 |
FREE WEBINAR
Marketing & Selling as an Expert Mortgage Advisor
Tomorrow, Weds, October 23
2:00 to 3:30 pm EDT
Register Below
Licensing training does not show you how to succeed. This webinar will focus on marketing and selling not as a sales person but as an expert. This means selling without rates by using an advisor approach.
⇒ Legislative & market update
⇒ Lead conversion skills, including overcoming objections.
⇒ Marketing experts through your sphere
⇒ Better than homebuyer seminars: Advisor Seminars
⇒ Seminars for Realtors and Planners
⇒ Synergy Partners and Advisor Networking Groups
⇒ The PR Machine
⇒ Newsletters and other marketing vehicles of experts
Don't miss this session that will help you take your advisor knowledge and translate it into real production success and a long-term career fueled by referrals.
*************************
What Do You Get With The Trial?
Those who opt for our Free Trial get 14 days of free to the OriginationPro Marketing System and Certified Mortgage Advisor Webinars. There is no obligation to purchase or any automatic payments. You will receive the option to take a tour and double the term of your trial or skip the trial receive a discount. Contact us for information on the discount--
success@hershmangroup.com
Powerful and relevant content written by the industry expert--
⇒ Weekly newsletters without recipes and handy-homeowner hints
⇒ Sales articles for real estate agents
⇒ Finance & real estate articles for open houses and prospect conversion
⇒ A complete email library including customer service, recruiting, Realtors, alternative referral sources, refis and more
⇒ Mobile alerts easily readable on your targets' cell phones
⇒ Print newsletters, flyers &, postcards
⇒ Bonus: A complete advanced training/certification program.
|
| October 22, 2013
⇒ The Shutdown is Shut
⇒ MBA Hits Lower Loan Limits
⇒ Will 30-Year Loan Survive?
⇒ Cash Sales Dominate The Shutdown Is Shut
This column could have been written three weeks ago. With the crisis down to the very last minute -- the day before America would have had to default on our debt -- Congress came to an agreement. We think one reason that the markets did not completely fall apart as the crisis deadline approached is that they also felt this would happen at the last minute. The second part of the result which was predictable is that the issues were not permanently resolved. The agreement again "kicks the can down the road" and gives us additional deadlines early next year. The good news is that history also tells us that "repeat" deadlines have a smaller effect on confidence because we have been down this road before. History also tells us that Congress again will wait until the last second before resolving the situation next year--despite the time they now have created to negotiate. But perhaps we will be wrong this time.
The next question is--how will the two+ week government shutdown and the threat of the debt default affect the economy? As we mentioned in previous columns, we feel that this will be a good test of the resiliency of the economy recovery. There will be somewhat of a negative affect on economic output during the fourth quarter. But as long as that drop in output does not linger, the recovery should motor on. Good indicators of the strength of the recovery going forward will continue to be real estate and jobs. Though we do understand that in the short run jobs data will likely be skewed by the shutdown. Positive aspects of a softer fourth quarter economy would include reduced upward pressure on interest rates and more moderate oil prices -- at least for now. In the long run we believe that prospects for a continued real estate and jobs recovery are still positive.
Rates increased in the past week, but this data was released before the effects of the budget settlement were factored into the equation. Freddie Mac announced that for the week ending October 17th, 30-year fixed rates increased to 4.28% from 4.23% the week before. The average for 15-year loans also rose slightly to 3.33%. Adjustable rates were mixed, with the average for one-year adjustables falling slightly to 2.63% and five-year adjustables increasing slightly to 3.07%. A year ago 30-year fixed rates were at 3.37%. Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac -- "Rates edged up leading to the federal budget deadline this week. Recent confidence measures depict some of the effects of the government shutdown and uncertainty of the budget impasse. For instance, consumer sentiment in October fell for the second straight month to the lowest reading since January, according to the University of Michigan. Similarly, October's homebuilder confidence fell to a four-month low. However, despite these downturns in confidence, applications for home loans rose for the second consecutive week as of October 11th, elevated by increases in applications for refinancing." Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.
Current Indices For Adjustable Rate Mortgages
Updated October 18, 2013
Index
|
October 17
|
September
|
6-month Treasury Security
|
0.08%
|
0.04%
|
1-year Treasury Security
|
0.13%
|
0.12%
|
3-year Treasury Security
|
0.61%
|
0.78%
|
5-year Treasury Security
|
1.35%
|
1.60%
|
10-year Treasury Security
|
2.61%
|
2.81%
|
12-month LIBOR
| |
0.653% (Sept)
|
12-month MTA
| |
0.144% (Sept)
|
11th District Cost of Funds
| |
0.956% (Aug)
|
Prime Rate
| |
3.250%
|
|
  The Ask The Expert Column is sponsored by NACSO. NACSO –- National Association of Credit Services Organizations -- advocates for strong industry standards, consumer protection, and ethical business practices for the credit repair industry. For more information of NACSO's Standards of Excellence and NACSO membership, Click Here. To read the latest blog article on NACSO's site, Why Disputing Credit Report Errors The Way The Experts Recommend Could Hurt, Not Help, Click Here
The final part of the answer to this question: I read your column last week and I have a similar question. I have been referred to a Realtor and I want to make sure I get the appointment. How can I increase my chances of making this happen? Phil from Maryland
We moved from procuring the appointment to an important questioning approach. Now let's talk about the questions themselves. Remember, we procured the appointment by perhaps promising that we would not strong on them for business. So starting with--can you send me a deal -- is not the right approach. Show interest in them and how they do business. What challenges do they face right now? How do they react to these challenges? What seems to be working and what does not? If they had one other resource to help with their business, what would it be? Notice we are steering away from mortgages and asking about what is important to them. Perhaps you will procure information that will help you educate other agents. And even when you get on the topic of loan officers--ask them what they like about their favorite loan officer. Add a question such as -- what do you which they could do but they can't? Of course, if an opening comes up--be ready to follow up or pounce. Asking questions is a skill--and if you are doing most of the talking, you are having an in-effective meeting. Dave
Interested in learning how to move your database of your sphere from a few hundred to a few thousand? It is simple, but not easy. I go over how in my Sphere Marketing Webinar. If you would like to listen to a recording, Click Here for the free trial of the OriginationPro Marketing System which includes the Certified Mortgage Advisor Program and you will get access to the last two recorded CMA webinars, including Maximum Sphere Marketing.
Do you have a reaction to this commentary or another question you would like answered? Email us at success@hershmangroup.com.
 Breaking News. The Mortgage Bankers Association expressed concerns over recent reports that Federal Housing Finance Agency might reduce conforming loan limits for Fannie Mae and Freddie Mac, saying a reduction would be “disruptive” to the economy and the housing recovery. The letter to FHFA Acting Director Edward DeMarco said a potential reduction, combined with regulatory changes taking place in January, could combine to tighten credit and have a “significant impact” on thousands of families. “As we have discussed previously, a reduction in loan limits at this time would be disruptive to the ongoing housing recovery and the economy as a whole,” wrote MBA President and CEO David Stevens. “While the housing market has improved in many areas of the country, the recovery remains fragile and uneven. Many potential homeowners remain on the sidelines unable to purchase a home or refinance their home loan due to persistently restrictive credit standards resulting from regulatory and market uncertainty.” Stevens noted credit underwriting standards above the GSE limits are even more restrictive, with any reduction in loan limits would have a significant impact on thousands of families caught between the current limits and new, lower limits. Moreover, on January 10, many changes from the Dodd-Frank Act will go into effect, including the ability-to-repay and Qualified Mortgage requirements, which he said virtually all observers recognize will “tighten credit standards further and reduce availability.” Any FHFA action to lower loan limits would also undermine the special category of QMs created by the Consumer Financial Protection Bureau for loans that are eligible for Fannie Mae and Freddie Mac purchase,” Stevens said. “CFPB expressly created this temporary method of qualification to ensure that implementation of the QM/ATR rule would not unduly impair credit access at this critical time in the recovery.” Source: The MBA
Some housing industry experts argue that cutting the government's role too sharply will make the popular 30-year product too expensive for the majority of borrowers and shake the housing market's stability. But proponents of the government holding a smaller market share — the federal government guaranteed nearly 90 percent of new home loans last year — say that any overhaul of the residential finance system that maintains a robust backstop not only leaves taxpayers on the hook again but will allow the market to wade right back into the quagmire that led to the housing crash and near economic collapse. Meanwhile, President Obama and congressional Democrats and Republicans are touting proposals that they say preserve the popular loan, which is considered the bedrock of the industry, as part of a broader plan to eventually eliminate Fannie Mae and Freddie Mac. Obama expressed his desire in a series of speeches, to protect the 30-year fixed-rate loan and spur private investment while arguing that some level of government involvement is needed to ensure that the loan is available to a majority of middle-class borrowers. David Stevens, president and CEO of the Mortgage Bankers Association, expects that the government's role will fall to between 40 and 60 percent, based on economic conditions, from the nearly 90 percent now, as part of the overhaul. Mark Zandi, chief economist with Moody's Analytics, says the guarantee should apply to between about one-third to 50 percent of future originations, which would be consistent with times in the past when the housing finance system worked well. "This would also ensure that the popular 30-year fixed loan remains a mainstay of the residential finance market," he said. "Without a government backstop, the loan would become a marginal loan product as it is nearly everywhere else in the world." Source: The Hill
The nation's foreclosure inventory continues a precipitous decline, falling 33 percent year-over-year in August, according to CoreLogic’s August National Foreclosure Report. About 939,000 homes were in some stage of foreclosure, down from 1.4 million in August 2012. “The foreclosure inventory continues to improve, as exhibited by these recent numbers,” says Mark Fleming, CoreLogic's chief economist. “A surge in completed foreclosures and a rise in the foreclosure inventory is unlikely given continued house-price improvements and shortages of supply in many markets.” The foreclosure inventory in August represented 2.4 percent of all homes with a loan compared to 3.3 percent in August 2012. Shadow inventory is another threat that is starting to recede. The residential shadow inventory in August fell to its lowest level since August 2008 to 1.9 million homes. That represents a 3.7-month supply and is down 38 percent from its 2010 peak of 3 million homes, according to CoreLogic. "Over the past year, the value of the U.S. shadow inventory dropped by $87 billion, a sign of increased normalcy in the housing market,” says Anand Nallathambi, president and CEO of CoreLogic. “With a year-over-year decrease of 22 percent in July, the shadow inventory has now declined steadily for 10 consecutive months.” In August, the number of completed foreclosures fell 34 percent year-over-year. Completed foreclosures, however, are still high by historical levels. Prior to the housing crisis, completed foreclosures — the total number of homes actually lost to foreclosure — averaged 21,000 per month between 2000 and 2006. In August, they were at 48,000. Since the financial crisis began in 2008, about 4.5 million homes nationwide have been lost to foreclosure. Source: CoreLogic
Fannie Mae and Freddie Mac should “at least marginally reduce loan limits” to reduce the government’s dominance of the residential finance market, according to the American Securitization Forum. “While some argue that the economic recovery has been too fragile to disrupt the GSEs’ market share, ASF views the GSEs’ vise grip on the residential finance market as preventing private capital from re-entering the market,” said Tom Deutsch, ASF executive director, in a letter sent to the Federal Housing Finance Agency. “Marginally reducing conventional conforming limits to $400,000 would have pushed no more than 2% of the 8.6 million home loans originated in the U.S. in 2012 out of the GSE market and into non-taxpayer hands that would take the credit risk of those loans,” he said. “That would hardly have disrupted the housing recovery or hurt middle-class Americans taking out an average loan of $200,000.” Other industry trade groups have opposed the lowering of loan limits and the FHFA’s power to do so. Source: National Mortgage News
All-cash homebuyers are playing a major role in the housing recovery, sometimes squeezing out potential buyers who need to get a home loan, according to a new report by Irvine, Calif.-based RealtyTrac. Nationwide, an average of 40 percent of home sales in July were all-cash deals, up from 35 percent in the preceding June and 31 percent in July 2012, RealtyTrac reported. The national average is driven up by the high proportion of all-cash sales in states where housing markets are recovering fast after being hard hit by the bursting of the housing bubble. Six states saw half or more of all home sales paid in cash during July, led by Florida at 66 percent and Nevada at 64 percent. "Low inventory of homes available for sale is proving to be a double-edged sword in many local housing markets that have bounced back quickly from the real-estate slump," said Daren Blomquist, vice president at RealtyTrac. Noting that home prices are rising in many markets due to low inventory and strong demand, he said, "Sales volume in these markets is down even as the percentage of cash sales rises, indicating there is still strong demand but that buyers who need financing to purchase are increasingly left out in the cold." Source: Mortgage Daily |
|
No comments:
Post a Comment