Rates:

Not really much news this week to make a huge push in rates this week, so rates pretty much followed the markets, which mean rates ticked up a little.

We are still seeing rates in the High 4's, but I feel that next week we will see conventional rates tick into the 5's, with Govies holding in the high 4's.

BUT....

The major news this week is "POTENTIAL" the potential of the Fed raising rates by the end of the year to stave off inflation.  Most of the European Countries have raised their national rates, which eventually will force the Fed to raise our rates, if not the other countries will will artificial force our rates up.

Lender Compensation:

Well it finally happened, the Federal Reserve applied Socialism to the Lending Community and dictated to all Lenders, Banks, Brokers how they get paid.

1st it was the Appraisers

Now it is the Lenders

And next it will be the Real Estate Agents, mark my words, the Fed has now had enough success in changing income laws that I feel they will try to take on the RE world.

The new law is way too complex to describe it on a Blog, so I am having a Lunch and Learn on 4/21 to go over it  and how it will affect you.  Email me to sign up!

IHA Tax Credit:

Each time I see a Realtor I ask them if they know about the IHA Tax Credit, that is still in affect.  And most of them say NO, although I have blogged in the past about it.

Sooo, how would you like to give your clients up to $2,000 in tax credit for purchasing a new home???

It is amazing how many people out there don't know about it, so I have a flyer to the RIGHT that you can download.  And if you want I can put your logo and info on the flyer for marketing!!!!

Government Shut Down:

Well as of today, it looks like we will have a government shutdown,  although I don't for see it lasting too long, it WILL Affect files.

Rural Development Loans:  All RD loans have to be reviewed by a RD underwriter, so a shut down will prevent any RD UW from going into work.

FHA Loans:  Getting FHA case numbers will be hampered, along with getting CAIVERS numbers.

VA Loans:  Ordering VA case numbers will be hampered, along with getting CAIVERS.  But mainly for each VA loan we have to get a 26-8937 form from the VA, so that won't happen, and if we have to get a Certificate of Eligilibility that won't happen either.

Experian:

I have told many clients and people that the Credit Scores you get online are not necessarily accurate.  Most of the time they are way off.  And the reason for this is a credit report which is pulled by a lending institution is a harder and more indepth credit report.

So when client tell you they have seen a credit report, ask them where, and caution them.

BUT...now new info has come out.

It seems that when you sign up for one of those "FreeCreditReport.com" cons, Experian was basically making out the Credit Score and was not using the National FICO standard.

Link to the lawsuit article HERE.

Sales Tip:

Did you hear that McDonalds is going to hire 50,000 people next week, and most of those people will make more than $9 per hour.

So when is the last time you got a Big Mac, and when the cashier handed you the receipt you handed that person a business card????

Every time I get food I hand out a business card, I hand out approximately 2000 business cards about every 3 months.  

And some of the time they tell me, oh I can't possible afford a home, and I tell them "Are you sure?"

I saw a business card from a RE agent, and their picture on there was from the 80's, so I asked him how many business cards does he give out, and he told me he was on his original box, and that was obvious from the picture on the card.

So my challenge to you is, hand out 20 business cards to complete strangers this week!

Oh and that McD employee making $9/hour x 36 hours per week x 52 weeks / 12 months = $1404

$1404 x .41% (DTI) = $575 mortgage payment which equals $80,000 home, and last check on MLS by a RE agent, there were 788 homes, active, between $50,000 and $80,000, SFR