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What every home owner and buyer needs to know about the proposed RESPA rules

Ann Arbor, MI, June 11, 2008 - The public comment period ends Thursday, June 12 for the new proposed mortgage disclosure rules issued by the Department of Housing and Urban Development (HUD). The proposed rules will restructure mortgage disclosures under the Real Estate Settlement Procedures Act (RESPA). “While we absolutely agree that the mortgage process needs to be reformed, HUD’s proposed rules are dangerous, costly and fail to achieve their stated goals of bringing clarity and transparency to the mortgage origination process,” said Gibran Nicholas, Chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers. The CMPS Institute has just completed an exhaustive review of the proposals, and they have sent their comments to HUD.

· Here is a link to HUD’s proposed rules

· Here is a link to the CMPS Institute comments and addendums regarding HUD's proposals

There are two major flaws in the rule that are addressed in CMPS’ comments:

Problem #1 - The proposed rules require mortgage banks and brokers to provide a preliminary “GFE application” and rate lock that is based on very limited preliminary information. “This is like asking a stock broker to prepare a Temporary Stock Quote and guarantee the validity of the quote while the investor takes a few days and shops among other stock brokers for a lower stock price,” said Nicholas. “This is totally unrealistic and impractical, and demonstrates that the proposed rules were written by government officials who obviously have little or no business experience or understanding of how the market works.”

Problem #2 – The proposed rules require only mortgage brokers to disclose the commissions they earn, while allowing bankers to slide by without disclosing their commissions. “This is totally unacceptable as bankers now originate more than 60% of home mortgages,” said Nicholas. This is up from a low point of only 35% a few years ago. “Mortgage brokers are already going out of business en masse by virtue of market conditions,” said Nicholas. “These rules would simply drive up their costs while giving bankers an unfair competitive advantage. This lack of competition in the marketplace will harm consumers.”

CMPS Institute included a sample Home Mortgage Summary Disclosure Form as their proposed alternative to HUD’s rules. “CMPS’ proposed disclosure form is simple, effective and easy to understand,” said Nicholas. “It levels the playing field between bankers and brokers, protects consumers and brings much needed clarity to the mortgage process.”

Please review CMPS’ comments and let HUD know your feedback as well. You can comment on the proposals here:

http://www.regulations.gov/...

If you agree with any or all of the comments prepared by the CMPS Institute, please include the following phrase in your comments:

Additionally, I support and agree with the comments submitted by the CMPS Institute which can be found at: http://www.cmpsinstitute.org/pdf/CMPSCommentsonRESPA.pdf

Remember, the deadline to submit comments is Thursday, June 12th. The more people who indicate support for these comments, the more likely they are to be considered.

Let's work together and truly make a difference!

Sincerely,

Paul Bennett

but two stand out above the others. There are a total of five reports scheduled for release, so it can be considered a fairly active week. There is no relevant data due out tomorrow, so expect the stock markets to help drive bond trading and mortgage rates.

The first piece of data is the release of April's Retail Sales data early Tuesday morning. This is an extremely important report for the financial markets as it measures consumer spending. Since consumer spending makes up two-thirds of the U.S. economy, this data can have a pretty significant impact on the markets. Current forecasts are calling for no change in sales from March to April. A weaker than expected level of sales should push bond prices higher and mortgage rates lower Tuesday. However, a larger increase could fuel bond selling and lead to higher mortgage rates.

Wednesday's only relevant report is April's Consumer Price Index (CPI). It is similar to next week's PPI report, but measures inflationary pressures at the more important consumer level of the economy. Its results will be watched closely and can lead to significant volatility in the bond market and mortgage pricing. Current forecasts are calling for increases of 0.2% and 0.3% respectively in the overall index and the core data readings. The core data is the more important of the two since it excludes more volatile food and energy prices.

April's Industrial Production is Thursday's only relevant news. It measures manufacturing sector strength by tracking output at U.S. factories, mines and utilities. It is expected to show a 0.2% decline in production, indicating that manufacturing activity is slowing. A larger decline in output would be good news for the bond market and mortgage rates because it would indicate that the manufacturing sector is weaker than expected.

There are two pieces of data due to be posted Friday. April's Housing Starts is the first and is the least important of the two. This data measures housing sector strength and mortgage credit demand by tracking new permits and actual starts of new home construction. It is expected to show a decline in new starts from March's readings. But, since this report is not considered to be of high importance to the bond market, it likely will have little impact on mortgage rates unless it varies greatly from forecasts.





The last report of the week is May's preliminary reading to the University of Michigan's Index of Consumer Sentiment. This index measures consumer willingness to spend and usually has a moderate impact on the financial markets. It is expected to show a reading of 63.0, which would be a slight increase from last month's final reading. If it shows a decline in consumer confidence, bond prices will likely rise. This should lead to mortgage rates moving slightly lo wer Friday.

Overall, it likely will be a moderately active week for mortgage rates. Besides the week's important economic news, look for the stock markets to be a major influence on trading. I suspect we will see a fair amount of volatility in stocks, which should affect bond prices. Significant stock weakness should translate into bond gains and lower mortgage rates. However, if the major stock indexes rally, we could see mortgage rates move higher as a result.

If I were considering financing/refinancing a home, I would.... Float 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.

following early stock weakness. The stock markets are showing losses with the Dow down 106 points and the Nasdaq down 8 points. The bond market is currently up 9/32, which should improve this morning's mortgage rates by approximately .250 of a discount point.

March's Goods and Services Trade Balance report was today's only economic data on the calendar. It revealed a $58.2 billion trade deficit that was well below forecasts. However, this data is not considered to be of high importance to the bond market or mortgage rates and therefore has had little impact on the markets today.

This was a light week for economic releases, so I did not expect to see much fluctuation in the markets and mortgage rates. I still feel bond yields are at the upper end of a cycle and that stock prices have more room to fall. I am expecting stocks to move lower, making bonds more attractive to investors. This shou ld lead to funds shifting out of stocks and into bonds in the near future. Accordingly, I am holding the float recommendations for the time being.

Next week is busier in terms of economic reports than this week was. Generally speaking, it will be an average week with five relevant reports on tap. However, two of those are considered to be very important to the markets and mortgage rates. There is no relevant news scheduled for release Monday, but look for details on next week's event in Sunday's weekly preview.

If I were considering financing/refinancing a home, I would.... Float 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 inter est of all/any other borrowers.

 The stock markets are also in positive territory with the Dow up 56 points and the Nasdaq up 11 points. The bond market is currently up 27/32, which should improve this morning's mortgage rates by approximately .250 of a discount point.

The only economic news posted this morning were the weekly unemployment figures from the Labor Department. They said that 365,000 new claims for benefits were filed last week. This was a smaller number than was expected, but fortunately has not affected bond prices or mortgage rates.

Yesterday's 10-year Note auction was not met with a very good demand. Despite this we saw bond prices rise during afternoon trading as the stock markets faltered. This is a sign that funds were being shifted from stocks into bonds, which may indicate an expectation of weakness in stocks. If the major stock indexes do begin to fall, we should see bonds benefit and mortgage rates move lower.

Today's 30-year Bond sale could very well have the same result as yesterday's auction did. However, it appears that investors may not be so quick to react to its results. With no important economic data on tap tomorrow, we could see further gains in bonds, especially if stocks turn south.

March's Goods and Services Trade Balance report will be released early tomorrow morning. This report gives us the size of the U.S. trade deficit but likely will not have much of an impact on the bond market or mortgage pricing. It is expected to show a $61.3 billion trade deficit.

If I were considering financing/refinancing a home, I would.... Float 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.

 The stock markets are mixed with the Dow down 20 points and the Nasdaq up 8 points. The bond market is currently nearly unchanged form yesterday's closing level, but we will likely see a small increase in this morning's mortgage rates as a result of weakness in bonds late yesterday.

The Labor Department gave us today's only relevant economic news with the release of the 1st Quarter Productivity and Costs data. It showed a 2.2% increase in productivity, which exceeded forecasts by a fairly large margin. This is good news for bonds because higher levels of productivity allow the economy to expand with low levels of inflation.

The first of this week's two most important Treasury auctions will take place today. The Treasury Department will hold a 10-year Note sale today and a 30 Year Bond sale tomorrow. Results of the auctions will be posted at 1:30 PM ET. If they were met with a strong demand from investors, we could see bond prices rise enough during afternoon trading to cause downward revisions to mortgage rates. However, lackluster bidding could lead to higher mortgage pricing this afternoon and/or possibly tomorrow.

There is no relevant economic data scheduled for release tomorrow except the weekly unemployment figures from the Labor Department. They are expected to report that 375,000 new claims for benefits were filed last week. A significantly larger number would be good news for bonds and mortgage rates, while a sizable decline could hurt rates. If they report a figure anywhere close to the 375,000, this data will likely have little impact on the markets or mortgage rates tomorrow.

If I were considering financing/refinancing a home, I would.... Float 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 d ays... 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.

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www.FundingYourDreams.us

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As you know, in today’s challenging environment the real estate and mortgage industries are undergoing constant changes. 

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3. Mortgage Program guidelines are changing more and more frequently.

4. Sub-Prime and Alt-A lenders have eliminated many program niches and/or substantially reduced LTV/CLTV limits

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6. LTV/CLTV limits for many programs are automatically reduced by 5-10%

7. FNMA has recently issued sweeping changes in their My Community Mortgage & other conforming products.

8. Mortgage Insurance companies have tightened their guidelines and limits). 

9. Interest rates are incredibly volatile (multiple pricing changes are nearly a daily event).

Given the state of our industries today, it is imperative that we remain open to better opportunities and business relationships.  Opportunities and relationships that will allow you to generate more business, increase your close rate, expand your business relationships, and meet your close of escrow dates.  With over 28 years of combined experience in the real estate and mortgage industry, we have the knowledge and expertise to continue to adapt, grow, and thrive despite what changes may occur in our industries.

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despite a lack of bad news in today's economic data. The stock markets are showing losses with the Dow down 38 points and the Nasdaq down 28 points. The bond market is currently down 13/32, which will like push this morning's mortgage rates higher by approximately .250 of a discount point.

Today's economic news wasn't considered to be of much importance to the markets. The final revision to the 4th Quarter GDP came in at 0.6% as it was expected to. In a bit of good news, a key inflation reading in the data was revised lower than previously estimated. However, as with the headline GDP number, this data is quite aged now since it covers October thru December of last year. Analysts are more concerned about the January to March figures that will be released next month.

The Labor Department gave us last week's unemployment claims figures this morning also. They reported that 366,000 new claim s for benefits were filed last week. This was down from the previous week and lower than forecasts had called for. But, since the data tracks only a week's worth of claims, it is not considered to be of high importance to the markets.

There are two relevant reports scheduled for release tomorrow. The first is February's Personal Income & Outlays report. This data helps us measure consumers' ability to spend and current spending habits, which is important to the mortgage market because of the influence that consumer spending related information has on the financial markets. If a consumer's income is rising, they are more likely to make additional purchases. This raises inflation concerns and has a negative affect on the bond market and mortgage rates. Current forecasts are calling for a 0.3% rise in income and a 0.1% rise in spending.

The second report comes from the University of Michigan at 9:45 AM ET. Their revision to the March consumer sentiment i ndex will give us an indication of consumer confidence, which hints at consumers' willingness to spend. It is expected to show a small decline from the previous reading of 70.5. A weaker than expected reading would be good news for bonds because lower levels of consumer spending eases inflation concerns in the market.

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... Lock 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.

following the release of weaker than expected economic news and early stock losses. The stock markets are posting sizable losses with the Dow down 108 points and the Nasdaq down 25 points. The bond market is currently up 10/32, which should improve this morning's mortgage rates by approximately .125 - .250 of a discount point.

The Commerce Department reported this morning that new orders durable goods, or products with a life expectancy of at least three years, fell 1.7% last month. This was much lower than the 0.8% increase that was forecasted and indicates that the manufacturing sector is weaker than some had expected. This is good news for bonds and mortgage rates because a weakening manufacturing sector threatens overall economic growth. This in turn eases inflationary concerns and makes long-term investments such as mortgage related bonds more attractive to investors.

February's New Home Sales figures were also released this morning. They showed a higher level of sales of newly constructed homes than was expected, however, today's release also revised January's sales higher than previously announced. This brought the month to month decline in line with forecasts. Accordingly, this news has had little impact trading or mortgage rates.

Tomorrow brings us the final revision to the 4th Quarter GDP. This is the second and final revision to January's preliminary reading and is expected to show no change from the 0.6% reading that was posted last month. Analysts are now more concerned with next month's preliminary reading of the 1st quarter than data from three to six months ago, so I don't expect this report to affect mortgage rates.

There are two relevant reports scheduled for release Friday. The first is February's Personal Income & Outlays report. This data helps us measure consumers' ability to spend and current spending habits, which is important to the mortgage market because of the influence that consumer spending related information has on the financial markets. If a consumer's income is rising, they are more likely to make additional purchases. This raises inflation concerns and has a negative affect on the bond market and mortgage rates. Current forecasts are calling for a 0.3% rise in income and a 0.1% rise in spending.

The second report comes from the University of Michigan at 9:45 AM ET. Their revision to the March consumer sentiment index will give us an indication of consumer confidence, which hints at consumers' willingness to spend just asyesterday's Consumer Confidence Index did. It is expected to show a small decline from the previous reading of 70.5.

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... Lock 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.

recovering some of yesterday's sell-off. The stock markets are showing losses with the Dow down 76 points and the Nasdaq down 5 points. The bond market is currently up 16/32, which should improve this morning's mortgage rates by approximately .250 of a discount point.

Today's only relevant economic news was favorable to bonds and mortgage rates. The Conference Board released their Consumer Confidence Index (CCI) for March late this morning, showing a reading of 64.5. This was well below forecasts of 73.4 and touched a five year low, indicating that consumer confidence is falling quicker than expected. That is good news for bonds and mortgage rates because waning confidence usually translates into less consumer spending.

Tomorrow's important data comes from the Commerce Department, who will post February's Durable Goods Orders. This report gives us a measurement of manufacturing sector str ength by tracking new orders for big-ticket items, or products that are expected to last three or more years. This data is known to be volatile from month to month but is still considered to be of high importance. Analysts are expecting it to show an increase in orders of approximately 0.8%. A larger increase would be considered a negative for bonds and could lead to higher mortgage rates tomorrow morning.

Also tomorrow is the release of February's New Home Sales report. It will give us another indication of housing sector strength and mortgage credit demand. It is actually the week's least important news and likely will not have an impact on mortgage rates unless it greatly varies from forecasts. The report is expected to show a decline in sales of newly constructed homes.

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... Lock 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.

following weaker than expected inflation readings, but has since given back some of those gains. The stock markets are showing sizable losses with the Dow down 150 points and the Nasdaq down 35 points. The bond market is currently up 20/32, which should improve this morning's mortgage rates by approximately .250 - .375 of a discount point. However, if bonds give back more of their earlier gains, we may see upward revisions to mortgage rates later today.

The Labor Department gave us the big news for the day with the release of February's Consumer Price Index (CPI). It showed no change in the overall index and the same in the core data reading. Both of these readings were well below analysts' forecasts of 0.3% and 0.2% increases respectively. This means that inflationary pressures at the consumer level of the economy were not as strong as thought. That is very good news for bonds and mortgage rates because inflation er odes the value of a bond's future fixed interest payments and leads to selling in mortgage related securities.

The University of Michigan's Index of Consumer Sentiment was also posted this morning. It showed a reading of 70.5, which was a little stronger than expected. Fortunately though, the CPI far outweighs this index in importance and had a much bigger influence eon trading this morning.

Next week is fairly busy with economic releases, beginning with Monday's Industrial Production report. We also will get to see inflation readings at the producer level of the economy in the Producer Price Index (PPI) Tuesday. But the big news will be the FOMC meeting Tuesday. Look for more details on next week's data and event sin 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 w as 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.

following sharp gains in the stock markets. Stocks are doing very well this morning following an unusual move by the Fed to add liquidity to the markets. The results are stock rally and bond selling. The Dow is currently up over 200 points while the Nasdaq has gained 35 points. The bond market is currently down 28/32, but we will still see an improvement in this morning's mortgage rates as a result of strength late yesterday and optimism in the Mortgage Backed Securities (MBS) market.

The only piece of economic news released today was January's Goods and Services Trade Balance. It showed the U.S. trade deficit at $58.2 billion. This was smaller than expected, but since the data is not considered to be of high importance, it had little influence on trading and mortgage rates.

The big news of the day was an announcement from the Fed that they were pumping $200 billion in liquidity to t he markets. The short-term sale that they are doing this via was not the surprise. What is unusual about this sale is that the banks can use AAA rated mortgage securities as collateral. Usually, only securities backed directly by Fannie Mae and Freddie Mac are allowed as collateral. This will allow banks to pledge more collateral and therefore, borrow more from the Fed. This is believed to mean that banks will have more funds to loan to individuals and corporate customers. That should increase economy activity, at least by theory.

The rest of the week brings us the release of three more economic releases for the bond and mortgage markets to digest along with a 10-year Treasury Note auction. None of the important economic news is scheduled for release until Thursday. Two of them are considered to be of high importance to the markets. This means that we will likely see the most movement in rates the latter part of the week.

Thursday morning brings us the release of February's Retail Sales data. This report is extremely important to the financial markets because it measures consumer spending. Since consumer spending makes up two-thirds of the U.S. economy, data that is related usually has a big impact on the financial markets. This month's report is expected to show an increase in sales of approximately 0.2%. If we see a decline in sales, the bond market should rise and mortgage rates will likely fall. If it reveals a larger increase, I expect to see bond prices fall and mortgage rates rise Thursday morning.

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.

Investors grow more concerned about the economy and likelihood of a recession. The stock markets are showing losses with the Dow down 35 points and the Nasdaq down 5 points. The bond market is currently up 8/32, which will likely improve this morning's mortgage rates by approximately .250 of a discount point.

There is no relevant economic news scheduled for release today. The first piece of news comes tomorrow morning with the release of January's Goods and Services Trade Balance. This report gives us the size of the U.S. trade deficit. It is the week's least important piece of news and likely will not influence mortgage rates much.

The rest of the week brings us the release of three more economic releases for the bond and mortgage markets to digest along with a 10-year Treasury Note auction. None of the important economic news is scheduled for release until Thursday. Two of them are consi dered to be of high importance to the markets. This means that we will likely see the most movement in rates the latter part of the week.

Thursday morning brings us the release of February's Retail Sales data. This report is extremely important to the financial markets because it measures consumer spending. Since consumer spending makes up two-thirds of the U.S. economy, data that is related usually has a big impact on the financial markets. This month's report is expected to show an increase in sales of approximately 0.1%. If we see a decline in sales, the bond market should rise and mortgage rates will likely fall. If it reveals a larger increase, I expect to see bond prices fall and mortgage rates rise Thursday morning.

Overall, it will likely be another active week in the mortgage market. Thursday or Friday both can be labeled as the most important day of the week. Either can lead to a significant change to mortgage pricing. The Treasury auction is scheduled for Thursday, but its results will not be posted until 1:00 PM ET. If investor demand was high, we may see bonds rally during afternoon trading, however, weak demand could lead to selling and an increase to mortgage rates. Generally speaking, this week is definitely a good one to maintain contact with your mortgage professional if an interest rate has not been locked yet, particularly the latter part of the week.

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.

has opened relatively flat with no relevant economic news scheduled for release today. The stock markets showing losses with the Dow down 150 points and Nasdaq down 26 points. The bond market is currently up 4/32, but we will likely still see an increase in this morning's mortgage rates of approximately .250 of a discount point due to weakness late yesterday.

With no relevant economic news being posted today, the stock markets are in the forefront and the biggest influence on bond trading this morning. If the major stock indexes continue to slide, we may see finds move back into bonds. However, I don't believe that we will see much of an improvement in mortgage rates today.

There are two reports scheduled for release tomorrow morning for the markets to watch. The first is the revised Productivity index for the 4th Quarter of last year. The preliminary reading posted last month showed an annual rate of 1.8% increase in worke r output. Analysts are expecting to see no revision to last month's initial reading. Employee productivity is watched closely because a higher level of output per hour is believed to mean that the economy can expand without inflation concerns.

January's Factory Orders will be posted late tomorrow morning, which will give us a measurement of manufacturing sector strength. This data is similar to last week's Durable Goods, except this report covers orders for both durable and non durable goods. Current forecasts are calling for a drop in new orders of approximately 2.5%. A larger than expected drop would be good news for the bond market and could lead to an improvement in mortgage rates.

Also worth mentioning about tomorrow morning is the release of the ISM Services index. This report often has little impact on the markets or mortgage rates. It is similar to yesterday's ISM Manufacturing index but tracks the service related sector. Last month's surpris e drop did cause some volatility in the markets, so if tomorrow's release also gives us a surprise we may see some additional movement in rates.

The Fed Beige Book will be posted tomorrow afternoon. This report details economic activity throughout the country by region. The Fed relies heavily on this data during their FOMC meetings, so look for a potential reaction during afternoon trading tomorrow. It probably will not cause a major sell off in the stock or bond markets, but could cause enough movement in bond prices to possibly improve or worsen mortgage rates slightly if it reveals any significant surprises.

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... Lock 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.

Stated / Stated - A Paper pricing on a SISA loan up to 90% LTV for Conforming Loan Amts. 

·       680 scores to 90% LTV (up to 95% if not in declining markets)

·       85% Second Home with 700 score

·       Self Employed and Wage Earners to 90%

Alt A Programs available:

·       SIVA to 85% with a 660 Score (up to $417k) – Purchase and R/T (C/O to 80%)

·       SIVAs down to 640 FICO Scores (up to 70% LTV) for Purchase and R/T – program code 400

·       Stated Wage and Self Employed programs

·       SIVA NOOs – Purchase & R/T to 70% with 660 (and to 85% with a 700+)

·       1-Day out of MLS for R/T  (Owner Occupied only) -- program code 600 (others available at 3mths)

Jumbo A and Expanded Jumbo programs – Superior Pricing!

·       Full & SIVA & SISA Doc Types

Traditional A Paper:  Great ARM pricing!!!

·       Flex 100 and My Community & Home Possible to 100% Available

·       EA1, II and III available

·       SIVA Available!!!

680 to 90% wage earner and self employed in non-declining markets R/T and purchase. Conforming

700 to 90% wage earner and self employed in declining markets.

O/O and 2^nd homes R/T and purchase. Conforming.

75% max cash out.

· Stand alone 2nds to 300k:

O/O, 2^nd homes.

Full doc only with a 660 fico.

50k to 300k.

Helocs 10 yr draw 15 yr payback.

Fixed 2^nd. 30/15 or 25 yr I/O.

Minimum draw 50k.

Do a 1^st and 2^nd and avoid MI.

· Standard Products:

Conforming:

O/O:

• 100% Full Doc. 1 loan with a 680 fico. Conforming Loan Amts.

Cash out to 90%.

• A paper conforming 1^st. Rate as low as 5% at par 5/1 I/O.
• SIVA to 90% R/T with 720 fico.

• EA 1,2 and 3 available at 80% below a 620 fico. 95% available with an EA1 over 620 fico
• VA Loans to 103%

JUMBOS:

O/O and 2^nd homes only:

Jumbos as low as 5.75% 5/1 I/O . R/T and Purchase

· SIVA @80%LTV to 500k with a 680.

· SIVA @80%LTV to 650k with a 720.

· I/O add .125%.

· Full doc @95% to 650 with a 680.

· Loan max 2 million.

· 2^nd homes to 90% with a 680.

Restriction:

Declining markets are a 5% LTV reduction from max CA. and FL or selected Zip Codes in other states on all products.

has opened in negative territory following stronger than expected inflation related readings. The stock markets are currently showing gains after opening with losses. The Dow is now up 80 points while the Nasdaq has gained 20 points. The bond market is currently up 5/32, but we will still see an increase of approximately .250 of a discount point in this morning's mortgage rates due to weakness in trading late yesterday.

The Labor Department reported early this morning that their Producer Price Index (PPI) for January rose 1.0% and that the core data rose 0.4%. Both of these readings were well above analysts' forecasts, indicating that inflationary pressures at the producer level of the economy are rising. This is bad news for bonds and mortgage rates because inflation erodes the value of a bond's future fixed interest payments. That leads to bond selling and rising mortgage rates.

In a bit of good news, February's Consume r Confidence Index (CCI) that was also released today showed a much larger than expected drop in confidence. The reading of 75.0 was well below the 82.5 that was expected, meaning that consumers are less likely to make large purchases in the near future.

Tomorrow begins the two day Congressional testimony by Fed Chairman Bernanke. He will be speaking to the House Financial Services Committee tomorrow morning and the Senate Banking Committee Thursday. Market participants will be watching his words very closely for any indication of inflation concerns, a possible recession and likelihood of the Fed's next monetary policy move. It will likely create additional volatility in the markets tomorrow morning.

As for economic data tomorrow, we have January's Durable Goods Orders at 8:30 AM ET. This data gives us an important measurement of manufacturing sector strength by tracking orders at U.S. factories for items expected to last three or more years. A larg er drop than the 4.0% that is expected would be good news for the bond market and mortgage rates. This data is quite volatile from month to month, so large swings are fairly normal.

January's New Home Sales will also be posted, but I am not expecting it to have an impact on bond trading or mortgage rates due to the importance of the Durable Goods report and Mr. Bernanke's testimony.

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.

 following the release of quite mixed economic news. The stock markets are posting very modest gains with the Dow up 22 points and the Nasdaq up 1 point. The bond market is currently up 3/32, which probably is not enough to improve this morning's mortgage rates.

The Labor Department reported early this morning that the U.S. unemployment rate slipped to 4.9% last month and that 17,000 jobs were lost during the month. The drop in the unemployment rate was not expected, so we can consider that a negative for bonds. However, the report was expected to show that 70,000 jobs were added, therefore, the 17,000 decline is good news for bonds and mortgage rates. But, I believe that an upward revision to November's payrolls of 64,000 jobs has prevented a more favorable reaction in bonds.

In another piece of good news, the average hourly earnings portion of the report rose only 0.2% when forecasts were calling for a 0.3% rise. This is good news because it eases some wage inflation concerns. Still, not enough to lead to a sizable bond rally.

The Institute of Supply Management (ISM) posted their manufacturing index late this morning, saying that the index rose to 50.7. Not only was the higher than expected reading bad news for bonds, but the fact that it rose above the benchmark 5 0.0 also hurt. A reading above that benchmark means more surveyed manufacturers felt business improved than those who said that it had not. The sub-50.0 level is a recessionary indicator and was considered good news for bonds and mortgage rates for the short time it was there.

The last report of the week was the revised reading to the University of Michigan's Index of Consumer Sentiment. It was revised higher from the preliminary reading of 48.4 to stand at 50.7. This was the least important of today's three releases and has not had much of an impact on trading or mortgage pricing.

Next week is fairly light in terms of economic reports for the markets to digest, especially when compared to this week's calendar. December's Factory Orders will kick the week off Monday morning, but it is considered to be of moderate importance to the markets. Look for more details on next week's event sin Sunday's weekly preview.

If I were considering financing/refina ncing 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.

following mixed economic news and early stock gains. After yesterday's steep sell-off that had the Dow close down over 300 points, stocks have rebounded during morning trading. The Dow is currently up 85 points while the Nasdaq has gained 20 points. The bond market is currently down 9/32, but we will still s ee an improvement in this morning's mortgage rates of approximately .250 of a discount point over yesterday's morning rates. The improvement is a result of strength in bonds late yesterday.

The first of today's two pieces of economic data was December's Leading Economic Indicators (LEI). It showed a decline of 0.2% that was a little larger drop than was expected. This is good news for bonds and mortgage rates because it indicates that the economy may continue to slow in the coming months. That eases inflation concerns and hurts stock prices, which makes bonds more attractive to investors.

The second report was January's preliminary reading to the University of Michigan Index of Consumer Sentiment that exceeded forecasts by a wide margin. Today's release revealed a reading of 80.5 compared to forecasts of a 74.5 reading. That means that surveyed consumers were much more optimistic about their own financial situations than many had thought. This is consider ed bad news for bonds because rising levels of confidence usually means that consumers are more apt to make large purchases in near future.

The bond market will close early today and remain closed Monday in observance of the Martin Luther King Holiday. They will reopen for normal hours Tuesday morning. I don't think the early close will particularly affect bond trading or mortgage rates today.

Next week is extremely light in terms of economic releases and events. It appears there is only a single housing related report on the calendar. Look for more details and expectations for next week 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 wou ld 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.

It lists all of your credit card accounts and loans, the balances as well as your payment history. It also shows if any action has been taken against you because of unpaid bills such as a lawsuit or bankruptcy filing. Because businesses use this information to evaluate your applications for credit, insurance and employment, it’s important that the information in your report is complete and accurate, especially if you plan to make a big purchase like a home.

The Fair Credit Reporting Act (FCRA), enforced by the Federal Trade Commission (FTC), is designed to promote accuracy and ensure the privacy of the information used in consumer reports. Under the FCRA, both the credit reporting agency (CRA) and the organization that provided the information to the CRA (usually the credit card company) must correct any errors or incomplete information in your report.

If you do encounter a mistake on your credit report, several steps need to be taken to correct the matter:

1. The first thing to do is get a copy of your credit report from each of the three major CRAs: Equifax, http://www.equifax.com; Experian, http://www.experian.com; and TransUnion, http://www.tuc.com.

2 In a written letter, tell the CRA what information you believe to be inaccurate. Include copies (not originals) of documents that support your position. Provide your complete name and address, identify each item in your report you dispute, and request deletion or correction. Be sure to make copies of your dispute letter and enclosures.

3. Send your letter by certified mail, return receipt requested, so you can document what the CRA received.

4. The FCRA mandates that all CRAs reinvestigate the items in question — usually within 30 days — unless they consider your dispute frivolous. They also must forward all relevant data you provide about the dispute to the credit card company. After the credit card company receives notice of a dispute from the CRA, it must investigate, review all relevant information and report the results to the CRA.

5. If the disputed information is found to be inaccurate, the credit card company must notify all nationwide CRAs so they can correct this information in your file. Disputed information that cannot be verified must be deleted from your file.

6. When the reinvestigation is complete, the CRA must give you the written results and a free copy of your report if the dispute results in a change. If an item is changed or removed, the CRA cannot put the disputed information back in your file unless the credit card company verifies its accuracy and completeness, and the CRA gives you a written notice that includes the name, address, and phone number of the credit card company.

7. In addition to the CRA, you should also write to the credit card company about the error. Again, include copies of documents that support your dispute. If you are correct — meaning the information you disputed is found inaccurate — the credit card company cannot use it again. Further, at your request, the CRA must send notices of corrections to anyone who received your report in the past six months.

Many new homebuyers make the mistake of rushing out to buy things to fill their home with as soon as the seller accepts their purchase offer and the lender pre-approves their loan. But there are still a few major hurdles to overcome before the keys are handed out. Here are some things to avoid during the home buying process to assure your transaction goes as smoothly as possible:

• Don't make an expensive purchase. It may be tempting to order that new sofa for your soon-to-be living room, but its best to avoid making major purchases like furniture, cars, appliances, electronic equipment, jewelry, or vacations until after the closing. Financing that furniture with a store credit card or even one of your own credit cards could jeopardize your credit worthiness during the time it means the most. Using cash to purchase big items can also create a problem because many banks take into consideration your cash reserve when approving your mortgage.
• Don't get a new job. Lenders like to see a consistent job history. Generally, changing jobs will not affect your ability to qualify for a mortgage loan - especially if you are going to be making more money. But for some people, getting a new job during the loan approval process could raise some concern and affect your application.
• Don't switch banks or move money around. As your lender reviews your loan package, you will likely be asked to provide bank statements for the last two or three months on your checking accounts, savings accounts, money market funds and other liquid assets. To eliminate potential fraud, most loans require a thorough paper trail to document the source of all funds. Changing banks or transferring money to another account - even if its just to consolidate funds - could make it difficult for the lender to document your funds.
• Don't give a good faith deposit directly to the seller in a FSBO purchase. As a rule, your good faith deposit belongs to you, not to the seller, until the deal closes. Your FSBO seller may not know that your good faith funds should be applied to your expenses at closing. Get an attorney or other neutral party who can hold the deposit or put it in a trust account until you close on the home. Your purchase contract should dictate to whom the funds go should the transaction fall through.
• Don't disregard your lenders requirements. You may have been pre-approved for the loan but your work with the lender is far from over. In order to process your loan, you need to meet certain requirements. Your lender will need copies of your bank statements, W2s and other paperwork. It is up to you to get it to him or her as soon as possible. Failure to submit certain qualifying documents could cause you to lose your loan and the financing you need to buy your home.

In today's increasingly automated society, it should come as no surprise that when you apply for a mortgage, your ability to pay can be reduced to a single number. All the years you've been paying your mortgage, car payments, and credit card bills can be analyzed, sliced, diced, spindled and mutilated into a single indicator of whether you're likely to meet your future obligations.

All three of the major credit reporting agencies (Equifax, Experian and TransUnion) use a slightly different system to arrive at a score. The best known is called the FICO score, based on a model developed by Fair Isaac and Company (hence the name) and used by Experian. Equifax's model is called BEACON, while TransUnion uses EMPIRICA. While each of the models considers a range of data available in your credit report, the primary factors are:

Each of these, and other items, are assigned a value and a weight. The results are added up and distilled into a single number. FICO scores range from 300 to 850, with higher being better. Typical home buyers likely find their scores falling between 600 and 850.

FICO scores are used for more than just determining whether or not you qualify for a mortgage. Higher scores indicate you are a better credit risk, and thus may qualify for a better mortgage rate.

What can you do about your FICO score? Unfortunately, not much. Since the score is based on a lifetime of credit history, it is difficult to make a significant change in the number with quick fixes. The most important thing is to know your FICO score and to ensure that your credit history is correct. Conveniently, Fair Isaac has created a web site (www.myFICO.com) that let's you do just that. For a reasonable fee, you can quickly get your FICO score from all three reporting agencies, along with your credit report. Also available is some helpful information and tools that help you analyze what actions might have the greatest impact on your FICO score. Each of the credit services offers similar services on their web sites: www.equifax.com, www.experian.com, and www.transunion.com.

Armed with this information, you will be a more informed consumer and better positioned to obtain the most favorable mortgage available to you.

but it doesn’t mean you have to wait 10 years before you can qualify for a mortgage. Many consumers who have filed for bankruptcy have been able to obtain a mortgage, although it is often at a higher rate than someone qualifying for a prime or "A-paper" loan.

While credit card companies may care about what happened before you filed for bankruptcy, many mortgage lenders are more interested in your recovery — what you’ve done since your filing. It won’t happen over night, but here are some tips and things to keep in mind when you inquire about a mortgage with a tarnished credit past:

Give explanations. No mortgage lender is going to ignore the fact that you’ve filed bankruptcy and he or she will likely want to know the cause of the filing. Your lender will be particularly interested in whether the same situation could happen again. Your chances of being qualified are much better if your bankruptcy was caused by a single event such as a loss of employment or a death in the family, than if it was the result of “just spending too much.”

If the bankruptcy resulted from a single event, it is important to show your lender paperwork describing the incident, such as the layoff notice or death certificate. You may also want to bring in court documents to indicate when the bankruptcy was filed.

Demonstrate good money habits now. Many people who file bankruptcy swear off credit altogether, however, it is important to re-establish your credit rating. Get a secured credit card or take on some sort of loan — furniture, a car or a major appliance — to demonstrate that you are able to make timely payments. Make sure you are making other payments (utility bills, cell phone, etc.) on time as well. You won't turn things around in a year but your credit score will improve over time.

Dispute any credit report errors. There’s no need to add to your troubled credit history with errors on your credit report. Get a copy of your credit report from each of the three major credit reporting agencies: Equifax, http://www.equifax.com; Experian, http://www.experian.com; and TransUnion, http://www.tuc.com. If you encounter any errors, inform the CRA in writing what information you believe to be inaccurate and request deletion or correction.

Save your money. Lenders may be more willing to loan you money if you’ve saved up a considerable amount of money for a down payment.

Live within your means. Even subprime lenders won’t risk loaning you money for an opulent oceanfront mansion. Think small when the time comes to look for a home. Smaller homes often mean smaller mortgages.

There's just one thing standing between you and your new house: The down payment.

Many home buyers today opt to use funds from their employer’s 401(K) program to come up with the down payment on a house. Ordinarily, you can't take money from your 401(K) plan unless you retire, leave the company or become disabled, but many company plans permit certain “hardship withdrawals” when there is an immediate and heavy financial need, including the purchase of the employee's principal residence.

The drawback to a hardship withdrawal is that you will pay taxes and penalties on the amount withdrawn from your plan, which often must be paid in the year of withdrawal. And while hardship withdrawals are allowed by law, your employer is not required to provide them in your plan. Check with your employer’s human resources department if you're not sure if your 401(K) plan allows hardship withdrawal.

Another approach may be to borrow against your 401(K) – often as much as 50 percent of your account balance. You pay interest on the loan, but the interest goes back into your account. The money you receive is not taxable as long it is paid back and plans can give you anywhere from five to 30 years to pay back your loan.

There are risks involved in borrowing from your 401(K). If you lose your job or leave your employer, you must pay back the loan in full within a short period, sometimes as little as 60 days. If the money is not paid back in that time, it is considered a withdrawal from your plan and subjected to the same taxes and penalties. And while 401(K) accounts can usually be rolled over into a new employer’s 401(K) without penalties, loans from a 401(K) cannot be rolled over.

In addition, because the funds withdrawn from your account are no longer earning compound interest, your account will be smaller when you retire. And you’ll be replacing pretax money with after-tax money.

Some lenders will count the money you borrowed from your 401(K) as an additional debt that will go along with your car payments, student loans and credit cards. While it may seem unfair since you are borrowing your own money, most lenders view it as a payment obligation that affects your debt-to-income ratio in qualifying for a home loan. It may be a factor in whether you decide to make a hardship withdrawal from your 401(K) and pay tax penalties or borrow against it.