Rates
Ouch, not a great week for rate, our 30 year conventional is now trading above 4%, so what is up with this week, well it is the FED!
Economic news out this week is all pointing to great US growth and very low unemployment.
The Fed has stated that they are really waiting for unemployment to kick in and wages to start inflating, and this is what we are seeing.
This week we say Weekly Jobless Claims fall to 262,000, that is the lowest in 15 years!!! YEP all the way back to Y2K. Remember, when we were all freaking out thinking our computers were going to crash!!!
Fed also held their meeting this week, and indicated that they are on track to start to raise their Fed Funds rate this year, still no exact date, but this year.
This caused the bond market to sell off as well as the stock market, rates are current trending higher.
We also didn’t get any news out of Greece, looks like they robbed their banks to make their interest payment to the EU this week, but they are still on the table, if they default, we anticipate a sell of on EU stocks and Rate to improve.
Nothing much out of Russia.
The word is lock, no floating right now, not worth it.
Title Fees
If you haven’t heard, most of the title companies have raised their title fees.
Before the max was $680.00, not it has gone up to $730.00
There are a few title companies that have not raised them, but we anticipate them all to follow suit.
Keep in mind, with all the new regulations coming out on 8/1/2015, the cost of doing business is increasing, so you will probably see more and more fees go up.
In my world, we use to order Verification of employment for $19, now they are $35 and to get an update it is another $30, per borrower!
Student loans
Fannie Mae once again updated student loans, if you have a student loan, no matter if it is deferred or no payment, Fannie Mae is requiring us to take 1% of the total loan balance and put it against the borrowers Debt.
So, example, all Student Loans = $52,500, but no minimum payment is being reported on the credit report or the loan is deferred, then we have to hit the debts for 1% or $525.00 per month.
This is going to cause some chaos in the lending world, so watch out for it.
TRID
With less than 90 days until the new Closing Disclosures and Loan Estimator being released, we want to start making some changes in how you are processing files.
Keep in mind:
1-Escrows should be 45 days.
2-All addendums and counteroffers should be finalized no later than 10 days before Closing Disclosures is to be released.
3-After the Closing disclosure is released to the borrower, NOTHING can change on the purchase contract.
Still waiting for IREC to approve my class, will be 60 days on Monday so I am going to start bugging them.
Lead Generator
Have you sponsored your kids schools monthly news letter? You should ask the school you child or grandchildren attend, and ask them.
They will typically send you the file, you just add your logo onto it and print it off for the school on colored paper.
Bam, instantly get in front of 500+ parents, and CHEAP!!!