Have A Roommate This Recession? You’re Not Alone. Rates End Week Better On Greece Trouble.

Have A Roommate This Recession? You’re Not Alone
The MBAA continues to churn out reports. The latest shows that in the four years (2005 through 2008) the US population increased by 3.4 million but that the number of households declined by 1.2 million. And if the number of households (demand) goes down, prices must drop to absorb the supply of apartments and single family homes on the market. The trend of individuals joining households that were already formed was expected to continue into 2009, or until the job market stabilizes. (See definition of boomerang generation). This recession has also caused a dramatic increase, almost five-fold, in the rates of overcrowding (defined as having more than one person per room in the household), indicating that many families are doubling up in response to the downturn. I asked the five unemployed guys that I share a bedroom with if this was true, and they didn’t agree. They only wanted to know why “phonics” is not spelled the way it sounds.

Mortgage With Job Loss Protection
Flagstar, in a sign of the times, has paired up with MI company Genworth to offer a low-down payment mortgage benefit designed to cover a home buyer’s mortgage payments if he or she becomes involuntarily unemployed. “Job Loss Protection” covers a borrower’s mortgage payment (principal, interest, taxes and insurance) of up to $2,000 a month for up to six months during their benefit period, with a maximum of three monthly payments per job-loss occurrence in the event of involuntary unemployment. The benefits are paid directly to the mortgage company just as if the borrower had made the payment, although the vesting period is 60 days after closing, and payments begin 30 days from the date of involuntary unemployment. Coverage stays in place for up to three years after the loan closes and the mortgage insurance remains in place.

Rates Slightly Better: Greece Troubles Drive Investors Into Bonds
Yesterday’s 30-yr bond auction did not go over so well. For those keeping score at home, the $13 billion 30-yr bond was the second “re-opening” of the February 2040 issue, meaning that the bond actually matures in 29 years and 10 months. Given the continued problems in Greece, we were still seeing some flight to quality, at least in the 3- and 10-yr instruments, and in mortgage bonds—which pushes rates down. Recent 30-yr auctions have seen indirect bidding (a rough proxy for foreign interest) fall from over 40% to the mid-20% range, and direct bids increase from less than 10% to the mid-2-% range. But the bidding was sloppy, and prices dropped and rates edged higher. With no news today, the 10-yr is sitting at 3.88% and mortgages are maybe a shade better.

Can A Loan Estimate Be Made Without A Property Address?
“Q: Can a loan originator provide a GFE without a property address?

A: Yes, a loan originator can determine that a property address is not one of the required pieces of information that the loan originator needs in order to issue a GFE. It is important to note that a loan originator must consistently apply its policy on the information it deems necessary to issue a GFE, and the RESPA rule requires a loan originator to issue a GFE whenever it receives information sufficient to complete an application for a GFE.” For this, and 62 more pages of Frequently Asked Questions about HUD and RESPA and GFE, including things like font size.

Good Site For Mortgage Stats
I am, from time to time, asked to provide production statistics for agents giving presentations, or folks looking to see who the big residential or commercial lenders are. One good sight provided by Cindy with RPM Mortgage is

Daily Humor
Yesterday I was at my local COSTCO buying a large bag of Purina dog chow for my loyal pet, Sweetie the Wonder Dog and was in the checkout line when woman behind me asked if I had a dog.

What did she think I had, an elephant? So since I’m retired and have little to do, on impulse I told her that no, I didn’t have a dog, I was starting the Purina Diet again. I added that I probably shouldn’t, because I ended up in the hospital last time, but that I’d lost 50 pounds before I awakened in an intensive care ward with tubes coming out of most of my orifices and IVs in both arms.

I told her that it was essentially a perfect diet and that the way that it works is to load your pants pockets with Purina nuggets and simply eat one or two every time you feel hungry. The food is nutritionally complete so it works well and I was going to try it again. (I have to mention here that practically everyone in line was now enthralled with my story.)
Horrified, she asked if I ended up in intensive care because the dog food poisoned me.

I told her no, I stepped off a curb to sniff an Irish Setter’s rump and a car hit us both.

Costco won’t let me shop there anymore.