Michael Jackson's death
yesterday was quite a shock to the mortgage world,
so much so that I will not make any jokes at his expense at the opening
of the
daily commentary. I think that it would be more appropriate to take the
high
road, and only put one or two at the end of the commentary.
Which investor will take the home buyer credit? Taylor Bean Whitaker,
which I believe does not hold the mortgage on the Neverland Ranch, has
sent
this note out to the clients about the first-time home buyer credit:
"HUD
recently released Mortgagee Letter 2009-15 regarding the use of the
First-Time
Home buyer Tax Credit. The program provides up to $8000 tax credit to
qualified first-time home buyers. Although the program allows certain
entities
covered by Section 528 of the National Housing Act to use their current
authority to offer tax credit advances with second liens, TB&W will
not
provide the second lien. The Second Lien must be provided by an FHA
approved non-profit agency or Federal, State, or Local government
agency or
instrumentality. Use and approval of the first-time home buyer tax
credit is
the responsibility of the entity providing the secondary financing.
All
documentation must be submitted to the entity providing the secondary
financing. TB&W will only approve the use of the secondary
financing being provided by the approved entity. TB&W will begin to
accept
this type of secondary financing immediately."
I barely know where I am going
to eat lunch today. So how am I supposed
to “know” what my property is going to be worth in 10 years? And would
it make
a difference to me? This site rides to the rescue, and estimates what
your home
will be worth ten years from now: www.smartzip.com.
Unfortunately it only
gives estimates in California and Florida. (I love sites like this,
which of
course either didn’t exist or have any inkling a few years ago about
what was
going to happen to values in the last 24 months.)
Everyone in the mortgage
business knows that the Fed has been in buying
securities backed by mortgages for several months. But what exactly
does the
Fed own? Their 15-yr securities, which include mortgage rates
ranging from
4.75%-6.125%, only amount to about $725 million. On the 30-yr side, the
bulk of
their holdings (about $60 billion) are mortgages from 5.25%-5.625%. The
remainder, with many billions, ranges from 4.25% up to 7%
30-yr
fixed rate loans.
RMIC is implementing a
4506‐T
and tax return transcript policy. All MI applications
(whether salaried or self‐employed) “submitted on
or after September 1, 2009, a completed and signed Form 4506‐T is
required to be obtained from all
borrowers (where income is used for qualifying) covering at least the
most
recent year’s tax return. In addition, prior to closing, the tax return
transcript(s) for at least the most recent year’s tax return must be
obtained
from the IRS (or designee) and used to validate the income
documentation
provided by the borrower(s). If a loan with a mortgage insurance
application
date on or after September 1, 2009, is sent to RMIC for underwriting or
auditing purposes, the file submission must include the 4506‐T and the
transcript(s) from the IRS.”
We had a nice little improvement in rates yesterday (prices up, rates
down),
and a nice improvement in the stock market. (Folks who think that every
time
the stock market moves in one direction rates should move in the
opposite
direction are not always correct.) Today for news we have Personal
Income and
Consumption (in recent years popularly known as “spending”) at 5:30AM
PST,
along with the Michigan Consumer Sentiment Survey around 7AM PST. The
bond
market is relatively quiet ahead of this.
Far be it for me to post any "on the edge" jokes. I would never say
anything like, "How did Michael Jackson know it was time for bed? When
the
big hand was on the little hand." That would just be tasteless. It is
better to just point folks toward http://williambader.com/mj.html
Rob
(For archived
commentaries, check www.robchrisman.com,
or to subscribe/unsubscibe
write to
rchrisman@robchrisman.com)
