Mortgage Bankers Storm Troopers

The Mortgage Bankers Association (MBA) loyal to the Empire awakened Monday morning after a two week holiday hiatus.   
The results are both for the week ended January 1, 2016 which MBA adjusted for the Christmas and New Years Holidays.

MBA's Market Composite Index, a measure of mortgage volume, was down 27 percent from the week ended December 18 on a seasonally adjusted basis.  On an unadjusted basis the Index was 50 percent lower. This is normal for holiday season as Borrowers take off work, head to the malls, movie theaters and share family dinners. 

The Refinancing Index declined 37 percent from the week of the previous report and the seasonally adjusted Purchase Index was down 15 percent.

FHA  applications increased to 14.6 percent from 13.8 percent the previous week and the VA share was up to 12.9 percent compared to 11.6 percent. 

The USDA share of total applications remained unchanged at 0.6 percent.

Average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.20 percent, its highest level since July 2015, from 4.19 percent, with points decreasing to 0.42 from 0.49.  The effective rate decreased.
Jumbo 30 year fixed rate mortgage (loan balances greater than $417,000) had an average contract interest rate of 4.09 percent compared to 4.07 percent.  Points increased to 0.35 from 0.34 and the effective rate was also higher.
Thirty-year Fixed Rate Mortgage backed by FHA had a slightly lower interest rate, 3.95 percent compared to 3.97 percent the previous period.  Points increased to 0.41 from 0.34 leaving the effective rate unchanged.
The largest change in contract rates among fixed rate mortgages was for the 15 year which rose 5 basis points to 3.47 along with a 2 basis point increase in points.  The effective rate also increased.
The average contract interest rate for 5/1 ARMs increased to 3.19 percent from 3.13 percent but points dropped to 0.32 from 0.52 lowering the effective rate.

Even with Janet Yellen predicting rising mortgage rates, over all we are only a "smidge" higher.

The Force Awakens now with mortgage bankers and Borrowers back to usual after the holidays.

With the stock market terribly earthquake volatile, I predict Borrowers will get off the fence and
move into the conservative home loan that they have been thinking about but not executing.

The time is now to lock your rate and get it closed.
Will Finn win in his battle with the storm troopers?


Caroline Gerardo
NMLS
324982

cell (949) 784-9699

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:

• MBS Commentary: MBS RECAP: Unfazed by Strong Data and FOMC, Bonds Rally
• Mortgage Rate Watch: Mortgage Rates Nicely Lower Despite Strong Jobs Data
• Pipeline Press: Fannie/Freddie Changes; Positive Millennial Trends for Lenders; Chase Settlement
• MND NewsWire: MBA Rounds up Holiday Mortgage App Stats
• MBS Commentary: MBS Day Ahead: Global Risk and Oil Give Bonds a Head Start

Star Wars Mortgage

Star Wars Year End Statement and

Prepare for Income Taxes

A blow up version of Darth with

a cheerful Merry Christmas banner fitting in preparing

a greeting for tax time... 

January 5, 2016

Dear Friends and Mortgage Borrowers:

I imagine that you are beginning to prepare for what undoubtedly (next to submitting mortgage paperwork) is one of America’s favorite activities- filing income taxes.

Each year, the company who owns your loan will send you a mortgage interest statement that summarizes the amount of mortgage interest that you paid for the previous year. This statement may or may not include potentially tax deductible items relating to your mortgage. The mortgage interest statement is something that you should provide to your tax advisor.

Additionally, since you did close a new mortgage loan in 2015, there may be items associated with that closing that are tax deductible. At the end of your mortgage adventure, you were sent a Final Settlement statement by the escrow company and this statement should be given to your tax advisor. To save you the time and trouble of looking for this in the mountain of paper that you have from the mortgage process, I have included a copy of your Final Settlement statement for you to give to your tax advisor in addition to the mortgage interest statement.

Please call me if you have not received your 1099 - you can use a Final HUD1 from escrow or

Closing Disclosure after October 3rd with your income taxes.

It was my pleasure to help you with your mortgage last year and please do not hesitate to contact me for any future needs or with any questions that you may have.

Sincerely,

C G

Caroline Gerardo Barbeau

NMLS 324982

Eagle Home Mortgage a Lennar Homes Company

NMLS #849059 CA #813I609 Universal American Mortgage Company of California, dba Eagle Home Mortgage of California.

Licensed by the Department of Business Oversight under the California Residential

Mortgage Lending Act. RMLA #4130383, NMLS #252392. Certain restrictions apply. This is not a commitment to lend.

Applicants must qualify.

C. G. Eagle Home Mortgage California

No matter where you are in California, Eagle Home Mortgage is
here to close your loan quickly and with kindness.

It was a pleasure to work with you on a transaction in 2015. 

I hope you have a terrific and successful 2016. 

I want to pass along points of interest, things we offer that can be helpful to you and your clients in 2016:

            Pre Approvals done same day

            Phone calls always answered.

  Answers for tough questions completed on the phone or within one     hour

            In-House processing, underwriting, docs and funding.

   The whole team is in my office

            Loans underwritten in 24 hours on submitted files

            Loan doc’s same day or within 24 hours. We fund on a Fax.

            Appraisals ordered day one

            FHA/VA, Conventional & Jumbo loan products

            Grant programs, DPA products

            Condo project reviews done in house

            80/10/10 piggy back loans

            Joint marketing

            Mail and printing done In-house  

            Able to talk with on-site underwriters

            Deal Desk

            Close sales in 30 days or less

We exceed expectations daily!

I’ve been closing loans for over 30 years, here at Eagle Home Mortgage funding loans is much, much easier! Referrals have double over the past year as a result…

As part of the Lennar Family (A Fortune 500 company) we have great support and are extremely reliable in mortgage origination.

Have a great and successful New Year,

C. G.

The Loan Lady

(949) 784-9699

NMLS 324982

Commited to Seeing You Home

Drive Freshman Back to University California

I drove my youngest back to University of California Saturday morning.

Today I worked in the garden finishing rose Christmas pruning, cleaning the

pool filter and the end of scraping the flowery wallpaper down.

Traffic was awful on the Interstate 5 north.

We started counting the cars with U C Berkeley license plate frames or

any suspicious vehicle piled high with Santa bags, college sweatshirts, bedding

and two to three students also wading through the bumper to bumper wait to

return to their dorms. U C system break is over. The cafeteria is open. Classes

resume Monday.

Fortunately for my son he got into the advanced Physics Class. He emailed 

the professor numerous times over the past two weeks- pleading for a seat.

Is our communal experience of driving or flying our Freshman student back to

the away from home destination all shared joy and a bit wistful?

I wish you happiness in 2016.

Write out your goals for everything-

spiritual, financial, education, family, health and joy.

Gum wall above from our College Tour trip to Seattle.

Was the offer of full scholarship there a better placement?

Only heaven knows ~

In the end my son chose for his own plans and dreams.

How did you deal with your empty nest?

I got the wunderlust and decided not to stay overnight.

Seventeen hours driving, this evening my legs are not land worthy.

Stick with your plans my friends