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Archive for the ‘VA Streamline Refinance’ Category

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The Walmart Priced VA Streamline with Chase Bank

Friday, February 3rd, 2012

Many veterans think going directly to the source to refinance their VA home loan will guarantee they will receive the lowest interest rate on the market.  This is not always the case.  Lenders are willing to give broker loan companies wholesale or cheaper pricing because of the amount of loans the lender closes.  Companies like Chase can afford to give a broker closing hundreds of loans a lower interest rate then they can give one person walking into the bank looking to lower their rate.  This provides a great opportunity for veteran home owners to take advantage of lower interest rates then they can get directly from the lender. To further emphasis the point, let’s compare Chase giving discounted rates to brokers to buying an item at Walmart.

Walmart purchases thousands and thousands of dollars of product from companies all over the world.  If someone enters a Walmart store today to buy a box of Lucky Charms for $3 would be cheaper than going directly to General Mills and purchasing that box of Lucky Charms.  Why?  Because Walmart buys thousands to millions of dollars of product from General Mills so they offer major discounted prices to Walmart.  If you decided to go buy one box of Lucky Charms through General Mills the cost of the box of cereal and the time it would take you to get that box of cereal would make purchasing the item through Walmart an obvious choice.

The same concepts apply to refinancing your VA home loan.  If a veteran walked into Chase Bank today to refinance his home loan, there is a good chance the interest rate they offer would be higher than going with a broker approved by Chase. Why?  Brokers closing hundreds to thousands of loans are given discounted pricing giving the consumer a better interest rate.

Owner of LowVARates.com, Eric Kandell, has been in the VA mortgage industry since 1997 and understands brokers can offer wholesale rates.

“When we show some of the representatives at various banks the wholesale rates we are able to receive, most of the time they tell us they are unable to compete with those rates,” Kandell said.

Chase and other banks still have the capability to refinance your home loan through one of their branches or offices.  As a consumer if you refinanced through one of Chase’s offices that would be considered dealing with a “retail channel.”  A retail location would basically be the Chase Bank in your local town. If you were to call Chase Bank today you would have access to their “retail rates”.  However, if you contact a Chase broker you would have access to their “wholesale rates”.

Giving brokers the discounted or “wholesale” rate, makes perfect sense for both the broker and the bank, just like it makes sense for General Mills to offer Lucky Charms at a discounted rate to Walmart.  Chase understands that brokers, like LowVARates.com, can close thousands of loans nationwide and make them more money than trying to ONLY sell loans directly through them.

Veterans and military families with high interest rates should make sure to check there options to ensure they are making the best financial decision for their families.  With rates at historic lows, many veterans can be lowering their monthly payments hundreds of dollars per month and save thousands of dollars over the life of the loan.

Make sure to check VA Streamline rates through Chase Bank, LowVARates.com and other brokers to see which can offer you the best streamline for your situation.

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VA Streamline Refinance with no FICO requirement or appraisal

Tuesday, October 25th, 2011

LowVARates.com a Division of Flagship Financial is one of only a few lenders in the nation allowing veterans home owners to refinance a VA home loan without an appraisal, AVM (Automated Value Method) or FICO score requirement.

Other lenders are tying down potential refinances by requiring costly appraisals and hefty credit score requirements making it nearly impossible for borrowers with bad credit or lost home equity to refinance.

LowVARates.com has relationships with lenders that are willing and able to refinance existing VA home loans without any of these requirements.*

“We have a very unique situation where we are basically able to refinance any veteran with a VA home loan,” Owner of LowVARates.com, Eric Kandell said. “With the rates as low as they are right now we have helped hundreds to thousands of veterans with subpar credit get locked in at lower interest rates.”

Many borrowers have even tried to refinance with their current lenders, but are still unable to meet the FICO requirements and forced to stay at higher rates in a poor economy.

Home appraisals have always been a standard procedure for veterans looking to purchase or refinance their home.  However, LowVARates.com does not require an appraisal to refinance an existing VA loan saving the borrower typically about $400-$500.

With the unique ability to refinance loans with no FICO score or appraisal, LowVARates.com is required to lock loans in a pool forcing many of these loans to wait to have their interest rate locked.

Because the loans are locked in a pool, LowVARates.com is maneuvering a massive amount of loans through a very small window. Because the rates are so low, thousands of people want to lower their rate and save money.  When the lender pool is filled LowVARates.com is unable to lock new loans until the new pool of loans is funded.

The consequence is that many borrowers may have intended to get a certain rate at a certain cost, but because the pool was full, the borrower is pushed back and unable to lock in the interest rate.  This can cause the interest rates and cost to change on a VA streamline before the loan is processed.

“Most of our current clients are unable to refinance through other outlets and we are doing everything we can to help them,” Kandell said.  “We are attempting to funnel through as many loans as we possibly can sometimes causing our pool of loans to be filled.”

However, potential borrowers are never tied into doing a loan. LowVARates.com compensation on the loan does not change regardless of the costs or interest rates. This puts LowVARates.com in a great situation to advocate for borrowers to help every potential borrower get the best possible interest rate.

“Potential borrowers should understand they still have control over what they want to do.” Kandell said. “When lenders come back and offer a different rate they have the right to take the current rate offered or wait the market out to see if the rates drop again.”

Borrowers not locking their interest rates do run the risk the market will change and the rates can rise.  There is no way to predict what the interest rates will be the next day, week or month.  Interest rates can be very volatile and there are never any guarantees for borrowers that have not locked their loan.

For those borrowers that find themselves in this situation, the increase in closing costs is usually around $1,000 -$3,000 and those costs are able to be rolled into the loan typically only increasing the loan $3- $7 per month.  LowVARates.com guarantees it will provide the best interest rate available to borrowers looking to refinance.

With this situation LowVARates.com remains one of a very small number of lenders that is able to help veterans with lower FICO scores and refinances without an appraisal.  Thousands of veterans are finally able to lower their rate and save hundreds of dollars every month.

The current rates for a 30 year fixed loan are around 3.75% right now and continue to hit record lows.  For veterans stuck in higher interest rates now is the time to refinance and save some cash.

* Though LowVARates does not require a minimum FICO score, they will look at the overall ability of the Veteran to make timely mortgage payments and may decide to not offer a loan if someone has had 30 day late mortgage payments in the recent past, has had a short sale or foreclosures or other extreme credit issues.  The score if not needed, but the history tells a lot about the home owners ability to make their new mortgage payments.

** Flagship Financial Group, LLC is licensed as: NMLS No. 3133; Alaska Mortgagee Licensee #100278; Arizona Banker 0908193; Department of Corporations under the California Residential Mortgage Lending act Lender 413 0854; Florida Correspondent Lender CL 0703188; Georgia Mortgage Broker Licensee 17297 – 3130 W Maple Loop Dr, #200, Lehi, UT 84043 (GA); Illinois Residential Mortgage Licensee MB6760204; Kansas Licensed Mortgage Company, License No. MC.0001780; Maine Mortgage Lender License# SLM9424; Maryland Mortgage Lender 16461, Mississippi Supervised Mortgage Company 308/2006; Nevada Mortgage Broker 1385 – 1349 Galleria Dr., #110, Henderson, NV 89014; New Hampshire Banking Department Mortgage Broker 13439- MBR; North Dakota Money Broker MB101563; Oregon ML-2543; Licensed by the Pennsylvania Department of Banking (PA); Utah Mortgage Loan Company 5493106; Licensed by the Virginia State Corporation Commission, License MC-2980. In certain states in which we do conduct business, certain restrictions and limitations apply. Rates and terms subject to change. If you have any questions or comments regarding this offer please email to lharris@ffgcorporate.com.

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Why doesn’t everyone with a VA loan streamline to a VA hybrid?

Friday, July 29th, 2011

If you would have asked me just a few years ago, if I would ever put my own property or mortgage on an adjustable rate loan, I would have said NO WAY!  Fast forward to today and I only wish I could do what so many men and women Veterans or VA loan holders can do with their loans.  I only wish the VA streamline loan into a VA hybrid loan was something that I could do and take advantage of.  I have not served and thus do not have the right or privelege to get this loan.

In order to take advantage of the VA streamline refinance or VA IRRRL (Interest Rate Reduction Refinance Loan) you must have a VA loan now and must have honorably served in the Armed Forces.  If you do have a VA loan and are eligible and do not take advantage, you are making people like me, who wish we could, very frustrated!  Ok well in all honesty, not everyone benefits from the streamline, but the cases are very few and far between.

Who can benefit from the VA streamline refinance?

  • Anyone with an ARM or adjustable rate loan now
  • Anyone with a fixed rate now that is at 4.25% or higher
  • Anyone that is on a 30 yr loan but wants to pay their home off much faster
  • Anyone that does not plan on being in the home for more than 3-5 yrs.
  • Anyone in a short pinch for cash that could benefit from an instant amount of money in their pocket

So who will NOT BENEFIT from a VA streamline or VA IRRRL?

  • Someone who does not like saving money
  • Someone who won’t take time to educate themselves
  • Someone who has been fed false info for too long

Ok those were joking, kind of.  The fact is very few people will not benefit from the VA streamline.  Those that will not benefit normally have been in their loans for 10 plus years without refinancing and are close to paying the balance off.  Someone who has a fixed rate in the low 4 to high 3 range or someone on a 15 year loan that does NOT need to lower a payment by going to a longer term.  Other than those examples, you will benefit normally by doing the VA streamline.

So please, spend some time on this blog and research all the reasons to streamline your VA loan, or send us a question or call us up.  There has never been a better time to get locked in at such low VA interest rates like there is now.

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How to shop for the best VA streamline deal among lenders

Monday, July 25th, 2011

Lately, it seems more and more VA home owners (people with VA home loans from the Dept of Veterans Affairs) are shopping around and getting lenders to compete for their loans.  This is a very good sign on the surface and I am glad to see a more educated home owner than in years past.

Unfortunately, however, there are lenders out there who know how to trick our Veterans into thinking they are getting the best deal, when in all reality, they are not!  I am hopeful that this blog post will shed some light and make the consumer (our military home owners or even buyers) more intelligent and ready to shop for the best VA Streamline Rate as possible.

This short video will sum up the rest of my blog post so feel free to watch it.

You need to understand some key terms first:

consumer paid vs lender paid- Since April 2011, it is illegal for a loan originator to make money on a loan from charging the borrower an origination fee or charge and having compensation directly from the lender.  A loan officer can charge you origination charges and have you pay him/her for doing the loan or the lender can pay the loan officer and he/she will charge you nothing

origination fees- Any fee paid to the lender or the originator by the borrower. Normally the 1% origination fee charged by the loan officer and then any underwriting or processing fees.

discount points- fees paid for by the home owner to buy down to a lower than market interest rate.  VA loans can allow for up to 2 discount points or 2% to be paid by the Veteran

3rd party fees-These fees are on every loan and have to be paid for by the borrower on all Lender Paid transactions.  Do not be fooled, if you are told there are no 3rd party fees or do not see fees like, title insurance, title exam, escrow, notary, signing, tax, stamps etc then run for the hills; you are dealing with Mr. Shady!

pre-paids and escrows/impounds- All VA loans will require an escrow account be set up and pre-funded at the time of closing.  In addition to having an escrow account cost associated with your loan, you will also see pre-paid interest on your loan.

APR- Annual percentage rate. The annual rate that is charged for borrowing expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transaction.

Good Faith Estimate- The form given to you where all origination fees, 3rd party fees, and prepaid interest and escrows are broken down for your viewing and research.
The best way to ensure you are getting the absolute best possible deal on your VA streamline loan is to compare the APR of all of your offers and also the ADJUSTED ORIGINATION CHARGE!  The video above explains this a bit better, however just ask your loan officer to indicate very visibly on your forms or paperwork, what your adjusted origination charge is.  The lower the adjusted origination charge, the cheaper the cost of that loan.

If you are shopping a loan here at Low VA Rates, we invite you to challenge us to our $250 lowest APR guarantee.  We will gladly pay you $250 if we cannot beat the best deal you can find.

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Veterans Beware of VA streamline sales tricks

Monday, July 18th, 2011

As a branch manager here at Low VA Rates, a division of Flagship Financial Group, I constantly talk to Veteran or military home owners who are skeptical about VA streamline offers they are getting in the mail, on the internet, over the phone and even some in their home from a live person.  In many cases the information being given or received is legit, clear and straightforward.  Unfortunately, we do sometimes hear about information that is being shared from a loan officer, telemarketer, or other bank employee that is not completely true and at times, down right illegal!

I hope to be able to share today some tips or tricks for anyone looking to refinance a VA loan via the VA streamline loan program so that regardless of who you are using or intend to use, you can feel a bit better about what you are being told.  Here are the basic facts about a VA streamline loan that pretty much all marketing pieces you get or see will outline:

  • No appraisal (true by VA rules, but most lenders will require one.  Low VA Rates does NOT require one)
  • No credit score minimum (true by VA rules but almost always each bank/lender will want some sort of minimum) Low VA Rates is case by case and has approved below 550 FICO scores on a VA streamline.
  • No employment/income verification needed. (again true by VA) We will want to make sure you are employed or receive disability or SS or something.
  • We have been told Mortgage Investors Corporation or MIC regularly requires money out of pocket or upfront.  Again, this is allowed, but we do not see any need to do this.

Now here are some tricks or things to use to try and discover if someone is being deceptive or planning a bait and switch:

  • If the lender wants money upfront or out of pocket at the time of application. (VA does not require this and there is no reason for it) If you are being asked for money or a deposit up front, history has shown this is almost always a sign of bad things to come.
  • If the lender tells you they can close you in 5-7 days this is almost always to lure you in.  Can loans close that fast?  Yes, but normally speaking it is not possible.

The VA streamline loan is by far the most popular loan around today for Veterans and military home owners.  You of course, have to have a VA loan now to take advantage of this VA IRRRL or Interest Rate Reduction Refinance Loan.  Please apply on our site or give us a call if you have any questions.  We look forward to assisting you.

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Low VA Mortgage Rates Stay Low, VERY LOW VA RATE

Wednesday, July 13th, 2011

It seems like I have been telling people for the past 2 years or so that VA interest rates were not going to be going any lower.  There were many time that in that window of time that I was right, however overall rates, VA rates especially, have continued to go lower and stay low.  It is times like right now when I wish for many reasons I had the benefit and blessing of a VA loan.

I bought my home in 2007 and even put down 20% on the purchase of the home.  Bad news for me is not only is all that equity gone, but I am also stuck at 6.5% rate even though interest rates are at 4.25% for 30 years or 3.25% on the hybrid loan.  I could be saving literally $800 a month or more if I could streamline refinance but that is not available on a conventional loan.

What is so amazing about the VA mortgage streamline refinance is that you can refinance even if your home has no value or equity.  You could have bought your home in 2007 at 250,000 and now it is worth 175,000 but you can still streamline your VA loan.  Perhaps the downturn in the US economy has affected your credit rating or FICO score?  If this is the case, as bad as that can be, it does NOT disqualify you from the VA streamline program.

Some of the benefits of these extremely low VA rates today are:

  • lots of savings monthly from streamlining
  • easier to decide to streamline
  • the streamline allows you to skip some mortgage payments if done correctly
  • many many more.

If you have a VA mortgage please apply here or give us a call at 866-569-8272 so we can show you what the VA streamline can do for you.

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VA loans with Citi mortgage should be streamlined with Flagship Financial

Wednesday, June 29th, 2011

Something that most military home owners are not aware of is that brokers or mortgage companies that have access to wholesale rates sheets can get them a much lower rate than if they (Veteran) were to call Citimortgage themselves.  This may not make a lot of sense on the surface but if you have ever shopped at Costco or Sam’s club then this example may help.

Why can Costco sell you a bottle of shampoo cheaper than if you were to go directly to lets say Johnson and Johnson’s website and buy it directly from the supplier?  The answer is simple.  Costco has negotiated huge discounts due to the volume of shampoo they buy, due to the fact that they (costco) spend money marketing and selling the shampoo and now this is money that Johnson and Johnson will not have to pay to move their product.

VA mortgage loans are very similar.  Citibank of course has its own loan officers, branches and offices and is certainly willing to do their own loans through what is referred to as a “retail channel.”  A retail location is like the Citi bank on the corner or in the shopping plaza.  If you were to call Citi mortgage directly as a consumer you will work with their retail division and get great service and decent rates.  However, if you call Flagship or any other broker that has access to Citimortgage’s wholesale rates, you will get a much lower rate.

I am not a veteran and do not have a VA loan of course.  My entire mortgage profession has been spent working on VA loans and assisting military families with their home loans.  The other day Citimortgage contacted me directly because I have a loan with them on a rental property of mine and they asked me if I wanted to refinance.  I will keep this story short, but the rep at Wells when I showed him what wholesale rates I could get on my own, simply told me he could not compete and I should do it myself.

So for those of you with VA loans at Citi what does this mean to you?  I am not trying to suggest that Citimortgage is ripping you off or that you should not refinance straight through the retail loan officer, but I do want to make you aware of your options and suggest seeing what Citi mortgage can do for you and then contacting Flagship Financial or another broker and see what they can do for you.

There has never been a better time than now to streamline your VA loan and take advantage of seriously low VA interest rates.  Flagship Financial is dedicated to assisting you with any VA home loan questions you may have.

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VA loans with Bank of America should be streamlined with Flagship Financial

Wednesday, June 29th, 2011

Something that most military home owners are not aware of is that brokers or mortgage companies that have access to wholesale rates sheets can get them a much lower rate than if they (Veteran) were to call Bank of American themselves.  This may not make a lot of sense on the surface but if you have ever shopped at Costco or Sam’s club then this example may help you get a better grasp on this.

Why can Costco sell you 20 lbs of filet mignon cheaper than if you were to go directly to lets say your local butcher and buy it directly from them?  The answer is simple.  Costco has negotiated huge discounts due to the volume of meat they buy, due to the fact that they (costco) spend money marketing and selling the meat and now this is money that your local butcher will not have to pay to move their product.

VA mortgage loans are very similar.  Bank of America of course has its own loan officers, branches and offices and is certainly willing to do their own loans through what is referred to as a “retail channel.”  A retail location is like the Bank of America bank on the corner or in the shopping plaza.  If you were to call Bank of America directly as a consumer you will work with their retail division and get great service and decent rates.  However, if you call Low VA Rates, a division of Flagship Financial or any other broker that has access to wholesale rates, you will get a much lower rate.

I am not a veteran and do not have a VA loan of course.  My entire mortgage profession has been spent working on VA loans and assisting military families with their home loans.  The other day Bank of America contacted me directly because I have a loan with them on a rental property of mine and they asked me if I wanted to refinance.  I will keep this story short, but the rep at B of A when I showed him what wholesale rates I could get on my own, simply told me he could not compete and I should do it myself.  Here is an excerpt from that email:

I understand……what you saying is that wholesale is at a price of 104.00 ( i assume they want to get paid) so they can give you 3 points….and we are at 101.00…..

My manager has been with Bank of America when it was Countrywide  for 15 years and he says there is no way we can be 3 points away from wholesale, but you know what you’re doing and if you can get it I would jump on it too..

So for those of you with VA loans at Bank of America what does this mean to you?  I am not trying to suggest that Bank of America is ripping you off or that you should not refinance straight through the retail loan officer, but I do want to make you aware of your options and suggest seeing what Bank of America can do for you and then contacting Flagship Financial or another broker and see what they can do for you.

There has never been a better time than now to streamline your VA loan and take advantage of seriously low VA interest rates.  Flagship Financial is dedicated to assisting you with any VA home loan questions you may have.

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The VA Streamline in California (IRRRL) can Save Military Personnel Big Bucks Every Month

Tuesday, June 21st, 2011

There are so many servicemen and women, and retired veterans who are struggling, financially, in our current economy. Many of them are trying to find ways that will help them pay their bills and put food on their tables every month. A program called the VA streamline will allow them to refinance their VA loans, with very little qualifying. It will help lesson their monthly financial struggles.

Why the VA streamline loan program?

The VA streamline in California loan program, which is also known as the Interest Rate Reduction Loan (IRRRL), is designed to help our military men and women, along with veterans, to refinance their VA loans easily and fast. This loan can usually reduce their monthly mortgage payments by hundreds of dollars, if not more.

By refinancing, there will be more money for military personnel and their families each month. They will be able to afford the necessities that they need without financially struggling. It will just make life a whole lot easier.

Besides lowering the interest rate, the IRRL can be a useful tool to refinance an adjustable rate loan to a fixed one. It can also be used to get a 15 year loan, instead of having a 30 year loan.

Simple qualifications

Simple qualifications have been put in place so that almost any military personnel who applies will get approved. Basically, if you have a VA loan, a 600 or higher credit score, have not been 30 days late on your current VA loan in the past year and had your loan for at least ninety days, you will qualify. There are no prepayment penalties with the VA streamline in California IRRRL, no upfront fees and the cost of refinancing can be put back into the loan. The refinancing cost is lower than usual.

If you lost your job, you can still qualify

Even if you have lost your job, have no income, no savings and no assets, have judgments, liens or if you are in collections for back monies owed, you can still be approved.

Take advantage of the low interest rates

The VA streamline loan is a government backed loan. Active duty men and women or veterans can be approved very fast and hassle free. With the interest rates at an almost low historical level, taking advantage of this loan would be a great way for them to have extra money in their pockets each month.

If previously tried to refinance, try again: New rules

The VA streamline in California IRRRL is the best loan on the market today. If any military personnel have tried previously to refinance and did not qualify, reapplying would be the thing to do. Some of the rules have been changed making it easier than before to refinance.

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VA Streamine: Save Military Personnel Possibly Hundreds Monthly-Rock Bottom Interest Rates

Friday, June 10th, 2011

Many Americans are trying to save money anyway they can. Cutting costs by stretching their dollar on food, clothing and medicine helps. But, being able to reduce large expenses on a monthly basis, would be the most help. A lot of people have refinanced their homes. Now, with the VA interest rates hitting close to or being at rock bottom, active or inactive servicemen and women who currently have a VA loan, can save big money every month. They can refinance their existing VA loans under the VA Streamline Refinance Program.

A 620 Fico score or home appraisal no longer needed

If you have already tried to refinance under this loan program and failed, it would most likely benefit you to try to refinance again. As of April 18, 2011, the rules have changed for refinancing with the VA Streamline Refinance Program. Previous failed attempts might not be a problem for you now.

A Fico score of 620 or an appraisal is no longer needed. Also, this loan addresses the difficulties with your current VA loan being more than what your home is worth.

Some VA interest rates are as low as 2.75 percent with an APR of 2.45 percent. These rates are historically at low amounts. In many cases, hundreds of dollars can be saved each month on your mortgage payment.

Quick and easy loan approval

The VA Streamline Refinance Program is designed for active and inactive military personnel to take advantage of the very low interest rates. It was set up to make it easy and quick. Also, there are some places that will pre-approve you in just 60 seconds.

Other qualifying features that this loan has are:

Your existing VA loan has to be up to date on its monthly payments. You can not be behind.

There cannot be more than one-30-day late mortgage payment made on your existing VA loan within the last 12 months.

Employment and income verification will probably be needed.

A refund of your existing escrow account can be made to you.

You cannot receive any cash back funds from the refinance.

After the loan is approved, you can skip up to two monthly payments.

American military personnel and their families can widely benefit from the VA Streamline refinance of their existing VA loan, especially since the VA interest rates are very low. It will just save a lot of money each month for them. They can use the financial boost to help get caught up on other important bills. Families can stop skimping on their food, clothing and medicine expenses. Reducing monthly mortgage expenses will ease the money crunch that seems to be never ending.

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Posted in Home Values, VA Credit Score Info, VA Loan, VA Refinance, VA Streamline Refinance, va interest rates | No Comments »

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