Saturday, June 30, 2012
Chicago Area Real Estate Residents Facing Higher Property Taxes
Home Used for Filming ?Giuliana and Bill? Listed for $2.395 Million
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/j7bahL6O8GI/
Florida Mortgage Update for the Week Of June 4, 2012
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Source: http://www.floridamortgageblogger.com/2012/06/04/mortgage-rates-week-june-4-2012/
News Affecting Mortgage Interest Rates for 07/19/10
Source: http://www.homemortgagenewsblog.net/news-affecting-mortgage-interest-rates-for-071910.html
Renting Trends in Urban Apartments
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/TO_E3n9ixa4/
Near-record-low mortgage rates expected all summer
The average rate for conforming 30-year fixed-rate mortgages rose by 3 basis points (0.03 percent) to 3.81 percent. Conforming 5/1 hybrid ARM rates remained unchanged from the previous week, closing the [...]
Live Like Pamela Anderson: Her Malibu House is For Rent
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/MeOCxlBpSRc/
Chicago Illinois Mortgage Rates Week in Review for the Week Ending 04/20/2012
FHA Streamlines and The False Claims Act - 3x Damages? Conference Call on Basel III for Small Banks
President Obama just played his 100th round of golf since being elected President. In 4 years he has gone through more white tees than the cast of Jersey Shore. I am not a golfer, but many in the business are, and people are most focused on a) whether or not the nation is going to nearly shut down for an entire week, next week, given the middle-of-the-week 4th holiday, and b) making sure locked pipelines are closing. Will lenders close those pipelines and meet delivery timelines for trades? Were the hedges put on correctly, or will trades have to be rolled/extended and at what cost? Life in mortgage banking...
And mortgage bankers continue to expand. Freedom Mortgage Corp. is looking for experienced AE's in most markets across the country. Freedom is licensed in all states, has its FNMA Seller/Servicer & GNMA Servicer/Issuer approvals, and currently services in excess of $13 billion (retaining servicing on most of its current production). The lender offers the usual products to brokers but also the FHA Streamline, VA IRRL, and HARP loans. If you are interested in talking with Freedom please contact Keith Bilodeau, who recently joined Freedom as their VP, as its Director of Recruiting. Keith can be reached at keith.bilodeau@freedommortgage .com; Freedom's website is freedomwholesale.com.
Today at 1PM EST investment banker KBW is offering a conference call to discuss "Proposed Basel III Capital Rules for U.S. Banks -- How They Affect Regional and Community Banks, and What Bankers Should Be Doing Now." Basel III doesn't only drive down servicing values, which directly impacts borrower's rates & prices, and anyone who believes it only impacts the multi-billion dollar banks is mistaken. "These far-ranging rules will affect all banks as they are implemented in various stages over the next ten years. But bankers need to be aware of how they may affect their industry and their banks, right now, during the comment period, if there is any hope of molding the final product. On the call will be five KBW specialists on bank regulatory issues and research analysts." It will be followed by a Q&A session. Dial-In: (888) 212-5201, Passcode: 9343267; during the call, slides will be made available by following this link.
More lenders & investors, such as Stearns & Nationwide, changed their FHA Streamline pricing or polices. (See recent investor/agency/webinar updates below.) Why is this continuing? The headline from a well-known investment bank caught my eye: "Enormous Liability Poses Problem for FHA Lending." "Several of the mortgagees have publicly indicated that the moves are being made due to secondary market conditions or a desire to maintain service to existing borrowers. But what is really behind the retreat are emerging government actions and potentially enormous liability in originating and servicing FHA-insured business - and of course originators love the product given the low cost to process and service a streamline refinance. Out of the 237,698 refinance transactions for $47 billion that FHA has endorsed so far during fiscal-year 2012, around 53 percent have been streamline transactions per Mortgage Daily."
The piece goes on to discuss the "potential liability associated with originating and servicing FHA mortgages, especially streamline transactions." Per Dave Stevens, quoted in the piece, many FHA mortgagees are being contacted by the HUD Office of Inspector General about auditing issues, and concerns are increasing about accusations of False Claims Act violations. "The real issue here is reps and warrants, risks associated with originating FHA loans and the huge penalties that are involved in the FHA program if you make an error," Stevens said. "He explained that with defects on loans sold to Fannie Mae and Freddie Mac, the worst-case scenario is repurchase liability or indemnification. But errors or defects discovered on FHA-insured loans that go bad where an FHA insurance claim has already been filed can be considered a violation of the False Claims Act. 'That means you've filed a claim on a loan that should have never been insured in the first place and it violates the False Claims Act,' Stevens explained. 'So, the difference here is that the False Claims Act comes with treble damage risk, meaning you pay three times the outstanding balance of the loan. Not three time the net of the loss; three times the outstanding balance of the loan.' While the extreme liability applies to both purchase and refinance transactions, streamline refinances have default rates that are twice as high as non-streamline transactions -- including fully underwritten refinances. Another problem outlined by Stevens is the length of time it takes to foreclose on an FHA loan as a result of the loss mitigation and loss intervention required by law."
Speaking of changes, here are some recent investor/agency/webinar updates, providing a flavor for the environment. As always, it is best to read the actual bulletin.
(This is the last darned note on cancelling MI for Freddie Mac, begun last week. A reader wrote, "To further clarify, mortgage insurance for a fixed rate mortgage on a one-unit primary residence can be automatically cancelled based on: 1. When the mortgage would have been cancelled calculated on the original value of the mortgaged premises. In other words, the calculation of 78% LTV is based on the original value of the mortgaged premises at the time of loan origination, not the current value of the mortgaged premises - or two - it is when the midpoint of the amortization period of the mortgage is reached. To illustrate, if a loan is amortized over 30 years, and the 360th month is December 2021, the midpoint is the 1st day of the 180th month, or January 2006. For an Adjustable Rate Mortgage or a Balloon/Reset Mortgage (either HPA or Pre-HPA), the above LTV ratio calculation and the midpoint of the amortization period are both based on the current amortization schedule following the most recent rate change. Paying down the mortgage principal will not eliminate the need for MI unless the current balance is 80% or less of the current value." So what the reader and the Guide are saying is the same thing: that the 78% is based on the original value and the original amortization. That is correct. But to pay down the balance to 78% and then cancel based on original value is not permitted.)
Nationwide Advantage Mortgage sent a note to clients, "Due to the current lending environment NAMC has decided not to purchase FHA Streamlines at this time. NAMC will honor (underwrite and purchase) FHA Streamline loans that have been reserved prior to Monday, June 25, 2012. We will still require compliance with NAMC overlays with respect to the FHA Streamlines registered prior to June 25th."
Stearns Lending spread the word, "Due to continuing shifts in the FHA streamline refinance market, the following guideline changes are being made to minimize risk and remain competitive...effective with all transactions closed after June 29, 2012: Maximum LTV limit of 115% will be placed on all streamline refinances without an appraisal and non-credit qualifying streamline refinances with appraisal. CLTV/HCLTV will remain at 100% if there is existing subordinate financing. Value will be confirmed by an AVM for loans without an appraisal. If an AVM is inconclusive or is not available, a conventional 2055 will be required. Employment verification process will not change. Employer name, address, and phone number must be included on the 1003, income should not be included. A verbal VOE will continue to be obtained; a 4506T will not be executed. 12 months ownership history is required for the property being refinanced." But with yesterday's rate sheet Stearns changed pricing (no longer cumulative) and improved its pricing on FHA Streamline loans from a flat 1.0% fee plus FICO adds to no fee and combining the FICO and streamline charges into a tiered FICO structure.
Pacific Union Financial told clients that it "offers FHA products with limited to no overlays, which allows you to approve more loans with confidence. Just document and underwrite in accordance with HUD handbook 4155.1 as amended by any applicable mortgagee letter and submit them to us...We will purchase your streamline loans regardless of current servicer, no credit report required, loans submitted without a credit report will be priced using a 580 FICO, if a credit report is submitted, the credit score can be as low as 560 FICO, all non-credit qualifying streamlines must have a mortgage only rating, no appraisal or AVM required."
A while back GMAC, regarding DU Refi Plus loans, clarified, "the borrower being removed is also removed from the deed and retains no ownership interest in the property, and at least one of the original borrowers is retained on the new loan." Condo Requirements: The requirement to confirm fidelity insurance coverage for condo projects has been removed. Modified Loans: Permanent Modified loans are eligible for refinance under DU Refi Plus as long as the borrower benefit is met. The terms of the permanent, modified loan must be used for this comparison. If the borrower was previously in a trial period plan, but denied a permanent modification, the original terms of the loan must be used. Borrowers who have not completed the trial period are not eligible. Leasehold Estate Eligibility: Leasehold review required. Subordinate Financing (The following applies to all loans): Subordination of existing junior liens permitted without maximum CLTV/HCLTV limitations. Subordinate financing repayment terms must be documented by the Note but review and compliance is not required. There is no restriction on the type of subordinate financing, excluding Down Payment Assistance Programs (DPA). DPAs are not eligible."
SunTrust reminded clients to prepare for Virginia Senate Bill 409, which amended Section 58.1-803 of the Virginia Code, effective on July 1, 2012, by eliminating the "same lender" recordation tax exemption for deeds of trust and mortgages securing a refinanced obligation and changes the calculation of the amount of the recordation tax to be paid.
Yesterday in the markets, despite some intra-day volatility, there was much ado about nothing. The U.S.'s 10-yr T-note is still in the 1.60's (closing at 1.61%) after closing Friday at 1.67%. Mortgage-backed security prices improved about .125-.250 - whether or not that improvement made its way onto rate sheets is unlikely. There are too many companies out there tampering with profit margins to either slow business down or cover future overhead costs - and rightfully so.
Today the economic calendar has the S&P Case Shiller home price index for April with consensus estimates seen improved +0.3 percent versus +0.1 percent last, and also June's Consumer Confidence - estimated to drop. And at 1PM EST the Treasury holds the first of its three note auctions this week with 2-yr. notes leading off at $35 billion. (A total of $99 billion will likely be sold by Thursday after 5yr notes and 7yr notes complete the monthly sales.) In the early going MBS prices are nearly unchanged as is the 10-yr at 1.61%.
Here are the "Top 10 things you wish you could say to your borrowers but can't." (Part 2 of 2.)
5. Since you only have $6 worth of verifiable liquid assets, I will need more of an explanation regarding the four $3,000 non-payroll deposits. Right now, it looks like you are collecting income from a meth lab in your rental garage.
4. At what point when I was talking about the importance of not moving money did you decide to pay off $20,000 in student loans?
3. It's a little less hard to believe these "tax liens" and "mortgage rates" on your credit report are the "first you are hearing of this."
2. It took you three weeks to get me your documents. I will need a little more than five minutes to get your docs out.
1. No, we don't really need all of your tax returns - just the random pages that you feel like sending.
...(read more)
Source: http://www.mortgagenewsdaily.com/channels/pipelinepress/06262012-basel-iii-small-claims-act.aspx
Mortgage Rates Decline To Record Lows?Again
Source: http://news.mortgagecalculator.org/mortgage-rates-decline-to-record-lows-again/
Koenig & Strey Adds Gallagher To Lincoln Park Office
Gallagher will join the Koenig & Strey Real Living family in their Lincoln Park office, bringing over 10 years of industry experience to her new position.
Gallagher, who has been a realtor since 1991, explains that she initially acted in theater productions prior to joining the real estate industry. She further explained that her father diversified in real estate, and it was because of ...
Source: http://feedproxy.google.com/~r/chicagoagentmagazine/news/~3/5NRzbVDR_8U/
Of Course the Borrower is Paying for Higher Lending Costs - Did Our Gov't Think Lenders Would?
Want some good news? My grades did not qualify me for admittance to Harvard (that is not the good news), but that institution put out good research material that is positive for housing this year. (Read: Harvard's State of Housing Report Says Home Construction Now Adding to GDP) Here is some on housing for 2012. If you have ADD, like me, at least click on "Signs of a Turnaround in the U.S. Housing Market: 2012 State of the Nation's Housing Report Released" and peruse the Executive Summary: jchs.harvard.edu. It is great for presentations and for selling anyone interested in investing in a mortgage bank or real estate firm.
Want some different good news? Yesterday oil declined below $80/barrel for the first time in about 8 months, and we find the major commodity index down 22% from its peak earlier in the year. So it should cost less to fill up that tank, or ge.t that gold "grill" at the cosmetic dentist.
Angela Merkel arrives at the Passport Control at the Charles de Gaulle airport.
"Nationality?" asks the immigration officer.
"German," she replies.
"Occupation?"
"No, just here for a few days..."
World War II humor aside, do we want Greece, and Europe, to overcome its current hurdles? Of course we do - but be careful what you wish for, as stability in Europe would tend to move our rates higher. (And they would, if it weren't for the fact that our economy is only limping along.) For example, this trader's note came across Wednesday: "The 10-year yield is 4 basis points higher this morning at 1.66% on news that Greece has formed a coalition government." Sure enough, Greece has formed a coalition government of New Democracy, PASOK, and Democratic Left, with Samaras to be the Prime Minister. I don't know all the specifics, but the "Troika" is expected to disburse within days the 1 billion euros from the March review that they have been holding waiting for the election outcome, and this should keep the government alive for about 1-2 months. If all goes well, Greece should receive the next tranche by late July or early August. However, the negotiations will be challenging, as growth is well below the program projections, fiscal consolidation is already off track, and reforms have been delayed during the long pre-election period.
And in Canada, Europe is hitting hard: Finance Minister Jim Flaherty and Mark Carney, the central bank governor, went public in a joint campaign to head off runaway inflation in the overheated housing sector. So the Harper government is trying to offset the negative impact of the central bank's pro-growth low-interest rate policy by making it harder for Canadians to take out mortgages. Flaherty said he acted to toughen mortgage rules for the fourth time in six years to slow the growth of a real estate bubble. He noted that the bursting of the U.S. housing bubble caused long-term damage to the American economy. He singled out the condominium market in Toronto as the most troubling hot spot. Buyers should conduct themselves prudently he said. "Some calming of the market is desirable." The government is tightening mortgages by reducing the maximum amortization for a government-insured mortgage to 25 years from 30 years. It is also lowering the maximum amount Canadians can borrow when refinancing a property to 80 per cent from 85 per cent of the value of their homes. Flaherty has complained in the past about people using their homes at ATM machines. And government-backed mortgage insurance will no longer be available for homes with a purchase price of more than $1 million.
The adage, "Don't put all your eggs in one basket" is being carried out by the OCC and Dodd Frank. Evaluating and limiting counterparty risk is a big deal, whether you're a mortgage company, a bank, a vendor, or a Realtor, so although this update applies to banks (a rule limiting the amount of lending exposure financial institutions can have to a single counterparty), watch for similar moves for everyone.
The average loan to value ratio of closed loans broke through 80% in May, the highest level since Ellie Mae began tracking these details in August of last year. (Read: Ellie Mae: Origination Insight Report for May) The average LTV was 81%, up from 80% in April and driven by an easing of LTVs on conventional refinances. Before MI companies pop the champagne, most believe that it is a sign that HARP 2.0 is helping more borrowers. The LTV of both closed and denied loans has risen steadily from 82% in August to 88% in May while debt to income ratios (DTI) and FICO scores have remained relatively unchanged. Many underwater borrowers have been attracted by the rate changes in HARP but have not successfully refinanced. Refinancing represented 54 percent of closed loans in May, down 2 percentage points from April. As might be expected, there were substantial differences in the profiles of loans accepted and denied by FHA and conventional lenders. What was surprising was the additional leeway FHA lenders appear to grant to purchasers over those refinancing.
I received a distressing/distressed note from a "governmentally aware" reader who was in a hearing yesterday with the CFPB. It would seem that a lack of knowledge of how a mortgage is originated, and how borrowers are helped by the mortgage industry in general, is still a big stumbling block. "The CFPB seems so out of control it is frightening. The brokers and bankers were again in full agreement. For almost 30 years I thought they would never agree on the color of the sun, but watching the CFPB deflect answers has brought them together. One person brought up that the issue was disclosures, and the CFPB responded with confusing answers that made it seem it was more concerned with deadlines than with doing what was right for borrowers and the health of the housing market. January 21st is looming! The CFPB seems to be micromanaging the issues from LO comp that a company might pay a 175% year-end bonus if you help engage in steering to what percentage can be placed into a 401k. Forget ERISA or the IRS - the CFPB spent more time figuring out pat answers and deflection strategies than anything else. It sounded like 100% of the feedback opposed the Flat Fee and they have no alternative."
The reader went on. "On one topic the CFPB claims unfettered exemption authority while on another claiming extremely limited. Then they claimed they had undertaken studies but when one member asked what study, suddenly it was 'life experience and observations of human nature.' Where is Barney Frank? He's the only one smart enough who can fix this mess. Dodd is off with his contributors in the motion picture industry. Barney broke it, then he can fix it - the CFPB doesn't seem to understand every 'hair brain' idea is going to cost the consumer more."
This certainly leads right into the next topic, reported by the Financial Times, that, "Most US homeowners are paying above-market mortgage rates, new data show, indicating that government efforts to spur refinancings have yet to fully benefit households despite ultra-low headline borrowing costs. 'Many Americans are able to take advantage of lower interest rates. Many people have refinanced or bought homes,' Ben Bernanke, Federal Reserve chairman, said on Wednesday at a news conference. But he added: 'Mortgage access is much tighter than it's been in a long time.' But figures from CoreLogic, a housing data provider, show 20.5 million of 39 million creditworthy "prime" borrowers are paying rates of more than 5% while just 5.7 million households are enjoying rates of less than 4%. The data speak of a credit divide that the Fed and Barack Obama's administration have struggled to close despite numerous schemes to enable borrowers to refinance into cheaper mortgages. That gap is having an impact on consumer spending, which makes up roughly 70 per cent of US economic activity, as a greater share of borrowers' cash than necessary is being spent on housing.
The impact is also being felt in the White House, where Barack Obama faces a November election and has recently pushed Congress to pass new legislation designed to further increase mortgage refinancings. Experts argue that borrowers generally should be refinancing when their mortgage rates are at least 1 per cent higher than the market rate for a new home loan. In theory, more than 20 million borrowers should be refinancing. But many of these borrowers are 'trapped', according to Senator Robert Menendez, who has introduced legislation to ease access to refinancings for borrowers for whom the fall in house prices have left them with insufficient equity to refinance."
Those in the biz know that one can chalk this up to borrower lethargy, worries about losing a job, not wanting to pay the upfront financing fees, the thought that rates will go lower. (Of course, investors in the high coupon MBS's, such as the Fed, money managers, pension funds, and insurance companies, don't mind the feet dragging while they're earning the high yields.) But most "in the know" say that one big hindrance is the uncertainty in the market place (will housing prices drop, will I lose my job, how long it will it take to pay for the fees, maybe I won't qualify now, etc.). And lenders are so worried about making a simple mistake, which could result in a buyback years down the road, that the cost of processing, underwriting, and verifying loans has skyrocketed, in addition to the regulatory and compliance costs that are heaped onto the borrower. The government didn't expect lenders to absorb those costs, did they?
The Philly Fed collapsing in May to its lowest level since August, and is consistent with a weak Empire State Survey in June and soft Chicago PMI in May. Jobless claims decreased by 2,000 to 387,000 in the week ended June 16, as the four-week average climbed to 386,250, the highest of the year. Existing Home Sales dropped 1.5% to 4.55 million in May, but constrained by tight supply, prices continue to gain. (Inventory slipped 0.4% to 2.49 million existing homes available for sale, which represents a 6.6-month supply at the current sales pace. Listed inventory is 20.4% below a year ago when there was a 9.1-month supply.) Lastly on Thursday we learned that the Conference Board Leading Indicator Economic Index increased 0.3% in May to 95.8, after a decline of 0.1% in April, and a 0.2% increase in March.
After all that, stocks took it on the chin Thursday. There are those that believe money is a zero sum game, and every move in stocks results in a corresponding opposite move in bonds. That is incorrect, and although bond prices improved, they certainly didn't do so as much as equities sold off: the 10-yr improved by only about .250 and closed at 1.61%. (Agency MBS prices improved by less than .250.) Much of this was attributed to the reasons above.
These are from a book called Disorder in the American Courts, and are things people actually said in court, word for word, taken down and now published by court reporters who had the torment of staying calm while these exchanges were actually taking place. (Part 2 of 3)
ATTORNEY: Were you present when your picture was taken?
WITNESS: Are you kidding me?
_________________________________________
ATTORNEY: So the date of conception (of the baby) was August 8th?
WITNESS: Yes.
ATTORNEY: And what were you doing at that time?
WITNESS: What do you think?
____________________________________________
ATTORNEY: She had three children, right?
WITNESS: Yes.
ATTORNEY: How many were boys?
WITNESS: None.
ATTORNEY: Were there any girls?
WITNESS: Your Honor, I think I need a different attorney. Can I get a new attorney?
____________________________________________
ATTORNEY: How was your first marriage terminated?
WITNESS: By death.
ATTORNEY: And by whose death was it terminated?
WITNESS: Take a guess.
Source: http://www.mortgagenewsdaily.com/channels/pipelinepress/06222012-cfpb-oil-wwii.aspx
Do Americans Value Their Cars More than Their Houses?
The report, which was conducted by credit monitoring firm TransUnion, uncovered several interesting nuances of consumer spending behaviors and how they prioritized among car loans, home loans and credit card loans in 2011:
9.5 percent of those sampled were delinquent on their auto ...
Source: http://feedproxy.google.com/~r/chicagoagentmagazine/news/~3/9s2wmgXP3wQ/
Home Prices Rose In April ? but Won?t be Lasting
Source: http://www.totalmortgage.com/blog/mortgage-rates/home-prices-rose-in-april-but-wont-be-lasting/17418
Newest Prepaid Card Celebrity Sponsor? Magic Johnson
Magic Johnson became the latest celebrity to enter the prepaid debit card market, after unveiling the aptly-named MAGIC MasterCard on Tuesday. The former basketball ...Source: http://www.credit.com/blog/2012/06/newest-prepaid-card-celebrity-sponsor-magic-johnson/
Nightstar Designs Jewlery
Source: http://www.ThompsonGroupAZ.com/nightstar-designs-jewlery/
Late-Night Funny Men Own Some Pretty Serious Real Estate
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/g9DGgDAQ-1E/
Britain seeks Security Council sanctions on Syria
William Hague called on Saturday for the United Nations Security
Council to start drafting a resolution next week setting out
sanctions against...
How Much House Can I Afford?
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/y9VFKl18-IQ/
Consumer spending stalls, morale at 6-month low
Mortgage Lawsuits Spell Trouble for Lenders
Source: http://news.mortgagecalculator.org/mortgage-lawsuits-spell-trouble-for-lenders/
Mortgage Rates In Motion : Weekly MBS Prices At 5-Minute Intervals
Real-time mortgage market updates for June 29, 2012. Updates provided by MBSQuoteline, an MBS subscription provider for loan officers.
Click for the complete post : Mortgage Rates In Motion : Weekly MBS Prices At 5-Minute Intervals.
Friday, June 29, 2012
Will Bank Credit Downgrades Affect Me?
The interest rates and fees consumers are accustomed to paying for banking accounts, credit cards and other lines of credit may ...Source: http://www.credit.com/blog/2012/06/will-bank-credit-downgrades-affect-me/
Mortgage Rates : Real-Time MBS Pricing, June 26, 2012
Real-time mortgage market updates for June 26, 2012. Updates provided by MBSQuoteline, an MBS subscription provider for loan officers.
Click for the complete post : Mortgage Rates : Real-Time MBS Pricing, June 26, 2012.
HBI-PAC
Adding Widgets to Premier Agent Websites
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/vwW1Isx_dzo/
UPDATE 1-US lawmakers press DOE to speed LNG export review
New IRS rules for disclosure of foreign assets
Source: http://feeds.reuters.com/~r/news/wealth/~3/F_8a339LJjQ/us-taxes-foreign-fbar-idUSBRE85S1DA20120629
7 Ways to Stop Overseas Debt Collection Scam Calls
Some debt collectors can be ruthless, calling all hours of the day and night, and threatening arrest and violence if they don’t ...Source: http://www.credit.com/blog/2012/06/7-ways-to-stop-overseas-debt-collection-scam-calls/
Save on Gas Through Groceries in Chicagoland
Source: http://www.chicagolandrealestateforum.com/2012/06/26/save-on-gas-through-groceries-in-chicagoland/
Mortgage Rates : Real-Time MBS Pricing, June 28, 2012
Real-time mortgage market updates for June 28, 2012. Updates provided by MBSQuoteline, an MBS subscription provider for loan officers.
Click for the complete post : Mortgage Rates : Real-Time MBS Pricing, June 28, 2012.
UPDATE 1-Danske's Irish cuts point to more in Nordics
closure of all but one branch of its National Irish Bank (NIB)
unit could be a curtainraiser to a shake-up in the Nordic region
as the Danish lender targets bricks and mortar banking in its
cost-cutting.
What?s in a Housing Recovery? 3 Things to Keep in Mind
To help you navigate the data maze, we have three quick, easy points to keep in mind when surveying all the housing ...
Source: http://feedproxy.google.com/~r/chicagoagentmagazine/news/~3/_qh9PnRXDvM/
Mauricio Umansky: Ethics & Integrity Make the Difference
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/43kLndY27LY/
Thursday, June 28, 2012
5 Reasons Why Credit Reports Matter
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/xfcvnEHzTKc/
UPDATE 1-China unveils tax, finance incentives for new Shenzhen zone
financial measures on Friday to create an experimental zone in
the southern boomtown of Shenzhen aimed at boosting
international use of its currency and links with Hong Kong.
A Healthy Day in the US?
Source: http://www.totalmortgage.com/blog/current-mortgage-rates/a-healthy-day-in-the-us/17476
U.S. durable goods orders up but trend, outlook weak
Goldman cuts jobs across U.S. offices: sources
several dozen jobs from its U.S. operations on Thursday, aiming
to cut costs amid a slowdown in capital markets activity, three
people familiar with...
TEXT-Moody's concludes review on 10 Mexican financial institutions
supported ratings affected.
June 28 - Moody's Investors Service has today downgraded the standalone bank
financial...
5 Things to Do in Chicago This Weekend: June 15-June17
Prize Could Guarantee the Coolest Summer Ever
Source: http://www.chicagolandrealestateforum.com/2012/06/25/prize-could-guarantee-the-coolest-summer-ever/
Shop Around for a Mortgage
Source: http://news.mortgagecalculator.org/shop-around-for-a-mortgage/
House of the Week: Sombrero Shape in Colorado (VIDEO)
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/tV004KHegpQ/
A Simple Explanation Of The Federal Reserve Statement (June 20, 2012)
Related posts:
- Florida Mortgage Rates Creep Higher With Latest Federal Reserve Statement Tuesday, the Federal Open Market Committee voted to leave the...
- Make Your Mortgage Rate Strategy : The Federal Reserve Starts A 2-Day Meeting The Federal Open Market Committee begins a scheduled, 2-day meeting...
- Today’s Fed Reserve Statement In Plain English – December 13, 2011 Tuesday, the Federal Open Market Committee voted to leave the...
Source: http://www.floridamortgageblogger.com/2012/06/20/fomc-statement-june-20-2012/
Of Course the Borrower is Paying for Higher Lending Costs - Did Our Gov't Think Lenders Would?
Want some good news? My grades did not qualify me for admittance to Harvard (that is not the good news), but that institution put out good research material that is positive for housing this year. (Read: Harvard's State of Housing Report Says Home Construction Now Adding to GDP) Here is some on housing for 2012. If you have ADD, like me, at least click on "Signs of a Turnaround in the U.S. Housing Market: 2012 State of the Nation's Housing Report Released" and peruse the Executive Summary: jchs.harvard.edu. It is great for presentations and for selling anyone interested in investing in a mortgage bank or real estate firm.
Want some different good news? Yesterday oil declined below $80/barrel for the first time in about 8 months, and we find the major commodity index down 22% from its peak earlier in the year. So it should cost less to fill up that tank, or ge.t that gold "grill" at the cosmetic dentist.
Angela Merkel arrives at the Passport Control at the Charles de Gaulle airport.
"Nationality?" asks the immigration officer.
"German," she replies.
"Occupation?"
"No, just here for a few days..."
World War II humor aside, do we want Greece, and Europe, to overcome its current hurdles? Of course we do - but be careful what you wish for, as stability in Europe would tend to move our rates higher. (And they would, if it weren't for the fact that our economy is only limping along.) For example, this trader's note came across Wednesday: "The 10-year yield is 4 basis points higher this morning at 1.66% on news that Greece has formed a coalition government." Sure enough, Greece has formed a coalition government of New Democracy, PASOK, and Democratic Left, with Samaras to be the Prime Minister. I don't know all the specifics, but the "Troika" is expected to disburse within days the 1 billion euros from the March review that they have been holding waiting for the election outcome, and this should keep the government alive for about 1-2 months. If all goes well, Greece should receive the next tranche by late July or early August. However, the negotiations will be challenging, as growth is well below the program projections, fiscal consolidation is already off track, and reforms have been delayed during the long pre-election period.
And in Canada, Europe is hitting hard: Finance Minister Jim Flaherty and Mark Carney, the central bank governor, went public in a joint campaign to head off runaway inflation in the overheated housing sector. So the Harper government is trying to offset the negative impact of the central bank's pro-growth low-interest rate policy by making it harder for Canadians to take out mortgages. Flaherty said he acted to toughen mortgage rules for the fourth time in six years to slow the growth of a real estate bubble. He noted that the bursting of the U.S. housing bubble caused long-term damage to the American economy. He singled out the condominium market in Toronto as the most troubling hot spot. Buyers should conduct themselves prudently he said. "Some calming of the market is desirable." The government is tightening mortgages by reducing the maximum amortization for a government-insured mortgage to 25 years from 30 years. It is also lowering the maximum amount Canadians can borrow when refinancing a property to 80 per cent from 85 per cent of the value of their homes. Flaherty has complained in the past about people using their homes at ATM machines. And government-backed mortgage insurance will no longer be available for homes with a purchase price of more than $1 million.
The adage, "Don't put all your eggs in one basket" is being carried out by the OCC and Dodd Frank. Evaluating and limiting counterparty risk is a big deal, whether you're a mortgage company, a bank, a vendor, or a Realtor, so although this update applies to banks (a rule limiting the amount of lending exposure financial institutions can have to a single counterparty), watch for similar moves for everyone.
The average loan to value ratio of closed loans broke through 80% in May, the highest level since Ellie Mae began tracking these details in August of last year. (Read: Ellie Mae: Origination Insight Report for May) The average LTV was 81%, up from 80% in April and driven by an easing of LTVs on conventional refinances. Before MI companies pop the champagne, most believe that it is a sign that HARP 2.0 is helping more borrowers. The LTV of both closed and denied loans has risen steadily from 82% in August to 88% in May while debt to income ratios (DTI) and FICO scores have remained relatively unchanged. Many underwater borrowers have been attracted by the rate changes in HARP but have not successfully refinanced. Refinancing represented 54 percent of closed loans in May, down 2 percentage points from April. As might be expected, there were substantial differences in the profiles of loans accepted and denied by FHA and conventional lenders. What was surprising was the additional leeway FHA lenders appear to grant to purchasers over those refinancing.
I received a distressing/distressed note from a "governmentally aware" reader who was in a hearing yesterday with the CFPB. It would seem that a lack of knowledge of how a mortgage is originated, and how borrowers are helped by the mortgage industry in general, is still a big stumbling block. "The CFPB seems so out of control it is frightening. The brokers and bankers were again in full agreement. For almost 30 years I thought they would never agree on the color of the sun, but watching the CFPB deflect answers has brought them together. One person brought up that the issue was disclosures, and the CFPB responded with confusing answers that made it seem it was more concerned with deadlines than with doing what was right for borrowers and the health of the housing market. January 21st is looming! The CFPB seems to be micromanaging the issues from LO comp that a company might pay a 175% year-end bonus if you help engage in steering to what percentage can be placed into a 401k. Forget ERISA or the IRS - the CFPB spent more time figuring out pat answers and deflection strategies than anything else. It sounded like 100% of the feedback opposed the Flat Fee and they have no alternative."
The reader went on. "On one topic the CFPB claims unfettered exemption authority while on another claiming extremely limited. Then they claimed they had undertaken studies but when one member asked what study, suddenly it was 'life experience and observations of human nature.' Where is Barney Frank? He's the only one smart enough who can fix this mess. Dodd is off with his contributors in the motion picture industry. Barney broke it, then he can fix it - the CFPB doesn't seem to understand every 'hair brain' idea is going to cost the consumer more."
This certainly leads right into the next topic, reported by the Financial Times, that, "Most US homeowners are paying above-market mortgage rates, new data show, indicating that government efforts to spur refinancings have yet to fully benefit households despite ultra-low headline borrowing costs. 'Many Americans are able to take advantage of lower interest rates. Many people have refinanced or bought homes,' Ben Bernanke, Federal Reserve chairman, said on Wednesday at a news conference. But he added: 'Mortgage access is much tighter than it's been in a long time.' But figures from CoreLogic, a housing data provider, show 20.5 million of 39 million creditworthy "prime" borrowers are paying rates of more than 5% while just 5.7 million households are enjoying rates of less than 4%. The data speak of a credit divide that the Fed and Barack Obama's administration have struggled to close despite numerous schemes to enable borrowers to refinance into cheaper mortgages. That gap is having an impact on consumer spending, which makes up roughly 70 per cent of US economic activity, as a greater share of borrowers' cash than necessary is being spent on housing.
The impact is also being felt in the White House, where Barack Obama faces a November election and has recently pushed Congress to pass new legislation designed to further increase mortgage refinancings. Experts argue that borrowers generally should be refinancing when their mortgage rates are at least 1 per cent higher than the market rate for a new home loan. In theory, more than 20 million borrowers should be refinancing. But many of these borrowers are 'trapped', according to Senator Robert Menendez, who has introduced legislation to ease access to refinancings for borrowers for whom the fall in house prices have left them with insufficient equity to refinance."
Those in the biz know that one can chalk this up to borrower lethargy, worries about losing a job, not wanting to pay the upfront financing fees, the thought that rates will go lower. (Of course, investors in the high coupon MBS's, such as the Fed, money managers, pension funds, and insurance companies, don't mind the feet dragging while they're earning the high yields.) But most "in the know" say that one big hindrance is the uncertainty in the market place (will housing prices drop, will I lose my job, how long it will it take to pay for the fees, maybe I won't qualify now, etc.). And lenders are so worried about making a simple mistake, which could result in a buyback years down the road, that the cost of processing, underwriting, and verifying loans has skyrocketed, in addition to the regulatory and compliance costs that are heaped onto the borrower. The government didn't expect lenders to absorb those costs, did they?
The Philly Fed collapsing in May to its lowest level since August, and is consistent with a weak Empire State Survey in June and soft Chicago PMI in May. Jobless claims decreased by 2,000 to 387,000 in the week ended June 16, as the four-week average climbed to 386,250, the highest of the year. Existing Home Sales dropped 1.5% to 4.55 million in May, but constrained by tight supply, prices continue to gain. (Inventory slipped 0.4% to 2.49 million existing homes available for sale, which represents a 6.6-month supply at the current sales pace. Listed inventory is 20.4% below a year ago when there was a 9.1-month supply.) Lastly on Thursday we learned that the Conference Board Leading Indicator Economic Index increased 0.3% in May to 95.8, after a decline of 0.1% in April, and a 0.2% increase in March.
After all that, stocks took it on the chin Thursday. There are those that believe money is a zero sum game, and every move in stocks results in a corresponding opposite move in bonds. That is incorrect, and although bond prices improved, they certainly didn't do so as much as equities sold off: the 10-yr improved by only about .250 and closed at 1.61%. (Agency MBS prices improved by less than .250.) Much of this was attributed to the reasons above.
These are from a book called Disorder in the American Courts, and are things people actually said in court, word for word, taken down and now published by court reporters who had the torment of staying calm while these exchanges were actually taking place. (Part 2 of 3)
ATTORNEY: Were you present when your picture was taken?
WITNESS: Are you kidding me?
_________________________________________
ATTORNEY: So the date of conception (of the baby) was August 8th?
WITNESS: Yes.
ATTORNEY: And what were you doing at that time?
WITNESS: What do you think?
____________________________________________
ATTORNEY: She had three children, right?
WITNESS: Yes.
ATTORNEY: How many were boys?
WITNESS: None.
ATTORNEY: Were there any girls?
WITNESS: Your Honor, I think I need a different attorney. Can I get a new attorney?
____________________________________________
ATTORNEY: How was your first marriage terminated?
WITNESS: By death.
ATTORNEY: And by whose death was it terminated?
WITNESS: Take a guess.
Source: http://www.mortgagenewsdaily.com/channels/pipelinepress/06222012-cfpb-oil-wwii.aspx
Wednesday, June 27, 2012
Is Your Listing a ?Pinball??
It’s not a new term, but pinball listings ? unrealistically-priced properties that, because of their high asking prices, are used by competing agents to make their own asking prices more attractive to potential buyers ? seem to be back.
Ken Harney, a syndicated columnist who focuses on real estate, referenced a hypothetical that Joe Manausa, the owner-broker Century 21 First Realty in ...
Source: http://feedproxy.google.com/~r/chicagoagentmagazine/news/~3/Z5mfDBSRaHI/
Mortgage Rates Decline To Record Lows?Again
Source: http://news.mortgagecalculator.org/mortgage-rates-decline-to-record-lows-again/
Big pension funds plough money into farmland
Source: http://feeds.reuters.com/~r/news/wealth/~3/_zH5pS-1yh4/us-pensions-farmland-idUSBRE85Q1DN20120627
Is it Time to Do Something Radical to Save the Housing Market?
Mortgage Rate Outlook : Conforming, FHA Mortgage Rates To Ease
In general, what's bad for the world's economy will be good for U.S. mortgage rates.
Click for the complete post : Mortgage Rate Outlook : Conforming, FHA Mortgage Rates To Ease.
Everything You Need to Know About Emergency Funds
This article originally appeared on LearnVest. Situation #1: It’s a friend’s wedding, your ex-boyfriend will be there with his new girlfriend ...Source: http://www.credit.com/blog/2012/06/everything-you-need-to-know-about-emergency-funds/
?Long Island Lolita? Now South Florida Homeowner
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/mK_wbWAqC6E/
Merv Griffin?s 39-Acre, Luxury Estate in La Quinta, CA Takes Price Cut to $9.5M
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/EMvdcZxLCAQ/
2012 Conforming And Jumbo Loan Limits For Every U.S. County
The 2012 conforming loan limits vary by property-type and location. See your area's conforming mortgage and jumbo loan limits for 2012.
Click for the complete post : 2012 Conforming And Jumbo Loan Limits For Every U.S. County.
Source: http://feedproxy.google.com/~r/TheMortgageReports/~3/AbX8PxOR4UY/2012-conforming-jumbo-loan-limits
Mortgage Rates : Real-Time MBS Pricing, June 26, 2012
Real-time mortgage market updates for June 26, 2012. Updates provided by MBSQuoteline, an MBS subscription provider for loan officers.
Click for the complete post : Mortgage Rates : Real-Time MBS Pricing, June 26, 2012.
Zillow Home Price Expectations Survey: Home Prices Will Bottom by 2013
Source: http://feedproxy.google.com/~r/ZillowBlog/~3/REOzCJ8uI-Q/