NFM Lending employees worked on three different houses in Baltimore City. The volunteers painted and sanded along with cut and installed railings, floor boards, and more. We are very proud to be involved with such a terrific organization. We hope the families enjoy their homes!
When applying for a purchase loan or refinance, your credit score is of great importance. Credit scores tell lenders how well a person manages their existing credit, and are telltale signs of how reliable they are with paying off loans. Lenders also use credit scores to determine the interest rate they will charge a borrower. People with higher credit scores are typically offered more competitive rates than people with lower scores. If you happen to have blemishes in your credit history, there are a few ways to improve your credit score.
Check Your Credit Report
Before you get started, make sure to check your credit report to see where you currently stand. You should be checking your report once a year to make sure there aren’t any errors that could hurt your credit score. This service is free and you won’t be penalized for checking your own accounts. Make sure to get a report from each of the three major credit reporters—Equifax, Transunion, and Experian.
Report any errors that you find on the reports that could lower your score. This includes late payments that were made on time or amounts owed that are incorrect. Make sure that any negative items older than seven years (ten if you have claimed bankruptcy) have automatically fallen off your report. You can dispute any credit report issues you have by contacting the credit bureau and reporting agency.
Understanding Your Credit Score
Your credit score is a number between 300 and 850. The higher the number, the better your credit is. If your score is 760 or above, you have proved to have excellent credit management and will be eligible for the best interest rates. Scores below 760 could use a little work to get better rates. If your score is 620 or lower, you have some serious changes to make. Unless you have major blemishes such as a bankruptcy or foreclosure, there are a few easy ways to boost your credit score in as little as a few months.
If You Don’t Have Credit, Start Building it Now
In order to apply for most major loans, you need to have some established form of credit so that creditors can see that you are responsible. If you are unable to obtain a credit card, a secured card is a great way to start establishing credit.[one_half]Secured credit cards typically require a few hundred dollars up front as collateral and have minimal credit limits, but the limits are usually raised after a few months of responsible use.
A gas card is another great way to establish credit. Gas cards enable people to establish credit by carrying a small balance every month—just make sure to pay off the balance on time each month.
Be careful not to open a lot of new accounts at once when you’ve had a short credit history. Having one line of revolving credit and one installment loan is a good start.
Having an installment loan is a great way to establish credit. Installment loans are different than revolving loans (i.e. credit cards) in that you take out a lump sum of money and pay it back over time. Examples of installment loans are student loans, car loans, mortgages, personal loans etc. A small personal loan with a competitive interest rate can be easily obtained from a bank, credit union, or other financial institution.
Make Payments on Time
One of the easiest ways to raise and maintain a good credit score is to make your payments on time. This also applies to bills such as energy, cable, and phone bills. If an account in your name is delinquent and goes to a collection agency, it can stay on your report for seven years even after it’s paid.
If you have trouble making payments on time, there are a few methods that can help. Set up alerts and calendar reminders that your bills are due. You can even arrange to have e-mail alerts sent from your debtors. Setting up automated payments is a foolproof way to make on-time payments but you will only be charged the minimum amount owed on credit cards.
Pay Down Existing Debt
This one is a no-brainer: if you have a lot of debt, stop using your credit cards and pay down the amount you owe. Lenders often prefer to see a large gap between the credit limit available and the balance carried forward. A good rule of thumb is to keep your balance at 30% of your credit limit or below, even if you pay off your balance each month. If you can, having a balance of 10% of your credit limit is ideal.
Set up a personal payment plan for yourself. If you have multiple cards, try to focus on paying down the accounts with the higher interest rates first while paying the minimum payments on accounts with lower rates. This will save you a good amount of money in interest paid. Avoid the temptation to transfer or consolidate balances to a new account. Having too many open lines of credit and unnecessary accounts can lower your score.
Good Credit Practices
If you have an established credit history, don’t close accounts that haven’t been used. Breaking out an old card for dinner or a tank of gas once a month will keep the account active and raise your score. Just make sure to pay off the balance each month.
When you’re shopping for a new loan, try to do so within a two-week period. Having your credit history pulled multiple times can decrease your score, but if it’s in a cluster it will not be treated unfavorably. To prepare for a major purchase, don’t open any new accounts eight months prior.
Raising your credit score can take a lot of time, patience, and discipline. However, if you follow these simple guidelines you will soon notice a positive change in your credit and financial future.
In November 2012, NFM, Inc. embarked on its 5th annual Support Our Troops Drive. For the past five years, NFM, Inc. has been collecting items to send to our troops overseas via AnySoldier®. AnySoldier® is a program that helps people and organizations such as NFM, Inc. send care packages to soldiers overseas.
Last year, NFM, Inc. collected enough items to send 60 boxes. This year, our goal was to collect enough items to send 80 boxes.
We encouraged our employees to donate both items and money. With the money donated, items were purchased in bulk. Among the items included were socks, energy bars, duct tape, miniature clips & toiletries. We also made sure to include fun items such as NERF footballs, crossword puzzle books, and magazines so that the troops can enjoy what little downtime that they have.
At the completion of the donation drive, our HR team worked diligently to pack up all the items that were collected. We are thrilled to say not only did we meet our goal of 80, we SURPASSED it! NFM, Inc. is proud to be sending 93 care packages overseas to United States troops!
Thanks to everyone for their hard work in making this happen!
Throughout its course of existence, a loan takes on various forms of being: application, amortization, re-finance, maturity. It could stay in the lender’s portfolio for its duration or move into the exciting world of the secondary market. It may split off into two loans if the borrower decides to obtain a home equity line of credit (HELOC) or a second mortgage. A loan could even pay money to its borrower in the form of a reverse mortgage!
What exactly happens throughout the life (or lives) of a mortgage loan?
A loan comes to life when a borrower decides they want to purchase a piece of real estate and obtain a mortgage loan or they want to re-finance their current mortgage. A borrower may apply for pre-approval of a loan to help determine what they can afford.
Once someone finds a piece of property they wish to purchase, they may officially apply for a loan. Even though the borrower may have already applied for pre-approval, it is not a guarantee, so they must apply again. To apply, the borrower must submit the names, social security numbers, and the monthly income of all applicants, the subject property address, and the estimated value of the property being bought or refinanced. During the application process, the amount of the loan and the down payment are determined by the borrower. At this point, the lender determines if the individual is able to qualify for a loan amount.
A loan officer takes the borrower’s application and collects the items needed for review. Here is a list of items a borrower should be prepared to submit to their loan officer:
The loan processor puts all these items together, orders a title, helps schedule an appraiser to determine the value of the property, and then sends the application to underwriting.
In the underwriting process, the lender determines the degree of risk involved with lending the borrower money. Here are the “three C’s” that are evaluated in underwriting:
Credit: A credit report is obtained from each of the three credit bureaus—Equifax, Transunion, and Experion. These reports are analyzed to determine how well a borrower manages debt.
Capacity: Capacity is a borrower’s ability to make payments on the loan. The borrower’s employment and income is evaluated along with their current debt and assets (debt-to-income ratio).
Collateral: When looking at collateral, the lender evaluates the type of property, value of the property, and cost. To determine the value of a piece of property, an appraiser is sent to analyze various factors.
Once the underwriter grants approval, a clear to close is processed and the settlement date can be scheduled.
The closing on a loan is where all the necessary paperwork is presented and signed. At closing, the title of the property is transferred to the buyer, an escrow account is set up, the amortization schedule is issued, funds are obtained by the borrower, and the security interest of the lender has been recorded by the County or City Clerk.
Once a loan is closed, it splits onto two different paths: the lender’s path and the borrower’s path.
On the lending side, a mortgage loan can either remain in a lender’s portfolio or enter the secondary market. In the secondary market, loans are sold by lending institutions to private and public investors such as Fannie Mae and Freddie Mac to be sold as mortgage backed securities. The secondary market allows lenders to replenish cash reserves so that they can originate more mortgages to consumers.
From a borrower’s perspective, after closing the borrower then makes payments on the loan following an amortization schedule. By refinancing or taking out a Home Equity Loan or Line of Credit, the loan can be modified at a later date depending on the borrower’s future financial needs.
Interest rates are currently at historic lows in which people with existing mortgages may want to take advantage of. By refinancing, a borrower can reduce their monthly payments as well. Or a homeowner may also desire a large amount of cash for home or remodeling for safety reasons (only available if borrower is occupying the property). For these and other reasons, the option to refinance a mortgage is often available.
If someone is in need of a large sum of money, they may consider taking out a second mortgage on their home, otherwise known as a Home Equity Loan. This allows a homeowner to use the equity that they have established in their home to remodel, pay off other debts, pay for their children to go to college, or whatever else they choose to do with their equity. These loans typically have higher interest rates since they are a higher risk for the lender.
A Home Equity Line of Credit (HELOC) is also considered by homeowners that wish to take advantage of their equity. What makes a HELOC different from a traditional home equity loan is that the borrower does not receive the amount of equity up front, but instead has it as a line of credit in which the maximum amount that can be borrowed is their amount of equity. Unlike a traditional credit card line of credit, a borrower’s home is used as collateral.
A reverse mortgage is targeted towards senior citizens, 62 years of age or older, who wish to use their home equity to supplement their income. This type of mortgage is called a “reverse” mortgage because instead of making monthly payments to a lender, the lender makes payments to the homeowner. There are also no income or credit score requirements, although the homeowner is responsible for taxes, insurance, and maintenance of the home. In order to qualify for a reverse mortgage loan, the borrowers may not be delinquent on any federal debt, must live in the home, own the home outright or have a mortgage balance that can be paid off at closing with proceeds from the reverse mortgage loan. The loan does not have to be paid off until the borrower moves, sells the home, does not live in the home for twelve consecutive months, fails to pay property taxes or homeowners insurance, lets the home deteriorate beyond reasonable wear and tear, or the last surviving borrower passes away. Afterwards, the estate generally has six months to repay the balance or sell the home.
After making regular payments on a loan, the loan matures the date it is due to be paid off. If a loan is not paid off by its’ maturity date, it enters into default. Depending on the amortization schedule, there may or may not be a balance of principal due on this date.
In support of the Michael Phelps Foundation, NFM, Inc. recently sponsored and participated in the Michael Phelps Foundation 2012 Golf Classic held on September 22, 2012 in Atlantic City. The Michael Phelps Foundation is a non-profit organization founded by the record-setting Olympian, Michael Phelps. The foundation was created in 2008 to support advancement of the sport of swimming, and also to promote an active and healthy lifestyle, especially for children. NFM, Inc. is a proud supporter of the Michael Phelps Foundation, and sponsored the event with a $10,000 donation.
The Michael Phelps Golf Classic is the largest fundraising event that the Foundation hosts. The event included a day of golf and a post-event celebration, in addition to a celebrity poker tournament. NFM, Inc. President and CEO David Silverman was a participant in each of the events, and actually won the poker event while his father Sam (who had never played poker before) finished 3rd. Having participated in the event for the past three years, Mr. Silverman commented on NFM, Inc.’s dedication to the Michael Phelps Foundation:
“NFM, Inc. is fully committed to giving back to our community and is thrilled to be a sponsor of such a great event. Our company supports initiatives that promote an active, healthy lifestyle, especially for our children. The Golf Classic is a great way to promote and raise funds for this inspiring organization and NFM, Inc. was proud to be a part of it. We look forward to supporting the Michael Phelps Foundation for many years to come.”
NFM, Inc. is focused on community and building its philanthropic efforts. The NFM Cares program regularly works with and donates to organizations that place an emphasis on family and children, soldiers and veterans, and supporting a healthy lifestyle. As an organization that encourages personal empowerment through participation in health and fitness activities, the Michael Phelps Foundation fits perfectly into the NFM Cares framework. NFM, Inc. looks forward to participating with this inspiring organization and supporting future Olympic hopefuls for years to come.
Once again, NFM, Inc. is gearing up for its fifth annual “Support Our Troops Drive,” collecting donations for troops overseas via AnySoldier®. The drive will run for two weeks from November 5–November 19.This year’s drive is particularly exciting as the company is opening up donations to include the outside community as well.
AnySoldier® was started in 2003 by Sergeant Brian Horn as a program that helps people send care packages to soldiers overseas. Through their website, AnySoldier.com, you can select what troops you would like to send donations to, that includes any branch of the armed forces. A list of suggested donations is also provided. AnySoldier® is a great resource to donate through as they focus on finding troops who don’t usually receive many items or letters from home to send care packages to. The operating principle of AnySoldier® is that the boost in morale from outside support is often greater than the contents of the package itself.
NFM, Inc. is a company focused on building its philanthropic efforts, especially those that support our country’s overseas troops. A proud supporter of AnySoldier® since 2008, the company looks forward to opening up the “Support Our Troops” drive to the public this year. NFM, Inc. hopes to continue to support AnySoldier® and its packages’ recipients for many years to come.
As a long time supporter of the Ronald McDonald House Charities of Baltimore, NFM, Inc. has made a $10,000 donation to the organization as a sponsor of its 30th Anniversary Celebration Gala. NFM, Inc. is an advocate for family togetherness and has enjoyed its growing relationship with the Ronald McDonald House. In the past, NFM, Inc. has helped the Ronald McDonald House by organizing fundraisers, sponsor events, and has a donation program set up within its corporate offices.
The Ronald McDonald House is a non-profit organization that provides a place for seriously ill children and their families to stay, at little or no cost, when a child requires medical care away from home. This helps families to obtain the best medical care possible for their children, regardless of how far away it may be. The Ronald McDonald House Charities of Baltimore is located in the center of the many renowned medical facilities located in Baltimore City, and also provides a shuttle service for its visitors. In addition to the great work that they do, Ronald McDonald House also helps to fund local programs that focus on children’s wellness.
With the emphasis on family values that Ronald McDonald House is founded upon, it was obvious to NFM, Inc. CEO and founder, David Silverman, that NFM, Inc. would be a long-time contributor to this organization:
“NFM, Inc. is thrilled to be a sponsor of the Ronald McDonald House Charities of Baltimore 30th Anniversary Celebration Gala. Over the years of working with this inspiring organization, we have been touched by the many children and families we have had the good fortune of working with. As a company, we are very committed to giving back to the community, especially families who need our love and support in the face of illness. We look forward to supporting those that come to the Ronald McDonald House for many more years to come.”
NFM, Inc. is anticipating a night of joyful celebration at the Ronald McDonald House Charities of Baltimore 30th Anniversary Celebration Gala and is looking forward to many more years of helping to support their inspirational children and their families.
Always an advocate for our country’s veterans and soldiers, NFM, Inc. recently participated in supporting Habitat for Humanity of Maryland’s newest initiative, Homes and Hope for Heroes. On July 18, 2012 Susan Devlin, Executive Director of Habitat for Humanity of Maryland, was presented with a check in the amount of $12,800.00 at our corporate office location in Linthicum, Maryland.
Homes and Hope for Heroes is a new program developed by Habitat for Humanity of Maryland based on Habitat for Humanity International’s Veteran’s Initiative. The Veteran’s Initiative focuses on affordable housing and home preservation, volunteer mobilization, employment, education, and celebration of United States veterans. Through these five areas of focus, Homes and Hope for Heroes is developing a program of sustainable housing solutions for Maryland veterans.
Aware of our continuing work with Any Soldier, Inc., Habitat for Humanity of Massachusetts, and our recent green office initiative, Habitat for Humanity of Maryland contacted NFM, Inc. with a proposal for this initiative. Excited to be part of a program that combines a variety of NFM, Inc.’s passions, David Silverman, President and CEO of NFM, Inc. was eager to make a donation:
“NFM, Inc. is delighted to become a partner with the Habitat for Humanity of Maryland’s Homes and Hope for Heroes Program. As a company, NFM, Inc. is dedicated to giving back to our community. Habitat for Humanity of Maryland and the Homes and Hope for Heroes program not only allows for us to help build homes for individuals in our community but it also allows us to show our gratitude to our veterans and their families. They sacrifice their lives for our freedom and safety—it’s the least we can do to honor their service. I personally would like to thank Habitat for Humanity of Maryland for allowing NFM, Inc. to become a partner in their new Homes and Hope for Heroes program; we are excited to get involved with such a great organization.”
NFM, Inc. is looking forward to many more opportunities to participate with Homes and Hope for Heroes as they continue to grow.
On Monday, August 27, 2012 four employees from NFM, Inc.’s corporate office ventured to Towson, Maryland to participate in the National Council on Alcoholism and Drug Dependence of Maryland’s (NCADD-MD) Recovery Classic Golf Tournament. Jan Ozga, Chief Operating Officer, Amy Fitcher, Loan Officer, Jeff Corsiatto, Loan Officer, and Chuck Miller, Loan Officer participated in the event on the behalf of NFM, Inc. In addition to competing in the golfing events, NFM, Inc. was also a silver sponsor of the event. NFM, Inc. is a proud supporter of NCADD-MD and its mission to raise awareness of addiction and recovery issues.
The event was held at the Country Club of Maryland in Towson and featured various events and prizes throughout the day. For NFM, Inc., the day was highlighted by teammate Amy Fichter winning the Lady’s Long Drive event—on the hole that NFM, Inc. sponsored! Jan Ozga, COO of NFM, Inc., organized NFM, Inc.’s involvement with the NCADD-MD’s Recovery Classic and is looking forward to continued involvement with NCADD-MD:
“This was a great opportunity to support a great cause and to show how committed NFM, Inc. is to community involvement. Not only does it help to raise awareness about drug and alcohol dependence through NCADD-MD, our participation raises awareness within our own company as well.”
David Silverman, President and CEO of NFM, Inc. commented, “NFM, Inc. is very committed to supporting issues regarding addiction and recovery, especially within our communities. In addition, NFM, Inc. offers an employee assistance program that allows individuals who are dealing with stress, depression, addiction, or any other issue they are encountering, to talk to someone outside of the company confidentially.” NFM, Inc. recognizes the fact that addiction is a disease, not a stigma, moral failing, or lifestyle choice. NCADD-Maryland board chair, David Nelson, said: “We are most grateful to NFM, Inc. for their sponsorship of our event. We appreciate their support for our work and hope that their enlightened approach to addressing alcohol and drug-related issues within their employee ranks will serve as a model for other companies to follow.”
The NCADD-MD Recovery Classic was a great day of golf for all that participated, and NFM, Inc. looks forward to more opportunities to support this inspiring organization.
NFM, Inc. is proud to announce LaTasha Rowe has recently been promoted to the position of General Counsel. Along with her promotion, she is also the newest addition to NFM’s executive team. Ms. Rowe has been working at NFM since 2010 as Associate General Counsel and Compliance Manager and brings with her eleven years of experience in the mortgage industry.
Ms. Rowe earned her J.D. law degree from University of Baltimore, School of Law in 2001. She was initially inspired to pursue a law career after witnessing her father’s legal battle over being fired due to a refusal to pay worker’s comp after a near-fatal accident on the job. Initially intending on becoming an employment lawyer, Ms. Rowe found herself drawn towards real estate law instead. After obtaining her degree, she went into private practice with a focus on commercial real estate and lending before being drawn to her initial position with NFM Inc. in 2010.
NFM, Inc. is looking forward to see what Ms. Rowe has in store for the future. Newly appointed, she speaks of two goals she would like to achieve so far as General Counsel:
“The first goal is going to be establishing a fair-lending policy. Second, we will be working with operations on streamlining the process in operations and building a more collaborative work environment between compliance and sales. The Consumer Financial Protection Bureau (CFPB) is our newest regulator. With that, it will involve a lot of restructuring of the department in order to respond to a possible examination. There’s a lot of movement, a lot of things happening, but I am up to the challenge and thrilled about the opportunity to continue driving NFM forward.”
NFM Inc. is thrilled to have such a clearly passionate and enthusiastic member of its executive team. LaTasha Rowe’s experience and wisdom is sure to help drive NFM, Inc. into continued success.