Eric's Daily Rate Watch for October 16, 2009 - 9:09am PST

4.750% on 30yr Conv - (5.000 % w/no origination)

4.750% on FHA 30yr - (5.000% w/no origination)

5.000% on 30yr Investment Property

3.625% 5yr ARM interest-only

5.500% 30yr Fixed Jumbo

4.375% 5yr ARM Jumbo (to $1million)

ROCKY START FOR FRIDAY - US Production Capacity, and Consumer Sentiment reading have shown we're still struggling as an economy.  Bank of America and General Electric have posted much larger losses than expected and that is sending stocks down this morning.  MBS pricing is all over the place.  Expect volatility until early afternoon.

RATES MOVING BACK UP (updated).  At least the fixed rates are.  ARM's are still at their lowest point all year.  There was a huge run-up on MBS through mid-last week, which caused the 4.5% rates we had for a few days.  But that put us at levels not sustainable, given the huge amount of new Treasury debt that just hit the market last week.  The more Treasuries & MBS available for sale, the lower the price they will command, which will raise our rates in the long run.  Combine that will the better-than-expected jobless and earnings reports, and you can see why we're heading north again.  Still at fantastic levels today, so lock ‘em now while you still can!

95% CONVENTIONAL LOANS NOW AVAILABLE IN OREGON & WASHINGTON! ... One of our Mortgage-Insurance companies just removed OR/WA from their list of declining markets, which is what has kept us at a lower LTV max.  Now, we can finance Conventional purchases and non-cash refi's to 95% LTV, and cash-out refi's to 85% LTV.  Second homes allowed up to 90% LTV.  This is great news.  Must meet income/credit guidelines. 

FIRST-TIME-BUYER TAX CREDIT ENDS SOON!!!  November 30^th is coming soon.  Get your first-time buyers into a contract ASAP.  Remember, we can close a purchase in just 3-weeks.  Brokers and retail banks will take 5-6 weeks minimum.  We'll get it done on time!

WE HAVE FULL-EAGLE DIRECT ENDORSEMENT FHA APPROVAL FROM HUD!!  This is the highest level of FHA underwriting approval, and means we can close your loan faster than anyone else, and with the most competitive rates available.  Our in-house bank lines and underwriting are taking less than 3 business days to approve a loan.  FHA appraisals through us are done in a week or less.  This translates into a 3 week closing, if needed.  Call us for your next FHA transaction and we'll get your client a better deal done faster!!

NEW MARKETING PROGRAM NOW AVAILABLE FOR REALTORS  -  I have an incredible program designed to position Realtors in front of potential buyers and sellers.  This is an opportunity you won't want to miss.  If you are interested in growing your network and sphere of influence, then reply to this email and I'll give you the details.   

MASSIVE FHA CHANGES COMING  -  FHA is facing a liquidity problem.  17% of FHA loans are in foreclosure, compared with 13% of the entire market.  Thus, FHA's cash reserves as a percentage of their loan portfolios has declined below acceptable levels.  As a result, there will be some changes to the program:

•1)     They will hire first Risk Management "Czar" in almost 75yrs

•2)     They will increase audited financial net worth requirement of approved FHA lenders from $250,000 up to $1million (4 times increase)

•3)     They will increase minimum credit score standards

•4)     They will now require income verification on Streamline FHA refinances

WHAT DOES THIS MEAN TO YOU?  It will disqualify some buyers that have been "on the edge" of qualifying.  It will also shrink the pool of lenders that can do FHA loans.  Fortunately, my company is solid and debt-free, and now has Direct Endorsement status, which is the highest-level of FHA approval.  Our FHA appraisals take a week or less, and underwriting is at 48-72hrs (for stick-built homes, not manuf's).  Get your FHA buyers, especially lesser-qualified ones, off the fence before changes take place!!

NEW MORTGAGE DISCLOSURE LAW EFFECTIVE NOW  -  I'm sending out a major update today, breaking down the details.  Some of you have said you are being told 45-60 days to close a loan.  NOT TRUE!  Yes, a few days may be added, but FYI, we have 24-48hr underwriting right now, and 1week appraisals.  Purchase loans in 3-4 weeks and Refinances in about 30days.  We will close your deals ON TIME!!

JUMBO LOAN PROGRAM NOW AVAILABLE  -  up to $1.5 million.  Very competitive pricing for both Fixed and ARMs.  Starting in the mid 4's

Refinance to 105% LTV OR HIGHER !!  -  FINALLY we seeing some relief as a result of all the bailouts that will affect those of you who pay your mortgages on time, but have lost value in your homes.  Available right now is a plan to allow refinance of a 1^st mortgage (no cashout) up to 105% loan-to-value.  If you have a 2^nd, that will remain in place, regardless of loan-to-value.  So, if you are current on pmts, and couldn't refi before due to lost value, this may work for you. 

HOW TO GUARANTEE THE BEST RATE  -  In order to lock anything, we need to have income/asset info on file.  Purchases require Sales Contract.  Currently, we have historic low rates.  If we lock today, and rates dip significantly while we're processing the loan, we can look to renegotiate with our investor to give you the lower rate.  If you have a lower target rate, then apply today (get info on file) and we'll be ready if rates dip.  As a courtesy, if rates swing lower 4-6 months after you close a loan with us, we can in many cases do a no-cost refi to the lower rate.  Don't miss a great opportunity!

Apply Online 24/7 at  www.GoNorthwestLoans.com/applyNow.html.

Or call 503.698.5801 and do it by phone. 

Here's a quick snapshot of today's most popular programs:

Conforming  -  (up to $417k)

30yr fixed      4.750%    (4.869apr)   -   Owner-Occupied - 5.000% with zero origination 

15yr fixed      4.250%   (4.412apr)   -   Owner-Occupied - 4.375% with zero origination

30yr fixed      5.000%   (5.247apr)   -   Investment 25%down 1.5pts  -  or 5.125% at 1pt

5/1 ARM i-o   3.625%   (3.980apr)   -   fixed for first 5yrs - interest only minimum pmt 

30yr FHA       4.750%   (5.437apr)   -   5.000% with zero origination - similar for VA or USDA 

Jumbo  -  (over $417k)

30yr fixed      5.500%   (5.621apr)   -   up to $500k at this rate

30yr fixed      5.750%   (5.902apr)   -   up to $600k at this rate

30yr fixed      6.125%   (6.296apr)   -   up to $700k at this rate

30yr fixed      6.375%   (6.527apr)   -   up to $850k at this rate

30yr fixed      6.625%   (6.798apr)   -   up to $1,500,000 at this rate

5/1 ARM        4.375%   (4.688apr)   -   fixed for first 5yrs  -  up to $1million

NOTE  -  These rates are just a sampling of the thousands of programs we have available from over to fit virtually any situation.  The above-listed rates assume a purchase loan with excellent credit (740+), at or below required loan-to-value ratio (varies by program, call for details), and required income documentation.  This is PAR pricing with standard origination and underwriting fee.  Very competitive rates are also available for borrowers needing a higher loan-to-value, and those with lower credit scores and/or challenges.  Rates are subject to change without notice.  Please email or call us for accurate quotes and pre-approvals.

Current Product Offerings:

Purchase, Refinance, Construction, Land loans, Lot loans, Farms, Commercial, Investment Property, Single & Multi-family, Business acquisition & refinance, Conventional, FHA, VA, USDA, Reverse, Cash-out, No-Cost refi's available

and most of these loans can be done on our in-house bank lines (faster and cheaper)

Have a successful day ... call or email me with any scenarios!

ERIC