Mortgage Market Update

Hello Everyone, I’ve been slacking a little bit on my blog posts as of late due to being busy between work and school.  Over the past several weeks we have seen rates go up and now come back down as the DOW has continued to be on the unstable side (good for mortgage rates).  Also, as events unfold in the Middle East with Iran and assuming gas prices continue to increase, the 10 year bond should stay low and as a consequence we should see mortgage rates staying pretty low as well unless the DOW recovers.

Last week we saw HUD increase MI for FHA loans which hurt a little(actually a lot); however, NAMB (National Association of Mortgage Brokers) was able to put a halt to other changes in regards to tightening of some FHA guidelines, I believe until August. 

Listed below are the FHA average rates from this past week (note that rates posted may contain discount points.  The FHA product line which does contain MI)

 

Product	Rate	Change	Last Week
30 Yr Fixed	3.9%	Down From	4.01%
15 Yr Fixed	3.12%	Down From	3.23%
5/1 ARM	2.75%	Down From	2.87%

Samuel Morales

Residential and Commercial Loan Officer

Office: (210) 257-0642

Mobile: (210) 286-7267

Fax: (210) 257-0510

www.yourloanofficer4life.com

www.streamlinefha.org

www.streamlinefha.net

www.texasjumbomortgage.org   

NMLS: 295626   

Market Update from Samuel and YourLoanOfficer4Life.com

Market Update from Samuel and YourLoanOfficer4Life.com

Where do I stand in regards to current mortgage rates!!!!

Information from Bankrate.com.

Product	This Week Rate	Trend	Last Week	Sam’s Rate/w 0% Origination This Week (+.125 to .25 APR)
30 Year FHA Fixed	3.9%	Up From	3.84%	3.81%
15 Year FHA Fixed	3.17%	Up From	3.16%	3.00%
5/1 FHA ARM	2.86%	Up From	3.84%	2.87%

 My rates are both lower and they include 0% origination with lender fees other than underwriting being paid by investor.  Hope this helps.

The New Mortgage Settlement from Your Favorite Loan Officer Perspective (i.e.-The Frontline)

Feb 10, 2012 – So, there is a new $26 Billion Dollar mortgage settlement in place.  The “New Mortgage Deal” (as CNN calls it) has lots of support behind it as 49 of the 50 state Attorney Generals have signed it.  What’s my take on it you may ask?  If I were to rank its positive impact on a scale of 1 to 10 (We can call this “The Sammy Scale”) I would put it in a range of about 3-5 depending on the perspective being looked at.  There is not doubt about it, this will help “some people” that are in trouble; however, that being said the settlement is fundamentally flawed; as Oklahoma Attorney General Scott Pruitt puts it.

According to the way the settlement is written up it would offer principle reductions to certain homeowners that are upside down.  This means that there would be debt forgiven and the principle balance on a participating mortgage would be reduced.  So, what’s the issue?  The issue is that homeowners that are paying their mortgages on time will not qualify!!!!  Let me explain why this is so bad.

·         Because of the settlement homeowners will be encouraged to default on their mortgages.

·         Many of the homeowners that are currently defaulting on the mortgages don’t have the income they once had so even if they were to have a principle reduction they still would not be able to make their mortgage payments.

The above being stated, I still agree with the settlement; however, in order to really have an impact they need to repeal the “Ultimate Evil Act of Satin and the New World Order” in conjunction with this settlement.  By the way, you may know the “Ultimate Evil Act of Satin and the New World Order” as the Frank Dodd Act.

In short, the settlement makes some sense but in the end only good policy and time are going to make the difference.  Let me know what you think.

 Mortgage Rates Based on Bankrate.com FHA

	Rate	+/-	Last Week
30 Year Mortgage Fixed	3.89%	Up	3.85%
15 Year Mortgage Fixed	3.21%	Up	3.18%
5/1 Fixed Rate Arm	2.88%	Up	2.85%

Samuel Morales

Residential and Commercial Loan Officer
Office: (210) 257-0642
Mobile: (210) 286-7267
Fax: (210) 257-0510
www.yourloanofficer4life.com
www.streamlinefha.org
www.streamlinefha.net
www.texasjumbomortgage.org   
http://approvalwarehouse.com/u/?id=SamuelM
NMLS: 295626   
Recommended credit Repair Company: Sky Blue Credit Repair

Mortgage Rates and News for This Week -

January 20th, 2012 2:24 PM

This week we saw a slight rise in mortgage rates from the week prior but we expect mortgage rates to stay near historic lows for the foreseeable future unless some major event causes hyper-inflation.
On a side note the bigger banks continue to have problems with thier mortgage products. This week Bank of America announced that it was backing out of the Cash-out refinance market.
Once again, if you are looking refinance or if you need to get a pre-qualification in order to shop for a new home please do not forget about me. Or, if you are a merchant and you want to be able to offer financing for your clients to purchase your product, I now have a product for you.
What is going on this week with mortgage rates? (See below)
Average Rate Given to Consumers This Week and Last

Product	Rate	Last Week
30 Year Fixed Mortgage	3.92% Up from	3.91%
15 Year Fixed Mortgage	3.26% Up from	3.22%
5/1 Fixed ARM	2.88% Up from	2.87%

Rates shown are sourced from Bankrate.com and may include points.

Samuel Morales
Residential and Commercial Loan Officer
Office: (210) 257-0642
Mobile: (210) 286-7267
Fax: (210) 257-0510
www.yourloanofficer4life.com
www.streamlinefha.org
www.streamlinefha.net
www.texasjumbomortgage.org
NMLS: 295626
Recommended credit Repair Company: Sky Blue Credit Repair

Market and Product Update

I have now expanded my product offering to merchant financing, I can now offer lines of credit to merchants and set them up so that their clients can receive financing to purchase their product.  Minimum loan amount $1,000.

Other news:  More and more legislators are coming to the conclusion that mortgage brokers have unjustly become the whipping boys for the current mortgage crisis.  My comment on this,

“Where were your thoughts when the Frank-Dodd Act was being enacted?  Too little, too late; the damage has been done.  It’s obvious that the financial power players were at fault and people that could have done something were either bought off or did not care.  The result is that brokers have been placed in a position where they are participating in an un-level playing field and the entities that were at fault have been rewarded”.  

The result of this injustice is still in play.

Rates are still pretty close to rock bottom.  Overnight averages on mortgage rates per Bankrate.com listed below.

OVERNIGHT AVERAGES PER BANKRATE.COM

Product	Rate	Last Week
30 Year Fixed Mtg	3.92%	3.94%
15 Year Fixed Mtg	3.25%	3.27%
5/1 ARM	2.86%	2.88%

1/9/2012

I Can Now Set Up Merchants to Supply Their Clients Financing to Purchse Thier Own Products

My New Blog Expanding My Product Offering. January 6th, 2012 4:06 PM I now have a new investor and a new product offering. For my contractors, I can now set you up to fund your rehab and improvements projects between $1,000 and $30,000. I'm very excited about this as I am now, to the best of my knowledge, one of the only Texas Loan Officers with this offering. Please feel free to contact me for more information. http://MyApprovalWarehouse.com/?id=SamuelM