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7/08/2010

Mortgage Rates Fall getting one is a bigger Pain


Mortgage Rates Hit another Historic Low Good news Bad News
Interest rates low, and a few Economists are now saying rates could go lower! Shocking that the European Central Bank holds off reacting to the crashing E. U.
The Institute for Supply Management yesterday said it’s services index fell to 53.8 in June from 55.4 in May. Thomson Reuters expected a level of 55.0. Treasury prices pushed down interest rates, which have been falling for weeks. Tuesday the yield on the benchmark 10-year Treasury note fell to 2.94 percent from 2.98 percent late Friday. It hasn’t been below 3 for a while.
Mortgage refinances heat up but despite the lower rates getting a loan is not easier.

Getting a loan is more difficult than ever before. The key component to closing your home loan is who is your lender.
During the process do not buy. Do not shop for anything. Do not even think of looking at a car until after your loan is funded and recorded. Don’t call me paranoid until you hear what is going on behind the scenes.
Fannie Mae’s new loan quality initiatives ask lenders to continue to pull credit reports, at the beginning, during and closing process. Any inquiry for new credit will be followed to prove what is owed. The messy part is it is hard to provide proof that you did not open a new Bloomingdales account – if you ask Bloomies to give you a letter saying you didn’t open anything Bloomingdales will not provide the letter you need to prove the ghost does not exist.
Not only is your credit being scoured for new hidden accounts, the lowest middle number will determine your final pricing. Your FICO score now has become a vital organ.
Lenders may not tell you is behind the scenes they are ordering MERS reports to determine if you have other hidden cosign accounts, 4506T to actually see the IRS returns filed. Going to a broker is a position of out of control, you must go direct to the bank. Underwriters check and balance your dividends to match the accounts you claim for assets, and if you have failed to disclose any deductions. Lenders will check FBI records randomly of Borrowers and agents. You may be asked to allow a background check, which is looking for anything violent in your past.


Reference:
https://www.efanniemae.com/sf/lqi/index.jsp
“Fannie Mae is implementing the LQI enhancements to promote improved loan delivery data that is complete, accurate, and fully reflective of the terms of the mortgage. The LQI will also help ensure that the loan meets the credit and eligibility standards, pricing guidelines, and other requirements of the Selling Guide or negotiated variances. A primary focus is on capturing critical loan data earlier in the process and validating it before, during, and immediately after loan delivery.”
Mortgage Electronic Registration System (MERS®) report can be run to determine if the borrower has undisclosed liens and/or if another mortgage is being originated. MERS® ServicerID is a free service available to the public that allows users to obtain servicer information on properties with mortgage liens registered in the MERS®”


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