Connecticut Mortgages – CT Contra http://ctcontra.com/ Fri, 11 Jun 2021 19:29:13 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.2 https://ctcontra.com/wp-content/uploads/2021/05/default-141x136.png Connecticut Mortgages – CT Contra http://ctcontra.com/ 32 32 Plaza Home Mortgage amends reverse jumbo programs https://ctcontra.com/plaza-home-mortgage-amends-reverse-jumbo-programs/ https://ctcontra.com/plaza-home-mortgage-amends-reverse-jumbo-programs/#respond Fri, 11 Jun 2021 11:20:58 +0000 https://ctcontra.com/plaza-home-mortgage-amends-reverse-jumbo-programs/ Plaza Home Mortgage, a wholesale and correspondent mortgage lender, has announced some changes to its reverse jumbo program. The San Diego-based mortgage company said Thursday it had improved interest rates and capital limit factors (PL) (LTVs) in its program, which now offers private reverse mortgages up to $ 4 million with no FHA mortgage requirement, […]]]>


Plaza Home Mortgage, a wholesale and correspondent mortgage lender, has announced some changes to its reverse jumbo program.

The San Diego-based mortgage company said Thursday it had improved interest rates and capital limit factors (PL) (LTVs) in its program, which now offers private reverse mortgages up to $ 4 million with no FHA mortgage requirement, fixed rate as low as 5.50% and accepts FICOs as low as 640.

Read more: Jumbo loans continue to grow in the first quarter

“We are enhancing our reverse jumbo offering in direct response to mortgage brokers seeking flexible financing and income solutions for senior homeowners,” said Mark Reeve, Vice President of the Reverse Mortgage Division at Plaza Home Mortgage . “Our program reduces the cost of jumbo reverse financing and is an ideal product for housing-rich seniors at a time when housing appreciation is at or near its highest level.”

Plus, there are no lender fees, and the program has no limits on minimum or maximum lump sum payment requirements at closing.

The program is available through Plaza’s wholesale channel and covers a wide range of property types (single family, 2-4 unit, townhouse, and condominium). The program will be offered in 18 states including Arizona, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Maryland, Nevada, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Texas, Utah and Washington.



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The day – Consider a repairer https://ctcontra.com/the-day-consider-a-repairer/ https://ctcontra.com/the-day-consider-a-repairer/#respond Fri, 11 Jun 2021 04:19:20 +0000 https://ctcontra.com/the-day-consider-a-repairer/ When shopping for a home, most people dream of finding a new, affordable, well-located home for their needs. However, when a buyer’s idea of ​​a perfect home cannot be found in the market or is not affordable, other options should be considered. One option is to find a home that is in a desirable location […]]]>


When shopping for a home, most people dream of finding a new, affordable, well-located home for their needs. However, when a buyer’s idea of ​​a perfect home cannot be found in the market or is not affordable, other options should be considered. One option is to find a home that is in a desirable location but is in need of repair. Buying a renovator can be a way for home buyers in a particular neighborhood that they might not otherwise be able to afford. Because a renovator is not ready to move in, the purchase price will be significantly lower than updated homes for sale in the same area. Buying a renovator is also a way for first-time home buyers to get their first home sooner rather than waiting to save the larger down payment on a new or recently updated home.

The repairs or renovations required may vary within the fixer-upper category. For example, one potential buyer may be comfortable buying a home that only needs a few minor cosmetic renovations like new paint and new carpet while another buyer is willing to take responsibility for the work. more important ones like replacing old plumbing and windows. Regardless of the condition of the home, before you commit to buying a home that needs renovations, make sure that the renovations completed will bring the home back to market value so that the sale of the home will pay off some of the cost. money spent on renovations later. Elizabeth Weintraub, writing for thespruce.com, said: “The perfect renovator is the home everyone will want in the future, but no one wants it right now.”

Before making an offer on a renovation, the buyer should have the home inspected by a licensed home inspector. As you walk through a house, some needed repairs can be obvious to most people, such as water stains on ceilings, falling plaster, or loose porch railings. However, a professional home inspector can spot less obvious structural issues that can dramatically increase repair costs far beyond what the seller may be aware of. According to Connecticut law, sellers must submit a buyer disclosure statement that gives specific information about certain structural features, including the roof and foundation, as well as system specifics like septic tanks, plumbing and electricity. Glenda Taylor writing for bobvila.com advises: “Before you bid, have the house thoroughly inspected and gather repair estimates.” This will give the buyer the most informed estimate of the cost of upgrading the property as well as the extent of the work required and help them decide whether to bid or sell it.

Another thing to consider when buying a renovator is getting a mortgage. If the buyer plans to borrow the funds to purchase the home, a mortgage will need to be secured. Before a mortgage is approved, the lending institution will send an appraiser to inspect the property to ensure that the price does not exceed the value of the property. This protects both the lender’s and the buyer’s investments. Additionally, if the lender finds that the home needs too many repairs or major upgrades, they may disqualify the property for a traditional loan.

If the lender disqualifies the property for a traditional loan, the buyer can apply for a home improvement mortgage. Beth Buczynski and Kate Wood writing for nerdwallet.com explain, “Home improvement loans are mortgages that allow you to finance a home and improvements at the same time. With a home improvement loan, you can pay off improvements over a longer period of time and at a lower price. interest rate than other types of financing. There are different types of home improvement loans offered by different lenders. Home improvement loan lenders may require estimates from licensed contractors, copies of permits, and their own inspections before approving and releasing funds.

Finding a renovator in a great neighborhood can be a dream come true for homebuyers who otherwise couldn’t afford a home in that location. Learning exactly how much work is required, the estimated cost of the labor, and how to acquire a mortgage are a few things that should be determined before you buy.



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Liberty Bank closes Essex branch https://ctcontra.com/liberty-bank-closes-essex-branch/ https://ctcontra.com/liberty-bank-closes-essex-branch/#respond Tue, 08 Jun 2021 19:06:03 +0000 https://ctcontra.com/liberty-bank-closes-essex-branch/ ESSEX, CT – Middletown-based Liberty Bank has told regulators that a half-dozen of its Connecticut branches will close by the fall, including the one at 7 Main Street in Essex. According to an article written by Patch Staff reporter Chris Dehnel, bank officials filed the plans with the Connecticut Banking Department last week and subsequent […]]]>


ESSEX, CT – Middletown-based Liberty Bank has told regulators that a half-dozen of its Connecticut branches will close by the fall, including the one at 7 Main Street in Essex.

According to an article written by Patch Staff reporter Chris Dehnel, bank officials filed the plans with the Connecticut Banking Department last week and subsequent branches will close by October 1.

  • 127 S. Main St., Beacon Falls
  • 774 Farmington avenue, Bristol
  • 7 Main Street, Essex
  • 61 Bank Street, New London
  • 1570 Southford Road, Southbury
  • 1232 Farmington Ave., West Hartford

Liberty Bank located in Deep River is expected to remain open for the time being.

The six branches make up about 10 percent of Liberty Bank’s list in Connecticut.

Dehnel explained in his article that Liberty Bank’s roots go back to 1825 and that it is one of the oldest and largest mutual banks in the country. The institution has more than $ 7 billion in assets and provides personal and business banking, cash management, mortgages, business loans, insurance and investment services.

The bank issued the following statement on Thursday afternoon:
“We are continually evaluating all aspects of our business, including our branch network and ways to reinvest in the Bank. As part of our assessment, we take into account a number of factors including branch profitability, household and deposit growth, deposit mix, transaction volume In addition, we always monitor and respond to habits changing banking patterns of our customers, technological advances and the presence of competing banks in our markets.
“As a result of our extensive research and extensive discussion, we submitted requests to close these six branches. However, customers who do business with us at one of these branches will continue to have a first-class banking experience at another Liberty Bank nearby. branches. “



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Liberty Bank partners with Payrailz for a smart payment experience https://ctcontra.com/liberty-bank-partners-with-payrailz-for-a-smart-payment-experience/ https://ctcontra.com/liberty-bank-partners-with-payrailz-for-a-smart-payment-experience/#respond Tue, 08 Jun 2021 12:00:00 +0000 https://ctcontra.com/liberty-bank-partners-with-payrailz-for-a-smart-payment-experience/ GLASTONBURY, Ct .– (COMMERCIAL THREAD) – Payrailz®, a digital payments company delivering smarter, more engaging payment experiences to banks and credit unions across the United States, announced that Liberty Bank of Middletown, CT, one of the world’s largest major mutual banks in the country, has selected Payrailz ‘comprehensive platform to fuel its vision of digital […]]]>


GLASTONBURY, Ct .– (COMMERCIAL THREAD) – Payrailz®, a digital payments company delivering smarter, more engaging payment experiences to banks and credit unions across the United States, announced that Liberty Bank of Middletown, CT, one of the world’s largest major mutual banks in the country, has selected Payrailz ‘comprehensive platform to fuel its vision of digital payments.

Liberty Bank, in its efforts to continually raise the bar when it comes to delivering extraordinary customer experiences, has recognized that its customers want a more personalized, proactive and engaging payment experience. They will deploy Payrailz’s full platform of smart and sophisticated payment technology, including consumer and business bill payment, bill negotiation services, P2P and A2A money transfer services.

According to BCG’s 2020 Retail Banking Advisory Survey, 37% of respondents want their bank to be more like Amazon, followed by an additional 29% of respondents who want their bank to be more like a personal buyer. To achieve a higher level of personalization that meets these expectations, Liberty Bank conducted a nationwide assessment and chose to work with Payrailz.

Bank executives cited Payrailz’s innovative payment platform that harnesses modern artificial intelligence and machine learning technologies as keys to being able to deliver personalized experiences to their customers. The bank also plans to be able to deploy proactive and actionable recommendations to clients to help them better manage their finances with a focus on financial well-being.

“At Liberty Bank, we pride ourselves on our ability to drive continuous innovation in our digital engagement. Our goal is not only to keep pace with current trends; our goal is to deliver a money-moving experience that sets us apart from the abundance of competition, from big central banks to new fintech players. Payrailz’s revolutionary payments platform will be Liberty’s foundation for delivering our vision for payments today and into the future, ”said David Mitchell, Executive Vice President, General Manager and Chief Digital Officer of Liberty Bank .

“Liberty Bank is a recognized industry leader who consistently makes incredible strides towards innovation. We love working with banks like Liberty who share our vision to move forward and not become complacent with their payment solutions, ”said Fran Duggan, CEO of Payrailz. “Liberty embraces technology to provide exceptional service to its customers, especially in today’s culture of ‘Do It for Me’. We are proud that they have chosen Payrailz and our unique platform to deliver a payment experience that emphasizes ease of use, personalization, actionable insights and helps their customers better manage their financial health.

About Liberty Bank

Founded in 1825, Liberty Bank is Connecticut’s largest mutual bank with more than $ 7 billion in assets and 62 bank offices across Connecticut. As a full-service financial institution, Liberty provides personal and business banking, cash management, mortgages, business loans, insurance and investment services. Named “Best Place to Work” for nine consecutive years, Liberty maintains a long-standing commitment to superior personal service and unparalleled community involvement. For more information on Liberty Bank, visit www.liberty-bank.com.

About Payrailz®

Payrailz is a digital payment company offering advanced payment capabilities and experiences, including payment of consumer and business bills, external and internal transfers, financing of new accounts, P2P, B2B, B2C and other related solutions to banks and credit unions. In a society that increasingly focuses on a ‘do it for me’ culture, smart technology from Payrailz is making a difference. Payrailz creates smarter payment experiences for the financial services industry that are predictive and more engaging than currently available alternatives. Financial institutions can confidently embrace Payrailz’s native API and cloud technology engine, to deliver unique payment solutions to their consumers and businesses. Payrailz helps financial institutions meet today’s payment expectations and tomorrow’s payment innovation needs. For more information visit payrailz.com, follow them on Twitter @Payrailz, Facebook or LinkedIn, or contact Mickey Goldwasser at 860.430.9245.





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Most Risky Housing Markets – 24/7 Wall St. https://ctcontra.com/most-risky-housing-markets-24-7-wall-st/ https://ctcontra.com/most-risky-housing-markets-24-7-wall-st/#respond Mon, 07 Jun 2021 17:00:45 +0000 https://ctcontra.com/most-risky-housing-markets-24-7-wall-st/ Real estate is one of the few sectors to have thrived during the COVID-19 pandemic. Sales of existing homes in 2020 hit their highest levell in almost a a decade and a half – and increased demand has driven up house prices. Median home sales hit a decades-long high of $ 278,000 in the first […]]]>


Real estate is one of the few sectors to have thrived during the COVID-19 pandemic. Sales of existing homes in 2020 hit their highest levell in almost a a decade and a half – and increased demand has driven up house prices. Median home sales hit a decades-long high of $ 278,000 in the first quarter of 2021, up 17.7% from the previous year, according to ATTOM Data Solutions.

Despite a strong housing market, there are still many counties where the housing market is at increased risk from the impact of the pandemic, either directly or indirectly.

These areas have above-average foreclosure rates and shares of homes with above-average underwater mortgages, meaning that the value of outstanding loans exceeds the total value of the property. Some of these markets are also much less affordable than average with high home ownership costs relative to local incomes.

Based on an index of these three metrics – foreclosure rate, share of underwater mortgages, and affordability – at the county level, 24/7 Wall St. identified the most risky housing markets. All data in this story was compiled in the first quarter 2021 Coronavirus Special Report ATTOM Data Solutions, a real estate and real estate data company.

Many of the counties on this list are located in the eastern United States, stretching from Florida through the mid-Atlantic to New England. The pandemic has wreaked above-average economic and public health devastation in some of these counties. County in every state with the most COVID-19 deaths.

“The pandemic is still significant and may pose a threat to the progress made so far and, by extension, could affect sales of homes andd price, ”said Todd Teta, product manager at ATTOM in a press release. Indeed, the housing market is booming, but many American homeowners remain vulnerable.

Click here to see the most risky housing markets.

To determine the most sensitive housing markets, 24/7 Wall St. examined data from ATOM Data Solutions First Quarter 2021 Coronavirus Special Report on the susceptibility of county-level housing markets to risks associated with the coronavirus pandemic. The counties were ranked based on a composite index of the percentage of residential properties foreclosed in the first quarter of 2021, the percentage of average local wages needed to cover major expenses related to owning of a median-priced home in the first quarter of 2021, and the percentage of properties with outstanding mortgage balances above their estimated market value in the fourth quarter of 2020, that is, underwater mortgages. All components of the index come from ATTOM data solutions and were weighted equally. Supplementary data on unemployment and the labor force are from the Bureau of Labor Statistics and are not seasonally adjusted.



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When it comes to real estate, are we in a bubble or a new market? https://ctcontra.com/when-it-comes-to-real-estate-are-we-in-a-bubble-or-a-new-market/ https://ctcontra.com/when-it-comes-to-real-estate-are-we-in-a-bubble-or-a-new-market/#respond Sat, 05 Jun 2021 11:13:22 +0000 https://ctcontra.com/when-it-comes-to-real-estate-are-we-in-a-bubble-or-a-new-market/ If you are over 40, you remember the first seven years of the 21st century. These were the peak buying years of the baby boom generation – who perverted homeownership into a feverish real estate boom – which then became the global economic crash of 2008. In the 30 years that have Prior to this […]]]>


If you are over 40, you remember the first seven years of the 21st century. These were the peak buying years of the baby boom generation – who perverted homeownership into a feverish real estate boom – which then became the global economic crash of 2008. In the 30 years that have Prior to this collapse, there had been about three other real estate bubbles, followed by their inevitable bursting into real estate bankruptcies.

The 2008 real estate crisis lasted for a decade in Connecticut. There was little or no price growth, slow construction activity, and a depressed feeling that the extreme cost of Connecticut homes had peaked. Then the sequestration of the Covid-19 pandemic stopped many things people do every day, including thinking about our homes – new or renovated.

But a funny thing happened last summer, after we were all force-fed into our homes that had become our only place to work, learn, eat, exercise, and even connect (via our computers). Collectively, many of us have found that we love our homes, but they can be improved upon. So as soon as the ties of containment loosened, a rush to overhaul our place of life began.

Mortgage rates are still low, the number of homes for sale (also known as “inventory”) is the lowest since 1963 according to Forbes, while personal savings are on the rise after a year without having any income , and “Voila!” the next real estate bubble has occurred. That means the prices of everything to do with houses – construction, prices, fixtures – are exploding and are often unobtainable right now.

Coldwell Banker CEO Robert Gorman says 40 percent of this new market is growing, 30 percent of homeowners see an increase in the value of their home, and 30 percent see the home office boom caused by foreclosure. Covid-19 as having caused a unique confluence of needs and opportunity.



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Could reopening cities hurt suburban housing markets? https://ctcontra.com/could-reopening-cities-hurt-suburban-housing-markets/ https://ctcontra.com/could-reopening-cities-hurt-suburban-housing-markets/#respond Fri, 04 Jun 2021 06:43:11 +0000 https://ctcontra.com/could-reopening-cities-hurt-suburban-housing-markets/ Jarret Coleman (pictured) saw his Greenwich, Connecticut-based mortgage practice take off last year. The flight from New York and the continued strength of suburban housing generated huge volume for the US Bank loan officer. Now, however, New York City is reopening with most of the major US subways. For Coleman, a mortgage professional whose performance […]]]>


Jarret Coleman (pictured) saw his Greenwich, Connecticut-based mortgage practice take off last year. The flight from New York and the continued strength of suburban housing generated huge volume for the US Bank loan officer. Now, however, New York City is reopening with most of the major US subways. For Coleman, a mortgage professional whose performance has improved due to city closures, reopening a city doesn’t mean his job is back to normal. Instead, he just sees a new opportunity.

Coleman explained that he is already working on a few new offerings in the city as customers and referral partners seek access to the New York market. At the same time, it is striving to conquer a booming suburban market that hasn’t slowed down in any measurable way. Inventories are still incredibly low and demand is very high for single family homes. Right now, Coleman is trying to capture as much as he can.

“You have auction wars on just about every property, I’ve never seen anything like it,” Coleman said. “We have seen the overall loan volume slow down, as re-entries have declined over the past few months. We have seen the volume return to a more sustainable pace, but from an appreciation standpoint, I don’t see how this continues. ”

The return of urban markets that hold inventory could help relieve pressure on suburban markets, but Coleman believes the realignment will take time to take hold. Coleman has yet to see customers change their minds about suburban life because De Blasio announced that NYC is open. In the meantime, Coleman is working in the market as it is and preparing for intense competition and significant time demands. He and his team pride themselves on being available after hours for calls and consultations to assist clients at all times in the mortgage process. In this market, appraisals and funding need to come quickly, and Coleman’s strategy is to work diligently for as many hours as possible.

As new offerings arrive from town and the suburban markets continue at a breakneck pace, Coleman tries to have his cake and eat it too. He takes business from all places and works with everyone from first-time buyers to investors. While his back market in Fairfield County is a big part of his business, Coleman is working across the country to capture as much volume as possible.

Read more: 4 Ways To Manage Your Mortgage After Divorce

Playing that generalist role and trying to grab as much volume as possible means, almost inevitably, that Coleman’s personal time is stretched by the demands of the job. He closed $ 400 million in 2020 by being available evenings and weekends, but rather than resting on his laurels, he sees other loan officers who have closed more than $ 1 billion over the course. from the same period. His goal is to reach that level and he tries to get there in the best possible way: by being available all the time and accepting whatever he can, whether it’s in downtown Manhattan or the suburbs. of Connecticut. As other mortgage professionals look to seize new opportunities in cities or improve their volume in suburbs and ex-urbanites, Coleman believes there is no substitute for hard work.

“There is always a tradeoff when growing your business,” Coleman said. “I think that’s true in any industry, but even more so in mortgages, because part of the trade-off between responsiveness and availability is that you’re always available. It is a disturbing experience when you face this year after year because you never really feel like you are dying. At the same time, being able to shut down is so important to everyone’s sanity.

“When I figure out how to do it, I’ll let you know.” “



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Before he died, Bernie Madoff unveiled the biggest Ponzi scheme in history https://ctcontra.com/before-he-died-bernie-madoff-unveiled-the-biggest-ponzi-scheme-in-history/ https://ctcontra.com/before-he-died-bernie-madoff-unveiled-the-biggest-ponzi-scheme-in-history/#respond Fri, 04 Jun 2021 00:30:32 +0000 https://ctcontra.com/before-he-died-bernie-madoff-unveiled-the-biggest-ponzi-scheme-in-history/ While Bernie Madoff gained a reputation as a Wall Street scholar, he also acquired an unusual nickname: “The Jewish T-Bill”. The moniker referred not only to the US Treasury Bill – widely regarded as a must-see investment – but also Madoff’s legacy. At one point, around 85% of its investors were also Jews, aka tribesmen, […]]]>


While Bernie Madoff gained a reputation as a Wall Street scholar, he also acquired an unusual nickname: “The Jewish T-Bill”. The moniker referred not only to the US Treasury Bill – widely regarded as a must-see investment – but also Madoff’s legacy. At one point, around 85% of its investors were also Jews, aka tribesmen, and included well-known people, charities, and institutions – from Nobel Prize winner Elie Wiesel to the Hadassah women’s organization.

As it turned out, Madoff was actually running the biggest Ponzi scheme in history. On December 11, 2008, he was arrested by the FBI, his investors collectively losing nearly $ 65 billion – the biggest scandal on Wall Street ever.

This scandal is the subject of a new book, “Madoff Talks: Untold Story Behind the Most Notorious Ponzi Scheme in History,” by American business radio host Jim Campbell, who has had rare access to Madoff and his family. Interest increased when Madoff passed away in April, with the book being published several weeks later.

In a telephone interview with The Times of Israel, Campbell called Madoff a “serial financial killer” who “wiped out a lot of people – a lot of Jewish charities, in particular.”

Yet he said, “When I do interviews, I get asked how the world should see Bernie. The key to take away from the book is that the system has failed. This allowed him to continue. To the extent that we say, “This guy did this bad Ponzi scheme for a long time that destroyed the lives of 16,000 American citizens, 720,000 around the world”… that’s not really the right way to see it. He was not a guy who acted alone.

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The author seeks to present a balanced portrait of Madoff, with whom he corresponded for more than eight years while the latter served a 150-year prison sentence in North Carolina. It reflects Campbell’s mid-range and deep approach as a radio host.

Over the years, Campbell has helped listeners understand complex issues such as the 2008 global financial crisis, which initially sparked his interest in a business-focused talk show. Still, it was a whole different thing to write a book about Madoff once McGraw-Hill accepted him on the idea.

Jim Campbell, radio host and author of “Madoff Talks”. (Courtesy)

In the end, he said, it was “like radio – write the facts”.

The book incorporates Campbell’s access to three members of the Madoff family – Madoff himself, his wife Ruth Madoff, and their late son Andrew Madoff, who died of cancer in 2014. The couple’s other son, Mark Madoff, committed suicide in 2010.

The hard-to-get interviews that resulted in the book were “a series of really fortuitous coincidences,” Campbell said.

It started in October 2011, when author Laurie Sandell unexpectedly connected Campbell with Andrew Madoff, who was cooperating with her on a book. The second happy coincidence happened in December. Campbell learned that Ruth Madoff was moving from Florida to her hometown of Old Greenwich, Connecticut. They met for lunch. As Campbell recalled, she came in with a coat and sunglasses, ordered a shellfish salad, asked if he was plugged in, and ended up introducing him to her incarcerated husband.

“Bernie said, ‘My wife and my son said you were a sincere person; I am happy to speak to dispel misconceptions about [me], ‘”Campbell said, noting that Andrew had not actually said“ a word ”to his father since the day before the elder Madoff was arrested.

In this April 6, 2009 file photo, Ruth Madoff is escorted by private security guards as she leaves the Metropolitan Correctional Center after visiting her husband, disgraced financier Bernard Madoff in New York City. (AP Photo / Mary Altaffer)

“If Bernie reported Andrew said I was a good guy, it must have come from Ruth,” Campbell said.

From 2011 to 2019, Campbell corresponded with Madoff, including through the Bureau of Prisons messaging system. Madoff showed off what Campbell described as a lack of soul-searching and spoke about himself in the third person, including the memorable line, “No one knows why Bernie Madoff did this.” Campbell was never able to meet his correspondent in person and was denied a visit to prison on three occasions.

Nonetheless, Campbell accumulated 400 pages of correspondence and developed an ambitious idea.

“I wanted to do the first book on the overall architecture of the case,” he said, calling it “some sort of detective story.” Campbell imagined the first part describing – in reverse chronological order – the day Madoff was arrested, his final months on the job, and his last year on the job.

From temple to temptation

Throughout the book, Campbell explores the Jewish thread that runs through history.

Madoff was the son of a temple president in Far Rockaway, Queens, who got his start as an investor by convincing his in-laws, the Alperns, to deposit their money with him. When he lost their investments, he borrowed money and paid them back – a precedent he would never repeat.

Over time, Madoff gained a reputation for making money rather than losing it, including among members of the Palm Beach Country Club after acquiring a home in the city of South Florida.

“It was all about affinity,” Campbell said. “[The club had a] predominantly Jewish membership. Finally, all these members said: “Give your money to Bernie, he is safe, you will earn 11% [returns] every year it’s big, big, big. Some said they didn’t know how Bernie did it, it probably wasn’t legal or honest, but he’s our guy, let him be.

“The trust has to be there,” said Campbell, who is not Jewish. “The Jews have been expelled from every country in the world for 1,000 years. In the Jewish community, you are not defrauding someone financially. It was devastating… It was a crime of Jewish affinity.

Illustration: Bernard Madoff arrives at Manhattan Federal Court in New York on March 12, 2009. (AP Photo / Louis Lanzano, File)

Meanwhile, Madoff escaped five investigations by the Securities and Exchange Commission. While running his Ponzi scheme, he ran a separate, impeccably clean business in the same Manhattan office building.

“I found out that he ran the two companies side by side,” Campbell marvels. “One of the most ethical and one of the most corrupt on Wall Street, all in one place.”

As Campbell explains, “The fully legitimate business on the 19th floor was essentially hiding the criminal enterprise, which was locked up on the 17th floor. Even his sons did not have access.

Decline and fall

Ultimately, Campbell writes, it was the financial collapse of 2008 that brought Madoff down. It was left to the government-appointed bankruptcy trustee, Irving Picard, to attempt to recover the stolen money for the victims. Ironically, Campbell notes, if regulators had asked the right questions, they could have discovered Madoff’s chicane in five minutes.

As for Madoff’s family, “I don’t think they were complicit in knowledge of the Ponzi scheme,” Campbell said. “They didn’t realize he stole money from customers.”

Andrew Madoff in an October 2011 interview with Morley Safer. (Youtube)

While not aware of the Ponzi scheme, Campbell said, Madoff’s family were complicit in his lies – namely Madoff’s false statement about investments, which Campbell called illegitimate and contrary to protocol. .

Campbell said he understood why Madoff was sentenced to 150 years in prison – “he’s died without telling the whole truth yet.”

Although he described Madoff as a financial serial killer, Campbell noted that an actual sociopath would not have used legitimate business funds to pay for family medical needs and mortgages, as Madoff did. . He also points out that Madoff avoided a lawsuit to spare his wife’s angst and potentially get more money back for his clients.

“Madoff Conversations” by Jim Campbell. (Courtesy)

According to Campbell, Madoff had a “Big Four” of investors who extended the longevity of his Ponzi scheme.

“They would give him money every once in a while when he had a cash flow crisis,” Campbell said. “He grew up hating them. Big Four Big Four Jeffry Picower withdrew $ 7 billion from the Ponzi scheme. Bernie himself is considered to have stolen only $ 800 million.

Campbell’s book also examines whether Madoff, in addition to being an author, was also himself the victim of a tax evasion scheme in which “all kinds of dirty money” came from Eastern Europe, from Russia and Colombia.

“How much he knew how dirty the money was, I don’t know,” Campbell said. “More than a Ponzi scheme was happening.”

“Only a handful of people in total went to jail,” Campbell said. “Bernie was one. After his death three weeks ago, not a single person was still in jail for it… no one was fired at the SEC, eight people were demoted. You got it, you can’t just say it was Bernie.

Campbell wonders what might have happened if Madoff had survived the 2008 financial collapse.

“He probably would have continued,” Campbell said. “I calculated until 2021. He probably would have had $ 240 billion if he had kept his 11% [rate] within this time frame. “



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How a mortgage nerd bought a house in a seller’s market https://ctcontra.com/how-a-mortgage-nerd-bought-a-house-in-a-sellers-market/ https://ctcontra.com/how-a-mortgage-nerd-bought-a-house-in-a-sellers-market/#respond Wed, 02 Jun 2021 21:18:29 +0000 https://ctcontra.com/how-a-mortgage-nerd-bought-a-house-in-a-sellers-market/ I closed on my house about eight months ago, but I feel like it was in another lifetime. Yes, the COVID-19 pandemic makes time strangely elastic, but also, the housing market has undergone dramatic changes during this time. As a writer focused on mortgages and homeownership, it’s my job to monitor this stuff, and what […]]]>


I closed on my house about eight months ago, but I feel like it was in another lifetime. Yes, the COVID-19 pandemic makes time strangely elastic, but also, the housing market has undergone dramatic changes during this time. As a writer focused on mortgages and homeownership, it’s my job to monitor this stuff, and what I saw in 2021 were legitimate bananas.

If you’re having a hard time finding a home you can afford or trying (and failing) to get an offer accepted, I just mean – be indulgent with yourself. It’s not you. It is really difficult.

For those of us who aren’t already rolling in the money, it might take some big sacrifices to afford a home: sacrifices like taking extra work while living on a Spartan budget, breaking a “rule. Financial like borrowing from resource funds to create a multi-family or multi-generational household, moving from a high-cost part of the country to a low-cost part, or any combination of the above – plus all the things I did. did.

This is how I bought a house. It wasn’t glamorous, and most of it wasn’t fun, but it’s the kind of moves people determined to become homeowners make in this market. And if you’re unable to follow suit (or just don’t want to), don’t worry – there’s no shame in continuing to praise and strengthen your financial health in the meantime.

I moved in with my mother

Is moving with a parent when you’ve been living independently for years the coolest move? No. Was it smart for me? Yes, and I am more than grateful to have had this support; I realize that not everyone does. Working remotely from my childhood bedroom allowed me to spend the money I spent on rent. And, hey, because I moved in the summer of 2019 when COVID hit, I was way ahead of the homecoming curve.

The National Association of Realtors found that from July 2019 to June 2020, about 4% of all homebuyers reported moving in with family or friends to save money on buying a home. This number is around 7% for first-time home buyers.

Kristen and Robert Toth Jr. weren’t newbies, but they chose to move in with Robert’s mom soon after they listed their starting home in Allentown, Pa. In October 2019. That way they did. would have a bit of a break before buying again. and would be able to increase their down payment. They ended up staying for 10 months, watching anxiously as properties snatched away blindly for tens of thousands of dollars above the asking price when Pennsylvania closed last spring.

“There was no way for us to leave our old house and move into an apartment, pay rent and afford that house,” Kristen said of their three-bedroom ranch. , from the 1950s, in the suburb of Lehigh Valley. “If we didn’t live with a parent, we don’t know what we would have gotten. “

Kristen and Robert Toth Jr. closed their Pennsylvania home in October 2020 (Photo courtesy of Kristen Toth)

I made a 20% deposit

Ditto, Kristen, Ditto – there was no way I could have rocked my 20% down payment without cutting an expense as big as rent. Even if I had managed to pay off my car and my student loans, without drastically reducing my monthly expenses, it would have taken me years to save for a down payment.

In the first quarter of 2021, the median selling price of an existing home was $ 319,200, according to the NAR. You would need to skip nearly six years of café au lait to make a 3% down payment (the minimum down payment for a conventional loan) on a home at that price. Assuming a $ 4.50 cup of java, that equates to 2,128 lattes – and that doesn’t even include the other upfront expenses involved in buying a home, like paying closing costs or paying for it. hiring of movers.

Another problem? While paying the minimum down payment is easier in your bank account and, with mortgage interest rates at historically low levels, allowing you to borrow more money for less, it can be a handicap. in a hot market. This is especially true now, with home prices sometimes exceeding appraisals and sellers concerned about a mortgaged buyer’s ability to cover a valuation gap.

“When you evaluate offers as a seller and you get a rate of 3.5% [Federal Housing Administration loan] and a conventional 20%, if they are both equal and they both try to achieve a valuation of $ 350,000, you would naturally choose the one with the higher down payment because you know they can bridge this gap, ”says Mike Ferrante, real estate agent at Century 21 Homestar in Cleveland.

In other words, since the 20% buyer has more cash on hand, a seller might assume that they could use some of those funds to cover a valuation gap and just make a lower down payment. . A valuation gap occurs when a home’s appraised value is less than what you offered.

Lenders will not allow you to borrow more than the value of a home. So if you want to continue despite a low valuation, you have to be able to make up the difference in cash. (Or the seller has to cut the price, which probably won’t happen in a very hot market.) Buyers who plan to deposit 20% are better positioned to move some of that money to cover a valuation gap, everything. respecting the minimum. payment requirements. This may be one of the reasons why in March 2021, 29% of first-time home buyers put in 20% or more, according to NAR data.

I got mortgage pre-approval

When I was ready to stop just scrolling through the real estate listings and seeing the properties, I researched lenders and ended up applying for a mortgage pre-approval with about half a dozen. Full Disclosure: Not sure if I would have thought of doing this, or even comparing lenders, if I hadn’t written about mortgages for a living.

As I searched for homes in Spring 2020, my local real estate market was hot, but sellers were also wary of too many strangers browsing their homes. Many sellers have asked buyers to show proof of financing before allowing them to visit homes in person.

A year later, it’s less about coronavirus issues than sellers anticipating multiple offers over the sale price. “We won’t even remove people if they don’t have prequalification or pre-approval; you won’t be accepted if you don’t have an offer in hand, ”says Brent Landels, agent for Re / Max Key Properties, which is based in central Oregon. Landels advises looking at homes that are listed below your pre-approval amount, as this gives you the opportunity to bid higher.

The author in front of the front door of his yellow house.

The author closed her home in September 2020 (Photo courtesy of Kate Wood)

I bought a fixer

I walked through over 20 homes in person and scrolled through who knows how many more online. Finally, in September 2020, I closed a 1740s Cape Cod-style home in eastern Connecticut that needed a lot of love (you read that right, it’s almost 300 years old). It had a lot of period charm, a large lot with lots of mature trees, but if he had been ready to move in I doubt I could have afforded it.

This low initial sticker price may come at a cost, which Monica Lee and her partner Dan Hart also found for the repairman they purchased just outside of Washington, DC “We Found a Home in Takoma Park which was ridiculously cheap, but it was unlivable, ”says Lee. In August 2020, the couple bought the house, which Lee said had been unoccupied for about 10 years, with an FHA 203 (k) loan. covering the cost of the mortgage as well as their planned renovation.

The logistics of their loan turned out to be more difficult than expected. “I worked for the government, I get permissions, I thought I was going there with my eyes wide open and I could get things done,” Lee said. Red tape and contractors’ security concerns have pushed the couple’s timeline again and again, but Lee says, “You learn a lot. You feel like you’ve accomplished something. I’ll feel like we love it. the House.”

Be patient with yourself and the market

Buying a home in a sellers market has certainly meant more work (and money) than I expected. I ended up staying with my mom for months after it closed while I put the house back into place to live. But I’m starting to like my house too.

If you can hang in there, make the sacrifices this market demands, and end up with a place of your own, congratulations. And if you choose to give up your home search for now, I can’t say I blame you.

Yes, you’ll have to keep renting longer, but you’ll also have more time to save for a down payment and maybe adjust your credit score, which can help you get a better interest rate. The market might even become a bit more buyer-friendly. You still have plenty of time to become a homeowner – and if now isn’t the right time for you, that’s okay.

More from NerdWallet

Kate Wood writes for NerdWallet. Email: kwood@nerdwallet.com.

The article How a Mortgage Nerd Bought a Home in a Seller’s Market originally appeared on NerdWallet.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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Is A Reverse Mortgage Right For You? https://ctcontra.com/is-a-reverse-mortgage-right-for-you/ https://ctcontra.com/is-a-reverse-mortgage-right-for-you/#respond Tue, 01 Jun 2021 17:04:19 +0000 https://ctcontra.com/is-a-reverse-mortgage-right-for-you/ June 1, 2021 We recently wrote an article on how maybe now is the time to make a large donation to loved ones due to federal inheritance and gift tax. The same can be true when considering a reverse mortgage. In today’s Connecticut real estate market, property values ​​continue to grow. Plus, valuations are rising, […]]]>


June 1, 2021

We recently wrote an article on how maybe now is the time to make a large donation to loved ones due to federal inheritance and gift tax. The same can be true when considering a reverse mortgage.

In today’s Connecticut real estate market, property values ​​continue to grow. Plus, valuations are rising, which means seniors will now be able to get more funds through a reverse mortgage. If you already have a reverse mortgage, you may want to consider refinancing the loan.

Reverse mortgages continue to be one of the most misunderstood long-term and retirement planning tools. There are many myths surrounding the reverse mortgage program. Questions you might have are:

1. Will the bank own my property? NO! You will still be the owner subject to a mortgage.

2. Will the monthly payments be high? There are no monthly payments, only the payments you are currently paying, for example: property taxes, home insurance, etc.

3. Will the bank get my property and not my family if I die soon after getting the reverse mortgage? The bank will not receive a windfall. The mortgage will need to be paid and the balance will go to your family and / or your estate.

Reverse mortgages allow homeowners 62 years of age or older to borrow money for their home. The homeowner receives a sum of money from the lender, largely based on the value of the home, the age of the borrower, and current interest rates. There is no need to repay the loan until the last surviving owner dies, sells the house, or moves out permanently. Homeowners can use the money from a reverse mortgage to pay for improvements to their home, to allow them to delay enrollment in Social Security, or to pay for home health care.

The most widely available reverse mortgage product is Home Equity Conversion Mortgage (HECM), the only reverse mortgage program insured by the Federal Housing Administration (FHA). The national limit on how much a homeowner can borrow is $ 822,375.

Seniors with more expensive homes have an increased ability to secure a giant reverse mortgage in order to raise money for retirement. When the previous housing market improved, giant reverse mortgages became popular.

High-end borrowers should look to the jumbo reverse mortgage, which has no loan limits. Jumbo reverse mortgages allow seniors to borrow millions of dollars. Qualified borrowers can borrow up to $ 4 million in loan proceeds.

Reverse mortgages are “no recourse” loans; even if the home ultimately sells for less than the reverse mortgage amount, the seller never owes more than the home’s value. The amount to which seniors may be entitled depends on their age and the value of their home; the older they are, the more they can qualify.

John Luddy, senior vice president of reverse lenders at Norcom Mortgage, noted that one of the most compelling reasons to use a reverse mortgage is to pay for home care so you don’t work in a nursing home. He also noted that by using a reverse mortgage to pay for home care, hopefully you won’t have to tap into your own retirement accounts, which could compromise your own ability to pay for your future retirement needs. health care.

A reverse mortgage may not be the right step for everyone. Ask an elder lawyer if a reverse mortgage is right for you. A reverse mortgage can be the solution to help you get through these tough times.



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