Hey there - lots of stuff going on in our industry! I wanted to get you the latest info on the changes coming to FHA financing - below is info that pertains to the changes - bottom line is to try to get FHA Case numbers assigned before Oct 4th. The case number can't be assigned until an offer has been accepted on a home - so get those buyers motivated! As always, you can reach me for any questions-
From Think Big Work Small
Stock indexes screaming higher early this morning taking treasuries and mortgage prices lower. The 10 yr is attempting to re-test its low rate back in late August but likely requires a little thinking after the swift decline this week on comments from the FOMC that the Fed will act with more easing if necessary. The markets' take on the Fed's statement has been that more QE is a given when the FOMC meets next in mid-November, however that conviction is about a solid as ice in June. The Fed still talks that the economic recovery, although slowing recently, is improving. If data points are stable and the Sept employment report has any stability the Fed has little reason to waste bullets with another QE.
At 8:30 August durable goods orders were better than expected adding to the early equity market strength; overall orders fell 1.3% as expected but taking very volatile transportation orders out orders increased 2.0%, better than estimates. July durables were revised better; overall fro +0.4$ to +0.7% and ex transportation frm -3.8% to -2.8%.
The stronger durable goods in August along with better news out of Germany set the positive tone for a strong opening in the stock market at 9:30. German business confidence unexpectedly rose to the highest level in more than three years, even as costs to protect the bonds of some of Europe's most-indebted nations climb to records. At 9:30 the DJIA opened +100, the 10 yr -12/32 at 2.2.60% +5 bp and mortgage prices -8/32 (.25 bp).
The Senate will not vote on extending tax cuts that are set to expire at the end of this year until after the Nov 2nd elections. Dems can't get enough consensus to pass the bill, blaming Reps that are holding up the vote. Republicans want to extend all the tax cuts. Obama and Democratic leaders in Congress want to extend them for individuals making less than $200,000 and married couples making less than $250,000. Not to worry, after the elections the tax cuts initiated by Pres Bush will be extended, the country can't stand tax increases in its precarious state.
And another read on the housing sector this morning, at 10:00 August new home sales were expected up 4.8%, as reported sales were unchanged from upward revisions in July. July originally reported at 276K units annualized was revised to 288K and August was reported at 288K. There is an 8.6 month supply at present ales pace, down from 9.1 month supply in July. Prices fell 1.2%. New home ales are for contracts signed but not closed, existing home sales are reported on closed deals. Not much reaction to the report.
At 1:00 this afternoon Richmond Fed's Lacker will speak on the economy.
Ferddie Mac: Fixed-Rate Mortgages Unchanged While ARMs Are Mixed
McLean, VA - Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®). The 30-year fixed-rate mortgage rate and the 15-year fixed-rate were unchanged; shorter-term rates were mixed.
Quotes
Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.
•· "In its September 21st policy committee statement, the Federal Reserve indicated that the pace of recovery in output and employment has slowed in recent months. In addition, inflation was at levels somewhat below its comfort zone. The perception of slow growth and low inflation removed any upward pressure on fixed mortgage rates this week.
•· "Since 1975, fixed mortgage rates typically fall over the 12 months following the end of a recession; the one exception was the 1980 downturn. The National Bureau of Economic Research recently announced that the current recession ended in June 2009. Rates for 30-year fixed mortgages were 0.7 percentage points lower in June 2010, representing the largest decline during the first year of recovery over the last six recessions. With a weaker recovery, these rates fell by another 0.4 percentage points by September."
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Tampa Bay Business Journal - September 1, 2010 |
•·
•· Wednesday, September 1, 2010
•· HUD, banks band together to give edge on foreclosed homes
•· Tampa Bay Business Journal
•· The U.S. Housing and Urban Development Department is working with the nation's top mortgage lenders to offer select state and local governments and nonprofit organizations a "first look," or right of first refusal, to purchase foreclosed homes before making these properties available to private investors.
•· HUD didn't identify which government and nonprofit agencies would be selected to participate, but Florida is a likely candidate because of the extent of already record foreclosure numbers here. Groups that are part of HUD's current Neighborhood Stabilization Program, which includes Tampa Bay, are eligible to take part.
•· Participating institutions include Bank of America, Chase, Citi, Deutsche Bank, GMAC, Nationstar Mortgage, Ocwen Financial Corp., Saxon Mortgage Services, U.S. Bank, Wells Fargo, Fannie Mae, Freddie Mac and the Federal Housing Administration.
•· The National First Look Program - the first-ever public-private partnership between HUD and the National Community Stabilization Trust - will help governments and nonprofits compete better with private investors for bank-owned properties, which HUD says hinders efforts to stabilize neighborhoods with high foreclosure activity.
•· "Local communities will now get an exclusive option to buy foreclosed properties in targeted neighborhoods so they can turn the homes into affordable housing, or in some cases, tear them down," said HUD secretary Shaun Donovan, in a release. "This agreement helps us level the playing field to give communities a better chance to stabilize these neighborhoods."
•· The First Look program will allow Neighborhood Stabilization Program participants the exclusive opportunity to purchase available real-estate owned, or REO, properties within the defined boundaries of a foreclosure target area. The participants will have 24 to 48 hours to express interest and then will have up to 12 business days to commit to the purchase, sometimes at a discount provided by the bank.
•· If the government or nonprofit entity doesn't purchase the home, the bank would then go through the normal foreclosure auction process.
•· All contents of this site © American City Business Journals Inc. All rights reserved.
•· Effective for FHA loans for which the case number is assigned on or after October 4, 2010, for FHA traditional purchase and refinance products, the upfront premium, shown in basis points below, will be charged for all amortization terms.
|
Mortgage Type |
Upfront Premium Requirement |
|
Purchase Money Mortgages and Full-Credit Qualifying Refinances |
100 BPS |
|
Streamline Refinances (all types) |
100 BPS |
Annual Premiums
Effective for FHA loans for which the case number is assigned on or after October 4, 2010, FHA will increase the annual premiums collected on a monthly basis. For FHA traditional purchase and refinance products, the annual premium, shown in basis points below, is to be remitted on a monthly basis, and will be charged based on the initial loan-to-value ratio and length of the mortgage according to the following schedule:
|
LTV |
Annual Premiums for Loans > 15 Years |
|
= or < 95 percent |
85 BPS |
|
>95 percent |
90 BPS |
The annual premium for amortization terms equal to or less than 15 years remains unchanged and is collected according to the following schedule.
|
LTV |
Annual Premiums for Loans = or < 15 Years |
|
= or < 90 percent |
-None- |
|
>90 percent |
25 BPS |
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