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Momentum for Life - 21 Apr 09

In This Issue

The Note from Dan
Upcoming Events & Launch
The Firewall That Doesn’t Work
Announcements
Recommendation

A Note From Dan

Eileen & I spent last Thursday through Sunday in Las Vegas for my niece Carly’s wedding at the Angel Park golf course, and my nephew Patrick’s 30th birthday celebration at Harrah’s Toby Keith’s Bar N Grill. Wow, what a great 4 days away! The J. W. Marriott in Las Vegas was a wonderful place for Eileen and I to stay between celebrations. We are back with batteries recharged, inspiration high and determined to have the most productive week in months.

Upcoming Events & Launch

Are you currently worried about anything related to money or your future?

Is the negative thinking and messages we get from most media sources causing frustration?

Making positive strides should be what we are all focused upon, so are you?

We have just launched a 1 to 1 personal and private program that can help - Prosperity Coaching - click here to find out more and receive a free best selling E-book for completing a free consultation. Coaching

The Wealth Control System is currently being Beta tested.

I need 6 clients to test this premier upscale financial product this week.

Here’s what you can expect. We will ask you a sequence of questions, the answers to which will show us:

The quality of life you and your wife want for your family and the money required to fund it
Current and anticipated wealth management practices, style, and objectives
What you consider retirement to be and at what age you will retire, if at all

Then, with what you give us, we prepare reports with scenarios that show you:

What to expect from your cash flow management and any improvements
Real estate performance and profit building over time
Earned and passive income performance over time
Your assets and liability strategies as they develop over time

The Firewall That Doesn’t Work

Lawmakers and the mortgage industry itself are tweaking guidelines and regulations to accomplish two goals: make more mortgages available; and prevent another mortgage meltdown. It’s a big challenge to achieve balance between these two goals.

Tighter guidelines may prevent borrowers from getting mortgages they can’t afford. But overly restrictive guidelines can prevent credit worthy borrowers from refinancing into lower rates or buying new homes. If borrowers can’t refinance, many will lose their homes to foreclosure, thus home values spiral downward, neighborhood by neighborhood. If buyers can’t get mortgages to buy homes from homeowners who can’t refinance and therefore need to sell, the same downward spiral in values occurs.

It will require wisdom by rule makers and patience by the public, as changes are tweaked until balance is achieved. Since most of us are not rule makers, we must be patient. But - being patient does not mean remaining silent. We must make our voices heard.

While searching for balance, it can be tempting for politicians to introduce and support legislation that sounds good, but can be harmful. Here’s an example:

One factor contributing to foreclosures was inflated appraisal values. In many cases inflated values were created when appraisers caved in to pressure from mortgage originators to produce values supporting desired loan amounts.

A good solution: Independent third party review of appraisals on a random basis. This would weed out bad appraisals (and appraisers) and protect consumers, the industry, and the economy. Yet unless overturned, a different solution becomes effective May 1st: a “firewall” between appraisers and loan originators.

Loan originators will be prevented from ordering appraisals directly from (or even talking to) appraisers. Mortgage brokers will request an appraisal through a separate division (a gatekeeper entity) of wholesale lenders who select an appraisal company. Loan officers in direct lending companies will likewise make a request to a gatekeeper with the same restrictions on the originator. On the surface, this sounds good - no pressure by originators on appraisers. But here’s what happens.

Consumers will pay as much as $200/$300 more for appraisals because gatekeepers will also collect a fee in addition to the appraiser’s fee.

Gatekeepers will assign appraisals to the next appraisal company on an approved list. There will be little incentive for appraisers to give great service and no way for originators to select an appraiser known for quality service. It will be “luck of the draw.”

In order to correct errors on appraisals, originators contact gatekeepers who contact the appraisal companies who contact the appraiser. Corrected errors take the same route back, sometimes adding days to transactions with no added benefit. If borrowers change lenders they will need a new appraisal at additional cost and time.

Presently, originators can get an idea of value from an appraiser before proceeding with a refinance: very important in a declining market. If the value is not there, the client is advised not to proceed. After May 1st, borrowers must pay for appraisals upfront (including added cost for the gatekeeper) - and if the value is not there - too bad.

This new rule is pursuant to an agreement between New York Attorney General Cuomo and Fannie Mae and Freddie Mac.

Google “NAMB Lawsuit” for details of a lawsuit filed by the National Association of Mortgage Brokers to void this agreement.

Do your own research on the issue. Then tell your representatives in Washington your position. Make your voice heard.

A firewall may sound good, but we believe it will be harmful to consumers and the industry.

Satori Alliance Announcements

Veronica Dostal, Accredited Financial Counselor & Julie Gauthier, Ph.D., Licensed Psychologist Present:

Couples & Money Workshop:

Developing Teamwork to Navigate Today’s Choppy Financial Waters

Thursday, April 30, 2009, Menlo Park, 7-10 pm

Cost $180. per couple

Reservations are required. Go to www.couplesresourcecenter.com

or contact Veronica Dostal at 408.243.4850 or VRDostal@aol.com

Gustavo Rearte - From RPM Mortgage: may be calling you!

I have engaged the services of Gustavo to make initial contact with the long list of clients I’ve developed over the years. I am doing this to get to those of you who want to have conversations with me about your financing needs in this extremely low interest rate environment. He is backed up by the skilled and proficient team at RPM Mortgage.

We Recommend

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Meet Chris Gray of Gray Electric - Licensed & Insured Electrician

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