Intercap Lending & The Power Is Now 2014

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Agenda 

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Introduction of Eric L. Frazier MBA NSM NMLS #461807 Introduction of The Power Is Now Inc. Introduction of Intercap Lending Intercap Lending Proprietary DPA Program Non-Prime, Investor & Business Loans Mortgage Access Program Credit Analyzer FHA Back To Work Program SNAP Pre –approval Certificate Q&A

My Story Eric L. Frazier, MBA National Sales Manager President/CEO TPIN

Introduction 

Married 33 years 4 Daughters 

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Born in Memphis Tenn. Native IE. SB. 

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Residence Riverside 14 years.

University of Redland Graduate Degrees: BSBAM, & MBA in Finance 33 years as Lender/Mortgage Banker 28 years as Real Estate Broker Co-Founder of Frazier Group Realty President of The Power Is Now Inc. 

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One in College., Three MBAs. All In Real Estate

Radio | TV | Magazine | Events | Financial Services

President of The Power Is Now Foundation President of The OC Realtist (NAREB) BOD of California Assoc. or RE Brokers BOD of California African American Museum BOD of Project Tomorrow (k-12th Ed)

Introduction of The Power Is Now Inc. Eric L. Frazier, MBA President & CEO

Management Team:

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Operations Team:

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Rachel Bacol, Executive Assistant Manager Success Money, Financial Services Manager Jimm Kelley, Relationship Manager Timothy Turner, Director Real Estate Acquisition Diane Ting, Website and Social Media Manager

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Eric Egana, Assistant Editor Goldy Ponce, Graphic Designer Sanjay Thankur, Webmaster Rahul Patel, Webmaster Amiee Licero, Admin. Assist Gail Valeskie, Transcriber

The Power is Now Inc. - Products 

The Power Is Now Radio  Business | Community | Radio Guide

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www.blogtalkradio.com/thepowerisnow

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The Power Is Now TV  Education | News | Special Shows

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www.thepowerisnow.com/power_tv/motivation/3

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The PIN Magazine  Lifestyle Magazine & Real Estate Trade Magazine 

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www.thepinmagazine.com

The Power Is Now Events  Sponsored Real Estate Educational Events  October23rd from 8:30 AM to 2:00 PM  Inland Valley Realtor Association, Riverside, CA

The Power Is Now Inc. - Services 

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The Power Is Now VIP Real Estate Agent Program  Advertising | Mastermind Group | Lead generation  www.thepowerisnow.com/service/vip-agents The Power Is Now Power Coaching  Business | Personal | Leadership | Management | Events  www.thepowerisnow.com/service/power-coaching The Power Is Now Advertising Opportunities  Corporate sponsorship | Radio | Magazine | TV | Event  www.thepowerisnow.com/radio_medit_kit  www.thepowerisnow.com/magazine_medit_kit

The Power Is Now Inc. - Services 

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The Power Is Now Real Estate Acquisition and Sales  Note sales | Bulk Sales | SFR Sales | Commercial & Multi Family Sales The Power Is Now Financial Services  Credit Restoration | Business Funding | Financial Education |  www.united-credit.org | www.protectionthatpays.com

Introduction of Intercap Lending History of Intercap Lending  

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From Asset Management to Lending Suburban Mortgage Company of New Mexico 1978 Direct FNMA, FHLMC, GNMA only 1% of lenders have these three key approvals 1 Billion in servicing Approved in 30 States

Intercap Lending DPA Program Eric Frazier, National Sales Manager

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Intercap Lending Proprietary DPA Program

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Foreclosure, Short Sale and Deed Inlieu

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Intercap Non-Prime & Business Loans Eric Frazier, NSM

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Non-Prime 

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“Smart Non-Prime” loan programs to those borrowers with less than perfect credit.

Programs Highlights:     

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Up to 80% LTV Available Bank Statement for Self Employed Cash Out, Owner Occupied with 500 FICO to $750,000 Owner Occupied with Foreclosure & Bankruptcy >3 years to 80% LTV Owner Occupied with Short Sale or Deed-in-Lieu >1 year to 80% LTV One day out of Foreclosure & Bankruptcy available 50% Debt to Income!!

No Prepay Penalties - Period!

30 year amortization, no balloons

LET'S GET BACK TO SMART LENDING

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NON PRIME LOANS MATRIX CREDIT GRADE "A" CREDIT GRADE "A -" FICO 700+ 650 + MTG 0X30 12 MO 0 X 30 1 X 30 BANKRUPTCY > 3 Years 3+ 3+ FORECLOSURE > 3 Years 3+ 3+ SHORT SALE / DIL > 2 Years 2+ 1+ PURCH to MAX 80% LTV 80% 80% R/T & C/O REFI to MAX 75% LTV 75% 75% MARGIN: 5:00% 5:00% 5.75% MAX RATE 8.35 8.95% MAX LTV 80% 80% LOW RATE 7% 7.60% LOW LTV 40% 40% GENERAL INFORMATION Property Types SFR / Condos / Townhouse / 2-4 Units Occupancy Owner / Non Owner / 2nd Home Loan Terms 30-Year Amortized & Term - 7/23 Hybrid ARM Loan Amounts $75,000 - $1,000,000 Income Documentation Full Doc = W2 + Pay Stubs / Wage Earner or 1040's + P&L / Self-Employed or Commission Alt Doc = 24 Month Personal or Business Bank Stmts / SE Only Maximum Debt-to-Income Ratio 50% Back End (43% for First Time Home Buyers <650 FICO) Index & Adjustment Caps Floored at Start Rate / 6 Month LIBOR Index 3% Initial Change Cap / 1% Semi-Annual Cap / 6.0% Life Cap Open: CA, CO, FL, ID, OR, TX, & WA Texas: Purchase Only OO / Purchase & Refinance NOO or 2nd Home

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CREDIT GRADE "B" 600 + 0 X 60 2+ 2+ SETTLED 75% 70% 6.95 9.25 75% 8.25% 40%

CREDIT GRADE "B-" 550 + 0 X 90 1+ 1+ SETTLED 65% 60% 7.50% 9.25 65% 8.85% 40%

CREDIT GRADE "C" 500 + 0 X 120 SETTLED SETTLED SETTLED 60% NO "HIGH COST" LOANS 7.95% 10.95% 60% 10.25% 40%

] BUSINESS USE â&#x20AC;&#x201C; OUTSIDE OF DODD FRANK 5 Year Interest Only / 15 Amort LTV Rate 50 8.95% 60 9.250 65 9.500

7/23 Hybrid ARM Rate 9% 9.25% 9.50%

GENERAL INFORMATION Property Types SFR / Condos / Townhouse / 2-4 Units Occupancy Owner / Non Owner / 2nd Home Loan Terms 20-Year Amort & Term 5 Yr interest Only to 15 Yer Fully Amort 30 - Year Amortixed & Term - 7/23 Hybrid ARM Index & Adjustment Caps Floored at Start Rate / 6 Month LIBOR Index / 6.950% Margin 3% Initial Change Cap / 1% Semi-Annual Cap / 6.0% Life Cap Loan Amounts $100,000 - $500,000

Income Documentation Stated Income / Verified Assets (If Applicable)*** ** Foreign National Funds to Closed Must be verified in US Dollars With Valid Banking Relationship in Country of Origin.

Impounds for Taxes / Insurance Required.

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Mortgage Access Program (MAP) Homeowner Layaway Program

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Mortgage Alternative Program (MAP) 

This program allows for buyers to purchase homes even with recent derogatory credit such as bankruptcy, foreclosure and short sale.

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Minimum FICO requirement of 550

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Alternative income documentation

How does MAP work?  

The buyer is prequalified by Intercap Lending , and then they work with their Realtor to locate a property.

Property is approved by investor and then purchased for cash.

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Buyer pays a “rent” payment that is roughly the same as a PITI payment at 4.5%.

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Buyer then has up to 6 years to purchase the property back from the investor.

What does it cost? 

The fee for the service is 3% of the sales price. 

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This may be paid by the seller in the contract.

Buyer shall also deposit 5% of the sales price in an escrow account that will apply towards the purchase price when they qualify to buy.

MAP program will retain 3% increases in rent and 3% of appreciation each year until purchased by the buyer.

Any and all additional appreciation belongs to the buyer.

If the borrower walks away they will pay a 3% fee from the 5% deposit in escrow.

More benefits ď ˝

Improvements are allowed to the home even before it is purchased from the investor.

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What a great way for buyers to get into homeownership while they are building their credit and ability to fortheir own loan.

Do not let the cost of buying a home or the appreciation that houses are receiving become out of reach. You can buy now. and get a loan later.

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Credit Analyzer and Rapid Rescore Donâ&#x20AC;&#x2122;t Wait For Credit Repair

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Credit Analyzer 

Pinpoint credit issues and guide borrowers on exactly what needs to be done to raise a score by a specific number.

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Starts at time of application so we can structure the loan around any cash that may be needed to pay accounts down or off.

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This service is performed on each bureau and borrower individually and is free.

Rapid Rescore

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Once a potential fix is determined, a rescore can be ordered and completed in about 48 hours.

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We have funded loans for many borrowers that were previously turned down by other lenders who do not offer this service.

FHA BACK TO WORK PROGRAM Buy FHA with 1 year BK, Foreclosure, Short Sale, Deed in Lieu

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Mortgagee Letter 2013-26 Back to Work - Extenuating Circumstances

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Minimum underwriting standards and criteria for evaluating borrowers who have experienced an Economic Event that resulted in a severe reduction in income due to a job loss or other circumstances resulting in reduced Household Income.

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Mortgagee Letter 2013-26 

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FHA is allowing for the consideration of borrowers who have experienced an Economic Event and can document that: Certain credit impairments were the result of a Loss of Employment or a significant loss of Household Income beyond the borrower’s control; The borrower has demonstrated full recovery from the event; and, The borrower has completed housing counseling.

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Mortgagee Letter 2013-26 

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The Economic Event, as defined in this ML, resulted in: foreclosure, short sale, bankruptcy or other negative impact on their credit, 

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In addition to meeting the guidelines set forth in this ML, loans originated using these criteria must meet all other applicable FHA eligibility and policy criteria.

Definitions 

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An Economic Event is any occurrence beyond the borrower’s control that results in Loss of Employment, Loss of Income, or a combination of both, which causes a reduction in the borrower’s Household Income of twenty (20) percent or more for a period of at least six (6) months.

The Onset of an Economic Event is the month of Loss of Employment/Income.

Recovery from an Economic Event is the re-establishment of Satisfactory Credit (as defined on page 5 of this ML) for a minimum of twelve (12) months.

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Satisfactory Credit 

Satisfactory Credit: Requirements

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The lender may deem a borrower to have Satisfactory Credit if: the borrower’s credit history is clear of late housing or installment debt payments, and major derogatory credit issues on revolving accounts; any open mortgage is current and shows twelve (12) months satisfactory payment history.

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Mortgages may have been brought current through loan modification, which may be “temporary” or “permanent” so long as all payments have been documented as being received in accordance with the modification agreement(s); and

Satisfactory Credit 

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Satisfactory Credit: if the borrower’s non-traditional credit history covering at least twelve (12) months in duration includes: No history of delinquency on rental housing payments; No more than one thirty (30) days delinquency on payments due to other creditors; and No collection accounts/court records reporting (other than medical and/or identity theft).

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Documentation of Economic Events ď ˝

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The lender must first analyze and document: (1) all delinquent accounts and (2) all indications of derogatory credit, including collections and judgments, bankruptcies, foreclosures, deeds-in-lieu, short sales, and other credit problems, to determine whether associated late payment, credit deficiencies or other credit problems were the result of an Economic Event, or an inability to manage debt or a general disregard for managing financial obligations.

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Documentation of Economic Events 

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To establish that borrower’s derogatory credit was the result of an Economic Event, the lender must review the credit report and determine that: the borrower exhibited Satisfactory Credit prior to the Economic Event Onset; the borrower’s derogatory credit occurred after the Economic Event Onset, and the borrower has re-established Satisfactory Credit for a minimum of twelve (12) months.

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Documentation of Economic Events 

Economic Event-Related Collections and Judgments

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The lender must verify and document all collections and judgments were the result of the Economic Event.

For borrowers with open collection accounts or judgments, the lender must also meet the requirements of Handbook 4155.1, Section 4.C.2.e, Analysis of Collections and Judgments.

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Documentation of Economic Events 

Economic Event-Related Mortgage Foreclosure

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The lender must verify and document that: a minimum of twelve (12) months have elapsed since the date of foreclosure or deed-in-lieu; and the foreclosure or deed-in-lieu was the result of the Economic Event.

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Documentation of Economic Events 

Economic Event-Related Short Sale

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The lender must verify and document that: a minimum of (12) months have elapsed since the date of sale; and the short sale was the result of the Economic Event.

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Documentation of Economic Events 

Economic Event-Related Chapter 13 Bankruptcy

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The lender must verify and document that: the Chapter 13 Bankruptcy was discharged prior to loan application and all required bankruptcy payments were made on-time, or a minimum of twelve (12) months of the pay-out period under the bankruptcy has elapsed and all required bankruptcy payments were made on time; and the bankruptcy was the result of the Economic Event.

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Documentation of Economic Events 

Economic Event-Related Chapter 7 Bankruptcy

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The lender must verify and document that: a minimum of twelve (12) months have elapsed since the date of discharge of the bankruptcy; and the bankruptcy was the result of the Economic Event.

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Documented Housing Counseling 

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Intercap Lending must verify and document that: The borrower has completed the required pre-purchase housing counseling by obtaining a letter from the borrower issued by the Participating Housing Counseling Agency on agency letterhead and that includes the agency’s Tax Identification Number (TIN).

The letter must state: the borrower’s name, the counselor’s name, that counseling was delivered in accordance with ML 2013-26 requirements, the date upon which counseling was completed, borrower’s signature and the signature of an authorized official of the counseling agency providing the counseling, and the borrower received the proper disclosures from the housing counseling agency.

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Questions Call FHA 

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Mortgagee Letter 2013 – 26 If you have questions regarding this Mortgagee Letter, please call the FHA Resource Center at 1-800-CALLFHA (1-800-225-5342).

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SNAP Speedy New Approval Process 43

Speedy New Approval Process (SNAP)

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What is the SNAP used for? 

You have all heard of a real estate transaction where the buyer’s loan went south resulting in a transaction that either closed late, or didn’t close at all.

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A SNAP approval is fully reviewed by an underwriter UPFRONT, so we can avoid any surprises.

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A listing agent, see an offer that comes with a SNAP approval, rest assured that the transaction will go smoothly.

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All buyers should make sure they have a loan BEFORE they spend time and money looking for a home. Get your offer accepted by the seller by submitting a SNAP approval with your offer and see the difference it makes.

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Questions and Answers Eric L. Frazier

THANK YOU “Creating Homeownership with Less Obstacles”

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