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Louis Swanepoel - General Mortgage Corporation

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General Mortgage Corporation, established in 1983, is one of San Diego's leading residential mortgage lenders. It has a company philosophy and business style based on providing the best loan production platform for the best loan agents, and giving quality home finance service to its customers.

General Mortgage is highly respected by both customers and industry associates alike, and its efficient home financing business practices and quality lending service make it the thriving company it is today. In addition, the company is currently integrating advanced state-of-the-art computer technology to address the opportunities of the 21st century home equity and financial environment.

The company has established itself as an independent brokerage and direct lender, ready to serve real estate professionals and their residential real estate clients with a large spectrum of loan products along with the ability to close loans quickly.

Now with three San Diego locations and nearly 150 loan officers, General Mortgage does a high-volume of loans - more than $ 6 billion since its inception - which gives consumers more competitive pricing on home financing. The business works with agents to market property, and can provide all types of home financing programs to bring in more buyers. It all adds up to better home loan options for customers and real estate professionals. General Mortgage Corporation

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Address:	General Mortgage Corporation 9988 Hibert Ste., #100 San Diego, CA 92131
Local telephone: Fax:	858.602.9342
Email:	LSwanepoel at san.rr.com
Website:	www.LouisSwanepoel.com

Wading Through the Mortgage Mire

By Sheryl Landrum, General Mortgage Corporation Staff Writer

Qualifying for a home mortgage used to be relatively easy. Borrowers made an appointment with their lender, provided documentation of income, a 20% down payment, closing costs, and proof of their ability to make a house payment that was generally less than 32% of their gross income. Homeownership rates began to climb in 1995, rising from a relatively stable rate of 64% to an all- time high of 69% in 2004. What changed these percentages? In order to encourage more homeownership, the government applied innovative lending policies that eased lending restrictions, lowered interest rates, and made it unnecessary for borrowers to have a down payment. Lending became a free for all. Good sense and solid lending practices parted ways. The mortgage industry, as well as our economy, crashed.

What happened next? New government policies were put in place to protect borrowers and investors from themselves. Conforming loan limits were raised, loan to value limits were lowered, and many lending programs disappeared. But is this really the case? Are there any incentives to borrow left and where do you find help to wade through current mortgage legislation?

Conforming Loan Limits vs. High Balance Conforming Loans

Prior to 2008, the conforming loan limit was $417,000. Loans over that amount were called jumbo loans and carried interest rates that were generally 1/2-1% higher than conforming loans. In order to assist borrowers with high balance loans, the conforming loan limit of $417,000 was raised in 2008 to $725,750. The current conforming loan limit is $625,000 in high cost areas such as California, down from the high of $729,750 in 2008. Government loans such as FHA and VA still have a conforming loan limit of $417,000. Did a higher conforming loan limit equate to lower interest rates? No. Borrowers who now want a home loan higher than $417,000 will find that they now are put into "high balance/agency jumbo" mortgages that offer interest rates 1-2% higher than those of a standard conforming loan.

Loan to Value Ratios: Have they been Raised?

For non-government lenders, the answer is loan to value ratios have been lowered. Fear of more mortgage defaults have had most lenders require a lower loan to value than what needed in the early 2000's. However, high value loans are still available through government programs such as VA and FHA and borrowers can borrow up to 105% of the value of the home.

Are There Optional Mortgage Programs to Choose From and Incentives to Borrow?

Many loan programs of the late 90's and early 2000's have gone by the wayside. However, as mentioned, government backed loans have seen resurgence in popularity. Conventional lenders still offer 15, 30, and 40 year loan programs, as well as interest- only ARM's. The number of loan programs has dwindled and lenders have tightened restrictions on programs as well.

There are some good incentives for homeowners today. Recent legislation has offered up to $10,000 in tax credits for new homebuyers or for those who have not held homeownership in the past three years. This incentive applies to purchases from March 2009 through March 2010.

To find how you can take advantage of today's mortgage market and wade through current mortgage legislation and programs, talk to your General Mortgage Corporation loan officer today. General Mortgage has over 25 years of experience in San Diego and is San Diego's # 1 local lender. General Mortgage stays on top of current lending legislation and can help you wade through the mortgage mire saving you time and money.

Call General Mortgage Corporation today at 888-422-5546.

REVERSE MORTGAGES

Washington House Bill H.B. 1311 creates the Washington state reverse mortgage act

"A 'reverse mortgage loan' is defined as a nonrecourse consumer credit obligation in which: a mortgage, deed of trust, or equivalent consensual security interest securing one or more advances is created in the borrower's dwelling; the broker or lender is licensed under Washington state law or exempt from licensing under federal law; and any principal, interest, or shared appreciation or equity is due and payable, other than in the case of default, only after: (1) the consumer dies; (2) the dwelling is transferred; or(3) the consumer ceases to occupy the dwelling as a dwelling."

"Reverse mortgage loans are exempted from the compounding interest prohibition and the billing and interest calculations of the CLA. Two categories of reverse mortgage loans are created: a 'FHA-approved reverse mortgage' is defined as a 'home equity conversion mortgage' or other reverse mortgage product guaranteed or insured by the federal Department of Housing and Urban Development (HUD); and a 'proprietary reverse mortgage loan' is any reverse mortgage loan product that is not a home equity conversion mortgage loan or other federally guaranteed or insured loan."

A licensee offering proprietary reverse mortgage loans must: maintain letters of credit in an amount necessary to fund all reverse mortgage loan requirements or $3 million, whichever is greater; and maintain a minimum capital of $10 million. A licensee may rely on the capital of a parent entity if the parent (1) has a net worth of at least $100 million and (2) provides a binding written commitment to the licensee to make a minimum of $10 million available to the licensee.

Addition requirements can be found in the summary located at http://apps.leg.wa.gov/documents/billdocs/2009-10/Pdf/Bill%20Reports/House/1311%20HBA%20FII%2009.pdf and HB-1311 can be found at http://apps.leg.wa.gov/documents/billdocs/2009-10/Pdf/Bills/House%20Bills/1311.E.pdf

Are Online Discount Lenders Giving You a Deal?

By Sheryl Landrum, General Mortgage Corporation Staff Writer

On-line lenders are a bit scary. Who is regulating them? Do these lenders employ mortgage educated and licensed loan officers? Is there any recourse if the home loan goes bad or is misrepresented? Can they close the deal? Here’s what you need to know before applying for a home loan with an online lender, or to any other lender or mortgage broker as well.

Banks and credit unions may employ non-licensed loan officers to work with them whereas brokers and mortgage brokers with in-house lending capabilities will employ only DRE licensed loan officers. The benefit of having a licensed loan officer is that they have had to pass mandatory course work on mortgage and lending, taken and passed a state licensing exam, and have successfully passed a background check as well. These loan officers are also regulated by the DRE, the California Department of Real Estate, and must keep their education and license in good standing in order to sell mortgage loans. If you have a problem with your mortgage loan, you also have recourse through the DRE. These loan officers and the companies who employ them want to protect the investment they have made and work hard to stay in compliance when doing a home loan; and, they also generally have a physical address in which to reach them. If you are considering working with an online lender, make sure you know how to reach them and check their status with the DRE or the state governing body if they are outside of California. Remember, any loan officer you work with is required by law to give you a Good Faith Estimate and a Truth-in-Lending Disclosure within three days of your signed application. These two documents will give you the details, and a good estimation of the costs, of your new home loan.

Licensed loan officers, and reputable lenders, take your home loan seriously and want to retain your goodwill and future business. In a time of tightening underwriting guidelines and longer close times, don’t put your mortgage in the hands of a loan officer who isn’t a knowledgeable professional and who may jeopardize your home purchase or refinance. The true savings with your new mortgage isn’t just about money, it is also about having confidence in your lender and the assurance that your loan will close on time and at a competitive cost and rate. You don’t want to work with a loan officer or lender who doesn’t value this as you do.

Address:
General Mortgage Corporation
9988 Hibert Ste., #100
San Diego, CA 92131

Local telephone:
858.602-9342

Email:
lswanepoel at gmloan.com
Website:
www.LouisSwanepoel.com