Every year at this time of year we all start talking about the things we are thankful for and how much we love our families etc. This year is no exception.
I was looking at my facebook page and reading many of the post talking about what they are thankful for. I even responded to a post about what was the most memorable Thanksgiving for you. After doing that I looked on my Twitter page to see if there was anything I should read about the there it was....South Carolina Unemployment rate now 12.1%. It hit me like a ton of bricks....12.1% of my fellow South Carolinians are experiencing a Thanksgiving that many of them did not experience last year.
It saddens me when I think what my fellow South Carolinians must be experiencing. It reminds me of what I really should be thankful...not just having a job but having all the things around me that would help through a time like that...my family. I am so grateful for my loving and caring wife who accepts me for me and still loves me regardless of my short comings, to still have my Dad, my Mom, all of my sisters and brother, my children, and my granddaughter. If I was experiencing any trauma in my life, these are the people who would be helping me standing beside me.
So this Thanksgiving I am truly thankful for the little things in my life that make my life so full, the love and support I receive from my family. My hope, simple...that the 12.1% of unemployed South Carolinians have the same love and support from their families. With that, they can overcome anything.
HAVE A GREAT DAY!!!!
Kevin M. Breeland
General Manager
Residential Mortgage of South Carolina, LLC
427 Johnnie Dodds Rd.
Mount Pleasant, SC 29464
www.residentialscdailyrates.com
Competitive by nature...the Best by choice!
One of the many nice things about living in the Charleston, SC area
This might date me somewhat but I want to draw your attention to an event that happened with very little fanfare of discussion. It is a further example of the change that surrounds us daily and how it goes unnoticed.
November 17, 2009 marked the end of the FHA Streamline refi. Although technically we still have a FHA Streamline product here are a few of the changes:
Old FHA Streamline allowed for No appraisal, no max LTV, no income verification, no asset verification, credit scores unimportant, fast closings. If you had an FHA mortgage and wanted to lower your payment without going through the entire verification process you could. It was a very consumer friendly product.
New FHA Streamline allows for a new appraisal (not required but "advised"), 97.75% max LTV, income verification, asset verification, credit scores do matter, must be able to qualify, no fast closings.
In 1988 FHA eliminated its non-owner occupied loans. Then in December 1989 FHA eliminated its non-qualifying assumable mortgage. I can remember the discussions that took place among loan officers, how this would change the landscape of FHA loans, the advantages of FHA mortgages. Well, 20 years later it turned out FHA probably did the right thing and the program has continued to assist buyers with limited cash on hand and good credit. Somehow I can't help but think the impact of the "New FHA Streamline" will have a different affect. How different, only time will tell.
HAVE A GREAT DAY!!!
Kevin M. Breeland
General Manager
Residential Mortgage of South Carolina, LLC
427 Johnnie Dodds Rd.
Mount Pleasant, SC 29464
www.residentialscdailyrates.com
Competitive by nature...the Best by choice!
The New GFE and HUD-1 are coming, make no mistake about that. Regardless of what you have heard about delays, changes, or my personal fav "this will never happen" get ready...it is happening and it is happening January 1, 2010. As a Realtor what do you need to do in order to be prepared for these changes?
In order to keep this simple and in the spirit of the length of a blog I am going to give you some tips I think are important to navigate the potential dangerous waters ahead.
First, the New GFE puts a tremendous amount of responsibly on the loan officer to give the customer an accurate quote. Ask you loan officer these questions:
1. If he or she is prepared for the New GFE?
2. What training they have been receiving?
3. Are they prepared to sit down and explain it to you?
4. Have the received the software changes or do they know when they will?
5. If they are a mortgage broker have they heard from their network of lenders on how they want the New GFE completed?
6. If your loan officer seems to not know what you are talking about, please look for another loan officer.
With the New GFE and HUD-1 there will be confusion, make no mistake about that. If confusion exist, and it will, that does not mean you should shop your loan officer. What you are looking for is making sure your loan officer is aware of these changes, have heard of these changes, and is being trained about these changes. If these things are occurring then your loan officer is doing as well as any of can right now.
HAVE A GREAT DAY!!
Kevin M. Breeland
General Manager
Residential Mortgage of South Carolina, LLC
427 Johnnie Dodds Rd.
Mount Pleasant, SC 29464
www.residentialscdailyrates.com
Competitive by nature...the Best by choice!
This is very important information about rates and is right on with what to expect going forward.....short translation.....don't think you have the markets figured out.....rates are going to rise, they have too....there is no other place for them to go but up. Rates will start rising soon regardless of what the "experts" are saying. Here are some critical pieces outlining the increase in rates.
Our Government has been very busy over the past few months monetizing our debt. Remember, the deficit is predicted to be, depending on who you talk to, between $1 Trillion to $1.5 Trillion. Yes I said Trillion (12 zero's after the 1). The auction results tells bond traders exactly what the worlds appetite is purchasing America's debt. Yesterday, it was not too good. This is important to watch closely because as purchase of our debt goes, so goes our dollar, so goes the potential of inflation, so goes the value of Mortgage Backed Securities. Finally, the major purchaser of MBS over the past year has been the New York Fed (our government). As the government weans itself off of MBS that has to be replaced somehow with new investors entering into the market. The reason why the government committed to $1.25Trillion in MBS is because there was not a market for MBS. The Government has been trying to create a market and apparently they believe they have been successful in that endeavor. Only time will tell if that is indeed the case.
Yesterday Mortgage Bonds fell after the not-so-good auction results but were able to rally despite a rosy outlook from the Fed statement. The outlook of low rates for some time and low inflation could have been the catalyst behind the move higher. If you dig deeper into the statement it revealed that the Fed will draw out the remaining commitment of the $1.25T MBS purchase program until the end of the 1st quarter of 2010. In the 1st quarter of 2010 the New York Fed will purchase Mortgage Bonds every other week, instead of every week that is currently being done. The New York Fed also said it will start to reduce its purchases this week. There will be no additional funds added to the allotted amount but just a longer weaning off of the program - mortgage rates should gradually increase during the transition period. Today the government is auctioning $29B 7-year Notes.
So as you look deeper into this you can clearly see the Government is now starting there exit strategy. This day has always been coming....be prepared it is here.
Kevin M. Breeland
General Manager
Residential Mortgage of South Carolina, LLC
427 Johnnie Dodds Rd.
Mount Pleasant, SC 29464
www.residentialscdailyrates.com
Competitive by nature...the Best by choice!
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