The Jon Sanchez Show - Interview with Joe Melendez, CEO ValueInsured

The Jon Sanchez Show - Interview with Joe Melendez, CEO ValueInsured

This was an interview originally recorded on The Jon Sanchez Show - May 22, 2018 

Jon Sanchez:  All right. Let me tell you what we have lined up tonight. Got a great show lined up. We're, we're fascinated about having this guest on. His name is Joe Melendez. He's the CEO of a company called ValueInsured. If you want to look up more information before he joins us after the first break, ValueInsured.com. Now what his organization does is somewhat revolutionary. I am not aware of anybody else that does this. Maybe there's some other competitors out there, but as you will learn among many other things, but the primary reason we're having him on is, his company ValueInsured will insure your down payment.  Now, let me repeat that. His company will insure your down payment, so we all know of course, after the financial crisis, right? People said I had to short sell my house or foreclose on my house, got foreclosed on, etc. Cory, correct me if I'm wrong, as a real estate broker, you probably didn't get too many people saying "geez, you know, my house was worth X at the peak and I had a short sale" or you know lost it and it's then worth Y. They're saying, "hey, you know what? It's that down payment that I put into that house that's gone." That seems to be the part of it that hurts people the most from a psychological standpoint. 

Cory Edge:  Well I think so. And if you remember back to those days, that was one of those quirks, there were zero down loans. There were loans that not only were the zero down but you got money at closing. Yes. So nobody had skin in the game and so they felt that hurt a little bit but not enough. So now they're back to the down payment. Exactly. which is a perfect. And you know, we have a million questions for how you insure people's down payments. Yes. But if it works and if it's a good system, it makes sense because that is the pain that people feel. That's right because that's real money that they used.

Banking Exchange - Housing confidence drops

Banking Exchange - Housing confidence drops

A different picture of the housing market is presented by data from an April survey of just over 1,000 Americans. In contrast to more upbeat recent reports, including from Freddie Mac as reported here last week, the ValueInsured Housing Confidence Index for the second quarter dropped almost five points to its lowest level since the inception of the index in Q1 2016.

MPA: Most people expect a housing price correction by 2020

MPA: Most people expect a housing price correction by 2020

Potential homebuyers are less convinced that now is the right time to take a step onto the property ladder despite strongly believing in homeownership.

While 79% of non-homeowners say they still desire owning their own home, 67% say the market is currently unhealthy; and only 52% believe that owning a home is a “secure and smart investment”.

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Housing Confidence Bottoms Out

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Housing Confidence Bottoms Out

High home prices, unaffordability cause confidence in housing health to drop to lowest levels in nine quarters since inception of ValueInsured’s Modern Homebuyer Survey

The desire to own a home remains high, currently at 79 percent among non-homeowners, however; 67 percent believe the American housing market is unhealthy, according to the latest ValueInsured quarterly Modern Homebuyer Survey. In addition, the number of people who believe buying a home today is a secure and smart investment dropped to 52 percent. Despite reports of a strong sellers’ market, the decline in confidence is significant across the board among homeowners and non-homeowners alike.

NMN: 6 homebuyer attitudes about affording a down payment

NMN: 6 homebuyer attitudes about affording a down payment

View the complete slideshow at National Mortgage News

Despite consumer demand for housing remaining high, homebuyers' confidence in their ability to save enough for a down payment fell in the first quarter, with some feeling less positive than others.

Millennials in particular saw declining confidence toward down payment affordability, with only 35% of millennial first-time homebuyers claiming they can afford a down payment, according to ValueInsured, a Dallas-based down payment insurance company. This is down nine percentage points from a year ago.

PRMG Rolls Out Their New PRMG +Plus Down Payment Protection Program!

PRMG Rolls Out Their New PRMG +Plus Down Payment Protection Program!

Paramount Residential Mortgage Group, Inc (PRMG) rolls out their PRMG Plus Down Payment Protection program.  When it comes to putting borrowers first, PRMG has got you covered. 

Where title insurance, private mortgage insurance and homeowner’s insurance each make lending more secure for the lenders, only PRMG Plus covers borrowers regardless of what happens in the housing market.

“PRMG understands that buying a home can be a big step for any borrower and that it takes a long time for a borrower to accumulate the necessary down payment to buy a home.  As such, we are pleased to be able to offer PRMG +Plus to them. This is just one more way PRMG looks out for our borrowers, by providing them with the option to protect their initial down payment should they not be able to recoup it when they sell.  This option gives them peace of mind as they invest into their new home, knowing that their down payment is safe, regardless of what happens in the housing market”, said Lara Rausch, PRMG Vice President of Products and Training.

MarketWatch - How the rollback of Obama-era financial regulations could affect you

MarketWatch - How the rollback of Obama-era financial regulations could affect you

A new banking bill won’t just impact the big banks like Chase and Wells Fargo — if it becomes law, it will impact most Americans too.

The Senate approved a bill last week that will roll back some aspects of the Dodd-Frank banking reform bill, which was passed in 2010 after the financial crisis. It will make many small and midsize banks exempt from parts of Dodd-Frank. The bill was sponsored by Mike Crapo, a Republican senator from Idaho. It will now move to the House, where it could be amended further. 

Philly Mag - Survey: Millennials Aching to Buy, Homeowners Reluctant to Sell

Philly Mag - Survey: Millennials Aching to Buy, Homeowners Reluctant to Sell

While they worry about affording the down payment, a survey of homeowners and buyers finds Millennial first-timers more eager to buy a house. The homeowners they might buy from, however, aren't so sure they can themselves.

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