Monday, December 20, 2010
Tuesday, December 7, 2010
Monday, December 6, 2010
Tuesday, November 23, 2010
Monday, November 22, 2010
Monday, November 15, 2010
Monday, November 8, 2010
Monday, October 25, 2010
Sunday, October 17, 2010
Sunday, October 10, 2010
Friday, October 8, 2010
Record low mortgage rates!
Today the Labor Department reported that employers shed 95,000 workers in September and was a lot worse than anticipated. The Unemployment Rate remained at 9.6%. The report has helped to push Mortgage Bonds to record high levels.
Because this information gave a confusing picture with no clear outlook, the discussion over Quantitative Easing 2 (QE2) is heating up more than ever and there may be an announcement on QE at the next Fed meeting on November 3.
Could rates on a 30 year fixed rate drop below 4%?
Wow!!!
Because this information gave a confusing picture with no clear outlook, the discussion over Quantitative Easing 2 (QE2) is heating up more than ever and there may be an announcement on QE at the next Fed meeting on November 3.
Could rates on a 30 year fixed rate drop below 4%?
Wow!!!
Sunday, October 3, 2010
Sunday, September 26, 2010
Tuesday, September 21, 2010
Castle & Cooke Mortgage LLC in the news
CASTLE & COOKE MORTGAGE, LLC
IN THE NEWS
Castle & Cooke Mortgage, LLC was recently named one of Utah’s 50 fastest growing companies by Utah Business Magazine. Each year, this special edition of the magazine lists the top 50 companies “Fast 50” in order of growth over the past 5 years. Castle & Cooke Mortgage, LLC was awarded 3rd place. In addition, our company was one of the winners selected to have a feature article in the same issue. Please see article below.
ARTICLE FROM UTAH BUSINESS MAGAZINE -----
3. Castle & Cooke Mortgage Staying Committed
At a time when many organizations in the residential mortgage banking industry are struggling to survive, Castle & Cooke Mortgage, LLC is thriving. From 2008-2009 its revenue growth was 265 percent (making an overall, 16,133 percent revenue growth from its inception in 2005). While the national efficiency quotient average is 12:1, meaning every one person can feasibly close 12 loans, Castle & Cooke’s average is 57:1. The company’s astounding success has made Castle & Cooke industry experts, speaking at national conventions on its innovative system and ability to gain market share.
Matthew Pineda, the company’s president, says Castle & Cooke was able to gain a greater market share because of the company’s commitment to service. Its real-time paperless technology and staff (which is the exact same staff as in 2005—no layoffs or added employees) allows the company to streamline the mortgage lending process and guarantee that once a file comes into underwriting, it will fund within three days—something Pineda says no other company is able to do right now. The company smokes the 45-day industry average.
“Guaranteeing three day closings in our industry in this current market is unheard of.” Pineda says. “Our loan officers have taken that commitment to the street and grown their network and books of business with confidence. To have loan officers spreading the word of our guarantee and commitment to service in this challenging economy and handicapped mortgage industry has enabled us to gain market share.”
A few things positioned Castle & Cooke Mortgage for growth during times of trouble. It had full Eagle approval from the U.S. Department of Housing and Urban Development in order to close government insured loans, and it was practiced in doing traditional purchase money business and traditional lending.
“When the liquidity crisis hit the mortgage industry in August of 2007 and sub-prime, alt-A and niche loan programs evaporated, the industry was forced to turn back to its roots of agency and government eligible loans,“ says Pineda. “We were positioned perfectly because we had our Eagle and had always done those loans. When the market demanded traditional lending we were able to capitalize on the demand and we did not lose pace with the opportunity the market created.”
A higher demand from borrowers and fewer lending companies meant a challenge for Castle & Cooke Mortgage, as the company tried to keep up. But, Pineda says his company could not detour from its three day commitment to closings. “We leaned on our investor and banking relationships in order to accommodate our commitment to service. The Federal National Mortgage Association and U.S. Bank National Association were vital to our success and enabled us to overcome the capacity challenges that plagued the mortgage industry in 2009.”
As a fourth-year mortgage operation, the company passed $1 billion in 2009, and Pineda says controlled growth is its objective for the next two years. “Our goal is to break the $2 billion mark for funded volume. We are on pace and excited to be in mortgage banking.”
END OF ARTICLE -----
IN THE NEWS
Castle & Cooke Mortgage, LLC was recently named one of Utah’s 50 fastest growing companies by Utah Business Magazine. Each year, this special edition of the magazine lists the top 50 companies “Fast 50” in order of growth over the past 5 years. Castle & Cooke Mortgage, LLC was awarded 3rd place. In addition, our company was one of the winners selected to have a feature article in the same issue. Please see article below.
ARTICLE FROM UTAH BUSINESS MAGAZINE -----
3. Castle & Cooke Mortgage Staying Committed
At a time when many organizations in the residential mortgage banking industry are struggling to survive, Castle & Cooke Mortgage, LLC is thriving. From 2008-2009 its revenue growth was 265 percent (making an overall, 16,133 percent revenue growth from its inception in 2005). While the national efficiency quotient average is 12:1, meaning every one person can feasibly close 12 loans, Castle & Cooke’s average is 57:1. The company’s astounding success has made Castle & Cooke industry experts, speaking at national conventions on its innovative system and ability to gain market share.
Matthew Pineda, the company’s president, says Castle & Cooke was able to gain a greater market share because of the company’s commitment to service. Its real-time paperless technology and staff (which is the exact same staff as in 2005—no layoffs or added employees) allows the company to streamline the mortgage lending process and guarantee that once a file comes into underwriting, it will fund within three days—something Pineda says no other company is able to do right now. The company smokes the 45-day industry average.
“Guaranteeing three day closings in our industry in this current market is unheard of.” Pineda says. “Our loan officers have taken that commitment to the street and grown their network and books of business with confidence. To have loan officers spreading the word of our guarantee and commitment to service in this challenging economy and handicapped mortgage industry has enabled us to gain market share.”
A few things positioned Castle & Cooke Mortgage for growth during times of trouble. It had full Eagle approval from the U.S. Department of Housing and Urban Development in order to close government insured loans, and it was practiced in doing traditional purchase money business and traditional lending.
“When the liquidity crisis hit the mortgage industry in August of 2007 and sub-prime, alt-A and niche loan programs evaporated, the industry was forced to turn back to its roots of agency and government eligible loans,“ says Pineda. “We were positioned perfectly because we had our Eagle and had always done those loans. When the market demanded traditional lending we were able to capitalize on the demand and we did not lose pace with the opportunity the market created.”
A higher demand from borrowers and fewer lending companies meant a challenge for Castle & Cooke Mortgage, as the company tried to keep up. But, Pineda says his company could not detour from its three day commitment to closings. “We leaned on our investor and banking relationships in order to accommodate our commitment to service. The Federal National Mortgage Association and U.S. Bank National Association were vital to our success and enabled us to overcome the capacity challenges that plagued the mortgage industry in 2009.”
As a fourth-year mortgage operation, the company passed $1 billion in 2009, and Pineda says controlled growth is its objective for the next two years. “Our goal is to break the $2 billion mark for funded volume. We are on pace and excited to be in mortgage banking.”
END OF ARTICLE -----
Sunday, September 19, 2010
Tuesday, September 14, 2010
Sunday, September 12, 2010
Sunday, August 29, 2010
Sunday, August 22, 2010
Sunday, August 15, 2010
Monday, August 9, 2010
Wednesday, August 4, 2010
Thursday, July 22, 2010
Monday, July 19, 2010
Castle & Cooke Mortgage LLC Overview
Overview
Castle & Cooke, Inc. and Dole Food Company, Inc. are privately held companies owned by David H. Murdock, who also serves as chairman and chief executive officer of both companies since 1985. Castle & Cooke and Dole Food Company (formerly listed on the New York Stock Exchange), were acquired by Mr. Murdock in 2000 and 2003, respectively. The food-related businesses operate as Dole Food Company, and all other businesses operate as Castle & Cooke.
Mr. Murdock’s combined companies make up one of the largest privately-held companies in America, with approximately 63,000 employees operating in more than 90 countries around the world.
Among Castle & Cooke’s greatest assets are its plentiful land and real estate holdings, much of which can be traced back more than 150 years to when Samuel Northrup Castle and Amos Starr Cooke began their business partnership by operating a general store in Hawai’i. The spirit, vision, integrity and perseverance of these two men sparked the formation of a company that grew to global proportions over the years.
The company’s diversified businesses have operations in over 24 states and include the development and ownership of real estate, leasing of transportation equipment, manufacture of brick and building materials, oil and gas holdings, aviation services, and ownership of public warehouses. In Hawai’i the company also owns 98% of the 90,000 acre island of Lana’i and two award winning Four Seasons Hotels.
History
On June 2, 1851, Samuel Northrup Castle and Amos Starr Cooke began their humble business partnership by operating a general store. The entrepreneurial spirit and vision of the two founders of this company sparked the creation of a worldwide leader in the food, transportation and real estate industries.
To understand Castle & Cooke today, one needs to chronicle the business career and philosophy of its owner, David H. Murdock. A self-made man, he spent his formative years in the Midwest and commenced his business career as a builder in Arizona. Taking advantage of the post-war housing boom in Phoenix, he progressed from single-family residential to high-rise commercial real estate development and ownership and related services. When the Arizona real estate market collapsed in the sixties, he moved to California.
Headquartered in Los Angeles since 1968, Mr. Murdock’s businesses and investments have continually grown and prospered. Mr. Murdock, a creative thinker and innovative leader, is the first to credit his team for the success the company enjoys today. While still a builder of significant size, the company’s major growth can be attributed to the acquisition of publicly traded companies. The Murdock team has acquired many private companies and taken numerous publicly traded companies private, including FCA Industries, Pacific Holding Corporation, International Mining Corporation, Pato Consolidated Mining, Cannon Mills, Continental Group, Flexi-Van Leasing, Castle & Cooke, and Dole Food Company.
Mr. Murdock’s approach is to acquire undervalued assets, often in ordinary industries, retain knowledgeable management and find creative ways to operate and utilize assets more effectively.
He often uses the expression, “The impossible just takes a little longer.” The diversified group of companies operates autonomously, under specified guidelines, and management is encouraged to be entrepreneurial. His work ethic, integrity, curiosity, energy, belief in quality and desire to grow and improve, set the example for all to follow. Mr. Murdock and his management team at Castle & Cooke continue to focus on growth and are constantly searching for opportunities to acquire quality assets or businesses to meet this important goal.
Castle & Cooke, Inc. and Dole Food Company, Inc. are privately held companies owned by David H. Murdock, who also serves as chairman and chief executive officer of both companies since 1985. Castle & Cooke and Dole Food Company (formerly listed on the New York Stock Exchange), were acquired by Mr. Murdock in 2000 and 2003, respectively. The food-related businesses operate as Dole Food Company, and all other businesses operate as Castle & Cooke.
Mr. Murdock’s combined companies make up one of the largest privately-held companies in America, with approximately 63,000 employees operating in more than 90 countries around the world.
Among Castle & Cooke’s greatest assets are its plentiful land and real estate holdings, much of which can be traced back more than 150 years to when Samuel Northrup Castle and Amos Starr Cooke began their business partnership by operating a general store in Hawai’i. The spirit, vision, integrity and perseverance of these two men sparked the formation of a company that grew to global proportions over the years.
The company’s diversified businesses have operations in over 24 states and include the development and ownership of real estate, leasing of transportation equipment, manufacture of brick and building materials, oil and gas holdings, aviation services, and ownership of public warehouses. In Hawai’i the company also owns 98% of the 90,000 acre island of Lana’i and two award winning Four Seasons Hotels.
History
On June 2, 1851, Samuel Northrup Castle and Amos Starr Cooke began their humble business partnership by operating a general store. The entrepreneurial spirit and vision of the two founders of this company sparked the creation of a worldwide leader in the food, transportation and real estate industries.
To understand Castle & Cooke today, one needs to chronicle the business career and philosophy of its owner, David H. Murdock. A self-made man, he spent his formative years in the Midwest and commenced his business career as a builder in Arizona. Taking advantage of the post-war housing boom in Phoenix, he progressed from single-family residential to high-rise commercial real estate development and ownership and related services. When the Arizona real estate market collapsed in the sixties, he moved to California.
Headquartered in Los Angeles since 1968, Mr. Murdock’s businesses and investments have continually grown and prospered. Mr. Murdock, a creative thinker and innovative leader, is the first to credit his team for the success the company enjoys today. While still a builder of significant size, the company’s major growth can be attributed to the acquisition of publicly traded companies. The Murdock team has acquired many private companies and taken numerous publicly traded companies private, including FCA Industries, Pacific Holding Corporation, International Mining Corporation, Pato Consolidated Mining, Cannon Mills, Continental Group, Flexi-Van Leasing, Castle & Cooke, and Dole Food Company.
Mr. Murdock’s approach is to acquire undervalued assets, often in ordinary industries, retain knowledgeable management and find creative ways to operate and utilize assets more effectively.
He often uses the expression, “The impossible just takes a little longer.” The diversified group of companies operates autonomously, under specified guidelines, and management is encouraged to be entrepreneurial. His work ethic, integrity, curiosity, energy, belief in quality and desire to grow and improve, set the example for all to follow. Mr. Murdock and his management team at Castle & Cooke continue to focus on growth and are constantly searching for opportunities to acquire quality assets or businesses to meet this important goal.
Sunday, July 18, 2010
Mortgage Update
For the week of Jul 19, 2010 --- Vol. 8, Issue 29
In This Issue
Last Week in Review: Washington has done it again, passing major financial reform legislation. Find out what this will mean for our economy... and the great home loan rates we've been seeing.
Forecast for the Week: A double dose of housing news is in store, and earnings season continues with reports from Goldman Sachs, Morgan Stanley, and more.
View: The web is all a "twitter" these days. Find out what the big deal is, and how "tweeting" can help you or your business.
Last Week in Review
They say the only constant is change... And more change is coming, as the sweeping Financial Regulation Bill was passed by the Senate last week and will be signed by President Obama in short order to become law. So what does this change mean... and how will it impact home loan rates? Here's what you need to know.
The Bill calls for a new consumer protection agency and prohibits Banks from taking risky bets. While those things are important, it's also important to realize that this legislation... over 2,000 pages worth... amazingly does nothing to address the core reasons for the financial collapse. Fannie Mae and Freddie Mac are completely left out of this legislation. The credit rating agencies, who may have played the largest role in the financial collapse, also go unmentioned.
In fact, when former Fed Chairman Alan Greenspan was asked about the Financial Regulation Bill, he noted that this was the first time the Fed was not asked to write a regulation of this kind. He also said that there are "unintended consequences" in every page of this bill.
And one consequence we've seen already is that corporations are hoarding cash, and are somewhat stuck like a deer in the headlights due to the uncertainty that this and other pending legislation is creating. And when corporations hoard cash, they don't typically hire workers, and job creation is crucial to our recovery.
What all this will mean for our economy and home loan rates remains to be seen... which is why now is the perfect time to act, while home loan rates continue to be some of the best they have ever been! If you or anyone you know would like to learn more about this exceptional opportunity, please don't hesitate to call or email. Or forward this newsletter on to anyone you think may benefit and I'd be happy to talk to them free of charge.
In other news, there hasn't been much change on the inflation front, which is good news for Bonds and home loan rates. Remember: inflation erodes the return of an asset like a Bond... so inflation is the arch enemy of Bonds and home loan rates. Both the Producer Price Index - which measures inflation at the wholesale level - and the Consumer Price Index for June showed that inflation continues to remain tame.
However, two changes that would be welcome are in the retail sales and manufacturing areas. Retail Sales for June came in lower than expected for the second month in a row. Although details of the report were mixed, the overall indication is that consumers and businesses remain cautious on purchasing big-ticket items. In addition, the Empire State Manufacturing Index and Philly Fed Index showed that factories and manufacturing still look very sluggish overall. Changes for the better in both of these areas will be reflective of our economy growing stronger, and these are things to watch for moving forward.
All in all, the news from last week helped Bonds and home loan rates reach record levels again, and they ended the week about .125 percent better than where they began.
GROWING YOUR BUSINESS IS ALWAYS CHANGE IN THE RIGHT DIRECTION. CHECK OUT THE MORTGAGE MARKET GUIDE VIEW FOR AN ARTICLE FROM KIPLINGER.COM ON "TWEETING" YOUR WAY TO SUCCESS.
Forecast for the Week
There's a double dose of housing news this week. Tuesday's Housing Starts and Building Permits Reports will give us an update on the health of the new construction sector of the housing market, while Thursday we will get a read on Existing Home Sales.
Thursday also brings another Initial Jobless Claims Report, and any changes for the better in this area will be welcome! In fact, last week, the National Federation of Independent Businesses (NFIB) reported that its monthly "Small Business Optimism" index turned weaker in June. This is important to follow, because small businesses represent an important job creation engine - and the NFIB said the decrease was "a very disappointing outcome."
In addition, earnings season continues this week and some reports to look for include IBM after the markets close Monday, Goldman Sachs before the markets open on Tuesday, and Coca Cola and Morgan Stanley before the markets open on Wednesday.
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.
As you can see in the chart below, Bonds and rates ended the week on an improving trend though they were unable to improve beyond a tough ceiling reflective of their best levels. I'll be watching closely to see what happens this week.
Chart: Fannie Mae 4.0% Mortgage Bond (Friday, July 16, 2010)
The Mortgage Market Guide View...
"Tweets" Can Help Grow Your Business
Twitter is spreading like wildfire and companies are using it to boost sales. By Michael Doan, Kiplinger.com
You know Twitter - the social networking and microblogging service that allows people to keep in touch through "tweets" - short snippets of text sent to cell phones, BlackBerrys and PCs.
Businesses are making use of the Web format for marketing, research and customer services. Computer maker Dell sends coupons to its Twitter users. Whole Foods Market offers $25 gift cards as prizes for people who submit the catchiest messages promoting Whole Foods. Other companies send messages to foster community and build loyalty to stores and products. Uncle Sam is a player, too. The Food and Drug Administration uses Twitter to help get out the word about product recalls.
Because most Twitter messages are searchable on the Web, businesses can also use it to track customer comments and answer complaints - even offer immediate help or advice. Among firms closely tuned in to what customers are saying are Southwest Airlines, JetBlue, Comcast and Boingo, which provides Wi-Fi service at airports.
Jeremy Pepper, public relations manager of Boingo, receives and tracks all Twitter messages, blogs and other Web comments that mention the company. If, for example, someone complains to a friend about a weak Wi-Fi signal at Washington Dulles International Airport, he may get an immediate message from Pepper.
In such a case, Pepper says he'll ask: "'Where you are sitting...have you thought of moving? Which terminal are you in? Let me check to see if there are problems at the airport,'" he says. Once a problem is resolved, he'll send a tweet saying he was happy to help and "have a safe flight."
Quick, helpful responses via Twitter can go a long way to changing customers' opinions about a firm, even turning detractors into company promoters.
Keep messages informal and conversational. "Being boring is the worst thing you can do," says Jeffrey Mann, vice president of research at Gartner Group, an information technology research firm. Business tweets should be personalized; you may want to designate one or more employees to twitter on behalf of the company. Keep in mind that Twitter messages - limited to 140 characters each - are seen by people who choose to become "followers" of a business or an individual.
Twitter is a good tool to use at trade shows, helping to draw attendees to exhibitors' booths as well as press conferences and receptions hosted by a company or trade group. The Oklahoma City Chamber of Commerce, for example, puts out messages about its Schmooza Palooza networking party and trade show before, during and after the event in hopes of spreading buzz about it. Results are good; attendance has grown dramatically.
Twitter is great for small businesses, too, because it's easy and doesn't add any expense. The only cost is the employee time it takes to write and follow others' messages.
Consider registering your company's name with Twitter, even if you don't expect to use it. It'll help prevent misuse by someone else. Go to www.twitter.com.
Reprinted with permission. All Contents ©2010 The Kiplinger Washington Editors. www.kiplinger.com.
Economic Calendar for the Week of July 19-23, 2010
Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
Economic Calendar for July 19-23, 2010
Economic Calendar for the Week of July 19 - July 23
Date ET Economic Report For Estimate Actual Prior Impact
Tue. July 20 08:30 Building Permits Jun 575K 574K Moderate
Tue. July 20 08:30 Housing Starts Jun 570K 593K Moderate
Wed. July 21 10:30 Crude Inventories 7/17 NA -5.06M Moderate
Thu. July 22 08:30 Jobless Claims (Initial) 7/17 445K 429K Moderate
Thu. July 22 10:00 Existing Home Sales Jun 5.04M 5.66M Moderate
Thu. July 22 10:00 Index of Leading Econ Ind (LEI) Jun -0.4% 0.4% Low
The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is not without errors.
As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.
Mortgage Success Source, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated. Mortgage Success Source, LLC does not grant to you a license to any content, features or materials in this email. You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.
In This Issue
Last Week in Review: Washington has done it again, passing major financial reform legislation. Find out what this will mean for our economy... and the great home loan rates we've been seeing.
Forecast for the Week: A double dose of housing news is in store, and earnings season continues with reports from Goldman Sachs, Morgan Stanley, and more.
View: The web is all a "twitter" these days. Find out what the big deal is, and how "tweeting" can help you or your business.
Last Week in Review
They say the only constant is change... And more change is coming, as the sweeping Financial Regulation Bill was passed by the Senate last week and will be signed by President Obama in short order to become law. So what does this change mean... and how will it impact home loan rates? Here's what you need to know.
The Bill calls for a new consumer protection agency and prohibits Banks from taking risky bets. While those things are important, it's also important to realize that this legislation... over 2,000 pages worth... amazingly does nothing to address the core reasons for the financial collapse. Fannie Mae and Freddie Mac are completely left out of this legislation. The credit rating agencies, who may have played the largest role in the financial collapse, also go unmentioned.
In fact, when former Fed Chairman Alan Greenspan was asked about the Financial Regulation Bill, he noted that this was the first time the Fed was not asked to write a regulation of this kind. He also said that there are "unintended consequences" in every page of this bill.
And one consequence we've seen already is that corporations are hoarding cash, and are somewhat stuck like a deer in the headlights due to the uncertainty that this and other pending legislation is creating. And when corporations hoard cash, they don't typically hire workers, and job creation is crucial to our recovery.
What all this will mean for our economy and home loan rates remains to be seen... which is why now is the perfect time to act, while home loan rates continue to be some of the best they have ever been! If you or anyone you know would like to learn more about this exceptional opportunity, please don't hesitate to call or email. Or forward this newsletter on to anyone you think may benefit and I'd be happy to talk to them free of charge.
In other news, there hasn't been much change on the inflation front, which is good news for Bonds and home loan rates. Remember: inflation erodes the return of an asset like a Bond... so inflation is the arch enemy of Bonds and home loan rates. Both the Producer Price Index - which measures inflation at the wholesale level - and the Consumer Price Index for June showed that inflation continues to remain tame.
However, two changes that would be welcome are in the retail sales and manufacturing areas. Retail Sales for June came in lower than expected for the second month in a row. Although details of the report were mixed, the overall indication is that consumers and businesses remain cautious on purchasing big-ticket items. In addition, the Empire State Manufacturing Index and Philly Fed Index showed that factories and manufacturing still look very sluggish overall. Changes for the better in both of these areas will be reflective of our economy growing stronger, and these are things to watch for moving forward.
All in all, the news from last week helped Bonds and home loan rates reach record levels again, and they ended the week about .125 percent better than where they began.
GROWING YOUR BUSINESS IS ALWAYS CHANGE IN THE RIGHT DIRECTION. CHECK OUT THE MORTGAGE MARKET GUIDE VIEW FOR AN ARTICLE FROM KIPLINGER.COM ON "TWEETING" YOUR WAY TO SUCCESS.
Forecast for the Week
There's a double dose of housing news this week. Tuesday's Housing Starts and Building Permits Reports will give us an update on the health of the new construction sector of the housing market, while Thursday we will get a read on Existing Home Sales.
Thursday also brings another Initial Jobless Claims Report, and any changes for the better in this area will be welcome! In fact, last week, the National Federation of Independent Businesses (NFIB) reported that its monthly "Small Business Optimism" index turned weaker in June. This is important to follow, because small businesses represent an important job creation engine - and the NFIB said the decrease was "a very disappointing outcome."
In addition, earnings season continues this week and some reports to look for include IBM after the markets close Monday, Goldman Sachs before the markets open on Tuesday, and Coca Cola and Morgan Stanley before the markets open on Wednesday.
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.
As you can see in the chart below, Bonds and rates ended the week on an improving trend though they were unable to improve beyond a tough ceiling reflective of their best levels. I'll be watching closely to see what happens this week.
Chart: Fannie Mae 4.0% Mortgage Bond (Friday, July 16, 2010)
The Mortgage Market Guide View...
"Tweets" Can Help Grow Your Business
Twitter is spreading like wildfire and companies are using it to boost sales. By Michael Doan, Kiplinger.com
You know Twitter - the social networking and microblogging service that allows people to keep in touch through "tweets" - short snippets of text sent to cell phones, BlackBerrys and PCs.
Businesses are making use of the Web format for marketing, research and customer services. Computer maker Dell sends coupons to its Twitter users. Whole Foods Market offers $25 gift cards as prizes for people who submit the catchiest messages promoting Whole Foods. Other companies send messages to foster community and build loyalty to stores and products. Uncle Sam is a player, too. The Food and Drug Administration uses Twitter to help get out the word about product recalls.
Because most Twitter messages are searchable on the Web, businesses can also use it to track customer comments and answer complaints - even offer immediate help or advice. Among firms closely tuned in to what customers are saying are Southwest Airlines, JetBlue, Comcast and Boingo, which provides Wi-Fi service at airports.
Jeremy Pepper, public relations manager of Boingo, receives and tracks all Twitter messages, blogs and other Web comments that mention the company. If, for example, someone complains to a friend about a weak Wi-Fi signal at Washington Dulles International Airport, he may get an immediate message from Pepper.
In such a case, Pepper says he'll ask: "'Where you are sitting...have you thought of moving? Which terminal are you in? Let me check to see if there are problems at the airport,'" he says. Once a problem is resolved, he'll send a tweet saying he was happy to help and "have a safe flight."
Quick, helpful responses via Twitter can go a long way to changing customers' opinions about a firm, even turning detractors into company promoters.
Keep messages informal and conversational. "Being boring is the worst thing you can do," says Jeffrey Mann, vice president of research at Gartner Group, an information technology research firm. Business tweets should be personalized; you may want to designate one or more employees to twitter on behalf of the company. Keep in mind that Twitter messages - limited to 140 characters each - are seen by people who choose to become "followers" of a business or an individual.
Twitter is a good tool to use at trade shows, helping to draw attendees to exhibitors' booths as well as press conferences and receptions hosted by a company or trade group. The Oklahoma City Chamber of Commerce, for example, puts out messages about its Schmooza Palooza networking party and trade show before, during and after the event in hopes of spreading buzz about it. Results are good; attendance has grown dramatically.
Twitter is great for small businesses, too, because it's easy and doesn't add any expense. The only cost is the employee time it takes to write and follow others' messages.
Consider registering your company's name with Twitter, even if you don't expect to use it. It'll help prevent misuse by someone else. Go to www.twitter.com.
Reprinted with permission. All Contents ©2010 The Kiplinger Washington Editors. www.kiplinger.com.
Economic Calendar for the Week of July 19-23, 2010
Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
Economic Calendar for July 19-23, 2010
Economic Calendar for the Week of July 19 - July 23
Date ET Economic Report For Estimate Actual Prior Impact
Tue. July 20 08:30 Building Permits Jun 575K 574K Moderate
Tue. July 20 08:30 Housing Starts Jun 570K 593K Moderate
Wed. July 21 10:30 Crude Inventories 7/17 NA -5.06M Moderate
Thu. July 22 08:30 Jobless Claims (Initial) 7/17 445K 429K Moderate
Thu. July 22 10:00 Existing Home Sales Jun 5.04M 5.66M Moderate
Thu. July 22 10:00 Index of Leading Econ Ind (LEI) Jun -0.4% 0.4% Low
The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is not without errors.
As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.
Mortgage Success Source, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated. Mortgage Success Source, LLC does not grant to you a license to any content, features or materials in this email. You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.
Tuesday, July 6, 2010
Tax credit extension
What Good is an Extension without a Loan Approval?
The deadline for "tax credit" homebuyers waiting to close on June 30 has been extended to September 30. Not only is the extension great news, but interest rates have fallen over .375-.50% since the end of April according to Freddie Mac.
This could effectively reduce a buyer's monthly payment over $600-800 a year on a $200,000 30-year fixed rate loan!
Unfortunately, for the estimated 180,000 homebuyers this extension impacts, their closing was held up by the lender. Some of the reasons may well be legitimate and some unfortunately may not be.
If you know someone who has had difficulty getting a loan closed, call me. Don't miss this chance to help someone qualify for a tax credit! Just because someone has been unable to get a loan closed so far does not mean that it may not be able to close. What's more, we closed a lot of loans in May and June for people who submitted their application after the Tax Credit's April 30th contract deadline.
I'll review anyone's situation free of charge and offer my opinion on what I would do were I in that position. Act quickly though so we can address their situation before it's too late.
It's important to note that the Homebuyer's Tax Credit extension only applies to people who were under contract by the initial April 30th deadline. Homebuyers who entered into contracts after April 30th remain ineligible for the tax credit.
The deadline for "tax credit" homebuyers waiting to close on June 30 has been extended to September 30. Not only is the extension great news, but interest rates have fallen over .375-.50% since the end of April according to Freddie Mac.
This could effectively reduce a buyer's monthly payment over $600-800 a year on a $200,000 30-year fixed rate loan!
Unfortunately, for the estimated 180,000 homebuyers this extension impacts, their closing was held up by the lender. Some of the reasons may well be legitimate and some unfortunately may not be.
If you know someone who has had difficulty getting a loan closed, call me. Don't miss this chance to help someone qualify for a tax credit! Just because someone has been unable to get a loan closed so far does not mean that it may not be able to close. What's more, we closed a lot of loans in May and June for people who submitted their application after the Tax Credit's April 30th contract deadline.
I'll review anyone's situation free of charge and offer my opinion on what I would do were I in that position. Act quickly though so we can address their situation before it's too late.
It's important to note that the Homebuyer's Tax Credit extension only applies to people who were under contract by the initial April 30th deadline. Homebuyers who entered into contracts after April 30th remain ineligible for the tax credit.
Friday, July 2, 2010
Federal Funds Rate
For the Month of July 2010 --- Vol. 5, Issue 7
IN THIS ISSUE...
Things aren't always what they seem! All too often, people look at the tip of the iceberg - such as the headline of a story. Unfortunately, doing so can mean that you miss some important points. The articles below help you go behind the headlines to understand what's going on, what you may be missing, and how it can negatively impact you if you aren't paying attention.
Fed Actions and Words - What's going on behind the Fed's policies and how might it impact you or someone you know?
Billions of Dollars are Missing - Millions of people may be owed money they don't even know about. Are you?
Q&A: Rate Versus Price? - What should you focus on...and what do you stand to lose if you pick the wrong one?
As always, please forward this newsletter to friends, family members and coworkers who may find the information helpful. And if you have any questions or need any help at this time, just call or email to discuss your unique situation.
Fed Actions Speak Louder Than Words?
According to the popular saying "actions speak louder than words." But the words from various Fed members on the actions they feel need to be taken are getting pretty loud.
So...what could all this potential action mean for home loan rates?
There has been growing debate among Fed members about when to begin raising the Fed Funds Rate. What is the Fed Funds Rate? It's the lending rate banks charge each other for the use of overnight funds, and it is used as a base rate that many other lending rates are based on, for consumer and business loans. A higher Fed Funds Rate tends to slow economic activity, as it means the cost of borrowing to finance a purchase will be higher, while a lower rate helps to stimulate activity, a ripple effect that expands into all sectors of the economy. As you can see in the chart above, the Fed Funds Rate is currently at a range of 0.0-0.25%, and it has been this low for over a year to help stimulate our economy and move us from recession to recovery.
Why is all this important? If the Fed raises the Fed Funds Rate too soon, it could slow economic activity and cause a "double dip" recession. However, if the Fed waits too long to raise the Fed Funds Rate, inflation could result...and inflation concerns were a big reason for all the Fed chatter last week. Remember, inflation is the archenemy of Bonds and home loan rates.
With mounting debt in the US and concerns that US debt will overtake GDP by 2012 - as well as the problems in Europe - there are many factors the Fed needs to consider before taking action. For instance, recently Fed Chairman Ben Bernanke said that the Unemployment Rate is likely to remain high for a while and he noted that the Fed "can't wait until unemployment is where we'd like it to be" before tightening credit, or inflation could too easily get out of control. That said, recent unemployment reports indicate that our economic recovery is still fragile at the moment. This means the Fed won't want to act too quickly, either.
The Fed just met on June 22-23rd and decided to keep the Fed Funds Rate at 0.25%, and also reiterated in its Policy Statement that economic conditions warrant keeping the Fed Funds Rate low for an "extended period." But more and more Fed members are expressing concerns about the current very accommodative monetary policy in place. The next Fed Meeting isn't scheduled to take place until August 10, 2010. Although home loan rates are not tied to the Fed Funds Rate, I'll be watching this situation very carefully as it continues to unfold.
Overall, Bonds and home loan rates have benefitted lately from the situation in Europe and other economic factors. But the situation could reverse quickly - especially in today's volatile environment.
If you or anyone you know would like to take advantage of the exceptional opportunity that exists in the home loan marketplace at this point in history, please don't hesitate to call or email. Or forward this newsletter on to anyone you think may benefit as well!
Billions of Dollars are Missing. Is Some of it Yours?
Would you be surprised to learn that Billions and Billons of dollars are missing...just waiting to be found by the rightful owners? What happens to this money...and how can you get it back if it's yours? Here's the scoop.
Why Is the Money Lost?
When individuals move and forget to change their address, companies or banking institutions cannot contact them. So any property left behind is turned over to the state as "unclaimed property." The state then acts as a custodian of the property until the rightful owner claims it.
Where Does the Money Come From?
The most common types of unclaimed property include bank accounts and safe deposit box contents; stocks, mutual funds, bonds, and dividends; un-cashed checks and wages; insurance policies, CDs, trust funds; utility deposits and refunds; and escrow accounts on home loans.
Is Some of This Money Yours?
To determine if you have any unclaimed property with the state, jump on the web and visit www.unclaimed.org. Click on the state that you live in, and you will be directed to the appropriate website. You will either be able to perform a quick immediate search online, or a few states give you the information on how to just contact them directly to inquire. If you have lived in several states, do a quick search for each, since the funds will be held in the state they originated.
But Be Careful...
Be cautious of solicitations by mail or email that require you to pay a fee to obtain information about unclaimed property. You may end up paying a fee and receiving no information about unclaimed property, just the contact information for the state. Any unclaimed property information can be obtained free of charge by visiting the above listed website.
What about money in Canada, or Federal money such as IRS returns, Savings Bonds, or Federally insured Credit Union accounts? While you're on www.unclaimed.org, just hit "links" at the top of the page to search these resources as well.
By taking a minute to do a quick search, you may find out you're a bit richer than you think. Pass this article on to your friends, family members, or colleagues...but be sure to remind them to include you in their celebration if they find their missing stash of cash!
Q&A: Rate versus Price Reduction?
QUESTION: Should you focus more on your rate or getting a price reduction?
ANSWER: Since the Fed's Mortgage Backed Securities purchase program ended, the markets have seen much more volatile price swings. For potential buyers who are waiting to see if home prices come down a little more, that means the wait could well cost you more money in the long run.
Let's look at an example to see why. Say a homebuyer wants to buy a home that costs $300,000. But the buyer wants a better deal on the home, so she delays a transaction until the home is reduced by $10,000. If, in the meantime however, rates were to rise .75% to 6.00% and the buyer financed 90% of the purchase price, the amount of total payments over a 30-year term would be over $35,000 more than paying the $300,000 purchase price and locking in the 5.25% interest rate. In other words, the buyer would save $10,000 only to end up paying $35,000 more.
Now these prices and rates are just for the sake of example. But the point is that home prices are already very affordable...and rates are still at historic lows for now. So in the end, waiting for a home price to reduce may end up costing you much more than you expect if rates rise.
IN THIS ISSUE...
Things aren't always what they seem! All too often, people look at the tip of the iceberg - such as the headline of a story. Unfortunately, doing so can mean that you miss some important points. The articles below help you go behind the headlines to understand what's going on, what you may be missing, and how it can negatively impact you if you aren't paying attention.
Fed Actions and Words - What's going on behind the Fed's policies and how might it impact you or someone you know?
Billions of Dollars are Missing - Millions of people may be owed money they don't even know about. Are you?
Q&A: Rate Versus Price? - What should you focus on...and what do you stand to lose if you pick the wrong one?
As always, please forward this newsletter to friends, family members and coworkers who may find the information helpful. And if you have any questions or need any help at this time, just call or email to discuss your unique situation.
Fed Actions Speak Louder Than Words?
According to the popular saying "actions speak louder than words." But the words from various Fed members on the actions they feel need to be taken are getting pretty loud.
So...what could all this potential action mean for home loan rates?
There has been growing debate among Fed members about when to begin raising the Fed Funds Rate. What is the Fed Funds Rate? It's the lending rate banks charge each other for the use of overnight funds, and it is used as a base rate that many other lending rates are based on, for consumer and business loans. A higher Fed Funds Rate tends to slow economic activity, as it means the cost of borrowing to finance a purchase will be higher, while a lower rate helps to stimulate activity, a ripple effect that expands into all sectors of the economy. As you can see in the chart above, the Fed Funds Rate is currently at a range of 0.0-0.25%, and it has been this low for over a year to help stimulate our economy and move us from recession to recovery.
Why is all this important? If the Fed raises the Fed Funds Rate too soon, it could slow economic activity and cause a "double dip" recession. However, if the Fed waits too long to raise the Fed Funds Rate, inflation could result...and inflation concerns were a big reason for all the Fed chatter last week. Remember, inflation is the archenemy of Bonds and home loan rates.
With mounting debt in the US and concerns that US debt will overtake GDP by 2012 - as well as the problems in Europe - there are many factors the Fed needs to consider before taking action. For instance, recently Fed Chairman Ben Bernanke said that the Unemployment Rate is likely to remain high for a while and he noted that the Fed "can't wait until unemployment is where we'd like it to be" before tightening credit, or inflation could too easily get out of control. That said, recent unemployment reports indicate that our economic recovery is still fragile at the moment. This means the Fed won't want to act too quickly, either.
The Fed just met on June 22-23rd and decided to keep the Fed Funds Rate at 0.25%, and also reiterated in its Policy Statement that economic conditions warrant keeping the Fed Funds Rate low for an "extended period." But more and more Fed members are expressing concerns about the current very accommodative monetary policy in place. The next Fed Meeting isn't scheduled to take place until August 10, 2010. Although home loan rates are not tied to the Fed Funds Rate, I'll be watching this situation very carefully as it continues to unfold.
Overall, Bonds and home loan rates have benefitted lately from the situation in Europe and other economic factors. But the situation could reverse quickly - especially in today's volatile environment.
If you or anyone you know would like to take advantage of the exceptional opportunity that exists in the home loan marketplace at this point in history, please don't hesitate to call or email. Or forward this newsletter on to anyone you think may benefit as well!
Billions of Dollars are Missing. Is Some of it Yours?
Would you be surprised to learn that Billions and Billons of dollars are missing...just waiting to be found by the rightful owners? What happens to this money...and how can you get it back if it's yours? Here's the scoop.
Why Is the Money Lost?
When individuals move and forget to change their address, companies or banking institutions cannot contact them. So any property left behind is turned over to the state as "unclaimed property." The state then acts as a custodian of the property until the rightful owner claims it.
Where Does the Money Come From?
The most common types of unclaimed property include bank accounts and safe deposit box contents; stocks, mutual funds, bonds, and dividends; un-cashed checks and wages; insurance policies, CDs, trust funds; utility deposits and refunds; and escrow accounts on home loans.
Is Some of This Money Yours?
To determine if you have any unclaimed property with the state, jump on the web and visit www.unclaimed.org. Click on the state that you live in, and you will be directed to the appropriate website. You will either be able to perform a quick immediate search online, or a few states give you the information on how to just contact them directly to inquire. If you have lived in several states, do a quick search for each, since the funds will be held in the state they originated.
But Be Careful...
Be cautious of solicitations by mail or email that require you to pay a fee to obtain information about unclaimed property. You may end up paying a fee and receiving no information about unclaimed property, just the contact information for the state. Any unclaimed property information can be obtained free of charge by visiting the above listed website.
What about money in Canada, or Federal money such as IRS returns, Savings Bonds, or Federally insured Credit Union accounts? While you're on www.unclaimed.org, just hit "links" at the top of the page to search these resources as well.
By taking a minute to do a quick search, you may find out you're a bit richer than you think. Pass this article on to your friends, family members, or colleagues...but be sure to remind them to include you in their celebration if they find their missing stash of cash!
Q&A: Rate versus Price Reduction?
QUESTION: Should you focus more on your rate or getting a price reduction?
ANSWER: Since the Fed's Mortgage Backed Securities purchase program ended, the markets have seen much more volatile price swings. For potential buyers who are waiting to see if home prices come down a little more, that means the wait could well cost you more money in the long run.
Let's look at an example to see why. Say a homebuyer wants to buy a home that costs $300,000. But the buyer wants a better deal on the home, so she delays a transaction until the home is reduced by $10,000. If, in the meantime however, rates were to rise .75% to 6.00% and the buyer financed 90% of the purchase price, the amount of total payments over a 30-year term would be over $35,000 more than paying the $300,000 purchase price and locking in the 5.25% interest rate. In other words, the buyer would save $10,000 only to end up paying $35,000 more.
Now these prices and rates are just for the sake of example. But the point is that home prices are already very affordable...and rates are still at historic lows for now. So in the end, waiting for a home price to reduce may end up costing you much more than you expect if rates rise.
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