Now that you’ve found your next home, it’s time to find your lender!
3 bedroom 2.5 bath home
Whether buying a home, farm, land or commercial property, the loan remains an important part of the process. From 1st time homebuyers to investors owning multiple properties, being pre-approved for your loan early in the process continues to be a key step in the process of buying real estate. The lenders below have been used recently by some of my clients and customers. Different lenders specialize in different loans. If you need assistance in finding a lender that matches your personal needs, let’s talk!
Mike Buczynski, First Heritage Mortgage LLC, 1-434-987-6712 mikeb@fhhtg.com
Walt Simpson, Movement Mortgage, 434.249.1998 walt.simpson@movement.com
Philip Mahone , Mahone Mortgage LLC 434.981.7090
Peter Cefaratti Embrace Home Loans 434-284-2121
Kim Love, Farm Credit, 1445 East Rio Road, Suite 104 (P.O. Box 104), Charlottesville, Virginia 22906 Mobile: 540.878.7100 Fax: 434.977.6719 klove@agfirst.com
Teresa A. Harris, Farm Credit, 13284 James Madison Highway (P.O. Box 267), Orange, Virginia 22960 Office: 540.672.3644 Fax: 540.672.3911 tharris@agfirst.com
Lynn Porter, Farm Credit, 3064 River Road West, Suite E, Goochland, Virginia 23063 Office: 804-556-5723 Fax:804-566-5728 lporter@colonialfarmcredit.com
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About James Friend Dickerson
Real Estate Consultant
As a native of Central Virginia and a full time REALTOR since 1991, James listens to your needs to provide information allowing you to make informed choices. In our constantly changing world, you need a REALTOR who puts you first providing rigidly flexible service. James Dickerson provides a high level of service designed to fit each individual clients needs. Having received many awards from both the local Association of REALTORS and RE/MAX International, James is recognized as an authority on the local real estate market. The highest form of recognition James receives continues to be the many repeat clients who seek out his services time after time plus sending their relatives, friends, co-workers and neighbors to James for their real estate needs. Contact James today for an interview to discuss your real estate needs. James is a licensed real estate sales person in the Commonwealth of Virginia with Charlottesville Solutions.
Personal
As a Central Virginia native (Born in Charlottesville and raised in Albemarle and Louisa Counties), James' youth was filled with extra-curricular activities and organizations centered around school, church and the Boy Scouts of America. A graduate of Virginia Tech with a degree in Forestry and Wildlife Management, James' non-real estate activities include spending time with family & friends, traveling, stalking deer & spring gobblers, fly fishing, church and Masonic activities. James and his lovely bride Karen live between Zion Crossroads and Gordonsville in the Green Springs area of Louisa County. Since 2022 Jim has served on the Louisa County Planning Commission. Their dog Sammy passed away so now they dog sit for friends and family.
Mortgage Bonds are trading near unchanged as the markets brace themselves for some important Bond auctions here and abroad.
There are no economic reports due for release today but the Fed’s Beige Book will be released and it could garner some attention.
I am still recommending a Cautiously Floating bias in the short term due to the fact that Mortgage Bond prices are trading near the top end of the trading range.
Leonard Winslow
Direct: 434-760-2580
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
The US Dollar and US Bond Markets are receiving a safe haven bid this morning as a not-so-hot Italian Bond auction pressured the Euro lower and highlights that the Eurodrama is far from over.
Mortgage Bonds continue to trade in a sideways to slightly higher pattern being supported by the Federal Reserve as it continues to purchase the Mortgage Bonds on a daily basis.
The capital markets will be closed on Monday in observance of Martin Luther King Day. Have a great weekend.
Leonard Winslow
Direct: 434-760-2580
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
mailto:leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Mortgage Bonds are starting the week near unchanged, as the Federal Reserve continues to buy Mortgage Bonds in the open market, shrugging off some optimism out of Europe and better than expected manufacturing data here in the States.
Mortgage Bonds are going to receive support from the Fed, the Eurodrama is far from over and the US economy still remains quite fragile. For these reasons – I will continue to recommend a Floating bias.
Leonard Winslow
Direct: 434-760-2580
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
mailto:leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
With no economic reports or glaring headlines out of Europe this morning, Bonds are slipping slightly lower as investors unwind some of their safe haven trading positions.
Over in Europe there is some optimism that a key meeting on the Greek debt talks will end with some good news, and it is weighing on the Bond markets today. In addition, the Treasury will sell a total of $99B in Notes this week and the added supply is capping Bond prices.
Due to the recent move lower in Mortgage Bonds and having subsequently fallen below a key support level, I have switched my short-term bias to Locking. However, in the longer-term, I will stick with a Floating recommendation.
Leonard Winslow
Direct: 434-760-2580
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Mortgage Bonds are trading higher as the debt problems in Europe continue to linger, now in its third year and far from a resolution.
Inflation numbers in December were reported relatively tame today and the data is helping to support the Bond markets. Personal Incomes rose, while Personal Spending fell in December. The fall in spending helped to lift household savings.
Both the fundamental (news) and technical trends are supportive for higher Bond prices, so for now, I will continue to recommend a Floating bias. Just remember, that Mortgage Bond prices are at all-time highs and markets don’t go straight up or straight down, so I am very cautious at present levels. If anything changes, I will get back to you.
Leonard Winslow
Direct: 434-760-2580
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Headlines, Stocks and Bonds are trading near unchanged levels ahead of tomorrow’s granddaddy of all economic reports, the Jobs Report.
In economic news, weekly jobless claims fell in the latest week but a report showed that planned firings surged in January.
Heading into tomorrow’s jobs report release, I feel that Locking is prudent, but longer term I continue to recommend a Floating bias. If anything changes, I will get back to you.
Leonard Winslow
Direct: 434-760-2580
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
mailto:leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
An upcoming 10-year Note Auction and rumors that Greece is close to a final deal are leaving Mortgage Bond prices near unchanged this morning but they are off their worst levels.
At 1pm ET, the Treasury will sell $24B 10-Year Notes and follows yesterday’s mediocre auction of 3-Year Notes, which weighed on the Bond markets.
I will start with a Floating recommendation as Mortgage Bonds are attempting to stabilize after several days of drifting lower.
Leonard Winslow
Direct: 434-760-2580
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Mortgage Bonds are trading slightly higher after bouncing off key technical support levels earlier in the trading day.
The turmoil and chaos that ensued in the streets of Greece after new austerity measures were enacted coupled with tensions in the Mideast are helping supporting Bond prices, despite a rise in the Stock markets today. However, Stock prices are off their best levels.
Leonard Winslow
Direct: 434-760-2580
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Bond prices are being capped and are trading near unchanged levels this morning on news from China, stating their intent to continue investing in Euro-zone bonds.
Also weighing on Bonds is positive economic data from France and Germany ˆ but the Bank of England wasn‚t so rosy this morning, saying that inflation (and growth) in the United Kingdom will continue to decline in the near future…and that headline is offering some support to Bonds at present levels.
Leonard Winslow
Direct: 434-760-2580
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Mortgage Bonds opened near unchanged thanks to the Eurodrama resurfacing front and center and then moved higher on a disappointing Initial Jobless Claims number.
The final reading of 4th Quarter Gross Domestic Product remained at 3.0%, a decent number. However, for 2011 overall, GDP was an anemic 1.625%, well below the number needed for a normal functioning economy.
This afternoon the Treasury will auction $29B in 7-Year Notes. Yesterday’s 5-Year Note auction was ugly, with tepid buying demand. If today’s 7-year Note auction disappoints, Mortgage Bonds could quickly erase this morning’s gains much like they did yesterday.
Leonard Winslow
Direct: 434-760-2580
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
mailto:leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Mortgage Bonds continue to trade in a sideways to slightly higher pattern today getting support from lower Stock prices. Over in Greece, the country is struggling to form a new government, which is renewing the debt woes that have stricken the region for nearly two years.
Equity investors are just looking for an excuse to sell after the big gains so far in 2012 and today are looking at the European crisis for an outlet. The Treasury is set to sell $32B 3-Year Notes today and the results could impact trading this afternoon.
I will continue to recommend a Floating bias, but with Mortgage Bond prices at record highs and home loan rates at record lows, sentiment can reverse in a heartbeat. If anything changes, I will get back to you.
Leonard Winslow
Direct: 434-760-2580
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Mortgage Bonds are trading a little lower as US Stocks move higher in anticipation of today’s big Facebook Initial Public Offering (IPO). Also weighing on Bonds is the lack of US economic reports and no real news headlines out of Europe.
For today, I am recommending a Floating bias as Mortgage Bonds have moved above several key technical layers of resistance. However, I will carefully watch for any reversal signs, which could pressure home loan rates higher.
Have a great weekend!
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
mailto:leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Mortgage Bonds are trading near unchanged as Stocks try to right themselves after back to back weeks of losses. There are no economic reports due for release today.
You may recall the old adage “sell in May and go away” for Stocks and this year it held true again as the S&P 500 topped out at 1,419 on April 2 and seemed to decline almost every day this month.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
mailto:leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #26527
The Group of 7 Nations is holding a conference call today to discuss measures to shore up the debt woes in that troubled region, while Spain has called for outside support to combat its own financial crisis.
The Bond markets are trading lower on the news, following through on yesterday’s slide.
I will continue to recommend locking in the short-term, days and a few weeks. In the longer-term, I feel that Floating is prudent due to the fact that the Euro drama is far from over.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Leonard,
Thanks for the great info! Looking forward to filming Hou$e Money with you this week.
James
Mortgage Bonds are trading lower as Stocks opened sharply higher this morning. In addition, Atlanta Fed Bank President Lockhart said this morning that QE3 could be coming soon given the weak economic data in the past month or so, which is boosting Stock prices.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Mortgage Bonds are trading near unchanged and below a tough ceiling of resistance headed into tomorrow’s closely watched Euro Summit.
In economic news, Durable Orders were reported better than expected, but the data didn’t impact trading. Pending home sales will be released later this morning. This afternoon, the Treasury will sell $35B 5-Year notes and the results could influence trading.
Home loan rates are hovering near record low levels, which gives the consumer an opportunity of a lifetime. I will continue to recommend a locking bias in the short-term, which is measured in days and weeks. In the longer-term, I feel that floating is prudent but don’t get complacent with these ultra-low rates
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
mailto:leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
New American Mortgage is an Equal Housing Lender. New American Mortgage is licensed by the Virginia State Corporation Commission License #: MC-5112 and the State of North Carolina Commissioner of Banks L-142670. Interest rates and products are subject to change without notice and may or may not be available at the time of loan commitment or lock-in.
The Bond markets are trading higher as investors rush back into the Bond markets feeling that the EU Summit that begins today will not bring any new solutions to the ongoing crisis.
Also helping to support the Bonds markets was the report that Initial Jobless Claims remained stubbornly high at 386,000 in the latest week while the final reading for Q1 Gross Domestic Product remained at a paltry 1.9%.
Other headwinds today include the decision on the Obama Health Care Act and the Treasury selling $29B 7-year notes.
I will continue to recommend a locking bias in the short-term, longer term floating. If anything changes, I will get back to you.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
New American Mortgage is an Equal Housing Lender. New American Mortgage is licensed by the Virginia State Corporation Commission License #: MC-5112 and the State of North Carolina Commissioner of Banks L-142670. Interest rates and products are subject to change without notice and may or may not be available at the time of loan commitment or lock-in.
The bonds markets opened to the upside this morning but prices are only modestly higher and could be capped by $66B in notes and bonds set to be auctioned this week.
Lower Stock prices continue to cause investors to play the safe haven trade of the Bond markets, especially after Friday’s weak jobs report. There are no economic reports due for release today.
With Mortgage Bond prices at record high levels, I will play it cautious, recommending to lock in the short-term. Longer-term floating is prudent. Have a great week!
he Bond markets are trading near unchanged this morning as the weight of today’s $21B Treasury auction and a gloabal economic slowdown are offsetting each other. Here in the U.S., the Economic Cycle Research Institute has stated the we are already in a recession or about to enter one.
The Fed minutes will be released at 2:00pm ET today from the June meeting and the details could imapct trading. There were no major economic reports delivered today.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
I will continue to recommend a Floating bias in the long-term, but it still makes sense to lock in the short-run. If anything changes, I will get back to you.
Mortgage Bonds are trading slightly higher on escalating concerns of a global economic slowdown and on further proof the U.S. economy is “muddling” along.
In economic news, Initial Jobless Claims fell to the lowest level in four years and is capping Bond prices today. In addition, the Treasury is set to sell $13B 30-Year Bonds and the added supply is limiting any significant moves higher.
The fundamental trend, of escalating uncertainty and weak economic news, continues to be the Bond Market’s friend. For this reason – I will continue to recommend the long-term floating position. However, much like yesterday, when prices moved lower for seemingly little reason, I will remain with a locking stance in the short-term.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
Mortgage Bonds are starting the week higher as financial markets look ahead to Fed Chairman Ben Bernanke’s semi-annual testimony before both the Senate and House tomorrow and Wednesday.
On the economic news front, Retail Sales fell more than expected while the NY State Manufacturing Index remains at relatively low levels. The weak data pushed Bond prices higher.
I feel that you can still float longer-term, but I still feel locking as transactions approach a shorter time frame is prudent.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
Leonard,
Thanks for your help w/ the rates, points, etc. for investor loans. I’ve got several investors looking & evaluating properties. I’ll keep you updated.
James
Mortgage Bonds are trading slightly lower as Traders remain cautious ahead of Fed Chairman Bernanke’s semi-annual testimony in front of the Senate Banking Committee that begins this morning.
In economic news, inflation at the consumer level remained tame in July as evidenced by the unchanged reading in the Consumer Price Index (CPI). The National Association for Business Economics (NABE) reported yesterday that the outlook for job growth has fallen due to a weakening economy.
For now, I am recommending a floating bias heading into Mr. Bernanke’s testimony, but sentiment can quickly reverse course. If anything changes, I will get back to you.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
Thanks for the great info on various loans & your presentation at today’s office meeting.
Mortgage Bonds are trading near unchanged but are off their worst levels of the session after some dismal economic data that hit today. Weekly Jobless Claims rose, the Philly Fed Manufacturing Index along with Existing Home Sales declined in the latest month.
However, Mortgage Bonds continue to move in a sideways pattern below resistance and near all-time highs with no clear catalyst to push prices higher due to the recent rally in the Stock markets.
I will continue to recommend a short-term locking bias, which is measured in days and weeks. In the longer-term, I still feel that floating is prudent due to the weak economic data along with the headwinds from the troubled Eurozone.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
Mortgage Bonds are trading lower and are off their best levels being weighed down by today’s $35B 2-year Note auction and after hitting record highs yesterday.
Mixed corporate earnings reports here in the US and the ongoing saga in Europe have sent Stocks lower this morning. Late yesterday, credit ratings agency Moody’s assigned a “negative” outlook on Germany’s Aaa debt given that the country could be on the hook for a large portion of the debt in that region.
Technically, Mortgage Bond prices hit all-time highs yesterday and have pulled back this morning due to investors taking some profits and under the weight of the Treasury auctions this week. I will continue to recommend a Floating stance in the longer-term, with a Locking bias in the short-term.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Mortgage Bonds hit intraday record highs yesterday, but closed off those best levels after the Wall Street Journal reported that the Fed may act with additional stimulus as early as the upcoming Fed meeting on July 31 – August 1. Stocks moved on higher on this news, at the expense of Bonds.
The slide in Mortgage Bonds is continuing this morning after ECB member Ewald Nowotny said that there are arguments in favor of giving Europe’s rescue fund a banking license as leaders ponder a full scale bailout of Spain. In addition, positive earnings reports are also helping to drive Stock prices higher today.
I will continue to recommend a Locking bias in the short-term to avoid volatile price swings like yesterday and this morning. However, longer-term you can still float as the trend is still our friend and fundamentally Bonds should continue to be supported from high uncertainty abroad.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
The Bond markets opened lower this morning on rumors that the European Central Bank (ECB) is about to start buying the debt of countries like Italy and Spain to alleviate pressure on rising yields. The news is giving Stocks a lift.
The government reported this morning that the first reading on Q2 2012 Gross Domestic Product (GDP) grew by 1.5%, just above the 1.2% expected and lower than the 2% read for Q1. But at 1.5%, it’s nothing to write home about.
I will continue to recommend a Locking position in the short-term due to the increased selling in Mortgage Bonds of late. In the longer-term, floating still remains prudent. Have a great weekend!
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Mortgage Bonds are trading higher as the markets position themselves ahead of Central Bank action and Friday’s important Jobs Report. What I am hearing is that QE3 will be $500 to $600B in more Bond buying – but this time, directed into Mortgage Backed Securities, thus the continued rise in Mortgage Bonds.
A slew of economic data hit this morning and the numbers were relatively near expectations with little market reaction.
I am recommending to float into the Fed’s monetary policy statement that is set to be delivered at 2:15pm ET on Wednesday. If anything changes, I will get back to you.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Mortgage Bonds are trading higher this morning after the European Central Bank Chief Mario Draghi failed to announce any concrete plans to stem the financial crisis in that troubled region.
Yesterday, the Federal Reserve said that economic activity decelerated somewhat over the first half of this year but also stopped short of announcing plans for additional stimulus at this time.
Ahead of tomorrow’s Jobs Report I am recommending to Lock any transactions in the short-term to avoid headline risk. Longer-term, I feel that Floating is prudent.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Since bottoming out on July 24th, interest rates have been on the rise. Stocks continue to move higher, whether the economic news is good or bad mainly because the Fed will always be in the wings ready to drop more stimulus.
And as is usually the case, when Stocks go higher, interest rates go higher.
I continue to recommend locking as the trend higher in interest rates is not our friend.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Interest rates continue to inch higher as the trend lower in Mortgage Bonds continues.
There was some weak economic news, as well as tame inflation data, reported this morning that would normally be bond-friendly. However Bond prices continue to follow the path of least resistance, which is lower meaning higher interest rates.
I am hopeful that Bonds will bounce higher and help interest rates improve some but until that time, I am advising clients to lock as the trend lower in Bonds is not our friend at the moment.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Mortgage Bonds are pushing higher this morning following through on yesterday’s late day rally sparked by a downgrade in the shares of Apple, which led the broader Stock markets lower and shifted cash back into the safe haven trade of the Bond markets.
Technically, yesterday’s reversal to the upside and the follow through this morning is signaling a positive tone but as always, sentiment can quickly reverse.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
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Bonds are holding on to their recent gains as prices continue to climb back from their recent selloff as Stocks look to be topping out at current levels after failing to close above 4-year highs earlier in the week.
Durable Orders in July rose more than expected but within the report it showed that general business spending declined, stoking fears of a slowing US economy. The data lent some support to the Bond markets.
I grow cautious and I recommend to lock short term transactions, but in the longer-term I feel that floating is prudent given the obstacles that the US economy faces.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
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Mortgage Bonds are starting the day slightly higher. This week will be very exciting for the financial markets.
Economic reports will be on the heavy side but the big event this week will be that Fed Chairman Ben Bernanke will be in Jackson Hole, Wyoming delivering a speech on the Economic Outlook and Monetary Policy at the Fed’s Annual Symposium.
The last two years Stocks rallied big after the Chairman’s speech and we will have to see if history repeats itself this time around. A rally in Stocks could weigh on the Bond markets.
I will continue to advise locking short-term transactions. But longer-term, I would like to float into Friday’s event and see what Mr. Bernanke delivers this year.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
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License #MLO-4817VA-NMLS #265272
Mortgage Bonds are trading higher after Weekly Initial Jobless Claims were reported higher than expected while inflation remains tame.
The markets have been on the quiet side this week as the summer comes to an end as trading desks clear out for extended vacations. In addition, traders aren’t looking to take any big bets ahead of the speech from Fed Chairman Bernanke at the Jackson Hole Economic Symposium on Friday.
I will continue to recommend a Floating bias into tomorrow’s event from Jackson Hole. If there are any sudden changes, I will get back to you.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Both Stocks and Bonds are trading nicely higher – reminds us of the market reaction post Aug 2010 Jackson Hole speech – where both Stocks and Bonds went higher into the actual Fed decision to do QE2. However once the decision to do QE2 was official, only Stocks continued higher and Bonds suffered mightily.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Mortgage Bonds are giving up some of last Friday’s Fed inspired gains, which was triggered by Fed Chairman Ben Bernanke after he reiterated that the Fed stands ready to do more Quantitative Easing (QE) – this sent all of the markets higher…Stocks, Bonds, Gold and Oil, all at the expense of the US Dollar.
With Mortgage Bond prices near the upper end of the trading range, I am recommending a Locking bias in the short-term ahead of Friday’s jobs report and before an important European Central Bank (ECB) meeting on Thursday.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
The Bond markets are soaring this morning after the government reported that there were 96K jobs created in August, well below the 130,000 that was expected. Bad economic news tends to push investors into safer assets like Bonds.
Looking further into the report it showed that the Labor Force Participation Rate (LFPR) fell to a 30-year low. The LFPR is the percentage of working-age persons between the ages of 16-64 in an economy who are employed or are unemployed but looking for a job.
Ideally, I would like to recommend a Floating bias until the middle of next week, as headline risk picks up once again.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Mortgage Bonds are trading lower this morning due to the weight of Treasury auctions this week, tough overhead resistance and the uncertainty surrounding the Fed statement that is set to be released Thursday afternoon.
Besides the aforementioned headwinds that Mortgage Bonds face this week, Bonds have a fundamental headwind, and that is inflation fears. The markets are now pretty much expecting Quantitative Easing 3 to happen and with more accommodative policy, comes higher inflation expectations.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
The highly anticipated Fed statement will finally be delivered today at 12:30pm ET and the big question isn’t so much if QE3 will be announced, but in what form it will take.
In economic news, the Producer Price Index (PPI) rose to its biggest gain in three years, but the spike was mainly due to surging food and energy costs. The PPI measures inflation at the wholesale level.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Mortgage Bonds are trading near unchanged levels this morning in the absence of any economic or geopolitical headlines.
Stocks have traded higher each of the last 8 Fridays. And today is Quadruple Witching Day, where contracts for stock index futures, stock index options, stock options and single stock futures (SSF) all expire. Stocks have traded higher in each of the last eight September Quadruple Witching Days, dating back to 2004.
Of course, all trends are ripe to be broken, but if Stocks grind higher, which could be the case today, it could be at the expense of Bonds.
I feel that locking with rates matching all time lows still makes sense. If anything changes, I will get back to you.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Leonard,
Thanks for the update. Your comments are always valid and timely. Keep posting!!!!
James
Mortgage Bonds are trading slightly higher today ahead of some big supply set to hit this week from the Treasury Department in the form of T Note offerings.
In economic data, Durable orders were unchanged in October, while the case Shiller Home Price 20-city index rose to its 6th straight monthly gain. In addition, Lender Processing Services reported that home prices rose in September from the prior month and are higher from a year ago while Consumer Comfidence jumped to its best level in more than four years.
I will continue a Floating recommendation for it is tough to see home loan rates move significantly higher from current levels. The Federal Reserve continues to keep home loan rates near record lows in an effort to shore up the housing market and that should continue well into 2013 or until such time that the sector can stand on its own two feet.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Mortgage Bonds continue their steady grind higher this morning aided by the ongoing weakness in the Stock markets.
The Fiscal Cliff issues remain a thorn in the side of the Equity markets especially after a remark from Senate Majority Leader Harry Reid late yesterday saying that there has been little progress in the debt talks, which caused a late day sell-off.
Technically, Mortgage Bonds will now battle former key technical resistance levels that have been hard to overcome since September.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Mortgage Bonds opened near unchanged levels and continue trade near the flat line despite better than expected economic data and a move higher by the major Stock Indexes.
In economic news, the second reading on 3rd quarter Gross Domestic Product (GDP) was revised higher Initial Jobless Claims dropped in the latest week. However, within the GDP report it showed that consumer spending dropped and inflation remained tame while Initial Claims remain stubbornly high due the impact of Superstorm Sandy on the East coast.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Leonard,
Thanks for the update! Looking forwards to working our next version of Hou$e Money (Charlottesville’s local TV show in real estate and real estate finance).
Yours in Service,
James
The Bond markets begin the last month of the year to the downside being pressured lower by better than expected economic news from abroad and as the Dow Jones Industrial Average tried to rally after two straight months of finishing in the red.
But this morning’s weak economic data from the ISM Manufacturing Index was able to erase some of the losses in Bond prices and caused Stocks to relinquish their gains.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
The capital markets are trading near unchanged levels this morning as players sit on the sidelines due to the uncertainty surrounding the Fiscal Cliff issues in Washington.
There are no economic reports due for release today but the big report comes at the end of the week with the release of the government’s monthly employment report. November’s numbers may be lower than the October numbers due to Superstorm Sandy impacting many businesses on the East coast.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Mortgage Bonds are trading lower in the aftermath of yesterday’s historic Fed Meeting, Stocks are flat while oil is also lower. Uncertainty surrounding the Fed’s new rhetoric in yesterday’s statement has caused investors to move to the sidelines today.
In economic news, Initial Jobless Claims declined while inflation at the wholesale level as measured by the Producer Price Index remained tame. Retail Sales rose in November after the impact of Hurricane Sandy subsided.
I am recommending to lock in the short term, but I feel that in the longer term, Floating is prudent as the Fed continues to hold home loan rates near record lows through its Mortgage Bond purchase program. If anything changes, I will get back to you.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
Stock investors continue to hope that a Fiscal Cliff deal will be reached on Capitol Hill by the end of this week. Stocks, as measured by the closely watched S&P 500 Index, closed at two-month highs yesterday, after several positive headlines from Washington hit the wires during the trading session yesterday.
In economic news, Housing Starts were lower in November while Building Permits, a sign of future construction, were higher than expected. However, Housing Starts were up 22% over the last 12 months, a positive sign, but the industry still has a lot of wood to chop in order to get back to more normal levels.
Mortgage Bond prices have fallen seven out of the last nine business days and the lower prices are luring investors into the market today. I am recommending a Floating bias, if anything changes, I will get back to you.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272
January 2013 #5: Cheat Sheet: What the CFPB’s Qualified Mortgage Rule Means to Lenders
Posted by SPSC on January 23rd, 2013 with Comments Off
VIA: American Banker
ORIGINAL ARTICLE: http://www.americanbanker.com/issues/178_7/cheat-sheet-how-the-cfpb-s-qualified-mortgage-rule-will-impact-lenders-1055723-1.html
Cheat Sheet: What the CFPB’s Qualified Mortgage Rule Means to Lenders
WASHINGTON — The Consumer Financial Protection Bureau released its long-awaited final rule on Thursday to establish new standards for all mortgages, including carving out a certain segment of loans called “qualified mortgages” that are deemed ultra-safe.
Much of the rule was as industry observers expected it, but the final regulation had some unexpected twists, including giving lenders a safe harbor legal protection for QM loans, but only for prime loans.
The bureau also designed the rules to allow more loans to attain “qualified mortgage” status, making it less restrictive than many lenders had initially expected.
“Our goal here is not only to stop reckless lending, but to enable consumers to access affordable credit,” said CFPB Director Richard Cordray in prepared remarks to be delivered Thursday in Baltimore. “We can draw up the greatest consumer protections ever devised, but if consumers cannot get credit, then there is nothing to protect.”
American Banker offers the following guide to the many provisions of this complex and important rule, including a breakdown of what qualifies as QM and how the regulation will treat loans owned by the government-sponsored enterprises.
Ability to Repay
The basic premise of the rule will require lenders to ensure borrowers have the ability to repay a loan.
To do this, lenders must verify eight underwriting standards including: current income or assets; employment status; credit history; monthly payments on the mortgage as well as any other mortgage-related obligations and loans associated with the property; other debt obligations and the monthly debt-to-income ratio.
As a result, the rule effectively eliminates the use of so-called no-doc or low-doc loans. It also prevents lenders from basing ability-to-repay decisions on teaser rates, instead requiring them to base it on the principal and interest of the mortgage over its life.
“The core of the ability-to-repay rule rests on two basic, common-sense precepts: lenders have to check on the numbers and make sure that the numbers check out,” Cordray said. “Borrowers no longer will be sold mortgages that are predestined to fail.”
The rule also allows lenders to refinance existing risky mortgages such as interest-only and adjustable-rate loans to a “more stable, standard loan” without having to meet the full underwriting process under the new rules.
Finally, the rule also bans prepayment penalties for certain fixed-rate, qualified mortgages and requires lenders to keep records demonstrating they have complied with the ability-to-repay rule for at least three years.
The ability-to-repay rule is expected to take effect Jan. 10, 2014.
Qualified Mortgages
Arguably the most important part of the final rule, the regulation also defines a new category of loans, “qualified mortgages,” that are guaranteed to comply with the ability-to-repay requirements.
Generally speaking, these are the characteristics of a QM loan:
a) The borrower has a debt-to-income ratio no greater than 43%.
b) Fees and points cannot exceed 3% of the total loan amount, although certain “bona fide” fees on prime loans are excluded.
c) Lenders must verify a borrower’s income.
d) The loan cannot include certain characteristics of nontraditional mortgages, including interest-only and negative-amortization loans, as well as mortgages for a period of longer than 30 years.
Of those requirements, the most important is arguably the new DTI standard.
“No standard is perfect, but this standard draws a clear line that will provide a real measure of protection to borrowers and increased certainty to the mortgage market,” Cordray said.
In his remarks, he noted a California homeowner named “Henry” who contacted the bureau after his home was foreclosed on. The kicker was that Henry received a mortgage for a home sold at more than half a million dollars based on his salary of $50,000.
“This kind of reckless lending was an endemic problem,” Cordray said. “I firmly believe that if the ability-to-repay rule we are announcing today had existed a decade ago, many people like Henry could have been spared the anguish of losing their homes and having their credit destroyed.”
While the industry has yet to respond in detail on the rule, however, some were already raising concerns that the QM definition was overly harsh.
“The 3% cap on points and fees appears to be overly inclusive, and would result in some loans exceeding the limit simply because the borrower used a mortgage broker, or chose settlement services from a provider affiliated with the lender,” Debra W. Still, chairman of the Mortgage Bankers Association, said in a press release.
Safe Harbor
One of the biggest questions industry watchers had was whether QM status gives lenders a legal safe harbor ensuring they could not be sued for violating the ability-to-repay loan, or whether it was just a “rebuttable presumption” of compliance.
The final rule essentially splits the baby, proposing to give safe harbor protection to all prime QM loans, but give only a rebuttable presumption to higher-priced QM loans, which are essentially subprime mortgages.
The CFPB said that distinction is similar to underwriting requirements established by the Federal Reserve Board in 2008 for higher-priced loans, but the consumer agency said it sought to be more detailed about what basis a consumer might have to launch a legal challenge.
“Specifically, the final rule provides that consumers may show a violation with regard to a subprime qualified mortgage by showing that, at the time the loan was originated, the consumer’s income and debt obligations left insufficient residual income or assets to meet living expenses,” the bureau said in its summary. “The analysis would consider the consumer’s monthly payments on the loan, loan-related obligations, and any simultaneous loans of which the creditor was aware, as well as any recurring, material living expenses of which the creditor was aware.”
Prime loans meeting the QM criteria, however, would get a safe harbor, meaning it is “conclusively presumed that the creditor made a good faith and reasonable determination of the consumer’s ability to repay,” the summary said.
Still, the bureau indicated even for loans receiving a safe harbor, borrowers may have legal avenues to argue lenders did not do all their homework.
“Consumers can still legally challenge their lender under this rule if they believe that the loan does not meet the definition of a qualified mortgage,” the bureau said in a fact sheet accompanying the rule. “This does not affect the rights of a consumer to challenge a lender for violating any other federal consumer protection laws.”
GSE Loans
In its summary, the CFPB acknowledged one of the industry’s greatest fears about the QM rule: no one is going to make loans that fall outside of those criteria. As a result, it said it would allow temporary flexibility for DTI requirements for seven years or until Congress passes housing finance reform, whichever happens first (Given lawmakers lack of appetite for this subject, seven years is a pretty safe bet.)
This means that loans that generally meet QM criteria (but not necessarily the 43% DTI ratio) will be presumed to meet QM if they also satisfying the underwriting requirements for loans insured by Fannie Mae and Freddie Mac or the federal government.
For now, it also means the final rule will continue the dominance of GSE-owned mortgages in the market, at least until policymakers enact housing finance reform.
Balloon Payments
Loans with balloon payments are generally not considered QM loans, except for those made by smaller lenders in rural and underserved communities.
Under the rule, a lender must have no more than $2 billion of assets and make at least half of its first-lien mortgages in counties considered rural and underserved. Loans must also have terms of at least five years, fixed interest rates and meet certain basic underwriting criteria.
Such lenders must also consider DTI ratios as part of underwriting requirements, but do not have to comply with the 43% ratio.
The CFPB said it will produce a list each year of rural and underserved counties.
Comments are closed.
Leonard Winslow
Direct: 434-760-2580
E-fax: 434-688-0496
943 Glenwood Station Lane, Suite 200
Charlottesville, Va. 22901
leonard.winslow@newamerican.com
web: http://www.newamerican.com/leonard.winslow
http://www.facebook.com/CharlottesvillesLoanExpert
License #MLO-4817VA-NMLS #265272