You and everyone else have heard of identity theft in the news and probably even know of someone who has been affected by it or had it done to them. But are you doing everything you can not to avoid becoming a victim yourself?
Identity theft is the “fastest growing Internet crime,” according to the Federal Trade Commission. Thefts are using YOUR illegally obtained personal information, criminals steal your good name, credit history, your hard earned money, and precious time as you are left to clean up the mess they have left behind.
There are several things you can do to protect yourself from identity theft. First, shred and destroy any paper you no longer need that includes sensitive and identifying information. Secure the remaining documents behind lock and key, away from roommates, or any workers that may have access to your home. Also, avoid mailing payments from your unsecured home mailbox. What a great place for thieves to find your personal information and checking account information.
Carry only necessary items: never carry your ATM or debit card together with a written PIN – you are asking for trouble. Keep your Social Security card and passport locked away at home whenever you can…unless you plan on fleeing the country right after your trip to the grocery store, you don’t need to carry your passport on you. Protect your PIN when you are entering it into a machine, making sure the numbers can’t be detected by anyone near you.
To double-check that you are the only one using your accounts, closely monitor your bills and statements as they come in. Then, once a year, review your credit reports to make sure they don’t hold any surprises.
You must also be careful on your computer, especially when you are online. Always update software when you are prompted. In addition, be careful when creating passwords. Use letters, numbers, and punctuation if possible. Never use just a word that can be found in a dictionary, or a loved-one’s name. It’s best to use a different password for each online account. Use a mixture of capital and lower case numbers and change them every 6 to 12 months.
When checking your e-mail, do not click a link or open an attachment from unfamiliar sources. Also, be suspicious of any link or attachment from anyone (even trusted friends) if you aren’t expecting it.
If you are careful to protect your personal information in these ways, identity thieves will find it difficult to target you. However, if you do suspect you are a victim of identity theft, immediately contact your creditors and file a report with the police. Then you can begin cleaning up the mess that these “invisible thieves” have created for you.
This week's economic calendar is light but the impact could be big:
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.
As you can see in the chart below, Bonds and Home loan rates improved last week but tapered off a bit on Friday. Stock markets fell once again last week on fears of a double-dip recession. That coupled with a plunge in the Philly Fed Index along with weak housing numbers fueled a rally in the Bond markets that saw Mortgage Bonds hit fresh 2011 highs before giving up some of those gains on Friday.
Overall, however, home loan rates are still at some of the most attractive levels ever seen - making now a great time to consider a refinance or home purchase.
Credit scoring is that mysterious number that is assigned to your when you apply for a mortgage, a car loan and your insurance company even runs one to determine your premium amounts.
So, there’s a new website, created by the Consumer Federation of America and Vantage Score Solutions if you’d like to know how credit scoring works.
www.CreditScoreQuiz.org
Thousands of people have taken the quiz—with the average score of 60%. People between the ages of 34 to 45 got 67% right and people with income over $100,000 got 66% correct answers. Consumer with lower income and the elderly scored lower. They just don’t use credit enough to know how the scores affect them.
The quiz has 25 questions—and the website will give you the answer to those questions that you missed.
There are new credit scoring disclosure rules going into effect in July 2011 where lenders and the credit bureau must provide you with detailed information when you apply for credit. It will help you understand your credit score and in finding errors on your report (that you may not even know about). So stayed tuned!
If you know your credit score and you are going to be purchasing a home and need a mortgage loan, or if you are refinancing, give Kelly a call today!
There are different ways to hold title to real property and each method has its advantages and disadvantages. With each example, I suggest that you contact an attorney or your estate planner to make sure that the way you hold title is appropriate for you and your family.
Joint Tenancy with Rights of Survivorship – Joint tenancy with rights of survivorship is when two or more people hold title to real estate jointly, with equal rights to enjoy the property while still alive. In the event of death of either party, the ownership rights pass on to the survivors.
· Advantage – The parties who own the real estate need not be married or even related.
· Disadvantage – If the property is sold, the title to the property cannot be transferred without the okay of the other person(s). Another disadvantage is that if a creditor has a legal debt to collect against one of the owners, and files a lien against the property to collect the debt, the lien will affect all owners.
Tenancy in Common – Tenancy in common is when two of more people hold title jointly, with equal rights to enjoy the property during their lifetime. However, it’s different than “joint tenancy” being that tenants in common hold title “individually” for their respective “part “of the property. For example, 3 people could hold title, with one person having 50% ownership, and the other two with 25% ownership each. Each person can sell their portion of ownership or will their percentage to another person upon their death.
· Advantage – Allows for one owner to use their portion of the property for liens/borrowing purposes and not encumber any leans against the other owner’s portion/percentage.
· Disadvantage – If the property is sold, all liens must be paid off for a total transfer to take place.
Tenants By Entirety – Tenants by entirety is ownership “assumption” that a husband and wife are one person for legal purposes and conveys ownership as one person. This method can only be used when owners are legally married.
· Advantage – If one of the spouses dies, the title to the property is automatically transferred to the spouse and no legal action, will or probate is needed for this to occur.
· Disadvantage—In the case of a divorce, (depending upon state law), the “title” to the property automatically converts to “tenancy in common”, meaning that one owner can transfer ownership to their 50 percent to whomever they wish.
Sole Ownership – Sole ownership can be held by an individual person or an “entity”, like a corporation or a trust. The most common are single men or single women who buy real estate. However, a married person may want to hold title alone (without their spouse). In this situation, a title company or the laws of your state may require the spouse (who will not take title) to acknowledge that they know the other person is buying real estate and they do not want to be on title.
· Advantage – As a sole owner, no other owner needs to be consulted to sell or place a lien on the property
· Disadvantage – Should the sole owner die or become incapacitated, the sale or transfer to the real estate would have to be settled in court. That is, unless the sole owner had a will or an official document (like a pre-signed deed) that gives ownership to another person.
The GSEs’ new appraisal regulations (as part of their UMDP initiative) are set to take effect on September 1st and it’s the biggest change to appraisals in decades. Now’s the time to get a plan together so you can avoid fees and closing delays when you submit appraisals to the GSEs. Are you ready?
a la mode has just announced a full slate of training courses that will help you prepare, and you don’t even have to be their client. Here’s what we’ll cover:
Do you know how to read a UAD-compliant appraisal? The GSEs have issued new rules that standardize appraisal data and there are some big changes to how appraisers will notate things like number of bedrooms, number of baths, and a whole lot more. Many fields of the typical appraisal report are affected by these new rules, so your appraisal data will need a decoder ring until you get the hang of things.
How will you submit your appraisals to the GSEs? For any loan originated on or after December 1st, you will have to submit appraisal data to the GSEs through their new Uniform Collateral Data Platform (UCDP). This platform only accepts appraisals in two formats: MISMO XML (the preferred format), or a first-generation PDF. If you submit PDFs, there will be fees for conversion to XML so you’ll want to avoid that route. We’ll show you how to get the Native XML for error-free submission to the GSEs, and we’ll show you how to submit your appraisals easily to avoid closing delays and hassles.
Are you aware of all the deadlines associated with UMDP? The deadlines can get tricky, but we’re here to help. Appraisers have to be in compliance by September 1st of this year, so you’ll probably start seeing these new reports fairly soon. As I mentioned above, you’ll have to submit data to the GSEs through their new platform for any loan that is originated before or on December 1st of this year. Then everything has to be compliant shortly thereafter.
Even though these deadlines are quickly approaching, we can help you get a plan together for compliance so you won’t run into fees or pipeline delays. But the first step is finding out what’s changing and how your workflow will be affected.
All of our training classes last about 30 minutes. They are open to the public and entirely free. In each class, they’ll also give you some desk reference materials to make it much easier for you when UMDP takes effect. Don’t worry – these courses are NOT a dog and pony show for a la mode’s products. This is real, actual training you will use no matter what kind of appraisal management process you currently have. If you sell to the GSEs, you need to be in these courses.
See the UMDP Training schedule here and register now - www.mercuryvmp.com/help
Copyright - 2011 - LoanOfficerMagazine.com
Monday’s bond market has opened flat following a relatively uneventful open in stocks. The major indexes are mixed with the Dow up 12 points and the Nasdaq down 6 points. The bond market is currently unchanged from Friday’s close, which will likely keep this morning’s mortgage rates at Friday’s afternoon levels. There is no relevant economic data being posted today, leaving the stock markets as the likely culprit behind any changes to mortgage rates later today. If the major stock indexes rally, bonds should suffer and mortgage rates could move higher this afternoon. However, if both indexes move into negative territory, we may see rates improve slightly later today. Tomorrow morning has two highly important economic reports scheduled for release. May’s Retail Sales report will be posted at 8:30 AM ET, giving us a very important measure of consumer spending. Consumer level spending is extremely important to the bond market because it makes up two-thirds of the U.S. economy. Analysts are expecting to see that retail-level sales fell 0.7% last month. A larger decline in sales would be good news for the bond market and could lead to lower mortgage rates tomorrow. Also being posted early tomorrow morning is May's Producer Price Index (PPI). It will help us measure inflationary pressures at the producer level of the economy. There are two readings of this index, the overall and the core data. The core data is considered to be the more important one because it excludes more volatile food and energy prices. A large increase could raise concerns about inflation rising as soon as the economy gains some traction. This would not be good news for bond prices or mortgage rates since inflation erodes the value of a bond's future fixed interest payments. Rising inflation causes investors to sell bonds, driving prices lower, pushing their yields upward and mortgage rates higher. Analysts are expecting to see an increase of 0.1% in the overall index and a 0.2% rise in the core data. It will not take much of a variance from forecasts for the markets to react, which would most likely lead to changes in mortgage rates. Overall, look for tomorrow or Wednesday to be the biggest day of the week. Not just due to the fact they bring the release of four of the week’s seven reports, but also because of the importance of some of those releases. We saw plenty of movement in the markets and mortgage pricing last week and it is quite likely that this week will be similar. The stock markets will also heavily influence bond trading and mortgage rates, so watch the major indexes in addition to the economic reports. The fact that the Dow closed last week below 12,000 will be headline news if it does not bounce back and stay above that level. It is highly recommended that you maintain contact with your mortgage professional this week if still floating an interest rate. If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
©Mortgage Commentary 2011
Friday’s bond market has opened fairly strong due to early stock weakness. The stock markets heading into the weekend with a solid negative tone as the Dow is currently down 141 points while the Nasdaq has lost 31 points. This has caused funds to shift into the bond market, pushing it up 12/32. However, we will still see an increase in this morning’s mortgage rates of approximately .250 of a discount point due to weakness late yesterday. The bond market soured further after the results of the 30-year Bond auction were posted. They revealed a lackluster interest at best in the longer-term securities, causing selling in the broader bond market. This led to some lenders to revise their pricing higher late yesterday, while others may have waited until this morning to reflect those losses. There is no relevant economic data scheduled for release to the mercy of stocks. The stock selling has made bonds more attractive, especially as the Dow falls below 12,000. The benchmark 10-year Treasury Note yield has fallen back below 3.00% due to today’s gains, which is good news for mortgage shoppers since bond prices and yields move in opposite directions. Bond prices rising equates to lower yield and since mortgage rates follow yield trends, we would like to see the yield stay below 3.00%. Unfortunately, it has failed to stay below that level each time it has recently broke it. Therefore, I believe we can expect to see some gains given back in the near future, causing upward revisions to mortgage rates. Next week is much more active in terms of relevant economic data being posted. We should see mortgage rates move noticeably multiple days as investors and analysts try to gauge just how temporary this economic slowdown is. There is nothing of importance scheduled for Monday, but Tuesday has two very important releases and there is data scheduled every other day. Look for more details on next week’s events in Sunday’s weekly preview. If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
Remember filling out a W-4 form when you were first hired? It’s the form that determines how much money your employer withholds from your paycheck to pay federal and state taxes—based upon the number of “allowances” that you claimed.
But have you checked to see if it’s still applicable? Consider adjusting your W-4 form if the following applies:
To INCREASE the amount of taxes from your paycheck, you will need to DECREASE the number of dependents. You can also specify a dollar amount—like $50 per pay period. Likewise, to have LESS money deducted, INCREASE that number.
I recommend that you check your withholding every year — right after you’ve filed your income tax return. The IRS offers a withholding calculator at IRS.gov and you’ll need your most recent tax return and current paycheck stub. Or, ask your tax preparer to help you adjust your withholding so you don’t own too much — or get a large refund from the IRS — at the end of the year.
Creditscoring is that mysterious number that is assigned to your when you apply for a mortgage, a car loan and your insurance company even runs one to determine your premium amounts.
So, there’s a new website, created by the Consumer Federation of America and Vantage ScoreSolutions if you’d like to know how credit scoring works.
The quiz has 25 questions—and the website will give you the answer to those questions thatyou missed.
There are new credit scoring disclosure rules going into effect in July 2011 where lendersand the credit bureau must provide you with detailed information when you applyfor credit. It will help you understand your credit score and in finding errors on your report (that you may not evenknow about). So stayed tuned!
Fannie/Freddie/FHA/VA/USDA
Maximum Seller Contribution Chart
With all the mortgage rules changes, I know it’s difficult to keep updated on exactly how much money a seller can contribute to helping a client buy a home. Here’s a handy chart that covers all the loan programs and the percentage the seller can pay.
FNMA
FHLMC
FHA
VA
USDA
Owner Occupied
LTV/CLTV
90.01 or greater
75.01 to 90.00
75.00 or less
3%
6%
9%
Maximum all loans
4%
Closing cost & points
Plus up to 4% sales concession
Total: 8%
No Seller Contribution Limit*
Closing cost can also be financed up to 100% of appraised value.
Non-Owner Occupied
2% Maximum all LTV’s
N/A
Homepath
Follow standard maximum’s with the exception of LTV’s over 90% allow up to 6% concessions
*Some investors have an internal policy limiting seller contribution to 6%
As a Real Estate Agent, one of the best things you can provide to your clients is advice. Most homebuyers and sellers look to their agents as a source for information to help guide them through a very complex process when it comes to buying and/or selling a home. During the course of your real estate career, you will undoubtedly have the experience of working with numerous local professional service providers with varying results – both good and bad. As a trusted consultant, you are in a clear position to provide insight as to which providers may be best suited to work with your clients.
Realtors are often asked to provide referrals for: Insurance Companies, Home Inspectors, Attorneys, Mortgage Lenders, Surveyors, Appraisers, Landscapers, Tradespeople, & even other Realtors.
One of the important referrals you may make includes a reputable Mortgage lender. If you want your transaction to close, on time, with the least amount of stress for you & your clients, then you need a go-to person in your area to refer valued clients who need financing.
If you are a Real Estate Agent in the Salt Lake County area and don't have a lending partner like this, then please contact me because I will do all of the above items and more. It would be my pleasure to discuss how my team can help you and your clients have an incredible mortgage experience.
Where is South Jordan, Utah?It is located in beautiful Salt Lake County.
Here are some informative statistics about South Jordan Utah:
Population in July 2009: 54,631. Population change since 2000: +85.6%
Zip codes: 84095.
Estimated median household income in 2009: $92,633 (it was $75,433 in 2000)
Estimated per capita income in 2009: $27,984
South Jordan city income, earnings, and wages data
Estimated median house or condo value in 2009: $382,624 (it was $222,700 in 2000)
Read more about South Jordan statistics by clicking on the link.
Looking for something to do in South Jordan? Click here
If you are looking for a home in South Jordan and need financing or refinancing on an existing South Jordan loan, just go here: Click here
If you have fun facts or things you would like to share about South Jordan Utah, just leave your comments.
Thanks!
This time of year I encounter buyers who are relocating, and first-time homebuyers. Buyers often have questions about neighborhoods, and they expect answers. But I cannot legally answer some of their questions because of our fair housing laws.
Buyers tell me that they want an affordable home in a decent neighborhood, or they ask me if a particular neighborhood is good or bad. This is the type of information the buyers really want, and sometimes expect Realtors to supply. We cannot say that a neighborhood is good or bad, and even if we could our answers would be subjective.
Homebuyers get frustrated with me. They feel as though I am not helping them because they know that I know the city very well and that I know each neighborhood in the city, but I refuse to answer the “good neighborhood/bad neighborhood” question.
They want what they think is some kind of an inside scoop. There isn’t any inside scoop and there isn’t an answer to the good neighborhood/bad neighborhood question.
Buyers ask me to recommend a neighborhood and I can’t do that either. I tell them that I can answer specific questions or show them where and how to get the information they seek. I sometimes suggest they ask their friends how they like the neighborhood they live in.
Buyers are often interested in the crime rates in a neighborhood, which is easy for them to look up. They want to know about the schools, and I can help them with that. Some want to know more about the demographic makeup of the neighborhood.
I am working with a single father who wants to make sure that there are children in the neighborhood for his son to play with. One simple thing parents can do is look for swingsets. If there are swingsets, there are probably children to go with them. If I encouraged him to live in a neighborhood with a large population of children, I would be guilty of steering.
The last time I took my required fair housing training, I took it online and I flunked the test and had to take it twice. I kept breaking the law — at least on the test. I support fair housing and I understand it and I understand why we have the laws. It is the language and the rules for following fair housing laws that I struggle with.
That language can be confusing. I cannot advertise a home as a family home or as a great place to raise a family, but on our multiple listing service homes are put in categories. They are labeled as single-family homes or multiple-family homes, condos or townhouses.
Some of my listings have two living rooms — in the historic homes we can call them parlors. The second living room is always called a “family room.” I don’t understand why the term family room is not a violation of fair housing language.
We also use the term “master bedroom.” I don’t even know where to start with that term. Are the other bedrooms for servants? Usually a master bedroom is the largest bedroom in the house. It doesn’t need to be called the master bedroom. It could be called the owner’s bedroom, or simply the biggest bedroom.
I have to keep fair housing in mind when I write my blog. I have found comments on it left by the friendly folks at the federal Fair Housing Administration. Apparently they do some monitoring. I have heard tales of undercover fair housing agents visiting open houses. I am convinced that is an urban myth, but I am not sure.
Craigslist is a popular place to advertise homes for sale or apartments for rent. The site does post reminders and warnings about following fair housing rules. Craigslist was sued in February 2006 by a Chicago lawyers’ group, which charged the site with violating fair housing laws by allowing discriminatory language in postings of the site’s users. Craigslist was ultimately found to be just a “messenger,” and not liable for the actions of its users.
But in a separate ruling, a federal district judge found that another site, Roommates.com, could be held liable for Fair Housing Act violations because it required users to disclose details such as gender and sexual orientation and family status, and allowed others to use such information in selecting roommates.
I am due to take my mandatory fair housing class again this year. I plan on taking it online like I did last time. It is likely that I will have to take the test a couple of times before I pass it.
The idea of fair housing and what it means is easy to understand — it’s the language that trips me up. And sometimes my clients trip me up by asking questions that I cannot legally answer.
Original Article: Teresa Boardman is a broker in St. Paul, Minn., and founder of the St. Paul Real Estate blog.
You definitely don’t have to be part of a couple to buy a home. Were you aware that 20 percent of recent buyers were single women, while single men only make up 12 percent of the total.
The median household income of buyers in the survey was $72,000.00, with first-time homebuyers coming in at a median of $60,000.00 and repeat buyers with a median income of $87,000.00.
And why are they buying homes? Well, people obviously need a roof over their heads, but fully one third of buyers in the survey say their primary reason was simply because they wanted to be a homeowner.
Have you bought a home in the last 12 months? If so, what was the reason you bought your home? I welcome all of your comments!
Mortgage Bonds are starting the day and January where they left off - in volatile fashion.
Prices are sharply lower as Stocks open the day stronger. News that China's manufacturing slowed from it's torrid pace is giving Stocks around the world a boost as it appears that the recent rate hikes and tightened lending standards may already be having an effect on cooling down the economy and inflation. Global Stock investors have been concerned that China's economy may have been overheating and that inflation would put a damper on global growth. With today's report, and again it is just one report, there is a sense that the Chinese economy may just be slowing down to a more moderate growth pace, with inflation cooling. With Traders back at their desks, today's sell-off in Bonds is coming with some more conviction than the exaggerated price moves we saw last week, when trading volume was thin.
The last 60 days have been very volatile for Mortgage Bonds, and at times it may seem very hard to get a sense of where rates are headed in 2011 - especially with all the noise and confusion in the media. But one line we can always revert back to is "don't fight the Fed". Stocks finished 2010 strong, with the S&P 500 gaining 13%, thanks to QE2 and it appears they are starting 2011 where it left off. With all the economic stimulus hitting the economy, there is a sense that economic growth may pick up more than previously expected. And this growth, over time, will lead to gradually higher rates. Will mortgage rates move dramatically higher in the near term? We think not, but at the same time rate probably won't get that much better either and any improvement may be short lived.
On Friday - we will get the Jobs Report and this one may have a big impact on all themarkets. Expectations are for 135,000 jobs to be created in December. If this reportcomes in beneath expectations, Stocks could take a breather from their rise and allow forsome bond pricing improvement. But should the number beat expectations, it is very toughto see Bonds making any meaningful improvement as continued signs of US economicgrowth will weigh on prices.
FROM THE MARCH 2009 LOW
Mortgage Bonds are starting the week higher, as prices test a ceiling of resistance at $99.78, the intraday low of December 7th, 2010.
There are no economic reports set for release today, but the Treasury will unload $66B worth of securities Tuesday through Thursday this week.
Let's start the week off with absolutely incredible news!
Are you sitting down?
Here it goes: The economy is improving!
Even though last Friday's Jobs Report didn't meet the lofty expectations created by ADP, the prior month's readings did show more job growth than previously reported, and the trend is clearly improving. For those longtime members reading our daily material, you have become familiar with how the Labor Department derives the headline jobs number through the use of what is called the "Birth/Death model" of estimating. But let's do a quick refresher together. The Birth/Death ratio comes from the Bureau of Labor Statistics, by their practice of physically calling businesses and tracking how many jobs they have added or removed, and then making some estimations or assumptions based on past trends...and here's where the problem lies.
When the economy is shifting to an improving trend, like we are seeing at present, this "estimating" of previous trends can cause lower than expected headline numbers within the Jobs Report, and it will then lead to the showing of more jobs created in future revisions to the Jobs Report. We saw this just last Friday, as 70,000 more jobs were created in October and November than previously reported, and we should not be surprised to see more soft headline numbers followed by upward revisions in later months…but clearly the labor market is on the mend.
For us in the mortgage and housing world, this is good news on the housing front, as we've been saying that the economy needs to get better in order to see an improvement in housing. Once people feel better about keeping their job or getting a new job, purchasing activity will rise, and values will follow. But on the other side of the coin, as the labor market and economy improve, mortgage rates will have to gradually rise as well. Make this message clear to your referral partners, clients and prospects.
Remember the European wild card we've been discussing? For weeks we have been talking about how problems in Europe would help benefit the US Bond Market, and we are seeing that now. In fact, Friday's sharp pricing gains were not just a result of the only mildly disappointing Jobs Report, but also from the ongoing and persistent banking, debt and political problems in Europe…which is driving investors into the relative safe haven of US denominated assets like US Bonds. The other issue with the European situation is that it hampers global growth, and in turn hurts US Stocks - which are already ripe for some sort of correction - and this can further benefit Bonds. That said, remember that price improvements could be very fleeting, and go away quickly.
So how much better can Bond pricing get? Here's where the charts help us. A peek at the 4.0% Chart shows prices right up against a ceiling of resistance at the $99.78 area. If prices are able to break through this ceiling, the next clear ceiling lies at the 50-day Moving Average and then the always formidable 200-day Moving Average - which is 100bp above current levels. But let's not get too ahead of ourselves here, because there are a lot of "ifs" and in order to see any meaningful gains, prices have to bust out and get above the nearby resistance to even have a chance. On a positive technical note - the Bond does have a Rising Floor of Support beneath it - pull up the chart and check the box for Trendline to see it.
And as if there isn't already enough happening this coming week, today is the start of 4th Quarter corporate earnings season, with Dow component Alcoa kicking it off after the close today. The earnings and future guidance can surely have an impact on Stocks and thus Bonds - so let's watch this closely and follow the Market News on the Bond page for results as they are reported.
We will start the day by Floating - but be mindful that there is a lot of pushing and pulling within this volatile Bond market coming from the Euro, economic reports, Treasury auctions, global inflation and rate hikes, QE2, Stocks, 4th Quarter Corporate Earnings, lions and tigers and bears, oh my!
Oh my, oh my, oh my!
Hope you enjoyed reading today's blog post!
Success is yours,
Kelly
Overall, the economy looks to have stabilized from the crisis situation a couple of years ago. Although there are still some global economic concerns in Europe, the U.S. economy appears positioned for continued growth and strengthening – especially in terms of meeting the growing demand for goods in Asian and Latin American countries. What does this mean for you personally? Professionally? Economically?
The stock market finally had a good year in 2010 and saw some strong earnings to help continue the climb out of the financial crisis a couple of years ago. With the strong finish to last year, the stage is set for another good year in stocks and that is news that gives us all something to look forward to.
The positive economic news and corporate earnings in 2010 should also help the labor market strengthen in 2011. Of course, it won’t turnaround over night, but will instead start out slow and build up to more noticeable improvements in the latter part of the year. An uphill increase is worth the wait, I would much rather see this than continue to see a decline in the market. Patience will get us through this. With that said, don’t mistake those improvements for a complete rebound, since we probably won’t see significant improvement in the overall unemployment rate until after 2011. Still, any positive news for the labor market is good news for the economy – and for families across the country!
What Does All That Mean to Housing and Home Loan Rates?
The economy, stock market, and employment are all closely related. For example, an improving economy leads to better corporate earnings and increased manufacturing demand, which in turn leads to increased hiring as companies try to meet that demand.
In addition, all of the aspects discussed above influence the housing market and home loan rates. One of the biggest influences is employment, since people who are unemployed, under-employed, or afraid of losing their jobs are less likely to purchase a new home. So the improvements in the labor market will be good for the housing industry as well. And in terms of home prices, a more secure employment market can help home prices stabilize – since fewer people would be at risk of losing their homes to foreclosure.
That said, it’s important to remember that all real estate markets are local…and that means there can be enormous variations across the country. Areas where employment is struggling, the housing market will continue to struggle as well. However, in many parts of the country where the bottom has been tested and employment is improving, we’ll see the housing market on the mend in 2011.
If you are ready to refinance or you are purchasing a home, simply give me a call and let's get you taken care of.
Because of the recent changes to the condominium approval/review processes it is absolutely imperative that you understand what type of property you are dealing with BEFORE you move forward with listing or selling a property. Condominiums present financing challenges better addressed at the beginning of the transaction, as opposed to later. For example: There’s no point writing up an offer at midnight for a buyer when this project isn’t on an approved list and the project wouldn’t qualify even if it was submitted for review.
So what should you do?
1. Do not accept MLS information or verbal information. Get a copy of the legal description.
Blindly accepting what you read on the MLS listing or what the current owner says isn’t smart. Very few agents or owners have actually READ the legal description. Do you know where to go to find a copy of the legal description? If not, you need to ask your realtor where to go to obtain a copy, or you can call me and I will help you obtain the resources you need.
2. Do NOT rely on the project name for determination.
Many projects have misleading names. The developer names the project “Shady Pines Townhomes” so people assume that because the word “Condominium” isn’t mentioned that it’s not a condo and doesn’t require project approval. There is a difference between a condo and a townhome, as always, buyer beware: Do your homework!
3. READ the legal description – Does the legal description of the unit include the lot?
If not you probably have a condominium form of ownership. Check the project documents.
NOTE: There is a special exemption from project approval for “Site Condominiums” defined as detached units with no attached/shared garages etc. Site Condos are typical for only a few states.
New Energy Improvement Financing
Can Help You Sell More Homes
Eligibility
ALL transactions loan types are permitted except:
o Purchase
o Refinance
o Renovation/Home Improvement Projects
LTV = lesser of the “as completed” appraised value or the sum of the purchase price plus the cost of the energy improvements
· ALL Occupancy Types are allowed
· Eligible properties
o ALL one-unit properties are eligible
o NO Manufactured Homes
o NO Co-op properties
Requirements
· Limited to 10% of “as completed” value – no minimum dollar amount
· Must have Home Energy Rating Systems (HERS) Audit Report
o Improvements must be cost effective
· Must have contractor – NO Do-It-Yourself projects
Borrower must be given $250 credit towards costs from Lender/Fannie!
I know Real Estate and I am one of Utah's TOP Mortgage Lenders! Not only can I answer your questions about Fannie Mae loans, I can also answer your questions about VA loans, first time home buyer opportunities, and several other loan programs that may be your solution to buying a new home! Now is one of the BEST times to purchase real estate. Rates are still LOW, prices are the lowest they have been in years, and you don't want to miss this opportunity.
If you think you can't qualify for a home loan, you may be surprised! Just give me a call and we will put the pencil to work for you!
Are you in a position where you are attempting to avoid foreclosure? Maybe you are looking at lease to own options because of a situation where your credit is less than stellar. There are several scams out there that you need to watch out for. Here are a few of them that you should be protecting yourself from:
Phony Counselors – Scam artists present themselves as “counselors” who will negotiate a deal with the lender IF the borrower pays a fee first. Some scammers even require that all the mortgage payments be made to them while they negotiate on the borrower’s behalf.
Fake “Government “ Modifications – Scammers will claim to be approved or affiliated with the government. Their documents and website will use terms like “federal” and “TARP”. They will claim a fee is necessary to use the modification program. Borrowers should call their lenders directly to find out if they qualify for a government loan modification. A little communication with your lender could save you from being scammed.
Bait and Switch – The scam artist tells borrowers that by signing loan modification documents the existing mortgage will become current. What the borrower is really signing surrenders title to the scammer in exchange for a “rescue loan”.
Rent-to-Own or Leaseback Schemes – Scammers tell borrowers that if they will surrender title to their home that they can stay there as a renter, and then buy the home back in a few years. The scammer then raises the rent over time to the point they can’t pay. The scammer evicts the borrower and sells the home. Another variation is when the scammer has the borrower sign over title and move out. They promise to find a buyer for the home and share part of the profit once the home is sold. What really happens is that the scammer rents out the home, never making the mortgage payments and lets the lender eventually foreclose, while they walk away with all the rent money.
Bankruptcy to Avoid Foreclosure – The scammer promises to negotiate a refinance with the lender for a fee. He pockets the fee and files a bankruptcy in the name of the borrower without the borrower’s knowledge to temporarily stop the foreclosure process. The borrower thinks things are going well because the collection calls stop.
Please do yourself a favor and protect yourself. If you receive offers from callers and they seem to good to be true: call your trusted mortgage lender. The few minutes you spend counseling with your lender could save you from losing your home or thousands of dollars.
VA loans offer a truly unique, money and deal-saving option that few understand. While you may know that VA has a seller concession limit of 4% of the sales price, you might not know WHAT is included in that 4%. Would you like to know what is included? I thought you may be interested:
Sellers can pay up to 4% in sales concessions to include:
Payment of closing costs and normal discount points (that aren't for the purpose of buying down the interest rate) are NOT included in the 4% limitation.
So don't look at a sales price of $200,000 and calculate that a seller can only pay $8,000 (4% of $200,000) on behalf of the borrower. A seller could pay $8,000 towards the buyer’s prepaid taxes and insurance and debt PLUS $3000 towards the buyer's closing costs, totaling $11,000 paid by the seller.
This would still comply with the 4% limitation because closing costs are not included in the 4% limitation.
Call me, Kelly Whytock for complete information on assisting your VA borrowers!
Not every community qualifies—but if it does, it’s the best thing since sliced bread! Check your listings to see if the property location qualifies http://eligibility.sc.egov.usda.gov. Generous household income limits also apply and you can check them out at this link as well. Generate phone calls by letting everyone know 100% financing is still available for eligible properties and borrowers. Add an additional note to the listing info and mention it in your ads.
· No Down Payment Required and Zero Move-in cost is possible
· 30 Year Fixed Rate Loan
· 100% Loan plus you can add the 3.5% Guarantee Fee on top of that
· Finance Closing Costs & Prepaids if Appraisal Is Higher Than Sales Contract
· No stated maximum loan amount; maximum loan based on repayment ability
· No monthly Mortgage Insurance
· No cash contribution required from borrower.
· Liberal Income Limits (by county)
· Gift funds and grants allowed.
· No Cash Reserve Requirements
Property Qualification Highlights
§ Existing Home
§ New Construction
§ New Manufactured Homes (Existing MH not allowed)
§ Modular Homes
§ Town homes
§ Condos (Must be approved projects)
Prohibited Loan Purposes
· Co-signors not residing in the household
· In-ground swimming pools unless waiver granted
· Furniture and personal property
· Income producing property
· Excess land typically exceeding 30% (Site Value) of total property value
· Previously occupied manufactured homes
Bidding & Buying HUD homes—it seems to be the hot ticket in town.
However - Remember these key points to avoid problems and advise buyers:
"The information provided has been based on rules and regulations issued by Federal Agencies and interpreted for you by MortgageCurrentcy.com. Interpretations are not guaranteed but we attempt to make them both easy to understand and help you sell more real estate. Check with your local and state authorities to ensure that you meet all requirements and disclosures."
Wednesday’s bond market has opened in positive territory again as investors prepare for today’s FOMC meeting adjournment. The stock markets initially opened in positive ground but have since slipped into negative territory. The Dow is currently down 16 points while the Nasdaq has fallen 8 points. The bond market is currently up 10/32, which should improve this morning’s mortgage rates by approximately .250 of a discount point.Today’s only relevant economic data was September’s Factory Orders report. It revealed a 2.1% increase in new orders at U.S. factories for durable and non-durable goods. This was a larger increase than expected, indicating strength in the manufacturing sector. However, this data is considered to be only moderately important and has not influenced this morning’s mortgage rates.This week’s FOMC meeting will adjourn at 2:15 PM ET today. The markets are not expecting a change to key short-term interest rates, but all eyes will be looking for the Fed’s next move to boost economic activity. There is plenty of speculation that they will announce another debt purchase program after this meeting. I believe a lack of an announcement will cause the markets to react negatively. If they do say that a relatively large amount of debt will be bought, meaning the Fed will add liquidity to the mortgage markets, we could see a sizable rally in bonds this afternoon. That would likely lead to a noticeable downward revision to mortgage rates later today.Look for an update to this report shortly after the markets have had an opportunity to react to the post-meeting statement and announcement. There is economic data scheduled for release tomorrow that may affect mortgage rates, but they will be addressed in the afternoon update. View this blog often for the latest mortgage news and loan advisories.If I were considering financing/refinancing a home, I would: Lock if my closing was taking place within 7 days. Float if my closing was taking place between 8 and 20 days.Float if my closing was taking place between 21 and 60 days. Float if my closing was taking place over 60 days from now. This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
Thanks for visiting our blog. We look forward to your comments and feedback. Thanks!
One of premier housing analysts for Moody's Dismal Scientist, Celia Chen recently co-authored these projections for the housing industry:
"Prices could decline more than anticipated next year, once the processing issues are resolved. The number of loans affected by recent servicer-imposed moratoriums and the length of those freezes will determine their effect on the housing market and the broader economy."
"...self-imposed moratoriums affect approximately 27% of all properties in foreclosure."
"About 38% of foreclosure filings and 41% of foreclosure inventory are in judicial states, according to RealtyTrac."
"...Fannie Mae has suspended sales of properties purchased from their servicers."
"Since, according to RealtyTrac, foreclosure sales represent 31% of combined US new– and existing-home sales in September, the foreclosure suspensions could depress home sales by 84% until they are lifted. This would lower the foreclosure share of home sold to 25%, a substantial reduction that would tend to cause house prices to rise rather than fall."
"Once the [foreclosure] issues are resolved and foreclosures are completed, distress sales will cause house prices to dive again."
"The foreclosure freeze means that it will take longer to work through the huge backlog of distresses homes."
"Uncertainty…will hold banks back from lending to both businesses and households. Despite being flush with cash, banks will remain reluctant to lend more aggressively without clarity about the impact on their capital positions and profitability."
"Servicers are optimistic that few loans have been improperly processed…Further, the whiff of improperly foreclosure filings may embolden borrowers and their lawyers to tie up foreclosures in the legal system."
"Higher borrowing costs could weigh on housing demand…Servicers will pass along the costs of the current delays - for property preservation, taxes and insurance, additional court filings, attorney fees. And labor - to consumers in higher mortgage interest rates."
"Constrained credit will constrain housing demand…Buyers who were planning to buy non-distressed homes may put off purchases until the situation is resolved, fearing another wave of foreclosure sales that could drive down values. Additional, buyers might be wary of purchasing foreclosed homes from any servicer, knowing the potential for litigation. The consequence of this deterioration in confidence will be some combination of fewer home sales and lower prices."
I recommend locking if you are closing in the next 30 days.
All the talk of Quantitative Easing is lowering the value of the US Dollar and encouraging investments in the US stock Market. We will likely see a good market reaction and a good Bond reaction this week.
The fed could announce the purchasing of Mortgage Backe3d securities and bonds on November 3rd which will be a big play in their Quantitative Easing Plan. This should keep bonds low for the near future.
The bigger boost will be for Exports will should hasten our recovery.
Existing Home Sales came in higher again this month as consumers are realizing the benefits of low rates and Low home prices and getting there dream home at 20, 30 even40% discounts off of 2005-2007 home prices.
Please call me 801-253-HOME(4663) if you or anyone you know has any questions regarding a home loan purchase or refinance.
Thanks, Kelly Whytock
With recent "good" news in the labor market pulling money from the Mortgage Bond market we may have seen the end of the lowest interest rates ever.
Dont loose out. call me and lock your rate today... Back to work for me. Call Kelly 801-253-4663
As you read this please note that for comparable loans (25% equity 740+ credit score and loan amount of 300,000 or more) my rates at RidgeView Mortgage are from .2 to .4% better that the national average. And I will always beat anyones fees at the same or better rates!!! Call Me for a free 5 minute quaote 801-253-HOME (4663).
NEW YORK (MarketWatch) -- Fixed-rate mortgages continued their decline to record lows this week and the 5-year adjustable rate also reached a new low, Freddie Mac reported Thursday.
"Low rates are helping to heal many battered local housing markets by increasing home-purchase activity," said Frank Nothaft, vice president and chief economist at Freddie Mac, in a news release.
The 30-year fixed-rate mortgage averaged 4.44% for the week ending Aug. 12, according to Freddie Mac's weekly survey of conforming mortgage rates. It averaged 4.49% last week and 5.29% a year ago. The rate is now at its lowest level since Freddie Mac started tracking it in 1971.
The 15-year fixed-rate mortgage averaged 3.92% this week, down from 3.95% last week and 4.68% a year ago. It is also at its lowest point since Freddie Mac started tracking the rate in 1991.
Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 3.56% this week, down from 3.63% last week and 4.75% a year ago. The ARM is at its lowest since Freddie Mac began tracking it in 2005.
And 1-year Treasury-indexed ARM averaged 3.53% this week, down from 3.55% last week and 4.72% a year ago.
To obtain the rates, the 30-year fixed-rate mortgage and both of the ARMs required payment of an average 0.7 point. The 15-year fixed-rate mortgage required an average 0.6 point. A point is 1% of the mortgage amount, charged as prepaid interest.
Rates broke record lows after reports of a sluggish economy, Nothaft said.
April Lee is a MarketWatch Reporter based in New York. By April Lee MarketWatch
With Mortgage Bonds trading at a higher level but prices continuing to hit against tough resistance at all-time highs, we are safe watching rates today. The gains are being led by modest inflation numbers from the Consumer Price Index and lowering Stock markets.
The Massive 2300+ Page Financial Regulation Bill was passed yesterday in the Senate by a margin of 60-39 and may be signed by President Obama in a few days to become law. The Bill calls for a new consumer protection agency and prohibits Banks from taking risky bets.
With Mortgage Bonds trading higher hence keeping rates lower, I will recommend a Floating rates for today. If you have any reason to look at refinancing or maybe purchasing a new home please call me today for a free no cost Market analysis and a Payment and fee estimate. Call today Kelly at 801-253-HOME.
Make it a great Day!
For now, I recommend floating, as I watch to see if the nearest level of support holds. I will let you know if a change of course is necessary.
If you have a rate at 5.0% or higher is is starting to make sense for many people to refinances at the Historically low rates.
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