Dominion Homes Inc. and Wells Fargo Home Mortgage Inc. have finalized their mortgage-banking joint venture.

The new business, dubbed Centennial Home Mortgage LLC, will originate and fund mortgages for potential Dominion customers in the homebuilder's markets in Ohio, Kentucky and Indiana, as well as the general public.

The business will take over the mortgage-origination services, including qualifying borrowers and processing applications, previously handled by Dominion's mortgage-brokerage arm, Dominion Homes Financial Services Ltd.

"If you had told me we would have had this many people for a friggin' mortgage company opening--give me a break," said Donald Trump, speaking to several hundred people crammed into a lower level space at Trump Tower.
It's not typical that an 11 a.m. mortgage company launch could turn into a media circus.

"When Don [Trump, Jr.] and I struck the deal, we said, 'We'll have a new conference," continued Mr. Trump. "What we didn't expect was Extra!, Access Hollywood, Entertainment Tonight, and some of the other folks up here. Take a look Lois--my friend Lois [Weiss] from the New York Post."

Mr. Trump was joined by E.J. Ridings , the new company's President and CEO, and his son, who is also involved in the project.

"The business they're doing is unbelievable," said Mr. Trump in typically, grandiose fashion. "Literally, we signed the lease a few months ago, they are going to take an additional floor."

The National Association of Realtors recently released an interesting report about the sale of second homes in the United States. While the survey is a little outdated, the data covers sales over five years to the end of 2004, it still provides a perspective as to who, where, and how non-primary residences are being purchased.

For example, during the years from 2001 to 2004, second home sales (which include both recreational/vacation property and investment property) more than doubled from 405,000 to 881,000 while first home sales increased from 4,316,000 to 5,332,000. In 2000, second home sales represented 8.6 percent of all loans but by the end of 2004 represented 14.20 percent of total activity.

You have twenty-five days to file your taxes until April 17. Taxpayers who did a refinance mortgage on their homes may be eligible to deduct some costs associated with their loans. Generally, for taxpayers who itemize, the "points" paid to get a home mortgage may be deductible as mortgage interest. Depending on circumstances, points can be fully deductible for the year paid.

For a refinanced mortgage, the interest deduction for points is determined by dividing the points paid by the number of payments to be made over the life of the loan. However, if part of the refinanced mortgage money was used to finance improvements to the home and if the taxpayer meets certain other requirements, the points associated with the home improvements may be fully deductible in the year the points were paid.  Seek the advice of an accountant if you have further questions.

A Cincinnati, Ohio, mortgage broker pleaded guilty in U.S. District Court to bank fraud, conspiracy and income tax evasion charges in an ongoing federal probe of fraud in the buying and selling of low-priced homes in that town, the Cincinnati Enquirer reported Saturday.

Kelvin Mitchell, branch manager for Mortgages Unlimited, prepared loan applications that he knew were false because they overstated the borrowers' income and assets, federal investigators said, according to reports.

Data from the Bureau of Economic Analysis (BEA) shows that despite our personal income increasing, our personal savings has decreased. On average, the typical American family is spending more than it earns.

So without a savings emergency fund where do people turn on a rainy day? A mortgage can sometimes allow you to have an emergency fund available and ready for you. As in the case of unemployment, if you do not have the funds, you may not be able to pay your mortgage monthly and will end up in foreclosure, likely resulting in complete loss of all equity, no matter how much you had. Theres countless other reasons to need these funds such as medical emergencies, natural disasters, or even major life events such as a child's college tuition.

If you do not have an emergency fund, and you have some equity in your home, you need to look into your mortgage options now, before it is too late. To do this, get with your financial planner or a Certified Mortgage Planning Specialist who can help you decide which strategy is best for you.  Often you can take out an equity line that has draws available so the balance is $0 until you decide to use the credit line.

On Wednesday HomeServices of America Inc., said it acquired Huff Realty for an undisclosed price to expand in the U.S. Midwest. Huff, whose corporate offices are in Cincinnati and Fort Mitchell, Kentucky, is a residential real estate brokerage, mortgage and title company with 12 locations and more than 700 sales associates in Ohio and northern Kentucky.

The addition of Huff gives Minneapolis-based HomeServices more than 20,000 sales associates in 19 states. Known for its insurance holdings and investments, Berkshire has announced or completed at least four acquisitions this year.

A San Jose woman was arrested Tuesday on charges she conspired to defraud mortgage lenders by falsifying borrowers' financial backgrounds. Melissa Renee Duran-Casaus, 32, also is charged with three counts of grand theft from some of the lenders for the amounts of the real estate loans that were paid out based on the false information she submitted to them.

According to court documents, she allegedly worked for a local insurance broker when she was asked by a real estate agent to handle employment verification inquiries from lenders in return for payment. Prosecutors say she falsely stated that the loan applicants had worked at the insurance brokerage for a number of years and were earning relatively high wages. If convicted of all the charges Duran-Casaus faces up to seven years and four months in prison.

Ameriquest Mortgage Co., has agreed to a judgment that will require it to clearly disclose loan terms and fees, not tamper with appraisals and set aside $26.6 million to pay restitution to California customers.

The judgment, entered Tuesday in Alameda County, spells out terms of a previously announced $325 million deal between Ameriquest and prosecutors in 49 states that in addition to the $26.6 million for California includes $175 million in nationwide restitution payments. Both sets of payments could raise restitution to customers throughout California to as high as $50 million, prosecutors said.

Prosecutors accused Ameriquest of using "bait and switch" and other misleading sales tactics, hiding loans' financial terms and prepayment penalties, arranging inflated property appraisals and encouraging prospective borrowers to fabricate income statements.
Ameriquest, based in Orange, denied any wrongdoing.

The injunction, which applies to Ameriquest's retail offices, requires the company to provide customers' with a one-page disclosure stating clearly whether it is fixed or variable rate. The disclosure, which must be handed over three days before the loan closes, must also reveal a loan's size, fees, points, monthly payments, interest rate and maximum prepayment penalties, and it must be available in Spanish or any other languages in which Ameriquest advertises.

The injunction also requires that Ameriquest tie loan terms to credit risk, limit its role in the appraisal process and protect whistle blowers. It forbids payment of sales incentives for getting consumers to agree to prepayment penalties and bars the company from soliciting refinancing transactions during the first 24 months of a variable interest mortgage.

Holy Cow, a full-service creative agency, is pleased to introduce itself as the agency of record for The Mortgage Bus. Holy Cow’s primary focus with The Mortgage Bus is to develop intense public relations, strategic marketing and consistent branding.

On The Mortgage Bus, clients are introduced to The Mobile Advantage: a revolutionary concierge service where mortgages, real estate sales and loan closings are being offered in a relaxed and convenient mobile environment. Customers are able to complete a loan application, select an interest rate and close their real estate transaction on board the bus. In addition to helping buyers with their loans, The Mortgage Bus is also available for realtor home tours, first-time home buying seminars, credit counseling workshops and more.

Authorities said 38-year-old Brinson Allen of Alpharetta, an employee of the U.S. Department of Homeland Security expected to walk away from a loan closing Monday with $800,000 in cash. An FBI sting operation revealed that Allen allegedly falsified his income information to show he made $62,000 a month and told bankers he had about $1 million deposited in various bank accounts.

After failing to secure the mortgage by pretending to be a FBI agent, Allen used the false income and asset information to obtain $2.5 million in mortgage loans to purchase a $3.3 million house at 320 Longvue Court in Duluth, said Patrick Crosby, spokesman for the U.S. Attorney’s Office. The purchase price of the house was allegedly inflated so the borrower and his co-conspirators could line their pockets with $800,000 in cash, plus the return of the required $842,000 down payment.

Lenders are growing wary of the riskier yet more flexible mortgages. They are making changes that could make it harder for borrowers to stretch into homes or refinance existing mortgages.

In December, federal banking regulators proposed guidelines to rein in lenders peddling loans that offer below-market introductory teaser rates, interest-only loans and payment-option loans that permit payments that don't cover even the interest. Just days before those long-anticipated guidelines were released, Washington Mutual, the nation's third-largest lender, acknowledged it had tightened its underwriting criteria on payment-option loans.

Piggyback loans that add a second loan for buyers who need to borrow the down payment are losing popularity according to Anthony Hsieh, president of LendingTree.com. Some lenders now require borrowers to pay off or refinance the balance of the second loan within two years.

Wells Fargo says it's getting a stream of calls from skittish homeowners holding these unconventional mortgages who want to refinance before their monthly payments vault.  The days of loose lending appear to be coming to an end.

PHH Corp., a provider of outsourced mortgage services and vehicle fleet management operations, has hired Clair Raubenstine as an executive vice president and its chief financial officer.

According to Terry Edwards, president and chief executive officer, "Clair Raubenstine's extensive public company accounting background will serve PHH well in today's complex business and regulatory environment."

Raubenstine had spent the previous 39 years at PricewaterhouseCoopers LLP.

An anti-predatory lending law in Montgomery County, Maryland has been suspended for at least four months by a state judge until after hearing the full case in early July.

The legislation would have been the first anti-predatory lending law in the nation to tie abusive lending with civil rights laws. A lender deemed to be in violation of the law would have faced penalties of up to $500,000.

About 40 lenders had ceased operations in Montgomery County as the law was set to be enacted.

The typical amortization schedule for a home loan provides for an even number of payments that consist of an identical sum of money each month. Each payment consists partly of mortgage principal, interest, and taxes. In the early years of the mortgage, most of the payment is interest, with only a small portion being applied to the principal.

By adding as little as $20 or $50 a month the term of the mortgage can be reduced a lot. As the principal is reduced, so is the interest that is due on the remaining balance. This compounds over time, reducing the overall time of repayment. For example an extra $50 each month on a $200,000 mortgage at 6.5%, will cut more than three years off of the repayment schedule.