Mortgage assistance for the unemployed?

Ought to be interesting to see if this program proves any more effective (or realistic) than the loan modification or HARP programs.  As a mortgage originator who has seen first-hand the effects of the current economy on hard-working, honest people, there are certainly people hurting through no fault of their own.  So, I’m all for creative programs to help borrowers in the interim.

However, as a tax-payer, I do stress over how the program will be funded and when “the bill” will come full circle and hit our pocketbooks.   I also can’t help wondering if the people who design these programs have ever worked for a bank (since banks are being required to write-off at least 10% of the debt in order for their customers to meet eligibility requirements) or if they’ve ever originated a loan?  I can’t help but think that there must be a “happy medium” solution.

Rural Development (USDA) Program – Funding Questionable

Towards the end of past funding cycles, USDA has typically issued conditional commitments pending a new cycle of funding.  It’s looking like the “new cycle of funding” is more questionable than usual this time around, so no conditional commitments will be forthcoming when current funds are exhausted.

Hopefully, this is just USDA preparing for the worst-case scenario and additional funding will, indeed, come through.  But regardless – when coupled with efforts to increase the minimum down payment for FHA purchases to help keep FHA viable – it is definitely not good news for borrowers seeking 100% financing to purchase a home.

Do emotions play a role in financial decisions?

With the crazy rollercoaster ride we’ve all been on for the past couple of years (courtesy of the economy), have the factors that drive our savings, investment and spending decisions changed?  Does “emotion” play a role?  A recent report entitled “Market Cycle of Emotions” provides some interesting insight.  The report was published by Edward Jones and provided to me by Jack Meece, an Investment Advisor with Edward Jones and a valued business partner of mine.  My sincere thanks to him for allowing me to share it here.

Disclaimer:  Always consult your trusted tax, investment, legal, real estate, and/or mortgage advisor to discuss your specific situation, as every individual’s scenario is unique.  Excerpts from this blog are for general informational purposes only and should not be construed as specific advice.

Help for credit card users?

Important information for all consumers, especially those with credit challenges.