Los Angeles Living

This post is inspired by Tim Bradford's blog on the new revised GFE that appears in January.

The revised GFE is another failed attempt to protect consumers,  The problem is, consumers cannot be protected with forms because those who wish to deceive will always find a way.  Consumer education is the only real consumer protection.

The new GFE requires lenders to guarantee their fees but it allows lenders to estimate fees for Title, Settlement, Prepaid Interest and Impounds.  Once again, it appears the rules are made by people with absolutely no understanding of real world lending.

Based on my experience, consumers are less interested in the individual fees than the grand total.   So, guess which fees will continue to be understated.

So, how can consumers be protected?  The answer is only with a little education.

Rule #1 All rate shopping should be on the same day and within a couple of hours

Rule #2 is really simple but, for some reason most people don't get it.

    ANY RATE QUOTE IS WORTHLESS WITHOUT ALL 3 OF ITS PARTS:

    The parts are:

1. RATE... for equal comparison request a 30 day lock price.  
2. POINTS...
3. FEES!!!

    It bares repeating, RATE... POINTS... FEES.

Lets put it to music:
    1, 2, 3  umm papa Rateta da...Points tra la,  Fees tra la
    Like love and marriage, you can't have one without the otherrrrr.

    Ok, So I am not a song writer but it makes the point

Providing credit where credit is due; the revised GFE points out that total lender charges are a function of the interest rate.  The relationship of points fees and rate is an important piece of information.

Note: Forget about APR because it is the most gamed number in lending and with Rate, Points and Fees it is not needed to compare rates from various lenders.  APR is only as dependable as the lender.

Rule #3

Unless a closing date is known... PREPAID INTEREST MUST ALWAYS BE ESTIMATED AT LEAST 15 DAYS!!

Rule #4 requires a little help from Buyer's Agents.

1. Impound amounts vary by the month and locale so every real estate agent should provide their buyers with a local impound schedule.
2. Title and settlement costs vary by locale and every real estate agent should have average fees for title and settlement to provide their buyers.
3. Agents should make their buyers aware of any special state or local fees or taxes.

Note: Most title companies have schedules for impounds, title and settlement fees.

Education is Consumer's Only Real Protection. 
Listed below are some educational articles.

• What You Should Know About APR
• How To Shop for Mortgage Rates.
• Beware of Misleading Lender Advertising
• Education is the best consumer protection
• Rates and Point Relationship Explained

Bill Ladewig

800.664.7283 (SAVE)

Bill@YourFhaGuru.com

Website

 

 

 

Bill Ladewig is a Mortgage Broker Licensed by the California Department of Real Estate 00968137

San Diego FHA and VA Home Loans Escondido Mortgages Escondido Localism San Diego FHA and VA Home Loans San Diego Localism San Diego UFMIP Escondido Mortgages Escondido Localism San Diego Mortgage

Happy Hanukkah! The Original Chanukah Song by Adam Sandler

When Jane Peters left a comment on my last blog post 20 Free Christmas Songs From Apple / iTunes Holiday Sampler about Chanukah songs, it inspired me to write this blog post to feature the only Chanukah song I know...by Adam Sandler:

"Okay...
This is a song that uhh..
There's a lot of Christmas songs out there and uhh..
Not too many Chanukah songs.
So uhh..
I wrote a song for all those nice little Jewish kids who don't get to hear any Chanukah songs.
Here we go..."

Put on your yarmulke
Here comes Chanukah
So much funukah
To celebrate Chanukah
Chanukah is the festival of lights
Instead of one day of presents, we have eight crazy nights

When you feel like the only kid in town without a Christmas tree
Here's a list of people who are Jewish just like you and me
David Lee Roth lights the menorah
So do James Caan, Kirk Douglas, and the late Dinah Shore-ah

Guess who eats together at the Carnegie Deli
Bowser from Sha Na Na and Arthur Fonzerelli
Paul Newman's half Jewish, Goldie Hawn's half too
Put them together, what a fine lookin' Jew

You don't need "Deck The Halls" or "Jingle Bell Rock"
'Cause you can spin a dreidel with Captain Kirk and Mr. Spock- both Jewish

Put on your yarmulke
It's time for Chanukah
The owner of the Seattle Supersonicahs
Celebrates Chanukah

O.J. Simpson, not a Jew
But guess who is? Hall of famer Rod Carew- he converted
We got Ann Landers and her sister Dear Abby
Harrison Ford's a quarter Jewish- not too shabby

Some people think that Ebenezer Scrooge is
Well he's not, but guess who is
All three Stooges
So many Jews are in showbiz
Tom Cruise isn't, but I heard his agent is

Tell your friend Veronica
It's time to celebrate Chanukah
I hope I get a harmonicah
Oh this lovely, lovely Chanukah
So drink your gin and tonicah
And smoke your marijuanikah
If you really, really wannakah
Have a happy, happy, happy, happy Chanukah
Happy Chanukah

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

I'd like to add:

Happy, happy Hanukkah, Jane...I hope you get your Pradakah! :)

 

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"We Dream. We Design. We Build."

Bob Souza & Leilani Souza, CRS, e-PRO, TRC

           

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