Mortgage Bonds are soaring higher

Mortgage Bonds are soaring higher on this weekend’s announcement that Fannie Mae and Freddie Mac will come under control of the government.

The government’s move to create a line of $200 billion to back all Fannie Mae and Freddie Mac loans at all costs is great news for homeowners. First, it ensures the continued liquidity of conforming loans nationwide and, second, it ensures that buyers of this type of Bond have a safe investment going forward. There’s no doubt that this will help the US housing market move through the current crunch that we’re in.

So far this morning, the news has lead to a nice rally in pricing. When combined with the break above the 200-Day Moving Average, this may lead to attractive rates. Therefore, I recommend floating for now.

Jobs Report for August

Wow another great – shortened week! I know you are getting busy out there! Let me know what I can do to help. Make it a great weekend!

Market Update

The Jobs Report for August came in this morning at 84,000 jobs lost. But the real buzz in trading is the swelling unemployment rate, which jumped from 5.7% to 6.1%. This marks the highest unemployment rate since September 2003.

Mortgage pricing has been on a rally for the past several days and looks like it’s about to turn the other way. It’ll interesting to see what happens next week! Stay tuned!

Market Update

Market Update

Mortgage Bonds are trading higher this morning, despite a report that manufacturing in NY is stronger than anticipated.

Normally a better-than-expected economic report would be bad for Bond prices. However, the declining prices of oil, precious metals and other commodities have decreased inflationary pressures and have helped push Bonds higher so far today.

We got a rally late today for the better I recommend floating for now.

Writing an FHA and Nehemiah Program Offer: Structuring the Purchase Agreement


These are the instructions for writing an FHA and Nehemiah offer.

First and foremost, the seller must pay the tax service fee of $81.00.

Check the FHA Loan box.

Page 1:

If asking the seller to pay for a closing cost credit FHA allows a 1-6% closing cost.

“Seller to contribute 3% for non-recurring and recurring closing costs.”

If asking the seller to contribute toward the Nehemiah Program the seller can be asked to contribute up to 6% plus a $599 processing fee for re-sell (Short Sale and Foreclosure) properties and $399 for new construction.

“Seller to contribute 3% of the sales price toward the Nehemiah Program plus $499 processing fee.”

Page 6: Other financing terms (line 24)

“The seller is aware the homebuyer is receiving downpayment assistance through the Nehemiah program as set forth in the related Participating Home Agreement.”

Addendum – Participating Home Agreement to be completed and submitted with the offer.

0. Print the attached Participating Home Agreement to complete and
submit with offer.
1. Calculate the percentage of downpayment assistance requesting
1-6%. Typically 3%.
2. Add the processing fee. $499 for re-sell properties and $399 for
new construction.
3. Add the two dollar amounts together for a total dollar amount due
to the Nehemiah Corporation of America.

The markets volatility

The markets volatility sure isn’t loosing any gas and slowing down. That’s right take a look at this week’s newsletter which continues to discuss the market volatility and inflation concerns by investors. What will it take to get oil to $100 a barrel down from $130? Some say a fed funds increase.

Also, have you noticed signs that tomatoes are in trouble? The FDA has warned about salmonella in red raw tomatoes. See below.

Make it a great week and stay hydrated out there! IT’s HOT!

The Mortgage Business of 2008 Quick Tips

The mortgage business of 2008 is turning into a wild ride! It’s like a never ending adventure that continues to throw a curve balls in my direction. Some of the things I’ve learned recently.

1. Canadian financing… requires 30% down. No income needs to be verified, no social security number, or credit report. I’ve got several programs to help with Canadian or foreign national financing.

2. FHA property flipping states that a seller cannot hold title to a property for less than 90 days which includes the purchase agreement dates. Make sure its more than 90 days from when the purchase agreement is signed.

3. 100% financing is still available… ask me how.

4. Most people don’t understand the benefits of reverse mortgages. If you are home equity rich and cash flow poor reverse mortgages can make sense.

5. Many banks are moving away from stated income, stated asset loan programs and most have discontinued no document and no ratio programs.

Call Sean La Rue at (760)837-1488 or simply apply at Loan Application

Franklin Loan Center’s platform

Happy Friday!

The weeks been great so continue the momentum into the weekend a hold an open house! Print out the attached is the weekly rate update and keep a few copies at your open house. Rates are looking good and Franklin Loan Center’s platform has never been better!! I can handle all of your financing needs! Have a great weekend and remember…

I’m NEVER too busy for any of your referrals.

FRANKLIN LOAN CENTER IS NOW FHA APPROVED!!

FRANKLIN LOAN CENTER IS NOW FHA APPROVED!! This means great things to come when you have clients who are in need of NO and LOW down payment assistance.

Wow, I hope you’ve had an exciting week like I have! Yesterday we got the announcement that the conforming loan limit / FHA limit for Riverside County has increase to $500,000 for single family homes. We are still waiting to be able to lock loans at the new limits. You’ll notice on my rate sheet (attached) that I am still using the conforming loan limit of $417,000 until I am able to lock. Also, there are specifics we are verifying regarding these new limits! As I get more information I’ll pass it along.

This week I’ve attached two articles you should read.

DO YOU HAVE CLIENTS WAITING FOR ANOTHER FED RATE CUT? Read the first article, “Fed Cuts Mortgage Rates Go Up?” to knock them off the fence as mortgage rates will most likely go up after a cut! PRINT COPIES TO PASS OUT!

DO YOU HAVE CLIENTS WAITING FOR PRICING TO COME DOWN? Read the second article, “Ignore All the Headlines” to encourage them to take advantage of low interest rates. PRINT COPIES TO PASS OUT!

Attached is my weekly rate sheet! I’m NEVER too busy for ANY of your referrals! Make it a great week.

FHA Mortgage Limits List – FHA Forward

Message: MORTGAGE LIMITS SUCCESSFULLY COMPLETED

Mortgage maximums as of Wednesday March 05, 2008
(1 records were selected, 1 records displayed.)
MSA Name
MSA Code
Division
County Name
County
Code
State
One-Family
Two-Family
Three-Family
Four-Family
Last Revised
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA (MSA)
40140

RIVERSIDE
065
CA
$500,000
$640,100
$773,700
$961,550
03/05/2008

FHA Mortgage Limits List – Fannie/Freddie

Message: MORTGAGE LIMITS SUCCESSFULLY COMPLETED

Mortgage maximums as of Wednesday March 05, 2008
(1 records were selected, 1 records displayed.)
MSA Name
MSA Code
Division
County Name
County
Code
State
One-Family
Two-Family
Three-Family
Four-Family
Last Revised
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA (MSA)
40140

RIVERSIDE
065
CA
$500,000
$640,100
$773,700
$961,550
03/05/2008



Caught the flu bug?

Good morning!

The mortgage market was still volatile last week with several midday prices changes. Typically banks don’t come out with price changes unless there is a large shift in mortgage backed securities throughout the day. Well, we are seeing that the price of the bond has been moving around quite a bit, and the result: several pricing changes. Check out the newsletter for more information.

Also, caught the flu bug? Check out ways to prevent getting sick and what to do about it if you are. There are some great tips!

Talk soon and make it a great week!

-Sean

Oh by the way, if you or someone you know is interested in buying for refinancing a home… give me a call or email to cover the options! I’m never too busy for your referrals. Thanks.



***Canadian / Foreign National Financing***

In the market this week it remains volatile with large gains and losses in mortgage bonds. Last week Bush approved the Economic Stimulus Plan and HUD has up to 30 days to determine the new conforming loan limits. I expect to hear next week or the week after. I’ll keep you informed as soon as that information comes out.

***Canadian / Foreign National Financing*** 30% down!! It’s so easy! Call me for details!

Oh by the way, I’m NEVER too busy for your referrals! Make it a great week!