Wie de f.... is in beheer meneer!

Well its not often that we find the banks being funny about things but they really are and when you try get money, or change accounts or heaven forbid try get money back, or just go and deposit some cash into your account - you know you will be challenged.

Well , look at hellopeter.com and follow the bank antics and it must bring an awesome smile to your dial, because you know, that this is what has happened to you, or a friend or someone, at least once.

I certainly have some empathy for the banks because no matter what they do, no matter how many processes they put in place, somehow, it goes wrong very quickly.  Maybe because it is 25 million people to 100 branches odds that nails them, and someone is going to be mad!

Without singling out Standard bank, ABSA, FNB, Nedbank, Capitec, RMB, Investec as a culprit, these are a few snippets for this wonderful Almost Spring Friday (ASF!)

1. Self employed client, who has banked same bank for 22 years wife banked with same bank for 17 years and has business account with bank as well.  Wife started new business sponsored by Old business and backed by surety from both clients and the bank refused a 50% mortgage due to " Could not confirm relationship with the client"...eeeeeish  Client went to hellopeter.com and voila home loan granted withing 3 hours.  They had submitted their home loan through the mortgage originator on the advice of the bank - 7 times and it only took 6 and a half weeks.

2. Well not to be outdone, one of the other banks took 12 weeks and 9 submissions to get a R 100,000 home loan as a further loan because they could not prove her company she works for was a legitimate company - she works for PAM GOLDING! - must be some obscure company

3. Bank no 3 - Electronic payment done to incorrect client from one client - pure mistake (finger) problems and reported it to the bank to cancel.  Went to recipient bank explained mistake and sorted that out.  Refund happened as follows:

Sending bank refunded the money 4 Times
Receiving bank refunded the money 3 times

at R 285 - a pop this was a win, so went back explained the mistake to sort out and guess what nothing has been done except Sending bank refunded 1 more time and receiving bank refunded 1 more time

Maybe we should all work with these banks... Bless them and have a great weekend

So as they say in the country... Wie de f..... is hier in beheer meneer!

Wanna be an Originator Apply here!

As this has often been a fairly open and new industry the regulations are very much self imposed and we have had bodies such as NAMO try regulate the industry but they have not succeeded.


So as business owners we have searched for the best of breed and this is the way i see it:

1. You need to be a 100% peoples person – as people will only do business with you if they trust you and like you.  So APPLY TODAY

2. You need to be extremely confidential – and this must be legally set out and signed before your start as a consultant or originator.

3. The educational aspect most times means

     a. Financial experience – accounting, auditing
     b. Understanding income and expenditure
c. Understanding credit risk management, scoring systems, high and low risk
d. Understanding affordability for now and future as rates rise and change and impact on the client
e. Doing due diligence on a client and understanding 100% their involvement, business, employment and exposure
f. Understanding how to read:
    i. A balance sheet
     ii. Assets and liabilities
     ii. Bank statements

g. Understand how to look for fraudulent activities with employer, employee, business and banking

4. Legally a detailed employment contract together with multiple clauses covering the lenders, the originators and the clients is signed.

5. Skills looked for:

a. Banking experience

b. Any finance experience

c. Credit risk management experience

d. Property type experience

6. Lastly, the banking rules change often, so training is needed all the time and you need to be updated and accurate

One of the key things is to declare the truth to the banks as we abide by the banking code of conduct.

So

The originator warrants that this application and supporting documentation is submitted by the originator on behalf of the applicant/s with the applicant/s knowledge and consent. The originator warrants that the applicant/s have chosen the mortgage originator’s address for delivery of the quotation to the applicant/s. If signed on the applicant/s behalf, the originator warrants that is has been duly authorised by the applicant/s for this purpose. The originator further warrants, to the best of its knowledge, that the documentation / information submitted by the applicant/s in support of this application is not fraudulent, incorrect or misleading.


So this is a serious business..

PRIME + Standard Bank and FNB interest on homeloans status

So the banks have definitely changed their risk profiles and increased the premiums on rates following the article recently released by FNB.


Now we learnt through reliable sources that Standrad bank have increased their risk rating under certain circumstances.

For those applying for a home loan and are self employed expect a rate plus 0.3%.  If a small holding or plot expect anything from an extra 1.5% to 2.5% and if a Business Mortgage expect an additional 1.5% on top of the normal rate.

Defintely time to use your favourite bond originator.

we expect the other banks to follow suite shortly.


  thanks to our news feeders for the thumbs up guys.......

Who is recovering in the Worlds Housing markets?

According to data compiled by the Economist, only one national housing market has recovered to “fair value” after the real estate boom of the late nineties and early 2000's

Disregarding the housing markets in Germany and Japan, which did not witness a property boom in this period, the US is now the only global market (which the publication analyses) where prices are below the long run price to rental income ratio.

South Africa, seems to be OK, but its very up and down even though slaes seem fine in the lower brackets and banks are offering mortgages albeit tentatively.

According to data compiled using the Case Shiller national index, prices are now 11.5% below “fair value” which compares to overvaluations of 48.5% in France, 39.2% in Spain and 27.8% in the UK.

Although there is some debate over the Economists measure of “fair value” (house prices are more a function of affordability and therefore real incomes and interest rates rather than rental incomes) the conclusion is probably a sound one. The US housing market is in better position than most Western markets.

At the turn of the year, we tipped the US market as one of the best markets for investors and agents. The news since then has been far from positive with prices continuing to decline in most regions (although sales volumes have picked up in many states such as Florida)

The best property market in the world?

Well you certainly can pick up awesome deals for properties in possession and these lists are easy to come by, with 100% homeloans and cheapper trasnfer or no transfer fees.

Although the social consequences have been awful, in pure economic terms, the US property market is arguably one of the best functioning real estate markets in the world.

The US fell earlier and more rapidly than almost every other national market. A big reason for this is the US system of non-recourse loans. Home owners in negative equity can walk away from their debts and developers and lenders have no recourse to reclaim the debt. The result has been a flood of supply and sharp price corrections.

Almost every Western economy is going through a process of painful debt reduction. There are only four ways out:

Save more (austerity at both a personal and government level)

Earn more (increase real incomes and/or economic growth)

Inflation

Debt default

Through a process of mortgage debt default, the US has put itself in a strong position to recover strongly from the credit-bubble-inducued recession (although it still has severe sovereign debt issues).

As Robert Shiller points out, US house prices may decline another 10-25% so the crisis is not over but its long term position is much healthier than most European markets.

The UK and Spain for example face a long period of “deleveraging” which means either high inflation, austerity or a sharp rise in repossessions. Without a mix of all three for a sustained time period, there can be no return to a “normal” market and that means no short-term bounce back in the lifestyle market of overseas property.

Buying a place in the bush - the finer details!

Hi Geoff,


The bush sells itself, but is nice to know I may have influence.

So, How much do you need to raise? For properties zoned as Agricultural farms (like this one) and over 25ha it becomes quite difficult to raise cash and unfortunately takes longer than a normal home loan.

So yes 90 days may be needed. But to be fair houses and stands can take that long at times as well. It all depends on how quickly we can information to the bank regarding your financials, tax, banks account statements etc.

I utilise the services of Global Fundi for financing advise and while they do not raise finance for larger farms can offer excellent advise and recommendations. They can also assist to bring finance into the country at very favourable rates. I will ask Chris to contact you, as he can explain the best options for doing so.

Kevin the seller was thrown a curve ball this morning!

He has been on a waiting list for buffalo calves because he would like them to get stuck into the long grass to reduce fire hazard. 6 became available and will cost him R16,000 each totalling R96,000. Obviously if he sells the farm he does not want to add more game to the offering and the value of this game cannot be included in the asking price. He wants to know if this will be a deal breaker. I would be a pity for him to loose such an opportunity stock is not easily available. The average auction price in 2010 for 56 auctions was R35,000 for a fully grown buffalo. They want to BOMA them on Friday and have Vets and staff lined up to do so. Let me know your thoughts?

Wish all deals were this cool!!