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Tuesday, December 30, 2008

Daily Mortgage Rate Commentary

Wow, got here today fired up to work and tightened up some "business bolts", and submitted some refinance files, all the while checking on my always reliable Mortgage Interest Commentary Site for advice, and I'm thinking now here at 10:47am, he took off early for New Years. Maybe I should be home with the family...except they have stomach viruses and I better enjoy my coming hours because with a 3 year old and a 1 year old, it's gonna pass it's way to me for sure and only in time will I be on bed rest too. YUCK!
So here is today's commentary, straight from the horse's (Brad's) mouth.
At the time that I looked at our stock market ticker, the DOW was up 140.5 and the NASDAQ was also up 31.39
. Typically that would mean that Bonds are probably not as strong at first blush. On the other hand, I would have expected the stock market to be very shaky today with the December Consumer Confidence Index report coming back so poorly. Read it here on's well written and you don't have to be a stock broker to understand it here, so do it. You'll be glad you took the extra 1.5 mintues. The expectations were much worse than expected. Yesterday, said, "Current forecasts are calling for a minor increase confidence from November's reading of 44.9. Analysts are expecting tomorrow's release to show a reading of 45.2," but instead of a small rise, it sank to 29.4. Friends, as I continue to read these reports and stay close to the market conditions in hopes to better advise my clients, I become more and more afraid of what our country and it's economy is running into.
Rates worsened a little bit today and the 30 year fixed conventional is sitting at 5.125% today, while the FHA 30 year fixed is at an even 5%.
If you are looking to close on a home loan in 1 week to 60 or even 90 days, DON'T BE GREEDY, lock your loan and be done with my advice. If you have further to wait, make today's mark a note on your calendar to refer back to and if you get .375% better between now and the next 90 days, figure a way out to lock it.

Monday, December 29, 2008

2009 Economic Forecast

Over a week ago, I was able to make it to the Ted Jones 2009 Economic Forecast. Ted is the Cheif Economist for Stewart Title. There are many great points he made, and in this Blog, I want to just touch one that made the most since to me as I have been thinking similarly throughout the past year. If you would like to read more about Ted's forecasting and thoughts, you can go to Ted's Blog.

The title of the portion I wanted to share is, "Loan Modifications Do Not Work".

In the forecast Ted revealed the statistics, "Data from banks show that more than half of loans modified during the first three months of the year were delinquent by 30 days just six months after the terms of the loans were changed, John C. Dugan, the comptroller of the currency, said at a conference in Washington. After eight months, 58 percent were delinquent again."
Ted went on to explain that our country spent money in an area of the economy that has a proven track record of failure and lack of responsibility. The sub prime break down and alternative lending catagories made loans available to people that had less than perfect credit history. Drug abusers are fare game in this illustration. Yeah, spending money above your means is not quite like sticking a needle in your arm and going to rehab for months to just come out and begin sticking needles in your arm again. On the other hand, these comparisons are congruent with the fact that history proves that humans are creatures of habit, and a person's character develops life's habits. In the end, changing one's own character is a very hefty goal to take on and few are able to take on such a challenge. Changing is hard.

Now, Ted didn't use the above to illustrate his points...they are all mine and I own these thoughts myself. In conclusion, is it right to put the major focus and control of getting our country out of this holewe are in into the hands of the same people who got us here in the first place? They have a track record of not planning and budgeting, and making rash emotional decisions when making purchases that eventually bring their lives and families into bankruptcy and foreclosure. Within the list of failed families and foreclosures, there is a large number that had little to no roll in the doom that they encountered because their jobs were lost and the income they had went away. I know that all families within this foreclosure group weren't led by an undisciplined person and some were a product of the economic environment. Lets not on the other hand, focus our efforts and put the control in the hands of the folks who previously failed. The above statistics show that this is exactly what has begun to happen. The failed mortgages that were modified are failing again.

What should we have done? Sometimes the experts and leaders of our country have to make decisions that don't necessarily feel right to the masses like a father does to his child. I'm not an economist, so I can't very well reflect on this subject in a concluding statement and offer the answer to our economic wows. It just doesn't sound right though to continue "putting the ball in the quarterback's hands that has a history of fumbling the ball".

Thursday, December 18, 2008

Greed or Good Hope Drive Strategies In Refinancing Game

Refinancing in today's market for the Dallas, Frisco, and surrounding cities can be a time for a mortgage consultants where the consultant may have to decide in deciding what the near future may bring in market changes whether to advise a prospective borrower to lock and realize what the market has brought, or to float (hold of on the lock for the time being) in hopes for the even better rate. My concern is, are there too many people striving for the ever "impossible deal". Working in a refinance boom brings out the shifty character that is embedded in general. This thought brings me back to a trophy fish that has not, and will not ever be caught by "The Sons of the Sacred Shrimp".

As a kid, my father and some of his fishing buddies organized a small amateur fishing "club" that was only made up of about 5-6 people w/in their tight nit buddy group. Their club names were derived by using a coastal fishing name that started with the same letter as their last name...Lighthouse Lynch was my families club name, and there were names like, Gaftop Godfrey, Redfish Robinson. The motivation that was set in the goals of the club was a single fish by the the name of Freddy Fish. Freddy Fish was the ever elusive largest fish one could catch of any such fish species. You can't catch it, I did. ha ha

It might be the one that got away" that all fishermen have come across. This thought is one that comes to mind in the mortgage world. I have witnessed clients chase the one interest rate that can never be "caught", and I'm going to call it, Iden (pronounced with a long i) interest rate. Iden is an Anglo name meaning wealthy.

It seems like the lower a rate lock I secure for a client, the more I'm pushed to find the next lower. I don't see this as hope as much as I see it as greed. Iden the Interest rate will not be "caught" by the masses. There is only one owner of the record size bass caught in the world, yet every angler fishes in hopes to catch that next record. Obviously, the angler has nothing to lose by fishing for Freddy Fish, but let me advise to you prospective borrowers and buyers, YOU DO HAVE SOMETHING TO LOSE BY CHASING IDEN THE INTEREST RATE. Only a very small few will stumble upon Iden, and the rest will ultimately settle for a lesser rate after you've passed on Iden's not so bad cousin (a better one) hoping to catch Iden.

In the last week, I had 4-5 past clients that became prospective borrowers in the refinance market. They all mentioned to me that "if I could just get 5% flat or ANYTHING UNDER 5%, I would jump on it". Well, "the tide receded" lower than ever expected in recent years and I had the opportunity to lock them all at .25% or better than they thought possible. I was very excited to deliver the message to all of them about exceeding their expectations, and not a one of them responded with excitement as their innate drive for Iden the Interest rate set in.

I read Christian literature, and this morning I came across some reading that was written by a Christian Author, but is probably written in numerous publications in all genres of readings that made good since. The basic thought that I pulled from this is that every leading world power that has ever been throned in the history of mankind has been dethroned, whether it be the unimaginable dynasties in China, or the crushing power of Caesar and the Romans, or the vast reaching power that had such an abrupt ending of Hitler's Germany. You may ask what this has to do with this Blog? America the beautiful has been the so called world power for some time now, and if history defines the future as it has for years, we Americans may need to realize that we aren't necessarily "world beaters" by default. We bleed the same color as the guy living in the Siberian Mountains that still survives from hunting and gathering. Our countries foundation is breakable only when the economy to support it is broken. In a 2009 economic forecast by an industry leading economist I listened to yesterday, he mentioned of Japans struggle through my lifetime to pull from a depression and/or recession, just as they appeared to break free, they fell back into it. America could very well be on a drawn out fall with the rest of the worlds economy that may lead to unforeseen and expected economic times that no man can forecast...I'm not speaking Biblically here.

Economists do not have crystal balls, and the mortgage forecasts are gambles. I use the name economist and optomist synonamously, because it seems like economist never fail to deliver a positive hope accompanied by their report of our failing economy.

In the concluding statement here, I'll let you draw your own conclusion for an answer to the question, "Brad, I know rates are unbelievably low right now. But, we didn't think they would get this low. DO YOU THINK WE SHOULD REALLY LOCK MY LOAN RIGHT NOW?"

Wednesday, December 17, 2008

Unbelievably Super Low Rates Today, but What About The Rest of the Week

Ultimately, yesterdays economic news was GREAT for today's rates, but there was some major volatile "others" that gave us a mid day worsening. In the end, we saw better rates today still, thanks to Bond gains like I haven't seen in a long time.
This morning the bond market was currently up 45/32, and usually we see it up on average of around 15/32 or so, so you can imagine how well it started today.
Tomorrow morning brings us the release of weekly unemployment figures from the Labor Department., my favorite mortgage rate commentary site said the following. This data is not usually of much importance to the markets because it tracks only a week's worth of new claims. However, the second report of the day is only moderately important so if this data varies greatly from forecasts it could influence bonds enough to affect mortgage pricing. It is expected to show that 55 the week's last piece of economic news will be posted tomorrow morning with the release of the Conference Board's Leading Economic Indicators (LEI) for the month of November. This 10:00 AM release attempts to measure economic activity over the next three to six months. It is expected to show a sizable decline in activity, meaning that it predicts slower economic activity over the next several months. This probably will not have much of an impact on bond prices or affect mortgage rates unless it exceeds current forecasts of a 0.5% decline from October's reading. If it shows a larger decline, the bond market may move slightly higher, improving mortgage rates slightly.
8,000 new claims for benefits were filed last week.
In the end, this just means that they don't expect rates to sit this low for long, but there may be economic news in the coming weeks that return it to this rate low again soon.
My advice on your lock decision, DON'T BE GREEDY. Lock your loan now.

Tuesday, December 16, 2008

Builders In House Mortgage Relationships Soon To Be Changed

Builders have been a big problem over the years with dangling incentives for potential buyers to use their affiliated mortgage company. Nothing was more aggervating than to lose a loan after I have been working with a buyer for months, because some builder claims to be giving some sort of incentive to use thier affilated mortgage company. We all know what was going on behind the scenes within the mortgage industry. I have been saying for years that builders need more regulation. Looks like it finally happened.

Ken Harney made note of some changes to come, and said the following.

One of the less-discussed provisions of the Department of Housing and Urban Development's controversial rule on mortgage fees and disclosures is expected to profoundly change lenders' relationships with builders next year.
The rule, which HUD finalized last month after years of revisions, stops, and starts, will overhaul how the Real Estate Settlement Procedures Act is enforced.
Most of the debate about the 86-page rule has focused on the standardized good-faith estimate lenders will have to start providing mortgage applicants in 2010. The industry is expected to spend millions next year preparing for that part of the rule.
Several other provisions will take effect Jan. 16. What many observers called the most significant one would bar builders from offering homebuyers discounts that require them to use an affiliated mortgage, title, or settlement company. The ban will remove a competitive advantage for the joint ventures many builders have with lenders like Wells Fargo & Co., JPMorgan Chase & Co., and Countrywide Financial Corp., now a unit of Bank of America Corp. Some observers said the rule could spell the end of such partnerships.
Also on Jan. 16, lenders will be allowed to charge borrowers the average fee for certain types of settlement services purchased on their behalf, rather than the actual fee the lender paid the service provider. Some consumer advocates said this provision could help lenders skirt other consumer protection laws.
One thing that is clear: a good deal of compliance work lies ahead. "The industry has been digesting this huge, complicated, massive rule, and we're only now coming to the stage of implementation," said Sue Johnson, the president of the Real Estate Services Providers Council Inc.
Mitchel Kider, a managing member at Weiner Brodsky Sidman Kider PC, said builder-affiliated mortgage entities "worked off the synergy that exists" because discounts and incentives are available. "What this rule does is make it difficult from a business perspective to run your operation. It changes the business model of affiliations."
Brian Levy, a senior vice president and general counsel at the $1.5 billion-asset Guaranty Bank in Milwaukee, whose Shelter Mortgage Co. LLC has partnerships with builders, said, "We're going to see less production from that source and lower revenue."
It will be hard to gauge how much of the drop will come from the rule and how much will come from the recession and housing slump, Mr. Levy said. (In October, the most recent month for which data is available, sales of new homes dropped 5.3% from September and 40% from a year earlier, to an annual rate of 433,000, according to the Census Bureau.)
After mid-January, Mr. Levy said, lenders will monitor capture rates - how much of a builder's business their joint ventures get - to measure the rule's effect.
Gina Harris, the president of Builder's Affiliated Mortgage Services, a Tampa correspondent lender, said she expects to gain more business after being shut out from competing for the business of home builders that had ventures with mortgage companies.
"The joint ventures with builders may not be as profitable anymore, and they may decide that they don't want to have them," she said. "And that's probably going to be a decision that the large mortgage companies doing the joint ventures are going to have to make."
Lenders that have mortgage officers working at builders' offices may continue to work with the builders but probably will bring their loan officers in-house as part of their retail staff, Ms. Harris said.
David Stevens, a former executive at Wells and Freddie Mac and now the president and chief operating officer of the Chantilly, Va., real estate brokerage Long & Foster Cos., said the real estate law does not prohibit companies from offering "a bona fide discount," but it must be one that any competitor could match. The problem is when "the only way you get the discount to the home is to use the affiliated business."
At the peak of the housing market, builders typically told customers that they could get $10,000 of upgrades or a bigger lot if they used a mortgage or title company affiliated with the builder, he said. "They basically cross-subsidized it" with revenue from the affiliate.
William Renner, the director of single-family finance at the National Association of Home Builders, said some builder-affiliated mortgage companies may still maintain "fairly high capture rates" next year, because not all builders offered incentives in exchange for using a certain service. But he conceded that the builders with affiliated mortgage companies "would in many cases have to change their marketing agreements."
Debora Blume, a spokeswoman for Wells' home mortgage unit, said many of the builders that have ventures with the lender "do not offer financing incentives, which have actually been a recent phenomenon."
Builders form such ventures because they "want to feel confident their customers are connected with a strong, stable mortgage provider able to make sure deals close on time and meet customers' expectations," Ms. Blume said. "And customers want the convenience of one-stop shopping with mortgage, title, and insurance services under one roof."
The right to charge an average fee at closing for things like credit reports, appraisals, and recordings is meant to make it easier for lenders to adhere to the three-page good-faith estimate they will have to provide beginning in 2010. Under the rule, actual charges at the closing table will not be allowed to exceed 10% of the estimate.
(Lenders currently must provide some sort of good-faith estimate to applicants, but there is no standard form for doing so. Many lenders use a one-page document. Charges at closing can vary widely from the estimate, creating the potential for unpleasant surprises for consumers and making it harder for them to compare loan offers.)
Rebecca Borne, a policy counsel at the Center for Responsible Lending, said settlement fees "are used to calculate the finance charge under the Truth-in-Lending Act and to determine if a loan has 'high-cost' loan status, which often subjects it to more protective standards under federal and many state laws."
Allowing lenders to charge average fees creates the danger that the triggers under those laws will be hit less frequently, Ms. Borne said.
The rule forbids the use of average charges for fees that are based on the loan amount or property value, such as transfer taxes, daily interest, reserves, escrow, and insurance.
Though full Respa reform implementation is more than a year off, some lenders are anticipating the impact of the expanded good-faith estimate, which will include details about whether the interest rate can change, the existence of prepayment penalties, and total closing costs.
The new disclosures "are all going to require extensive systems work, and you have to completely reprogram your settlement systems and up-front disclosure systems, which will affect lenders, third-party service providers, and settlement companies," Mr. Stevens said. "There are definitely costs involved."
Mr. Levy said wholesale lenders are concerned about shouldering the liability of a binding good-faith estimate submitted by mortgage brokers.
Often a borrower will change the details of a loan "as they're headed towards closing" - switching from a fixed rate to an adjustable one, for example, he said.
Whether lenders will be held to their original estimate in such cases is unclear, Mr. Levy said. "Almost every loan on average has a change where it needs to be locked in a second time, and that's normal for a loan to be changed, so would you run the risk that your original GFE is wrong? Will regulators be looking at GFEs and hold ... [lenders] accountable on a compliance issue?"

Thursday, December 11, 2008

Refinance Boom Becoming More Real w/ Rates Below 5% Today

Short and sweet! Junk mail has been hitting my inbox for about a week now talking about an expected "refi boom". Well, that looks more and more likely.
Today, the 30 year fixed rate has officially dropped below 5% and made itself available at 4.75% at Service First Mortgage.Speculations are that expectations for the short term, 2-3 months, rates will be moving up above what we have seen in the recent 10 years. If you are looking to refinance your ARM, or even a 6.5% or higher fixed rate, don't get caught on your heels. The experts were right when they said we'd see rates below 5% in the coming months, as today's rates prove their hypothesis correctly.

Get Your Dugome Money TODAY, Before It's Too Late (Fiction Writing Ahead)

In recent loan appointments with new clients, I have received comments on the different Blog posts these clients have read of mine. Many times they mentioned that they enjoyed reading them and liked the sparing humor I sprinkle into them. That is my goal after all. I know reading mortgage "jargon" is not always the most interesting read to everyone else like it is to me. So, that is the twist I throw into it. See what I do for my readers? Goooooooosh! ha ha
In a recent email to my friends outside the mortgage world that I have stayed in touch with through Middle School, High School, and College, we joked around about the recent Shuttle event. (Two of them are brothers that work for BAE Systems and Lockheed Martin...Google those companies and see their purpose and you'll know why we got into an email about such Shuttle talk). I made a mortgage joke that I thought my Blog readers might enjoy. I would like to have just jumped in and wrote this Blog AS IF I was really advertising for a real scenario, but I am consistently surprised at the serious stand so many random Blog readers take on everything they read. So, my preface here is to announce that this is ALL A JOKE!

Home Owners in Frisco and the surrounding Collin County area have received hard evidence through undisclosed sources that life as we know it on Earth will soon change, as reports from the undisclosed source reveals from research and findings recently brought to Earth on the yesterday's return trip from the moon by Shuttle Astronauts. Global warming will soon be termed Global Burning as to it's now realized inevitable affect on our planet, and the demand for underground living has only recently become real in Collin County. Residence have begun cashing out the equity in their homes to afford the cost of digging and moving all personal belongings including pets into their new underground homes. Residence who have invested in rental properties are even finding that they have enough money after cashing out the equity in their investment homes to put sky lights in their Dugomes (term used when you put Homes and Dugouts together)that just pierce the Earth's surface to allow natural light in. (See, I tell all my clients to invest in rentals and nobody natural light for you in your Dugome)
Before the banks realize what is real in the future and decide to "cashout" on this themselves, please call Brad Lynch for your Dugome moneys today. Disclosure in small writing: you must have at least 40% equity in your home to get exclusive dugome cashout rates.

Picture below of recently found Mars Alien from recent shuttle trip...or maybe it's just a picture of My Little Alien that love pancakes and Carebears.

Home Investor Group/Club/Networking

During the past couple years as loan programs for investor loans began to diminish, numerous investor clients have called a halt to the hustle and bustle of buying new investment homes and cashing out current ones to buy new ones. In the meanwhile, I can just picture them in my head sitting around twiddling their thumbs and because so many of them are high energy people by nature, I figure they have learned to twiddle thumbs at back breaking speeds...if you know exactly the personality that comes with the "get'r done" type I am familiar with. (:

I would like to get involved in a Home Investor Group or Club and understand that there are some spread out through the DFW. If anyone is familiar with an Investor Club/Group/Networking organization, please let me know so I can refer my "thumb twiddlers" there until they figure out what to do next.

Best wishes to all for the Holidays and may God help play a part in it. Lets keep Christ in Christmas.

Wednesday, December 10, 2008

Best Interest Rates for FHA, Conventional, and VA

WOW! If there was ever anything that I thought could help the buyers market pick up, I would think it would be super low interest rates. The bond market staggers after stocks throw a "straight left" followed by a "right cross", and then bonds unleash a "body blow" that sets up a "right hook, left hand upper cut" that sends stocks to the mat for an 8 count. Take that analogy, wash/rinse/repeat over a months time and you see why interest rates go up for two days and then for the next 5-6 business days they drop, followed by the rinse, lather, and repeat method, and you get interest rates on a 30 year fixed loan as low as 5% today.
If you are waiting for the right time to buy and you truly are ready, this is the time. You can't couple the buying while it's low and while the interest rates are low timing better than now. Mortgage guru's expect that we'll see a small spike in rates on the short term followed by a stalactite drop deep into the 4%range before rates eventually shoot up into the 8's or higher. Remember, this is the mortgage business, and everything is a hypothesis or theoretical in nature when it comes to forecasting.
It is just a great of a buyer's market now than it was a couple years ago. There are less seller's than before, but there are far less buyers too. As a local mortgage consultant with numerous referring Realtor alliances, I hear daily how many listings my Realtor alliances have compared to the number of active buyers. There is no shortage of Realtors with 4-5 listings with sellers that continue to drop their listing price because they can't find buyers. This means that the sellers are aggressively ready to drop their price to get moved on to what ever it is they have planned after they sell their home. Go get that dream home before someone else does, or you will look back in 3-5 years and wish you had.

Monday, December 08, 2008

Interest Rates In Relation with Bond and Stocks This Week

0 comments reported some good news to start the week off if you are looking to refinance your home or buy a home for the short term. The report went like this, "Monday's bond market has opened in positive despite early stock gains. The stock markets are starting the week off strong with the Dow up 276 points and the Nasdaq up 45 points. The bond market is currently up 7/32, but we will still see an increase in this morning's mortgage rates of approximately .500 of a discount due to weakness late Friday."This means that we can expect this weeks rates to start off on a positive, but for the remainder of the week and month there are other "targets" to watch to see where they will go from here.
The closing commentary at followed up to give us the best expectations if you were unsure what might come of interest rates for the remainder of they week. They said, "This week is moderately busy in terms of the number of economic releases scheduled for release. There are four on the agenda but two of them are considered to be very important that can heavily influence the markets and mortgage pricing. In addition, there is a 10-year Treasury Note auction Thursday that may hurt or help boost bond prices, depending on how strong of a demand there is in the sale. Since all of the data is scheduled for release Thursday and Friday, the most movement in rates will likely be the latter part of the week.

There is no relevant economic news scheduled for release today, tomorrow or Wednesday. The first data is October's Goods and Services Trade Balance report early Thursday morning. This report gives the size of the U.S. trade deficit, but it is the week's least important release. It is expected to show a $54.0 billion trade deficit. Unless it varies greatly from forecasts, I don't expect it to affect mortgage pricing.

Overall, expect to see a pretty volatile week in the financial markets and mortgage pricing with the most movement Thursday and Friday. Friday's Retail Sales and PPI reports can cause a great deal of movement in rates. Due to the expected volatility, I am holding the current lock recommendations. However, please maintain constant contact with your mortgage professional if you have not locked an interest rate yet."

Wednesday, December 03, 2008

The Lynch Theorems...Title Inspired by Matt Stigliano of Exit Realty San Antonio

Geometry is a very under rated mathematical style that is not used enough in the Real Estate industry. It can show "proof" that it's make up and natural understanding can be the utmost variable when deciding between the given. Are you math enthusiasts following me here? snicker snicker

With the given example here you may be able to decide what is the best option when deciding where to move in reference to commute diffence and priorty between 3 locations...Home, Work, Weekend Home, and family.

Option #1

Drive distance from work to home is EQUALLY important as the drive distance from home to your family, and not as important as it is from home to your weekend home. This scenario would be most accurately realized in an isosceles triangle where two of it's sides are equal giving you angles of 45, 45, and 90 degrees.

Option #2

Drive distance from work to home is more important than the drive distance from home to weekend home and home to family. This scenario would be most accurate realized in an right triangle where one of it's sides is shortest, the next is a comfortable middle length between the shortest and longest, and then you have of course the longest...this would be illustrated when the triangle angles measure 30, 60, and 90 degrees.

Option #3

If it is important to you that all driving distances be equal because you are having emotional struggles in determining priority in one drive over the other, you might settle for the equilateral triangle used by most Americans that can't very well execute the ever important, executive decisions. In an equilateral triangle, all sides measure the same and all angles are 60 degrees.
Once you've drawn your triangle, list your three givens (work, weekend home, family) at the three corners, and the deepest middle space inside the triangle will be where you want to move in your next home.

This geometrical use in deciding your perfect home buying location has the power to drive America out of this recession and mortgage downward spiral all on it's own.

Hope you have enjoyed this read as much as I did in writing it. (:

What Are Mortgage Rates Going to do In the Short Term

In a report yesterday, mortgage guru at wrote the following.
The recent bond rally has driven bond prices higher and mortgage rates lower, however, I am concerned that we may see an increase in rates before they fall much further. The rally creates a situation where bond traders may sell holdings to capture profits from it. If there is a concern in the market whether bonds can improve much more, that move may happen sooner than later and can lead to a spike in mortgage rates. Therefore, I strongly recommend that you maintain contact with your mortgage professional if still floating an interest rate because rate usually move higher much quicker than they improve.

If I were considering financing/refinancing a home, I would....
Lock if my closing were taking place within 7 days...
Lock if my closing were taking place between 8 and 20 days...
Lock if my closing were taking place between 21 and 60 days...
Float if my closing were taking place over 60 days from now...
This is only my opinion of what I would do if I was financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

Monday, November 24, 2008

Motivation Frisconians?

Today was just a good day to post a positive feel post. It's cold outside, and I can hear the wind whistle by the window...AND it's Monday. On days like this, I know that purpose and pro action needs a little prodding, so I search out for extracurricular remedies to gather my energy.
--"Attitude is the hinge the door of your destiny swings on." (by Keith A. Craft)...that pretty much means to me, since we actually have control of our own attitude, we control our own destiny.
--Another one from Keith Craft goes like this, "The happiest people on the Earth are not people who don't have problems, but they are people who have learned to solve problems."...
you know, we all have those dear friends that can spend hours on hours talking about their problems and who is responsible for them, but they aren't. The weird thing about it for me is, as I listen to those problems, I think back in my "database of life" and it becomes conscious to me that I at one point shared those same exact problems. The difference is, I also become conscious to the fact that I remember what sacrifices I made in the past that I didn't necessarily think I had the energy, time, or even the responsibility to make, and I chose to make the sacrifice investment for the future to change my plan or activitiy for that scenario and I no longer have some of those problems...I decided to own them, and therefore did what it took to solve them. I STILL HAVE PROBLEMS, AND I STILL CHOOSE NOT TO OWN SOME OF THE PROBLEMS AND AVOID SACRIFICE, BUT I THANK GOD FOR MAKING ME HUMAN...AFTER ALL, WE ALL HAVE THIS ISSUE AND SOME CHOOSE TO BE MORE ACTIVE IN THEIR OWN LIVES THAN OTHERS AND I LIKE TO THINK I AM MORE ACTIVE TOWARD MY DIRECTION OF PROGRESS, NOT PERFECTION.Have a great week and best wishes for youR Thanksgiving!!!

Tuesday, November 18, 2008

100% Financing, Zero Down Payment, Texas Home Buyers

If you would like to see what your AMI (Average Median Income) per your location is to see if you qualify for this loan, please click on the following Hyper Link. Most cities in and around the Dallas Area are $68,000.
For more questions, call me at 469-450-(BRAD)2723
Median Income Eligibility Indicator site.

Monday, November 17, 2008

Irving TX Condo For Sale ---$86,000 or best offer--- 2 bed 2 bath 1167 Square Feet

Condo Investment Opportunity Irving Texas: Buy Directly From Owner...Easily Cash Flowed
Irving Texas Condo for Sale: 4517 N. Oconnor Rd. #1135

2 bed, 2.5 bath...1167 Square Feet...Pergo Wood Floors...patio...balcony...gated community with 24 hour on duty security guard...2 pools on out and dryer INCLUDED!!! REFRIGERATOR INCLUDED!!!

As an experienced Mortgage Consultant of 6 years in the area, it was my first advisement to list the condo with a pro/Realtor, but after having it listed through one full term in a listing agreement with a Realtor, the buyer is determined to try to sell this buy owner before listing it again.

This Condo is in North Central Irving in an area highly populated with local executives. The owner bought the condo years ago on a 15 year note, and now that they have married and moved into a new home in Highland Village Tx, they do not have the interest in refinancing into a 30 year note to turn this property into an investment cash flowing property. They are highly motivated and ready to have only one mortgage.

Irving is noted in numerous Real Estate Blogs and media as an area to live with great expectations of equity appreciation opportunities in the near future. Buying a condo in Irving Texas can be an easy place to manage Real Estate portfolios do to the high demand renters provide in the area. This condo location is 2 short minutes from highway 114 that intersects I35, the highway that runs through the heart of downtown Dallas. Also attractive about the location is it's location directly across from Las Colinas Country Club and a block from the prestigious Four Seasons Hotel and Resort.

I am putting this Blog as a favor for Jarod, as he is a close friend of mine for over 20 years. For inquiries on this property, call 469-441-1357...ask for Jarod Farda. Jarod grew up in Irving Texas his entire life and can answer any questions about the area from experience.

Call Jarod at 469-441-1357 or email him at or

Call Jeannie at 432-553-2818 or email her at

If you are interested in financing for this property, call me Brad Lynch at 469-450-2723 or email me at

Monday, November 10, 2008

Land America Financial Group, Inc Purposes to Be Acquired by Fiedelity National Financial

One day after postponing its third quarter earnings report, title insurer LandAmerica Financial Group, Inc. (LFG: 8.70 +83.16%) said Friday morning it would be acquired by competitor Fidelity National Financial Inc. (FNF: 11.23 +34.49%), the first major merger/acquisition to hit the title insurance side of the business as a result of the nation’s housing crisis. The all-stock deal is valued at about $128.4 million, according to a statement by the firms ahead of market open on Friday; LandAm shareholders will receive 0.993 shares of Fidelity National stock.
The combination will create a behemoth title insurer, controlling roughly half of the entire market, and allowing Fidelity National to finally leapfrog past The First American Corp. (FAF: 23.05 +18.14%) in market share. Together, LandAm and Fidelity National represented 46.3 percent of the market during 2007.
The deal comes amid speculation that LandAmerica may have been in trouble, and the particulars of the announced deal make it clear that the rumors were true: FNF subsidiary Chicago Title Insurance Co. will provide a $30 million credit facility to LandAm “as a means of potential additional liquidity,” according to a press statement. Advances under the facility are secured by $155 million in par value of auction-rate securities held by LandAm, Fidelity National said.
“The unprecedented credit freeze and depressed real estate market have negatively impacted our business to the point that it has become increasingly difficult for LandAmerica to remain an independent public company,” said LandAmerica chairman and CEO Theodore Chandler, Jr. Fidelity National chairman William Foley, II said in a statement that the merger should bring at least $150 million in operational costs savings between the two firms, but did not specify how many jobs would be lost through the merger. LandAm’s Chandler will join Fidelity National’s board of directors as a vice chairman when the deal is complete, both companies said.
No expected date was provided for the merger to be completed.

2009 Fannie Mae and Freddie Mac Conforming Loan Limit

The report is out. Conforming Loan Limits will remain unchanged.

There were many families in the United States that had hopes for an increase in the the conforming loan limit. Those families with current loan pay offs near or higher than $417,000 and higher loan to values, had hopes that the new conforming limits would increase so that their Loan to Values would be accepted in the less stringent conforming guidelines. Word is out, and those families will have to wait until at least 2010 for such expectations. The report came out today as I read on Reuters , the comforming loan limit will remain at $417,000 for 2009.
For more in depth details, click on the Reuters hyper link above.

Tuesday, November 04, 2008

Prime Rate vs 30 Year Mortgage...Charted For Easy Tracking

As a mortgage consultant, we try to answer that ever expected question when the Fed moves prime, ", how is my rate affected by the rate change in prime?", but don't always have right on hand a chart. [Please see previous post at LINK for additional details regarding this subject].

When buying Real Estate, it would be easy to conclude from the information below, although the 30 year fixed rate will also drop after the Fed drops Prime, it would be rare that you had the time to wait if you are already in a contract and Prime was dropped. The 30 year rate takes a little a while to react after Prime has been changed. In the same fashion, Prime is increased and you are under contract, you can probably stand to still float a lock for 15-30 days w/out too much concern in losing ground on your rate.

Below is a chart of the past 30 + years tracking the Prime Rate and the 30 year fixed mortgage. In case it doesn't show up too clear, the blue is Prime and the orange is the 30 year mortgage. It is tracked on September of every year starting in 1971 and ending at Sept 2008.

By saving this chart on your desktop or My Documents, you can forward this chart along with your version of the explanation when they ask, "what's up with my rate now since Fed changed Prime"?

Best of luck in your home buying goals!

Saturday, November 01, 2008

Buy Condo Irving Texas: 4517 N. Oconnor Rd. # 1135

Condo Investment Opportunity Irving Texas: Buy Directly From Owner...Easily Cash Flowed (edit/delete)
Irving Texas Condo for Sale: 4517 N. Oconnor Rd. #1135

2 bed, 2.5 bath...1167 Square Feet...Pergo Wood Floors...patio...balcony...gated community with 24 hour on duty security guard...2 pools on out and dryer INCLUDED!!! REFRIGERATOR INCLUDED!!!

As an experienced Mortgage Consultant of 6 years in the area, it was my first advisement to list the condo with a pro/Realtor, but after having it listed through one full term in a listing agreement with a Realtor, the buyer is determined to try to sell this buy owner before listing it again.

This Condo is in North Central Irving in an area highly populated with local executives. The owner bought the condo years ago on a 15 year note, and now that they have married and moved into a new home in Highland Village Tx, they do not have the interest in refinancing into a 30 year note to turn this property into an investment cash flowing property. They are highly motivated and ready to have only one mortgage.

Irving is noted in numerous Real Estate Blogs and media as an area to live with great expectations of equity appreciation opportunities in the near future. Buying a condo in Irving Texas can be an easy place to manage Real Estate portfolios do to the high demand renters provide in the area. This condo location is 2 short minutes from highway 114 that intersects I35, the highway that runs through the heart of downtown Dallas. Also attractive about the location is it's location directly across from Las Colinas Country Club and a block from the prestigious Four Seasons Hotel and Resort.

I am putting this Blog as a favor for Jarod, as he is a close friend of mine for over 20 years. For inquiries on this property, call 469-441-1357...ask for Jarod Farda. Jarod grew up in Irving Texas his entire life and can answer any questions about the area from experience.

Call Jarod at 469-441-1357 or email him at or

Call Jeannie at 432-553-2818 or email her at

If you are interested in financing for this property, call me Brad Lynch at 469-450-2723 or email me at

Wednesday, October 29, 2008

VA Cash Out Refinancing, 100% and Super Low Interest Rate

Did you know that VA will now allow an LTV of up to 100% on a VA cash-out refi based on the current appraised value? This is a 10% increase from the previous threshold of 90%.

Did you know that a VA cash-out refi is considered to be any current non-VA loan, (with the exception of a Texas A6 Cash-out loan), that is refinanced into a VA loan?

Please keep in mind that even though VA refers to this as a cash-out refi, it is in reality a rate/term refi and no cash back will be allowed at closing.

How To Be Successful In Your Mortgage Career by Being Not Just Successful, but Also Valuable

Today's home buyer asks, "WHAT AM I GETTING FOR MY MONEY?"
It's my goal with every Home Loan applicant to see that I have a value from many fronts.
Clients can expect to walk away from a transaction with me and say the following about my company and my services:

I am more informed…I have greater choices…
I am more enlightened…
I am more sophisticated…
I want to know what I am paying for and what I am getting…
I can by-pass the traditional only-game-in-town lenders…
I am less swayed by marketing gimmickry…
I am more selective…
I have competitive options.

Tuesday, October 28, 2008

Zero Down Payment 100% Financing: Frisco, Plano, and Surrounding Dallas Cities in Texas

Did you think 100% financing was gone for good?

One of the major local banks in the cities of Dallas, Frisco, Plano, McKinney, and other surrounding cities has done some risk analysis and decided on a safe target market for 100% financing options.
In addition, they have chosen Service First Mortgage as one of the only lenders in North Texas to offer the loans.

Why is it you haven't heard anyother lenders or banks offering this?

Remember, Service First Mortgage was number 11 in top 25 lenders for loans originated in Dallas Fort Worth last year, and with the collapse of a couple of them, we are more near #9 on that list.
Loan volume coupled with the high integrity and high level of experience SFMC has a track record for, we are privileged to be in such a situation to be hand picked for this opportunity.

Is there a "mission impossible" type qualification necessary?

Credit Scores as low as 620 may be accepted within this new program. Debt ratios between 41% and 45% are accepted. You DO NOT have to be a first time home buyer. The income can be 140% of AMI (Average Median Income), but they do not have to use the "household income". This means that if the wife and husband make more than the 100% median income, but just one of the borrowers can approve for the home on just their income, we only have to use that income to determine if they are under the median income.

What kind of loan is it?
30 year fixed fully amortized loans

Conventional Programs

MyCommunityMortgage 97

MyCommunityMortgage 2-unit

HomePossible 97

Flex 97 ₁

Flex w/subordinate financing ₁

That means that the interest rate will be that of what the market is today for other minimum down payment loans.

Thursday, October 23, 2008

Find the Lowest Interest and the Best Business Alliance

The home buyers in Frisco, McKinney, Plano, and the cities surrounding Dallas Texas are benefiting from interest rates that are still at historical lows and patience to find the right home with the right price. Buying Real Estate right now is a great opportunity. Foreclosures are still available in large volume and if you plan it right, you can be patient and leave your "feelers" out for the next great home to come on the market for a great value. Maybe you sell your home and move into a nice apartment or rental so that you are not under the gun to hurry and find another home by the time your buyers need to move into yours. With a little patience, you may jump into a home with 15% savings from the day you close. When the market moves up in the next 3-8 years, you stand to all of the sudden be sitting neck high in equity.
To have the best luck in your home buying process, align yourself with a mortgage guy who is not desperate for business, so that you are not strategically rushed into a deal that is not the best one for you. Additionally, contact a couple Realtors and let them know you are NOT interested in rushing into a home and that you'd like to be put on a automatic email list for homes that come on the market as foreclosures, and have them make the search, subdivision, choose a square mile radius, bedrooms, square footage, age, and one level or two level home. Yes, Realtor systems can do all that for you and many successful Realtors are willing to be patient with you.
The biggest mistake many folks have in crafting such a plan is by using a family member or friend for their mortgage or Real Estate alliances, just because they think they should or will get a good deal by using them. WRONG!!! A good deal is accomplished in the negotiation experience, and the research and structuring ability of your Real Estate agent or Loan Officer, and the small dollar amount you MIGHT save on a Realtor or Loan Officer friend or family member can offer you for their services is nothing compared to the dollar value experts bring to the table as a whole.
Interview your Loan Guy and Realtor, don't ask them where they are going to cut their costs. You'll find out right away what caliber your prospective alliance measure.

Tuesday, October 21, 2008

Frisco Texas Home Buyers See Interest Rates Increase In Their Real Estate Purchase In and Around Dallas

Why do mortgage rates seem kind of high?
One answer is that in order to fund the rescue and the new government guarantees, our Treasury must sell more new Treasury securities to raise money. And the Treasury has to offer higher interest rates to sell them. On top of that, mortgage related bonds always trade at a slightly higher yield due to the prepayment and delinquency risk. Lastly, the cost of financing mortgages has increased for Freddie and Fannie due to the plan for the FDIC to back the newly issued, unsecured debt of some banks. Obviously by guaranteeing bank debt, the government is making that debt more attractive for investors, and consequently creating more competition for Fannie and Freddie when they look to sell their own securities. To compete for buyers, the mortgage giants will have to raise their own yields - and to pay for that they'll have to charge borrowers higher interest.

Monday, October 20, 2008

Down Payment Assitance and Credit Certificates

Is down payment assistance gone? No, there are plenty of areas around Dallas, Frisco, Plano, McKinney, and Irving that have available "moneys" that are qualified to use as down payment assistance with FHA loans. On Jan 1st of 2009, FHA is increasing their requirement for down payment. Don't wait if you are ready, or you'll need more down payment to might want to save that money for fix ups when you move in. The mortgage credit certificate is available too. It is more than likely that anyone buying a home for more than $100,000 using a mortgage credit certificate will receive $2,000 cash over an above what you normally get back at tax time, for the first 8 or more years you own your home, and continue to get money for every year you own that home. THAT'S AN AWESOME DEAL. Call me lets get you set up on that.

Hope Is Alive In Dallas Texas, Frisco, and the Surrounding Cities Real Estate Market

Over the weekend Kenneth Harney gave a very detailed outline of what foundation has been set to secure the Real Estate Market, and it should make for high hopes to Dallas and the surrounding cities, especially in the once top ranked booming Real Estate market in Frisco Texas. The question is asked over and over today, "Can you still get a home loan with less than 20 percent or 30 percent down? Or with a credit score below 720"? Harney answered the question like this:
"Absolutely. It would be a big stretch to label housing the sunny side of the market at the moment, but there's a lot more light there than in most other financial sectors."
The Real Estate market for home buyers is not dead or stagnant. There is plenty of money made available with many small down payment options, and there are even still some 100% financing options in specific areas...and the income eligibility is not as picky as many would think.
Harney noted that 90% of loans in America today are made through FHA. The interest rates are still low, and the underwriting isn't necessarily all that tough• Despite the global financial system's quakes, mortgage rates remain low by historical standards. Home prices, pushed by foreclosures and short sales, have rolled back to 2003 and 2004 levels or lower in many of the former boom markets. As a result, growing numbers of buyers are coming off the sidelines, making offers and writing contracts.
David G. Kittle, president and chief executive of Principle Wholesale Lending and incoming chairman of the Mortgage Bankers Association, said "the mortgage market has never shut down" despite the global financial crisis.Matt Vernon, a national retail mortgage sales executive for Bank of America, said, "we've got more than enough liquidity" to handle mortgage demand. "We are open for business." Most of the bank's production is now funded through the FHA, Fannie and Freddie.
If you are looking to buy, don't put it off for the simple fact that you assume you can't get a loan. Decent credit scores, typically 600 or better, means that you have plenty of loan opportunity. Don't give up on your dream of home ownership just yet.
Make an appointment with your mortgage guy to meet at Starbucks and talk about your options. See you there.

Friday, October 17, 2008

Buying a Home? Did You Know Interest Rates Spiked at Historial Measures

It's old news that are market is unpredictable at best. That being said, the few home buyers that are active have enjoyed the recent low interest rates and watched them inch lower for the past 3-4 months. This past week, we saw the mortgage rates spike on the grandest of scales. Rates move and expect to continue moving up, per the experts, nearly a whole 1% in recent weeks. It's important you know this if you have been expecting a certain monthly payment but have not yet locked in your rate. The monthly payment for example on a $200k home would be $70 a month more this week and 2 weeks ago with the spike in rates. Stay in touch with your loan guy or call me if you have questions.
As far as the affect that this could have on Real Estate here in Texas, for Frisco, Dallas and surrounding cities, maybe it forces the sellers to lower their listing prices, or maybe it inserts more fear in the already tentative buyers, and they stop shopping in hopes to see a better opportunity in mortgage rates in the coming months. Cross your fingers...I am!

Thursday, October 16, 2008

Texas, and Frisco Home Buyers, Motivational Strategies and Thoughts for a Better Life

For the past 6 years working as a self motivated Mortgage Consultant in Frisco Texas, and targeting a goal where 90% or more of my business comes by referral, I have had to search and find what "gets me going in the morning" to meet that goal. In doing this, I started a Word Document titled, "Motivational Strategies and Thoughts for a Better Life".

In this document I collect motivational phrases, words and phrases that help express myself in a unique way, and strategies that a leader can use to self motivate and maximize potential. Transferring information to longer term and permanent memory works best for me by writing them down. So, I've written today in my word document and writing it here to share and double up on my writing it down for permanent memory. Here was today's record. I hope that it can help any one person reading it today as well.

"Try not to become a man of success, rather, a man of value." Albert Einstein

• Try to understand before you are understood

• Be impressed before you become impressive

• Be interested before you become interesting

• Listen before you are listened to

Wednesday, October 15, 2008

McKinney, Allen, Frisco, Prosper, Plano, and Dallas Insurance Needs...MET for Texas Home Buyers

Today it is more important that ever that you not only find the right price, but also find the right Agent that cares about you and your family like a father would his own. Rodney Mouton, my uncle, has a family and knows what it is like to insure the people he needs in life...his family. Give Rodney a call and you will see that after finding you the right company with the lowest rate, he will ask you the thought provoking questions that will help you decide if your chosen policy covers all the important people and possessions you want covered.
Rodney Mouton Insurance Agency

6136 Frisco Square Blvd. Suite 400

Frisco, TX 75034

Phone: 972-542-1388 Fax: 214-705-8376 Email: Cell: 974-439-7888

After 10 years of being a captive agent of AllState™, I realized my clients would be better served through an independent network rather than a captive network. Captive agents represent only one company and therefore can only offer one solution. As an independent agent I can offer clients the options they expect. It took almost 10 years for me to realize how serious this reality is for an agent who is really interested in his client getting the best the market has to offer. I would not pay more for less and do not expect my clients to. So now I offer the right products from the companies who can best deliver the value my clients require.

Most carriers today use insurance scoring as their major component to determine your cost of insurance. The insurance score will usually be the biggest factor in determining your client’s rate and because of that it is really impossible for us to promise your client any rate until we have ordered your clients insurance score. It is also important to know that each company has its own proprietary scoring system which offers them the best system to get the best price to their target market. Their scoring system can change in relation to their market appetite. An Insurance score and a credit report will sometimes have little in common. In that the good credit report does not always mean the best insurance score. It is part of our job to find which insurance scoring system matches your client’s credit profile.

Our major carriers are Safeco, Hartford and Traveler’s. Below I have a table that shows rates based on a new home with a favorable insurance score, auto-discount, claims-free and alarm discount. I caution you to not promise a client a premium from the chart based on their credit report. Their insurance score and other factors will make a difference that you do not want to find yourself spending your valuable time trying to explain. We will do that for you. We just want to provide you with some idea of what we can offer.

Why would you want refer the Mouton Agency to your clients? We understand that happy knowledgeable clients refer more business. We like referrals. We work for our clients not an insurance company. I promise you will never regret sending a client our way and your closing will never be delayed due to a lack of effort on our part. Integrity is the foundation of our business and it is in the word of God that we discovered integrity. My office is open Monday-Friday from 8:00 to 5:00. Please feel free to call my cell phone outside of office hours for assistance.

I would like to form relationships with others who have a similar approach and understand how this will provide us with a never ending supply of clients for life. I hope you will be inclined to call.

Dallas Home for Sale: 10141 Fieldfare CT, Dallas, TX 75229


Listings as of 10/15/08 at 7:37am Page 3
MLS#: 11083713 Active 10141 Fieldfare CT Dallas 75229 LP: 410,000

See Additional Pictures
Type: Single Family Cnty: Dallas Low:
Subdv: Midway Hills Map: 0024 /P /DA Orig LP: 410,000
Area: 16/8 Lot: Block: Will Subdivide:
Parcel ID: 00000538787220000 MUD Dst: No Mlt: No


Beds: 4 SqFt: 2682 TAX Lst$/SqFt: 153
Full Baths: 3 Levels 1st: 2nd: 3rd: Bsmt: HOA: Voluntary
Half Baths: 0 Levels 1st: 2nd: 3rd: Bsmt: Dues: 15.00


Living 1: 27 x 19 L:1 F. Dining: 11 x 11 L:1 Mstr BR: 18 x 13 L:1 #Fireplaces: 1
Living 2: 23 x 21 L:1 Breakfast: 9 x 8 L:1 Bedroom2: 11 x 11 L:1 #Living Area: 2
Living 3: 0 x 0 Kitchen: 9 x 9 L:1 Bedroom3: 11 x 13 L:1 #Dining Area: 2
Study: 0 x 0 Other Rm: 0 x 0 Bedroom4: 12 x 12 L:1 Hndicap Amen: No
Utility: 8 x 5 L:1 Other Rm: 0 x 0 Bedroom5: 0 x 0 Yr Blt: 1971 / Pre

School District Dallas Covered Parking: 2 # Stories: 1
School Type 1: E Name: Walnuthill Bus: Garage Space: 2 Security System: No
School Type 2: M Name: Cary Bus: Garage Size: 20 X 20 Pool: No
School Type 3: H Name: Jefferson Bus: Carport Spaces: Acres: 0.370
School Type 4: Name: Bus: Lot Dimensions: 112X159

ASI Not Assumable BBF Split Bedrooms CON Brick ENG 12 inch+ Attic Insul EXF Gutters
EXF Patio Open EXF Sprinkler System EXF Storage Building FLR Carpet FLR Ceramic Tile
FND Slab FRP Wood Burning HOU Single Detached HAC Central Air-Elec HAC Central Heat-Elec
INF Cable TV Available INF Paneling INF Wet Bar INF Window Coverings KOT Tile Countertop
KEQ Convection Oven KEQ Cooktop-Electric KEQ Dishwasher KEQ Disposal KEQ Double Oven
KEQ Oven-Electric KEQ Water Line to Refrg. LTD Cul De Sac LTD Heavily Treed LTD Interior Lot
LTD Landscaped LTD Large Backyard Grass LTS Less Than .5 Acre PAR Detached PAR Garage Door Opener
PFN Cash PFN Conventional ROF Composition SPR Game Room STU City Sewer
STU City Water STU Concrete STU Curbs STU Sidewalk STY Ranch
FEN Wood UTR Dryer Hookup-Elec. UTR Washer Hookup

Directions: From 635, south on Midway to Killion. Right on Killion, left on Fieldfare Dr. right on Fieldfare Court.

Marketing Remarks: Wonderful 4 bedroom, ranch on huge cul de sac lot in Midway Hills. Great quiet neighborhood. New roof and carpet in 8 08 New neutral paint throughout the home 7 08 Close to 5 of the top Private schools in Dallas. Priced to sell quickly. Bring your buyers, don't miss this one!

LO: Keller Williams Realty Preston LA: Richard K Carlucci

House for Sale in Wylie: 1311 Auburn Dr. Wylie TX 75098


Listings as of 10/15/08 at 7:37am Page 2
MLS#: 11043557 Active 1311 Auburn DR Wylie 75098 LP: 154,990 See Map

Type: Single Family Cnty: Collin Low:
Subdv: Birmingham Farms 03b Map: 0662 /R /DA Orig LP: 154,990
Area: 50/1 Lot: Block: Will Subdivide:
Parcel ID: R836700p00301 MUD Dst: No Mlt: No


Beds: 3 SqFt: 1844 TAX Lst$/SqFt: 84
Full Baths: 2 Levels 1st: 2 2nd: 3rd: Bsmt: HOA: Mandatory
Half Baths: 0 Levels 1st: 2nd: 3rd: Bsmt: Dues: 420.00


Living 1: 17 x 14 L:1 F. Dining: 12 x 10 L:1 Mstr BR: 14 x 13 L:1 #Fireplaces: 1
Living 2: 0 x 0 Breakfast: 10 x 10 L:1 Bedroom2: 12 x 11 L:1 #Living Area: 1
Living 3: 0 x 0 Kitchen: 12 x 12 L:1 Bedroom3: 12 x 10 L:1 #Dining Area: 2
Study: 13 x 11 L:1 Other Rm: 0 x 0 Bedroom4: 0 x 0 Hndicap Amen: No
Utility: 8 x 6 L:1 Other Rm: 0 x 0 Bedroom5: 0 x 0 Yr Blt: 2004 / Pre

School District Wylie Covered Parking: 2 # Stories: 1
School Type 1: E Name: Dodd Bus: Garage Space: 2 Security System: Yes
School Type 2: J Name: MCMILLAN Bus: Garage Size: 20 X 20 Pool: No
School Type 3: H Name: Wylie Bus: Carport Spaces: Acres: 0.210
School Type 4: Name: Bus: Lot Dimensions:

ASI Not Assumable BBF Garden Tub BBF Separate Shower BBF Walk-in Closets CON Brick
FLR Carpet FND Slab HOA Management Fees HOU Single Detached HAC Central Air-Elec
HAC Central Heat-Gas INF Cable TV Available KOT Breakfast Bar KEQ Built-In Microwave KEQ Dishwasher
KEQ Disposal KEQ Freestanding Rng-Elc KEQ Water Line to Refrg. LTD Interior Lot LTD Landscaped
LTD Large Backyard Grass LTS Less Than .5 Acre PAR Attached ROF Composition SPR Library/Study
STU City Sewer STU City Water STU Concrete STU Sidewalk FEN Wood
UTR Dryer Hookup-Elec. UTR Separate Utility Rm UTR Washer Hookup

Directions: From 544 go N. on 1378 (Country Club) to Park. Right on Park to Mobile, left to Cahaba, left on Cahaba to Auburn

Marketing Remarks: Terrific, barely lived in home for that first time homebuyer or downsizing couple. Open floor plan, clean with lots of room in the backyard. Interior paint July 08. Take your pickiest buyers to this one, it is immaculate!

LO: Keller Williams Realty Preston LA: Richard K Carlucci

Tuesday, October 14, 2008

Romo May Need to Buy a New Home Outside of Dallas Soon

NOT REALLY! I like Romo. It is unfortunate that he has done so well so soon. He has really been a little raw the whole time but he's been able to glisten with a couple signature throws that make him look really well, like the seam route to Jason Whiten. That throw is decieving easy to throw because it's always when Jason is matched up on a slower linebacker who has had to turn their back and run to keep up with Jason and he can't see the ball coming to knock it down even when he has good coverage on Jason. Romo has a LOT of rough edges and I think that they are starting to come out right now. Don't get me wrong, Romo is a Pro and good at what he does...he just has a lot to clean up in his game.
Romo has never thrown the ball away when under pressure and is very Favre like in throwing an interception because he can't settle for throwing it away or taking a sack. If he can keep his head on straight for another year or two and make progress in controling his competitive spirit to make better decisions under pressure, he could be a stud. Otherwise, as he continues to struggle under pressure, his confidence will chip away and he'll become a Curt Warner type. Warner won the Super Bowl and returned with some poor games that changed the face of his expected SUPER career. Warner had to go find a mortgage in a new city for that.
This IS the point that makes or breaks Romo's future, and all elite QB's have this point.
I think there is a VERY good chance that Brad Johnson gets in there and provides that older veteran leadership in the huddle that some of those big lineman need, and we do well under Johnson. We'll either spread out our offense and hit quick hitting plays to recievers to hold blitzers accountable, or we'll spread out and release our backs for swing passes that also force teams to limit blitzing or zone blitz where now they have a defensive end trying to cover or keep an edge on the back out of the back field...that is a match up to take advantage of. The other option to help Brad Johnson is to have Jason Whiten and a back in the back field to pick up blitzes and which ever one doesn't have a blitz responsibility will release from the back field for a 3-5 yard dump in the middle...that forces safeties and linebackers not blitzing to stay in the middle of the field to keep that dump in front of them and opens up quick slants where linebackers can't drift into hook zones and also leaves the flag routes for Eldorado Owens to get away from double coverage with the safety overlap. While that safety watches that back out of the backfield to make sure he doesn't release deep on the linebacker (linebacker is never expected to "run with" a back on a vertical by himself) and feels some comfort because in his perifial vision where the wide out is coming at him and therefore that safety's feet go into cement and when it's just too late, that wide out turns it back to the sidelines and the safety is behind on the read and makes it over there too late on the overlap. That's my vision of the best game plan...we'll see if they do either. Note: The Cowboys have been very reluctant to use the back as a reciever from the back field much this year, and it hurts them.

Tuesday, October 07, 2008

Can You Approve at First Blush To Buy a Home In Frisco Texas

First a disclaimer. This is a simple and easy way to know. Yes, there are other options and this and that, but this is a quick "how to tell" if you are talking to a good buyer.

If you have 700 or better credit scores and have 5% down payment and money for closing costs, your a stud buyer. Yes, loans still allow for seller contribution for closing, but lets work that out when we have to.

If you have under 700 and even more specifically, under 680, you'll need FHA financing if you are looking for low down payment are going to need 10% down payment with those scores probably outside of FHA, and VA. Yes, there are a couple places you can find conventional financing with 5% down if you have under 680, but it's time for "THAT" buyer to save for 10% down payment and have a better loan availability to choose from.

If you have 610 or higher and only have 3.5% down payment, it's likely you can get FHA financing, but you need to submit all your income and assets to the lender up front and give up your whole story so they can run it through their system or get an underwriter to look at it first.
I don't know if any of you readers have seen the cartoon movie, Cars, but this is where it stops. "Welp, G'NITE" as all the Cars drive off and leave Towmator in the night alone...he's afraid of the ghost light. Yeah, that's it. It's easy and simple these days isn't it?

Monday, October 06, 2008

Presley's Promise: Calling On Frisco, Plano, and McKinney Mortgage and Real Estate Professionals

We need help to make it possible for needy families to continue to get World Class help for their Children at Scottish Rite Hospital. One of my dear friends in the Title Business in McKinney TX had a daughter born a couple years ago that has had operations and other services by Scottish Rite and he wants to help raise money for the next needy families. He has had some last minute players that can't make it, and sponsors that fell through. Any help you can provide would be great. Don't hesitate to call me or email me if contacting him directly from the flyer picture below doesn't work. My number is 469-450-2723 and my email is

My friend Brian Hazlewood and his wife Brandi need help for their daughter Presley who was born with Arthrogryposis (a muscle, joint and tendon disorder) that also caused her to have severe bilateral clubfoot, curvature of her left wrist and bilateral hip dysplasia. She has attended Texas Scottish Rite Hospital (TSRH) for Children since she was two weeks old. From the age of two weeks to twelve weeks she went to a clinic weekly for manipulation of her feet and to change her casts that went from toe to upper thigh and at one point she had a heel lengthening procedure done as well. At the age of twelve weeks, it was determined that the casting was not working as well as we would have hoped, and we switched to the Ponseti Method, which is manipulation through therapy, taping and splinting of the feet. They first attended appointments everyday and then they started to spread out to further appointments. During this process, in February of 2006 she had her first surgery at TSRH to try and fix her hips. For three months following the surgery she was in a half body cast from her chest to her toes, also known as a spica cast. After the cast was removed, she went back to therapy in the "baby room" for her feet. Then in October of 2007 she had her second surgery with TSRH which was her foot surgery. Following this surgery she wore full leg casts with pins in place through her heels for six weeks, then had a cast change to smaller casts in which she wore for four weeks, and then moved to orthotic splints that she continues to wear today to keep her feet in place. She started walking with the help of a reverse walker at the age of 18 months, and continued to use this until she took her first steps in January of 2008. She now walks on her own and is also in a gymnastics class for special needs kids.

Presley's Promise: Is a charity golf tournament that Brandi and Brian are putting together for their daughter to give back to Texas Scottish Rite Hospital in Dallas. She has been going regularly since birth and will continue going most all of her life as a child. Scottish Rite is a great organization and we feel we would not be where we are today without their help. It's truly a gift for us to be a part of such a great place. **************************************************************** Update***** We are looking for 72 golfers and as of today I have 56. We are also wanting to get 18 hole sponsorships and I'm sitting at 14 right now. All the other sponsorships are now full thanks to our boy Scotty Hoyes on the Beverage Cart! That a boy Hoyes! PRIZES***** 1. Best Dressed Golfer............I'm going with Tony A. on this one. 2. First Place 3. Last Place................Probably me. 4. Hole In One/Closes To Pin 5. Longest Drive 6. $5 Raffle tickets to be sold before and after golf for the drawing after lunch. We have some very nice donations to be given away. The more tickets you buy, the better chance you'll have to win AND it's more money for Texas Scottish Rite Hospital!

Checks payable & mailed to: Presley Hazelwood @ 802 Cedar Street. McKinney TX 75069. OR Call Brian

at 214-402-2281.

Friday, October 03, 2008

Frisco Home Buyers Dependant On Election: Vote? McCain or Obama

Politics has never kept much of my attention until this year, and mainly because of the terrible fix I see the Frisco Texas families in on a day to day basis as I work within the mortgage industry here. When I ask my dad, because that's just what I do in such situations, "dad, who are you voting for?", he replied "I'm just not going to vote". Of course, I needed to to know why, and when I asked he told me that he has seen all the U Tube videos, and the forwarded emails of Barrack not putting his hand over his chest in front of the flag, and heard the chopped up speeches that contradict the Christian religion, but on the other hand does not really agree with the resolutions of McCain. Inside as he was explaining this, I had a little being inside me screaming, "me too man, me too". "Since I can't decide to vote FOR Barrack, because I'm not 100% sure yet of his stance on my religious values, and I completely do not see the leadership and facts w/in McCain's plan, I just don't have the facts to commit to a vote myself. Although I will make a decision and vote.

Being in the mortgage business during such a time of economic turmoil, I have been pulled into the media and politics a lot more than the past, and I've enjoyed makes me feel more responsible as a citizen of the good ole U. S. of A. I have a hard core interest in what is going on now. Even after my attention has elevated and I'm hearing both sides and all, I am just as "in the dark" now as I was in my college days when I only knew what I saw on a billboard or as I tripped over the front page Headlines of the newspaper as I thumbed quickly to the sports page. Politics is a frustrating thing. Palin talked about the $5,000 credit McCain has planned for Americans if he becomes President, and Biden replied about the "bridge that goes nowhere". That hits home to me more than any other thing, as far as intentions that McCain has. Is that just an effort to "buy" votes? Giving America a $5,000 tax credit appears to me as just a "feel good", or a band aid, but it has no real long term resolution. I REALLY liked Joe Biden's point last night following that comment and many others about Barracks approach, I like Barrack's leadership, I like his facts also. On the other hand, what means more to me than anything else, I am not sure of where he stands with his maker, Jesus Christ.

Why doesn't Palin and McCain's "camp" bring up in their ads and commercials about Barrack not putting his hand over his heart during the National Anthem? Why don't they bring up the religious controversy we see in email and U Tube all the time?
I have to pray about this, and pray, and pray, and then I have to make a decision. Right now, I'm only voting Against Obama for spiritual reasons, and not necessarily FOR McCain, and I'd like my vote to be FOR someone rather than a settlement vote.

Am I the only person hoping that all the trash we see on Barrack is falsified information meant to mislead me, so that I can comfortably vote for the person who has the facts straight?
As a disclaimer, I'm NOT a political preacher of sort. I am an open mind trying to figure out what is best for me, my family, the families I represent in the Real Estate and lending world here in Frisco, and my country. This message is not meant to influence anyone's vote in anyway. Understanding how to best commit to my own vote is what I'm looking for.

Tuesday, September 30, 2008

100% Financing, No Down Payment, USDA Loan for Chameleon Lending, and the Chameleon=aire

Lets step away from the so controversial "Bailout" talk for a minute. This is an industry for Realtors and Lenders that are willing to change right now. As water runs from a wide space to a tight space, it changes very quickly to meet it's new boundaries. Everyone in the Real Estate business knows that the history of our industry is UP and DOWN. As the Real Estate boundaries change, so must the contents w/in it...that's us Realtors and Lenders. There is very few people left with large down payment. There are many more buyers out there that need 100% financing, but can't get it, that only 2 years ago would have had no problem. There is still 100% no down payment home loans in Texas, Dallas, Frisco, and what ever other areas. VA is 100%, USDA Guarantee Rural is 100% and allows the buyer to have the seller pay closing costs over the amount of the appraisal...yeah! It's our job as lenders to decide which families are disciplined enough to get into a home that is leveraged by a 100% loan, and also that the home is not in a risky area that might depreciate quickly so the home owner couldn't sell if he needed to.
As a Personal Mortgage Consultant, I feel that it is my duty to my clients and my Realtor alliances to be a chameleon lender right now and as week to week we see new FHA guidelines, conventional Mortgage Insurance changes, and all the other changes we are seeing happen so fast. I believe that if the Realtor or Lender in this market can target the right places with the right "tools", they will be a chameleonaire and find success.

Friday, September 26, 2008

Washington Mutual Bust, Todays Interest Rates


The Federal Deposit Insurance Corporation or FDIC seized Washington Mutual and sold the thrift's assets to to JP Morgan Chase. This is one of the largest bank falls in our history. Some said pitfalls that WAMU ran into that caused this issue was their involvement in the subprime world, and even more the "option ARM". In case you are not aware of what the option ARM is, I'll tell you. The Option ARM was a popular loan in the California area where appreciation was blasting upward so fast that you could stand to buy a home that negatively amortized because the appreciation "outran" the negatively amortizing costs of interest. In the Option ARM, you had the option to make a monthly payment that was less than an "interest only" payment. Let me dig in a little deeper to explain. In this lowest payment option they gave you, your monthly payment had $0 money going to principle, and only a portion of what you owed the lender in interest monthly was paid. This means that the remainder of what you owed the lender in your monthly interest went back on top of the loan...therefore increasing your loan amount every month. In other states where homes weren't appreciating so fast, and eventually California, buyers would get into a home with this loan, or refinance using this loan because they couldn't afford the monthly payment they were currently paying, and the loan amount would eventually get to an amount defined in the loan details that said they could no longer make the lowest payment anymore, and then they would be forced to pay the next lowest payment option in that program which was the interest only payment that they couldn't afford int he first they eventually foreclose.
Today was one of the first interest rate "betterings" in over a week. The mortgage interest rate market today was a result more of the reaction of the bailout and economic news rather than the economic reports that were issued at any point this week. Scary news with such a large bank falling. What will our economy and banking look like in the coming year? Really scary!

Wednesday, September 24, 2008

Banker 3% Down Payment for Conventional Loans

RMIC is a mortgage insurance company that makes it possible for families to put down as little as 3% on a conventional purchase or refinance. Without mortgage insurance, lenders won't risk one loan that equals to 97% of the total purchase or appraised value amount of a home. RMIC just announced that they are not going to issue their mortgage insurance with broker lenders or wholesalers anymore starting November the 1st. This is another positive for those bankers out there. The Release Notes from RMIC on the 15th read exactly as, "Loans with LTV/CLTVs of 95.01% to 97% may only be originated through a lender's retail channels (i.e., broker originated and wholesale loans are ineligible). In order to be considered a retail loan, the loan must be closed and the MI ordered in the name of the originating lender, by that lender's personnel. The minimum representative FICO required for insurance on loans over 95% LTV/CLTV will remain 720 as stated in the August 27, 2008 release notes."

Tuesday, September 23, 2008

Converting Existing Home to Rental to Qualify for New Purchase

Assistant Secretary of Housing for FHA, Brian Montgomery, announced a new plan to govern against the "buy and bail" issue so prevalent in our industry today. Recently, FHA and others in the mortgage industry have observed an increasing number of homeowners who have chosen to vacate their existing principal residence and purchase a new residence. Brian suggested that this was occurring more frequently now because of rising costs in fuel, and families were targeting homes more near their place of employment, or simply that today's market has offered so many opportunities for great deals that they were taking those opportunities and bailing on their current home.
The new "temporary plan" will determine that the homeowner can afford both mortgages without rental income or that they stand in equity depth on the current home that they could easily sell it rather than default if they couldn't rent it.

There are two exceptions to this new temporary plan by FHA:

1. When a homebuyer is relocating with a new or current employer to an area recognizable to FHA as a commutable distance. In that case, the underwriter will use an executed lease agreement of no less than 12 months from day of close, and verification of a security deposit and/or first month's rent was paid to the homeowner to determine satisfactory offset of rental mortgage payment is actual.
2. The home owner has a 75% or better current Loan-to-Value in the current home determined by a residential appraisal dated no more than six MONTHS old, or by comparing the unpaid principle balance to the original sales price of the property.

Friday, September 19, 2008

Government Makes Ends (profit) AND Helps Banks With Toxic Mortgage Assets - Title Inspired by CNN Money

Ok, for the Layman's terms...that's how I "roll". I put it in terms YOU can understand.

Govie (Government, Washington, Uncle Sam, etc...) has got a plan. Treasury Secretary Henry Paulson (money organizer of Government) has suggested that Govie buys the "toxic" mortgage assets from American banks at a discount. This means that the banks can unload their risky mortgage assets to the government for less than what they are worth, but expectantly better than what those assets are worth after the next wave of defaults comes through...the bank can stand to loose a calculated amount, but possibly not an unforeseen/unexpected amount that might occur in foreclosure costs. This way, banks stand to have a higher probability to make it through this U-G-L-Y situation. Now, I like the idea of the plan for a simple reason. First, I'm not an economist and therefore it's my opinion. I like it because our government has taken on some major liabilities in the very recent past with the Fannie/Freddie help, bailing out big player lenders, war, etc... It's obvious that our government has the strength and money to help everyone when times call for it. A good example of a sign that might show that, is this; Me and you are not economists, so we have to look to signs of those people in our world that are, to see what confidence they have in our Govie for help. Well, when Henry suggested this option to help, stocks blew up like 400 points. If stocks are going up, that means the people who are economist and ARE in the "know", are momentarily confident. Back to why I like this. Since the government is buying these mortgage assets for "cents on the dollar", they stand to make a profit when the market turns around. You catch that? I'm ok with Govie making "ends" (ends=money or profit) on such a scenario so that they can reimburse themselves for the spending they have done to get our economy back to par, so that the next time our economy is against the ropes, they'll have the money power to dig America out again.

Oh by the way, rates terrible today because of all this. Remember, whats good for the economy isn't usually good for our mortgage interest rates. If you wonder why, search my archived blogs that explain that.


Tuesday, September 16, 2008

Aurora and Lehman Brothers Negative Media Gets You the Best Rate On Your Mortgage

Just in case you are new to the search and learning mortgage, the basics are as follows. Mortgage rates are directly related to bonds. When bonds do good, your mortgage rates drop. Today the bond market opened very positive again like yesterday...that's good for your interest rate and helps you get the best interest rate possible. Oppositely as yesterday where the bond market did SUPER and the Stock Market plunged, as the bonds did well today, the Stock Market opened with modest gains as well. Yesterday we saw a large swing in rates, but today we may only see a little swing. If we see a couple more days like yesterday and today, rates will be as low as they have been in 3 years.
Lehman Brothers, a large player in the lending world, filed bankruptcy. This makes the more risky stock investments even more risky, so the stock investors take their money out of stock and put it in and demand. So yesterday, the Dow Jones Industrial blundered a 500 point drop. Aurora is a subsidiary to Lehman and more involved in the day to day mortgage lending and servicing, so expectations of Aurora's success are no good either...they are giant in this mortgage lending world.
Paul Jackson said it in a way that makes it very easy to understand, "In lending terms, Aurora is a shell of its former self: the company, once an Alt-A powerhouse for Lehman, laid off 1,300 employees starting in January of this year as it cut both wholesale and correspondent origination channels. As recently as the first half of 2007, however, Aurora was regularly seen producing more than $3 billion a month of Alt-A mortgages." He also mentioned that they are a giant when it comes to servicing companies - ranked 15Th largest service by Inside Mortgage Finance for 2007. We don't want Aurora to tank, but if it does and you see it hit large Mortgage Media, you might expect another drop in rates.

Monday, September 15, 2008

More Major Players in Banking World Troubled Still

The Mortgage Lender, Implode - O - Meter talked about Washington Mutuals troubles today in their blog and also mentioned the Lehman Brother's filing for bankruptcy. Those are two more very large financial establishments. Since May of 2006, 1 year and 4 months, there has been reported 283 failed mortgage lenders "close their doors".
Last week, a CBS news anchor said, " there hope for the housing market? Interest rates are down...etc". This is some of the first hope I've seen on national media in some time. Cross your fingers and say your prayers. We all hope for the best.

Wednesday, September 10, 2008

FHA Down Payment Requirement Increases...Effect First Time Home Buyers in Frisco

It's been talked about and it's not necessarily brand new information, but FHA down payment requirement is going up to 3.5%. No longer will closing costs be considered as part of the amount of money they have to have involved in the transaction. They will have to have 3.5% down payment...3.5% is from the lesser of the sale price or appraised value.

Tuesday, September 09, 2008

The Housing Slump Isn't Over for Dallas Real Estate Buyers

You know, it was only a couple weeks ago or maybe even 4-5 that "Old School" (my nickname for Allen Greenspan) used a phrase similarly tothis, "the housing turn is in sight". Then he went on to say that "in sight" meant 8 months or so. I hope Old School is right! The Dallas Morning News's Steve Brown reported that the DFDub saw an 18% fall in preowned homes this August compared to last year this time. Ooops! I guess it's got to hit rock bottom before it takes a turn for the better.

Additionally, Steve mentioned that the average sales price fell by 3%. That could happen without the price per square foot falling, but I bet that is not the case.

I had a client looking to buy more rental property. She owns 4 properties now, that are all financed I might add. At the time GMAC/Homecomings was the only lender I knew of that would lend money on a borrower that had four or more financed properties, so she'll have to pay off some mortgages before we can get her another with traditional loans. Anyway, they asked me, "is this just a bad time to buy rental property"? Now I should have just said, "I'm sure if you send that question into the Rain, you'll get a number of different answers"...I didn't. I told her and I believe my answer is right on. Now is a tough time to buy. Some of the good deals aren't as good by comparison to 3-6 years ago, and if you have intentions of buying, fixing up/rehabbing, and them selling, then you probably aren't in a timely buying window. On the other hand, if you are looking to build a portfolio, like they were, then for the long term goal you are great. Where the same home 3-6 years ago that in good shape was worth $120k, and foreclosed or had foundation issues and so forth it could be sold at $108k. That same deal today in good shape is probably worth $115k and under duress sold at $106k. So 3-6 years ago you had $12k to play with for profit and costs. Today that same home in this example is only $9k. This example should show that for buying and selling, right away it doesn't look like the profit margins are as available, but since we all know that Real Estate eventually always appreciates, this example would say that buying homes for your long term rental portfolio makes this the best time to buy them. Buy low and sell high.
See more on Active Rain or me on Active Rain.

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Frisco, Texas, United States
In 2002, Brad Lynch began energetically consulting families in finding the right mortgage plan for their needs. In the beginning years, he was trained by a mentor who led by example, and this example was the epitome of integrity. Brad learned in the beginning by his mentor that many prospects may not consciously see what good intentions he has for them, do to the “wrap” many have caused w/in this industry, but always do what is right for the customer and in the end it will payoff. Integrity coupled with an energetic nature to nurture relationships, Brad has created clients for life. Through these clients for life, referrals have become the lifeblood of his business.