Oct 30, 2015

TRID Update



Oct 26, 2015

Close a loan in 9 days with TRID? – We can do that

4641 Cartwright Ave

By now, we’re sure you’ve heard of TRID, and how it will make closing take at least 45 days, if not longer. Fortunately, Movement Mortgage has been preparing for TRID over the last year and we are proud to announce that we have closed our first loan…and we did it in 9 days. Did we mention that this included a weekend and a federal holiday? By streamlining our process to have several procedures all happening at once instead of one after the other, we are not only closing loans in the same amount of time we were doing it before, but TRID has actually made us even faster.

The loan was submitted on October 12th, and by the 15th we had the Conditional Loan Approval, Appraisal Ordered, and Appraisal received and forwarded to the borrower. By the 20th, the loan was Approved and Cleared to Close, the Closing instructions were sent to the agent and the HUD Settlement Statement prepared. The next day, the Closing package was sent to the closing agent. Done.  Between writing offers with no loan contingency and with an escrow period of 30 days or less, you should be using our team to write offers on all of your deals.

As always, it was great working with Angela Bond with Bond Real Estate and it was our pleasure to work with buyer Sarah Pearson at Teles Properties for the first time. Sarah was with us for every step of the way and kept her clients informed throughout the process. The best part is they now know that Movement Mortgage can keep everything moving at the speed that they’re used to. Not 45 days or more.

Keep things moving at the pace you have come to expect by calling Scott Groves @ 818-679-5188 or apply online at www.LendLA.com

Oct 23, 2015

Closing Loans On Condos That No One Else Can

pasadena condo bensan

The Groves Lending Team just closed on this cool condo in Pasadena.

After the borrower had been in escrow for 20 days, the Groves Lending Team was asked to jump in and save the day.   When it comes to condos, all homeowners associations must have a general liability with endorsements insurance policy in place which is typically included in an umbrella policy.  This policy protects the association’s reserves if they it is sued for liability.   The problem that the other lender ran into was that the general liability and endorsements policy was shared between this association and several others.   This meant that there was enough coverage for all of the associations but not enough for each individual one.

We provided all the insurance documents to our amazing condo department, which quickly determined the the shared policy was the source of the problem.   We were able to present the documents and give an explanation of it to Fannie Mae and received full project approval for conventional financing.   This once again shows that even when disaster strikes in the middle of escrow, the Groves Lending Team has many ways to step in and turn a potential deal-breaker into a success story.

We want to thank the terrific realtors on both sides of this transaction.  On the buying side Kari Carson from The Partners Trust was amazing in able to reassure her clients that the escrow would be closed successfully and was there to talk them off the ledge when the other lender dropped the ball.  If you are ever looking to buy a house in the foothills, you have Kari be your first call at 818-424-5537.

On the seller’s side we had the privilege to work for the first time with Susan Ratliff from The Ratliff Team of The Partners Trust.  Susan was a miracle worker when it came to working with the HOA to resolve problems and in keeping her sellers calm throughout the whole escrow.  If you are looking to buy or sell in the Pasadena area and want a real estate team to have your back, give Susan a call at 818-489-4121.

If you find your lender running into issues during escrow, call Scott Groves @ 818-679-5188 or apply online at www.LendLA.com.

Oct 5, 2015

Less than 20% Down No MI & No Second – We Can Do That

Park Hills

The Groves Lending Team just closed on this traditional home in Park Hills.

When buying a home with less than 20% down, mortgage insurance is normally required.  We have our clients who want to put between 10% to 19% down take out a second loan in an amount sufficient to the first mortgage to 80% of the home’s value, thus avoiding the need for mortgage insurance.   The second loan is a home equity line of credit has a monthly payment that is less than the normal mortgage insurance monthly payment.

For clients who are putting between 5% and 9% down on a conventional loan, or who are using Fannie Mae’s new 3% down first time homebuyers loan, we have seen the benefits of having them make a one time upfront mortgage insurance payment, paid by the lender in exchange for a slightly higher interest rate.  In this way, the client is able to have his or her mortgage insurance paid upfront and never have to worry about it again.  When comparing a lower rate with monthly mortgage insurance and a slightly higher rate without monthly mortgage insurance, the numbers are surprising.

Of the different scenarios we offered our borrower in this case, a low down payment with lender-paid upfront mortgage insurance made the most sense and saved the most money.

We were also lucky to work with Cesar Leyva from the Regal Agency as the buyer’s agent on this deal. If you are looking to buy or sell from downtown LA to the Westside, team highly recommends you give him a call at (424) 202-4243.

If you have any questions regarding ways to buy a home without mortgage insurance, please call Scott Groves @ 818-679-5188 or apply online at www.LendLA.com


Sep 30, 2015

Concurrent Sale Closed in 15 Days – We Can Do That


The Groves Lending Team just closed on this beautiful Spanish bungalow in Toluca Lake.

When we first met with our amazing borrower he was concerned about the overall time line of this transaction.  He was selling his current condo and using the proceeds of the sale to buy this new home. We explained to him that a concurrent sale is nothing to be afraid of and we walked him through the timeline several times.  Once he had a buyer for his condo, he was able to enter escrow on this new home.  Our client was so happy with the timeline and our progress, he asked if we could close early.  We here are at the Groves Lending Team love to close escrows early.  Once our client’s condo recorded, we were able to close on his new home in only 15 days.

When it comes to concurrent sales, everyone needs to be in constant communication for both transactions.  Thankfully we had a great buyer’s agent who was able to help supervise both escrows.  Champ Davenport from the REO CO Team went above and beyond throughout escrow to make sure everything ran smoothly with both properties.  If you are ever looking to by our sell on the Westside or in the Valley, give Champ a call at (323) 842-1539.

If you have any questions about selling your home and buying a new home or if you want to close your loan quickly, call Scott Groves @ 818-679-5188 or apply online at www.LendLA.com


Sep 29, 2015

Closing a Jumbo Loan in 9 Days, We Can Do That


The Groves Lending Team at Movement Mortgage just closed this amazing Eagle Rock home.  The team was called in at the eleventh hour to jump in and save the day when the previous lender was unable to deliver.  It shows that when you have everyone on both sides of the transaction on the same page and working toward a common goal, amazing things can happen.

We received word on a Thursday that the previous lender was having problems gaining an approval on the file. By the following Tuesday, which was after a holiday, we had all documents from the borrower and a full loan approval. Because we structured the loan correctly upfront we were able to have loan documents out that Friday.  From approval to docs it was only 9 business days.  Closing any loan in 9 business days is a feat in and of itself, but make it a jumbo loan and it is unheard of.

We were very fortunate to work with two amazing agents on this deal.  The one and only Rose Garcia from Garcia Real Estate Group was integral in getting this loan done.  Once she realized that something wasn’t right with the previous lender, she jumped in and told her borrower that they had to come to us in order not to lose any more time.  If you are ever looking for an agent who goes above and beyond for every client, Rose is your first call at (877) 633-6927.

We also had the privilege of working with Matt Morgus from Sotheby’s.  Matt was able to keep the sellers informed and calm once there was a change in mortgage companies.  He was there every step of the way making sure we had everything that we needed to close the loan.  If you are looking to buy or sell in the Eagle Rock area, give Matt a call at (323) 301-3041.

If you have a deal going sideways or would like to close a loan at lightning speed, call Scott Groves @ 818-679-5188 or apply online at www.LendLA.com


Sep 22, 2015

Gift of Equity From a Reverse Mortgage? – We Can Do That

Valenti Burbank

The Groves Lending Team just closed on this Burbank condo.

This was one of the most complicated loans that the team has done in a while.  Our borrowers were buying the condo from their parents.  We used a gift of equity from the parents for the down payment from our borrowers. This got tricky when we found that the current loan on the condo was a reverse mortgage.  There was just enough equity available to make the down payment for the borrowers and close the loan.  Later, during escrow, we found that one of our borrowers had switched jobs and was making less income.  We were able to re-work the entire loan in order to make everything work.  Now we have happy parents and happy borrowers.

As always, if you have any questions please call Scott Groves @ 818-679-5188 or apply online at www.LendLA.com

Sep 22, 2015

Can I Get Rid of My HELOC? – Yes We Can Do That!


The Groves Lending Team just refinanced this awesome duplex in Silverlake.

This picture may look familiar if you read our blog.  We originally helped our borrower purchase this property a year ago.  We were able to do an 80-10-10 loan on this duplex, since it is-owner occupied.  The borrower was able to put 10% down and get a second mortgage for another 10%, making the first mortgage an 80%, conventional mortgage requiring no mortgage insurance.  Now, a year later, our team contacted the borrower, since home values in the area have gone up.  It turned out that so much equity built up in the past year that we were able to refinance both the first and second loans into a single 80% conventional loan, with no further cash invested, with no mortgage insurance required, and  with a lower monthly mortgage payment.

If you want to combine your first and your second home loans into a single loan, or if you just want to get rid of your mortgage insurance please call Scott Groves @ 818-679-5188 or apply online at www.LendLA.com

Sep 16, 2015

Closing A Condo in 21 Days – We Can Do That

Zambri studio city

The team just closed on this cool condo in Studio City.

We have said it before that the Movement Mortgage condo department is the best in the business and with this deal they proved it. The condo department checked on the financial health of the building.  Items that lenders are looking for include, but are not limited to, the following:

  1. What percentage of the condo is owner-occupied?
  2. Does the HOA have a reserve fund?
  3. Does the HOA add to the reserve fund on a monthly basis in order to cover planned maintenance projects and unforeseen issues?
  4. Is the building subject to additional add-ons or zoning issues?
  5. Is the building or the HOA involved in litigation?

Keep in mind that our condo department began this investigation as soon as our borrowers identified this condo as the one they were considering buying. Consequently, when an issue with the complex arose, our condo department had time to go directly to Fannie Mae and get an exception without upsetting our 21 day close of escrow. Most lenders will not look into a condo complex until they are into escrow causing delays with the close of escrow.

We were also lucky to have the amazing help of Christy Lindgren from Bond Real Estate as our buyers agent. She was there every step of the way to help with the clients. If you are looking to buy in Studio City, you need to call her at 323-646-2671.

As always, if you have any questions please call Scott Groves @ 818-679-5188 or apply online at www.LendLA.com

Sep 11, 2015

What do you need to know about TRID?

No need to watch this entire boring video from The National Association of Realtors (NAR) Government Affairs Office. Fast-forward to 3:15 to check out the sobering news. NAR, HUD and the Government Affairs office are encouraging Realtors to write escrow contracts with an additional 15 days baked into the timeline.

SEE 3:15 into this video for HORRIBLE news from NAR
Queue to 3:15.


Effectively, NAR and large institutional lenders are encouraging Realtors to push escrows out to at least a 45-day process.

Movement Mortgage and the Groves Lending Team are ready for these changes and will STILL be able to close escrow in 20-30 days even AFTER the implementation of TRID (which goes into effect October 3rd). Here is what you need to know:

  • WHAT is an “LE” and what is a “CD”
    What is commonly referred to as the GFE (Good Faith Estimate) is now being replaced with an LE (Loan Estimate). The HUD-1, which was traditionally prepared by escrow, will now be called a CD (Closing Disclosure) and will be prepared by the lender. An infinite number of LE’s can be issued and changed prior to the close of escrow. However, only ONE CD (closing disclosure) can be issued for any given loan number. Since this document is being prepared by the lender, it is IMPERATIVE that escrow and title provide accurate fees to the lender early in the process. No more waiting until the end of escrow to “balance” the HUD and get docs out. Fees, costs and pre-paid items need to be provided to the lender within the first 10 days of escrow in order to ensure your deal closes on time. Movement Mortgage has hired 20 new closers who have previous escrow experience and are being trained on our new TRID pre-closing process right now. This rockstar team of pre-closers and disclosure experts will ensure that the LE’s and CD’s are properly handled and that your deal closes on time.
  • Choose your escrow company wisely
    As listing agents, you control who gets selected as the escrow agent. Choose wisely. This new government mandated process will be a huge shift in how escrow officers do business. Work that has historically been done at the tail END of the process will now need to happen in the first 10 days of escrow. Additionally, the most important document of transaction (the HUD) that used to be completed by escrow with the input of the lender, will now be a document (the CD) that is completed by the lender with the input of the escrow officer. Having an escrow officer who is highly responsive to requests from Movement Mortgage and our disclosure department will be key to closing your deal on time.
  • Clients HAVE to lock rates early and move-on?
    Lenders will NOT prepare the final CD (closing disclosure) until a rate is locked. Once the CD is disclosed, nothing can change. If there is a rate or program change AFTER the CD is disclosed, the loan must be cancelled and an entirely new loan file has be created, disclosed and underwritten. Therefore, rate shopping clients will become their own worst enemy and will virtually guarantee that escrow does NOT close on time.  Buyers need to solidify their lender relationship prior to going into escrow and be mentally prepared to lock very early on in the transaction; no more shopping around and playing the market after escrow has opened.

As always if you have any questions, call Scott Groves @ 818-679-5188 or apply online at www.LendLA.com


Scott Groves     |     Your Trusted Lender

Groves Lending Team

A Los Angeles based lending team specializing in conventional and FHA purchase mortgages. The Groves Lending team can manage the entire loan process providing clients with efficiency and accuracy.

(7:00am-7:00pm / After hours)