Dennis' Mortgage Blog

I am using a new contact/database management program so my formatting is a bit off and I hope I am able to get it to everyone okay.  Remember you can always get this update every Friday on the web at my Mortgage Blog.           

Please keep in mind layered risk pricing for all loan products for credit score and loan to value mixes. Call for quotes.

Another week of the rates getting pummeled has passed.  Folks we are in an up rate environment.  Here are some pointers with how to handle this to protect clients and escrows:

1) Lock, lock, lock.   Location, location, location may be the mantra for the industry, but if the rate jumps on a client a client and they no longer qualify then it the location will not matter, the deal is done.

2) Make sure all borrowers are prequalified at one-quarter of one percent over the current market rate.  If you had someone prequalified last week at 5.75% and wrote an offer today on that prequalified amount you may have an unqualified buyer.

3) Make sure that the lock is at least to the close of escrow--if possible slightly beyond as we do know that not all escrows close on their scheduled closing date.

4) Find out what is needed to get the loan submitted, approved, to docs and for funding--keep open communication about the status of these items with the borrower so you are aware of timing issues for the critical final steps.

Look at the chart below, if you client was locked on January 15th and had to re-lock today could they qualify?  This is why we want to make sure we have a sufficient lock period and a bit of a cushion in qualifying and in closing.      

Both Jumbo and Conventional got hit this week, although the increase in conventional is higher with an increase of 0.25% from last Friday presenting a rather unusual curve in the chart below.

NOTE PRICING BELOW IS BASED ON 15% DOWN FOR JUMBO LOANS AND 10% DOWN FOR CONFORMING, FULL DOC, AND FICOS OF 720 AND ABOVE:

30 year conventional at 1 point 6.125%

30 year jumbo at 1 point 7.125%

The market is still volatile, we are still seeing lenders with fungible guidelines and products, so make sure you and your clients are very diligent in communicating to everyone in the transaction.

I would appreciate it if you could pass my name on to someone who needs mortgage information this week, or send me their name and contact information and I am happy to see how I can be of service. Thank you!

Please feel free to forward this email to your co-workers and clients--or send them to my Mortgage Blog where it is posted weekly.

Have a great weekend,

Dennis

Dennis C. Smith
Stratis Financial
Direct (562) 472-1118

Mobile (562) 243-6912

Fax (562) 684-4316

My Mortgage Blog
 

www.DennisCSmith.com : apply on-line, check rates, check loan status and much more