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Are you tired of high fees, low returns and poor service at your bank? It may be time to shop for a credit union.

These nonprofits could be the most misunderstood bargain in banking. Although they often offer higher rates for deposits, lower costs for loans and reduced fees for such things as overdrafts and checking accounts, many people are confused about who can bank with them.

Many consumers believe they are only open to employees of a single company, members of a particular church, union or profession. But with many credit unions that's no longer the case.

While some may restrict membership, these institutions have thrown open their doors to anyone in a particular ZIP Code or beyond.

The 1998 Credit Union Membership Access Act allowed credit unions to broaden their field of membership and thousands of organizations have extended their membership to anyone living in a particular community like all of Southern California, for example or extended to anyone who has ever been employed by or attended school in the state.

Of course, if you also happen to be a teacher or engineer, broadcaster, public worker or employer of a credit union-sponsoring group, you may have access to a dozen credit unions or more.

Why go through the trouble of seeking out a credit union?  There's a good chance that you could drop the interest on a revolving credit card balance by 1 percentage point if you do. Your new-car loan could be about 1.5 percentage points cheaper than if you financed through a bank.
Deposit rates are about 25% better on average at credit unions than banks.  CDs usually have higher yields.  Home loans rates are usually very competitive and have low fees and lower points.

Are your deposits as safe in a credit union as they are in a bank?  They're backed by the National Credit Union Share Insurance Fund, which is a sister agency to the Federal Deposit Insurance Corp. and mimics FDIC rules. That means that each account owner gets up to $250,000 in coverage this year.

Look up local credit unions and you may be surprised to find that many are available to the general public.  Check each web site for membership information. 

What Constitutes Mortgage Loan Fraud

If you lie on your real estate loan application, it's mortgage fraud. Even tiny white lies constitute mortgage fraud.  If the lender subsequently discovers any part of your loan application is false, not only can it demand immediate full payment of your loan, but you could pay six-figure fines, find FBI ringing your doorbell and / or go to jail.

The FBI defines mortgage fraud as "any material misstatement, misrepresentation or omission relied upon by an underwriter or lender to fund, purchase or insure a loan."

Here are a few examples of common mortgage fraud:

• Undisclosed kickbacks.
  If you strike a deal with a home seller to give you a big wad of cash or to slip a check across the closing table, say, to pay for a new roof, and if the lender doesn't know about it -- because it's not disclosed in the purchase contract nor addendum nor your estimated closing statement -- it's mortgage fraud.

• Silent second mortgage.
  A borrower without a down payment can commit mortgage fraud by borrowing the down payment from the seller in exchange for giving the seller a silent second mortgage, which is unrecorded (or records after closing) and hidden from the lender.

• Falsifying employment income.
  Stated income loans were originally created for self-employed individuals whose income is difficult to verify, but some employed borrowers inflate their income above and beyond a W-2.

• Non-owner occupant claiming occupancy.
  Lenders offer higher interest rates and less favorable terms to non-owner occupants because the lender's risk is higher. If you don't intend to live in the property, don't promise that you will.

• Down payment gifts you will repay.
  Both parties, the giver and the recipient, commit loan fraud if the gift is to be repaid. Gifts cannot be repaid.

• Inflated purchase price.
  If you have two purchase contracts and send the false contract with the higher sales price to the lender in hopes of obtaining a higher appraisal, it's mortgage fraud.

• Falsifying deposits.
  Dishonest borrowers who do not have an earnest money deposit might state in the contract that the deposit was paid outside of escrow, which is fraudulent.

Prices have been at an all time low, having taken a nose dive throughout all of 2008.  Foreclosures and short sales have been the norm with regular sales taking a back seat or having to follow price parameters set by recent sales activity. 

Current inventory in Rio Vista, including all parts of town, is very low.  There is nothing in Homecoming that does not have an offer on it.  In Trilogy, while there are still good floor plans at great prices, the number of lower priced homes is significantly decreased. 

The last three homes in Trilogy sold higher that several months ago.  A Yountville sold at $50,000 more than the last one; a Calistoga received multiple bids and will most likely close higher than the last couple of sales of the same model.  A Pebble Beach just sold for $23,000 more than the last one.  Homes in the city are going at asking.  Homes are appraising at purchase price.

In town homes are selling briskly.  There is a race to get something before someone else.  When homes sell within several days of coming on the market and inventory is low and a listing gets multiple bids, the handwriting is there.  This appears to be the beginning of an upward curve.  The bottom may very well be behind us.  If you are a buyer, think about getting off the fence and doing some serious looking.  Call you lender, get pre-approved and get on board.