Unlicensed Mortgage Loan Officers

Every home buyer and homeowner to whom I've posed the question of whether or not their mortgage Loan Officer (LO) was "licensed" has had no idea. The assumption by all of them, the general populace and even many real estate agents is that mortgage lenders, and specifically LO's, must SURELY be licensed. Right? Wrong!

In Arizona, only one person in any given firm must be licensed. So theoretically a mortgage lending firm could have one licensed individual broker and yet have a hundred LO's working in the firm ~ accessing confidential information on customers such as social security numbers, bank accounts, tax returns and credit reports, to name a few. So what's wrong with this?

In many cases, perhaps nothing. But in many cases, the abuses by LO's of their customers is staggering, costly and often even fraudulent. With licensing comes a measure of accountability. Without licensing, there's no way of having a clue of exactly how many unlicensed LO's are in Arizona, much less knowing anything about them or their backgrounds. So how does it make you feel to think your LO might have a criminal background? What if you discovered that your LO wasn't capable of passing a minimum mortgage finance exam? What if you found out that your LO didn't obtain the best loan rate and terms for your last home purchase but instead 'sold' you a loan that made her/him the most commission? And those types of questions just begin to scratch the surface.

So when I hear that House Bill 2320 has been introduced, a bill that would require mandatory licensing of ALL loan officers and originators, I want to shout hallelujah! We're way over due, and I support this measure 100%. The Arizona Republic recently published an extensive article on the subject, which I encourage you to read in its entirety.

Thanks!

...randy

March 2007 Metro Phoenix Real Estate Update

[Photo is of Wrigley Mansion in Phoenix, Arizona]

Here's the link to Dreamcatcher's February Real Estate Update. This month's newsletter includes topics such as:

• The Homeowner Gain Exclusion Deduction;


• Putting Zeal In Your Curb Appeal;


• Study Profiles Home Of The Future;


• Real Estate Taxes, Refunds and Rip-Offs; and


• Downpayments Shrivel as 100 Percent Financing Becomes The New Norm.

You'll also find a general roundup of last month's real estate activity.

Enjoy!

...randy

Kauai, Hawaii

I have a long time friend and client who now lives on the island of Kauai, Hawaii. He and his wife just bought 3 acres on the north shore of the island, and this is a pic he just took of the land and views. Now is that to die for (or live for), or what?!?!? Brings a whole new meaning to real estate, huh!

I am keenly aware that 'paradise' and 'peace' are within us, in our minds, but being surrounded and inundated by such incredible beauty cannot help but enhance the feeling. I already dream of living in Hawaii, and I'm now just waiting on the manifestation of my dream. What do your dreams look like?

...randy

Exurbs - Trouble in Paradise?

Have you heard the word 'exurb' yet? Loosely defined, exurbs are simply the residential housing areas that are farthest from the urban core, or what I like to call suburbs to the suburbs. Exurbs, short for extra-urban, are not a new phenomenon, as they've actually been around since the 1950's. But they really exploded the past 5-7 years. In the metro Phoenix area, towns like Anthem, New River, Buckeye and Maricopa fall into that category. The appeal has primarily been that a Buyer can usually get a bigger house and/or larger lot for less money. Some folks also like the idea of a more country-like lifestyle that gets them out of the fast-paced city and yet is still close enough to enjoy city amenities. So how is it going with exurbanites these days?

According to a recent release by the National Association of REALTORS®, exurbs have been hit very hard by the slow-down in real estate. Compared to their suburban neighbors, property values and home sales have fallen more. I personally think builders borrowed a line from the movie Field of Dreams, and made it their mantra: "If you build it, they will come." They built, and built, and built - and they are STILL building! The problem is that there are way too many houses on the market in the metro Phoenix area, and an even greater percentage of them in the exurbs.

Investors originally bought many of the exurb houses, but starting in mid-2005, the speculative professional investors started bailing out. In fact, a lot of the 'amateur investors' starting unloading their property, too. And of course, many folks just wanted or needed to sell for various 'life reasons.' The result was, and still is, that inventory levels of houses for sale have shot thru the roof!

Another factor that I've heard from several of my exurb clients in the couple of years is that they got sick and tired of the commute. Driving as much as 3-4 hours every day, often in heavy traffic, finally took its toll on them (as well as their gasoline bills and vehicles) and they found out the hard way that the negatives more than offset the positive aspects of their exurb lifestyle.

So what's an exurbanite to do? The basic economic laws of supply and demand will always prevail, so eventually the supply of exurb houses should decline and/or the demand for exurb houses will increase. The kicker and 64 million dollar question is, "When?" So if exurbanites have the staying power, one option is to simply settle in and ride out the slump. Another option is to bite the bullet, sell the house at a discounted price and bail out now. The silver lining with this option is that now is a GREAT time to buy. One other option is to buy another house closer in, and rent the exurb house. Just be careful with this approach, because there are many exurb areas with huge numbers of available rental properties ~ so be prepared with a backup plan, in case a good tenant cannot be secured.

Either way, let me know if you need more details on your specific neigborhood/subdivision. And hang in there!

...randy

February 2007 Metro Phoenix Real Estate Update

[Photo is of Mystery Castle in Phoenix, Arizona]

Here's the link to Dreamcatcher's "February Real Estate Update". This month's newsletter includes such topics as "Increase the Odds of Selling Your Home by Cleaning Out Clutter," "Resolve To Protect Your Household's Bottom Line," "For Some, It's Time To Appeal Property Tax Bills," "Post Boom Second Home Buying Strategies," "Homebuyers Paying Too Much in Points, Says New Statistical Study." And as usual, you'll find a general roundup of last month's real estate activity.

And in case you missed it, here's the link to January's Newsletter.

Enjoy!

...randy

December 2006 Metro Phoenix Real Estate Update

Here's the link to our "December Real Estate Update".

This month's newsletter includes such topics as "Should I Take My Home Off the Market During the Holidays?"; "Buyers: A Source of Capital You May Not Have Considered"; "It Is A Good Time To Decide"; "Rarely A Good Time To Buy Extended Warranties"; and "Mortgage Rate Decreases Spurring a Mini-Boom in Refinancing".

And as usual, you'll find a general roundup of November real estate activity.

Happy Holidays!!

...randy