Rates
Another not so good week for rates, with rates falling raising again for the 2nd week.
It was really about a focus on US economics this week, with not much news coming out of the EU or Russia.
US Reports:
-Wholesale Inventories +0.1% vs est. of +0.2%
-Retail sales were down 0.9% vs est. of -0.5%, and this number should of tanked the stock market and mortgage rates should of improved on this bad news, but when it came down to the specifics, it seems that a majority of that drop was due to drop in gas prices.
-Consumer sentiment 93.6 vs est. of 98.1, below estimate, but still an AMAZING number, the mid point between good and bad for this number is 50 and we are WAY above 50!
We did have some concerning news from Unemployment, initial jobless claims jumped from 279,000 to 304,000. We are starting to see some of those Oil layoffs take effect. Concerning now, but if these numbers start to jump over the 320K range, it will start affecting mortgage rates.
Also this week we say oil go above the $50 mark, which is causing stocks to go higher.
Then Russia signed a peace agreement, FYI this is the 2nd one, that goes into effect on Sunday, we will see.
Then looks like Greece is backing down from their stance of giving the middle finger to the EU. Monday will be a big day for that, because if Greece doesn’t find money for a bridge loan, then they could default, which would be SPECTACULAR for interest rates.
Next week, Markets are closed in the US, but we get a good dose of news on Wednesday, inflation and Fed Minutes, and then on Thursday, jobless claims.
Lock them rates, although there is LOTS of talking heads that feel rates are going to make another run at the bottom of the low 3’s, it could take 6 months to get there. So if you are building, gamble, if you are closing in the next 30 days, lock them.
Closing Disclosure (CD) and Lending Estimate (LE)
More and more info is coming out with regard to the new 8/1/2015 release of the LE (GFE-TIL) and the CD (HUD-1)
Although the sky isn’t falling, you need to be aware that closing will NOT happen in 1 days.
So let’s take a look at an easy closing that would happen this month.
Docs would go to title on 2/23/2015, at which time, the CD will be emailed to the borrower, THEY NEED TO ACKNOWLEDGE the CD on the 23rd!
As long as they do, then we will have to wait 3 days, 23rd, 24th, 25th and the cooling/review period.
They could then sign on the 26th, and consummating on the 27th.
Now what happens if the borrower DO NOT have Email.
Docs to title on the 23rd, and put into mail on the 23rd.
3 business day for mailing, that is the 26th, and then 3 business days to review, 27th, 28th, March 2nd, they can sign and March 3rd they and consummate!
But let’s say, after the Closing Disclosure is out and there is a change, i.e. relock the rate, add on some sort of fee, seller decides to pay or not pay something.
Docs to title on 23rd, borrower consents on the 23rd, on 24th error or change is realized.
25th new Loan Disclosure is sent to borrower, wait 3 days (25th, 26th, 27th) New CD is then issued on March 2nd, and the borrower consents on the 2nd, signing date is then 5th, and consummation is March 6th.
So to put it simple:
Closing with borrower consenting to email, 5 business days.
Closing with borrower getting docs via US Mail, 7 business days
Closing with borrower consenting to email, but change occurs, 8 business days.
Closing with borrower getting docs via US Mail but change occurs, 11 business days.
More to come!!!
Realtors and Security
So a couple of questions for you:
Who can access your files?
Are they just in a drawer that anyone can go into?
Do you carry files around in your car?
Do you keep them at home or in the office?
Is you computer you use at work secure?
Do you work from home on a computer which your kids play on?
These are just some of the questions you will be and should have been asking yourself, because you guess it, there are rules and regulations coming out about how you keep your clients personal data secure!
Mortgage Companies went through this a few years ago.
Title company just went through it last year.
And Realtors, you are up next, be proactive, and start securing your data!
Lead Generator
A few months ago, I wrote about handing out business cards, they are the least expensive advertising you can do.
I challenged you to give out 500 business cards per month, leaving them at gas stations when you fill up. Leaving them at burger joints with tips, handing them to cashiers when you check out at the grocery store.
So I just redesigned my new business cards, updated them, added QR codes, and I have my stack of 500.
Anyone else out there going to accept the challenge??!!