Phil Grossfield's Blog

A LITTLE EXTRA…

Economic Outlook, HARP, Day Turns Into Night

BONDS opened strong this morning but has lost ground.  Rates came out late this morning so the early movement is likely already priced in.  I’ll keep watch throughout the day….

My Schedule…and a little extra:   I apologize for the boring Extra lately, but all my attention has been on this new HARP 2.0 program.  I get a lot of calls and emails about it so I just want to make sure everyone is comfortable with it.  As you are probably aware by now, our HARP program was altered yesterday…we are now limited to 105% LTV and 110% CLTV.  Unfortunately, we felt that with other players changing their guidelines, it wouldn’t be prudent to continue to offer unlimited.  Of course, this could change back but for now….  Tomorrow I’ll write something a little more fun.   Mystery Lyric:  Shadows grow so long before my eyes, And they’re moving…across the page — Suddenly the day turns into night, Far away…from the city — But don’t…hesitate…’cuz your love…won’t wait — Answer.   My Market Watch:  Jobless Claims reported the lowest number in 4 months.  Think about it…“Jobless Claims” is a report that specifies people without jobs…if that number is lower, then it means the economy is better.  Remember, when traders feel the economy is improving, they will throw their money into the stock market.  If they are putting money into stocks, then they are not putting money into bonds, and, they are probably selling off bonds to get money to put into stocks. This analysis means rates get worse.  The trend lately is not good for rates…for things to turn around, something semi-dramatic needs to happen.  If my sister asked me what to do, I’d tell her that I’d be ready to lock on a moment’s notice.  Disclaimer:  I am not a specialist or expert…please make your own decisions based on your own research when deciding to lock or float.   My Schedule:  I’m dropping my parents off here, then finding a coffee shop to work in, then talking them there, and then finding a coffee shop to work in…you get me? 

Pricing Engine (user ID & password required)  Rate Sheet for Today   Product Matrix 


HARP 2.0 = DU REFI PLUS – UPDATED

Pricing

  • Impounds are required…remember to select “YES” when using the Pricing Engine
  • Adjustments are minimal…Adjustment Caps limit the amount of hits…it’s a beautiful thing, but always include escrows waiver, loan size, and extensions adjustments, and, Adjustments are cumulative.  Use the Pricing Engine for an exact price.

Guidelines

Notes

  • Appraisal Waivers accepted with $75 waiver fee
  • Net Tangible Benefit required: 
    • Reduced P&I, or ARM to Fixed, or Rate Reduction, or Shorter Term
  • Loans that currently require MI are not eligible
  • Original loan being repaid must have been delivered to FNMA on or before 5/31/09

Our Lender Fee is only $699 “All-In”

  • There is no flood fee, tax fee, etc.
  • Appraisal Waivers accepted with $75 waiver fee
  • Appraisal Fees may be reimbursed at closing. 
  • Processing Fees may be charged to the borrower on borrower-paid transactions.  For lender-paid transactions, outsourced contract processing (NMLS Licensed) is considered a 3rd-Party Fee and therefore may be covered by YSP overage/excess rebate.
  • YSP overage (excess rebate) may be used towards 3rd-Party Fees, Contract Processing (NMLS licensed), Prepaid Interest, Property Taxes, Hazard, and max $500 towards principal reduction.

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