The Mortgage Bankers Association (MBA) is a national organization that represents and advocates for members of the real estate finance community.  They are headquarters in Washington D.C. and advocate for fair lending practices and professional excellence as well as serve at the voice of the real estate finance industry voice on legislation and regulation in Congress.  They are made up of 2,400 member companies from various sectors of the real estate industry.  The MPA maintains a political action committee – MOAPAC and a grassroots lobbying organization – Mortgage Action Alliance.  Their current legislative priority is the implementation of the Dodd-Frank act to revamp industry regulation and to revive real estate markets for qualified borrowers.  Lastly, the MBA maintains a Future Leaders Program that trains 300 professionals in leadership and business analysis.

The MBA has a 21-person Board of Directors that house two governing bodies that represent commercial and residential real estate interests separately.  These governing bodies are made up of committees, eight for residential and four for commercial.  Senior management is divided into eight groups, each headed by a senior vice president.  Each of these groups a different facet of the organization including Finance, Public Policy and Industry Relations, Legislative and Political Affairs and Research and Education.

MBA members enjoy several perks including substantial discounts for using key businesses services such as Office Deport supplies, FedEx shipping, Allied Van Lines moving company and Hertz rental cars through the Membership Advantage Program.  Regular members have access to networking events and conferences to improve company profile.  The MBA also maintains real-world and online training programs and classes to familiarize and educate members with key issues and regulations affecting the real estate finance industry.  The MBA also conducts market research which they provide exclusively to their members.

There are three categories of membership:

• Regular – for businesses that work actively with mortgage loans, mortgage insurance and other facets of the real estate finance industry.  This membership is typically for the purposes of networking and industry contacts,
• Associate – for businesses and firms that provide services to the industry.  There are three levels of membership and associate members receive preferential access to regular members of the MBA for networking and recruiting potential clients.
• International – these are businesses that meet the criteria for regular members but are located outside of the US.  The MBA acts as an intermediate for these businesses and the American real estate finance market.  The receive access to the MBA education tools and MBA conventions and conferences.

Source: https://www.mbaa.org/AboutMBA, https://www.mbaa.org/Membership

In common law, a lien is a form of security interest which is granted to cover a particular item of real property. A lien is used to secure the loan requirements outlined in a debt contract; the lien acts as a source of collateral to secure the payment of debt or performance of some obligation. 

Liens are legal claims that effectively place a “hold” on some form of property. When a lien is placed on real or personal property it creates collateral against any services or financial requirements owed through a debt obligation to another entity or person. Liens are usually present in the following situations: second mortgages and money loaned against a substantial item such as a vehicle. 

The presence of a lien will impede the borrower from selling or transferring the property which carries the lien. Any form of property that carries a lien can be forced into sale by the lender, for the sake of fulfillment of the underlying loan obligation. If the borrower chooses to sell the property, the holder of the lien must be paid before the title is transferred to the buyer.

When an individual needs to obtain additional funds, he/she may consider obtaining a home equity loan or a second mortgage. However, many people confuse these two financial options and do not have the information necessary to effectively analyze the second mortgage vs. home equity loan consideration. When an individual is considering a second mortgage vs. home equity loan, he/she must be familiar with some fundamental information about each, as they are both suitable for different situations. 

 

 

Though both of these financial opportunities provide  individuals with access to necessary monetary reserves, they both function differently. Understanding some basic notes about each is essential for an individual to make an informed, suitable decision regarding which option is appropriate. 

  

 

When considering a second mortgage vs. home equity loan, it is important for an individual to understand that these two financial alternatives provide people with different types of financial security. When an individual obtains a second mortgage, he/she is provided with a specified amount of money, which he/she is required to pay following a detailed schedule. Usually, he/she must make monthly payments for a period of thirty years, though the exact specifications will vary. An individual will also be charged a fixed interest rate. 

 

 

A home equity loan functions more similarly to credit cards, as an individual is provided with a calculated loan. He/she is able to borrow from this loan when necessary. He/she must make monthly payments toward the amount that he/she has used; however, as long as there is a balance remaining on the loan, he/she can use that money. 

 

 

Therefore, if an individual is granted a home equity loan of $50,000, spend $40,000, and subsequently pays the lender $40,000, he/she will still have $50,000 available on his/her loan. A home equity loan is suitable when an individual is going to need excess funds over an extended period of time, while a second mortgage makes more sense if an individual is making one large payment, such as an essential home repair. 

 

 

A mortgage is essentially a loan that is secured by the owner of a residence. The mortgage loan will entail the owner of the property to put the rights to the home or residence as collateral for the loan. 

Mortgages, even though they exist in various forms, will usually refer a loan that is secured by real estate property, and thus, usually refers to a home mortgage. All mortgages will have some sort of interest rate that will usually decrease over a period of time, usually thirty years. The interest rates that coincide with mortgages will typically reflect the owner or borrower’s risk to the lender.

Mortgages are typically used to finance the ownership of a home, and in some cases, commercial property. Though there are various types of mortgages that exist, there certain factors of a mortgage that will usually be included in all, regardless of the type or circumstance of the mortgage. 

There will be a borrower and a lender, with the borrower being the person that owns the property or residence, and the lender being a bank, financial institution, or investors. Principal is the size of the loan, which will reduce as the payments are made.

 The interest, which will vary depending on the structure of the loan, is the amount of money the lender will impose for the loan that is being secured. Under certain circumstances, foreclosure or repossession of the property can occur, usually when the home mortgage payments are not met, or the general conditions of the loan itself are not met.

A self-certified mortgage is type of home mortgage loan that is usually secured by those that are either self-employed or their income comes from various sources. 

 

 

Typically speaking, self-certified mortgages are usually used for small businesses and self-employed people, though individuals that make a living based on commission or simply cannot provide the necessary documentation that the lenders will usually require, typically three years' worth of income evidence.

 

 

Self-certified mortgages are a relatively new form of mortgage loans, only being established within the past ten years or so. One of the main differences regarding self-certification mortgages is that the borrower will declare how much money or income is being made in order for the lender levy a certain loan amount. 

 

 

Other types of loans will use annual income documentation, but a self-certified mortgage will use other sources to in order to provide for evidence of such income. This will usually consist of providing extensive records regarding banking activity and transactions.

 

 

Another factor regarding self-certified mortgages to consider is the fact that these types of loans will usually carry much higher interest rates. Furthermore, borrowers using a self-certified mortgage may also be required to have to provide for a fairly large down payment, usually more than 70% of the value of the home or property. 

 

 

The reasons for this is due to the lender’s risk involved in providing for such a loan, and thus, in order ensure proper repayment, such considerations must be taken by financial institutions.

Mortgage refinancing simply refers to a borrower currently having a mortgage loan paying off the existing loan and then replacing it with a new mortgage loan. 

The main reason that this is done is simply to lower the monthly payments regarding mortgage, though can often times be done for the purpose of obtaining loans for other reasons, such as investments and business ventures. Many people consider mortgage refinancing simply to obtain better terms in the loan.

However, mortgage refinancing may not be the best option for many, particularly when it comes to change the parameters of a loan. Many will consider mortgage refinancing to lower the interest rates of a loan, which can often times be done by switching to a different type of mortgage, such as an adjustable rate loan as opposed to a fixed rate loan. 

Mortgage refinancing may often be an option for those seeking to build equity at a faster rate. This can be done when determining the structure of the loan. For example, making payments on a 15-year mortgage will entail higher monthly payments, though there will be less interest paid, and more of the principal balance will be lowered through these payments. This helps develop and build equity for the property in question.

Mortgage refinancing can prove to be a confusing undertaking, particularly when other options may exist that will accomplish or resolve the reason as to why one would consider mortgage refinancing in the first place. 

It is important to consult a person’s mortgage broker or do the necessary research to be made aware of all the possible options that exist in order to make the more appropriate and best choice.

When seeking to purchase a new home or in becoming a first time home owner, chances are that a home mortgage loan will be necessary in order to purchase a new residence. 

 

 

When in come to finding a home mortgage, there various options available that, at first, may seem like a daunting task. However, to compare mortgages is necessary in order to obtain a loan that best satisfies the borrower. Therefore, to compare mortgages should be among the first steps when seeking to buy a home.

 

 

The world of home mortgages can prove to be confusing, because aside from having to compare mortgage rates, the different types of mortgages available, and the terms for each type will differ depending on a person's financial situations. However, one the best ways to start to compare mortgages is to visit the local banks in the area. 

 

 

Many will choose to go the bank they are currently affiliated, due to having an established relationship. However, sometimes banks may not provide with the necessary provisions that are wanted in a home mortgage.

 

 

Another option would be to visit and consult a mortgage broker. A mortgage broker will have typically encountered just about every kind of situation there is, and therefore, will probably have the necessary experience to compare mortgages and find the best one for a particular circumstance. A mortgage broker will have the wherewithal to know what financial institutions will provide for the best terms of a mortgage that a borrower is seeking.