Treasury Yield Curve Narrows on Evidence Recovery Is Slowing
March 15 (Bloomberg) — The yield gap between 10-year Treasury notes and 2-year securities narrowed in the past week by the most this year before reports that economists said will show growth is slowing.

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Mortgage rates remain below 5 percent
WASHINGTON TWP. — Mortgage rates held below the 5 percent threshold for the second straight week, a report said Thursday, weeks before a government program that has been keeping rates low is scheduled to expire.

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‘Unforced errors’ cost M&T dearly over 3 years
M&T Bank Corp. saw its purchase of a $300 million stake in a small-dollar commercial real estate lender as a good move at the time, but its chief executive officer now calls its Bayview investment one of four “unforced errors” that ultimately cost the bank $845 million in losses over three years.

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Tax credit on interest can save first-time homebuyers a bundle
Most potential homebuyers are well aware of the tax credits available before June 30, but few first-time buyers are aware of another subsidy that has no deadline yet and could prove to be a huge benefit for cash-strapped consumers.

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Plea deal rejected in loan scheme
ELLSWORTH, Maine — A Superior Court judge has rejected a plea agreement that would have put a former Surry man behind bars for 18 months for allegedly stealing more than half a million dollars from …

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Now is the time to look for a mortgage loan los angeles. This is a buyers market that may not be here too much longer. Interest rates are low so this is the best time to find a great bargain on a home and a great time to find a low interest loan. How is your credit rating?

You have to realize that the rules have changed the past couple of years. What was once a great credit score is now a good score. What was once a good score is now a fair one. You should also check your credit report before applying for a loan. If there are some errors on it you want to make sure you clear those up before you apply for your loan.

There are a lot of people out there who have errors on their report that cause their rating to suffer so do not let this happen to you. Have you been at your job for more than three years?

The longer you have been at your current job the better rate you will get. If you are a first time home owner you can qualify for some better programs. And this does not have to be the first home you have ever bought.

You can qualify as a new home buyer if it has been five years since you last bought a home. If you like to play with numbers you can figure out the payments yourself given the down payment you would have to pay and the percent of interest of the loan you are looking at. You can ask lenders to send you their quotes so you can do your own comparison shopping.

You know that homes in Los Angeles are some of the highest in the country. You will however be able to deduct some of your mortgage expenses from your federal tax return. Because your payment in the early years of the loan will go mainly to interest on the loan you are getting a large benefit when you are able to deduct that expense from your taxes.

The points on the loan cannot be deducted all at once. They have to be deducted over a long period. Make sure to consult with your tax advisor about this. There are different loans you can get.

The adjustable rate mortgage might sound good at the beginning but you might be surprised later on when the rate increases and you suddenly are spending more on your monthly payment than you had planned.

The fixed rate is the best option but you need a good credit score and a solid employment history to qualify for it. But now is the time to look at all of your options.

You can work with a mortgage broker who can find the best deals for you because he will check all of the lenders that will might be agreeable to lend to you.

The market is different however than it was a few years ago. The foreclosure crisis has made the lending industry weary of every loan they approve. But with the right research you will find the deal that works for you.

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The global financial crisis has left lots of borrowers out of luck when it comes to buying the commercial property that they need or want. As many as eighty percent fewer commercial property loans are now being written than than before. If you have been rejected by a lender and are looking for an alternative funding source to buy your commercial property, you should consider a private commercial mortgage lender.

Communicating With Your Commercial Mortgage Lender

Private commercial mortgage lenders have money to lend, but getting them to lend that money to you takes a bit of finesse on your part. First and foremost, you should respect their time and give them the information they need to make a decision about your commercial property mortgage loan in an understandable format.

Why is respecting the time you take up when communicating with your lender important? Because there are so many borrowers right now who are looking for these types of loans, your lender is a busy man (or woman). Getting time to talk to the lender is not as important as the information you will compile regarding your intended purchase.

Summarize Your Funding Needs

Before meeting with your potential Private commercial mortgage lenders, you should summarize on one sheet of paper the full details of your business venture, including projections regarding future profits and a timeline of how long it will take to become successful in your new endeavor. You should also provide appraisals for the lender to look over that clearly show how much the property that you wish to purchase is valued at under current market conditions.

Lenders will appreciate commercial property investors who respect their time. If you approach them correctly, with the right information in the right format, they will give your deal an honest look and, if your deal meets their parameters, they will fund you quickly and efficiently. Include the location of the property, and a brief description of the age, condition, and size of the property.

Your private commercial mortgage lender will be very appreciative of an abridged version of any analysis and reports that you provide – cutting through the red tape of researching the property can go a long way towards getting you the loan you need. Let the lender know the exact figure you are looking for to get started with, and also any equity that you have to pledge as collateral to secure the loan. If you have collateral, include an appraisal of the worth of your collateral as well, in current market terms. In all communication, keep your tone professional, but be mindful to keep it short and to the point.

Shop Online For Commercial Mortgages

You can find great deals on commercial mortgages online. The Internet has become a very competitive online marketplace for lenders to offer their loan products at greatly reduced rates over those that you would find at a traditional bank. In addition, online lenders tend to have better approval rates for borrowers of all credit types.

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New bank signs indicate transition from Harleysville to Niagra
Next month, all signs of Harleysville National Bank will be gone.

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All signs of Harleysville National Bank soon to disappear
Next month, all signs of Harleysville National Bank will be gone.

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All signs of Harleysville National Bank soon to disappear
Next month, all signs of Harleysville National Bank will be gone.

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FDIC Auctions Overdue Loans of Silverton, New Frontier, IndyMac
March 1 (Bloomberg) — IndyMac Bank, Silverton Bank and New Frontier Bank are among 19 lenders contributing overdue loans to a $610.5 million auction by the Federal Deposit Insurance Corp.

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Dodd, Corker Said to Near Deal on Giving Consumer Power to Fed
Senate Banking Committee Chairman Christopher Dodd and Republican Senator Bob Corker are nearing a deal to create a consumer authority at the Federal Reserve, according to two Republican Senate aides.

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There are several potential issues that can delay or “kill” your commercial mortgage refinance. Some of which will just tack on a few days or weeks to the process while others will completely eliminate the lenders interest in funding your loan. A prime example of this is value and environmental issues.

1. Title Problems. A forgotten lien on title can have a major impact on closing. Perhaps the dollar amount of the lien is substantial and cannot be rolled into the loan amount. Or the borrower may challenge the lien and will have to get it removed/resolved before the lender will fund the transaction.

2. Value. When the borrower and lender negotiate a loan term sheet, one of the most important components is the loan to value ratio. For example, on a refinance virtually all banks will not go beyond 80% loan to value. In other words, if your property is worth $1,000,000, your potential loan cannot exceed $800,000. If after your appraisal has been complete and the value comes out at say $900,000, you have a problem and a dead loan.

Besides the obvious frustration due to the canceled loan, there can be much disagreement with exactly how the value was determined. Appraisal reports are not perfect and have a subjective component to them. Deciding which comparable recent sales to use and how exactly to add/remove value from these comps is up to the discretion of the appraisal company.

3. Sudden Change in Business. Lenders sometimes call this “Adverse Change”. Basically what it means is that there has been some type of borrower change from the time of initial loan approval to the closing. With some commercial mortgage refinances taking as long as 90 – 120 days to complete, much can go wrong in that time.

For example, we had a transaction where the borrower had to purchase a small fleet of trucks for his business. The truck loan was personally guaranteed and was reported on his personal credit report. The additional debt dragged his score to the minimum acceptable levels for the funding bank. In addition, the cash flow was tight to begin with and this additional debt also affected the numbers. It created some tense moments for all involved, but was resolved.

4. Environmental Issues. The liability for the lender having to take back a property with environmental issues is huge. No one wants to be stuck with the bill and cumbersome process to clean up a property. Not to mention the possibility of being sued by neighboring owners. It is not unheard of for these costs to exceed the value of the real estate itself.

In regards to a commercial refinances, most environmental issues are not on the scale of Chernobyl. What typically happens is that the results of the Phase One come in with concerns and a recommendation for a Phase 2 report, which typically requires borings and soil samples. The cost on the Phase One is around $1,800 while a Phase 2 is much more expensive. It is not unheard of for that report to be approximately $10,000.

The borrower will have to pay for this report upfront and in cash. He could be reimbursed this cost at closing, but will have to get there – if the results of the Phase 2 shows more issues the borrower could be in a very bad position and may have dead loan and be out the $10,000.

5. A Disaster. It goes without saying that if there is some type of damage to the subject property or perhaps a death to one of the partners, that this will have a substantial delay in the least, to the refinance.

6. Insurance. The subject property has to be insured. To some this may seem painfully obvious but we have seen many refinances get delayed because of this. This problem is especially relevant on refinancing out of private mortgages and or seller financing. Many private lenders don’t confirm that proper insurance is in place or simply do not care. Also, on cash out refinances the borrower may have to increase the insured amount as the loan increases which can create issues in and of itself.

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Niagara Falls or babbling brook. How is your flow?

How do you get clients in the door? Do you have the budget and time to undertake a massive marketing campaign? Could experience with multiple property types and applications increase your value to the commercial market? Where are your deals located? How is the market in your area? Is your referral network bringing you enough business? These are all questions you need to consider when you think about how to increase your deal flow.

Of course every loan you work will not close; that is not the reality of the commercial mortgage industry. You need to be in front of the right people at the right time with the right solution to even be considered. Here are the 5 main factors that affect your deal flow which ultimately affects your cash flow. The first step is awareness; knowing what the issues are will allow you to determine a solution. Rate yourself in each of these areas:

-Referrals: Referrals are king. This is by far the number one way for a commercial broker to get business. This certainly works well for those that have been in the industry for years and have a large network, but what about those new to the industry? Can you survive waiting on someone to refer you when no one knows you exist?

-Marketing: This is how we let our potential clients know who we are and that we can provide them with a solution for their financing needs. The problem is that there are hundreds of other solutions out there all competing for the same client. Without the budget and knowledge to do it right, it is very difficult to get a good return on your marketing investment.

-Expertise: What you know and how long you have been in the business has a dramatic affect on deal flow. Of course, those that have been in the commercial business for 10 years have a greater client base and referral network. You can’t buy experience, no matter how much you spend, but what you can get is training. Through continuing training, especially at the beginning of your commercial career, you can build the knowledge it takes to get the deals done. Share that knowledge with your potential clients and you have set yourself up as the expert in the field, despite your lack of experience.

-Geography: It is no surprise that by serving a larger geographic area, you will be exposed to more deals. However, without the support of a large national company this is very difficult and potentially cost prohibitive. The downside of most national companies it that by bringing the deals to you they will expect something in return. Often a big chunk of your commission. It’s a catch 22, you get more clients, but now you need even more than before just to break even.

-The Market: Some markets are hot and some are cold that is the reality of the industry. If you are only serving a small geographic area and that area goes cold, what do you do? The key is to ensure that your client base is as diverse as possible, not only by location, but by property type and industry.

What to do? Build your business. Start by looking at the percentages that each of the above are contributing to your total deal flow and set targets for the coming year as to what you want the percentages to look like. For example, if referrals now make up 10 percent of your total business, set your targets for 20% next year and establish the game plan to do it.

For marketing, are you tracking a cost per closed loan? Do you know what you’re spending for the revenue you’re generating? Begin to cull out the sources that are not generating the returns you require.

When looking at geography, start to examine how you can expand the markets you serve. This will both increase your deal flow and minimize a downward movement in any one particular market. In effect, it is diversifying your portfolio. Look for a partner that can introduce you to new markets and provide you with lead sources into those markets.

In summary, deal flow is driven by your presence. When the market knows you’re there and do quality work, your flow will build exponentially. The next step is to formulate your plan to increase that presence and identify the partners that can help you do it.

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New bank signs indicate transition from Harleysville to Niagra
Next month, all signs of Harleysville National Bank will be gone.

Read more on North Penn Life

Senate Closer to Deal on Wall Street Regs
Proposed Consumer Watchdog Would Be Free to Write Consumer Protection Rules on Bank Fees, Credit Cards, Mortgages

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Harleysville National Bank anticipates conversion in April
HARLEYSVILLE – Next month, all signs of Harleysville National Bank will be gone.

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Senate Closer to Deal on Wall Street Regs
Obama Calls for Tougher Bank Regulation (AP) More than a year after Lehman Brothers’ collapse set off a financial panic, Senate negotiators appear close to resolving a narrow dispute that was holding …

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Senate Closer to Deal on Wall Street Regs
Obama Calls for Tougher Bank Regulation (AP) More than a year after Lehman Brothers’ collapse set off a financial panic, Senate negotiators appear close to resolving a narrow dispute that was holding …

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Mortgage Rates on 30-Year U.S. Loans Fall to 4.97% (Update2)
U.S. mortgage rates declined, lowering borrowing costs as the housing market’s recovery shows signs of slowing.

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Mortgage rates on 30-year U.S. loans fall to 4.97 percent
U.S. mortgage rates declined, lowering borrowing costs as the housing market’s recovery shows signs of slowing.

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China banks told to take hard look at mortgage risk
BEIJING, March 2 (Reuters) – China’s banking watchdog has sent a fresh reminder to banks to be stricter in their assessment of mortgage loans, the latest in a series of moves to slow lending and head off a property market bubble.

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Wen Warns of Bank Risks, Pledges Property Crackdown (Update3)
March 5 (Bloomberg) — Premier Wen Jiabao warned of “latent risk” in China’s banks and pledged to crack down on property speculation as the government faces the consequences of flooding the economy with money to drive growth.

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Dodd: hopes for financial reform deal within days
WASHINGTON (Reuters) – Senator Christopher Dodd, chief negotiator for the Democrats in talks on a bipartisan financial reform bill in the U.S. Senate, on Friday said lawmakers are “not there yet” on reaching an agreement but said he hopes one will be reached within days.

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Well begun is half done, is a very famous saying that is apt in every walk of life. In fact, if you follow it diligently, you can save yourself from many threats and you can even resolve several problems. This can happen only if you plan out everything that you do. Preparation helps you go a long way in achieving your goals. Be it your normal routine tasks or when planning a major event, the importance of to-do lists and planners is known to one and all. After all management is a subject that has widespread application and an art that grows with better planning. Thus, when applied to your finances, this science can produce such results that shall leave you astonished and may be at times speechless. Fixed mortgage interest rates leave you speechless as well! They provide you with stable figures that you can manage without any stress.

Managing your finances well is not everybody’s cup of tea, but, with help and constant effort, you too can become a good manager. Take for instance, the case of working out an advance. Based on your financial needs and circumstances, what may be good for you may leave another in a position beyond restoration. Therefore, do consider all the various offers in town before you close the deal. While working the same, check out all the various categories of interest rates and see what suits you best. In situations when the interest rates are at an all time low in the industry, you should try to get your loan worked out at fixed mortgage interest rates. The advantage of this is that you shall be able to enjoy the same rate of interest throughout the entire duration of the mortgage period. Thus, even when the interest rates rise during the amortization period, it does not increase your cost of finance as you have kept yourself secure from the market fluctuations by opting for fixed mortgage interest rates.

For those who are wondering as to what fixed mortgage interest rates are, they are the rates of interest charged on a mortgage loan, that remain unchanged over the entire length of the pay back term. In other words, the interest rate charged is fixed irrespective of the interest rates prevalent in the industry then. So, if you manage to clinch a deal at fixed mortgage interest rates and where the rates are really at rock bottom levels, then you are lucky enough to grab a fortune.

Like everything else, fixed mortgage interest rates also have their own share of drawbacks. God forbid, if you get hold of an agreement wherein, the fixed mortgage interest rates offered is higher than the ones throughout the loan period, then you shall curse yourself for not having availed of plans with variable rates. Remember, once you make the commitment with the fixed mortgage interest rates, you have to stick with them until you square off the debt or refinance.

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Consumer Agency Within Fed Seen as Victory for Banks (Update1)
For consumer advocates, housing a new agency to protect Americans from financial-product abuse within the Federal Reserve would be a defeat after lobbying for an independent body. For banks, it would represent a victory.

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End of TALF Spurs CIT, Sallie Mae Bond Sales: Credit Markets
March 3 (Bloomberg) — CIT Group Inc. , the commercial lender that emerged from bankruptcy, and SLM Corp. , the student lender, are leading the most asset-backed bond sales in six months under an expiring U.S. program that helped unlock credit markets.

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No backing for consumer agency compromise plan
A US Senate compromise to create a consumer protection unit in the Federal Reserve encountered a wall of resistance over the scope of the powers planned for the regulator.

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Swan warns banks on super-sized hikes
The Treasurer warns banks to keep their mortgage rate increases in line with the Reserve Bank’s rate rise, as the big banks mull their move.

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Deal By Owners, City, Union Could Save Hartford Hilton
Deep financial troubles at the Hartford Hilton that threatened to shutter the downtown hotel appear to have been averted, raising hopes that 150 jobs will be saved and the city will not lose another landmark hotel.

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