Posted To: MBS Commentary

After a slightly better than expected 10yr auction, MBS succumbed to a back up in treasury yields. The auction results were not "better enough" to justify the lower yields of the morning's short covering rally in tsy's that saw 10yr yields fall as low as 3.435. After a few moments of indecision, both markets worsened significantly, but not severely as 10yr yields backed up to 3.5+ while MBS fell as low as 100-31. At final marking, 4.5 MBS was up 2 ticks at 101-05, still well over critical support at 100-28+, but taking a noticeable step back from resistance at 101-10+, thus setting up an interesting range to watch tomorrow. The 10yr also did a dance with technically significant price levels after finding support at the long term 3.5 level (also short term in the sense that…(read more)

Posted To: MND NewsWire

The Treasury Department announced Tuesday morning that its Making Home Affordable Program (HAMP) now has more than 650,000 mortgage modifications underway, a number that puts it on track to meet its goals over the next few years. The report, which provides data on the program through October 31, is the first to provide state specific numbers on program participation. The numbers of trial modifications processed through the program has increased dramatically each month since the program's inception early last spring. At the end of May only 50,130 borrowers were in the program; by the end of September the total was 487,081 and at the end of last month there were 650,994 loans in process. Slightly more than 900,000 borrowers have been offered trial plans compared to 758,000 last month and…(read more)

Posted To: MBS Commentary

Heading into the 5pm " 24 hours from now Melky Cabrera will be signing autographs at the Macy's in Herald Square " marking period…the FN 4.0 is trading +0-02 at 98-19 yielding 4.146% and the FN 4.5 is +0-02 at 101-05 yielding 4.359%. The secondary market current coupon is 4.253%. That quote has no relevance at all to the mortgage market. More than anything I found the following Macy's sales marketing strategy very sneaky. Apparently, you can have your picture taken with Melky as long as you are one of the first 250 people to buy at least $50 in Yankees championship gear!!! Good gimmick Macy's, good gimmick. As you can see below, the FN 4.5 has been slowly, but steadily, losing ground into the afternoon… Several lenders have already repriced for the worse… Over on…(read more)

Posted To: Voice of Housing

What a difference 18 months can make. Need an example? Look no further than recent news from the GSEs that lenders are thumbing their noses at repurchase and reimbursement requests in record numbers. As reported in their quarterly filings, Fannie Mae and Freddie Mac are seeing an increase in the number of lenders not honoring agreements to repurchase loans that breached representations about the eligibility and quality of loans they sold. While this is not uncommon in the current economic environment, there is noticeable difference : Lenders have told us that the GSE’s are showing a new toughness when it comes to auditing non-performing loans. Once a material breach is uncovered, GSEs make a repurchase demand requiring the seller/servicer to buy the loan back from the GSE at par, regardless…(read more)

Los Angeles County FHA loan limits allow for a total loan amount of $742,520 with the up front mortgage insurance premium financed into the loan.  I closed a $950,000 purchase last week with this loan amount for a first-time buyer.  The FHA rates were lower than the High Balance Conforming rates and the buyer was allowed to get FHA gift money from his brother.

Throughout California, and particularly in high cost areas, like Claremont, Glendora, Arcadia and in Orange County, homebuyers are realizing that the flexibility of FHA loans is paramount to taking advantage of this current market, especially with the extension of the Homebuyer Tax Credit.  While gift money is just that, and not a loan, the tax credit will allow for many buyers to “repay” the family members that may have helped them buy when they take the tax credit in 2010. 

FAQ

• Why would someone do an FHA loan with mandatory mortgage insurance if they can put 20% down, as in the case above?

             The rate was lower so it just about compensated for the monthly mortgage insurance payment.  FHA also has the Streamline Refinance feature which allows for the borrower to drop their rate easily and cheaply in the future.  FHA allowed the borrower’s brother to “invest” in the property with his gift donation.  Real estate is an investment and in this case it was much easier to use FHA and not have to get his brother approved for any part of the loan at all.

——————–

Top Articles / Links / Questions:

1. FHA Loan Limits – Upland, CA
2. FHA Seller Paid Closing Costs – Upland, CA
3. California Investment Property With an FHA Loan
4. What Is FHA Gift Money?
5. The Trouble With FHA Loans in California

——————–

Brian Wiesner California FHA Mortgage Expert Monaco Mortgage Corporation Toll Free: 866-343-1579 Direct: 909-581-4075

---

Copyright © 2008
This feed is for personal, non-commercial use only.
The use of this feed on other websites breaches copyright. If this content is not in your news reader, it makes the page you are viewing an infringement of the copyright. (Digital Fingerprint:
)

Posted To: MND NewsWire

We've been getting a lot of questions about the particulars of the Home Buyer Tax Credit Extension. While I wish we could take credit for the abundance of information below, we can't. However, we can point you towards the source. We hope you find these resources useful. The NAR has been all over the legislation. Below is a list of questions and links to the NAR's answers. The Basics of the Extended Home Buyer Tax Credit 2009/2010 Who Qualifies for the Extended Credit? Which Properties are Eligible? How Much is Available? How is a Buyer's Credit Amount Determined? If a Buyer's Income Exceeds the Limits, Can they Still Get a Credit? Can a Buyer Still Qualify If They Close After April 30, 2009? Will the Tax Credit Need to Be Repaid? HERE are answers to the above questions….(read more)

Posted To: MBS Commentary

Since the previous lock alert, the 10yr has coughed up a few more bps pushing yields up to yesterday's 10AM marks at 3.5+. Volume has spoken up in support of those levels however and MBS have consequently stabilized at 101-00. But stabilized is a relative term following tsy auctions. It's possible that yields are more or less "where they want to be" after the necessary short covering at this auction, but with slightly stronger than expected auction results, the post auction yield increase is not as severe as it might have been. Bottom line: even though we've seen and may continue to see a reprice or two, today's results suggest a range and shouldn't lead to any shift in trend. On the fence again and importance shifts to Thursday's 30yr auction. The primary…(read more)

Posted To: MBS Commentary

Here are the vital components of the 10yr refunding auction results 25 bln was record amount high yield at 3.470 (on the screws) 82.49 % of bids taken at high yield Bid to Cover of 2.81 - better than last 10yr auction Primary dealers and indirect bid more or less split the pie with 11.94 and 11.73 bln respectively Since the auction the 10yr note has not moved any higher than 3.475. Conversely it has not moved lower than 3.465. If you had to divine a guess at directionality based on what's happened so far, yields look more predisposed to go higher than lower. That would suggest locking at this point for deals on the fence. But volatility is the rule, not the exception following auctions, so this is no guarantee we won't bounce off support around 3.48+ before moving lower in yield on…(read more)

Posted To: Mortgage Rate Watch

While the dollar touched a 15 month low and stocks hit a fresh 13 month high yesterday, the bond market minded it's own business, quietly trading in a tight range, ending the session near the intraday price high/yield lows. This calm and collected recovery in benchmark rates helped prices of mortgage backed securities move slowly but steadily higher on the day. With the economic data calender having nothing new to offer, the Treasury market benefited from a very strong auction of 3 year Treasury notes. Following the auction, MBS prices rallied on, allowing a few lenders to reprice for the better by day's end. Like yesterday, today's econ calendar is data free, however, a few Fed officials are speaking which can always generate conversation in the marketplace. First, Atlanta Federal…(read more)

$8,000 First-time Home Buyer Tax Credit at a Glance

*The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.

*The tax credit does not have to be repaid.

*The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

*The tax credit applies only to homes priced at $800,000 or less.

*The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

*For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.

*For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance

*To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.

*The tax credit does not have to be repaid.

*The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.

*The tax credit applies only to homes priced at $800,000 or less.

*The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.

*Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

These are highlights of the Tax Credit. To discuss a particular scenario or to be pre-approved for a purchase loan, contact me Jerry Santoro @ 8660970-3400 ext 310. or @ gsantoro@fcbmtg.com

My “Team” and I look forward to the opportunity to earn your business!

---

Copyright © 2008
This feed is for personal, non-commercial use only.
The use of this feed on other websites breaches copyright. If this content is not in your news reader, it makes the page you are viewing an infringement of the copyright. (Digital Fingerprint:
)