Rates:
Well another week and some more volatility, this time not out of the federal reserve, but mainly out of general economic news, which is what rates should be being based on.
This week we have pretty much ended right where we left off last week, so stability is good.
Wednesday durable goods report caused quite a stir and we saw rates increase, but over the last two days it looks like we will gain this back.
Basically rates ended flat for the week.
Now hang on to next week, we have tons of economic reports, to include:
Pending home sales
GDP
ISM
ADP payroll
Fed Announcements on Wednesday.
Then the big boy will be Friday and the jobs report, over the last few months, this has been a pretty huge report, causing lots of volatility.
Our overall opinion of locking is still holding true.
Well Testing:
Comes to my attention, after a brief survey of agents, that there is some confusion regarding wells on properties and getting them tested.
Typically I see Realtors test well as part of the initial inspection process, which is good.
Here are some rules to abide by
FHA will require a well to be test if the home has been vacant for longer than 30 days. But many FHA underwriter will require a well to be tested no matter what.
VA will require all wells to be tested, no matter what.
Here is the government speak:
Water quality for an individual water supply must meet the requirements of the health authority having jurisdiction. If the local authority does not have specific requirements, the maximum contaminant levels established by the Environmental Protection Agency (EPA) will apply.
If the health authority is unable to perform the water quality analysis in a timely manner, a commercial testing laboratory or a licensed sanitary engineer acceptable to the health authority may take and test the water sample.
Only a licensed lab technician can collect the sample, this means a Realtor can NOT collect the sample. I know in the past Realtors have collected the samples and have taken them to the Lab.
I guess the Government has updated these guidelines because Realtors were not properly taking samples, or were fudging and just taking samples out of store bought water.
Haven’t heard of this happening around here, but in speaking with a VA underwriter, this happens is the bigger states.
So rule of thumb, if you are doing a VA, FHA or RD transaction, get the well tested. And if you are not doing one of these transaction, get the well tested. And DO NOT collect it yourself, have the lab do it.
And yes the Lab will, for a fee, I just had it done.
CFBP
Well the Consumer Finance Protection Bureau is out in full force, striking audits left and right.
If you haven’t head, they put a mortgage firm of Castle and Cook’s head on the chopping block, and will probably shut them down for violations regarding loan officer compensation.
The just of it is, the mortgage firm was paying their loan officer bonuses based on the loan officer charging the borrower higher interest rates. Which if proven, is a violation of the compensation rule.
Here is link to the article: http://www.consumerfinance.gov/pressreleases/cfpb-takes-action-against-castle-cooke-for-paying-employees-to-steer-consumers-into-expensive-mortgages/