ARAMCO Report - The Mother of ALL Mortgage Blogs!

ARAMCO Report - Monday August 25, 2014

Posted by Mehran Aram on Mon, Aug 25, 2014 @ 17:08 PM

According to a recent report from the Federal Reserve Bank of Chicago, U.S. economic activity in July expanded at a rate above its historical trend. While Fed Chairwoman Janet Yellen continues to outline positive news in the job market as support for the Fed increasing rates, the bond market remained relatively unchanged on Monday. 30-year fixed rates remain at around 4.125% while 15-year rates average 3.25%.

And now for something, completely different: Did you know that the average American is more than $200,000 in debt? And to top that, most Americans have less than $500 in savings.

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at www.ARAMCO.Biz or call me at (866) 700-0942.

This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

Topics: Aramco Financial, Aramco Report, home purchase, Federal Reserve Bank of Chicago, debt, savings, Aramco Mortgage, Janet Yellen, American, Fed Chairwoman, 30 year fixed rates

ARAMCO Report - Tuesday August 19, 2014

Posted by Mehran Aram on Tue, Aug 19, 2014 @ 17:08 PM

According to the U.S. Department of Commerce, construction on new homes jumped by 15.7% in July and reached its highest level in 8 months, further evidence of a recovering housing market. The jump in housing starts exceeded economists’ expectations on Wall Street. Meanwhile the pace of inflation at the consumer level cooled following a sharp increase earlier in the year. Conforming no point 30 year fixed mortgage rates average 4 1/8th with 15 year rates closer to 3 1/4%.

And now for something completely different: Did you know that there is only one type of rock that can float in water? It’s the volcanic rock, also known as pumice!

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at www.ARAMCO.Biz or call me at (877) 700-0942.

This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

Topics: Aramco Financial, Aramco Report, and now for something completely different, home purchase, home ownership, Wall street, Floating Rock, Construction, new homes, Pumice, refinance, U.S. Department of Commerce

ARAMCO Report - Thursday August 14, 2014

Posted by Mehran Aram on Thu, Aug 14, 2014 @ 17:08 PM

According to RealtyTrac, foreclosures in July rose by 2% but they were still down 16% from a year ago. Meanwhile CoreLogic reported that the share of homes purchased in cash continued its decline in May and fell to the lowest level since May of 2010, reflecting in part less interest from investors. Mortgage rates remain at their lowest level of the year with conforming no point 30 year fixed rates averaging 4 1/8th and 15 year rates closer to 3 1/4%.

And now for something, completely different: Did you know that President James Garfield could write Latin with one hand, and Greek with the other, at the same time?

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942.

This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

Topics: Aramco Financial, Aramco Report, and now for something completely different, home purchase, RealtyTrac, President James Garfield, CoreLogic, 30 year fixed rates, Latin, foreclosures, Greek, cash purchase, ARAMCO

ARAMCO Report - Tuesday July 15 , 2014

Posted by Mehran Aram on Tue, Jul 15, 2014 @ 17:07 PM

Federal Reserve Chairwoman Janet Yellen made some bond friendly remarks in her semi-annual report to Congress. She said a high degree of monetary policy accommodation remains appropriate since the U.S. economic recovery is not complete and too many Americans remain unemployed. Most Fed officials do not expect raising rates until next year. Meanwhile conforming no point 30 year fixed mortgage rates still average 4 1/8th with 15 year rates closer to 3 1/8th.

And now for something, completely different: Did you know that computer users blink an average of 7 times per minute? The average person blinks 22 times per minute!

For more information on a home purchase, a refinance, or a reverse mortgage, visit our website at www.ARAMCO.Biz or call me at (877) 700-0942.

This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

Topics: Reverse Mortgage, Aramco Financial, Aramco Report, and now for something completely different, Aramco Mortgage, Janet Yellen, 30 year fixed rates, ARAMCO, UT-TV, Home Purchasing

ARAMCO Report - Monday July 14, 2014

Posted by Mehran Aram on Mon, Jul 14, 2014 @ 17:07 PM

In the absence of any market moving economic data, mortgage rates remained at their lowest level of the year with conforming no point 30 year fixed rates averaging 4 1/8th and 15 year rates closer to 3 1/8th. While historically these are extremely low rates, they are about 3/4s of a % above where they were a year and a half ago. According to CoreLogic more than 1/3rd of homes with a mortgage now have rates below 4% and this year as many as 3.6 million homeowners are unlikely to sell their home so that they can keep their low rates.

And now for something completely different: Did you know that it took approximately 2.5 million blocks to build the pyramid of Giza? It is one of the Great Pyramids!

For more information on a home purchase, a refinance, or a reverse mortgage, visit our website at www.ARAMCO.Biz or call me at (877) 700–0942.

This is Mehran Aram with today's ARAMCO report.

Ask Mehran Aram

Topics: Reverse Mortgage, Aramco Financial, Aramco Report, homeowners, Pyramids, Great Pyramids, CoreLogic, 30 year fixed rates, ARAMCO, UT-TV, Giza

Mark Larson Interviews ARAMCO's Mehran Aram-May 29, 2014

Posted by The Aramco Group on Thu, May 29, 2014 @ 16:05 PM

In his weekly interview with ARAMCO Group CEO Mehran Aram, KUSI TV San Diego's Mark Larson chats on the latest mortgage news, reverse mortgages, and real estate trends. Click below to listen to this week's discussion!: 

Mark Larson Talks with ARAMCO CEO Mehran Aram 5-29-14.mp3

 

About Mehran Aram: 

Mehran Aram is the President and CEO of The Aramco Group, and has over 20 years experience in the mortgage/real estate industries. A graduate of USD School of Business, he has made a name for himself by writing and producing The ARAMCO Report, his one minute daily radio/tv analysis of the mortgage and real estate markets, every day for 20 years. The ARAMCO Report is now syndicated across the Radio America Network and is heard in more than 100 markets daily. The TV version of The ARAMCO Report is now featured on it's second season following every weekday San Diego Padres game, on FOX Sports SD. Mehran is a guest contributor weekly on the nationally syndicated, Roger Hedgecock Show as well being featured on Mark Larson and George Chamberlin's shows. More recently he became one of less than 100 Certified Reverse Mortgage Professionals, CRMP, in the nation and hosts monthly workshops to educate seniors and boomers on retirement and the reverse mortgage.


About Mark Larson:  

Heard on over 2,000 radio and TV stations across the world, Mark Larson is known for his integrity, charitable work, and fair political analysis. He acts as the political analyst for KUSI TV San Diego, and is a contributor on NBC, Fox News, MSNBC, Larry King Live, and the Dennis Prager Show. In addition to his political credentials, Mark Larson is a regular guest on the popular Christian radio show, “Turning Point,” with Dr. David Jeremiah.

Topics: Reverse Mortgage, Aramco Financial, Aramco Report, Mehran Aram, FOX Sports, Larry King Live, TV, stations, political analyst, mortgage news, Mortgage Market, Mark Larson, radio, politics, Reverse

Healthy vs. Sick Housing Markets: ARAMCO CEO Mehran Aram talks with Roger Hedgecock- May 28, 2014

Posted by The Aramco Group on Wed, May 28, 2014 @ 15:05 PM

Former San Diego Mayor and syndicated radio host Roger Hedgecock discusses various housing markets across the country, where its booming and where it isn't with The ARAMCO Group's CEO Mehran Aram in this weeks spot on the Roger Hedgecock Show. Click below to listen!:

Roger Hedgecock interviews Mehran Aram 5-28-14

 

About Mehran Aram: 

Mehran Aram is the President and CEO of The Aramco Group, and has over 20 years experience in the mortgage/real estate industries. A graduate of USD School of Business, he has made a name for himself by writing and producing The ARAMCO Report, his one minute daily radio/tv analysis of the mortgage and real estate markets, every day for 20 years. The ARAMCO Report is now syndicated across the Radio America Network and is heard in more than 100 markets daily. The TV version of The ARAMCO Report is now featured on it's second season following every weekday San Diego Padres game, on FOX Sports SD. Mehran is a guest contributor weekly on the nationally syndicated, Roger Hedgecock Show as well being featured on Mark Larson and George Chamberlin's shows. More recently he became one of less than 100 Certified Reverse Mortgage Professionals, CRMP, in the nation and hosts monthly workshops to educate seniors and boomers on retirement and the reverse mortgage.

 

About Roger Hedgecock:

Roger Hedgecock, the former Mayor of San Diego, and currently one of talk radio’s biggest names, has a nationally syndicated radio show that airs 3pm to 6pm weekday afternoons. From San Diego to New York, Americans across the country listen to Roger Hedgecock not only for his political insight, but also for his proactive approach across various issues. 

Topics: Aramco Financial, Aramco Report, home buying, The Aramco Group, San Diego, Mehran Aram, Roger Hedgecock, home ownership, Radio America, economic data, Mortgage rates

New and Improved: It's Not Your Father’s Reverse Mortgage

Posted by Valerie Jansen on Mon, May 19, 2014 @ 15:05 PM

While some things never change, the opposite is true for the Reverse Mortgage program during the past few years.Even though there has been considerable debate about the abundance of changes to the program, the consensus is that these changes have resulted in a strengthened program and allows borrowers to be further protected.

New and Improved: It's Not Your Father’s Reverse MortgageOn the immediate horizon of change to the Reverse Mortgage program, is the HUD Financial Assessment. For Baby Boomers contemplating Reverse Mortgages both now and in the future, these new rules will transform and enhance the program even further. Borrowers, prior to application, will have a clear picture of their current financial situation and how it will change as a result of using a Reverse Mortgage for retirement planning or other financial goals. This is change that is definitely for the better.

From a Borrower’s and an Originator’s point of view, the new rule is both a challenge and an opportunity.  The challenge for the borrowers would be presenting more information, questions and paperwork up front, and resulting in longer presentations and further borrower education for the Loan Originators. Ultimately, the opportunity is invaluable and worth the challenge as it produces increased clarity and certainty that a Reverse Mortgage is the right long-term choice for the Borrower.  It’s a sustainable decision that the homeowner can rely on to serve them well, accomplish their goals, and also gives the Loan Originator a feeling of truly serving the needs of their client. 

An additional benefit of the financial assessment is the choice to bring your advisors into the decision making process. Whether it be family, mentors or professionals that you have relied on for guidance over the years, don’t be reluctant to include them in the equation.  A Reverse Mortgage can be a powerful tool in financial planning.  While it may not be for everybody, it can be perfect for some--even financial planners and investment advisors are quickly discovering its tremendous value.

The bottom line is that this financial assessment is not a pass-fail. Unlike in the forward market, it won’t cause a denial but rather, it will simply determine whether or not the borrower will need a "set-aside" payment for future property taxes and homeowners insurance.  Think of it as the “New, Improved Reverse Mortgage”--A safer, more attractive option for all prospective consumers who are considering using their home equity in planning their retirement.

For more information on Reverse Mortgages, refinancing or on a home purchase contact us at www.ARAMCO.biz or call 877-700-0942. 

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Topics: Reverse Mortgage, financial assessment, Reverse Mortgage Program, Aramco Financial, Housing and Urban Development, HUD, Aramco Mortgage, Southern California, mortgage, Loan Options, Homeowners Insurance, property taxes, borrower

Would You Make The Cut?: New Assessment for Reverse Mortgage Borrowers

Posted by Jay Zayer on Thu, May 15, 2014 @ 15:05 PM

Later this year, the FHA will begin a financial assessment on borrowers looking to obtain a Reverse Mortgage. The purpose of the assessment is to evaluate the mortgageor's willingness and ability to meet their financial obligations.The assessment will also be used to calculate whether a portion of the Reverse Mortgage proceeds will need to be held back in order to cover property taxes and insurance in future years. According to HUD, the new financial assessment guidelines will focusWould You Make The Cut?: New Financial Assessment For Reverse Mortgages on:

•performing credit history analysis and cash flow/residual income
analysis;

• evaluating extenuating circumstances and compensating factors;

• evaluating results of the financial assessment to determine eligibility
for the HECM;

• determining if funding sources for property charges from HECM proceeds
will be required;

• completing a financial assessment worksheet; 

• verification requirements and documentation standards for credit, income,
and expenses.

Additionally, underwriters will look at the borrowers current monthly obligations (found on their credit report) and property charges that include property taxes, home owners insurance, and HOA payments. HUD will require a calculation based on the square footage of the home and is similar to the VA calculation of $.14/sq. ft. If a home is 1800 square feet, an assessment of $252/month would be included in the calculation when determining if a borrower qualifies.

Another component of the calculation will be based on the geographic region the borrower resides in. In the Southwest region, $589/month for a single person and $998/month for a couple would be added to the equation when calculating the financial assessment. For example: a couple living in Southern California who have a 2000 square foot home, $350/month in credit card debt, property taxes of $3000/year and paying $1200 for homeowners insurance would need to make $1978/month to qualify according to the new financial assessment. For many couples living in Southern California $1978/month may not seem like a lot of money however, many senior borrowers looking at a reverse mortgage are doing so because they are on a very tight budget and possibly living month to month.

Unfortunately, the few that do not pass this financial assessment may not qualify for a reverse mortgage and may be forced to sell their home. On a positive note, most borrowers will pass this new policy imposed by FHA.

For more information on purchasing a home, reverse mortgages or home financing contact us at www.ARAMCO.biz or call 877-700-0942.

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Topics: Reverse Mortgage, HECM, financial assessment, Aramco Financial, Housing and Urban Development, HUD, credit, Aramco Mortgage, Southern California, borrowers, FHA, Mortgage applications, Homeowners Insurance, property taxes, HOA Payments, mortgagor

Non-Borrowing Spouses and Reverse Mortgages: What you need to know

Posted by Jay Zayer on Wed, Apr 30, 2014 @ 15:04 PM

On April 25th, 2014, HUD released their new reverse mortgage guidelines for non-borrowing spouses.  For HECM loans with FHA case numbers on or after August 4, 2014, non-borrowing spouses will be able to remain in their home and defer payment in cases where the named borrower passes away.

HUD will be updating factor tables that will be based on the youngest borrower or non-borrowing spouse and will be used to calculate the principal limit for borrowers younger than 62 years of age.

Non-Borrowing Spouses and Reverse Mortage: What you need to knowThe reverse mortgage will continue to accrue interest in accordance with the original terms and the borrower will also need to make mortgage insurance payments to the FHA.  The non-borrowing spouse will be able to sell the property regardless of equity however, a non-borrowing spouse certification will also be required prior to closing escrow (this certifies that the borrower is married to the non-borrowing spouse.)

According the Mortgagee Letter 2014-07, in the event the borrower predeceases the non-borrowing spouse, the loan repayment will be deferred for as long as the non-borrowing spouse meets all the necessary requirements. Such requirements include the continuation of the following:

1. Within ninety days from the death of the last surviving HECM mortgagor, establish legal ownership or other ongoing legal right to remain (e.g., executed lease, court order, etc.) in the property securing the HECM;

2. After the death of the last surviving borrower, ensure all other obligations of the HECM mortgagor(s) contained in the loan documents continue to be satisfied; and

3. After the death of the last surviving borrower, ensure that the HECM does not become eligible to be called due and payable for any other reason.

If the non-borrowing spouse is unable to meet these requirements, the deferral period will cease and the reverse mortgage will become due and payable. 

Although these changes will affect the loan amount that borrowers will qualify for, it will also allow non-borrowing spouses to stay in their home without the fear of being evicted down the road.

For more information regarding reverse mortgages or any of the information provided, please contact us at 877-700-0942 or click the link below.

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Topics: Reverse Mortgage, HECM, Aramco Financial, The Aramco Group, San Diego, Mehran Aram, Loans, senior citizen, Certified Reverse Mortgage Professional, Non-Borrowing, Spouses, HUD, Retirement, FHA