Chuck's Mortgage Info

Flood Insurance

2009-10-02T09:12:00.003-04:00

A friend of mine, Joe Jaynes, recently published an article regarding the ins and outs of flood insurance. Please take a few minutes to read the article and educate yourself on this very important information. Georgia residents found out recently that flood insurance is extremely important. Joe is the President of J & A Insurance Agency and is an all around great guy. Should you need further information, please contact him at 678-266-3353.

THE IMPORTANCE OF OBTAINING FLOOD INSURANCE COVERAGE

BACKGROUND

Because of frequent flooding of the Mississippi River during the 1960s and the rising cost of taxpayer funded disaster relief for flood victims, in 1968 Congress created the National Flood Insurance Program (NFIP). It has three mandates: to provide residential and commercial insurance coverage for flood damage, to improve floodplain management and to develop maps of flood hazard zones.While the comprehensive section of an auto insurance policy covers flood damage to vehicles, there is no coverage for flooding in standard homeowners, renters or commercial property insurance policies. It is available in a separate policy from the NFIP and from a few private insurers. Despite efforts to publicize this, many people exposed to the risk of floods still fail to purchase flood insurance.

Legislation was enacted in 1994 to tighten enforcement of flood insurance requirements. Regulators can now fine banks with a pattern of failure to enforce the law and lenders can purchase flood insurance on behalf of homeowners who fail to buy it themselves, then bill them for coverage. The law includes a provision that denies federal disaster aid to people who have been flooded twice and have failed to purchase insurance after the first flood.Buildings constructed in a floodplain after a community has met regulations must conform to elevation requirements. When repair, reconstruction or improvement to an older building equals or exceeds 50 percent of its market value, the structure must be updated to conform to current building codes. A 2007 NFIP study on the benefits of elevating buildings showed that due to significantly lower premiums homeowners can usually recover the higher construction costs in less than five years for homes built in a "velocity" zone, where the structure is likely to be subject to wave damage, and in five to 15 years in a standard flood zone. The Federal Emergency Management Agency (FEMA) estimates that buildings constructed to NFIP standards suffer about 80 percent less damage annually that those not built in compliance.

HOW IT WORKS

The NFIP is administered by FEMA, now part of the Department of Homeland Security. Flood insurance was initially only available through insurance agents who dealt directly with the federal program. The "direct" policy program has been supplemented since 1983 with a private/public cooperative arrangement, known as "Write Your Own," through which a pool of insurance companies issue policies and adjust flood claims on behalf of the federal government under their own names, charging the same premium as the direct program. Participating insurers receive an expense allowance for policies written and claims processed. The federal government retains responsibility for underwriting losses. Today, most policies are issued through the Write-Your-Own program but some non federally backed coverage is available from the private market.

As with other types of insurance, rates for flood insurance are based on the degree of risk. FEMA assesses flood risk for all the participating communities, resulting in the publication of thousands of individual flood rate maps. High-risk areas are known as Special Flood Hazard Areas or SFHAs.

People tend to underestimate the risk of flooding. The highest-risk areas (Zone A) have an annual flood risk of 1 percent and a 26 percent chance of flooding over the lifetime of a 30-year mortgage, compared with a 9 percent risk of fire over the same period. In addition, people who live in areas adjacent to high-risk zones may still be exposed to floods on occasion. Ninety percent of all natural disasters in this country involve flooding, the NFIP says. Since the inception of the federal program, some 25 to 30 percent of all paid losses were for damage in areas not officially designated at the time of loss as special flood hazard areas. NFIP coverage is available outside high-risk zones at a lower premium.

Flood insurance covers direct physical losses by flood and losses resulting from flood-related erosion caused by heavy or prolonged rain, coastal storm surge, snow melt, blocked storm drainage systems, levee dam failure or other similar causes. To be considered a flood, waters must cover at least two acres or affect two properties. Homes are covered for up to $250,000 on a replacement cost basis and the contents for up to $100,000 on an actual cash value basis. Replacement cost coverage pays to rebuild the structure as it was before the damage. Actual cash value is replacement cost minus the depreciation in value that occurs over time. (Excess flood insurance is available in all risk zones from some private insurers for NFIP policyholders who want additional coverage or where the homeowners community does not participate in the NFIP.) Coverage for the contents of basements is limited. Coverage limits for commercial property are $500,000 for the structure and another $500,000 for its contents.

Mortgage Rates Remain Low!

2009-09-14T10:03:00.002-04:00

Mortgage Rates for residential loans remained low last week. But buyer beware...they will not stay low forever. The Fed is keeping it's plan going of buying mortgage backed securities and the effect of this is keeping mortgage rates low throughout the country. The plan of purchasing these securities is expected to end at the end of this year. However, it has has been rumoured to be extended and it has been rumoured to end early. I guarantee you that when the Fed stops buying rates will rise.

If you are currently in the market to buy a new home, you have picked the best time in years to do so. Not only are rates extremely low, but home prices are very attractive. Now is the time to act.

Chuck Walden
cwalden@signaturelendinggroup.net

We have moved!

2009-09-01T11:44:00.003-04:00

During the month of August, Signature Lending Group moved to a new location. Due to our expansion, we needed more offices and more conference room space. Gibraltar Executive Suites in Dacula has been a match made in heaven. The only negative thoughout this process has been the phones. We were not able to "port" our numbers to our new location so that has changed also. Please be patient as we are still working out the kinks. Our new information is as follows:

2078 Teron Trace
Suite 250
Dacula, GA 30019

Phone: 678-804-6030

Thanks for trusting us with your referrals!

Small Business Loans

2009-06-09T15:32:00.003-04:00

Needless to say, small business is under extreme financial stress. The wise business owner has trimmed expenses, yet sales and income continue to decline. Small business owners have gone to their banks for help and may have encountered a flat "no" after walking through the door. For many small businesses, a Small Business Administration (SBA) loan is the best choice to meet their needs.

SBA loans are mainly used for three purposes:

1) Consolidate business debt - if consolidation of numerous business debts will save the business money and increase cash flow, you should explore using the SBA.
2) Purchase an existing business - this can be to purchase the business or the business and the building. This program is great for owners looking to expand their market with a discounted acquisition.
3) Purchase a franchise - the SBA is very active in providing individuals or companies the funding to purchase a franchise. Also, it should be noted that these funds can be used for everything involved in opening the business.

Crown Funding Group has many SBA products available to help small businesses. Give us a call and we can help you get the funding you need.

Georgia Housing Tax Credit Bill

2009-05-14T15:11:00.002-04:00

Today, House Bill 261 was signed by Governor Sonny Perdue. This bill provides an $1800 tax credit which would be taken over three years. This bill is immediately in effect and is meant to spur the housing market. The amount of the credit will either be $1800 or 1.2 percent of the purchase price (whichever is less).

If you are a first time home buyer, this tax credit would be in addition to the $8000 federal credit. Eligible properties include single family residences including condos, previously occupied homes that were listed for sale before May 11, 2009 and are still listed, and bank owned properties. The bill did not include investment properties.

The goal of this bill is obviously to provide an incentive to move current inventory and to get would be home buyers back in the game. If you, or anyone you know, are ready to purchase a home, Signature Lending Group would love an opportunity to earn your business and to help you take advantage of the new tax savings. We are more than willing to hold your hand throughout the entire process. Call us anytime at 678-387-5580.

Earth Clean Up Day

2009-04-24T15:07:00.002-04:00

In support of Earth Clean Up Day, the Dacula Hamilton Mill Kiwanis Club will be partnering with the Dacula High School Key Club to clean two miles of road on Saturday April 25th. Don't be surprised to see a bunch of smiling faces along the side of the road!

In case you were wondering, Kiwanis is an international organization that changes communities on child at a time. The Dacula Hamilton Mill Kiwanis Club has been an active chapter for two years and is going strong. If helping children or serving the needs of others is something you are interested in, please don't hesitate to contact me anytime.

Window of Opportunity

2009-04-22T14:20:00.000-04:00

In recent months, I have been talking to you about the “window of opportunity” when it comes to mortgage lending. As I type this post, rates are within a half a point of the lowest rates in country’s history. If you have been sitting on the fence waiting for 4% interest rates, here are a few items to be mindful of:
1) I have reviewed key components of Obama’s Stimulus Package - and nothing in the plan guarantees 4% mortgage interest rates the media keeps talking about. In fact, as Fed Chairman Ben Bernacke alluded in his March 15th “60 Minutes” interview, the Fed’s long term plan is to raise rates as the economy shows signs of recovery.
2) Lenders are continuing to tighten guidelines, which means:
a) Credit scores needed to qualify have increased significantly in the last 30 days. I expect this trend to continue.
b) Many lenders are asking borrowers for larger down payments than in recent years. Fortunately, Signature Lending Group is still offering programs with as little as 3.5% down on FHA loans.

Again, my message here is that we are very likely entering the late stages of our “window of opportunity”. If you or someone you know are wondering if the time is right to purchase a new home or refinance an existing one, please call me immediately. I promise to give you the straight answers that will help you make the most of these chaotic economic times.

Chuck Walden, President
Signature Lending Group, Inc
678-387-5580

Prepare to Pounce

2008-12-11T08:48:00.000-05:00

Have you seen what mortgage rates are doing! Today, rates for a 30 year fixed rate mortgage were 5%. Honestly, I never thought I would see that rate again, but it is back. But, the question is, how long will it stay. Current data indicates that due to the recent bailouts that rates are not going to rise anytime soon. Unfortunately, in this market, you just never know. My advice to you is if you are hunting for a new home, you should stay the course. Do not wait on an announced "possible' rate reduction down to 4.5%. All indications are that this program will only be available to first time home buyers with excellent credit. All of this is assuming that the plan will be adopted. If you are looking to refinance, now is the time to pounce. Do not hesitate in this market. Rates have been changing several times per day due to volatility in the market and a lot of uncertainty. If you would like to discuss you financing options, please give me a call today. Chuck Walden 678-387-5580

Commercial Lending

2008-11-11T16:18:00.004-05:00

Exciting news! I have just opened a new company called Crown Funding Group. The scope of the business will be commercial lending and I am able to do so in all 50 states. The thought behind this decision is the banking industry really tightening down on thier own lending. I am able to do everything from stated deals to hard money deals. If you know of someone looking to purchase, refinance, or consolidate...don't hesitate to give me a call. As always, thanks to everyone for thier support and referrals!

Lending Integrity Seal Of Approval

2008-09-23T07:14:00.002-04:00

For the first time ever, home buyers have a simple, legitimate way to access a mortgage professional - a sign that they can look for before they even step foot in the door. It's called the Lending Integrity Seal Of Approval, and those that display it have been through a rigorous validation process. They've pledged to adhere to a strict code of ethics, a best business practices policy, and an ethics grievance review process. They also receive ongoing education and they've submitted to a criminal background checks.
I'm pleased to announce that after months of going through the process, I am the only loan officer in the Dacula area to receive this seal. Make sure you are working with a responsible lending professional and no matter what you are looking for in a new home, be sure to look for the Lending Integrity Seal Of Approval.

Gwinnett County Mortgage Market Update

2008-09-19T16:12:00.000-04:00

This was a historic week in financial markets. One major investment bank declared bankruptcy, another sold itself, and the world's largest insurance company needed a government bailout. Central banks around the world had to inject hundreds of billions of dollars into the banking system to calm the markets. Through all this, mortgage rates ended a volatile week little changed.

The government's primary response to the market turmoil was a broad relief program. The program includes major elements intended to stabilize credit markets and restore confidence. Directly affecting the mortgage market, a government entity will be established to acquire underperforming mortgage assets, manage the assets, and sell them in an orderly fashion. This will remove troubled assets from financial institutions and replace them with fresh capital, which will then be available for future lending opportunities. In addition, the Treasury doubled the amount of mortgage securities that it will buy in the open market for its own holdings. Fannie Mae and Freddie Mac will be allowed to increase their mortgage portfolios, as well. One result of these actions should be increased liquidity for future investment in mortgage assets.

A Fed meeting is usually the most significant event in a week, but this week it took a back seat to the other news. While many investors expected a rate cut on Tuesday to relieve credit markets, the Fed held the fed funds rate unchanged at 2.0% in a unanimous vote. According to its statement, the Fed expects inflation to moderate later this year, but they are concerned about the upside risks. The Fed also noted slower economic growth, partly due to tight credit, weakness in the housing market, and a slowdown in exports.

Let's hope for some stability in the weeks ahead.

Ordinary People Performing Extraordinary Work

2008-09-19T14:17:00.003-04:00

The Dacula - Hamilton Mill Kiwanis Club was chartered in July 2007 and is quickly making their impact felt in the community. The Club is averaging over 50 hours of community service each and every month. These hours include coaching, reading to children, road clean up, high school key clubs, and supporting the less fortunate. If you have a desire to "give back" to the children of your community, we meet the first and third Wednesday of each month at The Fieldhouse at 12:00. Please feel free to contact me directly at any time if you have any questions about how you can become involved in such a great organization.

cwalden@signaturelendinggroup.net
678-387-5580

Georgia Mortgage Rates Drop

2008-09-16T13:32:00.000-04:00

As predicted last week, Lehman Brothers filed for bankruptcy after not being able to find buyers for it’s businesses. This action has raised significant concerns in the financial sector and has many fearing that more collapses could be coming soon. The Bond Market is benefiting from this news as investors are seeking a safe haven from the volatility. Whether this spike will continue is unknown at this time, but the gloom and doom has lead to a downward trend for mortgage rates. If you have been sitting on the fence, now is the time to act.

Protect Your Credit During Divorce

2008-09-15T15:16:00.000-04:00

When a marriage ends in divorce, the lives of those involved are changed forever. During this time of upheaval, one thing that shouldn't have to change is the credit status you've worked so hard to achieve.
Unfortunately, for many, the experience is the exact opposite. Unfulfilled promises to pay bills, the maxing out of credit cards, and a total breakdown in communication frequently lead to the annihilation of at least one spouse's credit. Depending upon how finances are structured, it can sometimes have a negative impact on both parties. The good news is it doesn't have to be this way. By taking a proactive approach and creating a specific plan to maintain one's credit status, anyone can ensure that "starting over" doesn't have to mean rebuilding credit.
The first step for anyone going through a divorce is to obtain copies of your credit report from the 3 major agencies: Equifax, Experian®, and TransUnion®. It's impossible to formulate a plan without having a complete understanding of the situation. (Once a year, you may obtain a free credit report by visiting www.AnnualCreditReport.com.)
Once you've gathered the facts, you can begin to address what's most important. Create a spreadsheet, and list all of the accounts that are currently open. For each entry, fill in columns with the following information: creditor name, contact number, the account number, type of account (e.g. credit card, car loan, etc.), account status (e.g. current, past due), account balance, minimum monthly payment amount, and who is vested in the account (joint/individual/authorized signer).
Now that you have this information at your fingertips, it's time to make a plan.
There are two types of credit accounts, and each is handled differently during a divorce. The first type is a secured account, meaning it's attached to an asset. The most common secured accounts are car loans and home mortgages. The second type is an unsecured account. These accounts are typically credit cards and charge cards, and they have no assets attached.
When it comes to a secured account, your best option is to sell the asset. This way the loan is paid off and your name is no longer attached. The next best option is to refinance the loan. In other words, one spouse buys out the other. This only works, however, if the purchasing spouse can qualify for a loan by themselves and can assume payments on their own. Your last option is to keep your name on the loan. This is the most risky option because if you're not the one making the payment, your credit is truly vulnerable. If you decide to keep your name on the loan, make sure your name is also kept on the title. The worst case scenario is being stuck paying for something that you do not legally own.
In the case of a mortgage, enlisting the aid of a qualified mortgage professional is extremely important. This individual will review your existing home loan along with the equity you've built up and help you to determine the best course of action.
When it comes to unsecured accounts, you will need to act quickly. It's important to know which spouse (if not both) is vested. If you are merely a signer on the account, have your name removed immediately. If you are the vested party and your spouse is a signer, have their name removed. Any joint accounts (both parties vested) that do not carry a balance should be closed immediately.
If there are jointly vested accounts which carry a balance, your best option is to have them frozen. This will ensure that no future charges can be made to the accounts. When an account is frozen, however, it is frozen for both parties. If you do not have any credit cards in your name, it is recommended you obtain one before freezing all of your jointly vested accounts. By having a card in your own name, you now have the option of transferring any joint balances into your account, guaranteeing they'll get paid.
Ensuring payment on a debt which carries your name is paramount when it comes to preserving credit. Keep in mind that one 30-day late payment can drop your credit score as much as 75 points. It is also important to know that a divorce decree does not override any agreement you have with a creditor. So, regardless of which spouse is ordered to pay by the judge, not doing so will affect the credit score of both parties. The message here is to not only eliminate all joint accounts, but to do it quickly.
Divorce is difficult for everyone involved. By taking these steps, you can ensure that your credit remains intact.

What are We About?

2008-09-15T15:07:00.003-04:00

Click on the video below to find out more! Our desire is to earn your business not to expect it.

Gwinnett County Mortgage Market Update

2008-09-15T14:23:00.003-04:00

What a week! Last Sunday Fannie Mae and Freddie Mac were taken over by the government. What does this mean for you? The fact that the US government is backing Fannie and Freddie’s mortgage debt has had a positive effect on mortgage rates. We dropped a half of a percent on Monday but rates have since trickled upwards. However, we are still one quarter of a percent lower than we were last Friday. The government wanted to keep the mortgage markets moving and it appears to have been a success, so far. That being said, there are a couple of things that remain unclear. First, how much is this going to effect us as taxpayers. Second, starting in 2010, Freddie and Fannie are supposed to start downsizing by 10% per year. What type of mortgage market is this going to create? I guess we’ll have to take and wait and see approach. It is also being reported that Lehman Brothers and WAMU are having significant struggles. The main reason being too many risky mortgages. This shows us the the mortgage crisis is not over and if those two giants go down what ramifications will that hold for the financial world? My advice to you, if you’re in the market to purchase or refinance a home, is to have a mortgage planner on speed dial. Tell them exactly what you want. The rate and program may only be available for a short time period.

Gwinnett Football League in Full Swing

2008-09-12T14:10:00.000-04:00

Can you imagine having to schedule over 1020 football games and field 250 football and cheerleading teams? I can't! That's the task that the Gwinnett Football League (GFL) has in front of them each year. And, it's growing. The league operates out of 16 parks all over gwinnett county and continues to be extremely successful. This week is week four of the season and games start every Saturday morning at 9:00. If you find yourself needing to watch some quality football, please stop by anytime on a Saturday and cheer for your team.

The newly opened Duncan Creek Park in Dacula is a thing of beauty and has been hosting games for the last month. Our tax dollars were well spent and the park will provide a much needed "escape" for the kids in our area.