Jumbo Loans Are Back

For home buyers, 2012 was the year of the jumbo, jumbo mortgage.

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Private jumbo loans start after $417,000 in most parts of the country—or exceed $625,500 in pricey metro areas like New York and San Francisco. But lenders say they've been doling out loans that far exceed these amounts.

Overall, lenders distributed $148 billion of private jumbos over the first nine months of the year, up 23.3% from the same period a year ago, according to data compiled by Inside Mortgage Finance, a trade publication. Originations for the year are on pace to be the highest since 2007.

Here at HomeQuest Mortgage offer a full portfolio of loan programs with loan amounts up to $3,000,000. Call us direct at 949-460-7799 and ask to speak with Tom Drasler.

New Obama Refi Program in 2013

Wall Street Journal, December 25th, 2012

The Obama administration is considering expanding its mortgage-refinancing programs to include borrowers whose mortgages aren't backed by the government and who owe more than their homes are worth, according to people familiar with the discussions.

Such a move would benefit borrowers and provide a boost to the economy by unleashing cash that homeowners could spend elsewhere. But one proposal being considered would also transfer potentially riskier loans held by private investors into the taxpayer-supported mortgage giants Fannie MaeFNMA -1.54% and Freddie MacFMCC -3.91% .
About 22% of all homes with a mortgage, or around 10.8 million homes, were worth less than the outstanding balance at the end of June, according to CoreLogic. That number has fallen from 12.1 million at the end of last year as home prices have picked up, but around 10% of all homeowners with a mortgage are still deeply underwater.
Fannie and Freddie own or insure about half of all home loans, and most underwater borrowers with their backing can refinance to get a lower mortgage rate as long as they are current on their loans. That initiative has benefited holders of more than 330,000 underwater mortgages through October this year, up from around 60,000 in all of 2011. "It has been unbelievably successful," said Scott Simon, who heads the mortgage-backed securities group at Pacific Investment Management Co., or Pimco, a unit of Allianz SEALV.XE -0.99% .
Officials at the Treasury Department and the White House now would like to include borrowers who have been locked out because their loans aren't backed by the firms. Those loans are held by private lenders or investors, and some of them were issued by subprime lenders and bundled into securities by Wall Street firms.

Bank of America accounted for 27% of complaints

Accordiing to the newly formed (Dodd-Frank Act) Consumer Financial Protection Bureau (CFPB) between July 21, 2011 and September 30, 2012, U.S. consumers filed 36,403 mortgage-related complaints against various lenders, banks, servicers, and other mortgage companies. Bank of America accounted for 27% of complaints, the most out of any bank accounted for in CFPB's data - of the 9,930 mortgage complaints filed against Bank of America, 6,430 related to loan modifications, collections and foreclosures. Loan servicing, payments and escrow accounts recorded 2,044 complaints, while complaints regarding application, originator or mortgage broker issues tallied 542. BofA received nearly twice as many complaints as runner up Wells Fargo who recorded 5,051 mortgage-related complaints in the CFPB study's time frame.

Interest Rates End Year at Record Lows

Mortgage interest rates finished out the year near record lows, helping fuel the housing market’s modest recovery.

The average rate for a 30-year, fixed-rate mortgage was 3.35%, down slightly from 3.37%, Freddie Mac said in its weekly survey. This week’s rate is close to the 3.31% rate hit earlier this year, the lowest since records begin in 1971.

The 15-year fixed rate mortgage, popular with homeowners looking to refinance, averaged 2.65% this week, unchanged from last.

While it is expected that interest rates will remain low in the coming year, borrowers should still expect tough lendeing standards, offering low rates to only the best qualified borrowers. Call me today at 714-478-3153 to find out if you qualify for a record low rate.

Enough About "Shadow Inventory"

Is 'shadow' overhyped as a housing recorver threat?

It's been a hard year to be a housing bear.
U.S. housing markets finally came alive in 2012, with home sales and housing starts up strongly. And prices are on track to end the year in positive territory for the first time since the downturn began in 2006.

First, the shadow is shrinking. It has already fallen to 3.4 million units this year from a peak of 4.7 million in 2009, according to John Burns Real Estate Consulting. As well, inventories of new homes for sale are at 50-year lows, while listings of previously owned homes are at an 11-year low. Banks have also become better at approving short sales, where homes sell for less than the mortgage owed.
The danger in focusing so heavily on supply is that skeptics have overlooked demand, which revved up this past year. Sales of existing homes in November were up 14.5% year over year to a three-year high.

Short Sale or Foreclosures Mean Big Tax Penalty in '13

http://money.cnn.com/2012/12/24/real_estate/mortgage-debt-forgiveness/If the Mortgage Forgiveness Debt Relief Act of 2007 does not get extended by Congress by the end of the year, homeowners will have to start paying income taxes on the portion of their mortgage that is forgiven in a foreclosure, short sale or principal reduction. That means if someone owes $150,000 on their home and it sells for $100,000 in a foreclosure auction, they could owe taxes on the remaining $50,000. For someone in the 25% tax bracket, that would mean paying $12,500 in taxes on the foreclosure. Similar taxes would apply for amounts that were forgiven in short sales and principal reductions.

Home Prices Rise From Year Earlier

Compared with a year earlier, the 10-city index increased 3.4%. The 20-city index grew 4.3%, above recent expectations of economists surveyed by Dow Jones Newswires for 4.1% growth. Chicago and New York were the only two cities with year-to-year declines.

Home Builders Are Optomistic About 2013

And how about that housing market! Homebuilder sentiment increased for the eighth straight month with the index at its highest level since April 2006. Existing Home Sales in November increased nearly 6% to a better than expected 5.04 million with sales at their highest level since November 2009. In addition, the national median home price was up about 10% from a year ago while months' supply of 4.8-months was at its lowest since September 2005. And the FHFA house price index reported prices rose 0.5 percent in October and were up 5.6 percent year-over-year. And if housing prices continue to move higher, that increases the pool of potential refi's for 2013, right?

Baby Boomers Should Opt for a 15yr Fixed

The 15 year is the way to go for Baby Boomers. Call me to find out how much term reduction can save you in interest and principal pay down. 714-478-3153

The 15-year loan, long considered a fringe character in the mortgage scene, is riding a wave of popularity.
Thanks to low interest rates, many borrowers are opting for the deal that allows them to pay off their mortgages in half as much time as the traditional 30-year mortgage.

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2013: How Rising Prices Could Boost Housing Demand

Wall Street Journal, Decemeber - 2013

Just as falling prices have frozen buyers and sellers in place in recent years, housing strength may be even stronger than current indicators show given the powerful shift in sentiment that price increase may bring.

http://blogs.wsj.com/developments/2012/12/18/2013-how-rising-prices-could-boost-housing-demand/?mod=WSJ_3Up_RealEstate&mod=wsj_valettop_email

New California Foerclosure Laws in 2013

Is anything going on in California with foreclosure law changes on January 1? Yes there will be changes, and what happens in that state often happens elsewhere. Here is a quick little summary: http://dirtblawg.com/.

First Time Buyers Expected To Come Out in 2013

FIRST TIME BUYERS ARE EXPECTED TO ONCE AGAIN FLOOD THE HOME BUYING MARKET IN 2013. Truila states 93% of renters between the ages of 18 and 34 plan to purchase a home someday:http://lnkd.in/KVBV-b

Mortgage Professional vs Big Bank

You got to love this video; it certainly illustrates what I've heard from folks who try to get a loan thru a big bank. Don't be dupped.

 

http://youtu.be/4rif6r0vwyE

What does it mean when the Fed says they will Keep interest rates low?

The Fed has stated that it will keep interest rates low for at least two more years. They will continue to be aggressive in support of the economic recovery. However, the Fed does not directly control long-term rates which determine the cost of home loans and even loans on automobiles. It can influence long-term rates through the purchases of government securities, and is indeed doing so. When the markets perceive that the recovery is picking up steam, it will react accordingly. The day of the release of positive employment figures, we saw long-term rates go up. That does not mean that the economy is out of the woods and that the increase was permanent. It was a reminder that when and if the economy gains strength all bets are off. The recent strength in the real estate market is one factor which can make that happen.

Property Values Expected to Rise in 2013

Mortgage rates are likely to remain near record lows for the first half of 2013, while property values are expected to strengthen, said mortgage-finance companyFreddie Mac FMCC +0.33%.
The company expects long-term mortgage rates to rise gradually in the second half of 2013, but to remain below 4%, according to its U.S. Economic and Housing Market Outlook.
http://blogs.wsj.com/economics/2012/12/10/freddie-mac-mortgage-rates-to-stay-low-property-values-to-rise-in-2013/?mod=wsj_valetbottom_email

Freddie Mac Expects Interest Rates to Rise in 2013

There is still

Freddie Mac Expects Rates to Rise in Q3 of 2013

Mon, 2012-12-10 17:13 — NationalMortgag...

Freddie Mac has released its U.S. Economic and Housing Market Outlook for December showing what some of the market features are expected to look like in 2013. Freddie Mac says to look for long-term mortgage rates to remain near their record lows for the first half of 2013, then rising gradually during the second half of the year, but remaining below four percent. Property values are also expected to continue to strengthen with most U.S. house price indexes likely rising by two to three percent in 2013. While the refinance boom will continue into early 2013, it will be less compared to 2012, so look for single-family mortgage originations to decline by 15 percent, conversely, expect multifamily lending to rise approximately five percent.

"The last few months have brought a spate of favorable news on the U.S. housing market with construction up, more home sales, and home-value growth turning positive," said Frank Nothaft, Freddie Mac's  vice president and chief economist. "This has been a big change from a year ago, when some analysts worried that the looming 'shadow inventory' would keep the housing sector mired in an economic depression. Instead, the housing market is healing, is contributing positively to GDP and is returning to its traditional role of supporting the economic recovery."

Should I Sell My Home During the Holidays?

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FANNIE AND FREDDIE LOAN LIMITS DON'T CHANGE FOR 2013

The maximum dollar limits for conforming mortgage loans will remain unchanged for Freddie Mac and Fannie Mae in 2013. The GSEs' conservator, the Federal Housing Finance Agency (FHFA), announced on Thursday that the baseline limit that will apply to most of the country will be $417,000 for one unit properties. Differing limits, ranging as high as $625,000, will prevail in so-called "high cost" counties but in each instance will remain the same as in 2012.

Interesting Home Sales Numbers Posted for October

On Wednesday we saw some price movement during the day, but for the most part MBS prices were pretty flat on below-normal volume. We learned that New Home Sales decreased 0.3% in October, but is up 17.2% year over year. The median sales price was $237,700; the average was $278,900. The seasonally adjusted estimate of new houses for sale at the end of October was 147,000, which represents a supply of only 4.8 months at the current sales rate. The press doesn't seem to be focused on that "shadow inventory" any more.

 

What is the impact of losing the Mortgage Deduction?

With all the talk about limiting tax loopholes and simplifying our income tax system, ther eis bi-partisen support for elimination of the home interest tax credit. Few in the real estate or lending industry want the government to do away with the mortgage interest tax deduction. It is interesting to note , the deduction a) is rare in other countries, b) has a much larger perceived benefit than actual benefit. Besides, a move will probably be gradual. They'll probably go from $1 million down to $500k, making it politically acceptable. Lastly, "The Mortgage Interest Deduction is of limited value because of low rates and low house prices. A $300,000 house with a 30-year mortgage at 3.25% pays just $7,800 in mortgage interest, yet the 2012 standard deduction is $11,900 if married filing jointly. If the MID is nixed, placing your house into a corporation and having the corporation rent the home to you, allows you to continue deducting all mortgage interest." (So wrote economist Elliot F. Eisenberg - if you want to receive his free 70 word updates shoot him an e-mail at elliot@graphsandlaughs.net.)

Experts Expect Mortgage Rates Will Rise in 2013

With mortgage rates hitting record lows in 2012 it is expected in 2013 rates will inevitably rise in 2013. The Mortgage Bankers Association expects that they'll gradually increase over coming 12 months, with rates for 30-year fixed loans averaging 3.8% in Q4 of 2012, 3.9% in Q1 of 2013, and eventually climbing to 4.4% by this time next year. It is a safe bet that rates, at some point, will move higher, but the MBA has been incorrect for the last several years. For example, the MBA forecast that the average rate for 2012 would be 4.4%, and the annual average is estimated to be closer to 3.8%.

Coastal Residential Real Estate is Now a Sellers' Market

A sellers' market appears to be emerging in some areas in California. The California Association of Realtors® (C.A.R.) said Thursday that favorable home prices and record-low interest rates are making the market competitive to the point that nearly six of ten houses are receiving multiple offers. C.A.R. made the comments as it released results of its 2012 Annual Housing Market Survey.
Fifty-seven percent of home sales featured multiple offers in 2012, the highest in at least the past 12 years. Each home that received a multiple officer received an average of 4.2 compared to 3.5 offers in 2011. Lower priced homes and distressed properties -bank-owned real estate (REO) and short sales - had more multiple offers than market sales, seven out of ten compared to one-half.

http://www.mortgagenewsdaily.com/11012012_house_prices.asp

Do you think you NOW qualify (again) to buy a home after short selling your home?

It's time for families who were forced to short sale their homes two or more years ago to come back into the home buying market and forego throwing their money away on rent. Are you unsure if you qualify? Call me at 714-478-3153.
http://blogs.wsj.com/developments/2012/10/31/scared-americans-still-skipping-homeownership/?blog_id=36&post_id=21428

Carbon Monoxide Detectors Are Required in All CA Homes

Prior to having your home appraised for a home refinance or sale make sure you have working carbon monoxide detectors installed. I found them at Costco for $19. Best to have one on each floor of your home; ie. Laundry room or wherever there may be gas outlets. It’s now the law and appraisers will be looking for them. Call me at 714-478-3153 if you have any questions.

http://casafehomes.org/law.html

                    

Social Media - Be careful - can hurt your Net Worth

Social media can be very dangerous to your pocketbook. This video hits home on what IT and hackers are doing with your 'available' personal information.
Scary

Low Inventories Lift Sellers' Prices

 

Click for interactive

This has been a common theme the last nine months, particulary across Coastal areas in California. The question remains; where is the so called 'shadow' inventory analysts have been talking about that will keep home values low for some time to come. That may be the case in Inland areas across the State, but there is no sign of price errosion in desireable coastal communities. Today building starts were announced to be up 15% this past quarter.

Housing inventory continues to move in one direction: down.
The number of homes for sale in September dropped by 2.2% from August, by 17.8% from last year, and by 34.3% from two years ago, according to data from Realtor.com, a listings website.
Slightly more than 1.8 million homes were listed for sale in September, the third lowest level of the year, behind January and February, which are traditionally the slowest months of the year for home sales.

Inventories have been falling amid stronger demand from home buyers, which is helping to firm up prices. Median asking prices rose by 0.8% in September from August. Inventories are also low because many would-be sellers don’t have enough equity in their homes or aren’t willing to sell at prices that are still down by nearly 30% from their peak six years ago.

What's Pushing Mortgage Rates UP This Week?

The technical picture has changed to bearish, however with the recent volatility it is still too soon to believe that rates have finally bottomed and will continue to increase. This morning it isn’t the stock indexes that are driving rates higher, at 8:45 the DJIA up just 4 points. The push to higher rates is being driven by much better economic reports (retail sales, improvement in the housing market outlook) and relaxation over debt problems in the EU.

HARP Refi's Are Gaining Momentum

HARP accounted for nearly 24% of all refinances during the month, 50% of HARP applications came from the 80-105% LTV bucket, 27% of HARP applications came from greater than 125% LTV bucket, YTD HARP volume stands at 618k; Inception-to-date HARP volume stands at 1.6 million, and more than 70% of the HARP volume in Nevada, Arizona and Florida came from >105% LTV borrowers in August, versus 51% nationwide. Speaking of states, HARP volume as a percent of total refinances for Nevada, Arizona and Florida was at least 50% in August, versus 24% nationwide. Overall, HARP had a much higher market share both in July and August in states that have been particularly hard hit by the housing downturn including Nevada, Arizona, Florida, Utah, Idaho, Michigan, and Georgia. 

California Home Prices are RISING

Good news for many California homeowners, hundreds of thousands of whom have been underwater on their mortgages, prices are increasing. The statewide median price of an existing SFR was $345,000 in September compared to $343,820 in August. The September number was 19.5 percent above the median price of $288,700 in September 2011. This was the seventh consecutive month that median prices increased both year-over-year and month-over month and was the highest since August 2008 when the median price was $352,730

Should You Refinance Your Mortgage? - NASDAQ.com

Should You Refinance Your Mortgage? - NASDAQ.com

Boomerang Home Buyers Are Flooding the Market!

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When will Lending Standards Begin to Relax?

I get this question almost daily. When will residential mortgage lending standards loosen up so more American's can refinance their homes?

Very capable, qualified homeowners with Fico scores above 700, have steady jobs, strong income, and are never late on their mortgage payment and can't qualify for a new mortgage so they can lower their current interest rate and payment. When will the Fed's and proponents of Dodd-Frank realize how this bill has prevented credit worthy homeowners from taking advantage to current historically low mortgage interest rates? Can you imagine what a boost it would be to the economy if American families had an extra $400-$700 per month discretionary cash flow to buy more goods and services!?
As 30-year rates hit historic lows, some borrowers are hoping that lenders will be loosening their underwriting standards and that it will be easier to qualify for a mortgage.  They're hoping in vain: industry data shows that controls have gotten even tighter. I don't remember where I saw the stat, but the average credit score on new loans closed in August 2012 was 750, nine points higher than a year prior.  Fannie and Freddie borrowers' scores averaged 763 for that same period, and considering that fewer than 22% of Americans have credit scores over 749, there are a lot of people out there who are highly unlikely to qualify for a loan.  Lenders also appear to be requiring larger down payments, with the average Fannie and Freddie borrower putting down 21% (to put that in context, the median down payment in 2005 was 2%.) Originators hope that eventually lenders probably will relax about upcoming regulation, be less fearful about costly buyback demands from the GSEs, and strip away some of their extra credit-risk fees.  The key word here, though, is "eventually."

How About Home Ownership - Is It Now Stronger?

How about home ownership in general - is it now in "stronger hands"? The real homeownership rate, defined as the percentage of households who own a home and are not 90 days or more delinquent on their mortgage, has fallen to 62.1%, the lowest level in nearly 50 years. (The Census Bureau's 65.5% homeownership rate overstates the real level of homeownership in the country since it counts all 3.8 million homeowners who are 90-plus days delinquent on their mortgage as homeowners.) Historically, the spread between the published and real homeownership rates has been slightly below 1%, even in a strong economic environment there is always some level of delinquency. But as we all know, the spread has widened from 1% to 3% due to the economic downturn, and understaffing at the banks who cannot deal with the huge inventory of delinquent mortgages and the complications of loan modification or foreclosure with so many parties involved. We also have lenders treading very cautiously, fearing fees, sanctions and even jail time (in Nevada) for not properly documenting the foreclosure process, and still some confusion from dealing with many Federal government attempts to intervene in the process like HARP and HAMP.

NAR Declares Start to Housing Comeback

http://www.mortgagenewsdaily.com/05222012_existing_home_sales.asp

Mortgage Rates Match All-Time Lows; "Wall" Begins Cracking


http://www.mortgagenewsdaily.com/consumer_rates/259051.aspx

Is Now the Time to Buy Your First House?http://online.wsj.com/article_email/SB10001424052702304299304577348083297932466-lMyQjAxMTAyMDEwNDExNDQyWj.html?mod=wsj_share_email

The HARP 2.0 Refinance Program is Here! Refi up to 125% LTV

 

Attention Underwater Homeowners!  Harp II program may be the biggest event of 2012 and it starts now! Don't missed out on refinancing to a very low interest rate today.  Some of the benefits of HARP II are as follows: Mortgage loan must have closed prior to June 1st, 2009 Loan must be currently owned by Fannie Mae or Freddie Mac No minimum credit score No mortgage lates in the last 6-months & max of 1-30 day late in the last 7 to 12 month period No minimum appraised value required  Primary residence, second home & investments properties are all eligible Home can be currently listed for sale Having a 2nd mortgage does not disqualify you Closing cost can be financed into the new loan If you have an existing Fannie Mae or Freddie Mac loan and desire a lower payment then this program is for you.  We can check if your property qualifies in minutes so please give us a call as so many already have. Remember these are the lowest rates! You may also apply for this program by going to my secure website: http://draslerhomeloans.com/ Tom Drasler Phone: 714-478-3153 tomdrasler@cox.net DRE # 17775516   NMLS# 297791

Demand For Homes Continues To Show Recovery

The number of contracts signed to buy homes in February eased slightly from January but posted another strong gain from a year ago—the latest sign that demand for homes is up from the depressed levels of the previous 18 months.
A report Monday by the National Association of Realtors showed the index of pending home sales, reflecting deals that have gone into contract but haven't yet closed, rose 9.2% last month from a year earlier, continuing a rise largely fueled by investors' purchases of foreclosed properties. The index fell by 0.5% from January.

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Interest Rates the Highest Since October-2011

Don't miss out on refinancing before rates resume to earlier market levels. If you didn't qualify 2 years ago, you may now with new Obama refinance program launched this week.

WASHINGTON (MarketWatch) - The 30-year fixed-rate mortgage has climbed above 4% for the first time since October, following improving economic data, Freddie Mac said Thursday in its weekly report. The average rate on the 30-year fixed-rate mortgage increased to 4.08% in the week ending March 22 from 3.92% in the prior week. The rate was 4.81% a year earlier. "Mortgage rates are catching up with increases in U.S. Treasury bond yields," said Frank Nothaft, Freddie Mac's chief economist. To obtain the latest rate, payment of an average 0.8 point was required, according to Freddie, a buyer of residential mortgages. A point is 1% of the mortgage amount, charged in prepaid interest. The 15-year fixed-rate mortgage rose to 3.30% in the latest week from 3.16% in the prior week. Meanwhile, the average rate on the 5-year Treasury-indexed hybrid adjustable-rate mortgage increased to 2.96% from 2.83%. The 1-year Treasury-indexed ARM rose to 2.84% from 2.79%.

Quicken Loans Supreme Court Case - Borrowers' Beware!

With the Supreme Court considering the Freeman versus Quicken Loan case, and Quicken's public statement regarding its policies, "Quicken has never charged unearned fees?" I think the verbiage will be the issue. My bet is that it collects more in origination than it should. For a broker, if you charge points (which are fees that buy the interest rate down) you cannot get any YSP (credit for the interest rate chosen) - that makes sense. Quicken does not have disclose YSP, therefore, it can charge points and still collect the YSP with the rate it says has points. In the past the big builders that operated their own mortgage banking companies got away with horrible abuse. They would tell the buyer they would get $1,000 from the builder toward closing costs. So, they simply said the buyer was getting a rate and the charge for the rate was 2% (points), actually that rate had a 2% YSP. So, the buyer got $1,000 toward closing costs and the builder collected 2 points from the buyer and got 2 points YSP. Pretty slick!

As a licensed mortgage advisor/broker, I am held by law to a higher standard than today's on-line lenders and retail banks. With the passing and implementation of the 2009 Dodd-Frank Financial Reform Act, as a mortgage broker, I am required to annually take over 30 hours of coursework in areas of real estate law, ethics, and contract law. In addition, I am required to pass a California state exam and national mortgage practices and ethics exam, be finger printed with the FBI and registered in a federal data base to track and audit my loan origination activity (called the NMLS Registry), maintain an active real estate/broker’s license, and be subject to annual credit report pull to ensure I am financially responsible with my own personal finances.

Retail banks and internet lenders are only required by the Dodd-Frank bill to be registered in the NMLS registry system, without being licensed, need for annual continued education or required to take a state and national exam on lending ethics and law, and a credit report review.

As a mortgage broker, my company must fully disclose all earned commissions up front, to enable the borrower to shop for the best rate and fees. In addition, my earnings percentage are capped and must be the same for all my clients, whereas with banks or on-line lenders they are not required to disclose their profits to the borrower.

So borrowers beware.....use a mortgage professional that is licensed and provides not only competitive programs, but will offer you experience, service and choice.

Mortgage Brokers are Held to a Higher Standard than Banks and On-Line Lenders Like Quicken Loan

With the Supreme Court considering the Freeman versus Quicken Loan case, and Quicken's public statement regarding its policies, "Quicken has never charged unearned fees?  I think the verbiage will be the issue.  My bet is that it collects more in origination than it should. For a broker, if you charge points (which are fees that buy the interest rate down) you cannot get any YSP (credit for the interest rate chosen) - that makes sense. Quicken does not have disclose YSP, therefore, it can charge points and still collect the YSP with the rate it says has points. In the past the big builders that operated their own mortgage banking companies got away with horrible abuse.  They would tell the buyer they would get $1,000 from the builder toward closing costs.  So, they simply said the buyer was getting a rate and the charge for the rate was 2% (points), actually that rate had a 2% YSP.  So, the buyer got $1,000 toward closing costs and the builder collected 2 points from the buyer and got 2 points YSP.  Pretty slick.

Many years ago builders were not allowed to own and operate a mortgage company.  A controlled business agreement with a bank was allowed, but the contract was very explicit. Then anything and everything was allowed, and now, nothing is allowed, unless you are a bank or an online lender. Banks and online lenders don't have to disclose how they make their money, or how much they make - is that fair? Quicken Loans proved that the loan discount fee in each instance was not unearned at all, because the fee was a component of the loan terms and pricing structure. In Federal Court, the clients could not offer an explanation as to why they were claiming that the fees were entirely unearned, and the facts in this case indicate that the clients freely agreed to pay the loan discount fees after the charges were disclosed to them multiple times before closing. The fees were earned as a component of the price the clients willingly paid in order to obtain the reduced interest rate they wanted. The Supreme Court case focuses on the specific wording of RESPA.

Interest Rates the Highest Since Holloween!

Wednesday was not a good day for any borrower, broker, or LO who failed to lock earlier in the week. As the economy continues to show signs of picking up, thoughts of QE3, like those of a double dip recession, seem to be ebbing. All is relatively quiet in Europe, the Fed has indicated that the future looks a little rosier, U.S. economic numbers in some sectors are showing some strength, and suddenly we find our rates have shifted out of the range they've been in since Halloween. And when you throw in higher-than-normal selling by originators (almost double recent averages) hedging their pipelines, well, things can become ugly. The 10-yr T-note worsened by nearly 1.5 in price, closing around 2.27%, and "rate sheet" MBS pricing worsened by about 1.125.

Rise in Phoenix Housing Shows Path Back

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Healthy Job Gains Continue

Healthy Job Gains Continue

Overall, the economic data came in pretty close to expectations this week, and Greece successfully reached a debt deal with private bondholders. With a lack of surprises in the economic news, mortgage rates ended the week with little change.

While it was stronger than expected, the important monthly Employment report had only a minor impact on mortgage rates. Against a consensus forecast of 200K, the economy added 227K jobs in February, and revisions to prior months added an additional 61K jobs. The Unemployment Rate remained at 8.3%, as expected. Average Hourly Earnings, a proxy for wage growth, increased at a 1.9% annual rate. With gains above 200K for the first three months of the year, the recent pickup in job growth and the decline in Jobless Claims reflect solid improvement in the labor market.
Greece took a necessary step along its path to receive a much needed financial aid package. Private bondholders agreed to the proposed Greek bond swap deal, which will help reduce its debt burden. Without the deal, Greece was at risk of a potentially disastrous full default on its debt. This may have forced Greece to leave the European Union, possibly disrupting financial markets around the world.

Where the Multi-Millionaires Live

http://blogs.wsj.com/wealth/2012/03/07/where-the-multi-millionaires-live/?blog_id=25&post_id=5029

Obama Reduces FHA Refinance Fees

The Obama administration on Tuesday announced another initiative to allow more homeowners to refinance, this time by dropping fees on federally insured mortgages that have prevented some borrowers from taking advantage of ultralow rates over the past year.

The latest changes will reduce fees to refinance loans backed by the Federal Housing Administration through what’s known as a “streamline” refinance. For more details go to:
http://blogs.wsj.com/developments/2012/03/06/white-house-reduces-fha-refi-fees/?blog_id=36&post_id=20806

Home Prices Tumble .

http://online.wsj.com/article_email/SB10001424052970204652904577194752102528744-lMyQjAxMTAyMDMwMTEzNDEyWj.html?mod=wsj_share_email_bot

Tax Cut Extension Now Officially Raising Mortgage Rates

http://www.mortgagenewsdaily.com/01042012_bb_t_announces_g_fee_hike.asp