[Hunter]

The Pacific Palisades wildfire has ravaged the wealthy neighborhood of Los Angeles, turning some of the most luxurious mansions into ash. As powerful winds fueled the flames, the fire spread rapidly through this exclusive area, home to celebrities and high-net-worth individuals. Emergency evacuation orders were issued as the fire threatened numerous multimillion-dollar properties, with some iconic estates among those destroyed. The blaze, which continues to rage, underscores the vulnerability of even the most affluent communities to nature’s fury. Local authorities and fire crews are battling to contain the inferno while residents face the devastating loss of their homes.

https://www.youtube.com/live/R2RQgpq1AvA?si=Hd9xRfX0KW0X9uS2

[Hunter]

Check out below for the U.S. daily mortgage, real estate, and business news wrap-up for Wednesday, January 8th, 2025:

Mortgage Rates Update

Overall, average mortgage rates have shown some stability, with slight variations over the week ending January 8th, 2025.

• 30-Year Fixed Mortgage Rate: 6.75%
• 15-Year Fixed Mortgage Rate: 6.25%
• 5/1 Adjustable-Rate Mortgage (ARM): 5.75%

This means that the Federal Reserve’s recent monetary policy decisions affect prevailing interest rates in the mortgage market, and changes will likely be made soon.

Housing Market Trends

Home Prices:

• National Home prices have increased by about three percent year-on-year, leading to modest growth.
• The South East markets are more buoyant than the North East markets.

Inventory Levels:

• The low housing inventory in many areas contributed to competitive bidding.
• Due to the lack of homes on sale, this has continued to be a pressing issue for buyers.

Luxury Market Surge:

• The luxury real estate market is rising again as high-end properties in metropolises attract more buyers, partly influenced by wealthy individuals searching for secondary homes or investments.

Regulatory Changes

The Biden administration seeks to increase transparency in the mortgage lending marketplace through new rules. These rules would require lenders to disclose fees and rates to borrowers before they apply for a loan.

Real Estate Investment Trusts (REITs)

Despite challenging conditions, REITs have remained profitable, with most reporting impressive quarterly results. Investors are now turning their attention to them as they seek protection from inflation or diversification of investment in cases of market volatility.

Commercial Real Estate Developments

Due to COVID-19, there is a growing trend toward flexible workspaces. This has led to a boom in remote working environments and hybrid office models for many businesses, forcing developers to rethink how they use office spaces.

Business News Highlights

Economic Outlook

• Analysts are cautiously optimistic about the U.S. economy in 2025 as global uncertainties persist, forecasting moderate growth rates.
• The technology and healthcare sectors are expected to be particularly strong job creators.

Stock Market Performance

Investors have witnessed mixed performances by major indices following mixed earnings reports and economic numbers. Minor advances were recorded on the Dow Jones Industrial Average, while the S&P 500 remained unchanged.

Inflation Worries

Inflation is still the main issue for decision-makers regarding public policies. However, there are signs that consumer prices are stabilizing. The Federal Reserve will closely monitor inflation as it considers future adjustments of interest rates.

Consumer Confidence

According to recent surveys, consumer confidence has dropped slightly due to increasing costs and uncertain economic conditions at the household level. Nonetheless, spending is still high, especially in the retail sector.

Tech Industry Innovations

There are signs of a burgeoning tech industry, given the advances made in artificial intelligence and renewable energy technologies, which have attracted large amounts of investment. More companies are now focusing on sustainability and digital transformation initiatives.

The current U.S. mortgage and real estate market environment involves various factors, such as stable mortgage rates, low housing inventory levels, and changing consumer preferences. As 2025 unfolds, stakeholders in the property market and business sectors must remain alert and flexible amid ongoing developments and challenges.

[Hunter]

How has Rick Harrison adapted his business to the changing economic landscape?

[Hunter]

Checking your credit rating is one of the important things to do if you’re considering purchasing a new house. There are several trustworthy sources where you can obtain your credit report free of charge online. Let’s have a look at them:

Credit Karma

Credit Karma enables users to get TransUnion and Equifax credit reports and scores while being updated weekly for free. One doesn’t have to enter a credit card number to sign up, which makes it very easy. It includes features such as a score simulator, which shows what happens to your credit score after certain actions are taken.

Credit Sesame

Credit Sesame offers its users their VantageScore, powered by TransUnion, at no cost. This score is additionally calculated based on the user’s credit profile. This service also includes credit monitoring and monitoring of any change in the credit reports.

Credit.com

By signing up for Credit.com, you can get two free credit scores and reports: Experian credit scoring and VantageScore 3.0. This site also offers a credit report card explaining the factors affecting your score.

WalletHub

Of the many services this company provides, TransUnion offers free credit score and report functions. You can also provide credit alerts and further details regarding your credit accounts. Registration requires some personal information. However, it is useful for tracking more of your credit information.

Experian

As is customary for the other providers, Experian offers the option to check your FICO® Score alongside your credit report as an added service with no fee. In addition to checking your credit report and score, Experian offers other services to help you improve your credit score, including an add-on called Experian Boost.

AnnualCreditReport.com

This is because the site in discussion focuses more on providing three major credit reports and scores yearly from the three largest bureaus’ Equifax, Experian, and TransUnion’- rather than providing one credit score altogether. Evernote is one of the largest providers of annual reports for every lender based in the United States. However, it would be important to stress that these reports are valuable in understanding how you have behaved, your chances of applying for a loan, and looking where any potential mistakes can be found.

Using these tools, it’s easy to check your credit score and understand the general state of your credit. This means you will be much better when you decide to buy a house because you have consistently monitored your credit.

[Hunter]

Of course! Here is a moderate explanation of the events that normally transpire between when the purchase contract is signed and the transaction’s closing. This can assist prospective buyers to have an understanding of the timeline and the full process:

1. Contract Acceptance: Finally, please sign this contract. After you submit your offer to purchase the property, the purchase contract takes effect once the seller accepts your offer. The transaction contract should be signed and distributed to both parties.
2. Earnest Money Deposit Moving forward: Lastly, to ensure that you show genuine interest in purchasing the property, you will have to make an earnest money deposit, which is usually a percentage of the purchase price. This deposit is usually kept in an escrow account.
3. Home Inspection Stating the Facts: Verify home conditions by setting up a home inspection to check the possible situations that need to be resolved. This will allow you to negotiate repairs or credit with the seller, after which you will review possible changes depending on the outcomes.
4. Appraisal Verification: An urgency arises with one of your lenders. An appraisal is needed to highlight the value of the property in return. This secures the lender as it makes sure the house that is collateral for the loan is up to standards.
5. Financing Approval Closing the deal: Complete the final steps of your mortgage application with your lender. This may require you to submit further documents, such as payslips and bank statements, to validate your funding source.
6. Title Search

Title Company: A Title Company will first ensure that the property’s title is clear by searching if there are any existing liens or claims. This is vital in establishing clear ownership of the property.

Homeowners Insurance

Obtain Insurance: You must get a homeowners insurance policy before closing a house. Lenders always need this document to secure their investment.

Closing Disclosure

Review Financials: A few days before closing, a Closing Disclosure will be forwarded to you. It contains the monthly expected payment, the amount sent, and the closing cost. Please read this through very well.

Final Walkthrough

Inspect the Property: The final walkthrough is done to ensure that the property is in the agreed condition and that all repair work directed prior to taking over has been done.

Closing Day

Sign Documents: The three parties meeting on closing day are the seller, you, and your agent, along with an attorney, if possible. They will sign the official documents necessary to close the deal. These include the documents related to the mortgage and the deed.

Funding: The loan will be completed when the documents are signed, and the lender pays, after which the sale is said to be made.

Post-Closing

Receive Keys: You are now the legal owner of the property. Therefore, you will receive the house keys upon completing all processes. Planning how to set up the utilities and move in is wise.

As I said before, there’s more to the story than just closing—there’s a bunch of stuff in between. Typically, it includes three activities: inspection, appraisals, and financing. Knowing this sequence of events helps reduce the stress of buying a house. If you have any questions or need further explanation, why not contact me?

[Hunter]

Obtaining a Mortgage Loan Originator license in Texas typically takes a few weeks to several months, and a licensing timeline and other requirements also take time. Follow the steps below to help you with the application process.

Pre-Licensing Education

Timeline: Depending on whether you take the courses in person or online, 20 hours of pre-licensing education will take anywhere from a few days to a few weeks.

Application Submission

Submit Application: After obtaining the requisite education through the Nationwide Multistate Licensing System (NMLS), an application can be submitted.

Processing Time: Once sent, applications can take 4 to 6 weeks to process. However, the amount of time taken can vary depending on the number of applications being processed by the Texas Department of Savings and Mortgage Lending (TDSML).

Background Check and Credit Review

Timeline: The background check consists of reviewing the credit history and other legal matters. It is part of the application process and takes an additional 1-2 weeks.

Examination

Timeline: If the MLO test has not been passed, you will need to set a date to complete the timeline, depending on availability. This will set you back a few days to two weeks.

Last Step: Approval

Notification of Approval: You will be notified after everything is done; the application requirements are examined, including education, examination, and background check, plus other requirements if needed by the board.

Overall Timeline: The whole process commences and concludes in about one month to about three months, depending on how much time one takes to complete one’s education, considerations made when reviewing one’s application, and any other issues, which may include credit evaluation and more.

As noted and pointed out, if everything is in order, completing an application as an MLO in Texas can take just a few weeks up to a couple of months. To speed things up, you should complete your education in time, draft good applications, and complete proper paperwork with necessary documentation and exams. Do not hesitate to contact me if you have any additional questions!

[Hunter]

To receive an MLO (Mortgage Loan Originator) license in Texas, one must qualify for specific criteria, such as criminal history and debts.

Therefore, you need to keep the following in mind:

Credit History Requirements

Credit Check: During the stamping process for having all the licenses, you should be prepared for a credit check as it is made mandatory by the Texas Department of Savings and Mortgage Lending (TDSML). An account that goes unpaid and later on is subject to collection in your records can be bothersome.

Impact of Collections: If you have a collection account against you, you may still have luck, but not every time. The authorities at the TDSML will determine the type of collection and the level of risk associated with you.

Legal Issues

Pending Lawsuits: This can get a little turbulent if, for instance, Wells Fargo is pursuing you for any legal matter, as it will affect your application. The TDSML may also consider the active litigations in which a person is involved.

Disclosure Requirements: You will most certainly be asked to mention your active litigations or judgments when filling out your application. Ensure that you provide all the details without hiding anything.

Factors Considered by Licensing Authorities

Time Since Issues: If the unsecured credit is dated and you can provide evidence of resolving the issues, such as improving the credit, it may more often than not help.

Overall Financial Responsibility. Write with a purpose that speaks to the Licensing Authority, emphasizing your integrity and commitment. It is sensible to trust in your past financial history and, more importantly, your capacity for such a financial responsibility.

Steps You Can Take

Resolve Collections. Resolve the collection account, which is an unpaid internship or a negotiable settlement. It won’t go off the report, but two things will be accomplished: one, handling properly, and two, taking the reimbursement.

Consult with a Lawyer. If a Defamation of Character suit or other such issues arise, an appropriate lawyer should be contacted for defamation practice.

Prepare Your Application. Write down your strategies for business skills, such as a credit skills test. You should also be ready to ascertain your claim on the application form.

Consult with the Licensing Authority

Contact TDSML. It also helps to speak directly to the Texas Department of Savings and Mortgage Lending to understand your case better. Such SoNda questions could clarify their supposition about how your reports would interact with your licensing application.

If including a report dealing with a collection and a suppression of a lawsuit enables one to apply for an MLO license in Texas, it will not cut it. It would be easier to have none. The management of these issues and application transparency will be more definite in a general licensing monitor. Should you require further information, feel free to write to me!

[Hunter]

Refinancing after Chapter 11 bankruptcy is often extremely tough. The goal of this article is precisely to provide a granular understanding of how refinancing can be done after filing for bankruptcy while keeping in mind the important factors that affect the situation.-

The Waiting Period

Chapter 11 Bankruptcy: In Chapter 11 bankruptcy, relatives sometimes have to wait and remain in the queue. Re-amortizing your mortgage can take 2 to 4 years after the Chapter 11 discharge. It is important to note that this might depend on the particular lender.

FHA Loans: FHA loans are for borrowers who are considering an FHA loan. As per the requirements, the borrower is required to wait for two years after the bankruptcy claim is discharged. However, this is only if the borrower is able to reestablish a healthy credit.

Conventional Loans: For conventional loans, however, this waiting time usually extends to four years following the discharge of the revolving doors of Chapter 11.

How it Affected My Credit Score

Rebuilding Credit: As per post-bankruptcy reports, your credit scores were recorded in totality before the bankruptcy, up to around the upper 700s. It is time to concentrate on rebuilding your credit as much as you can. If, however, your scores were still outstanding after the bankruptcy, then it is likely that other options are going to open up for you as well.

Current Credit Score: This being said, if your credit scores are still low and the lenders are still targeted and working on pre-hold specific angles, then yes, some of them would be willing to work with borrowers after a while, even when the post-chapter incident period has not fully lapsed.

What Could be New Suggestions?

Non-QM Loans: Non-qualified mortgages, or, as some lenders would say, Non-QM loans, are those types of loans that allow for relaxed guidelines as far as bankruptcy cases go and, in turn, allow for requalification. These types of loans tend to be more easily targeted with approval than traditional loans, i.e., they cater to unideal borrowers.

Loans for Patients with Bankruptcy History: If you are looking for a bankruptcy refinance loan service, you might consider applying to banks or credit unions that are known for being lenient towards borrowers who have gone through bankruptcy.

Paying Off All Credit Debts with One Mortgage

Mortgage Combination: It is better to take out a HELOC ($55,000), combine it with your existing mortgage, and pay off everything with one loan. But remember the implications of having a bankruptcy history and how it can lead some lenders to charge sky-high fees.

Loan-to-Value (LTV): If you want to refinance and increase your equity while consolidating loans, ensure your property qualifies for the refinance. Lenders usually offer reasonable rates for LTV ratios equal to or below 80%, which is quite favorable.

Meeting a Mortgage Broker for Assistance

Pre-Qualifications: You can contact a loan mortgage broker or a lender so they can review your case and advise you on what you could do. They would also know which bank can overlook your bankruptcy while approving you for a loan.

Terms Understanding: Ensure you are clear about any potential conditions for the draws of your refinanced offer, like stipulations for the interest rates or specific pre-payment fees.

We understand that your Chapter 11 bankruptcy will affect your ability to refinance. However, you may still have some options, especially regarding non-QM loans. It is recommended that you contact a professional in mortgage brokerage to help you find the best way to repay through debt consolidation strategies. If you have any further inquiries or want to know more about the topic, please don’t hesitate to ask!

[Hunter]

Yes, a mortgage loan FHA can be obtained using rental income earned for residing in one’s 4-unit owner-occupied property, which may lower the loan cost. However, the following details should not be missed:

Using Rental Income for Qualification

FHA Guidelines: According to the FHA guidelines, one can use a fraction of the other units’ rental income to repay the loan, which increases the chances of loan approval as it helps manage the DTI (debt to income) ratio.

Documentation Required: To prove what one states regarding the rental income, documents have to be presented, including:

• Lease agreements on the rented units.
• History of rent payments over the last few months.
• An appraisal of the property that indicates its rental value in the market.

Assessing Qualifying Rental Income

Proportion of Rental Income: Most lenders consider 75% of the rental income to account for vacancies and nonpayment. Therefore, if the rental income for the three rented units totals $3000 per month, chances are that one would qualify for the mortgage if one claimed $2250 ($3000*75%).

Owner-Occupancy Requirement

Owner-occupied: A four-unit resident of the borrower’s property must live in one of the units to get a Federal Housing Authority loan. This is also a condition for FHA financing.

Impact on Debt-to-Income Ratio

DTI Calculation: The Borrower’s DTI ratio is a crucial metric for lenders to assess the property owner’s loan repayment ability. And this can be furthered by stating that it would appreciate the borrower in terms of a loan.

Consulting with Lenders

Lender Policies: Different lenders may have certain policies regarding estimating and accepting rental income. It would help if you spoke with applicable lenders about your circumstances to be aware of their requirements.

Pre-Approval: Preparing for the pain of an FHA loan is recommended, as it can provide insights into the maximum rental income you can qualify for.

You may qualify for an FHA loan for the four-plex owner-occupied property by using rental income to reduce the mortgage payments. Ensure that proper documentation is provided to the relevant authorities and lenders to enable them to understand your expectations and metrics regarding rental income. Should you want further guidance or have more questions, don’t hesitate to ask!