Financial Update by Maurice Soussé

The weekend is upon us and we are in the 5th day of the government shutdown. For the most part in our industry it is business as usual. There are a few challenges on FHA and VA loans, but, conventional loans are moving right along. Thanks to our best investor, we have still been able to proceed in closing loans without having to execute the 4506 tax form with the IRS. This form helps us to verify tax returns and can’t be validated right now due to the shutdown. We are having borrowers execute the form and they will be run after the loan is closed. This is a great decision by our investor to help keep loans moving smoothly.

Rates are down a bit this week as the 10 year Treasury closed at 2.61% which is quite a bit lower than a month ago. I was asked how we determine the rates on the weekly sheet I distribute. We always assume a purchase transaction with a low loan to value and a FICO of 740 or over. The rates on the sheet are always approximately .125% better than refinances as most of our investors give an incentive for transactions. You can assume that the rates on the sheet are the best available at the time of print, lockable for 30 days and the lowest we have for a given day.

As we see all the arguing in Washington going on this week I thought I would end with a great patriotic quote I read. Giuseppe Mazzini said “Love your country. Your country is the land where your parents sleep, where is spoken that language in which the chosen of your heart, blushing, whispered the first word of love; it is the home that God has given you that by striving to perfect yourselves therein you may prepare to ascend to him.”