Phil Grossfield's Blog


IMPORTANT – Impact of Shut Down

govshutShutdown Impact – 4506 Transcript Delays.  First, my sarcastic post yesterday received a flurry of responses, mostly supportive, a few confused about my point. My main point was the Republican Party is completely out of line and it infuriates me since it has already lost two elections and now promises to alienate even more American voters. Simply put, Obamacare is already a law. Our elected officials’ job at this point is to provide a budget, not fight an already existing law. We cannot shut the government down at this point…it’s inappropriate and irresponsible both to our economy and to the Republican Party itself. I think the Republican Party is putting itself in even greater danger by doing so. But enough about that.

4506 Delay Because of Shutdown.  A direct impact of the shutdown is Interbank’s ability to receive ordered transcripts from the IRS. From what I understand, we aren’t going to get them. So, Interbank will do what it can to move transcript conditions PTF, and, we might even fund without the transcripts if the loan profile warrants it…but no promises. Everything will be case-to-case. I can tell you that any Jumbo loans, loans with DTI >40% and self-employed loans will probably not fund without transcripts.

New 4Q Comp Plans. If your comp plan changed for the 4th quarter it is applicable today. All loans that are submitted today, meaning you are uploading the submission package to Interbank, must reflect your new comp plan. When the loan was locked is irrelevant. Let me know if you have questions.

govtshutdownMy Market Watch:  Bonds Down – Government Shuts Down – Arm & Fixed Pricing Unaffected Thus Far.  The  30-year Fannie Mae bond is trading lower about -15bps. Being a price leader can sometimes make Capital Markets trigger happy on mi-day reprices. If the bond ticks down another 5-10bps we could see a reprice for the worse.

Jobs Report Delayed?  The Jobs Report was scheduled for Friday but now it might be delayed.

Fed Meeting on Monetary Policy – QE Tapering Delayed?  Similarly, the Fed meeting this month to discuss QE tapering might also be affected…it might also get delayed. This is the one good thing about the shut down since any discussion of QE tapering would likely result in increased rates.


Wholesale: Non-Conforming Matrix & Guidelines
Correspondent: Non-Conforming Matrix & Guidelines

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