Pop goes the Mortgage Industry: Washington Mutual

WaMu just announced that they're tightening up the guidelines even more. As if it wasn't hard enough to do business today and get a loan, they've change the majority of their "stated" core products to require both 720 FICO score AND 50% Loan To Value max. That means: 50% DOWN PAYMENT. So, what WaMu is saying this week: We don't want any business. Any lender can cherry pick at Full Doc conforming loan....they're a dime a dozen. WaMu, like other lenders, is effectively pulling out of wholesale lending. That's one broker's opinion. I'm usually right. Where will you go for your next loan? How about http://www.ptre.net/, Pat Townsley, Broker.

Credit Debt: Out of Control

The credit markets are in difficult times. With online buying increasing in popularity and physical retail locations rarely seeing cash as a method of payment, the Credit Card is now the method of payment. Holidays often force people to purchase beyond their means out of guilt and obligation...and last minute deals. So, come 2008, there is going to be a LOT more credit debt on the average American. Give us enough rope and we'll hang ourselves with all this debt. If you have a home mortgage that allows you to pay off the debt, you might consider a refinance. It's not always the best bet or smartest play. I offer a confidential review of your financing opportunities. Leverage and position yourself sooner than later. Be PROACTIVE and not REACTIVE to the Credit Challenges ahead. Don't find yourself going over Niagra Falls in a boat with no oars. Mortgage lenders are TIGHTENING UP and you're not going to have many opportunities soon. Take Action! I'll guide you through the maze. Pat Townsley, Loan Consultants. 415-485-1776. http://www.ptre.net/

Sign Up for my newsletter

Happy Holidays to all. Trying to be as "Green" as possible moving forward into 2008, I am now offering my monthly newsletter in email format via my secure "no spam" website. I’m doing this to cut down on paper, postage and waste. Please take action to sign-up for my electronic newsletter at www.PTRE.net. You can do it in less than 15 seconds and I promise that this is my own private database; I will not "spam" or sell my information. Over the past decade, my printed personal newsletter has gone out to just over 1000 clients per month. Quick Sign up at http://www.ptre.net/. Thank you.

More Mortgage Troubles on Wall Street: Bear Stearns

"NEW YORK (CNNMoney.com) -- Bear Stearns swung to a quarterly loss Thursday and said it was taking a $1.9 billion writedown due to bad bets made on risky home loans, becoming the latest Wall Street firm to deliver disappointing quarterly results." Posted on CNN.com 12/20/2007.
Not good news. Merril Lynch has had an even tougher time. WaMu has closed its "subprime" division. Wells closed its Wholesale 2nd's division. Citi, Chase, Wachovia/World, ALS, IndyMac and Countrywide have all reigned in their underwriting criteria. It's going to be tough times to get your next home loan. Those who ARE able to get into the market will do very well. It's a case of "the rich getting richer." We are seeing the early, but bold, warning signs of economic Depression. Time to buckle down and tighten up. If you're in an adjustable loan now, it's time to take advantage of the current low rates and lock in a long-term loan before prices make underwriting impossible. Pat Townsley: Solution Guy. http://www.ptre.net/. 415-485-1776

Why Refinance Now

Lenders are tightening up guidelines daily, so by refinancing now, you’re securing your life and buying serious peace-of-mind. I’ve been through absolute hell this past month with some of the simplest of loans falling apart and subsequent-damage control due to constant market corrections and changing guidelines. The deals are getting done, but with many more hoops-a-fire to jump through. The financial and credit sectors are in a lock-down. Americans aren’t saving. Consumer debt is out of control. Holiday retail sales numbers will be disappointing, banks will be closing branches or closing entirely. We’ll see decreasing consumer confidence and the media eating it up and skewing data for any political positioning for either side. Everything will be increasing in price from food to fuel, raw materials to transportation. Money won’t come easy anymore. Rates are as good as we’ve seen in over a year. If you (or anyone you know) needs to refinance anytime between now and 2009 and you have any concern that your home may now (or in the future) slide in value, the "Loan To Value" should be of great concern to you...right now. Secure a long-term position now before things change for the worse. We’ve only just hit the iceberg, and I’m the guy with the lifeboats. Let’s Talk. Captain Pat Townsley, Mortgage Navigator. http://www.ptre.net/. 415-485-1776.

Action without Reaction

Last Tuesday the Fed took another step at "helping" the economy by lowering the Fund Rate by a quarter of a percent. There’s also continued talk of the government and banks agreeing to "freeze" certain existing adjustable home loans as well as a bill on the table to eliminate "yield spread premiums" to lenders (in an effort to "level the playing field"). None of these will really help. Foreclosures and bankruptcies will tear us up in 2008, decreasing values and tightening guidelines will make refinancing harder in the months to come. It will make Purchase prices much more attractive, but you’ll need more money down in most cases. Get pre-approved before you shop! Purchase Loans throughout the State of California: Broker, Pat Townsley. 415-485-1776. http://www.ptre.net/

New FLEXIBLE loan program

I’ve got new loan programs rolling out from over 70 of the top remaining banks plus I’d like to introduce you to the "Home Ownership Accelerator" loan program. Let’s get a head start on 2008. If your loan is poised to adjust in the next 24 months, we should talk and put a plan and timeline together. Start your 2008 personal, family and business goals now and let me help you secure your future; Financing with Planning and Purpose, Not Pressure. Ask me about the Home Ownership Accelerator loan.

Pat Townsley, http://www.ptre.net/ 415-485-1776.

Dead Cat Bounce

Dead Cat Bounce... A twisted definition of a visual occurance in a graph charting a time horizon. What we see is a rapidly declining market, then it appears to "hit" bottom, pop up a bit (maybe even a few times from "the bottom," then continue the decline. That's what we'll see in the real estate market ing 2008, probably a few times before we hit real bottom. There are many challenges facing homeowners, the US and the world. Our national economy has a huge effect on the global market. A rising tide lifts all ships, and the opposite as well. Who do you know who needs a solid mortgage solution? Please refer them to me. Pat Townsley, Mortgage Broker. http://www.ptre.net/. 415-485-1776.

Shredded Bark: Poor choice for curb appeal

You just spend a small fortune remodeling your home or an investment property. You've spent months, years working on the detail, the plans, the execution and the work. Magnificent work. Then, you come in and finsh off the landscaping, the curb appeal, the last final touch...with shredded bark. Folks, shredded bark looks like hell. It mats up, it turns brown, it pulls back and it's just looks cheap. It's a tool that people use to quickly gloss over a yard when selling something that hasn't been maintained. I'd recommend: Don't go cheap at the last second. Plan to finish with class to really make your home "Pop." Planted ground cover, pea gravel, river rock and at least "medium" bark adds a dimention of character, broader appeal and VALUE. American Soil Products in San Rafael has an inexpensive range of soil and rock. Also, a brief consultation with a landscape architect will be worth the investment. Put a nice cherry on the cake of your home.

SubPrime market crashes

Yikes! Big time. This morning, the entire world is watching to see what happens with Sub-Prime lender NEW CENTURY. Last week Fremont Bank crashed and burned. "Conduit" lenders like Greenpoint Mortgage, ResCap and Paul Financial have recently pulled back their loan programs, especially their No Money Down 100% Financing offers. "Conduit" lenders typically sell their loans in the secondary market on Wall Street. They facilitate the mortgage agreements and package up loans to sell to investors. Today, we're seeing the beginning of what will be a new era of real estate subprime loans that will ripple throught the entire banking industry in terms of paperwork compliance, accountability, product offering and creative financing. There are still lenders offering 100% loans, but guidelines are tighter; credit scores, income verification, the whole package. The effect of lack of policing in real estate financing: This is going to hurt.

JUST SOLD!

Looking for real estate fixer opportunities? Folk, I've been telling you that they're out there, how to do it: Pearls, I'm giving you Pearls here. Since shouting at the wind hasn't worked, I've gone ahead and set the pace by buying my newest fixer project. This one will move fast. If you're interested, I'll tell you how to do it, and I'd even invite you over to work on it with me if you're in the Central San Rafael area in the next 60 days. After that, keep an eye out for it coming back onto the market as a beautifully restored single family home. Keep your eyes here for progress updates. This is going to be fun.

Room Full of Gems

Greetings business professionals. The Referral Institute is presenting a powerful networking efficency seminar in Novato CA on February 28th from 7 AM to 9:30 with Dawn Lyons and Trey McAlister. Referral-based, word-of-mouth is the ultimate sales program. Those who train in it are Master Salespeople. There is no exception to this rule. Other marketing tools like traditional advertising, public relations and web sites are certainly of value, particularly if they reinforce the word-of-mouth process. The experienced sales professional recognizes that word-of-mouth is head and shoulders above all other sales and marketing methods. For more information and a personal invitation, please contact me. Pat Townsley. 415-485-1776. http://www.PTRE.net. If you're too busy to attend, you really need to attend!

The Market is ON FIRE

What sells newspapers and makes for must-see news? FEAR. The headlines, the teasers, bumpers and stories are always worst case scenarios and how you're going to burst into flames and die from something that has no symptoms, no side effects and no cure. One this that is aflame is the mortgage market. Money is moving. If you know someone looking to buy or refinance a property, now would be a good time before the frenzy pushes you back out of the market. I'm available with great rates and programs for loan throughout California. A sweetheart loan is the 30-year fixed loan with 10-years with an interest only option. Great for owner occupied, units and investment homes. Flexible and secure. Pat Townsley, Mortgage Broker. 415-485-1776. http://www.ExcellenceInRealEstateFinancing.com

National Wage Increase equals Inflation equals Higher Rates

The argument is a slippery slope; If history is any indicator, the if the minimum wage increases, then the trend is for inflation to increase. When inflation rises, the Federal Reserve Board does it's job: INCREASES key short-term interest rates. The result is increases in all interest rates including mortgage rates. With a shift in the US political balance, one of the Democratic principals is to raise taxes across the board. This too will put additional strain on the US consumer, the everyday Joe, you and me. With a record number of 5-year fixed loans coming due in the next 18 months, positioning your refinance NOW with a new 10-year interest-only is a smart move for longer term planning. Don't wait until the rates start to go up. Get it going while they're attractive. Raising minimum wage sounds good in the short term, but in the bigger picture, it'll be a loss due to the cause and effect. Call me for the best loan scenario: Pat Townsley, Mortgage Broker. 415-485-1776. www.PTRE.net

100% Financing: Sensible planning & some assembly required

"Double zero down": 100% financing for home buying MUST be done with planning. There are simple ways to get yourself simpled screwed if you don't know the components. This one goes out to the first time buyers in particular: When you have NOTHING to put "down" on a property, you're going to pay a higher price for lack of planning (i.e. not saving for a down payment). This will come in the form of higher rates. DO NOT forget property insurance and property taxes. Lender often avoid discussing these points to get their deal done, and there you are, ready to close escrow on your first house and need to quickly scramble for 10k in closing costs. Nice. Also, if you pay too much for your new home and the market is soft, you'll quickly be "upside down" where your value is less than you owe. There are GREAT 100% home loans for just about any buyer. Let me logically tell you how it's done, get your ducks in a row and get you into your new home. Don't gamble. I'll make sure your house has the advantage. Pat Townsley, Real Estate Financial Planner guy. 415-485-1776. http://www.ExcellenceInRealEstateFinancing.com . Your referrals are appreciated.

Economic status and predictions...

This weeks economic calendar is a light as last weeks was heavy, with hardly any data coming out. Tuesday, Wednesday and Thursday's treasury auctions will be heavily watched, as will geopolitical events and any Fed Speak - which there is on Tuesday and Wednesday. Take note of the price of oil, it's approaching $60 a barrel, and much of our economic growth last quarter was attributed to lower energy prices. Bond prices are higher on what is a slow news day. Locally, the job market looks hot and the macro-economy is on fire. It's her, us, the little guys, who don't really feel the effects of money pouring in. Watch interest rates go through the roof if a new higher national minimum wage is put into effect. As the overall government make-up becomes more Democrat influenced, rates will really start skyrocket into double digits. History repeats itself. Now would be the time to secure your ARM financing or "fix" any loans that might have an adjustable component. The clock is ticking. Make the call: Pat Townsley, Mortgage Broker. 415-485-1776. http://www.ExcellenceInRealEstateFinancing.com

Artie Gilbert: One of the greats!

A Marin County icon passed away last week, Artie Gilbert, 61 years young. Recently married, a family man with a booming business and lifetime of friends, I knew Artie on two levels. We spoke not too long ago about my own real estate career and a possible switch for me into his office at Avalar Real Estate. We met a couple times in his office and had great conversations about this business and our previous years of friendship in: A bar. Not just any bar, this one was the place to be in Marin. It was called New George's, a historical landmark popularized in 1984 by owners Tom Hutt and Don Swartz. I came on board in the late 80's and eventually ended up running the show through 1996. Packed with 300 to 500 patrons on good nights to see the nation's top touring bands and local talent, Artie Gilbert was also along for this fast paced nightclub life. He'd come in and just light the place up with his energy, eventually promoting and managing a local pop dance fusion band called "About Face." We'd work the door together, promote the hell out of the band and pack the place...always with laughter and fun and a few bucks. Everyone loved Artie. At his service last Saturday, the San Anselmo Playhouse was packed with representatives from all walks of life and profession to share stories, kind words and love. Artie Gilbert, 1945-2007.

Just Listed!

In becoming a Realtor, I had to battle my own demons and overcome my fear of being grouped in with bunch of self-serving tools. After selling my first listing, I realized that it is a tough gig with a lot of work and brutal competition. I still marvel at the "Hey everyone, look at me" stuff in the industry, but that's the way it is. Reminds me of the classic stereotyping of Realtors by Annette Benning and Peter Gallagher in American Beauty. To that end: Hey Everybody, Pat Townsley JUST LISTED another home. "Another" home: too pretentious and assuming? Sorry. Well, if a condo is a home, the here's http://www.245bellam.com for your viewing pleasure. 3 bedroom, 1.5 bath, washer/dryer, two level corner unit. Very clean and ready to move in. Located in Central San Rafael, the charmer has low HOA fees of $281 per month and a view of something out every window. Proudly represented by Pat Townsley, Realtor: http://www.245bellam.com

Business By Referral

The most cost effective way of marketing and building your network of professional: Network Marketing. I'm on my soapbox and banging the drum after being in Business Network International (aka BNI) for the past year and a half. It's been a tremendous experience. Ask me anything? I've got a solution. CPA, CFP, CMT, Dr. DO, DDS, financial to the healing arts. It's opened up an amazing world. If you're interested in Network Marketing, expanding your business, I highly recommend that you seek out your local BNI chapter at http://www.BNI.com. If you're in Marin County, vist us online at http://www.BNISanRafael.com. You don't know what you don't know. I wouldn't be up on a blog without BNI's Ted Prodromou at Valiss Internet Solutions. http://www.Valiss.com (you can blame him for my rants!). Great people, professional results. Additionally, expand your knowledge at the Referral Institute (in the bay area at http://www.sfbayreferralinstitute.com)
Need to know more? Contact Pat Townsley. 415-485-1776

"Save $500 per month by refinancing!"

Semantics folks, it's all semantics. I just received another opportunity to refinance one of my properties that stated I'd SAVE $500 per month by refinancing. What is does is actually "Free up" $500 per month in CASH FLOW on the pure cash montly payment, but it also defers off $900 per month, actually creating a $400 net worth loss per month or an annual loss in net worth of about $5000.00. If you're in an Appreciating market, then it might be justifiable, or if you're screwed against the wall for cash flow, working capital and/or have an exit strategy. Get honest quotes and solid financial advice. Pat Townsley, Broker. http://www.ExcellenceInRealEstateFinancing.com

Jennifer's Law: California Sex offender battle

In November 2006, California voters passed legislation to protect children against sex offenders. The action of "Jennifer's Law" has been morphing for years. In a nutshell on the most recent incarnation: No registered sex offender can live within 2000 feet of any school, playground, park, daycare facility and other places where children may go. Good in theory, but challenging in application. The hang up now is all about timing: When does it take effect? Effective immediately and forward, OR retroactively. There's the rub. Retroactive. If that was passed, then anyone registered as a sex offender and lives within 2000 feet of the aforementioned would have to move way. Also, Good in theroy, but difficult in application. There are many people with S.O. records from eons ago that was in no way a violent act or would even be prosocuted today, but it's on their records. Now, they have to move to the sticks. Then someone decides to build a park in their neighborhood and they have to move again. They can't live next to a national park. Where will they go? Who will enforce it? Will they be forced to sell their homes and at what loss and who will be sued for loss of equity in a forced sale? It's a messy scenario meant to protect children with too broad of a brush. Probably going to end up being unconstitutional. Find out more about your neighborhood, state and beyond:
http://www.FreeCaliforniaSexOffendersList.org
http://www.NationalAlertRegistry.com (aka http://www.MegansLaw.com)
http://childsafenetwork.org
You'll also note the total LACK of coverage on this issue. It's really being swept under the rug to try and get silent passage. I smell a conspiracy theory. Need disclosure when buying or selling a a home and a comprehensive neighborhood analysis? Pat Townsley, Serving California: www.ExcellenceInRealEstateFinancing.com

Don't fear the shadow.

Groundhog day. DejaVu all over again. No need to hide if it's spring or 6 more weeks of winter: There are still great real estate opportunities to be had. Find the right property by being PRE APPROVED with your financing. Get your groundhogs in a row and your plan will come together. You can't act fast enough when the right deal comes and lays down at your feet. Free loan pre-approvals for purchases throughout California: http://www.ExcellenceInRealEstateFinancing.com
Puxatony Pat, Broker, weatherman.

All the world is a Stage

Well, it's been a while; The holidays, the clients, the kids, the fundraisers, the networking. Glad to be back at it.
I recently went on a listing appointment. The "prospect" asked me if I thought his house should be "Staged." He had his furniture from the '60s, so it seemed appropriate for him if he was buying the home. However, home buyers are often blinded by empty spaces or dated looking seller furniture. As a builder, I think that I have some vision when it comes to looking at a home or property, however, I've found that most people can't "visualize" a home if it isn't laid out in a way that is warm and inviting. To that end, I've been working with a pair of professional STAGERS the past few months; one on a 6000 sq.ft. Victorian in San Francisco and a Condo in San Rafael. Two totally different properties and scope of work. Both have had rave reviews as to their presentation for representation. So, YES, I now recommend a consultation with a STAGER to all my clients. My referral to you this month is BELINDA BEEBE of Organize for Joy in San Rafael. She is a professional Organizer and Stager with a good eye. Some people say she's got two. Contact me for more information or to reach Belinda: Pat Townsley, 415-485-1776 and online at http://www.PTRE.net