ABLEnding 3

La Jolla

admin — Sat, 13 Apr 2013 05:18:51 +0000

La Jolla Branch:

4660 La Jolla Village Drive, Suite 600

San Diego, CA 92122

Main Line: 858-764-7801

Branch Manager: Nick Dawson

ndawson@amerifirst.us

Direct Line: 858-764-7801

Pasadena Branch

admin — Sat, 13 Apr 2013 05:19:53 +0000

Pasadena Branch:

418 North Fair Oaks Avenue, Suite 202

Pasadena, CA 91103

Main Line: 626-219-8130

Branch Manager: Nicholas Gottuso

ngottuso@amerifirst.us

Direct Line: 626-219-8123

Riverside

admin — Sat, 13 Apr 2013 05:20:26 +0000

Riverside Branch:

6759 Brockton Avenue

Riverside, CA 92506

Main Line: 909-641-0527

Branch Manager: Joseph Wiggins

jwiggins@amerifirst.us

Direct Line: 951-330-5626

Colorado Springs Branch

admin — Sat, 13 Apr 2013 05:21:10 +0000

Colorado Springs Branch:

12295 Oracle Boulevard, Suite 330

Colorado Springs, CO 80921

Main Line: 719-228-6055

Branch Manager: Ryan Herbig

rherbig@amerifirst.us

Direct Line: 719-659-0043

Front Desk: Lynda Herbig

lherbig@amerifirst.us

Boise Branch

admin — Sat, 13 Apr 2013 05:21:49 +0000

Boise Branch:

7699 West Riverside Drive

Boise, ID 83714

Main Line: 208-418-0001

Branch Manager: James Dildine

jdildine@amerifirst.us

Direct Line: 208-703-9696

Plano Branch

admin — Sat, 13 Apr 2013 05:22:44 +0000

Plano Branch:5000 Legacy Drive, Suite 160

Plano Texas, TX 75024

Main Line: 469-277-4477

Branch Manager: Scotty Gibson

sgibson@amerifirst.us

Direct Line: 469-277-4460 Cedar Park Branch: 200 S. Bell Blvd, Suite F-6

Cedar Park, TX 78613

Main Line:

Branch Manager: Dan Adams

dadams@amerifirst.us

Direct Line: 512-789-6190

Marble Falls

admin — Sat, 13 Apr 2013 05:24:00 +0000

Marble Falls Branch:2209 9th Street

Marble Falls, TX 78654

Main Line: 512-605-2500

Branch Manager: Robert Ellis

rellis@amerifirst.us

Direct Line: 512-605-2506

Cedar Park

admin — Sat, 13 Apr 2013 05:24:40 +0000

Austin Branch:

13809 Reasearch Blvd Suite 806

Austin, TX 78750

Main Line:

Branch Manager: Dan Adams

dadams@amerifirst.us

Direct Line: 512-789-6190

Cottonwood Heights

admin — Sat, 13 Apr 2013 05:25:25 +0000

Cottonwood Heights Branch:

6955 Union Park Center, Suite 140

Cottonwood Heights, UT 84047

Main Line: 801-823-3355

Branch Manager: Doulgas Walker

dwalker@amerifirst.us

Direct Line: 801-508-6414

Layton

admin — Sat, 13 Apr 2013 05:26:06 +0000

Layton Branch:

579 West Heritage Park Boulevard, Suite 120

Layton, UT 84041

Main Line:

Branch Manager: Jeffery Scott Porter

jporter@amerifirst.us

Direct Line: 801-508-6403

Arizona Represented at National Advocacy Conference

Debbi Hill — Tue, 22 Apr 2014 17:44:27 +0000

Just a quick update on the Advocacy efforts of our Arizona Mortgage Professionals whose involvement and dedication make a difference to all of us….

AMLA’s 2014 President, Kelly Powers, attended both the State and Local MBA Annual Conference and the National Advocacy Conference in Washington, and spent April 10th day on Capitol Hill meeting with members of the House and Senate. There were a total of nine participants representing Arizona on the Hill, including Piero Aviles, Ashley Kendrick, Rich Flanagan, PJ Harrigan, Jamie Korus, Julie Messina, Cody Pearce, and Amy Swaney.The hot topic was of course, GSE reform and specifically the elements of the Johnson-Crapo Bill and HR 2767, otherwise known as the PATH Act. The Arizona delegation spent time with our Legislators and their staff discussing the many issues facing the industry today, in particular the need to maintain access to credit.

Jamie Korus, AMLA member, was among 15 people representing all segments of the lending community that attended the following meetings: Mel Watts, Director of the FHFA at the FHFA, Senate Banking Committee (Johnson and Crapo staff), Senator Bob Corker (R-TN), Richard Cordray, Director of the CFPB at the CFPB, Obama’s Administration in the West Wing of the White House. The issues they addressed were diverse; they included GSE reform; the Johnson-Crapo Bill; compensatory fees; GSE Representation and Warranties; GSE loan limits; ATR/QM Rule clarity; cures and expansion of credit; supporting FHA’s mission to provide credit to underserved markets; and QRM alignment with QM. Jamie’s comments follow:

“The experience as a whole was exceptional. The opportunity to speak directly with policy makers and regulators was unmatched by any other advocacy event I have previously attended. It was also very reassuring to see the warm reception given and obvious relationship that the MBA staff has with all of the people that we met with. It allowed me to see first-hand exactly how well the MBA lobbies and advocates on behalf of all of us, our industry and the consumer.”

Amy Swaney, Mortgage Acton Alliance Chair, presented at at the National Advocacy Conference Town Hall Meeting on April 9 in Washington DC. There were over 400 in attendance representing 39 States. Amy stressed the need for all of us to become involved in order to make our voices heard and our challenges addressed. She cited the sobering statistic that the National Association of Realtors had over 4000 people participate in their day on the Hill while we had less than 275 represent the Mortgage Industry. There were eleven States that did not even attend the conference, nor have they ever! As an FYI, Arizona has 504 registered Mortgage Action Alliance Members, representing 48 member firms that employee 1315 people. Moral of the story- GET INVOLVED!!! Your career depends on it!

As always, AMLA encourages participation among all of our members on both the local and Federal level. Please contact Kelly Powers at 602-332-3282 if you are interested in taking on this rewarding challenge .

Mortgage Alliance Newsletter

Debbi Hill — Thu, 01 May 2014 22:15:25 +0000

Volume VIII | Issue 11 | April 30, 2014

Yesterday, the Senate Banking Committee began the GSE Reform markup process, but limited the session to opening statements by Chairman Tim Johnson (D-SD) and Ranking Member Mike Crapo (R-ID). The consideration of more than 100 amendments that have been filed – and how they may be incorporated or not within emerging new text for the bill – will be postponed until a later date that is yet be determined.

In the meantime, MBA is staying actively engaged with the committee leadership and key Banking Committee staff. We have focused our efforts to promote legislation that will create a vibrant secondary mortgage market that ensures a level playing field for lenders of all sizes and business models, and maintains the access to affordable mortgage credit – particularly the 30-year fixed-rate mortgage – that consumers have come to rely upon. We have also worked with the Committee to promote sensible capital requirements, appropriately draw a “bright line” between primary and secondary mortgage market activities, and properly structure the small lender mutual, a member-owned cooperative created by the legislation.

As the Committee’s mark-up progresses, we will keep you informed of the process, the changes contained in the emerging Johnson-Crapo Manager’s Amendment, and the outcome of other key amendments. To read more details from our full alert, click here.

Key MBA Action

MBA and Other Housing Trade Groups Question HUD’s Basis for FHA 2014 Loan LimitsMBA, the National Association of Home Builders, and the National Association of Realtors together sent a letter to HUD this week, asking the Department to release legal opinions developed by its staff related to the establishment of FHA’s 2014 loan limits. Previously, in response to prior MBA inquiries regarding its methodology for setting loan limits, HUD has indicated that when setting loan limits for 2014 for areas between the $271,050 base limit and the new maximum high cost limit of $625,500, HUD followed a legal opinion by its departmental lawyers which says that under the current statute HUD must use median home prices from 2008 or later. MBA strongly disagrees with HUD’s interpretation of the law and believes HUD has additional discretion under the law to moderate or even reverse many of the reductions seen in the 2014 loan limits. MBA believes the release of HUD’s legal opinions would bring greater transparency and allow MBA and others to better evaluate HUD’s basis for many of the 2014 loan limit reductions.

MBA and Other Trades Call for FHA to Revise its Rule on Private Transfer FeesMBA and other trade groups called on HUD to change FHA’s rule on private transfer fees to mirror that of the GSEs. Currently, while the GSEs permit transfer fee covenants where proceeds are delivered to a community association or nonprofit and provide a direct benefit to the property, FHA does not permit them because of its interpretation of its rule requiring free assumability of property.

MBA Sends Letter to FASB Supporting Proposed Classification of FHA Loans in ForeclosureLast week, MBA submitted a comment letter on an exposure draft for a proposed accounting rule change related to FHA-insured loans. The reason for the change is that there is currently diversity in practice on how to classify FHA loans in foreclosure in a reporting entity’s balance sheet. Some classify the asset as real estate owned and others as a receivable. FASB’s proposal would require all reporting entities to account for such assets as receivables — a position MBA supports — since it better portrays the risk associated with the asset. The FHA guarantee allows the creditor to look to the U.S. government for payment, not just proceeds from sale of the underlying property.

FHA Commissioner Gives Interview on FHA’s MIP PolicyCarol Galante, HUD’s Assistant Secretary for Housing/FHA Commissioner, was recently interviewed by The Washington Post regarding FHA’s MIP policy. In the interview, which references the letter MBA sent to HUD urging the Agency to reexamine the current MIP structure, Commissioner Galante indicated her belief that it is not yet appropriate to consider rolling back premiums while FHA’s Mutual Mortgage Insurance Fund remains below its statutory cap of two percent. Commissioner Galante’s comments in the interview largely echo remarks she made at MBA’s National Advocacy Conference on April 9th. MBA is continuing to work with HUD and other policymakers to urge them to consider options which would make FHA-insured loans more affordable.

CFPB Holds Forum on Mortgage Closing Process, Issues Report Highlighting Pain Points for Consumers and Guidelines for Participation in Pilot Project to Study eClosingsLast Wednesday the CFPB held a Forum on the Mortgage Closing Process. CFPB Director Richard Cordray was joined by HUD Secretary Shawn Donovan and leaders from FHA, VA and USDA to discuss CFPB’s efforts to reach out to consumers and industry stakeholders in order to identify reoccurring issues with the mortgage closing process. CFPB believes that technological solutions—eClosings—may help with some of these issues and to that end Director Cordray announced a pilot initiative to study how eClosings might alleviate the consumer pain points identified by CFPB. The Bureau issued Guidelines for companies that are interested in participating in the Pilot. Concurrent with the Forum, the CFPB issued a Report on Consumer Pain Points in the Closing Process. MBA staff attended the Forum and participated in a CFPB-led Roundtable the following day. HUD Issues Mortgagee Letter on HECM Non-Borrowing SpousesHUD issued Mortgage Letter (ML) 2014-07 which amends FHA’s HECM program regulations and requirements concerning due and payable status where there is a Non-Borrowing Spouse at the time of loan closing. For case numbers issued on or after August 4, 2014, non-borrowing spouses will be able to remain in their homes and they will no longer need to refinance the HECM loan upon the death of the mortgagor. According to HUD it is using the authority granted to it in the Reverse Mortgage Stabilization Act of 2013 to immediately implement this policy change, but the agency intends to publish a rule for notice and comment that will revise its existing regulations to codify the changes made through this ML.

MBA Launches New White Paper Member BenefitMBA is pleased to announce the launch of its new “White Paper Posting” membership benefit, offered exclusively to our Premier and Select level Associate Members. White papers will be posted in the Industry Resources section of MBA’s website and an announcement about the white papers will be included in a May issue of MBA NewsLink. MBA encourages applicable members to take advantage of this exciting opportunity to maximize your thought leadership. White papers must follow MBA’s white paper guidelines and will only be accepted in PDF format. They will be hosted on the MBA website or in the form of a website link to a white paper hosted on your company website. Additionally, each applicable company receives two postings (one posting at a time), per membership year. Submissions will be accepted in April and October and will remain posted until the next submission date or the end of the membership term. Please also allow 10-14 business days for posting. MBA’s white paper guidelines must be signed and included along with your white paper submission.

Updates in Brief:

Last week, the CFPB released a new Guide to Completing TILA-RESPA Integrated Disclosure Forms, a companion to the TILA-RESPA Integrated Disclosure Rule Compliance Guide recently released. The new Guide provides instructions for completing the Loan Estimate and Closing Disclosure and also highlights common situations that may arise when completing the forms. To view all CFPB resources available for the TILA-RESPA Integrated Disclosure rule, please click here.

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Q1 2014 AZ State Data Report

Ryan Englin — Sat, 31 May 2014 14:53:32 +0000

Attached please find MBA’s Q1 2014 state data report for Arizona

Q1 2014 AZ State Data Report

Call to Action — Support Mortgage Choice Act

Debbi Hill — Mon, 09 Jun 2014 16:50:57 +0000

Today the House of Representatives will consider the Mortgage Choice Act (H.R. 3211). H.R. 3211 is a bipartisan bill that would make important changes to the way “points and fees” are calculated under the Qualified Mortgage (QM) definition in the Dodd-Frank Act.H.R. 3211 focuses on making two vitally important adjustments to the Truth in Lending Act (TILA) definition of points and fees to ensure greater consumer choice in mortgage and settlement services under the QM rule.Dodd-Frank provides that a QM, under its “ability to repay” standards, cannot have points and fees in excess of three percent of the loan amount. This three percent limit on points and fees could have the unintended effect of limiting the availability of affordable mortgage credit, particularly for loans under $150,000.H.R. 3211 endeavors to restore a full and open competitive market by clarifying the definition of fees and points. In doing so, the legislation will ensure consumers have greater access to mortgage credit and also more choices in credit providers. Proper implementation of the ability to repay and QM requirements is crucial to allowing credit-worthy consumers purchase or refinance a home at affordable rates. MBA is asking you to please contact your Representative to urge them to support this important legislation.Please click HERE to go to the MAA homepage and click on the “Take Action” button to get started. If you don’t have, or have forgotten your username and password, click on “forgot password” to retrieve it. Please contact Annie Gawkowski at 202-557-2816 if you need assistance.

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Economist Elliot Eisenberg on GDP Growth

Debbi Hill — Tue, 17 Jun 2014 15:26:30 +0000

While expecting Q1 GDP growth to be revised down to an annualized rate of -2% from the current -1%, expect the Fed to keep tapering on autopilot and reduce it by another $10 billion to $35 billion/month at the conclusion of the June 17-18 meeting. Markets will now be laser-focused on how and more importantly when the Federal Reserve plans to engineer the first increase in short-term rates since 7/06.

Elliot F. Eisenberg, Ph.D.

GraphsandLaughs, LLC

elliot@graphsandlaughs.net

Cell: 202.306.2731

www.econ70.com

Mortgage Choice Act Passes

Debbi Hill — Tue, 17 Jun 2014 17:51:06 +0000

MBA’s Stevens Comments on the Passage of H.R. 3211, The Mortgage Choice ActWASHINGTON, D.C. (June 9, 2014)–Today, David H. Stevens, President and CEO of the Mortgage Bankers Association (MBA), released the following statement on the United States House of Representatives passage of H.R. 3211, The Mortgage Choice Act:“MBA commends the House of Representatives for approving this bipartisan legislation, which excludes from the Qualified Mortgage (QM) definition of points and fees all title charges, regardless of whether they are charged by an affiliated company, provided they are bona fide and reasonable. Proper implementation of the ability to repay and QM requirements is crucial to allowing credit-worthy consumers to purchase or refinance a home at affordable rates. MBA looks forward to continuing to work closely with lawmakers as the bill moves to the Senate for consideration.”The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, REITs, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA’s Web site: www.mba.org

Mortgage Action Alliance Newsletter

Debbi Hill — Thu, 24 Jul 2014 19:04:24 +0000

Key MBA Action

TRIA Reauthorization Bill Passes in Senate Last Thursday the Senate, by a vote of 93-4, passed S. 2244, The Terrorism Risk Insurance (TRIA) Reauthorization Act of 2014. If enacted, S. 2244 would reauthorize TRIA for seven years while making modest reforms to the existing program. Earlier in the week, MBA President and CEO David H. Stevens sent a letter of support for S. 2244 to Senate Majority Leader Harry Reid (D-NV) and Minority Leader Mitch McConnell (R-KY) and issued a statement following the Senate vote. The TRIA reauthorization process now moves to the House of Representatives, where the Republican leadership is currently attempting to garner support for a competing TRIA reauthorization proposal, authored by Financial Services Committee Chairman Jeb Hansarling (R-TX).

MBA Pushes Back on FHFA OIG Report that Questions Recent GSE Purchase Mix FHFA’s Office of the Inspector General (OIG) released a report last week indicating that GSE purchases of mortgages from their largest counterparties have declined significantly since 2011, and that smaller lenders have considerably increased direct sales to the GSEs. MBA believes this is a positive development, which the Association has supported with policy positions that call for fair and competitive markets for lenders of all sizes and business models (e.g., guarantee fees based on loan quality, not volume or asset size).

Unfortunately, the OIG report inexplicably concludes that the shift to “smaller and nonbank lenders” may increase the GSEs’ exposure to counterparty risk and raised costs for managing this risk. The report’s narrative ignores the significant risks that the GSEs took through their aggregation models, and the OIG’s “findings” defy basic principles of risk management — that diversification of business partners lowers the GSEs’ and the taxpayer’s risk, period. Taxpayers, the GSEs and most of all, consumers, benefit from a strong, diversified market where lenders of all sizes and business models can constructively and fairly participate. MBA will be preparing a detailed rebuttal to the OIG report to set the record straight on the important benefits that a more competitive and diversified seller base has had on the GSEs.

MBA Files Comment Letter on FHA’s HAWK Program, Suggests Changes to Further Help Borrowers Last Monday, MBA filed a comment letter with FHA on the Homeowners Armed with Knowledge (HAWK) housing counseling program, which would provide first-time homebuyers who receive HUD-certified counseling with FHA mortgage insurance premium (MIP) reductions. MBA believes that the current FHA premium structure is pricing many otherwise qualified borrowers out of the market, and in its comments MBA congratulated FHA for its initiative with HAWK, but suggested that the program be restructured to offer borrowers greater material reductions in their monthly payments by shifting proposed reductions in the upfront MIP to the annual MIP. On a $200,000 loan — assuming a four percent base note rate, 30-year term, financing of the upfront MIP, and that the borrower completes all counseling and makes all payments within program guidelines — MBA’s alternative proposal would save a borrower $15,369 over the full 30-year life of the loan as compared to savings of $12,834 over the same time period under FHA’s HAWK proposal. MBA’s comment also expressed concern with several other aspects of the FHA proposal, including its requiring of lenders to bear the cost of some portions of the counseling, the utility of post-closing counseling, and the limiting of the initial phase of the HAWK program to lenders and servicers selected by FHA.

MBA Submits Letter to CFPB, Offers Thoughts on Proposed Changes to Annual Privacy Notice Requirement MBA submitted a comment letter to the CFPB last Monday, regarding its proposed amendments to the annual privacy notice requirement under the Gramm-Leach-Bliley Act. In the letter, MBA strongly supported the CFPB’s efforts to reduce the burden and costs to the industry associated with providing annual privacy notices, while recognizing the importance of clearly disclosing to consumers a financial institution’s policies for the treatment and sharing of nonpublic information. While supportive, the letter also expressed concern that the ability to post a privacy policy online in certain circumstances — rather than send annual notices — will not be as widely available as it should be. MBA then went on to suggest that any notice that complies with Regulation P should be qualified to use the proposed amendment’s alternate delivery method if the financial institution is otherwise eligible.

CFPB Proposes Expanding Complaint Database to Include Consumer Narratives The CFPB is seeking comments on a proposed policy statement that would add “unstructured” consumer complaint narratives to the CFPB’s publicly available consumer complaint database concerning consumer financial products and services. According to the Bureau, only the narratives for which they have obtained consumer consent, which have then additionally been scrubbed to remove personally identifiable consumer information, would be posted. In addition, under the proposal, lenders would be free to post public responses to consumer complaint narratives as long as they did not contain personally identifying information. MBA has consistently and strongly opposed efforts by CFPB to release unverified information of this type, as it would be costly to the market and consumers alike. Comments on the proposed policy are due 30 days from the date of publication in the Federal Register, and MBA intends to provide an official comment.

FHA Gives Final Extension on Recertification Filing Deadline In response to issues many lenders have experienced completing the annual recertification process through the Lender Electronic Assessment Portal (LEAP), FHA has provided a final extension of the recertification filing deadline for Title I and Title II lenders and mortgagees with the following fiscal year end dates: December 31, 2013; January 31, 2014; February 28, 2014; and March 31, 2014. The deadline to submit complete recertification packages for this group, including the submission of financial information and annual renewal fees, will now be July 31, 2014.

MBA Compliance Essentials is on the Road with its TILA-RESPA Integration Forums This summer, MBA is coming to a city near you with its traveling TILA-RESPA Integration Forums. These Compliance Essentials Forums provide a day-long deep dive into all of the major implementation issues that companies need to be working on one year prior to implementation. Forum speakers include top-level legal, compliance and technology experts — including a CFPB representative. Upcoming opportunities include next week’s stop in Los Angeles on Wednesday, July 23rd; Atlanta on Thursday, July 31st; and Washington, DC on Thursday, August 7th. MBA Member registration starts as low as $500 a person, depending on the date of purchase.

Free Webinar — TILA/RESPA Rule

Debbi Hill — Fri, 19 Sep 2014 19:03:48 +0000

The CFPB has informed us that the Federal Reserve will be hosting a 90 minute webinar to answer frequently asked questions about the TILA-RESPA Integrated Disclosure rule on Wednesday, October 1 at 2:00pm EDT. This will be the third in a series of webinars that have been held to address the new rule as interested stakeholders work to implement it over the next year. In this session, they will specifically address the loan estimate form with a focus on questions raised by technology vendors.

To register for the webinar, please click here: http://www.philadelphiafed.org/bank-resources/publications/consumer-compliance-outlook/outlook-live

Mortgage Action Alliance Newsletter

Debbi Hill — Wed, 24 Sep 2014 20:33:26 +0000

Congress left town last week, having passed a Continuing Resolution to keep the federal government funded into December, and will return for a lame-duck session one week after the November midterm elections. Before adjourning, the House passed a package of Dodd-Frank fixes that included MBA-supported changes to the Ability to Repay rule and its calculation of “points and fees.”Also last week, MBA President and CEO David H. Stevens was joined by MBA’s Chairman-Elect Bill Cosgrove, CMB and Vice Chairman Bill Emerson, as well as other industry leaders, at a meeting with senior Obama administration officials and executives from Fannie Mae and Freddie Mac to discuss ways to expand access to mortgage credit.

Key MBA Actions

House Passes Package of Dodd-Frank Fixes, Including ATR “Points and Fees

”This past Tuesday, the House of Representatives passed H.R. 5461, a package of four bills aiming to amend the Dodd-Frank Act. The legislation, which passed by a vote of 327 to 97, combined four separate bills that had previously passed either the House or Senate in an overwhelming fashion. One of the included bills was H.R. 3211, the Mortgage Choice Act, which would fix the way “points and fees” are calculated under the CFPB’s Ability to Repay (ATR) rule, to ensure more loans receive the legal protections afforded to Qualified Mortgages. MBA worked with its member companies and sister trades to send a letter to House members, which helped to advance this legislation to the House floor and ensured its passage. Members of the Mortgage Action Alliance (MAA) also weighed in strongly by contacting their Representatives in support of the bill. H.R. 5461 now moves to the Senate for further consideration. MBA and MAA will continue to push for a vote on this legislation when Congress returns after the November midterm elections.

MBA and Industry Trade Groups Urge CFPB to Provide Authoritative Guidance on RESPA–TILA Implementation; CFPB also Set to Host New Informational Webinar

MBA and more than one dozen industry groups submitted a letter last week asking the CFPB to increase its outreach efforts ahead of implementation of the RESPA–TILA Integrated Disclosure rule on August 1, 2015. The letter, while recognizing the efforts the Bureau has made through webinars and other channels, echoed previous MBA sentiment that, due to the complexity of this and other rules, the Bureau should provide reliable, written guidance developed with input from stakeholders on outstanding issues. The letter also asked that the CFPB continue its participation in industry conferences and forums related to the implementation of the rule, provide more exemplar forms for a variety of transactions, work with vendors to ensure they are ready for the August 1 deadline, and that the Bureau review duplicative and contradictory state laws which threaten to add complexity to the implementation of the integrated disclosures. Relatedly, the CFPB will be holding a new webinar on Wednesday, October 1 from 2:00–3:30 PM Eastern to address the rule’s loan estimate form, with a focus on questions raised by technology vendors. To participate you will need to be registered. In advance of the webinar, MBA will be collecting, compiling, and providing to the CFPB outstanding questions on the integrated disclosures.

MBA Submits Comments on FHFA Strategic Plan

Last Monday, MBA submitted comments on the single-family and multifamily components of FHFA’s Strategic Plan for Fiscal Years 2015-19. On the single-family side, MBA urged FHFA to focus on policies that expanded borrowers’ access to credit. Noting that many first-time homebuyers and low-to-moderate income borrowers are being priced out of the market, MBA identified several specific priorities that would help accomplish this goal: implementation of MBA’s deeper, up-front risk-sharing proposal; moving the GSEs to issue a common, fungible, TBA-eligible single security to improve liquidity; and revision of the rep and warrant framework to provide lenders with needed clarity. MBA also strongly argued that the recently proposed Federal Home Loan Bank (FHLB) membership limitations be abandoned because they would significantly undermine the FHLB system, causing further harm to the housing market. On the multifamily side, MBA urged FHFA to underscore the importance of multifamily rental housing and the GSEs’ role in providing liquidity and stability, as well as to consider additional strategic steps to continue strengthening the market.

FHFA OIG Issues Report on Rep and Warrant Framework; MBA Preparing Response to Report’s Conclusions

In additional FHFA news, the Agency’s Office of the Inspector General (OIG) issued a report last week critical of FHFA’s recent efforts to clarify the GSEs’ rep and warrant framework. The report argued that the GSE quality control systems are insufficiently prepared for the changes that were announced, and that as a result the GSEs will assume greater risk than under the current framework. MBA believes that the OIG’s conclusions are mistaken and is preparing a formal response to the report. MBA has committed to leading the effort with FHFA and the GSEs to provide lenders with needed clarity and key reforms of the rep and warrant framework, to help FHFA fulfill its statutory mission of facilitating a liquid, stable, resilient national housing market. Expanding the credit box is critical to making the housing recovery a sustainable one, and the lack of clarity on lenders’ rep and warrant liability is directly responsible for the credit overlays that are preventing many borrowers from obtaining a mortgage.

FHA Releases Draft Loan Quality Assessment Methodology

FHA posted a draft of its Loan Quality Assessment Methodology for feedback. This Methodology is one part of FHA’s Blueprint for Access strategy announced earlier this year, which aims to expand access to mortgage credit for underserved borrowers. Generally, the Methodology is based on three core concepts: identifying a loan defect; capturing the sources and causes of the defect; and assessing the severity level of the defect. MBA has been working closely with FHA for the past year to design processes to improve transparency and consistency in FHA’s loan quality assessments and will continue to do so with regard to this Methodology.

MBA Sees Originations Increasing 7% in 2015

Debbi Hill — Tue, 21 Oct 2014 20:19:19 +0000

CONTACT: Shawn Ryan sryan@mba.org (202) 557-2727

MBA Sees Originations Increasing Seven Percent in 2015

Washington, DC (October 21, 2014) – The Mortgage Bankers Association announced today that it expects to see $1.19 trillion in mortgage originations during 2015, a seven percent increase from 2014. While MBA anticipates purchase originations will increase 15 percent, it expects refinance originations to decrease three percent. MBA’s forecast predicts purchase originations will increase to $731 billion in 2015, up from $635 billion in 2014. In contrast, refinances are expected to drop to $457 billion, from $471 billion, in 2014. For 2016, MBA is forecasting purchase originations of $791 billion and refinance originations of $379 billion for a total of $1.17 trillion. “We are projecting that home purchase originations will increase in 2015 as the US economy continues on its current path of stronger growth, job gains and declining unemployment. The job market has shown sustained improvement this year; with robust monthly increases in both payroll jobs and job openings,” said Michael Fratantoni, MBA’s Chief Economist and Senior Vice President for Research and Industry Technology. “We are forecasting that strong job growth, coupled with still low mortgage rates, should translate to an increase in home sales and purchase originations. “Our projection for overall economic growth is 2.9 percent in 2015 and 2.4 in 2016, which will be driven mainly by strong consumer spending and business fixed investment, as households continue to spend on durable goods, such as cars and appliances, and as businesses invest in new plant and equipment. Moreover, after several years of contraction, the rate of government spending should no longer be a drag on the economy. “We expect that the 10-Year Treasury rate will stay below three percent through the first half of next year as concerns about broader global issues have caused a flight to quality, with investors seeking safety in US Treasury securities. However, if the global turmoil diminishes and US economic growth continues, we anticipate the rate will exceed three percent in the second half of 2015, continuing to increase through 2016. We expect the Federal Reserve will keep short-term rates near zero until mid 2015, when we expect to see the first fed funds rate increase. “We forecast that monthly job growth will average 220,000 per month in 2015, and that the unemployment rate will decrease to 5.4 percent by the end of 2015 and 5.2 percent in 2016. While part of the decrease in the unemployment rate in 2014 has been driven by lower labor force participation, we have seen payroll growth outpace population growth and a declining number of unemployed workers. Our anticipation is that as the economy grows, more workers may return to the work force to seek employment, and this will temper the decline of the unemployment rate. “With the recent drop in mortgage rates, some borrowers now have an incentive to refinance and with the home price gains of the last two years more homeowners have enough equity to refinance, so we expect a pickup in refinance application activity over the next few months, which will lead to higher refinance originations in early 2015,” Fratantoni said. MBA upwardly revised its estimate of originations for 2014 to $1.11 trillion from $1.01 trillion, and for 2013 to $1.85 trillion from $1.76 trillion, to reflect the most recent data reported in the 2013 Home Mortgage Disclosure Act (HMDA) data release.

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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, REITs, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA’s Web site: www.mba.org.

With Stocks Still Near Their Highs What Should Retirees Do Now?

Shoreline Financial Services of Arizona LLC — Tue, 19 Jul 2016 19:34:11 +0000

Although the stock prices are trading near their all-time highs, it hasn’t exactly been a joy ride for retirees who are counting on their retirement plans for a lifetime of income. The type of unruly market action that we have seen over the last few months always unleashes a flurry of “expert” commentary that seems to be directed at those who are most vulnerable to flash

Are You Nominally or Really on Track to Your Retirement Goals?

Shoreline Financial Services of Arizona LLC — Thu, 28 Jul 2016 23:09:27 +0000

Amidst the more obvious lingering effects of a sluggish economy, such as slow job growth, decreasing incomes, low interest rates and shaky consumer confidence, there lurks a more insidious threat which, thus far, has largely been ignored.

How to Purchase the Right Amount of Life Insurance

Shoreline Financial Services of Arizona LLC — Thu, 04 Aug 2016 21:45:26 +0000

Anyone with a family to protect understands the critical role life insurance plays in their financial plan However, in determining the actual amount of coverage to provide essential protection needs, many people tend to adhere to simplistic rules-of-thumb, such as a “multiple of income,” which may leave them wondering if they own too much or too little coverage.

Saving for Retirement

Shoreline Financial Services of Arizona LLC — Sat, 06 Aug 2016 05:35:00 +0000

Saving for retirement is often looked upon as a burden, but once you reach the age of retirement it quickly becomes a blessing. Looking for ways to keep your lifestyle in retirement can be difficult to navigate. Pension and compensation packages offered by companies that gave a percentage of the employee's salary is something that people used to be able to count on.

Retire to Happiness: Tips to Thrive in the Next Chapter of Life

Shoreline Financial Services of Arizona LLC — Mon, 03 Oct 2016 21:28:27 +0000

Here’s a thought: retirement doesn’t mean the end. It doesn’t mean an end of self-importance or purpose, it just means a new chapter—a paradigm shift of what life is beyond long days and meetings and bosses. Unless you own your own business, and even then, you are not your business.

Dorothy (“Dottie”) Reinert, CPA

fourpeakswealth — Fri, 01 Sep 2017 01:40:46 +0000

Dottie is a Certified Public Accountant (CPA). After graduating from College in NH she worked as an accountant in various companies, achieving the title of Accounting Manager for a manufacturing firm. She also worked for small CPA firms, as a tax preparer, accountant and auditor. Dorothy started her own CPA practice in 1990, preparing tax returns, as well as auditing, reviewing and compiling financial statements, mostly for for nonprofit and small businesses. After selling her practice in New Hampshire, she and her husband moved to Arizona to enjoy a warmer climate. Dorothy enjoys working with Four Peaks Wealth and Accounting and looks forward to the expanded service offering.

In her free time, she enjoys Zumba classes, reading and hiking with her husband Eric.

Jill Adams

fourpeakswealth — Fri, 01 Sep 2017 01:45:53 +0000

Jill Adams’ career started in health care and encompassed oversight of patient care, accounting, marketing, human resources, advertising, administration, and turn-around services. She has an expertise in home health, sub-acute care, nursing homes, assisted living centers, and adult day health centers.

Jill visited Sedona in September of 2015, fell in love with the red rocks, and relocated with her children to Sedona in April of 2016. She joined Four Peaks Wealth and Accounting as the office administrator, bringing the customer service skills she honed while overseeing the care of the elderly and disabled. Jill enjoys assisting clients with problem resolution with the IRS, and is studying to become an Enrolled Agent. She also assists clients in obtaining EINs for new businesses, and transitioning their businesses to S-Corporations.

Jill enjoys hiking, exploring the Sedona area with her family and friends, and researching whatever strikes her fancy.

Barbara Benson

fourpeakswealth — Fri, 01 Sep 2017 01:46:40 +0000

Barbara started her own accounting practice in 1974, in Rockford, IL. She sold that practice fifteen years later and moved to Sedona in 1989. There, she started another firm, Village Accounting, which was sold to Four Peaks Wealth and Accounting’s predecessor in 2015. She is an enrolled agent with the IRS and particularly enjoys tax work.

Barb has a husband, Thomas, and two sons, Skip and Matt. Her hobbies include quilting, reading and traveling in the family motorhome.

Kevra Barney

fourpeakswealth — Fri, 01 Sep 2017 01:47:32 +0000

Kevra joined Four Peaks Wealth and Accounting as a tax preparer in 2017. She was raised in the Phoenix Metro area and started out in Flagstaff as a student. Kevra attended Northern Arizona University and received a Bachelor of Science in Accountancy, with a minor in mathematics as well as a Masters of Business Administration. While attending school, Kevra gained professional accounting experience working in the university’s billing department, at an HOA management company office, and within a governmental and nonprofit auditing firm.

Kevra enjoys working at FPWA because it allows her to positively influence the Northern Arizona community by helping others via tax advice and preparation. She is currently studying for the CPA exam, which will allow her to provide clients with even more knowledge and tax expertise.

In her free time, Kevra enjoys traveling with her husband, cooking and baking, spending time outdoors, and being with family. She also spends time volunteering within her church community.

Kirsten Mead

fourpeakswealth — Fri, 01 Sep 2017 01:48:32 +0000

Kirsten joined the Four Peaks Wealth and Accounting team as the Workflow Coordinator. She is a native of Flagstaff, Arizona and considers Sedona as one of her favorite places on earth. Kirsten holds a B.S. in Criminal Justice from Northern Arizona University.

After working in the criminal justice field for several years, followed by billing and collections for a large physician practice, Kirsten ran a successful craft store in Flagstaff. During her nine years as a business owner she was a recipient of the 2007 Small Business Development Center Success Award. After running her own business, Kirsten went on to work at Northern Arizona University, where she was the Administrative and Financial Manager of the Alliance Bank Business Outreach Center. She also planned three successful Economic Outlook Conferences, which drew business leaders from throughout northern Arizona.

Kirsten enjoys spending time with her family, adores her menagerie of animals, and loves hiking, paddle-boarding, and chasing sunsets.

Patrick McGee

fourpeakswealth — Fri, 01 Sep 2017 01:49:30 +0000

Patrick joined Four Peaks Wealth and Accounting as a tax accountant, looking to broaden his experience in tax preparation. Prior to that he was the sole proprietor of a Florida-based registered CPA firm. For eight years he specialized in small business tax returns for a wide variety of businesses. He also prepared individual tax returns during this period. Patrick believes that the service provided to a client is a moral issue, not a mere obligation based on the exchange of time and money. While working as a CPA he attained his Master’s in Taxation degree at Florida Atlantic University in Boca Raton, Florida. Earlier, after serving time in the US Navy, he earned his BA degree in Management and Economics from Trinity International University located in Deerfield, Illinois and then his Master’s in Accounting degree at Florida International University in Miami, Florida. Soon after that he received the approval from the Florida Board of Accounting to be licensed as a CPA in the State of Florida. Patrick will soon also be registered in the State of Arizona as a CPA. He has also worked at publicly traded and closely held companies as a private accountant.

During his off-time Patrick is an avid powerlifter and competes at least once a year. He also enjoys taking part in his local community.

Ruthie Lee, EA

fourpeakswealth — Fri, 01 Sep 2017 01:50:16 +0000

Ruthie was the manager of an auto repair shop for fifteen years before joining Four Peaks Wealth and Accounting’s predecessor firm. There, she was responsible for all facets of business; hiring, firing, accounts receivables and payables, inventory management, bookkeeping, workflow and scheduling, plus all tax and governmental filings. She has also managed her husband’s small business for the last twelve years. Ruthie also serves a handful of tax clients owning small businesses. She graduated with an Associate’s Degree in Business, with a Certificate in Accounting, from Yavapai College. She is also an Enrolled Agent with the IRS and expects to receive her QuickBooks Pro Advisor Certification by year end.

Ruthie has been married to her husband, James, for thirteen years and has two boys, Anthony and Preston. Their primary hobby is cars; working on and fixing them, as well as watching them race. Most family time spent together is either outdoors at the creek or the lake. Their family owns two min-pin/Chihuahua dogs.

Newsletter Sign Up Success

fourpeakswealth — Sat, 02 Sep 2017 18:41:46 +0000

Thank you for signing up for our Four Peaks Wealth and Accounting news. We look forward to sharing information with you that can help shape your successful financial future. No email overload – we promise!

Climbing the “Wall of Worry”

fourpeakswealth — Tue, 19 Sep 2017 12:23:06 +0000

Roseanne Roseannadanna, a recurring character on Saturday Night Live was fond of saying: “If it ain’t one thing, it’s another.” That couldn’t be truer about investing.

Investopedia defines a “wall of worry” as the financial markets’ periodic tendency to surmount a host of negative factors and keep ascending. While the “wall” may sometimes consist of a single financial, geopolitical, or natural event, it more commonly is built with concerns on numerous fronts.

In no particular order of crises, I offer the following examples of negative factors.

Financial Contagions

The global Great Depression, preceded by the stock market crash of 1929, is a distant example of the effects of contagion on an integrated global economy. There are many modern examples, too. In 1997, it was the Asian financial crisis, triggered by the collapse of the Thai Baht. That crisis eventually made its way to Russia and Brazil. In 2015, it was China who devalued their currency, leading to a loss of five trillion dollars in global stock market value.

Financial contagion also happens at the domestic level, usually due to the failure of a bank or other financial intermediary. The crisis of 2007–2008 is thought of as the most severe since the 1930 Great Depression. By March of 2008, the investment banking firm Bear Stearns had failed and was being rescued by the U.S. government. That in turn triggered the largest U.S. Chapter 11 filing ever by Lehman Brothers, and the government rescue of American International Group (AIG).

Geopolitical Events

We don’t need to go back even a year to collect a meaningful list of geopolitical crises. In reverse order, North Korea’s recent firing of a ballistic missile over Japan put markets on edge. Threatening to take out Guam, not to mention major American cities, Pyongyang’s erratic leader continues to rattle global markets. Late spring/early summer saw yet another series of terrorist attacks in France and Great Britain. And in April, the U.S. military attacked a military base in Syria, leading many to assume a full-fledged attack would follow.

Natural Disasters

As I write this article, cleanup is just beginning for Hurricane Irma. While it is too early to know its exact cost, it’s fair to question the market impact given its path of destruction. This is right on the heels of Hurricane Harvey, which looks to be the costliest natural disaster in the history of the U.S.

With road, infrastructure and building damage typical after disasters, local businesses can be shut down for some time. Every year we face new disasters that test our resilience.

Time is the Best Way to Capitalize on the Stock Market’s Gains

Putnam Investments conducted a 15-year study from 2001 through 2016. In it they found that missing the 10 best days of stock market returns reduced the return of the Dow Jones Industrial’s Average from 7.28% to 2.60%, cutting an investor’s total dollar return by almost half. By trying to predict the best time to buy and sell, an investor also risks missing the market’s biggest gains. It turns out that the best way to capitalize on market strength over time is simply staying in the market and doing nothing. Major political and economic events that seem to erupt almost routinely are opportunities to review plans, challenge outlooks, and re-confirm goals and strategies, but they are not selling opportunities. Quite the contrary, as Warren Buffet is known to profess: “You have to be greedy when others are fearful.”

It turns out that the best way to capitalize on market strength over time is simply staying in the market and doing nothing.

Ron Getto, Four Peaks Wealth and Accounting Chief Financial Officer

Climbing the “Wall of Worry”

While it’s true with investing that “If it ain’t one thing, it’s another,” just remember to not let those “things” distract you from your long-term financial plan.

The markets’ ability to climb this wall of worry reflects investor confidence that these issues will be resolved at some point, yet another great reason to “stay the course” in the face of bad news.

FPWM Newsletter | Quarter 3, 2017

fourpeakswealth — Wed, 11 Oct 2017 10:23:46 +0000

In this edition…

Review of Q3 Performance

Historically, fall has been a particularly unkind season to investors… Should our outlook prove too optimistic, our most conservative portfolios are protected with a mix of safer assets.

Happy Birthday to Us

We are happy to report to you that we’ve beaten the odds and made it to the five-year mark as of October 4th. During this time, we have been fortunate enough to work with over 250 clients, who have trusted us with their and their employee’s savings. We have also established a solid track record of investment performance over these years across four distinct portfolios.

Quarterly Media

Climbing the “Wall of Worry”

The FPWM Team

We are pleased to announce that Lisa Short joined the FPWM team this past quarter as our office manager, replacing Penelope Scott.

Download the Q3 2017 Newsletter HERE.

A Retirement Checklist for Baby Boomers

Ryan Eaglin — Thu, 17 May 2018 16:55:03 +0000

Share List You’ve spent the past few decades building a career and raising a family. Along the way, you may have accumulated a substantial number of assets. Now retirement is quickly approaching, and you’re wondering if you’re as prepared as you need to be. Many baby boomers measure their preparedness in terms of assets. They’re…

4 Retirement Planning Myths That Could Derail Your Retirement

Ryan Eaglin — Thu, 24 May 2018 17:59:10 +0000

Share List When it comes to planning for retirement, there’s a lot of information available. From financial media to financial professionals to even your own friends and family, there is no shortage of retirement planning advice. Unfortunately, not all advice is good advice. In fact, there are many persistent retirement-related pieces of wisdom that may…

3 Signs You Might Be Ready for Retirement

Ryan Eaglin — Thu, 31 May 2018 19:45:05 +0000

Share List It’s a goal that most workers dream about their entire adult lives. Retirement. The day you finally get to stop building your schedule and priorities around your work obligations and start living life on your terms. If you’re in your late 50s or in your 60s, you may be wondering when will be…

NewsMax Finance: 5 Ways Annuities Can Protect You From Uncertainty of Stocks

Ryan Eaglin — Mon, 04 Jun 2018 15:03:27 +0000

Share List We have exciting news! Ryan Eaglin, founder of our firm, has been featured on one of the largest polital web sites in the United States, NewsMax. In fact, they have more than 3 million visitors to their site per month. Check out the NewsMax article titled 5 Ways Annuities Can Protect You From Uncertainty of Stocks…

Eliminate Your Retirement Shortfall With These 4 Strategies

Ryan Eaglin — Thu, 12 Jul 2018 17:59:06 +0000

Share List Behind on your retirement savings? While you may be feeling some stress about your retirement outlook, you certainly aren’t alone. According to Gallup’s 2017 study of financial concerns, more than half of all Americans are worried about their ability to pay for retirement. If you’re behind on your savings, the simple solution is…

Watch Out for these 3 Financial Risks in Retirement

Ryan Eaglin — Thu, 19 Jul 2018 17:19:48 +0000

Share List Retirement is supposed to be about enjoying the good things in life. It’s a time to travel, pursue a favorite hobby, and spend time with family. After all, you’ve worked hard for decades to accumulate assets. Retirement is your time to enjoy the fruits of your labor. Of course, saving money and getting…

The Other Side of Retirement Planning: Income Distribution Strategy

Ryan Eaglin — Fri, 27 Jul 2018 14:04:05 +0000

Share List For many people, retirement planning is all about asset accumulation. Retirement is a substantial financial goal. To have a successful, comfortable, and financially stable retirement, you’ll likely need income that lasts for multiple decades. Generating that kind of income requires assets, hence the focus on saving and accumulation. There is, however, another side…

How Gen Xers Can Catch Up on Their Retirement Savings

Ryan Eaglin — Tue, 14 Aug 2018 20:17:21 +0000

Share List Are you a member of Generation X? Feeling uncomfortable about your preparedness for retirement? You’re not alone. A recent study from Transamerica found that only 12 percent of Gen Xers feel secure about their ability to retire. The study found that the average Gen X household has only $69,000 in retirement savings. Generation…

Health Care in Retirement: What’s Your Funding Strategy?

Ryan Eaglin — Fri, 17 Aug 2018 14:43:55 +0000

Share List Think Medicare will cover all your health care expenses in retirement? Think again. Medicare is a valuable resource for retirees, but it doesn’t cover everything. In fact, even for covered services, Medicare doesn’t cover the full cost. In most cases you’ll have copays and deductibles. In fact, Fidelity estimates that health care could…

The Ultimate Guide to “Types of Annuities”

Ryan Eaglin — Thu, 23 Aug 2018 18:43:57 +0000

Share List Are you approaching retirement? If so, you’re probably finalizing your plans. Perhaps you’re projecting your income, developing your retirement budget, or even analyzing your investment allocation. Retirement is a big financial challenge, so it’s important that you develop the right strategy for your needs and goals. You have a wide range of financial…

Mortgage Rates Fall on Coronavirus Fears

Jeremy House — Tue, 25 Feb 2020 08:17:09 +0000

Mortgage rates change based on factors that logically impact financial markets. However, it’s also common for something as disconnected to mortgages as the Coronavirus to move rates too.

2020 is thus far a winning streak for mortgage rates. However, something obscure now adds more downward pressure on home loan rates making for a historically low rate environment. Much like the Soy Bean impact on rates we covered a while back, this too is a rate dropping force many didn’t see coming.

Learn how to help the Coronavirus crisis

The Coronavirus has not only spread into more regions across the globe, it has crept into the realm of international finance. Despite how unlikely it first appears, the virus is directing traffic on Wall Street in a significant way.

Coronavirus & Wall Street

The economy of today is undoubtedly a globally tethered one. Due to the interweaving dependent connections of complex economies across the globe – what impacts one usually somehow impacts them all.

The spread of the virus into Italy now makes this a European issue and possibly a global issue that could upset the supply chain for months or years to come
Kevin Giddis, CFIS Raymond James

The rapidly spreading Coronavirus has given birth to contagious health concerns in many cities. So much so that meaningful portions of the global supply chain have literally shut down. For example:

4 of the worlds top 12 economies scrambling to contain virus
South Korea shut down public buildings, schools & sports events in the industrial area of the Country

Learn how to help the Coronovirus crisis

Global Scares & US Mortgage Rates

To understand the Cornoavirus’ impact on our home loan rates, first consider how Countries rely on each other. For example, South Korea provides many other nations with cars, machinery and electronic goods. In addition both Japan and China play major roles in the supply chain for many different industries around the world.

Next, consider that investing in stock is analogous to betting a company or on the broader scope that an economy will grow. When investors sense risk to that investment they see potential for the stock’s value and their capital vanishing.

Run for Shelter When Stocks are Falling

Investors seek safety from risk and uncertainty. The ultra low return yet virtually no risk bond market provides safety. It’s a shelter from the storm. While things get rough on the high seas, investor’s make sluggish gains in the bond market which beats rapidly losing gobs of cash in an unstable stock market that is fearing global impacts of the Coronavirus.

Finally, when demand and cash both flow from stocks into bonds during a cycle known as a “flight to quality” – bond prices increase. Increased bond prices lead to lower home loan rates. Often, times this scenario is paradoxical. On one hand something not so great is happening while on the other interest rates drop.

In conclusion, the Coronavirus and those imapcted are the most important. An end cannot come too quickly. While we can’t predict these polarized situations, it’s important to learn how they impact financial markets and more specifically home loan interest rates here in the US.

The post Mortgage Rates Fall on Coronavirus Fears appeared first on Arizona Mortgage Lender | The HOUSE Team.

Mortgage Rates & the State of Emergency

Jeremy House — Sat, 14 Mar 2020 02:42:02 +0000

Financial markets are impacted by global events such as the Coronavirus. Mortgage rates are among the financial products feeling the Pandemic’s impact. March 13, 2020 the State of Emergency declaration also effected mortgage rates.

What is a State of Emergency
How did Mortgage Rates React to the SOE
Do Rates Go Back to 3/9/20 All Time Lows?
Does a Fed Funds Rate Emergency Cut Help?
How to Recover from a Rough Week

State of Emergency – What is It?

Before contemplating it’s impact, understanding a State of Emergency is crucial. At its most basic level a State of Emergency opens doors and empowers the government to act on a grander stage in a more unfettered manner. However, it does not mean that everyone’s life is in immediate danger.

Declaring a State of Emergency allows the government to act in unique ways to solve an exceptional problem – including allowing the dumping of infectious medical waste in the ocean – I’m not making this up!

Learn more about what a President can and cannot do under an SOE

Depending on which law resource you read, a State of Emergency gives the President powers vested in 100 to 125 laws. These laws state “in the case of a National Emergency the President can do x”.

How Mortgage Rates React to the SOE

Today marked the 60th State of Emergency declared by a sitting President in United States history. As you may know, financial markets tend to react to this kind of thing and today was no exception.

To set the foundation it’s important to know how mortgages rates work. In short, mortgage rates fluctuate with the action and reaction of an open financial market. In fact, movement in mortgage rates often rivals the temperamental stock market. In fact, the stock and mortgage backed security (bond) market are interrelated. Furthermore, just as fear and uncertainty move stocks, they can also drive mortgage rates while driving consumers crazy.

Considering the above, this weeks interest rate volatility seems logical based on the Cornovirus footprint expanding. For example, mortgage rates hit historical lows Monday March 9, 2020. As the NBA suspended it’s season and Disneyland closed the next 4 days erased new lows and pushed mortgage rates back up. Important reality check – Mortgage rates remain at very attractive/low levels.

In short, as virus news spread the markets shook with uncertainty. It stands to reason that uncertainty‘s polar opposite – certainty – will pave a return path to normalcy.

Will Mortgage Rates Fall Again?

Will we return to the ultra mega low rates of this past Monday? Maybe – but that’s as tough a question to answer today as on any non-coronavirus toned day of the year. Actually, it’s even tougher to answer right now. I advise that anyone even lightly flirting with refinancing or buying a home to apply and get into position to lock your rate. As the past 2 weeks have proven, rates can rise and fall and only those who are positioned properly can strike while the iron’s hot.

Ultimately, when markets jet in one direction “too” quickly they tend to rebound. Fear typically creates rapid movement. Fear also typically subsides at some point. That subsidence is when markets regain footing. In other words, I expect interest rates to come back down.

However, it’s critical to know what “rates coming back down” really means. It means rate should settle down from their current higher levels. Current levels are higher than 5 days ago. Do rates come back to Monday 03/09/20 levels and then dive deeper than that? Time will tell. First rates need to come back down to last weeks levels.

How Would a Fed Emergency Cut Play Out?

While a Fed Rate cut is never a direct line to lower mortgage rates, many are taking solace in the whispers of another emergency Fed Cut next week. While the talk and execution of another cut will sound and feel safe, ultimately the solution lies elsewhere.

After-all, the fear and uncertainty behind mortgage rates going up and stocks falling is different this time. Its our concern over our family’s health, what schools and businesses will shut down and who has to stay home without a paycheck due to a work closure or their child’s school closure.

All of these concerns logically tie to the stock sell off this week. None of them are cured by a Fed Funds Rate reduction. An emergency Fed Cut feels optical. It supports the administrative direction. Not a horrible thing. Just not a pound for pound influence on mortgage rates.

Reversing Course After a Rough Week

The things I believe renew market strength and confidence and that circle us closer to Monday’s ultra low mortgage rates are:

A firm determination of the viruses Scope in the US (better testing will help with this)
Plan to limit the spread of the virus (limiting large events etc.. will help with this)
Streamlined health care treatment plans (freeing up resources will help with this)
Financial backstopping for those impacted (deferring student loan interest – in part – helps with this)

In fact, look at stocks and mortgage rates after the Presidential address. You’ll see both improved into the bell. In fact, the stock market just had it’s best day since 2008. This is a microcosm of what will slide the rate scale back toward pre-March 10, 2020 levels.

Lastly, the market observing a swift and measurable plan of attack on the virus would go a long toward picking up the pieces of a financial week that resembled a Jenga stack after a bad play. For now stay tuned!

The post Mortgage Rates & the State of Emergency appeared first on Arizona Mortgage Lender | The HOUSE Team.

Double Fed Cut & Mortgage Rates | Coronavirus Influence

Jeremy House — Mon, 16 Mar 2020 05:09:48 +0000

The Feds 2nd March 2020 Rate Cut is proactive economic support as the Coronavirus impact expands. While mortgage rates may drop, the Fed Funds Rate is not why. Smart move is – be ready for a mortgage rate improvement.

Different of Rates React to the Same Thing

The Fed voted on a 2nd March 2020 Fed Funds Rate cut on Sunday March 15th. Their goal – plug future holes poked in the US economy by the Coronavirus.

Apply for a Home Loan Now
Team@JeremyHouse.com
602.435.2149

A second set of rates often falling during economic uncertainty are Fixed Mortgage Rates. Mortgage rates move with mortgage bond pricing. Bond pricing often improves when Wall Street perceives economic slippage. This then causes a drop in mortgage rates.

Ultimately, the Fed Funds Rate and Mortgage Rates both can fall for the same core reason – economic worries. However, the movement is independent:

Fed Funds Rate Movement: Group of elected officials vote to move this rate. The same group must vote again for further movement.
Fixed Mortgage Rate Movement: These rates move constantly due to the dynamics on Wall Street.

Ultimately and technically, neither rate moves the other. However, sometimes technicality takes a back seat to reality. Especially when cheaper housing payments are possibly in the balance.

Apply for a Home Loan Now
Team@JeremyHouse.com
602.435.2149

2 Ways to the Same Place

Theory is important. However, reality is important too. While the vehicle driving mortgage rates lower is different from that which carries the Fed Funds Rate further south, if both move low and you can buy or refinance at a lower rate – does theory matter?

Since these 2 rates have been seen running as a 3 legged race team, preparedness to pounce matters most. What’s the worst that getting positioned now can do? Maybe we get surprised if the Fed Funds Rate and Mortgage rates go in different directions. This has happened more before and is possible. But why risk missing that window of historical low rates when there is no down side to being ready?

However, the ready to pounce group stands a chance the same thing pushing the Fed Rate down also knocks mortgage rates a few ticks lower. After-all, despite having no direct connection – both fixed mortgage rates and the Fed Funds rate tend to drop when economic concern runs wild.

Apply for a Home Loan Now
Team@JeremyHouse.com
602.435.2149

The post Double Fed Cut & Mortgage Rates | Coronavirus Influence appeared first on Arizona Mortgage Lender | The HOUSE Team.

Appraisal Flexibility During COVID-19

Jeremy House — Tue, 24 Mar 2020 01:32:11 +0000

Appraisal report exceptions are now in effect to help facilitate residential real estate transactions. The temporary rules protect appraisers and homeowners from the risks of COVID-19.

COVID-19 Appraisal Safety

Typically, a home loan transaction allows an appraisal waiver or requires a full interior / exterior appraisal. For the latter, an appraiser visits the property inspecting it inside and out. In order to stem the COVID-19 spread, Conventional loan appraisal rules temporarily eased in light of the virus.

During the COVID-19 outbreak 2 alternate appraisal reports for Conventional home loans now exist. Both reports may replace the standard full interior / exterior appraisal report. Neither reports require the appraiser inspect the home’s interior.

2 Appraisal Report Options During COVID-19

Conventional loans may use either a Desktop Appraisal or Drive By Appraisal when a Full Interior / Exterior Appraisal is not an option. In other words, if an appraiser or homeowner do not want to risk exposure to COVID-19 due to an interior home inspection the lender may one of the substitute reports below.

1. Desktop Appraisals

A Desktop Appraisal is allowed for purchases using Conventional financing. Desktop Appraisal reports include the same data full appraisal reports do. However, appraisers do not inspect the subject property nor do they view the exterior in person. Instead, appraisers use the resources below to determine property value:

Public Records
MLS data
Other 3rd Party Date

2. Exterior Appraisals

Exterior (or “Drive By”) Appraisals are allowed temporarily for both purchases & rate and term refinances using Conventional financing. Drive By appraisals contain the same information as full appraisal reports. However, on Drive By reports appraisers only visually inspect the subject property’s exterior. No physical interior inspection occurs. In addition, the resources below help appraisers determine property value:

Public Records
MLS data
Other 3rd Party Data
Observations Made During Drive By

Values From Reports May Vary

While the temporary alternate appraisal reports grant flexibility during Social Distancing, the home values on the reports may vary. Most notably, custom homes and homes with unique upgrades may not obtain the desired value as a result of appraiser’s not inspecting the home.

Consult with your Real Estate Agent for more. In some cases a full interior / exterior appraisal would better capture a home’s full value.

The post Appraisal Flexibility During COVID-19 appeared first on Arizona Mortgage Lender | The HOUSE Team.

Best Down Payment on a Home Purchase

Jeremy House — Tue, 26 May 2020 05:08:01 +0000

Choosing the right down payment when purchasing a home is a big decision. Additionally, down payment strategy can impact your overall net worth and financial future for years to come.

Down Payment Options

Unless you pay cash, the mortgage you use to finance your home requires a minimum down payment. For example:

FHA mortgages require 3.5% down payment
VA mortgages require 0% down payment
Conventional requires as low as 3% down payment

Deciding whether to put the minimum down payment or more down on a home purchase is very important. In fact, the decision relates to several factors that differ from person to person.

How do Different Down Payments Impact a Home-buyer?

First, toggling your down payment up or down impacts your monthly mortgage payment. However, payment is just one of many other areas that feel a ripple effect resulting from your down payment decision.

Increasing or decreasing your home purchase down payment changes a wide variety of significant factors. Factors that will impact your finances now and into the future. For example, different down payment levels may cause changes in your:

Interest rate
Mortgage insurance costs
Other investment opportunities

Each of the above should be considered when deciding what down payment is best for you. Both the short term and long term financial plans need to integrate with your final decision on what down payment you make when purchasing a home.

No one size fits all plan exists regarding down payment.

Interest Rate & Down Payment

In general, a relationship between down payment amount and the interest rate you get on your new home loan exists. While not always the case, a smaller down payment typically results in a higher interest rate.

However, there are scenarios where the inverse is true. Ultimately, this dynamic depends upon your qualification along with the loan program(s) you consider.

Mortgage Insurance & Down Payment

While each loan type addresses mortgage insurance differently, one thing is true – lower down payments result in higher mortgage insurance costs. Mortgage insurance depends on more than just down payment. For example, in some cases the higher your credit score the lower your mortgage insurance.

However, mortgage insurance can be part of an overall financial strategy. In other words, it may benefit you to put less money down and pay mortgage insurance while keeping your saved money invested elsewhere.

Other Investments & Down Payment

Each $1.00 over the minimum down payment requirement that a buyer puts down on a new home may equal $1.00 pulled from an investment (ex: 401k account). Similarly, that same extra $1.0 could represent $1.00 that could have been invested elsewhere.

In either case, looking at the big picture is key. Integrating your home purchase, down payment and overall financial plan helps make sure you choose the down payment best suited for your goals.

The post Best Down Payment on a Home Purchase appeared first on Arizona Mortgage Lender | The HOUSE Team.