Dennis' Mortgage Blog

Flight to quality was the phrase this week as the equity markets saw big sell off and investors putting their money into bonds for safe keeping.  With the current bandwagon being the housing market and mortgage defaults (will try to get post on my mortgage blog this weekend with my views on this) investors are looking to bonds as a safe haven for their money.  This could result in a downward turn in rates in the short term, however if stocks lose enough value then we could see a reversal as investors feel stocks are low enough to create value and jump back in.  Confusing huh?
 
Bottom line is despite all the activity in the bond and equity markets the last couple of days we have seen no change week to week on 30 year fixed rate mortgages--which given recent history is okay.  I like stability.
 
Remember to keep abreast of the changes in qualifying guidelines for most non-fixed rate fully amortized products.
 
No change from last week:

 

30 Yr. Fixed Conforming with 10% or more down: 6.375% at 1.00 point
30 Yr. Fixed Jumbo with 10% or more down: 6.625% at 1.00 point
 
Note these are for 30 day locks, purchase transactions with 10% or more down and strong FICO's. 
 
 
 
In the last week I experienced an interesting juxtaposition of the real estate industry and what really matters in the end.  Working with a new client who is a first time buyer with a young family.  Found a home and made an offer, the listing agent was involved in the ownership as her mother owned the home and passed away.  There was no disclosure on the MLS or otherwise and the buyer's agent was unaware of the relationship until after the offer.  Quickly a counter was issued and there was a verbal agreement to terms with a counter faxed by the buyer accepting the terms given by the agent/owner.  Then no word for a few days and eventually the agent came to surface and it comes out she was looking for a better offer and eventually got one despite her agreeing to price and terms.  No disclosure of relationship, failure to follow through on an agreement, failure to properly execute forms provided in a timely matter, driven by the money.
 
Juxtaposed to this was hearing yesterday that Long Beach real estate icon Charles Lane had passed and subsequent phone conversations with many who knew him.  Charles was a man of great integrity and philanthropy--he and his wife Jean have given tremendous amounts of money and time to non-profits throughout the community.  One agent told me a story of Charles meeting a buyer at an open house.  The buyer loved the home and wanted to purchase it, but told Charles her agent would be out of town until the following week.  No problem said Charles, we will write the offer and when she gets back I will give it to her and she will continue to be her agent.  Faced with and opportunity to perhaps take the client and put together the deal and double his commission, Charles instead put together the deal and split the commission with the other agent.  That is integrity.
 
We are in a profession that creates tremendous wealth and generates tremendous income and commissions.  There is great potential for fraud, misrepresentation, misdeeds and misbehavior for all parties: lenders, agents, buyers, sellers.  In the end those who last approach the business as Charles Lane and many, many others have shown us: with integrity, with honesty, with diligence and with compassion that we are impacting families.  And when the deal is done to give a little back to the community that supports us.
 
I never had the honor to know Charles Lane personally, I had met him several times over the years but never fortunate enough to develop a personal relationship.  My life is the poorer from that, but richer for knowing what he stood for, how he conducted himself and what he represented.  A true role model.  My prayers to Jean and his family.
 
Which agent would each of us want to work with?  I try to live up to the standards Charles set for our industry, I owe that to each of my clients and also my family.
 
Have a great weekend.
  
 
Dennis
 
Dennis C. Smith
Stratis Financial
Direct (562) 472-1118
Mobile (562) 243-6912
Fax (562) 684-4316
 
Posted by Dennis C. Smith on July 27th, 2007 2:05 PMPost a Comment (0)
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