New Refinance Programs - Fact or Fiction?

I know that you believe you understand what you think I said, but I'm not sure you realize that what you heard is not what I meant.

- Robert McCloskey

Everyone has heard them. You know, the rumors about all these new loan programs out there. The ones that will let anyone "refinance at the low rates." Is that the same program that will let "investors refinance to today's rates," as well? I heard that "the Administration is promoting it." I heard that there was "a bill just passed that requires it." No, that is "the modification program and you have to be current." No, you "don't need equity or income documentation."

These rumors are all around. Every local and national news station hints to "some new program" in their sound bites on the 6 o'clock news and consumers want to believe it so they take it their word as the "gospel truth."

Unfortunately, as it commonly occurs, there is a little truth inside every rumor. Can I reiterate...a little.

I thought I would send along some accurate data to shed some light to fact versus fiction. Over the past few days there have been several announcements from Washington regarding different initiatives moving forward. The FHFA (Federal Housing Finance Agency - Fannie and Freddie's regulator) released information regarding proposed changes to HAMP (the Home Affordable MODIFICATION Program - not refinance) which can be READ HERE. They also released an REO initiative specifically for investors to purchase pools of properties specifically for affordable rentals which can be READ HERE.

This morning the Obama Administration also sent a Press Release detailing the different programs and plans for additional changes to the current Making Home Arrodable Programs. It is important to understand that Lenders HAVE NOT implemented many of these changes, including the HARP 2.0 release (other than some current servicer to current servicer programs).

I hope this information helps shed some clarity to this topic for you and your customers looking to you as a resource and as more accurate information becomes available, I will let you know.

As always Greg and I look forward to the opportunity to assist your clients with their next refinance or purchase. Have a great week!
Amy

Details of the Administration's Plan to "Help Responsible Homeowner's and Heal the Housing Market"

As Discussed in the "State of the Union" Address

THE WHITE HOUSE
Office of the Press Secretary

FOR IMMEDIATE RELEASE
February 1, 2012

FACT SHEET: President Obama's Plan to Help Responsible Homeowners and Heal the Housing Market

In his State of the Union address, President Obama laid out a Blueprint for an America Built to Last, calling for action to help responsible borrowers and support a housing market recovery. While the government cannot fix the housing market on its own, the President believes that responsible homeowners should not have to sit and wait for the market to hit bottom to get relief when there are measures at hand that can make a meaningful difference, including allowing these homeowners to save thousands of dollars by refinancing at today's low interest rates. That's why the President is putting forward a plan that uses the broad range of tools to help homeowners, supporting middle-class families and the economy.

Key Aspects of the President's Plan

• Broad Based Refinancing to Help Responsible Borrowers Save an Average of $3,000 per Year:The President's plan will provide borrowers who are current on their payments with an opportunity to refinance and take advantage of historically low interest rates, cutting through the red tape that prevents these borrowers from saving hundreds of dollars a month and thousands of dollars a year. This plan, which is paid for by a financial fee so that it does not add a dime to the deficit, will:
• Provide access to refinancing for all non-GSE borrowers who are current on their payments and meet a set of simple criteria.
• Streamline the refinancing process for all GSE borrowers who are current on their loans.
• Give borrowers the chance to rebuild equity through refinancing.

• Homeowner Bill of Rights:The President is putting forward a single set of standards to make sure borrowers and lenders play by the same rules, including:
• Access to a simple mortgage disclosure form, so borrowers understand the loans they are taking out.
• Full disclosure of fees and penalties.
• Guidelines to prevent conflicts of interest that end up hurting homeowners.
• Support to keep responsible families in their homes and out of foreclosure.
• Protection for families against inappropriate foreclosure, including right of appeal.

• First Pilot Sale to Transition Foreclosed Property into Rental Housing to Help Stabilize Neighborhoods and Improve Home Prices: The FHFA, in conjunction with Treasury and HUD, is announcing a pilot sale of foreclosed properties to be transitioned into rental housing.

• Moving the Market to Provide a Full Year of Forbearance for Borrowers Looking for Work: Following the Administration's lead, major banks and the GSEs are now providing up to 12 months of forbearance to unemployed borrowers.

• Pursuing a Joint Investigation into Mortgage Origination and Servicing Abuses: This effort marshals new resources to investigate misconduct that contributed to the financial crisis under the leadership of federal and state co-chairs.

• Rehabilitating Neighborhoods and Reducing Foreclosures: In addition to the steps outlined above, the Administration is expanding eligibility for HAMP to reduce additional foreclosures, increasing incentives for modifications that help borrowers rebuild equity, and is proposing to put people back to work rehabilitating neighborhoods through Project Rebuild.

1. Broad Based Refinancing Plan

Millions of homeowners who are current on their mortgages and could benefit from today's low interest rates face substantial barriers to refinancing through no fault of their own. Sometimes homeowners with good credit and clean payment histories are rejected because their mortgages are underwater. In other cases, they are rejected because the banks are worried that they will be left taking losses, even where Fannie Mae or Freddie Mac insure these new mortgages. In the end, these responsible homeowners are stuck paying higher interest rates, costing them thousands of dollars a year.

To address this challenge, the President worked with housing regulators this fall to take action without Congress to make millions of Americans eligible for lower interest rates. However, there are still millions of responsible Americans who continue to face steep barriers to low-cost, streamlined refinancing. So the President is now calling on Congress to open up opportunities to refinancing for responsible borrowers who are current on their payments.

Under the proposal, borrowers with loans insured by Fannie Mae or Freddie Mac (i.e. GSE-insured loans) will have access to streamlined refinancing through the GSEs. Borrowers with standard non-GSE loans will have access to refinancing through a new program run through the FHA. For responsible borrowers, there will be no more barriers and no more excuses.

Key components of the President's plan include:

• Providing Non-GSE Borrowers Access to Simple, Low-Cost Refinancing: President Obama is calling on Congress to pass legislation to establish a streamlined refinancing program. The refinancing program will be open to all non-GSE borrowers with standard (non-jumbo) loans who have been keeping up with their mortgage payments. The program will be operated through the FHA.

• Simple and straightforward eligibility criteria: Any borrower with a loan that is not currently guaranteed by the GSEs can qualify if they meet the following criteria:

• They are current on their mortgage: Borrowers will need to have been current on their loan for the past 6 months and have missed no more than one payment in the 6 months prior.
• They meet a minimum credit score. Borrowers must have a current FICO score of 580 to be eligible. Approximately 9 in 10 borrowers have a credit score adequate to meet that requirement.
• They have a loan that is no larger than the current FHA conforming loan limits in their area: Currently, FHA limits vary geographically with the median area home price - set at $271,050 in lowest cost areas and as high as $729,750 in the highest cost areas
• The loan they are refinancing is for a single family, owner-occupied principal residence. This will ensure that the program is focused on responsible homeowners trying to stay in their homes.

* Streamlined application process: Borrowers will apply through a streamlined process designed to make it simpler and less expensive for borrowers and lenders to refinance. Borrowers will not be required to submit a new appraisal or tax return. To determine a borrower's eligibility, a lender need only confirm that the borrower is employed. (Those who are not employed may still be eligible if they meet the other requirements and present limited credit risk. However, a lender will need to perform a full underwriting of these borrowers to determine whether they are a good fit for the program.)

• Program parameters to reduce program cost: The President's plan includes additional steps to reduce program costs, including:

• Establishing loan-to-value limits for these loans. The Administration will work with Congress to establish risk-mitigation measures which could include requiring lenders interested in refinancing deeply underwater loans (e.g. greater than 140 LTV) to write down the balance of these loans before they qualify. This would reduce the risk associated with the program and relieve the strain of negative equity on the borrower.
• Creating a separate fund for new streamlined refinancing program. This will help the FHA better track and manage the risk involved and ensure that it has no effect on the operation of the existing Mutual Mortgage Insurance (MMI) fund.

EXAMPLE: How Refinancing Can Benefit a Borrower With a Non-GSE Loan
•A borrower has a non-GSE mortgage originated in 2005 with a 6 percent rate and an initial balance of $300,000 - resulting in monthly payments of about $1,800.

•The outstanding balance is now about $272,000 and the borrower's home is now worth $225,000, leaving the borrower underwater (with a loan-to-value ratio of about 120%).

•Though the borrower has been paying his mortgage on time, he cannot refinance at today's historically low rates.

•Under the President's legislative plan, the borrower would be eligible to refinance into a 4.25% percent 30-year loan, which would reduce monthly payments by about $460 a month.

• Refinancing Plan Will Be Fully Paid For By a Portion of Fee on Largest Financial Institutions: The Administration estimates the cost of its refinancing plan will be in the range of $5 to $10 billion, depending on exact parameters and take-up. This cost will be fully offset by using a portion of the President's proposed Financial Crisis Responsibility Fee, which imposes a fee on the largest financial institutions based on their size and the riskiness of their activities - ensuring that the program does not add a dime to the deficit.

• Fully Streamlining Refinancing for All GSE Borrowers: The Administration has worked with the FHFA to streamline the GSEs' refinancing program for all responsible, current GSE borrowers. The FHFA has made important progress to-date, including eliminating the restriction on allowing deeply underwater borrowers to access refinancing, lowering fees associated with refinancing, and making it easier to access refinancing with lower closing costs.

To build on this progress, the Administration is calling on Congress to enact additional changes that will benefit homeowners and save taxpayers money by reducing the number of defaults on GSE loans.

We believe these steps are within the existing authority of the FHFA. However, to date, the GSEs have not acted, so the Administration is calling on Congress to do what is in the taxpayer's interest, by:
a. Eliminating appraisal costs for all borrowers:  Borrowers who happen to live in communities without a significant number of recent home sales often have to get a manual appraisal to determine whether they are eligible for refinancing into a GSE guaranteed loan, even under the HARP program. Under the Administration's proposal, the GSEs would be directed to use mark-to-market accounting or other alternatives to manual appraisals for any loans for which the loan-to-value cannot be determined with the GSE's Automated Valuation Model. This will eliminate a significant barrier that will reduce cost and time for borrowers and lenders alike.

b. Increasing competition so borrowers get the best possible deal: Today, lenders looking to compete with the current servicer of a borrower's loan for that borrower's refinancing business continue to face barriers to participating in HARP. This lack of competition means higher prices and less favorable terms for the borrower. The President's legislative plan would direct the GSEs to require the same streamlined underwriting for new servicers as they do for current servicers, leveling the playing field and unlocking competition between banks for borrowers' business.

c. Extending streamlined refinancing for all GSE borrowers: The President's plan would extend these steps to streamline refinancing for homeowners to all GSE borrowers. Those who have significant equity in their home - and thus present less credit risk - should benefit fully from all streamlining, including lower fees and fewer barriers. This will allow more borrowers to take advantage of a program that provides streamlined, low-cost access to today's low interest rates - and make it easier and more automatic for servicers to market and promote this program for all GSE borrowers.

• Giving Borrowers the Chance to Rebuild Equity in their Homes Through Refinancing: All underwater borrowers who decide to participate in either HARP or the refinancing program through the FHA outlined above will have a choice: they can take the benefit of the reduced interest rate in the form of lower monthly payments, or they can apply that savings to rebuilding equity in their homes. The latter course, when combined with a shorter loan term of 20 years, will give the majority of underwater borrowers the chance to get back above water within five years, or less.

To encourage borrowers to make the decision to rebuild equity in their homes, we are proposing that the legislation provide for the GSEs and FHA to cover the closing costs of borrowers who chose this option - a benefit averaging about $3,000 per homeowner.

To be eligible, a participant in either program must agree to refinance into a loan with a no more than 20 year term with monthly payments roughly equal to those they make under their current loan. For those who agree to these terms, the lender will receive payment for all closing costs directly from the GSEs or the FHA, depending on the entity involved.

EXAMPLE: How Rebuilding Equity Can Benefit a Borrower

• A borrower has a 6.5 percent $214,000 30-year mortgage originated in 2006. It now has an outstanding balance of $200,000, but the house is worth $160,000 (a loan-to-value ratio of 125). The monthly payment on this mortgage is $1,350.
• While this borrower is responsibly paying her monthly mortgage, she is locked out of refinancing.
• By refinancing into a 4.25 percent 30-year mortgage loan, this borrower will reduce her monthly payment by $370. However, after five years her mortgage balance will remain at $182,000.
• Under the rebuilding equity program, the borrower would refinance into a 20-year mortgage at 3.75 percent and commit her monthly savings to paying down principal. After five years, her mortgage balance would decline to $152,000, bringing the borrower above water.
• If the borrower took this option, the GSEs or FHA would also cover her closing costs - potentially saving her about $3,000.

• Streamlined Refinancing for Rural America: The Agriculture Department, which supports mortgage financing for thousands of rural families a year, is taking steps to further streamline its USDA-to-USDA refinancing program. This program is designed to provide those who currently have loans insured by the Department of Agriculture with a low-cost, streamlined process for refinancing into today's low rates. The Administration is announcing that the Agriculture Department will further streamline this program by eliminating the requirement for a new appraisal, a new credit report and other documentation normally required in a refinancing. To be eligible, a borrower need only demonstrate that he or she has been current on their loan.

• Streamlined Refinancing for FHA Borrowers: Like the Agriculture Department, the Federal Housing Authority is taking steps to make it easier for borrowers with loans insured by their agency to obtain access to low-cost, streamlined refinancing. The current FHA-to-FHA streamlined refinance program allows FHA borrowers who are current on their mortgage to refinance into a new FHA-insured loan at today's lower interest rates without requiring a full re-underwrite of the loan, thereby providing a simple way for borrowers to reduce their mortgage payments. However, some borrowers who would be eligible for low-cost refinancing through this program are being denied by lenders reticent to make loans that may compromise their status as FHA-approved lenders. To resolve this issue, the FHA is removing these loans from their "Compare Ratio", the process by which the performance of these lenders is reviewed. This will open the program up to many more families with FHA-insured loans.

2. Homeowner Bill of Rights

EXAMPLE: How Rebuilding Equity Can Benefit a Borrower:

The Administration believes that the mortgage servicing system is badly broken and would benefit from a single set of strong federal standards As we have learned over the past few years, the nation is not well served by the inconsistent patchwork of standards in place today, which fails to provide the needed support for both homeowners and investors. The Administration believes that there should be one set of rules that borrowers and lenders alike can follow. A fair set of rules will allow lenders to be transparent about options and allow borrowers to meet their responsibilities to understand the terms of their commitments.

The Administration will therefore work closely with regulators, Congress and stakeholders to create a more robust and comprehensive set of rules that better serves borrowers, investors, and the overall housing market. These rules will be driven by the following set of core principles:

• Simple, Easy to Understand Mortgage Forms: Every prospective homeowner should have access to clear, straightforward forms that help inform rather than confuse them when making what is for most families their most consequential financial purchase. To help fulfill this objective, the Consumer Financial Protection Bureau (CFPB) is in the process of developing a simple mortgage disclosure form to be used in all home loans, replacing overlapping and complex forms that include hidden clauses and opaque terms that families cannot understand.

• No Hidden Fees and Penalties: Servicers must disclose to homeowners all known fees and penalties in a timely manner and in understandable language, with any changes disclosed before they go into effect.

• No Conflicts of Interest: Servicers and investors must implement standards that minimize conflicts of interest and facilitate coordination and communication, including those between multiple investors and junior lien holders, such that loss mitigation efforts are not hindered for borrowers.

•Assistance For At-Risk Homeowners:
Early Intervention: Servicers must make reasonable efforts to contact every homeowner who has either demonstrated hardship or fallen delinquent and provide them with a comprehensive set of options to help them avoid foreclosure. Every such homeowner must be given a reasonable time to apply for a modification.

* Continuity of Contact: Servicers must provide all homeowners who have requested assistance or fallen delinquent on their mortgage with access to a customer service employee with 1) a complete record of previous communications with that homeowner; 2) access to all documentation and payments submitted by the homeowner; and 3) access to personnel with decision-making authority on loss mitigation options.

* Time and Options to Avoid Foreclosure: Servicers must not initiate a foreclosure action unless they are unable to establish contact with the homeowner after reasonable efforts, or the homeowner has shown a clear inability or lack of interest in pursuing alternatives to foreclosure. Any foreclosure action already under way must stop prior to sale once the servicer has received the required documentation and cannot be restarted unless and until the homeowner fails to complete an application for a modification within a reasonable period, their application for a modification has been denied or the homeowner fails to comply with the terms of the modification received.

• Safeguards Against Inappropriate Foreclosure

Right of Appeal: Servicers must explain to all homeowners any decision to take action based on a failure by the homeowner to meet their payment obligations and provide a reasonable opportunity to appeal that decision in a formal review process.

Certification of Proper Process: Prior to a foreclosure sale, servicers must certify in writing to the foreclosure attorney or trustee that appropriate loss mitigation alternatives have been considered and that proceeding to foreclosure sale is consistent with applicable law. A copy of this certification must be provided to the borrower.

The agencies of the executive branch with oversight or other authority over servicing practices -the FHA, the USDA, the VA, and Treasury, through the HAMP program - will each take the steps needed in the coming months to implement rules for their programs that are consistent with these standards.

3. Announcement of Initial Pilot Sale in Initiative to Transition Real Estate Owned (REO) Property to Rental Housing to Stabilize Neighborhoods and Improve Housing Prices

When there are vacant and foreclosed homes in neighborhoods, it undermines home prices and stalls the housing recovery. As part of the Administration's effort to help lay the foundation for a stronger housing recovery, the Department of Treasury and HUD have been working with the FHFA on a strategy to transition REO properties into rental housing. Repurposing foreclosed and vacant homes will reduce the inventory of unsold homes, help stabilize housing prices, support neighborhoods, and provide sustainable rental housing for American families.

Today, the FHFA is announcing the first major pilot sale of foreclosed properties into rental housing. This marks the first of a series of steps that the FHFA and the Administration will take to develop a smart national program to help manage REO properties, easing the pressure of these distressed properties on communities and the housing market.

4. Moving the Market to Provide a Full Year of Forbearance for Borrowers Looking for Work
Last summer, the Administration announced that it was extending the minimum forbearance period that unemployed borrowers in FHA and HAMP would receive on their mortgages to a full year, up from four months in FHA and three months in HAMP. This forbearance period allows borrowers to stay in their homes while they look for jobs, which gives these families a better chance of avoiding default and helps the housing market by reducing the number of foreclosures. Extending this period makes good economic sense as the time it takes the average unemployed American to find work has grown through the course of the housing crisis: nearly 60 percent of unemployed Americans are now out of work for more than four months.

These extensions went into effect for HAMP and the FHA in October. Today the Administration is announcing that the market has followed our lead, finally giving millions of families the time needed to find work before going into default.

•12-Month Forbearance for Mortgages Owned by the GSEs: Fannie Mae and Freddie Mac have both announced that lenders servicing their loans can provide up to a year of forbearance for unemployed borrowers, up from 3 months. Between them, Fannie and Freddie cover nearly half of the market, so this alone will extend the relief available for a considerable portion of the nation's unemployed homeowners.

• Move by Major Servicers to Use 12-Month Forbearance as Default Approach: Key servicers have also followed the Administration's lead in extending forbearance for the unemployed to a year. Wells Fargo and Bank of America, two of the nation's largest lenders, have begun to offer this longer period to customers whose loans they hold on their own books, recognizing that it is not just helpful for these struggling families, but it makes good economic sense for their lenders as well.

• A New Industry Norm: With these steps, the industry is gradually moving to a norm of providing 12 months of forbearance for those looking for work. This is a significant shift worthy of note, as only a few months ago unemployed borrowers simply were not being given a fighting chance to find work before being faced with the added burden of a monthly mortgage payment.

5. Joint Investigation into Mortgage Origination and Servicing Abuses

The Department of Justice, the Department of Housing and Urban Development, the Securities and Exchange Commission and state Attorneys General have formed a Residential Mortgage-Backed Securities Working Group under President Obama's Financial Fraud Enforcement Task Force that will be responsible for investigating misconduct contributing to the financial crisis through the pooling and sale of residential mortgage-backed securities. The Department of Justice has announced that this working group will consist of at least 55 DOJ attorneys, analysts, agents and investigators from around the country, joining existing state and federal resources investigating similar misconduct under those authorities.

The working group will be co-chaired by senior officials at the Department of Justice and SEC, including Lanny Breuer, Assistant Attorney General, Criminal Division, DOJ; Robert Khuzami, Director of Enforcement, SEC; John Walsh, U.S. Attorney, District of Colorado; and Tony West, Assistant Attorney General, Civil Division, DOJ. The working group will also be co-chaired by New York Attorney General Schneiderman, who will lead the effort from the state level. Other state Attorneys General have been and will be joining this effort.

6. Putting People Back to Work Rehabilitating Homes, Businesses and Communities Through Project Rebuild

Consistent with a proposal he first put forward in the American Jobs Act, the President will propose in his Budget to invest $15 billion in a national effort to put construction workers on the job rehabilitating and refurbishing hundreds of thousands of vacant and foreclosed homes and businesses. Building on proven approaches to stabilizing neighborhoods with high concentrations of foreclosures - including those piloted through the Neighborhood Stabilization Program - Project Rebuild will bring in expertise and capital from the private sector, focus on commercial and residential property improvements, and expand innovative property solutions like land banks.

In addition, the Budget will provide $1 billion in mandatory funding in 2013 for the Housing Trust Fund to finance the development, rehabilitation and preservation of affordable housing for extremely low income families. These approaches will not only create construction jobs but will help reduce blight and crime and stabilize housing prices in areas hardest hit by the housing crisis.

7. Expanding HAMP Eligibility to Reduce Additional Foreclosures and Help Stabilize Neighborhoods

To date, the Home Affordable Mortgage Program (HAMP) has helped more than 900,000 families permanently modify their loans, providing them with savings of about $500 a month on average. Combined with measures taken by the FHA and private sector modifications, public and private efforts have helped more than 4.6 million Americans get mortgage aid to prevent avoidable foreclosures. Along with extending the HAMP program by one year to December 31, 2013, the Administration is expanding the eligibility for the program so that it reaches a broader pool of distressed borrowers.

Additional borrowers will now have an opportunity to receive modification assistance that provides the same homeowner protections and clear rules for servicers established by HAMP. This includes:

• Ensuring that Borrowers Struggling to Make Ends Meet Because of Debt Beyond Their Mortgage Can Participate in the Program: To date, if a borrower's first-lien mortgage debt-to-income ratio is below 31% they are ineligible for a HAMP modification. Yet many homeowners who have an affordable first mortgage payment - below that 31% threshold - still struggle beneath the weight of other debt such as second liens and medical bills. Therefore, we are expanding the program to those who struggle with this secondary debt by offering an alternative evaluation opportunity with more flexible debt-to-income criteria.
• Preventing Additional Foreclosures to Support Renters and Stabilize Communities: We will also expand eligibility to include properties that are currently occupied by a tenant or which the borrower intends to rent. This will provide critical relief to both renters and those who rent their homes, while further stabilizing communities from the blight of vacant and foreclosed properties. Single-family homes are an important source of affordable rental housing, and foreclosure of non-owner occupied homes has disproportionate negative effects on low-and moderate-income renters.

8. Increasing Incentives for Modifications that Help Borrowers Rebuild Equity

Currently, HAMP includes an option for servicers to provide homeowners with a modification that includes a write-down of the borrower's principal balance when a borrower owes significantly more on their mortgage than their home is worth. These principal reduction modifications help both reduce a borrower's monthly payment and rebuild equity in their homes. While not appropriate in all circumstances, principal reduction modifications are an important tool in the overall effort to help homeowners achieve affordable and sustainable mortgages. To further encourage investors to consider or expand use of principal reduction modifications, the Administration will:

•Triple the Incentives Provided to Encourage the Reduction of Principal for Underwater Borrowers: To date, the owner of a loan that qualifies for HAMP receivesbetween 6 and 21 cents on the dollar to write down principal on that loan, depending onthe degree of change in the loan-to-value ratio. To increase the amount of principal thatis written down, Treasury will triple those incentives, paying from 18 to 63 cents on the dollar.

•Offer Principal Reduction Incentives for Loans Insured or Owned by the GSEs: HAMP borrowers who have loans owned or guaranteed by Fannie Mae or Freddie Mac do not currently benefit from principal reduction loan modifications. To encourage the GSEs to offer this assistance to its underwater borrowers, Treasury has notified the GSE's regulator, FHFA, that it will pay principal reduction incentives to Fannie Mae or Freddie Mac if they allow servicers to forgive principal in conjunction with a HAMP modification.

Ha Ha

An office exec was interviewing a blonde for an assistant position, and wanted to find out a little about her personality.
"If you could have a conversation with anyone, alive or dead, who would it be?"
"I'd have to say the living one."

A Christmas Gift to You, BK Short-Sale and Foreclosure Waiting Periods, FHA Flips through 2012

Having grown up in Utah, my family of six children was not uncommon. My parents, Ralph and Kathryn, after 52 years together are proud to say that from their six children they have 21 grandkids and 5 1/2 great-grandkids. As you can imagine, family dinner at my house has always been pure chaos. But it is that chaos that I miss every holiday and why I have always returned home as often as I could. This past year, however, did not permit much travel, so I had not been home since last year at this time. As such, this past Thanksgiving at my parents was momentous for me. All six children and all but 4 grandkids spent some time at my parents house over the holiday, including spouses and a few strays brought home from college. You would imagine that it would be difficult to have that many personalities in the same household without challenges. But this year was a blessing. This year brought solidarity, and at least for me, a grateful opportunity to mend broken fences and learn an important lesson about my life.

I am the fifth of six children with a mix of five girls and one boy. Needless to say, my brother had a lot of attention, good and bad, placed on him. As his younger sister, I idolized him, I wanted to please him and make him proud of me, whether he wanted the attention or not. After college, he married a girl from St. Louis and moved to the Midwest to complete dental school. His wife was just a few years older than me and we became friends. She was from a great family, she was smart, fun and of course, beautiful. Their life appeared to be the fairytale just as I wanted. But like the way life goes, their fairytale was not without its share of evil witches. Over their twenty some years of marriage, we grew apart, nothing of legends, just many years of growing up and learning that life isn't a fairytale.

It was about 3 years ago that I had last expected to see her, but she did not make the trip to Utah with my brother for a family event celebrating PJ and my marriage. I wasn't surprised. But when my mom called PJ, to tell him my brother and his boys were leaving on the first flight in the morning back to St. Louis, I was taken aback. Out for a run while her family was away, my sister in law had a seizure and was in critical condition in the hospital.

We learned over the next few weeks that she had an inoperable brain tumor that the doctors estimated had been growing for over twenty years. She was given less than six months to live and those months would be spent in and out of treatments, chemotherapy and hospitals. She found out that traditional protocols were not working to shrink the tumor but were in fact speeding up its growth, so experimental treatments were given to extend her life. I can now only imagine how difficult that time was for their family and I'm embarrassed that not once did I reach out to her.

I had not yet spoken to her when I was diagnosed with breast cancer this year. Even though one of the initial cards I received was from her and she included a gift for me, a book on Courage. In fact, it was that book from which I pulled the quote, "courage is not the absence of fear, but moving forward in spite of fear," to let my business partners know about my own battle.

Along with my brother and three of her four boys, she made the trip to Utah this year for Thanksgiving as well. When we finally spoke I immediately felt a change in her. I hoped she saw the change in me. I had the opportunity to spend some time with her alone and we spoke about treatments and healing, difficulties and finally death.

Other than a few moments of uncertainty and fear of my diagnosis, I never thought much about my own mortality. But she awakes every morning facing death's door. She has long surpassed her doctor's expectation of her life, but she has never stopped living it.

When she talked of her own survival, she knew her time was short. Her goal was to survive until July when her son returns from a two year stay in Chile. This took me back as to how final that felt. How would it be to ultimately know that today was your last? She was content. She lived the past three years exactly as she wanted to live it. She couldn't say, I'll do better tomorrow, or I'll change tomorrow, what she would be was determined today.

Knowing only slightly the tremendous amount pain, suffering and fear she has endured, I could not help being amazed at how she has embraced this tragedy for the opportunities it gave her. Imagine for a minute if you knew how long you had left to live, what would you do different? Would you argue with your spouse or children less? Would you let things go unsaid or would you challenge yourself to do more? Would your personal and professional goals be different?

My sister in law chose to spend her days traveling to Egypt and the Holy Land. She went on a photographic African safari and she spent time in Paris. But more importantly she became the mother, wife and friend she wanted to be.

What a tremendous gift that my sister in law gave me this year. She made me look at my own life and ask "how do I want to spend the last days of my life?"

I want to make a difference...in the lives of my family, friends and customers. Others have given so much to me, so I want to be able to say I have given back. That I made someone's life better, because I was a part of it. As the year comes to a close, it is the perfect time to reflect on our lives and look forward with a plan to become better personally and professionally.

Even though I know I will beat breast cancer, I also know that every single day I am one day closer to my last, be it in 6 months or 60 years from now, and I want them to count.

I wish each of you a Merry Christmas and hope you have an incredible New Year!

Thank you for your business, your referrals, your kind words and your friendship.















Foreclosure, Bankruptcy and Short Sale Waiting Periods


FNMA, FHLMC, FHA and VA Requirements

2012 already has the economists predicting another tough year for the real estate industry. Property values, economic and unemployment concerns as well as legislative and regulatory measures look to reduce production even more. While this ominous outlook may scare the faint of heart, it makes the true professionals in our field dig deep and find new ways to earn market share.

One niche, not to be ignored is your own previous client database. Those clients that you represented in a short-sale or assisted in bankruptcy or foreclosure may be your best asset in 2012...if you know the rules.

My Christmas gift to you is the knowledge of how to find these customers.

Review the attached WAITING PERIODS CHART to see what customers of yours may be eligible to purchase this year. Be proactive with your clients before someone else is.

Keep in mind that you will want to prepare those clients who may be eligible, about 6 months prior to their eligibility. This will allow time to fix any erroneous credit items, build or establish new credit or possibly save for the down payment.

I hope this tool will help you with your business in 2012. We would love to be your lender this year! If you have any questions, please feel free to contact myself or Greg.

FHA Extends the Property "Flipping" Waiver through 2012

We will do FHA Property Flips Greater than 120%

On December 22, 2011, in an effort to continue stabilizing home values and improve conditions in communities experiencing high foreclosure activity, FHA announced they would extend FHA's temporary waiver of the anti-flipping regulations.

With certain exceptions, FHA prohibits insuring a mortgage on a home owned by the seller for less than 90 days. In 2010, FHA temporarily waived this regulation through January 31, 2011, and later extended that waiver through the remainder of 2011. The new extension will permit buyers to continue to use FHA financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. It will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

The extension is effective through December 31, 2012, unless otherwise extended or withdrawn by FHA. All other terms of the existing Waiver will remain the same. The Waiver contains strict conditions and guidelines to prevent the predatory practice of property flipping, in which properties are quickly resold at inflated prices to unsuspecting borrowers. The Waiver is limited with the following conditions:

•All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
•In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the Waiver will only apply if the lender meets specific conditions and documents the justification for the increase in value.

There are additional documentation requirements for properties pursued under this waiver, so please contact me if you have any questions!

Ha Ha
A Russian couple was walking down the street in St. Petersburg the other night, when the man felt a drop hit his nose. "I think it's raining," he said to his wife.

"No, that felt more like snow to me," she replied. "No, I'm sure it was just rain, he said."

Well, as these things go, they were about to have a major argument about whether it was raining or snowing. Just then they saw a minor communist party official walking toward them.

"Let's not fight about it," the man said, "let's ask Comrade Rudolph whether it's officially raining or snowing."

As the official approached, the man said, "Tell us, Comrade Rudolph, is it officially raining or snowing?"

"It's raining, of course," he answered and walked on. But the woman insisted: "I know that felt like snow!" To which the man quietly replied:

"Rudolph the Red knows rain, dear!"

Thanksgiving Gratitude

I would guess that everyone has a favorite holiday. I actually have several, so when I was young, I divided them into subcategories. These were well thought out, time tested and each had their specific reasons for their placement. As an example, my favorite gift-giving holiday is Christmas followed closely by my birthday, the order determined because of the volume of gifts. My favorite non-gift-giving holiday is Halloween because I love the creativity of the costumes and it reminds me of fall, which is my favorite season.  My favorite partial gift-giving holiday is Valentine's Day, as it is always fun to celebrate love. I also have least favorite holidays as well; for example, Easter is my least favorite partial gift-giving holiday because my family never got in to the extravagant gift baskets and since we went to church every Sunday my parents did not feel it was an event that necessitated a new dress. Finally, my least favorite non-gift-giving holiday has always been Thanksgiving. There are several reasons for this. Primarily, I would take ham over turkey any day, and second of all I don't like to cook. I wish I had that gene, but I just don't and my family is well aware of it. Lastly, I never understood the desire to stuff yourself to the point of misery, then of course since I don't do the meal preparation, I ultimately have the job of cleaning up, which is right up there with my disdain of cooking!

As you can see, my categorization system has always been superficial at best as I spent so much time caught up in the "celebration" of the holiday, rather than the true meaning behind most of these events. This year, however, has given me so many opportunities for gratitude that I can't express how much I welcome this season of giving thanks. What has been given to me over the past year, I don't think I could thank enough people, enough times to parlay how grateful I have been.

I think being sick for so long has made me recognize how the smallest things make such a big impact in a life. Or maybe it is the uncertainty of adversity that has us recognize the small acts of kindness, blessings we forget about or even inspirational influences of others that make us eternally grateful for the life we have been given, even with its many challenges.

You may know that my family is of the "yours, mine and ours" variety. PJ has a 17 year old son and 14 year old daughter from a previous marriage as do I with my 11 year old daughter. Kate, the two year old, is ours together although it is often that we think she is the spawn of the devil. What many may not know is that Mary, the 14 year old is autistic in the Asperger's spectrum. If you don't know, those with Asperger's are typically characterized as having significant difficulty with social interaction. They tend to be very literal, missing non-verbal cues and communicate without a filter. PJ's daughter is very high-functioning in many ways. She has good and bad subjects in school; she has Bieber "fever" with posters of the star all over her room and has moments of teenage sass that often tries my patience. But at home it is easy to forget her struggles, that is until she is placed in an unfamiliar setting or environment when her anxiety skyrockets and she completely melts down.

But our family has spent the last four years doing what we can to help her out of the isolation she sometimes creates for herself. We have encouraged her to become more engaged with girls her age, getting her more involved in church programs and trying to get her more comfortable in social settings. These girls from church are tremendous and have been nothing but kind and genuine with her. In fact, there was a church youth dance this past weekend and Mary was invited to go with a girl her age. This girl is beautiful, bubbly and kind. She invited her to come early so they could get ready together and of course...be fashionably late. Even though this young girl has many friends and her outer beauty is apparent, she showed me how beautiful she is on the inside through her selfless care of our daughter. 

About an hour after they arrived at the dance, PJ got a text from the girl saying that he may need to come pick them up because our daughter was crying and didn't want to stay as she didn't know anyone and it was a loud new environment. This young girl, with plenty of friends went out of her way to comfort Mary, help her and looked after when she could have easily been embarrassed and upset when her night had been ruined. Not many teens would be more concerned with a friend who needed such care, than her own good time.

I felt horrible all night that Mary would be embarrassed and be even less willing to expand her social interactions and that her friend would also regret extending herself to the benefit of our daughter. Yet, the next morning, she came down for breakfast and I told her I was sorry she did not have a good time at her dance, and much to my surprise her response was, "it was ok...I was just nervous because it was my first dance." She went on to tell me how she was even asked to dance once. She literally beamed while she spoke of an event that many youth take for granted. You could see in her eyes how good she felt to be included in something that was age appropriate and with someone she could call a friend. As a parent, or in this case, a step parent, I was filled with such gratitude for this small act of kindness not only for this beautiful young friend, but for her parents for raising such a good influence on others. I doubt this young girl will ever realize the full impact she had on us that night.

Having never experienced the health challenges that I have endured this year, I have had my eyes opened wide to the incredible compassion of others. In a time where I have felt the least confident, the least independent and the most useless, I have been the recipient of such incredible acts of selfless kindness. I have had so many shoulders to cry on, I have had very personal gifts sent from strangers and I have been constantly reminded that people care about me, which in the toughest times have kept me going. At 40 years old, finally I have genuinely felt the importance of Thanksgiving. It is not about the food or the time off or even cleaning dirty dishes. It is the daily reminder of the blessings we have. It is the awareness of the good in others, the gratitude you can't express because a simple "thank you" would not be sufficient and it is the warmth of knowing how blessed our lives are because of the compassion of others.

This year, Thanksgiving means more to me than any of my frivolous holiday categorizations. It is my chance to remember and give thanks to you for helping me and my family through some very difficult trials. But more than anything, it is my opportunity to spend time with my family who has been my foundation to get through this long road to survive cancer. I hope you all have a wonderful Thanksgiving and that you will have the opportunity to recognize all of those who have selflessly been there for you this year.
Have a Happy and Safe Thanksgiving.

Ha Ha
Grandma: What would you like for dessert, Joey?
Joey: Pumpkin pie!
Grandma: Pumpkin pie, what, dear? Say the magic word.
Joey: I'm sorry, Grandma. Pumpkin pie, abracadabra

Changing Perspective and HARP 2.0

A few weeks ago I spoke to a very professional group of real estate agents on "Changing Perspectives...FHA is SO 2010!" A class based upon reevaluating conventional mortgage insurance as a way to drive new business. I began this class with two questions... "How many of you think that the real estate market is incredibly tough?" Most hands raised in the room. I also asked, "Has anyone ever just thought about giving up, that it may not be worth it?" Still, hands remained, even in this this room of successful and career agents. I agreed, especially in this past year, where I felt that enough was enough. I mean, the AZ mortgage and real estate market, the political landscape and if that weren't enough...breast cancer? Just like many others, I have had my "bad" days, my "feel sorry for me because I have things so tough" days. But as I told those in class, a change in my perspective was needed.


A few days prior I had a "Doctor Day", a day that my husband and I spent most of our time at doctor's appointments. Those days are more difficult as both of us work and it is challenging to get everything done.

Our first appointment was with my plastic surgeon, William Leighton, who made a name for himself in his field many years ago, but more recent his infamy came from the fact that he was the plastic surgeon to former Phoenix police officer Jason Schechterly, who was severely burned after his police cruiser blew up.

Usually, we would be done and on to the next appointment in less than 30 minutes. But that day, we were informed that Dr. Leighton would be a few minutes late as he had an emergency he had to handle in the office. As we waited, the stress of the delay began. Again, the nurses came out to apologize for the delay, and we waited. At this point, my husband and I unexpectedly had both been away from our phones and computers for close to an hour and my patience for this "emergency" had long gone and now my concern for making my next appointment grew. When the nurse finally said he would see me, I passed the "emergency" woman in the hall. She had her head wrapped, but you could see the visible stitches around her eyes and nose and the obvious swell and bruises you would expect from facial surgery.

As PJ and I walked in to the exam room, I turned to him and spitefully said, "Seriously...a face lift? That was the emergency???" And in my self-absorbed brain, I thought, really?? I have cancer and I have so much to get done in such a small amount of time, things are so hard, and it's the end of the month and clients are getting upset and stressed, now I'm going to be late for the next doctor and I am never going to get everything done!

But Dr. Leighton came right in and apologized for the delay and, before I could stop myself I said, "So...did a stitch break in her face lift?" But what I heard next will forever be a reminder to me that sometimes our perspective may be wrong, and we are in control to change it.

Dr. Leighton said to me, "Oh, I have to tell you about that woman, she is so incredible." He told us a story about how he had missed a flight, and while he was stuck waiting he happened to sit next to this woman who had severe burns all over her face. They chatted and he finally asked her what had happened. She described how her family returned from vacation and she went to start dinner. With her children in tow, she went to the kitchen and turned on the stove. Unbeknownst to her, the regulator had broken and the stove blew up in their faces. One child was sent to Shriner's in Boston, the other in Houston and she was treated at home in Tucson. Amazed by her story, Dr. Leighton asked her how many more surgeries she had left, but to his surprise she said, "Oh no, I am done. We have tapped out our insurance and they won't pay anymore." So he gave her his card and told her, "When you get back home, call me."

I already felt horrible for my terrible attitude and outlook that I possessed just minutes earlier, but Dr. Leighton continued. This woman did in fact call and as he put it, "it was the coolest thing!" He used "expanders", just like I have now, but he put them in her neck to stretch her skin enough to be able to cut away the burn and pull her new "expanded" skin up to be stitched under her eyes, ears and mouth, hence why she looked as if she had a face lift. He excitedly continued, as if I could not feel worse, that he had been able to get the expander company, the hospital, the anesthesiologist and of course himself to donate their time and facilities to help this woman he met solely because he had missed his flight. He told us her bandages had been removed the day before but one of her stitches that held up her cheek broke, thus the emergency that morning.

So I sat there, uncomfortable and sore as the doctor injected saline into my own expanders to stretch my skin enough to eventually hold the implants in place and I thought about how good I had it. I was embarrassed about how quick I had let such insignificant irritants affect my entire mood. It was so easy to fall into the "poor me" negativity and attitude. At that moment, however, my perspective changed. I sat there and thought about how much a delayed flight had meant to this woman's life, and how incredibly lucky I was.

Understand that what I have endured has not been easy. Breast cancer is difficult. There are horrible days. Days that I don't get out of bed or want to. It made me sick. It continues to hurt. It forced me to think about things that I don't want to have to think about. It has been very hard for my supportive family. My husband should be the one with the moniker of "Survivor" for all he has had to go through. But that morning while I sat at my surgeon's office, I realized how much good I had around me. I was given the chance to have my perspective changed, and I took it.

We face so many challenges in life; at home, at work, the aggravations seem so important and horrible that we evaluate everything from that viewpoint. Yet, somehow we survived. When I look back, I see so many of my struggles were temporary. They were just bumps in the road. Granted, some bumps have felt like my muffler was ripped off, but bumps just the same. Nonetheless, as hard as it was to see through these difficulties, I should have used those occasions to find opportunities, to learn, to grow, to prosper and often to impact others in positive ways.

So I make this challenge to each of you as I did to the real estate group that day. How can you change your perspective to recognize hidden opportunities for good? With so many difficulties that surround us day to day, I believe we can make an impact in our personal and professional lives with even the slightest change in our perspective.

I hope you have a great and prosperous weekend. Please let me know if I can be of assistance to you or your clients.


A Life-Preserver for Those with Underwater Mortgages

Is This for Real? Understanding the Options to Refinance

The Federal Housing Finance Agency (FHFA), with Fannie Mae and Freddie Mac, had announced a series of changes to the Home Affordable Refinance Program (HARP) in an effort to attract more eligible borrowers who can benefit from refinancing their home mortgage, ie those homeowner's who are "underwater" by more than 125%. HARP 2.0 as it has been aptly named, has the potential to help thousands of homeowner's in Arizona who can afford their homes and who have made their payments and who could free up cash-flow through a refinance.

Although lenders are not expected to be able to offer the program (through the Automated Underwriting System) until December 1, guidelines detailing the program have been promised on November 15th by the agencies. One thing to remember is based upon earlier details...YOU ARE NOT REQUIRED TO REFINANCE THROUGH YOUR CURRENT SERVICER. The expectation of the industry is that Arizona will be a major recipient of those who intend to use the program, so my suggestion is to contact me as soon as possible with your contact information and address to make sure you are in line before the pipelines get clogged. Your current loan MUST be a FNMA or FHLMC owned loan originated prior to May 31, 2009 to qualify for this program.

But don't forget that if you or your clients have an FHA or VA loan that is underwater, there are also programs available that do not require appraisals that take advantage of the low interest rates.

Ha Ha
Forest Gump had a near-death experience that changed him forever. He went horseback riding one day and everything was going fine until the horse started bouncing out of control. He tried with all his might to hang on, but was thrown off. Just when things could not possibly get any worse, his foot became caught in the stirrup. When this happened, he fell head first to the ground. His head continued to bounce harder as the horse would not stop or even slow down. Just as he was giving up hope and losing consciousness ... a thoughtful K-Mart manager came out and pulled the plug.

The Hand and The Glove and What the VA???

For the past several months I have had the extraordinary pleasure of teaching Sunday school to a remarkable group of 14-15 year old girls at our church. Ironically, the Sunday that proceeded my surgery the lesson was to teach these girls about how each individual is divine and eternal. Basically, it was the standard "what is beautiful on the inside is what is important." Yet this was a profound learning experience to me and somewhat apropos in that the following Friday I would endure a surgery that would, by all accounts, disfigure my body at least we hoped for the short term. My daughter Elli, who is way beyond her 11 years, found the object lesson that I used to relate to the girls, particularly interesting.

The lesson called for several different varieties of gloves, i.e., work gloves, leather gloves, bike gloves, winter gloves etc. Each girl was asked to put on a different glove and tell the purpose of that glove to the group; the consensus being that no matter the glove chosen the only purpose of that glove is to protect and cover the hand. You see, without the hand, the glove has no function, no objective. In other words, what is on the inside is really the part that matters, not at all what covers it on the outside. So no matter what the glove looked like, how pretty, how utile, or how many bells and whistles it had, without the hand underneath, the glove was without usefulness. I guess what they say about "be careful what you wish for" is an understatement because I very much wanted my daughter to understand this concept

It has been a particularly tough few weeks at my house. As chemo ended, one would think the effects would end as well. So just tuck this little nugget of knowledge away for future reference...it's not the case. The neuropathy is still hanging in there and in a cruel joke, there are areas of my hands and feet that actually look and feel as if I have burned myself from the inside out, complete with the dryness, the darkening spots and let's not forget the peeling of the dead skin. If that weren't enough, as an added bonus, my eyebrows and eyelashes waited until AFTER I finished chemo to fall out. So with my fuzzy head and my hairless face and if I walk with a slight limp, I could easily pass for Marty Feldman in his role as Igor in Mel Brooks, "Young Frankenstein."

In addition to these lovely treats, I am home from a bi-lateral mastectomy, with its accompanying wounds and scarring, so I have to say I have been a tad self-conscious. It seems every day as I get up and look in the mirror and my smile starts to fade as the reality of my current juncture of life looks back at me, without fail, there stands my 11 year old reminding me..."It's not about the glove, Mom, it's about the hand."

What can I say, my preference would obviously be an exquisite pair of cashmere lined Italian leather gloves at this point in my life, but as my articulate and intelligent daughter points out, the worn out, weathered ill-fitting work gloves that I have been given have done its job because these gloves made sure they fulfilled their purpose...to protect what is on the inside. In fact these gloves worked overtime to make sure I was reminded about the real importance of the "hand."

What a lesson I have learned about the importance of what's on the inside. The graciousness of those who hardly knew me and some that didn't know me at all, took the time to go out of their way to make me feel special. The customers and clients who knew of my struggles continued to support me even with the knowledge that there might be small trials along the way. Business professionals who knew that a phone call and a desire to do what was right meant more than the easy way out...no matter how hard that phone call was to make. Those who just took the time to say hello and that they have been thinking of me. Those who went the extra mile to help someone in need even when it meant some sacrifice on their part.

A mink fur, hot pink imported designer glove would be great, but without the correct hand underneath, it will not do any of these things that really are important. They don't go out of their way to try to make your life better without regard to how it benefits theirs. I hope I have learned to make sure I put my best "hand" forward, in all I do. Wayne Dyer reminds us, "I cannot always control what goes on outside. But I can always control what goes on inside."

Professionally I think am faced with this concept all the time. Where do I want to refer my business? Who do I want to do business with? Does the flash matter? Is it the latest and greatest trend that I want to chase after or is it the one who through all the easy and tough times works to make sure the job gets done? Do I give my best and do what is right through the good and the bad times?

Although the glove I wear right now might not be my first choice, it is worn and it is tattered yet I feel so lucky. I am alive and on the mend. My pathology reports from surgery have confirmed very excellent results. The invasive cancer was minimal, only one of my lymph nodes of the 11 taken was positive for cancer, which was successfully killed by the chemo and finally the large mass of DCIS (ductal carcinoma in situ) was removed. Although the pain of surgery still remains and will continue for a while, I have been given good drugs...ha ha... and there will only be a very small area where radiation will be required. I guess these old work gloves are the ones I needed and I will hold thems close tomy heart.

Thank you again for your continued inspiration and especially your support and business and I hope you have a GREAT week.

Amy


The VA Changes it's Funding Fee, then changes it again and then again...


Loan Fee Structure for VA-Guaranteed Loans


The President signed HR 2646, Veterans Health Facilities Act Capital Improvement Act of 2011 on October 5, 2011.


The bill included a provision resulting in the VA Funding Fees reverting to the same rates that existed prior to the announcement October 1, 2011 for loans closed October 6, 2011 through and including November 17, 2011.

For simplification of what the funding fee is based upon closing dates I have incuded a VA FUNDING FEE CHART here.

Possibility of Future Funding Fee Changes. VA believes it likely that Congress will pass other legislation in the coming weeks that will make additional changes to the funding fee structure. Should this occur, VA will immediately publish a notice on www.benefits.va.gov/homeloans


Ha Ha

If you want to know more about paranoids, follow them around.

The Devil You Know...

I love idioms…not idiots, idioms. Heaven knows I don’t love idiots! Idioms, however, are fascinating. They are described as an expression of two or more words that mean something other than the literal meaning of its individual words. An example of this would be, “the devil you know versus the devil you don’t know.” If I were to use that expression to a group of people, few if any, would actually believe that I had made the acquaintance of Lucifer. They would understand that this statement meant that I may have chosen to remain in dysfunctional “comfort” rather than make a different choice for fear of the unknown.

That idiom has taken up permanent residence in my mind this past week as I hit a couple milestones in my life. I addition to my membership in the coveted 40 and over club, I endured my final treatment of chemotherapy as well. After 18 weeks of “hell”, you would think that I would be doing backflips knowing that this terrible phase of my life was over. Maybe it is the fact that my body feels like it is 80, or maybe it is just that I am so exhausted all the time that the backflips just didn’t happen. Don’t get me wrong, I am glad it is finished, but for some reason I don’t feel the elation I thought I would now that it is over. In fact, it is a little frightening to leave the miserable comfort that had become my life, because now I now have to face what comes next.

Change no matter the benefit is often a scary thing. American author Marilyn Ferguson wrote, “It's not so much that we're afraid of change or so in love with the old ways, but it's that place in between that we fear . . . . It's like being between trapezes. It's Linus when his blanket is in the dryer. There's nothing to hold on to.”

I can honestly say I don’t have much fear about the surgery, I’m not the first to go through it and unfortunately I won’t be the last and radiation appears to be a nuisance more than anything. It is the “unknown” that gets to me; all the devils that I don’t know that make finishing chemo a bittersweet experience.

As awful as chemo was, it is what I knew. I knew the schedule. I knew that other than a slight prick when they stuck the needle in my port that it really wouldn’t hurt. I knew that after about an hour I would get a headache from the steroids which would last for about 30 minutes and soon after that I would get impossibly sleepy from the Benadryl they gave me to thwart off any allergic reactions I could have to the chemicals. I knew that I would be starving when chemo ended and PJ and I would go grab lunch because by the time we finished eating, my body would be drained and ready to rest for the evening. I also knew that I would go back to the oncologist the following day for the shot that would boost my white blood cells. The same shot that would make every inch of my body hurt so much that even a hug from my 10 year old daughter could bring me to painful tears. The bright side was that I knew that pain would subside a little each day until finally the only reminders I had left of the cancer was the chemo port under my skin, the severe tingling in my hands and feet and the reflection I saw of my bald head in the mirror. Although it was the devil, it was the devil that I knew.

It is frightening not to know how you will feel. Scary to wonder how you will handle the upcoming challenges you face. In my case, my thoughts focused on what if something goes wrong? How will my children handle the physical changes of my body after surgery? What will my husband think of me? How will I feel about myself? Surgery is permanent. Even though it means that all the cancer will be gone and I will have survived. There are no “do-overs” if I don’t like this devil that is unknown to me...and that is scary.

Yet in my rational brain, I remind myself that I survived chemotherapy. As miserable as the worst days had been, with a tremendous amount of support, I survived it and it is over. I should be...doing backflips.

So why is it that we embrace the comfort of what we know, even if what we know is miserable? Do we sabotage our successes everyday by hiding in our comfort zone? Does our fear of the unknown paralyze us from moving forward, obtaining our goals or achieving things we did not think possible?

Change, in any form, does not occur without a little discomfort. It might be relocation, a change in jobs, and the birth of a child…or even the end of chemotherapy. I hope that I won’t continue to let the comfort of the “devil I know” keep me from the possible paradise that may be waiting for me with the “devil I don’t know”…well at least not yet.


Have a great week.

Blessings in Disguise, How Low Can They Go and Beware of What You Say

What seems to us as bitter trials are often blessings in disguise. - Oscar Wilde

As I sat in my living room with my husband, my mom and my doctor, hearing for certainty that I in fact did have breast cancer and I would be facing a long uphill battle, I distinctly remember my husband saying, "Boy there better be some BIG blessings that come from this one!" Although I don't think at that point I was prepared to see the silver lining yet, I did concede that I would welcome the rainbow and pot of gold at the end of this storm.

I only have just one more chemo treatment left before I move on to Phase 2 of my fight with breast cancer...surgery. Part of this prepartion requires that I determine whether or not radiation will be necessary. Radiation kills any remaining cancer cells in a localized area, but for me, it will also determine whether I can start the reconstruction surgery at the time of the mastectomy or if I will have to wait up to a year to begin.

As I have discussed, patience is not really a character trait of mine, so obviously no radiation would be considered awesome! Radiation immediately after the initial surgery also means that my reconstruction becomes more complicated with additional scarring as they would take skin and muscle from either my back or tummy to replace the radiated skin which does not stretch well. (Although the tummy option really did sound enticing, because who wouldn't want a little rejuvenation after having kids! Unfortunately, it adds significant risk without the promise of excellent results...bummer.)

Therefore the preparation for Phase 2 means that I met with a radiation oncologist this past week who, to my chagrin, indicated radiation would be highly recommended in my case to avoid possible reoccurrence. So it looks like six weeks of daily radiation treatments are in store for me after surgery. The great news, however, is that the doctor stated he felt comfortable enough to delay treatments for 2-3 months in order to avoid the more complicated reconstruction surgeries! Even though radiation will be a hindrance, the fact that I can avoid riskier surgeries was a huge blessing to me and my family.

Not having had enough fun with cancer that day, I next met with my oncologist. In the lobby, there was an older woman who had recently lost her hair with her head down, a brace on her leg, and a walker close by. As I checked in, I was chatting with the receptionist about her week, when this woman looked at me and said, "I want to look like you...how come you feel so great. I feel horrible." Now it's obvious that we all know that I AM NOT going to be winning any beauty pageants here in the future, with my bald head, my chemo water weight gain and my slight "roid rage" that my husband says I have from all the steroids in the treatments. But I still thanked her and found out she was on the same treatment protocol as me.

After my appointment, I went over to her to say good-bye and good luck and we started talking. She was having a really tough time and several times struggled to hold back her emotion. She told me how she and her husband had just sold their home to start traveling and that both just landed great jobs which would allow them the flexibility and income to do just that, when she had a mammogram and was told she had breast cancer. They were technically "homeless" so they moved to Phoenix to stay with her daughter's family which included 5 young children. She contracted gout in her leg while seeing a different doctor and was receiving her third "red devil" treatment. As I listened to her story and her pain and her heartache of this cancer diagnosis, I had so much empathy for her as I knew exactly how she felt.

I would not be able to count how many days have I had to drag myself out of bed to not only be faced with stress and concern over my family and my customers, the economic morass of our country but also as the logistical cluster of appointments, treatments and insurance coverages. Every day, I also knew that my body would be making its own decisions as to the degree of cooperation that it would give me. But, as I looked back over the past 17 weeks, even with such sore hands and feet from neuropathy, the muscle and joint pain that makes me feel as if I am 9 months pregnant and the constant feeling of exhaustion...I still feel so lucky.

The blessings are so much easier to see when you look for them.This week I was able to take my 10 year old to her first day of 5th grade. I get to see my two year old run across the room to me with her cheesy grin to hug me and I spent a great weekend with PJ's kids preparing them for school. Everyday I get to wake up next to my best friend who loves and cares for me so much...and yes I am talking about PJ...haha. Both of our families have been so supportive of us. I can't imagine how I got so lucky to be born into an incredible family and then how I doubled my luck when I married into PJ's. I had the opportunity to team up with a great business partner who has jumped in with both feet to make sure our clients are well taken care of. I am blessed to be surrounded by incredible professionals in real estate who are inspirational with their continued success in one of the hardest hit and most difficult markets in the country. And I have these friends...some in the mortgage banking industry, some from church and some who I have known my whole life, who make me feel so loved. Oh how abundant my blessings have been.

Yet, as I looked into the eyes of this woman, I knew how hard it was going to be for her to get through this, but I wanted her to know that it would get better. I wanted her to know that this was just a bump in the road and even though it was hard, she didn't have to let it take over. She was so thankful to be able to talk to someone who had been through it and I was so grateful to give a little happiness back, because so much had been given to me.

I would venture to say that there is no one among us who hasn't faced some serious difficulties in the past few years. Many have suffered severe economic stresses including job or income losses, some may have lost the roof over their head. Others have had illness or death come into their homes. As difficult as all of these things may have been or may continue to be, you have two choices. You either let the difficulties become your roadblock, your reason to give up and be miserable or you start figuring out how you are going to make it over this hurdle and along the way open your eyes to the many blessings that you will receive from it. Believe me there will be days that you just want to sit down and stare at this mountain in front of you and wonder...why me? But remember this mountain will look a whole lot smaller from the other side, and getting to the other side takes effort, sometimes hard work, probably a little pain and sweat, but inevitably it will have been worth it.

I want to thank you for your continued support, your faith in entrusting your clients to me and your friendship. I hope you have a great week and are able to take the time to recognize the many blessings that you have been given.

Amy


Thank you again for your continued support and referrals!


How Low Can It Go? How Low Can It Go?
How funky is your monkey? How loose is your caboose?
How low is your interest rate...Refi now before it's too late!


By now you have heard that rates are ridiculously low. If you haven't...rates are ridiculously low. "Lows" like this WILL NOT be able to sustain themselves forever. You should consider the following when reviewing whether refinancing might be right for you OR your clients...

• Even if you don't have equity, there are some qualified programs that do not require an appraisal.

• It may be time to consider a 20 or even 15 year loan that may save you thousands in interest.

• You may want to review a "cash-in" refinance. By applying additional principal to your current "jumbo" loan to obtain a lower "conforming" loan interest rate.

• Mortgage insurance costs have dropped so even if you might not have the required equity to avoid mortgage insurance, refinancing still may make financial sense.

• The "Making Home Affordable" refinance program allows qualified loans up to 105% LTV on primary, secondary AND investment properties WITHOUT mortgage insurance IF the current loan does not have mortgage insurance.

A lower payment is not the only reason to consider a refinance with the low rates available today. Please contact us SOON if you are interested in finding out your options.

The Mortgage Act & Practices Rule - Advertising Final Rule, Applies to ALL
The ban of deceptive claims and practices that may occur with regard to mortgage advertising will apply to YOU!

On August 19, 2011, the FTC's Mortgage Acts and Practices ("MAP") - Advertising Final Rule, which bans deceptive claims and practices in mortgage advertising or other types of commercial communications, will go into effect. Without exception, anyone "covered" under the FTC's jurisdiction that advertise mortgages, will be liable under the Rule, including mortgage lenders, brokers, and servicers; real estate agents and brokers; advertising agencies; home builders; lead generators and title companies.

The Rule defines a "commercial communication" as:
"any written or oral statement, illustration, or depiction, whether in English or any other language, that is designed to effect or create interest in purchasing goods or services, whether it appears on or in a label, package, package insert, radio, television, cable television, brochure, newspaper, magazine, pamphlet, leaflet, circular, mailer, book insert, free standing insert, letter, catalogue, poster, chart, billboard, public transit card, point of purchase display, film, slide, audio program transmitted over a telephone system, telemarketing script, onhold script, upsell script, training materials provided to telemarketing firms, program-length commercial (''infomercial''), the Internet, cellular network, or any other medium. Promotional materials and items and Web pages are included in the term ''commercial communication''

The FTC also declined to exempt advertising agencies or real estate professionals from the Final Rule, stating: "These types of individuals and entities,...can make direct or indirect misrepresentations to consumers about mortgage credit products, causing consumers harm."

To provide clarity as to what constitutes "deceptive practices" the Rule gave a nonexclusive list of misrepresentations that would be violations. I have included some of the examples...

1) Any misrepresentations about the existence, nature, or amount of fees or costs associated with any mortgage credit product. This includes false or misleading claims that no fees are charged, for example, if the fees and costs in fact are incorporated in the loan amount or total amount due.

2) Any misrepresentations about the APR, simple annual rate, periodic rate, or any other rate, including, but not limited to, a payment rate.

3) Any misrepresentations about interest charged for the product, including, the amount of interest owed each month that is included in the consumer's payments, or loan amount.

4) Any misrepresentations pertaining to the variability of interest, payments, or other terms of mortgage credit products, including, using the term ''fixed'' when terms are, in fact, variable, total amount due; or the interest owed each month that is not included in the payments but is instead added to the total amount due.

5) Any misrepresentations relating to the taxes or insurance associated with a mortgage credit product, for example, claims about whether tax or insurance charges are included in the overall monthly payment or must be paid separately.

6) Any misleading comparisons between rates or payments. This provision also bars false or misleading comparisons between rates or payments available for different parts of the loan term, including, comparisons involving savings. It also is intended to cover false or misleading savings rate claims in financing promotions. For example, deceptive claims that consumers will save money (such as at a particular rate of savings) by accepting a credit offer.

The final Rule also requires any covered person or entity to keep copies of ANY mortgage related advertising for a period of 24 months.

Be aware...be honest...and...retain copies of your honesty. To review the final rule, CLICK HERE.

If you would like to learn more about regulatory changes that will impact our market become a fan at my facebook page Amy Swaney, CMB.

Ha Ha - In preparation of my 40th!
You know you are getting older when...
An all-nighter means not getting up to pee.
Conversations with people your own age often turn into dueling ailments.
Getting lucky means you find your car in the parking lot.
Happy hour is a nap.
Its tougher to lose weight because your body and your fat are really good friends now.
Older relatives feel comfortable telling sex jokes around you.
Sleeping on the couch makes your back hurt.
You actually eat breakfast food at breakfast time.
You answer a questions with "Because I said so!"
You go from hoping for a BMW to hoping for BM.
You have more patience...but actually it is just because you don't care anymore.