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The Alaskan Originator
The Voice of the Alaska Association of Mortgage Brokers

The Alaskan Originator
The Voice of the Alaska Association of Mortgage Brokers

Respa, HVCC, YSP are hot topics for Loan Originators.

Many ideas on these subjects are comming out of Washington D.C. Your organization is working in conjunction with NAMB to keep membership advised and current on these important issues. We are also working with our Congressional delegation to have our voice heard and use our working knowledge to implement workable solutions. Stay tuned!

The Voice of the Alaska Association of Mortgage Brokers

Mortgage Brokers Are Good For the Housing Industry

Founded in 2000, the organization was put together by several mortgage brokers in the Anchorage area to begin addressing the institution of licensing requirements for mortgage lending for the state of Alaska. At its earliest meetings the main topic of concern has been the continuing National Legislative meetings that address Predatory Lending, licensing, and HUD rulings regarding Truth in Lending. Currently the AK Association is organizing a mass effort to gain membership. This effort is focused on educating realtors, brokers and originators in the role Mortgage Brokers play in the lending industry and the benefits of membership in the Alaska Mortgage Brokers Association and the National Association of Mortgage Brokers.

As an industry, there are no college degrees that specifically address mortgage lending. Finance and Banking are certainly available, but you would be surprised at the number of mortgage professionals who have come into this industry simply by accident. The AKMBA has formed committees to address education, legislation and licensing for the betterment of the lending industry in Alaska. As quoted by Vern Rush a member of the Legislative Committee of the AKMBA, “Being a part of NAMB and AKMBA sets me apart as a loan officer who has continuing education and licensing requirements.”

Mortgage Brokers originate many of the mortgage loans funded nationally. There are many reasons why a large percentage of loans today are originated through mortgage brokers. They know which mortgage lenders have the lowest rates and which have the most relaxed underwriting standards. In general, mortgage brokers can do a better job of searching around for a mortgage than their customers who do not have enough time or experience to research the matter properly.

Designing a Budget around Your Take-Home Income

by Lyle Evans

Have you ever found yourself wondering where all the money has gone and it’s not the end of the month? There are things we can do to help ourselves eliminate being in this situation. Listed below are the steps you may follow, along with a brief discussion of each:

1. Determine monthly take-home income
2. Understand all bills and expenses
3. Tracking expenses
4. Building up savings and retirement
5. Spend less then you make

Determine Monthly Take-Home Income
Whether you are a single individual or a family, you need to determine how much money is being made each month. Once this is determined the family or individual knows how much money there is to work with. If we find ourselves spending more than we make, then some decisions need to be made.

There are basically three options: get another job to subsidize your income, get more education or training to get a better paying job, or decrease your spending. Each option should be considered carefully by the individual or family.

Understand Bills and Expenses
Account for your bills and the money you spend during your daily activities. This can be done by saving copies of your paid bills and recording your daily expenses in a small notebook. Once or twice a month take inventory of your expenses. Daily expenses would include all money paid out of pocket except your monthly bills.

Tracking Your Expenses
We have created a budget using the computer to track our finances. A good spreadsheet or financial software will help track your expenditures. We create categories in our budget that allow us to micro-manage our expenditures.
A brief example will help in better demonstrating this point. We have categories like food, insurance, auto, fuel, clothing, savings, children’s expenses, etc. You can come up with whatever categories fit your needs.

After you have determined what your monthly take-home income is, you need to divide it up between your categories. The total amount placed in all the categories needs to equal your take-home income. The key to making the tracking effective is to enter your expenses regularly and stay within the amount allotted in each category.

If your track your expenses effectively, in just a few months' time you will find areas where you might be able to make changes and save money. We have noticed how much money we spend on frivolous stuff. Following a budget and tracking expenses takes inner commitment to be effective.

Savings Account and Retirement
A big part of any budget should be setting aside money into a savings account. Money in a savings account provides a little cushion in case of an emergency, loss of employment, or disaster. The amount that should be set aside in a savings account will vary depending on your circumstances.

The important thing is that you start. Over time your savings account will grow larger and accrue interest. As your employment circumstances improve, you may want to increase the amount you are putting into savings.

Just a side note about saving for retirement. If your employer has a 401K program, it would be beneficial to look into the program. Many employers have a matching program where they will match a certain percentage of what you contribute.

If your employment does not have a retirement savings plan, then you may want to look at budgeting money for your own long-term savings plan. This plan could be investing in the stock market or an individual IRA. You may want to seek advice from a financial expert.

Spend Less Than You Make
This has been a age-old problem. People in general have a tendency to spend more than they make. It takes strength and inner commitment to live within one's means and save for a rainy day.

A simple rule of thumb is to spend less then you make and save as much as you can. This practice does not have to be done overnight, but steady improvements will yield great financial dividends.

Setting up your budget takes time and effort, but can be very rewarding. Getting in control of your financial future can be done with the help of a budget and some personal discipline on your part. Good luck in your budgeting endeavors.

10 Ways To Save $50 Per Month
by Kimberly A. Griffiths

1. Save up to 50% per month on convenience cleaner cloths by cutting them into half, i.e. dryer softener cloths, face cleanser cloths, etc.
Savings: $5 per month

2. Find more thoughtful gifts and buy when the item is on sale, shop for birthdays and holidays throughout the year not at the time of the events.
Savings: $10 per month

3. Bring your lunch to work once a week instead of eating out.
Savings: $7 x 4 weeks = $28 per month

4. Don’t go to the coffee shop on the weekends.
Savings: 2 visits @ $2 = $4 per week x 4 weeks = $16 per month

5. If you carry a balance on your credit card, and you’re only able to afford paying the minimum monthly amount, pay weekly installments instead of one monthly payment. For example, if you owe $100 per month, pay $25 per week. Because credit card companies accrue interest daily on your balance, paying only once a month is a huge detriment to your fiscal health.
Savings: $10 - $100 per month (or more!)

6. Instead of a family night out, consider having an old fashion picnic together or a bike ride. Curbing entertainment costs doesn’t mean curbing the fun.
Savings: $25+ per month

7. Spend a day cooking meals that can be frozen for later use for your family. Once a Month Cooking, a book by Mary Beth Lagerborg and Mimi Wilson, features grocery lists and recipes to prepare and freeze a month’s worth of food for you and your family. Not only are you able to purchase the food in bulk, this method prevents having to throw away any spoiled food.
Savings: $50+ per month

8. If you are a regular monthly book buyer, stop the habit and visit your library instead! If you insist on buying books, buy it used at your local store or online at merchants such as www.half.com or www.amazon.com . Even a better idea, how about selling the books you have that you don’t need!
Savings: $5 - 15 per month

9. Use less expensive gasoline. If you live in North America and have Internet access, you are able to search for the cheapest gas price in your neighborhood with Gas Buddy, www.gasbuddy.com
Savings: $5 - 15 per month

10. Use two-for-one coupons when dining out; search for these in local newspapers, flyers, and in your “junk mail.” If you are a group of four or more people, consider buying dining certificates at Restaurant.com, www.restaurant.com . After choosing your city and state on the Website, you will be presented with a listing of restaurants vying for your dining dollar!
Savings: $5- $50 per month

This is an excerpt from ONE PAYCHECK AT A TIME, www.onepaycheckatatime.com , by Kimberly A. Griffiths, ISBN: 1591133327. ONE PAYCHECK AT A TIME, a 200 page workbook, contains budget management exercises for an entire year of paychecks. The author, Kimberly A. Griffiths, has been through the vicious cycle of debt herself, and provides a no-nonsense system to managing your money paycheck to paycheck. You customize the journal based on your pay schedule and learn the necessary tools for making ends meet.

Join the Alaska Association of Mortgage Brokers today! The Application is available from the Home Page. Select “Application,” print out and complete and mail to the address listed on the web site. See www.akamb.org .

A good budget allows you to achieve your home ownership dreams.