Article Archives for Spokane, Washington VA Home Loans - Since 2005    (Page 4)

Flexibility and creativity dont exactly come to mind when you think about the mortgage or real estate environment, however as sales people, were constantly tasked to be ever more creative…….get deeper into a niche, create a new a new niche, and be ever vigilant with our creativity. 

The more that employees are encouraged to think creatively and apply that creativity, the more flexible in practice and nimble in responsiveness a company becomes. When you take pressure off people to come up with a “big” idea, you encourage the creativity that can bring about incremental innovations. As a result, a new service or product offering may emerge, but it’s more likely that you will optimize your operations for cost, quality, efficiency, and speed.

At its core, innovation is applied creativity. And, it is my belief since I have seen it for years is that most employees can be encouraged to be creative, if you want them to be.

How can you encourage small innovations?

Think small. The beauty of small innovations is that they focus on immediate concerns, not on finding game-changing products. Encourage your people to find a solution to a problem, or a better way of doing things.

Try posing questions: How can accounting streamline billing? How can customer service resolve issues on the phone without supervisor intervention? How can product engineers find more time to spend with customers? Using such questions will get people generating ideas. Not every idea will be brilliant, but that’s the point. You want to collect ideas, refine them, and select the best for implementation.

Implement locally. Since most small innovations are limited to a department or a function, put them into action as soon as possible. If the idea does not work as expected, don’t abandon it immediately — see if you can tweak it. Implementation itself can be creative and sometimes it takes several tries to make innovative ideas work as expected, or beyond expectations.

Promote widely. You need to recognize those who think of and support the innovations. Many organizations provide incentives for such efforts, from gift coupons all the way up to substantive bonuses for innovations that positively affect the entire company. The important thing is to recognize the right people, and to do it in a timely fashion.

Encouraging small innovations is only part of the management equation. Execution of the innovations is critical. No amount of applied creativity can make up for slipped deadlines, blown budgets, dissatisfied customers, or unbalanced profit and loss statements. You need to focus on the details to get things done.

You may also discover another benefit from your small innovations: tapping into the collective brainpower of your employees. They are your collaborators, and by treating them as such you make it known that you welcome their ideas and will reward them.  For when employee’s realize that they playing as a team and idea’s and new innovations are welcomed you create a more vibrant culture….. a more relaxed and open atmosphere..less constrictive environment. 

In the Mortgage industry, one that is more and more regulated we dont have wiggle room that allows us flexibility.  However the way that each broker, or mortgage bank runs their own business, there is room for improvement; there is room for more efficiency.  In the mortgage industry nothing has been perfected…..not that I’m aware of anyhow….so put the brain to use…….challenge yourself to be creative and see if you cant  land an idea worthy of approaching your manager with and implementing that cost or time saving vision.

Kevin Lawson

Having been in the industry long enough to see several ups and downs, this new set of changes set upon us in 2010 is not the end all.  At least for myself and the fine folks at Creekside Mortgage, Inc..  We have all tried to prepare as much as possible for the events that have unfolded and maybe some were more prepared than others here at Creekside Mortgage, Inc, however our attitudes as a group have propelled us to an altitude that will allow us to make it through the adversity that awaits us.

I had the opportunity to go to Atlantis, in the Bahama’s recently and upon my return didnt expect anything out of the norm upon returning to work.  Other than having had such an amazing time that I wish I could have stayed one more week.  I made a promise to myself prior to going.  I was going to make it through this season of change…..in which my personality allows me to embrace change, pull the positive out of it and get on with life.  Some individuals may find change a little more uncomfortable.  For those that do, I’m not exactly sure how to advise you to better look at the situation (change), however, like any adverse situation that comes your way, attitude is KING !!!  So keep that in mind while traveling through life.

I came back from vacation to find that everything was fine, we are all having to deal with the same issue’s and no one has a sense of panic or fear (at least not to my knowledge) and everyone is committed to going forward, making the charge to get to the front line’s, win our battle and go home and feast on the knowledge that we, and you can conquer what you set your mind to.  I am not saying that there wont be hardship, because anything worth succeeding at is going to be tough.   Its true, it really is.  So while your going through your day and that thought that might creep into your mind says, “this isn’t worth it”, stop and think about a couple of things. This change is good for you and the industry, if your providing sound professional and honest transaction advise,  and your morals and value’s are in the right spot.   If not you might want to look to another profession and I promise this is another “thinning of the heard” so to speak.  Every time that such change comes our way another group of loan officers, brokers and all of the support staff it takes to make it happen bail on the industry.  So, stop and think about it before you throw in the towel, unless your in it for the wrong reason to begin with, be my guest and hit the road.

Kevin Lawson

The VA Loan became known in 1944 through the original Servicemen’s Readjustment Act also known as the GI Bill of Rights. The GI Bill was signed into law by President Franklin D. Roosevelt and provided veterans with a federally guaranteed home with no down payment. This feature was designed to provide housing and assistance for veterans and their families, and the dream of home ownership became a reality for millions of veterans. The GI Bill contributed more than any other program in history to the welfare of veterans and their families, and to the growth of the nation’s economy. 

With more than 25.5 million veterans and service personnel eligible for VA financing, this loan is attractive and has many advantages. Eligibility for the VA loan is defined as Veterans who served on active duty and have a discharge other than dishonorable after a minimum of 90 days of service during wartime or a minimum of 181 continuous days during peacetime. There is a two-year requirement if the veteran enlisted and began service after September 7, 1980 or was an officer and began service after October 16, 1981. There is a six-year requirement for National guards and reservists with certain criteria and there are specific rules concerning the eligibility of surviving spouses.

VA will guarantee a maximum of 25 percent of a home loan amount up to $104,250, which limits the maximum loan amount to $417,000. Generally, the reasonable value of the property or the purchase price, whichever is less, plus the funding fee may be borrowed. All veterans must qualify, for they are not automatically eligible for the program. 

VA guaranteed loans are made by private lenders, such as banks, savings & loans, or mortgage companies to eligible veterans for the purchase of a home, which must be for their own personal occupancy. The guaranty means the lender is protected against loss if you or a later owner fails to repay the loan. The guaranty replaces the protection the lender normally receives by requiring a down payment allowing you to obtain favorable financing terms.

Kevin Lawson

The Federal Reserve Board’s proposed changes to Regulation Z/the Truth in Lending Act (TILA) contained in docket No. R-1366 could harm the mortgage-brokerage business as we know it. The Fed will accept comments on the proposed change through Dec. 24, 2009.

Brokers have weathered ill-advised change after ill-advised change during recent times,  and now face the wrath of further harm at the hands of the Fed. The loss of yield-spread premiums would create many issues.

Lets begin here;  if brokers can’t be paid based on the terms of deals they deliver to lenders, how are they going to be compensated? In many cases, brokers will have to charge borrowers greater fees. Many brokers make successful transactions for clients in need, and many of those are extremely difficult ones. Those deals can take months to close, and brokers must make a certain percentage per deal to stay in business.

In addition, the elimination of YSP would further tilt the playing field toward bankers, who could still receive premiums and income from marked-up rates sold to borrowers.

The loss of brokers ultimately will harm consumers, who will be faced with fewer loan options in a less-competitive mortgage market. In addition, the proposed rule could decimate the broker industry and render brokers unable to pay their loan officers. Thus, thousands of people could be out of work, with some signs pointing to Regulation Z changes as a factor.  In this economic climate, does this make any sense??

YSP’s advantages

When mortgage brokers complete a loan for a client, they buy the money at wholesale — at the par rate — and sell it to their clients at retail, thereby earning YSP. This keeps brokers from having to charge more money upfront, which borrowers often wouldn’t be able to afford. The payment of YSP allows:

• Brokers to make a fair amount for their efforts; and
• Borrowers to complete a transaction that fits their needs.

If clients aren’t satisfied with what a broker offers them, it’s their option and responsibility to seek a better deal elsewhere. None of this changes brokers’ need to pay for office space, insurance, audits, licensing and bond fees, etc.

Moreover, brokers who fully and clearly disclose their firm’s compensation to clients must discuss with and disclose to borrowers their collection of YSP on multiple occasions, including on the:

• Current good-faith estimate (GFE);
• New GFE, which takes effect this coming Jan. 1;
• Mortgage loan origination agreement;
• Brokerage business contract;
• U.S. Department of Housing and Urban Development (HUD)-1 settlement statement;
• Attorney closing instructions that borrowers normally have to acknowledge; and
• Regulation Z/TILA disclosures that lenders send to borrowers after application.

Brokers could say directly to clients: “I get paid by banks to place your loans with them. Many lenders compete over my business as a broker, and in some cases, they pay me to place your loan with them.” By and large, clients don’t care and won’t care.

Time to act

Now is the time for everyone in the mortgage industry to fight the Fed’s attempt to eliminate YSP. The Fed already more or less owns our banks and financial markets. Are we going to stand by and let them own us, too?

First, consider joining the National Association of Mortgage Brokers (NAMB). NAMB volunteers often are small-business owners, and they want our industry to thrive. The dues members pay to NAMB help fight for our interests in Washington, D.C.

Second, you must personally speak up. Comment on the proposed rule. When you do comment, make sure to explain the destructive impact the rule would have not only on the brokerage industry but also on consumers.

Third, educate your peers, business partners and clients about how the proposed rule will harm small businesses and consumer lending activity, and about how it will increase costs for consumers. Ask your partners and clients — past and current — to comment on the proposed rule. Note that without their help, your business and the opportunities offered by mortgage brokers could disappear.

Kevin Lawson & Scottsman/Guide

First of all I would  highly recommend going to any pre-move briefing available on your base.  Your military husband/wife  most likely must go to this and spouses are encouraged to attend as well.  One of the most valuable things you can do as a moving military family is get connected with a distinguished, professional realtor.  

A realtor with military familiarization, and PCS’ing  in there past is going to afford you a sense of peace when it comes to safely arriving at your intended destination.   In Spokane you have options obviously but Jeannette Karis with Re/Max of Spokane should NOT be overlooked.  Having the 2009 designation of Spokane Association of Realtors President, its my belief that you will be hard pressed to find a more highly qualified candidtate for the job of respresenting you in your transaction.

Jeannette Karis has many designations, awards, educational hours and Spokane Association of Realtors designations as well;  however what makes Jeannette Karis unique, is her passion for what she does.  Not only does she strive to insure that a active military person or a veterans transaction is smooth the entire way through, but she also sincerely cares about people that she works with.  All you have to do is spend a few minutes with Jeannette and this becomes increasingly evident.  This is but a glimpse into the reality of Jeannette’s world, as I could go on for quite sometime. 
To get to the point one must be organized in the PCS move process or you’ll soon be in over your head, you could owe money, have lost goods and have a terrible overall experience.  One way to avoid all of this is to do pro-active homework.  Get a class under your belt and locate a very professional realtor…… if your looking for one of the best.  Look no further than Jeannette Karis.

Kevin J. Lawson