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Market Insight
Have you metChad...lately?
Market Insight
Have you metChad...lately?
FNMA 4.5% coming up short on the day by about 6bps. Investors are expecting auctions of $33 billion in 3-year notes, $17 billion in re-opened 10-year and $10 billion in re-opened 30-year Treasuries over the next 7 days... Remember supply and demand? Perception of such added supply to the bond market weakens pricing across the board...not just in the individual vehicles noted above. RATE ON THE 30 YEAR FIXED still JUST under/just over 5% range on conventional loans.
The ADP Employment Report is predicting a loss of 685,000 jobs for this Friday's official February Jobs Report. Yikes!
Huge news for home home owners! Today it was announced that the "sequel" to the "Hope for Home Owner's" program (required a person to be in default before they could get help...and as of Feb 12th only 25 refinance loans had been done) is soon available. It looks like the new program called the "HOME Affordable refinance program" will help home owner's who have seen the value of their home decline a national average of 27% since 2006.
The plan is seen as one of the first truly good things so far to come from the new administration and the focus is on helping those with good payment history and documented financial hardship. The program would help those who have a mortgage payment on their "PRIMARY" residence with a payment that is over 31% of their gross monthly income. It is a note modification program that will have rates as low as 2% to get that payment down to about 31% of a person's gross income. It can be used for loans up to 729k(ish) so it is a broad brush...
It looks as if the feds plan to pick up some or in some cases ALL of the payment difference between where the borrower "is" and where the feds feel they should be. So for example: if borrower A makes 1000/month...and his first mortgage on his primary residence has a payment of $500.00 or 50% of his gross income...the lender would agree to modify his mortgage so that the payment would be $310.00. That is a 190 dollar difference. According to the attached guidelines: the feds will reimburse the lender/investor for the payment difference between 31% and 38% of the borrower's income...so the lender would get $70 to offset their loss. Additionally though: other incentives are offered to the lender for up to the first 3 years to offset the "loss" realized by modifying the mortgages. If the same borrower had a mortgage payment of 38% of their gross income...the feds would pick up the entire difference up to a certain amount.
Please feel free to read more by clicking below and checking out the attachment: <click> http://www.ustreas.gov/news/index1.html
(Attachment is hosted at: http://www.treas.gov/press/releases/reports/guidelines_summary.pdf
This is potentially GREAT NEWS for an estimated 7-9 million home owners. SO: What better time than NOW to touch base with your clients and encourage them to speak with a qualified lender such as myself. (Naturally ALSO anyone on my team at MetLife...and many other great lenders right there in your local markets...)
I was just visiting with a friend who pointed out that we KNOW who has been doing it right for our clients in our communities. Lenders and Realtors alike have a great opportunity to continue in that. Hopefully some of the new things coming soon will continue to provide support to the real estate market. It has been noted that REAL ESTATE is truly an anchor industry with so much of our economy counting on its success...and I can only project that efforts will continue to further stabilize our markets.
Have a great eve!
--
Chad Schauers
Have you metChad?
MetLife Home Loans
406.522.0922
406.522.0924 (fax)
1924 W. Stevens, Ste. 202
Bozeman, MT 59718
Cell: 406 799 8613
ccschauers@metlifehomeloans.com
The ADP Employment Report is predicting a loss of 685,000 jobs for this Friday's official February Jobs Report. Yikes!
Huge news for home home owners! Today it was announced that the "sequel" to the "Hope for Home Owner's" program (required a person to be in default before they could get help...and as of Feb 12th only 25 refinance loans had been done) is soon available. It looks like the new program called the "HOME Affordable refinance program" will help home owner's who have seen the value of their home decline a national average of 27% since 2006.
The plan is seen as one of the first truly good things so far to come from the new administration and the focus is on helping those with good payment history and documented financial hardship. The program would help those who have a mortgage payment on their "PRIMARY" residence with a payment that is over 31% of their gross monthly income. It is a note modification program that will have rates as low as 2% to get that payment down to about 31% of a person's gross income. It can be used for loans up to 729k(ish) so it is a broad brush...
It looks as if the feds plan to pick up some or in some cases ALL of the payment difference between where the borrower "is" and where the feds feel they should be. So for example: if borrower A makes 1000/month...and his first mortgage on his primary residence has a payment of $500.00 or 50% of his gross income...the lender would agree to modify his mortgage so that the payment would be $310.00. That is a 190 dollar difference. According to the attached guidelines: the feds will reimburse the lender/investor for the payment difference between 31% and 38% of the borrower's income...so the lender would get $70 to offset their loss. Additionally though: other incentives are offered to the lender for up to the first 3 years to offset the "loss" realized by modifying the mortgages. If the same borrower had a mortgage payment of 38% of their gross income...the feds would pick up the entire difference up to a certain amount.
Please feel free to read more by clicking below and checking out the attachment: <click> http://www.ustreas.gov/news/index1.html
(Attachment is hosted at: http://www.treas.gov/press/releases/reports/guidelines_summary.pdf
This is potentially GREAT NEWS for an estimated 7-9 million home owners. SO: What better time than NOW to touch base with your clients and encourage them to speak with a qualified lender such as myself. (Naturally ALSO anyone on my team at MetLife...and many other great lenders right there in your local markets...)
I was just visiting with a friend who pointed out that we KNOW who has been doing it right for our clients in our communities. Lenders and Realtors alike have a great opportunity to continue in that. Hopefully some of the new things coming soon will continue to provide support to the real estate market. It has been noted that REAL ESTATE is truly an anchor industry with so much of our economy counting on its success...and I can only project that efforts will continue to further stabilize our markets.
Have a great eve!
--
Chad Schauers
Have you metChad?
MetLife Home Loans
406.522.0922
406.522.0924 (fax)
1924 W. Stevens, Ste. 202
Bozeman, MT 59718
Cell: 406 799 8613
ccschauers@metlifehomeloans.com
