Nehemiah WINS Lawsuit against HUD!

APRIL 2008

Judge Lawrence K. Karlton of the United States District Court for the Eastern District of California upheld Nehemiah’s motion for summary judgment and invalidated the U.S. Department of Housing and Urban Development (HUD) rule to ban private downpayment assistance as proposed in the “Standards for Mortgagor’s Investment in Mortgaged Property” regulation published October 1, 2007. To be clear, this rule cannot be enforced by HUD and is no longer a threat to private downpayment assistance programs. We are thrilled with the Court’s decision to support low-to-moderate income families across the country by ruling against HUD’s attempt to ban private downpayment assistance,” said Scott Syphax, President and CEO of Nehemiah Corporation of America. This is a major and conclusive judgment, leaving no uncertainty that downpayment assistance is a life line to the families that Nehemiah serves. It is heartening to see that the Court’s arguments echo our sentiments and concerns. This decision preserves access and supports the use of sensible and reasonable approaches to homeownership for millions of working class families. It is a privilege to continue providing a helping hand to America’s underserved families by building both safer communities and financial strength through homeownership. As we have said before, we look forward to working with HUD to support deserving families across the country.” To read more about Nehemiah's court victory, visit: http://www.getdownpayment.com/updates/insidetrack.asp The Regulatory Updates section of our website details significant issues relating to DPA regulatory and legislative events. Check back for new postings or sign-up to have accurate and timely information delivered to you.
Get Certified as a Designated Nehemiah Specialist:
Receive $100 Off Coupon!
The busy home buying season is here! Nehemiah offers many unique value-added services and resources that can assist you in procuring buyers. At Nehemiah we are dedicated to training mortgage and real estate professionals on The Nehemiah Program® and downpayment assistance which will enable you to assist more buyers in their quest for homeownership. Contact me today to schedule a training session for your group or office on The Nehemiah Program. All attendees will earn a Designated Nehemiah Specialist Certificate and a $100 off coupon on their first Nehemiah transaction.

Using The Nehemiah Program is Simple!
The Nehemiah Program® is committed to providing the easiest and best service possible. Did you know that your homebuyers only have to sign a one-page gift letter? Did you know that the seller only signs a one-page Participating Home Agreement?
Mortgage Lenders:
Register to use Nehemiah’s Online Processing System
Nehemiah gift funds can be requested using the Nehemiah Online Processing System (OPS®) or with a standard paper form. Online gift funds requests are processed same day. If you’re new to Nehemiah, there is a simple one-time registration process to begin using our online system. To register for OPS, go to:
https://www.getdownpayment.com/ops/lendertype.asp and follow the screen prompts to complete your registration. Should you have any questions or concerns while you are completing your registration, please call Customer Service at (877) 634-3642. Customer Service Specialists are available Monday through Friday from 9:00am to 8:00pm EST. Since 1997, The Nehemiah Program® has provided over $1 billion in downpayment assistance gifts, resulting in $32 billion in real estate transactions and has helped over 250,000 families and individuals achieve their dream of homeownership.

If you do not wish to receive this email in the future please reply and type the word REMOVE in the subject line. The Nehemiah Program®
424 North 7th Street, Suite 250
Sacramento, CA 95811
(877) 634-3642
© 2008

Old British Word Fun: What is a Mortgage?

WORD HISTORY: The great jurist Sir Edward Coke, who lived from 1552 to 1634, has explained why the term mortgage comes from the Old French words mort, “dead,” and gage, “pledge.” It seemed to him that it had to do with the doubtfulness of whether or not the mortgagor will pay the debt. If the mortgagor does not, then the land pledged to the mortgagee as security for the debt “is taken from him for ever, and so dead to him upon condition, &c. And if he doth pay the money, then the pledge is dead as to the [mortgagee].” This etymology, as understood by 17th-century attorneys, of the Old French term morgage, which we adopted, may well be correct. The term has been in English much longer than the 17th century, being first recorded in Middle English with the form mortgage and the figurative sense “pledge” in a work written before 1393.
Well, now you know...
Have a great weekend and please don't forget to vist Darryl Baskin's website at darrylbaskin.com to learn about the CASA Homes Tour this weekend!
If you have questions about mortgages, please do not hesitate to call us any time at 918.481.6833.

Sincerely,

Jeff Sargent
President
ONB Bank & Trust Residential Mortgage Division
8908 S Yale Ave, Suite 250
Tulsa, OK 74137
Office: 918.481.6833
jeff_sargent@onbbank.com
member FDIC

Mortgage Questions & Sensible Answers

Great questions - here are some answers.
Buying a home or refinancing is one of the largest financial decisions you will make in your life - and unfortunately, this means you may experience some stress as you approach these decisions. As in many other industries, the mortgage industry has more than its share of unethical individuals that are out to make a buck, but do not have your best interest at heart, and may try to take advantage of your stress at this point in your life. For example, I have heard numerous stories about people being called and told that they need to "quickly come into the office and get all the paperwork signed, rates are changing". It is not true; you should never be made to feel panicked or pressured about making this size of a financial decision. If you are definitely ready a rate can be locked right over the phone.
Advertisements in the newspaper or online are also rampant with misinformation, designed only to get phones ringing. Rates change daily, sometimes hourly, so just by virtue of being in print somewhere, they are almost sure to be outdated. The trick is, lenders can put anything out there, and if it gets the phone to ring, that is all they need. The following conversation ensues….."Hello, I'm calling about the 5.5% rate I saw that you advertised in Sunday's newspaper?" "Well, it's wonderful that you called! Rates did change a bit this morning, and are now at 6.875%, but let's talk a little more about you……"
Lenders will also frequently promote "free appraisals" or "discounted origination fees". This is great, but BE AWARE that if you are not paying for it one place, you are paying for it somewhere else. Interest rates and closing costs go hand in hand, so it is important to look at the overall loan package, not just one individual item that seems discounted. We all work off the same financial markets with essentially the same profit margins. Do we make money when we do your loan? Certainly, just like you get paid for working at your job. What we seek for you is the best balance between a great interest rate and reasonable closing costs.
Online lending is also particularly scary - anybody can throw together a mortgage website, and be aware that the person behind that great rate you are seeing online might be some guy working out of his basement in Kentycky who has been in the business for 4 months. Did you know that closing costs vary significantly state to state? Each state does indeed have different laws and different costs. Oklahoma is the only state in the U.S. that still has abstracting; Iowa voted out the concept several years ago and their costs decreased dramatically. Out of state lenders frequently misquote fees, as they are not aware of local and state requirements. So often people think they are getting a better deal when getting information from the internet lenders and often call us after they were lured in by an offer that seemed too good to be true, but then the lender could not deliver what they promised in the beginning at the closing. I have been in mortgage banking for over 24 years and would not trust my own loan to any online, unknown lender. How do you know if you are dealing with an online predator? Are you really willing to take this risk? Please call us for advice and we will be happy to answer any questions you may have regarding financing a home.

Thank you,

Jeff Sargent
President
ONB Bank & Trust Co/Residential Mortgage Division
8908 S Yale Ave, Suite 250
Tulsa,OK 74137
918.481.6833
jeff_sargent@onbbank.com