Southern California Gas Co. (SoCalGas) is alerting customers to be aware of a scam that has impacted other utility customers in several states across the country.

The scam claims that President Barack Obama is providing credits or applying payments to utility bills. In some cases, scammers have asked for social security numbers in order to allow for credits or to apply payments to customers’ utility bills, presenting an identity-theft risk. According to reports, scammers have visited customers in person, posted fliers and used social media and texting to send messages claiming that President Obama will provide a credit or directly pay utility bills.

SoCalGas wants to assure customers that SoCalGas employees carry proper identification when called out to any job. The company also does not randomly call or text customers asking for social security or other information. Customers should verify the employee’s proper uniform and identification before letting anyone in the home or on their property. Customer safety is a top priority for SoCalGas and employees will always be happy to wait while the customer confirms their identity.

Here are some tips to help customers identify SoCalGas employees:

• Be vigilant and question anyone who presents themselves as a representative of the utility.

• SoCalGas workers who perform in-home appliance services, work on gas meters or work on gas pipelines wear uniforms. However, some other employees do not. Always ask for identification before allowing anyone inside the home or on the property.

• The majority of authorized SoCalGas employees will be in uniform with company logo and carry an official employee badge. Most field employees also drive a company vehicle.

• Most of the time a SoCalGas employee visits a home or business in response to a service request. If no one scheduled an appointment, call SoCalGas before allowing anyone inside the home or property

• Never leave the house unlocked and unattended. SoCalGas does not ask customers to leave their homes unattended.

• To verify the authenticity of anyone claiming to be a representative of SoCalGas, customers are encouraged to ask for proper identification or call the utility at 1-800-427-2200 (or 1-800-342-4545 in Spanish). SoCalGas customer service representatives are available 24 hours a day, seven days a week.

• Visit socalgas.com/safety for more information on staying safe.

Do you or a family member have a prepaid card? Are you paying fees on it? You probably are.

What is a prepaid card? 

Prepaid cards are commonly referred to as prepaid credit cards, but they function more like debit cards than credit cards. Credit cards extend lines of credit to cardholders, whereas a prepaid card only uses money loaded on the card. Basically, you deposit deposit money into your prepaid account and use the funds when you need them. You don’t need to have a bank account, and typically those who cannot get a traditional bank account will use prepaid cards. But there are things you need to know before you purchase one.

Many people get a prepaid card as an alternative to a debit or credit card. But these can come with a high cost. The average prepaid card costs nearly $300 a year in basic fees, such as monthly charges, ATM fees and reloading fees, according to a study of 40 prepaid cards conducted by credit card comparison site NerdWallet.

Debit cards, if managed properly, shouldn’t cost you a dime. And if you stay within your financial institution’s ATM network (or Co-Op Network if you are with a credit union) you shouldn’t be paying any ATM fees.

A major misconception that many consumers have about prepaid cards is that it will help them build their credit. This is not true – prepaid cards are not credit cards therefore they will not affect your credit in any way.

A good rule of thumb is to always get as much information as you can before you embark on any new financial endeavor. Ask the issuer about each and every fee associated with the card, as well as any restrictions.

For more information on prepaid cards and other major misconceptions about them, read this article.

For information on MCCU’s Free Debit Card, click here.

Auto Loans as low as

2.49% APR¹

Plus, no payment is due for the first 90 days!²

Compare and Save!

³APR=Annual Percentage Rate. Rates as of 4/20/12 and taken from

Bankrate.com. Rates, payments, total interest, and fees based on new

auto, 66-month term, and $20,000 starting loan balance. All rates assumed

for top-tier credit. Restrictions apply.

Call for a Quick Payment Quote!

Ask us about refinancing your existing auto loan with another lender! Apply online 24/7 for a fast response! Or, call us at 818.993.6328 or visit a branch today!

¹ APR=Annual Percentage Rate. Rates as of 04/20/12 and are subject to change at any time. Must meet credit and income criteria. Rate quoted is the preferred rate with a 66-month term. Subject to credit approval and membership eligibility. Other rates and terms available. Restrictions may apply. Existing MCCU auto loans cannot be refinanced. Membership required.

² Interest accrues from date of funding.

The first thing to prepare for is the fact that, online, you may see interest rates that are absolutely incredible.  However, what the fine print may or may not explain is that those rates apply to 15 day lock-ins for borrowers with very high credit scores and a lot of equity.  This sounds great at first glance, of course, except for the fact that it is next to impossible to fund a loan in 15 days especially given the changes in the lending industry.

The reasons these quick turnaround loans are impossible are many.  First, new rules mandate that before you can be charged for an appraisal on your home you must acknowledge and sign certain disclosures.  This means you must receive and understand your Truth in Lending Statement and your Good Faith Estimate (GFE) before the appraisal takes place at your expense.

The new GFEs have become incredibly confusing.  If you’re purchasing a home for example, some seller’s costs will be included (which as the buyer you’re not responsible for).  This makes your closing costs look higher than they actually are. They are also confusing as they do not include your monthly property taxes, insurance or any HOA fees.  You need to make sure you understand your GFE before signing.  Obviously, signing immediately for your receipt of these becomes problematic if you need time to sit down with your mortgage professional to clarify (which I highly recommend).

The next delay that might occur is with the appraisal itself.  It can take days for the appraiser to view the property.  Moreover, unless your agent is there to educate them on comparable sales in the area where you’re buying, the appraisal may come back grossly inaccurate. It is important to note that your mortgage professional is not permitted to select your appraiser. Appraisers are randomly selected from a panel and, unfortunately, your mortgage professional can’t guarantee that the appraiser is from your area or even familiar with your area.  Nor can we guarantee that the appraiser selected will be the most experienced available. That’s why you’ll need to rely on your REALTOR® to ensure that your appointed appraiser is professionally educated about home prices and sales in your area as an inaccurate appraisal will certainly present another delay.

Next, you need to be prepared that the lender will request copies of almost everything except your first-born.  Your income tax returns, pay stubs, investment account statements, bank statements and proof of any other income you have will be required.  My advice to prevent delays during this stage is to have copies of everything ready before you apply for your loan.

Finally, whatever you do, don’t make a big purchase on credit anywhere near the time that you’re applying for a mortgage loan.  The lender will run your credit right before the close of escrow and a debt appearing during the escrow period may lower your score or cause your overall debt to increase which, in turn, can throw off the approval.

Don’t get me wrong, it’s a great time to buy a home or refinance, just do yourself a big favor and prepare for the process to take a minimum of 30 days.  Prepare your documents before applying for a loan. And remember, your mortgage professional wants to close your loan for you as quickly and seamlessly as you, so we’ll do everything in our power to move the process along, as expediently as is reasonably possible.  Happy house hunting!

Fred Kreger, CMC

Certified Mortgage Consultant, American Family Funding

A Division of American Pacific Mortgage – A Direct Lender

President Elect & Vice President, Government Affairs

California Association of Mortgage Professionals (CAMP)

DRE License # 01371184 / 01215943

NMLS License# 214640 / 1850

www.affloans.com

MCCU is the exclusive lender for Los Angeles County’s Energy Upgrade California program!

Energy Upgrade California is an innovative program for  homeowners to improve their home’s energy efficiency, save water, lower utility bills and create a healthier and more comfortable home. Energy Upgrade California connects homeowners with participating contractors  who can help plan and complete their projects— and with rebates and incentives to help pay for them.

The “one-stop shop” guides you through the process:

1. Select an upgrade package that suits your needs
2. Decide whether or not to pursue a Whole-House Home Energy Rating
3. Find a participating contractor to complete your upgrade and maximize your savings
4. Get rebates, incentives and financing to help pay for your upgrade

About Energy Upgrade California in Los Angeles County

Energy Upgrade California Los Angeles is administered and overseen by an alliance among L.A. County, Southern California Edison, Southern California Gas Company and the City of Los Angeles Department of Water and Power. Los Angeles County was one of the first counties in California to roll out this program.  Locally, county officials are coordinating with Southern California Edison, the Southern California Gas Company and L.A.D.W.P. to provide homeowners with information on home upgrade benefits, financing, incentives and home energy ratings and help with finding participating contractors. For more information, consumers can visit Energy Upgrade California today!

Join the community at the Valley Family Festival on June 2nd from 3:00pm to 9:00pm!

It’s fun for the whole family:

• Children’s Activities including arts and crafts, bouncers, face painting and more!
• Art Pavilion
• Live Performances and Music

Best of all, there will be a free screening of Puss n Boots!

There is no cost to attend! The Festival is sponsored by Councilmember Mitchell Englander, Kiwanis Club of Northridge and the L.A. Department of Recreation and Parks. Join your neighbors and friends for a fun-filled day!

Click here for more information!

1. It is Almost Impossible to Obtain a home Loan

Frankly, it is not very difficult to obtain a loan if you do your homework. Is the process different than it was during the boom market early in the millennium? Yes. Is it more labor intensive? Absolutely.  But obtaining a loan today is no more difficult per se, than it was prior to the emergence of exotic loan products that flooded the market 5 years ago.  The regulations do continue to change, but essentially obtaining a home loan requires verifiable income, good credit, a reasonable down payment and proof of ability to repay the loan.  Loans were made based on these criteria for years and years.  In fact, when looking at the history of mortgages, the years when obtaining a loan were easy as pie, were the exception, not the rule.

2. “Jumbo” Loans Are No Longer Available.

Large loans are making a comeback. Known as Jumbo Loans (those generally over 750K), these loans are now more readily available.  Naturally, as the loan amounts are higher, the standards for qualifying will be commensurate with the risk the lender is making.  Ample reserves are required, larger down payments are required, interest rates are a bit higher and good credit is needed.  But these types of loans are absolutely available.

3. Buying a Foreclosure Is A Great Deal.

If the word “sometimes” were included in this statement, it would ring true.  Buying a foreclosure can be a great deal.  Homes can be purchased at huge discounts.  But buying a foreclosure can be a lousy deal too.  Foreclosures that are listed by banks for example, are often priced so far below market value that the listing brings in a lot of offers.  These offers then drive the price up, making the deal a little less sweet.  Moreover, as a buyer you will almost never know the true condition of the home.  Whether you buy a home at auction or through a bank listing, major damage or problems with the home may not be disclosed as the seller has not lived in the property and doesn’t know the condition of the property as a traditional seller would.  The home could have a leaky roof, water damage or other similar problems that you may be completely unaware of, until the home is yours.  Repairs can also be extremely costly, again souring the deal.

4. Short Sales Take Too Long.

Again, as a blanket statement, this isn’t true.  Yes, purchasing a short sale can take a long time, many months in fact.  But, this is not always the case.  New processes at many banks have streamlined the transactions, so that purchasing a short sale home won’t necessarily take several months.  This is particularly true if you happen to be second in line for a property.  It’s not uncommon for the buyer who put in the initial offer to become frustrated with the time it takes and withdraw their offer.  If you are in the fortunate position of being next in line, much of the paperwork and approvals have gone through, and the home can be purchased expediently.

5. The Market Will Soon Be Flooded With Shadow Inventory.

It’s no secret that banks now own a great number of foreclosed properties. However it’s a mistake to think that banks are going to dump them all on the market at one time.  They are bit by bit listing the properties, as flooding the market will depress the values.  Banks simply can’t take the hit of selling off all of the properties they own at discount prices, so if you’re waiting for this surge in inventory, you’re going to be waiting a long time.  Suffice to say, short pays and foreclosures are going to be available for a long time, as there is a surplus in inventory, but they aren’t going to be up for sale all at once.

Fred Kreger, CMC                           

Certified Mortgage Consultant

American Family Funding

A Division of American Pacific Mortgage – A Direct Lender

President Elect & Vice President, Government Affairs

California Association of Mortgage Professionals (CAMP)

“Excellence and Integrity in Lending”

 Phone: (661) 505-4311  Fax: (661) 705-8339

DRE License # 01371184 / 01215943  NMLS License# 214640 / 1850

www.affloans.com

After repeated months of an improving employment picture, the employment numbers for March indicate a possible change in direction.  Before we go any further, don’t be fooled by the announcement that unemployment dropped from 8.3% down to 8.2%.  The cause of this drop is only due to one factor which is simply that people are leaving the workforce.  All of the other metrics related to employment are worse this month than last month.

In February the economy added 240,000 jobs while in March the number dropped all the way to 120,000 jobs added.  This is the smallest improvement in job creation we have seen in the last 5 months and the fact that it is coming in the spring time is cause for concern.  I am not suggesting that we are heading back into a nose dive employment meltdown, I am just bringing to light that the momentum of improvement is certainly slowing.

Adding to economic growth concerns is that Europe is coming back into focus and has the markets jittery.  We have seen debt concerns with Greece, Italy and Portugal….now the focus on Spain and the concern that they are having debt management issues has many investors sitting on the sidelines.

The final kicker creating concern for investors is that the FOMC released the minutes from their last meeting on Tuesday this week.  They have made it clear that at the present time they have no plans to provide additional economic stimulus.  When you combine that announcement with the concerns of Europe and slowing employment, it is enough to get everyone a little concerned.  However… this can be good for housing.

Mortgage rates, after their jump a few weeks ago, have dropped back considerably.  I won’t say that we are heading down to record lows again however the concern of rapidly rising rates has gone away.  Home purchasing has increased and this past week there was a larger than expected jump of 7.2% in purchase activity.  The reason for the jump is being attributed to the fact that many home buyers obtaining FHA financing wanted to get their deal going before the increase in FHA insurance premiums which go into effect April 6.  Despite the FHA insurance increase, we have been seeing home purchase activity increasing a little each week for the past month.

Housing and Financing Recommendation:

 Don’t get caught up in the employment numbers.  Home ownership remains incredibly affordable.  When you combine that with stabilizing home prices, now is the time to take action on purchasing.

 For current homeowners, take a look at your credit card debt, see if it makes sense to consolidate that debt into your mortgage and reduce the interest rates.

 Economic reports on tap for next week are:

• Wednesday April 11^th – MBA Mortgage Applications and 10 Year Note Auction
• Thursday April 12^th – First Time Jobless Claims and Producer Price Index
• Friday April 13^th – Consumer Price Index and Consumer Sentiment

As your mortgage professional, I am happy to assist you with any information you may need regarding mortgage or real estate information.  I welcome the opportunity to serve you in any way I possibly can.

Fred Kreger, CMC                               

Certified Mortgage Consultant

American Family Funding

A Division of American Pacific Mortgage – A Direct Lender

President Elect & Vice President, Government Affairs

California Association of Mortgage Professionals (CAMP)

“Excellence and Integrity in Lending”

DRE License # 01371184 / 01215943  NMLS License# 214640 / 1850

www.affloans.com

Check out my blog site: www.fredkreger.com

Matadors Community Credit Union is Safe and Sound

MCCU wants to reach out to the community to assure them that we are financially healthy, and safe and sound:

• MCCU deposits are federally insured by the NCUA for at least $250,000

•  MCCU is very well capitalized. Our net worth ratio as of February 29, 2012 is 10.31%. Regulators consider a credit union well capitalized at 7%. Being well-capitalized means your credit union has solid financial strength.

• MCCU has been in business since 1963.

• MCCU offers Shared Branching so members can go to another credit union that may be more convenient for them to do their banking.

• MCCU never did any risky business lending and are we are very conservative in our lending guidelines.

• $100 cash back for each car loan you fund with us
• Rates as low as 1.99% APR*
• 90 days no payments (interest will accrue)

For more information about MCCU, please contact us at 818.993.6328 or visit our website.

*APR=Annual Percentage Rate. Rates as of 1/01/12 and are subject to change at any time. Must meet credit and income criteria. Rate quoted is the preferred rate with a 24-month term. Subject to credit approval and membership eligibility. Other rates and terms available.  Sample Payment: $510.44 (based on 24 month new or used car loan, $12,000, 1.99% APR). Refinancing of existing MCCU Auto Loans not eligible. Restrictions may apply. Membership required.