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Pinnacle Capital Mortgage continues to increase market share! Stats for Q3 2013:

 

 

 

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Friendly service is only a jingle away!

 

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Kudo-storm: An expression of a job well done gone viral through email!

 

 

"Kyle, I just wanted to thank you again SO MUCH for taking my call and working through the Marx file. Having the ability to call you was an enormous relief. We appreciate you so much!!!"

Karen Hensley

Strategic Home Loans

 

"Wow! What can I say? PCM and Carol's team are the Yankees of lending. It took just a few hours for Carol, Darla and Jeanette to turn a bleak situation into a bright one. This is a model of how the mortgage biz should be done."
Demas Lamas
Associated Mortgage Group 
 
"Thank you! You guys got these out same day. You are rockstars! Thank you!"
Julianna Malfitano
Stonecrest Lending
 
"I praise you all for your teamwork. I am proud to be working with you and soooo
appreciate you all.
Thank you one million times
over....:)
 
Julie Brooner
Pinnacle Capital Mortgage-
San Rafael, formerly Irwin Street Financial 
 
 
 
Pinnacle Capital Mortgage
 Concord Branch honored as one of the Best Places to Work in the Bay Area 2013 
  
  
  
  
  

 

Pinnacle Press

Mortgage Musings and Industry Updates 

 

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After 19 years (and holding) in the business, I found I regularly went to the same websites to research loans
at the agency or MI company level for my clients. I thought it'd be a great idea to compile them on one page. Bookmark my time tested and recently updated KOL Industry Link page.

 

Note: I added a link to FFIEC for the weekly posting of the APOR rate-more on that in my article below. While you are there you can sign up for email updates from the four main agencies, FNMA, FHLMC, FHA and VA. Become your own industry expert! 

 

 

 

New Terms of Careerment

 Lingo YOU need to know by January 10th

 

Don't know your APOR from your APR? Or general QM from temporary QM? The industry is preparing for the next round of changes this January 10th and in so doing a new parlance is emerging.

 

As part of QM/ATR which affects all loans originated January 10th or later, you'll be running your pricing scenarios through some type QM calculator before you disclose or lock your loan. All lenders are required to make a reasonable determination that the borrower has the ability to repay the loan. Lenders seeking a safe harbor that ensures they've met this test will only make loans that meet the QM or (qualified mortgage) standards. There are two standards of QM, general QM standards and Temporary QM standards.

 

General QM:

  • Total DTI is less than or equal to 43%
  • Points & Fees do not exceed 3% of total loan amount
  • No negative amortization, IO, balloon payments or terms longer than 30 years

 

Temporary QM:

  • Mortgage must be eligible for purchase, insurance or guarantee by a GSE or government agency vs. a total DTI of 43% and thus ratios can exceed 43% for these transactions
  • This is the only difference from General QM
  • Temporary patch expires on January 10, 2021 or in the event government conservatorship ends

APOR Test:

Lenders seeking safe harbor in meeting the ability to repay standard will also want to ensure loans meet the APOR Test. To meet the APOR test, the APR of the loan must not exceed the APOR by 1.5 or more percentage points. I'll assume anyone reading this knows what an APR is, but what is the APOR? This is the Average Prime Offer Rate. It is published by the FFEIC weekly and you can find it posted here.

The QM calculator used by your targeted lender will run this APOR test. Should your loan fail this test, your lender will likely contact you to give you the option to reduce the rate, if possible. If the rate cannot be lowered enough to allow for a pass on this test, your lender may elect to decline the loan.

 

The QM 3% Points and Fees Test:

Lenders seeking safe harbor in meeting the ability to repay standard will want to ensure loans meet the 3% Points and Fees test. Again, the QM calculator used by your targeted lender will run this test. Generally, speaking all broker compensation, will be included in this test, most items in the finance charge will be included in this test unless they are provided by a bona fide third party. All lender fees, such as admin fees, doc prep, etc. will be included in the test. Fees charged by affiliated vendors of the creditor will be included in the test.

 

Note: Many lenders have affiliated AMCs for appraisals. The CFPB recently clarified that only the portion of the AMC fee retained by the creditor will be included in the 3% points and fees test. Should your loan fail this test, your lender will likely contact you to give you the option of reducing the fees, if possible. If the fees cannot be lowered enough to allow for a pass on this test, your lender may elect to decline the loan.

 

Loans below $100k will have higher thresholds for the points and fees test.

 

Naturally, you'll want to vet the policies of your wholesale sources and/or employer for in house fundings where applicable. Like the many changes we've navigated over the last 5 years, we'll see disparate approaches to these new regulations at the onset. Once the industry has had time to digest and absorb these new regs and processes we may see more standardization.

 

It should be noted that most leaders of our industry feel the industry can work within the parameters of these new regulations successfully in all our current channels of business.

 

Keep calm, carry on and contact your reps before disclosing or locking new loans come January 10th.

 

More resources from the MBA located here.

 

Have a safe and happy holiday with friends and family!

 

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East Bay CAMP puts on
first annual Crab Feed!

Join us this February in Walnut Creek for a great time with friends and family!

We are doing something a little different for this event and opening
it up for significant others and family.
Hot Crab 
Feed!

Date: February 12th, 2014
Place: 111 Wiget Lane, Walnut Creek
Time: 5:00pm

Fabulous Raffle prizes and more!

Individual: $50 per person
Child 5 or under: $15
Table for 10: $450 



Wine & Beer
Sponsorships available!
                                 

We, at Pinnacle Capital Mortgage, are ready to support you as we head into 2014 whether as your wholesale lender or retail services provider. The best business model that works for you is the one that works for us!

Sincerely,
   
 
Terri Buckman
VP, Wholesale Lending  & Retail Services   
Named CAMP 2010 Affiliate of the Year & 200 Club Member
Cell 925.822.5931
DISCLAIMER: My Blog solely represents my own personal opinions and commentary and does not represent the opinions of any corporate entity or other individual. The intent of this blog is to start conversation on topical mortgage issues. This is not advice and should not be acted on accordingly. Further, this information is intended for mortgage professionals only and is not an advertisement to extend credit.
� 2010
Pinnacle Capital Mortgage Corporation    Equal Housing Lender  NMLS 81395   | ID-MBL-6950, WA CL-81395, NM-03710 Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. CA License #RMLA-4130351, ID License MBL-6950, AZ License 910890, UT License 7033397-MLCO, NM License 03710 
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