Financial Update by Maurice Soussé

Happy Friday,

Interest rates are about flat today from the last two weeks. The 10 year treasury has had only minor up and down movements in the past few weeks.

Today I have attached very important bit of information from our corporate real estate attorney. This documents talks about the Bank Secrecy Act and Anti Money Laundering program requirements. One of the toughest things in loans today is the movement of money by borrowers from one account to another. It is the single greatest thing slowing us down on loan files. When a borrower moves money from one account to the other we need to see not only the transfer by copy of check or wire, but also the proof that the money left the other account and the proof the money cleared into the new account. It is an absolute time killer on loans and is a large hurdle.

When borrowers have any money transferred in from family as a gift, or have a corporate reimbursement check, these type of deposits all need to be verified. As you can see by the attachment, the banks are very detailed in tracking any deposit that is usually over $1000. The ACT states $5000 for reporting to finCEN, but, banks look at the borrowers income level to determine smaller deposits need to be justified. We have had them documented as low as $800.

We try to counsel borrowers to have them keep all of the money in the same account or to move the money EARLY in the transaction so we are not chasing it at the end. It goes out in our first introduction letter. Please help to suggest that borrowers don’t move any money in their accounts without talking to us first.

Take a look at today’s 5 year interest only ARM. We can go to $5 million on that product and higher by exception. The rates are truly remarkable.

I love this week’s quote by Charles Schultz; I think I’ve discovered the secret of life- you just hand around until you get used to it.

Have a blessed weekend.

Rates 062112 The Sousse Group, Luxury Irvine Condos, Luxury Newport Beach Homes