What is HARP Conventional Streamline Refinance and Market Review

Phil Jensen Mortgage Director AmeriFirst Financial Phone: 602-492-8393 Phil@JensenTeam.com Best Arizona Home Search Arizona Home Loans HARP Program

In This Issue           Last Week in Review: Historic news out of Europe, plus Stocks make history. Forecast for the Week: The Fed meets, and Friday brings big Job news-will the numbers give the markets a scare? View: Changes are coming to the Home Affordable Refinance Program. Find out what this means for homeowners.   Last Week in Review           Trick or treat? Last week, there was big news out of Europe, as an agreement was reached to help keep Greece from going into default. But will this deal mean a frightful time is ahead for Bonds and home loan rates? Read on for more details. On Thursday, the world was cheering on the news that a deal in Europe was reached, with private banks and other holders of Greek debt accepting a 50% haircut on their principal investment. Once the write down takes place, Banks who are holding Greek debt will have to recapitalize themselves by year-end, and government support will be available to fill voids that private money won't fill. In addition, the Economic Financial Stability Facility (EFSF) rescue fund, which currently has $443 Billion in holdings, will be expanded and leveraged to $1 Trillion Euros or $1.4 Trillion US Dollars. So the agreement is together…but like any effective plan, it now has to be put into action. And as this rolls out, the financial markets will be watching every step. When the sentiment is positive, like it was the day the plan was announced, Stock markets could benefit as investors would seek to take advantage of gains. In fact, the Stock markets are set to have their biggest monthly gains on record as October comes to an end. The closely watched S&P 500 Index is up 13.5% for the largest increase since October of 1974, while the Dow Jones advance of 12% is the biggest gain since January of 1987. Optimism surrounding the European crisis, positive economic data and better than expected earnings reports have fueled the rally. So what does all of this mean for Bonds and Phoenix home loan rates? The deal that was reached in Europe is historic, and good news for the world's economies overall. However, the plan has yet to be put into action-and then it has to work. And if there are hiccups or issues along the way, Bonds and home loan rates could benefit with some renewed safe haven trading. We saw a little of that late last week, when Friday's less than stellar Italian Bond auction reminded the world that the European debt crisis is not yet entirely resolved. The most important thing to keep in mind is that now remains a great time to purchase or refinance a home, as home loan rates are still near historic lows. Let me know if I can answer any questions at all for you or your clients.   Forecast for the Week           Major economic data is set to impact trading behavior this week…with manufacturing and employment leading the way: Manufacturing headlines will be in the spotlight this week with the Chicago PMI on Monday, followed by the ISM Index on Tuesday. Worker Productivity is also set for release on Thursday. The ADP Employment Report will be the first of two key releases to gauge the labor markets. Watch for ADP to be released on Wednesday. As usual, Weekly Jobless Claims will be delivered on Thursday. Last week's report showed that people filing for first-time benefits still remain above the 400,000 level. Friday's Jobs Report data will garner the most attention as the Labor Department reveals how many new jobs were created in October. Last month's gain of 103,000 new workers was positive. In addition to the reports above, the Fed Meeting begins on Tuesday and ends Wednesday with the Fed's monetary policy statement. The housing markets will be scrutinizing that statement for any rhetoric that involves possible new purchases of Mortgage Backed Securities to keep home loan rates near record lows. Recently, several Fed members have stated that the Fed needs to support the housing markets and not to see elevated borrowing costs. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see in the chart below, Bonds and home loan rates worsened in October as Stocks had one of their best months on record. But rates remain near historic levels, and I'll be watching closely to see what happens as we move into November. Chart: Fannie Mae 3.5% Mortgage Bond (Friday Oct 28, 2011)         The President's New Plan for Homeowners ( HARP Refinance Program ) You may have heard that President Obama plans to open up refinancing to more homeowners who are underwater. If you've been hearing questions about this program or are just curious about what the plan involves, here are some of the major highlights: So, what is HARP ? What's Really New? First, it's important to realize that the president's proposal is not a new program, but a revision to the current Home Affordable Refinance Program (HARP). However there are some big changes that you can let people know if they ask you. Refinance…No Matter How Underwater

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What is HARP Conventional Streamline Refinance and Market Review

Phil Jensen Mortgage Director AmeriFirst Financial Phone: 602-492-8393 Phil@JensenTeam.com Best Arizona Home Search Arizona Home Loans HARP Program

In This Issue           Last Week in Review: Historic news out of Europe, plus Stocks make history. Forecast for the Week: The Fed meets, and Friday brings big Job news-will the numbers give the markets a scare? View: Changes are coming to the Home Affordable Refinance Program. Find out what this means for homeowners.   Last Week in Review           Trick or treat? Last week, there was big news out of Europe, as an agreement was reached to help keep Greece from going into default. But will this deal mean a frightful time is ahead for Bonds and home loan rates? Read on for more details. On Thursday, the world was cheering on the news that a deal in Europe was reached, with private banks and other holders of Greek debt accepting a 50% haircut on their principal investment. Once the write down takes place, Banks who are holding Greek debt will have to recapitalize themselves by year-end, and government support will be available to fill voids that private money won't fill. In addition, the Economic Financial Stability Facility (EFSF) rescue fund, which currently has $443 Billion in holdings, will be expanded and leveraged to $1 Trillion Euros or $1.4 Trillion US Dollars. So the agreement is together…but like any effective plan, it now has to be put into action. And as this rolls out, the financial markets will be watching every step. When the sentiment is positive, like it was the day the plan was announced, Stock markets could benefit as investors would seek to take advantage of gains. In fact, the Stock markets are set to have their biggest monthly gains on record as October comes to an end. The closely watched S&P 500 Index is up 13.5% for the largest increase since October of 1974, while the Dow Jones advance of 12% is the biggest gain since January of 1987. Optimism surrounding the European crisis, positive economic data and better than expected earnings reports have fueled the rally. So what does all of this mean for Bonds and Phoenix home loan rates? The deal that was reached in Europe is historic, and good news for the world's economies overall. However, the plan has yet to be put into action-and then it has to work. And if there are hiccups or issues along the way, Bonds and home loan rates could benefit with some renewed safe haven trading. We saw a little of that late last week, when Friday's less than stellar Italian Bond auction reminded the world that the European debt crisis is not yet entirely resolved. The most important thing to keep in mind is that now remains a great time to purchase or refinance a home, as home loan rates are still near historic lows. Let me know if I can answer any questions at all for you or your clients.   Forecast for the Week           Major economic data is set to impact trading behavior this week…with manufacturing and employment leading the way: Manufacturing headlines will be in the spotlight this week with the Chicago PMI on Monday, followed by the ISM Index on Tuesday. Worker Productivity is also set for release on Thursday. The ADP Employment Report will be the first of two key releases to gauge the labor markets. Watch for ADP to be released on Wednesday. As usual, Weekly Jobless Claims will be delivered on Thursday. Last week's report showed that people filing for first-time benefits still remain above the 400,000 level. Friday's Jobs Report data will garner the most attention as the Labor Department reveals how many new jobs were created in October. Last month's gain of 103,000 new workers was positive. In addition to the reports above, the Fed Meeting begins on Tuesday and ends Wednesday with the Fed's monetary policy statement. The housing markets will be scrutinizing that statement for any rhetoric that involves possible new purchases of Mortgage Backed Securities to keep home loan rates near record lows. Recently, several Fed members have stated that the Fed needs to support the housing markets and not to see elevated borrowing costs. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see in the chart below, Bonds and home loan rates worsened in October as Stocks had one of their best months on record. But rates remain near historic levels, and I'll be watching closely to see what happens as we move into November. Chart: Fannie Mae 3.5% Mortgage Bond (Friday Oct 28, 2011)    The Mortgage Market Guide View...           The President's New Plan for Homeowners ( HARP Refinance Program ) You may have heard that President Obama plans to open up refinancing to more homeowners who are underwater. If you've been hearing questions about this program or are just curious about what the plan involves, here are some of the major highlights: So, what is HARP ? What's Really New? First, it's important to realize that the president's proposal is not a new program, but a revision to the current Home Affordable Refinance Program (HARP). However there are some big changes that you can let people know if they ask you. Refinance…No Matter How Underwater Now homeowners can refinance no matter how underwater they are! Before homeowners could only refinance if they were 25% or less underwater, and even then many banks only let people who were 5% or less underwater refinance. No Appraisal Necessary? With the program's revision, it's possible that an appraisal won't have to be performed. That's great news because it can help people save time and money. But this is only the case if Fannie Mae or Freddie Mac can electronically estimate the value through their valuation models. But Keep in Mind… These updates to HARP apply only to people whose mortgage is currently secured by Fannie Mae or Freddie Mac...and whose loan was securitized by Fannie Mae or Freddie Mac prior to May 31, 2009. So the chances are that people who have refinanced since May 2009 will not qualify to refinance under the HARP rev

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Conventional Streamline Refinance

Phil Jensen Mortgage Director AmeriFirst Financial Phone: 602-642-8393 Phil@JensenTeam.com Arizona Mortgage Experts Best Arizona Home Search Conventional Streamline Refinance

In This Issue           Last Week in Review: The Fed made headlines, plus inflation is heating up! Forecast for the Week: Some key reports on housing, plus the Fed’s favorite gauge of inflation and news from Europe could move the markets. View: Ever feel like you ramble when you leave voicemails? Check out these tips for surefire ways to leave effective messages.           Last Week in Review           When the Fed talks, people listen. And last week, the Fed made headlines when Fed Governor Daniel Tarullo called for the Fed to engage in another round of Mortgage Bond purchases…or in other words, another round of Quantitative Easing (QE3). Read on to find out what this could mean for the housing market and home loan rates. In order to really have an impact on housing, the Fed would have to announce something significant to get people to buy a home. Why? Because even now, with rates at historically low levels and incredible affordability levels, the sales pace in housing is tepid, due to structural problems in the labor market, which the Fed can't fix. In fact, there is a lot to consider before the Fed starts expanding their balance sheet, and the biggest concern is rising inflation. Contrary to what the Fed has said about it moderating, year-over-year inflation is on the rise. The headline Producer Price Index (PPI) rose by a whopping 0.8% in the month of September, elevating year-over-year wholesale prices by a hot 6.9%. Meanwhile, the Consumer Price Index (CPI) for September rose by 0.3%, and while this was inline with estimates it pushed the year-over-year number to 3.9%. This is significant because the year-over-year figure was just 1.6% in January. Remember, inflation is the arch enemy of Bonds and home loan rates. The concept is very simple: If inflation rises, investors in Bonds demand a higher yield to offset the lost buying power inflation imposes on a fixed payment. And as home loan rates are tied to Mortgage Bonds, this would mean home loan rates move higher. And let’s not forget the ongoing drama out of Europe. French and German leaders will hold two summits in the span of four days to come up with a resolution to the European debt crisis. Whichever way this news goes could have a real effect on the markets, including Bonds and home loan rates. With all the news to come this week, it’s still important to remember that now remains a great time to purchase or refinance a home, as home loan rates are still near historic lows. Let me know if I can answer any questions at all for you or your clients.           Forecast for the Week           Look for some key reports on the housing market, which come after last week’s better-than-expected Housing Starts and the softer numbers from Existing Home Sales. New Home Sales are set to be delivered on Wednesday. That number has been hovering near record lows, so the markets will be anxious to see if there’s any indication of an improvement. Also this week, Pending Home Sales will be released Thursday. Also on Thursday, Initial Jobless Claims will be released as usual. Plus, the first reading on Gross Domestic Product (GDP) for the 3rd quarter will be released. Overall, the estimates don’t appear as if the economy is hitting on all cylinders yet. The markets will see how the American people are holding up in this economy with Consumer Confidence and Consumer Sentiment on Tuesday and Friday, respectively. Ending the week, Friday’s Core Personal Consumption Expenditure (PCE), the Fed’s favored inflation measure, is sure to garner some attention. In addition to those reports, keep an eye on the news. One story that could gain some attention is news that the Federal Housing Finance Agency (FHFA) and the Obama administration will submit proposals to Congress to help the housing market for those homeowners who are underwater. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see in the chart below, Bonds and home loan rates stayed in a tight range last week. I’ll be watching closely to see how the markets react to Fed Governor Tarullo’s call for QE3, the news out of Europe, and the economic reports of the week. Chart: Fannie Mae 3.5% Mortgage Bond (Friday Oct 21, 2011)           The Mortgage Market Guide View...                   Don’t Say Another Word! 5 Secrets to Leaving More Effective Voice Messages People are busy. That means, even with the wide variety of technical products developed to keep us in touch, it’s sometimes hard to get a hold of people. In those instances, we find ourselves transported back to the tried-and-true technology of the 1980s—that is, leaving a message after the beep. Same Old, Same Old While the technology has changed from tapes to megabytes, the basic concept of a voice message remains the same. You talk; it records; people listen. Sadly, that’s not the only thing that’s the same. Many people still don’t know how to leave a message that provides information but also establishes a compelling reason for the listener to call back. Use These Tips Today! The following tips can help you be more effective and get better results with voice messages:

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Good News at Home and Abroad Impact Home Loan Rates

Phil Jensen Mortgage Director AmeriFirst Financial Phone: 480-682-6613 Phil@JensenTeam.com www.JensenTeam.com www.BestArizonaHomeSearch.com

In This Issue           Last Week in Review: Good news at home and abroad impacted the markets and home loan rates last week. Find out how. Forecast for the Week: Earnings season is in full swing, plus look for big news on manufacturing, housing, and inflation. View: Wondering about the outlook for the housing and mortgage markets in 2012? Be sure to read the article below.           Last Week in Review           “It’s a small world after all.” And that proved especially true last week, as our markets were impacted by news at home and news from overseas. Here are the highlights. First, there was some good news on the economic front in the U.S. as Retail Sales for September rose by 1.1%, above the 0.6% expected and the highest increase in seven months. Remember good economic news typically benefits Stocks at the expense of Bonds (including Mortgage Bonds, to which home loan rates are tied), as investors move their money from the safety of Bonds into Stocks to try and take advantage of gains. And good news here wasn’t the only thing that pressured Bonds and home loan rates last week. The European Central Bank (ECB) said they will announce a plan by early November for addressing the Greek debt crisis and make recapitalizing their banks a priority. As part of this plan, the International Monetary Fund is going to dedicate more resources to help the European debt crisis. A lot of money is needed to make investors feel confident that the debt crisis will be contained, so investors saw this as positive news. So what does this mean for Bonds and home loan rates? Should the overall present optimistic tone continue, Bonds and home loan rates could face additional pressure. However, if there is pessimistic or uncertain news, investors may return to the safe haven of Bonds, meaning home loan rates could benefit. We did see a little of this trend last week when there was word that China's exports came in lower than expectations, which brought concern that global growth could continue to slow. Either way, the volatility is sure to continue so the most important thing to remember is that now is still a great time to purchase or refinance a home, as home loan rates remain near historic lows. Let me know if I can answer any questions at all for you or your clients.           Forecast for the Week           Manufacturing, inflation, and housing reports dominate the news this week: The manufacturing sector accounts for one-quarter of the economy, so it’s especially important during the current economic situation. This week, the New York State Empire Manufacturing Index as well as Industrial Production and Capacity Utilization will be released on Monday. Later in the week, the Philadelphia Fed Index will be reported on Thursday. Inflation news from the Producer Price Index (PPI) and the Consumer Price Index (CPI) will be delivered on Tuesday and Wednesday respectively. The last report on consumer inflation was a bit hotter than expected, so Bond market players will be closely watching those reports. Housing Starts will be reported on Wednesday and on Thursday Existing Home Sales will be delivered. The weekly Initial Jobless Claims report will be released on Thursday. As of last week’s report, they continue to remain above the 400,000 level. Plus, earnings season is in full swing this week. Some big names reporting earnings are Citigroup, Bank of America, Coca-Cola, Apple, and AT&T. If the reports come in better than expected, it could push investing dollars over to the Equity markets. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see in the chart below, Bonds and home loan rates faced pressure last week but remained above a key technical level. I’ll be watching the markets closely this week to see what happens. Chart: Fannie Mae 3.5% Mortgage Bond (Friday Oct 14, 2011)           The Mortgage Market Guide View...                   The Housing and Mortgage Markets in 2012 Last week, the Mortgage Bankers Association (MBA) released its outlook for the housing and mortgage markets in 2012. Overall, the news is mixed, but there’s some good news to glean out of it. Here are three positive elements in the MBA forecast that you should know about: 1. Home Sales Steady Before Slight Increase The MBA expects total existing home sales will stay around the 4.9 million unit pace for 2011 and 2012. But in 2013, the MBA expects home sales to increase slightly to 5.2 million units, as the broader economy recovers. New home sales are expected to be similar to the overall trend. As the MBA stated in its release: “The recovery in the new home sales will have a comparably slow start…but will show some meaningful increases in 2013.” 2. Slight Growth in Home Purchases Despite an expected decrease in refinances, the MBA forecasts some slight growth in the number of mortgages for home purchases. Specifically, the MBA anticipates home loans for purchases to increase to $412 Billion in 2012, which would be up from the anticipated 2011 total of $400 Billion. Better still, the MBA expects home loans for purchases to jump significantly to $700 Billion in 2013 as the economy, home sales, and home prices are all anticipated to pick up. 3. Rates to Remain Low Overall, fixed home loan rates are expected to remain low by historical standards. The MBA expects rates to end 2011 around a 4.5 percent average, and then possibly dropping slightly to 4.4 percent at some point in 2012. But by 2013, the MBA expects rates to climb back up to 4.9 percent – w

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Weekly Newsletter

Phil Jensen Mortgage Director AmeriFirst Financial Phone: 602-692-7445 Phil@JensenTeam.com Lowest Arizona Mortgage Rates Phoenix Homes For Sale

In This Issue           Last Week in Review: There was plenty of news for both optimists and pessimists last week. Find out what that meant for home loan rates. Forecast for the Week: Big job news is ahead, but will it be positive or negative? View: Changes are coming from Fannie and Freddie in 2012. Get the scoop below!           Last Week in Review           “Both optimists and pessimist contribute to our society. The optimist invents the airplane, and the pessimist—the parachute.” G.B. Stern. And last week, we saw sentiment on the economy go from pessimistic, to optimistic, and back to pessimistic—all within a week! Here are the highlights of what happened. On the optimistic side, several economic reports were better than expected. For example, New Home Sales for August were up 6.1% from a year earlier and the Case-Shiller Home Price Index rose in July from June in the 10 and 20 city survey, and was the fourth monthly gain in a row. What’s more, there was some positive news from overseas. European leaders are designing a Special Purpose Vehicle (SPV) that would issue Bonds and purchase European debt to try to contain the malaise in that region. Plus, Germany voted in support for the expansion of the European Financial Stability Facility (EFSF), which will be used to help Euro member countries access capital. This is optimistic news, as it shows Germany is doing whatever it can to help debt laden countries avoid default and potentially threaten the Euro union. While this mix of news was great for our economy and the global economy, the result was a "risk on trade" where investors fled the safe haven trade of Bonds and moved into Stocks to try and take advantage of gains. And since home loan rates are tied to Mortgage Bonds, when Bonds worsen home loan rates worsen as well. That’s what we saw happen in the early and middle part of last week. But some pessimism crept back into the markets late last week as China's Manufacturing PMI contracted for a third consecutive month. There is growing fear that a slowdown in China could affect the already fragile global economy. This is a developing story and one I will be watching closely because if China’s economy does meaningfully slow, it will likely take Stocks down another level and help Bonds and home loan rates. Also creating some pessimism late in the week: Personal Income was lower than expected, and seeing earnings contract is not a good sign for the economy. The bottom line is that now is a great time to purchase or refinance a home, as home loan rates remain near historic lows. Let me know if I can answer any questions at all for you or your clients.           Forecast for the Week           Can the U.S. job market get back on its feet? We’ll find out this week, along with more manufacturing news: On Monday, the ISM Index will be delivered, and it’s probably the most closely watched manufacturing report out there. Jump ahead to Wednesday to see the first labor market reading of the week with the release of the ADP Employment Report. Weekly Jobless Claims will be released as usual on Thursday. Last week's drop below 400,000 was welcomed by investors, but the Labor Department said the numbers were somewhat impacted by seasonal adjustment factors. Last but not least is Friday's Jobs Report, which includes Hourly Earnings, Average Workweek, Unemployment Rate and the closely watched Non-farm Payrolls Report. In August, there were zero jobs created, which was a major blow to the psyche of the investment world. So the markets will be watching this report closely. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see in the chart below, Bonds and home loan rates were able to remain above a key trading level. I’ll be watching closely to see which way sentiment impacts the markets this week. Chart: Fannie Mae 3.5% Mortgage Bond (Friday Sep 30, 2011)           The Mortgage Market Guide View...                   Fannie and Freddie to Increase Fees… But What Does It Mean? Starting in 2012, Fannie Mae and Freddie Mac are expected to increase their fees, which could impact homebuyers depending on the risk of their loan or the location of their home. Here’s what you need to know – including what’s really happening and what it means to homebuyers. What fee is being increased? First, it’s important to remember that Fannie Mae and Freddie Mac do not actually make home loans. Instead, they provide financing to lenders by purchasing mortgages from those lenders. Then, Fannie and Freddie either keep those mortgages on their books or they package them (in the form of securities) for sale to investors. That means, Fannie and Freddie don’t actually charge direct fees to homebuyers. But they do charge fees to lenders when they purchase home loans from those lenders. The lenders, in turn, build those fees into the home loans they offer. So the bottom line is that any increase in the fee that Fannie and Freddie charge lenders will essentially be passed on to consumers. However, the fees likely won’t be increased the same amount across the board. For example, Fannie and Freddie may charge higher fees when purchasing riskier loans or they may vary the fees based on which part of the country the home is located in (taking into account things like the foreclosure rate of the location). Why is this happening? Fannie and Freddie were seized by the government three years ago to help protect them from failing. That’s important because Fannie and Freddie (along with other government agencies) actually guarantee about 9 out of every 10 new home loans—and with the challenges that the housing market has seen recently, those guarantees have been extremely important. However, Fannie and Freddie have also cost the taxpayers more than $140 Billion. So Fannie and Freddie will gradually increase their guarantee fees next year and reduce the size of the home loans they purchase in an effort to: 1. Save tax

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