Rates
Well for once in over 3 months, rates were flat, which was surprising considering how much data was released.
But I think most traders were waiting for more bad economic news out of China and pretty much sat on their money.
Now, with that being said, rates should of rose this week, we had pretty good economic news:
-Construction spending +0.7% vs est. of .05%
-ADP private payroll added 190,000 jobs vs est. of 201,000, close enough.
-Jobless claims @ 282,000 vs est. of 272,000 little high but close enough.
-ISM servicing 59.0 vs 58.4, GREAT number, above 50 is good.
-And the biggie of the month, as always
- 173,000 new jobs vs est. 220,000 slight miss, but will probably be revised up.
- July revised from 215,000 to 245,000
- Average hourly wage increased 0.3% vs est. of 0.2%, big number, and one that the Fed is really focusing on.
The numbers this week as all speaking to the Fed again looking at a September increase in interest rates, one of the Titans in our Industry, Bill Gross, has come out saying that the Fed should/will increase rates by .25 in September and then hold off for 6 months and see what simmers.
Lock those rates, over the next two weeks that is going to be a lot of computer trading and speculating until the Fed Announces at the end of them month.
30 days left…
Yep we only have 30 days left until the Loan Estimator and Closing Disclosure and a whole bunch of new Federal Guidelines hit our industry like a ton of bricks!
ARE YOU PREPARED???????
I am doing 2 more CD/LE Continuing Education Classes before Dooms Day hits, if you have not taken a class, make sure you Giddy UP and get to one, lots of them out there, but I highly recommend this one: https://www.titleonecorp.com/classes
Also, as of today, only 10 days left until all the new FHA rules and regulations come out, HUGE change in FHA, lots of restrictions.
If you have a file currently in underwriting and the case number has NOT been pulled prior to 9/13, you file will have to be re-underwritten on the new guidelines, and believe me, a borrower approved FHA today may NOT be approved for a FHA on 9-14.
Some items that are changing:
- Additional items that a FHA "MUST" inspect for.
- Student loans in Deferrment/Forebarance have to be counted towards debts.
- Borrowers have to move 100+ miles away in order to get a 2nd FHA mortgage.
- Commission income is calculated, stricter.
- Stricter guidelines on people changing jobs.
- Did I mention that FHA appraiser are going to be more strict!
- FHA recognized all marriage types now.
- No gifts from cousins, but you can now get gifts from inlaws.
- Random Deposits will have to be sourced and seasoned
- No/Payment No Interest loans have to be counted now.
- Non taxiable income can only be grossed up 15% now, instead of 25%
Rural Development
And if there isn’t enough rule changes, RD is also going to get on the wagon and change.
Their upfront Mortgage Insurance is going from 2.0% to 2.75% OUCH.
So this means if you have a purchase price of $100,000, the new loan amount will be $102,750.00.
RD is also going to change guidelines on Student Loans, debt to income ratios. Gotta love change!!!
Lead Generator: Mobile Web Site
Did you know, almost 55% of all web browsing is being done on a mobile device?
Did you know only 30% of web sites are mobile friendly?
Have you looked at your web site to ensure it is Mobile Friendly?
Getting leads from Mobile Devices isn’t going to be a primary source, but it can be 1 source for lead generating.
So how do you know if your web site is mobile or not, well go to your web site, and if you have to scroll left or right to see objects, then typically you site is not mobile, or if items/picutres/graphics do not come up, then your site is probably not mobile.