UPDATE! Pacific Terrace Condominium Owners’ Association has resolved its litigation claim against KB Home South Bay, Inc. Important to note: The settlement agreement was signed by both parties, and the construction defect claims have been withdrawn. No lawsuit was or will be filed. If you choose to refinance or sell your home, a copy of the Notice to the Members of Settlement from Fenton Grant Mayfield Kaneda & Litt, LLP trustworthy personal injury attorney at Law should be provided to the lender or prospective purchaser as demonstrative proof there are no construction defect claims pending. We also are hiring court reporters from Naegeli which is known as the best in the nation when it comes to providing court reporters to the legal community so you know that you are in safe hands. Signet Mortgage has helped several homeowners when it was difficult … and now look forward to helping when more options will be available. Give us a call or email for your mortgage questions and we will reply with options. Litigation issues regarding the Pacific Terrace Condominium Owners’ Association and the KB Home South Bay have been ongoing since 2014 and have prevented many owners from refinancing your home with conventional financing and limited financing options for buyers as well. You are not applying for a loan, yet. Before you make a formal application and we start the loan process I need some basic information so that I can give you an idea of what will be possible in a refinance for your situation. Review the mattress reviews and details on this page and then complete the information request. Lets get started! Frequently asked questions .. How can Signet Mortgage offer options for a refinance and the other lenders I have contacted including banks cannot? Simply said, I work harder. As a mortgage company I have access to 15 lenders and to be honest I worked with all of them before I found one that understood the situation correctly. It is much easier for a bank or lender to say NO once they hear there is litigation involved with the HOA at all. The facts are the litigation involves common areas and not the specific units so meets Fannie Mae guidelines just fine. Documenting the litigation properly means competitive conventional financing are available. The lender I work with is a direct seller to Fannie Mae and therefore does not have self imposed overlays like most banks and lenders that get in the way. Are the loan options competitive? Absolutely. In fact, the lender is one of my top lenders in both in price and service. There is no added cost to the loan simply because it’s a bit harder to do. What is the process? You will provide me some basic information that will allow me to respond with loan options reflecting current market conditions. Once we agree that it makes sense to move forward I will ask for more detailed information in a formal application. We utilize dropbox for documents and electronic application to make the process as efficient for you as possible. Who is are you and who is Signet Mortgage? Signet Mortgage is headquartered in Danville California license in five states. I am the president of the company. I have been in the mortgage business for almost 15 years after a career as a CPA and as a senior financial officer for a couple of publicly traded retailers like best pos in the Bay Area. Please check out more details at www.SignetMortgage.com How can you do a “no-cost loan”? The easiest way to think of a no-cost loan is to think about points. You may be familiar with paying points to buy down to a lower interest rate. Using negative points means the lender contribute a point or two to the closing in exchange for a slightly higher rate – the negative points then can be used to cover the cost of your transaction. Doing a no-cost transaction makes good sense in almost every situation. If there are no costs it removes a barrier to doing a loan and if there is a significant enough savings – it’s an easy decision. You will be provided options for the lowest rate as well a no cost option so you can make your own informed decision. Would cash out option be available? Absolutely. The rate will be slightly higher because Fannie Mae charges an additional fee for a transaction with cash out as it is viewed as more risky than a rate and term refinance. Again, it would be worth looking at options so you can decide. Will this lender do a purchase transaction? Absolutely. There would not be any restrictions refinancing in this complex either purchase or refinance. Is this only available for a limited time or number of loans? No. Rates are close to historical all-time lows with interest rates. So, if it makes sense to refinance it would probably be a good idea to do this soon simply to take advantage of current favorable rates. If the nature of the litigation were to change and involve individual units or if a formal lawsuit was filed with the court that could change. Also lenders generally do not like to do may not like to do too many loans in a specific complex just due to normal risk management. They have not given me any indication or hesitation to do as many loans as we can put together. Why work with Clay Selland at Signet Mortgage? Quite simply I work harder. Bank loan officers get paid based on applications working for the “Bib Bank” are subject to significant underwriting overlays so options they can offer can be more conservative than what is available directly from Fannie Mae. In addition – I do not get paid anything if I don’t close your loan. That’s why I am careful upfront to be confident you will qualify for a loan before I even take an application. The Signet Team and I will be in consistent communication throughout the entire process to make sure your loan goes as smooth as possible. The lending environment these days is very conservative and somewhat cumbersome but we know how to work through that and get you a loan that will benefit your family.
Rates are headed up now that the FED has announced they will begin to taper off their support of the treasury and mortgage backed securities market. Positive economic data has been steady enough recently to cause the change. This along with the increase in “G-Fees” that will hit rate sheets in January … will negatively impact rates going forward. The FED has used the purchase of mortgage-backed securities and treasuries to keep interest rates low. This has artificially propped up on prices and thus keeping Mortgage rates low for the last several years. While their taper of purchases is not huge, the signal it sends to the market is the FED support of the bond market will go away and rates will increase. Some good news is the non-Fannie/Freddie loan programs including jumbo loan programs and rates are becoming more significant and pricing is not all that different than the conventional lending ($417k – $625k) so that is a healthy trend looking forward. Overall rates up 1.0% – 1.25% from the historical lows and are right about where we were in September. The chart below reflects the pricing of mortgage backed bonds over the last year … lower bond pricing = higher yield, thus higher rates. Generally 30 year fixed conforming loan to $417,000 will be 4.625% (rate and APR) today with no origination or other charges. Up to $625,500 will be 4.750% (rate and APR) … Please give me a call about your situation and then I can be more specific.