Local Mortgage Update: From the Horse’s Mouth

Even I get overwhelmed with all the various articles on “the mortgage meltdown”, I can only imagine how someone not in the business must feel these days.  So I finally decided to ask my mortgage contacts face-to-face what is going on right now, so that buyers and sellers have accurate information. My email inbox has been getting filled lately from mortgage brokers telling me that they are still writing loans – but what the heck does that mean?  We want the facts, thank you very much… so here’s the low down on what local mortgage contacts are telling me today.

Susan O’Driscoll, Princeton Capital confirms that lender guidelines are changing almost daily.  She just showed me today’s update regarding lenders IndyMac, LandAmerica Financial, CIT, and Homecomings Financial.  In yesterday’s memo titled “The good news…”, Susan lists the loans that are available.  Compared to a few months ago, the packaging may be different; guidelines more stringent.  Some lenders may require higher FICO scores now; some may agree to the same loan but with “full documentation” instead of “stated income” only. The loans that were popular for a few years – the 100% financing with stated income, stated assets – has taken an extended vacation.  Coldwell Banker is affiliated with Princeton Capital, and local rep Susan O’Driscoll is a wonderfully knowledgeable and handy resource!

Bank of America’s Bobby Zimmer says, San Mateo County has spiked recently in foreclosures, but is still low compared to other California regions.   He reports, the biggest difference for local buyers who may be faced with a median home price of a million dollars is the limited supply of Jumbo (nonconforming) loans now available.    Bank of America is definitely writing them.  When a bank does not have to rely on the secondary market for funding AND has its own underwriting, the internal accountability is in place.  Conforming loans (under $417K) are more easily written – in part because of the backing of Fannie Mae and Freddie Mac.

A Princeton Capital report also notes that analysts estimate 60% of small mortgage brokers that existed in 2006 will vanish.  Bobby at Bank of America agrees that many small brokers that he knows are looking for a job.  There are highly professional and knowledgeable mortgage representatives and lenders out there, but you have to do your homework.

Latest update:  I did not get feedback from Countrywide in time for this blog.  So I’ll either do a follow up or we will hear from Countrywide directly in a comment.  If any other mortgage professional wants to make a useful contribution here for buyers and sellers, please do.

Quiet neighborhood reaps the benefits of P.O.S.T.

When I show our community to out of town buyers, I make a point of sharing a few reasons why this area is so unique.  One of those reasons is the work of the Peninsula Open Space Trust whose mission is to preserve open space on the San Mateo County Coast since 2001.  You may not notice their hard work as a visitor, but we enjoy its benefits every day when you live here.  So far, 20,000 acres has been preserved from future development on the San Mateo County coast.  Oh my gosh, that’s huge!  And the most recent news reported by the Half Moon Bay Review this week, that POST purchased 206 acres of Wavecrest caused a community-wide collective sigh of relief.  This work will alter the future of the Coastside neighborhoods and communities forever.

Let’s talk about one of those neighborhoods today…Clipper Ridge is a quaint neighborhood of approximately 200 homes which sits at a corner of the base of the P.O.S.T. land Rancho Corral de Tierra (which is over 4200 acres, by the way), just north of the town of El Granada.  Henry Doelger, most known for his Daly City development, bought this land in the 1960’s and, according to historians, wanted to turn this area into a resort.  That may happen yet, with Harbor Village under way.  When it became clear that Doelger’s dreams would not materialize, he sold some of his lots and built single family homes on the rest.

The ridge directly behind the neighborhood has been a natural resource enjoyed by neighborhood residents and others for many years.  From the neighborhood, one can find themselves in another world of hiking trails, native wildflowers, and drop-dead gorgeous views, and the freedom to let your mind go… To get to the drop-dead gorgeous views will take you more than just a few minutes unless you’ve been in aerobic training.  It is a bit of a hike, but worth it once you get there.  Okay, just for you, my friend Cameron is hiking “cardiac hill” as locals call it to get the photo for you.  Enjoy…

The neighborhood was developed in the 1970’s of mostly 3 bedroom, 2 bathroom.  Mostly single level homes; there are a few with a second story, and/or 4 bedrooms.  Take a walk through Clipper Ridge on a weekend day and you are likely to see young families, dog walkers, or kids on their bikes headed to the (neighborhood) park.  Perhaps some even stroll down to nearby Café Classique, the Harbor, or Surfer’s Beach.

The new E-Pro

Having been in real estate for a few years now, it became apparent that the Realtors of the future will understand how to maximize the powers of the web to better serve their clients’ needs.  Enter the E-Pro, a Realtor who has completed a course of study to better understand the ever-growing use of the internet for the real estate business.   And yes, I just completed the course.

Consumers want and need tech-saavy Realtors, even if the less tech-oriented clients don’t know it.  The industry is going through a major shift, certainly.  The real estate information available to consumers is out there… about time!  I was not a Realtor when the information was closely held in hard copy binders of brokerage offices.

I believe another part of your Realtor’s value is making sense of all the information and to communicate to you the parts that are relevant to that client’s situation.  Also, when it comes time to buy or sell a house, I still believe consumers want to work with someone who knows their local market, knows how to protect their client by clearly explaining the contract and ever changing disclosures, and knows how to competently close escrow, which I liken to landing an airplane (even though I’ve never landed an airplane, it’s what I imagine it to be like.)

 This is my first blog so I’m keeping it short!

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