Check out the information below. What is your opinion, concerning failed banks? I welcome your comments.
Stephen L. Smith, Manager
A.C.L. Mortgage Services, L.L.C.
steve@acl-mortgage.com
Failed Bank List
Stephen L. Smith, President
Write us today!!!
Mortgage rates continued to tick higher yesterday as benchmark Treasury yields rose and prices of mortgage backed securities fell for the sixth consecutive session. Most of the losses occurred early in the day, so price weakness was already accounted for on lender rate sheets when theywere issued.
The only market moving event that took place yesterday was the auction of $44 billion 2 year Treasury notes. Demand was slightly above the yearly average but much lower than the previous 3 auctions. Demand from foreign investors, known as the indirect bid, was much less than normal. For a recap of the results, check out AQ’s commentary.
Today at 1pm, the Treasury will auction $42 billion 5 year notes. If demand is strong, we could see an improvement in mortgage rates. Matt and AQ will cover the auction results on the MBS Commentary once it is complete.
The S&P/Case Shiller Home Price Index was released this morning. This report tracks the monthly changes in the value of residential real estate in 20 metropolitan regions across the United States. Since our economy is driven by consumer spending, falling or rising home equity (values) affects the psyche of consumers. During periods of declining home values, consumers are much more likely to save money and pay off debt as they watch the value of their largest investment depreciate. Rising home values encourage new construction, remodeling, etc… which increases consumer spending. Many economists believe that until home prices start to move higher, our economy will have a difficult time growing. This makes tracking home sales data much more important now than in previous years.
The final report of the day was a survey on the mindset of consumers...Consumer Confidence. An optimistic consumer is much more likely to spend money while a pessimistic consumer is more likely to save. Economists surveyed for this month’s report expected a read of 52.5. The report came in at 52.9; consumers were more optimistic than anticipated in December. Yay! The market had no immediate reaction to the news.
Reports from fellow mortgage professionals indicate mortgage rates to be similar to yesterday’s. The par 30 year conventional rate mortgage remains in the 5.00% to 5.25% 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% or less and pay all closing costs including an estimated one point loan origination/discount/broker fee. If you are seeking a 15 year term, you should expect a par rate of 4.375% to 4.50% with similar costs.
There are currently two thoughts regarding the recent move higher with mortgage rates. One side is saying that this is the start of higher mortgage rates which will continue into next year as the economy continues to improve. The other side of the argument is the recent move higher isn’t an indication of a trend for rates next year but rather due to very low volume of activity due to market participants being on vacation over the last two weeks of the year. What is your opinion? Do you feel the move higher in rates will continue into next year and the days of rates under 5% are over? Or do you feel once the first team traders come back to work from their Christmas vacations that much of the losses we have suffered will be recaptured and rates will once again move below 5.00%?
Rate Lock Advisory - Thursday Dec. 3rd
Stephen L. Smith, President of A.C.L. Mortgage Services, L.L.C.
Email address: steve@acl-mortgage.com
Failed Bank List - Should we be discouraged? I say, No!!!"
Check out the information below. What do you think? Let me know. I welcome your comments!!! THANKS!!!
How bad is it....REALLY? So far, we have 70 banks that have failed since 2001. During the Great Depression, there were hundreds...maybe even thousands by today's standards. Folks, we need to remain positive and hopeful!!! We can work through this!!! We have the best economic system in the world, and we MUST restore our faith in it!!!
I believe that prudent, hard-working folks will be able to get a mortgage as their circumstances will allow. The days of "no money down, super low rates" are over!!! If you cannot qualify for one of three types of government-insured loans (FHA, USDA RD, and VA), you will need money down. With the current takeover of Fannie and Freddie, low downpayments and lower credit scores will have a tremendous bearing on the terms and conditions of your mortgage loan. Some serious changes are coming!!! Check out the article below. What do you think? Let me know. I welcome your comments!!! THANKS!!! Stephen L. Smith, President of A.C.L. Mortgage Services, L.L.C. Email address: steve@acl-mortgage.com "What buyers can do to ensure successful mortgage application September 17, 2008 By Ilyce Glink Inman News When it comes to getting a home loan, today's game has dramatically changed. A year or two ago, it would have been easy as pie to get any kind of home loan offered -- or be creative and basically invent your own terms. Want an interest-only loan? No problem. Pay-option adjustable-rate mortgage, where you choose how much you pay? Done deal. Didn't want to provide any documentation? That works. You could sign up for a super-low teaser rate or choose a loan where you'd make no payments for the first six months to a year just for asking. While mortgage lenders still pulled your credit history and credit score, no one said "no." So, even if you had a credit score in the low 500s, you could still get a loan. You might pay a higher interest rate and maybe even a couple of points (a point is 1 percent of the loan amount) in fees, but someone would say "Yes, sign here please." Today, home buyers and homeowners are having a lot of trouble getting a home loan. Lenders are saying "no" even when buyers and owners have good credit scores and credit histories. What has changed is how much risk some mortgage investors are willing to accept in the face of mounting real estate loan losses in the billions of dollars. Unfortunately, you can't kickstart the real estate market until the panic in the credit markets has abated. What can you do to increase the likelihood you'll get the home loan you need? Start with getting your documentation together. Mortgage lenders aren't in the tree-saving business. They like paper and use a lot of it. To apply successfully for a home loan, start by gathering together the following information: all W-2 forms for each person who will be a co-borrower on the loan. You'll also want to provide the contact information for the human resources manager or your direct bosses, so the mortgage lender can verify your income. copies of completed federal tax forms for the last two or three years, including any schedules or attachments. These will be required primarily of self-employed individuals or those who are claiming a history of rental income. Either way, you won't need your state returns. copies of one month's worth of pay stubs. copies of the last two or three bank statements for every bank account, IRA, 401(k), Keogh, other retirement account or brokerage account the co-borrowers own. Bring a copy of your most recent statement for any other assets you have. a copy of the back and front of your canceled earnest money check plus the escrow deposit receipt. If you don't get your canceled checks back, then access the electronic version on your account and print it out. a copy of the fully executed sales contract and all riders. You'll need both brokers' names, addresses and phone numbers (if you're using a broker or agent), and the same information for both your attorney and the sellers' attorney (if you're living in a state where real estate attorneys are used to close residential sales). If you're selling a residence at the same time you're buying it, you'll need a copy of the listing agreement and, if the home is under contract, a copy of the fully executed sales contract. (Be prepared to provide the contact information for the brokers and attorneys for your sale as well, if you're far enough down the line for that.) When the property closes, you may be asked to provide a copy of the actual disposition of funds from the escrow account. If gift or grant funds are involved, the giver (or grantor) must provide proof that he or she had that money to give, such as a copy of the giver's recent bank statement. If you're receiving a grant, the grantor should provide you with a letter outlining the grant and stating that the funds do not need to be repaid. Be prepared to show the paper trail for the money, including a deposit slip. The giver will have to fill out a gift letter affidavit, available from the loan officer, indicating that the funds were a gift and the gift giver does not expect repayment. In short, you'll need a copy of the check, deposit receipt and a bank statement verifying the deposit. copies of all divorce decrees and property settlement agreements. copies of a survey or title insurance commitment for the home you're buying, if available when you apply for the mortgage, or when it becomes available during the purchase process. In most states, the preliminary title report takes the place of a survey, lenders say. But a survey may be required in states like New Mexico. If you're self-employed, prepare complete copies of the last two years' federal business tax returns and a year-to-date profit-and-loss statement and balance sheet with the original signatures. Some lenders will agree to use a letter from your CPA stating that you are self-employed or a copy of your business license, but have your tax returns and profit-and-loss handy. a list of your addresses in the last two years. If you've made any large deposits ("large" means anything larger than your monthly salary) into your bank accounts in the last three months, be prepared to provide an explanation with proof as to where the funds came from. If you've opened a new bank account in the last six months, write a letter explaining where the money came from to open this new account. addresses and account numbers for every form of credit you have. Or alternatively, many lenders will use your credit history. Be sure to pull a copy from each of the credit reporting bureaus before you apply at AnnualCreditReport.com. Pay for a copy of your credit score while you're there (approximately $7) so you know what you're facing. documentation to verify additional information, such as Social Security, child support and alimony. If you've had a previous bankruptcy or foreclosure, make sure you have a complete copy of the proceedings, including all schedules, and a letter explaining the circumstances for the bankruptcy or foreclosure and the discharge certificate. For most loans these days, you'll need a photocopy of a picture ID (usually your driver's license or U.S. passport) and in some cases a copy of your Social Security card. Also, for VA loans you will need to bring proof of enlistment (your DD214) and Certificate of Eligibility for a VA loan (details for this are available at www.va.gov.) If you have any judgments against you that have been paid in full, bring a copy of the recorded satisfaction of judgment. But if you have a judgment against you or are involved in litigation, you will need copies of documents describing any lawsuits and may expect to have to settle and pay off any judgments prior to closing on the loan. If you are buying a new primary residence and turning your existing home into a rental property, you'll need to show a signed lease agreement as well as proof of receiving the security deposit from the new renter. You should also be prepared to prove that you have at least 30 percent equity in the existing property. This seems like an incredibly long and detailed list, and your mortgage lender may not ask for everything on it or may ask for other documentation. But if you want your home loan application process to go smoothly, it pays to get your documentation in order, before you ever apply for a single loan." To get even more valuable advice from Ilyce, visit her Personal Finance and Real Estate Center. *** What's your opinion? Leave your comments below or send a letter to the editor. To contact the writer, click the byline at the top of the story. Copyright 2008 Ilyce R. Glink
I believe that prudent, hard-working folks will be able to get a mortgage as their circumstances will allow. The days of "no money down, super low rates" are over!!! If you cannot qualify for one of three types of government-insured loans (FHA, USDA RD, and VA), you will need money down. With the current takeover of Fannie and Freddie, low downpayments and lower credit scores will have a tremendous bearing on the terms and conditions of your mortgage loan. Some serious changes are coming!!!
Check out the article below. What do you think? Let me know. I welcome your comments!!! THANKS!!!
"What buyers can do to ensure successful mortgage application
September 17, 2008
By Ilyce Glink Inman News
When it comes to getting a home loan, today's game has dramatically changed.
A year or two ago, it would have been easy as pie to get any kind of home loan offered -- or be creative and basically invent your own terms.
Want an interest-only loan? No problem. Pay-option adjustable-rate mortgage, where you choose how much you pay? Done deal. Didn't want to provide any documentation? That works. You could sign up for a super-low teaser rate or choose a loan where you'd make no payments for the first six months to a year just for asking.
While mortgage lenders still pulled your credit history and credit score, no one said "no." So, even if you had a credit score in the low 500s, you could still get a loan. You might pay a higher interest rate and maybe even a couple of points (a point is 1 percent of the loan amount) in fees, but someone would say "Yes, sign here please."
Today, home buyers and homeowners are having a lot of trouble getting a home loan. Lenders are saying "no" even when buyers and owners have good credit scores and credit histories.
What has changed is how much risk some mortgage investors are willing to accept in the face of mounting real estate loan losses in the billions of dollars. Unfortunately, you can't kickstart the real estate market until the panic in the credit markets has abated.
What can you do to increase the likelihood you'll get the home loan you need? Start with getting your documentation together.
Mortgage lenders aren't in the tree-saving business. They like paper and use a lot of it. To apply successfully for a home loan, start by gathering together the following information:
This seems like an incredibly long and detailed list, and your mortgage lender may not ask for everything on it or may ask for other documentation. But if you want your home loan application process to go smoothly, it pays to get your documentation in order, before you ever apply for a single loan."
To get even more valuable advice from Ilyce, visit her Personal Finance and Real Estate Center.
***
What's your opinion? Leave your comments below or send a letter to the editor. To contact the writer, click the byline at the top of the story.