Honestly, I’m not just saying that. While many agents will say that, few have the information to back it up. In Southwest Florida, as well as nationally, we do have reasons to believe that now is a good time to sell. And, these reasons are not just because it is springtime! The weather does have some effect on home sales, however, a bigger influence on the housing market is the overall economic situation and its impact on buyers’ psyche. The point is that while it is the best time of year, there are other economic indicators that point to success in real estate sales now and in 2012 overall.

To get the full picture, let’s take a look at 2011 first. Normally, the home-sale market in Southwest Florida stays busy until early June, when the market tends to slow down a bit for the summer. However, if you waited until spring to sell last year, you would have missed the best-selling opportunity of the first half of 2011. This was due to the expiration of the homebuyer stimulus package. The homebuyer tax credit program accelerated home purchases creating a mini bubble in 2010 that was followed by a significant slowdown in home sales.

Negative economic news also played a big part in the sluggish home sales during most of last year generally speaking. The stock market was unpredictable, and the earthquake in Japan had repercussions for many industries. Plus, Greece was on the brink of bankruptcy, and the future of the European Union was in doubt. Bad economic news and massive uncertainty lowers consumer confidence. Buyers need to have jobs, but they also need to feel confident in their future to take on a major purchase like a house.

Now, here’s a house hunting tip: The best time to sell is when consumer confidence is on the upswing. Right now, interest rates are low; unemployment is decreasing; the economic news is mild; and there are more buyers in our local market niche than there are sellers. A high-demand, low-inventory market gives sellers an edge. This is a bit of a different picture than last year.

The Conference Board Consumer Confidence Index fell just a bit in March 2012 to 70.2, but was up sharply in February 2012. The improvement in consumer confidence in February 2012 can be contributed to less pessimism about current business and employment conditions and more optimism about the short-term outlook for the economy and job prospects despite a rise in gas prices. Interest rates are currently at historic lows and are expected to stay low for the rest of the year.

Capital Economics, an analytics firm, expects the housing crisis to end in 2012 year partially due to lenders loosening credit. According to Capital Economics, one indicator of loosening is that banks are now lending 82 percent of loan-to-value (LTV), compared with a low of 74 percent LTV reached in mid-2010. This means qualified buyers need less cash to buy, which should lead to more sales this year.

Additionally, here is what leading economists in the national housing industry are saying:

Doug Duncan, chief economist, Fannie Mae

“Conditions are coming together to encourage people to want to buy homes. Americans’ rental price expectations for the next year continue to rise, reaching their record high level for our survey this month. With an increasing share of consumers expecting higher mortgage rates and home prices over the next 12 months, some may feel that renting is becoming more costly and that homeownership is a more compelling housing choice.”

Celia Chen, senior director of housing economics, Moody’s

“The residential property market is recovering, as the factors underlying demand and supply strengthen. Even after accounting for unusual seasonal patterns brought on by the unusually warm winter, conditions have not been this strong since the government ended homebuyer tax credits in 2010.”

Mark Vitner, senior economist, Wells Fargo

“Existing home sales dropped 2.6 percent, but are up 5.2 percent from a year ago. While existing sales are down for the second consecutive month, we are likely continuing to see payback from increases earlier this year. That said, we could see one more month of disappointing data, but we still contend the recent declines are not indicative of the trend. Stabilization will become more apparent once we return to normal weather.”

Mark Fleming, chief economist, CoreLogic

“Since the peak in home prices, mortgages rates have declined and affordability has risen dramatically. Housing affordability is at levels not seen since prior to the early 1990s …While real estate professionals often say that “now is a good time to buy,” it is clear today that April 2006 was probably not a good time to buy, while now may well be the time.”

These positive indicators combined with a drop in homes for sale at the end of 2011 and a decrease in unemployment may provide an opportunity for sellers in spring and summer 2012, provided their homes are priced right for the market.

Right now, the Southwest Florida’s real estate market is experiencing a shortage of available listings. The number of properties placed on the market in March 2012 is the lowest for the month in nine years. On April 1, 2012, available inventory in the combined Naples, Bonita Springs and Estero market stands at 7,625 (4,106 condominiums and 3,519 single family homes). This is a 5% decrease from April 1, 2011 and is approximately an 8.9 month supply based on closings for the past 12 months.

In Southwest Florida, buyers are ready to buy in all price ranges, thus sellers can expect a buyer for their competitively-priced home. In some cases, sellers are receiving multiple offers including some above their suggested list price. To take full advantage of the best time to buy or sell in Southwest Florida, be sure to find an agent who can help you navigate this market and get you top dollar for your home or help you find the home of your dreams in paradise.

By D. Michael Burke, P.A. Keller Williams Elite Realty

Michael@CoconutPointRealEstate.com

www.CoconutPointRealEstate.com

AUSTIN, TEXAS (May 16, 2012) – Keller Williams Realty, Inc. announced today it has been recognized as one of America’s Top 10 Workplaces, according to the first annual National Top Workplaces list compiled by Workplace Dynamics.

“Our culture is our strongest asset and the reason that so many people want to be with us," Mary Tennant, COO of Keller Williams Realty shares. “Imagine what it would be like to work in a culture every day with people that you feel love, kindness, caring and humor with. Imagine working in an environment where there is a passion for every single person to succeed at the highest level."

“If this award proves anything, it’s that we only succeed when our associates do," added Mark Willis, CEO. “We are proud to be in business with the best who are lifting us up each day and proud to be fulfilling our mission of building careers worth having, businesses worth owning and lives worth living."

The list of National Top Workplaces is based solely on employee feedback surveyed from 805 companies of more than 1,000 employees, which included over half a million survey responses. According to survey results, Keller Williams’ ranking was based on its overall culture and high levels of organizational health including training, benefits, compensation, and work-life balance. “Put simply, the most successful companies appear to be the ones that employees believe in," said Doug Claffey, CEO at WorkplaceDynamics.

For more information and the full list of the Workplace Dynamics Nation’s Top Workplaces, please visithttp://topworkplaces.com/stories/americas-top10-workplaces.php

It never ceases to amaze me how quickly time goes by. Here we are in May already and I’m already noticing the slowing down of traffic. You can almost hear a big sigh amongst those whose businesses were booming during season this year! Additionally, there is a marked difference in inventory now available in the Southwest Florida real estate market. Typically during this time of year, we will see inventory go down. However, as history has shown, home sales in Southwest Florida remain pretty steady during the summer months. Last summer,

according the Multiple Listing Service for the Naples, Bonita Springs and Estero markets, we averaged 576 homes sales per month during the months of July-Dec 2011 – that is a pretty respectable number for a region that has an "off-season." The point is that if you are thinking about listing a property or you have a property listed currently, this is not the time to remove that listing!

Based on the sales history I mentioned above, you could say that while this season is nearing an end, we could see strong sales last year well into June 2011. The reason for this is because many of our winter visitors keep tabs on Southwest Florida long after they leave. The Internet and, of course, mobile devices have allowed those visitors to continue looking at the Southwest Florida real estate market, checking the listings and keeping in touch with agents all summer long. I expect to see that trend move into this June as well, as our snowbirds have been snatching up homes in this market all season long.

Additionally, summer buyers are a little different as well. These are buyers who have been monitoring the market all season. They’ve looked at different neighborhoods, amenities, home prices, and the market stats. These folks are now serious buyers who are at the jumping off point. And, these buyers don’t necessarily have to be in Southwest Florida. If you remove your home from the market now, you’re likely to miss these serious

buyers. You’ll also miss the decrease in inventory available, which can be helpful in seeing increased showings and activity.

You may also be inclined to ask your Realtor to remove your listing and just promote via word of mouth a.k.a. the "pocket listing." This too is the wrong thing to do for the reasons stated above AND because we know that over 95% of all real estate searches take place on the Internet. If you’re selling a home in Southwest Florida, not continuing your Internet presence is just an all-around a bad idea in any season.

Lastly, if you’re thinking of selling your home and you’re looking for representation, now may be the time for me to toot a horn. Just recently myself and my team, Team Michael Burke / Coconut Point Team, was recognized as one of just five top national agent/teams who have excelled in business growth. Featured as the cover story in Keller Williams’ national publication, Outfront, our team was credited as growing our business from $9 to $24 million in production in just one year by applying solid business planning, economic principles, and offering the best in client marketing resources.

Speaking of resources, here are some incentives and exclusive Coconut Point Team Tools and Resources to help you consider our team to represent you:

• • First, be on the lookout for our updated email Market Report! Through our new and improved email Market Report, you’ll be able to review our messages and quickly access our featured listings, market reports, and quick links to various communities and all of our exclusive market tools below!
• • Monthly Market Report. Let me present you with the most accurate data about your neighborhood including closed and active home sales.
• • The Coconut Point Press. This is my widely-read and exclusive printed publication and online edition, where your home is prominently spotlighted.
• • Elite Seller Feedback System – Take advantage of my sophisticated and exclusive system that provides valuable feedback from your showings via email, so you know what buyers are thinking.
• • Interactive Home Illustration – Give buyers what they want to see with an interactive floor place and professional videos of your home!
• • Superior Marketing Plan – Our marketing plan is unlike all others in this market! It will maximize exposure and get top dollar for your home.

There is difference between marketing and just listing a property. I am sure you will agree after you check out our unique and aggressive marketing tools to get the job done for you weather you are buying or selling.

Join our team today and let us help you achieve your objective, whether it’s buying or selling!

If your not sure who to call, I’m confident that I can help you sell your property. Call me today at 239-498-7600 or email Michael@CoconutPointRealEstate.com

Contributed by D. Michael Burke, P.A. Keller Williams Elite Realty
Michael@CoconutPointRealEstate.com / www.CoconutPointRealEstate.com

What would you say is the "Happiest Seaside Town" in the USA?

Well, it’s Kiawah Island, S.C., according to Coastal Living Magazine’s new rankings.

The list was compiled using a complicated formula involving editors’ picks, the Gallup Healthways Well-Being Index, sunny days, beach quality, low crime, commute time, education of residents and other factors. The other waterfront places where life is supposedly a smiley face:

2. Naples, Fla.

3. Sausalito, Calif.

4. Lake Bluff, Ill.

5. Tiburon, Calif.

6. Laguna Beach, Calif.

7. Half Moon Bay, Calif.

8. Chatham, Mass.

9. Jupiter, Fla.

10. Lahaina, Hawaii

11. Marblehead, Mass.

12. Stinson Beach, Calif.

13. Cohasset, Mass.

14. Duxbury, Mass.

15. Solomons Island, Md.

There is a marked difference in inventory now available in the Southwest Florida real estate market. Typically during this time of year, we will see inventory go down. However, as history has shown, home sales in Southwest Florida remain pretty steady during the summer months. Last summer, according the Multiple Listing Service for the Southwest Florida markets averaged 576 homes sales per month during the months of July-Dec 2011 – that is a pretty respectable number for a region that has an “off-season.” The point is that if you are thinking about listing a property or you have a property listed currently, this is not the time to remove that listing!

Based on the sales history I mentioned above, you could say that while this season is nearing an end, we could see strong sales last year well into June 2011. The reason for this is because many of our winter visitors keep tabs on Southwest Florida long after they leave. The Internet and, of course, mobile devices have allowed those visitors to continue looking at the Southwest Florida real estate market, checking the listings and keeping in touch with agents all summer long. I expect to see that trend move into this June as well, as our snowbirds have been snatching up homes in this market all season long.

Additionally, summer buyers are a little different as well. These are buyers who have been monitoring the market all season. They’ve looked at different neighborhoods, amenities, home prices, and the market stats. These folks are now serious buyers who are at the jumping off point. And, these buyers don’t necessarily have to be in Southwest Florida. If you remove your home from the market now, you’re likely to miss these serious buyers. You’ll also miss the decrease in inventory available, which can be helpful in seeing increased showings and activity.

You may also be inclined to ask your Realtor to remove your listing and just promote via word of mouth a.k.a. the “pocket listing.” This too is the wrong thing to do for the reasons stated above AND because we know that over 95% of all real estate searches take place on the Internet. If you’re selling a home in Southwest Florida, not continuing your Internet presence is just an all-around a bad idea in any season.

Lastly, if you’re thinking of selling your home and you’re looking for representation, now may be the time for me to toot a horn. Just recently myself and my team, Team Michael Burke / Coconut Point Team, was recognized as one of just five top national agent/teams who have excelled in business growth. Featured as the cover story in Keller Williams’ national publication, Outfront, our team was credited as growing our business from $9 to $24 million in production in just one year by applying solid business planning, economic principles, and offering the best in client marketing resources.

Speaking of resources, here are some incentives and exclusive Coconut Point Team Tools and Resources to help you consider our team to represent you:

• First, be on the lookout for our updated email template! Through our new email template, you’ll be able to review our messages and quickly access such as our featured listings, market reports, and quick links to various communities and all of our exclusive market tools below!
• Monthly Market Report. Let me present you with the most accurate data about your neighborhood including closed and active home sales.
• The Coconut Point Press. This is my widely-read and exclusive printed publication and online edition, where your home is prominently spotlighted.
• Elite Seller Feedback System – Take advantage of my sophisticated and exclusive system that provides valuable feedback from your showings via email, so you know what buyers are thinking.
• Interactive Home Illustration – Give buyers what they want to see with an interactive floor place and professional videos of your home!
• Superior Marketing Plan – Our marketing plan is unlike all others in this market! It will maximize exposure and get top dollar for your home.

There is difference between marketing and just listing a property. I am sure you will agree after you check out our unique and aggressive marketing tools to get the job done for you weather you are buying or selling.

Join our team today and let us help you achieve your objective, whether it’s buying or selling!

D. Michael Burke
Team Michael Burke / Coconut Point
Keller Williams Elite Realty
Michael@CoconutPointRealEstate.com
www.CoconutPointRealEstate.com

After reading this, ask yourself, would we as a country be in this turmoil if our leaders, past and present, shared these beliefs.

OUR REAL ROOTS:
This is one e-mail that needs to be shared. But then, we may already be too late. God help us.

Did you know that 52 of the 55 signers of The Declaration of Independence were orthodox, deeply committed Christians? The other three all believed in the Bible as the divine truth, the God of scripture, and His personal intervention.

It is the same congress that formed the American Bible Society. Immediately after creating the Declaration of Independence, the Continental Congress voted to purchase and import 20,000 copies of scripture for the people of this nation.

Patrick Henry, who is called the firebrand of the American Revolution, is still remembered for his words, ‘Give me liberty or give me death. But in current textbooks the context of these words is deleted. Here is what he said:
“An appeal to arms and the God of hosts is all that is left us. But we shall not fight our battle alone. There is a just God that presides over the destinies of nations. The battle sir, is not of the strong alone. Is life so dear or peace so sweet as to be purchased at the price of chains and slavery? Forbid it almighty God. I know not what course others may take, but as for me, give me liberty, or give me death.”
These sentences have been erased from our textbooks.

Was Patrick Henry a Christian? The following year, 1776, he wrote this ‘It cannot be emphasized too strongly or too often that this great nation was founded not by religionists, but by Christians; not on religion, but on the Gospel of Jesus Christ. For that reason alone, people of other faiths have been afforded freedom of worship here.’

Consider these words that Thomas Jefferson wrote on the front of his well- worn Bible: ‘I am a Christian, that is to say a disciple of the doctrines of Jesus. I have little doubt that our whole country will soon be rallied to the unity of our Creator and, I hope, to the pure doctrine of Jesus also.’

Consider these words from George Washington, the Father of our Nation, in his farewell speech on September 19, 1796:

‘It is impossible to govern the world without God and the Bible. Of all the dispositions and habits that lead to political prosperity, our religion and morality are the indispensable supporters. Let us with caution indulge the supposition that morality can be maintained without religion. Reason and experience both forbid us to expect that our national morality can prevail in exclusion of religious principle.’

Was George Washington a Christian? Consider these words from his personal prayer book: ‘Oh, eternal and everlasting God, direct my thoughts, words and work. Wash away my sins in the immaculate blood of the lamb and purge my heart by the Holy Spirit. Daily, frame me more and more in the likeness of thy son, Jesus Christ, that living in thy fear, and dying in thy favor, I may in thy appointed time obtain the resurrection of the justified unto eternal life. Bless, O Lord, the whole race of mankind and let the world be filled with the knowledge of thy son, Jesus Christ.’

Consider these words by John Adams, our second president, who also served as chairman of the American Bible Society.

In an address to military leaders he said, ‘We have no government armed with the power capable of contending with human passions, unbridled by morality and true religion. Our constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other.’
How about our first Court Justice, John Jay?

He stated that when we select our national leaders, if we are to preserve our Nation, we must select Christians. ‘Providence has given to our people the choice of their rulers and it is the duty as well as the privilege and interest of our Christian Nation to select and prefer Christians for their rulers.’
John Quincy Adams, son of John Adams, was the sixth U.S. President.

He was also the chairman of the American Bible Society, which he considered his highest and most important role. On July 4, 1821, President Adams said, ‘The highest glory of the American Revolution was this: it connected in one indissoluble bond the principles of civil government with the principles of Christianity.’

Calvin Coolidge, our 30th President of the United States reaffirmed this truth when he wrote, ‘The foundations of our society and our government rest so much on the teachings of the Bible that it would be difficult to support them if faith in these teachings would cease to be practically universal in our country.’

In 1782, the United States Congress voted this resolution: ‘The congress of the United States recommends and approves the Holy Bible for use in all schools.’

William Holmes McGuffey is the author of the McGuffey Reader, which was used for over 100 years in our public schools with over 125 million copies sold until it was stopped in 1963. President Lincoln called him the ‘Schoolmaster of the Nation.’

Listen to these words of Mr. McGuffey: ‘The Christian religion is the religion of our country. From it are derived our notions on character of God, on the great moral Governor of the universe. On its doctrines are founded the peculiarities of our free institutions. From no source has the author drawn more conspicuously than from the sacred scriptures. From all these extracts from the Bible I make no apology.’

Of the first 108 universities founded in America, 106 were distinctly Christian, including the first.

Harvard University, chartered in 1636. In the original Harvard Student Handbook rule number 1 was that students seeking entrance must know Latin and Greek so that they could study the scriptures:
‘Let every student be plainly instructed and earnestly pressed to consider well, the main end of his life and studies is, to know God and Jesus Christ, which is eternal life, John 17:3; and therefore to lay Jesus Christ as the only foundation of all sound knowledge and learning. And seeing the Lord only giveth wisdom, let everyone seriously set himself by prayer in secret to seek it of him (Proverbs 2:3).’
For over 100 years, more than 50% of all Harvard graduates were pastors!

It is clear from history that the Bible and the Christian faith, were foundational in our educational and judicial system. However in 1947, there was a radical change of direction in the Supreme Court.

Here is the prayer that was banished:
‘Almighty God, we acknowledge our dependence on Thee. We beg Thy blessings upon us and our parents and our teachers and our country.
Amen.’
In 1963, the Supreme Court ruled that Bible reading was outlawed as unconstitutional in the public school system. The court offered this justification: ‘If portions of the New Testament were read without explanation, they could and have been psychologically harmful to children.’

Bible reading was now unconstitutional , though the Bible was quoted 94 percent of the time by those who wrote our constitution and shaped our Nation and its system of education and justice and government.

In 1965, the Courts denied as unconstitutional the rights of a student in the public school cafeteria to bow his head and pray audibly for his food.
In 1980, Stone vs. Graham outlawed the Ten Commandments in our public schools.

The Supreme Court said this: ‘If the posted copies of the Ten Commandments were to have any effect at all, it would be to induce school children to read them. And if they read them, meditated upon them, and perhaps venerated and observed them, this is not a permissible objective.’
Is it not a permissible objective to allow our children to follow the moral principles of the Ten Commandments?

James Madison, the primary author of the Constitution of the United States, said this: ‘We have staked the whole future of our new nation, not upon the power of government; far from it. We have staked the future of all our political constitutions upon the capacity of each of ourselves to govern ourselves according to the moral principles of the Ten Commandments.’
Today we are asking God to bless America. But how can He bless a nation that has departed so far from Him?

Most of what you read in this article has been erased from our textbooks. Revisionists have rewritten history to remove the truth about our country’s Christian roots. I , Mary Jones, the designer of this web page, encourage all who read and agree with the words herein, to share it with others, so that the truth of our nation’s history may be told.

Wink News Now Story Created: May 03, 2012 at 10:50 PM America/New_York

FORT MYERS, Fla. — If you’re looking to buy a new home, experts say it’s a buyers market but it may not stay that way. Prices in the Fort Myers/Cape Coral area are up 14 percent in February through April compared to the same time last year.
Susan Bennett knows all about the real estate market.  She is selling a condo and says it’s been a challenge.
"If you’re really serious about buying something in southwest Florida, this is the time to do it, before the prices go any higher," said Bennett.
She’s dropped the price on her waterfront condo at Point Royale nearly $200,000 in the last three months but hopes the price will go back up.  The real estate listing site, TruLia, says Fort Myers and Cape Coral saw home prices jump 14 percent during February, March and April of this year compared to last.
"Its not surprising that the markets that are performing the best right now, as the inventories cleared, are the markets that had the biggest fall," said Denny Grimes, realtor.
Grimes says it means buyers need to act now.
"Our market is ticking up.  We saw a 33% growth in our median sales price last year.  That article is saying we have a double digit growth asking prices," said Grimes.
Having asking prices on the rise is a positive sign from 12 months ago for Bennett.
"Lots of realtors are commenting that they think that prices are higher than they were a year ago.  We’ve had quite a few people through recently.  More than we had say a year ago," said Bennett.
Fewer foreclosures, prices on the rise, and still lower interest rates, local buyers and sellers agree, its still a buyer’s market for now.
"The reason the asking prices are tracking up is because the sale prices are tracking up so sellers can get more and more aggressive," said Grimes.
Realtors warn we won’t see the historical housing numbers like we did in 2005 but it’s better for sellers and buyers than it’s been in three or four years.

10136 Orchid Ridge Ln Located in Shadow Wood at the Brooks

Award winning estate home beautifully blends the Mediterranean and Caribbean boasting custom water-fall rock-style pool/spa and reflection pool nestled to the living room, nook, library’s wall of miter windows. Family room, 3 walls of zero edge doors, built-in entertainment center. Lanai leisure areas and summer kitchen with fireplace and cathedral ceiling in cypress wood with lake and golf course views beyond. Gourmet kitchen custom cabinetry, built-in appliances, gas cook top, 2 wall ovens, granite tops and butler’s pantry. Exquisite 1st floor master suite, vestibule, walk-in closets and luxurious bath, his/her vanities, marble counter-tops and shower with tropical atrium beyond. 1st floor guest bedroom w/private bath and 2nd floor with media room, bedroom, bath, wet-bar and balcony. Array of custom detail/architecture throughout. 2 fireplaces, built-ins, travertine flooring, hardwood in library, accent in-lays, faux paint, coffer ceilings, crown molding, garage Tek storage built-in

10136 Orchid Ridge – Features

Award winning custom floor plan built by Kingon Homes

The numbers below were taking of Shadow Wood Estate homes Sold from November 10, 2011 to May 10, 2012. The lowest price per sqft of an Estate Home sold in the last 6 months is $326 Per Sqft. 10136 Orchid Ridge is currently priced at $294 per SqFt.

This home is one of the best best values in Shadow Wood

Getting good value in Shadow Wood is simple, buy good real estate when the market is low but on the rise.

The median price for Shadow Wood single family homes is on the rise after over 5 years of decreases. Buyers in Shadow Wood want a home that flows to a outdoor space with excellent views.

An ideal outdoor space should include built-in summer kitchen, fireplace, plenty of both covered sitting area and sunning area, heated pool and spa and matching marble floors tying the outdoor place and indoor place together. The most sought after view in Shadow Wood is the lake and golf course views with no homes in the background. The inside of the home should showcase the impressive outdoor space with mitered glass and 90 degree sliders perfect for opening up the home to enjoy the gorgeous Shadow Wood weather and views.

Home features should include open floor plans with private guest living spaces for family and friends, upgraded with granite throughout, 7’ crown and baseboards, marble flooring, impact windows, plantation shutters, faux painting, wet bar and more.

Getting all this at a below market price = Value

A currently example of good value currently for sale in Shadow Wood is 10136 Orchid Ridge.

Award winning estate home beautifully blends the Mediterranean and Caribbean boasting custom water-fall rock-style pool/spa and reflection pool nestled to the living room, nook, library’s wall of miter windows. Family room, 3 walls of zero edge doors, built-in entertainment center. Lanai leisure areas and summer kitchen with fireplace and cathedral ceiling in cypress wood with lake and golf course views beyond. Gourmet kitchen custom cabinetry, built-in appliances, gas cook top, 2 wall ovens, granite tops and butler’s pantry. Exquisite 1st floor master suite, vestibule, walk-in closets and luxurious bath, his/her vanities, marble counter-tops and shower with tropical atrium beyond. 1st floor guest bedroom w/private bath and 2nd floor with media room, bedroom, bath, wet-bar and balcony. Array of custom detail/architecture throughout. 2 fireplaces, built-ins, travertine flooring, hardwood in library, accent in-lays, faux paint, coffer ceilings, crown molding, garage Tek storage built-in

by Broderick Perkins
Realty Times

If you play the mortgage lottery for at shot a winning a home loan, you only need two numbers to win – 720 and 20.

A credit score of 720 or higher, combined with a down payment of 20 percent or more gives you the best shot at landing a mortgage like it’s 2006.

Of course, you must otherwise pass muster with an honest application, adequate documented income, debt-to-income ratios, etc., etc.

The Federal Reserve Board recently asked loan officers to indicate how much more or less likely it is today, compared with 2006, that their bank would originate a "GSE" (Government Sponsored Enterprise – Fannie Mae or Freddie Mac), 30-year, fixed-rate home mortgage to borrowers, based on a variety of credit score-down payment scenarios.

When it came to the 720-20 combination, 78.8 percent said chances were "about the same," 1.9 percent said chances were "somewhat better" and 9.6 percent said chances are "much more likely," according to the Fed’s latest"Senior Loan Officer Opinion Survey on Bank Lending Practices," a quarterly survey of loan officers from 58 domestic banks and 23 U.S. branches of foreign banks.

That means, 90.3 percent of surveyed loan offices said chances ranged from "about the same" to "much more likely," compared to 2006, that the bank would originate a home loan to borrowers with the 720-20 combination.

Lower the numbers on either side of the equation and the percentages of loan officers who said they would originate like it’s 2006 also fall.

Take a look.

• With a 720 credit score and a 10 percent down payment, it drops to 76.9 percent said chances ranged from "about the same" to "much more likely" today, compared to 2006, that the loan would pass muster.
• For 680-20, it was only 71.2 percent.
• For 680-10, 50 percent.
• For 620-20, 28.8 percent.
• For 620-10, 17.3 percent.

Mortgage insurance shortage

Why do banks get squeamish when borrowers come in with low credit scores and down payments?

On the down payment side, it’s not just that the buyer has a greater stake in the home with a larger down payment and is thus less likely to default.

A down payment smaller than 20 percent comes with a mortgage insurance requirement and mortgage insurance today isn’t what it used to be.

Dominated by a half a dozen insurance groups, mortgage insurance companies write policies that pay claims to banks for failed mortgages.

They typically do not pay the full amount of a loss on a foreclosure, but instead dole out claims that typically cover 20 percent to 50 percent of the loan amount, sometimes more.

In a hot market, banks and mortgage insurers can handle the loss. Not so much now.

A major scourge that brought down the housing market were no- and low-down toxic mortgages in a host of varieties that saddled down payment-poor borrowers with mortgage insurance payments. The promise was "Buy now and buy big. We’ve got your back." However, when millions of borrowers holding those loans defaulted, the mortgage insurance industry had to ante up and pay benefits. Because there were so many loans with mortgage insurance that didn’t quite cover the bill, banks took it on the chin.

When those abusive mortgage lenders failed and sank, they towed mortgage insurance companies under with them.

In August last year, Arizona’s Department of Insurance took over two PMI Group Inc. companies and ordered a third to stop writing policies. PMI was the nation’s third largest mortgage insurance company.

In January this year, North Carolina likewise took control of the sixth largest mortgage insurance company, Republic Mortgage Insurance Company, the largest subsidiary of Old Republic International Corp.

With fewer companies and mortgage insurance coffers drained by foreclosures, coverage is harder to get. What is available costs more than it did during boom times.

Down payment poor borrowers who need it often can’t get it because it adds to their debt and throws their debt-to-income ratios out of whack.

Without the insurance, for low down payment borrowers seeking Fannie Mae and Freddie Mac loans, the loan doesn’t fly.

Inside credit scores

On the credit score side, a higher score, along with a large down payment don’t just indicate how well a borrower will or won’t repay the mortgage. Those borrowers are also less likely to cheat on the application process.

Right up there with mortgage insurance problems as a reason lenders won’t approve some mortgages, loan officers cited "putbacks" or "forced mortgage repurchases" as a primary reason they avoid lower scores and smaller down payments.

"Putbacks" are often trigged by fraud, often at the application level.

A "putback" is like a consumer returning an item to a retail store because the product wasn’t as advertised. A mortgage "putback" occurs when a GSE buys a loan, finds anomalies in the loan forces the originator to take the loan back as not-as-advertised.

Fraudulent or faulty origination documents, often in the borrowers’ creditworthiness or in the appraised value, is a growing reason for putbacks.

The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) recently reported mortgage loan fraud reported suspicious activity reports (MLF SARs) rose 31 in 2011, compared to 2010, because forced repurchases – putbacks – drove up the count.

A litany of lender concerns

Senior loan officers offered other reasons why lenders remain skittish, including.

• Continued concern about their bank’s exposure to residential real estate loans, in a foreclosure-ridden economic atmosphere.

• Increased concerns about the effects of regulatory changes and other government oversight, which lenders pretty much brought on themselves.

• Higher servicing costs for delinquent mortgages.

• Borrowers having a tougher time obtaining second liens to go with an origination mortgage. Second loans once eliminated the need for private mortgage insurance.

Loan officers also said they are often understaffed and when they face high volumes of applications, they can’t keep up.

Not that there’s a lot of sympathy for lenders, but distressed properties add to the normal work load. Foreclosures, short sales, modifications and other work outs have always been around, just not in the volume they are in today.

Loan officers also named difficulties in completing timely and accurate underwriting, in completing timely and accurate appraisals, and in hiring skilled servicing or loan processing staff.

Published: May 10, 2012