Homestar Mortgage Services announced that Peter Varrgne has joined the firm as a loan officer.

In his new position, Varrone will be responsible for originating purchase and refinance home mortgages.

he evolution of commercial real estate finance on Wall Street and beyond has opened new doors for loan structures that enable borrowers to optimize objectives and create portfolio stability. Today, sophisticated borrowers can take a truly surgical approach to financing their projects, constructing each loan to suit the nature of an individual property.

In many ways, the direction of the commercial mortgage market is tracking the residential financial market -- on fast forward. The number of alternatives available to homeowners has increased exponentially during the past 20 years, evolving from standard 30-year fixed rate loans to a variety of different structures. Commercial mortgages are following suit at a much more rapid rate.

Just a few years ago, borrowers could choose from only three or four standard mortgage programs. Now, from Wall Street and the larger institutional banks, to S&Ls, to Fannie Mae and Freddie Mac, to regional commercial banks, to life insurance companies, the myriad of options has grown tremendously. Each provides unique attributes that can be beneficial in different situations. For example, local sources tend to consider the merits of the immediate market or the project itself, while larger institutions, and more traditional lending operations often provide longer term, fixed-rate solutions, frequently with more. structural complexity.

For inherently conservative organizations like Kushner Companies -- that traditionally seek long-term, mortgages with significant amortization -- the life insurance companies, along with Fannie Mae and Freddie Mac (for multifamily purchases) have become particularly attractive. At the same time, Wall Street continues to offer new alternatives that mimic the benefits of fully amortizing loans.

During the past few years, the industry has seen a considerable increase in the number of securitized mortgages. This traditionally residential financing method that places loans in a trust and sells them as bonds first, significantly entered the commercial market in the early 1990s with the RTC. Through the past decade, securitization's profile has dramatically increased. The cost of capital enjoyed through the securitization market has made this alternative increasingly competitive with traditional lending sources.

Mezzanine financing represents another significant area of growth during the past several years. This type of financing, often referred to as preferred equity or mezzanine debt, is secured by the existing equity in the property and is subordinate to the first mortgage. It can be ideal if prepayment on an existing first mortgage is either legally prohibited or has high prepayment penalties, yet provides an attractive loan-to-value ratio. Mezzanine financing often provides a valuable tool for bringing a property back to a more typical level of leverage.

For example, Kushner Companies is currently looking at an acquisition opportunity with a relatively low loan-to-value ratio and an existing first mortgage that is prohibitive to refinance. We want to launch a significant capital improvement program to bolster property performance. We plan to buy the property with mezzanine financing and subsequently invest almost 20 percent of the purchase price in improvements such as a health club, dramatic lobby and hallways and elevators. In a few years, when the property has stabilized at the expected higher rental income, we will be able to refinance both the first mortgage and the mezzanine loan with traditional, long-term financing.

Larger companies with strong track records as "premium" borrowers are particularly well-positioned to take advantage of today's best financing opportunities. Major privately held players like Kushner Companies also often enjoy the benefit of "patient capital," or the financial ability and flexibility to invest in properties that may be dilutive in the short-term, but promise significant long-term profitability.

The amount of mortgage payments missed this year is approaching the 500,000 barrier, new figures from MoneyExpert reveal.

According to research by the firm, some 460,000 repayments have been missed since the beginning of 2007 - an average of about 77,000 per month. However, following the decision by the Bank of England's monetary policy committee (MPC) to increase the base rate to 5.75 per cent this number could be set to rise further as the Bank looks to "pile on the pressure".

Despite the MPC having risen the base rate five times, by a total of 1.25 per cent, over the last year the financial services company pointed out that industry experts believe more increases could take place. Consequently, interest rates on tracker and standard variable mortgages have "inevitably" increased. Meanwhile, those coming to the end of their fixed-rate products are set to find their monthly secured loan repayments becoming "more expensive".

Chief executive Sean Gardner said: "Missing a mortgage payment is a real signal of distress and anyone in such dire straits needs to address the issue as soon as possible. We are a long way from the dark days of the late 1980s and early 1990s when more than a million lost their homes but many are feeling the strain. Anyone who has missed a mortgage payment should for a start be talking to their lender and letting them know what is going on."

Mr Gardner added that such consumers should look to reduce their spending and cut debts as soon as possible. "That ought to mean sorting out their finances and getting all loans and credit cards under control," he added. The executive pointed to debt consolidation and taking out a secured loan against the value of property as a way of meeting demands for any outstanding mortgage payments.

Meanwhile, research carried out earlier this year indicated that some 36,000 homeowners defaulted on their mortgage every month over the duration of 2006, with this figure now predicted to be "close to doubling" by the end of this year. The financial company also pointed to figures from the Council of Mortgage Lenders indicating that some 59,000 mortgages were between three and six months in arrears as of the end of last year. Statistics from MoneyExpert also signified that those aged between 35 and 44 are the most likely to miss making a payment - with some three per cent said to have done so over the last six months.

Earlier today, Arthur Morgan, Sinn Fein spokesperson for housing, claimed that the government needs to take more steps to curb rising mortgage debt. "More can and should be done terms of mortgage interest relief to help protect vulnerable homeowners in particular those on average and lower incomes," he said. Mr Morgan suggested that government officials have reported that there is not a problem with affordability within the property sector despite the emergence of 100 per cent mortgages and "the fact that young couples were borrowing unprecedented sums at a time of historically low interest rates".

Several types of mortgage loans are being floated in the market by multiple financial institutions. However, it is advisable to have information regarding various criteria that are taken into consideration by mortgage lending firms while determining the eligibility of a borrower for a mortgage home loan. As these criteria determine the interest rate on the loan, knowledge about them is even more vital.

The most important criterion that lenders usually go for is about the repayment capability of the borrower. Credit history and FICO scores of the borrower provide ample information regarding financial status and the repayment history of the borrower. Lenders usually give prime importance to borrowers having a reasonable credit history with credit scores of more than 600. Credit reports of the borrower can be obtained from any of the three leading credit bureaus in the U.S.. Credit reports contain details such as the income of the borrower, his credits, and any late payments made towards rent, mortgages and credit card bills.

Another important criterion is the debt-to-income ratio of the borrower that determines the eligibility and interest rate on the loan. Borrowers having a debt-to-income ratio of 28/36 are considered ideal for a mortgage loan. However, certain lenders entertain customers with a poor debt-to-income ratio. But, loans to these customers are provided at a higher interest rate and require a high down payment.

Apart from these, the customer is expected to have a steady income and a satisfactory employment record so as to multiply his chances of getting a mortgage loan approved. The customer must be employed with a single employer for a minimum period of 2 years in order to be eligible for a loan.

Interest rates on the loan also vary if the loans are federally insured or assured by any private mortgage insurance companies.

Applying for a mortgage can be an extremely confusing thing to do, especially for first time homebuyers. What bank should you work with, who has the best rate, who can you trust to do the best job for you, should you use a mortgage banker or a mortgage broker and many other questions are at the forefront of many consumer's minds. The first thing that you need to do before you apply for a mortgage is to sit down by yourself or with your spouse and figure out a budget along with your present, short term and long term financial goals. This way you will have a better idea as to what type of mortgage will be best for you along with a very accurate idea of how much of a payment you can afford to continue living the lifestyle you are accustomed to.

The second step in applying for a mortgage is to figure out who you should work with, a traditional bank, a credit union, a mortgage broker, a mortgage bank, etc... Who to choose can often be a difficult choice. Banks traditionally only have one set of underwriting guidelines and they are usually very picky about who they approve for mortgages. Mortgage banks will generally be a little less strict than normal banks, however they usually will offer retail prices on their rates so you may not always be able to obtain the best interest rate that is available. Credit Unions can many times offer financing on things that mortgage banks and traditional banks can not, however they do not always provide the best rates for what they offer. I do highly recommend considering becoming a member of a credit union though because they do have some very aggressive items that may be worth looking into for all different types of financing and investing. Mortgage brokers can usually shop your loan around with hundreds of different lenders and obtain wholesale rates offering the best of both worlds, however which one should you use. In this step, you should look at your newspaper over the weekend to see if any banks are having any rate specials for new mortgages, if so try applying for a mortgage with them as the first company. Next, you should look into a mortgage bank such as a Countrywide or Quicken loans or somebody and see what they can offer you. Finally, contact a mortgage broker in your area and see what they have to offer you as well. If you have shaky credit the mortgage broker will be your best option. You can also ask family, friends and or co-workers for recommendations as to who they have used in the past and if they were happy with them.

Finally, after you have found out who you would like to work with you will need to provide them with income documentation, asset verification, homeowners insurance information, purchase agreement (if applicable) and some other documents may be necessary depending on your situation. The mortgage loan process can be done in anywhere from as little as a week up to 3-4 weeks on average depending on whether you are refinancing or buying a home and how long your purchase contract states you have until closing. Therefore, shop around with a coupe of different lenders and brokers, ask family and friends for referrals, and sit down and prepare a budget along with your financial goals in order to begin the mortgage application process.