Contractual Assent . . . and a Veto Power To successfully change the closing date of a home sale, which of the following must agree? A. The Buyer. B. The Seller. C. The Buyer’s lender. D. The Buyer’s title company. E. The Seller’s title company. F. The Realtors (Listing agent and Buyer’s agent). Answer: all...Read More
What’s in an Adjective? A LOT It may seem like a subtle distinction, but home sellers are a LOT safer billing their “new” Kitchen as simply “newer.” The difference? Buyers purchasing a new Kitchen might reasonably expect to see paid receipts. So might the appraiser representing the Buyer’s lender, once the deal advances from inspection...Read More
“Hello, Mortgage Loan Department? Can I Please Speak to a Human Being?!?” “Big companies and start-ups are beginning to use learning software in higher-stakes decisions like medical diagnosis, crime prevention, hiring selections and loan approvals. The idea is that an A.I. turbocharger can be applied to all kinds of decisions, making them smarter, fairer and...Read More
Allowing Enough Time Test your knowledge of the residential mortgage process, and answer the following question: For lenders underwriting a mortgage, what is the key date in a transaction? A. When the Purchase Agreement is finally accepted (it’s officially a “done deal”). B. When the Inspection Contingency is removed. C. The Written Statement deadline specified...Read More
From Steep Premium to Discount In the wake of the 2008 Financial Crash, rates on jumbo mortgages (over $417k in most parts of the country) skyrocketed to 7% or even higher. Assuming you could find one. Fast forward to Fall 2015, when jumbo’s can now be had for as little as 3.75% — a slight discount to...Read More
Portfolio vs. Securitized Mortgages OK, so that’s not exactly how the Alexander Graham Bell quote (headline above) goes. But, it applies — sometimes — to mortgages. Specifically, there are numerous situations where what’s called a conforming, “conventional” loan — intended to be re-sold (securitized) on the secondary market — isn’t feasible, but a “portfolio” loan held by the...Read More
