Mortgage Minute with Jeff Fink

Monday, February 23, 2009

Febuary 22nd rates and news

Friday, February 20, 2009

RATES & INFO FOR FEB 20th 2009

Mortgage news and rates for Feb 20th

Mortgage Market Minute: What goes down must come up, or something like that. MBS prices are headed back up the old roller-coaster track, with the FNMA 4.5% up +.28 to 101.00, the 5.0% up +.22 to 102.06, and the 5.5% up +.16 to 102.56. MBS are being pulled along by a continued flight to safety, as Treasuries are ending up being popular hiding places this morning from a continuation of yesterday’s stock market rout. After hitting a 6-year low yesterday, equities today are plumbing still new depths, off nearly 2% on renewed bank concerns. So it turns out that last November’s stock market bottom wasn’t one. The specter of deflation has at least for now retreated, with the announcement that consumer prices broke their 6-month slide (see post below). B of A and Citi nationalized? Could happen anytime.More global bank concerns - Bank of America is off -15% at $3.25 and Citi is off -20% at about $2. The combined market cap of these once-behemoth corporations is down to an amazingly-low $27B. Looking at the charts for these stocks and hearing the media spin on continued bailouts (after billions and billions already spent) leads this author to predict that the government will nationalize these two firms in the next few weeks (possibly even this weekend)– remember how Fannie/Freddie went? Same playbook. Usually happens over a weekend.Mortgage rates head lower this week.Mortgage rates declined for the second consecutive week, said Freddie Mac this morning. The Primary Mortgage Market Survey for the week ending Thursday 2/19 showed that the rate on a 30-year fixed fell from 5.16% last week to 5.04% this week (and 0.7 point, unchanged). The 15-year fixed averaged 4.68% (and 0.6 point) compared to 4.81% (and 0.7 point) in the prior week. The 5-year ARM fell from 5.23% to 5.04% (and 0.6 point). The 1-year ARM slipped from 4.94% (and 0.5 point) down to 4.8% (and 0.5 point) this week.Consumer Price Index rises for first time in six months. As predicted in yesterday’s Mortgage Market Minute, Mr. Inflation is putting on his track shoes, and it appears that the Fed can (at least for now) relax its concerns about deflation. The Labor Department reported today that the Consumer Price Index (CPI) rose +0.3%, as forecast, marking the first increase in six months.. The core rate, which excludes food and fuel costs, increased +0.2%, driven by an end to falling gasoline prices, automobiles, apparel, and health care. This marks the first increase in six months. Annualized, the CPI was unchanged. Downward pressures on prices still exist, though, as retailers chop prices in response to falling demand. Chris Rupkey, chief financial economist in New York at Bank of Tokyo-Mitsubishi UFJ Ltd., said “Everything is heading in the same direction, which is down. Sales are down, profits are down, prices are coming down.” Treasuries, which had risen earlier in the day, remained higher after the report. Yields on the 10-year note dipped to 2.75% down about 10 basis points from yesterday’s levels. Atlanta Fed President sees recovery in second half of year.Atlanta Fed President Dennis Lockhart, speaking in Birmingham, AL, said he expects a recovery by the second half of the year, despite weak credit markets, housing oversupply, and low business and consumer confidence. Lockhart said he was encouraged by lower mortgage interest rates and stronger January sales, but that it was still important to have a comprehensive and coherent policy response by government. "We have reached a pivotal juncture. After a rapid onset of problems in the economy and financial system - both global and national - we've reached a point where incremental responses must proceed to something more comprehensive, scaled, and coherent," Lockhart said. "I believe the composite policy approach is correct in focus and intent, and now the devil is largely in the details and implementation," he continued. Lockhart’s comments appear to be on point, as investors continue to worry about the current lack of details and ineffective implementation of various economic recovery plans.
Diamonds are forever. The problem is, you can’t eat them.DeBeers, the world’s largest diamond company, has just borrowed $500 million from its shareholders in order to survive. Turns out that consumers worldwide prefer the taste of real food over diamonds when the going gets tough.On today’s date: February 20…1839: Congress prohibits dueling in District of Columbia1872: Metropolitan Museum of Art opens in New York City1933: House of Representatives completes congressional action to repeal Prohibition1937: 1st automobile/airplane combination tested, Santa Monica, Ca1943: Allied troops occupy Kasserine pass in Tunisia1962: John Glenn is 1st American to orbit Earth in Friendship 7The last word:“Every day I get up and look through the Forbes list of the richest people in America. If I'm not there, I go to work.” --Robert Orben

Wednesday, February 18, 2009

Febuary 18th rates and news

Tuesday, February 17, 2009

RATES & INFO FOR FEB 17th 2009

FYI....CHASE BANK IS NOT AN FHA LENDER.SO BEWARE OF A CHASE PRE APPROVALS THAT SAY SO!!

LA MORTGAGE INC. a Rodeo Realty company
15300 Ventura Bl. #101 Sherman Oaks, CA 91403
Jeffrey Fink Email: jefffink@lamortg.com
Mobile: 818-723-1638 Office: 818-986-7300 ext 120 E Fax: 206-203-4720
CONFORMING, JUMBO,BRIDGE AND REHAB LOANS LA MORTGAGE INC. a Rodeo Realty company
15300 Ventura Bl. #101 Sherman Oaks, CA 91403
Jeffrey Fink Email: jefffink@lamortg.com
Mobile: 818-723-1638 Office: 818-986-7300 ext 120 E Fax: 206-203-4720
CONFORMING, JUMBO,BRIDGE AND REHAB LOANS

Conforming Limits: $100,000 to $417,000 February 17, 2009
Rates
4.75% 30-Year Fixed

HIGH CONFORMING

Conforming: $417,001-$625,500
Rate: 5.625% 30 Year Fixed
Rate
JUMBO LOANS

LOAN AMOUNTS $625,501-$10,000,000
5 Year Fixed 5.75 %
10 Year Fixed 6.25%
Interest only available

FHA LOANS LOAN AMOUNTS TO 96.5% LOAN TO VALUE30

30 Year Fixed $100,000-$ 362,000 5.00 %

$ 362,500 -625,500 5.625%

Rates are based on a 1- 1.5 point origination and are subject to change without notice and are for broker and realtor use only. Rates are constantly changing so call me for updates

There are a lot of changes taking place every day and clients have a lot of questions so please do not hesitate to have your clients call me.

Remember that LA Mortgage is a mortgage broker and we do refinancing as well as purchase money loans.

Rates are based on a 1- 1.5 point origination and are subject to change without notice and are for broker and realtor use only. Rates are constantly changing so call me for updates

There are a lot of changes taking place every day and clients have a lot of questions so please do not hesitate to have your clients call me.

Remember that LA Mortgage is a mortgage broker and we do refinancing as well as purchase money loans.

Thursday, February 12, 2009

Mortgage news and rates for Feb 12th

LA MORTGAGE INC. a Rodeo Realty company
15300 Ventura Bl. #101 Sherman Oaks, CA 91403
Jeffrey Fink Email: jefffink@lamortg.com
Mobile: 818-723-1638 Office: 818-986-7300 ext 120 E Fax: 206-203-4720
CONFORMING, JUMBO,BRIDGE AND REHAB LOANS

Conforming Limits: $100,000 to $417,000 February 12, 2009
Rates
4.75% 30-Year Fixed

NEW CONFORMING

Conforming: $417,001-$625,500
Rate: 5.625% 30 Year Fixed
Rate
JUMBO LOANS

LOAN AMOUNTS $729,751-$2,000,000
5 Year Fixed 5.75 %
10 Year Fixed 6.0%
Interest only available

FHA LOANS LOAN AMOUNTS TO 96.5% LOAN TO VALUE30

30 Year Fixed $100,000-$ 362,000 5.00 %

$ 362,500 -625,500 5.625%

Rates are based on a 1- 1.5 point origination and are subject to change without notice and are for broker and realtor use only. Rates are constantly changing so call me for updates

There are a lot of changes taking place every day and clients have a lot of questions so please do not hesitate to have your clients call me.

Remember that LA Mortgage is a mortgage broker and we do refinancing as well as purchase money loans.

Lenders drop mortgage brokers
Some big banks are cutting out mortgage brokers and having lending generated by their own people. That could be bad for consumers

NEW YORK (CNNMoney.com) -- Some big banks have cut back on doing business with mortgage brokers - and if the trend continues, many mortgage brokers could close down.
That may be bad news for consumers because fewer brokers could lead to a less competitive marketplace and more expensive home loans resulting from consumers not being able to easily comparison-shop rates.
"The banks want to get rid of mortgage professionals to reduce competition," said Alan Rosenbaum, founder of GuardHill Financial, a New York City-based brokerage firm. "It's not good for consumers."
A few years ago, according to Rosenbaum, mortgage brokers were responsible for 80% of the mortgage-lending business in America. He said that's probably under 70% now and dropping.
The actions of two big banks have helped push that percentage down.
JP Morgan Chase (JPM, Fortune 500) announced in January that it would end its so-called wholesale operations. It will no longer fund loans arranged through brokers, instead it will make loans mostly through its own offices. And Citigroup (C, Fortune 500) said it will cut back the number of mortgage brokers it works with to 1,000 from 10,000.
"Our customers are best served when a mortgage officer works directly with them, explains our products clearly and then helps them carefully evaluate the choices in light of their personal financial situation," according to an internal Chase memo.
However, brokers say they perform a needed consumer service by monitoring offers from an array of lenders, picking and choosing the best deals. That helps keep rates low because lenders have to make their terms attractive to keep their volume flowing.
Borrowers going into a Chase branch for a mortgage loan would, on the other hand, only receive the terms available through Chase. If brokers disappeared, borrowers would have to shop all the individual banks to compare deals.
Marc Savitt, president of the National Association of Mortgage Brokers, suspects that banks like Chase may think they can increase profits by cutting out the middlemen, but the added costs of bricks-and-mortar operations will ultimately make the business less efficient. Loan officers may find themselves sitting around waiting for customers to come in rather than fielding applications from mortgage brokers.
Chase opened a slew of new branches lately, including 2,200 as part of the Washington Mutual acquisition it made this past fall.
"Five years ago, we had 600 branches, now we have 5,000," said Thomas Kelly, a Chase spokesman.
Despite Chase and Citigroup's actions, John Courson, president of the Mortgage Bankers Association, does not think all mortgage brokers will be driven from the business.
"Every lender has its own business model," he said. "Chase made a decision to only lend through its personnel, [but other large lenders] will still need loan production. Mortgage brokers will continue to be an important part of the mortgage channel."
Chasing higher profits
Chase took the step of discontinuing its wholesale lending for two main reasons, according to Kelly. For one, "The best people to originate the loans, we believe, are those working in our bank branches," he said. Secondly, Chase determined that loans originated by brokers defaulted at higher rates than did bank-originated loans.
The brokers scoff at that. "Mortgage brokers don't develop their own products, their own guidelines and parameters," said Savitt. "They take applications; Chase makes all the decisions."
"Mortgage brokers have been blamed for everything from tooth decay to global warming, and it's bologna," added Allen Hardester, a Maryland-based broker.
He pointed out that no mortgage broker ever underwrites a loan, creates a loan program or approves an application. Lenders always have the final say.
And, if the loans from brokers did perform poorly, it's because lenders encouraged, nay prodded, brokers into bringing them more and more poor-quality customers during the boom years. Subprime mortgages were very profitable, before they started to default at higher and higher rates.
"The lenders dangled large carrots in front of brokers," said Rosenbaum. "They told me, 'Unless you give us more subprime business, I can't improve your pricing for your good customers.'"
Now, he hardly deals with big banks at all. "We haven't done much business with them for more than a year. Banks are throwing the baby out with the bath water. They don't know the good mortgage brokers from the bad."
So far, the other big banks, Wells Fargo (WFC, Fortune 500) and Bank of America (BAC, Fortune 500), have not followed Chase and Citi's leads. "[These] lenders may be looking at this as an opportunity," Savitt said. "They said they were committed to the broker channel and would expand it," he said.
If that's true, it shouldn't affect the market too much even if two big-hitters drop out.
"It will remain a competitive environment," said Courson.
Plus, he said, the there will be a flight to quality. "I think even for banks that continue to take mortgage broker-originated loans, there will be much higher standards."
That includes requiring brokers to show greater stability by demonstrating higher net worth and posting higher surety bonds (a kind of performance guarantee).

Wednesday, February 11, 2009

Mortgage Minute Febuary 11th

LA MORTGAGE INC. a Rodeo Realty company
15300 Ventura Bl. #101 Sherman Oaks, CA 91403
Jeffrey Fink Email: jefffink@lamortg.com
Mobile: 818-723-1638 Office: 818-986-7300 ext 120 E Fax: 206-203-4720
CONFORMING, JUMBO,BRIDGE AND REHAB LOANS

Conforming Limits: $100,000 to $417,000 February 11, 2009
Rates
4.75% 30-Year Fixed

NEW CONFORMING

Conforming: $417,001-$625,500
Rate: 5.625% 30 Year Fixed
Rate
JUMBO LOANS

LOAN AMOUNTS $729,751-$2,000,000
5 Year Fixed 5.75 %
10 Year Fixed 6.0%
Interest only available

FHA LOANS LOAN AMOUNTS TO 96.5% LOAN TO VALUE30

30 Year Fixed $100,000-$ 362,000 5.00 %

$ 362,500 -625,500 5.625%

Rates are based on a 1- 1.5 point origination and are subject to change without notice and are for broker and realtor use only. Rates are constantly changing so call me for updates

There are a lot of changes taking place every day and clients have a lot of questions so please do not hesitate to have your clients call me.

Remember that LA Mortgage is a mortgage broker and we do refinancing as well as purchase money loans.

Mortgage Market Minute: The market is cruising along in sideways fashion with the FNMA 4.5% down a tick to 100.56, the FNMA 5.0% up a tick to 101.69, and the 5.5% flat at 102.22. Wednesday we get details on Trade balance. Thursday we get Retail Sales (expect -0.3%, last month -2.7%) and Jobless claims (expect 625K, after last week’s 624K). Friday we get Consumer Sentiment (expect 61.5, last month 61.5). Lots of pressure on Treasuries trying to find a home in the market – pricing will likely be under assault, which may lead MBS prices lower (and mortgage rates higher). The 10-year yield is has climbed to 3.00% (as we predicted). The slugfest on Capitol Hill continues this week, with the much-debated stimulus bill having another go in front of Senate Democrats insisting on urgency and Republicans outrage over pork. Interestingly, the real tonic for the economy’s woes may instead be being pushed off stage by the mother-of-all-red-herrings stimulus plan, for postponed by a day is the announcement detailing the potentially very effective plans for purchasing toxic assets from banks and restart frozen credit markets (see next post).Government delays “bad bank” announcement by a day. The government delayed plans until Tuesday to announce a much-discussed mechanism for purchasing toxic assets from banks, as well as additional capital for banks, a new homeowner aid program, and the expansion of the Fed's Term Asset-Backed Securities Loan Facility. The plan, according to the Wall Street Journal, includes a government partnership with the private sector to purchase toxic assets though the creation of an aggregator bank which could purchase up to $500 billion in toxic assets. Sometimes called a 'bad bank', the main difference is that both government and the rescued firm will bear some of the risk in the transaction to ensure that the U.S. taxpayer does not overpay for the toxic debt. The aid to homeowners could be between $50-$150 billion in the form of loan modifications. TARP will be expanded to student loans, credit card debt and auto loans. The FDIC may also expand the types of debt it guarantees. Treasury Secretary Geithner was expected to unveil the details of the package on Monday, but President Obama delayed the announcement in order to focus energies on getting the Senate to pass the stimulus package being hotly debated.Bond market focusing on consuming large supply of TreasuriesThis week, there will be tremendous focus on bonds, as the U.S. Treasury pours supply onto the markets. The markets will also be affected by details being released on proposed government plans to resolve the financial problems plaguing the U.S. economy. Treasury Secretary Timothy Geithner this week plans to hold a press conference on new rescue initiatives aimed at bringing further stability to U.S. financial markets. The administration is also suggesting changes to the mark-to-market accounting system. RBS Greenwich currency strategist Alan Ruskin said the expectations of the changes are increasing risk appetite, helping to boost equities and dragging down the U.S. dollar. Traders are expecting bond markets to be in a tough position next week as more investors move back into equity markets and the U.S. government continues spending money. The Treasury will sell $151 billion in bonds, which will include three and six-month bills, three-year notes, 10-year notes and 30-year notes. Although there exists the potential for U.S. Treasury yields to move higher, traders are expecting gains to be limited. Guy LeBas, fixed income strategist at Janney Montgomery Scott, said if 10-year yields rise above 3.0%, the market will put pressure on the Fed to come in and buy bonds. "The last thing the treasury wants is for yields to rise," he said. "Yes it's going to be a challenging week, but the Fed is still anchoring the yield curve."