Financial Update by Maurice Soussé

Happy Friday,

Interest rates are pretty flat this week after a little bump on Wednesday and Thursday. The 10 year treasury closed at 1.62 which is a tad higher than last year.

On Monday a new government rule goes into effect. The AML or anti-money laundering rule will become effective. We once again become a sort of industry policeman that is required to report to the Federal Government any suspicious transfers of money in a file. The tracking of money is the single most item that time delays loan files. When clients have to move money from one account to another, cash in an IRA, stocks or a 401k, it requires us to prove the money was in an account, was cashed in and then deposited to the next account (as well as verifying it is now there). Crikey!! We really try to inform our borrowers of this in advance so we don’t delay too much on closing times.

Take a look at the FHA financing today. The rates quoted are not only at zero points, but, they also have a credit toward closing costs. It is a great way for a borrower to put only 3.5% down.

We are actively closing 5% down conventional purchases again as most markets are now pulled from their “declining” status like we have had for the past few years. 5% down conventional loans go up to $417,000.

This week’s quote from Leo Tolstoy is great; If you want to be happy, be.

Rates 081012, the Sousse Group, Luxury Irvine Condos, Luxury Newport Beach Homes