Expected Jobs

Today is a great day to lock in your interest rates if your close of escrow is within a week or so. The expected jobs number came is better than expected and that is causing the bulls to run on stocks. Investors usually pull their funds from mortgage back securities and dump them into stocks when we see this kind of performance. This will weigh on Mortgage Back Securities and cause fixed rates to increase. We are withing levels of resistance and support so they may stabilize in the next few days. Feel free to call me today with an update on rates and turn times.

May your transactions be smooth and your pipelines plenty full.

Adam

I have been following this update from the California based "Think Big Work Small" for several months now and they have some really great information for Reators, Loan Officers, and Business Owners. Today's update talks about a program that is available for down payment assistance. FHL banks are matching down payments tri fold for first time home buyers that qualify. Please take a minute to view. You can subscribe for free and get updated information every morning.


http://www.thinkbigworksmall.com/mypage/player/tbws/24324/1551131

Bonds Are Running With The Bulls

Good morning,

Consumer confidence was worse than expected this morning and that will have a moderate influence on fixed interest rates. I checked the bond market this morning at 7am and we were up well above the 200 day and and 50 day moving average. By 9 am, we were up 40 basis points. This is a sigh of relief as we were heading in the wrong direction late last week. Let's keep our fingers crossed in hopes that they continue on their bullish run. Keep posted for today's interest rates. I will be waiting for the price change for the better before posting.

Adam

Interest Rates Stabilizing

Mortgage Back Securities are stabilizing this morning from last weeks major sell off. This is a good thing for fixed interest rates. We only have 38 days until the Fed stops it's purchase of these securities as the stimulus money fizzles out. The Fed is sure that investors will find these appetizing as they phase out of the program. Our industry as a whole are skeptical as there is not a high demand for these securities, investors still have a bad taste in their mouth from the sub prime fall out. If no one steps in to purchase these mortgage back securities, interest rates will rise. Only time will tell, locking in an interest rate before March 31st may be in your clients best interest.

May your transactions be smooth and your pipelines plenty full!

Adam

First Time Home Buyer Tax Credit

The "First Time Home Buyer" tax credit will be coming to an end in 70 days. Now is a great time to get those offers excepted and clients off of the fence! Lender turn times have increased due to the new 2010 GFE and HERA regulations. The lenders are still adjusting so make sure your borrowers start their financing early in the game.

Adam

Another Day In The Red

Mortgage Back Securities take another major hit today. We had a price change for the worse before 9am. I hope that you advised your clients to lock in their interest rates yesterday when I suggested.

We are now below the 200 day moving average which is our last level of support. When this happens, we can see rates go on a tear for the worse. We will not know how long rates will get worse since we don't have a floor any more. Last time this happened, rates didn't recover for four weeks. Put your seat belts on and keep checking in.

Adam

Price Change For The Worse 11:22am

Lenders just posted a price change for the worse. We are now down 38 basis points and falling below the 50 day level of support. We are now going to be testing the last level of support at the 200 day moving average.

Adam

Mortgage Bonds Tank

Mortgage Back Securities(MBS) are falling this afternoon. This is bad news for fixed interest rates. When MBS are down, fixed interest rates go up. They are reacting to the financial news in Greece. I would advise clients with a close of escrow in the next week or so to lock!

Enhance Your MLS Listing Photos!

Picnik has a free photo editing software that can help you enhance your listing photos. You can sharpen, enrich, crop, and much more on this free website. I notice when assisting my borrowers with the MLS, they are always attracted to the properties with the most photos and best clarity. Increase your inquiries today with picnik and get that property SOLD! You can find a direct link below!

www.picnik.com/app#/home/welcome

Mortgage Rates have fallen slightly since the Holiday weekend. 4.75% has returned on the 30 year fixed program! Rates as low as 3.75% on the 5 year program. I am available today for any questions or pre-quals.

Adam

Today's Auction Results Will Weigh On Fixed Rates

16 Billion dollars in 30-yr Bonds went up for auction today at 1:00pm Eastern. Results weren't good. Mortgage Backed Securities are starting to fall. We are hoping to stay above the level of support at the 200 day moving average. I would advise our clients to the possibility of locking, depending on the close of escrow day. May take several days to recover if we fall below the level of support.

5 Steps To Better Credit

At Peak Credit Solutions, Inc., one of our main goals is to help educate consumers on credit practices and how best to manage their credit portfolio. Here are some common mistakes that we see all too often. If the average consumer can follow these basic points, their credit score will be healthy.

View your credit report on a regular basis. Peak Credit Solutions always recommends that our clients obtain a copy of their credit report every 6 months. This allows you to monitor your credit and make sure there is not any inaccurate information on your report. Also, with identity theft at an all time high, it is wise to make sure someone has not high jacked your personal information.
Set up all your payments on auto-pay from your bank account so that you make all your payments on time. 35% of how you are scored through FICO is based on your payment history and if you pay on time. Make sure to pay at least the minimum payments and have the payment sent with a couple day buffer before the due date.
Do not carry a balance of more than 30% of your available revolving credit, (credit cards) and do not carry more than 30% on any one card. This point is a major piece of how you are scored every month. The graph in this email demonstrates a client who paid down several high balances and the 60 point increase he received for doing so.
· Use it or lose it! Today credit card companies are closing accounts if you are not a profitable client to them. In other words, if you pay your full amount each month, you are not making any money for them and they may close the account. So, in this environment, it may be smart to use each of your cards periodically and carry a small balance. Never close accounts if possible! It's OK to leave an account open and "hide" the credit card if you don't want to use it. When you close accounts, you decrease the amount of credit available to you and this negatively impacts the debt utilization ratio. You also could take away some excellent credit history if the account has been open for many years. Lenders and FICO like to see long credit history.

Never close accounts if possible! It's OK to leave an account open and "hide" the credit card if you don't want to use it. When you close accounts, you decrease the amount of credit available to you and this negatively impacts the debt utilization ratio. You also could take away some excellent credit history if the account has been open for many years. Lenders and FICO like to see a long credit history.
Feel free to contact Peak Credit Solutions for all your credit scoring and building needs. We are more than happy to review your credit report and advise on how we can improve your score in the shortest period of time. Credit reviews are always

Thank you,

Information provided by Sean Clemens
sclemens@peakcreditsolutions.com

Mortgage Back Securities take a hit this morning as they are at the sessions low. We may see a price change for the worse depending on the performance of stocks this afternoon. Current interest rates are listed below.

CONFORMING 30 Year Fixed
4.75%

5/1 ARM
3.75%


HIGH BALANCE up to 2 Million
30 Year Fixed
5.125% - 5.50%

5/1 ARM
4.00%

The Diamond in the Rough

In today's market, the borrowers ability to purchase a home has narrowed significantly. With lenders tightening guidelines over the past three years, it has been more difficult to qualify borrowers with less than average credit. Most Real Estate Agents and Lenders will not take the time to assist them and re-build their credit making their dream of home ownership possible.

Taking some extra time to help those in need can produce multiple transactions each year. Not only that but you may build a relationship for life with that person.

Now, you don't have to become a credit repair specialist. There are many companies out there at specialize in these repairs.

I work closely with Peak Credit Solutions and they have a great track record with increasing FICO scores and saving clients thousands in closing costs and interest over the life of a loan.

Here is a general example of how your credit score can influence a potential loan.

General fees on 80% loan to value and $417,000 financed.

FICO SCORE 640 - 659 = 2.25% or $9,382 in fees
FICO SCORE 700 - 719 = 0.75% or $3,127 in fees
FICO SCORE >740 = 0% or NO fees

Close more deals and get more referrals utilizing outside services. Feel free to contact me today if you have any questions about Peak Credit Solutions and their products.

May your transactions be smooth and your pipelines plenty full.

Adam

Housing and Economic Recovery Act(H.E.R.A.)

The recent establishment of H.E.R.A included amendments to the traditional Truth-in-Lending disclosure (TIL), which notifies borrowers of the terms and fees included in their mortgage loan. These new rules are known as the Mortgage Disclosure Improvement Act of 2008 (MDIA). Immediate changes you need to know about MDIA:


• MDIA implements a 3-7-3 rule that creates new timing and waiting requirements with regard to the issuing of Truth-in-Lending disclosures and when closing can occur.


a). 3-days: Upon the taking or receipt of a loan application, a lender must provide an initial Truth In Lending(TIL) to the borrower(s) within 3 business days of the application (no change to current requirement).

b). 7-days: This waiting period requires a lender to wait until the 7th business day following the delivery or mailing of the initial TIL to the borrower(s) before a creditor may close any loan.

c). 3-days: Impose an additional 3 day waiting period before a loan may close in any instance in which the Truth In Lending(TIL) is outside of regulatory tolerances (ie: for regular or fixed rate loans more than .125% and for irregular loans more than .25%).



Knowing the new rules included in MDIA are important in establishing realistic timelines with your clients as to how fast a real estate transaction can occur.

Mortgage Bonds Rally

I hope that your morning is off to a great start! It's a great day for Mortgage Back Securities. Bonds rally while the stock market is weak across the board on fears of debt problems in Europe, higher Initial Claims and worries of a prolonged economic recovery. We are already seeing Lenders posting rate changes for the better.

Today's rates are reflected below!

30 Year Fixed 4.750%
15 Year Fixed 4.375%
7 Year ARM 4.250%
5 Year ARM 3.375%


Give me a call today if you have any clients with questions or in need of pre-qualification.

Don't forget about our NO INCOME VERIFICATION program.

Adam

Welcome to The Mortgage Loaner!

Welcome to The Mortgage Loaner! Your one stop for updates on Mortgage Interest Rates and other important information for Real Estate Agents and other professionals alike.

I wanted to inform you of some changes coming soon from the Fed that may effect interest rates. Now is a good time to contact those borrowers that are on the fence about buying.

The Fed is currently purchasing mortgage back securities on a weekly basis. This has created artificially low interest rates to help spur this depressed housing market. The Fed announced that they are going to discontinue this program at the end of the 1st quarter this year. Rates will most likely return to what they were before the program existed (6.5% to 7%).

At the speed the government is printing money these days (The big bail out) we will be fighting inflation in the years to come. As we have seen in the past, the fed raises interest rates to fight off inflation.

This is simple courtesy that we provide as not everyone keeps a pulse on interest rates and we do not want anyone to miss this opportunity.

Our clients are taking advantage of these low rates and getting off of the fence, when it come to holding off on purchasing a home. We also have borrowers taking cash out to leverage an investment property.

Rates below are from today's rate sheet for first time home buyers(owner occupied).

30 Year Fixed 4.875%
15 Year Fixed 4.500%
7 Year ARM 4.375%
5 Year ARM 4.125%

We always provide a good faith estimate so that you know what kind of options to rate and fee are available. May your transactions be smooth and pipelines plenty full.


Adam