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Microsoft PowerPoint - CCMS Residential Construction 92704

VIEWS: 6 PAGES: 19

									 Consumer’s Choice
Mortgage Services, Inc.
               Richard J. Racine
             Senior Vice President
    Consumer’s Choice Mortgage Services, Inc.
                150 River Road
              Montville, NJ 07045

           Cell Phone: (973) 715-5221
          Office Phone: (973) 387-0313
               Fax: (800) 255-0533

       Email: rjracine@sstmanagement.com




2
                                                Consumer’s Choice Mortgage Services, Inc.
 Consumer’s Choice Mortgage Services, Inc.


Residential Construction Lending Capabilities




                September, 2004
Table of Contents


    Residential Development Lot Loan Programs

    Residential Construction Loan Programs

    Construction Lending Process

    Appendices




4
                                                Consumer’s Choice Mortgage Services, Inc.
Residential Development Lot Loan Programs


    Balloon loan that allows 2 to 5 years to design home and plan construction
     •   Short-term financing for the purchase of an eligible residential lot
     •   Fixed rate, amortized over 30 years (30 due in two years)
     •   Adjustable rate, amortized over 30 years (30 due in five years)
     •   No prepayment penalty on the adjustable product when converting to Globe construction loan
     •   Closing routinely 3 weeks from time of completed application



    Key underwriting parameters
     •   Maximum loan amount of $500,000
     •   Maximum loan to value of 80%
     •   Minimum borrower credit score of 680
     •   Minimum PITI reserve requirement of 6 months




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                                                         Consumer’s Choice Mortgage Services, Inc.
Residential Dev. Lot Loan Programs (Cont’d)


    Lot eligibility requirements
     •   Lot size must conform to general area and be residential in nature
     •   Improvements are required and include accessible street with sewer and electrical available
     •   Hillside lots are generally ineligible
     •   Lot listing should not exceed one year from time of original listing




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                                                           Consumer’s Choice Mortgage Services, Inc.
Residential Construction Loans


    Consumer residential construction loans
     •   Maximum loans to $3.0 million
     •   Ground up construction or remodel of existing home
     •   No ratio, No documentation, reduced documentation available
     •   Fixed rate during construction of 6, 9, or 12 month periods
     •   At completion of construction, permanent financing guaranteed at no additional closing cost
     •   Borrower may pay down principal at roll to permanent
     •   Very competitive long-term financing rates at roll to permanent


    Key underwriting parameters for construction loans
     •   Loan to cost of 80% (includes lot, construction costs, contingency reserve and interest reserve)
     •   Loan to value (at completion) of 70%
     •   Minimum FICO score 680



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                                                            Consumer’s Choice Mortgage Services, Inc.
Residential Construction Loans (Cont’d)


    Construction to Permanent Loans
     •   30 year fixed
     •   15 year fixed
     •   5/1 US Treasury Adjustable Rate Mortgage
     •   1/1 US Treasury Adjustable Rate Mortgage


    Closing routinely within 3 weeks of completed application




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                                                    Consumer’s Choice Mortgage Services, Inc.
Construction Lending Process


    Submission of key documentation
     •   Borrower credit documentation
     •   Building plans, specifications & permits
     •   Builder credentials

    Order appraisal

    Prepare draw schedule

    Underwrite completed loan file

    Close upon completion of title work and other ancillary requirements




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                                                    Consumer’s Choice Mortgage Services, Inc.
Appendix 1: Biography of Richard Racine
Biography of Richard J. Racine


Since completing his MBA at the Stanford Business School in 1990, Mr. Racine has held positions with
several of Wall Street’s premier financial institutions. He has been involved in debt and equity financings
that have raised more than $1.0 billion. He began his career in real estate finance with Goldman, Sachs &
Co. His experience has included financing the development of a mixed-use high-rise in midtown
Manhattan, a public equity offering for a real estate investment trust focused on multifamily residential
real estate, and principal transactions involving residential loan portfolios and single-family
developments. As an investment banker at Merrill Lynch & Co., he was involved in various debt, equity
and M&A transactions with a focus on healthcare properties in skilled nursing and hospital management.
He was also a General Partner of Nazem and Company, a venture capital and investment management
company. Mr. Racine has had extensive experience in the valuation and financing of real estate and
corporate entities.

Mr. Racine is a distinguished graduate of the United States Naval Academy. He was formerly a
commissioned officer in the United States Marine Corps and flew the A-6 Intruder aircraft from USS
Ranger (CV-61).




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                                                             Consumer’s Choice Mortgage Services, Inc.
Appendix 2: Historical Interest Rate Charts
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                                                                                                                                One Year US Treasury Yield




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                                                                                                                                FHLMC 30 Year Fixed Rate Mortgage




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Consumer’s Choice Mortgage Services, Inc.
Appendix 3: New Jersey Housing Price Index
New Jersey OFHEO Housing Price Index


400.0                                                                                                                           30.00%

350.0                                                                                                                           25.00%

300.0                                                                                                                           20.00%

250.0                                                                                                                           15.00%

200.0                                                                                                                           10.00%

150.0                                                                                                                           5.00%

100.0                                                                                                                           0.00%

 50.0                                                                                                                           -5.00%

     0.0                                                                                                                        -10.00%
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                                                                 Index        Pct.Chg.

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                                                                                   Consumer’s Choice Mortgage Services, Inc.
 Consumer’s Choice
Mortgage Services, Inc.

								
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