Almost anytime you see stocks take a dive, you can count on fixed rate mortgages moving lower, as seen today. But at the levels we’re at, today rates are just bouncing of a floor and there is almost no where to go but up.
The following information was reported to us by one of our marketing monitoring services:
“The Financial Regulation Bill passed the Senate by a 60/39 vote and is on its way to the President for signing. This 2000 + page bill does little to address the core reasons for the financial collapse. Fannie Mae and Freddie Mac are completely left out of this bill and the credit rating agencies, which played a major roll in the collapse, are never mentioned.
This bill has less to do with fixing the country’s financial woes and more to do with pushing the political agendas of its authors Chris Dodd and Barney Frank.
Alan Greenspan was recently quoted in a CNBC interview regarding the Financial Regulation Bill….. was that this was the first time the Fed was not asked to write this regulation, and that it was basically written by junior staffers that have no clue about the complexities of these financial entities that they are trying to regulate…Greenspan said there are unintended consequences in every page of this bill. He said that any banker dealing with Washington is very familiar with what is known as the 25 Cubed Rule….basically that the government is run by 25 year old staffers that are making $25,000 a year and work 25 hours a day…..and a majority of them have never even financed a car…let alone a home, yet we are handing our regulatory oversight to these 25 year old staffers.”
Doesn’t this make your head hurt!
On another note, I am hearing endless stories of lenders telling buyers and Real Estate brokers, “no problem”…they can do anything, even the impossible. Now more then ever, you need to work with experienced loan officers. A low ball rate does not certify experience. There are many desperate loan officers out there that will say anything and quote a give away rate just to get the deal. With this group of people, you could spend a month and have the deal “blow up” after 30 days.
I ask a lot of questions and investigate possible pitfalls. Sometimes borrowers leave out bits of information that could cause problems later on but we do our best to prevent failure. Of course, the final decision is up to the underwriter.
Call or e mail with questions.
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