Monday Morning Mortgages is a brief week-opening report on mortgages in Sonoma County Home Loans news. This is a tool to assist my realty partners on loan trends, rates, program changes, and problem solutions.
Today's Rates in Sonoma County - http://www.sonomacountyhomeloans.com/
HVCC Crumbles
Opposition to the Home Valuation Code of Conduct is gathering steam via an amendment to the HVCC that would eliminate the industry challenging legislation. The rescue amendment came out of the House Financial Services Committee and now has to pass the House of Representatives, the Senate and be signed into law by the President. Congress still needs to hear from YOU! If you oppose the current HVCC, please sign the petition if you haven't already. http://www.hvccpetition.com/.
For more information, check out these 2 videos by Think Big Work Small on the subject.
The first 3 minutes of each video addresses HVCC issues and how to help if you haven't already signed the HVCC petition.
HVCC Crumbles
http://www.thinkbigworksmall.com/mypage/player/tbws/19036/-3620
Appraisal Fraud up 46% in Q309 vs Q308 even with HVCC
http://www.thinkbigworksmall.com/mypage/player/tbws/19433/-3620
No Appraisal FHA Streamline Refinances
Up until the end of 2009, FHA is accepting streamline refinances that require no appraisal and no income/credit qualification. These loans are for FHA borrowers who want to take advantage of a lower rate. Any FHA mortgage currently at 5.75% or higher should be looking at this opportunity. And make it fast; the no appraisal required feature expires at the end of the year. Here are the highlights:
•· FHA to FHA loans only
•· No appraisal/inspections required
•· New loan amount limited to old loan amount including the paid up front mortgage insurance. New loan amount is calculated before adding the new up front mortgage insurance.
•· New up front mortgage insurance is paid at a 1.50% fee, offset by a refund of some of the previously paid UFMIP.
•· Must be a proven benefit to borrower.
•· Borrower can have no late payments on the former FHA loan.
•· Borrower cannot take any cash out of the transaction.
•· No income/credit required EXCEPT when an original borrower is deleted or a new borrower added.
•· Impounds accounts must be re-funded in escrow.
Loan Limits Extended (courtesy of www.RobChrisman.com)
A story came out saying that "The National Association of Realtors thanked Congress for speedy action in passing a congressional resolution...that would extend the current higher Fannie Mae, Freddie Mac and FHA loan limits through 2010. The present loan limits would expire at the end of 2009 and revert to previous lower limits." The resolution is not a law - it would extend the present conventional loan limits for Fannie and Freddie through the 2010 calendar year at 125 percent of local median home sales prices, up to a maximum of $729,750 in high-cost areas. This legislation was approved by both the House and Senate late last week that extends the higher loan limits currently in place for agency mortgages. The higher loan limit measure was attached to a budget and appropriations bill that was approved by the House with a vote of 247-178 and passed by the Senate just hours later, 72-28.
Homebuyer Tax Credit
The expected extension and expansion of the tax credit, probably the last one, is expected to be voted on as soon as today and probably signed in the next few days, at best. The signing may happen in spite of the administration preferring a slightly different version. The latest version, and this has not been voted on by the Senate, would extend the credit to home sales that go under contract by April 30 and close by June 30, 2010. A new, $6,500 tax credit would be available for buyers of owner occupied primary residences who have owned during five of the eight years prior to the purchase. Although the House may have its own version, this extension includes a few items such as the home price limit would be $800,000, and the annual income limit to qualify for the tax credit would be $125,000 if you're single and $250,000 for couples.
Mortgage Market - What is that crazy Treasury up to?... (Courtesy of www.RobChrisman.com)
The US government ended its program of buying Treasury securities on Thursday after hitting the $300 billion mark. The mortgage-backed market, however, is still reaping the benefits of the US government purchasing those bonds, with several more months to go. Keep in mind that at some point it will end, and the markets know this. Occasionally rates will shoot up for a day, and someone will blame "the eventual ending of the mortgage purchase program". This makes little sense, as it is well known by investors - but there is hope for an extension if the Fed doesn't see secondary market interest.
At the end of last week most eyes were on the stock market, which, on Thursday, had its largest increase in three months, but then had its largest decrease in four months on Friday. The Chicago Purchasing Manager's survey hit a 13 month high and beat expectations, but the University of Michigan Consumer Sentiment survey dropped from 73.5 to 70.6.
The biggest economic event this week will either be the Fed meeting on Wednesday or the unemployment data on Friday. So although overnight rates, which don't directly impact mortgage rates, should stay put, the Fed may indicate future changes in monetary policy. Nonfarm Payroll is expected to drop 165K jobs for October. In addition, the ISM Manufacturing index and Pending Home Sales will come out today. ISM Services will be released on Wednesday. Productivity, Construction Spending, and Factory Orders will round out the busy schedule. The Treasury will announce the size of upcoming auctions on Wednesday as well. Ahead of all that the 10-yr is at 3.41% and mortgages are worse by about .125.
Today's Rates http://www.sonomacountyhomeloans.com/
