Financial Update by Maurice Soussé

Interest rates are flat from last week with no real changes to any programs. We had a bit of a bump yesterday but that eased back down today. Wall street seems to like the 10 year treasury at about 1.84% in this business environment.

We are having some great success on the “Self Employed” program. Our portfolio loan allows a self-employed borrower with a large down payment, great credit history and high reserves to be able to qualify using business bank statements (a special formula is used to calculate income). It is a great tool to help more borrowers qualify. Call us for details.

Another bulletin came out late today in regards to a new ruling from the CFPB in regards to “broker” compensation. As it stands now a brokers compensation percentage is set with each lender in advance and it cannot vary from deal to deal. We also cannot credit any part of our compensation to the buyer, even for any unforeseen costs or overages. The new rule that came out today will change that in 2014 will allow a broker to use parts of their compensation to pay for some “unforeseen” overages. Notice the date on that…2014. As a banker on many of our deals we are able to credit the borrower various costs toward closing fees and that will stay business as usual.

The quote this week comes from my own business partner Al Hensling who said “Mortgage Companies are fast becoming Compliance Companies that can occasionally do a Loan for a Consumer” How true that is!!

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