Mortgage Indo

As you devour this article, remember that the rest of it contains valuable information related to simple accounting training and in some way related to 2007 IRA catch up, construction business software, and fact accounting software or financial and managerial accounting for your reading pleasure.

The General Ledger Creates an Audit Trail, Dont let the word audit strike fear in your heart; I am not talking about a tax audit. Although, if you are called to respond to an outside audit for any reason, a well-maintained general ledger is essential.

If you find it difficult to determine someone’s expertise in a field with which you are unfamiliar, here are some solutions, Have them interviewed by an expert. Your own CPA will probably be glad to interview a few for you, carefully check references from past jobs. Ask detailed questions on exactly what they did in the accounting function. Compare the answers with what they say they did, ask them some accounting questions. It may sound odd that you (of all people) should be asking such questions. However, even if you can’t judge the technical merit of the answers, you can get a feel for how comfortable they are with the subject and the authority with which they answer.

We segregate liabilities into short-term and long-term categories on the balance sheet. This division is nothing more than separating those liabilities scheduled for payment within the next accounting period (usually the next twelve months) from those not to be paid until later. We often separate debt like this, it gives readers a clearer picture of how much the company owes and when.

The most successful companies in the world choose words carefully when they create their advertising taglines. You can learn from their advertising strategy and experience. Treat your mortgage tagline as a critical part of your marketing campaign and choose your words very carefully.

In case you don’t know what a tagline is…it’s a short (usually one line) advertising blurb that aids in establishing credibility for you. Your mortgage tagline helps customers and prospects to feel that calling you and working with you is a “safe” choice. Your tagline can help drive business for you.

The really nice thing about taglines other than they work, is…they’re absolutely free! Once developed, they sort of tag-a-long and enhance all of your mortgage marketing material and summarize your advertising message in one short sentence.

How much more effective could your advertising be if you treated your tagline as a sales opportunity? With just a few additions and small adjustments, you could significantly improve the power of the tagline in your ads, and improve your return on your advertising investment.

In the real estate market, there are plenty of ways to pay off your mortgage so that you are not saddled with debt for a long time. If you are looking to avoid thousands of dollars in interest, then investigate ways of getting rid of your high house payment.

Americans pay millions of dollars in interest each year due to mortgage payments. Remember that the amount of interest you pay is proportion to the principal balance of the money you borrowed. This means that if you get your principle down, then you will not have to pay as much in interest.

To pay the amount you owe early, many people pay their mortgage payment every two weeks instead of every month. Since there are fifty weeks in a year, then you will be making twenty six half payments or in other words thirteen full payments. You will then be paying an extra payment each year because with two months you are paying three half payments. This can shed years off of the loan.

You can also take your payment and divide it by twelve and then you will be paying extra at the end of every month. This allows you to reduce the principal balance of your account every month. You will end up paying less interest every month. You may also want to investigate the structure of your loan to see if it is cost effective. You may want to go around to other banks to see if you can find one that offers better terms and conditions.

Recent financial industry distress publicly attributed to widespread mortgage loan defaults has generated mounting pressure on federal prosecutors to increase investigations into incidents of mortgage fraud across the nation. On February 6, 2004, CNN reported that the FBI warned that mortgage fraud was becoming so rampant that the resulting epidemic of fraud could trigger a massive financial crisis. Mortgage fraud has now become so prevalent that the United States Department of Justice and the Federal Bureau of Investigation have been forced to create an entirely new category for tracking these cases. According to a CBS news report, the number of FBI agents assigned to mortgage related crimes increased by 50 percent from 2007 to 2008. Prosecutors and investigators on both the state and local levels are also feverishly organizing task forces and creating real estate fraud departments to counter this burgeoning wave of crime.

CRIME & PUNISHMENT

The primary focus of these investigations appears to be on borrowers, investors, mortgage brokers, appraisers and real estate agents. Some of the charges levied against these perpetrators have included making false statements on loan applications, bank fraud, mail fraud, wire fraud, conspiracy to launder funds and a number of applicable state laws. However, the primary legal vehicle implemented by federal prosecutors has been section 1014 of Title 18 of the United States Code which declares mortgage fraud as a federal crime encompassing anyone who willfully overvalues any land or property, or knowingly makes any false statement, for the purpose of influencing a financial institution upon a loan application, purchase agreement or other related documents. A violation of the federal mortgage fraud law (18 U.S.C. 1014) alone is punishable by up to thirty years imprisonment and a one million dollar fine.

MORTGAGE FRAUD SCHEMES

Internal rate of return (IRR), modified internal rate of return (MIRR), and financial management rate of return (FMRR) are three returns used to measure the profitability of investment property. Each method arrives at a percentage rate based upon an initial investment amount and future cash flows, and in each case (of course) the higher the better, but the procedure for making the calculation varies significantly as do the results.

By definition, internal rate of return is the discount rate at which the present value of all future cash flows is exactly equal to the initial capital investment. To make the calculation, negative cash flows are discounted at the same rate (i.e., the IRR) as positive cash flows.

Let’s consider the following investment with the initial investment as CF0 (always a negative number because it is cash outflow) and subsequent cash flows as CF1, CF2, etc., with some negative and some positive.

CF0 -10,000
CF1 -100,000
CF2 50,000
CF3 -60,000
CF4 50,000
CF5 249,300