The economic reports that will be released this week will be on Tuesday, the Housing Starts and Building Permits. This will give us an update on what is being built and going to be built. On Thursday, we will get the Initial Jobless Claims. We will welcome any positive changes in this report.

Last week, Congress passed the sweeping Financial Reform Bill. There has been much talk in our industry about this bill and the changes it will bring. The bill itself is over 2,000 pages but unfortunately doesn’t address the major causes of the financial meltdown. As financial corporations try to digest this over the next weeks and months, they will continue to hold on to their cash reserves. And as long as they hold on to the their cash and don’t invest it (lend it out), we will continue to have a very bumpy recovery.

You can read about all of this in this week’s MMG Weekly as well as an article from Kiplinger on “Tweets Can Help Your Business”.

As always, I’ll be following these and more so that I am up on the news that affects mortgage interest rates.

You can also check out the Daily Rate Lock Advisory each day. This report normally comes out around 10am. 

I also will report daily on twitter @mmtgsolutions on the mortgage interest rates and what to expect for the day. If one of these reports moves the market in a significant manner, I’ll write about it here.

Please remember, I welcome your comments to this and my other posts.

To an  inspiring week,

Betsy Moore

206-331-2749

      Producer Price Index was up just slightly at 0.2% over the expectation of remaining flat for the month. Bond market likes this as this is lower than the somewhat hot number of 0.5% in November.

     Other news in the housing industry is the change in FHA guidelines. I will be doing some research on this today. From what I’ve been able to read so far today, Upfront Mortgage Insurance Premium will go up, seller’s concessions will go down, and if your credit score is below 580, borrowers will have to put down 20%. But to be truthful, none of my investors are accepting loan with credit scores that low. This will all be put into practice this Spring. But again, let me do more research for you and I’ll get back to you.

     For now, I recommend that you float your mortgage interest rate if you aren’t closing soon. Otherwise, lock to take advantage of the better rates we’ve been having lately.

      You can also check out the Daily Rate Lock Advisory each day. This report normally comes out around 10am.

     And as always, I will report daily on twitter @mmtgsolutions on the mortgage interest rates and what to expect for the day. If one of these reports moves the market in a significant manner, I’ll write about it here.

     Please remember, I welcome your comments to this and my other posts.

To an  inspiring week,

Betsy Moore

206-331-2749

     The extension of the First Time Home Buyers Tax Credit is being attached to the bill that would extend unemployment benefits. At present, it seems that the Senate and House have agreed to all the attached amendments to this bill and President Obama has indicated he will sign it. We are looking for approval this coming week with the President signing it shortly afterwards.

     There are also basic changes to this Tax Credit besides extending it.

     The most important differences are the increases in income to qualify for the tax credit and providing an incentive for present homeowners to buy up. Here’s what we know about the bill so far:

• First Time Home Buyers will have until April 30, 2010 to be in contract. In other words, have an agreed upon purchase and sale agreement signed by buyers and sellers.
• Homebuyers will have until June 30, 2010 to then complete and close their purchase transaction.
• Income levels to qualify for the full $8000 will be raised from $75,000 to $150,000 for singles and $125,000 to $250,000 for couples.
• Homeowners who have lived in their homes for  5 years will qualify for $6,500 tax credit when they sell and buy another home within this same period of April 30, 2010 for signed purchased and sale agreement and close by June 30, 2010.
•  There is a limit on how much house you can buy-$800,000. This is good news for homeowners who do want to move up into the higher home values.

     So far, the IRS reports that 1.3 million borrowers have taken advantage of this tax credit. Or in dollars, $8.5 billion dollars have so far been claimed against the $13.6 billion that has been set aside by the government. Don’t let this $8000, your money, be left on the table. Congress won’t be extending this again.

     This is the time to buy. Housing values are still down and so are mortgage interest rates. Don’t miss out on this opportunity to purchase your own home.

      Please pass this on to your family, friends, and colleagues. And as always, I would also be more than happy to assist you and  them towards purchasing a home.

      Follow me on twitter @mmtgsolutions for daily updates on the mortgage interest rates and what to expect for the day.If the bond market moves or one of the many economic reports moves the market in a significant manner, I’ll update there as well as write about it here. Or you can follow me on Facebook at Axia Financial “The Moore Mortgage Solution”.

     Please remember, I welcome your comments to this and my other posts. Have an inspired week.

     Betsy Moore

     206-331-2749

     Here is how the new MDIA could and can affect you:

•  No fees can be charged prior to receipt of initial disclosures except for reasonable credit report fee.
• No fees can be charged until one day after the borrower has received the good faith, truth in lending forms and whatever other forms the lender requires to detail these changes.  
• Receipt and received now means signed and dated disclosures.   
• Borrower’s initial disclosures must have been provided at least 7 business days (we count Saturdays) prior to closing or signing. This means signed and dated as well.
• Any increase or decrease of APR by 0.125% means borrower must sign re-disclosures. And they must be signed and dated 3 days prior to closing/signing.
• An increase in pre-paid finance charges (all prior to funding costs) by more than $100 also requires signing and dating re-disclosures 3 days prior to closing/signing. 
• Most lenders will error on the safe side and will likely make the 3 days prior to signing instead of closing.

     So what do all these rules mean to you, the borrower?

      First and foremost, the days of closing loans in 30 days or less are, unfortunately, becoming a thing of the past. Realistically, expect to add 15 to 30 more days to closing a loan. Even if loan originators are being extra vigilant, this new act along with the new appraisal act (HVCC May 1, 2009) can add days to the process.

      This could mean that even the slightest change can start the clock over again. And not once, but several times resulting in lock deadlines and purchase and sales deadlines missed.

      If you are locking in your loan for 30 days or less, make sure your appraisal is done, you are in underwriting, close to being in underwriting or underwriting times are within reason, and most important, everyone is on the same page.

      As a loan originator, I am here to serve you, the borrower, by making this process as easy as possible for you.

      Please feel free to pass this information on to your family, friends, and colleagues. And as always, I am here to answer your and their questions or concerns.