Archive for April, 2009
Orange County home building 77% below ‘worst ever’
Posted by Chas W. Leeper, SRA in Help for Buyers, Sellers & Homeowners, Help for Realtors / Brokers on April 30th, 2009
Marilyn Kalfus, O.C. Register
Just 269 new building permits for residential housing units were issued in Orange County in the first quarter of this year — 77% fewer than the 1,166 granted for Q1 in 2008. And last year saw the fewest housing starts since 1946.
California Building Industry Association stats show that in March, 112 permits were issued for single family homes in Orange County; none for multi-family residences. That compares with 54 single family home starts and two multi-family permits given in February.
Overall in the first quarter, 232 single family homes and 37 multi-family permits were issued.
Elsewhere:
- New-home construction in the state was up significantly in March compared to February. CBIA said it was a “clear sign that the homebuyer tax credit enacted in the beginning of March is helping to clear out inventory and generate new-home construction.”
- According to statistics compiled by the Construction Industry Research Board, 3,317 permits were pulled throughout California during the month of March, down 31 percent when compared to the same month a year ago but up 39 percent from February.
Robert Rivinius, CBIA’s President and CEO, said the tax credit has increased building sales, but he said that more needs to be done to keep the momentum going. “We believe a second round of the tax credit to extend it further would be extremely helpful in keeping the momentum going and reinvigorating the overall economy,” he said.
The industry research board is now forecasting permits will be pulled for just 44,400 total units statewide in 2009, which would be by far the lowest total on record, down 31 percent from the record-low 64,752 units produced in 2008.
Real Estate Brokers OK’d to negotiate loan mods
Posted by Chas W. Leeper, SRA in Help for Realtors / Brokers, Help for mortgage pros on April 30th, 2009
600 California brokers can collect advance fees
By Inman News
The number of real estate brokers authorized by California regulators to collect advance fees for negotiating loan modifications and short sales on behalf of homeowners has grown from less than two dozen in mid-November to almost 600.
California requires real estate brokers who negotiate with lenders to enter into agreements with borrowers detailing the services they will provide if they plan to collect their fees upfront. Fees collected in advance are placed in a trust account can only be drawn down as services are performed.
FNMA answers questions about HVCC updated 3/09
Posted by Chas W. Leeper, SRA in Help for mortgage pros on April 29th, 2009
Home Valuation Code of Conduct Frequently Asked Questions (FAQs)
Updated March 2009
To help enhance the integrity of the home appraisal process in the mortgage finance industry, in March 2008, Fannie Mae entered into an agreement with our regulator – the Federal Housing Finance Agency (FHFA) (then the Office of Federal Housing Enterprise Oversight) – and the New York Attorney General’s office to adopt certain policies relating to appraisals for loans delivered to us. Following a public comment period, the Home Valuation Code of Conduct has been modified and will be effective for single-family mortgage loans (except government-insured loans) that are originated on or after May 1, 2009, and delivered to Fannie Mae.
Scope of Coverage
What loans are affected by the new Home Valuation Code of Conduct?
Fannie Mae has agreed to adopt the Home Valuation Code of Conduct (”the Code”) for all conventional, single-family loans originated on or after May 1, 2009, that are delivered to Fannie Mae. For purposes of the Code, origination date means the date of the application. The Code will not apply to multifamily loans, or to loans insured or guaranteed by a federal agency; the Code only applies to 1- to 4-unit single-family loans sold to Fannie Mae. The Code will not apply to loans sold to Fannie Mae on or after May 1, 2009 that were originated prior to May 1, 2009.
What are the professional requirements for an appraiser under the Code?
The Code requires that an appraiser must be licensed or certified by the state in which the property to be appraised is located.
Does the Code allow an appraiser to update an appraisal for another lender?
Yes. The Code does not prevent an appraiser from performing an update of an appraisal for another lender.
Does the Code apply outside of New York State?
Yes. There is no geographic limitation.
Who besides Fannie Mae has agreed to adopt the Code? Are the Federal Home Loan Banks participating? The FHA?
As of this date, only Fannie Mae and Freddie Mac have agreed to adopt the Code.
After May 1, 2009, is it permissible for Fannie Mae to purchase private label securities backed by mortgage loans that do not meet the requirement of the Code?
Yes. The Code applies only to 1- to 4-unit single-family loans sold to Fannie Mae by mortgage originators. It does not extend to Fannie Mae’s investments in mortgage-related securities.
Does the Code require lenders to obtain appraisals where they were under no such requirement pursuant to the Fannie Mae
Selling Guide?
No, nothing in the Code requires a lender to obtain a property valuation, or to use any particular method for property valuation. Nor does the Code affect the acceptable scope of work for an appraiser in connection with a particular assignment.
How does Section I.B.(8) impact how lenders may remove appraisers from a list of qualified appraisers?
Section I.B.(8) addresses the removal of an appraiser from a list of qualified appraisers in connection with influencing or attempting to influence the outcome of an appraisal. Any such removal would be subject to the requirements of the process outlined in that section. However, Section I.B.(8) does not preclude the management of appraiser lists for bona fide administrative reasons based on written, management-approved policies. Also, Section IV.B.(6) provides for lenders to have written policies and procedures implementing the Code including rules on appraiser independence, and to have mechanisms in place to report and discipline anyone who violates these policies and procedures.
Does Section I.B.(9) specifically prohibit a lender from ordering a second appraisal?
No. Section I.B.(9) only prohibits a lender from ordering a second appraisal when they are attempting to influence the outcome of the first appraisal and are now “value-shopping.” As a risk control measure for certain loan products, it may be common for a lender to order more than one appraisal, and this subsection does not prohibit that practice.
Does the Code specifically prohibit communication with an appraiser by a real estate agent?
No.
Does Section II of the Code require the lender to provide the appraisal free of charge?
No. The Code requires the lender to provide, free of charge, a “copy” of any appraisal report completed in association with a specific loan. The lender may require the borrower to reimburse the lender for the cost of the appraisal.
What is the time frame for providing the “copy” of the appraisal?
The lender must provide the copy promptly upon completion of the appraisal, but no less than three
business
days prior to closing. The lender may use any means to provide the copy, including but not limited to via mail, e-mail (electronic message), overnight delivery, etc., as long as the borrower receives the copy no less than three business days prior to closing.
How is the lender required to provide the borrower with a copy of the appraisal?
The Code does not provide a specific method of delivery. The lender is responsible for ensuring that the borrower receives a copy of the appraisal.
Section II of the Code allows the borrower to waive the three-day requirement for receiving a copy of the appraisal. What is an acceptable procedure if the borrower chooses to waive the three-day requirement?
The lender is responsible for establishing a process and procedure for documenting the borrower’s waiver of the three-day requirement.
Does the Code prohibit an appraiser from collecting payment for the appraisal directly from the borrower?
Yes, for loans to be delivered to Fannie Mae. The Code requires the lender or any third party specifically authorized by the lender to select, retain, and provide for all compensation to the appraiser.
Who should be considered the “loan production staff” for purposes of achieving appraiser independence?
The term “loan production staff” is not defined in the Code. However, the FAQs prepared by federal agencies on the agencies’ appraisal regulations specify as follows:
“The loan production staff consists of those responsible for generating loan volume or approving loans, as well as their subordinates. This would include an employee whose compensation is based on loan volume or the closing of a loan transaction. Employees responsible for the credit administration function or credit risk management are not considered loan production staff.”
What is the definition of a “correspondent” lender?
A “correspondent” is a third-party entity that may originate and underwrite the mortgage. The correspondent closes the mortgage in its own name with its own funds, and sells it to the lender. The mortgage is sold to Fannie Mae by the lender.
Does the Code apply to other valuation methods (i.e., automated valuation models [AVMs], broker price opinions [BPOs], tax assessments, etc.)?
No, the Code applies only to appraisals.
May lenders rely on appraisals ordered by settlement service firms?
Yes. Settlement service firms may order appraisals if they comply with the Code, Sections IV.C.(1) and (2).
Does the Code apply to a loan that is insured or guaranteed by a federal agency and ultimately sold to Fannie Mae (i.e., FHA or VA loan)?
The Code does not apply to loans that are insured or guaranteed by a federal agency, such as FHA and VA loans.
If a lender or appraisal management company maintains a legacy appraiser panel for which loan production staff may have recommended or influenced the selection of appraisers, is the lender required under Section III.B of the Code to reselect such panels prior to the May 1, 2009 effective date?
No, the Code does not require the lender to reselect appraiser panels; however, any legacy appraisal panel must comply with the provisions of the Code.
Does the Code apply to the Desktop Underwriter
® Property Inspection Report (Form 2075)?
No, Form 2075 is an inspection report. It is not an appraisal, and therefore the Code does not apply.
Does the Code apply to appraisals performed for loss mitigation?
The Code applies to loans originated and sold to either Fannie Mae or Freddie Mac. It does not apply to appraisals performed for loss mitigation purposes.
How will Fannie Mae audit compliance with the Code?
Compliance with the Code will be part of the lenders’ operational review.
Section IV.E. of the Code allows an exception to Section IV if the Seller meets the definition of a “small bank” and Fannie Mae determines the Seller would suffer a hardship due to the provisions of Section IV of the Code. What are the requirements for this provision?
An institution falls under the provisions of Section IV.E. of the Code if it is a seller/servicer of Fannie Mae, a regulated financial institution with asset values as specified in 12 U.S.C. §2908, and meets the requirements, if any, of the institution’s regulatory agency regarding the Interagency Appraisal and Evaluation Guidelines (SR Letter 94-55 and revisions). As with the entire Code, this provision is subject to Fannie Mae’s representations and warranties. Sellers falling under Section IV.E. are still required to comply with the remainder of the Code, including Section III, which duplicates many of the requirements of Section IV.
Is a Seller required to submit documentation to Fannie Mae to take a Section IV.E. exemption?
Fannie Mae does not require a Seller to submit documentation to become exempt pursuant to Section IV.E of the Code. A Seller claiming this exemption, however, represents and warrants that it meets the criteria of Section IV.E.
Is the definition of application date the actual date of the application or the date of receipt of the application by the lender?
The application date is defined as the date the borrower(s) signed the application certifying that the information is correct.
Selection of an Appraiser
When selecting an appraiser, may lenders use a pre-approved appraiser list or panel?
Yes. Lenders may use a pre-approved list or panel to select a residential appraiser, provided that (1) any employees of the lender tasked with selecting appraisers for the list are independent of the loan production staff; and (2) the loan production staff is not involved in selecting appraisers off the list for particular appraisal assignments.
May a servicer use an affiliate company to order appraisals for borrower-initiated private mortgage insurance cancellation based on current value?
Yes. The Code does not apply to appraisals for cancelling mortgage insurance based on current value. The Code is specific to “a mortgage financing transaction,” and cancellation of mortgage insurance is not “a mortgage financing transaction.” The Fannie Mae
Servicing Guide
states that “To determine the current appraised value of the property, the servicer must select an appraiser, order a new appraisal (which must be based on an inspection of both the interior and exterior of the property and be prepared in accordance with our appraisal standards for new mortgage originations).”
Some lenders have proprietary automated origination systems that include a process for ordering appraisals. How does the Code impact those systems?
The lender must review its systems to ensure that the selection of appraiser process is in compliance with the provisions of the Code.
In-House Appraisers
May in-house appraisers prepare appraisal reports?
Yes, in-house appraisers may prepare appraisal reports if the conditions of Section IV.B. are met.
May a lender’s in-house appraiser adjust the value on an appraisal during an appraisal review as part of a pre-funding or post-funding quality control process?
Yes, a lender may use an appraisal that has been adjusted by an in-house appraiser during a review process. The Code does not prohibit the underwriting of an appraisal by a lender’s underwriting staff. The Code does not prohibit a lender’s due diligence in originating a loan.
May a correspondent lender use in-house appraisers?
Yes, a correspondent lender may use in-house appraisers if they meet the criteria in Section IV.B. of the Code.
Are any institutions excluded from these restrictions on the use of in-house appraisers?
Yes. Please refer to Qs 25 and 26.
Appraisal Management Companies (AMCs)
Is a lender required to use an AMC for ordering appraisals?
No. A lender may order appraisals directly from an individual appraiser.
May an AMC affiliated with, or that owns or is owned in whole or in part by the lender or a lender-affiliate, order appraisals?
Yes, an AMC affiliated with, or that owns or is owned in whole or in part by the lender or a lender-affiliate, may order appraisals if the AMC meets the criteria of Section IV.B. of the Code.
May a lender direct a mortgage broker to a specifically authorized AMC that will receive information from the broker about the loan application and begin the appraisal process?
Yes, as long as the lender has previously arranged for its appraisal process to be managed by the specifically authorized AMC. This process is compliant with the Code because the broker is not responsible for selecting, retaining, or providing for payment of compensation to the appraiser.
May a lender that uses a group of specifically authorized AMCs direct a broker to use a specific AMC from the group to submit information about the loan application and begin the appraisal process.
Yes. As stated in the answer to Q37, this process is compliant with the Code because the broker is not responsible for selecting, retaining, or providing for payment of compensation to the appraiser.
May a lender order an appraisal by directing a broker to select an AMC from among a group of specifically authorized AMCs, one of which would receive information from the broker about the loan application and begin the appraisal process?
No. Such a process would give the broker an element of responsibility for selecting or retaining the appraiser, and therefore would not be compliant with the Code.
May a lender direct a broker to use a web portal set up either by the lender, or by the lender’s authorized agent, through which the broker inputs a request for an appraisal and then triggers the lender’s system to order an appraisal?
Yes.
Mortgage Brokers
May a lender accept an appraisal prepared by an appraiser that was ordered by a mortgage broker?
No. The Code does not allow a lender to accept an appraisal prepared by an appraiser that was ordered by a mortgage broker as noted in Section IIIA. of the Code.
May a mortgage broker provide the lender with an approved appraiser list for the lender to use when ordering appraisals for that particular broker?
No.
May a mortgage broker order an appraisal directly from an AMC that was specifically authorized by the lender?
The Code prohibits brokers from ordering appraisal services, but brokers may initiate the appraisal process on a lender’s behalf in accordance with arrangements made by the lender. See Q37 for details.
Does the Code permit a mortgage broker to select an appraiser from the lender’s list of approved appraisers, if the lender is responsible for the relationship with the appraiser, including compensation?
No. The Code prohibits lenders from relying on an appraisal where the broker had a role in selecting, retaining, or compensating the appraiser.
Portability of the Appraisal
May an appraisal be transferred to a lender from a correspondent lender and, if so, under what circumstances?
Yes, a lender may accept an appraisal from a correspondent lender that complies with the Code.
A mortgage broker submits a loan to lender A, which orders an appraisal. The broker later decides to submit the loan to lender B because it is offering better terms, or for another reason. May the appraisal obtained by lender A be used by lender B (assuming the mortgage broker has no control over or involvement in the assignment)?
Yes, a lender may accept an appraisal from a different lender that complies with the requirements of the Code and in particular Section III.A. in connection with the loan being originated. Lender A must be named as client on the appraisal report.
Lender A (an approved Fannie Mae Seller/Servicer) originates and closes a loan in its name, but sells it to lender B (another Fannie Mae approved Seller/Servicer), which in turn sells that loan to Fannie Mae. Is lender B under any obligation to obtain a new appraisal?
No. Lender B may buy a closed loan from Lender A and sell the loan to Fannie Mae without a new appraisal if Lender B can represent and warrant that any appraisal conducted in connection with the loan conforms to the Code.
Section III.A of the Code allows a lender to accept an appraisal prepared by an appraiser for a different lender, provided the lender: (1) obtains written assurances that such other lender follows the Code in connection with the loan being originated; and (2) determines that such appraisal conforms to its requirements for appraisals and is otherwise acceptable. Will Fannie Mae provide a standard form to the lender so that the written assurance can be documented?
Fannie Mae will not provide a standard form. The lender is responsible for documenting the written assurance from the other lender.
Can an AMC or a third-party designee provide the written assurance (referenced in Q48) or does the assurance have to come from the prior lender?
The assurance must come from the original lender.
Payment for the Appraisal
If the appraisal is ordered by the lender in a Code-compliant manner, are there any specific requirements about how the payment for the appraisal is transferred to the lender?
Except for the requirement that the broker may not be responsible for payment of compensation to the appraiser, the Code does not restrict how a lender obtains fees from a broker. So, for instance, a borrower may write a check to a broker, or provide their credit card information to a broker, for the broker to send to the lender or to an agent authorized by the lender.
Are borrowers precluded from providing payment for an appraisal to an AMC?
The Code does not prohibit a borrower from providing payment to an AMC; however, the borrower may not pay the appraiser directly for an appraisal.
Appraisal Review
Does the Code permit an underwriter or processor to contact an appraiser in order to request additional information, seek an explanation about a valuation, or to request a correction of an objective factual error in an appraisal report?
The underwriter or processor may communicate with an appraiser if they do not violate the requirements outlined in Section III.B of the Code.
© Fannie Mae. 2009 FM 0309 Page 7 of 8 © Fannie Mae. 2009 FM 0309 Page 8 of 8
Quality Control
Does the quality control requirement as noted in Section VI of the Code apply to all valuations completed by a lender or just those loans originated and sold to Fannie Mae?
The quality control requirement applies to all loans that were originated by the lender or acquired from a third party. It is important to note that our current quality control requirements, as noted in the
Selling Guide
, Part I, Section 301.01, Quality Assurance System, will satisfy the requirement of Section VI.
Does the Code require a lender to report appraisers to the applicable State certifying and licensing agency?
Yes, if a lender has reason to believe an appraiser is violating applicable laws or otherwise engaging in unethical conduct, they shall promptly refer the matter to the applicable board or agency.
Independent Valuation Protection Institute (IVPI)
What is the status of the IVPI?
The structure of the IVPI has not yet been determined and the IVPI has not yet been established. Therefore, the provisions in the Code regarding the IVPI are not yet effective.
View the Code on eFannieMae.com.
House Prices Climb Unexpectedly in February
Posted by Chas W. Leeper, SRA in Help for Buyers, Sellers & Homeowners, Help for Realtors / Brokers, Help for mortgage pros on April 29th, 2009
Pace of Decline in U.S. Home Prices Slows in February
Posted by Chas W. Leeper, SRA in Help for Buyers, Sellers & Homeowners, Help for Realtors / Brokers, Help for mortgage pros on April 29th, 2009
The S&P Case-Shiller home price index fell less than expected in February, although 10 of 20 metro areas still showed record rates of decline.
The S&P Case-Shiller Home Price Index fell to a reading of 143.17 in February again expectations for a decline to 142.80. January’s figure was revised down to 146.35 from an initial reading of 146.40.
The 20-city composite index posted a decline of 18.63%, slightly less than the 18.70% decline expected. The previous month’s decline was revised to -19.00% from an initially-reported 18.97% fall.
“While the declines in residential real estate continued into February, we witnessed some deceleration in the rate of decline in some of the markets,” says David Blitzer, Chairman of the Index Committee at Standard & Poor’s.
“We will certainly need a few more months of data before we can determine if home prices are finally turning around,” Blitzer said.
The three-month annualized rate of decline was 26.28% in February, compared to the -26.56% rate in January and the 24.71% fall in December.
Cleveland led the way in February with a 5.0% month-over-month decline, followed by Phoenix, which recorded a 4.5% decline. Sharp declines were also seen in Chicago, San Francisco, Detroit and Las Vegas.
The smallest monthly decline was seen in Dallas, with prices down 0.3% month-over-month.
On an annual basis, Phoenix saw the largest price declines, with prices down 35.2%, followed by San Francisco, where prices are down 31% on the year.
By Stephen Huebl
©CEP News Ltd. 2009
How Real Estate Agents Can Sell More Homes by Studying Demand
Posted by Chas W. Leeper, SRA in Help for Realtors / Brokers on April 29th, 2009
By Rob Minton
RISMEDIA, April 28, 2009-Over the last 12 months or so, many real estate agents have been forced to reinvent their businesses. Many real estate agents understand the need to change, but don’t know where to start or how to do it. This article will show you how to quickly reinvent your business around the best home sale opportunities in your marketplace.
To start, you must find the money in your market, which means you need to study demand. Most small businesses don’t study demand. They have an idea for a product or service and then run out and create it, and once the product is created, they attempt to sell it. This process is completely backwards and is one of the reasons why many new businesses fail.
Instead, you should try and sell the product or service first. If it sells, then work your tail off to build or create what you’ve sold. Don’t spend months creating something that may or may not sell. Short-cut the process by selling it first, and then follow the money.
The same holds true for you in your real estate sales business. Don’t decide to specialize in a certain market or segment of the market without studying the demand. One agent, in Ohio, told me they wanted to specialize in selling homes priced $400,000 to $800,000. Their reasoning was that they would make more commissions from a smaller number of home sales, which makes sense on the surface.
However, this agent should stop and make sure there is money in this segment of the market before moving forward. My research shows that this price point is probably the worst segment of the market to specialize in right now. Homes in this price range are not selling as the demand for these homes has all but disappeared.
Think about what would happen to this agent if they continued on with this market segment.
They would spend hours writing new advertisements to attract buyers and sellers. They would secure a few listings and then spend more money advertising these homes. They spend hours hosting open houses and broker opens. Months later, these homes wouldn’t sell and this agent would be frustrated and broke. To be successful today, you must study the demand in your market. Spend some time researching the following:
1. What types of homes are selling today?
2. What price ranges are most homes sold in?
3. What specific areas are these homes being sold in?
4. What types of homes are actually selling?
5. Who is buying these homes?
6. What agents are listing or selling these homes?
7. What are these agents doing to get clients?
Your MLS is a fantastic tool that can be used to research your market and study demand. Within an hour, you should be able to see what is selling and what isn’t. Don’t pay attention to homes listed for sale. Focus on sold properties, and study each one. See if you can spot any commonalities.
For example, right now foreclosures are what are selling. It’s been estimated that about 45% of sales in recent months have been foreclosed homes. This means that’s where the demand is. And if listing opportunities for REO properties are limited in your market, what about opportunities on the buyers side? Wouldn’t there be a demand from buyers for foreclosed homes?
Once you find this sort of demand, quickly engineer your business around this opportunity. This type of property or market segment might not be where you want to focus, but if you want to be successful, you don’t have a choice. You must follow the money. Otherwise, you’ll be fighting a losing battle.
Rob Minton reinvented his real estate sales business to sell 269 homes to a limited number of clients in one year and has written a very practical book on how real estate agents can sell more homes by representing foreclosure buyers.
Housing Affordability in California Reaches Record High
Posted by Chas W. Leeper, SRA in Help for Buyers, Sellers & Homeowners, Help for Realtors / Brokers, Help for mortgage pros on April 24th, 2009
The California Association of Realtors’ (CAR) Traditional Housing Affordability Index (HAI) measures the percentage of households that can afford to purchase the median priced home in the state and regions of California based on traditional assumptions.
The chart above shows the California Housing Affordability Index over the entire history of the series, quarterly from 1988:Q1 through 2008:Q4. In the fourth quarter of 2008, the index reached the highest level in its history, 43%, which means that 43% of California households can afford to purchase the median priced home with a 20% down payment and financing at the national effective average mortgage rate.
In some parts of California, the Housing Affordability Index is as high as 61% (Sacramento), 65% (High Desert), and 56% (Riverside/San Bernardino); and in some areas as low as 17% (San Francisco and Contra Costa) and 19% (Marin).
Long Term Fixed Mortgage Rates Drop Below ARMs
Posted by Chas W. Leeper, SRA in Help for Buyers, Sellers & Homeowners, Help for Realtors / Brokers, Help for mortgage pros on April 24th, 2009
Mortgage interest rates continued to inch downward during the week ended April 23 and long term fixed rates are now an out-and-out better deal than ARMs from day one.
Freddie Mac’s weekly Primary Mortgage Market Survey released this morning reported that the 30-year fixed-rate mortgage (FRM) averaged 4.80 percent with an average of 0.7 point for the week compared to 4.82 percent with 0.6 percent during the week ended April 16. The 30-year reached an all time low of 4.78 percent during the week ended April 2.
The 15-year FRM was unchanged this week, remaining at 4.48 percent. For two week in a row this rate has been at the lowest level in the 19 years Freddie Mac has tracked the 15-year FRM. Fees and points increased from 0.6 during the week of April 16 to 0.7.
Five year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) had an average contract interest rate of 4.85 percent with 0.6 point, down from 4.88 percent also with 0.6 point a week earlier. This is another new low for the hybrid which Freddie Mac began to report on in January 2005.
One-year Treasury-indexed ARMs averaged 4.82 percent, a decrease of 9 basis points from one week earlier. Fees and points dropped from 0.7 to 0.4.
Frank Nothaft, Freddie Mac vice president and chief economist commented on the survey; “Although long-term mortgage rates eased slightly this week, ARM rates remain elevated relative to those fixed-rate mortgages. For instance, interest rates for 1-year ARMs exceeded those for 30-year fixed-rate mortgages over the last two weeks; this is the first time this has happened since Freddie Mac began collecting data for ARMs in January 1984.
“The housing market is showing further signs of possible improvement. House prices rose for the second consecutive month in February, the first back-to-back increase since April 2007, according to the Federal Housing Finance Agency. Among the nine Census divisions, six experienced positive gains in February, led by a monthly increase of 3.8 percent in the Pacific Division.”
Fannie Mae reported its weekly yields for the week ended April 17 on Monday.
The conventional 15-year FRM was unchanged from the previous week at 4.07 percent while the 30-year FRM increased slightly from 4.39 percent to 4.40 percent.
Government guaranteed FHA and VA loans had an average yield of 5.53 percent compared to 5.52 percent a week earlier and one-year ARMs averaged 3.35 percent, down from 3.44 percent.
All Fannie Mae rates are quoted net of servicing fees.
Thanks to Morgagenewsdaily.com
Check to see if Fannie or Freddie ownes your home loan
Posted by Chas W. Leeper, SRA in Help for Buyers, Sellers & Homeowners, Help for Realtors / Brokers, Help for mortgage pros on April 23rd, 2009
I would highly recommend you check to see if fannie or Freddie owns your home loan. If your mortgage loan is owned by Fannie Mae or Freddie Mac, you may be eligible for a Home Affordable Refinance to take advantage of lower interest rates. Only loans owned or guaranteed by Fannie Mae or Freddie Mac are eligible. Your mortgage company can tell you who owns your loan, or you can contact Fannie Mae and Freddie Mac directly by clicking on the links below and completing the forms for each company.
Fannie Mae
|
Freddie Mac
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After finding out that your mortgage is owned or guaranteed by Fannie Mae or Freddie Mac, see if you are eligible for a Home Affordable Refinance by clicking on the button below.
Lowe’s Program for Realtors Benefits Both Agents and Consumers
Posted by Chas W. Leeper, SRA in Help for Realtors / Brokers on April 23rd, 2009
By Stephanie Andre
RISMEDIA, April 23, 2009-A Lowe’s Program for Realtors® member for the past four years, Jennifer Capurro can’t quite comprehend why anyone would not want to take advantage of the program-especially in tighter times like the present.
“I don’t understand why any Realtor wouldn’t be a member of the Lowe’s Program for Realtors,” says Capurro, a Realtor with RE/MAX Realty Affiliates in Reno, Nevada. “It doesn’t cost anything and to have someone else do my branding for me-and they give my clients discounts with little effort on my part-it’s a win-win.”
The Lowe’s Program for Realtors includes free, customized direct mail and e-mail pieces with 10% off coupons, 5% off discounts on gift cards, helpful tips, e-mails and videos from HGTV, and Inside Out, a personalized, monthly e-newsletter with information on buying, selling and moving tips.
A fan of the 5% discount on gift cards, Capurro uses the gift cards to send an annual mailer to her past clients, offering them a little bit of help on buying the small things-all with the intent of keeping herself front of mind. “I’ll send them a mailer with the gift card that says, ‘Remember to change the batteries in your smoke detectors’,” she explains. “Generally, it gets me a nice ‘thank you.’ My clients are going to need supplies-big or small-so why not help them by giving them a small gift to use at Lowe’s?”
The discounts on the gift cards come in quite handy for Capurro, enabling her to save money while supplying her contacts with some helpful information and a bit of cost savings. “For me financially, the gift cards are the biggest benefit because they allow me to save some money while still taking care of my clients.”
In addition, Capurro uses the coupons as a tool to help her enroll buyers in the program. “What’s great about the direct-mail pieces is that they are partially branded to me-again, without taking a significant amount of time on my part,” she says. “My clients believe that I’m doing all the work and that it’s all directly coming from me-that, in itself, is worth enrolling in the program. The coupons are just one more point of contact that I can have with my clients-and that’s always a good thing.”
The Lowe’s Program for Realtors is free for Realtors and offers personal marketing tools from Lowe’s and the National Association of Realtors®.
For more information, visit www.lowesrealtorbenefits.com.