As expected, the House Financial Services Committee passed HR3915 out of committee to the full House of Representatives with a favorable vote of 45 to 19.
The vote, which came early Tuesday evening will need approval of the full House and then would need to be passed by the Senate and signed by the president before becoming law.
HR3915, which is strongly opposed by some segments of the lending community, sets minimum standards for loans including a reasonable assumption that the borrower will be able to repay the loan. It also mandates a mechanism for licensing mortgage brokers who are not appropriately regulated by the states or by agencies such as the Comptroller of the Currency. The bill also proposes liabilities for those who securitize potentially risky loans.
While the bill seeks to correct some of the longstanding practices that its sponsors feel have contributed to the current subprime situation, there is nothing in HR 3915 to address either fiscally or legislatively the current fallout from those practices.
The bill, if it does pass both houses of Congress, will undoubtedly see many changes before it is sent to the president for his signature.
If you oppose HR3915 you can use the following template, contributed by one of our readers, as a starting point for a letter to your state representative.
Related posts:
HR 3915 Addresses Many Aspects of Predatory and Other Mortgage Lending
Showing posts with label mortgage. Show all posts
Showing posts with label mortgage. Show all posts
Friday, November 2, 2007
Tuesday, October 30, 2007
HR 3915 Addresses Many Aspects of Predatory and Other Mortgage Lending
Sides are quickly being drawn over a pending bill before the House of Representatives which, if passed, will put in place some stringent new standards for mortgage underwriting and the regulation and compensation of mortgage brokers.
HR 3915 is expected to be voted on by the House Financial Services Committee on Tuesday, November 6. Favoring the bill are consumer groups such as the National Center for Responsible Lending, and in strong opposition are industry supports like the National Association of Mortgage Brokers (NAMB) and the Mortgage Bankers Association.
HR 3915, introduced by Representative Bradley Miller (D-NC) and cosponsored by 21 other members of the House, modifies three major sections of Truth in Lending Act (15 U.S.C. 1602), Title I deals with mortgage origination; Title II outlines minimum standards for mortgages, and Title III addresses high cost mortgages.
Here is a summary of the bill as it was submitted to the House.
Title I requires licensing or registration of mortgage originators. The Department of Housing and Urban Development is charged with creating a registry for originators who are not covered by state regulation or affiliated with depository institutions. The legislation appears to assume that those originators who are so affiliated are now appropriately regulated.
This section establishes a "Duty of Care" for mortgage originators which requires that they "diligently work to present the consumer with a range of residential mortgage loan products" that the consumer can qualify for and which are appropriate to his current circumstances and that the originator make full, complete, and timely disclosure to each such consumer which includes the comparative costs and benefits of each product, and nature of the originator's relationship with the consumer and that the originator discloses if he is or is not working as an agent of that consumer. The originator must also disclose any relevant conflicts of interest.
Originators are prohibited from "steering." The proposed law states that an originator may not receive, directly or indirectly, any incentives (and in the most controversial provision, expressly includes yield spread premiums in that definition) that are based on or vary with the terms of the loan.
Title II, which sets minimum standards for residential mortgages states that no creditor may make a residential mortgage loan unless he first makes a reasonable and good faith determination based on verified and documented information that, at the time the loan is consummated the consumer has a reasonable ability to repay the loan under its terms and to pay all applicable taxes, insurance, and assessments. This provision also extends to cases where a consumer has multiple loans against the same property; the originator is charged with taking into account the total payments on these obligations. These determinations about ability to repay must be based on a consideration of the consumers' current and expected income, credit history, other obligations, employment status, debt-to-income ratio and other financial resources other than any equity in the secured property. (The emphasis is ours.)
Under this ability to repay provision, adjustable rate mortgages which defer repayment of principal and/or interest (with the exception of reverse mortgages) must be evaluated on the basis of the payment needed to amortize the loan by its final maturity.
Title II also requires the originator of a subprime loan to determine that any refinancing will "provide a net tangible benefit to the consumer." Conventional loans are presumed to meet this requirement so long as the interest rate does not exceed the rate on comparable Treasury bills by 3 points (5 for junior liens) while subprime loans are acceptable if they are income verified, underwritten based on the fully-indexed rate plus taxes and insurance, are not negatively amortizing, and the creditors debt-to-income-ratio after the loan is funded will not exceed 50 percent. Loans must have either a fixed rate for the first 7 years or have a margin less than 3 percent over its index. Such a subprime mortgage is generally known as a Qualified Safe Harbor Mortgage.
Title II also prohibits subprime prepayment penalties and limits prepayment penalties on conventional loans to 3 years (or 3 months before reset on an adjustable rate loan). It bans mandatory arbitration on any residential mortgage and prohibits class actions against and provides other protections from liability for assignees of loans.
Title III creates special protections for high-cost mortgages which are defined as having points and fees in excess of 5 percent of the loan amount; OR an APR exceeding comparable treasuries plus 8 points (10 for junior liens); or a prepayment penalty above 2% of amount prepaid or extending longer than 30 months into the term of the loan.
The section also defines points and fees and sets rules for yield-spread premiums, prepayment penalties, single premium credit insurance, and other fees already contained in the existing Home Ownership and Equity Protection Act (HOEPA.) The definitions exclude bona fide discount points for conventional rate mortgages.
Title III also prohibits the following on high-cost loans: balloon payments; recommending or encouraging default; excessive late fees; call provisions; financing any points and fees or prepayment penalties; abusive modification or deferral fees and requires pre-loan counseling for high-cost mortgages.
The entire text of the legislation can be read here.
Opinions pro and con the legislation can be found at websites maintained by The Center for Responsible Lending (CRL), Mortgage Bankers Association (MBA) and National Association of Mortgage Brokers (NAMB).
Please share your opinions of HR 3915.
If you oppose HR3915 you can use the following template, contributed by one of our readers, as a starting point for a letter to your state representative.
Related posts:
NY Attorney General Files Appraiser Fraud Suit Against First American
HR 3915 is expected to be voted on by the House Financial Services Committee on Tuesday, November 6. Favoring the bill are consumer groups such as the National Center for Responsible Lending, and in strong opposition are industry supports like the National Association of Mortgage Brokers (NAMB) and the Mortgage Bankers Association.
HR 3915, introduced by Representative Bradley Miller (D-NC) and cosponsored by 21 other members of the House, modifies three major sections of Truth in Lending Act (15 U.S.C. 1602), Title I deals with mortgage origination; Title II outlines minimum standards for mortgages, and Title III addresses high cost mortgages.
Here is a summary of the bill as it was submitted to the House.
Title I requires licensing or registration of mortgage originators. The Department of Housing and Urban Development is charged with creating a registry for originators who are not covered by state regulation or affiliated with depository institutions. The legislation appears to assume that those originators who are so affiliated are now appropriately regulated.
This section establishes a "Duty of Care" for mortgage originators which requires that they "diligently work to present the consumer with a range of residential mortgage loan products" that the consumer can qualify for and which are appropriate to his current circumstances and that the originator make full, complete, and timely disclosure to each such consumer which includes the comparative costs and benefits of each product, and nature of the originator's relationship with the consumer and that the originator discloses if he is or is not working as an agent of that consumer. The originator must also disclose any relevant conflicts of interest.
Originators are prohibited from "steering." The proposed law states that an originator may not receive, directly or indirectly, any incentives (and in the most controversial provision, expressly includes yield spread premiums in that definition) that are based on or vary with the terms of the loan.
Title II, which sets minimum standards for residential mortgages states that no creditor may make a residential mortgage loan unless he first makes a reasonable and good faith determination based on verified and documented information that, at the time the loan is consummated the consumer has a reasonable ability to repay the loan under its terms and to pay all applicable taxes, insurance, and assessments. This provision also extends to cases where a consumer has multiple loans against the same property; the originator is charged with taking into account the total payments on these obligations. These determinations about ability to repay must be based on a consideration of the consumers' current and expected income, credit history, other obligations, employment status, debt-to-income ratio and other financial resources other than any equity in the secured property. (The emphasis is ours.)
Under this ability to repay provision, adjustable rate mortgages which defer repayment of principal and/or interest (with the exception of reverse mortgages) must be evaluated on the basis of the payment needed to amortize the loan by its final maturity.
Title II also requires the originator of a subprime loan to determine that any refinancing will "provide a net tangible benefit to the consumer." Conventional loans are presumed to meet this requirement so long as the interest rate does not exceed the rate on comparable Treasury bills by 3 points (5 for junior liens) while subprime loans are acceptable if they are income verified, underwritten based on the fully-indexed rate plus taxes and insurance, are not negatively amortizing, and the creditors debt-to-income-ratio after the loan is funded will not exceed 50 percent. Loans must have either a fixed rate for the first 7 years or have a margin less than 3 percent over its index. Such a subprime mortgage is generally known as a Qualified Safe Harbor Mortgage.
Title II also prohibits subprime prepayment penalties and limits prepayment penalties on conventional loans to 3 years (or 3 months before reset on an adjustable rate loan). It bans mandatory arbitration on any residential mortgage and prohibits class actions against and provides other protections from liability for assignees of loans.
Title III creates special protections for high-cost mortgages which are defined as having points and fees in excess of 5 percent of the loan amount; OR an APR exceeding comparable treasuries plus 8 points (10 for junior liens); or a prepayment penalty above 2% of amount prepaid or extending longer than 30 months into the term of the loan.
The section also defines points and fees and sets rules for yield-spread premiums, prepayment penalties, single premium credit insurance, and other fees already contained in the existing Home Ownership and Equity Protection Act (HOEPA.) The definitions exclude bona fide discount points for conventional rate mortgages.
Title III also prohibits the following on high-cost loans: balloon payments; recommending or encouraging default; excessive late fees; call provisions; financing any points and fees or prepayment penalties; abusive modification or deferral fees and requires pre-loan counseling for high-cost mortgages.
The entire text of the legislation can be read here.
Opinions pro and con the legislation can be found at websites maintained by The Center for Responsible Lending (CRL), Mortgage Bankers Association (MBA) and National Association of Mortgage Brokers (NAMB).
Please share your opinions of HR 3915.
If you oppose HR3915 you can use the following template, contributed by one of our readers, as a starting point for a letter to your state representative.
Related posts:
NY Attorney General Files Appraiser Fraud Suit Against First American
Wednesday, October 24, 2007
NY Attorney General Files Appraiser Fraud Suit Against First American
We explored foreclosure fraud pretty thoroughly several years ago (search the website for "appraisal fraud") and learned that no one was more upset over the pressure on appraisers to bring in inflated property values than honest appraisers themselves who were blogging on the subject and gathering signatures on petitions for regulatory action. But what had been a hot topic, threatening to involve lenders, loan officers, and real estate agents in addition to appraisers died down, probably because property prices were rising so rapidly that the appraisers couldn't legitimately inflate prices fast enough to keep up with reality.
Until now.
With foreclosures mounting, homeowners finding they cannot refinance because of negative equity, and investors and regulators asking questions about the numbers of loans granted at 100 to 125 percent loan to value, the appraisers and those who employ them are once again under scrutiny.
On November 1, New York State Attorney General Andrew M. Cuomo announced that he is bringing suit against one of the largest real estate appraisal management companies in the country and its parent corporation for mortgage fraud.
The company, eAppraiseIt (EA) a subsidiary of First American Corporation is accused in the suit of caving into pressure from Washington Mutual (WaMu) to use a list of "Proven Appraisers" who were willing to provide inflated appraisals of residential real estate. Cuomo said that the scheme was outlined in numerous emails that showed EA executives knew that their behavior was illegal but were willing to break the law to lock up WaMu's business.
"The independence of the appraiser is essential to maintaining the integrity of the mortgage industry. First American and eAppraiseIT violated that independence when Washington Mutual strong-armed them into a system designed to rip off homeowners and investors alike," said Attorney General Cuomo. "The blatant actions of First American and eAppraiseIT have contributed to the growing foreclosure crisis and turmoil in the housing market. By allowing Washington Mutual to hand-pick appraisers who inflated values, First American helped set the current mortgage crisis in motion."
According to a press release issued by the Attorney General's office, EA began processing appraisals for WaMu in April of last year and the mortgage lender quickly became EA's biggest customer. (EA is also provides title insurance services). However, WaMu soon complained that the appraisals were not coming in at high enough values and pressured EA to switch to employing only appraisers from a new panel of "Proven Appraisers" that WaMu had hand picked specifically because they inflated property values. These higher prices allowed WaMu to close more loans at higher values. Between April 2006 and October 2007, EA provided approximately 262,000 appraisals for WaMu and received over $50 million in fees.
In one example from the 31 page complaint, which was quoted by Amir Efrati in the Wall Street Journal on-line, New York State alleges that EA increased its estimate of a property to $2.3 million from $1.6 million after the company was allegedly told by the Washington Mutual the higher number would help the loan go through.
The press release provided the following details from what were described as "numerous" in-house emails regarding the "Proven Appraisers" program.
* On February 22, 2007, EA's president told senior executives at First American in regards to the program that "we have agreed to roll over and just do it..."
* On April 4, 2007, eAppraiseIT's executive vice president stated in an e-mail to First American: "we as an AMC [Appraisal Management Company] need to retain our independence from the lender or it will look like collusion... eAppraiseIT is clearly being directed who to select. The reasoning... is bogus for many reasons including the most obvious - the proven appraisers bring in the values."
* On April 17, 2007, eAppraiseIT's president wrote an e-mail to First American explaining why its conduct was illegal: "We view this as a violation of the OCC, OTS, FDIC and USPAP influencing regulation." E-mail evidence also shows that WaMu pressured EA to inflate appraisals as a condition for doing future business together:
* On September 27, 2006, First American's vice chairman reported that a WaMu executive told him: "if the appraisal issues are resolved and things are working well he would welcome conversations about expanding our relationship..."
The lawsuit seeks to end the illegal relationship between First American and EA and WaMu. It also seeks penalties and disgorgement from First American and EA. The lawsuit alleges that First American and EA violated appraiser independence laws, which regulate the conduct of real estate appraisers.
According to Efrati, Seattle-based WaMu is not named as a defendant in the suit, although the suit indirectly targets the lender because as a subsidiary of a federally chartered bank, is federally regulated. According to the complaint, however, the bank, which generated $116 billion in residential mortgage loans in the first three quarters of this year, ran afoul of federal guidelines set in 1994 by Treasury Department agencies to protect appraiser independence.
Cuomo's lawsuit was filed in the Supreme Court of New York, New York County, Manhattan.
Related posts:
Current State of the Mortgage Market
Until now.
With foreclosures mounting, homeowners finding they cannot refinance because of negative equity, and investors and regulators asking questions about the numbers of loans granted at 100 to 125 percent loan to value, the appraisers and those who employ them are once again under scrutiny.
On November 1, New York State Attorney General Andrew M. Cuomo announced that he is bringing suit against one of the largest real estate appraisal management companies in the country and its parent corporation for mortgage fraud.
The company, eAppraiseIt (EA) a subsidiary of First American Corporation is accused in the suit of caving into pressure from Washington Mutual (WaMu) to use a list of "Proven Appraisers" who were willing to provide inflated appraisals of residential real estate. Cuomo said that the scheme was outlined in numerous emails that showed EA executives knew that their behavior was illegal but were willing to break the law to lock up WaMu's business.
"The independence of the appraiser is essential to maintaining the integrity of the mortgage industry. First American and eAppraiseIT violated that independence when Washington Mutual strong-armed them into a system designed to rip off homeowners and investors alike," said Attorney General Cuomo. "The blatant actions of First American and eAppraiseIT have contributed to the growing foreclosure crisis and turmoil in the housing market. By allowing Washington Mutual to hand-pick appraisers who inflated values, First American helped set the current mortgage crisis in motion."
According to a press release issued by the Attorney General's office, EA began processing appraisals for WaMu in April of last year and the mortgage lender quickly became EA's biggest customer. (EA is also provides title insurance services). However, WaMu soon complained that the appraisals were not coming in at high enough values and pressured EA to switch to employing only appraisers from a new panel of "Proven Appraisers" that WaMu had hand picked specifically because they inflated property values. These higher prices allowed WaMu to close more loans at higher values. Between April 2006 and October 2007, EA provided approximately 262,000 appraisals for WaMu and received over $50 million in fees.
In one example from the 31 page complaint, which was quoted by Amir Efrati in the Wall Street Journal on-line, New York State alleges that EA increased its estimate of a property to $2.3 million from $1.6 million after the company was allegedly told by the Washington Mutual the higher number would help the loan go through.
The press release provided the following details from what were described as "numerous" in-house emails regarding the "Proven Appraisers" program.
* On February 22, 2007, EA's president told senior executives at First American in regards to the program that "we have agreed to roll over and just do it..."
* On April 4, 2007, eAppraiseIT's executive vice president stated in an e-mail to First American: "we as an AMC [Appraisal Management Company] need to retain our independence from the lender or it will look like collusion... eAppraiseIT is clearly being directed who to select. The reasoning... is bogus for many reasons including the most obvious - the proven appraisers bring in the values."
* On April 17, 2007, eAppraiseIT's president wrote an e-mail to First American explaining why its conduct was illegal: "We view this as a violation of the OCC, OTS, FDIC and USPAP influencing regulation." E-mail evidence also shows that WaMu pressured EA to inflate appraisals as a condition for doing future business together:
* On September 27, 2006, First American's vice chairman reported that a WaMu executive told him: "if the appraisal issues are resolved and things are working well he would welcome conversations about expanding our relationship..."
The lawsuit seeks to end the illegal relationship between First American and EA and WaMu. It also seeks penalties and disgorgement from First American and EA. The lawsuit alleges that First American and EA violated appraiser independence laws, which regulate the conduct of real estate appraisers.
According to Efrati, Seattle-based WaMu is not named as a defendant in the suit, although the suit indirectly targets the lender because as a subsidiary of a federally chartered bank, is federally regulated. According to the complaint, however, the bank, which generated $116 billion in residential mortgage loans in the first three quarters of this year, ran afoul of federal guidelines set in 1994 by Treasury Department agencies to protect appraiser independence.
Cuomo's lawsuit was filed in the Supreme Court of New York, New York County, Manhattan.
Related posts:
Current State of the Mortgage Market
Wednesday, October 10, 2007
Mortgage taxation. Law and judicial decisions, Arizona and Arkansas
Revised Statutes, 1901. In Arizona (sec. 3847)
property under mortgage or lease is listed by and
taxed to the mortgagor or lessor, unless it is listed
by the mortgagee or lessee. With certain enumerated
exceptions (sec. 3834) all property is subject to taxa-
tion, but double taxation is not permitted. Liabilities
may be deducted from solvent debts (sec. 3835).
Arkansas
Constitution, 1874, art. 16, sec. 5. All property sub-
ject to taxation shall be taxed according to its value,
that value to be ascertained in such manner as the gen-
eral assembly shall direct, making the same equal and
uniform throughout the state.
Present Law. Dig. of St., 1904. In Arkansas
mortgages are taxed as personal property. The law
requires (sec. 6873) that all property, including mon-
eys and credits, shall be taxed, and credits are defined
(sec. 6872) as the excess of the sum of all legal claims
and demands over and above the sum of legal bona
fide debts which the person owes. Every person (sec.
6899) is required to list all moneys loaned by him, but
is not required (sec. 6902) to list a greater portion of
any credits than he believes can be collected.
Court Decisions. A note given for land, and the
land itself, are both subject to taxation; the note as
property of the holder, and the land as property of the
purchaser. Ouachita County v. Rumph, 43 Ark. 525,
1884.
Related posts:
Mortgage taxation. Law and judicial decisions, Alabama
property under mortgage or lease is listed by and
taxed to the mortgagor or lessor, unless it is listed
by the mortgagee or lessee. With certain enumerated
exceptions (sec. 3834) all property is subject to taxa-
tion, but double taxation is not permitted. Liabilities
may be deducted from solvent debts (sec. 3835).
Arkansas
Constitution, 1874, art. 16, sec. 5. All property sub-
ject to taxation shall be taxed according to its value,
that value to be ascertained in such manner as the gen-
eral assembly shall direct, making the same equal and
uniform throughout the state.
Present Law. Dig. of St., 1904. In Arkansas
mortgages are taxed as personal property. The law
requires (sec. 6873) that all property, including mon-
eys and credits, shall be taxed, and credits are defined
(sec. 6872) as the excess of the sum of all legal claims
and demands over and above the sum of legal bona
fide debts which the person owes. Every person (sec.
6899) is required to list all moneys loaned by him, but
is not required (sec. 6902) to list a greater portion of
any credits than he believes can be collected.
Court Decisions. A note given for land, and the
land itself, are both subject to taxation; the note as
property of the holder, and the land as property of the
purchaser. Ouachita County v. Rumph, 43 Ark. 525,
1884.
Related posts:
Mortgage taxation. Law and judicial decisions, Alabama
Sunday, October 7, 2007
Mortgage taxation. Law and judicial decisions, Alabama
History. In Alabama prior to 1903 mortgages were
subject to taxation as personal property (Code, 1896,
vol. 1, sec. 3911, sub sec. 7). In 1903 (Acts, 1903,
p. 227) a privilege tax of fifteen cents on every one
hundred dollars was imposed at the time of record-
ing. The present law was passed in 1907, and is but
a slight modification of the law of 1903.
Constitution, 1901, art. 11, sec 1. All taxes levied
on property in this state shall be assessed in exact pro-
portion to the value of such property.
Present Lau>, Acts, 1907, p. 455, sec. 1. No mort-
gage, deed of trust, contract of conditional sale, or
other instrument in the nature of a mortgage executed
so as to convey real property or any interest in real
or personal property situated within the state is to be
received for record unless a privilege tax has been
paid. This tax amounts to fifteen cents, if the in-
debtedness secured is one hundred dollars or less ; and
an additional fifteen cents is added for every addi-
tional one hundred dollars or fraction thereof. The
law states definitely that the tax is to be paid by the
lender. When the mortgage is presented to the judge of
probate of the county in which any of the property
conveyed is situated and the tax is paid, the probate
judge makes a certification to that effect on the instru-
ment, and then the mortgage may be recorded in any
county where property given as security is situated
without any additional tax, except the fee for record-
ing. An extension or renewal contract is subject to
the same tax as the original mortgage. If the tax
prescribed by this act has been paid, neither the mort-
gage nor the debt secured is to be subject to an ad
valorem tax, either for state, county, or municipal
purposes. The probate judge receives 5 per cent of
the amount collected by him as compensation for his
services. Of the remainder, one-third is paid to the
county treasurer of the county in which the taxes are
collected, and two-thirds to the state treasurer. If
the land which is given to secure the debt is situated
in more than one county of the state, then, this one-
third is divided among the county treasurers in pro-
portion to the value of the property given as security
in each county. In cases where only part of the prop-
erty is within the state, the proportional part within
and without is determined by the state board of com-
promise, and the taxes paid accordingly.
It is made a misdemeanor, punishable by a fine, for
the probate judge to file for record any mortgage upon
which the taxes have not been paid.
Related posts:
Mortgage commercial real estate loans
subject to taxation as personal property (Code, 1896,
vol. 1, sec. 3911, sub sec. 7). In 1903 (Acts, 1903,
p. 227) a privilege tax of fifteen cents on every one
hundred dollars was imposed at the time of record-
ing. The present law was passed in 1907, and is but
a slight modification of the law of 1903.
Constitution, 1901, art. 11, sec 1. All taxes levied
on property in this state shall be assessed in exact pro-
portion to the value of such property.
Present Lau>, Acts, 1907, p. 455, sec. 1. No mort-
gage, deed of trust, contract of conditional sale, or
other instrument in the nature of a mortgage executed
so as to convey real property or any interest in real
or personal property situated within the state is to be
received for record unless a privilege tax has been
paid. This tax amounts to fifteen cents, if the in-
debtedness secured is one hundred dollars or less ; and
an additional fifteen cents is added for every addi-
tional one hundred dollars or fraction thereof. The
law states definitely that the tax is to be paid by the
lender. When the mortgage is presented to the judge of
probate of the county in which any of the property
conveyed is situated and the tax is paid, the probate
judge makes a certification to that effect on the instru-
ment, and then the mortgage may be recorded in any
county where property given as security is situated
without any additional tax, except the fee for record-
ing. An extension or renewal contract is subject to
the same tax as the original mortgage. If the tax
prescribed by this act has been paid, neither the mort-
gage nor the debt secured is to be subject to an ad
valorem tax, either for state, county, or municipal
purposes. The probate judge receives 5 per cent of
the amount collected by him as compensation for his
services. Of the remainder, one-third is paid to the
county treasurer of the county in which the taxes are
collected, and two-thirds to the state treasurer. If
the land which is given to secure the debt is situated
in more than one county of the state, then, this one-
third is divided among the county treasurers in pro-
portion to the value of the property given as security
in each county. In cases where only part of the prop-
erty is within the state, the proportional part within
and without is determined by the state board of com-
promise, and the taxes paid accordingly.
It is made a misdemeanor, punishable by a fine, for
the probate judge to file for record any mortgage upon
which the taxes have not been paid.
Related posts:
Mortgage commercial real estate loans
Thursday, October 4, 2007
Mortgage commercial real estate loans
Mortgage loans for commercial real estate
* You do not have to save money for years to buy commercial real estate or draw money out of your company's turnover-you can buy today, using the money the bank
* We will help you buy commercial real estate, as in the secondary, and in the primary property market
* The cost of your property in the future will only grow
* Your company will make a profit using acquired real estate
general requirements for a borrower
- The status of the borrower may be capable individuals possessing documents substantiating person, valid on the territory of the Russian Federation in order to be able to perform and real estate transactions.
Age-age borrower and individuals whose incomes are taken into account when calculating the solvency of not less than 20 years.
Maximum-on the date of repayment should not exceed the age of retirement set by law (60 years for men and 55 years for women). If the insurance company decision on the date vozyrata age can be increased.
The work - a permanent place of work or work under labor agreements (seniority at the last place of work not less than 1 month).
Credit history is the lack of negative information about the borrower (loan recipients), which previously enjoyed loans.
Nationality, registration, have no meaning if the borrower permanently resides and works in the territory of Moscow (Moscow Region), and has a temporary registration. If the borrower fails to live, but not in Moscow (MO), the credit is only possible if there is documented income.
To get a commercial mortgage loan should contact our specialist with the agency and to come to the office
Specialists advise all of our agencies wishing for a mortgage on commercial real estate.
Related posts:
Mortgages
* You do not have to save money for years to buy commercial real estate or draw money out of your company's turnover-you can buy today, using the money the bank
* We will help you buy commercial real estate, as in the secondary, and in the primary property market
* The cost of your property in the future will only grow
* Your company will make a profit using acquired real estate
general requirements for a borrower
- The status of the borrower may be capable individuals possessing documents substantiating person, valid on the territory of the Russian Federation in order to be able to perform and real estate transactions.
Age-age borrower and individuals whose incomes are taken into account when calculating the solvency of not less than 20 years.
Maximum-on the date of repayment should not exceed the age of retirement set by law (60 years for men and 55 years for women). If the insurance company decision on the date vozyrata age can be increased.
The work - a permanent place of work or work under labor agreements (seniority at the last place of work not less than 1 month).
Credit history is the lack of negative information about the borrower (loan recipients), which previously enjoyed loans.
Nationality, registration, have no meaning if the borrower permanently resides and works in the territory of Moscow (Moscow Region), and has a temporary registration. If the borrower fails to live, but not in Moscow (MO), the credit is only possible if there is documented income.
To get a commercial mortgage loan should contact our specialist with the agency and to come to the office
Specialists advise all of our agencies wishing for a mortgage on commercial real estate.
Related posts:
Mortgages
Monday, October 1, 2007
Mortgages
Mortgages
You do not have to save money for years to buy an apartment, you can buy today
We will help you buy an apartment, as in the secondary, and in the primary property market
The cost of your property in the future will only grow.
Mortgage-loan mortgage (apartments, houses, etc.). As a rule issued by the bank loan, but the lender of an obligation may be secured mortgage and any other person entitled to carry out such activities. The borrower mortgage lien loan guarantees payment of real property (apartment, house, etc.), it belongs to the property rights including those acquired in mortgage lending program.
In Russia the term mortgages and mortgage loan means in the bank for the purchase of residential real estate (apartment or house). In English, there is a special word, the meaning of the transferor type of credit mortgage. This category does not get loans from other target designation granted bail of real estate: for example, to buy cars, household appliances, furniture or other needs.
how to get mortgage
The main stages of a mortgage specified in our pages. We encourage our experts to contact for more information on mortgage lending.
Our client receives:
the best choice proposals on mortgage lending
assistance in applying for a mortgage
the time for the consideration of credit applications and award mortgage from the 1 st day.
Related posts:
commercial real estate
You do not have to save money for years to buy an apartment, you can buy today
We will help you buy an apartment, as in the secondary, and in the primary property market
The cost of your property in the future will only grow.
Mortgage-loan mortgage (apartments, houses, etc.). As a rule issued by the bank loan, but the lender of an obligation may be secured mortgage and any other person entitled to carry out such activities. The borrower mortgage lien loan guarantees payment of real property (apartment, house, etc.), it belongs to the property rights including those acquired in mortgage lending program.
In Russia the term mortgages and mortgage loan means in the bank for the purchase of residential real estate (apartment or house). In English, there is a special word, the meaning of the transferor type of credit mortgage. This category does not get loans from other target designation granted bail of real estate: for example, to buy cars, household appliances, furniture or other needs.
how to get mortgage
The main stages of a mortgage specified in our pages. We encourage our experts to contact for more information on mortgage lending.
Our client receives:
the best choice proposals on mortgage lending
assistance in applying for a mortgage
the time for the consideration of credit applications and award mortgage from the 1 st day.
Related posts:
commercial real estate
Thursday, September 27, 2007
The history of mortgage
The term "mortgage" first appeared in Greece in the early VI. before tea (it has imposed Archon Solon), and was associated with the responsibility of the debtor to the creditor certain land holdings (in Athens originally served as collateral security identity debtor, in the event of non-compliance with obligations feared slavery).
For this commitment proceeding, and on the border of land owned by the borrower territory raised poles with a sign that the said property is a secured creditor's claim in the amount naimenovannoy. At such a column, called "mortgage" (from the Greek. Hypotheka-stand, kickstand), there were all debts land owner.
Later for that purpose to the use of special books, known as mortgage. Already in ancient Greece ensured transparency, which allowed each individual concerned readily ascertain the status of this land.
The new development has received the Institute of mortgages in the Roman Empire. As I in. He. e. created mortgage institutions that issue credit on bail property to private individuals.
During the period of Emperor Anthony Piya (II in. Yet. Et.) Was developed by special legislation to mortgage banks that existed along with other specialized banks and other lending institutions - proobrazami bank and savings associations.
The state often has greater support mortgage lending. Thus, when Emperor Trayane were established special funds to support widows and orphans, granting mortgage loans under 5% per annum (similar financial systems were formed in Russia at the XIX. Be true support, mainly representatives adresovalas noble Estate).
Mortgage Institute, in a relatively small time has been the evolution of the way fidutsii (from Lat. Fiducia transaction on trust, trustee for the transaction) to a more advanced stage-pignusa (from Lat. Pignus-informal pledge), and continue until mortgage.
When fidutsii object moved into property lien creditor, the latter had the right to return or to the debtor's estate after the performance of the contract, or to sell it, abandoning the monetary demands.
Pignusa Treaty provided for transferring real estate is no longer in the property and take possession of it as a guarantee for the loan obligations. The lender had no right to keep the subject in their own bail and could sell the property only in the event of failure made debtor obligations, returning the difference between the sales price and the balance of the borrower's debt.
The emergence of a classic mortgage institution was associated with the change of the policy environment of the time: the weakening of the slave economy and the massive transfer of land tenants. Initially, the new form of collateral falls tools, which lands tenants for objective reasons not to allocate land owners (landholders). Later transferred to the beginning of mortgages and real estate.
With mortgage assets remained in the possession of the debtor and the creditor receives the right to seek zakladyvaemuyu thing to follow with the sale of its bidding and compensation vyruchennoy balance of the borrower's debt. Some of the form of collateral Institute exists to date.
Along with the mortgage, caused by the agreement of the parties, imposed various legal mortgage, acting under Act (mortgage investor to invest a mortgage on the property tax non-payers, mortgages on the property custodian, mortgages wife to the husband's estate, etc.). There mortgages, subordinated to the outbreak of (the contract) or to the degree of importance (by law). Developed subsequent pledge of the same real estate more persons.
The role of the State in respect for the rights of participants in mortgage transactions has been high. Suffice it to the complex structure of the transaction required control and regulation, smooth registration system. In response to the weakening of the state functions from the twilight era of ancient world, the institution has ceased to exist mortgages in the next few centuries, before re-appear in the medieval European law.
In Germany, it appears no earlier XIV century, in France since the end of XVI century acted quiet mortgages. Mortgage extended to real estate (usually real), regardless of the change in ownership, and even then was reliable proprietary right, but only after making a special recording of a mortgage in a special book.
Related posts:
What is a mortgage
For this commitment proceeding, and on the border of land owned by the borrower territory raised poles with a sign that the said property is a secured creditor's claim in the amount naimenovannoy. At such a column, called "mortgage" (from the Greek. Hypotheka-stand, kickstand), there were all debts land owner.
Later for that purpose to the use of special books, known as mortgage. Already in ancient Greece ensured transparency, which allowed each individual concerned readily ascertain the status of this land.
The new development has received the Institute of mortgages in the Roman Empire. As I in. He. e. created mortgage institutions that issue credit on bail property to private individuals.
During the period of Emperor Anthony Piya (II in. Yet. Et.) Was developed by special legislation to mortgage banks that existed along with other specialized banks and other lending institutions - proobrazami bank and savings associations.
The state often has greater support mortgage lending. Thus, when Emperor Trayane were established special funds to support widows and orphans, granting mortgage loans under 5% per annum (similar financial systems were formed in Russia at the XIX. Be true support, mainly representatives adresovalas noble Estate).
Mortgage Institute, in a relatively small time has been the evolution of the way fidutsii (from Lat. Fiducia transaction on trust, trustee for the transaction) to a more advanced stage-pignusa (from Lat. Pignus-informal pledge), and continue until mortgage.
When fidutsii object moved into property lien creditor, the latter had the right to return or to the debtor's estate after the performance of the contract, or to sell it, abandoning the monetary demands.
Pignusa Treaty provided for transferring real estate is no longer in the property and take possession of it as a guarantee for the loan obligations. The lender had no right to keep the subject in their own bail and could sell the property only in the event of failure made debtor obligations, returning the difference between the sales price and the balance of the borrower's debt.
The emergence of a classic mortgage institution was associated with the change of the policy environment of the time: the weakening of the slave economy and the massive transfer of land tenants. Initially, the new form of collateral falls tools, which lands tenants for objective reasons not to allocate land owners (landholders). Later transferred to the beginning of mortgages and real estate.
With mortgage assets remained in the possession of the debtor and the creditor receives the right to seek zakladyvaemuyu thing to follow with the sale of its bidding and compensation vyruchennoy balance of the borrower's debt. Some of the form of collateral Institute exists to date.
Along with the mortgage, caused by the agreement of the parties, imposed various legal mortgage, acting under Act (mortgage investor to invest a mortgage on the property tax non-payers, mortgages on the property custodian, mortgages wife to the husband's estate, etc.). There mortgages, subordinated to the outbreak of (the contract) or to the degree of importance (by law). Developed subsequent pledge of the same real estate more persons.
The role of the State in respect for the rights of participants in mortgage transactions has been high. Suffice it to the complex structure of the transaction required control and regulation, smooth registration system. In response to the weakening of the state functions from the twilight era of ancient world, the institution has ceased to exist mortgages in the next few centuries, before re-appear in the medieval European law.
In Germany, it appears no earlier XIV century, in France since the end of XVI century acted quiet mortgages. Mortgage extended to real estate (usually real), regardless of the change in ownership, and even then was reliable proprietary right, but only after making a special recording of a mortgage in a special book.
Related posts:
What is a mortgage
Tuesday, September 25, 2007
What is a mortgage
What is a mortgage? This is a long-term loan against mortgage for the purchase of housing.
Most people believed most profitable mortgage way to solve housing problems.
Participants mortgage system are: banks (Review the borrower's ability to pay), insurance companies (undertake to insure risks in the mortgage lending), the company estimates (estimate the market value of apartments).
Advantages of mortgage lending:
* opportunity fairly quickly become the owner of housing and moving to a new apartment;
* loan for a long period, the amount for which the monthly payment does not change in case of increase in the cost of apartments;
* the opportunity to pay for their own apartment, rather than rent someone else's real estate, while interest on the loan are comparable to monthly rent for a similar apartment;
* opportunity to sign up (to register) in the apartment, on the acquired mortgage, the borrower and the members of his family;
* favorable investment (real estate prices rising steadily at 15-30% per year);
* receive tax benefits for the duration of the mortgage, with the amount in 1000000 rubles tax deduction, as well as the amount of interest payable for a term of the loan payment.
The main terms of the mortgage loan:
* credit issued for a period of 6 months to 27 years;
* loan amount up to 95% of the cost of purchased housing;
* interest rate on mortgages in rubles, from 15% per annum, the currency of 10% (defined individually);
* apartment is the subject of collateral which becomes the property of the borrower;
* payment from the borrower's own funds in the amount of 5% to 40% of the cost of purchased apartments (initial cash contribution);
* repayment of the loan is carried out in equal monthly installments over the life of the loan agreement, which includes interest on the loan and part of the debt and do not exceed 30-50% average borrower's monthly income;
* in determining the amount of the loan as a borrower's income may be included on the basic wage job, income from part-time work, income in the form of interest on deposits, income from the rental of real estate, and others over the past 2 years;
* Providing the borrower documents to assess its creditworthiness (information on income, family composition, educational qualifications, women who have worked, a copy of a passport, etc.)
Related posts:
Mortgages expiring
Most people believed most profitable mortgage way to solve housing problems.
Participants mortgage system are: banks (Review the borrower's ability to pay), insurance companies (undertake to insure risks in the mortgage lending), the company estimates (estimate the market value of apartments).
Advantages of mortgage lending:
* opportunity fairly quickly become the owner of housing and moving to a new apartment;
* loan for a long period, the amount for which the monthly payment does not change in case of increase in the cost of apartments;
* the opportunity to pay for their own apartment, rather than rent someone else's real estate, while interest on the loan are comparable to monthly rent for a similar apartment;
* opportunity to sign up (to register) in the apartment, on the acquired mortgage, the borrower and the members of his family;
* favorable investment (real estate prices rising steadily at 15-30% per year);
* receive tax benefits for the duration of the mortgage, with the amount in 1000000 rubles tax deduction, as well as the amount of interest payable for a term of the loan payment.
The main terms of the mortgage loan:
* credit issued for a period of 6 months to 27 years;
* loan amount up to 95% of the cost of purchased housing;
* interest rate on mortgages in rubles, from 15% per annum, the currency of 10% (defined individually);
* apartment is the subject of collateral which becomes the property of the borrower;
* payment from the borrower's own funds in the amount of 5% to 40% of the cost of purchased apartments (initial cash contribution);
* repayment of the loan is carried out in equal monthly installments over the life of the loan agreement, which includes interest on the loan and part of the debt and do not exceed 30-50% average borrower's monthly income;
* in determining the amount of the loan as a borrower's income may be included on the basic wage job, income from part-time work, income in the form of interest on deposits, income from the rental of real estate, and others over the past 2 years;
* Providing the borrower documents to assess its creditworthiness (information on income, family composition, educational qualifications, women who have worked, a copy of a passport, etc.)
Related posts:
Mortgages expiring
Saturday, September 22, 2007
Mortgages expiring
What happens if during the 12 months you more than three times, even slightly expired mortgage payment?
You know that this may be grounds for recovery inherent property?
* you propose to be a guarantor for the loan?
The person for whom you should poruchitsya says that this is an empty formality, and that the answer he would have no debts. Was that true?
And you know what Clients are jointly and severally liable with the borrower on the loan?
Why do people turn to the bank for the loan?
Because it wants to have his apartment (house, land, a lot of money on bail) (Desired-stress). This is all exactly clear.
No question about it. And that serves as the main incentive to apply to the bank and get a loan?
* Actual calculation?
* Sample and colleagues on the board work (Vasey neighbor, school buddies, driving a relative)?
* Broskaya advertising?
Unfortunately, in most cases, do not own calculation, and an example of "neighbor Vasey, buyers of credit already a third apartment, or out roll-advertising play a crucial role in the treatment of mortgage. And that is why a mortgage instead of a source of good, threatens to become a source of trouble.
Mortgage: bondage or benefit?
Imagine that you took the money: they want you to urgently enough, and while you need a "decent" amount. (For completeness, a feeling I podstavlyu-ka figures: need 100000 dollars)
Where they can?
* Option One: money.
Bertie monthly salary: deduct from it the necessary expenses: for food, clothing, family maintenance, rent, etc.. That something deferred for unforeseen expenses.
How much remains?
Now imagine the funds and the money to do that every month can put off. How much time will be required to obtain the necessary amount of money?
* Option Two: go into the streets with a large hat (the amount of money required to fit there) and ...
No? Outdoor razdobyt not get?
* Option Three: to take with friends. (Here is where druzhba-to checked). What does not get? A custody tried to hold interest? They also can not?
Although it managed to take something? Excellent: were good friends!
* Then still another option: take the money in the bank.
In most cases, this option is more effective than mentioned above. How to get credit in the bank - this, indeed, is devoted to the project "On MORTGAGES"
That is, it turns out that the bank can-do, as there are only best friends!
That is, mortgage-can be good.
But mortgage-can be and bondage. Indeed, if the loan had to pay 9 / 10 of its income, it is not like the good think.
If it is not possible to pay on the loan, but because the court imposes cover not only planted on the bank property, but also the fact that there was - and in which the loan funds are not spent, what is the benefit f?
A small conclusion:
Withdrawal from the above, a simple enough: Mortgage is a tool.
The skilful use of this tool can make a life-crash, better, better.
Not able-use can lead to serious losses.
Neither neighbor Vasya covering as cool to live in his flat, nor Bank, on whose custom-made beautiful advertising is not paying your debts.
This is your choice and your risk!
To mortgages would be good-you need to think independently.
Related posts:
A distinctive feature of a mortgage
You know that this may be grounds for recovery inherent property?
* you propose to be a guarantor for the loan?
The person for whom you should poruchitsya says that this is an empty formality, and that the answer he would have no debts. Was that true?
And you know what Clients are jointly and severally liable with the borrower on the loan?
Why do people turn to the bank for the loan?
Because it wants to have his apartment (house, land, a lot of money on bail) (Desired-stress). This is all exactly clear.
No question about it. And that serves as the main incentive to apply to the bank and get a loan?
* Actual calculation?
* Sample and colleagues on the board work (Vasey neighbor, school buddies, driving a relative)?
* Broskaya advertising?
Unfortunately, in most cases, do not own calculation, and an example of "neighbor Vasey, buyers of credit already a third apartment, or out roll-advertising play a crucial role in the treatment of mortgage. And that is why a mortgage instead of a source of good, threatens to become a source of trouble.
Mortgage: bondage or benefit?
Imagine that you took the money: they want you to urgently enough, and while you need a "decent" amount. (For completeness, a feeling I podstavlyu-ka figures: need 100000 dollars)
Where they can?
* Option One: money.
Bertie monthly salary: deduct from it the necessary expenses: for food, clothing, family maintenance, rent, etc.. That something deferred for unforeseen expenses.
How much remains?
Now imagine the funds and the money to do that every month can put off. How much time will be required to obtain the necessary amount of money?
* Option Two: go into the streets with a large hat (the amount of money required to fit there) and ...
No? Outdoor razdobyt not get?
* Option Three: to take with friends. (Here is where druzhba-to checked). What does not get? A custody tried to hold interest? They also can not?
Although it managed to take something? Excellent: were good friends!
* Then still another option: take the money in the bank.
In most cases, this option is more effective than mentioned above. How to get credit in the bank - this, indeed, is devoted to the project "On MORTGAGES"
That is, it turns out that the bank can-do, as there are only best friends!
That is, mortgage-can be good.
But mortgage-can be and bondage. Indeed, if the loan had to pay 9 / 10 of its income, it is not like the good think.
If it is not possible to pay on the loan, but because the court imposes cover not only planted on the bank property, but also the fact that there was - and in which the loan funds are not spent, what is the benefit f?
A small conclusion:
Withdrawal from the above, a simple enough: Mortgage is a tool.
The skilful use of this tool can make a life-crash, better, better.
Not able-use can lead to serious losses.
Neither neighbor Vasya covering as cool to live in his flat, nor Bank, on whose custom-made beautiful advertising is not paying your debts.
This is your choice and your risk!
To mortgages would be good-you need to think independently.
Related posts:
A distinctive feature of a mortgage
Thursday, September 20, 2007
A distinctive feature of a mortgage
A distinctive feature of a mortgage is the key: there is the mortgage bond, no collateral, no mortgage
The term mortgage:
The term "Mortgage" means a loan issued on bail.
The main difference is not of mortgage mortgage-mortgage: that is, the availability of collateral. Moreover, the mortgage loan can be granted bail as of the property owned by the borrower or on bail purchased property (where mortgages are drawn up in conjunction with the acquisition of property).
To better understand the difference between the mortgage and no mortgage, cite:
Under the existing mortgage apartment Bank credit, "consumer credit", which the borrower can use for just about everything.
This mortgage or no mortgage?
There is a bail-means there is a mortgage and loan-mortgage.
Another example:
The Bank has issued a loan to buy real estate.
But in this real estate collateral is not required. No collateral, no mortgage. And credit is not a mortgage.
Again, I stress that the mortgage is not different from the existence of the mortgage lien.
Mortgage: a bit of history
The term "mortgage" - Greek origin.
Even in ancient Greece could obtain loans on bail, such as land. The borrower receives money from the lender (mortgage), and to avoid the temptation to get bail money to the same land from other creditors, was bound at the site, collateral mortgage, a special label (or stone pillars). This sign opoveschal that the station is in the pledge that under his mortgage bond has been received.
What is the difference between "mortgage" and "collateral"
As already mentioned, the mortgage is the key. But not every pledge-mortgage. The fact is that the mortgage is a mortgage, which is public. When the real estate mortgage, the registrars transaction, make appropriate entries that encumbered property lien. Any interested person may request a bank statement from the State Register of real property rights and transactions. In this extract, if the property is found, be sure to indicate that there encumber: Collateral.
Related posts:
The mortgage terms and formulas
The term mortgage:
The term "Mortgage" means a loan issued on bail.
The main difference is not of mortgage mortgage-mortgage: that is, the availability of collateral. Moreover, the mortgage loan can be granted bail as of the property owned by the borrower or on bail purchased property (where mortgages are drawn up in conjunction with the acquisition of property).
To better understand the difference between the mortgage and no mortgage, cite:
Under the existing mortgage apartment Bank credit, "consumer credit", which the borrower can use for just about everything.
This mortgage or no mortgage?
There is a bail-means there is a mortgage and loan-mortgage.
Another example:
The Bank has issued a loan to buy real estate.
But in this real estate collateral is not required. No collateral, no mortgage. And credit is not a mortgage.
Again, I stress that the mortgage is not different from the existence of the mortgage lien.
Mortgage: a bit of history
The term "mortgage" - Greek origin.
Even in ancient Greece could obtain loans on bail, such as land. The borrower receives money from the lender (mortgage), and to avoid the temptation to get bail money to the same land from other creditors, was bound at the site, collateral mortgage, a special label (or stone pillars). This sign opoveschal that the station is in the pledge that under his mortgage bond has been received.
What is the difference between "mortgage" and "collateral"
As already mentioned, the mortgage is the key. But not every pledge-mortgage. The fact is that the mortgage is a mortgage, which is public. When the real estate mortgage, the registrars transaction, make appropriate entries that encumbered property lien. Any interested person may request a bank statement from the State Register of real property rights and transactions. In this extract, if the property is found, be sure to indicate that there encumber: Collateral.
Related posts:
The mortgage terms and formulas
Tuesday, September 18, 2007
The mortgage terms and formulas
The mortgage terms and formulas. Effective interest rate.
When people went to the bank, he drew attention to the interest rate, called the bank. This naturally: overpay for the use of credit nobody wants. And commit great mistake. Because the interest rate banks declared differs from the one on which the borrower actually pays. The fact is that in many banks there are additional commissions: somewhere there is a commission for issuing credit, somewhere, for the conduct of loan accounts.
How to calculate what the program really profitable?
This is done by using the effective interest rate, it can objectively compare the profitability of a loan.
There are different definitions of the effective interest rate. I believe that such a definition is best: the effective interest rate is the annual interest rate on the loan, taking into account all costs incurred during the use of credit.
Call your attention that because when calculating the effective interest rate takes into account all fees and commissions banks, it is very important to the amount of time that you use credit.
* For example, the commission for issuing credit in the amount of 1000 dollars, when the amount of credit to 100000 dollars, may increase the rate of interest on: 365% if the loan enjoyed only one day;
* 0.1% if the loan enjoyed 10 years.
Now veselimsya because: to calculate the effective interest rate, there are many ways. Imagine that you BANK 1 said that the effective rate of interest in their bank is 16%, while Bank BANK 2 employees were told that they had an effective interest rate of 20%.
Does this mean that the bank loan in the first profitable than in the second?
Not at all: they may have felt differently interest rates.
Related posts:
Mortgage: terms for market participants usage
When people went to the bank, he drew attention to the interest rate, called the bank. This naturally: overpay for the use of credit nobody wants. And commit great mistake. Because the interest rate banks declared differs from the one on which the borrower actually pays. The fact is that in many banks there are additional commissions: somewhere there is a commission for issuing credit, somewhere, for the conduct of loan accounts.
How to calculate what the program really profitable?
This is done by using the effective interest rate, it can objectively compare the profitability of a loan.
There are different definitions of the effective interest rate. I believe that such a definition is best: the effective interest rate is the annual interest rate on the loan, taking into account all costs incurred during the use of credit.
Call your attention that because when calculating the effective interest rate takes into account all fees and commissions banks, it is very important to the amount of time that you use credit.
* For example, the commission for issuing credit in the amount of 1000 dollars, when the amount of credit to 100000 dollars, may increase the rate of interest on: 365% if the loan enjoyed only one day;
* 0.1% if the loan enjoyed 10 years.
Now veselimsya because: to calculate the effective interest rate, there are many ways. Imagine that you BANK 1 said that the effective rate of interest in their bank is 16%, while Bank BANK 2 employees were told that they had an effective interest rate of 20%.
Does this mean that the bank loan in the first profitable than in the second?
Not at all: they may have felt differently interest rates.
Related posts:
Mortgage: terms for market participants usage
Wednesday, September 12, 2007
Mortgage money transferring ways
Different ways of transferring money.
* Cash vendor, before the filing of documents in the CIS. registration hands;
* Cash seller after the transaction hands;
* At the seller's expense before the transaction;
* From the buyer to the seller as in Russia, both at home and abroad;
* Through the mediator, for example, through the real estate agency;
* At the seller's account after the transaction;
* A cell depositary bank;
* A letter of credit.
Through negotiations, the buyer and seller reached a compromise.
There are rare cases where the seller is needed money, a buyer much like apartment, but the deal sagged just because way to transfer money proposed by a party, are not happy another.
And vice versa.
The compromise is not reached, the deal sagged.
In the case of mortgage-way transfer of money determines the bank. Sometimes all, but often only the part that grants in the form of credit. But there are possible alternatives.
And do pledge?
If bank credit, but does not require collateral design, the mode of transmission of money you choose themselves: as themselves agree with the seller, and distribute.
A credit agreement with the bank: Please get the money in cash. And give the money themselves seller apartment.
When needed bail?
* Pledge want the bank, but the bank initially gives the borrower money and gives it time to the one after the conclusion of the contract of sale flats laid its bank:
As collateral is not buying apartments at the same time as the bank simply gives money and transmit them to the seller as feels like it.
However, until collateral many banks prefer podstrahovatsya: and request that the borrower at the time, while rentals will be no lien bank - would provide sureties, or be handed over to any other property as collateral. In doing so, until bail apartments, acquired on credit, the borrower's interest rate increases.
* Security deposit occurs simultaneously with the borrower flat:
This is the most widely distributed transactions, is used in 9 cases out of 10. Under such a scheme, a way to transfer money calls the bank.
Related posts:
What you need to buy an apartment?
* Cash vendor, before the filing of documents in the CIS. registration hands;
* Cash seller after the transaction hands;
* At the seller's expense before the transaction;
* From the buyer to the seller as in Russia, both at home and abroad;
* Through the mediator, for example, through the real estate agency;
* At the seller's account after the transaction;
* A cell depositary bank;
* A letter of credit.
Through negotiations, the buyer and seller reached a compromise.
There are rare cases where the seller is needed money, a buyer much like apartment, but the deal sagged just because way to transfer money proposed by a party, are not happy another.
And vice versa.
The compromise is not reached, the deal sagged.
In the case of mortgage-way transfer of money determines the bank. Sometimes all, but often only the part that grants in the form of credit. But there are possible alternatives.
And do pledge?
If bank credit, but does not require collateral design, the mode of transmission of money you choose themselves: as themselves agree with the seller, and distribute.
A credit agreement with the bank: Please get the money in cash. And give the money themselves seller apartment.
When needed bail?
* Pledge want the bank, but the bank initially gives the borrower money and gives it time to the one after the conclusion of the contract of sale flats laid its bank:
As collateral is not buying apartments at the same time as the bank simply gives money and transmit them to the seller as feels like it.
However, until collateral many banks prefer podstrahovatsya: and request that the borrower at the time, while rentals will be no lien bank - would provide sureties, or be handed over to any other property as collateral. In doing so, until bail apartments, acquired on credit, the borrower's interest rate increases.
* Security deposit occurs simultaneously with the borrower flat:
This is the most widely distributed transactions, is used in 9 cases out of 10. Under such a scheme, a way to transfer money calls the bank.
Related posts:
What you need to buy an apartment?
Monday, September 3, 2007
Credit for apartment
The first step
This step can be skipped, and start with the next. But I do recommend it to do.
I recommend that appeal to the mortgage broker, who knows about mortgages almost everything. Time to choose a bank then will need far less likely to obtain a loan-rise, and in some banks, credit will be available for Special Programs: distinguishable best conditions. The benefits of this treatment may be many times more than the monetary cost of the services of a broker.
Next, I recommend that you go into real company and enter into an agreement with rieltorom to buy an apartment on credit was easy and not be turned into an endless "walking on the meal." When buying an apartment on credit characteristics of the mass must be taken into account: if professional realtors working with a mortgage, all those characteristics, he knows.
Of course, the work of the mortgage broker, realtors and costs money, but in the case of a mortgage, this is better than saving.
Although, it's up to you.
Step Two. Bank sees you.
By issuing money, the bank risks. Therefore, the money issue is not all. Consideration takes from three to five days to six weeks, depending on the bank and of the source of your income.
Step third. Looking for an apartment.
Apartment easy to find: There are many sites on the Internet, and print media where ads sold on the flats. But! Flats to test, you must gather all the documents on it. And, as happens in the purchase of an apartment loan, rather than cash, rentals should not only upset you, but Bank.
This case when there is a positive decision on the previous step. If a negative decision-looking another bank, and the previous step going with another bank
Step Four. Evaluation.
The Bank must be sure that credit is not more than so much per cent of the cost of an apartment, but provided his credit program. Therefore, the apartment must be assessed. Certificate of Assessment is transmitted to the bank.
Step Five. Apartment Approves Bank.
Apartment found, the documents collected and sent for testing in the bank and the insurance company. Security Service Bank, together with the legal department, as well as members of an insurance company considering your chosen apartment. If they are satisfied, then you can buy this apartment.
Step six. The credit agreement.
Before you sign the loan transaction contract. Under this treaty Bank prepares you for the necessary money to the seller apartment (in the case of the sale of an apartment) could get one.
Step seventh. Money.
Depending on the merchant bank transferred the money in different ways. Either through deposit box or at the seller's expense. If deposit box through a bookmark-laundering occurs in a cell before state registration.
Step eighth. Notary certificate.
The Treaty is not subject to mandatory Notary Permits. In most cases, sales contracts are drawn up in the apartment beznotarialnoy form, the bank may require that a notary certificate, it would be. - Will have to certify require notarized. The Bank also may require that has been certified by a notary signature on the mortgage. But even if the bank did not require this, the visit to the notary vse-ravno have to do: to verify the consent of spouses to the deal, or vice versa: write a statement that the participants in the transaction were not married.
Step ninth. The state registration.
The move comes at a time right state registration. Registration transactions lasts from a week to a month.
Step tenth. Insurance.
Sometimes this step precedes the transaction.
Bank of risks and wants to reduce their risks. Bank reduces their risks, as, is, for your account. That is, with the insurance organization rasplachivaetes you.
Related posts:
Mortgage and credit
This step can be skipped, and start with the next. But I do recommend it to do.
I recommend that appeal to the mortgage broker, who knows about mortgages almost everything. Time to choose a bank then will need far less likely to obtain a loan-rise, and in some banks, credit will be available for Special Programs: distinguishable best conditions. The benefits of this treatment may be many times more than the monetary cost of the services of a broker.
Next, I recommend that you go into real company and enter into an agreement with rieltorom to buy an apartment on credit was easy and not be turned into an endless "walking on the meal." When buying an apartment on credit characteristics of the mass must be taken into account: if professional realtors working with a mortgage, all those characteristics, he knows.
Of course, the work of the mortgage broker, realtors and costs money, but in the case of a mortgage, this is better than saving.
Although, it's up to you.
Step Two. Bank sees you.
By issuing money, the bank risks. Therefore, the money issue is not all. Consideration takes from three to five days to six weeks, depending on the bank and of the source of your income.
Step third. Looking for an apartment.
Apartment easy to find: There are many sites on the Internet, and print media where ads sold on the flats. But! Flats to test, you must gather all the documents on it. And, as happens in the purchase of an apartment loan, rather than cash, rentals should not only upset you, but Bank.
This case when there is a positive decision on the previous step. If a negative decision-looking another bank, and the previous step going with another bank
Step Four. Evaluation.
The Bank must be sure that credit is not more than so much per cent of the cost of an apartment, but provided his credit program. Therefore, the apartment must be assessed. Certificate of Assessment is transmitted to the bank.
Step Five. Apartment Approves Bank.
Apartment found, the documents collected and sent for testing in the bank and the insurance company. Security Service Bank, together with the legal department, as well as members of an insurance company considering your chosen apartment. If they are satisfied, then you can buy this apartment.
Step six. The credit agreement.
Before you sign the loan transaction contract. Under this treaty Bank prepares you for the necessary money to the seller apartment (in the case of the sale of an apartment) could get one.
Step seventh. Money.
Depending on the merchant bank transferred the money in different ways. Either through deposit box or at the seller's expense. If deposit box through a bookmark-laundering occurs in a cell before state registration.
Step eighth. Notary certificate.
The Treaty is not subject to mandatory Notary Permits. In most cases, sales contracts are drawn up in the apartment beznotarialnoy form, the bank may require that a notary certificate, it would be. - Will have to certify require notarized. The Bank also may require that has been certified by a notary signature on the mortgage. But even if the bank did not require this, the visit to the notary vse-ravno have to do: to verify the consent of spouses to the deal, or vice versa: write a statement that the participants in the transaction were not married.
Step ninth. The state registration.
The move comes at a time right state registration. Registration transactions lasts from a week to a month.
Step tenth. Insurance.
Sometimes this step precedes the transaction.
Bank of risks and wants to reduce their risks. Bank reduces their risks, as, is, for your account. That is, with the insurance organization rasplachivaetes you.
Related posts:
Mortgage and credit
Saturday, September 1, 2007
Mortgage and credit
Last time, is increasingly heard: "I want mortgages."
But mortgage and loan-different concepts. The term "mortgage" means mortgage, and specifically credit received on bail of a debtor's assets and money credit is issued to creditors for repayment conditions, and payment of urgency.
It is not always money is that there is a need to lay something: Pledge procedure itself requires certain costs, and these are not always cost-justified.
Mortgage. Mortgage loan.
So, a little theory.
Mortgage-word of Greek origin, meaning, in the pledge.
In our conversation we will talk about mortgage lending, in the case of real estate.
That is, say "mortgage" and understand that credit is issued against mortgage.
A lay-loan real estate. Can settlement with the bank bail-go, no-inherent property can be sold, and proceeds from the debt will be charged to the Bank, including interest for the use of credit.
They say "mortgage" understand "pledge."
Let's talk about the terms in more detail.
Mortgage is the mortgage. There is the mortgage bond, no collateral, no mortgages, and credit is not a mortgage.
To better understand the difference between the mortgage and no mortgage, cite:
Bank credit on bail of available apartments, "consumer credit", which the borrower can use for just about everything.
This is a mortgage loan?
Mortgage!
Even though the borrower may spend the money for any purpose: mortgage is the key.
Example Two:
The borrower bank credit to buy an apartment. Bail is not required acquired apartments.
Such a mortgage loan, or not?
No, this is not a mortgage: a pledge of no means no mortgage.
Which is more important: mortgage or loan?
Which is more important to the borrower-buyer flat: a loan or mortgage?
Of course credit! There is a shortage of money-taking the credit.
And more importantly for the bank?
Mortgage!
Because the mortgage is the key.
Bail is a way of ensuring commitment: not return a borrower loan-collateral is sold subject. And Bank, the inherent value of the assets will offset its losses, and returning the loan, the borrower and unpaid interest.
Loans: trust and not trust
With mortgage, as you know, you can get additional benefits on taxation. Want to use the tax incentives provided in mortgage lending? That possibility is there.
What are the benefits in question, what I describe in some detail on page Priyatnosti mortgages
Let me just draw your attention to the fact that benefits for the borrower's mortgage lending is not for the fact that the borrower purchased using credit apartment: it is not enough. Benefits are provided for the loan borrower spent for the acquisition or construction of housing and the loan trust! What does it mean to "target"?
Take credit "for immediate needs" bought an apartment not trust credit: no concessions;
if, however, took credit for the purchase of real estate properties and the acquisition of its spent - and then have the right to benefits.
They say "mortgage" understand "credit".
Butter Sandwich without happens, a mortgage without collateral?
?
What do we mean by "mortgage"?
Turning to the bank for a mortgage (with the mortgage), who are interested in little collateral!
Purpose-apartment to buy a flat-needed money, their money is not enough, take the credit.
So?
(Interesting look at the person who is not drawn to the bank to get a loan and to pay bail in the apartment!)
Therefore, when a borrower is drawn to the bank for the mortgage, the employees of banks offer mortgages as well as mortgage loans is not: it is the objective of the borrower-house, the borrower mol what difference will be mortgage (mortgage) or not?
The borrower-credit: This is what you want! A mortgage in the sense of "collateral" is not a goal of the borrower.
As part of our continuing conversation, I too will not adhere so strictly correct interpretation of terms.
The aim is to purchase and, therefore, talk of a mortgage we will be as a loan, regardless of the fact whether a pledge of an apartment or not.
At the same time, draw your attention to some fundamental points:
* In the real estate mortgage as soon formalized in the borrower's property. (And not when the borrower Has with the bank.)
* Bank could not on its arbitrariness confiscating the property the borrower.
The borrower may lose its only real estate laid by the court, and then only in the event that violates the credit agreement.
And ways of acquiring apartments in installments, in which the buyer can live in an apartment, paying for only a fraction of its value, but will not be the owner of the apartment until it pays the full cost, we will not consider. This is certainly not mortgages.
But mortgage and loan-different concepts. The term "mortgage" means mortgage, and specifically credit received on bail of a debtor's assets and money credit is issued to creditors for repayment conditions, and payment of urgency.
It is not always money is that there is a need to lay something: Pledge procedure itself requires certain costs, and these are not always cost-justified.
Mortgage. Mortgage loan.
So, a little theory.
Mortgage-word of Greek origin, meaning, in the pledge.
In our conversation we will talk about mortgage lending, in the case of real estate.
That is, say "mortgage" and understand that credit is issued against mortgage.
A lay-loan real estate. Can settlement with the bank bail-go, no-inherent property can be sold, and proceeds from the debt will be charged to the Bank, including interest for the use of credit.
They say "mortgage" understand "pledge."
Let's talk about the terms in more detail.
Mortgage is the mortgage. There is the mortgage bond, no collateral, no mortgages, and credit is not a mortgage.
To better understand the difference between the mortgage and no mortgage, cite:
Bank credit on bail of available apartments, "consumer credit", which the borrower can use for just about everything.
This is a mortgage loan?
Mortgage!
Even though the borrower may spend the money for any purpose: mortgage is the key.
Example Two:
The borrower bank credit to buy an apartment. Bail is not required acquired apartments.
Such a mortgage loan, or not?
No, this is not a mortgage: a pledge of no means no mortgage.
Which is more important: mortgage or loan?
Which is more important to the borrower-buyer flat: a loan or mortgage?
Of course credit! There is a shortage of money-taking the credit.
And more importantly for the bank?
Mortgage!
Because the mortgage is the key.
Bail is a way of ensuring commitment: not return a borrower loan-collateral is sold subject. And Bank, the inherent value of the assets will offset its losses, and returning the loan, the borrower and unpaid interest.
Loans: trust and not trust
With mortgage, as you know, you can get additional benefits on taxation. Want to use the tax incentives provided in mortgage lending? That possibility is there.
What are the benefits in question, what I describe in some detail on page Priyatnosti mortgages
Let me just draw your attention to the fact that benefits for the borrower's mortgage lending is not for the fact that the borrower purchased using credit apartment: it is not enough. Benefits are provided for the loan borrower spent for the acquisition or construction of housing and the loan trust! What does it mean to "target"?
Take credit "for immediate needs" bought an apartment not trust credit: no concessions;
if, however, took credit for the purchase of real estate properties and the acquisition of its spent - and then have the right to benefits.
They say "mortgage" understand "credit".
Butter Sandwich without happens, a mortgage without collateral?
?
What do we mean by "mortgage"?
Turning to the bank for a mortgage (with the mortgage), who are interested in little collateral!
Purpose-apartment to buy a flat-needed money, their money is not enough, take the credit.
So?
(Interesting look at the person who is not drawn to the bank to get a loan and to pay bail in the apartment!)
Therefore, when a borrower is drawn to the bank for the mortgage, the employees of banks offer mortgages as well as mortgage loans is not: it is the objective of the borrower-house, the borrower mol what difference will be mortgage (mortgage) or not?
The borrower-credit: This is what you want! A mortgage in the sense of "collateral" is not a goal of the borrower.
As part of our continuing conversation, I too will not adhere so strictly correct interpretation of terms.
The aim is to purchase and, therefore, talk of a mortgage we will be as a loan, regardless of the fact whether a pledge of an apartment or not.
At the same time, draw your attention to some fundamental points:
* In the real estate mortgage as soon formalized in the borrower's property. (And not when the borrower Has with the bank.)
* Bank could not on its arbitrariness confiscating the property the borrower.
The borrower may lose its only real estate laid by the court, and then only in the event that violates the credit agreement.
And ways of acquiring apartments in installments, in which the buyer can live in an apartment, paying for only a fraction of its value, but will not be the owner of the apartment until it pays the full cost, we will not consider. This is certainly not mortgages.
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