Financial Update by Maurice Soussé

We as mortgage lenders have dodged the first bullet this morning as the FED’s rule to limit the way mortgage loan officers are paid was temporarily halted. Part of this ruling says that compensation cannot be credited to consumers for any reason as the commission must be consistent from loan to loan. What does that mean to a real estate transaction? It means that if a lock period is coming up we cannot pay for the lock extension no matter what. In no way can we credit our compensation to the borrower toward any costs. We would not be able to pay for an appraisal, escrow, title, etc. Does that make sense? I don’t think so. Luckily the Appellate Court blocked this law temporarily last night as they head back to court Monday to see if the law will move forward as written. This weekend…Winning!!!

Rates are steady today with 10 year Treasury Bonds at 3.45%. Almost perfectly flat from last week. Take a look at the jumbo ARM’s as they are incredibly low. The purchase market seems to be picking up with a flurry of new loan calls for people starting to shop for homes. Winning!! Great for sellers and buyers.

Remember, “When one door closes, another opens; but we often look so long and so regretfully upon the closed door that we do not see the one that has opened for us”.