As mortgage regulations become increasingly more convoluted, just remember that these are the same lawmakers that think the internet is a series of tubes.

Do you tend to buy stocks or real estate when the market is improving? And sell when the market is worsening? If so, join the crowd. This action, of course, creates its own “feedback loop”, also called “price-to-price feedback”. When the feedback stops, markets often turn around, or a speculative bubble bursts. Astute traders include [...]

Rates on conforming loans up to $417k and super-conforming loans up to $729k continue to trade up and down as much as .5% per week but as of today we’re net even on lows we touched 10 days ago. Rates on Jumbos from $729k to $3.5m are competitive for borrowers with strong down payments, income [...]

As of May 1, a new regulation prohibits loan officers from talking to home appraisers. Previously, this was one of the first steps in a loan agent’s client advisory process. The new regulation is called the Home Valuation Code of Conduct (HVCC) and was mandated by Fannie Mae and Freddie Mac, which both are regulated [...]

The National Association of Mortgage Brokers says new appraisal rules will cost consumers at least $2.8 billion in extra fees created by long delays (extended lock-in fees) and higher appraisal costs. New appraisal rules, called the Home Valuation Code of Conduct (HVCC), prevent loan originators from talking to appraisers. Here’s NAMB’s full memo on the [...]

After last week’s proposal by a democratic representative of a moratorium on the new appraisal rules imposed on residential mortgage lenders, this week republican congressman is on board. More on this below from San Francisco Chronicle.

Rates on conforming loans up to $417k and super-conforming loans up to $729k have been on a wild ride in the last 7 weeks, spiking up .875% then regaining .625% of that in the past three weeks, for a net increase of .25%. Inflation and bond market oversupply concerns lead the run up, then worse [...]

Ah, inflation – at all levels. During the life of a 30-yr fixed-rate mortgage, there are bound to be periods of inflation. It is debatable, in the market of mortgages, whether or not borrowers and lenders take inflation into account. Certainly ARM loans do to some extent. But bond prices (aside from TIP securities, some [...]

Manhattan Condo Prices When I graduated from Cal with a fresh business degree, I tried to get an apartment in Manhattan. They wouldn’t let me in. I knew it would be expensive, but I just assumed that for $2,000 a month, the toilet would be inside the apartment. That has changed a little, since in [...]

Home Appraisal Issues I overheard the kids last night talking about doing chores. My daughter said, “If we stop dusting, we could use the coffee table for a message board!” Speaking of message boards, I have seen a few analysts state that they believe property appraisals are keeping a lid on values. More precisely, when [...]