Do It Yourself!

I know you look at the title and say, "Oh great another blog telling me that I can correct bad credit myself, and that I should beware of people trying to help me.".

Nope! Spring is here. The weather is improving, days are getting longer, and today I have a touch of spring fever!

So today we should get beyond the state of our housing market, the credit market, and all the hype going into the G20 meeting. Take a step back and enjoy spring.

Spring time always reminds me of Do It Yourself (D.I.Y.) projects. You would be surprised at the return on investment you'll see on some of these D.I.Y. projects. So many projects are very easy and don't take long to complete. Check out these great deals offered by your local/national retail hardware store.

Home Depot
50% off bathroom accessories

Lowes
Sale on Thermostats (this one sounds odd, but when I sold my last house it was golden touch, plus it saved me money on my utility bill every month!)

Check back for more great values on projects that will add value to your home and on a budget you can afford!

Matt Kemper
YourCreditCompany.com

Housing Market Finds Footing

Source: USA Today , Mortgage Master, Inc

According to USA Today there is more good news from the housing market! "Mortgage applications jumped last week as record low interest rates spurred a surge in demand for home refinancing, according to figures from the Mortgage Bankers Association."

This is the kind of ground swell that the housing market has been needing, and the market is certainly getting plenty of help. The cost of money or loans is at absolute record lows. In addition the devaluing of neighborhoods has brought homes across the board affordable to a larger group of potential buyers. Buyers are getting maximum bang for their buck.

Are you a potential buyer? Now is the time to find out! This market will not last forever. Hopefully it lasts until summer or fall, but interest rates will go up, thus increasing the cost to borrow.

First, you need to know your credit score YourCreditCompany.com can help click here. Next, you will need a mortgage lender, again YourCreditCompany.com can help click here. Maybe you need some credit rehab help, don't worry we can help click here.

Best of luck! Don't for get to look into the First Time Home Buyer Tax Credit! The market turns as more of us get involved in it.

Matt Kemper
YourCreditCompany.com

Housing News is Good News

Attention! Lingo Change:
All toxic assets are now to be broadly referred to as "Legacy Assets". Thank you...back to the blog!

Wow! What day the stock market had yesterday. You could feel that traders were just happy to be pulling the buy trigger. The euphoria on the trading floor must have been electric!

According to USA Today home sales rose 5.1% in the month of February. Existing home prices fell during the same month.

This is good news and the market was correct to react favorably to it. At this point no one is blind to all the troubled properties on the market (i.e. foreclosures, pre-foreclosures, and the like). These properties must clear out of the market place before housing can get out of low gear.

It is obviously is a great time to buy! Now is the time to act. Yes! Interest rates are better than any of us will see again in our lifetime. Yes! Market pricing is at a low and will come back up. The strings are coming though. Bloomberg is reporting that mortgage fees are on the rise.

Something had to go up, and of course there are a lot of people working hard in the housing market to get these short deals done, and they deserve to be compensated. I am just suggesting that you should get in on the deal before it goes up too much.

If you are not in a position to take advantage of one of these foreclosures or short sales, don't worry! Settle into you home. Invest in your home! Paint the wall a new color. Find some cool DYI projects. It is your home, enjoy it! The market will come around and you will command a better price with some personal touches.

Matt Kemper
Your Credit Company

Obama's Bailouts Questioned

An underlying question keeps occurring regardless of what topic we are discussing. That question would be, “When should government step in…or out.”
I believe it is probably human nature to take the path of least resistance. The concern that one may have is... does this short cut take you to a dead end?
It seems recently all we have been hearing is talk of bailouts. Mortgage companies have all gotten in line to take the bailout money. Now we have stumbled across another obstacle. Once the money is given should the companies be accountable for how it is used?
President Obama’s political honeymoon is in danger. AIG is giving huge bonuses to there employees. Do they deserve such bonuses when they are taking money to keep the company running? I would say “NO.” However, was there a discussion that took place or contingency on accepting these funds? I think not.
One may assume that in the economic climate that is has sparked awareness for companies to be more pro-active in doing the right thing. Mortgage companies where encouraged to do loans. The majority of Loan Originators worked off straight commission. Shouldn’t one assume that they weren’t just concerned about the homeowner’s decision to buy a home, but that they needed to close the loan in order to be paid? AIG employees, regardless of what shape the company is in, is interested in fulfilling there own financial interests. Congressional leaders are threatening not to approve further bailouts for banks and financial institutions. AIG lost $100bn last year. These executives obviously where not making good decisions, but they still feel like they deserve bonuses? This is asinine.
Obama has become the “yes” man. He has hurried through quick fixes that have turned into large problems. He has failed to fill key administration posts, such as appointing Tim Geithner who had failed to pay his taxes, as US treasury secretary. Charles Grassley said that AIG executives have committed hara-kiri. In a radio interview yesterday, he said: "I would suggest the first thing that would make me feel a little bit better toward them if they'd follow the Japanese example and come before the American people and take that deep bow and say, 'I'm sorry', and then either do one of two things: resign or go commit suicide. And in the case of the Japanese, they usually commit suicide before they make any apology."
Obama is naïve to think that these companies are looking after the common folk. I would tend to agree with Charles Grassley. They have met immediate gratification, but the opportunity will never rise again. Now it is a matter of time to see how they plan to fix their problems. Remember, they have backed themselves into a corner thus fare. There needs to be a plan that is well sought out and that can be implemented for a long-term fix. Not one that is a band aid fix that will only endure the next four years that the President is in office.
http://www.guardian.co.uk/world/2009/mar/17/aig-bonuses-obama-economy

Renee Fogle
Your Credit Company

Find The Good News

TGIF!

In the spirit of ending the week, that has seen some good news in the economy, on a good note I wanted to highlight some good news in the Housing Market.

According to the Mortgage Bankers Association mortgage applications continued a string of weekly increases. The press release states that mortgage applications for the week of March 11, 2009 increased 11.6% from the previous week (ending March 6, 2009) and a 5.7% increase from the same week a year earlier.

Yes, many news articles this week are leading with last month's foreclosure numbers increasing 6%. However, interest rates are at an amazingly low 5.02% and with more and more people applying for loans this leads to the strong possibility of more action in the housing market.

In my previous position with a local home builder we watched these numbers closely. Movement in the housing market was very important to us (even when it was not us selling a home). We would be highly encouraged by people buying homes because that meant people who sold their home potentially would be buying another home, thus creating a domino effect.

Reduction in housing inventory is important to getting our economy back on track. The housing industry affects a myriad of business (many of them small business) from contractors and their sales/marketing and support staffs to installers to suppliers, to manufactures. We may still have to endure for awhile longer, but positive numbers should offer some encouragement and a reason to lift our collective chin.

Matt Kemper
YourCreditCompany.com

To apply for a mortgage or get more information on mortgages visit us today!

Hail To The Banks...

...well not all Banks.

First, I would like to congratulate Citi Bank for turning a profitable first couple months of 2009. Now I hope they will be able to do as the following banks are planning to do, which is to pay back the government and get back to running their bank the way they intended.

The New York Times is reporting that:
"As public outrage swells over the rapidly growing cost of bailing out financial institutions, the Obama administration and lawmakers are attaching more and more strings to rescue funds.

The conditions are necessary to prevent Wall Street executives from paying lavish bonuses and buying corporate jets, some experts say, but others say the conditions go beyond protecting taxpayers and border on social engineering.

Some bankers say the conditions have become so onerous that they want to return the bailout money. The list includes small banks like the TCF Financial Corporation of Wayzata, Minn., and Iberia Bank of Lafayette, La., as well as giants like Goldman Sachs and Wells Fargo.

They say they plan to return the money as quickly as possible or as soon as regulators set up a process to accept the refunds. On Tuesday, Signature Bank of New York announced that because of new executive pay restrictions in the economic stimulus package, it notified the Treasury that it intended to return the $120 million it had received from the government only three months ago."

Another bank mentioned in the article was Johnson Bank of Racine, WI.

I would like to applaud these banks for boldly standing firm in this economic downturn and recognizing the opportunities for them to succeed if they are not restrained by the government.

There is at least one bank on this list that is local to me. I pledge that if that bank gives back all taxpayer money, thus cutting the strings imposed by the government, I will express my vote as a consumer by opening an account. I encourage you to take note of these banks and keep an eye on the news. When you see a bank in your area that has given back taxpayer money to the Treasury, support them with either your voice and/or your dollars.

Matt Kemper
YourCreditCompany.com

Power to the Consumer!

Sorry about the gap between posting all!

Lately I've been thinking about the consumer. There is a lot of commentary about bubbles these days. The Savings and Loan Bubble, The .com Bubble, and most recently the hosing bubble. Wild fluctuations over several years of expanding and contracting economies. My brain has really been working on the relation with these bubbles, and the consumer. Can a balance exist? Certainly balance can be achieved, but who's responsibility is it to create that balance, and to what extent?

There are those out there that will shout very loudly that the business community in general, and Wall Street specifically, caused this deepening recession. Governments are another choice to create balance. Obviously right now our government is throwing everything, including the kitchen sink, at the economy hoping it will improve. However, let me introduce you to a third choice. This group rises above the other two. The other two choices are ultimately dependent upon this group. Look into the glare of your monitor. The group is you.

Can you comprehend the amazing responsibility you have as a consumer? You, as a part of the consumer collective, decide what products reamain in the market. If you don't like a company, certainly you can sell your interest in that company, maybe even get others to sell too! Government might be more tricky, especially here in the United States. You do have voice and a vote, but not on everything. The United States is a "representative democracy". You get a say in who represents you, but after that the best you can do is remind them who and what they represent. Not to worry though, he/she will be back in a couple years asking for your support again, and you will have the responsibility again.

The consumer vote must remain strong. The strength of that vote is threatened by misuse of personal credit. Personal credit has marginalized many consumers, and will continue to as long as consumers use it irresponsibly. Consumers should work toward a minimizing their personal debt and create responsible habits when using personal credit. Personal credit allows a single consumer to become the equivalent of 3/8 of a vote or less, and barring and misrepresentation, the consumer did it to his/her self.

In this difficult economy it is more important than ever that the consumers recognize their role and responsibility. Every dollar that is spent, or invested, or saved is an affirmative vote. Power to the Consumer!

Matt Kemper
www.YourCreditCompany.com

Barrack Obama says "Yes" again. A Quick Fix for a Large Problem.

Our President, Barrack Obama has said “Yes” again. Our Senators have also come aboard to implement this new program. (I will not mention the amount of ear marks that where applied. I cannot imagine a Senator voting on something just to serve their best interest. A whole other Blog in itself.) Now the question is…"Will the banks come aboard?”
The survey that was taken says that only forty percent of the American people believe there should even be a bailout for irresponsible homeowners. Hardship or not! Nevertheless, let us move past that, and get to the point. The President has implemented a plan, a bail out. This is not just to give them a bailout, but it also include incentives for…paying your bills on time. This does not only apply to the consumer paying their bill, but the banking institution that is receiving it. WOW…an incentive to do the responsible thing!
I understand that there are things in life that happen that one has no control over, like loss of a job. The irony here is that this plan will not apply to these individuals. Their payments need to be paid up-to-date. The housing ratio cannot exceed 38% percent of their budget. The goal is to get it to 31%. This can be achieved by, lowering interest rates, extending the term of the loan (Obviously beneficial to the bank. They will make more interest), or giving a principal reduction. To the banks discretion of course. I have not decided if one should be rewarded for doing what they are suppose to. I will get back to you on this. As a parent, I never rewarded my son for doing the responsible thing. He suffered his own consequences when he did not. The obvious answer for all of us.
Back to the guidelines, I am getting there. The loans have to show proof of income i.e. tax returns, form 4506, two most recent pay stubs. If the borrower is self-employed, their income needs to be verified by a third party. (Such as a letter form an attorney or accountant.) It needs to be a primary resident, one to four units. This will not be done for any investment properties. The borrower needs to show an appropriate amount of liquid assets as well. These all seem like logical guidelines. The government has allowed the loans to be underwritten with three different systems. These are electronic. In the guideline, it says that the consumer has to have a certain confidence score. Who knows how that is being affected? Just as I wrote the other day…the FICO scores are adversely being affected by even ones credit card habits. This was no fault of the consumer that these companies implanted different rules themselves, lowering ones limits. Therefore, we will see how this will contribute to a modification or refinance under this program.
Last and certainly not least, the consumer has to show hardship. This seems simple enough. Between the price of groceries and the stock market and the down turn. However, those circumstances will not apply. It needs to be divorce, payment shock of an adjustable rate mortgage, or other types of payments adjusting, such as one’s credit card.
These loans are controlled and serviced by Freddie Mac and Fannie Mae. Government controlled and insured loan services. If they are not Fannie or Freddie loans, these conditions for a modification will not applied. Again, the advantage of a modification is that there are NO closing costs. There will be exceptions for the loan to value. There is a new formula that will be applied and it is not necessary to have 20% equity in order to acquire this transaction. In a refinance, one still will have to have this wiggle room.
One very important fact about this program is that the interest rate will be reduced, but not necessarily for the whole life of the loan. The rate can adjust, and will be reevaluated in a five-year period. I question this? Our new hope will either be re-elected or no longer dealing with this band aid that then has to be torn off , hopefully, in a recovered economy.
http://Yourcreditcompany.com
Renee Fogle

Homeowner Affordability Plan Is Out!

The Obama Administration and U.S. Treasury released more details on the Homeowners Affordability Plan today. The plan is meant to assist responsible homeowners that are in danger of entering foreclosure or going "under water" by lowering their monthly payments.

YourCreditCompany.com is dissecting the plan and will bring you specific details on plan, which goes into effect immediately. You can find the plan here, and read it for yourself to determine if you qualify or how it might affect your business.

We highly reccomend reading the text. Thus far the television coverage has just scratched the surface of what the plan entails. We can tell you that there are requirments that homeowners will have to meet. Homeowners will have to provide some documentation and will have to show hardship. The lender/servicer that carries your mortgage will also have to participate in the program, however if your home is serviced by Fannie Mae, Freddie Mac, or certain banks that took TARP funds will be required to participate in the plan.

Look for more details tomorrow!

Matt Kemper
YourCreditCompany.com
Don't forget to subscribe to the Your Credit Company Blog!

Credit Card Crunch

This morning on GMA Elisabeth Leamy met a couple who is directly affected by the ripple affect of the changes that the credit card companies are making. http://abcnews.go.com/gma Banks are now lowering consumer’s credit card lines. This in turn is causing credit scores to be lowered.

What does this mean to the average consumer? Their FICO scores are lowering and it is costing the consumer by paying more in interest on all their other loans. This can include car loans, mortgages, and personal loans. These consumers can no longer even consider refinancing, because based on their credit score; they will then receive a higher mortgage rate of interest.

Most of these companies are doing this with a computer-generated piece of software. It can blanket a large part of this market. These cases are not looked at on a case-by-case basis. When the consumer’s credit card limits are cut, it will then increase the ratio (the amount that they have already put on the card). The consumer does have a responsibility. They have signed a contractual agreement when borrowing these funds. Have they read the fine print before that have spent this money? Are people being forced into using these cards as an instant fix in a financial crunch such as loosing their jobs?

Chris Dodd-chairman of the Senate Committee on Banking, Housing, and Urban Affairs has proposed the Credit Card Accountabilty, Responsibilty and Disclosure Act. This is to insure against predatory practices. This Act is to protect the consumer by “bringing an end” to unfair practices and strengthening consumer’s financial security. It is outlined below: Protect consumers from “any time, any reason” interest rate increases and account changes; Prohibit unfair application of card payments; Protect cardholders who pay on time; Limit fees and penalties; Ensure that cardholders are informed of the terms of their account; and Protect young consumers from credit card solicitations.
My question being…when and how and why not now?

Renee Fogle
YourCreditCompany.com