Phil Grossfield's Blog


45-Day Locks Recommended

My Schedule…and a Little Extra:   45-days locks…I highly recommend them, even for purchases for the time being.  Although we are staffed well for the large pipeline, my concern is if rates move up, even a little.  In that case, the free extensions you have been happily receiving will discontinue…they will no longer be handed out liberally by the lock desk and you may find yourself in a jam.  Interbank’s lock desk has been extremely gracious, in fact, downright charitable in providing for free extensions.  But in a down-market, that generosity is and should be replaced with financial responsibility.  I strongly advise 45 day locks to protect yourselves from the cost of a 0.125 per week lock extension and possible delays when funding is on the horizon.  Many of my brokers are even locking at 60-days to ensure there are no issues later.  Let me know if you have any questions, okay?

My Mystery Lyric:  Oh na-na, what’s my name? Oh na-na, what’s my name? Oh na-na, what’s my name? what’s my name? what’s my name?  — Answer

My Market Watch:  Today the markets are confusing.  I’ve read a few different things and where things are headed in the short run is really guess work.  I checked the 30-year bond which a direct indicator of what is happening to the bond market and it was down 16bps at one point this morning and now it is par.  So, who knows what’s going to happen today?  Capital Markets usually won’t pull the trigger until bonds fall to about -20bps but I’d keep an eye on things…I will be around all day and doing just that.  But do your own research too and let me know if you see anything….  Disclaimer

My Schedule:  Working on some funding issues this morning but I’ll be behind the computer all day until about 4p, and then off….

For a Clean Underwriting Decision Resulting in Happiness and Adulation – Read Me

For a Long List of Conditions, a Huge Hassle, and Massive Frustration – Ignore Me

Net Tangible Benefit:  0.250%:  in order to refinance, a borrower’s rate must improve by 0.250% to meet the NTB test.  If you have a rate of 3.99% and the refi would result in a rate improvement of 0.240%, that is also acceptable.  Of course, going from an ARM to a fixed rate is an acceptable NTB without the 0.250%…similar types of refinances would be okay.  Let me know if you have any questions, okay?

New Procedures From Me Available Here:  MY PROCEDURES

Purchases:      3 days from Submission (after registration)…prioritized throughout the process.
Refinances:     6 days from Submission (after registration)…45-day locks still recommended.
Conditions:     48 hours from last uploaded document.

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