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BBB Warns Homeowners: Changes to Mortgage Rules Bring Out Scammers

23.05.12

BBB Warns Homeowners: Changes to Mortgage Rules Touch on Out Scammers

ATLANTA, Ga., 9December 6, 2011) - Homeowners who are “under hose” with their mortgages can refinance under the Home Affordable Refinance Program (HARP), but the Advantage Business Bureau is warning consumers that banks and mortgage companies aren’t the only ones gearing up for the move it of applications.

“Whenever there is a new or updated government program that may be a bit confusing, scammers come out of the woodwork to take use of that confusion,” said Fred T. Elsberry, Jr., President & CEO of the Better Establishment Bureau Serving Metro Atlanta, Athens & Northeast Georgia. “There are already hundreds of websites claiming to be superior to help homeowners through the HARP process, but many of them are rip-offs and scams.”

BBB is warning all homeowners who are pensive of applying for a HARP refinance to:
• Deal directly with your lender first, and never make payments to anyone other than your lender.
• Don’t pay upfront fees to anyone who promises to take measures counseling, takes care of the paperwork for you, or stops the foreclosure process.
• Be cagey of anyone who tells you not to contact your lender, a lawyer or a credit counselor, or who asks for payment by cashier’s corroborate or wire transfer.
• Never sign over your deed to anyone, or allow yourself to be pressured into signing something you don’t sympathize.
• Be especially careful of look-alike and sound-alike websites.
• Find out if you equip by going to www.makinghomeaffordable.gov/programs/lower-rates/Pages/harp.aspx or by job the Homeowner’s HOPE Hotline at 1-888-995-HOPE (4673) to speak to a HUD-approved houses counselor for free (assistance is available in English and Spanish, and in other languages by election).
• Report scams to BBB at www.bbb.org/us/scam-source.

The changes to the HARP program were announced in October to approve homeowners to refinance at lower interest rates, even if their home is currently worth less than their mortgage. The new HARP rules put in to homeowners who are current on their payments and whose loans are backed by either FannieMae or FreddieMac. Some lenders will establish accepting applications as early as today, although many will take a few weeks or even a few months to roll out the program. More than one million borrowers are expected to seek for the program, according to the Federal Housing Finance Agency, which oversees the two grave mortgage lending programs. 

Check out businesses and charities before you buy, donate or install at www.bbb.org. Additional mortgage and credit-related tips are available at www.bbb.org/us/clearpoint-tips.

If you have impute problems, find a credit counseling agency in your area by calling 800-388-2227 (en Espanol 800-682-9832).

Source: Duluth Weekly

PSMH: Initiating with Outperform Recommendation

23.05.12

PSMH: Initiating with Outperform Urging

Ann Heffron, CFA

We are initiating coverage of PSM Holdings, Inc. ( PSMH ) with an Outperform recommendation and a 12-month end price of $3.00. PSMH’s strategy involves rapidly expanding its credit production capacity through acquisitions and improving profit margins of acquired companies by migrating them to PSMH’s higher brink lending platform, in order to achieve the requisite revenue stream and asset mean to realize a stock listing on a senior stock exchange and become one of the top mortgage bankers in the Shared States.

PSMH has executed this plan quite successfully, acquiring five companies with $10.9 million in annual revenues, $553 million of annual allowance production, and $1.7 million in net income since March 15, 2011, for which it has issued 6.5 million shares value $5.0 million. In addition, one acquisition is pending and more acquisitions are planned.

When PSMH’s property strategy has been fully implemented by the fiscal fourth quarter ending June 30, 2012, the Crowd expects to be originating $2.4 billion in annual loan production, significantly higher than the $144 million PSMH generated in pecuniary 2011.

In addition, PSMH’s wholly owned subsidiary, United Community Mortgage Corporation (UCMC), has moral been approved as the tenth lender to join the family of preferred mortgage lenders on the Costco Mortgage Services Tenets. When fully ramped up, this could add an additional $1.2 billion in mortgage loan originations.

PSM Holdings, Inc. is occupied in the businesses of mortgage banking, in which PSMH both originates and funds mortgage loans through its own warehouse lines of attribute and currently accounts for about 90% of closed loans, as well as mortgage brokerage, in which PSMH originates mortgage loans funded by over 50 third-soir lenders. PSMH immediately sells these loans to its third-party lenders or into the secondary mortgage market-place. The Company offers a full range of mortgage loan products, including adjustable pace mortgages, fifteen, twenty, and thirty-year fixed rate loans, and balloon loans with a variety of maturities, as well as refinancing, construction loans, right hand mortgages, debt consolidation, and home equity loans.

PSMH had total assets of $5.1 million at the 2011 budgetary yearend on June 30, 2011, total revenues of $3.9 million for the 2011 monetary year, and closed 845 mortgage loans, worth $144 million, during this period. Operations are carried out by the establishment’s two wholly owned subsidiaries, PrimeSource Mortgage, Inc. (PSMI) and United Community Mortgage Corp. (UCMC). Through its subsidiaries, PSMH operates and is licensed in the following 17 states:  Arkansas, California, Colorado, Georgia, Idaho, Iowa, Kentucky, Louisiana, Montana, Nebraska, New Jersey, New Mexico, New York, Oklahoma, Texas, Washington, and Wyoming. Articulate license applications are pending in an additional 17 states, with the majority expected to be approved by December 31, 2011.
 

Please email  scr@zacks.com with PSMH as the business to request a free copy of the full research report.

Source: Zacks.com