Buy California

Lubrication in the world of Lending

noreply@blogger.com (Pat Townsley) — Tue, 15 Jun 2010 04:07:00 +0000

Real Estate Financing: It's been a blood-bath out there, especially for my niche of $1,000,000 to $10,000,000 jumbo loans; there just hasn't been a home for them the past two years, but the world is starting to turn. I'm seeing a few banks going to $4m and $6m, with $1m equity lines. The trick is still in the qualifying, but we're seeing some players return. Still with brutal regulations/underwriting, multiple appraisals, and more regulations and/underwriting, it's still an uphill battle, but those with a strategy, clear vision and clear plan win the war. Let's talk, let's get it lined up and ready to strike. We have a six month window before rates start creeping up. Who do you know who needs a refi on loans greater than $729,500 in Marin, Sonoma or greater Bay Area? That would be a great referral for me. Pat Townsley, Broker. 415-310-0626

"Step right up and win some crap"

noreply@blogger.com (Pat Townsley) — Mon, 31 Aug 2009 17:53:00 +0000

Navin R. Johnson struck it rich, but then lost it all in a lawsuit. He didn't have the additional challenges of the economy to turn his rags to riches to rags to riches story around when his parents were able to save him because their investments did well. Perhaps today, the story might not have ended as well is the parents' nest egg had been wiped clean by a global economic downturn. With people scared to put their few bucks into the bank for any term longer than 12 months for fear of loss and crappy rate of return, the opposite side of the banks, the lending divisions, will continue to stay low, only offering federally backed loans like the FHA purchase loans. Refis under $417,000 will remain decent, but those Jumbos won't loosen up until interest rates rise and banks can take a little more risk by receiving higher returns on those larger loans. Catch 22: You can't refi because rates must rise first, then once they rise, the rates won't justify a refi. When the economy is ready, the teacher will appear. Perhaps the teacher is here and we're gettin' schooled. www.ptre.net

We're All Ears!

noreply@blogger.com (Pat Townsley) — Tue, 18 Aug 2009 00:55:00 +0000

As possibly noted in my brief mid-August update, there's not much "exciting" about the world of finance right now. No "hot rate" to motivate; nothing other than your existing loan becoming adjustable on a fully amortized 25 year loan. If you're looking to buy an owner occupied home, I believe rates are within a quarter of as-good-as-it-gets. This is that sweet spot. My client base has always been that $500,000 to $5M loan size for owner occupied homes. After that: Vacation homes, investment homes, units and commercial (in order of volume of historical closings for me. So, what do you want to talk about? I ramble on here endlessly. What are your thoughts, comments and questions about the real estate world, financing, banking and/or the economy or whatever is on your mind? Let's talk! My staff and I have some free time right now, and we're all ears. Pat Townsley & Associates, 415-485-1776. www.ptre.net

Dead Cat Bounce clarified

noreply@blogger.com (Pat Townsley) — Tue, 11 Aug 2009 17:14:00 +0000

Thank you to the few who emailed me directly (regarding my recent DCB post), either confused by the "term" or origin of Dead Cat Bounce. I didn't create it! It's been around for a long time. In analyzing trends (particularly modeling stock trading), when a stock is falling in price and then regains some positive movement (at a line we may show as the lower band of resistance), this "bounce" of the resistance may only be temporary, and a bigger decline is coming. Someone picked a cat; if a cat was falling and hit the ground, it would bounce, then land and be done (might bounce more than once. So, when tracking a trend and it goes down, then a slight bump up, then another decline to a terminal floor, well, there you go, a Dead Cat Bounce. My parallel to this modeling is TODAY in the US economy, where we've just been beat down the past two years, and "suddenly" things are alleged to be getting better (but underlying this all is many more banks failing, millions of foreclosures about to happen, more write/charge offs for bad debts, more bankruptcies and more magical cash being pumped into the economy). It's just one of those sinking feelings, a slight calm before the next storm. Right now is where the risk takers are profiting from short term investments; a last huh-rah. Watch the money. Fix your monthly costs. www.ptre.net

Cash For Clunkers: America Bamboozled

noreply@blogger.com (Pat Townsley) — Sat, 08 Aug 2009 23:56:00 +0000

Let's see, we'll increase taxes on everyone and then give that money back to the few people who have a credit rating to buy a new car earlier than they need to, creating higher levels of debt to those buyers plus increased insurance premiums, creating false demand for vehicles we don't need to create, thereby polluting more to make more cars, then pollution to dispose (destroy) of the perfectly good old cars, which were running just fine. What? Not enough taxes generated to fund this train wreck for a week? Let's just print more, or borrow it from somewhere else. Never mind the starving people, people out of work, people losing thier home or without health care; Let's get (trade) some new cars on the road. This is the worst shell game I've heard of since the deliberate dismantling of the American rail system in some 80 years ago. We're doomed to repeat history apparently and we'll look back, not too far off, and say "Who the hell thought that piece of crap plan up?" Follow the money. All of this has happened before, and it's all happening again.

Pray That We're Wrong: Dead Cat Bounce

noreply@blogger.com (Pat Townsley) — Sat, 08 Aug 2009 23:16:00 +0000

I've been talking with several c-level colleagues in several financial industries (accountants, controllers, bank CFOs, statisticians) and I was just reading some recent economic forecasts out of China as well. First, I'll assume you heard about the global recession. Next we'll assume you've heard the recent "hype" that we've seen the worst of it and are turning a corner and that last week's "numbers" were good. What if the truth behind it all is that we're just on the first bounce of a bigger declining picture? Not to get all "conspiracy theory" on you, but there are many economic indicators and challenges that are being swept under the rug. The US is resilient, but we're being pumped up with invisible funds and unprecedented half baked federal programs. Follow the money. This is going to hurt. So, Buyer beware. More than ever, I believe it's time to tighten up and buckle down even harder. Proper financing of your properties is just one aspect of your overall financial plan. Let's discuss the options in today's market (while we still have one). Pat Townsley, Mortgage Broker. 415-485-1776, www.ptre.net

Working from Yosemite

noreply@blogger.com (Pat Townsley) — Fri, 07 Aug 2009 17:12:00 +0000

Other than servicing the clients existing clients in progress, I spent a good chunk of the past month in Yosemite, hiking, exploring, bouldering and learning. There are a couple good public wi-fi spots in the valley including The Awahanee (strong wi-fi, but cell service is bad) and my favorite is just about anywhere near the employee housing between Housekeeping campgrounds and Curry Village; Strong signal, outdoors, bears, ravens, oh my. Mortgage rates pretty much did nothing, except for the high-balance conforming loans where lenders artificially and deliberately increased the rates there to slow down originations. Their portfolios are are too heavy with those loans, so they're pushing for the $417,000 and lower loans now, and of course, in Northern California (Bay Area in particular), that really doesn't help the housing market for sales or refi. Remember my post on "Dead Cat Bounce" about a year ago? I think we're in the bounce now. I'll comment on that next. Pat Townsley; 415-485-1776. www.ptre.net

Rates are coming down for the last time, now.

noreply@blogger.com (Pat Townsley) — Fri, 12 Jun 2009 17:38:00 +0000

I've always stated that rates work in cycles, and from my view, the cycle comes every three weeks. Sure enough, three weeks ago rates spike... and the past two days and the past three hours we've seen rates dropping again. NOW would be a good time to take action. I don't want to sound cliche, but it's true. How many more times can rates hit this low band threshold? I think maybe one more time, bouncing off lower resistance of 4.5%. Let's do this.
Pat Townsley, Mortgage Broker. www.PTRE.net

TARP Repayment; An Indicator of Higher Rates Coming

noreply@blogger.com (Pat Townsley) — Wed, 10 Jun 2009 13:28:00 +0000

The Fed gave many banks the option to borrow some money (some were basically forced to take these funds called TARP (Troubled Asset Relief Program). This gave the Government an ownership/equity stake in these banks (Government owning bank = scary). Now, after "stress tests" on several banks to see if they can "survive" (liquidity, operations, assets, leverage, debt) many banks have been given the Green Light to "refund" their TARP money to the Government (and when I say Government, this is your Federal tax money at work). Several of the banks that have passed the stress test and applied to refund TARP include American Express, BB&T Corp, Cap One, US Bancorp, JPMorgan and Goldman-Sacks. Note that American Express wasn't even a bank prior to the offering of TARP money; they created the entity just to get TARP funds. Conversely, other banks ran and hid from TARP. So the repayment begins, meaning stronger banks are emerging. If they have money, you can bet that rate increases will be seen across the board in terms of increased deposit rates and HIGHER MORTGAGE RATES. This is a sign of things to come. If you're hoping for LOWER RATES, you ship is about to sail; Lock in now; I'll tell you how. Pat Townsley: 415-485-1776. www.PTRE.net

Reverse Mortgage or a HELOC?

noreply@blogger.com (Pat Townsley) — Sat, 06 Jun 2009 04:21:00 +0000

Today's Question come from Vince: "Pat -- thinking about some financing on our place -- worth $500,000 as is, no current mortgage -- do you recommend we look at a reverse mortgage or a HELOC?"
My Answer: "It all depends on what you are going to do with the money. That's really a financial planning question. A HELOC will give you flexible money if you need it. It comes with a monthly payment based on the money you have drawn. A Reverse has several options. First, you kids both need to be over 62. Then, what do you want the money for? You can take a lump sum, have monthly "income" payments to you like a fixed income, or have a combination. You have no outgoing mortgage payments; the money is taken in the form of equity from your home. You can't ever be thrown out of your home. Another question is how long do you plan to live there and of course, the survivorship issues: How well are each of you set up in case of The Reaper. Reverse Mortgages are loans, so the money isn't viewed as income. HELOC are adjustable and open to interest rate swings and eventually need to be paid back and they impact monthly cash flow. Reverse Mortgages can be source of income and has several term options.
This is a bigger question than just "HELOC or Reverse Mortgage." It's a sit down and map it out question."
Message: There are many options. Don't just pick the flavor of the day. Get a plan. I can help. Pat Townsley, Mortgage Broker. Refinance, Purchase, Home Equity Line Of Credit (HELOC), Reverse, FHA. www.PTRE.net

Solutions from Problems

noreply@blogger.com (Pat Townsley) — Fri, 05 Jun 2009 14:42:00 +0000

I was just presenting at a two day banking conference at the Hyatt in San Francisco this week and was in the Hall of Vendors looking at the different services that are bankers have at their disposal. 75% of the 48 vendors had the word Solution either in their key service bullet points or it was actually part of their company name, i.e. Banking Solutions Inc. To have a solution implies that there is a problem, a challenge, or an opportunity to do things better (efficiency, economies of scale). In my personal daily vocabulary, I've replaced the word "Problem" with "Opportunity" and the word "No" with "Would you let me look at that a bit longer?" There are always solutions to challenges. Right now, there are opportunities to Invest and/or improve your Cash Position. How can you take action on smart investing or improving your cash flow? I've got the solutions for your challenge, and your challenge is how to take advantage of opportunity. When would Now be a good time? Pat Townsley. 415-485-1776. http://www.ptre.net/

An Independent View from Yerba Buena Financial Partners

noreply@blogger.com (Pat Townsley) — Thu, 04 Jun 2009 05:41:00 +0000

Delegating works: If it can't be delegated, it can't be done. To that end, I thought I'd share this week's market commentary from Bruce Frankel of Yerba Buena Financial Partners. YBFP is a truly independent financial planning and wealth management firm in SF and an endorsed strategic partner of mine. I've worked with Bruce as a referral partner for many years. Please pop in to their site and sign up for their market newsletter. I'll give you the mortgage rate and real estate opportunity news, but a diversified is a balanced portfolio is a happy and safe portfolio. Visit this week's article at http://www.ybfp.com/ and visit me at PTRE (dot net); the lending yin to your investing yang, or the mongoose to your snake, or snake to your mongoose; I'm not good with animals. I'm great with your rate. Pat Townsley & Associates. Independent Mortgage Brokers and Mortgage Bankers. 415-485-1776. http://www.PTRE.net

Bears versus Bulls: Opportunity Now

noreply@blogger.com (Pat Townsley) — Thu, 04 Jun 2009 05:30:00 +0000

Ever wonder where, why, what the meaning of Bears and Bulls came from in the markets? Here it is: It's the type of attack each animal does: A bear attacks from the top and tears Downward. A bull comes in head down and rips Upward. That's it. Bearish is a downward market; a Bullish market is one that's heading up. Right now, it's time for a BULLISH (not bullsh*%&*t) play on real estate. Buy low, sell high. Buy when rates are LOW and you've got real scales of economy: Low price and low rates give you the market advantage. I've got the low rates. Let's talk Bull. Pat Townsley, El Matador Mortgage Broker. If you know anyone looking to Purchase a home or investment property, please send them to me at PTRE (dot net); 415-485-1776

Don't Let the Sun Set on Opportunity

noreply@blogger.com (Pat Townsley) — Thu, 04 Jun 2009 05:14:00 +0000

I just presented at a two-day banker conference filled with CFOs and CEOs from the Western 12 states. The other presenters and speakers had three consistent overwhelming forecastings: Rates will either go up or go down. We're either coming to the bottom of the recession or heading out of it. Change will happen either soon or sometime in the future. NOT MUCH HELP. My opinion is and has been: Rates cannot go lower without running the offering bank into failure. Tighter regulations are coming (many are here already). Right here, right now; this is the time. The sun is setting on the lowest rates on 30-year fixed conforming and high balance conforming loans. Summer is coming and everyone goes into vacation mode, and before you know it, you've missed the opportunity and you're in a boat with no oars going over the falls saying "oh shoot." Let's do this now. Who do you know who is a candidate for refinancing? Please refer them to me at PTRE (dot net). Pat Townsley, Yosemite Search, Rescue & Financing.

Right up your Ally

noreply@blogger.com (Pat Townsley) — Thu, 04 Jun 2009 05:02:00 +0000

Last weekend I had dinner and the world's best Pinot makers (Kosta Browne Winery) and Ally. Not the bank, but coincidentally named friend. The other Ally, the re-created spin-off from the failed GMAC finance division says they're all about simplicity, great deposit rate of return and no small fly-spec font disclosures. So, they're flooding the market with high rate of return CDs and Money Market accounts, generally pissing off other banks. This argument cuts both ways. The banks that took TARP money generally kept it for themselves. Ally is giving it back to the investors! It looks like a "loss leader" and felonious, but they're actually saying "The government gave us money: Do you want some? Deposit with us and get a higher-than-market ROI." So for now, check them out for High Deposits. If you want the other side of the equation, call me for LOW Mortgage loans: The twin forces of banking aka Savings and Loan; the Libra scales of balance. Stimulate the economy! Come get some. Pat Townsley, Mortgage Banker. Broker #01234350. www.ptre.net

Planet For Sale: Your Time to Prosper.

noreply@blogger.com (Pat Townsley) — Thu, 14 May 2009 08:02:00 +0000

Calling all top feeders, bottom feeders, upsizing, downsizing, first time buyers, investors, empty-nesters, relocaters, starting over, post-financial holocaust, weak, hungry, huddled masses, veterans, newbies, X-ers, Boomers, whales, rollers and anyone with a job (sorry, that last one cuts it down by 11%): Wake Up! Opportunity is calling. Sometimes it leaves a message, other times not. Sometime YOU need to take the action to call opportunity.

"They" say more money was made during The Great Depression than was lost. If Einstein was right matter and energy can't be destroyed, only altered. If there is one thing that can always be found, it's more money. You just need to take off the blinders and set your own sail. "Can we do it?" It's up to you.

We can help: Team Townsley, silly clip art producers, great real estate financing solutions.

Pat Townsley: Out Standing In My Field

noreply@blogger.com (Pat Townsley) — Thu, 14 May 2009 07:25:00 +0000

Money doesn't buy homes; People buy homes. Even when I'm 8,842 feet up on the top of Half Dome, I'm taking calls, quarterbacking challenges, insuring the closing of my coveted clients' dreams.
The market is coming around. Loans to Two and Four Million dollars are back on the radar and it's really time to sack-up and pick-up the phone to see what we can see. I've got the nation's top banks to deliver to you and your referrals.
When would Now be a good time to secure your future? In life and in rates, we have peaks and we valleys, and I'm always there, out standing in my field.
Pat Townsley: Relentless. www.ptre.net

Real Estate: The Best Investment Vehicle

noreply@blogger.com (Pat Townsley) — Thu, 14 May 2009 07:14:00 +0000

Things are busy: Good thing, good sign. I've brought on an extra body to handle the work load and I'm looking to provide more people with loan consultations for refinance and purchase opportunities.
Investment properties are "cash flowing" and, as cliche as it sounds, there hasn't been a fixed rate loan opportunity like this in decades. Where are front-runner investors putting their money now? Real Estate: Historically the best investment vehicle (when played, planned and executed properly). Get on your horse and ride. Call me at PTRE and let's make history. Pat Townsley, Mortgage Whisperer. 415-485-1776. Close with Confidence.

Cute and Cuddly, boys. Cute and Cuddly.

noreply@blogger.com (Pat Townsley) — Wed, 13 May 2009 07:20:00 +0000

Navigating today's mortgage market requires a team of special operatives working behind the scenes. My team at California Mortgage Advisors does just that work. As Skipper, I come up with the plan. Chris "Rico" Perez is our explosives expert, blowing holes in lender conditions and overcoming obstacles. Kowalski and Private are in the back office, dealing with the deluge of changing guidelines, documentation and the all new train wreck clogging up an otherwise imperfect system: Appraisal Management Companies aka "AMCs."
The good news is we're landing. The bad news is; we're crash landing.
Either way, we'll get your loan funded on time, every time.
Close with confidence.
California Mortgage Advisors: 415-485-1776

Optimistic or Pessimistic?

noreply@blogger.com (Pat Townsley) — Wed, 13 May 2009 07:01:00 +0000

> There's a sense of optimism in the air; Phone is ringing, clients are coming out from their shelters.
> These 30-year fixed rates aren't going to last too long: FACT.
> Lenders are taking FOREVER to underwrite, review and then stick you in the eye with a red hot cheese knife: FACT.
> Values are falling, decreasing your equity: FACT.
> Even with all this, you should consider refinancing now, test the water with me. I've got a life raft to keep us afloat: FACT.

Pat Townsley, Senior Broker & Mortgage Banker. CA DRE #01234350. http://www.ptre.net/
California Mortgage Advisors; Strong & Secure

70% Solution: Are you one of them?

noreply@blogger.com (Pat Townsley) — Wed, 13 May 2009 06:53:00 +0000

An estimated 70% of US Homeowners could benefit from refinancing. Are you one of them?
I am ready to take action to make it easy to get you into a fixed-rate mortgage that can mean savings and stability for years to come. Refinancing funds are available. Find out today how much you could save. Apply now.
Sound good, eh. I'll truly make it as easy as possible. It's the banks that that are slowing things down. Some banks are 30 to 45 days to do a deal, others are literally three months. It all depends on how fast you want to go, how much grief the underwriters want to give every single loan, and how well you qualify. Yes, Funds are available and 70% would benefit, but can you qualify. That is the million dollar question in today's market. Let's find out. I've got options. Real rates, realistic expectations.

Pat Townsley & CMA; Mortgage Broker and Mortgage Bankers. 415-485-1776.

A Gift for You: Quote Actions from Pat Townsley

noreply@blogger.com (Pat Townsley) — Thu, 07 May 2009 07:56:00 +0000

Greetings friends and visitors. I'd like to offer you a gift that has been, inspirational, to say the least, in my life. It's a moment that gives me pause to reflect when all hell is breaking lose around me or, for some reason, I forget the food is burning, the kids have been left alone for a week, the house is on fire or I left the engine running and it's run out of gas and has also burst into flames: Quote Actions.

QuoteActions does more than some lame-o motivational quote. It takes a great quote and asks you to take a simple yet specific Action to make your day, your life, somebody else's life Better. My Gift to YOU, your gift to you. It's an opt-in and easy opt-out. Give yourself a gift! Click Here: QuoteActions!
Pass it on. Thanks. Pat Townsley. Inspired

Indymac becomes OneWest Bank

noreply@blogger.com (Pat Townsley) — Tue, 21 Apr 2009 06:31:00 +0000

Those few clients who took advantage of the ridiculously low rates on government back "Agency Conforming Jumbo" loans last year when I called up and said "Look, this bank is giving loans away," well, they were. Hence the failure of Indymac, taken over by the FDIC. The FDIC then sells the assets and debt for pennies-on-the-dollar, a sort of banking yard sale to the highest bidder. When the risk of the debt seems to be less than the upside, then a bank like or holding company can structure a deal to buy and run the institution. In this case: Meet OneWest Bank. If Mergers & Acquisitions, crappy customer service and endless delays in results are pissing you off, call me for your mortgage solutions. Sure, the entire industry is a bit "slow to underwrite" and hype-diligent on conditions and brutally tough on customers, but I'm here to oversee, give you honest reassurances and get the job done. No bait-and-switch, just good old fashioned personalized service. Pat Townsley, The Loan Whisperer. 415-485-1776. http://www.ptre.net/

Citi Posts Profits; Will Banking Rebound?

noreply@blogger.com (Pat Townsley) — Tue, 21 Apr 2009 06:05:00 +0000

The New York-based Citigroup reported first-quarter net income of $1.6 billion, after posting a loss of $5.11 billion in the period a year earlier. Revenue was $24.8 billion, up 99 percent. Hello. 99% in a quarter? Anyone? Wells Fargo also boasted record earnings in the first Quarter. How does a bank like Citi post "profits" when they've borrowed 3x from government TARP support? I guess we'll find out. The answer lies in the old statement "follow the money." So how do you get some of this money? This money that came from you; US tax revenue to support the banks in the form of government bailouts and now they're boasting of profits? My answer is to take advantage of the low 30-year fixed interest rates, generally running in the mid 4%s. Bank have to keep these loans on their books for 30 years at painfully silly long term rates. If you have thought about a refi or a purchase, when would Now be a good time? Pat Townsley, Mortgage Master. 415-485-1776. www.ptre.net

When does WaMu become Chase?

noreply@blogger.com (Pat Townsley) — Mon, 20 Apr 2009 04:29:00 +0000

When does WaMu become Chase? Great question: It's happening NOW in phases. Right now, most WaMu branches in California have been re-branded to Chase, however, WaMu accounts in California won't actually transfer to Chase's banking system until October. This means the "mechanical processes" of your banking (loans, checking, deposits) are still being done at Washington Mutual, even if it "appears" to be Chase.
May through July, WaMu branches in Washington, Oregon, Idaho and Utah will be re-branded to Chase and accounts in these states will transfer to Chase's banking system.
This summer: WaMu branches in Connecticut, Florida, Georgia, Illinois, New Jersey, New York and Texas will be re-branded to Chase and accounts in these states will transfer to Chase's banking system, and in Fall 2009 WaMu branches in Arizona, Colorado and Nevada will be re-branded to Chase and accounts in these states will transfer to Chase's banking system.

It should all be pretty "seamless," noting that if you're trying to get a LoanMod or refi with either of these institutions, you're most likely going to have challenges. Confused? I can help; Better! Pat Townsley, sane mortgages for purchases and refinances. 415-485-1776. http://www.ptre.net/