Zac Pasmanick - The Zac Team


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MBA Reports a Decline of 8.9% in Mortgage Loan Applications

by the zac team at Ponce Realty

Hello neighbors,

According to recent reports from the Mortgage Bankers Association (MBA), mortgage loan applications experienced a decline in numbers by 8.9% last week.

The MBA reported a decline in the refinance index for the second consecutive week after a month and a half of consecutive increases with a 10.8% decrease from the week prior.

In addition, the MBA reported a decline of 0.4% with the seasonally adjusted purchase index as well as the unadjusted purchase index with a drop of 21.9% from the week before, and is 39.7% below the previous year's number.

In relation to the four-week moving averages, there was a 0.8% drop in the seasonally adjusted market index and a 2% increase in the purchase index with the refinance index being off by 1.4%.

Lastly, refinancing applications made up 80.5% of all the mortgage applications last week which was actually down from 81.9% a week earlier.

Hello neighbors,

Even though the real estate market is starting to look more and more appealing everyday with factors such as record low mortgage rates and affordable home prices, those in the market to buy a home still have one major concern. That one concern is, getting approved for a home loan. In today's economy lenders are tightening up on their lending standards. Here are the top 7 reasons you or someone you know may get denied for a home loan.

Poor Credit:

Even though a buyer may have a pretty hefty down payment or good equity built up in their home, if their credit score is not too appealing the chances of obtaining a new home loan or refinance from traditional banks are not too great. Lenders are starting to look for above average credit scores.

Insufficient Liquidity:

Banks are not too keen with taking risk on buyers who do not have a down payment of at least 20%-30% and strong excess liquidity.

Lack of Income:

One may think because he or she has a sufficient down payment (20%-30%), a great deal of equity in their home, and a great credit score that the process of obtaining a loan will be a breeze, think again. Banks want to see at least 2 to 5 years of consistent proof of income. This factor may be somewhat challenging for retired borrowers.

Lying on the Application:

As the old saying goes, lying will get you nowhere and lenders are firm believers in this saying. If you've decided to stretch the truth on your application you've basically decided you don't want to be approved. A few words of wisdom, tell the truth.


As with many things, debt is not necessarily a good look. If the borrowers debt to income ratio is not too appealing, the chances of being approved are pretty slim.


As we mentioned in reason number 3, lenders are looking for at least 2 to 5 years of consecutive work history.

Self Employment:

Although entrepreneurship can be consider a good thing and great accomplishment, lenders are becoming reluctant in approving home loans to borrowers that are self employed.

Although many may think lenders are almost making it impossible for the average borrower to obtain a home loan, one way to look at these changing standards is to remember that this will only better the housing market in the long run.


Future of Mortgage Giants Freddie Mac and Fannie Mae Shall Be Determined Next Month

by the zac team at Ponce Realty

Greetings neighbors,

According to recent reports, The Obama Administration has decided to hold a conference in August to determine the fate of Fannie Mae and Freddie Mac after being criticized for not having a set plan for the mortgage giants.

As for a little background of the two, these companies were created by the U.S. government as a combination of private company and federal agency to assist with the availability of mortgages. The two companies purchase home loans from lenders, package them into bonds with a guarantee against default, and sell them to investors. Both companies combined own or guarantee approximately 31 million home loans in the U.S. that are worth more than $5 trillion. This number makes up more than half of all the country's mortgages.

Two years ago, the two companies started experiencing financial difficulty and was soon taken over by the government.

Early this week, the Obama Administration said they will hold the conference on August 17th at the Treasury Department.

Thinking About an FHA Loan? Check out a Few Factors Borrowers Should Know

by the zac team at Ponce Realty

Greetings neighbors,

With the growing popularity of FHA loans amongst home buyers, there is a lot of misconception regarding these loans that are mortgages issued by qualified lenders and insured by the Federal Housing Administration. Take a look at some factors borrowers should know regarding FHA loans.

FHA loans are not only for borrowers in the lower-income bracket:

There is no income restrictions associated with FHA loans and they are available to everyone. However, borrowers are required to show proof of income and assets through proper documentation to ensure they will be able to afford a home.

FHA loans are not only for first time buyers:

FHA loans are for first time buyers, 2nd time buyers, 3rd time buyers, and so forth. Those in the market to buy a home can look into FHA loans as an option.

FHA loans are not necessarily small amounts; some can be over the amount of $700,000:

Recently there has been an increase in the maximum amount of the original cap of $362,790 to $793,750 of FHA loans by the government to help keep the housing market stabilized. Based on what county you live in determines the amount of money that can be borrowed.

FHA loans are not in conjunction with section 8:

Even though both programs are provided by HUD, FHA loans are not affiliated with section 8, these mortgages are only insured by the Federal Housing Administration. This insurance enables lenders to lend more freely knowing they will be repaid even in the event of a default by the borrower.

FHA loans are often more affordable than conventional loans:

Normally, borrowers will find that FHA loans offer the same interest rates as other loans however, FHA loans offer a lower down payment, some as low as 3.5%.

Distressed Homeowners Look Outside the Obama Modification Program for Help

by the zac team at Ponce Realty

Greetings neighbors,

It looks like the Obama Administration's attempt to help distressed homeowners is dropping in the ranks.

According to a recent report, many distressed homeowners are beginning to drop out of the Home Affordable Modification Program and are starting to acquire private help from their mortgage companies.

Although recent data showed a 15% increase in permanently reduced payments last month to 340,459; the rate of temporary three month modifications increased by only 2.5% to 1,244,184.

In addition, recent data showed an increase in the cancellation of mortgage modifications. In comparison to April 2010, there was a 55% increase in cancellations for May 2010. Permanent modification cancellations also showed a great increase by rising 70% to 6,357 last month.

The report also included that distressed homeowners who experienced the cancellation of their temporary government modifications received alternative modifications from one of the eight mortgage servicer giants such as: Bank of America, CitiMortgage and JPMorgan Chase.

The overall goal of the Obama Administration's $75 billion Home Affordable Modification Program was to modify the mortgages of 3-4 million distressed homeowners by the year 2010.

Recent Numbers from Genworth Shows an 81% Increase in Foreclosure Prevention

by the zac team @ RE/MAX Greater Atlanta

Hello neighbors,

During the four-quarter period which ended March 31st, Genworth Financial (mortgage insurer) assisted servicers with foreclosure prevention workouts on a total of $3.4 billion mortgages.

This has produced an 81% increase in the dollar amount of saved mortgages in comparison to this time last year. Along with lenders and servicers, Genworth has completed 23,360 mortgage workouts within the past 12 months.

As for the actual breakdown: 33% of loan modifications accounted for all workouts, HAMP mods accounted for 24%, 19% consisted of repayment plans, short sales took 18%, the Homesaver Advance Program by Genworth accounted for 4%, and the other 2% consisted of other workout types.

The top 10 Leaders in the foreclosure prevention efforts included: California with $347 million mortgages, Florida with $342 million mortgages, Arizona with $175million mortgages, Texas with $173 mortgages, Illinios with $167 million mortgages, Georgia with $164 million mortgages, New York with $152 million mortgages, New Jersey with $144 million mortgages, North Carolina with $122 million mortgages, and Maryland with $107 million mortgages receiving workouts.

Nationally, there was a total of 80% of workouts categorized as "cures" which enabled borrowers to become current on their mortgages. Currently the company's cure rate sits above 80% in 35 of the 50 United States.

Lastly, there was an average savings of $144,730 per borrower on each mortgage workout.

Displaying blog entries 1-6 of 6




Contact Information

Photo of Zac Pasmanick  Real Estate
Zac Pasmanick
RE/MAX Metro Atlanta Cityside
600 Virginia Avenue NE
Atlanta GA 30306
Office: 404-564-7272


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