Philip Tirone of The Mortgage Equity Group #70

Bruce Norris is joined once again by president of 7 Steps to a 720 Credit Score and The Mortgage Equity Group, Philip X. Tirone. Bruce and Philip discuss how detrimental it is to be surrounded by comps dominated by short sales or foreclosures, how using recent sales in the current market hurts prices, FHA loan seasoning and the difficulty investors face selling in the current California market, how each half percent of interest rate gives the loan more borrowing power, the Case Shiller and how the index does not reflect foreclosure numbers, how foreclosures won’t always dictate price, as is inventory versus clean inventory, appraisal rules coming up in January 2009, how banks will want to use their own valuation system which could cause more problems, automated valuation systems, how being labeled a declining state changes conventional financing, new labeling categories in hard hit areas that require 40% down, the attitudes lenders have towards inventory in rough shape, appraisal reviews becoming the norm, the time change for transactions, income levels of potential clients, examples of lenders undervaluing properties and dictating price lower than current offers, proposed fixes in the mortgage mess and if any will help, more questions coming in about what will happen if people walk away from their property, the time frame it takes to become a buyer again after a foreclosure, illegal aliens and home ownership, how lenders are being more careful in their due diligence on anyone trying to obtain a loan, new Fannie Mae limitations on investor loans, and 7stepsto720.com.

An expert in residential home financing, Philip X. Tirone is a powerhouse mortgage broker who contributes heavily to his firm’s billions of dollars in loan sales. Philip has a unique background in difficult-to-obtain loans, having spent years working with borrowers with subprime credit scores. Philip is masterful in finding loans for borrowers with bad credit, no credit, bankruptcy, and no stated income, but his specialty is in helping increase his clients’ credit scores so they qualify for the optimal loan programs that minimize their interest payments. In addition to authoring 7 Steps To a 720 Credit Score™, Philip’s workbook, Applying the 7 Steps to a 720 Credit Score, is one of Nightingale-Conant’s top sellers.

Philip’s commitment to educating homebuyers prompted the “7 Steps Licensing Program,” which allows mortgage brokers nationwide to become licensed in the 7 Steps and in turn help improve their clients’ credit scores. He is also developing the 7 Steps Foundation, a charitable foundation that will allocate funds to help low-income and underserved Americans increase their credit scores and buy homes.

Philip has been featured in articles on credit and mortgage trends in the Los Angeles Times, New York Times.com, Wall Street Journal, Newsday, Woman’s World Magazine, San Jose Mercury News, Bottom Line Magazine, Bankrate.com, and several others.

Philip created the Complete Financial Navigator™, a tool to analyze his borrowers’ needs and financial picture, thereby helping borrowers overcome barriers to achieving their real estate goals. As a frequent guest lecturer at the University of California Los Angeles, Philip has authored and delivered numerous speeches regarding the “Mortgage Lifestyle Dilemma,” a phrase he coined to describe an emotional buying decision that results in overextension and a life that revolves around high mortgage payments. By analyzing industry-specific buying trends, he has devised a series of questions to help borrowers avoid this dilemma.

Philip was named Arizona State University’s Man of the Year upon graduating with a real estate degree in 1994. Since then, he has continued to receive acclaim, most recently in the New York Times best-seller, Secrets of the Young & Successful.

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Philip Tirone of The Mortgage Equity Group #69

Bruce Norris is joined this week by president of 7 Steps to a 720 Credit Score and The Mortgage Equity Group, Philip Tirone. Bruce and Philip discuss when Philip first got in the lending business, what was required of borrowers in the late 90s, what types of loans were available, how 2004-2006 changed, the consumer and how they became investors, banks and their willingness to renegotiate, how debt was sold and collateralized, how subprime has spilled over to prime borrowers, how drastically the lending business changes in such a short time in today’s market, how the bankers and economists seem to be out of touch with the local market, how the market has changed for investors, the pillars of financing, how important provable income is to obtain loans, what ratio of income to loan amount is now acceptable, qualifying people on net income, how credit scores have become so important, how banks now want to see money in the bank, the percentage of people now being able to qualify for loans, stated income loans in the current market, portfolio loans in the current market, how different consumers are treated differently even with FHA, how popular FHA has become, types of inventory or projects lenders shy away from, condos and rules that might make it difficult to get a loan, the products banks are trying to push, the reality of price declines, the losses not finished for lenders, 7stepsto720.com.


An expert in residential home financing, Philip X. Tirone is a powerhouse mortgage broker who contributes heavily to his firm’s billions of dollars in loan sales. Philip has a unique background in difficult-to-obtain loans, having spent years working with borrowers with subprime credit scores. Philip is masterful in finding loans for borrowers with bad credit, no credit, bankruptcy, and no stated income, but his specialty is in helping increase his clients’ credit scores so they qualify for the optimal loan programs that minimize their interest payments. In addition to authoring 7 Steps To a 720 Credit Score™, Philip’s workbook, Applying the 7 Steps to a 720 Credit Score, is one of Nightingale-Conant’s top sellers.

Philip’s commitment to educating homebuyers prompted the “7 Steps Licensing Program,” which allows mortgage brokers nationwide to become licensed in the 7 Steps and in turn help improve their clients’ credit scores. He is also developing the 7 Steps Foundation, a charitable foundation that will allocate funds to help low-income and underserved Americans increase their credit scores and buy homes.

Philip has been featured in articles on credit and mortgage trends in the Los Angeles Times, New York Times.com, Wall Street Journal, Newsday, Woman’s World Magazine, San Jose Mercury News, Bottom Line Magazine, Bankrate.com, and several others.

Philip created the Complete Financial Navigator™, a tool to analyze his borrowers’ needs and financial picture, thereby helping borrowers overcome barriers to achieving their real estate goals. As a frequent guest lecturer at the University of California Los Angeles, Philip has authored and delivered numerous speeches regarding the “Mortgage Lifestyle Dilemma,” a phrase he coined to describe an emotional buying decision that results in overextension and a life that revolves around high mortgage payments. By analyzing industry-specific buying trends, he has devised a series of questions to help borrowers avoid this dilemma.

Philip was named Arizona State University’s Man of the Year upon graduating with a real estate degree in 1994. Since then, he has continued to receive acclaim, most recently in the New York Times best-seller, Secrets of the Young & Successful.

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Bill Gatten of North America Realty Services #68

Bruce Norris is once again joined by investor, creative real practitioner and educator, and author, Bill Gatten. Bruce and Bill discuss investors who are new to a downturn and how they are currently reacting, what Bruce thinks the market might look like in 2010-2011, non-inclusive options, difference between an Illinois land trust and the Pac Land Trust, options of selling in non-traditional fashions, creative financing and different issues, due on sale clause, how the Pac Trust avoids the due on sale clause, Garn- St Germain act and the rules, percentage the beneficiary needs to retain for tax and insurance reasons, insurance in the land trust transaction, what is negotiated in the land trust transaction, what sellers typically want when they call off an ad, taxes with a land trust, running “I buy houses” ad in the current market, who are the people who make up those phone calls, profit centers when using the land trust, Bill Gatten working with builders in the current market, helping builders that have no other options, lenders that don’t understand the Pac Trust, how Bill deals with lenders that tries to implement the due on sale clause, and finally, landtrust.net .

Bill Gatten is a one of the few true "in-the-trenches" creative financing teachers who actually practice what they preach. A highly successful real estate investor and much sought-after national speaker, Bill's most recent book (of many on the subject) is the very comprehensive, humorous and irreverent: "Making it BIG in Creative Real Estate and Keeping it...This Time," a 500 page compendium of all aspects of seller-carry, no-down, no-credit-needed, no-payment creative real estate financing, featuring the dynamic "Equity Holding Land Trust(tm) System" -- the PACTrust (tm) and NEHTrust(tm).

Educated at the California Polytechnic State University, San Luis Obispo, Bill's 45 years of work experience are in sales training, real estate investing and institutional banking (former co-owner and founder, Westlake Bancorp; and the former president and CEO of Gatten Financial Services, Inc. and Markay Equipment Leasing, Inc., Thousand Oaks, Ca.).

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Bill Gatten of North America Realty Services #67

Bruce Norris is joined this week by investor, creative real practitioner and educator, and author, Bill Gatten. Bruce and Bill discuss how long the concept of holding title in a trust been around, why it was created, the mid-70s and interest rates and problems with lenders, why we didn’t have huge price changes in 80s, creative financing, Garn- St Germain Depository Institutions Act in 1982, how it limited lenders on foreclosing, the living revocable trust, due on sale violations, the inter vivos trust, fee simple bundle of rights, the phase of acceptance for new ideas and where the living trust currently resides, how a living trust is structured, asset protection under the trust concept, the percentage of lawyers who understand the trust concept and how even fewer understand the land trust, the different Realtor groups that have made great use of the land trust in Southern California, creating options for the seller, if changing interest rates changes the strategy, problems with using a lease option, problems with contract for deeds, the steps in a transaction where using a land trust is appropriate, why it’s best for the seller not to remain in the property when using this transaction, the players in a trust transaction and who holds the power, the trustee, the settlor, the beneficiary, why a corporate trustee is important, and finally, landtrust.net.

Bill Gatten is a one of the few true "in-the-trenches" creative financing teachers who actually practice what they preach. A highly successful real estate investor and much sought-after national speaker, Bill's most recent book (of many on the subject) is the very comprehensive, humorous and irreverent: "Making it BIG in Creative Real Estate and Keeping it...This Time," a 500 page compendium of all aspects of seller-carry, no-down, no-credit-needed, no-payment creative real estate financing, featuring the dynamic "Equity Holding Land Trust(tm) System" -- the PACTrust (tm) and NEHTrust(tm).

Educated at the California Polytechnic State University, San Luis Obispo, Bill's 45 years of work experience are in sales training, real estate investing and institutional banking (former co-owner and founder, Westlake Bancorp; and the former president and CEO of Gatten Financial Services, Inc. and Markay Equipment Leasing, Inc., Thousand Oaks, Ca.).

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Pete Pannes of PMI Mortgage Insurance #66

Bruce Norris is joined this week by Senior Vice President, Field Sales and National Accounts of PMI Mortgage Insurance Co., Pete Pannes. Bruce and Pete discuss the basic business of PMI, when a borrower in a transaction pays for PMI, the range in cost, when PMI is required on a loan, if sellers can pay for the cost of PMI, competitors in mortgage insurance, what would happen if a mortgage insurer went out of business and its effect on the lenders, current stresses on mortgage insurers, how the industry is structured to handle issues in the market, how insurance changes the amount a consumer can borrow, if PMI is only for first trust deeds, if PMI has gotten more popular in recent years, if property value increases reduce insurance costs, at what point PMI is cancelled, what happens if prices go backwards, can PMI be reinstated if loan to value shifts, what price range of loans PMI covers, variances in PMI by state, if PMI can be used for purchases and refinances, how the market got away from paying PMI with 80% first and 20% second, if more traditional underwriting is taking place and if it includes PMI, how PMI was ignored because of run up of appreciation in previous years, reemergence of FHA and how it compares to PMI, how the consumer benefits from PMI, how lenders benefit from PMI, if PMI makes loan more liquid on Wall Street, how PMI assists bank if foreclosure takes place, what is covered in the policy and for how much, the borrower in foreclosure and recourse against borrowers in default, how do consumers prove they are in a 20% equity position, if late payments or rapid market declines can cause the bank to change its policies, do mortgage seconds or home equity line of credit change the PMI situation going forward, will PMI be required for longer amounts of time, pmigroup.com.

Pete Pannes is Senior Vice President, Field Sales and National Accounts, for PMI Mortgage Insurance Co., responsible for ensuring operational excellence with PMI customers nationwide.

Pannes has more than 18 years combined experience in the mortgage and mortgage insurance industry. He joined PMI in 1990 as an Account Representative and was promoted to Account Executive in 1992. He was a key part of the PMI management team that in 1994 formed CMG Mortgage Insurance Company (CMG MI), PMI's joint venture with CUNA Mutual serving the growing credit union market. Pannes held several positions at CMG MI from 1994 to 2001, when he joined CUNA Mutual as Senior Vice President and General Manager of CMG MI. In 2004 he rejoined PMI as Vice President of National Sales-Division Manager, responsible for the management of all field sales and select national accounts for the Eastern U.S.

Pannes holds a Bachelor of Science degree in Business Administration from Arizona State University.

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