When I was younger, I could not wait for Christmas. In fact, it was that way for any holiday, special event or trip. I would count down the days, focusing solely for the event to arrive. The anticipation would almost get the best of me. In fact, I have often said that when God was passing out patience, I was double fisting it in the sarcasm line! Patience most definitely has not been my best virtue.
I have often thought that my desire to have things now, may be closely tied to my drive and determination in my professional career. Sometimes I feel that I work as hard as I do because I don't want to have to wait for the results that I desire. I want things the way that I want them...and I want them NOW. The down side of this is that I am my own worst critic. I often condemn myself for not accomplishing enough, fast enough, or good enough.
I say this because this past week officially marked my "hump day" of chemotherapy. I am at the halfway point of the 16 week treatment protocol. I have to admit it has been difficult sometimes to view this halfway point as the "glass half full" and not the "glass half empty."
I have been anxiously awaiting this week as I was able to get an MRI to check the size and status of the tumor. As much as I tried to not let my impatience get the best of me, there was in the back of my mind, a slight hope that miraculously the tumor would be gone and I would be able to finish chemo early and quickly get back to my former life.
I got the call Friday afternoon from my doctor with the great news was that the tumor had responded to chemo and had shrunk in size. In fact, it had shrunk a full...centimeter.
As elated as I should have been, my annoyance was palpable. This tumor is over 5 1/2 INCHES in size and after 8 weeks of misery it only shrunk 1 centimeter! Really?!? Come on…couldn't you have given me at least an INCH? I have been through 8 weeks of chemo; I took all the medicines, endured all the side effects, and worked hard to get through this...for a centimeter. I have spent hours thinking about that centimeter this weekend. How could a centimeter be worth all of the struggles that I have withstood so far? Once again, my lack of patience has emerged and with it came the unconstructive attitude about my current circumstances.
On Saturday morning my mom called to find out if I had heard anything from the doctors. I had been so disappointed with what I had heard that I had not let anyone know. When I told her the results, I was taken aback by her substantial relief she felt to know it was “good” news. Her daughter’s cancer had in fact stopped growing.
In my haste to think it was not “good enough” news, I had missed that fact that it still was good news. This centimeter that initially seemed so insignificant to me really was substantial. The centimeter will give my surgeon enough margins not to have to cut into my chest wall to eradicate the tumor during the mastectomy. The centimeter indicates the cancer responded to the chemotherapy enough to eliminate the concerns the doctor had of the further spread of the cells. One small centimeter meant the tumor was not increasing...and my chance of seeing my children grow up was. How could I have missed the substantial impact of that centimeter?
My impatience for challenges often blocks my vision of how it takes the small things to overcome the overwhelming obstacles we may face. How many times have I overlooked these small victories that would keep me motivated to accomplish the much bigger goals I have in mind? How many times did I not do those small seemingly insignificant things that would have led me to the greater reward?
We all face challenges in our lives. They come in many shapes and sizes. They may be personal or they may be professional. I hope this week you have the opportunity to recognize your own “centimeter” and can realize the significance of whatever small triumph you may have as a step toward your greater success. Remember as Vincent Van Gogh once quipped, “Great things are done by a series of small things brought together.”
Have a great week!
Monday, July 4, 2011
Monday, June 6, 2011
Getting Through It Versus Getting Over It
What a challenging market! It is TOUGH! Each day that I start to think things are going my way, it feels as though I turn a corner and BAM!! I run smack into the next challenge that I didn't see coming. If it is not an underwriting issue, it is a property issue. If it is not a property issue it is a disclosure issue, but worse than that, when I lift my head up, I see the avalanche of issues just prepped to fall. I am sure that my thoughts are just as everyone else, "I really wish we would get OVER this crap and get back to normal!"
But as I sit here preparing to leave Lake Tahoe after an amazing weekend supporting my husband, PJ, in his 100-mile bike ride around Lake Tahoe as part of the Leukemia and Lymphoma Society's Team in Training Program, I have been thinking about the day's events for the 2400 participants and the thousands more there to lend support.
I have had a lot on my mind this past week and today is no different. The week has taken a significant toll on my physical health, but an even bigger impact on the emotional side. My morning began at 6:20 am as I pinned the race number, #3, on the back of PJ's bike jersey that had already been emblazoned with puffy paint to say "FOR AMY." The fact that he was #3 was significant, because that meant that he was the #3 fundraiser nationwide for this ride. This man along with many others on his team had spent months preparing for, training and fundraising for this event that was to raise money and support cancer awareness. This was his day and I was so incredibly proud of him.
But his day was just beginning. He had not yet embarked on the 8 1/2 hour ride that would take him up mountains and rough terrain, down valleys and through long stretches of highway and all of this in pouring rain. He was nervous, but excited and ready to get this journey rolling. He told me, "I look forward to seeing you at the next stops, and make sure to really cheer for people up "Spooner Pass" because that is really tough then I can't wait to see you at the finish line." And off he went.
So I spent the day with my girls and my nanny in the car driving around the lake watching all of these riders struggle from one degree to another to accomplish a very difficult goal they had set for themselves...to get over this challenge and cross the finish line with bragging rights to say they have done a "Century" ride.
But for me it was so much more than that, it was watching my girls stand by the side of the road yelling "Go Team!!" "We Love You." "Keep Going!" "We Are So Proud of You" as these riders whom they did not know looked over with huge smiles and waved and although dead tired and physically exhausted they continued on over the next pass.
It really hit me how committed these riders were to the journey. Some had pictures attached to their handle bars of a loved one who suffers or has succumbed to cancer to remind them why are putting themselves through this struggle. One guy had a sign attached to his bike that said "I Survived Because of YOU!" referencing the efforts of all of these riders and fundraisers. Then there was "LUCY FOR LEUKEMIA." A 76 year old breast cancer survivor, widow, who was not just completing this ride, but would earn her "triple crown," for completing a triathlon, a marathon and finally a century bike ride. Did I also mention that she wore the #7 race jersey? What a committment to a tough journey!
The most amazing fact for me was watching my husband ride across the finish line, not drained and wiped out from the exhaustion, but sitting straight up arms in the air holding a picture of me and a list of many names of others that were being honored by his ride. I was shocked not to find bugs in his teeth for the size smile he was sporting. When I got to him and asked how he felt, he told me of the different challenges he faced throughout the day, the cold, the elements but then he looked at me and said, "But man it was a GREAT RIDE!"
It brought me back to my very difficult week. A week that began with the horrible effects of chemotherapy, constant nausea, incredible body pain and yes, what I had been dreading...the hair loss. Throw on top of that the end of another month with it's share of difficult loans, constant pressure of often unreasonable deadlines and rules and regulations that never seem to stay the same. I won't lie, there were several moments where I told PJ I didn't want this journey...it was too hard. I JUST WANTED IT TO BE OVER!
But then I turned the corner and I heard my own cheerleaders shouting out, "Go Team! Come on Mom you can do it! You are almost there Amy. We love you!" These weren't shouts on the street, but they were in every email, every phone call, every hug from my kids, every facebook message, every referral and every dollar donated to PJ's fundraising. Please know that although I have not been able to personally respond to every one, they are what gets me through it. On my mountain climbs...when I get the comments, when I get your referrals, when I hear that I am in your prayers...that is what makes the journey for me. I CAN GET THROUGH IT.
One particularly tough day, I remember holding an ice mask over my eyes to control the headache and thinking, the only way to get over this is to just get through it. I have to learn to recognize the journey.
But so can you. This business is tough and it is going to get tougher. There are so many roadblocks that are going to get in your way, but that is just your journey. Each day the challenges that you face in our business may seem like it is going to knock you over, but that is when you make sure you are prepared...do you work with a team that supports you? Is your time spent educating yourself so you can educate your customers to navigate through this insanity? Do you remind yourself daily why you got in this business in the first place, and if so are you doing those things that you love about our industry? I want to be your cheerleader to get you through those tough stretches along the ride! So "GO TEAM!" You CAN DO IT!
Let's get through this journey together. Greg and I look forward to working with you! And fortunately we will never go back to normal, because normal has changed and we want to help you help your business adjust. In fact CLICK HERE for a DON'T MISS event that every industry professional should attend.
I also have a selfish reason for inviting you to this event as well...I need all the support I can get to show the world that I can ROCK BALD! Ha Ha!
Thank you again for your continued support and referrals!
But as I sit here preparing to leave Lake Tahoe after an amazing weekend supporting my husband, PJ, in his 100-mile bike ride around Lake Tahoe as part of the Leukemia and Lymphoma Society's Team in Training Program, I have been thinking about the day's events for the 2400 participants and the thousands more there to lend support.
I have had a lot on my mind this past week and today is no different. The week has taken a significant toll on my physical health, but an even bigger impact on the emotional side. My morning began at 6:20 am as I pinned the race number, #3, on the back of PJ's bike jersey that had already been emblazoned with puffy paint to say "FOR AMY." The fact that he was #3 was significant, because that meant that he was the #3 fundraiser nationwide for this ride. This man along with many others on his team had spent months preparing for, training and fundraising for this event that was to raise money and support cancer awareness. This was his day and I was so incredibly proud of him.
But his day was just beginning. He had not yet embarked on the 8 1/2 hour ride that would take him up mountains and rough terrain, down valleys and through long stretches of highway and all of this in pouring rain. He was nervous, but excited and ready to get this journey rolling. He told me, "I look forward to seeing you at the next stops, and make sure to really cheer for people up "Spooner Pass" because that is really tough then I can't wait to see you at the finish line." And off he went.
So I spent the day with my girls and my nanny in the car driving around the lake watching all of these riders struggle from one degree to another to accomplish a very difficult goal they had set for themselves...to get over this challenge and cross the finish line with bragging rights to say they have done a "Century" ride.
But for me it was so much more than that, it was watching my girls stand by the side of the road yelling "Go Team!!" "We Love You." "Keep Going!" "We Are So Proud of You" as these riders whom they did not know looked over with huge smiles and waved and although dead tired and physically exhausted they continued on over the next pass.
It really hit me how committed these riders were to the journey. Some had pictures attached to their handle bars of a loved one who suffers or has succumbed to cancer to remind them why are putting themselves through this struggle. One guy had a sign attached to his bike that said "I Survived Because of YOU!" referencing the efforts of all of these riders and fundraisers. Then there was "LUCY FOR LEUKEMIA." A 76 year old breast cancer survivor, widow, who was not just completing this ride, but would earn her "triple crown," for completing a triathlon, a marathon and finally a century bike ride. Did I also mention that she wore the #7 race jersey? What a committment to a tough journey!
The most amazing fact for me was watching my husband ride across the finish line, not drained and wiped out from the exhaustion, but sitting straight up arms in the air holding a picture of me and a list of many names of others that were being honored by his ride. I was shocked not to find bugs in his teeth for the size smile he was sporting. When I got to him and asked how he felt, he told me of the different challenges he faced throughout the day, the cold, the elements but then he looked at me and said, "But man it was a GREAT RIDE!"
It brought me back to my very difficult week. A week that began with the horrible effects of chemotherapy, constant nausea, incredible body pain and yes, what I had been dreading...the hair loss. Throw on top of that the end of another month with it's share of difficult loans, constant pressure of often unreasonable deadlines and rules and regulations that never seem to stay the same. I won't lie, there were several moments where I told PJ I didn't want this journey...it was too hard. I JUST WANTED IT TO BE OVER!
But then I turned the corner and I heard my own cheerleaders shouting out, "Go Team! Come on Mom you can do it! You are almost there Amy. We love you!" These weren't shouts on the street, but they were in every email, every phone call, every hug from my kids, every facebook message, every referral and every dollar donated to PJ's fundraising. Please know that although I have not been able to personally respond to every one, they are what gets me through it. On my mountain climbs...when I get the comments, when I get your referrals, when I hear that I am in your prayers...that is what makes the journey for me. I CAN GET THROUGH IT.
One particularly tough day, I remember holding an ice mask over my eyes to control the headache and thinking, the only way to get over this is to just get through it. I have to learn to recognize the journey.
But so can you. This business is tough and it is going to get tougher. There are so many roadblocks that are going to get in your way, but that is just your journey. Each day the challenges that you face in our business may seem like it is going to knock you over, but that is when you make sure you are prepared...do you work with a team that supports you? Is your time spent educating yourself so you can educate your customers to navigate through this insanity? Do you remind yourself daily why you got in this business in the first place, and if so are you doing those things that you love about our industry? I want to be your cheerleader to get you through those tough stretches along the ride! So "GO TEAM!" You CAN DO IT!
Let's get through this journey together. Greg and I look forward to working with you! And fortunately we will never go back to normal, because normal has changed and we want to help you help your business adjust. In fact CLICK HERE for a DON'T MISS event that every industry professional should attend.
I also have a selfish reason for inviting you to this event as well...I need all the support I can get to show the world that I can ROCK BALD! Ha Ha!
Thank you again for your continued support and referrals!
Monday, May 9, 2011
The "C" Word and Plans for the Future
I have a fascination with the English language. I love the power of words, in fact in my next life I want to be a writer. Words have the ability to make a good story, great. Some words define lives and some words change lives.
When I woke up on April 15th, my day began similarly to most. My two year old woke up and wanted to watch "Doggies" (101 Dalmatians) my husband got up and went for a bike ride and my 10 year old slept in. I had made plans to stop in to see my doctor that morning then was excited to record "Real Estate From A-Z" with Bill Ashker and Roger Nelson. Contrary to any plan on my part, that morning I was told I needed to start considering a word that I had never imagined would be in my life's story. A very nice Radiologist introduced me to the word, "Carcinoma."
Five days, six procedures, five doctors and an innumerable amount of prayers later, my vocabulary included an unlimited amount of unfamiliar words like Invasive Ductal Carcinoma, calcifications and chemotherapy. In other words, I had cancer.
I have spent the last couple of weeks trying to let that word sink in, although I really don't think you can ever be prepared for or ready to take on that word. Surprised doesn't describe it, shocked doesn't do it justice...numb is only thing I felt.
I kept expecting someone to say it was all a mistake. I am 39, have no familial history of breast cancer or of any cancer, and I have young kids that rely on their mother. This had to be a mistake. Unfortunately as test result upon test result came back, a new word emerged, one that I have worked hard to avoid, and that word is fear.
After some family and a few close friends knew what was happening, I was overwhelmed with the tokens of compassion and love. The commonality of the messages was how strong everyone knew I was and that I would win this battle. I was used to being strong, a fighter...but this was a new arena, new players and new rules. How could I put my kids through this, how will my husband handle it and how would this impact my business and the goals for which I had worked so hard. The fear would not subside.
After I got the ok from the doctors, my husband and I decided to continue as planned and go to New York where I had been asked to present at the Mortgage Bankers Association Loan Production Conference. It would be a chance for me to stop thinking about cancer and focus my efforts on work. It was there that I first got a glimpse of who I knew I was going to have to become. The fear didn't go away, but it was diminished by the thrill of teaching and learning, the compassion of my friends and the love of my husband.
I could not let this get the best of me. I will not be defined by that "C" word. My life is NOT going to be centered around fighting breast cancer. Fighting breast cancer is just going to be another facet of my life.
I have since read that courage is not the absence of fear, but moving forward in spite of fear. I can tell you that in the past, there have been a few "C" words used to describe me...ha ha ha...but if I have my druthers and I am going to be defined by a "C" word, courageous is the word I want used.
So where do I go from here? Johann Wolfgang van Geothe quipped, "He who moves not forward, goes backward." I will move forward.
The best medicine for me is work. I will continue to work for you and your customers. I love what I do and Greg and I have been able to put together a team that works well and we will continue to what we do best...close home loans.
I will also continue to work for our industry and be an advocate for the noble professionals that I have had the privilege to work alongside. I will continue to push for the bar to be raised through the increased education of our colleagues.
Along the way I will continue to fight breast cancer.
I truly hope you will want to move forward with me. I appreciate and look forward to the continued support of your business. I hope you will actively be aware of the issues affecting our industry and continue to fight with me to keep our futures intact.
Finally, I hope you will continue to offer me your prayers of support through my fight with the bad "c" word.
Thank you for your continued support and referrals!
Amy
How Will the Government Financial Overhaul Affect the Phoenix Real Estate Market?
Lenders, Real Estate Agents and Anyone Impacted by the Phoenix Real Estate Market...You Need to Know It's Impact on Your Business!
Monday, May 16th 2011
9:00 am - 11:00 am
Scottsdale Civic Center Library
3839 N. Drinkwater Blvd.
Scottsdale, AZ 85251
RSVP: katie@homeownersfg.com (480) 305-8500
$5.00 to attend
For more information CLICK HERE
Very Proud!
If you are interested in showing your support for cancer research, please read this email from my husband, PJ Harrigan and support his fundraising efforts.
"Over the years that I have been funding raising for the Leukemia and Lymphoma Society I have been asked many times what is my connection to blood born cancers. Why did I pick this charity to devote my time. I have always been about to say that I am blessed in that cancer has not touched my immediate family.
Well that has changed...
A few weeks ago my wife Amy was complaining of her breast hurting. After hearing this a few times and telling her to make a doctors appointment and her not doing it, I made a doctor's appointment for her. So the next day she had an appointment with our Friend, Dr. Ellsworth, who said there was something there....and that is when it started. It is hard to describe what it felt like when my best friend handed me her phone at the radiologist office and I see she had "Googled" Ductal Carcinoma.....Yes, Amy has breast cancer and as a result, my bike ride around Lake Tahoe and my fund raising has become personal. I now will carry the name of Amy Firth Swaney Harrigan with me as I ride. Not something I ever expected to do.
On on hand it is good that been exposed to all the things I have being part of the Team in Training program. When the doctors say things I can somewhat understand the terms they use and the things they tell us. On the other hand I wish I knew less. In the past two weeks Amy has had two biopsies, a CT Scan, three MRI's, a PET Scan and X-Rays. Up next is a bone scan and surgery to put a port in for Chemo.
However, we are blessed. We are blessed with a strong faith that gives us courage to endure. We are blessed with wonderful family and friends who give us constant encouragement and love. Unfortunately we are blessed with having friends who have also been through this terrible experience themselves and are able to give us sound advice on what to do and how to plan. The out pouring of love we have received is humbling. We are so thankful for our friends and family.
And we are blessed to have friends who supported my fund raising over the years to help find a cure for all cancers. Many of you will remember that I started my fund raising for my friend Allison Bishop, who also had breast cancer. Because of the money you have donated, the knowledge and technology available to treat Amy is so much more advanced today then it was when Allison was diagnosed. The tests and the treatments are all better today because of the advance made possible as a result of the donations you make. My family thanks you for this.
So let me ask one more time, please give to help find a cure for cancer. My ride is June 5th. Our plan is for Amy to attend the event. We will see. She starts Chemo on May 12th. She will have eight cycles of chemo, one every two weeks. Then, after the chemo treatments are done, she will have surgery. I told her there were easier ways to get a her breast redone.....(we have decided that laughter makes this tough task a bit easier). To donate go to:
FIGHT CANCER
Many drugs developed by LLS funded researchers are used to treat breast cancer. So your donations definitely help Amy and all others fighting breast cancer.
To all of you have given, thank you. You generosity is incredible. My family cannot thank you enough.
PJ
PS - Those of you who know Amy know she has beautiful long naturally curly hair. She will be cutting her hair this weekend and will be donating it to Locks of Love. Locks of Love makes wigs for people (mainly children) who are fighting cancer or have Alopecia Areata. Our Nephew, Jackson Odle has Alopecia.
PPS -
To show his support for Amy, our sixteen year old son, Patrick, dyed his hair Pink last week. "
Ha Ha
As seen on a t-shirt:
"Of course they are not real! My real ones tried to kill me!"
When I woke up on April 15th, my day began similarly to most. My two year old woke up and wanted to watch "Doggies" (101 Dalmatians) my husband got up and went for a bike ride and my 10 year old slept in. I had made plans to stop in to see my doctor that morning then was excited to record "Real Estate From A-Z" with Bill Ashker and Roger Nelson. Contrary to any plan on my part, that morning I was told I needed to start considering a word that I had never imagined would be in my life's story. A very nice Radiologist introduced me to the word, "Carcinoma."
Five days, six procedures, five doctors and an innumerable amount of prayers later, my vocabulary included an unlimited amount of unfamiliar words like Invasive Ductal Carcinoma, calcifications and chemotherapy. In other words, I had cancer.
I have spent the last couple of weeks trying to let that word sink in, although I really don't think you can ever be prepared for or ready to take on that word. Surprised doesn't describe it, shocked doesn't do it justice...numb is only thing I felt.
I kept expecting someone to say it was all a mistake. I am 39, have no familial history of breast cancer or of any cancer, and I have young kids that rely on their mother. This had to be a mistake. Unfortunately as test result upon test result came back, a new word emerged, one that I have worked hard to avoid, and that word is fear.
After some family and a few close friends knew what was happening, I was overwhelmed with the tokens of compassion and love. The commonality of the messages was how strong everyone knew I was and that I would win this battle. I was used to being strong, a fighter...but this was a new arena, new players and new rules. How could I put my kids through this, how will my husband handle it and how would this impact my business and the goals for which I had worked so hard. The fear would not subside.
After I got the ok from the doctors, my husband and I decided to continue as planned and go to New York where I had been asked to present at the Mortgage Bankers Association Loan Production Conference. It would be a chance for me to stop thinking about cancer and focus my efforts on work. It was there that I first got a glimpse of who I knew I was going to have to become. The fear didn't go away, but it was diminished by the thrill of teaching and learning, the compassion of my friends and the love of my husband.
I could not let this get the best of me. I will not be defined by that "C" word. My life is NOT going to be centered around fighting breast cancer. Fighting breast cancer is just going to be another facet of my life.
I have since read that courage is not the absence of fear, but moving forward in spite of fear. I can tell you that in the past, there have been a few "C" words used to describe me...ha ha ha...but if I have my druthers and I am going to be defined by a "C" word, courageous is the word I want used.
So where do I go from here? Johann Wolfgang van Geothe quipped, "He who moves not forward, goes backward." I will move forward.
The best medicine for me is work. I will continue to work for you and your customers. I love what I do and Greg and I have been able to put together a team that works well and we will continue to what we do best...close home loans.
I will also continue to work for our industry and be an advocate for the noble professionals that I have had the privilege to work alongside. I will continue to push for the bar to be raised through the increased education of our colleagues.
Along the way I will continue to fight breast cancer.
I truly hope you will want to move forward with me. I appreciate and look forward to the continued support of your business. I hope you will actively be aware of the issues affecting our industry and continue to fight with me to keep our futures intact.
Finally, I hope you will continue to offer me your prayers of support through my fight with the bad "c" word.
Thank you for your continued support and referrals!
Amy
How Will the Government Financial Overhaul Affect the Phoenix Real Estate Market?
Lenders, Real Estate Agents and Anyone Impacted by the Phoenix Real Estate Market...You Need to Know It's Impact on Your Business!
Monday, May 16th 2011
9:00 am - 11:00 am
Scottsdale Civic Center Library
3839 N. Drinkwater Blvd.
Scottsdale, AZ 85251
RSVP: katie@homeownersfg.com (480) 305-8500
$5.00 to attend
For more information CLICK HERE
Very Proud!
If you are interested in showing your support for cancer research, please read this email from my husband, PJ Harrigan and support his fundraising efforts.
"Over the years that I have been funding raising for the Leukemia and Lymphoma Society I have been asked many times what is my connection to blood born cancers. Why did I pick this charity to devote my time. I have always been about to say that I am blessed in that cancer has not touched my immediate family.
Well that has changed...
A few weeks ago my wife Amy was complaining of her breast hurting. After hearing this a few times and telling her to make a doctors appointment and her not doing it, I made a doctor's appointment for her. So the next day she had an appointment with our Friend, Dr. Ellsworth, who said there was something there....and that is when it started. It is hard to describe what it felt like when my best friend handed me her phone at the radiologist office and I see she had "Googled" Ductal Carcinoma.....Yes, Amy has breast cancer and as a result, my bike ride around Lake Tahoe and my fund raising has become personal. I now will carry the name of Amy Firth Swaney Harrigan with me as I ride. Not something I ever expected to do.
On on hand it is good that been exposed to all the things I have being part of the Team in Training program. When the doctors say things I can somewhat understand the terms they use and the things they tell us. On the other hand I wish I knew less. In the past two weeks Amy has had two biopsies, a CT Scan, three MRI's, a PET Scan and X-Rays. Up next is a bone scan and surgery to put a port in for Chemo.
However, we are blessed. We are blessed with a strong faith that gives us courage to endure. We are blessed with wonderful family and friends who give us constant encouragement and love. Unfortunately we are blessed with having friends who have also been through this terrible experience themselves and are able to give us sound advice on what to do and how to plan. The out pouring of love we have received is humbling. We are so thankful for our friends and family.
And we are blessed to have friends who supported my fund raising over the years to help find a cure for all cancers. Many of you will remember that I started my fund raising for my friend Allison Bishop, who also had breast cancer. Because of the money you have donated, the knowledge and technology available to treat Amy is so much more advanced today then it was when Allison was diagnosed. The tests and the treatments are all better today because of the advance made possible as a result of the donations you make. My family thanks you for this.
So let me ask one more time, please give to help find a cure for cancer. My ride is June 5th. Our plan is for Amy to attend the event. We will see. She starts Chemo on May 12th. She will have eight cycles of chemo, one every two weeks. Then, after the chemo treatments are done, she will have surgery. I told her there were easier ways to get a her breast redone.....(we have decided that laughter makes this tough task a bit easier). To donate go to:
FIGHT CANCER
Many drugs developed by LLS funded researchers are used to treat breast cancer. So your donations definitely help Amy and all others fighting breast cancer.
To all of you have given, thank you. You generosity is incredible. My family cannot thank you enough.
PJ
PS - Those of you who know Amy know she has beautiful long naturally curly hair. She will be cutting her hair this weekend and will be donating it to Locks of Love. Locks of Love makes wigs for people (mainly children) who are fighting cancer or have Alopecia Areata. Our Nephew, Jackson Odle has Alopecia.
PPS -
To show his support for Amy, our sixteen year old son, Patrick, dyed his hair Pink last week. "
Ha Ha
As seen on a t-shirt:
"Of course they are not real! My real ones tried to kill me!"
Monday, April 11, 2011
What is QRM and Why Does the Industry Want You to Know More About It?
What is QRM and Why Does the Industry Want You to Know More About It?
"NAR supports a reasonable and affordable cash investment requirement coupled with quality credit standards, strong documentation and sound underwriting." - NAR President Ron Phipps
Last year Congress passed the most comprehensive regulatory reform that the financial services industry has ever seen. This reform bill was called the Wall Street Reform Act, but more commonly known as Dodd-Frank. The law set implementation of different portions at different times over the next 2.5 years. Much of the criticism of Dodd-Frank is centered around the fact that the law did not set forth the rules or requirements, but required the "regulators" to determine the rules that the industry must obey. Therefore, no one knows yet just what rules we have to follow.
The determination of these "rules" will not be made through votes in Congress, it will be the responsibility of the new regulator, the Consumer Finance Protection Board (CFPB), to determine exactly what those rules will require. Since the role of the CFPB has not yet been fully implemented, the current regulators (OCC, The Fed, FDIC, SEC, FHFA and HUD) weighed in on what their suggestions for these rules are. On March 29, 2011, the financial news relayed the announcement of one of the most important rule-making components of Dodd-Frank, the proposed rule for Risk-Retention and QRM.
Risk Retention
Dodd-Frank required securitizers and or originators of mortgage loans retain 5% of any loan/security they originate. This 5% must be held in a capital reserve account free from any other obligation. That means that ANY securitizer (and in certain circumstances originator), such as a small independent mortgage banker, large bank or wall street investor would have to set aside $5000 for every $100,000 loan closed. That does not seem like a big issue until you consider the volume and amount we are talking about. Let's say a company securitizes a group of 100 loans (pool of loans). If you assume a $200,000 average loan amount, that is $1,000,000 for each pool that the company would have to fund in a reserve account and stay in that account until the loan pays off. (There are several ways a securitizer can choose to hold the reserve, but this is the simple version.) If a $200,000 loan generates approximately $5000-10,000 in gross revenue, less expenses such as staff, commissions, servicing overhead, and loss mitigation etc, you have to ask yourself, "how do you generate the revenue shortage between the $10,000 retention requirement and what is left of the revenue generated on that loan?" That would shut down every small independent mortgage company within the first 30-60 days. Who does that leave to continue to offer options for mortgage loans? For those who remained, even the large banks would struggle to retain that capital reserve. As in any business equation, in order to cover that additional "cost" you must increase the profitability...read that to say, you increase costs to the consumer.
When Dodd-Frank was written, Congress was put under much pressure by the real estate finance industry to grant some protections or "safe harbors" to avoid this 5% requirement. The argument was made that certain loans DO NOT have the same risk to the market as others, thus do not need that additional "skin in the game" from the originator/securitizer. The Safe Harbor language was added as an amendment to Dodd-Frank, however, the exemption criteria was not determined in the law. It stated that any loan that meets the "Qualified Residential Mortgage" (QRM) requirements would be exempt from the risk-retention provision provided therein. This means that as long as the loan that is originated would be considered a "QRM" the lender does NOT need to hold 5% of the loan in reserve. The assumption was that regular loans like FHA, VA and FNMA/FHLMC loans (all the loans we now do in 2011) do not pose the risk that the stated income, negative amortization, balloons or interest only loans have posed in the past, therefore these loans would most likely be considered exempt.
The Devil is in the Details - QRM
We all know the saying about what happens when you ASSUME...and once again the point has been proven. As discussed, the law did not set up these parameters for what made the loan a QRM, the regulators have made their proposal and as an industry we have found out that our assumption of those exemptions was incorrect.
Proposed QRM Eligibility Requirements...
1. Purchase or Refinance of a Primary Residence, First Mortgage with a term no longer than 30 years - Not to include "bridge loans" "time shares" or "Reverse Mortgages"
2. A Borrower must not currently be delinquent on any debt and not been more than 60 days past due on any debt in the prior 24 months.
3. A Borrower may not have had within the preceding 36 months, a bankruptcy proceeding, had a property repossessed or foreclosed upon, or engaged in a short-sale or deed in lieu of foreclosure or been subject to a Federal or State judgment for the collection of any debt.
4. The loan must be fully-amortizing and not allow for payment terms that allow for interest-only payments or negative amortization.
5. The payment terms may allow for a fixed or adjustable interest rate, but would not allow for "teaser rates" and would not allow for pre-payment penalties.
6. Purchase loans would require a 20% downpayment and borrower payment of closing costs from acceptable sources.
7. Rate and Term Refinance loans would require a 75% loan-to-value ratio.
8. Cash-Out Refinance loans would require a 70% loan-to-value ratio.
9. A borrower's income must be fully documented and the proposed housing payment cannot exceed 28% of this income and all other debt including the proposed housing payment cannot exceed 36%.
10. The total points and fees charged on the loan cannot exceed 3 points.
11. A loan could not be assumable.
12. If a loan is originated and guaranteed by the United States government, ie-FHA, VA, USDA, Fannie Mae and Freddie Mac (only while they are held in conservatorship of the federal government)
Overview of Proposed QRM by the MBA
Real World Consequences on Our Market
No one should fault the idealism to which the regulators have used to create these proposed requirements, the intentions are well grounded. The problem lies in the fragile nature of the housing market today. Investors do not have the confidence yet in the private label security market and although these rules try to off-set some of the risk, the near term results in this economy is disastrous.
In today's market, what happens if a customer wants a "jumbo" loan, we are bound by the individual requirements of each individual investor that offers the program. The down payment requirements are more restrictive, the credit score requirements are higher and the interest rates can be upwards of .5 - 1.0% higher than that of a comparable "conforming" loan. If you look at the dramatic drop in sales in the price range from $600,000 and up and the stagnation in that market, at least some of that stems from the stringent and costly lending environment for Jumbo loans.
You can also look at the underserved markets and see the complete shutdown of lending in the under $100,000 price point. Based upon the definition of points and fees in the proposal, the costs involved with closing a loan would automatically exceed the 3 point fee limit thus pushing it outside the QRM requirement. These loans would typically be forced into the realm of FHA, but the Administration has indicated their expectation of more stringent guidelines for FHA to limit the volume of business that FHA will accept including increasing the down payment requirements.
What about the second home and investment market? If the QRM exemption only supports primary residences, would there be a market for these other types of properties? Will it become cost prohibitive enough for the would be real estate investor to consider another type of investment?
What Can Be Done
As I described, this is a "Proposal" that is out for "Public Comment." This process allows you to be heard. This is the only opportunity to voice the grave concern to its impact on our market. I would strongly encourage you to make your comments to the regulators. How many times have you asked, "Who do they get their information from?" Or have you thought, "what were they thinking?" Don't rely on someone else to take a stand. NAR can't do it alone, mortgage lenders can't do it alone. I can't do it for you. The only way for us to make an impact is for the regulators to hear from all of us in volumes. Each comment represents a segment of the market. Pass this around, get your colleagues involved tell your friends. The more they hear, the more they pay attention. As it stands, QRM is not a what if...it is a "how bad is it going to be."
Your opportunity to comment is available until June 10, 2011.
How to Comment
http://www.regulations.gov/
Under the "More Search Options" tab click next to the "Advanced Docket Search" option where indicated, select "Comptroller of the Currency" from the agency drop-down menu, then click "Submit." In the "Docket ID" column, select "OCC-2010-0002" to submit or view public comments and to view supporting and related materials for this proposed rule.
Report From Washington, DC
Once again, it was a very successful trip to educate our Congressional delegates to the concerns of the housing market in Arizona. As the topics get tougher and the stakes get higher, it was great to see the increased support from more of the professional leaders in our local market.
We were able to meet with Rep. Jeff Flake, Rep. Trent Franks, Rep. Ben Quayle, and Rep. David Schweikert as well as representatives from Rep. Gosar, Rep. Grijvala, Rep. Pastor and Sen. Kyl and Sen. McCain. We were also pleased to be able to stop in to Representative Gabrielle Giffords office to offer our honest and most sincere hope for her speedy and full recovery.
I wanted to thank those below who made the commitment to our industry of their time and money who made the trip. from left standing - Ted Theiste - Wallick and Volk, Rod Hill - AmeriHome Mortgage, (Rep. Schweikert) Amy Swaney, CMB - Citywide Home Loans, Kelly Powers - CNN Mortgage, Bob Kennedy - Homeowners Financial Group, Bill Rogers - Homeowners Financial Group
from left kneeling - PJ Harrigan, CMB - Franklin American Mortgage, Kelly Mueller - Alliance Financial Resources, Jamie Korus - Alliance Financial Resources, Cody Pearce, CMB - Cascade Financial Services, George Dover, CMB - Cascade Financial Services
"NAR supports a reasonable and affordable cash investment requirement coupled with quality credit standards, strong documentation and sound underwriting." - NAR President Ron Phipps
Last year Congress passed the most comprehensive regulatory reform that the financial services industry has ever seen. This reform bill was called the Wall Street Reform Act, but more commonly known as Dodd-Frank. The law set implementation of different portions at different times over the next 2.5 years. Much of the criticism of Dodd-Frank is centered around the fact that the law did not set forth the rules or requirements, but required the "regulators" to determine the rules that the industry must obey. Therefore, no one knows yet just what rules we have to follow.
The determination of these "rules" will not be made through votes in Congress, it will be the responsibility of the new regulator, the Consumer Finance Protection Board (CFPB), to determine exactly what those rules will require. Since the role of the CFPB has not yet been fully implemented, the current regulators (OCC, The Fed, FDIC, SEC, FHFA and HUD) weighed in on what their suggestions for these rules are. On March 29, 2011, the financial news relayed the announcement of one of the most important rule-making components of Dodd-Frank, the proposed rule for Risk-Retention and QRM.
Risk Retention
Dodd-Frank required securitizers and or originators of mortgage loans retain 5% of any loan/security they originate. This 5% must be held in a capital reserve account free from any other obligation. That means that ANY securitizer (and in certain circumstances originator), such as a small independent mortgage banker, large bank or wall street investor would have to set aside $5000 for every $100,000 loan closed. That does not seem like a big issue until you consider the volume and amount we are talking about. Let's say a company securitizes a group of 100 loans (pool of loans). If you assume a $200,000 average loan amount, that is $1,000,000 for each pool that the company would have to fund in a reserve account and stay in that account until the loan pays off. (There are several ways a securitizer can choose to hold the reserve, but this is the simple version.) If a $200,000 loan generates approximately $5000-10,000 in gross revenue, less expenses such as staff, commissions, servicing overhead, and loss mitigation etc, you have to ask yourself, "how do you generate the revenue shortage between the $10,000 retention requirement and what is left of the revenue generated on that loan?" That would shut down every small independent mortgage company within the first 30-60 days. Who does that leave to continue to offer options for mortgage loans? For those who remained, even the large banks would struggle to retain that capital reserve. As in any business equation, in order to cover that additional "cost" you must increase the profitability...read that to say, you increase costs to the consumer.
When Dodd-Frank was written, Congress was put under much pressure by the real estate finance industry to grant some protections or "safe harbors" to avoid this 5% requirement. The argument was made that certain loans DO NOT have the same risk to the market as others, thus do not need that additional "skin in the game" from the originator/securitizer. The Safe Harbor language was added as an amendment to Dodd-Frank, however, the exemption criteria was not determined in the law. It stated that any loan that meets the "Qualified Residential Mortgage" (QRM) requirements would be exempt from the risk-retention provision provided therein. This means that as long as the loan that is originated would be considered a "QRM" the lender does NOT need to hold 5% of the loan in reserve. The assumption was that regular loans like FHA, VA and FNMA/FHLMC loans (all the loans we now do in 2011) do not pose the risk that the stated income, negative amortization, balloons or interest only loans have posed in the past, therefore these loans would most likely be considered exempt.
The Devil is in the Details - QRM
We all know the saying about what happens when you ASSUME...and once again the point has been proven. As discussed, the law did not set up these parameters for what made the loan a QRM, the regulators have made their proposal and as an industry we have found out that our assumption of those exemptions was incorrect.
Proposed QRM Eligibility Requirements...
1. Purchase or Refinance of a Primary Residence, First Mortgage with a term no longer than 30 years - Not to include "bridge loans" "time shares" or "Reverse Mortgages"
2. A Borrower must not currently be delinquent on any debt and not been more than 60 days past due on any debt in the prior 24 months.
3. A Borrower may not have had within the preceding 36 months, a bankruptcy proceeding, had a property repossessed or foreclosed upon, or engaged in a short-sale or deed in lieu of foreclosure or been subject to a Federal or State judgment for the collection of any debt.
4. The loan must be fully-amortizing and not allow for payment terms that allow for interest-only payments or negative amortization.
5. The payment terms may allow for a fixed or adjustable interest rate, but would not allow for "teaser rates" and would not allow for pre-payment penalties.
6. Purchase loans would require a 20% downpayment and borrower payment of closing costs from acceptable sources.
7. Rate and Term Refinance loans would require a 75% loan-to-value ratio.
8. Cash-Out Refinance loans would require a 70% loan-to-value ratio.
9. A borrower's income must be fully documented and the proposed housing payment cannot exceed 28% of this income and all other debt including the proposed housing payment cannot exceed 36%.
10. The total points and fees charged on the loan cannot exceed 3 points.
11. A loan could not be assumable.
12. If a loan is originated and guaranteed by the United States government, ie-FHA, VA, USDA, Fannie Mae and Freddie Mac (only while they are held in conservatorship of the federal government)
Overview of Proposed QRM by the MBA
Real World Consequences on Our Market
No one should fault the idealism to which the regulators have used to create these proposed requirements, the intentions are well grounded. The problem lies in the fragile nature of the housing market today. Investors do not have the confidence yet in the private label security market and although these rules try to off-set some of the risk, the near term results in this economy is disastrous.
In today's market, what happens if a customer wants a "jumbo" loan, we are bound by the individual requirements of each individual investor that offers the program. The down payment requirements are more restrictive, the credit score requirements are higher and the interest rates can be upwards of .5 - 1.0% higher than that of a comparable "conforming" loan. If you look at the dramatic drop in sales in the price range from $600,000 and up and the stagnation in that market, at least some of that stems from the stringent and costly lending environment for Jumbo loans.
You can also look at the underserved markets and see the complete shutdown of lending in the under $100,000 price point. Based upon the definition of points and fees in the proposal, the costs involved with closing a loan would automatically exceed the 3 point fee limit thus pushing it outside the QRM requirement. These loans would typically be forced into the realm of FHA, but the Administration has indicated their expectation of more stringent guidelines for FHA to limit the volume of business that FHA will accept including increasing the down payment requirements.
What about the second home and investment market? If the QRM exemption only supports primary residences, would there be a market for these other types of properties? Will it become cost prohibitive enough for the would be real estate investor to consider another type of investment?
What Can Be Done
As I described, this is a "Proposal" that is out for "Public Comment." This process allows you to be heard. This is the only opportunity to voice the grave concern to its impact on our market. I would strongly encourage you to make your comments to the regulators. How many times have you asked, "Who do they get their information from?" Or have you thought, "what were they thinking?" Don't rely on someone else to take a stand. NAR can't do it alone, mortgage lenders can't do it alone. I can't do it for you. The only way for us to make an impact is for the regulators to hear from all of us in volumes. Each comment represents a segment of the market. Pass this around, get your colleagues involved tell your friends. The more they hear, the more they pay attention. As it stands, QRM is not a what if...it is a "how bad is it going to be."
Your opportunity to comment is available until June 10, 2011.
How to Comment
http://www.regulations.gov/
Under the "More Search Options" tab click next to the "Advanced Docket Search" option where indicated, select "Comptroller of the Currency" from the agency drop-down menu, then click "Submit." In the "Docket ID" column, select "OCC-2010-0002" to submit or view public comments and to view supporting and related materials for this proposed rule.
Report From Washington, DC
Once again, it was a very successful trip to educate our Congressional delegates to the concerns of the housing market in Arizona. As the topics get tougher and the stakes get higher, it was great to see the increased support from more of the professional leaders in our local market.
We were able to meet with Rep. Jeff Flake, Rep. Trent Franks, Rep. Ben Quayle, and Rep. David Schweikert as well as representatives from Rep. Gosar, Rep. Grijvala, Rep. Pastor and Sen. Kyl and Sen. McCain. We were also pleased to be able to stop in to Representative Gabrielle Giffords office to offer our honest and most sincere hope for her speedy and full recovery.
I wanted to thank those below who made the commitment to our industry of their time and money who made the trip. from left standing - Ted Theiste - Wallick and Volk, Rod Hill - AmeriHome Mortgage, (Rep. Schweikert) Amy Swaney, CMB - Citywide Home Loans, Kelly Powers - CNN Mortgage, Bob Kennedy - Homeowners Financial Group, Bill Rogers - Homeowners Financial Group
from left kneeling - PJ Harrigan, CMB - Franklin American Mortgage, Kelly Mueller - Alliance Financial Resources, Jamie Korus - Alliance Financial Resources, Cody Pearce, CMB - Cascade Financial Services, George Dover, CMB - Cascade Financial Services
Sunday, March 27, 2011
Washington is a city of Southern efficiency and Northern charm - John F Kennedy
Do You Know What the Administration's Plan for Housing is this Year?
"In politics, nothing happens by accident. If it happens, you can bet it was planned that way." - Franklin D. Roosevelt
You may not have had the opportunity to read the Obama Administration's Report to Congress, "Reforming America's Housing Finance Market" to prompt you I have included the link HERE
It is no secret that all of us in the real estate industries are in for some challenging times. It is also no secret it is going to continue to challenge even the best of the best. In the Report's 32 pages the agenda for our future is revealed. It's position for Fannie Mae and Freddie Mac were not a shock, however the other items discussed were certainly eye-opening.
The highlights are...
1. Plans to decrease the conforming loan limits
2. Need to Increase "Guarantee Fees" (the fee paid to any loan sold to FNMA/FHLMC)
3. Larger down payment requirements for FNMA/FHLMC loans (10% down)
4. A decrease in the FHA loan limits back to the HERA requirements (115% of current median home value) which are set to expire on October 1, 2011
5. Consolidate FHA, VA and Rural Housing into one housing unit
6. Full implementation of Dodd-Frank's consumer protection provisions (including LO comp, risk retention and underwriting standardization)
7. Requirement of originators and securitizers to retain risk (5%)
8. Shift from homeownership to affordable rental housing
9. Coordinated moves to restrict FHA's loan to value ratios and increased customer cost in preparation to shrink FHA's presence in the market
10. 3 options to wind down FNMA/FHLMC
If one or more of these proposals are to take root, how will your business be impacted? How will your customers be impacted? Will our fragile economic market be able to weather the storm of increased down payment requirements for ALL loans, maximum government loan amounts rolled back or the continued increase in costs to credit?
I hope you wil become educated and aware of the changes being made, adjust your planning and by all means, let your informed voice be heard, not through empty complaints but through targeted advocacy, grassroots movements and old fashioned tenacity.
Report From the Front Line
My husband and I were honored to host Arizona's own real estate advocate, Congressman David Schweikert at a private reception at the home of Bill Rogers in Scottsdale on Friday. Representative Schweikert has been named to the powerful House Financial Services Committee, and the Vice Chair of the Capital Markets Sub-Committee, an unheard of feat by a freshman delegate.
He once again wowed some of Arizona's toughest industry critics through his knowledge, passion and experience as a real estate agent and investor. His frank and open discussion about what he would like to see happen in the committee was impressive, especially when coupled with his desire for input from those in attendance for solutions and options.
Many in attendance were pleased to hear of the Representative's support of the March 11, 2011 Letter to the Federal Reserve requesting the delay of the April 1st deadline for Loan Officer Compensation. We were also interest to hear his impression of how the next few weeks would play out with the Fed.
Overall it was a tremendous evening for those who committed the time and money to attend.
Ha Ha
Its a fine line between numerator and denominator.
"In politics, nothing happens by accident. If it happens, you can bet it was planned that way." - Franklin D. Roosevelt
You may not have had the opportunity to read the Obama Administration's Report to Congress, "Reforming America's Housing Finance Market" to prompt you I have included the link HERE
It is no secret that all of us in the real estate industries are in for some challenging times. It is also no secret it is going to continue to challenge even the best of the best. In the Report's 32 pages the agenda for our future is revealed. It's position for Fannie Mae and Freddie Mac were not a shock, however the other items discussed were certainly eye-opening.
The highlights are...
1. Plans to decrease the conforming loan limits
2. Need to Increase "Guarantee Fees" (the fee paid to any loan sold to FNMA/FHLMC)
3. Larger down payment requirements for FNMA/FHLMC loans (10% down)
4. A decrease in the FHA loan limits back to the HERA requirements (115% of current median home value) which are set to expire on October 1, 2011
5. Consolidate FHA, VA and Rural Housing into one housing unit
6. Full implementation of Dodd-Frank's consumer protection provisions (including LO comp, risk retention and underwriting standardization)
7. Requirement of originators and securitizers to retain risk (5%)
8. Shift from homeownership to affordable rental housing
9. Coordinated moves to restrict FHA's loan to value ratios and increased customer cost in preparation to shrink FHA's presence in the market
10. 3 options to wind down FNMA/FHLMC
If one or more of these proposals are to take root, how will your business be impacted? How will your customers be impacted? Will our fragile economic market be able to weather the storm of increased down payment requirements for ALL loans, maximum government loan amounts rolled back or the continued increase in costs to credit?
I hope you wil become educated and aware of the changes being made, adjust your planning and by all means, let your informed voice be heard, not through empty complaints but through targeted advocacy, grassroots movements and old fashioned tenacity.
Report From the Front Line
My husband and I were honored to host Arizona's own real estate advocate, Congressman David Schweikert at a private reception at the home of Bill Rogers in Scottsdale on Friday. Representative Schweikert has been named to the powerful House Financial Services Committee, and the Vice Chair of the Capital Markets Sub-Committee, an unheard of feat by a freshman delegate.
He once again wowed some of Arizona's toughest industry critics through his knowledge, passion and experience as a real estate agent and investor. His frank and open discussion about what he would like to see happen in the committee was impressive, especially when coupled with his desire for input from those in attendance for solutions and options.
Many in attendance were pleased to hear of the Representative's support of the March 11, 2011 Letter to the Federal Reserve requesting the delay of the April 1st deadline for Loan Officer Compensation. We were also interest to hear his impression of how the next few weeks would play out with the Fed.
Overall it was a tremendous evening for those who committed the time and money to attend.
Ha Ha
Its a fine line between numerator and denominator.
Monday, January 31, 2011
Foreclosure losses picked up by taxpayers, investors
From the Arizona Republic 01/30/11
Catherine Reagor
In a historic wave of foreclosures, countless thousands of Americans have given up their homes, unable - or unwilling - to pay the mortgage. Plunging values left their homes worth far less than the amount of their loans.
Many borrowers let banks take the houses back, believing the lenders would simply resell them at a loss. Some borrowers even did so out of spite, angry that lenders wouldn't help them refinance or adjust their payments.
But in many cases, banks lost little or nothing on those foreclosures.
Instead, the biggest losers have been market investors and the American taxpayers.
Most foreclosures now are on loans that were issued by banks but backed by government-owned Fannie Mae and Freddie Mac. Created to boost U.S. homeownership, the Federal National Mortgage Association and the Federal Home Mortgage Corp. buy mortgages from banks and now own half of all mortgages.
It's a system that was built to encourage banks to make mortgages and keep being able to make more. But the system also means that when homeowners stop making mortgage payments, the lenders who issued the mortgages don't take the biggest loss.
"Fannie and Freddie losses are passed onto taxpayers," said Anthony Sanders, a former professor of real estate and finance at Arizona State University, now with Virginia's George Mason University.
Those federal entities' losses are expected to near $400 billion before the foreclosure crisis ends.
Many other mortgages that have failed were even riskier than the ones bought by Fannie Mae and Freddie Mac. Those were packaged by the financial industry and also resold to investors. When those loans fail, investors lose.
And many of those losses could end up hitting taxpayers, too. Big investors included government pension funds and other public agencies."If the federal government begins bailing out pension funds," Sanders said, "then the taxpayer pays for that, too."
A report from a federal inquiry into the financial meltdown, issued last week, concluded that those investments were bundled and sold even as housing prices declined - and that investors were let down at many steps along the way.
Regulators who could have seen the failures didn't understand the system, the report found. And a top investment-rating agency labeled the packaged mortgages with the top, AAA-grade, rating without reviewing the quality of the mortgages themselves.
"It has become musical chairs for mortgages and foreclosures," said Jay Butler, director of realty studies at ASU. "Whoever ends up holding the mortgage at the end holds the bag for the loss. Unfortunately, taxpayers will end up with the biggest tab."
Since 2008, nearly 150,000 homes have been foreclosed on in metro Phoenix. Housing analysts are concerned that the housing market is only halfway through the foreclosure mess.
While foreclosures continue, banks have drawn public ire, being quick to accept federal bailouts but slow to respond to federal plans meant to help struggling homeowners.
"I understand why some people want to walk away, but we should all understand who ultimately pays the bill for foreclosures," said Amy Swaney, former president of the Arizona Mortgage Lenders Association and Arizona manager of Citywide Home Loans. "Most foreclosures end up costing us all."
Catherine Reagor
In a historic wave of foreclosures, countless thousands of Americans have given up their homes, unable - or unwilling - to pay the mortgage. Plunging values left their homes worth far less than the amount of their loans.
Many borrowers let banks take the houses back, believing the lenders would simply resell them at a loss. Some borrowers even did so out of spite, angry that lenders wouldn't help them refinance or adjust their payments.
But in many cases, banks lost little or nothing on those foreclosures.
Instead, the biggest losers have been market investors and the American taxpayers.
Most foreclosures now are on loans that were issued by banks but backed by government-owned Fannie Mae and Freddie Mac. Created to boost U.S. homeownership, the Federal National Mortgage Association and the Federal Home Mortgage Corp. buy mortgages from banks and now own half of all mortgages.
It's a system that was built to encourage banks to make mortgages and keep being able to make more. But the system also means that when homeowners stop making mortgage payments, the lenders who issued the mortgages don't take the biggest loss.
"Fannie and Freddie losses are passed onto taxpayers," said Anthony Sanders, a former professor of real estate and finance at Arizona State University, now with Virginia's George Mason University.
Those federal entities' losses are expected to near $400 billion before the foreclosure crisis ends.
Many other mortgages that have failed were even riskier than the ones bought by Fannie Mae and Freddie Mac. Those were packaged by the financial industry and also resold to investors. When those loans fail, investors lose.
And many of those losses could end up hitting taxpayers, too. Big investors included government pension funds and other public agencies."If the federal government begins bailing out pension funds," Sanders said, "then the taxpayer pays for that, too."
A report from a federal inquiry into the financial meltdown, issued last week, concluded that those investments were bundled and sold even as housing prices declined - and that investors were let down at many steps along the way.
Regulators who could have seen the failures didn't understand the system, the report found. And a top investment-rating agency labeled the packaged mortgages with the top, AAA-grade, rating without reviewing the quality of the mortgages themselves.
"It has become musical chairs for mortgages and foreclosures," said Jay Butler, director of realty studies at ASU. "Whoever ends up holding the mortgage at the end holds the bag for the loss. Unfortunately, taxpayers will end up with the biggest tab."
Since 2008, nearly 150,000 homes have been foreclosed on in metro Phoenix. Housing analysts are concerned that the housing market is only halfway through the foreclosure mess.
While foreclosures continue, banks have drawn public ire, being quick to accept federal bailouts but slow to respond to federal plans meant to help struggling homeowners.
"I understand why some people want to walk away, but we should all understand who ultimately pays the bill for foreclosures," said Amy Swaney, former president of the Arizona Mortgage Lenders Association and Arizona manager of Citywide Home Loans. "Most foreclosures end up costing us all."
Saturday, January 8, 2011
New Year, New Clients and New Loan Officers?
I LOVE the start of a new year. There is something so cleansing and fresh about the beginning of January that I will start considering that it is its own "season." You know in Arizona you have several important seasons..."In Season", where hotel prices and traffic jams remind us daily that we live in a resort community. "Boot-Wearing Season", where I finally get to give my high-heeled pumps, sandals and mules a few days off during the week and bring out my high-heeled boots, you know, to protect my calves from the near freezing 60 degree weather. An now we have, "The Season of Our New Year", where desires and goals are re-born like babies with unlimited opportunities and potential.
I love everything about "The Season of Our New Year." I love that we spend time reviewing the previous year, ranking those things that have impacted, inspired or identified with us the most. But more importantly, I love that we take the time to envision what our lives will be in the future; who we want surrounding us, what we want to accomplish and who do we want to be. We may have hit speed bumps last year, we may feel as if we have had failures in the past or maybe we just started to hit our stride, but in the Season of Our New Year, it is a blank canvass, a tabula rasa for us each to decide what is to come. What an opportunity. I plan on huge successes in 2011 and for me that means that those I surround myself with will be reaching huge successes as well. I just love how that works!
Here is to an amazing 2011 and to the start of the Season of Our New Year.
Bankruptcy Filings in AZ Rise 24%
What Obstacles Will Your Clients Face in 2011?
The Wall Street Journal wrote this week that the number of Americans filing for personal bankruptcy topped 1.5 million in 2010 which is up 9% from 2009 nationwide. This is the highest level since 2005 when a revamp of the Bankruptcy Code took place. The Journal also reported that most of the uptick was accounted for in the Pacific Southwest with California increasing 25% and Arizona up 24% from 2009.
That fact begs the question that I get asked almost daily, "so how long until I can qualify to buy a new house?" My answer, almost unwaveringly begins with, "Well, what kind of loan or house are you looking to get?"
The rules regarding bankruptcies are divided into different categories of FHA, VA, FNMA/FHMLC and Portfolio Lenders. Then they are subdivided in groups of what type of bankruptcy was filed. In all cases, we must determine the cause and significance of the derogatory information, verify that sufficient time has elapsed since the date of the bankruptcy and confirm that the borrower has re-established an acceptable credit history.
In discussing bankruptcies we almost always discuss the term extenuating circumstances. FNMA/FHLMC define the term as are nonrecurring events that are beyond the borrower's control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.
If a borrower claims that a bankruptcy was the result of extenuating circumstances, the borrower must provide documentation that can be used to support and confirm the event (such as a copy of a divorce decree, medical reports or bills, notice of job layoff, job severance papers, etc.) and documents that confirm the inability to resolve the problems that resulted from the event (such as a copy of insurance papers or claim settlements, property listing agreements, lease agreements, tax returns (covering the periods prior to, during, and after a loss of employment), etc.).
Below are the current required waiting periods for each category of loans:
FNMA/FHLMC: Chapter 7 or 11
4 year waiting period from the discharge or dismissal date
2 Years from discharge date - Extenuating Circumstances
FNMA/FHLMC: Chapter 13
2 years from the discharge date
4 years from the dismissal date
FHA: Chapter 7 or 11
2 years from the discharge date
1 year from the discharge date - Extenuating Circumstances
FHA: Chapter 13
12 months into the payout period with all payments on time AND written approval from the court. MUST be manually underwritten
VA: Chapter 7 or 11
2 years from the discharge date
1 year from the discharge date - Extenuating Circumstances
VA: Chapter 13
12 months into the payout period with all payments on time AND written approval from the court.
Portfolio Lender: All BK Types
Lender Specific
In all circumstances, if a housing related incident, such as a short sale, foreclosure or deed in lieu occurs in conjunction or within of the bankruptcy, you must reference that housing related event individually to determine the time frame for purchase.
Who Will Surround You This Year?
Possibly Fewer Loan Officers than Last Year!
As 2011 begins, there are noticeably fewer participants in our industry. The regulatory and legislative changes in our industry have been cumbersome and made for a tedious process for many. December 31st also closed out the renewal process for licensees and thus we have seen more and more individuals dropping out of the business altogether. The Nationwide Mortgage Licensing System (NMLS) reports that of over 230,000 national tests administered there is still close to a 20% failure rate.
If you are interested in who you and your clients are working with you can view license information online at http://www.nmlsconsumeraccess.org/
Ha Ha
Did you hear about the guy who sent ten puns to friends, in the hope that at least one of the puns would make them laugh.
Unfortunately, no pun in ten did.
I love everything about "The Season of Our New Year." I love that we spend time reviewing the previous year, ranking those things that have impacted, inspired or identified with us the most. But more importantly, I love that we take the time to envision what our lives will be in the future; who we want surrounding us, what we want to accomplish and who do we want to be. We may have hit speed bumps last year, we may feel as if we have had failures in the past or maybe we just started to hit our stride, but in the Season of Our New Year, it is a blank canvass, a tabula rasa for us each to decide what is to come. What an opportunity. I plan on huge successes in 2011 and for me that means that those I surround myself with will be reaching huge successes as well. I just love how that works!
Here is to an amazing 2011 and to the start of the Season of Our New Year.
Bankruptcy Filings in AZ Rise 24%
What Obstacles Will Your Clients Face in 2011?
The Wall Street Journal wrote this week that the number of Americans filing for personal bankruptcy topped 1.5 million in 2010 which is up 9% from 2009 nationwide. This is the highest level since 2005 when a revamp of the Bankruptcy Code took place. The Journal also reported that most of the uptick was accounted for in the Pacific Southwest with California increasing 25% and Arizona up 24% from 2009.
That fact begs the question that I get asked almost daily, "so how long until I can qualify to buy a new house?" My answer, almost unwaveringly begins with, "Well, what kind of loan or house are you looking to get?"
The rules regarding bankruptcies are divided into different categories of FHA, VA, FNMA/FHMLC and Portfolio Lenders. Then they are subdivided in groups of what type of bankruptcy was filed. In all cases, we must determine the cause and significance of the derogatory information, verify that sufficient time has elapsed since the date of the bankruptcy and confirm that the borrower has re-established an acceptable credit history.
In discussing bankruptcies we almost always discuss the term extenuating circumstances. FNMA/FHLMC define the term as are nonrecurring events that are beyond the borrower's control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.
If a borrower claims that a bankruptcy was the result of extenuating circumstances, the borrower must provide documentation that can be used to support and confirm the event (such as a copy of a divorce decree, medical reports or bills, notice of job layoff, job severance papers, etc.) and documents that confirm the inability to resolve the problems that resulted from the event (such as a copy of insurance papers or claim settlements, property listing agreements, lease agreements, tax returns (covering the periods prior to, during, and after a loss of employment), etc.).
Below are the current required waiting periods for each category of loans:
FNMA/FHLMC: Chapter 7 or 11
4 year waiting period from the discharge or dismissal date
2 Years from discharge date - Extenuating Circumstances
FNMA/FHLMC: Chapter 13
2 years from the discharge date
4 years from the dismissal date
FHA: Chapter 7 or 11
2 years from the discharge date
1 year from the discharge date - Extenuating Circumstances
FHA: Chapter 13
12 months into the payout period with all payments on time AND written approval from the court. MUST be manually underwritten
VA: Chapter 7 or 11
2 years from the discharge date
1 year from the discharge date - Extenuating Circumstances
VA: Chapter 13
12 months into the payout period with all payments on time AND written approval from the court.
Portfolio Lender: All BK Types
Lender Specific
In all circumstances, if a housing related incident, such as a short sale, foreclosure or deed in lieu occurs in conjunction or within of the bankruptcy, you must reference that housing related event individually to determine the time frame for purchase.
Who Will Surround You This Year?
Possibly Fewer Loan Officers than Last Year!
As 2011 begins, there are noticeably fewer participants in our industry. The regulatory and legislative changes in our industry have been cumbersome and made for a tedious process for many. December 31st also closed out the renewal process for licensees and thus we have seen more and more individuals dropping out of the business altogether. The Nationwide Mortgage Licensing System (NMLS) reports that of over 230,000 national tests administered there is still close to a 20% failure rate.
If you are interested in who you and your clients are working with you can view license information online at http://www.nmlsconsumeraccess.org/
Ha Ha
Did you hear about the guy who sent ten puns to friends, in the hope that at least one of the puns would make them laugh.
Unfortunately, no pun in ten did.
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