All In Favor Say "i"

After two years of using the Verizon Pocket PC, possibly the worst mobile phone ever made, I finally made the leap this week to the new iPhone. I've had four Pocket PCs in two years due to various malfunctions, and I didn't even bother getting another when the fourth one started up with many of the same problems. Verizon couldn't fix it, and wouldn't let me replace it with a different mobile phone, even though I was willing to take a much less expensive model.

So on to the iPhone. Holy Toledo! This is one remarkable piece of technology. I remember how I felt the first time I bought an HDTV. I stayed up all weekend watching anything and everything. Tennis, and fishing, and nature shows, and infomercials. I was mesmerized. I feel that way again. E-mails are crystal clear, the calendar is arranged perfectly, visual voicemail is soooooo cool, web browsing is quick and limitless, contacts are a breeze to scroll through, the Google Map based GPS is easy to follow, and oh yeah, the phone is pretty nifty too. There are hundreds of apps that can be downloaded for free or cheap for additional functionality or fun. Banking, stocks, sports, music, all at the touch of a button. I'm completely hooked. Un iPhone avant tout le monde!

Michigan Notary Network Requirements

As we continue to put things in place for the Michigan Notary Network, there's been a lot of thought about membership requirements and professional conduct. How do we distinguish ourselves as the cream of the crop? Here's some of the criteria for membership in the Michigan Notary Network. But whether or not you're a member of any network or aspire to be part of a network, shouldn't every signing agent be following many of these protocols?

I provide clear and accurate loan document presentations

I guarantee the accuracy of my services 100%

I strive for same-day return shipping of loan packages

I value my profession
I understand and uphold the GLBA, the Privacy Act, and proper business ethics (which includes absolutely NO marketing of other products or services to borrowers at any time)
I have the appropriate hardware and software needed, and the skill to use them
I am completely familiar with the Michigan Notary Public Act
I know when to ask a question and whom to ask
I have been awarded at least one industry Loan Signing Certification
I have a current and verifiable Background Check
I have a minimum of two years NSA experience and 500 loan signed
I will submit two Letters of Recommendation
I will participate in either a live or phone interview

The Word document for Membership Rules and Requirements has been temporarily posted here: http://www.detroitnotary.com/MMLCN.htm

Once again, If you are a Michigan Notary and feel that you truly are "the best of the best," you can contact me at alex@detroitnotary.com or Renee Kovacs at mailto:renee@nsakovacs.com

Big Mac Attack - IndyMac Bank Seized

In a stunning announcement, The Office of Thrift Supervision announced that it has seized IndyMac's assets and transferred operations to the FDIC amidst fears that IndyMac was unable to meet its depositors' demands. IndyMac is the second largest financial institution to close in U.S. history. According to the IndyMac Bank website, all non-brokered insured deposit accounts have been transferred to IndyMac Federal Bank, F.S.B., Pasadena, CA ("assuming institution") a new FDIC-insured Federal Mutual Savings Bank. The announcement goes on to say that if the balance in your account(s) is less than $100,000, no action is required on your part at this time. Your entire insured account(s) will be transferred to IndyMac Federal Bank. Hmm, not sure what this means for my mortgage with IndyMac, but I think it means I don't have to pay back my mortgage and I now own my home free and clear! Sweeeet!

(Shhh, don't wake me from my dream)

FDIC Press Release

Update 07/14/08: IndyMac reopens under control of Federal regulators

Bailout For Fannie & Freddie?

The New York Times is reporting that the U.S. government is considering a bailout plan for government sponsored Fannie Mae and Freddie Mac as both finance companies continue to struggle with funding issues and shares drop to their lowest level since 1991. The plan to put both companies in receivership would leave shareholders with nothing and stick taxpayers with the cost of covering losses (that crushing sound you hear is your government piling on top of you). Fannie and Freddie currently hold about half the mortgages in the U.S.

07/13/08 Update: Fed to extend credit to Fannie Mae & Freddie Mac.

Here's What's Really Wrong With The Mortgage Industry

Last week, Diane Cipa wrote a post about the FICO score and how it punishes the wrong people. Today, this hit home for me. A relative of mine needed $20,000 this week. His banker suggested a $20,000 HELOC. He has approximately $400,000 tied up in bonds and CDs and wanted to avoid paying a penalty for withdrawing a portion of his money early. He owns his $300,000 home outright. He and his wife paid cash for it 40 years ago. He's paid cash for all his cars. He owns three tracts of valuable land which he bought with cash 35 years ago. He and his wife have zero debt. The only credit card he has ever owned is his gas card which he pays off at the end of every month. He's lived his entire life within his means.

The bank denied his HELOC. Credit score too low. I spoke to the banker myself. We even went to high school together. Nothing can be done, the underwriters can't approve it because he has no past credit. Are you kidding me? He can't get a $20,000 loan on a paid off house worth at least $300,000 because he has no past credit?

So, you want to know what's wrong with the mortgage industry? We're idiots. We back up the money truck to those with a long history of living above their actual means, and we're stunned when it finally catches up with them. In the meantime, we consider those who are financially responsible their entire lives to be unacceptable risks. We're so stuck on more rules, and more forms, and more disclosures, and more requirements that we completely abandon all common sense. It's no wonder we're in this predicament. It was inevitable. We deserve it. And there's no sign that we're getting any wiser.

Fed To Announce New Lending Rules

In an effort to avoid the same issues that plagued the subprime industry, the Federal Reserve will next week announce new rules that would restrict prepayment penalties (something I think I've seen once in the last year anyway), require lenders to make sure borrowers set aside money to pay for taxes and insurance (forced escrow?) and bar lenders from making loans without proof of a borrower’s income (are lenders still doing this?). It would also require lenders to consider a borrower’s ability to repay a home loan from sources other than the home’s value. So now THIS is the next great cure for the mortgage blues, right?

In addition, the Fed once again defended their actions in aiding Bear Sterns and providing last ditch assistance to Wall Street investment houses.

Do Your Business Cards End Up In The Trash?

I'll bet they wouldn't if you had these amazing cards. Thanks to Renee K. for sending me the link to Creative Bits and these ingenious business cards. There's also an interesting collection on Flickr.

In With The New - The New Michigan Notary Network

After considerable evaluation and discussion, I've decided to sever my ties to the Michigan Mobile Loan Closers Network (MMLCN). Although I have valued my relationship with the MMLCN, it has become clear that the network direction is not aligned with my own business goals and what I see as a successful network model. To claim to be "the best of the best," I believe that a notary network must include specific and documented requirements for membership and participation, including verified experience and proficiency with loan signings, referrals, background checks, ethical guidelines, a code of conduct, and network marketing. As it currently stands, there are no such documented requirements for the MMLCN, and no indication of any plan to go in this direction.

So with that, Renee Kovacs and I have left the MMLCN and we've decided to start a new Michigan network, simply called The Michigan Notary Network (MNN). Over the next several weeks, we'll be working on setting up guidelines and requirements for the Michigan Notary Network, creating a web page here on the Detroit Notary site and updating the rest of the site, as well as creating a stand alone site at http://www.michigannotarynetwork.com/. The goal is to draw from other successful network models, such as the Florida Network. We also feel that it's imperative to align with other state networks in Florida, Texas, Wisconsin, California, Ohio, and Virginia. We are moving forward with those relationships as well.

If you are a Michigan Notary and feel that you truly are "the best of the best," you can contact me at alex@detroitnotary.com or Renee Kovacs at renee@nsakovacs.com. Also, stay tuned here as I'll be posting the requirements and updates as they are completed.

Housing Slide Continues

Another entry from Marta Costello at Gnooze.

Forbes - Thanks But No Thanks

I was recently contacted by Forbes.com manager Sharon Gitelle to join the best of breed Forbes Business and Financial Blog Network. My first reaction was "Wow, Forbes wants me to join their blog network! Forbes!" What's the catch? Ah, the catch. Well, for one I have to plaster a 728 x 90 leaderboard ad on the top of my page, PLUS either a 160 x 600 or 300 x 250 ad along the side of my blog. Forbes will pay me 40% of all net revenues collected from click throughs from my site (that's 40% after they deduct unspecified agency fees, ad serving fees, and network support fees). If my blog generated, oh, say 30,000 or 40,000 visitors per month, it would be worth it to plaster my blog with ads. But I just don't believe that the few bucks I might make would be worth destroying the aesthetics of this blog. I've researched the results that others before me have obtained, and the reaction was universally disappointing. Besides, my intent was never to make this blog into a money making venture. It's done to support my signing agent business, and it's done because it's a passion and a pleasure. That's why I've resisted Google Adsense up until now as well. So thanks Forbes. I appreciate the offer and I'm flattered that you like my little corner of the blog world. But I'll pass for now.

Quicken Loans Cuts 250

Quicken Loans yesterday laid off 250 people in Michigan, Ohio, & Arizona. Though not a subprime company, like many others Quicken has still felt the effects of the stumbling mortgage market. Unfortunately my best friend was one of those 250, despite five years of outstanding service and superior performance reviews. Good luck my friend. Your next employer will be lucky to have you.

FBI Cracks Down Hard On Mortgage Fraud

Housing developers.
Mortgage lenders.
Brokers.
Lawyers.
Real Estate Agents.
Appraisers.
(Hmm, no notaries?)

In a widespread crackdown on mortgage fraud, federal authorities indicted hundreds of individuals spanning a multitude of occupations in an attempt to allay fears and protect home buyers from predatory lenders. In addition, two former Bear Sterns fund managers who sold mortgage-backed investments were also arrested on conspiracy and securities fraud charges. The indictments come in the wake of allegations regarding democratic Senators Christopher Dodd and Kent Conrad, who received cut-rate home loans from Countrywide. The indictments also follow high profile arrests in Chicago, Atlanta, Houston, & Miami as part of Operation Malicious Mortgage.

“It makes clearer that the causes of the credit problems are very broad-based and can’t be put at the feet of one player,” said Mark Zandi, senior economist at Moody’s Economy.com.

PC Versus Mac - South Park style

Will Lehman Brothers Be Bailed Out Next?

Much like Bear Sterns, investment bank Lehman Brothers was thought to be well insulated from the plight that other banks have faced during these difficult times. But as it was with Bear Sterns, that isn't the case after all. Lehman Brothers posted a $3 billion loss Monday, their first loss ever since going public in 1994. It's been a turbulent week for Lehman Brother, which this week raised $6 billion in fresh capital and unexpectedly demoted two of its top executives. Lehman Brothers continues its attempt to cut exposure to residential mortgages, commercial mortgages and real estate investments.

Mortgage Terms A To Z

Glossary of mortgage terms

MBA - Treat Mortgage Bankers & Mortgage Brokers Differently

Mortgage Brokers have long chided regulation disparities between brokers and bankers. But The Mortgage Bankers Association recently released a policy paper which once again distinguishes the role differences and emphasises the need for greater disclosure by brokers regarding fees and yield spreads due to their intermediate status in the loan process. In addition, the MBA feels that bankers are already subject to greater supervision and regulation than brokers.

According to the MBA report, “Because broker compensation is directly tied to a loan’s interest rate and brokers lack an ongoing financial stake in loan performance, brokers have a high incentive to get loans closed, maximize fees for origination, and move on to their next transaction.”

Alternative Income - Merchandising

Rebecca Fair is at it again. First she put together a comprehensive list of field inspection companies and sites. Field service inspectors provide on-site property inspections for lenders, loan servicers and investors (see the April 21st post). Now Rebecca has compiled a list of over 100 companies that hire merchandisers and demonstrators. From Rebecca's website:

Merchandisers assist manufacturers in setting up anything from coupon displays, magazines, books and cards to impulse buying and POP stands. There are thousands of products and hundreds of companies that need to hire Independent Merchandisers to replenish the stock in their displays.

If you're looking for supplemental income, these extensive lists can be purchased for a nominal fee from her website.

RESPA Reforms - Comments Extended

You still have until June 12th to submit comments (keyword RESPA).

HUD Releases Report On Closing Costs

HUD recently completed a study of closing costs using a national sample of FHA-insured, 30-year fixed-rate home purchase loans. Some of the results are disappointing, but likely not surprising to many. Among the findings:

People who got loans through brokers paid $300 to $425 more in closing costs than those who got them directly from lenders.

African Americans paid an additional $415 and Latinos paid an extra $365 on average.

Borrowers in neighborhoods where all adults have a college education are charged $1,100 less than borrowers in neighborhoods where no adults have a college education.

For those who need some bedtime reading material, the 270 page report can be downloaded at huduser.org.

What's Covered Under Errors & Omission Insurance?

Although most companies require signing agents to carry errors & omission coverage, many are still unclear about what E & O insurance covers. Notary E & O insurance covers losses from notarial acts related to errors, omission, or negligence during the notarizing of documents which can include improperly identifying a borrower or an improper or missing stamp or seal. E & O does not cover errors related to non-notarized functions and documents that are a large part of what takes place at a signing. And notary bonds do not protect the notary, they protect the public. Some companies seem to be trying to fill that gap by recently offering signing agent E & O insurance. The USNA and SigningAgentInsurance.com both offer signing agent errors and omission insurance (this is not an endorsement).