State Bank of India (SBI) chairman, said the bank is looking at tapping the retail bond market next year with a 10-year issue, although the initial issue size may be as small as Rs 50-100 cr.

“If it turns out well, we may think of raising more money through this route. But we do not require capital immediately, it is only one of the option we are looking at,” he said, speaking at the sideline of a seminar organised by Confederation of Indian Industries (CII).

State Bank of India (SBI) chairman indicated that SBI would prefer rights issue route to strengthen its capital base. “I would want the government to continue to hold a majority stake in the bank,” Chairman OP Bhatt said when asked about capital raising plans. The comment made by Mr Bhatt is in the context of the proposed amendment in the SBI Bill which allows the government to dilute its stake in the bank to 51 percent, in line with other PSU banks. Currently, the government cannot lower its stake up to 55 percent. The government is the largest shareholder with 59.4 percent stake. SBI had raised Rs 16,736 cr thought the rights issue in 2008, wherein the government had subscribed Rs 10,000 cr.

In the interim, Mr Bhatt said the bank has not yet finalised the next associate bank it will acquire after State Bank of Indore. RBI has cleared the SBI proposal to merge its associate bank State Bank of Indore with itself but it is awaiting approval from the government. Following the approval, the board of SBI and State Bank of Indore has to approve the merger. SBI has six associate banks (including State Bank of Indore) and it has earlier announced plans to merge all associate banks with itself.

SBI has already merged two of its associate banks with itself — State Bank of Saurashtra and SBI Commercial and International Bank with itself. “No other bank is lined up now,” said Bhatt, while declining to give the swap ratio.

With regards to interest rates, Bhatt said he does not expect interest rates to rise in the beginning of the next fiscal. On surplus liquidity, he said excess liquidity has fallen to an average of Rs 50,000 cr now against Rs 75,000 cr in December 2009. The share of high-cost deposits has fallen to 3 percent of the total deposits.

On credit offtake, Mr Bhatt said the bank has been sanctioning close to Rs 2,500 cr every month under the Special SBI Home Loan Scheme where the borrower can avail of loan at a fix rate of 8% for the first year and rates are linked to prime lending rate in subsequent years.

The special home loan scheme will end by March 31 and he said the bank will take a call on whether or not to extend the scheme on March 31. But at the same time, he added that the bank has not seen much improvement in credit offtake this month.

Golden Gateway is a Reverse Mortgage Lender and their website vistors seem to be inputting higher values lately, so they assume that their home values are rising. They announced that “average home values for older Americans have halted their slide after remaining flat or declining for seven consecutive quarters.”

The problem is that most people have no idea what their home is worth and in many cases the person using the calculator may not even be the home owner at all (and have even less knowledge of the actual value.) It would be great if “older Americans” home values had stopped their decline, but why would “older Americans” properties be any different than the rest of the country?

Here is their data:

Humor could be described as a spice of life that can lighten a mood, liven a moment or linger as a memory.  Sometimes it can bring a full-roar laugh, a simple smile or like now, a sigh of relief that the topic does not apply to you.  We recently read an antidote on the recent RESPA changes and how some loan officers might be inclined to respond.  Allow us to share …

ARE  YOU HAVING TROUBLE EXPLAINING RESPA TO BORROWERS?

If RESPA changes are the final blow – swaying you to consider a simpler career path, say neurosurgery or something, you are not alone.

I have to vent for a minute, because I know you are with me on this one. Let’s see….

A new borrower comes to you because his Realtor told him that you are a fabulous loan officer and he needs to get pre-approved and get a Good Faith Estimate.

You look the new borrower square in the eye and have to say, “Wonderful! But I can’t give you a Good Faith Estimate because you haven’t identified a property. But I can give you this other “Non-Binding Settlement Estimate” form that my legal department has authorized, that has a 2-page disclaimer stating that you can’t hold me to any of these figures.”

So the new borrower, with a confused look on his face, takes your new form and goes back to his Realtor. The Realtor calls you trying to figure out what you said to the new borrower who now, doesn’t feel so confident about you or anything else in this transaction. You explain. The Realtor calms down.

The new borrower comes back with an identified property and says; “Now I want a Good Faith Estimate.” You prepare one, in perfect accordance with the new RESPA procedures and hand it to new borrower. He gasps. “This is $3,000 more than the previous estimate you gave!”

“Oh, don’t be alarmed,” you say in your most toddler-calming voice. “This isn’t what you are really going to be paying. This is just how I have to disclose it to you.”

The new borrower gives you a sideways suspicious glance, “But what about all the fees the seller is paying on my behalf? I can’t find a credit on this form for those.”

“Don’t worry…it will all work out at closing. This is how we protect you now. We give you inaccurate information all the way up until you actually close on the property. Isn’t that fun! Kind of like a surprise party!” you happily chime – beaming like an idiot while beads of sweat run down your torso.

The new borrower marches out to his car in tearful frustration and calls the next lender on his list.

Scalpel anyone?

This could not be farther from the truth for us at Awareness Home Funding.  The new Good Faith Estimate (GFE) is really a very simple document that helps you, the client, actually understand the real cost of acquiring your home loan.  It lets you know where you have choices in the services you will need, such as a home inspection.  It tells you what fees should not be changing by more than 10%.  And if they do, there will be a good reason, and time for you to understand what just happened before the loan process continues.  It also tells you what fees will not change at all.

So why don’t some loan officers like the new regulations and required forms?  Why can’t they explain the information it details for you?  Why can’t they provide the new GFE for you upfront?  Why such the cloak and dagger approach to helping their clients?  (Now this part, we do find really funny.)

Check us out (http://www.awarenesshomefunding.com/).  Give us a call (866-982-9273).  Let us help you understand the loan process.  That is why you go to a professional in the first place, isn’t it?

Legislators, media, some senior advocate groups, and even the general public miss the point that reverse mortgage borrowers are already more highly protected.  With more protections than with any other loan or financial decision they make they still feel more protections are needed.  Currently the only reverse mortgage is the Home Equity Conversion Mortgage (HECM) which is insured by HUD.  HUD has guidelines and requirements to protect seniors.  Even when there were proprietary (private) reverse mortgage products, they followed HUD’s guidelines.  While there are protections, seniors still have the right to make their own decisions, for better or worse.   Let’s discuss these protections.

• Third-party counseling is required on all reverse mortgages.  Counseling is absolutely mandated with no exceptions and is provided by HUD trained and approved counselors.  During the counseling sessions the counselors are required to follow a protocol approved by HUD.  Evolving over time, HUD’s counseling guidelines and regulations now require distance between the counselors and lenders.  Lenders are required to provide borrowers with a list of 5 local and 5 national counselors without steering borrowers to any specific counselor.  Additionally, counselors are restricted from steering to lenders.
  • The counselor’s role is to educate about reverse mortgages, explain the allowable fees, and terms of the loan so potential borrowers have an understanding of the reverse mortgage.  They also provide other potential options.  They counselors are not to make a decision for the borrower on whether they should or should not do the reverse mortgage.

• Cross-selling is prohibited.  Mortgagee Letter 2008-24 (HUD’s guidelines and requirements) states that a “HECM mortgage originator or any other party that participates in the origination of a FHA insured HECM mortgage shall not participate in, or be associated with, or employ any party that participates in or is associated with, any other financial or insurance activity.”  Additionally if a lender or bank has financial departments they must demonstrate to the Secretary of HUD that they have and maintain “firewalls and other safeguards designed to ensure that (i) individuals participating in the origination of a HECM mortgage have no involvement with, or incentive to provide the mortgagor with, any other financial or insurance product; and (ii) the mortgagor shall not be required, directly or indirectly, as a condition of obtaining a mortgage under this section, to purchase any other financial or insurance product.”
  • Lenders require mortgage brokers sign forms that they do not sell insurance and do not cross-sell.

• All lenders application packages have disclosures stating that annuities and/or other financial products are not required to be purchased with reverse mortgage funds.

• HUD regulates the fees.  HUD outlines what lenders and third-parties may charge stating they must be customary and reasonable costs necessary to close the mortgage.  Mark-ups are not allowed.  You may find HUD guidelines at their website (http://www.hud.gov/offices/hsg/sfh/ref/sfhp2-15.cfm) and in Mortgagee Letters 2008-34; 2006-07; 2006-04; 2004-18; 2000-10.

• The Good Faith Estimate (GFE) must disclose all fees.  RESPA (Real Estate Settlement and Protections Act) requires all fees be disclosed at the time of application, restricts what fees can be changed and for the fees that can be changed borrowers must receive new disclosures.

• The Total Annual Loan Costs (TALC) must be disclosed.  Providing a comparison of the percent of the costs to the amount received through the loan, this document discloses that the longer one keeps the loan the less expensive it is.

• Sample Closing Documents must be provided at the time of application.  HUD requires that borrowers must receive the sample closing documents as well as a booklet regarding home equity loans.  This gives borrowers time to review the documents they will be signing at closing.  They may also have family, trusted friends or their attorney review the documents during the processing.

• Disclosures must be provided to borrowers at application.  There are a variety of disclosures including:
  • Non-borrowing spouse disclosures outlining the risks if a spouse will not be on the loan.
  • Taxes and Insurances are the responsibility of the borrower(s).
  • Annuities and/or other insurance and financial products are not required with a reverse mortgage.
    • If annuities are being purchased the costs of the annuity are to be included on the TALC.

• Three-day Right of Recession.  As with any refinance, there is a three-day right of recession giving the borrower(s) time to review and decide whether or not to proceed.

• HUD insures and guarantees the funds.  As a HUD insured loan the funds are guaranteed to be available to the borrower as long as the borrower(s) abide by the terms of the loan.

• Non-recourse loan.  Unlike any other loan, the reverse mortgage is a non-recourse loan which means there is no personal liability to the borrower or the estate as long as the borrower or their estate is not retaining ownership when the loan is due and payable.

• There are guidelines for marketing practices.  HUD, The Federal Trade Commission and industry associations review and have cracked down on misleading advertisements.

• State licensing and the SAFE Act.  Many states require mortgage brokers take test and receive licensing in order to originate loans including reverse mortgages.  (Note: FDIC insured banks are exempt from these requirements.)  The Housing and Economic Recovery Act of 2008 (HERA) enhances consumer protections including encouraging states to establish minimum standards for licensing and registration of mortgage loan originators.  The SAFE Act will establish and maintain a national mortgage licensing system and registry for the residential mortgage industry.

Protected MN Reverse Mortgage Borrowers

When doing other types of mortgages, loans or financial decisions seniors do not have all of these same protections.  For example they do not have to go through counseling, have the same disclosures requirements, have regulated fees, are not guaranteed or have the non-recourse clause and often do not require the testing and licensing. Think about these situations that don’t have these same requirements or disclosures:

• A reverse mortgage compares to a regular home equity loan in the fact that regardless of age the mortgages are used to finance lifestyle using the home equity.  With a forward/conventional loan the funds are taken as a lump sum and can be used however one wishes.

• If a senior is selling they have costs associated with sale and receive funds in a lump sum.  No one is controlling how they use the remaining equity from the sale of the home.  And they have to determine where they are going to live.  If they are renting (i.e. regular apartment, independent living, or assisted living) the money may only last for a short period of time and they may still not have funds for future needs.

• If the senior (or anyone) does a forward/conventional loan the funds are received in a lump sum.  They can do whatever they want with this equity.  And they have to make payments which can become difficult for them if “life happens.”

• If they win the lottery they have money in a lump sum which can be spent however they wish.

• With credit cards seniors (or anyone) are not restricted on how they are used.  They can charge for whatever they want.  And they then have created debt that has to be paid back on a monthly basis.

When you hear that seniors need to be “protected from the reverse mortgage” remember all these protections and know that seniors doing a reverse mortgage have more protections than any other loan or financial decision they make.  As with any decision, especially financial or legal, one should be educated and understand the service or product.  And while these protections are in place, the seniors still have a right to decide for themselves on whether the reverse mortgage is right for their situation.

Related articles:

• AARP Has It Wrong About Reverse Mortgages!
• Reverse Mortgage Closing Costs – High or Mythical?
• Don’t Let Fear Keep You From A Reverse Mortgage But Know What To Look For In A Lender
• New Protocol For Reverse Mortgage Counseling
• A Reverse Mortgage or A Conventional Mortgage for Senior Homeowners?  That is the Question.
• I Want To Stay In My Home – Don’t Tell Me To Sell!
• Be Educated About Your Options of Care And Financing The Care
• Who Are We To Judge How Reverse Mortgage Funds Should Be Used?
• Misconceptions of Reverse Mortgages Abound…What Do You Know?

© 2010 Beth Paterson http://BethsReverseMortgageBlog.wordpress.com 651-762-9648

So, when life throws you a curve ball what do YOU do? Like, a huge curve ball…

Apparently I curse a lot. Then punch stuff. Then try my damn-dest to figure out how to outsmart/fix it. And if NONE of that works… then I just go out and find a ridiculously rad apartment and take it!

Yes, it’s true. In some bullshit accident in paperwork, my home loan was cancelled a day before closing. This was upsetting to say the least, but Kat Gun and family have been pondering a new location to live anyway… so this was strangely a blessing in disguise. Me and my little clan never like staying in one place for too long… and recently the West Coast has been calling to us (yes.. again). I don’t know.. it’s a lot to consider since I truly LOVE Philly, so I’ll have to sleep on it.

Regardless, no stress my blog readers. I found an unbelievably awesome apartment and am actually getting excited to possibly rent it. Studio space, roof deck and huge kitchen here I come!!

XOXOXOXOXO

refinancing home mortgage loan
Discovery a snobbish student give lender is a cognition that all students that borrow money moldiness go through. Sometimes, you can not suffice for the official intellect loans that you poorness or the examinee loans that you serve for are simply not enough to meet your expenses. With payoff, nutrient, charge, books, and tuition, college can get real pricey in a move.

refinancing home mortgage loan

This substance that you may someone to make a confidential examinee give investor to meliorate fill in the gap. When this is the containerful, there are definite lenders that you requirement to aspect for. Patch numerous examinee give lenders are ironlike, respectable companies, others are far from it. You do not essential to get involved with an crooked enrollee give loaner and effort yourself a lot of problems eat the touring. Here are a few things that you should perception for in a clubby give lender.
Variety of Options

When shopping around for a grad word lender, you need to regain one that has a show of word programs to give. If they upright get one give package in their armory, it may not be the papers that you requirement. Having individual word programs to select from increases the ratio that they will be competent to judge something that mechanism for you. You do not require to acquire to outlet around for months hunting for a system that testament fit your needs. It is some easier to succeed with one lender that has it all.

Favourable Reputation

Added indispensable feeling that you instrument poorness to countenance for in a examinee give pledgee is a keen estimation. You poverty the friendship that you resolve to manipulate with to someone a stellar estimation for customer accommodation. You are exploit to be employed with this society for a periodical of geezerhood. You require someone that is there to support you when you penury it. Some companies incline to going you on your own or someone problems with customer conjugation. You do not require to get committed with those companies.

Review on the estimation of the graduate word militia before you resolve to get embroiled with them. You can pronounce out a lot roughly them and their estimate online. Stoppage out customer reviews, forums, and anywhere else that has accumulation most them. If you are handling with a bad organization, you faculty most believable see copiousness of pessimistic client reviews virtually them.

Low Rates

Something else that you present deprivation to examine for in a opportune educatee word pledgee is low welfare rates. Having low rates on your loans can straighten up for a lot of separate shortcomings. Low recreation is what saves you money on your loans. With a lessen refer charge, you can possess a low monthly commercialism and score a such small residual when it comes dimension to respond the loans. You necessary to do everything that you can to bump an interest range that is extremely low.
Financing an upbringing in the Suprasegmental States is awkward, flatbottomed for a U.S. pupil. For non-U.S. students, stipendiary for college or lincoln in the U.S. is level harder. Virtually two-thirds of all students enrolled at personal four-year U.S. colleges and universities recognize loans of many write. U.S. students can invite loans secured by the authorities (Stafford loans, among others), but these worthy loans are not useable to non-U.S. students. Luckily, secret alumna loans are acquirable to planetary students on the unvarying damage as U.S. students.

Yesterday’s interest rate increase is a reminder to mortgage holders to shop around if they are looking to refinance their home loan, according to the Mortgage and Finance Association of Australia.

“Changes to the official interest rate can present an opportunity to borrowers to get a better deal,” said Phil Naylor, Chief Executive of the Mortgage and Finance Association of Australia (MFAA).

He said all lenders were competing for business and mortgage brokers were best placed to find consumers the right loan from a range of lenders.

“There is considerable potential to save money through refinancing and the best way to shop around is through an MFAA accredited mortgage broker,” said Naylor.

Fraudsters would soon find it difficult to raise multiple loans against the same property with the budget setting aside Rs 25 crore for a Central Electronic Registry.

The Central Electronic Registry (CER) would be a database of all all mortgages and the banks that have a charge. So in future when a borrower seeks to avail a loan against Property, an apartment or a house, the lender will be able to verify whether anyone has already got a charge on the property.

Today a majority of home loan frauds are in cases where borrowers raise multiple loans using forged documents. In some cases the fraud is perpetuated by the developer who sells an apartment under construction to two different buyers. Earlier this month ET had reported that the government may announce plans to set up such a registry to mitigate home loan frauds.

All banks and housing finance companies will provide data on title deed and home loans borrower to the central registry. Next time, a bank processes a home loan proposal, it will first verify with the central registry if the title deed is clear and not registered in any other entity’s name, or if any other bank has taken it as a security.

It is estimated that the banking sector has reported over to Rs 400-crore home loan frauds. These issues could be well tackled once a registry is formed. As of now, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act in India has enabled provision to set up a central registry. Thus, the government will have to issue a notification which will be the first step to the formation of the registry. However, the budget has not given more information about other stake holders in the registry. IBA has already submitted a feasibility report on the matter.

The Mortgage Market Advisory™ The Week of March 1, 2010 Provided by Amy Arey / National Home-Loan Advocates

Mortgage pricing had a very positive week last week as a number of economic readings came in mixed to weaker than expected. · Consumer Confidence was weaker than expected · New Home Sales was weaker than expected · Weekly Jobless Claims higher than expected Additionally we received more data that shows little to no inflation in the economy and further reiteration from Fed President Bernanke that the Fed is committed to keeping “rates low for an extended period of time.” Bond auctions were strong last week as well and continue to show traders/investors who are still hedging their bets with the safety of bonds as the EU debt crises continues to loom.

The Week Ahead: This will be a good week to stay close to your mortgage professional as Wednesday through Friday could be volatile. With a variety of impactful data points slated, traders will be watching the slew of employment data that we get starting Wednesday and ending on Friday with the Employment report for February. Since a consumer recovery is central to sustainable growth, all eyes will be watching the employment data as their indicator. Anything that would suggest a weaker view of the employment picture would be bullish for mortgage pricing at current levels, but a stronger view of the employment condition could move mortgage rates up quickly from here. Wednesday: We will get our first employment data point for the week with ADP’s employment report. This is often used as a gauge for what we might expect on Friday’s February overall employment report, while ADP only attempts to measure the private employment sector. We will also get a very important data on the condition of the service sector with the ISM report, while later in the afternoon we will get more to digest from the Fed as they release their Beige Book. Thursday: We get another dose of employment data with the Weekly Jobless Claims report that was weaker than expected last week. The other important report of the day will be the Pending Home Sales report which is expected to edge up slightly. Friday: The biggest data point of the week will be the report that can be considered the single most important report each month as we get the February Employment report at 8:30 AM ET. The estimates are looking for an unemployment rate of 9.8% accompanied with about 20k in job losses for February. Anything that would suggest a weaker view of the employment picture would be bullish for mortgage pricing at current levels, but a stronger view of the employment condition could move mortgage rates up quickly from here. Economic Calendar: Wednesday, Mar. 3 8:15 ADP Private Employment (-10k) *HIGH* 10:00 ISM Service Sector (51.0) *HIGH* 2:00 Fed Beige Book *HIGH* Thursday, Mar. 4 8:30 Weekly Jobless Claims (-20k to 475k) *HIGH* 10:00 Factory Orders (+1.2%) Moderate 10:00 Pending Home Sales (+1.7%) *HIGH* Friday, Mar. 5 8:30 February Employment Report (-20k/ 9.8%) *HIGH* Mortgage Market Advisory Disclaimer This is only our opinion and cannot be guaranteed to be in the best interest of any or all parties.

This service is provided for informational purposes only and is not intended for trading purposes. None of the information provided constitutes a solicitation, offer, or recommendation by NHLA to buy or sell any security, or to provide legal, professional, tax, accounting, or investment advice. Every lender’s price desk has their own strategies and reactions to market movements. Our information is simply based on market movements and does not predict or report potential pricing adjustments by particular lenders.

Copyright © 2010 National Home Loan Advocates LLC Copyright © 2010 National Home Loan Advocates LLC 2591 Dallas Parkway Suite 300 Frisco, TX 75034 (866) 223-4707 All Rights Reserved.

To obtain preapproval or determine current interest rates, feel free to log on to the mortgage section of my website at:  www.TheFastestGrowingCityinTexas.com.