Bill Black CMP

ello and I hope your week is off to a great start… I wanted to say thanks for the input of a new name on my banking transition. I had some great feedback and appreciate each and every idea.

My flavor of the day which is definitely a name for the current times is:

New Financial

Or

New Financial Lending (NFL) (Can really have some fun with that Acronym!)

Short and sweet … but New! Any other thoughts?

Now on to the-

Pending Home Sales Rise 3.2%, Signaling Market Near Bottom

http://www.cnbc.com/id/30559126

My personal happening of the week-

This really never happened to me- I have a daughter:)

Although, I had an interesting Sunday as I decided to take a little road trip to Goldendale, Wa. to meet with a first time homebuyer. He was referred from another first time homebuyer that I helped over 4 years ago from Goldendale…. I guess is pays to stay in touch!

My new client told me they have been trying to buy for about a year but seemed to have no luck in their local market with Realtors and the town lender. … I am not sure what the issue was as I was able to take application over the phone on Friday and approve him for a USDA loan at 102% within that conversation. He was also estatic to learn he qualifies for the $8000 tax credit upon closing. After a call on Saturday with question after question I thought it may be a good idea to take a Sunday drive and go meet with him to go over home one on one home buying seminar.

After spending half of a day with him, his lovely wife and their 4 kids I realized why I love to do what I do! This family had no internet- no email and had to drive 15 miles to use a fax. I realized that if he would have had the automation I would have sent him the info and never been able to go in to detail on the home buying process as well as identify exactly what his intentions were and assist him in meeting these goals. My job is to communicate the transaction to the client to the best of my ability and one on one meetings are priceless and I will work harder no making these happen.

At 8 O’clock last night when I left them they very graciously thanked me for my time and they feel very at ease as they have a much greater understanding of how things work. When I walked by the Van full of kids each graciously thanked me as well for helping them all get a bigger home and they LOVED the one with the playhouse!

I sometimes lose the fact that buyers do not spend 12 hours a day in the mortgage and real estate world like us professionals and putting them into the largest debt of their life must be scary as hell and when they do not understand what to expect this must cause more anxiety.

There is no relevant economic news scheduled for release today. The week is very light in terms of the number of scheduled economic releases. However, we may still have an active week in the markets and mortgage rates due to the importance of the data that is being released and the other events on the calendar. There are only two reports scheduled that are worth watching, but one of them is highly important to bonds and mortgage rates.

The first event of the week will be testimony of Fed Chairman Bernanke as he speaks before a Joint Economic Committee late tomorrow morning. The topic will be the economy and the Fed's outlook for future activity. Market participants will be watching his words closely, which means that we will likely see some volatility in trading as he speaks. He will begin at 7:00 AM, so look for fluctuations in the markets during late morning trading and potential revisions to rates early afternoon.

In addition to this week's economic data, we also have Treasury auctions that can influence bond trading and affect mortgage rates. The Treasury will hold a 10-year Note sale Wednesday and a 30-year Bond sale Thursday. Results of the auctions will be posted at 10:30 AM each day. If they were met with a strong demand from investors, we could see bond prices rise enough during afternoon trading to cause downward revisions to mortgage rates. However, lackluster bidding could lead to higher mortgage pricing those afternoons.

Overall, I am expecting to see a fairly active week in mortgage rates. Expect to see movement in rates multiple days this week. Tomorrow's speech and Friday's Employment report will heavily influence trading, likely making them the most important days. However, Thursday's data and Treasury auction may also lead to noticeable changes in rates.

Take care and make it a great day,

Bill Black- CMP
Branch Manager/Mortgage Planner
America One Finance- Downtown
360-910-3290
Fax: 360-326-1861

My Blog
www.aofdowntown.com

LinkedIn: Bill Black

Click here for : My Zillow Place

Homepath Homes- No Appraisals, No MI, 90% NOO!

Wa. License #510-LO-38004

My core business is based upon trust and honesty with it’s clients; we feel that this is the most important component of any business relationship. We constantly measure our business processes to ensure that our clients receive the highest level of service possible.

Hello Everyone,

We have a couple spots open tomorrow from 11:30- 12:30 tomorrow for what we are calling “Twitter Thursday”…. This is our first informal meeting going over setting up a twitter account and managing that account for our Real Estate business. This is no cost but please come with your laptop if possible and have a couple ideas of a “twitter name” mine is “fund4u” but I think I will be changing it to BillBlax as I have recently found out that name recognition is valuable on twitter.

We will eventually assist all of our referral partners that are interested to have an account using social networking such as www.facebook.com/ and www.Activerain.com/fund4u and http://www.zillow.com/profile/Lowrates4u/ as well as some blog sites such as www. …. This is the beginning of a new means of marketing- not to be taken over by your current business plan but to add in a new means of communicating to the community on what you do and how they can find that subject matter expert they need. We will also be putting together a “First Time Home Home Buyer Seminar” and include this in a webinar format so we can personalize the “Realtor” section for you to promote on your Activerain/Twitter/Facebook account with one easy upload!!!

Please RSVP as we have limited seats and first come first served.

MARKET ANALYSIS:

Mortgage bond prices were near unchanged Wednesday failing to erase any of the losses seen Tuesday afternoon. We are sitting around 4.875%-5% on a 30 yr fixed loan.

In news released this morning, Q1 preliminary Gross Domestic Product (GDP), the broadest measure of economic activity, fell 6.1%. Economists were expecting the US economy to retract 4.7% in the first quarter. The deflator, which measures the change in prices in total GDP and for each component, rose much more that expected sparking inflation concerns. While the headline number was bond friendly, the deflator figure sparked inflation concerns muting any possible improvement.

Separately, the Treasury announced they will auction 71B (71,000.000.000) in 3, 10 and 30-year bonds next week. The 71B is a record for the Treasury. The auctions take place next Tuesday, Wednesday and Thursday and are on the longer end of the yield curve. These auctions will compete with the MBS market for available investment dollars. It will be interesting to see if the Federal Reserve announces any increase in their plan to Treasury debt. Remember, the Fed is a major buyer of MBS's and are responsible for keeping rates as low as they are. When talking with borrowers about floating, remind them next week looks rocky.

Traders will spend the morning watching stocks as they await an action packed afternoon. At 1:30 pm ET today, the Treasury will auction 26B in 7-year notes with results by 1:30 pm ET. In addition, the Federal Reserve will adjourn their meeting and release a statement on the US economy and policy changes at 2:15 pm ET. Keep your lock sheets handy.

Hello Everyone,

Will I get Swine Flu if I eat bacon?

Hope your week is off to a great start…. The weather over the weekend must have added to the positive media flurry that it’s a great time to BUY REAL ESTATE ~ I noticed a flurry of transactions over the weekend or at least for those priced right…. I even heard a couple transactions with 3 separate offers that came in over the weekend!

This is great news for buyers that are taking advantage of the $8,000 tax credit as well as purchasing homes from Fannie Mae direct on special loan programs offering to waive appraisals and mortgage insurance. Seems the only homes that are moving are those that are priced to sell which continues to drive the market down to an affordable bottom. It is such a great time to buy!!!

Unfortunately, sellers are not so lucky and are experiencing some real tough times. They do not get to take advantage of writing off the losses like Fannie Mae and Freddie Mac are doing and if so they are trying to have the bank accept a short sale which the banks seem to want to wait around for some bailout that may never even come to fortune!

I am expecting some changes once the senate completes its discussions this week so hang on to your hats as we may see even more changes this week-

MARKET ANALYSIS:

Mortgage bond prices remain higher Monday morning adding to the small gains seen Friday afternoon. Rates are finding support from weak stocks. We had a .25 improvement in rates today.

This week promises to be action packed with the Treasury set to auction 101B in 2, 5 and 7-year notes. The new supply of debt competes for available investment dollars; therefore it would not uncommon to see rates come under pressure ahead of the auction as trading desks prepare for the new issue. If the auction is well received, rates typically improve somewhat and vice verse. The results of the 2-year auction are expected around 1:30 pm ET today.

As if a credit crisis, housing slump and massive unemployment around the globe is not enough; FEAR (capitalized for emphasis) of a pandemic from the swine flu is gripping the world. Traders are dumping airline, hotel and travel relates sharers as more is learned about the spread of the flu. On a positive note, this news should add support to the auctions today as traders run for the safety of US debt in times of uncertainty.

Bill Black- CMP
Branch Manager/Mortgage Planner
America One Finance- Downtown
360-910-3290
Fax: 360-326-1861

My Blog
www.aofdowntown.com

LinkedIn: Bill Black

Click here for : My Zillow Place

Homepath Homes- No Appraisals, No MI, 90% NOO!

Wa. License #510-LO-38004

My core business is based upon trust and honesty with it’s clients; we feel that this is the most important component of any business relationship. We constantly measure our business processes to ensure that our clients receive the highest level of service possible.

Hello,

Rates are creeping up…..

But the real news for the day and to end the week is that I hope you are ready for another MAJOR dump of property the next couple m

onths!!! You all recall my last blog (5 lashings if you didn’t read it!) Where I spoke about the foreclosure moratorium being lifted… Be prepared and line the buyers up for the next flood of inventory and this time they know what they are doing when foreclosing, liquidating and moving property. Asset managers have already been given the green light to “SALE SALE SALE ” and stop the bleeding and get it over with once and for all.

We are planning a special bus for buyers and investors in May called the www.homepathbus.com which will be for all the Fannie Mae owned homes that offer special financing for all the bank owned properties- they waive appraisals, remove mortgage insurance and go up to 90% for investors and 97% for owner occupied homes!!!! You can find these specific types of homes including Arizona second homes at www.homepath.com

This was in the Wall Street Journal yesterday-

Some of the nation's largest mortgage companies are stepping up foreclosures on delinquent homeowners. That will likely lead to more Americans losing their homes just as the Obama administration's housing-rescue plan gets into gear.

J.P. Morgan Chase & Co., Wells Fargo & Co., Fannie Mae and Freddie Mac all say they have increased foreclosure activity in recent weeks. Those companies say they have lifted internal moratoriums which temporarily halted foreclosures.

Some mortgage companies had stopped foreclosing on borrowers as they waited for details of the Obama administration's housing-rescue plan, announced in February, which provides incentives for mortgage companies and investors ...

If you read my last daily email or blog post this is exactly what I was talking about as the next flood of inventory. I shared this with a recent client that was in Arizona buying a 2^nd home this week and he commented “that must be the reason every home they looked at had the notorious “Chirp Chirp” going on”…dead batteries in the smoke detector since all those houses have been empty for a long time…. Stale inventory finally dropping price to move before the next flood comes in….

This is also the reason behind the false first quarter bank earnings reports since very few homes were foreclosed on the last 5 months so as numbers may look good today I have a feeling 2^nd and 3^rd quarter are going to be ugly again.

Now that the meat & potatoes have been laid on the table from the Obama plan it is time to start the default house cleaning process. Banks and servicers are putting systems in place to take what incentive and earnings are available from the bailout and liquidate what they can to stop the bleeding.

Currently servicers and lenders have been hiring Realtors to go out an investigate a home, try to collect information with pictures of the houses condition and report back to lender so they have an idea what phase this house will be heading. They are also encouraged and rewarded to go to the door and try to get the homeowner to call the lender and if they are a renter to gather that information as well.

The phases will look something like this-

Phase 1- Foreclose on all non-owner properties where original borrowers are earning an income and not passing it on to the creditors. The plan is to notify the renters that they are encouraged to stay in the home and will lower rent collected as well as offer an incentive if they keep the place in good shape during the listing process and if left in good once it sells will offer a “reward or incentive”. This will keep the place in presentable condition and save Fannie and Freddie thousands of dollars in damages and cleanup coasts.

Phase 2- Second homes and abandoned homes- Most likely to never receive another payment and as long as they are not kicking people to the streets then they will speed up the process of getting these houses off the books.

Phase 3- Owner occupied where the homeowner will not communicate with the banks.

Phase 4- Owner Occupied that have tried to submit a loan modification and no possible way ever have a chance in being able to afford the home

Phase 5- Loan modification to all homeowners that currently live in home and can fall under the Obama guidelines of lowering payment to 31% of their debt to income by lowering rate to 3%, then extending loan term to 40 years then reducing principal.

Hope is that this will all happen in the year 2009 and we will be able to start 2010 fresh… That’s my story and I am sticking to it!

Hello Everyone,

Hope your tax day is going well….So I heard last night on TV that a stripper claimed a “boob job” (Can I say that on my daily report?) on her taxes and when audited she was able to keep the deduction! (or was it an increase?) Work related expenses I guess … Who would have known?

No worries here as I have an extension- I was once told that those with extensions are 60% less risk of an audit! So I think I am going to wrap my arms around that and use it for my excuse. It has nothing to do with the fact I HATE figuring out how much money I spent and how much money I didn’t make!

I try to circle myself around top notch professionals and refer business to that circle of people- that could be why you get this email!J I have referred my CPA to many of my clients and have been asked a few times to send them the info so I will once again say….if you need some tax help John Caughell at Golden & Company is the best in town- johnc@golden-cpas.com time is ticking…. I think I should swing by and drop him off a bottle of wine as I know his day has been chaos!

Rates-

They are volatile- still at 5% but VERY volatile.

The rest of the scoop-

Things have been rather hectic lately and I have so much to share I keep trying to find the perfect time to be able to put this together but I am finding that there is no such thing so I am going to put something together real quick and hope its not too choppy. These are the major things that are going on in the industry with a little input from me of course…

#1- HVCC- Home Value Code of Conduct- https://www.efanniemae.com/sf/guides/ssg/relatedsellinginfo/appcode/pdf/hvccfaqs.pdf

This could be one of the biggest obstacles that we see in the industry in years… Basically all brokers are required to order appraisals through a national third party company that guarantees value to the lenders with no communication allowed from the broker or Realtor. Borrowers are to pay in advance and the outcome will be shared once the appraisal is completed- OUCH! No communication allowed is suppose to improve things?

I currently have an option with who I contract to do my clients appraisals and have an agreement with them in order to represent me-

o Be punctual (On time as peoples schedules are important)

o Be professional (Introduction, show ID, Dress Code, not enter house without adult present, take off shoes in ALL houses)

o Be respectful (The appraiser is in your house…. So kind of goes without saying how this one can get messed up!)

o Appraisal to be completed within 3 days of order

o Any follow up conditions within 48 hours of request

If my needs are not met I no longer do business with my appraiser …. And that has happened plenty of times!

It has taken me a few years to find an appraiser that has the capabilities to have my needs matched- unfortunately now all those that failed at what is needed will be back doing MY clients appraisals because that is what the government (Fannie Mae and Freddie Mac) thinks will make things better. Some industry professionals are forecasting this to slow things down by as much as adding on another 2-3 weeks in closings and that is once the cobwebs are worked out!

It not like we are not already having troubles with value and finding incompetent appraisers that chose to not go out in the rain to take a comparable picture and would rather scour through their current database to find something that “sorta” is a comparable.

So if you or someone you know is looking at a refinance or purchase on a conventional loan I would encourage them to have an application taken prior to May 1^st or they will be stuck with the new rules and could be ugly~

The good thing is the FHA does not require this…… YET!

#2- Foreclosure Moratorium Lifted- http://www.bizjournals.com/sanfrancisco/stories/2008/11/17/daily83.html

It seems that very few of my clients, investors and Realtors knew about the foreclosure moratorium that was in affect with Fannie Mae and Freddie Mac and most other lenders. This was initiated on Nov. 26^th 2008 and each place have had multiple extensions waiting on the findings of the Obama plan to see how they can make some money off the bailout. The business Journal stated, “Wells Fargo Home Mortgage, the nation’s largest mortgage originator, has extended its foreclosure moratorium on loans it owns to March 13”.

So what does this mean- it means we are about ready to see a MAJOR bottleneck in the system of foreclosed property just when some were starting to think the bottom has hit because multiple offers on places and our inventory has neutralized or depleted. The focus will be on all the investment property that are still collecting rent, then the 2^nd homes and places where the owners have had no contact with lenders and have abandoned homes. I was also told from one of my synergy group of brokers that his asset manager for Fannie Mae has been very aggressive on moving the inventory at what ever cost!

#3- Fannie Mae Homes- www.homepath.com

So the next question is what will happen to the foreclosed homes? Well fortunately Fannie Mae has came up with a plan to pass on the savings to the buyers if they purchase one of their homes-

I hope you are secured in your seat because what I am about to share will make you fall from your chair- Fannie Mae has offered a loan that select lenders are able to originate that:

Only 3% down

No Mortgage Insurance Required

No Appraisal

6% Seller Contributions

Not FHA

Renovation Loan option

Non-Owner available- some restriction on NOO

#4- Fannie Mae and Freddie Mac are allowing refinance up to 105%. That’s right if you have a home and was told it did not have value to refinance please email me or call with an address so I can look it up and see if you qualify. Owner occupied or Non-Owners!!! Only refinance a first lien position but 4.375 is a great rate on a 15 yr. fixed- imagine same payment and being free & clear 15 yrs earlier !

Well I have about 132 more things but I better ration those out because by the time you get this far the rules probably already changed…. I appreciate the people that read to the bottom as it shows I am not just wasting my time- I should put a free price if you read this far!!! Maybe next time hee hee