Phil Grossfield's Blog

A LITTLE EXTRA…

Purchase Priority; Present Moments; Bernanke Speaks

presentmomentMy Schedule…and A Little Extra I am taking advantage of the present moments.  Goodbye mon frère…today my best friend from Minneapolis flies back home to the frozen tundra.  While he was here I’ve gained 10 pounds and might need to have my liver checked out, but that’s the price one pays to be reunited with family.  My Mom and Dad arrive on Thursday and I am planning on taking some time off while they are here.  They are staying for 11 days over 2 weekends so that’s a lot of time. Nonetheless, while they visit I have decided to spend as much quality time with them as possible.  Therefore, you may see my out-of-office message over the next couple weeks…in it will be contact information for coverage in my absence.  I know you understand…at any age its true, but even more so as we get older…we must take advantage of the present moments.

My Schedule:  I have an appointment today from 9-11a and will be available the remainder of the day.

My Market Watch:   Interbank continues to be aggressive with rates…we are on the top of the list.  When Interbank is this aggressive Capital Markets tends to be a little trigger happy meaning that even slight fluctuations in the stock/bond markets can prompt a mid-day re-price.  Today Fed Chairman Ben Bernanke spoke to the Senate and said he believed the risks of Quantitative Easing outweighed the risks.  This is good for bonds but the stock market will like this as well.  How bonds and stocks react to the news is still a question at this point in the day.  Bernanke isn’t done either so there is definitely a possibility for continued volatility. According to the Mortgage Market Guide, there is resistance to increased bond prices and with yesterday’s gains they are recommending locking rather than floating.  I must agree…I think there is more downside than there is upside at this point.   My Disclaimer

My Fun Stuff:   Embrace Life  |  Bionic Hands Video  |  Bionic Eyes Video  |||  All My Fun Stuff

My Important Reminders:

  • New Fannie Definition for Rate & Term/Cashout:
    • The definition of a limited cash out loan has been amended.  If you include the payment of real estate taxes in the loan amount, and you are not escrowing/impounding (meaning you are waiving impounds), then Fannie will consider the transaction cashout. HOWEVER, California does not allow a lender to require an escrow account, so, the rule does not apply in CA…how do you like them apples?!  Beautiful, eh?!  But if the real estate taxes are more than 60 days delinquent, then even in CA Fannie considers it a cashout transaction….kind of the exception to the exception.
    • None of this is applicable to a HARP/DU Refi Plus transaction.
    • So, to clarify the beautiful rule in California, we are not affected by this rule change, not even a tiny little bit, as long the payment of real estate taxes is not more than 60 days delinquent, got it?
  • PURCHASE PRIORITY SENIOR UW TEAM.  Effective immediately, all purchases will be assigned to a Senior Underwriter team who will exclusively underwrite, condition, and clear conditions.  This is contrary to our normal queue-strategy for refinances using junior underwriters.  Interbank is doing this at the suggestion of the Account Executives who voiced their opinion that we need a more timely, consistent and predictable process for purchase transactions to give our clientele continued confidence to send them in.
  • APPOINTMENTS.  I am setting up appointments for the next several weeks…please let me know if you’re interested in an office visit.  I will be sharing my insight on how to get new business in 2013 and what to prepare for as the year progresses….
  • STILL WANTED.  We are looking for Senior Underwriters, Loan Coordinators, Junior UWs, Doc Specialists and Funders. Referrals are greatly appreciated.  Remote positions are available.

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