Financial Update by Maurice Soussé

We have a few things to go over in this week’s update, the first of which is HARP. FNMA released the new HARP guidelines that came out on November 15th. I have attached a copy for you to review. They look almost identical to the first HARP. The biggest thing to remember is that a loan must have been closed before May 30, 2009 to be eligible. We had two loan applications this week in which the original loan was made after that time period that had to be declined. Loans with PMI may also now be eligible. That is great news!!

The next important subject is that the House and Senate passed the Appropriations Bill. The President is expected to sign the bill today and the major component is restoring the loans for FHA to their pre-October higher limits. This is great news for owner occupied purchase clients to be able to achieve higher loan amounts with lower down payments. While we don’t know the date that the new limits will be implemented, we don’t see it taking long. Remember, this is not for FNMA and FHLMC, but only FHA loans. The other more restrictive limits are still in place for Fannie and Freddie. 

Rates are pretty flat from last week. Take a look at the 5 and 7 year fixed ARMS. Incredible!!!!!!!!!!

The quote this week comes from Epictetus who said “First say to yourself what you would be; and then do what you have to do”