"Step right up and win some crap"

Navin R. Johnson struck it rich, but then lost it all in a lawsuit. He didn't have the additional challenges of the economy to turn his rags to riches to rags to riches story around when his parents were able to save him because their investments did well. Perhaps today, the story might not have ended as well is the parents' nest egg had been wiped clean by a global economic downturn. With people scared to put their few bucks into the bank for any term longer than 12 months for fear of loss and crappy rate of return, the opposite side of the banks, the lending divisions, will continue to stay low, only offering federally backed loans like the FHA purchase loans. Refis under $417,000 will remain decent, but those Jumbos won't loosen up until interest rates rise and banks can take a little more risk by receiving higher returns on those larger loans. Catch 22: You can't refi because rates must rise first, then once they rise, the rates won't justify a refi. When the economy is ready, the teacher will appear. Perhaps the teacher is here and we're gettin' schooled. www.ptre.net

We're All Ears!

As possibly noted in my brief mid-August update, there's not much "exciting" about the world of finance right now. No "hot rate" to motivate; nothing other than your existing loan becoming adjustable on a fully amortized 25 year loan. If you're looking to buy an owner occupied home, I believe rates are within a quarter of as-good-as-it-gets. This is that sweet spot. My client base has always been that $500,000 to $5M loan size for owner occupied homes. After that: Vacation homes, investment homes, units and commercial (in order of volume of historical closings for me. So, what do you want to talk about? I ramble on here endlessly. What are your thoughts, comments and questions about the real estate world, financing, banking and/or the economy or whatever is on your mind? Let's talk! My staff and I have some free time right now, and we're all ears. Pat Townsley & Associates, 415-485-1776. www.ptre.net

Dead Cat Bounce clarified

Thank you to the few who emailed me directly (regarding my recent DCB post), either confused by the "term" or origin of Dead Cat Bounce. I didn't create it! It's been around for a long time. In analyzing trends (particularly modeling stock trading), when a stock is falling in price and then regains some positive movement (at a line we may show as the lower band of resistance), this "bounce" of the resistance may only be temporary, and a bigger decline is coming. Someone picked a cat; if a cat was falling and hit the ground, it would bounce, then land and be done (might bounce more than once. So, when tracking a trend and it goes down, then a slight bump up, then another decline to a terminal floor, well, there you go, a Dead Cat Bounce. My parallel to this modeling is TODAY in the US economy, where we've just been beat down the past two years, and "suddenly" things are alleged to be getting better (but underlying this all is many more banks failing, millions of foreclosures about to happen, more write/charge offs for bad debts, more bankruptcies and more magical cash being pumped into the economy). It's just one of those sinking feelings, a slight calm before the next storm. Right now is where the risk takers are profiting from short term investments; a last huh-rah. Watch the money. Fix your monthly costs. www.ptre.net

Cash For Clunkers: America Bamboozled

Let's see, we'll increase taxes on everyone and then give that money back to the few people who have a credit rating to buy a new car earlier than they need to, creating higher levels of debt to those buyers plus increased insurance premiums, creating false demand for vehicles we don't need to create, thereby polluting more to make more cars, then pollution to dispose (destroy) of the perfectly good old cars, which were running just fine. What? Not enough taxes generated to fund this train wreck for a week? Let's just print more, or borrow it from somewhere else. Never mind the starving people, people out of work, people losing thier home or without health care; Let's get (trade) some new cars on the road. This is the worst shell game I've heard of since the deliberate dismantling of the American rail system in some 80 years ago. We're doomed to repeat history apparently and we'll look back, not too far off, and say "Who the hell thought that piece of crap plan up?" Follow the money. All of this has happened before, and it's all happening again.

Pray That We're Wrong: Dead Cat Bounce

I've been talking with several c-level colleagues in several financial industries (accountants, controllers, bank CFOs, statisticians) and I was just reading some recent economic forecasts out of China as well. First, I'll assume you heard about the global recession. Next we'll assume you've heard the recent "hype" that we've seen the worst of it and are turning a corner and that last week's "numbers" were good. What if the truth behind it all is that we're just on the first bounce of a bigger declining picture? Not to get all "conspiracy theory" on you, but there are many economic indicators and challenges that are being swept under the rug. The US is resilient, but we're being pumped up with invisible funds and unprecedented half baked federal programs. Follow the money. This is going to hurt. So, Buyer beware. More than ever, I believe it's time to tighten up and buckle down even harder. Proper financing of your properties is just one aspect of your overall financial plan. Let's discuss the options in today's market (while we still have one). Pat Townsley, Mortgage Broker. 415-485-1776, www.ptre.net

Working from Yosemite

Other than servicing the clients existing clients in progress, I spent a good chunk of the past month in Yosemite, hiking, exploring, bouldering and learning. There are a couple good public wi-fi spots in the valley including The Awahanee (strong wi-fi, but cell service is bad) and my favorite is just about anywhere near the employee housing between Housekeeping campgrounds and Curry Village; Strong signal, outdoors, bears, ravens, oh my. Mortgage rates pretty much did nothing, except for the high-balance conforming loans where lenders artificially and deliberately increased the rates there to slow down originations. Their portfolios are are too heavy with those loans, so they're pushing for the $417,000 and lower loans now, and of course, in Northern California (Bay Area in particular), that really doesn't help the housing market for sales or refi. Remember my post on "Dead Cat Bounce" about a year ago? I think we're in the bounce now. I'll comment on that next. Pat Townsley; 415-485-1776. www.ptre.net

Rates are coming down for the last time, now.

I've always stated that rates work in cycles, and from my view, the cycle comes every three weeks. Sure enough, three weeks ago rates spike... and the past two days and the past three hours we've seen rates dropping again. NOW would be a good time to take action. I don't want to sound cliche, but it's true. How many more times can rates hit this low band threshold? I think maybe one more time, bouncing off lower resistance of 4.5%. Let's do this.
Pat Townsley, Mortgage Broker. www.PTRE.net

TARP Repayment; An Indicator of Higher Rates Coming

The Fed gave many banks the option to borrow some money (some were basically forced to take these funds called TARP (Troubled Asset Relief Program). This gave the Government an ownership/equity stake in these banks (Government owning bank = scary). Now, after "stress tests" on several banks to see if they can "survive" (liquidity, operations, assets, leverage, debt) many banks have been given the Green Light to "refund" their TARP money to the Government (and when I say Government, this is your Federal tax money at work). Several of the banks that have passed the stress test and applied to refund TARP include American Express, BB&T Corp, Cap One, US Bancorp, JPMorgan and Goldman-Sacks. Note that American Express wasn't even a bank prior to the offering of TARP money; they created the entity just to get TARP funds. Conversely, other banks ran and hid from TARP. So the repayment begins, meaning stronger banks are emerging. If they have money, you can bet that rate increases will be seen across the board in terms of increased deposit rates and HIGHER MORTGAGE RATES. This is a sign of things to come. If you're hoping for LOWER RATES, you ship is about to sail; Lock in now; I'll tell you how. Pat Townsley: 415-485-1776. www.PTRE.net

Reverse Mortgage or a HELOC?

Today's Question come from Vince: "Pat -- thinking about some financing on our place -- worth $500,000 as is, no current mortgage -- do you recommend we look at a reverse mortgage or a HELOC?"
My Answer: "It all depends on what you are going to do with the money. That's really a financial planning question. A HELOC will give you flexible money if you need it. It comes with a monthly payment based on the money you have drawn. A Reverse has several options. First, you kids both need to be over 62. Then, what do you want the money for? You can take a lump sum, have monthly "income" payments to you like a fixed income, or have a combination. You have no outgoing mortgage payments; the money is taken in the form of equity from your home. You can't ever be thrown out of your home. Another question is how long do you plan to live there and of course, the survivorship issues: How well are each of you set up in case of The Reaper. Reverse Mortgages are loans, so the money isn't viewed as income. HELOC are adjustable and open to interest rate swings and eventually need to be paid back and they impact monthly cash flow. Reverse Mortgages can be source of income and has several term options.
This is a bigger question than just "HELOC or Reverse Mortgage." It's a sit down and map it out question."
Message: There are many options. Don't just pick the flavor of the day. Get a plan. I can help. Pat Townsley, Mortgage Broker. Refinance, Purchase, Home Equity Line Of Credit (HELOC), Reverse, FHA. www.PTRE.net

Solutions from Problems

I was just presenting at a two day banking conference at the Hyatt in San Francisco this week and was in the Hall of Vendors looking at the different services that are bankers have at their disposal. 75% of the 48 vendors had the word Solution either in their key service bullet points or it was actually part of their company name, i.e. Banking Solutions Inc. To have a solution implies that there is a problem, a challenge, or an opportunity to do things better (efficiency, economies of scale). In my personal daily vocabulary, I've replaced the word "Problem" with "Opportunity" and the word "No" with "Would you let me look at that a bit longer?" There are always solutions to challenges. Right now, there are opportunities to Invest and/or improve your Cash Position. How can you take action on smart investing or improving your cash flow? I've got the solutions for your challenge, and your challenge is how to take advantage of opportunity. When would Now be a good time? Pat Townsley. 415-485-1776. http://www.ptre.net/

An Independent View from Yerba Buena Financial Partners

Delegating works: If it can't be delegated, it can't be done. To that end, I thought I'd share this week's market commentary from Bruce Frankel of Yerba Buena Financial Partners. YBFP is a truly independent financial planning and wealth management firm in SF and an endorsed strategic partner of mine. I've worked with Bruce as a referral partner for many years. Please pop in to their site and sign up for their market newsletter. I'll give you the mortgage rate and real estate opportunity news, but a diversified is a balanced portfolio is a happy and safe portfolio. Visit this week's article at http://www.ybfp.com/ and visit me at PTRE (dot net); the lending yin to your investing yang, or the mongoose to your snake, or snake to your mongoose; I'm not good with animals. I'm great with your rate. Pat Townsley & Associates. Independent Mortgage Brokers and Mortgage Bankers. 415-485-1776. http://www.PTRE.net

Bears versus Bulls: Opportunity Now

Ever wonder where, why, what the meaning of Bears and Bulls came from in the markets? Here it is: It's the type of attack each animal does: A bear attacks from the top and tears Downward. A bull comes in head down and rips Upward. That's it. Bearish is a downward market; a Bullish market is one that's heading up. Right now, it's time for a BULLISH (not bullsh*%&*t) play on real estate. Buy low, sell high. Buy when rates are LOW and you've got real scales of economy: Low price and low rates give you the market advantage. I've got the low rates. Let's talk Bull. Pat Townsley, El Matador Mortgage Broker. If you know anyone looking to Purchase a home or investment property, please send them to me at PTRE (dot net); 415-485-1776

Don't Let the Sun Set on Opportunity

I just presented at a two-day banker conference filled with CFOs and CEOs from the Western 12 states. The other presenters and speakers had three consistent overwhelming forecastings: Rates will either go up or go down. We're either coming to the bottom of the recession or heading out of it. Change will happen either soon or sometime in the future. NOT MUCH HELP. My opinion is and has been: Rates cannot go lower without running the offering bank into failure. Tighter regulations are coming (many are here already). Right here, right now; this is the time. The sun is setting on the lowest rates on 30-year fixed conforming and high balance conforming loans. Summer is coming and everyone goes into vacation mode, and before you know it, you've missed the opportunity and you're in a boat with no oars going over the falls saying "oh shoot." Let's do this now. Who do you know who is a candidate for refinancing? Please refer them to me at PTRE (dot net). Pat Townsley, Yosemite Search, Rescue & Financing.

Right up your Ally

Last weekend I had dinner and the world's best Pinot makers (Kosta Browne Winery) and Ally. Not the bank, but coincidentally named friend. The other Ally, the re-created spin-off from the failed GMAC finance division says they're all about simplicity, great deposit rate of return and no small fly-spec font disclosures. So, they're flooding the market with high rate of return CDs and Money Market accounts, generally pissing off other banks. This argument cuts both ways. The banks that took TARP money generally kept it for themselves. Ally is giving it back to the investors! It looks like a "loss leader" and felonious, but they're actually saying "The government gave us money: Do you want some? Deposit with us and get a higher-than-market ROI." So for now, check them out for High Deposits. If you want the other side of the equation, call me for LOW Mortgage loans: The twin forces of banking aka Savings and Loan; the Libra scales of balance. Stimulate the economy! Come get some. Pat Townsley, Mortgage Banker. Broker #01234350. www.ptre.net

Planet For Sale: Your Time to Prosper.

Calling all top feeders, bottom feeders, upsizing, downsizing, first time buyers, investors, empty-nesters, relocaters, starting over, post-financial holocaust, weak, hungry, huddled masses, veterans, newbies, X-ers, Boomers, whales, rollers and anyone with a job (sorry, that last one cuts it down by 11%): Wake Up! Opportunity is calling. Sometimes it leaves a message, other times not. Sometime YOU need to take the action to call opportunity.

"They" say more money was made during The Great Depression than was lost. If Einstein was right matter and energy can't be destroyed, only altered. If there is one thing that can always be found, it's more money. You just need to take off the blinders and set your own sail. "Can we do it?" It's up to you.

We can help: Team Townsley, silly clip art producers, great real estate financing solutions.

Pat Townsley: Out Standing In My Field

Money doesn't buy homes; People buy homes. Even when I'm 8,842 feet up on the top of Half Dome, I'm taking calls, quarterbacking challenges, insuring the closing of my coveted clients' dreams.
The market is coming around. Loans to Two and Four Million dollars are back on the radar and it's really time to sack-up and pick-up the phone to see what we can see. I've got the nation's top banks to deliver to you and your referrals.
When would Now be a good time to secure your future? In life and in rates, we have peaks and we valleys, and I'm always there, out standing in my field.
Pat Townsley: Relentless. www.ptre.net

Real Estate: The Best Investment Vehicle

Things are busy: Good thing, good sign. I've brought on an extra body to handle the work load and I'm looking to provide more people with loan consultations for refinance and purchase opportunities.
Investment properties are "cash flowing" and, as cliche as it sounds, there hasn't been a fixed rate loan opportunity like this in decades. Where are front-runner investors putting their money now? Real Estate: Historically the best investment vehicle (when played, planned and executed properly). Get on your horse and ride. Call me at PTRE and let's make history. Pat Townsley, Mortgage Whisperer. 415-485-1776. Close with Confidence.

Cute and Cuddly, boys. Cute and Cuddly.

Navigating today's mortgage market requires a team of special operatives working behind the scenes. My team at California Mortgage Advisors does just that work. As Skipper, I come up with the plan. Chris "Rico" Perez is our explosives expert, blowing holes in lender conditions and overcoming obstacles. Kowalski and Private are in the back office, dealing with the deluge of changing guidelines, documentation and the all new train wreck clogging up an otherwise imperfect system: Appraisal Management Companies aka "AMCs."
The good news is we're landing. The bad news is; we're crash landing.
Either way, we'll get your loan funded on time, every time.
Close with confidence.
California Mortgage Advisors: 415-485-1776

Optimistic or Pessimistic?

> There's a sense of optimism in the air; Phone is ringing, clients are coming out from their shelters.
> These 30-year fixed rates aren't going to last too long: FACT.
> Lenders are taking FOREVER to underwrite, review and then stick you in the eye with a red hot cheese knife: FACT.
> Values are falling, decreasing your equity: FACT.
> Even with all this, you should consider refinancing now, test the water with me. I've got a life raft to keep us afloat: FACT.

Pat Townsley, Senior Broker & Mortgage Banker. CA DRE #01234350. http://www.ptre.net/
California Mortgage Advisors; Strong & Secure

70% Solution: Are you one of them?

An estimated 70% of US Homeowners could benefit from refinancing. Are you one of them?
I am ready to take action to make it easy to get you into a fixed-rate mortgage that can mean savings and stability for years to come. Refinancing funds are available. Find out today how much you could save. Apply now.
Sound good, eh. I'll truly make it as easy as possible. It's the banks that that are slowing things down. Some banks are 30 to 45 days to do a deal, others are literally three months. It all depends on how fast you want to go, how much grief the underwriters want to give every single loan, and how well you qualify. Yes, Funds are available and 70% would benefit, but can you qualify. That is the million dollar question in today's market. Let's find out. I've got options. Real rates, realistic expectations.

Pat Townsley & CMA; Mortgage Broker and Mortgage Bankers. 415-485-1776.

A Gift for You: Quote Actions from Pat Townsley

Greetings friends and visitors. I'd like to offer you a gift that has been, inspirational, to say the least, in my life. It's a moment that gives me pause to reflect when all hell is breaking lose around me or, for some reason, I forget the food is burning, the kids have been left alone for a week, the house is on fire or I left the engine running and it's run out of gas and has also burst into flames: Quote Actions.

QuoteActions does more than some lame-o motivational quote. It takes a great quote and asks you to take a simple yet specific Action to make your day, your life, somebody else's life Better. My Gift to YOU, your gift to you. It's an opt-in and easy opt-out. Give yourself a gift! Click Here: QuoteActions!
Pass it on. Thanks. Pat Townsley. Inspired

Indymac becomes OneWest Bank

Those few clients who took advantage of the ridiculously low rates on government back "Agency Conforming Jumbo" loans last year when I called up and said "Look, this bank is giving loans away," well, they were. Hence the failure of Indymac, taken over by the FDIC. The FDIC then sells the assets and debt for pennies-on-the-dollar, a sort of banking yard sale to the highest bidder. When the risk of the debt seems to be less than the upside, then a bank like or holding company can structure a deal to buy and run the institution. In this case: Meet OneWest Bank. If Mergers & Acquisitions, crappy customer service and endless delays in results are pissing you off, call me for your mortgage solutions. Sure, the entire industry is a bit "slow to underwrite" and hype-diligent on conditions and brutally tough on customers, but I'm here to oversee, give you honest reassurances and get the job done. No bait-and-switch, just good old fashioned personalized service. Pat Townsley, The Loan Whisperer. 415-485-1776. http://www.ptre.net/

Citi Posts Profits; Will Banking Rebound?

The New York-based Citigroup reported first-quarter net income of $1.6 billion, after posting a loss of $5.11 billion in the period a year earlier. Revenue was $24.8 billion, up 99 percent. Hello. 99% in a quarter? Anyone? Wells Fargo also boasted record earnings in the first Quarter. How does a bank like Citi post "profits" when they've borrowed 3x from government TARP support? I guess we'll find out. The answer lies in the old statement "follow the money." So how do you get some of this money? This money that came from you; US tax revenue to support the banks in the form of government bailouts and now they're boasting of profits? My answer is to take advantage of the low 30-year fixed interest rates, generally running in the mid 4%s. Bank have to keep these loans on their books for 30 years at painfully silly long term rates. If you have thought about a refi or a purchase, when would Now be a good time? Pat Townsley, Mortgage Master. 415-485-1776. www.ptre.net

When does WaMu become Chase?

When does WaMu become Chase? Great question: It's happening NOW in phases. Right now, most WaMu branches in California have been re-branded to Chase, however, WaMu accounts in California won't actually transfer to Chase's banking system until October. This means the "mechanical processes" of your banking (loans, checking, deposits) are still being done at Washington Mutual, even if it "appears" to be Chase.
May through July, WaMu branches in Washington, Oregon, Idaho and Utah will be re-branded to Chase and accounts in these states will transfer to Chase's banking system.
This summer: WaMu branches in Connecticut, Florida, Georgia, Illinois, New Jersey, New York and Texas will be re-branded to Chase and accounts in these states will transfer to Chase's banking system, and in Fall 2009 WaMu branches in Arizona, Colorado and Nevada will be re-branded to Chase and accounts in these states will transfer to Chase's banking system.

It should all be pretty "seamless," noting that if you're trying to get a LoanMod or refi with either of these institutions, you're most likely going to have challenges. Confused? I can help; Better! Pat Townsley, sane mortgages for purchases and refinances. 415-485-1776. http://www.ptre.net/

How to take the STRESS out of your Tax Deadline

So, Uncle Sam comes calling once a year, and maybe this is the year you caught up and are rushing to get the forms in the mail. You're up. You can't sleep. You're stressed. You're screwing up the numbers and eventually you say "screw it" and might start getting sloppy. Errors can come back to haunt you ten-fold. Solution: File and Extension. Easy, Done. I'll tell you from experience: GET A CPA if you don't have one. The few bucks to have a certified and licensed professional doing your returns is WELL WORTH IT. Make sure they're license CPAs (enrolled Agents aren't the same and cannot provide security and support of a CPA). If you're looking for a CPA for your personal to large corporate returns, give Michele Hassid a call at Eckhoff Accountancy: 415-499-9400. As a business owner, I highly recommend her professional services. Get rid of the stress and go with a pro. Thanks. Pat Townsley

Spring Into Your New Home! Tax credit for YOU.

If you plan to buy your first home here in 2009, there may be a tax credit waiting for you. The government's "American Recovery and Reinvestment Act of 2009" authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a "primary residence" on or after January 1, 2009 and before December 1st, 2009. The tax credit is equal to 10% of the home's purchase price up to a maximum credit of $8,000. Are you eligible? Do you qualify? Feel free to contact me for more information on this tax play today. Who do you know who is looking to buy a home? Please send them to me at PTRE (dot net). Pat Townsley, Mortgage Broker. 415-485-1776. http://www.ptre.net/

Shout out to my Peeps

Ok, Ok. Thank you! Honestly. 30+ requests for more "Peeps" humor. Here's the season's last Peep image. Moving forward, this is a blog about me, you, your referrals and real estate financing. You're not alone on Easter Island! This week I'm looking for BUYERS for Single Family Residences in San Rafael. If you know anyone looking to buy in San Rafael, have them contact me to set up their financing (great rates for loans under $625,00) and I'll get you financed and hooked up with a great Realtor, Mark Machado. Together, we're your eyes in real estate. http://www.ptre.net/ and http://www.markmachado.net/. Broker #01234350. Pat Townsley: 415-485-1776.

Easter and The Apocalypse

It wouldn't be Easter without the Four Peeps of the Apocalypse. Ya know, 2007 and 2008 around this time I was saying "the worst is yet to come." Here in 2009, I'm starting to get a bit more optimistic. I'm not saying hundreds of thousands aren't going to get foreclosed upon, but I think the banks are positioned now to absorb a bit more trauma. We have some ER doctors on call at the banking level. Houses are priced well and many people are now able to qualify, so as we approach the days of resurrection and spring, perhaps we're turning a corner here. Of course, the Titanic also tried to turn...but it was too heavy and too fast to course correct. But let's keep it Positive: Focus on the opportunities. If you look, you will find. When you hear someone looking at real estate, hook them up with me at PTRE (dot net). Pat Townsley, Chief Economist to the Stars. 415-485-1776. http://www.ptre.net/

Loan Modification: Right, Wrong, Indifferent

Oow, my eye. So, what's the skinny on Loan Mods? There are a couple angles; none of which are easy or pretty...and only a handful are getting through. One way is to go right to your existing lender. The rub here is that if you're not in some form of default and/or hardship, they're not motivated because you pay on time. Solution: Default a couple months on your loan and see if they want to talk then. The Rub: You've hosed your credit, they might not play, they might foreclose on you. Talk about a punch in the head. Your other general option is to use a Loan Mod broker, who will probably in turn take it to an attorney who specializes in putting the fear of litigation to the banks and leveraging extortion to get your rate and/or balance lowered. Direct to the attorney or via broker, most have a $3000 to $4000 "refundable" deposit. The argument here is that if you had $4k, you wouldn't be needing a loan mod this month. Additionally, IF you fit the guidelines, it's another $3000 to $4000 to close the deal. Pick your poison. I'd rather be dragged through glass and rubbed in salt than broker loan mods. I'm all about the refi or purchase loans, but I'm here to talk. Pat Townsley, Banking Knowitall. 415-485-1776. www.ptre.net

Wells Fargo reports Record Earnings

SAN FRANCISCO, April 9, 2009 — Wells Fargo & Company (NYSE: WFC) said today it expects to report record net income of approximately $3 billion for first quarter 2009, or approximately $0.55 per common share after preferred dividends, including $372 million in dividends paid to U.S. taxpayers on the U.S. Treasury’s Capital Purchase Program investment. The Company will report its financial results on April 22, 2009. As a mortgage broker, I represent Wells Fargo on the wholesale side. As a wholesale broker, we get Wells rates at a discount as a preferred in-house product and discounted rates. They're strong, always have been a consistent player, and with Wells as one of my 75 wholesales institutions, I've got the best rates and program to fit your needs. Call today for a consultation: 415-485-1776. Pat Townsley, Broker. http://www.ptre.net/

Coulda Shoula Woulda

What's better?: Over promised and under delivered, or under promised and over delivered: The second of course. We call it "going the extra mile" or in my case, simply doing my job. I'm hearing people say that they're incredibly busy right now, busier than ever, but not making any money. We need to turn that paradigm around. I'm as busy as I've ever been, however, with fewer clients. Reason? Banks are so challenging to deal with right now and we're seeing increasing levels of credit fraud; "Dings" on people's credit that they know nothing about. So add credit repair to my list of services and I'm still just as busy, yet less productive, and in turn, I haven't gotten to my two important (or seemingly important) writing assignments. Those awaiting my series on "Interview with a professional" blog and podcast series will have to hang on just a little longer. My other writing project? Well, I should be writing, but I'm here, waiting for your call to help you with your real estate financing. Pat Townsley, 415-485-1776. www.ptre.net. Your referrals are appreciated.

Thinking About Interest and QuoteActions

I receive a daily "Quote Action" from a great company called Productive Learning (www.productivelearning.com). As I was trying to explain a certain interest rate to a current client and the advantage (in this case) of paying a point to lower the rate and payment, today's Quote Action came in. Beyond your usual "motivation/affirmation" type reminders, QuoteActions not only gives you a decent "quote" but they also take it a step further and recommend that you internalize the message in the quote by taking a specific action to making that quote a part of your day. Today's QuoteAction:

"There are no interest-free shortcuts. If you skip a stage in one way, you pay for it in another." Author, Peter Abrahams

Your action for today is to think about a project where you may be cutting corners, then do a thorough job instead.

--If someone forwarded you this message, and you would like to receive your own free subscription, click here.
--If you wish to have "QuoteActions" sent to your list of contacts, click here.


Remember, on top of getting a refi going, Tax day approaches. Need a referral to a CPA or Bookkeeper? I gott'em: Pat Townsley, www.ptre.net 415-485-1776

Moving Your Finances from Winter to Spring

Even though the economic seasons and generational seasons don't follow the Earth's four primary seasons during its 365.25 day annual axis cycle (the 0.25 adds up to Leap Year adjustment every four years), we are physically tied to the cycles of the planet; So now we're moving from Winter into Spring. We may associate spring with new life, growth, transitions, time for action, longer days. Business too can walk a fine line between the economic seasons. The US Dollar is in a precarious position and we're balancing on the leading edge. The choices you make now will impact the future financial seasons of abundance or scarcity. Mortgage rates have been going berserk the past few days with banks so backlogged, they're raising rates to slow things down. Add the lack of underwriting staff at banks and the increasing demand for mortgages, and you've got frustration for brokers and borrowers. Moral of the story; Take time to plan properly, set your expectations, be patient, and take time to smell the flowers while your new home loan secures your financial security. Pat Townsley, Mortgage Broker. 415-485-1776. http://www.ptre.net/

Words of Faith and Devotion

How do we counterbalance the bombardment of negativity? I always try to put a positive spin on a situation, like when $1900 was ripped from my banking account 3 days before Christmas to find my ATM Card wouldn't work as I was buying my holiday gifts; Perfect timing. I found out that the money was spent at a grocery outlet in Argentina, so, I've got to believe that someone got fed and the food was put to good use. Everyday we've got to surround ourselves with more "Positive" input. For myself, before the rush of daily mortgage lender rate sheets come in by the dozens and the trading floosr open, I read my inspirational "Quote Action" from Productive Learning Inc. Then, I get my visual moment of zen from my daily feed from the Yosemite Blog. If a challenge comes my way, I ask "How can I handle this and enjoy the process?" Each day, I set myself up to win; armed with positive affirmation and faith that I'm going to make the most out of the 86,400 seconds given to me today. I'll put my energy behind your financing and your referrals. Let's do some positive business and enjoy the process. Pat Townsley, Mortgage Broker. 415-485-1776. www.ptre.net

Economic Apocalypse: Cash Infusion = Worthless Dollar

How can I put this one lightly without pissing off either half my clients? As usual: Let's put Politics aside and CLICK HERE; It's a chart from the Federal Reserve here in Q1 2009 presented by Glenn Beck. Again, take off your political hat, have a sense of humor on the Fox-delivery, but look at this chart (this video has been emailed to me from friends both Left and Right, so something is striking a chord here). The infusion of cash into the system is one of the hot-button issues I've been warning/blogging about for some time. Add government "buying" US banks, increasing unemployment, an unprecedented generational occurrence called "The Boomers" and we've got some real challenges. Armed with only this video, please, take chart data and do your own research. It's coming. How will you be prepared? Do you remember my 2006 and 2008 postings on Fourth Turning and subsets of the Kondratieff Wave research? These forecasting models hit right on time and only a few were prepared. Do take a look at this clip from Glenn Beck. Have fun with the delivery, but do your own due diligence on the math and logic behind the chart and come up with your own conclusions. One last thought: What if OPEC decides to move from the US Dollar to the Euro as the medium of exchange? Thanks to everyone in my social network who sent in this video and other ongoing financial opinions. Left, Right or indifferent, the Chart itself is derived from real data.

Keep The Change!

Change. It's what we all want, right? It was the slogan for the new president, it's what so many want socially, it's what we want environmentally, it's what the homeless are asking for on the street corner, it's what banks often say that you can keep. So, just be careful what you ask for. In the world of banking, there are two sides of the fundamental scales of service: Savings and Loan. Bank loan money (through, say, a broker like myself). Banks also want you to deposit money (savings, CD, money market, investments). The catch is: The cogs and gears are all jammed up. Banks aren't making enough spread on their money, so they're making a LOT of it up in FEES, or in this case, let's call it CHANGE. To increase income, banks are increase NSF fees, transfer fees, early termination fees, ATM fees, bounce check and stop-payment fees. So, check your statements, fight the system, make sure the Change in your bank is Change going into your account. Don't get killed on Bank Fees! Tip of the day. That's my two cents. Make sense? Everything counts in large amounts. http://www.ptre.net/

New High Balance Conforming Loan Limits

Conventional Residential Home Loans: That's my bread and butter. One and two unit properties are what I've focused on over the past 15 years. The Fed raised "conforming" loan limits from a max of $417,000 to $725,500 which ended in December of 2008 as part of the stimulus package. This number varied from city, county, region (depending on the median values of the area). So this 725k number was really the max. However, when legislation was passed, they kinda forgot to ask Fannie and Freddie about it...so it took a long time to actually institute these loans. Now, come Q1 of 2009, they dropped the limit to a max of $625,500, and of course, Fannie and Freddie are "backing" these 30 and 15 year fixed loans, and now, new stimulus is moving the limits back up to the 725k mark again...but again, the plan versus the execution is the challenge. Bumps in the road; programs always changing and banks charging more fees. You can't read fast enough to keep up with it all, so, if you're on the fence, may I recommend that you climb down for a minute, give me a call and let's run some numbers. Get it rolling and we'll lock on the dip.
Pat Townsley: 415-485-1776. Broker #0123435. www.ptre.net

Life, Economy and The Power of Positive Thinking

Ever watched a movie more than once? Maybe more than two or three times? Why? Probably because you enjoyed it and it gives you Certainty that you're going to have repeated good feelings from it. After being tortured with the continual economic news and subsequent self-fulfilling prophecies, I need that "good feeling" to make my day an inspiration to others. So I've just re-read "The Power of Positive Thinking" by Norman Vincent Peale. It's a classic. Many tales of old inspiration that still hold true today. What you focus on is what you attract, and thoughts become things. If I can be an inspiration to my friends, my family, my coworkers, my employees and my clients, it just may rub off. It's better than the alternative. Life's too short to focus on the negative. Shit happens; How you deal with it is up to you. Why do we fall? To get up again! I'm the guy who keeps getting up again. Every day, you are given 86,400 seconds. How will you use yours today? With a smile, I hope. Keep fighting. I'm an advocate in your corner. Need a sympathetic ear? Let's work it out. Pat Townsley, California Mortgage Advisors. Licensed broker in all 50 states (but let's do some business here in our back yard! Your referrals are appreciated.

Jessica Simpson, Chelsie Hightower, Kelly Clarkson and the The Fate of the World

One of these things is not like the other. Bury your head in the sand, information over-load, detachment from what we perceive to be "reality." The first three in the heading here are the this week's most popular web searches by visitors to Yahoo. So, maybe Yahoo attracts a more "pop culture" user. At the bottom of the list: Foreclosures. Not Job Search, not Unemployment, Not Government Stimulus, not the Economy. Interesting. It's easy to get distracted, to procrastinate, to hope it's all going to get better. Sure, maybe there is nothing you can do to save the world by yourself, but you can at least work on saving yourself. If it's escaping to La La Land to find out pop culture, well, there goes the country. If it's to focus and save yourselves, your home, to get ahead and take advantage and take action in turbulent times: When would NOW be a good time to start talking with some advisors. Or, tune out, buy a Snuggie or a Flowbie and veg-out to someone esle's life on the network. If you don't plan, you'll be part of somebody else's plan. Let's talk about where we go from here with your financial future and security. Pat Townsley, California Mortgage Advisors. 415-485-1776. www.ptre.net

Riding Out The Storm

Was it REO Speedwagon who sang about "riding out the storm?" That would make each on of us Riders on the Storm. Even though Morrison didn't make it, we can. Back in early 2008, got some negative comments where I said "In 2009, we're going to be in a Depression, begging and looking up for a Recession." There are those who said we'd never get into a Recession. So, I won't bang my drum about being some special forecaster; Lord knows I've blown a half million bucks the past year and "crapped out" on the financial craps table of life. So, what can YOU do now? PREPARE. Brace. Fortify. With unemployment at its worst since 1947 and the markets down and values falling and markets grinding to a global stop, we haven't seen the end of this. We may be at the quarter-way mark. It's all cycles and trends; it just sucks to be in the valley right now. For those who can: LOCK-IN your 30-Year fixed rates NOW. Get them going. For the Jumbo players, Get into at least a 5-year interest only loan (that's the only rate that makes sense on Jumbos right now). DON'T leave yourself in an adjustable situation. The rubber band will snap on rates and it will be too little too late. Gett'er done now: Pat Townsley; Mortgage Broker. http://www.ptre.net/. The next set is coming in, so line-up, outside break, get ready to ride the next wave.

Interview with a Professional coming to PTRE

I'm going to start a weekly "Interview With A Professional" series that I'll be posting to my WordPress site. I'll be including two of my top credit people including the Identity Theft agent from a previous blog, a credit repair specialist, and a contact from a reporting bureau. I'll also be talking with Realtors, CFPs, Attorneys, Loan Modification brokers, Headhunters, CPAs, solid business associates of mine that I know are a wealth of knowledge. My goal is to keep you informed and give you additional referral/reference sources to protect your your assets and life, help you get motivated and networked. Food for thought. Be looking for Interview With A Professional" coming soon to http://www.ptre.net/. In the meantime, contact me with any questions. Pat Townsley, Advisor to the star. 415-485-1776. http://www.ptre.net/

Credit Fraud: A hot button topic

Wow: Lots of responses to my posting on credit fraud last week. As a Mortgage Broker, I've seen thousands of credit reports and have had a high level of success helping clients improve their scores, finding errors and ways to fix them. It is getting more difficult. Right now, I see three primary ways people are opening themselves up to getting hosed:
ONE: Not Shredding documents (bank statements, checks, etc). TWO: Using un-secure sites for online purchases.
THREE: Not using best practices for mailing out checks or sensible credit card run receipts.
Crime is on the rise. Use your brain. If mailing a check, put it into a secure blue post box or in mail center; Don't leave it with "flag up" in your front yard. In the meantime, contact me with any questions. Pat Townsley, Advisor to the star. 415-485-1776. www.ptre.net

1 in 5 Homeowners Underwater: What to do

The map here shows the Lay-off Hot Spots nationwide. Red being high, white, not so bad. So, who wants to be a 'red state' in this map? Stats are indicating that 1 in 5 homeowners owe MORE for their homes than they home has Value. We call this being Upside Down or "underwater." Not a comfortable place to be. Add that to the unemployment and there are several word starting with the letter F that come to mind. A bank that begins with the letter W predicts that by the end of Q4 2009, 34% of all of their current loans in their bank will be in foreclosure. That's probably a bit high to pad shareholder's positions when the number comes in at a similar 1 in 5, but that's still 20% of the country upside down and/or and additional 20% in foreclosure. Long story short: Stick it out as long as you can. See counseling on many levels, and get multiple opinions from objective professionals. And lastly, try to find something positive in the mix. Focus on what's good in your life. Keep your faith high; This is the beginning of when we're going to need it most. Need counseling. I'm here to lend and ear. Pat Townsley, Mortgage Veteran of a Thousand Psychic Wars. 415-485-1776. www.PTRE.net

Capital One buys Chevy Chase

Over the past decade, one of my favorite mortgage lenders was Chevy Chase Bank. I always envisioned Chevy Chase with a loan file tripping into chairs and papers flying, or Ty Webb with Danny on the golf course at Bushwood. But Chevy Chase Bank was a serious player; They basically had their own money, had some nicely priced ARM products, a great local rep (Amy, I hope you're doing well), and decent, sensible underwriting. But like so many, Capital One recently acquired Chevy Chase. Another lender in the Implode-o-meter. Perhaps Capital One wants some access to Government "TARP" funds so adding additional banking to their portfolio will help get some. Washington Business Journal stated "Capital One Financial (NYSE: COF), one of the nation’s largest credit card issuers, only recently entered the retail banking industry with bank acquisitions in New York, New Jersey, Texas and Louisiana. It posted a $1.42 billion fourth quarter loss after boosting reserves to cover bad loans. It's a mad mad mad mad world. With High Risk can come High Returns if the notes are good. Need good advice on where to take you real estate financing: Come to daddy: Pat Townsley, Mortgage Broker. 415-485-1776. King of research. www.PTRE.net

Stolen Goods and Identity Theft: You're next!

This morning, my wife found that her car was broken into last night and her iPod docking station was stolen and the glove boxes opened (it was a fast, smart, tech-gear oriented lift). SAPD noted several cars had been hit the same night. Now, sure, we live is "safe" San Anselmo, so the point here is to "Lock your car doors" and start locking your house. But it doesn't stop here: As the economy declines, more jobs lost and depression is in air, Desperate times call for Desperate Measures: In short, we see CRIME INCREASE. The point-in-case theft (above) in our community is NOTHING compared to the ever-expanding world of International IDENTITY THEFT. You really have NO IDEA how much of your information is at large. This evening I attended a San Anselmo Chamber of Commerce presentation featuring State Farm agent Kris Kelson plus Identity Theft expert John Taylor. I HIGHLY recommend that you reach out to John Taylor (click here to email him) and get informed. The threat is real, the solutions are available. Protect your ass...ets. You can also call John Taylor at Taylor and Associates at 415-454-3977 for a consultation. In the meantime, rest assured that California Mortgage Advisors has always had measures set in place to safeguard your personal information. Your loan and data is safe with me: Pat Townsley, Mortgage Broker. 415-485-1776. www.ptre.net

The Carrot or the Stick?

The Carrot or the Stick... sometimes known as The Carrot AND the Stick; Basics of human psychology and life: Pleasure or Pain. Sometimes the pain of FEAR (False Evidence that Appears Real) paralyzes people. This paralyzing (complacency) seems safe, therefore, no pain. Conversely, they also know if they don't take action, they'll face Pain of loss of not trying, not doing their best, not taking the chance or taking charge of their own actions towards exceptional opportunities. Who's going to come out of this Recession ahead? Those who sit in Fear, or those who step up here in 2009, make the bold moves, make the investments in markets, new businesses, in education; those who work harder and go the extra mile will receive the carrots. So, while you sit on the sidelines, straddle the fence, know that I'm working harder than ever to make 2009 the best year ever, securing my future, my family's future, and for the future of my clients and friends as Your Mortgage broker. Pat Townsley, moving up. www.ptre.net. Let me help make your 2009 the Best Year Ever.

Giving it away: Sleepy Hollow Home for Sale on Butterfield!

981 Butterfield Road, San Anslemo CA, MLS Listing # 20903596 with Listing Agent John Vantress with Bradley RE in San Anselmo. I know this house Intimately, and it's on the market for a song; Probably the best value in all of Marin County. I hate to see it on the market and hate that I'm personally not able to swoop in and pick it up right now. If you know anyone looking for the best school district, great house, pool and privacy; Here it is. Need to finance it? Contact me. Do you want to preview it? HURRY UP and take action! This beauty is priced to move! If you need a referral to represent you as a Buyer, please contact me as well. http://www.ptre.net/

Lessons from Legos; Keep moving forward

I've had some down-time with the family the past week, intertwined with emails and Facebook postings from friends and business clients where, perhaps it's "post-election blues" where there was all this expectation of immediate change and hope...and now that the hype is over, everyone is just; BLAH. A Blah added to winter, rain and econmic blues. So, Richard (my 7-year old) is building a house from Legos last night. He turns proudly and says "Mommy, Daddy, check out my...." and as he turns, the whole Lego house wall falls off and the foundation drops and the whole thing ends up on the floor in a pile. The result was frustration, tears, "I don't want to build another one," "this always happens." So, in my infinite wisdom, I sit down and simply re-start something else supercool. He slowly re-engaged in the building of the new project, and I calmly explained the old "pick yourself up by your bootstraps" and just keep going. Because, in the end, what else it there? Life is simply learning and relearning. So, pick up the pieces, get a plan, get busy, and Keep Moving! Motion creates Emotion. Wanna talk about it? Let's talk: Pat Townsley, mortgage and Lego therapist: www.ptre.net

Inflation Cometh, Oh Yes, Brace for impact

It's gonna hurt later than sooner: Ladies and gentlemen, please put your tray tables up and return your seatback cushions into thier upright and locked positions; We're NOT in for a soft-water landing. This goes back to the old statement "be careful what you ask for." Look, the massive infusion of funds into the US economy is only a bandaid. It is NOT the cure to the cause. Remember your Greek mythology: Cut the head off the Hydra, and two grow back in its place. Such is true in the short term stimulus package here. In two years, maybe up to five (but I'm taking the "under" in this bet)...we're screwed. Interest rates WILL BE back in the double digits; 12 to 16% rates on loans will not be a surprise. Remember when the Dow would change 400 points in a day and it would be in 6000 point font on the newspaper? Today we have 800 point swings in a day and it lands in the classifieds on page D-7. Unemployment; Half Million jobs lost; sweep that under page C-3 under the local murder story. Folks. Conspiracy theories abound, but it is COMING. Learn from your history. For over 24 months I've been blogging on the forecasts; and they've been dead on with the exception of ONE rate cut miscalculation. Infusion of cash will fix a few roads, repair some buildings, buy some government office furniture...but the so-called "pork" of what is coming is a slaughterhouse. This won't be a soft water landing in the waterways of NYC, this will be Flight 800. Lock in your rates now. http://www.ptre.net/ Pat Townsley, Agent to the stars. 415-485-1776.

California Financing Takes Another Hit; "ING BANK"

Yikes, as predicted, the ripples will continue in the world of Real Estate Financing. Today, ING Bank announce effective immediately that they will no longer consider 2nd homes, interest only loans or any incentives for "really good" loan to values. What does this mean to you? Simply adding fuel to the trend analysis that real estate financing is getting MUCH HARDER so you must ACT NOW if you want to refi or buy. So far, we've lost the big boys: WaMu, Chase, jumbo loans at Wells, and now ING showing signs of fears and doubt. The government package ISN'T going to save you and pump money into consumer's hands. Just because we have a new president doesn't mean the wheel of fortune will be lubricated and money is easy. Quite the opposite. Change takes time, and the perception of fear is a killer! So, Buckle-Up and Honker-down...but look at the facts, get the real data, make your own informed decision. Don't dream up shit that hasn't happened, but prepare yourself for it instead "I have been through some terrible things in my life, some of which actually happened." Writer, Mark Twain. Let's talk. Pat Townsley, Broker. www.ptre.net 415-485-1776. Real rates, real service, real person for today's real estate.