Its feast or famine these days in the mortgage business and right now I have been invited over to the biggest feast I have ever witnessed in my time in the business.
I truly appreciate all of the referrals you have been sending in and the email requests for Free Quotes. I have been truly blessed. But I am no dummy and my memory is longer then 5 minutes so I realize that this to shall pass. So in preparation for that I am continuing to educate myself and stay up to date as much as possible with all the new loan programs and market trends.
It is very apparent that FHA loans are going to come back in full force as a leader in home financing, it will be more important then ever to be originating FHA loans in Utah and staying compliant with all of the new FHA guidelines and codes. I have been spending any spare moment I can reviewing all of the fannie and freddie changes as well as the FHA guideline changes which can throw a wrench in your loan process if not addressed up front sometimes.
Government Auctioning Record Amounts of Debt
I have been looking into the bond auctions the last 2 weeks as interest rates have been on a Slow but steady incline. From what I can tell there are 2 main reasons for the increase in rates.
1. There is so much debt being auctioned off ($230 billion) in the last 2 weeks that even though the demand for these bonds is very good the supply is out weighing that demand.
2. Lenders have their little tails between their legs after being smacked in the nose with a rolled up news paper all last year at the end of every quarter and with each posted loss. This tail between their legs effect is causing lenders to be very conservative on their rate pricing. Typically the higher the rate the bigger the premium on the wholesale market, NOT True today. In fact a quick look at the rate sheet shows 6% paying roughly the same premium as 5.5% which is barely paying more then 5%. Don't get me wrong this flat pricing from what I have been told is not coming directly from Fannie Mae and Freddie Mac they are still paying large premiums for the higher rates but the lenders are keeping those premiums and not passing them through to those of us on the wholesale level. They are trying to make up for a year and a half of losses here in the next few months. LAME.
Heres are Novel Idea for all of you lenders out there. Be fair, don't lend to people that can't afford their loans and you wont have the losses, then you wont have to penalize the mortgage brokers and the consumers with much higher rates then the present bond yields should be well, yielding. In my opinion right now there is 1 maybe 2 lenders that are still playing ball on a level playing field and not making todays borrowers make up for yesterdays borrowers short sells.
I'm not here to promote 1 lender over another but if you apply with me trust that your loan will be going to a lender that is rewarding you today for todays actions and not living or being stuck in yesterdays losses.
Lock in your loans. Call today and get started if you have not already. We have a new administration in office that is ready to spend a lot of money and to do that they are going to continue to auction off debt as fast as the printers can print it. Translation for you means bond yields can not come down until there is a supply issue in the bond market and that is not going to be anytime soon, so rates have no where to go but up for the short term.
Call me today to get started 801-655-5111 or email me @ stetsonlowe@gmail.com
Comments always welcome even if your wrong haha.
Stetson Lowe - Utah Mortgage Insider - www.utahloantips.com
