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on Mon Feb 12 2018, 10:20 AM
Under the new Tax Reform , interest on 2nd loans is not tax deductible. This means that all those folks with ultra low fixed rates will have to refi into a higher rate if they want to extract equity with tax advantages. That is if you meet the $750,000 loan max threshold.
on Mon Feb 12 2018, 9:32 AM
When are lenders going to jump back into 2nd Mortgages. I believe they are really missing out. This is a great way to pick up the slack for refis and not to mention help with future demand!
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Fri Feb 9 2018, 8:06 PM
There are a lot of people who would say they seem a lot higher as well. Take the widely-followed Freddie Mac survey, for instance. My rate calculations have been persistently higher than theirs throughout this sell-off. (See the chart on this page: http://www.mortgagenewsdaily.com/data/30-year-mortgage-rates.aspx). If anything, I'm pushing the pace when it comes to letting consumers and LOs know just how fast rates have moved higher. If you're not seeing the same, there are a few common reasons. The most common is that your particular lender is behind the curve, or simply somewhere in the middle of it. Given that you work for a subsidiary of Stearns, this is entirely possible as they're not currently the most aggressively priced lender (about middle of the pack). The other potential crossed wire would be that the highlighted rates are the most prevalently-quoted rates for top tier scenarios (i.e. no LLPAs). Finally, it's also possible your shop hasn't tightened margins as much as many shops have into the rate spike. Affordable rate buydowns have resulted in more quotes going out with origination/discount points in order to keep the note rate lower. My "prevalent" section doesn't account for compressed margins or increased upfront costs. All that having been said, if we're talking about top tier scenarios, 4.375-4.5 is widely available with little-to-no discount/origination.
on Thu Feb 8 2018, 3:18 PM
Where might you be getting the "Most Prevalent Rates" information? They seem much lower than what's actually going on in the market.
on Wed Feb 7 2018, 10:02 AM
Wake-up America-- FNMA/FMCC is a property rights issue! The Government "needs to protect the taxpayer" from publicly traded compnaues that produce BILLIONS of dollars in Net income?? The Conservatorship is a FRAUD! The 2008 "deal" was once FNMA/FMCC paid back the Treasury the stakholders would get back their shares,, FNMA/FMCC have PAID BACK the money,so why havnt the stakeholders gotten back their shares??? I authored a Resolution that was UNANIMOUSLY passed by the RNC..Go to GOP.GOV,,, go to bottom of Home,,click on Rules and Regulations..To date RHINO Corker and rest of Congress just wants to STEAL stakholders cash flow and profits to fund their greed..Demand the GOP honor their Resolution,DEMAND Congress return stakeholders what is rightfully the stakeholders..If the Government can STEAL the shares of FNMA/FMCC,then who's next?? APPLE ?? WAKE-UP America !!!
on Mon Feb 5 2018, 3:57 AM
The AARP Foundation publication Reverse Mortgage Loans: Borrowing Against Your Home is an an easy-to-understand guide for older adults who are considering such a mortgage refinance for their home (PDF).http://sdfdsfdzss.com.au sdfsdf
on Thu Feb 1 2018, 2:05 PM
Higher Intetests hurts everyone except Banks. Lower the rates.
on Tue Jan 30 2018, 11:21 AM
Bonds will probably catch a bid when we see some volatility in equities. Maybe soon.
on Thu Jan 25 2018, 1:07 PM
Wish I could "like" the above comment from Kim Kuhle. Great article, great comment. I think the silver lining you noted is important to emphasize as well. The lower sales stats are buoyed somewhat in the improved home values/stats yoy. Thanks again for the great research and evaluation.
on Thu Jan 25 2018, 11:55 AM
Hi Jann Swanson, Thank you for providing an excellent summary of the year end home sales figures. As I read your article, a phrase jumped out at me - housing crash. This is phrase that I have never heard in a meaningful way until now. For people in the mortgage, stock market, construction and real estate industries, the financial collapse of 2008 could be called a housing crash, but it could also be called an ethics nuclear bomb for all. What strikes me is that the housing crash happened when American Dreams of home ownership were also changing. Some people don't want to buy a new home or any kind of home, but they will still need multifamily housing finance. In essence, this article tells me that we all share a desire to avoid going through a financial industry fueled housing crash again. We want to avoid surprises by knowing the the real-world and whole housing truth as we go along. Thank you for providing articles like this that do just that.
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Mon Jan 22 2018, 1:49 PM
Current levels of demand (high) in top housing markets wherein inventories are low and prices are among the highest in the country may indicate home purchases likely will remain strong through 2018. However, the current high home prices coincide with a significant enough increase since 2012...thus resulting in would be home buyers at the lower end unable to afford a home purchase. My experience, and that of many mortgage loan consultants in the S F Bay area is we are qualifying a lot of would be borrowers at maximum purchase prices too low for the area they want to buy a home in (within reasonable proximity of work.) With low inventories and enough individuals qualifying for the lower end of homes available, yes, the market probably can handle some increase in rates...but probably not a lot. Maybe when inflation seems to be occurring steadily, and rates have gone up at least half a point from January 2018 we will see home prices come to a standstill. Hardly anyone is predicting the amount of inventory a year from now to not still be low, but that likely will prevent prices from dropping. History informs us current home values increasing as many years as they have is pretty rare so my message is the same as always: the best time to buy a primary home is when you are ready! It continues to be an important investment for all the right reasons, and not with the idea of "flipping" it in a year or two.
on Fri Jan 19 2018, 12:42 PM
Great article!
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Thu Jan 18 2018, 9:37 AM
You're not convinced by the flawless grammar?
on Fri Jan 12 2018, 11:27 AM
Step one, I would think, would be to bar these violators from originating VA loans. I have seen the solicitations and they are so misleading.
Ted Rood
Senior Loan Officer , MB Financial Bank
on Thu Jan 11 2018, 4:01 PM
This is a valid concern, and I've long been appalled at lenders misleading borrowers with names like Veterans United, VAloans.org, etc that imply connections with the VA. While VA IRRRLs are great products (especially for funding fee exempt borrowers), "skipping" a payment or two/getting an escrow refund is never a valid borrower benefit to justify refinancing. The abusive lenders are simple to spot, the question is who will deter their predatory practices.
on Wed Jan 10 2018, 11:09 AM
This is a good sign.
on Wed Dec 20 2017, 6:55 PM
Don't forget about the near monopoly that MERS has in the MBS mortgage market. There should be competition in that sector, but none really exists.
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Mon Dec 18 2017, 2:51 PM
Lol! I just read sentiments from Mr. Watson and then the other comments. No question in many cases an appraisal by a well trained and educated appraiser is going to do the best job in protecting the lending investors and the consumer purchasing the home without actually undervaluing the home. Granted, as Greg Wilkinson cites, many appraisers can still feel the pressure to come in at the purchase price, but each appraiser can be monitored and we all know of appraisers on do not use lists. The investors (bank) have to decide when it is protecting their interests sufficiently in using AVM...it is their/stockholders/bank depositors money. As pointed out, if the AVM is lower than true value, as has been true for some borrowers/homebuyers, the seller may refuse to sell the home for the AVM value. thus as Ted Rood mentions, the model used in the bank's determination and on the DU matters. If it now decides at 18% down instead of 20% down... they can't have the loan, then there should be the possibility of obtaining an actual appraisal if sellers refuse to lower the price. We all have had experiences where all the comps close by, but on the other side of a freeway, are unfair comparisons...yet the only fair comparisons might be 2 to 3 miles away. Not sure a computer AVM will figure that out.
WN
on Fri Dec 15 2017, 11:16 AM
In 20 years of being an LO. I have been on the losing end of an AVN many more times than the traditional appraisal.
on Fri Dec 15 2017, 9:16 AM
James Turner, you make some good points. AVM's do not see the upgrades nor quality of materials used that have been made to the home. In the Boston area where the norm is the majority of homes are older than 50 years the value varies greatly between homes that are virtually identical. 3 bedrooms 1.5 baths 8,000 SF lot 1 car garage, 1,482 SF etc. There is no way to account for a home that is more desirable due to the location of the home corner lot vs a home with a view of the gas station, spacious level backyard vs a hilly wooded lot, newly remodeled open concept living area to create 2 full baths, with a new custom kitchen HGTV "affect" vs a home that is in original condition, hasn't been touched in 50 years and needs a new roof and heating system. The only time that it might make sense to use an AVM is in a large tract home builder subdivision when the developer has 4-5 basic models.
S Reichert
Mortgage Banker, Black Hills Community Bank
on Thu Dec 14 2017, 4:09 PM
I'd personally like to see them continue to develop AVM's. I'm in a rural area and it's no uncommon for an appraisal to take 3 weeks. Granted, I don't want to see lower values affecting my financing, but I'm sure the technology will improve and provide a great alternative to valuing properties.
on Thu Dec 14 2017, 12:14 PM
How about the LTV having an effect on the degree of scrunity by the appraiser and thus the appraisal value given.
Curt Sandfort
Regional Manager, Pacific Northwest, Prime Mortgage Lending, Inc
on Wed Dec 13 2017, 2:27 PM
As I understand the $1M question, if you owed $1.5M on your home, you could only deduct the interest paid on the first $1M owed. Whether or not that threshhold changes to $500k or some other number remains to be seen. #CONSULTYOURCPA
S Reichert
Mortgage Banker, Black Hills Community Bank
on Wed Dec 13 2017, 1:28 PM
Is the 1MM cap, the maximum mortgage you can have, or some type of cap on the interest expense deduction?
on Tue Dec 12 2017, 9:07 AM
It will be interesting to see how an increase interest rates affect residential home prices in Castle Rock, CO. They have risen steadily since 2011, a strong 7 year run to the point that first time Buyers are barley able to afford the monthly payments, especially FHA & VA Buyers. If rates increase, will the Buying public absorb the increase or will sale prices get pushed down, so payments stay high but not unmanageable? It will be interesting to watch. great article. Thanks,
on Thu Nov 30 2017, 3:24 PM
As far as the assumed MSR tax changes go, there's no way this interpretation can be correct or final. There's no way JUST the MBA would be upset by this yet when I search for more information they are the only ones talking about it. This would send shock waves through many industries and, if true, would have the self-regulating accounting entities organizing marches on DC. Not to mention there's a wherewithal to pay doctrine that basically says if you don't have money from the income being taxed we don't expect you to be able to pay that tax.
on Wed Nov 8 2017, 2:49 PM
If a Buyer gives up on getting qualified, they are giving up on their dreams, home ownership, and wealth building. Even if they have to re-group and come back a year later, it is always worth the effort for their long term retirement goals. That's for the great article.
on Wed Nov 8 2017, 2:46 PM
Great information. As a Realtor, I recommend that Buyers begin the process of improving their financial position and FICO score(s) about 6 months before writing any contracts. Those two things may get the Buyer a low interest rate loan, who can now purchase a better home.
on Wed Nov 8 2017, 2:43 PM
Interest rates are key to affordability with Buyers. Housing prices in the Douglas County, Colorado area have almost doubled in the past 7 years. When interest rates rise, that may force many potential Buyers out of the system and to stay in rental properties to affordability issues.
Robert Jubran
Mortgage Loan Originator, Regions Bank
on Mon Nov 6 2017, 11:10 AM
Great info!
brian dean
Senior Mortgage Consultant, FirstCal
on Fri Nov 3 2017, 11:30 AM
Has anyone else noticed the proposed tax deduction is ONLY on purchase loans so there would be no more refinances. It would never make sense to refi your mortgage and give up your tax deduction
on Tue Oct 31 2017, 8:54 AM
Home prices and wages differ little than they were in 2007. What is different is qualifying criteria. Tighter government regulations and more conservative lenders have cut the purchasing pool to a fraction of what it was 10 years ago.
on Fri Oct 27 2017, 5:50 PM
Landa is a horrible mortgage broker. I found the experience to be frustrating and maddening. They kept asking for the same information over and over. They changed their mind from day to day. I had to prove identity several ways. Had to prove my income several different ways. Had to prove my employment status several different ways. At the end of a two month process, we are still in limbo.
on Fri Sep 29 2017, 9:53 AM
Bravo Mr. Stevens! Spot on with setting the correct stage for where the real focus Ginnie Mae and regulators should be allocating resources. It's sad most media coverage seems to post a negative spin on just about everything - as an industry and just in general if you are in a position to inform, how about taking a more positive approach? Be part of the solution, not the problem...
on Tue Sep 26 2017, 3:47 PM
I am sooo stealing this:)
Ted Rood
Senior Loan Officer , MB Financial Bank
on Wed Sep 13 2017, 10:58 AM
Correct
Ted Rood
Senior Loan Officer , MB Financial Bank
on Wed Sep 13 2017, 10:58 AM
Oops, meant Equifax, not Experian.
on Wed Sep 13 2017, 10:57 AM
To Ted Rood - You mean "If Equifax isn't...." not Experian???
on Thu Aug 31 2017, 12:19 PM
I provide an ARM as an option depending on the customers goals down the road. It isn't always about where the current ARM rate is???!!! I think it's safe to say that it is always lower than any fixed rate most times, the 10 year ARM usually doesn't even make sense.
Ted Rood
Senior Loan Officer , MB Financial Bank
on Wed Aug 30 2017, 4:20 PM
I'm seeing a LOT more of my clients express interest in ARM's than the last couple of years. With 7/1 ARM rates about .75% under 30 year fixed rates, they're a great choice for many borrowers.
on Tue Aug 22 2017, 5:33 PM
I currently use Thomson Reuters Eikon but cannot get the volume to work for my daily charts. How do you get volume for treasuries on Eikon?
Ted Rood
Senior Loan Officer , MB Financial Bank
on Mon Aug 21 2017, 11:11 AM
Thank you for refraining from gratuitous eclipse references, such as "remains to be seen if bond demand will eclipse available supply" and "can only hope any gains today aren't completely overshadowed by distracted traders."
on Fri Aug 18 2017, 1:49 PM
Good article Matt. You obviously know the ground on which you are walking.
on Fri Aug 18 2017, 10:52 AM
Thank you ! I will share and pass it along
Jeff Statz
Chief Loan Officer, Mortgage Statz
on Thu Aug 17 2017, 5:05 PM
Lots of valuable material here! Thanks for the informative article, Matt.
 

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