Rates
Well weeks like this almost would make me go back into retail, almost.
Rates have had their worst week in over 4+ years, and I say 4+ years because my chart doesn’t go back that far.
It was all about opinions this week and GREAT economic news.
Economic numbers 1st:
-ISM manufacturing 52.8 vs est. 51.9
-Construction spending 2.2% vs est of 0.8% (HUGE number here)
-ADP Private Payroll 201,000 new jobs vs est. 200,000
-ISM Service jobs 55.7 vs est. 55.5
-Weekly jobless claims 276,000 vs est. of 280,000
-US non farm jobs 280,000 vs est of 225,000 (HUGE NUMBER!)
-Average hourly earnings up 0.3% vs est. 0.2%
All of these number showed that the US economy is really moving, and with the average hourly earnings up 0.3%, this is pointing more and more towards a Federal Reserve hike in interest rates, as early as September.
Now onto the world, the Head of the European Central Bank, some dude’s name which I can pronounced, came out on Wednesday and said that the EU isn’t going to buy bonds much longer, which caused the EU bonds to sell off, along with the US bonds.
We even had Greece miss a payment and fighting in Ukraine, which typically would affect bonds, didn’t even cause traders to blink.
All bets are pretty much off that the Fed will raise rates this year. I suspect next week we could see some positive improvements, as far as the bonds have fallen, it could be a good buying opportunity, but I don’t believe we will see rate improve.
Conventional rates are not all over 4.00% for 30 year mortgage, and I am seeing some of the government rates in the 3.875%, but I don’t expect them to stay there much longer.
We are definitely on the way to 6%, so remember 6% is not a bad rate.
Lock rates as soon as you can!
FHA
Lots of new FHA rules coming out with the release of FHA New guidelines, the book is like 8000 pages so lenders are having to sift through the new regulations, couple of note I have seen:
-Student Loan, looks like we have to qualify a person with all of their student loans, even if they are in deferment.
Be warned if your borrowers have lots of student loan, it will affect their purchase price, and could affect any contract you have in progress, especially if you have a new construction.
-Appraisers, from what I read, about 2000 changes for the appraisers, from inspection additional items to the way the report is typed up.
Supreme Court Ruling
Supreme court ruled that 2nd mortgage can’t be discharged in a Bankruptcy 7, this is HUGE, I know of people in Idaho that had their 2nd mortgage discharged in a BK7, and WOW are they going to be shocked when they get that bill.
This is going to send lots of people scrambling.
Link to article here: http://www.nytimes.com/2015/06/02/business/justices-curb-bankruptcy-filers-ability-to-have-second-mortgages-canceled.html?_r=0
Another Big Lender gets fined
Looks like PHH lending is going to be paying Uncle Sam, well the CFPB a little cash, in the way of $109M. They were getting kick backs from Mortgage reinsurance premiums.
http://www.housingwire.com/articles/34100-cfpb-director-phh-corp-took-kickbacks-for-mortgage-insurance-referrals
CFPB and TRID
And the CFPB came out and stated that they will NOT delay the 8/1/2015 release of the new Loan Estimator and Closing Disclosure, which is really no big surprise, honestly we have known about the date for almost 2 years now.
But they did say they will give us a hold harmless period, but didn’t say for how long, I suspect 90 days.
Still waiting for IREC to approve my CE class, should be anyday, will update you as soon as it does!
Lead Generator
Well I just put in another order for new pens, cool ones that work with smart phones and tablets, and my name is all over the.
So I will be handing them out, leaving them places, and giving them to people who don’t really want them…why…Advertising!
Spent $500 to get the new pens, and that is $500 I don’t have to give the IRS.
Go out and buy some cool pens and start handing them out.
Notice the front of the pen, it is a stylus for tablets, and the ink retracts so you can use the stylus, pretty cool!!