I have decided to hold a press conference to confront stories that I was Tiger Woods’ mistress. I’ve never held one before, nor have I ever met the man, nor am I “inclined” that way. But I figure that now is a good time to jump on the band wagon, especially if magazines are paying up for stories. Stay tuned for the time and place – it might be more entertaining than mortgage banking, and I’ve never been on the cover of “Us”.

I would imagine that plenty of folks at Bank of America, and their clients, are happy. Bank of America Corp. said that it plans to repay its $45 billion in government bailout funds, as soon as this week! Apparently the Bank has that much available cash, without sniffing around in the safe deposit boxes of its customers, and raise $18.8 billion in capital to repay the money. This is great news for shareholders (BoA stock moved higher on the news). Of the 4 major mortgage investors & servicers, this will leave Citi ($45 billion) and Wells ($25 billion) with owing TARP funds. There is no news from Citi. As for Wells, ever since they accepted their $25 billion of federal bailout assistance last year, management has said that the bank never needed the money, didn’t want it, and shouldn’t have been forced by the government to take it. They keep saying they’d like to pay it back, too, but have not offered up a schedule.

If you went to a mall last weekend to look for Cabbage Patch Dolls, the odds are pretty good that it was owned by General Growth Properties – they own and manage more than 200 of them here in the US. They are in the middle of a Chapter 11 bankruptcy plan after failing to refinance portions of its $27 billion in debt. According to the Wall Street Journal, they filed a plan in bankruptcy court to restructure $9.7 billion in mortgage loans which “puts the mall owner a step closer to pulling 166 malls out from the bankruptcy protection entered in April.” That leaves another $11.7 billion in remaining debt. “The pact allows mortgage holders to report the loans as performing on their books at the end of the year rather than distressed at a time when delinquency rates on commercial mortgages are rising.” Wouldn’t it be nice if residential mortgage servicers could do the same?

Lock desks were a little busier last week, and the MBAA reported that applications were up 2.1%. Both refi and purchase applications moved up, and applications to refinance amounted to over 72% of total applications.

If your business is based on originating FHA loans, you should be aware that the HUD Secretary is expected to announce changes to the FHA mortgage insurance program to curtail defaults. And they won’t be loosening up anything. The changes may include an increase in the minimum credit score for FHA loans from 500, a boost in the minimum down payment from 3.5% and a reduction in the maximum amount of seller concessions from 6% of the home’s value to 3%. Experts say monthly insurance premiums charged to borrowers and the current upfront premium — currently 1.75% of the loan value — also could be hiked.

Starting today, GMAC Bank Correspondent Correspondents, should know that “as outlined in the Mortgagee’s Assurance of Completion Document (Form HUD 92300), the Lender is required to hold Escrow Repair Funds. Title Insurance companies and Closing Agents are not permitted to hold Escrow Repair Funds for any FHA loan Transaction.” GMAC Bank will only permit approved Delegated Clients to hold escrow repair funds for HUD Transactions.

Wells Wholesale told clients that for site (detached) condominiums with FHA financing they will not require project approval. However, the Condominium Rider must be executed and included in the loan file when submitting for funding. Each of the following requirements must also be met: Site condos must be processed as a 203(b), ADP code 731 or 734, FHA Connection requires a Condominium ID, Appraisal must be completed on the Residential Appraisal Report (Fannie Mae 1004/Freddie Mac 70), and the insurance coverage must meet the standard FHA policy.

Without a program, it is easy to lose track of all the acronyms flying around the mortgage business these days. HAFA: Home Affordable Foreclosure Alternatives. The Treasury released details of the HAFA program to servicers. It was originally announced in May, and this refinement includes the general terms and conditions, evaluation process, documentation, and reporting requirements. The program will be effective April 2010 and servicers already participating in HAMP will be required to follow the Treasury’s guidance. The program standardizes eligibility for short sales, available to borrowers who meet HAMP eligibility requirements but do not qualify for or complete for a Trial Period Plan. “Upon the successful closure of a short sale or deed-in-lieu through the program, incentives of $1,500 in relocation assistance to the borrower, $1,000 in expense reimbursement to the servicer, and up to $1,000 in investor reimbursement for subordinate lien releases will be provided.” And servicers have some leeway to create their own policies.

Today we had the weekly Jobless Claims number. Tomorrow we have the unemployment data. They are two different measures, somewhat correlated but compiled by different organizations and which don’t look at exactly the same data. (By the way, analysts are always pointing out the problems between the two.) If I file a claim for unemployment benefits for the first time, I show up on the weekly Jobless Claims number. And I will also show up on the unemployment rate. I can be out of work for months, showing up as unemployed, and collecting unemployment, but I am not a “new” claim. That is where the “continuing claims” number comes into play. People who file claims, and then go back to work show up as having filed a claim but then don’t show up on the unemployment radar because they found a job.

Also, if I am looking for work, but unemployed, or just can’t work, the government measures me differently than someone who is not looking for work, and unemployed. And if I get a part time job, I am no longer unemployed, but “under employed” – a category that has been increasing. Certain Jobless Claims numbers represent claims from the survey week for nonfarm payrolls which will be released tomorrow. There are always “back month revisions” to the unemployment data, since the initial number is a sample (survey). Nonfarm Payroll (tomorrow) is put out by the Bureau of Labor Statistics whereas the weekly Jobless Claims number is put out by the Department of Labor, and is a measurement of the number of jobless claims filed by individuals seeking to receive state jobless benefits.

Although there was little volatility in the stock market yesterday, interest rates crept higher. Analysts are carefully following the spread between mortgage rates and Treasury rates: it has become historically narrow in recent weeks but now seems to be widening out, which is bad news for mortgage prices. Secondary folks get calls from agents saying, “Dude, the 10-yr is unchanged, but you made your pricing worse by .125. You have a Mercedes payment coming up?”

This morning we learned that the number of U.S. workers filing new applications for jobless insurance (see above) unexpectedly fell last week to the lowest level in more than 14 months, dropping 5,000 to 457,000 in the week ended 11/28. Jobless Claims have dropped for five consecutive weeks. The four-week moving average for new claims fell 14,250 to 481,250 last week, the lowest level since November last year, and declining for the 13th straight week. However, the number of workers still collecting benefits after an initial week of aid rose 28,000 to 5.47 million in the week ended Nov 21, after declining for 10 straight weeks. After the news we find the 10-yr up to 3.38% and mortgage prices worse between .125 and .250.

And the hits just keep on coming (and don’t blame me)…

* Phil Mickelson called Tiger’s wife to get advice on how to beat Tiger with a golf club.
* Apparently the police asked Tiger’s wife how many times she hit him. She said “I don’t know exactly, 4, 5, maybe 6 times…but put me down for a 5.”
What’s the difference between a car and a golf ball? Tiger can drive a ball 400 yards.
* Ping just offered Elin Woods an endorsement contract pushing her own set of drivers. They are said to be named Elin Woods….”Clubs you can beat Tiger with.”
* News travels fast. The Chinese are already making a movie about Tiger Woods’ crash.
They are calling it, “Scratching Swede, Lying Tiger.
* Tiger just changed his nickname but still kept it in the cat family. His new name? Cheetah.

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Stay “in the know” with the best Texas VA Lender

Here’s what’s going on today:

Today’s 4.5 FNMA bond opened up at 2.0625, and currently we are testing the second level of resistance and are up about 6 basis points (bps). Rates are REALLY REALLY good right now, and if you have a refi or purchase transaction going on, I would suggest locking in today and NOT risking “a better deal”. Based on the 200 day moving average (200 DMA), it looks like rates will most likely be going up soon. As for how much, there’s no telling- which is why I am advising all transactions to be locked and loaded now.

Best,

Tommy

CHICAGO (MarketWatch) — House shopping usually slows down in the winter, as people put their home searches on hold to trim the tree, buy presents to put under it and avoid the chilly weather.

This winter, however, might be different, thanks to the extended — and expanded — first-time home-buyer tax credit.

“We’re going to see far more interest in the fourth quarter than we generally do because of the tax credit,” said Heather Fernandez, vice president of Trulia.com, a real estate search engine. Traffic surged on the site on Nov. 5, the day Congress approved the credit extension, she said.

The new law extends the tax credit for first-time home buyers and opens it up to some existing homeowners as well: The credit is now 10% of the home price, up to $8,000 for first-time buyers and up to $6,500 for repeat buyers. Read more about the home-buyer tax credit on the Internal Revenue Service’s Web site.

All buyers must have a binding contract on a house in place on or before April 30. The sale must close on or before June 30.

To be considered a first-time home buyer, an individual must not have owned a home in the past three years. And to be eligible, existing homeowners need to have lived in the same principal residence for five consecutive years during the eight-year period that ends when the new home is purchased. The credit is only for principal residences.

Income limits have risen as well. According to the IRS, the home-buyer tax credit now phases out for individuals with modified adjusted gross incomes between $125,000 and $145,000, and between $225,000 and $245,000 for people filing joint returns.

Will credit spur more buyers?

The inclusion of move-up buyers might inspire homeowners to take action and list their house if they’ve been putting it off, said Carolyn Warren, a Seattle, Wash.-based mortgage broker and banker and author of the book “Homebuyers Beware.”

“If somebody loves their home, it’s not going to entice them to sell. If they’ve had it on the back of their minds and really would like to move up, it might push them into doing it sooner than later,” Warren said.

The credit isn’t expected to have as large of an effect on move-up buyers as it has on first-time buyers, according to the Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions. The maximum tax credit is about 4% of the average purchase price for first-time buyers, but about 2% of the average purchase price for move-up buyers.

“We estimate that the first-time home-buyer tax credit will result in a 10% increase in home sales from March through November of 2009,” said Thomas Popik, research director for Campbell Surveys, in a news release. “We’d expect the effect of the proposed tax credit for current homeowners to be about half as large — from December until the tax credit expiration in the spring of next year, it might be 5% of 3 million transactions, or about 150,000 incremental home sales. Incremental sales to first-time home buyers could be an additional 300,000, for a total of 450,000 incremental sales due to the tax credit extension.”

Tips for buyers

Interested in buying a home and claiming the home-buyer tax credit? Below are five tips:

1. Don’t procrastinate

Get searching now. Getting an early start will give you a better chance of finding the right house before the credit deadline.

“Go out and start as soon as possible. There will be people waiting until the end,” said Pat Lashinsky, chief executive of ZipRealty, a residential real-estate brokerage firm.

When first-time buyers thought the credit would expire Nov. 30, people scrambled to find properties in September and October, he said. In some cases, “there wasn’t inventory that fit people’s needs,” he said. In Phoenix, Chicago and parts of California, for example, some properties even had multiple bidders, Lashinsky said.

Before you start house hunting, get preapproved for a mortgage, said Eddie Fadel, a Miami-based mortgage banker and author of the book “Don’t Rent, Buy!” And do a realistic assessment of what you can afford.

Buyers who have to sell an existing home should price it aggressively from the beginning to drum up interest and get a buyer as soon as possible, Fernandez said.

2. Don’t count on another extension

The credit won’t be available forever, Fadel said. If you want to take advantage, be sure to make that spring deadline.

“This is a medication for the housing crisis. Once the patient — which is the housing market — cures, there will be no medication needed,” he said.

3. Mind the interest rates

Mortgage interest rates are low right now, but will likely rise next year, Warren said. Higher rates will affect your monthly mortgage payments, thus the affordability of the house you are buying.

“It’s pretty universally accepted that rates will be higher next year. What is unknown is how fast and by how much,” Warren said.

Average rates on the 30-year fixed-rate mortgage have been hovering around 5%, but when the government stops buying large amounts of mortgage-backed securities, rates could rise, she said. The Federal Reserve plans to end its purchase program in March.

4. Communicate with your lender

Throughout the process, make sure you’re communicating with your lender regularly; if there’s a piece of documentation you’re asked for, get it turned in as soon as possible, said Doug Heddings, a New York-based real estate agent with Charles Rutenberg Realty. Good communication is important in making sure the loan closes on time.

And think twice before pursuing a short sale if you want to make the credit deadline. That’s where someone sells a home for less than what he or she owes on a mortgage, with permission of the lender. The process can be lengthy and unpredictable because the homeowner’s lender has to approve any deal, and can be complicated when there is a second mortgage associated with the property, Warren said.

5. Don’t take shortcuts

Don’t forgo any of the steps you would normally take just to make the tax-credit deadline. Make sure the house is a good fit for your needs and get a home inspection, Lashinsky said. Skipping steps could cost you in the long run.

“Don’t let the tax credit get you to make a decision to buy a house that you wouldn’t otherwise want to buy,” he said. “Don’t shortcut the process to get the tax credit.”

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If you have any questions regarding the revised tax credit, feel free to call the best Houston mortgage lender for details.

First Time Homebuyer Credit general information on IRS.gov

http://www.irs.gov/newsroom/article/0,,id=204671,00.html

First Time Homebuyer Credit Questions and Answers on IRS.gov (This page includes Q&A broken out by basic questions, 2008 purchases, 2009 purchases and scenarios.) http://www.irs.gov/newsroom/article/0,,id=187935,00.html

by Victor Burek –

In a volatile session, mortgage rates ended yesterday’s session unchanged as a small rally in benchmark Treasuries helped support the MBS market.  Following weaker than expected economic data in the morning, rates rallied. However as profit taking took place later in the day, early session strength was lost and MBS prices returned to opening levels.  Overall, even though prices moved about a relatively wide range, rates remained unchanged on the day.

The Mortgage Bankers’ Association this morning released their weekly applications index. This data tracks the weekly change in the amount of mortgage applications at major lenders.   An increasing trend is positive for the economy in two ways.  First, more home purchases leads to more home construction and consumer spending as the home buyer buys items to fill the new home.  Second, higher amounts of refinancing  should also lead to higher consumer spending as homeowners refinance to lower rates and lower payments giving them more money to spend into the economy.   The report shows that purchase applications have fallen again down 4.7% following last week’s plunge of 11.7%.  The refinance activity posted a modest 1.4% increase following the prior week’s 11.3% increase as homeowners rush to lock in low mortgage rates.

Besides the mortgage application data released by the MBA, we also received a read on housing construction from the Commerce Department, Housing Starts.  This data totals the number of new homes that construction has started on an annualized basis.  More home construction leads to more construction jobs and increased spending as goods are bought to build and furnish new homes; as such, MBS generally move higher with a lower reading while the stock market likes to see increasing housing starts.     More importantly, this report  totals the number of homes where a building permit has been issued.   Recent reports have indicated a bottoming of this data, economists surveyed expected this report to continue that trend.

The report indicated that home builders are breaking ground on much fewer homes than expected.  Housing starts plunged almost 11% to a yearly pace of only 529,000.  Housing permits also came in considerably lower than expected at 552,000 after last month’s annual pace of 575,000.

The final report to hit  news wires this morning was the Consumer Price Index.  This report measures the change to the average price level of a fixed basket of goods and services purchased by consumers which represents the rate of inflation.   All recent reports have shown inflation to be of no concern today and that trend was expected to continue.   Like the PPI report we received yesterday, this data gives us two readings, overall CPI and the core CPI.  The core reading strips out food and energy prices due to their volatility.

The report indicated that consumer prices rose 0.3% in October, this  followes a 0.2% rise last month. The core rate moved higher by 0.2%, matching last month’s increase, both slightly higher than expected.   On a year over year basis, overall consumer prices are down 0.2% while the core rate shows a 1.7% increase in consumer prices, which is within the Fed’s comfort zone.

Reports from fellow mortgage professionals indicate that mortgage rates are unchanged from yesterday.   This keeps the par 30 year conventional rate mortgage in the 4.625% to 4.875% range for well qualified consumers.  To secure a par interest rate you must have a FICO credit score of 740 or higher, a loan to value at 80% and pay all closing costs including an estimated one point loan origination/discount/broker fee.  If you are seeking to access equity in your home, you should expect either higher closing costs or a higher interest rate.

Is everybody who is closing in the next 30 days locked yet?

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For today current VA, FHA, USDA, Jumbo, Home Equity, Refinance Rates, contact your Texas Refinance Lender today!

Couple of things we do differently than other lenders:

• I always re disclose GFE and TIL as soon as we get Underwriting Approval Back. At this point, we have already requested and received a preliminary HUD with exact title fees.
• We have a compliance department set in place to specifically check for an variances above the .125% tolerance.
• I let all clients know ahead of time that we are going to re disclose at this specific time so there are no surprises.

You will find a lot of mortgage companies/lender/banks (I REALLY wish I could name some) that pop up with 11th hour delays.

There’s 2 reasons I do what I do.

A. To make the client happy
B. To NOT to be the person that makes “the phone call” telling everyone we will have to wait another week before closing

With the new 2009 RESPA rules (which SUCK by the way) coming out, our compliance department has also been working tirelessly to launch a process that makes it easier for us, the Realtor, and most importantly, YOU, the client. With changes come confusion, and with confusion comes delays- and we ALL know delays cost MONEY!

It’s time you work with a Houston Mortgage Lender that knows what he’s doing so that we can keep that money in YOUR pocket!

The MRB instructed its staff to exercise such restraint in considering an action against Federal Housing Administration (FHA)-approved lenders that have demonstrated that they are making a good-faith effort to comply with RESPA’s new requirements. The new requirements take full effect beginning Jan. 1, 2010.

HUD is asking other federal and relevant state enforcement agencies to exercise the same 120-day restraint in enforcement for non-FHA originators and other settlement service providers that demonstrate the good-faith effort to implement RESPA’s new rules.

In determining whether a mortgagee has made a good-faith effort, MRB staff will consider whether the mortgagee has relied on the new RESPA rule and other written guidance issued by HUD, and the extent to which the mortgagee has made sufficient investment and commitment in technology, training and quality control designed to comply with the new rule.

“We will work with those who are making an honest effort to work with us as we implement these important new consumer protections,” says HUD Secretary Shaun Donovan. “While we will not delay implementation of RESPA’s new requirements, we are sensitive to the concerns of the industry as it integrates these new rules into their day-to-day business practices.”

In October, several trade groups wrote to HUD Secretary Shaun Donovan and FHA Commissioner David Stevens urging HUD to provide a reasonable implementation period before compliance becomes mandatory.

“Despite the best motivations of HUD…we are headed for a mortgage market train wreck on the tracks of RESPA compliance,” wrote the groups, which included the Mortgage Bankers Association and the American Bankers Association.

SOURCE: Department of Housing and Urban Development and mortgageorb.com

If you are looking for a great Mortgage Lender in Texas feel free to contact us today!

Without federal help, default rate set to soar

By Steve Bergsman, Friday, November 6, 2009.

Inman News

Senate Majority Leader Harry Reid (D-NV) and Chairman of the Senate Finance Committee Max Baucus (D-MT), engineered the deal to include move-up buyers in the homebuyer tax credit.

A deal struck among key senators last night to extend the homebuyer tax credit will broaden the benefit to include existing homeowners who are buying a new home as well as first-time homebuyers.

Tax credit for move-up buyers will be less than for first-time buyers, but still significant. They will qualify for a credit of up to $6,500 and must have owned their current homes at least five years. Under the current program and the new one for 2010, first-time buyers qualify for up to $8,000 and cannot have owned a home for the past three years.

Income limits would rise under the new proposal. Individuals would have to make less than $125,000 a year and couples $225,000 per year to qualify. Under the current program, limits are $75,000 for individuals and $150,000 for couples. Move-up buyers will be subject to the same income limits as first-time buyers.

For a consice summary of the current tax credit, visit http://www.federalhousingtaxcredit.com/2009/faq.php or contact your current FHA, VA, USDA, Jumbo Lender in Texas.