Equifax Hacked: 143 Million possibly affected, are you one of them?

The data breach at Equifax has many folks up in arms and rightfully so. 143 million adults in the country may have been affected by hackers. What happened?!! Sometime between May and July, Equifax one of the top three credit service providers, had thieves access social security numbers, addresses, birth dates and in some cases, security code questions. What's even more troubling, is the company's response, or lack thereof. They've not been real clear on what they're doing to handle this debacle and aren't doing us any favors by contacting us directly via phone, mail or email if we have in fact been hacked. They are currently directly consumers to a website to identify if their personal information was compromised. You can access the website on Equifax's home site, however, you will be asked additional security questions. If you're not comfortable releasing more personal information, see below.

EQUIFAX CREDIT HACK-WHAT CAN I DO?

• Pull a credit report for free through Free Annual Credit Report.  This is a free personal credit report that provides detailed information on your personal credit profile and is not an inquiry on your credit report.
• Contact your credit card company. Most credit card companies typically have a fraud alert service that will email, call or text your regarding any unusual activity. You can view your transaction history and set up alerts for purchases. Inquire with your them on additional safety features to protect your credit.
• Contact your bank, check your bank statements, and all other personal documents to verify fraud has not occurred on your accounts.

Check out NBS News video on the hack below:

Stated Income is ALIVE!

Prior to the 2008 mortgage melt down, stated income or no income document loans were the norm. Flash forward to present day (September 2017) and they are rare. Very rare. So, what is stated income and who qualifies? Here is a quick breakdown of stated income and who qualifies to use it.

Stated Income*

• Assets are a must. 6 months principal and interest required in assets/reserves for owner-occupied purchases <$1 million, 60% loan-to-value. 12 months assets required for greater than 60% loan to value, less than $1m purchase price. 
• Minimum FICO credit score 700.
• STATE your income and provide assets in the form of bank statements.
• Rates and loan programs are competitive. Since there is more risk involved for the lender based on not using a borrower's income documents (no tax returns, W-2's, pay-stubs required), the loan program offered is an Adjustable Rate Mortgage (ARM). Fixed for a set period 3, 5, 7, 10 years, adjustable annually thereafter with a cap and amortized over 30 years. Inquire with a TRU Financial Services loan officer for details on current rates.
• Primary, second home and investment loans available. 
• U.S. citizen, permanent resident, non-permanent resident, and foreign nationals are eligible to apply.

*Stated income parameters are subject to change. Not all borrowers will qualify. Consult a qualified, licensed mortgage professional.

The stated income loan product can be used to assist borrowers that are self-employed or earn bonus and commissions, subcontractors and W-2 wage earners. A FREE consultation with a loan officer that offers stated loan products could determine eligibility. Many of the same loan document requirements minus income documentation are required for these loans. 

San Diego Year over Year Price Increase Sustainable at 5.7%

America's finest cities housing prices increase at a lower rate than the national average. According to an article in the Union Tribune, the change from year over year increase from January 2016 could be based on higher interest rates. Click here to read full story. Post election, rates have been slowly on the rise. The median housing price in San Diego as of February 2017 is $495,000.

As many buyers feel the burn of multiple offers and expedited days on the market until pending, the inventory shortage in San Diego is apparent. With sellers less likely to complete repairs or issue credits for deferred maintenance, buyers may feel challenged by the current market environment.

3 Ways Buyers Can Stand Out

1. Pre-Approval-Lender pre-approvals are a must. FICO credit score and full loan approval complete the package.
2. Flexibility-In a housing shortage, buyers willing to rent back to sellers while they look for housing post closing may be perceived as more desirable.
3. Ask Questions-Sellers have different motivations for selling. Asking questions and listening to the sellers needs, can assist a buyer in preparing an offer that meet and exceeds the sellers expectations.

A main point I discuss with buyers in a sellers market is perseverance. The market can be challenging and maintaining a positive approach can assist in easing the tension and stress of home buying. 

Single Women Outpace Single Men in Real Estate Purchases

Single Women Purchase Homes at Twice the Rate as Single Men

“The kindest words my father said to me
Women like you drown oceans”

— Rupi Kaur

According to a Bloomberg report, single women account for 17% of homebuyers to single men's 7%. Single women are building their own wealth, realizing their purchasing power and not waiting to "couple" before pulling the trigger to purchase (Bloomberg, 2017)

Women earn 83% of Men's earnings -Bureau of Labor Statistics

Still earning less than male counterparts, women's price points tend to be lower than mens. Wage disparity may be the cause of reduced purchasing power.  Single women have been outpacing men in home purchases since 1981 according to the National Association of Realtors.

Research completed by professor Bella DePaulo at University of California Santa Barbara states, "Despite the stereotypes that insist women care more about marriage than men do, it may actually be single life women embrace more than men...unmarried women may be likelier than men to seize singledom as a lifestyle".

“I took a deep breath and listened to the old bray of my heart. I am. I am. I am.”

— Sylvia Plath

Realtor Magazine completed a study in 2015, surveying 1,000 single baby boomer women and found female adults ages 50-68 are confident, happy and thriving. 74% of the women surveyed said they were as happy or happier than at age 35. Full article here.

Leading an active life and being physically healthy through exercise were a major part of the study. It may reflect the location choices women make and what builders should include in planned development communities.

Why Zillow's Zestimate is not the King of Value

Your actual San Diego home value

It's easy to cruise the user friendly websites of Zillow and Redfin searching for homes and reviewing "Zestimates" on Zillow for home values. However, consumer be warned, Zestimates pull from the deed recordings in a demographic area which can include refinances and transfers between family members. They do not take into account upgrades or the condition of the home. We often determine, once compared to actual closed sales on the multiple listing service, the values are too high or low (Taufen, Inman News 2017). 

So basically, it still takes a real human to research, review and compare homes sales to estimate your home value. Some questions to ask yourself and consult with a listing agent:

• Do you want the best information available on pricing your home and when to place it on the market?
• What would you like to see in a marketing plan to sell your home?
• What is your time frame for selling your home?
• Do you need to sell your home before purchasing another?
• Is your house ready for the market? Upgrades, cleanliness, curb appeal.

Is it the right time to sell?

This question comes up a lot on both sides. Is it the right time to sell? Is it the right time to buy? In short, yes. It's always the right time if you're ready to buy or sell. As cliche as the answer, San Diego has consistently increased in value over the years and rebounded from down markets. There are no guarantees for the perfect buyer or the ideal seller. This is life. It gets messy and hard and really complicated sometimes. This is a major sell or purchase. It's personal.

What's the best time to sell a San Diego home?

According to Zillow, in San Diego it's April 1-15th. Their research shows, you are more likely to receive a 1.3% increase in sales price. The chart below outlines the research data. (Inman News, 2017. Zillow Data). Click here for full article.

Questions? We would love to assist. Email or phone or meet in person with no obligation. 

From Wall Street to Main Street: Scaling back Dodd Frank

What is Dodd Frank and Why it Matters

In a nutshell, Dodd Frank was passed by Barack Obama in 2010 as part of a Wall Street Reform and Consumer Protection initiative after the financial crisis of 2007-2008. It was the largest overhaul to our financial regulatory system since the Great Depression. Pretty significant.

Some of the main pieces to Dodd Frank include more transparency and accountability for large banks and financial institutions. Essentially, no more bailouts. The bailout during the financial crisis of 2008 cost the United States Treasury Department $700 billion. This was not the biggest bailout the U.S. made, it's still ongoing. According to TARP, the U.S. committed, $16.8 trillion with $4.6 trillion already paid out leaving the banks to big to fail. Read more here on the bailout. 

What could happen in repealing some regulations of Dodd Frank?

• Greater financial lending for smaller community banks and institutions.
• Less regulation and oversight of bank activities.

In a nutshell: Arguments for and against include, more lending could mean increased access to credit and mortgage loans, although this could leave the industry open to repeat history and the risky lending of past days, with taxpayers footing the bill for bailouts. Stay tuned.

San Diego 203k Renovation Loans: Use Lender Cash to Renovate

San Diego's current housing shortage provides current homeowners and home purchasers the chance to renovate a home with your style and design in mind. 203k FHA Renovation Loans are not for the faint of heart. My advice: Have a plan, find a solid contractor, and set expectations. In addition, work with a loan officer that has either many years in the business or has completed many, many renovation loans. A solid mortgage advisor is not only helpful and will expedite the process, they are worth their weight in gold.

San Diego Renovation Loans: Quick List for 203k Loans

1. Have a Plan: Make a list and separate "needs" from "wants". This will be helpful when hiring a contractor to itemize your priorities. Take inventory of the house yourself and be prepared for the contractor to find things outside your scope. Consider paying for a home inspection. This independent 3rd party will assess all the challenges your home currently faces. A contractor can work off this inspection, saving time and money.

2. Find a Contractor: Contractors are a plenty, however, find one that really understand the needs of the job. Lenders want all I's dotted and T's crossed. Liability insurance and workmen's compensation are required. In some cases, depending on the renovation expenses, they will will be accountable to a 3rd party that will oversee their work. Remember, you're working on the lenders money. Be clear and specific. A contract will be signed prior to commissioning work.

3. Set Expectations: Understand your goals and communicate them to the contractor. Check in and insure they are being met along the way. Open communication and setting expectations up front will save everyone time. Talk to a real estate professional and/or your mortgage consultant on what renovations will add value to the home, i.e. new windows, central heat/air, electrical, etc. This may assist in selecting a "need" over a "want" as it increases your property value and ultimately your equity in the home.

When in doubt. Ask your lender. Making changes to estimates or sub-contractors selected can be a recipe for disaster. Always, always ask your lender first and get it in writing. Communication and written proof that a change has been approved are key to keeping more money towards the project. Take good notes and save receipts and invoices. They can become your lifeline to communicating with all parties. Fix it, don't nix it!

TRID: The Ins and Outs

TRID became effective October 3rd, 2015. As with most change, it takes time. In TRID's case it took 30 years to revise and revamp outdated forms and language.

TRID: The Breakdown

The TILA-RESPA Integrated Disclosure integrates The Good Faith Estimate and The Initial Truth-in-Lending Statement and combines them into a new form called The Loan Estimate. The Loan Estimate assists consumers in understanding key areas of mortgage loans, risks, costs and relative information a consumer is interested in when shopping mortgage loans and interest rates. It must be provided no later than the third business day from applying for a loan. What is considered a loan application?

6 DATA Items that trigger The Loan Estimate for TRID:

1. Name
2. Property address
3. Income
4. Estimated value of property
5. Social security number
6. Mortgage loan amount

Once these items have been received, the lender/loan officer must be prepared and sent within 3 business days. The costs, key features and other related items must be accurate. There is a zero tolerance in effect for increasing key costs.

2 DATA Items acceptable to trigger a Change of Circumstance:

1. Rate lock
2. Unknown information at the time of Loan Estimate. i.e. Borrower requested change or change in borrower pre-qualification.

Lenders, loan officers, and borrowers must work together to insure accurate information from the beginning to quote costs and key features. The HUD1 and the Truth-in-Lending Initial and Final have been combined into one form called The Closing Disclosure. This must be issued 3 days prior to closing and the consumer has 3 days to review. We've got a road map to the dates and time lines.

After surveying several hundred consumers, it was found the old forms were confusing, outdated and needed revision. Although change sometimes has it's challenges at the beginning, we're thinking TRID does assist in streamlining costs, key features and benefits the consumer with less paperwork.

Disputing Your Credit Report

While disputing your credit report may not fall into the top category of fun things to do...ever. It's sometimes necessary. Empower yourself with the most current information on how to dispute creditors and why you shouldn't wait.

Disputing Credit Items:

1. Creditors: Contact the credit agency that reported the item directly. Sometimes based on timeframe, they may remove the item. Requesting a copy of your driver's license and other personal info. may be necessary to identify you. Start to finish, this can take up to 60 days. Best to get it done right away rather than wait. The item on your credit could impact your credit score and thus your interest rate.
2. Credit Agencies: TransUnion has it's own online dispute system. Gone are the days of writing a letter to be lost in the abyss. Complete their online form to get the process started. They will contact you via email to follow-up. Click here for TransUnion. Check Equifax and Experian for a similar process.
3. Protect Yourself: Signing up with any of the three major bureaus as a member will give you benefits such as identity protection, fraud alerts, and credit score monitoring to name a few. This may assist you in keeping tabs on your credit.

We have an abundance of experience disputing credit report items and assisting our clients with rapid rescores. If dispute is not an option before your purchase, not all hope is lost. Contact us for a Free, No obligation consultation and how we may assist you.