Posted To: MBS Commentary

It hasn't received as much air time these days, but the range trade and technical price levels are still very much in play. That has to do with the slightly less paradoxical directionality these days. Markets have tended to move in the direction suggested by data to a much greater extent than the summer months that saw the release of our hit single "Day Trader's Paradise…" Mortgages started off the day significantly weaker to tsy but rallied a lot harder into the noon hour. The highs of the day coincided with the upper limit of the trend channel we've been riding all week. After bouncing shortly thereafter at 101-27, weakness ensued through the close but never managing to bring prices below this AM's lows or yesterday's lows. In fact, we're only 2 ticks off…(read more)

Posted To: MBS Commentary

Heeeeeeeeeading into the 5 pm marking period… The FN 4.0 is trading -0-04 at 99-09 yielding 4.084% and the FN 4.5 is bid -0-02 at 101-23 yielding 4.294%. The secondary market current coupon is 4.137%. The CC is +77/10yr TSY and +67/10yr swap. It has been a choppy day… 10s went out selling with most of the flows taking place early is the session within the 119-16 to 119-21 price range. This is where most of the trading volume was "accummulated" and "distributed". This is our 3.32 to 3.37 range. See chart below. Range intact, but we are testing it's lower limits as we head towards option expiration on Friday. Lock Bias Still On…. Anyone see the changes to THIS? Consistent with the continued evolution of the program's operation, the New York Fed will begin in…(read more)

Posted To: MBS Commentary

Rather than dismiss the trend of lower yields in tsy's as more likely to stop at 3.32, perhaps we should have focused our analysis on what yields might do on the upside! For now, however, both MBS and the 10yr movements are simple if not elegant examples of the technical levels we discussed this AM. You get resistance from the downtrend at the red circle and resistance at 101-27 at the white circle… Tsy's are worse off today… In fact, yields are approaching the unfriendly side of their trend… We watch, wait, and place bets on where the next bounce will be… I think we break upside support in 10yrs, but stay under 3.38+ support. Any takers? (just opinion, you're free to disagree) Any other bets? Oh yeah, and MBS'll probably have to follow suit to some extent meaning some…(read more)

We are getting a lot of questions in our Mortgage Questions section and over the next few weeks either here or on one of my three blog sites, No Money Down, FHA Loans and Eugeneloanguy I will be answers some of the questions posted. I am hoping that by answering questions posed by the public we can get better information out there than what we have been seeing on the internet. There are a lot of myths and fallacies on the internet, just take a look a previous post of mine to see what I am talking about. This particular question has to do with closing costs and a USDA loan. I hope this series helps.

Will It Hurt Me If I Have A Family Member Deposit A Check Into My Bank Account For Closing Costs?

November 18, 2009

I am buying a house and the lender needs proof(bank statement) that I have enough to cover closing costs. A family member is going to help pay closing costs. Will it hurt me when they look at my bank statement and see that the amount to cover closing costs came form a family member? Its a USDA Rural Housing Loan.

A USDA Guaranteed Mortgage, like an FHA loan allows you to receive gifts from family members for down payment and closing costs associated with a loan. The important thing to remember is that the lender will want to see a paper trail for the gift. That means that you will need the deposit slip for the gift, a copy of the check for the gift, and most often a copy of the bank statement from the donor showing the ability to give the gift. There is also a gift letter that will need to be signed by the recipient and the donor. Except in very limited circumstances, cash is not acceptable.

If you have questions about USDA procedures or are ready to start the loan process, give me a call today at 541-342-7576/541-221-3455 cell or e-mail me. I am here to help you through this process.

---

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: Mortgage Rate Watch

In a volatile session, mortgage rates ended yesterday's session unchanged as a small rally in benchmark Treasuries helped support the MBS market. Following weaker than expected economic data in the morning, rates rallied. However as profit taking took place later in the day, early session strength was lost and MBS prices returned to opening levels. Overall, even though prices moved about a relatively wide range, rates remained unchanged on the day. The Mortgage Bankers’ Association this morning released their weekly applications index. This data tracks the weekly change in the amount of mortgage applications at major lenders. An increasing trend is positive for the economy in two ways. First, more home purchases leads to more home construction and consumer spending as the home buyer…(read more)

Posted To: MBS Commentary

Despite MBS performing slightly better than tsy's at the moment, the general theme of the week has been to hold steady while tsy's rally. The 3 day chart of this week's price movements so far does an amazing job of conveying this. We have the constantly revisited internal trendline (also the weekly MEAN, also the weekly MEDIAN! Could it be important?) of 101-27. Looking at that perpetual search for the center in the context of generally bearish price movements on the week and the generally bullish movements in tsys, the picture rapidly comes into focus. But our friend Astro only need worry about MBS to whatever extent spreads continue to widen as the downward sloping trend channel is a product almost exclusively of that widening and not some broader weakness in bonds (as you'll…(read more)

Posted To: MND NewsWire

The Commerce Department released October New Residential Construction: Building Permits, Housing Starts, and Housing Completions data this morning. Housing Starts data estimates how much new residential real estate construction occurred in the previous month. New construction means digging has begun. Adding rooms or renovating old ones does not count, the builder must be constructing a new home (can be on old foundation if re-building). Although the report offers up single family housing, 2-4 unit housing, and 5 unit and above housing data, single family housing is by far the most important as it accounts for the majority of total home building. Building Permits data provides an estimate on the number of homes planning on being built. It tracks how much future construction activity we can expect…(read more)

Posted To: MND NewsWire

The Mortgage Bankers Association today released the Weekly Survey on Mortgage Application Activity for the week ending November 13, 2009. Housing is a key component of economic forecasts, thus real estate surveys and housing data are closely scrutinized by policy makers. The Mortgage Banker's application survey covers over 50% of all US residential mortgage loan applications taken by mortgage bankers, commercial banks, and thrifts. The data gives economists a look into consumer demand for mortgage loans. A rising trend of mortgage applications indicates home buying interest is increasing, a positive for the housing industry and economy as a whole. Furthermore, in a low mortgage rate environment, a trend of increased refinance applications implies consumers are seeking out a lower monthly…(read more)

Posted To: Pipeline Press

My 86-year old Dad caught me taking a nap over the weekend. Not one to miss an opportunity, he said, "You practically invented lazy. People should have to call you and ask for the rights to the word "lazy" before they use it." That's my Dad… Lock Desk personnel are seldom lazy, and in fact are often the unsung heroes of mortgage banking since they are in the frontline on pricing and program issues. Last week they had a little more time on their hands, since the volume of mortgage applications filed last week fell a seasonally adjusted 2.5% from the week before . Refinancing was down 1.4%, and purchases were down 4.7%. The MBAA survey, which covers about half of all US retail residential production, supports the Wall Street belief that origination, and loan sales, have…(read more)

Posted To: MBS Commentary

Happy Hump Day Recap of Yesterday October Producer Price Index +0.3%. Core Prices -0.6%—much weaker than expected. Strength: Energy +1.6%, Food +1.6%. Crude goods +5.4%. Weakness: +0.3. Cars -0.5%, light trucks -5.2%, computers -0.3%. Rising commodity prices to blame for higher raw material costs. September TIC Data: strong foreign buying of US Treasuries +$44.7 billion in September. That is huge increase. MBS and Agency debt -$1.8 billion. That is small decrease. Overall a good read on demand for US debt, Treasuries clearly preferred over MBS. China was the biggest supporter of TSYs…taking in over $15 billion. Oct Industrial Production: +0.1% vs. +0.6% in Sept. Worse than +0.4% consensus. Autos -1.7% vs. +8.1% in Sept Oct Capacity Utilization at 70.7, highest since January. NAHB expects…(read more)