The Elements of Mortgage Processing

The mortgage industry is facing challenges of increased regulations and business instability. Entrepreneurs are looking for new and improved methods to achieve the business objectives in a better manner. In order to better the mortgage process, service providers are ready to extend their help. By collaborating with a mortgage service provider, organizations can reduce the total loan processing time, manage or control the costs better and enhance the service level.

Why do the entrepreneurs need an outsourcing firm?

The third-party outsourcing firms have years of experience and knowledge in this domain. With IT integrated solutions and proven skills, service vendors deliver measurable outcomes. This results in higher business scalability, drives sales conversion and increases the process quality and efficiency. Besides, the third-party vendors offer a wide variety of loan services.

Mortgage process service offerings:

• Underwriting research
• Pre-foreclosure
• Sales
• Foreclosure
• Loan modification
• Data management
• Analytics
• Collections
• Customer service
• Loss mitigation
• Bankruptcy, fraud & risk management

An outsourcing firm enables the financial institutions to thrive for success by establishing a certain environment and operational levers to tackle the issues of the industry such as capacity, regulations and cost.

In order to improve the overall efficiency of a business, service vendors standardize and structure processes. By assessing the loan processing functions of an organization, service providers identify the operating areas which can be outsourced. Entrepreneurs consider outsourcing as a strategic step to increase business productivity & reduce costs. Service providers undertake end to end credit analysis and other similar functions.

The Business Advantage

Service vendors have an in-depth knowledge of the market regulations and required licenses. The outsourcing team of dedicated mortgage professionals helps global clients, across various offshore engagements. In addition, the outsourced mortgage professionals are trained in end-to-end loan processing, documentation & underwriting, risk management & closure, etc.

Outsourcing firms have their own loan compliance department, that keeps an eye on the market regulations and licenses. Outsourced loan research team keeps the group updated with the trends, market dynamics and current issues in the industry. Besides, there are a lot of advantages of outsourcing a loan service provider.

• Flexible engagement model that caters for all loan transactions
• Integrated solutions with back and front office support
• Transaction based pricing options
• Specialized knowledge on several financial segments

Service vendors offer business consulting as well as planning solutions to consolidate and streamline operations, which ultimately reduces the cycle time.

Service vendors help in reducing capital expenditure. They even empower organizations to leverage the technology-oriented outsourcing services, automate processes, reduce errors as well as enable seamless operations.

Reaching Financial Freedom

Studies by the U. S. Department of Health and Human Services reveal that 95% of Americans do not attain financial independence by the time they reach age 65 and therefore are dependent upon the government or they must continue working until they die.

A survey of financial experts suggests that Social Security is considered to be a flawed system. According to the Social Security Administration, recipients currently receive, on average, 43 percent of pre-retirement income and that is projected to fall below 30 percent if additional funding is not found.

So now you’ve come to the realization that you desire much more from life than employment has to offer and are no longer satisfied with just a J.O.B. that leaves you (Just Over Broke). It’s a sad existence to live life just for the weekend, because that means you’re only living on the weekend. Monday through Friday (sometimes Saturday too) you belong to your boss.

Isn’t it ironic how we put all of our experience, momentum, tenacity, resourcefulness, and expertise into our job producing tremendous profits for the employer and we accept our measly paycheck as if it adequately compensates us for our accomplishments?

Don’t misunderstand what I’m saying; there’s nothing wrong with making an honest living but ask yourself, when you’re working for someone else, are you honestly living or merely existing? It seems that it would make much more sense to put all of those energies into something that would guarantee a much more fulfilling and abundant life.

When you’re working for yourself no matter how many hours you put in you have a sense of satisfaction and gratification. Working a job only brings you a salary-leaving you in the ‘rat race’ and even if you win the race you’re still a rat! Make no mistake about it becoming successful in business will take some hard work but “The only place success comes before work is in the dictionary”.

According to USA Today, almost 96% of all adults ages 25-44 want to own their own business. Did you know that the Small Business Administration states that 70% of all new businesses last a minimum of 2 to 5 years? Furthermore, according to the Labor Department, Baby Boomers account for 54% of successful self-employed persons.

Information from ‘Home Business Magazine’ and the U.S. Labor Department states that a new home-based business opens every 11 seconds and home-based businesses generate $427 billion in revenue.

One of America’s most influential authors refers to home-based businesses as the ‘Smartest Success Strategy”. Successful people take a course of action that coincides with their belief or passion.

Sales Agreement

A sales agreement is an agreement to buy and sell personal property that include but are not limited to cars, equipment or furniture. The contract confirms that sale and purchase of the asset. This form is not intended for use in the sale and/or purchase of real estate.

Knowing the pitfalls and how to avoid them can save both the seller and buyer headaches down the road. A proper form provides both legal protection and a peace of mind.

What are the main pitfalls and how to avoid them?

1. Never use a handwritten agreement as it is almost always incomplete and contains errors.

2. Never use a free form downloaded from the Internet as it is also almost always incomplete and contains errors.

3. Never agree to sign a sales agreement at time after the transfer of the asset.

4. Never accept verbal promises for payment especially from family and friend.

In all the cases above, a headache down the line may arise for both the seller and the buyer. The seller usually assumes that once they receive the cash they have nothing to worry about. This turns out to be untrue in many scenarios. One such scenario is that the asset sold is not properly described in the sales agreement. The buyer is unhappy at a later date claiming misrepresentation of the asset sold. This may be due to a miscommunication. A lawsuit would ensue that could have been prevented with a proper sales agreement.

A proper attorney drafted sales agreement contains the following main clauses:

1. Proper descriptions of the asset or assets sold.

2. Clearly stating the asset is sold as is and they buyer has thoroughly inspect the asset purchased.

3. Seller warranting they are they legal owner of the asset sold.

4. Amount and terms of payment. This includes dates if payment is to be made in installments.

5. Delivery terms. This may be at the time of purchase or at a later date. This is especially important when dealing with large items.

6. Does not leave room for misinterpretations.

Financial Forecasting Helps Companies Prepare for Future

When it comes to money, there is no guarantee to it in the future. Jobs can be lost, and companies can close down due to lack of sales. Financial forecasting can help them plan for the inevitable and help them get through a rough time for their budgets.

There are many different things that business owners are going to have to do to ensure that when sales are slow, they can get through until they are able to turn things around. It can be difficult to get through it, but by figuring all of this out ahead of time, it makes it much easier and makes it possible. Planning ahead is always a good plan when it comes to money.

People that go out and are constantly buying things will find that they run out of money quicker than someone who has planned out their purchases. If someone wants a big screen television, they should plan ahead and save for it. While many people will have options that they can use a credit card or other means of credit, they will be paying more in the long run for their purchase.

When people know that they are going to have bills for the whole year, they can budget for them ahead of time. This is something that is extremely important in business. Their energy costs and such things do not go away.

A loan or something like that can be paid off over time. The energy bills come due each month. They may vary from month to month, but usually, they are pretty close to the same amount each month.

Not only does this help with monthly bills, but it can also help a business and individuals plan for their future, such as retirement. Businesses may plan for expansions and other types of growth throughout the company. There are many possibilities that people and companies can plan for.

The future is never promised though. Anything can happen, but it is best to be prepared for a future. Planning on having a future is something that helps people ensure that they have what they need in the future.

Retirement accounts allow people to deposit a small amount from each paycheck into an account. This can be matched by the company also. It is very important to make sure that this is something that is getting done because it is what many people are going to end up living on when they retire.

Someone that gets paid by the hour is able to figure out what they will be getting in their paycheck a month or more from now. A business may have a more difficult time doing this, because their profit is determined by their sales. If their sales drop, then they will have to reconsider their budget.

Financial forecasting using the expected income or profits will help them to plan out a budget. This is something that takes a lot of planning. It can be based on what has happened in the past and what they are planning on for the future. It is important to have some variables in there so that it does not create a problem in the future.

Many companies are going to hire an experienced accountant and financial planner to help them to do this. Finances are something that will help a company to keep going. It is not something that is easy to deal with, but is something that has to be dealt with.

Financial forecasting is a big part of any business. Knowing what expenses that they have and how much their potential is will have to be known. Most companies will use previous years to determine what they are able to do, especially when every month is going to vary for them.

Knowing where money is going each month and what still has to be paid is going to be very important. Everyone’s financial future will depend on what they are doing now. Chingle helps companies and individuals with balancing budgets, assessing their current finances and much more. The staff is able to help them develop a plan that will work for them. They know that every company and family has different resources and different situations. Keeping finances in order now is going to help people prepare for their future.

Fast Refinance

Refinancing your mortgage from one lender/credit provider to another can be lengthy, costly and time-consuming. The new and efficient way to refinance your mortgage is to use “Fast Refinance.”

What is Fast Refinance?

Fast Refinance is a unique refinance process whereby your new lender/credit provider uses a product called Title Insurance to:

>> Facilitate the refinancing of your loan in days, not weeks (faster same-day settlement)

>> Enable an “Unattended” refinance settlement (no settlement meeting or booking takes place)

>> Reduce settlement costs (all correspondence and funds sent electronically)

>> Streamline the mortgage loan process (requires minimal additional documentation)

What is Title Insurance?

Title Insurance provides protection to lenders/credit providers against known and unknown title defects on a security property. It offers additional risk cover to strengthen and enhance your legal interest in the mortgage and the security property.

Why Choose Fast Refinance?

You should refinancing your mortgage with the same extreme care you put into getting your original mortgage, and it is just as big a financial decision. So when you are thinking of refinancing, you should consider the following benefits of “Fast Refinance” and more importantly why wait for up to 6 weeks or more to take advantage of these benefits, such as:

No Fees – most lenders do not charge fees

Very quick Settlement – when all documents are received and certified you can have an approval in as little as one or two days

Savings – if refinancing at lower interest or extended term, it will save you money and even reduce your monthly repayment

Easy for you – as your new lender will contact your current lender and organise the new loan, you do not have to approach your old lender

Access to Funds – you may be able to access additional or surplus funds much quicker than when doing a standard refinance transaction

No Contact from your old Lender – process circumvents the old lenders “retention unit” from making contact to try to persuade you to stay with them

How Does Fast Refinance Work?

You will need to complete a new loan application with the new lender/credit provider and provide all requested documentation for your new loan, and the new lender/credit provider will:

>> Approve the loan application

>> Prepare all the Fast Refinance loan documents

>> Request you to sign and complete all the documents and state the “payout figure.”

>> Deposit into your old loan account sufficient money to reduce the loan balance to Nil

>> Pay you direct any surplus funds from the new loan

How Can a Finance Broker Help With Fast Refinance?

A professionally qualified finance broker is very experienced with arranging refinancing of client loans and he/she will help you in answering the following questions:

>> Am I eligible and how can I qualify for a “Fast Refinance” loan?

>> Can you help me to compare my current product features against the new product features before I decide to refinance my home loan?

>> Can you help me obtain formal approval to Fast Refinance my existing home loan and at the same time obtain pre-approval for the purchase of a new investment property?

>> With a Fast Refinance loan can I access the equity from my existing owner occupied property to assist me in the purchase of a new investment property?

>> Will I be better off refinancing my existing home loan and consolidating my debts?

>> What documents do I have to provide when refinancing or consolidating my debts?

>> Can you help me to calculate the value of my home equity?

>> Can you help to calculate my present loan-to-value ratio?

So, don’t forget to help of a finance broker. He/she will make you ready for fast refinance and ensure that you get cheaper rates and a better deal.

Comprehesive Mortgage Auditing

Comprehensive mortgage reporting is a very successful tool when auditing for mortgage fraud. As borrowers continue to educate themselves about the game lenders played during the surge in demand for new homes from 2001 to 2007 this kind of analysis not only delves into forensic detail of a mortgage loans origination, but also the issue of profit generated by the securitizing parties and even the length of time the full amount was recovered in relation to amortization of the original lien.

Case after case is a blatant example of fraud covered with fraud dipped in more fraud and rolled in lies. At some point we all must stop piling on mountains of evidence and make sure this evidence is being heard by state and federal court judges in every type of judicial and non-judicial foreclosure state. As an auditor we rely on attorneys to make sure the evidence is presented and used in a way that gets results for betrayed homeowners and wronged investors.

In brief, the lender lent the borrower an amount that was beyond his capacity to repay and sold the loan to a securitization trust thereby recovering the amount it lent to the borrower within just three months of granting. For its part, the trust utilized the MERS System® to cut short the documentation process and skip recording fees, earned tax-exempt income from securitizing this loan, and even if it failed to properly comply with the transfer requirements it is now initiating foreclosure. MERS in turn engaged the services of robo-signers to partially comply with the requirements.

Believe it or not most Americans are convinced checking your mortgage for fraud is malarkey. They think it is some scam where by people try and get their homes for free. Let me be clear, I don’t dedicate my time and sanity to helping anyone who borrowed money to buy a house have the delusion that they don’t need to pay it back. What I do, is make sure what they pay back is what they owe and the entities that are parties in that real estate transaction operated lawfully. A very simple concept yet very controversial.

The motto of any examiner/auditor should always be to have no personal interest in the outcome of an examination and perform their task with the highest degree of professional integrity. All decisions must be exercised with due care and diligence and their conclusions based on the documents presented coupled with information gathered from the most reliable sources that are available. I’ll take that mission everyday.

Working exclusively as a business-to-business service provider, Mortgage Audits Online is able to devote ourselves to providing expert research enabling our clients to achieve results. Whether you are seeking negotiation tools, litigation support or fraud investigation our staff can help. The Mortgage Audits Online team has over 25 years of experience in private banking, accounting, underwriting, securitization auditing, title services and real estate.

3 Steps to Disciplined Trading

In this article I’m going to show you the path to disciplined trading in 3 simple steps as recommended by a trading expert with 45+ years of market experience.

The path to disciplined trading

Step 1 – Methodology

The 1st step is to find a systematic rule-based approach to trading the markets that has been proven to work, either by computerised backtests or manual testing. This is extremely important because without a validated strategy you will not be able to build confidence in it and will likely just end up losing money and increasing stress.

Make sure you stay away from strategies that do not have clearly defined rules you can program into a computer, the rules should be simple and not require interpretation otherwise the results will be inconsistent. This step must be completed properly, if you do not then the string of losses you will likely experience will make it very difficult to continue following the strategy and you’ll either stop trading or jump to the next strategy and repeat the losing process.

Step 2 – Confidence

The 2nd step is to gain confidence with the strategy by understanding how it works, why does it make money? Really understand the backtest results, know the type of markets it works in best, then either paper-trade it or trade it with a small position size for a while to get a feel for how it behaves.

This process can take some time so don’t rush it. Also, don’t assume you can trade it just because you know the rules and have read the backtest report; there is a large difference between knowing something and doing it, so while you may think you can handle the performance characteristics of the system it can be an entirely different scenario once you’re risking your own money with it.

Step 3 – Discipline

The 3rd step is to gain discipline by following the strategy religiously. This is very important because not following the rules will erode your confidence and invalidate the results.

Make sure you resist the temptation to constantly ‘tweak’ the strategy rules, especially based on the results of a small number of trades. All strategies have winning periods and losing periods and the results are not defined by any one trade, rather you need to apply the strategy over a large number of trades to let the edge work in your favour.

If you find you constantly want to change the strategy or can’t enter or exit trades when the strategy requires it, you lack confidence in the strategy and the only solution is to stop trading it and go back to steps 1 and 2 again.

Are You Financially Prepared For An Emergency?

Money is not everything, but for everything you need money. It’s an established fact that money plays a vital role in present-day living. If you are financially prepared, you can easily overcome difficult situations and fix away your problems without getting frail. Life can get you into an emergency without any warning. It requires advance planning and preparation on your part to tackle these kinds of situations effectively.

Are you prepared?

Is your financial information well arranged and properly organized? Have you prepared your will? Have you told anyone about your vital financial information? In case of an evacuation, are your documents ready for the ‘grab and go’? Hurricane, flood, earthquake or theft can come at any time creating an emergency situation. If you are not prepared financially, it’s easy to get into a messy circumstance. On the other hand, if you have a stout monetary support, you can emerge out as a winner.

What can we do?

1. Get out of debt fast

Getting out of debt may seem to be a distant dream at a particular point of time. But, with proper planning, persistent efforts and by curtailing certain extras, you can definitely overcome your debt and avert monetary implications.

a. If you are in debt, you need to take steps to get rid of it, not any other loan for a temporary relief. You should focus on doing three things – Increase your income, recognize what got you into the debt (circumstances or your habits) and based on your assessments take steps to fix your debt.

b. Next, you need to pick a suitable help. Solutions, such as a debt rearrangement loan may work towards your favor, but it will work only when you take this option at the right time and under right circumstances.

c. When you are in a debt, you need to seriously sort out your spending habits and curb on unnecessary expenses. It may be possible that you are repaying your debt with so little progress that it will take a long-long time to repay it fully. By that time, you would have paid manifolds of the principal value. A debt settlement plan may work, but only when you know your priorities well. Failing to do so may sink you further. Thus, you need to control your state of affairs and manipulate your creditors effectively to pay off your debts in an easy manner.

2. Use credit wisely

First of all, don’t finance unaffordable lifestyle with your credit cards. Keeping your purchases within your limits is the key. Often, people are lured with the innumerable products available in the market and use credit cards to purchase unreasonable things only to repent at a later stage. Credit card is a marvelous facility, but works out to be beneficial only when used with astuteness.

a. If you are already into a financial trouble, avoid using credit cards. Pertaining fees and other monetary charges can add up to your debt. However, using a credit card to tackle a financial difficulty is better than to arrange funds by keeping your house on mortgage.

b. Raise your bar; don’t get hooked to the minimum payments. Paying only the minimum amount due will eventually elongate the repayment period, and by the time you repay all your dues, you would have actually paid multiple times of the amount you took on credit.

c. Don’t get fooled by the low teaser temporary rates; money borrowed during promotional low-interest rates is most likely to be carried on to the higher permanent rates. Make your credit card payments on time and avoid surcharges and penalties. This will also increase your credit score.

3. Get organized

Your spouse, anyone of your adult children or someone who is entrusted to handle your finances should know where your property papers, contracts, documents and policies etc. are located. By making plans ahead of the time, you can actually ease the stress that your loved ones would face in the event of your illness or sudden demise.

How to Choose Between Banks

When you open an account at one of the banks in your area, or any bank for that matter, you are forming a long-term relationship. It is not often that people change their minds about their financial institution once they open an account. As long as you are receiving the services that you desire, you are prone to stick with that financial institution. If you choose to do business with a certain bank, make sure that you are happy with the customer service. Ask about fees associated with various accounts. Depending on your needs, you may need a checking account, savings account, or both. Find out how lost credit cards, overdrafts, and debit card purchases are handled.

Create a List

Create a list of things that you want from one of the reputable banks in your area. Then you can decide on a financial institution based on your banking needs.

Services Offered

Most banks offer a wide range of services. Services can include retirement savings, investment options, and online bill payment.

Other services offered generally include:

– Online Banking
– Mobile Banking
– Text/Web/Apps
– External Funds Transfer
– ATM/Debit Cards
– Telephone
– Wire Transfers
– Electronic Statements
– Cash Management
– Merchant Credit Card

These days, you will usually have access to funds at your local branch, online, and through ATM withdrawals. Most banks also offer loan services for mortgages and secured credit.

Doing Business Online

Online banking has made it possible for customers to check their balances and receive monthly statements. Most banks offer free online services, and you can feel secure doing business over the Internet. You can access your funds 24 hours a day, seven days a week. You will have access to your existing E-statements. You can transfer money between each of your accounts, make your loan payments, and see an overview of your transactions.

Mobile Capabilities

When you are traveling, what better way to complete transactions at your financial institution than by mobile banking. As long as you have a smart phone or other mobile device, you can conduct business transactions. You can even receive your account balances via text messaging. It is a quick way to check on your account without a physical visit to the bank.

Mobile connection allows you to receive current and available balances, review previous transactions, and see existing balances on all of your accounts. All you have to do is text a brief command from your mobile phone, and the information will be quickly delivered to your device.

Cash Management

Business owners can manage their money through cash management services offered by many banks. As a business owner, you will have control over your daily finances, be allowed to create multiple account users, and also have the ability to initiate ACH deposits.

When selecting a financial establishment, choose wisely by considering what important banking features and amenities you can and can’t live without.

Job Costing and Estimating

Small business owners are an underserved group. Tax planning and tax preparation should not be the only skills offered by the business’ advisors. And to small business owners, don’t be so stubborn. Read carefully to understand this discussion. This just might save your life long dream from collapsing.

Construction, roofing, and custom manufacturing are all business types that will benefit from a discussion of direct and indirect expenses. Most already know that direct expenses for a given job or project have to be considered in the cost. Direct expenses include the labor and materials used. It is the indirect expense that is most often forgotten or mistakenly allocated to job cost. The indirect expense is a cost that relates to all jobs or projects and not to one job specifically.

Examples of indirect expenses include: depreciation on machinery and equipment in the production process, depreciation on plant facilities if owned by the small business, rent on the plant facilities, shop supplies, vehicle expenses, utilities, insurance, and the compensation of supervisors, plant managers, and owners of the business. And of course, don’t forget about payroll taxes. There could be other indirect expenses in a given business, but the aforementioned will serve to demonstrate my point. It is also important to mention here the compensation of the business owner or owners. If the owner participates in the production process, a portion of compensation (or all) should be treated as an indirect expense to be allocated to the job cost.

Now that there is a list of indirect expenses, how should they get allocated to the job cost? Typically, indirect expenses are allocated based on direct labor dollars, direct labor hours, or direct materials. My personal favorite method of allocation is based on direct labor hours. If there are 20 direct laborers in a given business, and each is projected to work 1,900 hours annually, there will be 38,000 hours of total direct labor in a given year. If the summation of indirect costs is $1,500,000, this business will have an indirect cost per direct labor hour of $39.47. If my average hourly wage for direct laborers is $25.00, then total cost per direct labor hour is $64.47. If this particular business desires an industry average gross margin of say, 36%, it will need to charge $100.73 per labor hour. This billing rate is determined by using the full absorption method of accounting. Full absorption accounting is a required “generally accepted accounting principle” and must be used in all external financial statements unless otherwise disclosed.

Now, I can hear the naysayers from the cheap seats, “what if the market won’t bear this”? Well then, the business will have to accept a smaller margin, shop around for lower direct and indirect costs, or understand the behavior of fixed costs and “economies of scale”(a discussion for another article). The point of this article is to ensure that a business covers all of its production costs. I hope that I never hear again a small business owner say: “I am busier than ever, but I don’t have any money”! As always, the small business owner is free to do as he or she pleases. However, it is important to remember that my way is better.