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Bill Black CMP
Loannetwork LLC, Vancouver
1001 Main Street Suite A
Vancouver, WA 98660
bill@billcblack.com
360-326-8891
www.aofdowntown.com
Remember, your referrals are the lifeblood of my business. Thank you for remembering me. Hope you enjoy this newsletter.
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November 17, 2009
 What a short pause
All logic would have to say that the markets would pause after such a big run and Dow 10,000 seemed to be the ideal spot. Indeed, the markets have seesawed above and beyond the 10,000 mark, with a contraction of approximately 5.0% from top to bottom. But then an interesting thing happened. As soon as all the big economic numbers were released and digested, the markets hit the second week in November with all guns blazing. Now one strong week does not mean the rally is going to continue, but it is interesting that the markets would start moving positively so quickly after the weak employment numbers were released. Obviously, the markets are satisfied with a tepid recovery.
And why should the markets not be happy with a weaker recovery? There is a lot to like about the economy not gaining strength too quickly. For one, oil prices should remain subdued. Higher oil prices can make the recovery weaker. Also, rates should stay low. Low rates can support an economic recovery that is more sustainable. Finally, with the concern about government spending, inflation will be a threat. A slower recovery has the potential to hold off that threat indefinitely. Of course, the markets could have just been reacting to the good news that the tax credit for homeownership was extended and expanded. With low rates and housing prices, real estate is quite a bargain and a government subsidy will serve to boost demand as we go through the typically slow winter home-buying season. If demand runs high during the winter, the spring market could be very strong.
 The Markets. Last week rates moved to their lowest level in five weeks. Freddie Mac announced that for the week ending November 12, 30-year fixed rates averaged 4.91%, down from 4.98% the week before. The average for 15-year fixed fell to 4.36%. Adjustables were also down with the average for one-year adjustables falling slightly to 4.46% and five-year adjustables decreasing to 4.29%. A year ago 30-year fixed rates were at 6.14%. “Rates eased further over the week, helping to promote an affordable home-purchase market and stimulate refinances,” said Frank Nothaft, Freddie Mac vice president and chief economist. “This comes at a time when house price declines are moderating and consumer demand for prime mortgages at commercial banks has picked up. The National Association of Realtors® reported that national median sales price of existing homes fell 11.2 percent in the third quarter relative to the same period last year. Moreover, almost 20 percent of the top metropolitan areas experienced positive annual growth, compared to only about 12 percent in the first quarter of this year.” Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.
Current Indices For Adjustable Rate Mortgages
Updated November 13, 2009
|
Daily Value |
Monthly Value |
|
Nov 12 |
October |
| 6-month Treasury Security |
0.16% |
0.16% |
| 1-year Treasury Security |
0.32% |
0.37% |
| 3-year Treasury Security |
1.36% |
1.46% |
| 5-year Treasury Security |
2.28% |
2.33% |
| 10-year Treasury Security |
3.45% |
3.39% |
| 12-month LIBOR |
|
1.234% (Oct) |
| 12-month MTA |
|
0.544% (Oct) |
| 11th District Cost of Funds |
|
1.272% (Sept) |
| Prime Rate |
|
3.25% (Dec) |
 Most states continued to experience rising existing-home sales in the third quarter, with prices moderating in many metro areas, according to the latest survey by the National Association of Realtors®. Total state existing-home sales, including single-family and condo, increased 11.4 percent to a seasonally adjusted annual rate of 5.30 million units in the third quarter from 4.76 million units in the second quarter, and are now 5.9 percent above the 5.01 million-unit pace in the third quarter of 2008. Sales increased from the second quarter in 45 states and the District of Columbia; 28 states and D.C. saw double-digit gains. Year-over-year sales were higher in 32 states and D.C. Lawrence Yun, NAR chief economist, said the tax credit is a significant factor. “We can’t underestimate just how powerful a catalyst the first-time home buyer tax credit has been for the housing sector,” he said. “It’s given buyers the confidence they needed to get off the fence and take advantage of extremely affordable housing conditions. The buying conditions this year are the most favorable on record dating back to 1970, but the tax credit is allowing buyers to set aside any reservations about waiting for a better deal.” Source: National Association of Realtors®
Buyers of new homes can expect much healthier and more energy-efficient properties than they get if they buy an older home. Tom Molidor, president of Molidor Custom Builders in Clarendon Hills, Ill., recommends installing a high-efficiency furnace close to the part of the house the family uses the most, instead of putting it in the basement. A 3,000-square-foot home that is top-rated for energy efficiency can be heated in the greater Chicago area for less than $50 a month, estimates R.A. Faganel Builders. Other commonly included energy-friendly features include double- or triple-paned low-E windows that not only keep out cold air but also make homes quieter. Source: Chicago Tribune
One in 20 Americans say they plan to buy a home within the next year, and they’re most likely to be 34 years old or younger and living in the South or West, according to a survey released last week. Roughly a quarter of potential buyers said the No. 1 reason they would buy now is because prices appear to have bottomed out. That reason topped bargain-priced foreclosures, worries about rising interest rates and a wide selection of homes. The survey, conducted for Move.com, a real estate listings site, reveals how Americans are responding to a nascent and fragile housing recovery after three years of price declines. The percentage of buyers thinking of jumping into the market was down slightly from a March survey, but up about 1 point from a poll in June. Home prices rebounded this summer at an annualized pace of almost 7 percent, according to the Standard & Poor’s/Case-Shiller home price index. Source: Associated Press
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November 9, 2009
REO Units Providing Mortgage Opportunities
Some financing programs for real estate-owned assets are connecting first-time homebuyers with a particular property and a chance to buy a home where perhaps they couldn't afford one otherwise., especially in markets like California and parts of the Northeast where prices are more expensive.
For Fannie Mae-owned REO, for instance, financing for these properties, which tend to be in the lower price range at around $150,000, is offered through HomePath. The program is unique because no appraisal is required, LTV is at 97% and private mortgage insurance is not mandatory. We can also go up to 90% on a Non-Owner Occupied.
"We try to make it easier and faster to finance a Fannie Mae-owned REO," said Jane Severn, director of new business initiatives at Fannie Mae, on the REO Financing Options panel at the Five Star Default Servicing Conference & Expo.
"These assets provide a unique opportunity for first-time homebuyers to purchase a home and pick up a value often. It's a good time for those people who are taking advantage of the buyer tax credit as it exists now," she said.
Prospective properties are listed on the site at HomePath.com. Every property has a logo by it that will say either HomePath Mortgage or HomePath Renovation Mortgage, which allows for minor repairs to the property. For a HomePath Mortgage, there is a minimum of 3% down for a primary residence, and 10% down for investment property. We at Loannetwrok LLC has made this type of loan our specialty.
About 60% of properties are eligible for both the mortgage and the renovation mortgage. Another 30% are eligible for a renovation mortgage only. "That leaves you with about 10% of our properties not eligible for any financing," said Ms. Severn.
She says Fannie Mae is having trouble finding lenders that do construction lending now and who have the skill set to oversee renovation projects in local markets.
In many cases, REO agents are able to negotiate the buyer's closing costs to be paid for based of our experience.
Combine that with the $8,000 tax credit and it's a fantastic tool to enable quite a few first-time homebuyers who are able to come up with the downpayment.
I can't think of any servicers or outsourcers we deal with that don't offer closing-cost assistance.
Most everyone is aware of the government financing that is currently available to borrowers, including FHA and VA.
Jeff Gideon, vice president of REO at Residential Credit Solutions, says it's very difficult to take the standard REO property and make it go through FHA without any hiccups.
"We do try to identify those items that will be a lender-required repair and we'll try to fix those things upfront so we can have an easier time once we get the property under contract and into closing. We don't want to get halfway through and have the appraiser come back and have things come up," Mr. Gideon said.
"We try to know our markets and eliminate some of that timeframe."
When an REO hits the market, his company may have as many as 10 offers on the second day.
"REOs are hot. It's becoming so competitive from the buyer's side. If you put two properties side by side, one's an REO and one's an owner-occupied for sale, that REO is going to command. It will be sold first."
When an offer comes in, Mr. Gideon said it is important to have a good, strong prequalification. There is typically a 30% fallout rate. Often, 60 days down the road the loan falls out based on something that could have been identified on day one. During that time the carrying costs on a lot of these properties is excessive.
We have a 100% success rate at the Vancouver Branch says Bill Black- Branch Manager. We take pride in that success as all homepath loans go through our unique process of "underwriting" a loan at the application process and identifying solid borrowers.
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Bill Black CMP
Loannetwork LLC, Vancouver
1001 Main Street Suite A
Vancouver, WA 98660
bill@billcblack.com
360-326-8891
www.aofdowntown.com
Remember, your referrals are the lifeblood of my business. Thank you for remembering me. Hope you enjoy this newsletter.
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Bill Blacks Mortgage Minute
November 3, 2009
Now The Big Question
Well, we finally had a positive quarter of economic growth which was a bit stronger than expectations. We should be celebrating. Only, it is hard to celebrate with the backdrop of these numbers: 7.2 million jobs lost and 6.3 million foreclosures during this severe recession. No one thinks that the job losses and foreclosures will end because of one positive quarter. So the logical question is, where do we go from here? In this respect, this week’s employment numbers are even more important than last week’s snapshot of the economy which is a preliminary estimate of a quarter already behind us. Because employment is a "lagging" indicator, we are not looking for employment growth. However, the markets will be looking for improvement with regard to the number of jobs lost.
There is no doubt that the markets are contemplating the same question. We must ask whether the market contraction last week was a classic "sell on the news" scenario or recognition that we have seen our best quarter for the foreseeable future. The fact that Congress appears to be ready to extend the homebuyer tax credit is really good news in this regard. On the other hand, we know that one day these temporary fixes will be gone and the economy will have to stand on its own two feet. The markets have done a pretty good job predicting this positive quarter. Let us hope the struggle of the past few weeks does not represent a prediction of a one-shot deal because we need several positive quarters to declare the recession behind us.
The Markets. Rates moved up slightly again in the past week. Freddie Mac announced that for the week ending October 29, 30-year fixed rates averaged 5.03%, up from 5.00% the week before. The average for 15-year fixed rose to 4.46%. Adjustables were also up slightly with the average for one-year adjustables rising to 4.57% and five-year adjustables increasing to 4.42%. A year ago 30-year fixed rates were at 6.46%. "Rates for 30-year fixed loans have averaged just below 5 percent this year, which is the lowest 10-month average since the survey began in 1971," said Frank Nothaft, Freddie Mac vice president and chief economist. "As a result, refi activity has accounted for almost seven out of 10 applications on average this year, according to Freddie Mac’s survey. Economic data releases this week offered mixed signals as to the current state of the housing market. For example, total existing home sales jumped 9.4 percent to an annualized rate of 5.57 million homes in September, the strongest pace since July 2007, according to the National Association of Realtors. However, new home sales unexpectedly fell 3.6 percent to 402,000 houses, the weakest since June of this year. Nonetheless, stronger housing demand has lowered the inventory of unsold existing homes in September to the lowest since January of this year and for new homes the lowest since November 1982, which should help stabilize falling house prices." Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.
Current Indices For Adjustable Rate Mortgages
Updated October 30, 2009
|
Daily Value |
Monthly Value |
|
Oct. 29 |
September |
| 6-month Treasury Security |
0.17% |
0.21% |
| 1-year Treasury Security |
0.40% |
0.40% |
| 3-year Treasury Security |
1.52% |
1.48% |
| 5-year Treasury Security |
2.44% |
2.37% |
| 10-year Treasury Security |
3.53% |
3.40% |
| 12-month LIBOR |
|
1.271% (Sept) |
| 12-month MTA |
|
0.632% (Sept) |
| 11th District Cost of Funds |
|
1.412% (Aug) |
| Prime Rate |
|
3.25% (Dec) |
Senators agreed last week to extend a popular tax credit for first-time homebuyers and to offer a reduced credit to some repeat buyers. The tax credit provides up to $8,000 to first-time homebuyers but is set to expire at the end of November. Senators agreed to extend the existing tax credit for first-time homebuyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader Harry Reid, D-Nev. The tax credits would be available to homebuyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes, said a congressional aide, who spoke on condition of anonymity because he was not authorized to publicly discuss the deal. Senators were still negotiating the expansion of a separate tax credit that lets money-losing businesses get refunds for taxes paid in previous years, providing them with an immediate source of cash. Source: Associated Press
Home buyers are scaling back, according to a quarterly survey by the American Institute of Architects, choosing energy-saving amenities over recreational ones. Two-thirds of architects say their clients want better insulation, including double- and triple-glazed windows, water-saving devices, and solar panels. The most popular bonus room is a home office, with 46 percent of architects saying these rooms are gaining in popularity. The architects identified a sharp decline in the demand for high-end kitchens and baths and said that there was also less interest in game and media rooms and in-law suites. The AIA said residential billings, a leading indicator of activity, rose to 38 in the second quarter, up 20 points from the first quarter of 2009. Source: Reuters News
The American dream of homeownership is still a good bet, financial advisors say firmly. Despite the downturn in the last couple of years, homes have still appreciated an average of 4 percent a year since World War II. Plus, it’s a leveraged investment; a 10 percent down payment yields a 1,000 percent return if the price of the home doubles. There are also valuable intangibles. Owning a home provides independence, security, community, and a roof over the owner’s head. No one can say that about investing in stock. Source: Associated Press
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![]() What Can You Expect From Bank of America/Countrywide Home Loans ?
So I was looking for a funny logo to add to today’s post and I ran into a very interesting website-www.bankofamericasucks.com I am not going to say what I used for a google search but lets just say the search pretty much covered the 4 words in the website. No need for a funny picture when that website pretty much clears up the facts.
So the question of the day has become “I have Bank of America Mortgage- what are the chances of a loan mod?” Everyone knows that Bank of America bought noxious Countrywide a couple of years ago and now Bank of America is one of the largest banking institutions in our nation.
What you can expect from Bank of America / Countrywide
Bloomberg.com reported that Bank of America was 1 of the worst performer’s amongst the biggest U.S. banks in modifying loans for struggling home-owners. As of August 5, 2009 they had only modified 4% of eligible loans; http://www.bloomberg.com/apps/news?pid=20601208&sid=aaiRx.lyFD4I
Don’t expect much if any assistance from them. They have improved their mortgage modification eligibility review process, but they lack on execution.
They took $45billion in TARP funds (the government asset relief funds that is designated for banks to use to assist home-owners to remain home-owners without the bank taking large losses) but it doesn’t appear that they have used these funds to build an efficient modification department.
They have signed up under the Home Affordable Mortgage Program to provide relief to those home-owners that are struggling and have a Fannie Mae or Freddie Mac mortgage. But in fact, they are substituting the rules (see the Home Affordable Mortgage Program page) by adding that they will not reduce the mortgage payment if it ends up being less than 50% of the original mortgage payment. This is absolutely not a rule under the Home Affordable Mortgage program. This program states that if the home-owner qualifies, the mortgage payment would be reduced to 31% of their monthly gross income (including property taxes, home-owner insurance, association dues if applicable and repayment of escrow advances). It does not limit the reduction of the mortgage payment to any more than 50%. Unfortunately, if you receive this response, what really can you do about it?
Modification request instructions can be found at: http://www.bankofamerica.com/loansandhomes/financial-difficulty/ The instructions look very inviting, but don’t be fooled. In fact, if you consider the fact that Bank of America recently testified to our Senate that they are confused about which borrower qualifies for a modification and that the paperwork may be the problem as they are confused about what to review and obtain, well then that should be enough for you to understand what you can expect from them. Especially, when they thus far have only modified 4% of eligible borrowers.
We give Bank of America a poor rating and strongly urge you to seek professional representation in order to ensure that your rights are protected and to afford you the very best chance to obtain a mortgage modification or a default solution.
I have entrusted my referral sources to NW Loan Modification Center in Vancouver, Wa. which is a local attorney firm with expertise in default solutions- Loan Modification, Short Sale Negotiation, Short Refinance Negotiation, as well as all aspect of Bankruptcy. They can be reached at 360-89-NWLMC.
I just reviewed a short sale approval and wanted to note a few things from Saxon Mortgage aka Hillbridge Capital Group for those wading through the quick sand in Short Sales:
New Contact Number for Saxson: 866-241-1901
Purchase Price $210,000
$174,300 Net 83%
$8,000 to 2nd Lien holder (Note- NEVER increase this amount by allowing Realtor commissions or having seller come in with more money or be prepared to go back to the negotiation table at the 11th hour)
Q: How much they will penalize Real Estate Agents if a short sale acceptance letter needs to be extended?
A: The new guidelines state that if a loan does not close on time they will deduct 1% penalty from Real Estate Fees- never has it been more important to close on time.
I have heard of the opportunity to negotiate this to a 2 week allowance for a per diem but make sure you get it in writing!!! Also if I was listing agent I would request the buyers agent to be responsible for the 1% fee if late close.
Q: How they are the new "FHA" when it comes to how much they will accept as a net in their pocket?
A: 83% which is close to what FHA accepts
Q: How much they will allow a 2nd mortgage?
A. Offered 10% of principal ($80,000 Second Lien)
Bill Black CMP
Branch Manager- Vancouver Branch
Loan Network LLC
Mortgage Banker
Click here for Bills Blog
LinkedIn: Bill Black
Bills Blog
Homepath Homes- No Appraisals, No MI, 90% NOO!
360.326.8891 Office
360.910.3290 Mobile
360.326.1861 Fax
My core business is based upon trust and honesty with it’s clients; we feel that this is the most important component of any business relationship. We constantly measure our business processes to ensure that our clients receive the highest level of service possible.
Wa #520-CL-49546
I have had 3 new pre-approvals from the weekend- All three of the clients were looking forward to the $8,000 tax credit, so today I will blog about the current status of the tax credit statue as well as some highlights around this.
The $8,000 tax credit cannot be used as down payment-
Out of these 3 buyers one was already pre-approved via an online lender at Quicken Home Loans but after our 20 minute phone consultation he was not told that his tax credit was not available as a down payment! I only hope the application taker “forgot” to ask where the down payment was coming from but this should have been apparent when his assets in the bank equaled less then 1% of his overall purchase price- so no 3.5% which is a red flag proving that we have no seasoned down.
So just to be clear- THE $8,000 TAX CREDIT IS NOT AVAILABLE FOR ANY PORTION OF THE 3.5% FHA REQUIRED DOWN PAYMENT.
What if I buy a duplex?
You can only get 10% of purchase price or $8,000 max. So a $70,000 house you would only earn $7,000 in credit. With a duplex you own half as an owner occupied and the other half as an investment so depending on the price makes all the difference- so a $160,000 duplex- half would be $80,000 and 10% of that is $8,000 so you get maximum credit. A duplex under $160,000 would only get 10% of half of the price.
Now to fully disclose I am not a CPA and certain things could affect this answer but if you ever have questions I refer all my accounting questions to the smartest CPA in the County- John Caughell CPA at 360-573-9800 or johnc@golden-cpas.com he is truly the best.
Timeline to qualify-
So as we go down one of the biggest unknowns to first time homebuyers we ask will the $8,000 be extended another six to 12 months? Could it be possible to have it increased? We have 14 weeks left for the $8,000 tax benefit with the buyers required to be fully closed by Nov. 30th.th and not just under contract. I have a feeling that short sale offers will see less activity as a result of this timeline and the fact that SO many of us have been burned by playing the hurry up & wait game while the servicing agents and banks fumble the ball and make up new rules as they go. That means funded and wired by Nov. 30
What is Happening Today-
The two biggest housing trade groups- the 1.2 million-member National Association of Realtors and the National Association of Home Builders- are spending the month mounting unusually intense grass-roots lobbying campaigns to make case for extending the credit, and maybe even expanding it. The effort is targeted first at the districts of members of the house of the two tax writing committees- House Ways and Means and Senate Finance- this is very strategic and could have been beneficial if we had that support for the HVCC issues we are now dealing with instead of a 1 page document that basically stated to suspend the HVCC until further review.
Economic “Ripple Effect”
According to Economists at National Association of Realtors 300,000-350,000 additional houses will be sold as a result of the tax credit. Each home is forecasted to contribute $63,000 in downstream “ripple effect” elsewhere in the economy, they say- sales of furnishings, appliances, lawnmowers, landscaping, renovation materials, plus moving expenses.
For those who know me understand that I always say “you always have to know where the information came from” so on this bullet point I realize the number seems high but having $8,000 of free money and buying a home at the bottom of the market seems to really make people feel better about spending. Accurate or not I feel it is a benefit that may be one of the only Obama plans that I have witnessed that worked without a flaw.
Path Forward
Bills are already pending in both houses to extend the credit for another year. Some have fantasized about the bill that Chris Dodd, D-Conn., and Chairman of the Senate Banking Committee is co-sponsoring with Georgia Republican Johnny Isakson that would raise the tax credit to $15,000! Meanwhile, both the Realtors and builders are pushing not only for extension but for the credit to cover ALL home purchases in 2010. I forecast some sort of an extension but I would caution spreading false hope and if we can capture the money for clients today that is soon-certain and positive they receive the $8,000 credit.
The MARKET
Pretty Good Day in the Market
Treasuries and mortgages rallied today; see-saw back and forth after the hammering treasuries and mortgages took on last Friday on the jump in existing home sales in July and the strong rally in equities. Today the stock market opened better following the 156 point jump in the DJIA Friday, but by mid-afternoon the equity markets rolled over and ended unchanged on the day.
Tomorrow Treasury will auction $49B of 2 yr notes, beginning three days of new issuances raising a total of $109B. Markets appear to be thinking demand for the new issuances will be strong as they have been for the past two months. Demand for US Treasury debt remains firm from indirect bidders (mainly foreign central banks). The 2 yr note usually does see good demand as it fits well with banks’ assets and liabilities. Banks are hoarding cash these days while telling the media there is little loan demand. Banks have the straight faced ability to paint the picture anyway they like. There is scant loan demand because banks will only lend to those borrowers that can get along without it.
We are currently 24 hours in UW
12 hours in Docs
12 hours in funding….. So let’s go have some fund!
Bill Black CMP
Branch Manager- Vancouver Branch
Loan Network LLC
Mortgage Banker
Click here for Bills Blog
LinkedIn: Bill Black
Bills Blog
Homepath Homes- No Appraisals, No MI, 90% NOO!
360.326.8891 Office
360.910.3290 Mobile
360.326.1861 Fax
My core business is based upon trust and honesty with it’s clients; we feel that this is the most important component of any business relationship. We constantly measure our business processes to ensure that our clients receive the highest level of service possible.
Wa #520-CL-49546
Hello and GOOD Friday to you,
The good news is we have some ROCKIN turn times- the bad news is rates are starting to sneak up on us as anticipated. I have never seen so much volatility. Rates under 6% are still good but it’s hard for me when I just had rates at 5.25 less then a week ago. The market will swing back and forth but now but I think what REALLY needs to be identified is the new TILA regulations and HVCC appraisal issues that will be killing deals as well as slowing down turn times and charging buyers for multiple appraisals if they are dealing with web based brokers or lenders that do not have bank lines.
I have said this before and I will say it again- a realtor and a lender HAVE to be a team in this challenging market. My phone rings 2-3 times a day to try to “help” a fallout due to a poor appraisal or a poor underwriting decision. Most of these items should have been identified in the very beginning of the transaction and could have had a solution. A majority of these are when the buyer is using web based company such as Quicken Loans or Dietech. They have no idea of the issues and if a client was to only google the lender they would find numerous “ripoff.com” findings about these.
So before I get on my soap box- let’s not forget it’s FIRST FRIDAY and the downtown Vancouver area is booming this evening. There is something from 1220 Main Street restaurant all the way down to 1st and main at the West Coast Bank that is open house for appetizers and wine. The galleries are full of energy and some very interesting art and to end the evening at the glass shop watching them make hand blown glass objects is a perfect way for an affordable, entertaining Friday night! My 12 year old daughter even has fun with me on this walk about!
Current Turn Times as follows:
Underwriting: 12 Hours
Conditions: 12 Hours
Docs: 24 Hours
Funding Review: 48 Hours
*UW Turn Times start when file submission is complete.
*Doc Turn Times start when file has cleared doc prep and is ready to draw.
Our Current Rates for 8/7/2009 are as follows:
15 year fixed – 25 day lock – 4.875%
30 year fixed – 25 day lock – 5.75% at
*Based on o/o, r/t refi w/80% ltv
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Unfortunately Friday's bond market has opened down sharply following the release of stronger than expected employment numbers. The stock markets are reacting favorably to the data with the Dow up 136 points and the Nasdaq up 32 points. The bond market is currently down 28/32, which should push this morning's mortgage rates higher by approximately .375 - .500 of a discount point compared to yesterday's morning rates. (Already in the pricing above)
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The Labor Department reported this morning that only 247,000 jobs were lost last month and that the U.S. unemployment rate fell to 9.4%. It is always interesting to see the “revised” numbers 6 months later that are more accurate but hey- good news is good news. Both of these readings were stronger than expected. Analysts had forecasted a job loss of 328,000 and an increase on the unemployment rate of 0.1% to bring it to 9.6%. In addition, average hourly earnings also exceeded forecasts with a 0.2% increase.
Today's news was definitely negative for bonds and mortgage rates. It indicates that the employment sector is not as bad as many had thought. While it was still softening last month, it was at a much slower pace than expected. That helps support the theory that the recession may be nearing an end. In fact, some analysts are already stating they think it has ended. This is bad for bonds because economic growth often creates an environment with inflation concerns that make bonds less attractive to investors. The result usually ends up being higher mortgage rates as investors shift funds into a growing stock market.
Next week is another busy one for the markets and mortgage rates. There are several very important economic releases scheduled to be posted in addition to another FOMC meeting that can heavily influence bond trading and mortgage rates. None of them is due out Monday, but there is relevant data or events scheduled for every other day of the week. Look for more details on next week's events in Sunday's weekly preview.
If I were considering financing/refinancing a home, I would....
Lock if my closing were taking place within 7 days...
Lock if my closing were taking place between 8 and 20 days...
Lock if my closing were taking place between 21 and 60 days...
Lock if my closing were taking place over 60 days from now...
This is only my opinion of what I would do if I was financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
Be sure to say hi if you are downtown Vancouver this evening.
Bill Black CMP
Branch Manager- Vancouver Branch
Loan Network LLC
Mortgage Banker
Click here for Bills Blog
360.326.8891 Office
360.910.3290 Mobile
360.326.1861 Fax
My core business is based upon trust and honesty with it’s clients; we feel that this is the most important component of any business relationship. We constantly measure our business processes to ensure that our clients receive the highest level of service possible.
Wa #520-CL-49546
August 4th, 2009 – USA
FHA Suspends Taylor, Bean & Whitaker
I stopped using Taylor Bean & Whitaker about 3 months ago as I noticed their practices was not up to standards and now I see that wa s a very good decision. Here is the actual announcement HUD made today regarding TBWs suspension and the potential debarment of 2 of their top executives.
I was not that surprised to hear this since i got a call about 4 months ago from Taylor Bean asking for a copy of an appriasal our office closed with them in 2005! I couldnt beleive they lost the whole appriasal!!! To read more please read at www.billcblack.com
Hello first time home buyers and Investors,
Fannie Mae is offering special financing program on all the Bank Owned properties with benefits such as No mortgage Insurance, No Appraisal... http://www.utipu.com/app/invited/id/bdfbf211
Banks are bullies- but knowledge is power!
Appealing Short Sale Commissions-
I keep running into short sale transaction that are Fannie mae insured with only 5% Realtor commissions. This is assumed that it's required. Please read on to find out how you can maximize your earnings and appeal the bank that is trying to maximize thier income by reducing yours.
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Appealing Short Sale Commissions
In February, Fannie Mae instructed its servicers (Announcement 09-03) to honor the agent negotiated commission on a short sale, unless the commission exceeds 6%. This instruction is applicable to properties where Fannie Mae is the investor.
Important note: Servicers must continue to obtain any third-party approvals (i.e., private mortgage insurers) and those approvals may impact commissions.
If you are working on a short sale and believe a servicer is negotiating your commission outside the bounds of this Announcement, there is a new process for appealing the servicer's decision.
- Confirm that the loan is owned or guaranteed by Fannie Mae. With written permission from the homeowner (or in their presence), use the Fannie Mae Loan Lookup tool at www.fanniemae.com/loanlookup. Alternatively, the homeowner can call Fannie Mae's Resource Center at
1-800-7FANNIE (8am to 9pm Eastern Time).
- If the loan is owned or guaranteed by Fannie Mae, provide a copy of Announcement 09-03 to the servicer and negotiate an appropriate commission based on the listing agreement (up to 6%).
- If the dispute is not resolved, contact Fannie Mae at
1-800-7FANNIE. Be prepared to provide the property address, name of owner, and Fannie Mae loan number (if available).
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For those that have completed short sales you know how hard these can be and you REALLY deserve every penney coming to you. Drop me an email if you have any questions pertaining to short sales or if you need any assistance working as a team on the buyers side. These can be very tricky and having both lender and realtor working on these can lead to a greater success.
Bill Black CMP
360-910-3290
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Bill Black CMP
Vancouver,
WA
More about me…
Loan Network, LLC Downtown
Address: 1001 Main Street Suite A, Vancouver, Wa, 98660
Office Phone: (360) 326-8891
Cell Phone: (360) 910-3290
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