SDMortgagefinder's Blog

Mortgage Rate Weekly Wrap Up

Thor Funding & Investments, Inc. — Fri, 11 Dec 2009 15:08:25 -0600

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Mixed Week for Mortgage Markets

This week's economic news was mixed for mortgage markets. A speech from Fed Chief Bernanke pushed mortgage rates lower early in the week, but weak results in the Treasury auctions caused them to turn higher again later in the week. In the end, mortgage rates finished with little net change from last week.

Despite a stronger than expected November Employment report released on Friday, December 4, Bernanke came out on Monday and repeated the Fed's plans to maintain the fed funds rate at extremely low levels for an extended period of time. According to Bernanke, the Fed still expects the labor market to improve very slowly, so they are reluctant to remove monetary stimulus by raising rates. Fed officials believe that inflation will remain low for the next couple of years, meaning that there is little short-term pressure to raise rates.

Based on the results of this week's Treasury auctions, investors appear to agree with the Fed that there is little risk of higher inflation in the short-term, as demand was stronger than average for the 3-yr auction. Investors are far more worried about the risks of inflation in the longer-term, however, and the demand for the 10-yr and 30-yr auctions was very disappointing. The Treasury was forced to offer higher than expected yields to persuade investors to purchase the longer-term securities. Increasing yields reflect concern that the current deficit spending and monetary stimulus needed to help the economy recover will lead to higher inflation down the road. Since investments in mortgages have long-term time horizons as well, inflation expectations have a similar influence on mortgage rates.

Rates as of 1 P.M. PST with 30 Day Locks

Conforming 30 Year Fixed Rates Ended the Week at 4.500% with an APR of 4.678%

Conforming Jumbo 30 Year Fixed Rates Ended the Week at 4.75% with an APR of 4.862%

Also Notable:

Continuing Jobless Claims fell to the lowest level since February
The net worth of US households rose 5% during the third quarter
Oil prices fell to $70 per barrel from recent prices above $80 per barrel
The Fed purchased $16 billion in agency MBS during the week ending 12/9

Week Ahead

The big story next week will be the Fed meeting on Wednesday. No change in rates is expected, but investors will be closely watching for clues from the Fed about the timing of future rate hikes. The most significant economic data next week will be the monthly inflation reports. The Producer Price Index (PPI) focuses on the increase in prices of "intermediate" goods used by companies to produce finished products and will come out on Tuesday. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Wednesday. CPI looks at the price change for those finished goods which are sold to consumers. In addition, Industrial Production, an important indicator of economic activity, will be released on Tuesday. Housing Starts is scheduled for Wednesday. Leading Indicators and Philly Fed will round out a busy week.

Still recommend Locking your clients if ready to close within 30 days or less.

Have a Great Weekend Selling, and for CA call if you need assistance.

SDMortgagefinder

Best Regards

Pet's / They're More Like Family / Can't Believe What Some People Do

Thor Funding & Investments, Inc. — Thu, 10 Dec 2009 19:54:39 -0600

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Christmas is almost around the corner, so I hope that you don't mind if I divert off-topic for today. Like many, I am trying to wrap up the year end, and plan for 2010. Although I have survived another year, I hope that all of us can look forward to a better year next year. Yet, something happened yesterday which has bothered me as a pet lover since I got a call last night from my son about one of his dogs that I jokingly refer to as my grandpuppies.

My son last year relocated to Jamul, and of course took his two dogs with him from where we lived separately in Pacific Beach. Jamul is a great setting for families and pets with much of the area semi-rural. His home that he rents is on two plus acres with two separate gates to enter. This is especially convenient since we also own together a construction company in addition to our mortgage company.

I am sure that not everyone is a pet lover, and I can respect that although I don't know how one could not love a pet. Both of Dave's dogs are rescue dogs, and both are Akitas. Akita's have been know to be aggressive, but both of them are so lovable and friendly. Aggressive watch dogs they are Not...Lol. Cheech is the one pictured below and was rescued in 08 at one of the Dog Rescue events on Fiesta Island that usually takes place in August of each year. Cruzz, our other Akita is not pictured here, but was actually a rescue dog from Katrina. Shipped from the south to LA, and then to San Diego where Dave found him at a rescue center.

Yesterday, my son's wife found one of the gates half way open late in the afternoon. The gates are electronic, and always checked for closing when they leave, so to find the gate open was quite a surprise. Being rural, not many people come out there, but the road bordering the front receives a fair amount of traffic. Being close to the border, it is not totally out of the question to have people on foot coming through the area from time to time. Crime is below normal there, but one just never knows. So for now at least, the gate issue is still a mystery.

Obviously with the gate open, Cheech ventured out like many pets would do. Thankfully, Jeannette heard her neighbor from a distance of 30 to 40 yards shouting and came to see what was up. When she went out to check, the neighbor was shouting that she thought someone had hit one of the dogs. It was Cheech. Dave got home shortly after, and had to rush him to the Vet as he was bleeding from his mouth and nose enough to be worried even though he appeared to be walking alright.

We're still not out of the woods yet, but it appears that Cheech is going to be ok. The Vet checked him out for broken bones, but only gave Dave antibiotics to help him. He seemed to be walking ok, but today is moving around very slowly and sometimes yelps when he gets up. The Vet just told us to watch him carefully......check his ajks'l movements when we can, and watch for any changes.

I guess I am just awestruck how someone could hit an animal, and not stop to see if they were ok, or to try to find an owner close by. Maybe it's just me, but I know that if I had done so that I would have done something myself if need be.

So, there is my gripe. I am a real softy anyways when it comes to people or pets. Yet, I have to admit that I find a special place in my heart for any pets. Anytime one passes, I swear that I will never get another one or attached to them, but I'm sure that you know from my words that doesn't last long.

I just hope that by reading this that maybe you can pass this along. More importantly, I hope that any of us would stop to help an injured pet, even if it was not our own.

BTW........the gates are in the process of being paddle locked after exiting and entering. Even though they are electronic, and it might be a hastle, it's a lesson learned that won't repeat itself in the future.

Merry Christmas and pass the spirit along if and when you can.

SDMortgagefinder

Mortgage Rates Weekly Wrap-Up

Thor Funding & Investments, Inc. — Fri, 04 Dec 2009 17:50:21 -0600

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Today is Friday, December 4, 2009, and the financial markets ended up slightly down for the week. Yet, mortgage rates are still holding to all time lows, even though just slightly higher than the beginning of the week. Today was an erratic day in the financial markets with today's employment numbers. Although rates tanked this morning, we had three rate changes to the better for the day. Below is a synopsis of this week's news.

Employment Data Surprises

After several weeks of strong performance, it was a tough week for mortgage markets. Stronger than expected economic data and an improved economic outlook from the Fed increased concerns about future inflationary pressures. Rising inflation expectations result in higher yields, and mortgage rates increased during the week.

The big news this week was the Employment report. Against a consensus forecast for a loss of -125K jobs in November, the economy lost just -11K, and the figures from prior months were revised higher by 159K. This represented the strongest monthly data since December 2007. The Unemployment Rate unexpectedly dropped to 10.0% from 10.2% in October. While weakness remained in manufacturing and construction, the service sector added jobs. Average Hourly Earnings, an indicator of wage growth, rose slightly.

This week's housing data also exceeded expectations. October Pending Home Sales rose for the ninth consecutive month, increasing 4% to the highest level since March 2006. The index is up 32% from one year ago. Pending sales are based on contracts signed but not yet closed and are a leading indicator of housing market activity. The home buyer tax credit again provided a lift.

Also Notable:

The European Central Bank (ECB) made no change in rates
The Treasury will auction $74 billion in 3-yr, 10-yr, and 30-yr Treasuries next week
The Dow stock index reached a new high for the year above 10,500
The Fed purchased $16 billion in agency MBS during the week ending 12/2

Week Ahead

Next week will be a light one for economic data. The Trade Balance will be released on Thursday. Retail Sales, which account for about 70% of economic activity, will come out on Friday, along with Import Prices and Consumer Sentiment. In addition, there will be Treasury auctions on Tuesday, Wednesday, and Thursday.

Rates as of Closing Today for 30 Day Locks

Conforming 30 Year Fixed Closed at 4.500% with an APR of 4.700%

Conforming Jumbo 30 Year Fixed Closed at 4.750% with an APR of 4.862%

Recommendation for next week is to watch cautiously. Any clients closing within 30 days, we strongly encourage them to lock.

Have a great weekend selling, and if you need assistance please do not hesitate to call one of San Diego's loan experts. For more information, please visit us at:

SDMortgagefinder

MID-WEEK Rate UPDATE

Thor Funding & Investments, Inc. — Wed, 02 Dec 2009 22:53:43 -0600

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My Apologies.............I missed Last Week's report over the Thanksgiving Holiday as I was out of town.

I don't normally issue a mid-week report unless it is important/

Rates have Hit All Time Lows. The last Two Days have seen a slight Rise from the Lows this week.

Recommendation......................Consult Your Lender ASAP REGARDLESS OF WHO IT IS....... The Markets have reached new Lows over the Last Week, slight rise the last Two Days, but still at major Lows.

Tell Your L/O to Lock if the Client agrees to the Terms.

Can't Emphasize Enough.

SDMortgagefinder

Happy Thanksgiving Everyone

Thor Funding & Investments, Inc. — Tue, 24 Nov 2009 18:15:16 -0600

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I can't honestly say that this has been one of my best or easiest years to deal with. That said, I am still thankful for so many things including my family, friends, and health.

May Everyone at ActiveRain and Beyond have a wonderful and safe Thanksgiving Holiday.

HAPPY THANKSGIVING EVERYONE

SDMortgagefinder

Mortgage Rates Weekly Wrap-Up

Thor Funding & Investments, Inc. — Fri, 20 Nov 2009 17:59:55 -0600

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Here is today's market wrap for Friday, November 20,2009

A highly anticipated speech on Monday by Fed Chief Bernanke on the economic outlook revealed no change in the Fed's stance on short-term monetary policy. There were also few surprises in the economic data released during the week. The monthly inflation readings continued to show that inflation is not a cause for concern in the short-term. As a result, mortgage rates edged just slightly lower during the week, remaining at historically low levels.

The decline in the value of the dollar has received a great deal of attention lately. While Fed officials rarely discuss the value of the dollar, Bernanke assured investors that the Fed is closely watching exchange rates. However, he then reminded investors that the Fed's dual mandate is to promote full employment and to keep prices stable. According to Bernanke, the value of the dollar is just one of many factors affecting inflation, and the Fed is not concerned by the movement in the dollar so far. With a fragile economy and high unemployment rate, he suggested that the Fed intends to keep the fed funds rate at very low levels. Tightening monetary policy to strengthen the dollar would hurt the economic recovery and slow job creation. After the speech, the value of the dollar fell to the lowest level since August 2008.

If foreign investors expect the value of the dollar to continue to fall, it may pose a risk for mortgage rates in the future. Foreign investors historically have been major buyers of mortgage-backed securities (MBS). When the dollar falls, the value of US assets to foreign investors in their own currency declines, making US investments less rewarding. With the Fed scaling back its MBS purchases over the next few months, a drop in foreign demand would further pressure yields higher to fill the void left by the Fed.

Conforming Fixed Rates ended the day today at 4.375% with an APR of 4.573%. **

Conforming Jumbo Rates here in San Diego ended today at 4.625% with an APR of 4.747%. **

** Rates quoted are for 30 Day Locks

Also Notable for the Week

October Core CPI inflation was a tame 1.7% higher than one year ago

October Housing Starts dropped 11% from September

The Treasury will auction a record $118 billion next week

The Fed purchased $16 billion in agency MBS during the week ending 11/18

The Week Ahead

A wide range of economic data will be released during the holiday-shortened week ahead. Existing Home Sales will come out on Monday. GDP, Consumer Confidence, and the FOMC Minutes from the November 4th Fed meeting will be released on Tuesday. Durable Orders, Personal Income, Core PCE inflation, New Home Sales, and Consumer Sentiment will all be packed in on Wednesday. In addition, there will be Treasury auctions on Monday, Tuesday, and Wednesday. Mortgage markets will be closed on Thursday for Thanksgiving.

Advice for next week is to watch the market closely if you have any clients closing soon who have not locked.. Recommendation for your clients is to tread cautiously, and lock if possible.

Good luck, and have a great weekend. Best Wishes also for a Happy Thanksgiving Holiday.

Best Regards

SDMortgagefinder

Realtors- This Might Be a Helpful Site for You in Your Marketing

Thor Funding & Investments, Inc. — Wed, 18 Nov 2009 19:31:17 -0600

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I am certainly not the most knowledgeable person when it comes to the Internet or computers, but I recently stumbled upon a site that has proven helpful for my son and I in our business. We own two companies; one is a custom home and remodeling company, and the other is a mortgage company. The site allows you to post and create slide-shows of pictures that you down load to the site. It's called Slide.com and you can access it Here. The best feature is that it is FREE.

I also think this site could prove useful for Realtors in general marketing and display of your listing pictures. You can even downloan or link your pictures to your website. We have begun to use it in our online marketing, and correspondence to our prospective building clients. While I am still learning about many of the sites features, it has proven useful so far.

Again, I am still learning about many of it's features. Most of my issues have been due to lack of computer expertise. One feature that I have not learned how to get around yet is how the slide-show downloads initially. The site gives you three options on how to view. I prefer the Gallery option, but when it downloads, it comes up initially in what they term " Original View ".

Below is a sample of my son's work ( You can change the viewing method once it downloads ):

Sample Here.

I hope this proves useful for you. If you have any better suggestions, I am always open to new ideas.

Best Regards,

SDMortgagefinder

Mortgage Rates Weekly Wrap-Up

Thor Funding & Investments, Inc. — Fri, 13 Nov 2009 18:56:41 -0600

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Today is Friday the 13th, but the financial markets actually ended up for the week with respect to mortgages as rates continue to improve or hold to historic lows.

Since the Fed meeting on Wednesday of last week, mortgage rates have edged slightly lower for most of the week with minor bumps up periodically. The Fed indicated that monetary policy would remain on hold for quite a while. The Fed acknowledged that eventually rates would have to increase;however, their message was clear that it could take some time to do so.

Conforming fixed rates ended the day today at 4.50% with an APR of 4.678%.

Conforming Jumbo here in San Diego ended today at 4.75% with an APR of 4.851%.

Clearly the rates this week ended up better than they started earlier in the week. Bloomberg announced today that Consumer Sentiment dropped again in November as job losses were on the minds of workers and Wall Street traders. This helped to improve rates with multiple rate adjustments down today by several key lenders. To view the article, click on the link to Bloomberg below:

http://www.bloomberg.com/apps/news?pid=email_en&sid=ap_ThMQkTaJg

The Week Ahead

The most significant data next week will be the monthly inflation reports with the Producer Price Index due out on Tuesday, and the Consumer Price Index which clearly the most watched coming out on Wednesday. Retail Sales will be announced on Monday. Also notable, the Treasury will announce the size of the upcoming auction of Treasuries on Thursday.

Advice for next week is to watch closely. Recommendation for your clients is to tread cautiously, and lock if possible.Good luck, and have a great weekend.

Best Regards

SDMortgagefinder

Will RESPA and Good Faith Changes Take Control Away from Realtors ?

Thor Funding & Investments, Inc. — Thu, 12 Nov 2009 18:26:30 -0600

For many years now, all purchase transactions that I have handled have most certainly had the Escrow and Title companies chosen by either the listing agent or selling agent. In some cases, those companies were either solely or partially owned by the real estate brokerages involved in the transaction. Newly enacted changes by HUD may bring some new changes for Realtors when it comes to choosing what company will handle these functions.

Although I have done some fairly extensive research in this area, note at the time of this writing there still remain many unanswered questions relative to the changes by HUD that take effect on January 1, 2010. Specifically, I am talking about the new Good Faith Estimate forms that must be used by all lenders on and after this date. On December 2nd, I have to attend a class by my compliance counselor who is going to explain to those of us in attendance just what this means for us in complete detail.

HUD has been working on these changes for some time now with industry experts giving advice or comments of disagreement on these proposed changes. The new Good Faith Estimate ( GFE ) is supposed to make any costs associated with a purchase or refinance transaction more transparent, and easier for the client to understand. While some in the industry laud these changes, others either remain skeptical or disillusioned by the new process.

Don't get me wrong. We all believe in disclosure. It should be as accurate as we can make it for our clients, yet sometimes even we lenders get surprises in the end for charges that are not totally in our control. With these new changes, lenders as well as consumers, need to pay close attention. Why? Since some deviation of charges, some with variance allowances, will have to be eaten by the lender if they deviate too much. Below is a brief breakdown of some of the new changes that are taking place:

Starting January 1st, loan charges and settlement fees will be spelled out on this revised, more consumer friendly version of the GFE. Charges will fall under three broad categories on the form. By the way, the form now increases from one to three pages.

The three new categories include: Fees that cannot increase from up front estimates to final closing. Fee estimates that come with slight variance ability up to 10% in aggregate from upfront estimates. Finally, fees that can increase without limit since the lender has no control over them due to the fact that the amounts are difficult to predict weeks in advance.

Charges with zero tolerance changes include the lender's or broker's origination fee, processing and underwriting fees. Also included are the lender's or broker's discount points based upon the interest rate quoted, and local transfer taxes.

Charges that are subject to a 10% variance, include services required by the lender, and the lender chooses the service providers such as appraisals, credit, lenders title insurance and settlement services where the borrower chooses a firm on a list approved by the lender, and charges for recording by local governments. Under this category, any variance over 10% of combined total charges must be eaten or absorbed by the lender. As a lender and broker, title and escrow are where I often see most of the deviation at closing.

Charges that can increase without limit include any lender required charges where the borrowers choose a title insurance or escrow company that is not on the lender's approved list, cost of homeowners insurance, daily interest charges on the loan, and the amount of the initial deposit by the borrower into an escrow account.

Any cost estimate you receive from the lender or broker are required to remain available for 10 business days. Interest rates can change unless locked by the lender and borrower.

A new HUD 1 settlement statement is also being enacted by HUD to compare all fees on the GFE to those at settlement. Borrowers will then be able to compare what they were initially estimated to what they are actually being charged at closing.

The last page of the new HUD 1, itemizes the three categories of fees and compares them directly with actual fees at closing.

While I am all for complete and honest disclosure, this new enactment will certainly bring about some changes. One distinct change in mind is who will now control title and other settlement providers. Most consumers may want to opt for lender approved providers since they will have more latitude against the lender if charges increase by more than 10 %.

After my formal class on this in December, I will do my utmost to update you on any changes in the process.

For more information on this, please visit HUD's website below detailing this change as well. A sample GFE can also be obtained there:

http://www.hud.gov/news/release.cfm?content=pr08-175.cfm

FTC Delays Once Again the " Red Flags " Rule set for November 1st

Thor Funding & Investments, Inc. — Mon, 09 Nov 2009 16:51:43 -0600

Forum,

Within the confines of my blog, you may or may not have read my announcement on October 30th of the enactment of this new ruling affecting lenders and some Realtors.

The same day that I wrote this blog, the FTC once again made what was their 3rd delay in this ruling effective date.

To read more about this, go to the link below:

http://www.ftc.gov/opa/2009/10/redflags.shtm

Zillow, Did They Shoot Both Feet Off Today? Are Realtors Their Next Victim?

Thor Funding & Investments, Inc. — Thu, 05 Nov 2009 19:49:38 -0600

I have been active on Zillow for almost more than three years now. While I understand business and reasoning for profits on sites such as Zillow and Active Rain or any other business for that matter, it seems that Zillow may have just "Screwed the Pooch" so to speak today with their new roll out of their mortgage marketplace.

While I am not an attorney, it appears at first glance that Zillow could be in for some unsuspected surprises from changes that they initiated today online.

For weeks now Zillow has announced coming changes to lender participants who have paid a fee to register their profile and company information on their website. Unfortunately, Zillow was and still can not accurately disclose their new pricing mechanism to any of us who participate in their mortgage quoting section. Zillow plans to charge a fee which can vary for competing with other lenders who wish to quote interest rates to borrowers who submit loan requests. In Zillow's initial release of information, they indicated that these leads might range from $ 0 to $ 100 or more PER customer CONTACT.

I could write for hours detailing the various pros and cons of their new idea to generate revenue. All you have to do is go to Zillow, and search under advice for mortgages to get a gist of what I mean.

While I could ramble on for hours about the horror stories of the Zillow Mortgage Marketplace feature, it has been evident that Zillow is truly only interested in increasing revenue vs. being a good tool for borrowers and lender participants. What was once a manual system where lenders input responses, is now a system where lenders can automate their quotes through what Zillow terms API providers.

A client places a request, and instantaneously through the API providers they get 30, 50 and many times over 100 responses to their request. Not only is the client overwhelmed by all of the responses, but those of us who participate have charged for months that the policing of this forum is truthfully lacking. Most of our complaints stem from those lenders who quote outrageous rates, or omit alot of pertinent information regarding closing costs.

Since Zillow's recent announcement, I have watched and read comments from both lender participants and Zillow emplyees about the pending changes. Yes, I had my concerns, but I also agreed to hang in there until the dust settled.

I have for years and continue to do so by answering questions from Zillow visitors from across the nation. I'm a little irked since my response count is higher than what shows as Zillow introduced a new system a year or more ago that whipped out my comments count detail. I can tell you that for all these years, I have daily answered questions in their forum. Quite often I am contacted by those in other states that I can not help since I am only licensed in California. I still answer these calls, and can honestly say that I have gotten enough loans from Zillow to warrant doing so. I figure that if I am helping someone, it will eventually come back to me by following " The Golden Rule ".

Many other lenders such as myself have been faithful Zillow participants which has helped to contribute to their success.

Today, we had the doors slapped in our faces. Below are the areas if critical concern.....some of which are legal in nature. I use an outside compliance consultant to ensure that I am keeping up to date with all the changes......and believe me there have been and will be many more coming down the pipeline:

First, we participants were assured by Zillows representatives that we could still participate on the question and answer boards free of charge, And that potential clients could still reach us through our profile information without a fee. Those of us who previously manually quoted responses to client loan requests can no longer participate in that feature without paying a $ 250 deposit which will be used to deduct charges when Zillow goes live with the charging mechanism for "Customer Contact" in December.

Zillow stated that until the system was fully tested and analyzed for fee structure that no charges would be made until the official December date. We still had to make a deposit to participate, but charges would not occur until final roll-out.

Today, many of us participants were shocked after we investigated the email from Zillow this morning. Most noticeable was the fact that those of us who paid to become " Confirmed Lenders" through license check had our contact information changed. Bogus toll free numbers were put in place, our email and web site addresses deleted from our profiles. IT GETS BETTER!

So much for Zillow's assurance that customers on the chat boards could contact us for information or possible business!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Part of Zillows new feature to help fight bogus customer requests is the monitoring and recording of calls made to lenders through the site. Zillow has apparently assigned bogus contact numbers which are then routed to our real numbers. Per Zillow, any calls made would be RECORDED. WHEN I DIALED MY BOGUS NUMBER, I HEARD NO SUCH RECORDING SAYING THIS CONVERSATION MIGHT BE RECORDED.

Now I am not an attorney, but from many of the responces on the board, this is the equivalent of wire tapping and in violation of FTC rules.

As a lender.........and some Realtors too, the new Red Flag Rules which went into affect November 1st by the FTC covers various privacy issues regarding client information. Zillow will have access to tapped conversations with any clients we talk to. This for a fact is a clear violation of the Red Flag Rules as privacy is thrown out the window.

Besides all the clear violations that appear to be seeping from this new process, we staunch supporters of Zillow feel like we have been slapped in the face after helping to make Zillow what it is today.

One key point, Realtors and those lenders who are not "Confirmed Lenders" still have all of their contact information in tact on their profiles.

Gee, am I missing something here. So unless I front the $ 250 for potential future charges for contact, I am SOL for all the guidance and support I have given to Zillow and customers over the past years.

As Realtors, are you the next in line to be taken advantage of by Zillow? What's in store for you?

To read some of the posts in today's mortgage section, go to this link:

http://www.zillow.com/advice-thread/Zillow-Mortgage-Marketplace-Pricing-Policy-Change/294764/

What say you?

Mortgage Rate Weekly Wrap-Up

Thor Funding & Investments, Inc. — Fri, 30 Oct 2009 18:33:53 -0500

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This week was not unlike many with rates initially edging up this week over economic news and comments from various politicians on Capital Hill regarding spending plans for the country.

Today's weaker economic news sent Bond yields lower with many lenders reporting rate changes to the better several times. One of my lenders improved rates four times today alone.

Conforming fixed rates ended the day at 4.50% with an APR of 4.665%.

Conforming Jumbo here in San Diego ended at 4.75% with an APR of 4.873%.

Clearly the rates this week ended up better than they started earlier in the week. Two key market segments had alot to do with today's improvements. First was a report on week consumer spending and confidence. The second, was news on new job worries. Both can be detailed at the link below to Bloomberg:

http://www.bloomberg.com/apps/news?pid=email_en&sid=a2g02NI0x4wA

Advice for next week is to watch closely. Good time to suggest to your clients who are buying to lock in their rates while they are still at semi-historic lows.

Good luck, and have a great weekend.

Best Regards

SDMortgagefinder

RED FLAG RULE TAKES EFFECT NOV. 1ST- REALTORS, ARE YOU AFFECTED?

Thor Funding & Investments, Inc. — Fri, 30 Oct 2009 14:17:29 -0500

At first glance, some of you may be asking yourself, why is he directing this at me?

A while back, I wrote about the upcoming Red Flags Rule proposed by the FTC which has been placed on hold two or three times this year. The day of reckoning has come with the rule becoming effective on November 1st of this year.

Within the confines of the legislation, it is somewhat ambiguous to some industries whether they are covered by this new legislation. Obvious businesses include financial institutions, mortgage brokers and such. Within the pages of guidelines and requirements, it mentions that real estate agents can also fall under this category.

The Red Flag Rule's key ingredient is " Identity Fraud ", and it's purpose is to have those businesses that are affected comply with certain requirements to safeguard their clients personal information. Because of the broad definitions, Realtors could and will be effected by this new ruling.

Fines for non-compliance are steep with some cases potentially open to license revocation.

While you may laugh, or casually dismiss this post and topic since you think it will not apply to you, all agents should approach your broker of record to see what steps they have taken to be in compliance. Your brokers failure could also come back to haunt you.

For further information about this new regulation, please visit the FTC website identified below where the Red Flags Rule is available, and tools to ensure compliance are available:

http://ftc.gov/bcp/edu/microsites/redflagsrule/resources.shtm

While I would rather be bringing brighter news, this new ruling will affect many of those who would never have dreamed that they fall under it's jurisdiction.

Best Regards,

Rates at Historic Lows for Consumers! What a Roller-Coaster

Thor Funding & Investments, Inc. — Thu, 08 Oct 2009 18:41:04 -0500

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Just when I think I've seen it all during my career, I get another surprise to add to the list.

Rates have been dropping sharply over the last week with rates for some borrowers with excellent credit and equity to lock at 4.50% with an APR of 4.654% on loans up to $ 417k.

Consumers also still have an opportunity with Fannie Mae's Conforming Hign Balance loans to get very low jumbo rates ranging 4.625% with an APR of 4.769%

This temporary High Balance Conforming Limit is set to expire on December 31, 2009 unless the government and Fannie Mae along with Freddie Mac agree to extend this limit. If it expires, those in the Jumbo category will see rates spike up to previous norms where they were generally almost more than 1 % higher than the regular conforming loans at or below $ 417k.

I encourage all Realtors and prospective clients to lock in now on these historic low rates. As a Realtor, I am sure that you are helping your client navigate the loan maze out there. My recommendation is to lock with your lender as soon as you can. Rates change daily, sometimes more than once or twice a day depending on market sentiment.

Realtors...I would advise you to cousel your buyers to lock with their lender as soon as possible. Those consumers reading this blog.....I encourage you to do the same with your lender.

Best Regards,

Wayne L. Brown
President
Thor Funding & Investments, Inc.
CA Dept. of Real Estate, Real Estate Broker
Brokers License # 00906571
Corp. License # 01848367
http://www.sdmortgagefinder.com/index.htm

Social Media Overload ! Hoping for Answers

Thor Funding & Investments, Inc. — Tue, 22 Sep 2009 18:38:27 -0500

Forum

I've been on Active Rain here now for a while, and enjoy both reading and writing on occasion. I also participate on Zillow, FaceBook, and Linkedin.

Candidly, I think we all do this for enjoyment, as well as, to get our name out there for recognition in the hopes that one of our blogs helps someone...and just maybe a client once in a while or new business relationship.

I often tease my son that I only know enough about computers to be dangerous. Yet it seems with everything that comes before us, it can sometimes be daunting and overwhelming. Am I using the right key words and tags, proper placement, etc. More important, am I staying within the terms of agreement?........not sure about you, but they can be wordy and ambiguous too at times.

I try to research some of the pieces on SEO and such. I try to change up my website content with up to date and current relevant information.

While I appear to get some recognition......no business yet from this avenue, I have found myself wondering.........really....is this worth it? Or is it better to just go back to basics with the face to face in the field.

Just looking for some candid feedback. Thanks in advance for any insight that you might have on the subject.

Best Regards

Insurance for Bloggers ? What's Next?

Thor Funding & Investments, Inc. — Mon, 21 Sep 2009 19:14:59 -0500

Forum

I have from time to time read blogs here on AR talking about the potential for problems surrounding copyright infringements? I happened to come across an interesting article the other day that discusses the potential need for bloggers insurance. Granted the article had more to do with defamation issues and such, but it really made me stop to pause.

I blog fairly regularly here on AR and a few other select sites. While most of my posts are intended to be informative relating to the real estate industry including finance, I have on occasion expressed my views. I believe that I have always been civil and truthful. I do not shy away from responding what might be termed a strong fashion when I come across a new policy or regulation that is being proposed against our industry. On more than one occasion, I have given politicians, regardless of party,my two cents worth-especially when I feel that they are way off base.

Earlier in the year, I got a call from a Congressional staffer for a prominant Congressman whom I will not name, attacking me for writing about proposed changes affecting the lending industry. Calls like that I can handle as I always insist on getting my facts straight.

The article and subject does raise an eyebrow at least for me since I refuse to keep quiet when I feel very strongly about something affecting our livelihood. Yet, since we live in the times where some people will sue even just to make a buck, it has to make you wonder just where our society is heading to these days.

I guess it just boils down to this at least for me as I try to follow these rules when blogging.

When writing an article or blog critical of someone or something, I do my due diligence to ensure that I have my facts straight. Secondly, even when it's a politician, I try to ensure that I attack the idea or proposal rather than the individual. Sometimes that can be difficult when you can't believe what is being proposed or discussed by them in some fashion.

At least for right now, I have no intention of paying for media liability insurance.

For a review of the article presented by Bloomberg, please follow the link provided below:

http://www.bloomberg.com/apps/news?pid=email_en&sid=aEqiwjlSjLZ4

While the article may not pertain to either you or I, it does make one stop to ponder.

Best Regards

Heads Up ! Conforming Jumbo Limits are Expiring December 31,2009

Thor Funding & Investments, Inc. — Thu, 17 Sep 2009 19:09:27 -0500

Forum

Just a friendly reminder.....I know it's early, but it's never too early to put the word out when times seems to pass by so fast. Maybe, I'm just getting old, and it just seems that way.

Earlier this year, Fannie and Freddie extended the Temporary Conforming Jumbo Limits through December 31st of this year. In some cases, lenders may also impose earlier cut off times so that loans can be sold on the secondary markets.

So if you have any would be buyers sitting on the fence, or a friend or two that fit this category and might want to refinance, you might want to give them a big nudge.

I also encourage you to write your Congressman or Senator to request another extension of this feature. It has certainly helped us here in California.

Best Regards

Rates Have Taken a Tumble

Thor Funding & Investments, Inc. — Thu, 27 Aug 2009 22:38:58 -0500

Realtor Forum Rates have taken a sharp drop this week with Conforming Rates hitting a low of 4.75% with an APR of 4.836% this week. Despite somewhat mediocure news about the economy, Bonds have scored well for the week. Recommendation is to Lock your rates, Encourage your L/O's to place locks for the next 30 to 34 days on your purchase transactions. Best Regards Wayne L. Brown President Thor Funding & Investments, Inc. www.SDMortgagefinder.com Make It a Positive Day

"Red Flags" Law Delayed Again! This May also Pertain to Realtors Too!

Thor Funding & Investments, Inc. — Thu, 30 Jul 2009 19:51:15 -0500

I'm not sure about you, but it seems every time that I turn around something new is changing in our business. For months now, we have been hearing about this and that new law or regulation taking effect.

My consultant that I use for my mortgage business pretty much scared the life out of me when she went over the " Red Flags" requirements with me in a conference call in late April. The new law was to take affect in June and then was postponed until August 1st. Now today, we get notification that it is again being delayed until November 1st of this year.

For those of you who are Realtors, I am told that this new law also affects you, so if you are not familiar with it, you should be.........or at least mention it to your company Broker.

Here is a version of the email I recieved today. Below the comment, I will have the link to the official site detailing the new law.

"To assist small businesses and other entities, the Federal Trade Commission staff will redouble its efforts to educate them about compliance with the "Red Flags" Rule and ease compliance by providing additional resources and guidance to clarify whether businesses are covered by the Rule and what they must do to comply. To give creditors and financial institutions more time to review this guidance and develop and implement written Identity Theft Prevention Programs, the FTC will further delay enforcement of the Rule until November 1, 2009."

Below is the link to the "Red Flag" Law:

http://www.ftc.gov/opa/2009/07/redflag.shtm

Best Regards,

Wayne

New Laws Effective July 30th Will Affect Clsoing Dates on Your Transactions

Thor Funding & Investments, Inc. — Wed, 22 Jul 2009 15:42:31 -0500

The mortgage industry is certainly undergoing many changes to help provide homebuyers and homeowners better information when it comes to financing a home. July 30^th is the day a new Federal Law takes effect which will have a large impact on when an escrow can close on a home purchase or refinance.

In 2008, the Housing and Economic Recovery Act ( HERA ) was passed by Congress, and the Federal Reserve Board published the regulations under the Truth and Lending Act. The regulations were written to provide a more transparent, level, and fair regulation of the real estate industry; to add additional steps to help prevent deceptive lending practices; and to protect the consumers by making them more informed- and therefore more confident- in their home financing choices.

In summary, HERA amends the Truth in Lending Act (TIL ), implemented through Regulation Z. It has a number of provisions including the Mortgage Disclosure Improvements Act, which changes the Truth in Lending Act requirements surrounding early and final disclosures and the timing of when fees can be charged.

Note: This law effects all purchase and refinance transactions involving 1-4 family units that are primary residents or second homes.

Below are four important areas for all consumers, Realtors, lenders, and closing agents to remember when new financing is required. It could, and most certainly will, affect the timing and closing of any transaction. Therefore, all parties involved should keep this in mind, especially when planning for purchase transaction closing dates.

•1. In the past, borrowers and sellers would agree on a closing date, and then the service providers-including lenders-would work as best they could to meet the date of closing. In the future, contracts can still be written with a specific closing date, but all parties need to take into account that the earliest any home financing transaction can close is 7 business days after the borrower is issued his or her initial mortgage disclosure from the lender. Note: Saturdays will be counted as a business day, except for Federal Holidays.

•2. Upfront fees cannot be collected by the mortgage broker or lender ( excluding credit report fee) until the initial disclosures are received by the borrower. Disclosures are considered received by the borrower 3 full business days after mailing, allowing fees to be collected on the 4^th business day. Examples include appraisals, application fees, etc. This also means that the appraisal cannot be ordered until the 4^th business day as well.

•3. Speaking of appraisals, the borrower must be provided with a copy of his or her appraisal a minimum of 3 business days prior to closing. The appraisal is considered received 3 business days after mailing. The borrower has a right to waive this requirement if the borrower believes the 3 business day required review is not necessary for any reason whatsoever.

•4. Lastly, an increase of more than 0.125%(1/8^th) in the Annual Percentage Rate(APR) from the initial Truth in Lending Disclosure(TIL) requires the TIL disclosure to be revised and reissued to the borrower. The borrower must receive a revised TIL disclosure at least 3 business days before closing, providing the borrower with the same time required to determine if the borrower is comfortable with his or her loan choice. The TIL disclosure is considered received 3 business days after mailing.

Considering all the things that could come up or change, or finalized throughout the course of the transaction, there are a number of things that can affect the APR. Consequently, it is critical on the front end to ensure that estimated fees are as accurate as possible.

This will be even more important for the lender/broker on purchase transactions. In most cases, the Title and Escrow companies are not normally selected by the lender. Personally, I have often called escrow and title to get fees, and later to have changes or miscellaneous fees added by one or both which slightly affected the costs. Now with this change, it will become even more critical for us lenders to be as detailed as possible.

Some lenders have even come out and recommended we brokers over quote all fees. This might at first appear to be the right thing to do given the changes taking place on July 30^th, but for cost conscious buyers, we lenders could over quote, and then appear to be more expensive than another competing lender.

Things at least for the immediate future are going to get a little dicey when competing for business. The best suggestion that I can offer is for all parties involved to communicate as best as possible, and to plan well ahead to avoid shortfalls. Many are recommending 45 day escrows vs. the 30 day escrows of the past with the ability to close early.

HARP Program / Making Home Affordable

Thor Funding & Investments, Inc. — Mon, 29 Jun 2009 16:00:54 -0500

The Home Affordable Program is designed to assist those homeowners who are not able to refinance due to drastic reductions in valuation due to the economic and housing crisis. The program allows borrowers to refinance up to approximately 105% loan to value their current first trust deed or first mortgage only.

Important questions that the borrower needs to address are the following:

1. Are they the owner of a 1 to 4 unit property?

2. For Fannie Mae, is thier loan guaranteed or owned by Fannie Mae. Freddie Mac has their own separate program similiar to Fannies with slightly more restrictions.

3. Is their mortgage payment current with no lates of 30 days or more within the last twelve months?

4. Do they believe that the current first mortgage balance is equal to the current market value of their property?

If they can answer yes to all of these questions, they may be able to qualify for this program.

Note: At the time of this writing, lenders can only go up to the maximum conforming limit in their area. $ 417,000 is the current limit here in California. Exceptions are made in selected areas. Most important, lenders have announced that borrowers who have loans above this limit may fall under this program when they are permitted to lend up to the High Conforming Balance Limits sometime within the next 30 days.

I encourage any members who come across customers, clients, friends, or associates who may fall under this category to contact their local mortgage broker or lender.

For more information, please refer to the site listed below:

http://www.sdmortgagefinder.com/FNMA_HARP_PROGRAM_TO_105.htm

Read This AND ACT On It if You Wish to Correct the New HVCC Issue Facing Our Industry !!!

Thor Funding & Investments, Inc. — Thu, 25 Jun 2009 13:08:10 -0500

I was fortunate enough to read another post today on this issue. The only thing missing was information as to how we can attempt to enact change with this new horrible new policy.

I probably don't have to tell you...maybe you have experienced it for yourself the horrible consequences of the new HVCC requirements regarding appraisals and how they are now required to be handled.

This post is Not meant for mere points...don't care if AR adds them or not....It is about helping to save our industries from irrational government changes to the system.

Please read the attached email from the San Diego Chapter of the National Association of Mortgage Brokers AND follow their suggestions. FAILURE TO DO SO WILL ONLY ALLOW THE PROBLEM TO CONTINUE. BTW pass this along if you deem appropriate.

HVCC CALL TO ACTION
New contact information for Fannie Mae

To: All Mortgage Brokers, Real Estate Agents, Appraisers, Lenders, Home Builders, Title Agents, and Consumers
From: Marc Savitt, CRMS, President- National Association of Mortgage Brokers
After more than a year of exhaustive negotiations with Fannie Mae, Freddie Mac, James Lockhart, Director of FHFA (GSE Regulator), and NY Attorney General Andrew Cuomo, NAMB believes the time has come for your individual voice to be heard.
In order for this "Call to Action" to be effective, we ask that you fully participate, encourage others to join the action and continue calling and emailing everyday, until advised to stop by NAMB. This will NOT be a one day action!
We have received hundreds of e-mails through the hvcc@namb.org e-mail address outlining specific cases where the HVCC has created delays and additional costs to consumers. NAMB has categorized and compiled a report of the examples received, which was sent to FHFA Director James Lockhart. Please use your own examples in your conversations with legislators, regulators, or their staff. Also, please visit the NAMB HVCC Resource Center for additional information and documents on the HVCC.
Who will you be contacting?
NY Attorney General Andrew Cuomo's Office: (212) 416-8000, Internet Complaint
Federal Housing Finance Agency (FHFA): (866) 796-5595, director@fhfa.gov
Fannie Mae: (800) 732-6643 Internet Complaint (new HVCC-specific form)
Freddie Mac: (703) 903-2000, Internet Complaint
Senators, Representatives and Governors: Click here for contact information.
Also, please contact your local TV and Newspaper outlets.
Below are talking points and background information to assist in your conversations. Please remember we are all professionals and should conduct ourselves accordingly in any communication with the above parties. For the most successful and influential calls, it is important to concisely quantify how the HVCC is affecting your consumer and your business.

Talking Points:
1)         NAMB conservatively estimates (breakdown below) that the HVCC is costing consumers over 2.8 BILLION dollars a year in extra fees, created by long delays (extended lock-in fees) and higher appraisal costs.
2)         Unregulated Appraisal Management Companies (AMCs), who have been the subject of several misconduct investigations, are the centerpiece of the HVCC. The original Cuomo investigation involved a federally chartered bank and an AMC.
3)         AMCs are driving honest appraisers and mortgage brokers from business, eliminating competition, increasing costs to consumers and reducing state revenue. The HVCC is causing significant delays in real estate transactions, hurting real estate agents, title companies and other third parties reliant on turnaround time.
4)         HVCC does nothing to reduce fraud, as it legitimizes the same failed model, which was the subject of Attorney General Cuomo's investigation.
5)         No Portability! Consumers are "trapped" with a specific lender. If a better deal becomes available with a different lender, the consumer is forced to pay for another appraisal.
Background:
I.     Lack of Portability
A. Lenders are not allowing borrowers to transfer appraisals, regardless of the reason.
B.   Forces the borrower to pay for another appraisal and wait for a new appraiser to be assigned and complete it, increasing the total cost and time needed for obtaining a home. Delays in turnaround times also cause the borrower to miss rate lock deadlines and possibly face penalties charged by the lender.
C.   In a poll conducted by NAMB, 75.8% of respondents said that 0% of their appraisals are portable since the enactment of the HVCC.
II.    Lack of Quality
A. AMCs are assigning appraisers from a different municipality, county, or even state to appraise the target house, therefore unfamiliar with the neighborhood and unable to produce an accurate appraisal.
i.    Because of this, the HVCC is forcing appraisers to be in direct violation of the Uniform Standards of Professional Appraisal Practice (USPAP) for jurisdictional competence.
B.   Because AMCs pay appraisers such low fees, those assigned appraisers willing to do the work are often inexperienced and fail to adequately appraise the home.
III.   Increased Cost of Appraisals
A. The minimum increase we have seen in direct consumer cost is $150 per appraisal. That, coupled with the drastically increased appraisal turnaround times that impose extended lock periods at an average expense of $561.95 per loan, is now costing consumers an estimated additional $711.95 per transaction.
B.   $150.00 - minimum increase per appraisal
$561.95 - average loan amount of $224,778 at .25% for extended lock period
             $711.95 - average total increase per transaction
                  x 3,870,552* - 2007 HMDA report of residential real estate loans originated
              $2,755,639,496 - $2.8BILLION in increased fees to consumers!
IV.   Articles Illustrating the Effects of the HVCC
A. The Appraisal Bubble - The Center for Public Integrity
B.   The Cure is Worse than the Disease - Appraisal Press
C.   Appraisals Roil Real Estate Deals - The Wall Street Journal
i.    Feel free to forward these articles and/or reference them in your conversations.

Contact SDNC

phone. 858-523-9990 X 203
email. sdnccamb.events@gmail.com
website. www.sdnccamb.com

California Moratorium on Foreclosures Effective Monday-Somewhat Confusing!

Thor Funding & Investments, Inc. — Sat, 20 Jun 2009 13:12:55 -0500

The following information came to me yesterday by email from the San Diego Chapter of CAMB- The California Association of Mortgage Brokers. I called to get permission to display in my blog.

It provides some key information on the new foreclosure moratorium set to take effect on Monday.

Notice while reading how confusing the state has made this, since banks are given exceptions. Enjoy the reading, and I hope this can be helpful to you Realtors out there.

After a severe economic storm of more than 365,000 California foreclosures since early 2007, the state's long-awaited 90-day foreclosure moratorium law goes into effect Monday.

But it doesn't mean foreclosures will stop.

Supporters acknowledge the state is likely to see thousands more foreclosures before the crisis subsides. The law, indeed, goes into effect as lenders are ramping up repossessions following expiration of earlier moratoriums, according to housing trackers.

But the California Foreclosure Prevention Act, passed as Assembly Bill X2 7 by lawmakers in February and signed by Gov. Arnold Schwarzenegger, raises a new hurdle in the foreclosure process.

Backers say it will make lenders try harder to keep borrowers in homes. Starting Monday, loan servicers must prove to the state they have comprehensive loan modification programs in place - or be denied rights to foreclose on their own schedules.

"You have voluntary programs that they don't have to do," said Assemblyman Ted Lieu, a Torrance Democrat who was the author of the bill. "This creates an enforcement mechanism to force them to do it. The hammer is the 90-day foreclosure moratorium, which they all hate."

The law will largely press lenders to follow the Obama administration's Making Home Affordable Program that began in March. That encourages lenders to cut interest rates or rewrite loans to 40-year terms to get payments below 38 percent of a borrower's monthly income. Other options include reducing principal and tacking missed payments to the back of the loan. Under the law, California officials also can encourage short sales or deeds in lieu - options in which banks accept less than owed - for borrowers who want to leave or don't qualify for modifications.

"The vast majority of large servicers should have no trouble complying. They have already complied with similar requirements at the federal level," said Dustin Hobbs, spokesman for the California Mortgage Bankers Association.

As the nation's first statewide moratorium law of its kind, according to Lieu, hopes are it will "slow down the rate of foreclosures."

"For some people there's not much that can be done," said the lawmaker. "But there are a fair number of people on the bubble ... if they can get some assistance, they can stay in their home."

California Department of Corporations spokesman Mark Leyes said the state can't force or guarantee loan modifications. But the law is rooted in another state power that gives it leverage with lenders.

"What we do have control over is the legal process by which foreclosure is executed in this state," he said. Hence, adding 90 days to the process for those that don't comply.

Lieu said, "Not all banks are doing it at the same level. Some have good (modification efforts), some have bad ones and some have none."

Lenders have received widespread criticism for being overwhelmed by the foreclosure crisis and slow to rewrite loans despite receiving billions of dollars in federal assistance. Borrowers and nonprofit loan counseling agencies alike have complained of frustrating delays and snafus in the process.

On the front lines of the crisis it's easy to be wary about yet another new law or program.

"We're hopeful it will help, but in reality, time after time these things come out and the results are the same," said Pam Canada, executive director of the nonprofit counseling firm NeighborWorks Homeownership Center of Sacramento.

The new law represents a third evolution of California's response to a housing crisis that has severely damaged the economy and devastated local and state government budgets. In late 2007, Schwarzenegger entered into a voluntary agreement with subprime lenders to modify more loans.

Last summer, he signed Senate Bill 1137, which temporarily slowed banks' foreclosure machinery, making them work harder to contact borrowers and offer alternatives.

But foreclosures, while down in recent months, have continued in hard-hit California, especially in the capital region.

The region suffered almost 4,000 new foreclosures in January, February and March, and another 12,000 households are well behind n payments, according to Bay Area tracker ForeclosureRadar.

In summary, here's what will happen starting Monday:

* Lenders will submit applications to the state outlining their loan modification programs. That gives them a 30-day exemption from a moratorium.

* If the state OKs a lender's program, the firm is permanently exempt from the 90-day delay on foreclosures.

* If the state rejects the program as inadequate, a lender has 30 days to upgrade it and be reconsidered.

Leyes said consumers will be able to see a list of lenders that comply with the state's requirements by mid-July.
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Call The Sacramento Bee's Jim Wasserman, (916) 321-1102. Read his blog on real estate, Home Front, at www.sacbee.com/blogs<http://www.sacbee.com/blogs>.

California Legislature Proposing Abolishing the Department of Real Estate

Thor Funding & Investments, Inc. — Tue, 21 Apr 2009 13:05:22 -0500

Yes, you read the headline correctly. For those of us doing business in California in Real Estate and Mortgage finance things appear to be heading towards further uncertainty as our economic woes continue to pound our state.

Our California Legislature through the Assembly Banking Committee has submitted Assembly Bill 33 which would abolish the California Department of Real Estate, Department of Corporations, the Department of Financial Institutions, and the Office of Real Estate Appraisers. Proposal would have all under one new control by setting up the Department of Financial Services.

I am almost at a loss for words as a small businessman who finds himself wondering if many of us will be conducting business in the future or how we will be doing it. I have been in mortgage financing for almost 39 years now, and the last six to eight months have been a real eye opener. We can all speculate or articulate the reasoning for this happening. As a mortgage broker, an ethical one I might add, I see our industry dwindling as both the Federal and State governments attempt to bring change and stability.

I respect the idea of bring stability to our nation, but I truly wonder just how effective our governments are when it comes to running a business so to speak. California itself, is billions of dollars in the red.

I have seen lending standards go from one extreme to the complete opposite. Quite frankly, even though I have been doing this for years and have prided myself on being very knowledgeable, constant changes in our industry whether guidelines, loan amounts or such have left my head spinning. Change is not necessarily bad, but I often wonder if anyone really knows what they are doing.

I have spent years preparing myself for what I am doing now. Last year I opened two new corporations- one a mortgage brokerage. I passed my exams, pay my licensing fees and taxes like most everyone else.

Now I am not normally one who follows any big conspiracy theories, but I do know that banks and their lobbyists are pushing for many things that already have and may continue to dramatically affect how business is conducted. One recent example is the new appraisal format and procedures which go in affect on May 1st. National licensing, in addition to state licensing is in store for those of us in lending. The licensing itself does not scare me, but some of the requirements within the framework does.....potential net worth proposals alone would put many of us out with nowhere to go but the big banks if we could secure a job among the thousands of candidates vying for work.

Below is a link to my continued education source.......No I am not putting in a plug....but Duane did do a piece on this new legislative change. Read for yourself what just might be in store. It also has a link to the Assembly Bill and Summary. Scroll to the left of his site and look for Abolish the DRE

www.DuaneGomer.com

So what's going to be next?

May God Bless Our Nation and Industry

Important Things You Should Know About Current Mortgage Rates

Thor Funding & Investments, Inc. — Thu, 05 Mar 2009 21:36:50 -0600

It's been a while since I've blogged......alot has been going on as I am sure that you are aware of with our market. I talk to people everyday, and one of the most frequent questions has to do with the current state of interest rates. Like many, even though I've been doing this 38 plus years, I have found myself also perplexed with what is happening with the movement of rates. Yet, there is some key reasoning for what is happening with the direction of rates.

For a few months now, there has been speculation that mortgage rates might fall into the mid 4% range. It did happen just a few weeks ago, but it lasted literally just a few hours. The market immediately reacted with a vengeance, and lenders almost immediately became overloaded with loan requests, loan locks, and loan submissions. The party;however, did not last very long. Don't get me wrong, we still have historical low rates, but for many the thought of rates in the mid-four per cent range left many wondering what happened.

What most people need to know is some of the following information in the next few paragraphs. With the government bailout in full force, the mortgage market is competing with the Treasury Bill Market. Next week, the Treasury plans to issue more Treasury Bonds to cover bailout needs. This action by the government competes with the Mortgage Backed Securities Market. In order to attract investors from all over the world to meet our government's needs, normally they have to raise the rates and yields on these Treasury Bills auctioned. The flip side;however, is that the net affect is that it also raises mortgage rates. By raising these rates and yields on Treasuries, it forces the market to also raise rates on Mortgage Backed Securities.

Now I know with everything going on with our economy, this sounds almost insane. Most people would think that with our economy as it is, rates should be lower. For the most part, you are right. Yet, with the reasoning stated above, rates are very likely to rise.

For those of you sitting on the fence to buy, or maybe even refinance, I would suggest two things to remember. First, Bears make money, Bulls make money, and Pigs get slaughtered. What I am trying to politely tell you is to not get too greedy, and take a good thing for granted. We are experiencing historic lows for rates, even though they are hovering in the high 4's or low 5's, depending on the points associated with the rate. Secondly, if you are refinancing, compute your savings to refinance vs. the cost to complete the refinance. Normally, a good rule of thumb is to have a 1% spread. This spread could even be lower if you are also paying off a second trust deed in addition to your first trust deed. In either case, it could be prudent to do so. For those considering buying, but waiting for the magic rate, you could be in for a surprise.

Bernanke himself this week, stated that with the increased Treasury demands to fund the bailout, mortgage rates could eventually creep up to the 6 to 7 per cent level soon. Based on current fundamentals and the market physique, his predictions could come sooner than later.

I know that many of you may think that this is ridiculous, but with the market in current flux, it is not far out of reach. Based upon market demands, competition from Treasuries could hurt our market rates for mortgages. Again, competition from Treasury Auctions to fund this bailout will be competing directly with funds for Mortgage Backed Securities. Consequently, higher mortgage rates may be in store as insane or ridiculous this may sound with our economy upside down.

With more than 38 years of ethical mortgage experience, if this has been helpful, please consider me for your next California loan. Better yet, let your friends and co-workers know too.

Best Regards,

Wayne L. Brown