As if lenders and vendors don’t have enough other stuff to worry about, the budgetary standoff in the U.S. doesn't look like it will abate soon, raising the likelihood of the first government shutdown since 2019. Current funding for federal operations will end on October 1 unless a deal is reached or the proverbial can kicked down the road. Thousands of federal workers might be furloughed without pay. Sure it will be temporary, and its wider impact will likely be limited, but still even talking about it is lousy. According to Morgan Stanley, the last 20 government shutdowns that occurred since 1976 "appear to have had limited impact on the economy." As for bond prices, a shutdown may cause some "temporary instability", but this is not a given. There is talk of a short-term Continuing Resolution (CR) providing funding until later this year, but federal agencies, including HUD and Treasury, will cease to function normally. The National F
Start the day with a little something non-mortgage? Ira S. with U.S. Mortgage, on his time off, of course, found “River Runner.” One can basically click anywhere in the United States, and it will tell you, and your kids, where a raindrop will flow to the ocean. (No stories of you stopping at the Continental Divide with your drunk buddies, please!) This is cool technology, as opposed to ads that pop up on my computer from something I bought two years ago online. While on technology, here’s something else that anyone working with builders, or having a new home built, will find interesting: “Three Technologies that Buyers Will Expect from Home Builders in the Future.” Technology helped Zillow, which has never set foot in a house, determine that homes that have a front door that is either black or gray, can increase the home’s value by at least $6,271. (Today’s podcast is available here and is sponsored by Black Knight, providing innovative
The mortgage talk here in Cleveland is how, “Tough times never last but tough people do.” Many estimates have residential production hitting $4.8 trillion in 2021, so is there anyone left to refinance? Of course there is, and in many conversations with lenders, rate & term refis have been replaced by cash out. Black Knight, a mortgage technology and data provider, says there are still 3.8 million people who would benefit from refinancing (30-year fixed-rate mortgage holder with a maximum 80% loan-to-value ratio, a credit score of 720 or more, and a likelihood of reducing their current first lien rate by at least 0.75%) and potentially save $1 billion per month. But many MLOs and lenders have turned their attention to the purchase biz, so what are they doing? The current STRATMOR blog is, “What’s Next” about how lenders and MLOs are shifting to a purchase-centric focus. And unfortunately, even “purchase business” has a solid p
Ops, MLO Jobs; Broker, Payroll, ECOA Tools; Investors Agency Changes Dec 16 2020, 9:12AM
While virtual learning students bemoan the elimination of snow days, the U.S. Census Bureau recently came out with dozens of holiday-related facts and figures from its collection of statistics. For example, the U.S. imported $484.9 million of Christmas tree lights in 2019, with Cambodia leading the way at 47.3% of those total U.S. imports. That was actually less than the $546.8 million imported of tapered candles in 2019. Most of these came from Vietnam, representing more than 46.8% of America’s imported tapered candles. I don’t buy many new things that have instruction manuals. But every time I do, why do I feel a sense of relief when I find out that most of the pages of the instruction manual are due to them being in several other languages? Lumber doesn’t need an instruction manual, but one thing is for sure: wood prices are on fire. (Excuse the pun, West C
Dec 11 2020, 9:24AM
While here in Hawai’i, if anyone receives a message from me about canned meat, don’t open it. It’s Spam! With many sticking close to home, holiday traditions have renewed importance. Putting up the Christmas tree results in sap on your hands? Well, here’s how you get it off. Shelter in place like a boss! The CFPB is certainly being “a boss” and has issued two final rules to amend the ATR/QM Rule. These rules were largely in line with expectations. The General QM Final Rule amends the General QM definition and is available here. The Seasoned QM Final Rule creates a new category of qualified mortgages and is available here. Want a summary showing recent changes? Here you go. As long as I’ve been in this business the overriding principal has been to build a perfect mortgage, and right now, top lenders are firing on all cylinders: marketing, compliance & QC, origination, processing & closing, cost control, best execution in t