Connecticut Financing Update and Today's Mortgage Rates February 3, 2012

Government Initiatives Update: The HARP 2.0 initiative was aimed at helping agency homeowners refinance. Then came HAMP 2.0 (this past Friday), aimed at encourageing more modifications. Yesterday Obama unveiled a separate refinancing program targeted at non-agency homeowners (making refinancing easier for mortgages not backed by Fannie or Freddie). Finally, in the coming days/weeks we could get a final foreclosure settlement as well as a plan to sell foreclosed homes in bulk. In aggregate, all these policy moves could help at the margin but most believe they fall short of some grand Fannie/Freddie automatic refinance plan for which some investors had hoped.

 

There are many questions about how 2^nd mortgages fit into refinancing plans, and how institutions should handle the potential losses on the write-downs. This week the Board of Governors of the Fed, the FDIC, the National Credit Union Administration, and the OCC "issued supervisory guidance" on allowance for loan and lease losses (ALLL) estimation practices associated with loans and lines of credit secured by junior liens on one- to four-family residential properties.

This week MetLife Mortgage closed it's doors, loans in process must fund by April 30, 2012 and Citi Bank has just ended its wholesale division.   Of the major, top 4 or 5 investors who had wholesale divisions a few years ago, or bought loans from correspondents who dealt with brokers, who is left? Wells Fargo. Bank of American is gone, Citi is now gone, GMAC/Ally has scaled back, Chase won't buy TPO business. SunTrust is going through a massive retooling. That being said, there are plenty of investors and lenders willing to step into this arena, and already have.

Today's Mortgage Rates

30 Year Fixed 3.875% - 0 points for the rate

15 Year Fixed 3.125%

10 Year Fixed 2.875

5/1 ARM 2.875%

7/1 ARM 3.125

 

FHA

30 Year Fixed 3.50 %

Jennifer Buchanan,  Certified Mortgage Planning Specialist  is a seasoned veteran of the Mortgage, Banking and Broker Industry and specializes in mortgage loans throughout Fairfield County, Connecticut.
   Her attention to detail is unsurpassed, and her understanding of the marketplace makes it easy to find the right loan to fit her clients specific needs .  Jennifer's local processing and closing team are also known for their exemplary service.
   Understanding that the vast majority of mortgage brokers never discuss the long or short term  financial needs or goals with their clients, she set herself apart from the rest by obtaining the coveted CMPS  designation. (Certified Mortgage Planning Specialist)
    She is a member of the National Association of Responsible Loan Officers, and her commitment to ethics, understanding of the marketplace, and business acumen have earned her the respect of her peers and clients alike.

 

Jennifer Buchanan

jhvb51@aol.com