Government Employees / VA and FHA ... We are still closing loans ...

Government Shutdown and its impact to Loan Originations

The government shutdown has adversely affected two areas of mortgage originations across the industry.  Tax transcripts are not available for any borrowers and in many cases, it isn't possible to obtain a verbal verification of employment for government employees.

1^st Portfolio Lending’s Solution

While we wait for the political stalemate to end, we recognize the adverse effect not being able to obtain tax transcripts and verbal VOEs could have on our borrowers.  Fortunately, 1st Portfolio is doing business as usual and will hold the loan until the Government gets back to work.  

For Conforming, FHA, and VA loans eligible for sale to 1^st Portfolio, we will accept one year’s tax returns in lieu of transcripts, if our receipt of transcripts is delayed due to the shutdown.  We still will rely upon transcripts if they are available.  For Verbal Verification Of Employment, all attempts will be made to obtain them for government employees, but if we are unable to confirm employment due to the shutdown, we will not delay or cancel settlement.

We value our clients and appreciate the trust you place in us.  Call us today for help with your next mortgage.

Robert F. Rosenbaum, Jr. 
The Rosenbaum Lending Group
1st Portfolio Lending Corp.
8300 Boone Blvd., Ste 200

Vienna, VA 22182
(703) 879-5200  Office
(703) 608-1110  Cellular
(703) 891-9815  Direct Fax
RRosenbaum@FirstPortfolio.com
http://www.MyTalentedLender.com
NMLS License: 649782
Notary Public

Kuntri Yonkwan

Loan Processor

(571) 327-2152 Office

(703) 564-9121 Fax

kyonkwan@firstphc.com

Please click HERE for our secure online application. 

It’s a good life!

Last week in review

Forwarded exclusively by:	Bob Rosenbaum The Rosenbaum Lending Group Office: (703) 879-5200 Email: Bob@MyTalentedLender.com website: www.MyTalentedLender.com NMLS#: 649782
Monday, September 23, 2013
What Happened to Rates Last Week? Mortgage backed securities (MBS) gained +130 basis points from last Friday's close which caused 30 year fixed rates to move to their lowest levels in the past 30 days. Mortgage backed securities were trading in a very narrow range until Wednesday's Federal Reserve Open Market Committee Meeting (FOMC). And they shocked bond traders by electing not to taper at that meeting.  While, our own internal survey showed that only 20% of over 4,000 originators polled expected a taper announcement, over 80% of bond traders and hedging operators did expect a taper announcement.  So, the fact that they made no taper announcement was unexpected by traders and a shock to the system.  As a result - MBS shot up just over +80 BPS just after the FOMC statement was released and then another +25BPS after Bernanke's press conference. Keep in mind that the Fed does not have to wait until their next meeting in December to take action.  The made it very clear that it is already part of their program - that they can change the size and nature of their asset purchase program ANY time that they want.  This has traders focused in on any economic news that would give the Fed enough ammunition to adjust their monthly bond purchases this year.  And this week we have some very big economic reports such as GDP, Durable Goods Orders and Consumer Confidence.  All of which will be very closely watched by traders.
Big enough to compete, small enough to care. To unsubscribe from TBWS Rate Alert e-mails, please click here. Please do not reply directly to this e-mail. TBWS Rate Alert will not receive any reply message. For questions or comments, visit our Forums or Contact Support via SupportTeam@ratealert.com.

Forwarded exclusively by:	Bob Rosenbaum The Rosenbaum Lending Group Office: (703) 879-5200 Email: Bob@MyTalentedLender.com website: www.MyTalentedLender.com NMLS#: 649782
Friday, September 20, 2013
What happened yesterday? Mortgage backed securities (MBS) lost -11 basis points from Wednesday's close which caused 30 year fixed rates to move slightly higher. Initial Jobless Claims were much lighter than expected and the prior period was not revised upward as much as the market expected.  But traders largely ignored this report because the numbers are still tainted by the potential under reporting by two states. Existing Home Sales surprised to the upside coming in at 5.48 million units vs. market expectations of 5.25 million units.  Manufacturing in the Philly district was stronger than expected and the Leading Economic Indicators beat expectations.  The combined impact of these three reports was to pressure MBS lower. The stock market (DOW -40.39) and the MBS market (FNMA 4.0 -11BPS) once again moved in the same direction as they both sold off.
Big enough to compete, small enough to care. To unsubscribe from TBWS Rate Alert e-mails, please click here. Please do not reply directly to this e-mail. TBWS Rate Alert will not receive any reply message. For questions or comments, visit our Forums or Contact Support via SupportTeam@ratealert.com.

Refi?

Yep - I said "Refi" ... If you missed the boat earlier - you might be in luck. 

Mortgage Backed Securities are up on the Fed's news that they will not begin tapering at this time.  

Your best bet for refinance is to consider going from a 30 to a 15 year note.  That will get you the most bang for your buck.  

If you're in a VA loan - call me today about lowering your rate/payment with a Streamline Refinance (no income, no assets!).

Bring it on!  I'm ready to help as many people as I can.  

Robert F. Rosenbaum, Jr. 

The Rosenbaum Lending Group
1st Portfolio Lending Corp.
8300 Boone Blvd., Ste 200

Vienna, VA 22182
(703) 879-5200  Office
(703) 608-1110  Cellular
(703) 891-9815  Direct Fax
RRosenbaum@FirstPortfolio.com
http://www.MyTalentedLender.com 
NMLS License: 649782
Notary Public

Kuntri Yonkwan

Loan Processor

(571) 327-2152 Office

(703) 564-9121 Fax

kyonkwan@firstphc.com

Please click HERE for our secure online application. 

It’s a good life!

The Fed meets today ...

After showing negative numbers in the past month or so, the Mortgage bankers Association reported that its Market Composite Index, a measure of total loan application volume, rose by 11.2% in the latest survey. The refinance index jumped by 18% while the purchase index rose by 3%. The recent rise in home loan rates is one of the main reasons for the recent drop off in applications.

Over in housing news, the Commerce Department reported that Housing Starts rose by 0.9% from July to August to an annual rate of 891,000 units. That was below the 910,000 that was expected - July was revised lower to 883,000 from 896,000. Building Permits, a sign of future construction, fell by 3.8% to 918,000 units, below the 943,000 expected. However, there was a surge in single-family Permits, a sign that the housing recovery is continuing.

The Federal Reserve's long awaited monetary policy statement will be released this afternoon at 2:00pm ET. There is no chance of the Fed raising the benchmark Fed Funds Rate, currently at 0.25%. However, the Fed can start to ease back on the $85 billion per month in Bond purchases. The Fed could announce a $10 billion to $15 billion reduction. The statement will be accompanied by the Fed's Economic Projections (forecasts) and a press conference with Fed Chairman Bernanke will follow at 2:30pm ET.

Market update - rates rise

Forwarded exclusively by:	Bob Rosenbaum The Rosenbaum Lending Group Office: (703) 879-5200 Email: Bob@MyTalentedLender.com website: www.MyTalentedLender.com NMLS#: 649782
Wednesday, September 04, 2013
What happened yesterday? Mortgage backed securities (MBS) lost -35 basis points from Friday's close which caused 30 year fixed rates to move upward.  In fact, yesterday's sell off completely erased all of the prior week's improvement. MBS sold off immediately after the release of the ISM Manufacturing data.  The market was expecting a reading of 54.0 and it came in at 55.7. A reading above 50 shows economic expansion (which is negative for your pricing) As a result, the benchmark FNMA 4.0 September coupon "tanked" to their worst levels of the day of -63BPS at 10:36EDT. Construction Spending was also better than market expectations (0.6% vs 0.3%) which was also negative for your pricing. But MBS climbed off of their bottom and started to regain some (but not all) of their early morning losses, rising from -63BPS to -39BPS on news that the Republican House Leader would support any action by President Obama against Syria.  This temporarily gave some momentum to the speculation that Obama will get the support he needs from Congress and then launch a strike against Syria.
Big enough to compete, small enough to care.

Prices rise but not for long as interest rates climb ...

Home sales, prices rise – but for how long?

Sales of existing homes rose in July to their highest level in three years, with year-over-year prices again showing double-digit increases.

The number of sales was 6.5% above June and 17.2% above the level in July 2012. If sales continue at the same pace, that would equal 5.39 million homes sold annually, according to figures from the National Association of Realtors.

Rising interest rates as well as rising prices are expected to tamp down both prices and the number of sales in coming months, as homes get less affordable. The shortage of homes for sale, particularly for first-time buyers, continues in many communities, too.

Post continues below

"Mortgage interest rates are at the highest level in two years, pushing some buyers off the sidelines," Lawrence Yun, the NAR’s chief economist, said in a news release. "The initial rise in interest rates provided strong incentive for closing deals. However, further rate increases will diminish the pool of eligible buyers."

The national median home price, including single-family and condos, was $213,500. That’s 13.7%  above the national median price a year ago and only 7.3% below the peak of $230,400 in July 2006.

• Foreign investors lose interest as home prices rise

The number of homes for sale increased 5.6% from June, to 2.28 million, which is a 5.1-month supply at the current rate of sales. The number of homes for sale is 5% less than a year ago.

Distressed homes continued to make up a smaller percentage of sales, one of the factors that is driving up median prices, since foreclosures and short sales sell at a discount. In July, distressed homes were 15% of sales, down from 24% a year ago.

• New data show uneven pace of housing recovery

First-time buyers continued to play a smaller role in the market than they do in normal times, accounting for only 29% of sales, down from 34% a year ago. Investors made 16% of purchases, down from a peak of 22% in February.

All-cash sales continued to be a strong factor, making up 31% of the deals, up from 27% a year ago.

Looking at the numbers by region:

• Northeast: Sales up 20.3% from July 2012, median price up 6.7%.

• Midwest: Sales up 20.8% from July 2012, median price up 9.5%.

• South: Sales up 16.6% from July 2012, median price up 13.6%.

• West: Sales up 13.2% from July 2012,  median price up 19.2%.

  
  

  By Teresa at MSN Real Estate