to date.

4.  Don’t wait to get a loan; Get pre-approved.  Call me today, 978-273-3227, get approved ahead of time to make sure you are properly prepared and you are realistically looking in the right price range. This is a free service!

5.  Don’t ask too many people for opinions.  Just because your best friend bought and sold 3 houses, does not make them an expert.  Ask the professionals that do this everyday.

6.  Decide when you could move. Set realistic time frames of how quickly you could move into your new home.  In the case of home purchases, some transactions can happen in as little as 30 days and some can take up to 6 months, you need to be prepared.

7.  Think long-term. Where do you see yourself in 10 years? Are you buying to be in a good school system? Closer to work? Close to the City?  Figure out what is important to you today, will these wants/needs still be important in 10 years?  It’s ok to buy a starter home and then re-evaluate in 5 or so years.  This is an investment and it’s your future.

8.  Don’t let yourself be “House Poor”.  Don’t over buy, your first home does not have to be 5000 square feet. You want to make sure you can still live your life and afford to go out to dinner.

9.  Don’t be naive. If you have never swung a hammer, don’t by a fixer upper. Do your homework on what updates to a home cost before purchasing a home that may need TLC.

10.  Get help from a real estate agent. This is your best resource for your home purchase. To be properly “matched” up, call me as I work with real estate agents all over and can refer you to one that best suits your needs.

Bottom Line:  Being a first time home buyer can be a scary uncertain time in your life, seek help from trained professionals to get the best most up-to-date information.

At Merrimack Mortgage, our mortgage programs are designed to assist the many different needs of each unique individual’s needs.

Call or email me today to find out how I can assist you in financing a new home or refinancing your current one. 

Bill Nickerson NMLS#4194   179 Great Road, Acton MA 01720

Phone: 978-273-3227     Bill’s Email       Bill’s Website

So…What happend to Mortgage Rates??

As we have learned…The Fed, The Economy and Wall Street are very similar to the weather here in New England, just wait 5 minutes and it will be different. In this case it was a True Nor’ Eastah!!

Oops…was I not clear enough??

The Fed, which can be a love hate relationship, has a strategy that has been open-ended, it just pumped money into the economy, hoping things got better and for the most part, the economy is heading in the right direction.   Now, Fed Chairman Bernanke says he has a more definitive game plan or at least as definitive as the Fed can be!!  Mr. Bernanke will continue to buy Treasuries and bonds to stimulate the economy until unemployment falls to at least 6.5 percent — and as long as inflation stays low.   Overall, this has been his plan and he is announcing that if we keep this pace, he is going to back off on pumping these funds into the markets or increase as needed.  As we saw last month, Unemployment creeped up to 7.6% indicating the economy slowed.

Because of the comments and the timing of The Fed’s message this past week,  Investors on Wall Street ignored the details of Ben’s plans, even know they really have not changed that much.  The idea is to inject enough money into bonds and treasuries to keep long and short term rates low which will allow slow and steady growth in all sectors with Housing being the main focus.

“I think Wall Street overreacted,” said Bloomberg Government’s Nela Richardson. “It was almost as if Bernanke punched Wall Street in the collective gut, and that’s not what his intention was. He said — very clearly, I thought — that the Fed would begin to taper if — and only if — the fundamentals looked good. Not good enough, ‘good.'”

The markets are misreading the Federal Reserve’s messages as Investors reacted in a big way; the Dow Jones Industrial Average suffered its worst loss of the year. In the two days since Fed Chairman Ben Bernanke said the central bank expects to curb its big bond-buying program later this year, stocks tumbled, long-term interest rates rose and interest-rate futures contracts fell, meaning investors bet the Fed would raise short-term interest rates sooner than previously expected.

What investors did not hear was his second point: If the Economy does not meet the Fed’s expectations,  Ben Bernanke is then willing to adjust the pace to keep interest rates low.  Investors, the Markets, Wall Street and many others ignored this statement!  Again, causing the Dow to have it’s largest drop in over a year and mortgage rates to surge to their highest point in over 2 years.

So, where are rates today?  Just over a month ago, the 30 Year Fixed Conforming Mortgage rate was trading at 3.5% (plus or minus an 1/8^th).  Today, we are seeing this same rate trade at 4.375%-4.625%.  A full point higher than just a month ago. On a $100,000, this is an increase of $105 per month and on a Loan amount of $417,000, this is an increase of $240 per month.

In my opinion as well as a few others, we should see some type of correction in the Markets.  As these rates have moved so fast, it is possible this slows down the economy even more. It has brought refinancing of homes to a complete stand still.  Purchases should still move forward, but it will cause buyers to rethink the amount they are borrower in some cases.

For more information about mortgage rates, programs and the economy, feel free to email me at Bill@billnickerson.com

My Personal Passion: The Pan Mass Challenge

Bill Nickerson

In 11 days I will be riding in my 9th PMC, raising funds for The Dana Farber/Jimmy fund.  I’m very excited to have the opportunity to once again ride for a great cause!  Please help me, help them by donating to my ride this year.  Click the link to Donate to Bill’s ride.  Thank you for helping to make a difference!  Ride On Baby!!

To learn more about this great cause, I have enclosed some basic information about the Pan Mass Challenge.  Please see below.

About the PMC:
The Pan-Massachusetts Challenge is an annual bike-a-thon and a pioneer of the athletic fundraising industry that today raises more money for charity than any other single event in the country. The organization was founded in 1980 and has since raised $338 million for cancer research and treatment at Dana-Farber Cancer Institute through its Jimmy Fund. The PMC is a model of fundraising efficiency. The PMC donates 100 percent of every rider-raised dollar directly to the cause. In 2011, the PMC generated 60 percent of the Jimmy Fund’s annual revenue and it was Dana-Farber’s single largest contributor. Over 230,000 individual contributions were made to last year’s fundraising campaign. In 2012, PMC cyclists will ride with the goal of raising $36 million for Dana-Farber.

Click to Donate

The Ride:
The Pan-Massachusetts Challenge is a fully supported bike-a-thon — with food and water stops, mechanical and medical assistance, luggage transportation, and lodging — that runs through 46 towns across Massachusetts. Approximately 5,500 cyclists ride in the event. Cyclists choose from 11 routes of varying mileage designed to cater to all levels of cycling strength and fundraising ability. There are six two-day routes that range from 153 to 190 miles and five one-day rides that range from 25 to 110 miles. In 2012, cyclists are required to raise between $500 and $4,300 to ride in the PMC, depending on the chosen route.

When:
The 33nd annual PMC is Aug. 4 and 5, 2012. The ride has two starting lines on Saturday, Aug. 4, in Sturbridge and in Wellesley, and five finish lines in Provincetown (2), Bourne, Wellesley or Sharon on Saturday, Aug. 4 or Sunday, Aug. 5.

Bill Nickerson

Who:
Cyclists travel from 36 states and eight countries to ride in the PMC. Nearly 300 riders are cancer survivors or current patients. Some PMC cyclists are weekend warriors, others are trained triathletes. Most PMC participants ride in honor of a family member or friend fighting the disease. Cyclists range in age from 13 to 88. The average PMC cyclist is 45 years old, trains for three months, solicits 40 sponsors, and raises more than $6,000. During PMC weekend and throughout the year, more than 3,000 volunteers donate their time and 200 corporations provide over $4 million in products and services. The PMC was founded in 1980 by Billy Starr, who remains the event’s executive director, an annual cyclist and a fundraiser. It is presented by the Red Sox Foundation and New Balance.

YEARS RIDERS VOLUNTEERS DONATION
1980 – 1989 4,968 1,778 $3,665,800
1990 – 1999 16,668 11,921 $38,750,000
2000 – 2009 39,972 22,575 $227,200,000
32 Year Total 71,955 42,244 $338,000,000
2012 GOAL $36,000,000

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