WHAT IS GALENTINE’S DAY?

No, this is not a typo. When I was doing research about Valentine’s Day, I came across Galentine’s Day. Unlike Valentine’s Day, which celebrates friendship, admiration and romantic love, Galentine’s Day, which is traditionally celebrated on February 13^th, is a celebration of women’s friendship.

Meanwhile, let’s return to the question who Valentine was. There are numerous legends connected with the holiday. However, it turns out that the true history might have a different origin.

The modern roots are attributed to the English poet Geoffrey Chaucer, who lived in the 14^th century and wrote a poem about birds choosing their mates on “Saint Valentines Day”. William Shakespeare has also been credited with popularizing the holiday’s romantic associations.

Valentine’s Day began to become popular in the XIX century with printing cards often with an image of Cupid. Later, in 1913, Hallmark Cards of Kansas City, Missouri began mass production of Valentine’s Day cards. In addition to cards, heart-shaped chocolate boxes, and romantic dinners, red roses became popular as a gift on this romantic day.

As my gift to you with an expression of my love, I give you three red roses, that are part of my next book, “Reflections. The Healing Images ™”, which is going to be available in March.

Care and Share!

NON-QM LOANS: SHOWCASES OF CUSTOM MORTGAGE SOLUTIONS

How to qualify and get mortgages through alternative sources?

This Wednesday, February 12, I decided to talk a little bit more about non-QM loans, providing you with examples of how I can assist my clients in qualifying for proprietary programs offered by mortgage banks, specifically in condominium-related transactions.

My brief video is available on YouTube: https://youtu.be/M–GXbjEdtA

Before you start watching, I want to remind you that a “non-QM loan” stands for a “non-qualified mortgage,” which is a loan given to borrowers who do not meet the standard criteria for a qualified mortgage (QM), meaning they may not be able to qualify based on traditional income verification methods like tax returns, allowing them to use alternative methods like bank statements or property cash flow to secure financing. Essentially, it’s a mortgage option for borrowers who don’t fit the typical guidelines for a conventional loan.

Non-QM programs usually have higher interest rates and offer qualifications based on alternative calculations of income.

For any questions, please don’t hesitate to call me: (415) 225-7920 

Stay tuned for our next online class scheduled for February 19.

Best wishes,

Manny Kagan,
President,
Pacific Bay Financial Corporation
Your professional mortgage broker since 1983

NMLS #205637
DRE #00874630

 

 

 

UNKINDNESS AND CONSPIRACY, RAVENS AND CROWS

You might be wondering what the words “unkindness” and “conspiracy” have in common. The answer may surprise you. This is what a group or flock of ravens is called. I learned online that historically ravens used to be a sign of bad luck or death. That could be an origin  of those “unkind” names. Additionally, a group of crows is called “a murder”. The reason is perhaps because they are scavengers and have often been found near battlefields, cemeteries and dead bodies.

Surprisingly, a group of crows are also called a horde, mob or parliament. One of the ways to distinguish between ravens and crows is by the size of their beaks, by the shape of their tails and by their voice. Regardless of what you might think or call these birds, they fascinate me.

Crows are very smart birds; they are considered to be among the most intelligent birds in the animal world. Scientists have found that crows might be as smart as a 7-years old human child.

The only reason I decided to write about these remarkable birds is because I like them.

The three images illustrating this story might attest to my statement.

Enjoy and Share!

HOW TO DEAL WITH
NON-WARRANTABLE CONDOMINIUMS?

Dear Real Estate Professionals, Future and Current Homeowners,

I am glad to present to you Class IV  of my new educational program, “Condos with Manny Kagan: Classes by a Mortgage Broker”.

My presentation on Non-Warrantable Condominiums is available on YouTube at this link.

Also, make sure you read the notes below and save them for your future reference!

CLASS IV  TAKEAWAYS

A condo is considered non-warrantable when:

1. The project is new construction and/or has yet to be completed.
2. The developer has not turned over control of the HOA to the owners.
3. A high percentage of units are occupied by non-owners.
4. The community allows short-term rentals.
5. A single person or entity owns more than 10% of the total number of units.
6. The building owner or developer is involved in litigation.
7. There are problems with HOA (lack of insurance) and maintenance

NON-QM programs offer alternative income calculations, often with higher interest rates. These programs address issues with condominiums and borrower qualifications.

In many cases, mortgage brokers who work with various mortgage banks can provide their solutions. These banks specialize in non-QM mortgages, sourcing funds from financial institutions, insurance companies, hedge funds, or specialty investors.

Becoming a professional mortgage broker requires years of experience, as it involves connecting complex details and finding suitable lenders.

With nearly 40 years of experience as a mortgage brokerage company, Pacific Bay Financial Corporation has established relationships with numerous mortgage banks. Our dedicated team maintains these relationships, ensuring access to a range of lending options.

To be continued next Wednesday, February 12, 2025

***

Need assistance? Call me: (415) 225-7920

Best wishes,

Manny Kagan,
President,
Pacific Bay Financial Corporation
Your professional mortgage broker since 1983

NMLS #205637
DRE #00874630

THE HAMMER AND THE NAIL

I have once heard a phrase, “The hammer is always looking for the nail”. There can be several meanings and explanations for what this phrase means. For me, the answer came at the age of fifteen when I started working as an apprentice for the tool and die maker. My superior had sixteen different hammers in his drawer. One of my duties was to learn how to use each of them.

Many things have changed since then. Today there are other ways to perform the work, and I do not think there is the knowledge of how to use all of these hammers because nor then or now do most people care about how the tools (hammers and nails) are used to do the job (unless they do it by themselves). Most of us do not think what these tools can do but rather focus on the results. I decided to share these thoughts with you after trying to reach my former clients and the real estate agents to see which mortgage solutions I can offer them to better their lives.

Regardless of how good I am, most people see me as a hammer; and my experience and a different way I can help as the nails. After all, people do not need mortgages proper; but rather, a means to acquire real estate or to consolidate debts or use equity to get money for different needs they might have.

During my life I have had many opportunities to use my hands to make a living and I have a lot of appreciation and respect for all workers who use various tools to make our life better.

These three images that I am posting today, are just a small part of my encounters with sometimes “invisible” people.

Enjoy and Share!

HOW TO GET A CONDO APPROVED?

Today is Wednesday, which means it’s time for my next class which is part of the course I’ve created in order to share with you some of the best practices of buying, selling and refinancing condominiums. Today, we are going to touch upon some intricacies one may face at the point of selling a condo.

Before a condominium can be sold and if a buyer requires a mortgage, the listing agent needs to get the disclosure package from HOA. This should include a Lender Questionnaire. If the project has balconies, it additionally needs to have a Building Assessment Report (see the document by clicking the highlighted link above).

If the report indicates any technical problems, they need to be fixed and a Certificate of Completion has to be issued. All of that obviously requires time during which condo can only be sold for cash.

For you to understand better what it takes to get a condo approval, I highly recommend watching a presentation by Suzie De Leon from Angel Oak Mortgage Solutions, recently recorded in our office. You can find the video on my YouTube Channel featured as part of my educational course, “Condos with Manny Kagan: Classes by a Mortgage Broker.”

To be continued next Wednesday, February 5, 2025

***

Need help? Call me: (415) 225-7920

Best wishes,

Manny Kagan,
President,
Pacific Bay Financial Corporation
Your professional mortgage broker since 1983

NMLS #205637
DRE #00874630

PLEASE HELP!

We all heard, read or saw images of the devastated fires in Los Angeles. But do you know someone personally who lost their home in the fires? Perhaps coincidentally, I happened to read online about well-known Hollywood actors who owned multi-million dollars homes in the Pacific Palisades. A week later, so many of those homes burned down; not only those belonging to wealthy celebrities.

On Friday, January 17^th, the Wall Street Journal asked the question, “What’s next for Los Angeles Luxury?” One of the fire victims, who “despite the immense personal loss, remains sanguine and philosophical. “It’s man against nature”, he said. “Nature doesn’t discriminate.” More than 12,000 structures have been destroyed. Among those, was the home and two rental properties that belonged to my client who became a personal friend. As we both share a passion about photography, we began to share our work with one another, and a friendship developed. And now all his photo equipment, along with everything they owned is gone.

Of course, he is not alone in this tragic circumstance; however, unlike some of the richer folks, his resources are very limited. Fortunately, one of his friends put together a short video, and his story was covered on the news. 

At the beginning of the year, I suggested 2025 to be the Year of Sharing.

Now we all have the opportunity. Please help the Pazminos. Thank you.

Care and Share!

LET’S LEARN MORE ABOUT
NON-WARRANTABLE CONDOS
AND NON-QM MORTGAGES

Dear Real Estate Professionals, Future and Current Homeowners,

Today, I continue taking you through my course, “Condos with Manny Kagan: Classes by a Mortgage Broker”.

Class III video is available at this link.

Also, be sure to read the notes below and save them for future reference.

Class III, Week 3:

NON-WARRANTABLE CONDOS AND NON-QM MORTGAGES

A condominium is considered non-warrantable if it meets any of the following criteria:

• The project is new construction or incomplete.
• The developer has not transferred control of the Homeowners Association (HOA) to the owners.
• A high percentage of units are occupied by non-owners.
• The community allows short-term rentals.
• A single entity or individual owns more than 10% of the total units.
• The building owner or developer is involved in ongoing litigation.

Non-Qualified Mortgage (Non-QM) programs offer alternative income calculations, often with higher interest rates. These programs can help borrowers overcome issues related to non-warrantable condos and income qualification.

In many cases, mortgage brokers play a crucial role in finding solutions for borrowers. They work with various mortgage banks specializing in Non-QM mortgages. These lenders source funds from financial institutions, insurance companies, hedge funds, or specialty investors.

Becoming a skilled mortgage broker requires years of experience and knowledge. It involves connecting the dots and finding the right lender to close the loan.

With nearly 40 years of experience as a mortgage brokerage company, Pacific Bay Financial Corporation has established strong relationships with multiple mortgage banks. Our dedicated team continuously nurtures these relationships to provide our clients with the best possible solutions.

To be continued next Wednesday, January 29, 2025

***

Need help? Call me: (415) 225-7920

Best wishes,

Manny Kagan,
President,
Pacific Bay Financial Corporation
Your professional mortgage broker since 1983

NMLS #205637
DRE #00874630

 

WHAT IS YOUR AGE?

On Monday, January 13^th , was my birthday. I was born in 1947. And when someone asks me, “How old are you?” my answer is sixty plus. The reason is that I do not feel old. My age is defined by what I would like to accomplish in this life.

One of my projects is to publish a book titled, “The Healing Images™. Reflections”. It will contain fifty-four beautiful images of roses, which will help viewers to get into a relaxed state, and the text that accompanies the images will be one sentence from each of 54 chapters in the Torah with my short comments.

The book is almost ready, I hope you will be able to benefit from it sometime in February. At the same time, I do not want you to wait. Starting next week, every Monday, I am going to post one page from the book on Facebook. Please add me as your friend on Facebook so you can benefit from the wonderful experience!

Meanwhile, enjoy these three flowers I’m sending your way.

Care and share with a friend!

CONDOMINIUMS:
TRANSACTIONS TECHNIQUES
AND MORE

Dear Real Estate Professionals, Future and Current Homeowners,

I am excited to continue taking you through my new course, “Condos with Manny Kagan: Classes by a Mortgage Broker”!

Class Two of the series is available at: https://youtu.be/Y2zKHy97BcI

Also, make sure you read the notes below and save them for your future reference!

CLASS II  (Week Two)

…Before moving forward, let’s take a look at who lends money for condos, i.e. where borrowers can get a mortgage. The major institutions, like Bank of America, Citibank, Wells Fargo and Chase are primarily interested in depositors. For those who keep their money in the bank, they might offer adjustable mortgages fixed for 3, 5, 7 or 10 years. These are portfolio loans which might have an interest rate lower than 30 years fixed loans, and are mostly Jumbo loans. To get them, there are two conditions – customers’ money in the bank and being able to qualify for the loan, which might be challenging.

Sometimes banks can offer Conforming loans as well, but these are sold to Fannie and Freddie and have rates similar to other lenders. In the past, banks like First Republic Bank, as well as Silicon Valley Bank, were able to bend the rules just to attract more customers. History has shown that those who did that, sooner or later got out of the business. Then there are medium size banks and credit unions. All of them follow internal guidelines. Sometimes one of them might offer loans where others could not. For example, some of them do not require an HOA certificate. Additionally, there are mortgage brokers who represent a variety of the specific wholesale lenders. Some of which, like Rocket Mortgage, are trying to drum up online business.

Mortgages are divided into two categories — QM (quality mortgages) and non-QM mortgages. Since the majority of the lenders sell their loans to Fannie Mae and Freddie Mac, their underwriting guidance for QM mortgages can be strict. The solution is offered by the mortgage banks who can offer financing for non-QM mortgages. The same lenders also offer mortgages for non-warrantable condos…

To be continued next Wednesday…

***

Need help? Call me: (415) 225-7920

Best wishes,

Manny Kagan,
President,
Pacific Bay Financial Corporation,
Your professional mortgage broker since 1983

NMLS #205637
DRE #00874630