|
|
|
Monday Morning Mortgages>
Monday Morning Mortgages
August 17, 2009
Monday Morning Mortgages ~ Monday 8/17/2009
Monday Morning Mortgages is a brief week-opening report on mortgages in our area. This is a tool to assist my realty partners on loan trends, rates, program changes, and problem solutions.
(I hate spam. If you feel MMM is spam, please reply to this message with REMOVE in the subject line.)
Rates Drop
Due to the larger than expected drop in consumer confidence on Friday, rates have dropped. Production data was lower than expected signaling a slower than hoped for economic recovery. These signs of a still-weak economy created a rally in the bond market resulting in lower rates (see below).
Days to Close Escrow
With the added time of borrower disclosure requirements from new MDIA law, I recommend increasing loan contingency release to 24 days instead of the CAR default of 17. Adding 5 days to the typical 30 day escrow period would be prudent in light of new regulations for both disclosures and appraisals.
SR City American Dream Program Is Active
The Santa Rosa American Dream Downpayment Initiative still has a couple of grants left. This is down payment assistance up to $10,000 to be used for downpayment or closing costs. Rate is 3.25 and payments are deferred until resale or refinance. This program is for first time homebuyers, low-moderate income, for property within Santa Rosa city limits. Once the last grants run out, we don’t know when the program will be funded again.
Income limits:
Household Size Gross Annual Income Limits*
1 $44,800
2 $51,200
3 $57,600
4 $64,000
5 $69,100
6 $74,250
*Updated 04/29/2009. Subject to change annually.
For more details go to http://ci.santa-rosa.ca.us/departments/economicdev/housing/buyers/Pages/payment.aspx or call me.
More Bank Failures (Rob Chrisman, RPM, 8-17-09)
Last week Taylor, Bean, & Whitaker went belly up. Now, on Friday, Colonial BancGroup was seized and purchased by BB&T with $25 billion in assets and $20 billion in deposits. Colonial is not only the largest seizure this year, but the sixth largest bank failure in US history. For those playing along at home, BB&T is based in North Carolina and owns 1,500 branches in the Southeast. And unfortunately for mortgage companies, Colonial had billions and billions of warehouse lending, so that leaves many independents scrambling for warehouse lines. No warehouse = no lending for a non-depository mortgage bank.
Colonial wasn’t alone on Friday: four other banks failed. Community Bank of Las Vegas went under, with no buyer in sight. Dwelling House Savings and Loan Association in Pittsburgh had PNC Bank assume control of its assets - the first Pennsylvania bank to fail this year. Two banks in Arizona failed: Union Bank and Community Bank both were taken over by MidFirst Bank of Oklahoma City, which are the first in Arizona this year, and brings the nationwide total to 77. The FDIC’s trust fund, used in covering bank failures, took another hit. Indymac, so far, has been the most expensive with almost an $11 billion hit. Colonial could cost the FDIC another $3-7 billion by some estimates.
Loan Closing Turn times for Escrow Timing
Conventional Mortgage 30-35 days
FHA 30-35 days
Today's Rates
WITH ONE LOAN POINT
Conforming (<= $417,000)
30 Year 5.0%
5/1 ARM 4.0%
5/1 ARM IO 4.125%
7/1 ARM IO 4.65%
Jumbo Agency ($417,001 - $662,500 in Sonoma County)
30 Year 5.25 %
FHA Conforming (<= $417,000)
5.375%
FHA Jumbo (to $520,950)
5. 5%
Super Jumbo (<= $3 million)
30 year fixed 6.625%
3/1 ARM 4.0%
|
|
