|
Mariner Mortgage Inc. is often called upon by the media as a trustworthy and reliable source of information for stories about real estate and mortgage matters. Here are a few recent stories in which Mariner Mortgage and its staff were interviewed by local media:
Television:
http://www.ksby.com/Global/story.asp?s=7301090
Behind the housing foreclosure numbers
Newspaper:
COUNTY FEELS FALLOUT FROM SUBPRIME LOAN DEFAULTS
FINANCING A HOME PURCHASE IN SLO COUNTY
IN ITS WAKE, LENDING INDUSTRY IS TIGHTENING REQUIREMENTS, BUT LOAN PRODUCTS FOR PEOPLE WITH 'WOUNDED CREDIT' WILL STILL BE AVAILABLE, SAYS OWNER OF LOCAL MORTGAGE COMPANY
Published: Sunday, April 8, 2007
Section: Business
Edition: Tribune
Page: C1
Lines: 111
By Julie Lynem
jlynem@thetribunenews.com
As a mortgage broker, Michael Hahlbeck helps potential homeowners make sound financial decisions. "A client may see a house they want in the worst way, but they can't afford it,'' said Hahlbeck, co-owner of Mariner Mortgage in Arroyo Grande and president of the North Central Coast chapter of the California Association of Mortgage Brokers. "It's up to the loan officer to educate them and show them why that's not the case, and why they can't take advantage of certain loans.''
That advice is critical given the recent mortgage industry fallout, which has focused on subprime lenders who approved risky home loans for people with serious credit issues and who could not qualify for a traditional loan. Industry concerns have prompted lawmakers and federal regulators to ask tough questions about such lending practices. Right now, Hahlbeck said the impact on local homeowners and mortgage brokers is uncertain. The topic has nevertheless captured the attention of many brokers in the county.
"I know of a company that's adding staff and another reducing staff. It just depends,'' said Hahlbeck, referring to the health of local brokers. "It's not fair to say it's going to be great or that there's going to be rain for the next 100 days. But I do believe that we will return to a more normal business cycle."
Hahlbeck recently spoke to The Tribune about what the future holds for the mortgage industry, and why it's important for homeowners and brokers to be realistic when approaching borrowing. Q:Subprime lenders and the mortgage industry as a whole have been hit hard in some parts of California and in other cities across the nation. How are we faring in San Luis Obispo County?
A:I hear from a lot of our investors that the ethics adhered to in our county are at a much higher standard than in many other areas. All in all, I see us faring well.
Q:What do you mean by a higher standard? What are we doing that others in the industry are not?
A:You don't see the fraud in San Luis Obispo County that can take place in other areas because brokers believe in showing consumers what will work and what's realistic for them. You want people to be in a situation where they're able to meet their long-term and shortterm goals, but not be set up for failure down the road.
Q:Why did some lenders not steer consumers away from risky home loans?
:This is my opinion here ... but I believe some lenders probably didn't view this as a long-term career and saw it as a quick dollar. They put people in loans that they were ill-equipped to support for any long period of time. Everything is fine as long as the housing market continues to rise, but all it takes is a leveling off to create a problem.
Q:So, what type of clients should take advantage of creative financing options?
A:The interest-only loans and payment option adjustable- rate mortgages ... those loans are getting beat up in the press, but they're not necessarily bad loans. They're for people who manage their credit, whose income will grow over time and who have the ability to make that payment.
Q:What can consumers do to protect themselves?
A:My best advice is to work with someone professional. Interview a few different people and find out who you feel comfortable with. Go through loan programs that might be available, not just the cheapest at that given moment. What might be the cheapest now may not be three to five years from now. I would also say to annually review your mortgage with a professional to make sure it's the right loan for you.
Q:What about the lending business? Do you foresee tighter restrictions?
A:Short-term there will be some tightening. You're already starting to see some programs go away. But longterm, I don't think it will change a whole lot. I'm approaching my 17th year in the business, and I've seen it where at one point it was hard or almost impossible to do stated income loans. Then, they became the standard for a long time. The subprime market was built to keep home ownership available to people who traditionally haven't had it. Ultimately, those loans will still be available. They've helped a lot of young couples with wounded credit to get into their first home.
Q:Still, the tougher restrictions mean that many borrowers will be required to have more of a down payment, right?
A:Borrowers that typically fall into the subprime category will now have to have a down payment. How much of a down payment will depend on the reason for the subprime classification and credit score of the borrower.
Q:How do you think the fallout will affect the mortgage broker business in San Luis Obispo County into the future?
A:There will be attrition, but the good ones will survive. We've been through slowdowns before. This isn't the first time. People may remember the early 1990s. The major difference now is that this is a little more abrupt. It's just one of the cycles of the business. For so long, this market was going at 100 mph. That's not sustainable forever.
Q:How will problems in the subprime sector impact the local housing market?
A:At this point, it's extremely difficult to put a finger on what the effect will be. I would expect that although the number of default notices is higher than in the past, it will not crush our local market.
* * *
SUBPRIME LOANS
A loan that is offered at a rate above prime to individuals who do not qualify for prime rate loans. Subprime loans tend to have a rate that is 0.1 percent to 0.6 percent higher than the prime rate. Although the additional percentage may seem small, for mortgages and other large loans, this translates to thousands of dollars worth of additional interest payments.
SOURCE: FINANCIAL-DICTIONARY
HOW LOW WILL IT GO?
SLO AILING HOUSING MARKET
WITH HOME SALES DOWN 28 PERCENT FROM LAST YEAR AND THE MEDIAN PRICE BACK BELOW $500,000, IT'S ANYONE'S GUESS WHEN OWNERS AND SELLERS WILL SEE SOLID GAINS AGAIN
Published: Sunday, October 28, 2007
Section: Business
Edition: Tribune
Page: D1
Lines: 114
By Julie Lynem
jlynem@thetribunenews.com
W ith San Luis Obispo County home sales for September plunging to their lowest level in 18 years and the median price dipping below $ 500,000 last month, economists and local real estate experts say it may be several years until the housing market begins to gain strength.
The most recent figures from DataQuick, a Southern California firm that tracks home sales and prices, show that sales of all homes -- single- family detached, condominiums and new houses -- declined nearly 28 percent from the previous year. That's the lowest September sales on record since DataQuick began keeping such statistics in 1989. Single- family home sales plummeted 37.3 percent from the previous year and condominium sales declined 13.3 percent. Sales of new homes, however, increased 14 percent in September.
Meanwhile, the median price of all homes declined last month to $495,000, an 8.2 percent dip from the previous year when the median -- the statistical point where half of homes sold for more and half for less--stood at $539,500. The median for new home sales decreased 16.3 percent from the previous September, while single-family detached houses dropped 7 percent from the prior year.
"Where's the bottom? That's the same question people were asking when we saw homes appreciating. They wanted to know how high will it go,'' said Keith Byrd of Century 21 Hometown Realty. "Where prices are going now is anybody's guess. But there is room where we will still see a correction. I don't see anything right now that will bring the buyers out.''
Dan Hamilton, economist with the UCSB Economic Forecast Project, said the coming months will provide a better gauge of where the housing market stands and what the broader implications will be for the economy.Hamilton doesn't see a recession in the future, but he said that will largely depend on how far and how long prices decline and on the ability to stave off job losses. A recession occurred in the early 1990s because job losses were significant, he said, forcing people to sell their houses and move out of the area.
"If home prices really plummet, you could see consumers pull back on consumption, and that could weaken economic growth substantially. If the value of your home is going down, people take that as a signal that their future wealth is not so much. For most people, their home is a large percentage of their wealth.''
More supply, lower prices
Growing inventory county-wide, most notably in the North County and South County, is a big indicator that the housing market continues to be on a bumpy course. As of Oct. 1, the county had about 14.8 months of inventory. That's up from 8.1 months in early July, Byrd said.
"Six months is a neutral market,'' Byrd said. "Anything below six months is a sellers' and above is a buyers' market.''
Lenny Jones, a broker associate with Jones Goodell&Associates in Arroyo Grande, said the increased supply of homes means a continued dip in prices in this latest real estate cycle.
The county, he said, has experienced "three previous up-and- down real estate cycles'' that have lasted from six to eight years.
"If we are repeating the previous cycles, then we have four more years of a softening market. My prediction is that real estate value will decrease for another 12 to 18 months, then hopefully see a leveling off.''
Jones believes the county will see a 20 percent decrease in real estate values, which means that "buyers should expect to be in the driver's seat for the next couple of years."
As for sellers, he said they should anticipate competition from other people looking for an eager buyer. That means prices will drop even further as sellers try to "beat out their neighbors down the street.''
Lending changes
Slowing home sales can also be attributed to another factor: a tougher market for home loans, said Andrew LePage, a spokesman for DataQuick. In fact, fewer people in the county are obtaining jumbo mortgages -- or nonconforming mortgages -- in which the loan amount is above the limit set by the two largest secondary market lenders in the United States, Fannie Mae and Freddie Mac. That amount is currently set at $417,000. Jumbo mortgages also tend to have slightly higher interest rates than conforming loans and are a higher risk for lenders.
"We saw a 48.5 percent decrease from August to September in the number of homes purchased with jumbo loans,'' he said. "For those under the $417,000 jumbo line, the number of sales dropped 12.9 percent. It's a trend we saw across the state. Fewer people can afford to stretch.''
Michael Hahlbeck, co-owner of Mariner Mortgage in Arroyo Grande, said there have been fewer jumbo loans locally. But even though lending practices have tightened, Hahlbeck said attractive loan programs are still available for people in a range of incomes, provided they have proof of earnings and good credit.
"We're getting back to the old way of buying a house," he said. "You have to bring something to the table."
Although buyers in the $500,000 to $700,000 range have slowed, the downturn has sparked an interest in many first-time buyers looking for a deal.
"The price correction that has taken place makes them feel like it's a good opportunity that they felt they missed a couple of years ago," he said.
Jones said the key now is for buyers to look at home ownership as a long-term investment.
"If you are buying a house to provide a roof over your head and to make that house your home for five years or more, in the long run, you will be ahead,'' Jones said.
"If you are looking for short-term investment to make the big bucks, sorry -- today is not the day," he added.
|