hartman: Flight to Safety continues as US government lends $85 Billion to stabilize AIG - 09/17/08 11:10 PM
Earlier this week, I recapped the market phenomenon referred to as a "Flight to Safety". In such a situation, investors flee riskier investments, in favor of assets that are more secure, such as oil, treasury bills, and gold.
What happened today is clearly such a Flight to Safety.
As you know, … (0 comments)
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hartman: Why is gasoline still $3.50 or more when oil falls to $91? Supply and Demand holds the key - 09/16/08 11:57 PM
I've gotten a number of questions lately on broadly ranging economic topics, with a significant focus on everything on Wall Street, such as Barclays' purchase of Lehman assets, and the government "bailout" of AIG, but one area I thought merited a bit of discussion is the current oil / gasoline price … (5 comments)
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hartman: Realtors – Want to Make the Most of USDA Financing for Your Listings? Follow these Easy Steps - 09/16/08 04:52 PM
The most active segment of the housing market today is the
first-time homebuyer
living in a rental, hoping to purchase a primary residence. This group is at a huge advantage to any other for a number of reasons:
No home to sell - In today's slower market, moving up into a … (4 comments)
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hartman: Seven Reasons USDA Mortgages are HOT Today - 09/16/08 01:17 PM
I've been hearing a lot more about the USDA Guaranteed Rural Housing mortgage program lately. I've been seeing a significant increase in buyer interest in this program, too. With the current, (albeit, likely temporary) suspension of seller-funded down payment assistance programs, the USDA GRH program is ideal both for sellers and … (0 comments)
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hartman: Wall Street Rocked by Credit Fallout; the Definition of a Flight-to-Quality - 09/15/08 12:19 PM
If there is rock & roll playing in lower Manhattan this morning, it is probably The Doors' "Peace Frog", as investors awoke to a market seeing financial giants Lehman Brothers, Merrill Lynch, and American International Group all discussed in badly negative news.
Lehman, a troubled investment firm with major investments in … (1 comments)
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hartman: Down Payment Assistance Programs: Suspended, for now - 09/15/08 09:59 AM
Well, it's official. I got an email this morning from our last wholesaler that was offering to fund loans using seller-funded down payment assistance programs like Nehemiah or Ameridream, stating that they were going to stop accepting new registrations for loans using these programs.
So, this means no more 100% financing, … (2 comments)
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hartman: Rhode Island Primary Today, also Introducing Ryan McGill - 09/09/08 10:59 AM
Today in Rhode Island, we have a primary election for US Senate, House, and for the Rhode Island General Assembly. Big surprise when I found out that my poling place had been moved. Again. But after a little running around, it turned out it had been moved back to the fire … (2 comments)
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hartman: Government Intervenes to Stabilize Fannie, Freddie; Will Mortgage Risk Fall? - 09/08/08 04:44 PM
In a widely anticipated move, the United States Treasury placed mortgage giants Fannie Mae and Freddie Mac in conservatorship this weekend, shoring up markets for the mortgage giants debt, but essentially canceling the value of those companies' stock. This move is seen as providing much-needed reassurance to mortgage investors that their … (1 comments)
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hartman: After brief respite, Mortgage – Treasury Spread reaches new peak - 08/25/08 09:09 PM
The 2nd quarter of 2008 began on a positive note for mortgage borrowers, as a relative lack of news caused the Mortgage - Treasury spread to narrow from its March 13th peak at 2.60% to a low of 2.03% May 30th. The Mortgage Treasury spread is an indicator of relative risk … (4 comments)
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hartman: Providence's Unique Places: East Side Prescription Center - 08/10/08 08:31 PM
Welcome to a new series of posts regarding some of the more interesting spots in Providence. Today, I decided to start with a place near my home to which I've walked several times. I passed by today, only to learn that I had mis-remembered the hours, so I thought it made … (0 comments)
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hartman: Providence Foreclosures Up, But So Are Prospects for Area Banks, Realtors - 07/25/08 02:45 PM
I get an email every day from the Providence Business News recapping the day's events as published in that paper, and there have been several articles of interest this week which reflect on current market conditions. As you may know, while the US as a whole is not currently in recession … (0 comments)
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hartman: Providence Offers Rehab Funds for Foreclosed Homes - 07/21/08 02:51 PM
The City of Providence has announced a new homebuyer loan for those purchasing previously foreclosed properties. This program, called, the Foreclosed Homes Rehab to Homeownership Program for Homebuyers, offers as much as $50,000 through an interest-free loan to buyers of previously foreclosed homes who will be living in those homes once … (3 comments)
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hartman: Worries at Fannie, Freddie, push Mortgage - Treasury rate spread close to 52-week high - 07/11/08 09:06 AM
Fannie Mae and Freddie Mac have been struggling with the fallout of the mortgage and foreclosure crisis for some time now. This week alone, there have been several front-page articles in the Wall Street Journal. In pre-market trading this morning, stocks of the two companies are in free-fall, suggesting possible losses … (4 comments)
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hartman: Province Mortgage Associates Celebrates 3rd Anniversary - 07/03/08 06:49 PM
I don't write a lot of what I consider "shameless self-promotion" articles, but I think that a mortgage company completing its 3rd year in existance given current market conditions is a great testament to the quality people I work with, to their dedication, and to their perseverence. We held an anniversary … (3 comments)
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hartman: Get to the High Point, Then Climb Higher - 06/26/08 08:11 AM
This Saturday, I climbed Round Mountain in Salisbury, CT, and Mount Frissel, in the town of Mount Washington, MA. It is a relatively short hike, at just over 1 mile, however, that involves a total of 800 feet of vertical ascent (and about 200 feet of descent along the way) which … (8 comments)
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hartman: It's the Innuendo, Not the Actions - 06/25/08 07:16 AM
The Federal Reserve Open Market Committee will adjourn its first meeting of the Summer today, and is expected to make an announcement at 2:15 PM regarding its decision to raise or lower interest rates. At this point, virtually no one in the investing world expects the Fed to make any changes … (5 comments)
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hartman: US Senate to Vote on Foreclosure Rescue Plan Today - 06/24/08 10:52 AM
I've been hearing rumors of this plan for a while. A similar bill passed the House of Representatives in May, and was expected to get to the Senate fairly quickly. I guess 7 weeks is fairly quick in Washington.
What is it?
We've seen a number of plans recently to help … (5 comments)
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hartman: Construction Financing – You’ve Closed! Now What? - 06/23/08 01:36 PM
It might seem like getting your mortgage to build your new home was a battle. You were likely forced to submit copious documentation, and you home plans were extensively scrutinized. After all of that, you've signed a contract with your builder, and then you probably went to a lawyer's office somewhere … (0 comments)
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hartman: FHA Suspends 90-Day Rule, But Will Flippers Really Benefit? - 06/16/08 10:23 PM
News broke today that FHA will be temporarily waiving a rule that has been impeding bank resale of foreclosed properties.
The so-called "90-day rule" was implemented to stop property-flipping schemes that utilized multiple investors to rapidly increase the value of a home, while stripping that value out through larger and larger mortgages. This scheme hurt many … (11 comments)
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hartman: Understanding Construction and Rehab Mortgage Options - 06/11/08 09:23 AM
Great opportunities exist in the real estate market right now. Many homes are selling for far lower prices than they brought at their last purchase. 3- and 4-unit properties are often available for a song due to extreme reductions in viable financing options. But what about getting a home that is … (2 comments)
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hartman: 2 Ways to Obtain 100% Financing, Even Today - 06/02/08 01:09 PM
A substantial proportion of my business over the past two years has been to clients who have tried and tried, but who have never quite been able to save money. I'm sure you've met them. Whether it's been a question of supporting relatives, financial hardship, or just simple overspending, there are … (10 comments)
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hartman: Charming 2-Bedroom Apartment Available on East Side of Providence - 06/02/08 07:02 AM
You'll fall in love with this delightful 2 bedroom unit. Break away from the hustle and bustle of city life on the secluded outdoor patio. Forget traffic hassles - there aren't any on this quiet dead-end street. Relax your troubles away bathing in the classic claw-foot bathtub.
- Gas Range- On-site … (0 comments)
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hartman: Hear me on the radio tomorrow! - 05/30/08 04:40 PM
I'm so excited! I've been asked to be a guest of the Rhode Island Real Estate Insiders tomorrow morning. This weekly live radio program, which airs on AM 790 in Rhode Island and the surrounding area, and webcasts for everyone else, provides insightful information to home buyers, and property investors, and airs … (3 comments)
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hartman: Ten Important Things to Know About Mortgages for 2008 - 04/28/08 09:46 AM
You may not be considering doing anything with your mortgage at present, but there are still several important details to know in order to make the best of the current challenges being faced by the largest mortgage lenders. Here are a few things to consider:
Things to Know if You Already Own:
Know … (4 comments)
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hartman: Mortgage / Treasury Spread Widens, On Average - 04/21/08 02:48 PM
Mortgage rates moved up sharply as last week drew to a close, propelled by a string of positive news out of Wall Street. Several major banks reported colossal losses, yet, because these losses were less than the even more colossal losses that had been expected, the stock market reacted by increasing … (0 comments)
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hartman: Tulips & Mortgages: Centuries apart, and yet eerily similar - 04/19/08 10:12 PM
From time to time, an asset, or a class of assets, will become so popular among investors that its value will grow to exceed the inherent value of the asset. This event is referred to as a financial bubble, as it is perceived that values become over-inflated, and must eventually deflate. … (2 comments)
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hartman: Attention BlackBerry Users - Important Information to Protect Your Credit Cards - 04/10/08 10:29 AM
This happened to me, and I thought you might want to know this.
Yesterday I was leaving the Proidence Place Mall, and I don't know if you've been down there lately, but they've changed the parking so that you pay in the mall and then use your ticket to get out. … (4 comments)
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hartman: Last Week’s Light at the End of the Tunnel: Oncoming Train - 04/07/08 12:48 PM
Early last week, there were indications of significant good news for the economy coming out of Wall Street and Washington. On Tuesday, ADP reported its survey results showed slight gains for the month of March. Later that day, Fed Chief Ben Bernanke signaled his perception that recession might already be in … (0 comments)
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hartman: How to Save for Your New Home: 5 ways to build 3% - 04/04/08 01:36 PM
In the last century, the required down payment for a home purchase changed significantly, decreasing from 50% of the price to 20% to as little as $0. Recently, though, banks have started to ask for more. For most homebuyers, without a special deal through an organization like Nehemiah, 3% investment is … (4 comments)
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hartman: Bar-B-Q Ribs to Die for!!! - 03/29/08 02:34 PM
Best Ribs in Lynchburg, VA!!!! If you ever find yourself in the Lynchburg, Bedford, Smith Mountain Lake area do yourself a favor and go to dinner at THE NEW LONDON HOUSE!!
Owned and operated by the Hartman Family for over 30 years this is a local favorite - we call it "The … (4 comments)
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hartman: Wondering why rates are all over the place? It's called "Deleveraging" - 03/06/08 07:59 PM
In the past 10 years, total mortgage balances (1995 to 2004 and 2004-2007 see section L.217) in the United States balooned from $5.128 trillion in 1997 to $14.557 in 2007.
That's an increase of over 250%!
Where did all that money come from? In that time, the economy didn't grow by nearly … (1 comments)
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hartman: Providence Rhode Island Poling Place Change - 03/04/08 10:41 AM
I got out of the house early this morning to visit my poling place, and the office of Exit Realty Firm right next door, only to find out that my poling place had moved! The fire station at the corner of Branch Ave. and North Main St. was clearly not open … (0 comments)
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hartman: Rates improve sharply - will it hold? - 03/03/08 11:27 AM
Last week was just what many loan officers and borrowers were looking for: a week of sharp improvements in rates. What we saw was a substantial "flight-to-quality" as investors shied away from stocks and moved their money into safer treasury bonds. This was triggered by several reports indicating higher than expected … (3 comments)
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hartman: 8 Simple Rules For FHA Financing - 03/03/08 10:44 AM
There has been a lot of talk lately about the resurgence of the FHA loan program. It meets many of the needs of borrowers who may have qualified for sub-prime mortgages. Here are some basic guidelines to consider with the FHA option for your clients:
FHA requires some credit: In spite of … (15 comments)
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hartman: Could Rates Be Ready to Fall Again? Treasury / Mortgage Spread Hits Widest Point - 02/29/08 09:52 AM
The spread between 30-year fixed mortgage rates and 10-year treasury yields hit its highest point in over a year in the week of February 25th, at 2.52%. Mortgage rates averaged 6.24% while treasuries closed Thursday at 3.72%.
I have been tracking the spread between 10-year treasury yields and 30-year fixed mortgages since January, 2007. … (9 comments)
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hartman: Interest Rates and the Pure Expectations Theory - 02/27/08 08:27 PM
(WARNING: this article is long and detailed, and ends with a lot of math. If you want something short and mathless, please visit my article about cell phone plans getting cheaper.)
Last night, I lectured my Introduction to Financial Services class regarding several topics, one of which was the relationship between current and … (0 comments)
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hartman: 2008 Economic Outlook Breakfast: Opinions Negative, Research & Technology Key to RI Emergence - 02/27/08 09:35 AM
I attended the Sovereign Bank Economic Outlook Breakfast this morning at the Providence Westin. This is the 3rd year I've attended this event, and each year seems to bring a larger crowd. The event's purpose is to unveil the results of a survey conducted in the 4th quarter of the year … (2 comments)
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hartman: Fed Cuts Rates, but Mortgage Rates Go Up? - 02/25/08 10:59 AM
CNN this morning reported on a new "conundrum" faced by the Federal Reserve. Industry veterans will recall 2-3 years ago when then Fed Chief Alan Greenspan noted the unfathomable disconnect between bond yields and Fed rate moves. Now Ben Bernanke is faced with the prospect of his moves having a similar, … (2 comments)
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hartman: $729,750 is the New Jumbo: Update - 02/25/08 10:51 AM
Last week, we received word from one of our lenders regarding their interpretation of the new Jumbo mortgage rules included with the economic stimulus plan. Here's what will be happening:
HUD will release Median Home Prices for the country within the next 30 daysConventional limits will increase to the higher of the … (0 comments)
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hartman: Want to lower a big expense? Major cell phone carriers offer unlimited calling for $99 - 02/22/08 04:34 PM
In a break from their old habits, major cellphone carriers Verizon, AT&T, and T-Mobile all announced new plans Thursday aimed squarely at people who use their phones a lot. Anybody on this site use their phone more than 2000 minutes? 2500? 5000? Under the new plan, Verizon and AT&T are offering unlimted … (9 comments)
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hartman: FHA Mortgages - It's What's New at Province Mortgage Associates - 02/18/08 11:40 AM
I would like to share with you today a little bit of what we've been working on at Province over the last 4 weeks. We received approval from HUD to begin offering FHA mortgages in the middle of January, however, rather than beginning immediately to pursue applications for those loans, we … (1 comments)
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hartman: US Presidents' Housing Achievments (and a rate update) - 02/18/08 11:02 AM
Good morning!
This Presidents' Day is a wet and windy one here in Rhode Island. Today, in addition to a brief interest-rate market recap and preview, I thought I'd bring you a history of significant events in United States housing history, and the Presidents who effected those changes.
In 1862, Abraham … (0 comments)
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hartman: Bernanke speaks to congress - 02/14/08 12:55 PM
Treasury Secretary Hank Paulson joined Federal Reserve Chief Ben Bernanke in congress today, and said that they don't expect the US economy to experience a recession in 2008, rather they see slowing growth, with a total increase of 1.8% over the 2007 Gross Domestic Product increase.
The market was not impressed. … (0 comments)
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hartman: Rates on a Bungee Cord - 02/11/08 12:52 PM
Last week held out my expectation that the market is looking to move long-term interest rates higher, as rates increased close to 0.25% from Monday to Friday. There was a substantial disappointment with service industry growth Tuesday, which led markets to open with lower rates, but as the day wore on, … (0 comments)
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hartman: $729,750: The New Jumbo (for now) - 02/11/08 12:27 PM
That's right, the economic stimulus package will be in effect shortly, and with it will come the ability for Government Sponsored Entities Fannie Mae and Freddie Mac, along with the Federal Housing Administration (FHA), to increase their loan purchase limits significantly in higher cost areas. Sure, more of us are thinking … (2 comments)
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hartman: This week's econmic updates -- Could rates be 1% higher by June? - 02/04/08 11:20 AM
Good morning!
After a very busy couple of weeks, expect this week to be much quieter. Like Punxatawney Phil (who saw his shadow, and is back to sleep for another 6 weeks), the market looks to be substantially quieter this week than it was last week.
Here's a quick rundown of … (3 comments)
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hartman: Buyers' Bonus Mortgage Program - No Principal or Interest for 6 months! - 02/04/08 11:05 AM
I wanted to share something with you today. It's a program that you might have heard of before. I hadn't made it a priority recently, as many of the lenders I recall offering it had suspended it, but one of our biggest lenders has recently reinitiated the Buyers' Bonus mortgage program. … (7 comments)
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hartman: Rollercoaster updates; Radio Tomorrow! - 02/01/08 04:47 PM
Good evening!
I hope your week was as interesting as mine was. After taking all of last week off for vacation, there's nothing like coming back to the flu to get off to a good start. The market certainly made it worth hanging in and watching.
Earlier this week, I told … (3 comments)
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hartman: If you thought last week was a roller coaster. . . - 01/28/08 09:48 AM
The week of January 21, 2008 was one of the more exciting weeks I have seen on the market in quite some time, and that comes with being just a 4 business day week. Of course, most of us around here worked Monday, also; I didn't. I'd planned vacation for the … (21 comments)
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hartman: 13 Important Details to Know About Your Mortgage - 01/17/08 02:51 PM
Whether you choose to open your mortgage with Province Mortgage Associates, or with another institution, there are several important details you should know before beginning the mortgage process. Because so many mortgage difficulties begin with last minute surprises about your mortgage, I have assembled this checklist to assist you in your search … (0 comments)
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hartman: Financing By The FICO: 2007 to 2008 - 01/07/08 05:43 PM
By any measure, 2007 was a tumultuous year in the mortgage industry. Since December 2006, over 210 mortgage lenders have ended their operations, and many more mortgage brokers have closed-up shop. With so many changes having occurred from January 2007 to January 2008, I thought it would be appropriate to run … (4 comments)
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hartman: What's the best weekend to get your more marginal clients signed into purchase agreements? - 11/30/07 02:50 PM
This weekend is, if a massive pricing adjustment I just received from one of our lenders spreads across the whole market.
I just received an email indicating that borrowers with credit scores below 680, along with borrowers with debt-to-income ratios higher than 50%, will be charged as much as an additional 1% … (2 comments)
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hartman: Mortgage Rates Leave Treasuries in the Dust - 11/23/07 02:36 PM
I get an email every morning from a wholesale lender I've never met or closed a loan with, telling me about his take on the market. Specifically, today's email stated that treasury notes had slipped on investors renewed interest in a potentially rising stock market.
That's all very well and good, but … (0 comments)
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hartman: Why I'm Thankful This Thanksgiving -- Why are you? - 11/20/07 09:09 PM
Going into my favorite holiday of the year, I want to take a moment to reflect upon 2007. It's been a good year so far, in spite of the turmoil that has rocked the foundations of the business, and I believe that much of that has to do with just a … (3 comments)
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hartman: Financial Catastrophes: Divorce and your Credit: Credit Cards and Mortgages - 11/13/07 09:26 PM
"Mawage, that bwessed awangement, that dweam wifin a dweam," said the Impressive Clergyman in The Princess Bride . Clearly, he was operating in a world where substantially less than 50% of mawages ended in divorce, however, that is the reality that we face today, and it does not appear to be something … (2 comments)
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