Philip Jensen's Mortgage Blog

Monday, April 26, 2010

Weekly Mortgage Rate Update

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<td colspan="2" class="Header" nowrap="nowrap">Provided to you Exclusively by Phil Jensen</td>

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Phil Jensen

<br />

Senior Mortgage Consultant

<br />

Amerifirst Financial

<br />

Office: <span class="ContactInfoBlue">480-682-6613</span>

<br />

Cell: <span class="ContactInfoBlue">602-692-7445</span>

<br />

Fax: <span class="ContactInfoBlue">480-374-6987</span>

</span>

<br />

E-Mail: Phil@JensenTeam.com

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Website: www.PhilipJensen.com

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<td class="ContentBold" align="right">For the week of Apr 26, 2010 --- Vol. 8, Issue 17</td>

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<td><span class="SectionHeaderBlue">In This Issue</span> <img src="http://www.mmgweekly.com/admin/images/sym_arrow.gif" width="4" height="8" /></td>

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<td class="Content_Just"><p><strong>Last Week in Review</strong>: Greece's ongoing financial saga moves the markets, along with continuing announcements on more whopping amounts of debt supply being pumped out.</p>

<p><strong>Forecast for the Week</strong>: This week will bring a wide range of reports, including looks at consumer attitudes, the Fed's policy, employment, manufacturing, and Gross Domestic Product.</p>

<p><strong>View</strong>: There's less than one week left before the Homebuyers Tax Credit expires on April 30th...read the details, and pass on to anyone who needs to know more!</p>

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<td><span class="SectionHeaderBlue">Last Week In Review </span><img src="http://www.mmgweekly.com/admin/images/sym_arrow.gif" width="4" height="8" /></td>

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<p><strong>"IT'S ALL GREEK TO ME."</strong> The markets continue to be focused on - and influenced by - Greece's ongoing financial saga. Stocks took a hit last Thursday when Greece's budget deficit was reported to be worse than previously thought, causing uncertainty and anxiety in the markets. The next day, the saga continued when Greek Prime Minister George Papandreou asked the European Union and International Monetary Fund to activate their huge $45 Billion Euro aid package. That news helped relieve some of the uncertainty in the markets, but this story is far from over. Greece will need to take some dramatic measures to bring their budget deficit to a significantly lower level. </p>

<p>The $45 Billion Euro bailout for Greece wasn't the only whopping figure in the news last week. Here at home, the U.S. Treasury Department announced that it will unload $129 Billion of debt this week in 5-year Treasury Inflation Protected Securities and 2-, 5- and 7-year Notes. The massive amount of debt supply being loaded into the markets just keeps on coming - and it's getting larger. As you can see from the chart below, the Treasury auctions have more than doubled since the 2nd quarter of 2008...and this doesn't even include the regularly scheduled T-Bill auctions each week or the monthly 30-year Bond auctions. This week's huge amount of supply could prevent Bond prices - and home loan rates - from improving when it hits the markets.</p>

<span style='color:red'>Chart: Treasury Note Auctions (By Quarter) </span></strong></p>

<p>Speaking of more supply...the Fed announced last week that it may start trimming its balance sheet by selling some of its Mortgage Backed Securities assets as early as the 3rd or 4th quarter of this year. Remember, the Fed recently ended its purchase program in which it purchased $1.25 Trillion in Mortgage Backed Securities to help lower home loan rates and stabilize the housing sector. Since the program ended, the market has been very volatile. Despite the fluctuations, rates remain good overall, but once the Fed starts to sell some of their huge holdings, rates will likely rise as even more supply comes into the market. </p>

<p>Overall, rates ended the week slightly worse than where they started, but still at very attractive levels. That makes now a crucial time to take advantage of the opportunities that exist - including the Homebuyers Tax Credit, which is about to expire!</p>

<p><strong><em>THERE'S LESS THAN ONE WEEK LEFT BEFORE THE HOMEBUYERS TAX CREDIT EXPIRES ON APRIL 30! CHECK OUT THE MORTGAGE MARKET GUIDE VIEW BELOW FOR IMPORTANT DETAILS.</em></strong></p>

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<td><span class="SectionHeaderBlue">Forecast for the Week</span> <img src="http://www.mmgweekly.com/admin/images/sym_arrow.gif" width="4" height="8" /></td>

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<p>After a busy week of economic reports last week, this week doesn't slow up at all. On tap is a look at how consumers feel about the slowly recovering economy with the <strong>Consumer Confidence</strong> report on Tuesday and the <strong>Consumer Sentiment Index</strong> on Friday. In the prior reports, Consumer Confidence came in higher than expectations, while Consumer Sentiment dropped. The markets will be watching both these reports for indications of how consumers feel about the job market and their finances. </p>

<p>We'll also hear from the Fed this week with the <strong>Fed's Monetary Policy</strong> and <strong>Fed Funds Rate</strong> decision on Wednesday. With future inflation concerns on the minds of some Fed members, it will be interesting to see if the Fed continues to use the now famous statement, "rates will stay exceptionally low for an extended period."

<p>The weekly <strong>Initial Jobless Claims</strong> report comes out Thursday, and after a worse-than-expected report last week, the markets will be tuned in closely to this week's update.</p>

<p>Finally, the week ends on a busy note. Friday, we'll get a look at labor costs with the <strong>Employment Cost Index</strong>, the manufacturing industry with the <strong>Chicago PMI</strong>, and goods and services in the US with the <strong>Gross Domestic Product</strong> report. </p>

<p>In addition to these reports, the Treasury Department will auction off the $129 Billion of debt mentioned above. That breaks down to auctions of $11 Billion in 5-year TIPS (treasury inflated-protected securities) on Monday, $44 Billion in 2-year Notes on Tuesday, $42 Billion in 5-year Notes on Wednesday and $32 Billion in 7-year Notes on Thursday. That's a whopping amount of supply, and it could move the markets depending on how it's received.</p>

<p><strong><u>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.</u></strong> As you can see in the chart below, Mortgage Bonds have not been able to close above technical resistance at the 50-Day Moving Average since the end of March.</p>

<span style='color:red'>Chart: Fannie Mae 4.5% Mortgage Bond (Friday, April 23, 2010)</span></strong></p>

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<td><span class="SectionHeaderBlue">The Mortgage Market View</span> <img src="http://www.mmgweekly.com/admin/images/sym_arrow.gif" width="4" height="8" /></td>

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<strong>Homebuyers Tax Credit Expires This Week!<br />

Thousands of Dollars Could Slip Through Your Fingers!</strong>

</p>

<p>The heat is on for those who are out shopping for homes right now - as the Homebuyers Tax Credit is about to come to an end. </p>

<p>Last November, the government expanded and extended the new Homebuyers Tax Credit. According to the program, first-time homebuyers are eligible for a tax credit of up to 10% of the purchase price of the home, with a maximum credit of $8,000. And current homeowners are eligible for up to $6,500.</p>

<p>Although military personnel may qualify for a special extension, the vast majority of homeowners must have contracts in effect no later than April 30, 2010 and must close no later than June 30, 2010 to qualify for the credit.</p>

<p><strong><em><u>This means that homebuyers now have less than one week to get their paperwork going to qualify for this credit, before it goes away!</u></em></strong></p>

<p>Here are some important details about this tax credit.</p>

<p><strong>Dollar-for-Dollar Benefit</strong></p>

<p>The benefit of a tax credit is that it's a dollar-for-dollar benefit, rather than a "tax deduction" or reduction in tax liability that would only reduce $1,000 to $1,500 when all was said and done. </p>

<p>So, if a first-time homebuyer who qualified for the entire benefit were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.</p>

<p><strong>Even Better... It's Refundable!</strong></p>

<p>Remember, because it's a tax credit, it's refundable! That means a homebuyer can receive a check for the credit if he or she has little or no income tax liability. </p>

<p>For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!</p>

<p><strong>What are the Income Caps?</strong></p>

<p>Single tax filers with incomes up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers with incomes of $145,000 and above are ineligible.</p>

<p>Joint filers with incomes up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers with incomes of $245,000 and above are ineligible.</p>

<p><strong>What's the Maximum Purchase Price?</strong></p>

<p>Qualifying buyers may purchase a property with a maximum sales price of $800,000.</p>

<p><strong><em>If you or someone you know is in the process of purchasing a home, this is an important week to take action - feel free to forward this article to anyone who it might benefit. And give me a call with any questions - the clock is ticking and the deadline is Friday!!</em></strong></p>

<hr />

<p><strong><u>Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.</u></strong></p>

<p class="ContentBold" style="width:98%;">Economic Calendar for the Week of April 26 - April 30</p>

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<td><div align="center">Economic Report </div></td>

<td><div align="center">Estimate</div></td>

<td><div align="center">Actual</div></td>

<td><div align="center">Prior</div></td>

<td><div align="center">Impact</div></td>

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<td bgcolor="#FFFF99">Tue. April 27</td>

<td bgcolor="#FFFF99">Consumer Confidence</td>

<td bgcolor="#FFFF99"><div align="center">Moderate</div></td>

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<td bgcolor="#66FF99">Wed. April 28</td>

<td bgcolor="#66FF99">Crude Inventories</td>

<td bgcolor="#66FF99"><div align="center">Moderate</div></td>

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<td bgcolor="#66FF99">Wed. April 28</td>

<td bgcolor="#66FF99">FOMC Meeting</td>

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<td bgcolor="#FFFF99">Thu. April 29</td>

<td bgcolor="#FFFF99">Jobless Claims (Initial)</td>

<td bgcolor="#FFFF99"><div align="center">Moderate</div></td>

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<td bgcolor="#66FF99">Fri. April 30</td>

<td bgcolor="#66FF99">Gross Domestic Product (GDP)</td>

<td bgcolor="#66FF99"><div align="center">Moderate</div></td>

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<td bgcolor="#66FF99">Fri.

Posted via email from philipjensen's posterous

Weekly Mortgage Rate Update

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<span class="HeaderOptions">If you have received this newsletter indirectly and would like to be added to our weekly distribution list, use this link</span>

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<td colspan="2" class="Header" nowrap="nowrap">Provided to you Exclusively by Phil Jensen</td>

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</td>

Phil Jensen

<br />

Senior Mortgage Consultant

<br />

Amerifirst Financial

<br />

Office: <span class="ContactInfoBlue">480-682-6613</span>

<br />

Cell: <span class="ContactInfoBlue">602-692-7445</span>

<br />

Fax: <span class="ContactInfoBlue">480-374-6987</span>

</span>

<br />

E-Mail: Phil@JensenTeam.com

<br />

Website: www.PhilipJensen.com

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<td class="ContentBold" align="right">For the week of Apr 26, 2010 --- Vol. 8, Issue 17</td>

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<td><span class="SectionHeaderBlue">In This Issue</span> <img src="http://www.mmgweekly.com/admin/images/sym_arrow.gif" width="4" height="8" /></td>

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<p><strong>View</strong>: There's less than one week left before the Homebuyers Tax Credit expires on April 30th...read the details, and pass on to anyone who needs to know more!</p>

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<td><span class="SectionHeaderBlue">Last Week In Review </span><img src="http://www.mmgweekly.com/admin/images/sym_arrow.gif" width="4" height="8" /></td>

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<span style='color:red'>Chart: Treasury Note Auctions (By Quarter) </span></strong></p>

<p><strong><em>THERE'S LESS THAN ONE WEEK LEFT BEFORE THE HOMEBUYERS TAX CREDIT EXPIRES ON APRIL 30! CHECK OUT THE MORTGAGE MARKET GUIDE VIEW BELOW FOR IMPORTANT DETAILS.</em></strong></p>

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<td><span class="SectionHeaderBlue">Forecast for the Week</span> <img src="http://www.mmgweekly.com/admin/images/sym_arrow.gif" width="4" height="8" /></td>

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<p>The weekly <strong>Initial Jobless Claims</strong> report comes out Thursday, and after a worse-than-expected report last week, the markets will be tuned in closely to this week's update.</p>

<span style='color:red'>Chart: Fannie Mae 4.5% Mortgage Bond (Friday, April 23, 2010)</span></strong></p>

<br />

</td>

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<td><span class="SectionHeaderBlue">The Mortgage Market View</span> <img src="http://www.mmgweekly.com/admin/images/sym_arrow.gif" width="4" height="8" /></td>

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<strong>Homebuyers Tax Credit Expires This Week!<br />

Thousands of Dollars Could Slip Through Your Fingers!</strong>

</p>

<p>The heat is on for those who are out shopping for homes right now - as the Homebuyers Tax Credit is about to come to an end. </p>

<p><strong><em><u>This means that homebuyers now have less than one week to get their paperwork going to qualify for this credit, before it goes away!</u></em></strong></p>

<p>Here are some important details about this tax credit.</p>

<p><strong>Dollar-for-Dollar Benefit</strong></p>

<p>So, if a first-time homebuyer who qualified for the entire benefit were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.</p>

<p><strong>Even Better... It's Refundable!</strong></p>

<p>Remember, because it's a tax credit, it's refundable! That means a homebuyer can receive a check for the credit if he or she has little or no income tax liability. </p>

<p>For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!</p>

<p><strong>What are the Income Caps?</strong></p>

<p><strong>What's the Maximum Purchase Price?</strong></p>

<p>Qualifying buyers may purchase a property with a maximum sales price of $800,000.</p>

<hr />

<p><strong><u>Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.</u></strong></p>

<p class="ContentBold" style="width:98%;">Economic Calendar for the Week of April 26 - April 30</p>

<tr>

<td>

<td><div align="center">Economic Report </div></td>

<td><div align="center">Estimate</div></td>

<td><div align="center">Actual</div></td>

<td><div align="center">Prior</div></td>

<td><div align="center">Impact</div></td>

</tr>

<td bgcolor="#FFFF99">Tue. April 27</td>

<td bgcolor="#FFFF99">Consumer Confidence</td>

<td bgcolor="#FFFF99"><div align="center">Moderate</div></td>

</tr>

<td bgcolor="#66FF99">Wed. April 28</td>

<td bgcolor="#66FF99">Crude Inventories</td>

<td bgcolor="#66FF99"><div align="center">Moderate</div></td>

</tr>

<td bgcolor="#66FF99">Wed. April 28</td>

<td bgcolor="#66FF99">FOMC Meeting</td>

</tr>

<td bgcolor="#FFFF99">Thu. April 29</td>

<td bgcolor="#FFFF99">Jobless Claims (Initial)</td>

<td bgcolor="#FFFF99"><div align="center">Moderate</div></td>

</tr>

<td bgcolor="#66FF99">Fri. April 30</td>

<td bgcolor="#66FF99">Gross Domestic Product (GDP)</td>

<td bgcolor="#66FF99"><div align="center">Moderate</div></td>

</tr>

<td bgcolor="#66FF99">Fri.

Posted via email from philipjensen's posterous

Untitled

If you can't see the newsletter, or would like to view it online, use this link If you have received this newsletter indirectly and would like to be added to our weekly distribution list, use this link

Provided to you Exclusively by Phil Jensen

Phil Jensen
Senior Mortgage Consultant
Amerifirst Financial
Office: 480-682-6613
Cell: 602-692-7445
Fax: 480-374-6987
E-Mail: Phil@JensenTeam.com
Website: www.PhilipJensen.com

For the week of Apr 26, 2010 --- Vol. 8, Issue 17

In This Issue

Last Week in Review: Greece's ongoing financial saga moves the markets, along with continuing announcements on more whopping amounts of debt supply being pumped out.

Forecast for the Week: This week will bring a wide range of reports, including looks at consumer attitudes, the Fed's policy, employment, manufacturing, and Gross Domestic Product.

View: There's less than one week left before the Homebuyers Tax Credit expires on April 30th...read the details, and pass on to anyone who needs to know more!

Last Week In Review

"IT'S ALL GREEK TO ME." The markets continue to be focused on - and influenced by - Greece's ongoing financial saga. Stocks took a hit last Thursday when Greece's budget deficit was reported to be worse than previously thought, causing uncertainty and anxiety in the markets. The next day, the saga continued when Greek Prime Minister George Papandreou asked the European Union and International Monetary Fund to activate their huge $45 Billion Euro aid package. That news helped relieve some of the uncertainty in the markets, but this story is far from over. Greece will need to take some dramatic measures to bring their budget deficit to a significantly lower level.

The $45 Billion Euro bailout for Greece wasn't the only whopping figure in the news last week. Here at home, the U.S. Treasury Department announced that it will unload $129 Billion of debt this week in 5-year Treasury Inflation Protected Securities and 2-, 5- and 7-year Notes. The massive amount of debt supply being loaded into the markets just keeps on coming - and it's getting larger. As you can see from the chart below, the Treasury auctions have more than doubled since the 2nd quarter of 2008...and this doesn't even include the regularly scheduled T-Bill auctions each week or the monthly 30-year Bond auctions. This week's huge amount of supply could prevent Bond prices - and home loan rates - from improving when it hits the markets.

-----------------------
Chart: Treasury Note Auctions (By Quarter)

Speaking of more supply...the Fed announced last week that it may start trimming its balance sheet by selling some of its Mortgage Backed Securities assets as early as the 3rd or 4th quarter of this year. Remember, the Fed recently ended its purchase program in which it purchased $1.25 Trillion in Mortgage Backed Securities to help lower home loan rates and stabilize the housing sector. Since the program ended, the market has been very volatile. Despite the fluctuations, rates remain good overall, but once the Fed starts to sell some of their huge holdings, rates will likely rise as even more supply comes into the market.

Overall, rates ended the week slightly worse than where they started, but still at very attractive levels. That makes now a crucial time to take advantage of the opportunities that exist - including the Homebuyers Tax Credit, which is about to expire!

THERE'S LESS THAN ONE WEEK LEFT BEFORE THE HOMEBUYERS TAX CREDIT EXPIRES ON APRIL 30! CHECK OUT THE MORTGAGE MARKET GUIDE VIEW BELOW FOR IMPORTANT DETAILS.

Forecast for the Week

After a busy week of economic reports last week, this week doesn't slow up at all. On tap is a look at how consumers feel about the slowly recovering economy with the Consumer Confidence report on Tuesday and the Consumer Sentiment Index on Friday. In the prior reports, Consumer Confidence came in higher than expectations, while Consumer Sentiment dropped. The markets will be watching both these reports for indications of how consumers feel about the job market and their finances.

We'll also hear from the Fed this week with the Fed's Monetary Policy and Fed Funds Rate decision on Wednesday. With future inflation concerns on the minds of some Fed members, it will be interesting to see if the Fed continues to use the now famous statement, "rates will stay exceptionally low for an extended period."

The weekly Initial Jobless Claims report comes out Thursday, and after a worse-than-expected report last week, the markets will be tuned in closely to this week's update.

Finally, the week ends on a busy note. Friday, we'll get a look at labor costs with the Employment Cost Index, the manufacturing industry with the Chicago PMI, and goods and services in the US with the Gross Domestic Product report.

In addition to these reports, the Treasury Department will auction off the $129 Billion of debt mentioned above. That breaks down to auctions of $11 Billion in 5-year TIPS (treasury inflated-protected securities) on Monday, $44 Billion in 2-year Notes on Tuesday, $42 Billion in 5-year Notes on Wednesday and $32 Billion in 7-year Notes on Thursday. That's a whopping amount of supply, and it could move the markets depending on how it's received.

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, Mortgage Bonds have not been able to close above technical resistance at the 50-Day Moving Average since the end of March.

-----------------------
Chart: Fannie Mae 4.5% Mortgage Bond (Friday, April 23, 2010)

The Mortgage Market View

Homebuyers Tax Credit Expires This Week!
Thousands of Dollars Could Slip Through Your Fingers!

The heat is on for those who are out shopping for homes right now - as the Homebuyers Tax Credit is about to come to an end.

Last November, the government expanded and extended the new Homebuyers Tax Credit. According to the program, first-time homebuyers are eligible for a tax credit of up to 10% of the purchase price of the home, with a maximum credit of $8,000. And current homeowners are eligible for up to $6,500.

Although military personnel may qualify for a special extension, the vast majority of homeowners must have contracts in effect no later than April 30, 2010 and must close no later than June 30, 2010 to qualify for the credit.

This means that homebuyers now have less than one week to get their paperwork going to qualify for this credit, before it goes away!

Here are some important details about this tax credit.

Dollar-for-Dollar Benefit

The benefit of a tax credit is that it's a dollar-for-dollar benefit, rather than a "tax deduction" or reduction in tax liability that would only reduce $1,000 to $1,500 when all was said and done.

So, if a first-time homebuyer who qualified for the entire benefit were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.

Even Better... It's Refundable!

Remember, because it's a tax credit, it's refundable! That means a homebuyer can receive a check for the credit if he or she has little or no income tax liability.

For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!

What are the Income Caps?

Single tax filers with incomes up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers with incomes of $145,000 and above are ineligible.

Joint filers with incomes up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers with incomes of $245,000 and above are ineligible.

What's the Maximum Purchase Price?

Qualifying buyers may purchase a property with a maximum sales price of $800,000.

If you or someone you know is in the process of purchasing a home, this is an important week to take action - feel free to forward this article to anyone who it might benefit. And give me a call with any questions - the clock is ticking and the deadline is Friday!!

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of April 26 - April 30

Date	ET	Economic Report	For	Estimate	Actual	Prior	Impact
Tue. April 27	10:00	Consumer Confidence	Apr	53.7		52.5	Moderate
Wed. April 28	10:30	Crude Inventories	4/24	NA		1.89M	Moderate
Wed. April 28	02:15	FOMC Meeting		0.25%		0.25%	HIGH
Thu. April 29	08:30	Jobless Claims (Initial)	4/24	440K		456K	Moderate
Fri. April 30	08:30	Gross Domestic Product (GDP)	Q1	3.2%		5.6%	Moderate
Fri. April 30	08:30	GDP Chain Deflator	Q1	0.9%		0.5%	Moderate
Fri. April 30	08:30	Employment Cost Index (ECI)	Q1	0.5%		0.5%	Moderate
Fri. April 30	09:45	Chicago PMI	Apr	59.8		58.8	HIGH
Fri. April 30	10:00	Consumer Sentiment Index (UoM)	Apr	71.5		69.5	Moderate

The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is not without errors.

As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

In the unlikely event that you no longer wish to receive these valuable market updates, please USE THIS LINK or email: Phil@JensenTeam.com

If you prefer to send your removal request by mail the address is:

Philip Jensen
1910 S. Stapley Dr., Ste.209
Mesa, AZ 85204

Mortgage Success Source, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated. Mortgage Success Source, LLC does not grant to you a license to any content, features or materials in this email. You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.

Posted via web from philipjensen's posterous

Friday, April 23, 2010

90 Day Flipping Policy

Per FHA guidelines –
- All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
  - The seller hold title to the property
  - LLC’s, corporations, or trusts that are serving as sellers were established and are operated in accordance with applicable state and federal laws
  - No pattern of previous flipping activity exists for the subject property, as evidenced by multiple title transfers within a 12-month time frame (chain of title information for the subject property can be found in the appraisal report);
  - The property was marketed openly and fairly, via, MLS, auction, for Sale by Owner offering, or developer marketing (any sales contracts that refer to an “assignment of contract of sale.” Which represents a special arrangement between seller and buyer may be a red flag).
- In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.
  - Justifies the increase in value by retaining in the loan file supporting documentation and/or a second appraisal which verifies that the seller has completed sufficient legitimate renovation, repair, and rehabilitation work on the subject property to substantiate the increase in value or, in cases where no such work is performed the appraiser provides appropriate explanation of the increase in property value since the prior title transfer; and
  - Orders a property inspection and provides the inspection report to the purchaser before closing. The lender may charge the borrower for this inspection. The use of FHA-approved inspectors or 203(k) consultants is not required. The inspector must have no interest in the property or relationship with the seller, and must not receive compensation for the inspection from any party other than lender. Also, the inspector may not compensate anyone for the referral of the inspection. …… Please see link for additional guidelines. http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
- The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

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Thursday, April 22, 2010

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Thursday, April 8, 2010

Mortgage Update

Provided to you Exclusively by Phil Jensen

Phil Jensen Senior Mortgage Consultant Amerifirst Financial Office: 480-682-6613 Cell: 602-692-7445 Fax: 480-374-6987 E-Mail: Phil@JensenTeam.com Website: www.PhilipJensen.com

For the week of Apr 05, 2010 --- Vol. 8, Issue 14
Last Week in Review
"YOU DON'T KNOW WHAT YOU GOT UNTIL IT'S GONE - AND I FOUND OUT A LITTLE TOO LATE..." The words from Chicago's hit song from the 80's sums up the market's sentiment on the ending of the Federal Reserve's Mortgage Backed Security buying program, and the resulting volatility for home loan rates that has already begun.
The Fed did what they set out to do - purchasing $1.25 Trillion in Mortgage Backed Securities, and succeeding in their plan to lower home loan rates and help stabilize the housing sector. And even though they stretched out the length of the program slightly - in order to soften the impact of the end of the program - the training wheels are now off, the safety net is gone, and home loan rates have already moved higher. In fact - as the Fed will now gradually become a seller of their massive holdings of Mortgage Backed Securities - rates are very likely to continue to move higher still.
Even after home loan rates took a jump higher last week, they still remain at reasonably low levels - which makes right now a crucial time to take advantage of the opportunities that exist, including the Homebuyers Tax Credit which is down to its last month. To take advantage of the generous credit, purchase contracts must be signed by the end of April. If you or someone you know has questions about this credit - please don't wait to get in touch with me.
Adding to last week's volatility, the official Jobs Report was released last Friday - and according to the report, 162,000 jobs were created in March, making it the biggest one-month increase in three years. Additionally, there were upward revisions to January and February, which brought the last two months' net job losses to near zero.
-----------------------Chart: Nonfarm Payrolls (By Month)
While it was good to see some positive numbers, we're not exactly out of the woods just yet, as there were some concerning aspects of this Jobs Report. For example, Average Hourly Earnings actually fell 0.1% in March. This could be viewed as a negative sign, indicating that there's no pressure on companies to pay workers more to retain them. It also shows continued temporary hiring at a lower pay scale.
The official Unemployment Rate remained steady at 9.7%, but when factoring in the "underemployed", including people who accepted part-time work because full-time work is simply not available, the rate of unemployment overall rose from 16.8% to 16.9%. This is a big number that continues to weigh on the labor market.
Also in the news last week, the US Savings rate moved down to its lowest Level since October 2008. Check out the mortgage market guide view article below for some simple ways to boost your savings.
Forecast for the Week
This week's economic calendar may seem slow after the wave of economic news last week. But there are still some big items on tap, starting off right away Monday morning when the Pending Home Sales report gives us a look at the health of the housing industry.
Tuesday brings us the Meeting Minutes from the latest Fed Meeting. Although we already know what the Fed's policy announcement was, the markets will be looking at the discussion contained in the Meeting Minutes as an indication of what Fed members are thinking and what they may do in the future.
On Thursday we'll get another look at Initial Jobless Claims. Last week, Initial Jobless Claims were reported basically in line with expectations and down from the previous week's number, and Continuing Jobless Claims declined as well. With those numbers and last week's official Jobs Report in mind, the market will be watching to see if the labor market can continue to make positive strides.
Finally, in addition to those reports, the Treasury Department will auction off $82 Billion in Treasuries. And since most of those will be longer maturities that compete with Mortgage Backed Securities, the auctions could add volatility to the markets depending on how they are received.
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, Mortgage Bond prices plunged last week and rates increased .25%.
Chart: Fannie Mae 4.5% Mortgage Bond (Friday Apr 09, 2010)
The Mortgage Market View...

Boost Your Savings...Without Hardly Trying
These days most people would welcome the idea of having more money in their savings account. Here are a few ideas that can help make that possible. And the best part is...you'll hardly feel it!
Bring Your Lunch to Work - Most people spend $6 (or more) when they buy their lunch, yet spend $2 when they pack it themselves. That's a potential savings of $20 a week or $1,040 dollars a year.
Durable over Disposable - Using products like Handi-Wipes (semi-disposable rags) as opposed to paper towels, and a rechargeable razor rather than the disposable kind, can save about $200 per year.
Hold an Annual Yard Sale - You should have no problem making at least a hundred bucks. Besides, you'll get rid of all that household clutter in the process. Whatever you don't sell can be donated to charity and used as a tax write-off.
Ask for Discounts - From buying airline tickets to paying a medical bill, always ask if there's a discount to be had. The worst that can happen is you'll be told no.
Get a Library Card - As opposed to buying a book for $20 or renting a DVD for $4, get it for free. If you average 3 movie rentals a month, you'll save yourself over $140 a year.
Watch Those Utilities - Changing over to energy-saving light bulbs and low-flow showerheads is a great start. Also, most utility companies offer a home audit you can complete online. If not, go to http://hes.lbl.gov for a virtual inspection of your home. You may be surprised to learn how much energy (and money) you could be saving.
The good news is that suggestions like these are merely a start. Taking the time to discover inefficient habits in your household and making a few minor adjustments can lead to more savings opportunities than you may realize! And that's great news, both today and in every kind of economy!
This Week's Economic Calendar
Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
Economic Calendar for the Week of April 05 - April 09
Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. April 05
10:00
ISM Services Index
Mar
54.0
55.4
53.0
Moderate
Mon. April 05
10:00
Pending Home Sales
Feb
0.0%
8.2%
-7.6%
Moderate
Tue. April 06
02:00
FOMC Minutes

HIGH
Wed. April 07
10:30
Crude Inventories
4/03
NA
1.98M
2.93M
Moderate
Thu. April 08
08:30
Jobless Claims (Initial)
4/03
433K
460K
442K
Moderate
The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is not without errors.
As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.
In the unlikely event that you no longer wish to receive these valuable market updates, please USE THIS LINK or email: Phil@JensenTeam.com
If you prefer to send your removal request by mail the address is:
Philip Jensen 1910 S. Stapley Dr., Ste.209Mesa, AZ 85204
Mortgage Success Source, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated. Mortgage Success Source, LLC does not grant to you a license to any content, features or materials in this email. You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.

Tuesday, March 23, 2010

Provided to you Exclusively by Phil Jensen

Phil Jensen Senior Mortgage Consultant Amerifirst Financial Office: 480-682-6613 Cell: 602-692-7445 Fax: 480-374-6987 E-Mail: Phil@JensenTeam.com Website: www.PhilipJensen.com

For the week of Mar 22, 2010 --- Vol. 8, Issue 12

Last Week in Review

"I WILL ACT NOW. I WILL ACT NOW. I WILL ACT NOW. " Og Mandino. And wondering what kind of action will happen on Healthcare reform was certainly on everyone's mind last week. But what does this mean for the markets and home loan rates?
Traders have been watching the debate closely, and it's possible that passage of the Healthcare Bill could have a negative impact on the Stock market. If this is the case, there could in turn be a positive outcome for Bonds and home loan rates.
But that's not the only action traders were keeping an eye on last week. Tuesday's meeting of the Federal Open Market Committee offered little surprise, with no change to the Fed Funds Rate, which is the rate banks charge each other for lending overnight, or the language describing that the Fed Funds Rate would remain "exceptionally low for an extended period of time."
While there is growing and well-warranted concern that continuing to keep rates low will lead to inflation down the road...and remember, inflation is the arch enemy of bonds and home loan rates...it does appear that inflation is subdued at present. Last week's reports showed that the Producer Price Index (PPI), which gauges inflation at the wholesale level, was reported well below expectations and at the largest monthly decline since July 2009. Meanwhile, the Consumer Price Index (CPI), which measures inflation at the consumer level, came in just below expectations for February.
And there were additional headlines last week on other possible action that could impact Bonds and home loan rates negatively. Both Fitch Ratings and Moody's have stated that the US has moved substantially closer to losing its AAA credit rating. This would be a very bad turn of events, as it would cost the US a lot more money in interest payments, by way of higher rates, to attract new investors to buy our Bonds. And higher rates on Treasuries would influence home loan rates higher as well.
If you or someone you know would like to learn more about how you can take advantage of today's low-rate environment, or the Homebuyer's Tax Credit which is due to expire on April 30, give me a call.
Bonds were able to improve above important technical levels in the middle of the week, but were unable to hang on to these improvements. As a result, Bonds and home loan rates ended the week about the same as where they began.
SPRING IS IN THE AIR, WHICH MEANS IT'S TIME TO TAKE SOME CLEANING ACTION! CHECK OUT THIS WEEK'S MORTGAGE MARKET GUIDE VIEW FOR SOME SAFE AND HEALTHY SPRING CLEANING TIPS.

Forecast for the Week

The action during Sunday's healthcare vote will almost certainly impact the markets in the coming week, and there is also a full slate of economic reports to watch for. First up, there will be a double-dose of housing news with Tuesday's Existing Home Sales Report and Wednesday's New Home Sales Report.
Also, on Wednesday we'll get a read on the health of the economy with the Durable Goods Report, which gives us an update on consumer and business buying behavior on big ticket items that last for an extended period of time. Friday will bring another read on the economy with the Gross Domestic Product Report, which is the broadest measure of economic activity.
Not to be missed will be Thursday's weekly Initial Jobless Claims Report. While last week's initial claims were essentially inline with expectations, the ugly component of the report was the 5,888,048 people collecting EUC (Emergency Unemployment Compensation) benefits. This is a whopping 360,000 person increase from the prior week. Unfortunately, the labor market continues to be very weak.
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, despite midweek volatility, Bonds and home loan rates ended the week very near where they began. With all the action in store, I'll be watching closely to see in what direction the markets and rates move this week. As always, please feel free to call or email to get more information on what the current rate climate means to you.
Chart: Fannie Mae 4.5% Mortgage Bond (Friday Mar 19, 2010)

The Mortgage Market View...

Safe Spring Cleaning for Your Home and Family
Many parts of the country are already warming up to spring...and that means spring cleaning. But have you ever considered what you're using to clean your home...and if it's really safe for your family? The problem with cleaning products is that there is very little regulation and virtually no labeling requirements.
"A lot of cleaning products contain toxic ingredients that aren't properly regulated, disclosed, or in some cases even tested," said Sara Mohs, co-founder of simplyneutral™, a company that promotes sustainable living through non-toxic cleaners.
In fact, most household cleaners are produced using a petroleum-based formula. That's right, petroleum! In addition, they typically include chemicals, fragrances, and dyes that can be irritating to your eyes, skin, and respiratory tract.
In light of last week's Poison Prevention Week, here's a list of natural alternatives that work great and are probably already in your pantry:
Baking soda - We all know that baking soda absorbs odors, especially in refrigerators, but did you know it's also a simple and effective cleaner? Just mix baking soda with warm water for an inexpensive cleaner comparable to commercial "abrasive" cleaners.
Vinegar - White vinegar is actually a deodorizer and a disinfectant...making it a great all-purpose cleaner. Avoid using vinegar solutions on marble or grout, but it's perfect for all of the other surfaces in the kitchen and bathroom.
Lemon juice - Use lemon juice on hard-water stains, soap scum, even rust stains in the shower, tub, and toilet. Mix lemon juice with salt to remove stubborn stains from coffee pots. Or you can mix lemon juice with baking soda for a softer, paste-like cleaning solution. Add a little to olive oil for an effective wood polish. Blend it with water to make a potent air freshener.
Cornstarch - Cornstarch makes an effective glass and surface cleaner. Plus, you can combine 2 tbsp of cornstarch with 3/4 cup of baking soda for an inexpensive carpet freshener.
Borax - Also known as sodium borate, borax is best known as a hard-water laundry soap, but it also cleans wallpaper, painted walls, and other painted surfaces.
In addition to these natural ingredients, there are also a number of non-toxic cleaners that can be bought in stores. But make sure you consider a couple of points before making your purchase.
First, read the label carefully. "Although a cleaner may contain natural ingredients, it may also include dyes, fragrances, or synthetic preservatives," Mohs said. "For example, if the label says fragrances are added, it may contain up to 150 synthetic chemicals."
Second, you may want to take a quick look at the company itself to see if it is serious about producing natural cleaners that are safe for your family, your home, and the environment.
For more information and tips about non-toxic cleaning, visit www.simplyneutral.com.

The Week's Economic Indicator Calendar

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
Economic Calendar for the Week of March 22 - March 26
Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Tue. March 23
10:00
Existing Home Sales
Feb
5.00M
5.02M
5.05M
Moderate
Wed. March 24
08:30
Durable Goods Orders
Feb
0.5%

2.6%
Moderate
Wed. March 24
10:00
New Home Sales
Feb
315K

309K
Moderate
Wed. March 24
10:30
Crude Inventories
3/20
NA

1.01M
Moderate
Thu. March 25
08:30
Jobless Claims (Initial)
3/20
450K

457K
Moderate
Fri. March 26
08:30
Gross Domestic Product (GDP)
Q4
5.9%

5.9%
Moderate
Fri. March 26
08:30
GDP Chain Deflator
Q4
0.4%

0.4%
Moderate
Fri. March 26
10:00
Consumer Sentiment Index (UoM)
Mar
73.0

72.5
Moderate

The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is not without errors.

As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

Phil@JensenTeam.com

Philip Jensen 1910 S. Stapley Dr., Ste.209Mesa, AZ 85204