Another volatile week

Another volatile week is a head for our financial markets. There are several reports coming out in addition to the normally scheduled Fed meeting starting tomorrow. Mortgage backed securities are back up again this morning. This is good news for interest rates. As the market continues to change be sure I will be your reliable source of information.

News of the Fed Fund cut

This week has been more proof of the volatility of the market. Rates dipped earlier in the week and then bounced up with the news of the Fed Fund cut. However, they are only slightly higher than last week yet will continue to trend downward.

Many of you are getting information regarding declining market loan-to-values. I am continuing to do research on the policy changes and here’s the latest. If you are a borrower putting down 20% on a full documentation purchase and the maximum loan-to-value for the program is 95% you do not have to reduce the loan to value for the borrower by 5% it remains a 20% down payment. If you have any questions about current or future deals please contact me.

SOME INVESTORS HAVE NO DECLINING MARKET POLICY. It just depends on the bank and the borrower’s profile.

There is news that the conforming loan amount currently set at $417,000 will be temporarily increased to $750,000. See the article by clicking below.
http://www.latimes.com/business/la-fi-jumbo25jan25,1,2691497.story?ctrack=2&cset=true

Looking for Canadian financing? I've got the programs to get your home purchased fast.
I’m never too busy for any of your refinancing or purchase referrals! If you are interested in refinancing a loan now may be the time. Have a great weekend!

Banks and investors are continuing to “write-down”

Good Morning and Happy MLK Day!

Look at my blog if you have any questions regarding the new declining market loan to value policy (http://www.SeanLaRue.com) or (http://www.MortgageDitty.com) especially if you are just now hearing about this. If I was unclear about the loan to value issue please be advised that not all loans are going to require 20% down. There are still programs available for loan down payments.

Banks and investors are continuing to “write-down” the values on their asset portfolios. This means they are adjusting the value they are placing on the portfolio not necessarily taking a loss on the company just re-adjusting their balance sheets. Slow starts in last weeks new construction report is helping mortgage backed bonds through the end of last week. Make it a great week!

California is considered to be a declining market

Look at today’s rate sheet! Rates are low, low, low!

There has been a rather substantial change this week to mortgage lending and our industry as a whole where Fannie and Freddie Mac are changing their credit policies and changing the low to value requirements for borrowers. These changes are based on the purchase price and not the appraised value. Loan to value is being slashed by 5% right off the top. What this means is that Fannie and Freddie Mac, the only people buying mortgage backed securities, are saying that the programs borrowers qualify must to be reduced by 5%. For example, if the loan to value was 80% the LTV must be reduced by 5% to 75%.

I am not telling you this to be negative, but it is a reality of the current market. The state of California is considered to be a declining market and applies on a case by case basis, but call YOUR lender to get more information. Below I have included a link regarding this information. Please call me with any questions and I’ll do my best to answer them.

I am NEVER too busy for any of your referrals! Have a wonderful weekend!

http://www.washingtonpost.com/wp-dyn/content/article/2008/01/12/AR2008011200269.html

Countrywide and Bank of America

Well the rumors are true that Countrywide and Bank of America will soon be partners as Bank of America announced yesterday that they will by Countrywide for $4 billion. This comes as no surprise as Countrywide’s portfolio is reporting a delinquency rate over 7% up from 4%, and after letting nearly 11,000 employees go.

Mortgage back bonds are still getting better this week helping to rally mortgage pricing after news this week from Ben Bernake that the Fed will continue to cut rates. New fed target rate is 2.75 down from 4.25 today. The cuts will help Home Equity line interest rates tied to the Prime rate, credit cards, and other consumer driven interest rates. Stay tuned for more information.

Working for a Living

This week we are still looking at the jobs report and its effects on the stock market. It has caused some concern that the Labor Department could still revise the report lower. Mortgage bonds are still at a two year low.

Economists are still looking at a possible rate cut in coming meetings to help the slowing economy; however, with inflation raising it is unlikely future cuts will happen.

There are tips in today’s update for you to review regarding who is taking the losses in the market and what you can do to protect yourself with home loan rates and great advice regarding your credit cards. I hope this information helps you with your financial planning.

If you are a home owner and have an adjustable rate mortgage, 30 year fixed, or pay option ARM, and are looking to lock in a low rate give me a call and ask me about a NO POINTS AND NO FEES REFINANCE. It's a great time to get locked in. Looking forward to hearing from you!

Getting back to work

Happy New Year!

Hope you had a great week getting back to work. Check out today’s rate sheet attached in PDF format. Mortgage Bond pricing is at the best levels since September 2005. This result comes from a Jobs report that showed only 18,000 news jobs created when expectations were 70,000. With the unemployment rate up a tick to 5.0% from 4.7% the weaker economic news is stirring the markets and improving bond pricing. If you have buyers or past clients interested in purchase or refinance money NOW is a great time. Let me help you get them pre-qualified and provide them the information needed to decide on the best loan program for their situation.

I am NEVER too busy for any of your referrals! Have a great weekend.