Operations; Forgiven Debt; Cookies Everywhere
December 27, 2012
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My Schedule…and A Little Extra: The difficult thing about working out during the holidays is having a variety and abundance of cookies and cake and other sweet lovelies everywhere…EVERYWHERE! Yesterday I worked out but the damn cookies are everywhere. Well, I guess it’s better than eating the cookies and not working out, right? After the holidays are over its back to moderation. Well, using my definition of moderation I guess it’s going to be a little more drastic than that.
My Operations Update: Operations is overwhelmed. I know it’s not your concern…you just need to get what you need to get done. But you should know that the holidays have put a stranglehold on Operations. The staff is coming in early and staying late. They are cranking out a record number of doc sets and funding figures. Operations is already overbooked on docs and funding capacity for the remainder of the year. Purchases are getting lots of love, particularly shortsale purchases…refis are taking a back seat. I’m not asking you to back off because I understand your position, but I am asking for your understanding. If you need help, bring it my way.
My Market Watch: Once again Bonds are holding firm and opened with the same rates as yesterday and Friday…but once again I focus my attention on the Fiscal Cliff which has been and will continue to dominate the headlines and the market this week. I have been hearing all sorts of things on the negotiations…too many things to list here. Like you I’m just waiting to hear what they come up with. One thing I thought was interesting is the concern over forgiven debt tax treatment for those doing a foreclosure or shortsale. For example, if you shortsale today the remaining debt the bank forgives is not considered income and therefore there is no federal tax on that forgiven debt. On Tuesday that reprieve ends, unless they include a provision in the Fiscal Cliff plan. That particular provision will affect a lot of homeowners and our industry. Again, when a Fiscal Cliff plan is put into place, or even the news that a plan will be put in place, expect the bond market to suffer as stocks jump on the news. When that happens it means traders are pulling money out of the bond market to invest in stocks instead. To what extent I don’t know but when bonds are sold off our rates/prices worsen. Call your clients and discuss this with them.
Also, negative statements from the hill that no Fiscal Cliff plan will be passed will push stocks down and the bond market will improve as a result…but this is short-term. Remember what I’ve been saying…a Fiscal Cliff plan when passed will improve the stock market as traders pull money out of bonds to put into stocks. Conversely, news that impedes the Fiscal Cliff plan will push stocks lower as traders invest in bonds and when that happens rates/pricing typically improve. Be still my beating heart…if future news that a Fiscal Cliff plan is reached, or it is close, then bonds will tank…it’s going to be a roller coaster. If you want to discuss with me, email or call…. My Disclaimer
My Schedule: Available all day.