TEAM EMPOWERMENT MORTGAGE CHATTER: January 25: Freddie & Fannie’s future delayed; NMLS public comment; The “Real” American Idol; RPM Jumbo Loan Program Press Release; Co-Branding


“There’s lots of people in this world who spend
so much time watching their health that
they haven’t the time to enjoy it.” Josh Billings: 19th century humorist

 Plans for Freddie and Fannie  – which are “required” by the end of January per Dodd-Frank, have now been pushed back until mid-February. “Officials say the delay is needed to accommodate other major policy initiatives, including next month’s release of the annual budget and the president’s State of the Union address today.”

While we’re on the topic, wanna buy a house? Call the agencies – Fannie & Freddie’s combined inventory of foreclosed residential property has quadrupled in just three years and now stands at $24 billion, and the number of properties on their books (over 241,000) has increased fivefold. That’s roughly a third of the total U.S. portfolio of repossessed homes. And the numbers show no signs of declining, since it seems that nationwide foreclosures are going up faster than buyers can be found.

The Nationwide Mortgage Licensing System and Registry (NMLS) is conducting the third annual NMLS User Conference & Training February 7-10, 2011 in Orlando, Florida. “The NMLS User Conference & Training brings together state and federal mortgage regulators, industry professionals, compliance companies, top law firms, and education providers to learn about the latest developments in mortgage supervision and to discuss pressing issues confronting the industry.” Website: NMLS

There is word out there that the FHA will suspend its anti-flipping rule for a second year in 2011. HUD’s existing rule, that prohibits the FHA from insuring a mortgage on a home that was owned by the seller for less than 90 days, was temporarily put on hold last February to help liquidity. There are certain restrictions, well known in the industry, but a HUD spokesman reported told HousingWire that the rule is currently “in the clearance process.”

Yesterday MBS prices worsened by .125, which was not enough for many investors to change their pricing and instead they let it eat into their profit margins. MBS volume was light, probably reflecting the state of new rate locks coming in the door. 10-year notes closed around 3.41%. Today for economic news we have nothing too dramatic: the Case-Shiller 20-city Index, along with Consumer Confidence, the FHFA Housing Price Index, the 2-yr auction, and tonight’s State of the Union Address. One issue contributing to this morning’s markets here in the US was a much-lower-than-expected GDP (Gross Domestic Product) number out of the UK. We find the 10-yr yield down to 3.35% and MBS prices better by roughly .250.

The Real American Idol – HOMEOWNERSHIP!
Simon Cowell would have to be considered congenial compared to the critics of real estate in the last few years. But like the popular TV show, where the ultimate winner is not chosen by a select few but instead by the vote of the nation, homeownership again has proven to be the choice of the people. There have been numerous survey’s and polls done in the past 90 days that confirm this.

American Attitudes About Homeownership is a new survey conducted by Harris Interactive for the National Association of Realtors. The findings of this survey combined with the findings of Fannie Mae’s November National Housing Survey and last week’s Gallup Pollpaint a clear picture that the majority of Americans still value homeownership and believe in its benefits. In the latest survey, America’s belief in owning a home came through loud and clear.
Here are a few of the findings:

Homeowners and renters agree that owning a home is a positive choice. A majority of homeowners and a sizable percentage of renters agree or strongly agree that owning a home provides a healthy and stable environment for raising a family (87 percent among homeowners and 64 percent among renters), that it helps them meet long-term financial goals (77 percent among homeowners and 55 percent among renters) and it helps them realize the American Dream (70 percent among homeowners and 48 percent among renters).

Most homeowners (95 percent) and renters (72 percent) believe that over a period of several years, it makes more sense to own a home than to rent

More than 8 in 10 homeowners (82 percent) and half of renters (50 percent) would prefer to buy a home if they had to move in the next six months. Furthermore, 78 percent of homeowners consider now a good time to buy as do 58 percent of renters.

Homeownership is viewed as a positive experience while less so for renting. Eighty-eight percent of current homeowners report that owning a home has been a positive or very positive experience. About half of renters (51 percent) consider their experience as positive or very positive.

Many renters aspire to homeownership. More than 6 in 10 renters are at least somewhat likely to purchase a home in the future and 24 percent indicate that they are extremely likely. Among young adult renters, 74 percent say they are likely to buy at some point in the future. About one-third (35 percent) of renters plan to purchase a home in the next 3 to 5 years (43 percent among young adult renters).    

We have argued for some time that the benefits of homeownership are more than just financial. This survey addressed this point and reported:  

 Bottom Line

A larger share of homeowners than renters describe their communities as safe and stable. Homeowners also report that they are more satisfied with their community and family life. While many factors contribute to a positive community environment, a large percentage of homeowners and renters believe a high rate of homeownership is one factor. Homeowners generally feel more connected to their communities, participate in community and civic activities more frequently and are more likely to know their neighbors well.

Owning a home has both financial and social benefits for your family. Today, you can buy a home at a discounted price and at an historically low interest rate. Why wait?  



 RPM is pleased to announce that it has entered into an agreement with a major Wall Street firm that will allow RPM to offer Jumbo loans up to $2 million. With this new product available to its clients, RPM anticipates originations over $1 billion within the first six months of this year.

Rob Hirt, CEO of RPM, is ecstatic about the new Jumbo loan capabilities which he feels will be a real “game changer” for the company.

“After an almost three year hiatus, it looks like Jumbo liquidity is making a comeback!” said Hirt. “This is excellent news for borrowers who need loans above $729,000 which is the maximum loan offered by Fannie Mae, Freddie Mac and FHA.”

The program will allow RPM to lend a 30 year mortgage up to $2 million on a home with the buyer making a 30 percent down payment, and up to $1 million with a 20 percent down payment.

Pricing for this program easily competes with the banks who are “too big to fail” and have made it so difficult for borrowers to obtain loans. Moreover, RPM has the ability to internally underwrite these loans and can use RPM Appraisal Services’ local appraisers to value the property versus the national appraisal companies sending in an appraiser from out of the area.

Hirt sees a lot of potential with this new product and believes that it will allow RPM to tap into untouched markets and really capitalize on Jumbo loans, which is a huge advantage the company now has over competitors.

“Believe it or not, interest rates are still at 40 year lows,” said Hirt. “Part of the problem now is that anyone that had a conforming loan has most likely refinanced. But the Jumbo market has been dead in the water! But not for long!”

RPM is in the midst of building partnerships with other large Wall Street firms that will hopefully be able to deliver more Jumbo products to RPM. With these products now available, RPM has a bright future for purchase money originations.

RPM Mortgage, Inc. is based in Walnut Creek and is a private family-owned mortgage bank and broker whose roots in the Bay Area stem back to 1986. RPM has 42 branches in California, Nevada, Texas, Idaho, Colorado and Connecticut and over 700 loan agents and employees. RPM’s loan agents are specially trained to offer FHA, VA and CalSTRS loan programs to their customers. They work with borrowers, realtors, CPAs, financial planners, attorneys and financial consultants to provide home buyers with the best financial solutions in the market today.

Visit The RPM Website: Jumbo Loan Program – RPM Mortgage Press Release



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