SAN LUIS OBISPO CA home loans, real estate loans, home finance information – American Independent Mortgage Grp Inc

My New Blog

News for 2010 Mortgage

January 4th, 2010 2:26 PM

Our opening 2010 market is an enigma this morning. It would appear the prevailing news for some form of economic recovery now has been put into place. Institute of Supply Management was released and had a 55.9 reading which was stronger than expected, and stock market is in the triple digit green, so it is mysterious why the bond market is better today than the Friday close. Perhaps the run up got a little ahead of itself but a small improvement is holding at about .125% better. Unsure that it will last long. Right now, the futures market is pricing in an 84% chance that the Fed keeps rates somewhere between 0% and .25% through April 28th, 2010. Currently, the Ten Year yield is at 3.84%(3.89% on Thursday).

Bernanke spoke over the weekend and is now telegraphing rates will be rising. Freddie Mac came out just after Christmas and said rates will be in the high 6% range by the second half of year. Heh, SI is just reporting what they said. Yet at the same time, Goldman Sachs came out and said that rates will have remain low because of the jobless recovery. One issue we need to watch going forward is what happens when the government stimulus runs out. Since we have over 20 million unemployed by the latest statistics receiving unemployment checks, if any improving economy does not generate jobs, the question will be what happens for those people unemployed and what is next for interest rates and inflation. In the same speech, Mr. Bernanke said we need stronger regulation to preclude the relaxed guidelines that led to this meltdown and seemed to defend the low rate environment had little to do with it. Either way, we know our industry will be subject to heavy regulation and you start off your year with loan officer licensing requirements and changes to the Good Faith Estimate disclosures. Here is the article.

http://online.wsj.com/article_email/SB126253288955613905-lMyQjAxMTIwNjAyMzUwMzMyWj.html

Market News: Big news was HUD removal of the 1% loan origination fee but not reverse mortgages. Federal Housing Administration lenders are expected to charge reasonable origination fees but in most cases they will no longer be bound to a 1% limit, according to the Department of Housing and Urban Development. As a result of a new Real Estate Settlement Procedures Act rule, "FHA no longer limits the origination fee to 1% of the mortgage amount for its standard mortgage insurance programs," HUD says in mortgagee letter 2009-53. However, the 1% limit will continue to apply to FHA-insured reverse mortgages and FHA 203(k) purchase/renovation loans. The new RESPA rule that goes into effect Friday (Jan. 1, 2010) mandates the use of a standardized Good Faith Estimate disclosure that bundles all origination charges into a single fee. The GFE does not disclose the lender's origination fee as a single line item. "FHA expects that lenders will continue to charge fair and reasonable fees for all origination services and the agency will continue to monitor to ensure that FHA borrowers are not overcharged," FHA commissioner David Stevens says in the mortgagee letter. The question is will this lead to major reductions of the miscellaneous lender fees. GEM will will issue guidance to branches in the coming weeks as to what can be allowed. Rest assured the fees will have to be monitored under regulation B or fair lending. Here is the link to the website for the mortgagee letter. http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/

Please remember to register for the RESPA/GFE Training Classes as published by Ms. Del Re. Class choices are limited to 50 per class. Please refer to her memo sent on 12/31.

Article on Christmas day about no consequences for borrowers misrepresenting their income for a loan modification. Let's see, it is OK to inflate your income when applying for a new loan and deflate your income when you request a loan modification. Sounds reasonable. Associated Press article attached seems to question this approach since modifications are being encouraged. Unfortunately true hardship cases get mixed in with people that want to game the system.

http://finance.yahoo.com/news/ALL-BUSINESS-No-consequences-apf-3762892956.html?x=0&sec=topStories&pos=6&asset=&ccode=

Good article for reference on the housing market that was published in the Wall Street Journal about the inventory still to be worked through the system. It is referred to in the article as the shadow inventory. Interesting term, but dependent upon whose statistics you believe, we still have a ways to go.

http://blogs.wsj.com/developments/2009/12/18/housings-fate-is-lurking-in-the-shadows/?blog_id=36&post_id=7904

Product News:

GMAC correspondents addressed questions about FHA loans that move from one lender to another. “When a borrower switches from one lender to another, the first lender must, at the borrower's request, transfer the case to the second lender. Transferring the case requires the first lender to transfer the FHA case number to the second lender using the Case Transfer functionality within FHA Connection, and provide the second lender with a copy of the appraisal report ordered by and completed for the first lender.” GMAC, and the FHA, does not require that the client name on the original appraisal be changed to that of the second lender. GMAC’s memo goes on to discuss the responsibilities of the second lender’s DE underwriter, how to reduce processing delays caused by appraisal issues (“…the second lender is permitted to order a second appraisal under the limited circumstances…”), and gives guidance on the second appraisal. GMAC also has a new validity period for appraisals (used for FHA insured mortgages) for loans on existing, proposed, or under construction less than one year, and is now 120 days.

Posted by Christopher Austin on January 4th, 2010 2:26 PMPost a Comment (0)

Subscribe to this blog

Mortgage insurance a hugh factor.

December 29th, 2009 8:35 AM

Well we knew that this would be an issue sooner than latter. Agents and buyers. if you are getting a conforming loan and are NOT putting 20% or more down please pay close attention. if you have a FICO/Credit score of less that 700s this is for you. You may not be able to get mortgage ins and be forced to take a FHA loan. Now FHA is not the worst thing to happen to borrowers, in fact its a good loan with safe guards for the buyers to not get stuck in "the money pit". if your scores are less than 700 please make sure you ask to see the mortgage insurance commitment prior to releasing the loan contingency or you could end up with an issue at closing. Like mortgage insurance rates much higher then expected or worse no mortgage insurance at all and now have to switch to a government loan. This is a cautionary tail so please be sure to be informed on the MI on your deal.

Posted by Christopher Austin on December 29th, 2009 8:35 AMPost a Comment (0)

Subscribe to this blog

if you short sell you can still buy via FHA!!!!!

December 29th, 2009 8:24 AM

A new FHA mortgagee letter has come out look it up. 09-52. It states that if for reasons out of your control you had to short sell your home and kept current on all payments inc your mortgage but did a short sale you can re buy a new to you property using FHA. This is huge news for all the people who had no choice but maintained their payments.

This is a sign that the big shots who get to sit around and play masters of the universe have decided to cut a little slack to some consumers out there.

if you need more information and the mortgagee letter is vague at best, contact me and ill give you my and others interpretation on the letter.

Other news ... My xmas was fun. We had family and kids and a good time was had by all. We are excited for what the new year will hold.

Heres to all of you and hoping you have a greta new years eve and a great new year.

Posted by Christopher Austin on December 29th, 2009 8:24 AMPost a Comment (0)

Subscribe to this blog

Tax credit extension and a little rant...

November 5th, 2009 9:53 AM

It sounds like the tax credit for first time buyers is going to be extended and they will add move up buyers to the list of approved recipients. IRS reported millions in scams from the first tax credit, one might speculate that there will be more abuse now that more people are eligible. I would expect this move to help the 2010 market in big ways. In certain pockets of highly desirable homes and areas I expect to see a sellers market phenomenon while some areas need a bigger help than any tax credit can offer. It would be nice to see the government offer a down payment assistance program via FHA loans for areas that are hit the hardest. For years when the rest of the economy was bad it was the real estate market that propped the rest up, so in theory we dont need a tax credit but a return to the environment that made the real estate market strong. The main factor is availability of loans and the creativeness of banks to find new ways to get low income and low credit buyers into a home.

Posted by Christopher Austin on November 5th, 2009 9:53 AMPost a Comment (0)

Subscribe to this blog

Where are all the homes?

September 18th, 2009 9:19 AM

In San Luis Obispo county there is a shortage of properties in the lower price ranges. It appears that due to the banks holding back on the foreclosure process and the release of REO properties to the market place that the market is experiencing pockets of sellers market phenomenon. Inside sources to me at FDIC have stated that November is when we will see a release of these homes. Also borrowers in some cases have not made payments in over 10 months and no notice of default has been filled putting those homes many months from the market as well.

Posted by Christopher Austin on September 18th, 2009 9:19 AMPost a Comment (0)

Subscribe to this blog

Super Jumbo now at higher loan amounts

July 9th, 2009 7:39 AM

We are now offering super jumbo loans to 1.5m. This is a great loan program and one of the most flexible programs offered. This is a true portfolio program.

Posted by Christopher Austin on July 9th, 2009 7:39 AMPost a Comment (0)

Subscribe to this blog

market conditions

June 23rd, 2009 8:16 AM

Today mortgage backed securities (MBS) (the main financial instrument that controls mortgage rates) prices opened lower this morning after yesterday's gains which were fueled by stock market losses (DOW -200pts & S&P 500 -3.1%) boosting demand for fixed income assets, like MBS. MBS prices have since rebounded; FNMA 5.0% coupon 101.309ps, +8bp, the high of the day from an intra-day low of 101.13bps. Today the Treasury will auction $40 billion of 2yr notes, first of this week's three sales totalling a record $104 billion. The last auction drew the most demand since November 2006 from foreign central banks, helping ease concern that international investors will begin to shy away from Treasuries as U.S. borrowing surges to fund bank bailouts, fiscal stimulus spending and a record budget deficit. The budget deficit is projected to increase to $1.85 trillion this year, equivalent to 13% of the nation's economy. The Fed starts a two day meeting today to consider any changes to its pledge to buy Treasuries, agency debt and MBS to lower consumer borrowing costs, and whether to keep its benchmark interest rate near zero. Fed policy makers will continue to explore how and when to wean the economy off stimulative medicine to avoid fanning inflation. The FOMC statement is due at 1115am pt tomorrow. Fed funds futures show a 40% chance the Fed will raise interest rates by at least .25bps by December. The Fed purchased $7.5 billion of U.S. debt yesterday as part of its effort to stop rates from rising. Chain store sales continue to be very weak, according to ICSC-Goldman & Redbook, due to recessionary conditions and wet weather. Crude oil prices increased after falling three days in a row as a weaker dollar boosted the appeal of commodities as an alternative investment. The dollar declined on speculation that the Fed will temper expectations for an interest rate increase. Existing Home Sales were up 2.4% in May to an annual rate of 4.77 million, but below expectations of 4.85 million. Supply is coming down slowing, at 9.6 months from 10.1 months in April. Prices firmed up 3.8% to a median sales price of $173,000, but are down 16.8% on an annual basis. There was a steep drop in the proportion of distressed sales, to about one third from nearly half in prior months. More importantly, unrealistically low appraisals are scuttling sales and slowing the housing recovery. Can you say yea HVCC!

Posted by Christopher Austin on June 23rd, 2009 8:16 AMPost a Comment (0)

Subscribe to this blog

Rates come down

June 22nd, 2009 12:07 PM

Rates cam down a bit today, look at locking if you are floting. The fed may mess up and drop in rates latter in the week with a bond sell off of a few billion dollars. Lets hope it does not affect it to bad. If i were closing in the next few days to a week or so i would lock today.

Posted by Christopher Austin on June 22nd, 2009 12:07 PMPost a Comment (0)

Subscribe to this blog

Rates back up as the bond market is down.

June 18th, 2009 10:33 AM

Well we lost all the rate gains we made over the last few days. Lets hope that something goes in our favor, and soon. Rates are back to low-mid 5% range and cost are 1-1.5% depending on credit and down payment. FHA is still the lowest option for purchase loans and clients with less than 20% down as the mortgage insurance is still a better deal. USDA is offering some great loans in selected areas, call for more info on this great no down program. VA is also good, if you have served the country. Conforming is the best option if you have the 20% down. Lets pray we can have good rates and economic recovery at the same time.

Posted by Christopher Austin on June 18th, 2009 10:33 AMPost a Comment (0)

Subscribe to this blog

rehab loans ready to go tuesday the 16th

June 11th, 2009 1:07 PM

Envoy is pleased to announce the release of the FHA 203(k) Streamline Program. The program is designed for the rehabilitation and repair of single family properties. As such, it is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities.

The “Streamline” Program permits homebuyers to finance an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements.

We are very excited about the release of this program knowing the benefits and opportunities for borrowers.

Ill have full details after the training class on monday the 15th.

Posted by Christopher Austin on June 11th, 2009 1:07 PMPost a Comment (0)

Subscribe to this blog