random thoughts - isolated text in letterpress wood type printing blocks stained by color inks
Marek Uliasz/Marek - Fotolia
Thought 1: Real Estate Agent Safety - another reason you need to have your buyers properly vetted before you show them property! Since the recent tragic murder of an agent in Arkansas, there has been much conversation and concern about real estate agent safety when it comes to holding open houses and showing homes. Especially when the agent is meeting the prospective home buyer for the first time at the subject property. Agents will have to work smarter. One reason to require that all your potential buyers go through the process and get pre-qualified is that you can be sure they are serious about buying. It is hard to imagine that someone with the intention of doing harm is going to go through a full credit review and income profile for a mortgage approval beforehand. Buddy up at open houses. This is better for you and for the sellers since there will be more eyes charged with paying attention to the attendees. Thought 2: Fannie and Freddie announce their intention to reduce down payment requirements to 3%. The real estate press is pretty excited about the appearance of loosening underwriting guidelines. However, there is a disconnect on the consumer side. According to recent surveys, buyers have been under the misconception that purchasing real estate requires a down payment in excess of 10%. We have to educate our consumers that they can indeed purchase real estate with as little as 3% for a down payment in order to stimulate some more first time home buyer activity. Thought 3: The FICO 9 Credit Scoring Model is introduced. The real estate media was also excited about a new version of the FICO credit scoring model. It will treat medical collections differently and could have a positive impact on credit scores for people with derogatory medical collections on their reports. The good news is that there's a new scoring model. The bad news is that Fannie Mae and Freddie Mac, and therefore the lending community at large, are not accepting the FICO 9 model. In fact they are still operating on FICO 7. So, just because there is a new credit model in the works does not mean that it will have impact on real estate lending in the immediate future.
The announcement follows a leave of absence in which Ginnie Mae President Joe Gormley helped cover the Federal Housing Admission Commissioner's responsibilities.
A credit union service organization is buying the division, which includes mortgage services provider QRL, while the seller repositions its home loan business.
The Bureau of Labor Statistics Friday reported that the economy added 172,000 jobs in May and revised March and April's employment upward, making the Federal Reserve less likely to cut interest rates to support the labor market in the near term.
Given the recent decline in UWM's stock price, it is likely Two Harbor's shareholders will choose cash, meaning the deal is no longer a positive, KBW said.
All 11 Democrats on the Senate Banking Committee are backing a bill that would restore and lock in funding for the Consumer Financial Protection Bureau.
