Mortgage and Real Estate News

Occupancy fraud, also known as occupancy misrepresentation or occupancy fraud scheme, is a type of fraudulent activity that occurs in various industries, including real estate and insurance. It involves misrepresenting the occupancy status of a property or the intended use of a property for personal gain or to obtain favorable terms or benefits. Here are some common examples of occupancy fraud:

1. Mortgage Fraud: In the context of real estate, occupancy fraud can occur when a borrower misrepresents their intention to live in a property as their primary residence when, in fact, they plan to use it as an investment property or a vacation home. This misrepresentation may be done to secure a lower interest rate or down payment requirement, as primary residence mortgages often have more favorable terms.

2. Insurance Fraud: In the insurance industry, occupancy fraud can occur when an insured individual misrepresents the occupancy status of a property to obtain lower insurance premiums. For example, someone may claim that a property is their primary residence when it is actually vacant or used as a rental property to secure lower insurance rates.

3. Rental Fraud: In the rental market, tenants may engage in occupancy fraud by subletting or renting out their leased property without the landlord’s knowledge or consent. This can lead to unauthorized occupants living in the property, potentially violating lease agreements and causing legal issues.

4. Government Programs Fraud: Some government programs and incentives are based on the occupancy status of a property. Individuals or businesses may engage in occupancy fraud to qualify for these programs when they are not eligible, potentially receiving subsidies or benefits they do not deserve.

Occupancy fraud is illegal and can have serious consequences, including financial penalties, legal actions, and damage to one’s reputation. Lenders, insurers, landlords, and government agencies often investigate and take measures to detect and prevent occupancy fraud to protect their interests and maintain the integrity of their programs and services.

Are many Mortgage Lenders going out of business due to high mortgage rates?

Mortgage Rates are finally dropping fast. JEROME POWELL, The Chairman of the Federal Reserve Board announced yesterday the Feds will not be increasing interest rates for the past two Fed meeting which caused mortgage rates to plummet. The 10 year treasuries started plummeting the past few days from a high of 5.0% to 4.66%

Auto Repossessions are nearing 20,000 per day and increasing month after month by 5%

Here is an informative article on how mortgage lenders price mortgage rates based on credit scores.

https://www.gcamortgage.com/mortgage-rates-versus-credit-scores/

gcamortgage.com

How Lenders Price Mortgage Rates Versus Credit Scores

The way lenders price mortgage rates versus credit scores is the lower the credit scores, the higher the mortgage rates due to risk for the lender

Deseret First Credit Union has halted lending for loan officers due to credit volatility. I contacted the Deseret Credit Union Loan Operations Department at 801-456-7950 and spoke with Consumer Loan Officer Spencer. And have confirmed Deseret Credit Union has suspended extending credit and financing to NMLS-licensed mortgage loan originators and realtors. No other professionals besides those in the mortgage and real estate industries are affected by not qualifying and getting approved for credit cards, auto loans, consumer loans, second mortgages, mortgages, installment loans, and other types of financing. Spencer said the suspension of extending financing to loan officers and realtors order came from upper management and the board of directors. The suspension of extending credit to loan officers and real estate agents will be in effect until the credit markets drop substantially. If you are a commissioned loan officer or realtor, I recommend checking the latest news updates or contacting any bank or credit union directly for the most current information. They may be able to provide you with details about the situation and any potential implications for borrowers and loan officers. According to Deseret First Credit Union Loan Officer Spencer, Deseret First Credit Union has suspended extending credit to all loan officers and real estate agents on commission wage earners since August 2022. I heard about Deseret First Credit Union suspending extending credit to mortgage loan originators and real estate agents through Gustan Cho, President and CEO of Lending Network, LLC and partner of Gustan Cho Associates Mortgage Group. I had multiple associates and colleagues, including myself, verify this matter. Is this something that will continue in the coming weeks and months? Is this a sign of another 2008 financial crisis? Many commissioned mortgage and real estate wage earners have been filing for forbearance requests at an alarming rate from late 2022 into 2023. This is a wake up call of the 2008 financial crisis when banks and credit unions unions halted extending business credit lines of credit in August 2008 prior to the real estate and credit collapse. Stay tuned. I will post updated on this topic in the coming days.

Here is an informative article on understanding forbearance published on Gustan Cho Associates.

https://gustancho.com/understanding-forbearance/

• This discussion was modified 1 month, 1 week ago by  Sapna Sharma.
• This discussion was modified 4 weeks, 1 day ago by  Sapna Sharma.

gustancho.com

Mortgage Forbearance During Pandemic Mortgage Crisis

Mortgage Forbearance During Pandemic: Forbearance is offered by mortgage servicers to homeowners impacted by the coronavirus crisis

Breaking News from Fannie Mae and Freddie Mac. Effective immediately homebuyers can purchase 2 to 4 unit multi family homes with 5% down payment. Before today’s Breaking News owner occupant primary multiunit homebuyers needed 15% down payment. Private mortgage insurance is required and we don’t yet know what the PMI factor is as of today. Just wanted to share this Breaking News with our forum viewers .

• This discussion was modified 1 year, 6 months ago by  Sapna Sharma.

Is it true banks and credit unions have halted granting credit cards, car loans, business loans, consumer loans, mortgage loans, and any type of financing to mortgage loan officers, mortgage brokers, real estate agents, realtor brokers, independent 1099 property management wage earners, contract mortgage processors, appraisers, 1099 wages earners and any independent contractors in the mortgage and real estate industry?

• This discussion was modified 1 year, 6 months ago by  Sapna Sharma.

Our government is run by complete idiots. The Federal Reserve Board Chief needs to get replaced by someone who is competent and knowledgeable about the housing industry and mortgage markets. What is going on? 30 year treasuries are over 4.8% and surging. Mortgage Rates are North of 8.00% plus points. FHA rates on 540 FICO borrowers are 8.125% plus 3 5% points. The federal government is trying to crush the housing market. FED Chairman need to stop increasing rates and start stabilizing mortgage rates by buying MBS and stop trying to destroy the United States and crushing the real estate market. Here’s a snapshot of the 30 year treasuries

• This discussion was modified 1 year, 6 months ago by  Gustan Cho. Reason: Forgot snapshot,

NMLS licensed loan officers are leaving the Mortgage Industry due to inflation, ridiculous rising rates, and out of control housing priced. Never in history did anyone witnessed such a volatile economy as we are seeing today. The Mortgage Industry has lost 40% of licensed and registered mortgage loan originators and is expected to see more leave the mortgage industry. Many are joining the government agencies such as law enforcement agencies where they are taking individuals without experience in police work and are willing to train. The Illinois State Police is taking applications for state troopers without any experience. Many loan officers are looking for salary or hourly jobs in government because they offer job security.

https://www.linkedin.com/posts/illinoisstatepolice_diversestrength-joinisp-activity-7113311150510927874-N2rG?utm_source=share&utm_medium=member_android

• This discussion was modified 1 year, 6 months ago by  Sapna Sharma.
• This discussion was modified 1 year, 1 month ago by  Gustan Cho.

linkedin.com

Illinois State Police on LinkedIn: #diversestrength #joinisp

Empowering diversity, embracing strength. Join ISP and be part of a law enforcement family that values every perspective. Apply now! #DiverseStrength #JoinISP…

Analyst’s forecast for homebuyers for 2024 is not good. Real Estate media giant ZILLOW NEWS forecasts home prices will keep increasing into 2024 despite skyrocketing Mortgage Rates. ZILLOW estimates a 4.9% increase in home prices from August 2023 to August 2024 due to short housing inventory. There’s a shortage of homes Nationally and many first time homebuyers are getting priced out of the housing market. Many homebuyers are finding it more difficult coming up with the down payment of a home purchase.

https://www.biggerpockets.com/blog/zillow-predicts-5-percent-increase-in-home-prices-by-august-2024?utm_source=Iterable&utm_medium=email&utm_campaign=Newsletter%20%7C%2009/24/23%20Free%20(Control)

• This discussion was modified 1 year, 6 months ago by  Sapna Sharma.

biggerpockets.com

Zillow Predicts a 4.9% Rise in Home Prices by Next August—Is That Possible?

Zillow is really bullish on housing, but are they right? How much are they projecting prices to grow? And who's in disagreement?

Rolling 30 Day Late Payments is when you are 30 days late on a credit tradeline but make timely payments but are yet behind. There is conflicting information about qualifying for a mortgage with a rolling 30 day late payment in the past 12 months. I will have our preferred wholesale mortgage account representative Christian Sorenson of Equity Prime Mortgage (EPM) answer his opinion about how EPM wholesale mortgage underwriters view 30 day late payments on government and conventional loans. VA LOANS, FHA LOANS, USDA LOANS and CONVENTIONAL LOANS. Christian Sorenson is hands down our number one wholesale lender. Equity Prime Mortgage is the best one stop mortgage lender in the nation and Gustan Cho Associates dba of NEXA Mortgage ranks EPM Mortgage as its top wholesale mortgage lender of choice. Like to thank Eddie Perez the President of EPM Mortgage for having the top mortgage professionals in his five star mortgage company.

• This discussion was modified 1 year, 6 months ago by  Sapna Sharma.

Artificial Intelligence is hitting the real estate and mortgage industry. AI technology has hit the real estate profession like a semi running into a concrete wall at 120 miles per hour. Most real estate brokerage firms are getting inundated by marketing companies hitting them up for social media, youtube, and website marketing programs using Artificial Intelligence Technology. Artificial Intelligence Technology in the mortgage and real estate profession is hitting the industry like a category five hurricane that realtors, loan officers, and digital media marketing companies need to shape up and get with artificial intelligence technology before they fall behind the competition where it will end up hurting their business. Ronda Butts, a dually licensed realtor and loan officer at Gustan Cho Associates recently published this blog on Real Estate Artificial Intelligence Marketing which is very informative. Here is the link to Ronda Butts’ article on How Realtors are Using Artificial Intelligence for Marketing Homebuyers and Homeowners:

https://gustancho.com/artificial-intelligence-in-real-estate/

• This discussion was modified 1 year, 6 months ago by  Sapna Sharma.

gustancho.com

How Realtors use Artificial Intelligence in Real Estate

Artificial intelligence in real estate analyze data and forecast market trends, property values, and demand for specific types of properties.

Mortgage rates dropped for the first time since March 2023, on Thursday July 20th, 2023 per Freddie Mac. Par rates on 30-year fixed-rate conforming loans on single-family homes dropped to 6.78% from last week’s 6.96%. The drop in rates is the first decrease in mortgage rates since June and the largest single day decrease since March of this year. Mortgage rates one year today was at 5.54% and under 4.0% prior to the coronavirus outbreak. Conventional loans with loan-level price adjustments for average credit score borrowers often surpasses the 8% rate mark.

• This discussion was modified 1 year, 6 months ago by  Sapna Sharma.