Rates
Not much with rates this week, actually they were pretty flat after Russia moved a bunch of tanks into Ukraine on Friday, which saw rates go lower, then on Monday, it was over and no one really cared, so rates worsened.
Jobless claims 290K vs est. of 280K, not much of a mover.
Retail sales +0.3% vs est. of 0.2%, good news for the economy, bad for rates.
And that was pretty much it, there is some talk about the weather making a difference in the US economy, if you remember early this year, January had a polar vortex and caused all of January’s numbers to be really bad, GDP for January was actually negative. Didn’t move rates too much, but something to think about.
Bunch of economic next week, I suspect rates will be higher next week in anticipate on the following week where we have limited trading days due to the holidays.
Overall I feel rates will be flat, maybe a little worse next week, that is unless we get some foreign news.
One thing to really watch out for is Russian, and their Cat and Mouse game with their bombers and ships coming closer and closer to the US. If for some reason there is an “accident” and something gets shot down, we could see a HUGE dive in stocks and bonds rally.
Foreclosure Stats
We are starting to see an upswing in foreclosures, which have some talking heads concern about a downswing in housing.
Article here: http://www.mortgagenewsdaily.com/11122014_realtytrac_foreclosures.asp
Here are some of the reasons:
-ARM loans are starting to reset:
Typically ARM loans were 5/1, 7/1 or 10/1 ARMs, which means there were fixed for 5, 7, or 10 years. Well lots of 7 & 10 year ARMs are starting to resent. And all those people who were told about how great it was to get that 2% interest rate are now being reset to those 5’s, 6’s, interest rates.
-HELOC loans are resetting
When people got HELOC loans, they were able to pull out money for 10 years, then on that 10th year, it shuts down, and a 20 year repayment starts, or in some cases, it is a balloon payment…ouch
Although it is not anticipated on being a HUGE WAVE like 2010, we could still see a significant number coming on the market.
Web Site
I have been noticing more and more Realtor Web sites are not formatted for Mobile phones.
You need to ensure that your web site is formatted so that when people view it on their Iphone 6, it looks good and they can navigate.
Shameless plug: If you go to my web site, and shrink it down, you will notice that all the important info is moved around to fit that screen size.
It is anticipated that 90% of the people will view your web site on some sort of mobile device, whether it is a tablet or phone.
Community Wells
I have a transaction going on where as the home is being provided potable water (drinking water) via a community well.
Well as with any loan, there is massive regulations with regards to a community well.
So if you are a listing agent, I believe it is your responsibility to ensure that you have all the property documentation in your listing package.
If you are the selling agent, you want to ensure that your clients are getting good, clean water, and that if something happens to the well, who is going to pay for it.
In my current transaction no one knew anything about the well, so I am educating, which I like to do.
1st you need to know if it is a Co-op community well or a shared well.
Then you need to make sure you are getting the shared/community well agreements.
Typically they are and should be recorded, in my case, no one seems to be able to find out. This is where title will come in handy.
Now wells need to be tested also, for larger wells and co-ops, they are regulated by Idaho Department of Environmental Quality, and you can check up on their web site to find testing info: http://dww.deq.idaho.gov/IDPDWW/index.jsp
If they are a private well, say 2-3 houses, they need to be tested. MAKE SURE that no party in the transaction takes the sample, not the buyer, seller, or any realtors. This is a HUGE NO NO, and puts YOUR license and E & O insurance in jeopardy. Only a certified, trained water sampler can take the sample.
Below is the actual underwriting guidelines, so you can see what EVERY lender needs to follow:
Community Well
If the property is serviced by a community well system, Fannie/Freddie/FHA requires documentation such as the articles of incorporation or bylaws and/or Community Well agreement that will support the following:
o Service will be continuous and cannot be stopped and/or interrupted.
o The rate of the service and that it is reasonable
o Identify the our property/borrowers have ownership rights
o The maintenance and expense of the well are properly managed
o That the well has been tested within the last year and meets local or state authority
water quality requirements (the most recent test must be provided)
The Community Well agreement must be fully executed (and either recorded or in recordable form) and provided in the loan submission package at time of underwriting.
If water testing is required certification must be provided by one of the following:
• Health authority approval from the local municipality;
• A licensed water lab
The water must meet the requirements of the Environmental Protection Agency EPA and the maximum contaminant levels established by the EPA will apply. The water must checked for the following contaminants:
• Lead (First Draw)
• Nitrate (as Nitrogen)
• Nitrite (as Nitrogen)
• Total Nitrate/Nitrite
• Total Coliforms
• Fecal Coliforms or E Coli
The Minimum Water Quality Testing Parameters for HUD reflecting the Maximum Contaminant Levels allowed and the required treatments is posted on the MMI website (see Water Testing Requirements Chart).