Financial Update by Maurice Soussé

Interest rates are up about an .125% from last week were even higher earlier in the week when one of the FED members suggested that they could scale back bond purchases earlier than the March discussion last week. Next week more economic data will be released and we may see some rate movement. Stay tuned for details.

Some big news is upon us this week as FNMA will be changing their automated underwriting system this weekend to include a way to bypass short sale information that is coding on a credit report as a foreclosure. We have had many challenges with this over the past few years. A borrower may have a short sale, but, the credit report codes it as a foreclosure as the borrower may have gone in to default during the process. This has created some large challenges forcing us to manually underwrite files which causes delays and often requires borrowers to put more down. On Monday, the new FNMA release will have a check box in which we can eliminate that mortgage that was short sold from the automated underwriting equation. The computer will disregard the loan altogether as it underwrites the loan allowing us faster approvals.

Take a look at the 5/1 Jumbo Arms…2.625%. That is not a misprint. That rate is good up to $5 million in loan amount. Super stuff for someone that may not hold the loan for a long time.

This week’s quote is from Carolyn Wells who said “Happiness is the ability to recognize it.” Take a moment to be thankful and happy for a blessing you have as we enter this Thanksgiving season.