HUNT Mortgage - Linda Mallia

FHA Fees to Increase 4/1, So Act Now

2012-02-28T10:50:00.000-05:00

HUD has announced two changes to FHA loans that will take effect April 1st. The two insurance premiums--monthly and upfront will increase. The changes will increase the cost of each $1,000 borrowed by approximately $1.20. Not a huge increase, but I question the wisdom of making home ownership more expensive at this time. If you are interested in buying or refinancing, act before March 30th to avoid these increases.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Steady As She Goes

2012-02-27T15:55:00.000-05:00

The National Association of Realtors released data that shows pending sales are at the highest point since April 2010. It's been a while since we have seen good news on the national housing market. There was some good news out of Europe as well. Oil prices continue to be very worrisome while rates just chug along the bottom. If the housing data continues to improve and the overall economy does as well, rates will trend upward, but for now the signals are a bit mixed, so it's probably steady as she goes. I think that's the last the thing the Captain of the Titanic said before he retired for the night.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

The Beat Goes On

2012-02-13T09:30:00.000-05:00

There was upward pressure on interest rates last week due to the positive economic news. My ever trusty crystal ball says continued low rates for the foreseeable future. However, if the economic news continues to trend favorably, we will see rates also trend upward. In addition there was a large settlement, 26 billion to be exact, reached against some large mortgage players as a result of foreclosure absuse. Anyone want to take a guess how these lenders will pay for that? In the immortal words of Sonny and Cher, and the beat goes on.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Hoping Fish Will Grow Feet

2012-01-27T16:48:00.000-05:00

The Federal Reserve's decision to keep rates low for three more years should result in exactly that. Ok that was pretty obvious, however there will be jolts and gyrations to the markets here and there. Most analysts think we're scraping the bottom and that there is not much more down side to rates, unless the sleeping monster wakes up. In other words, if there are actual defaults out of Europe, then US treasuries will become the safe haven.

I heard an analyst this morning that was commenting on the Fed's decision to keep rates low for so long. He said, and I quote: "The Fed just keeps draining the swamp, hoping the fish will grow feet." And that my friends is my newest, absolute favorite quote! I had not yet had my tenth cup of coffee so I didn't catch his name. If I find out, I will be sure to give him credit.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Fed Reserve Keeps Rates Low Until 2014

2012-01-26T11:53:00.000-05:00

The Federal Reserve officials announced they will keep short-term interest rates low into 2014. They also sent a signal they might restart their controversial bond-buying program in an attempt to spark economic recovery. I read that a Fed official was quoted as saying he was "frustrated at the slow pace of growth in the economy". Now there's an understatement. That's like saying it hurts a little bit when I bang my head against the wall, something I seem to do with increasing frequency. The stock market initially loved the news turning a negative day into a positive one. Before we get too excited about rates, I just need to remind everyone that mortgage borrowers are paying for the payroll tax holiday that President Obama signed into law in December. Of course it could be worse, that fee charged in an upward rate market would be ugly.

Someone mentioned to me that I need to start writing a bit more positive news on my blog. I am by nature an optimistic person - I always see the glass half full. Of course I also think it might be half full of poison.... Pessimist or just practical. In the eye of blog reader, I guess.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

FHA Seller Concession Policy

2012-01-23T10:38:00.000-05:00

There was a great deal of discussion about HUD lower seller concessions. It appeared at one point that this was a "done deal". But as Yogi Berra once said, it ain't over until it's over.

On Friday, HUD announced they will once again publish another proposed rule on changes to the FHA seller concession policy. Taking into account the time it will take them to publish the proposed rule and the comment period necessary it now appears that it will be 2013 at the earliest before there is any change.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Payroll Tax Holiday

2012-01-04T08:30:00.000-05:00

When Congress giveth, Congress must taketh away. A payroll tax holiday was passed, and Social Security withholding will be reduced from 6.2 to 4.2 for the first two months of 2012. This may be extended when Congress is back in session. So how did Congress decide to pay for this payroll tax holiday? By raising the guarantee fee (the G-fee as it's more affectionately called) that Fannie Mae and Freddie Mac charge to all lenders that service loans. So here's how that works: Congress passes cost to Fannie and Freddie, Fannie and Freddie pass the cost to lenders that service loans, lenders that service loans pass the cost to the mortgage lenders that originate the loans, the mortgage lenders that originate the loans pass the cost to American public that is buying or refinancing their home. The American Public passes the cost to.... Oh wait a minute there is no one else to pass the cost to.

Lenders will begin phasing in the cost of these fees as early as this week, so look for rates to increase by approximately 1/8 over the next week or two, and that's before any economic news hits.

Congress' approval rating is down to 9% and my only question is who are the people that account for the 9%, and what's wrong with them?

Linda Mallia
President
HUNT Mortgage
NMLS #37770

The Final Days

2011-12-28T08:43:00.000-05:00

Last Friday treasuries took a fairly large hit as traders backed away from heavy long positions going into the long weekend. Mortgage prices were soft all day, but also on thin trading and following the bond market. This morning treasuries opened a little better with mortgage prices generally unchanged from Friday's close. This week is still on holiday with many not working. The week doesn't have much data, and it is unlikely there will be much out of Europe to jostle markets until after the first of the year.

With the holidays, many on Wall Street are home celebrating, and so it has been very quiet. Since there is also not much news coming out of Europe to rankel the markets, there is not too much reason to expect rates to do much of anything.

Early 2012 could be another story. If there is no European default and each passing day does seem to make that a bit less likely, the US markets should turn bearish with yields increasing. Rate increases will likely be small but consistent. Of course let's not forget the Mayan calendar runs out in 2012 so maybe we will all have other things to worry about. My personal opinion is someone said hey guys we've taken this calendar thing out about 5,000 years, what do you say we take a break?

Linda Mallia
President
HUNT Mortgage
NMLS #37770

European Downgrades Expected

2011-12-21T11:38:00.000-05:00

Rates drifted downward over the past two weeks and then stabilized, and now slight upward pressure is in place. So the bottom line continues to be that nothing dramatic is expected with rates. It is widely anticipated that France will be downgraded by the S&P. Most of what I've read said that this downgrade is already "baked into" the market already, and no one is expecting anything too dramatic. I wonder about that. When the U.S. was downgraded, and that was only one notch, the headlines were blaring that rates would rise. They fell. Somehow it seems no one is great at predicating how these things will affect the market. My own guess is that rates will face some downward pressure, and the stock market will react very poorly to any European country being downgraded.

Linda Mallia

HUNT Mortgage

President

NMLS #37770

Update 12/5/11

2011-12-05T09:28:00.000-05:00

We saw some major optimism in the markets last week. The unemployment rate dipped to 8.6%. There is not a great deal of economic news due out this week, and I think the optimistic mood will fade a bit, and that should put some slight downward pressure on rates. Of course we have to continue to look out for Europe. If we had some further positive news out of Europe, that would put upward pressure on rates, but with the overall current economic conditions and political climate I can't see anything dramatic happening.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Annoucement from the Fed

2011-11-30T11:51:00.000-05:00

The Fed's announcement this morning that it will lend dollars to the European Central Bank, as well as other central banks in order to inject liquidity into the markets, is causing rates to move higher this morning. The Euro gained against the dollar, so looks like I'll be putting off that trip to Paris again. In addtion, a better-than-expected jobs report also caused pressure on treasuries. If the good news continues, expect rates to continue to move higher.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Countdown to Employment Data

2011-11-30T08:44:00.000-05:00

Rates continue to seesaw for the most part in opposite fashion to the stock market. The last two days have been an exception in that rates still remained soft, despite the improvement of the stock market. Tomorrow begins the three day countdown to Friday's November employment data. Fasten your seat belts. Treasuries are low, but cannot be sustained at this level. So don't blink, or you may miss the latest rally of lower rates.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

All Eyes on Italy

2011-11-10T10:49:00.000-05:00

Greece is ancient history and Italy has taken over as the center of attention right now. It is too big to fail, and yet way too big to bail, so what is the European zone to do? If Italy fails, Spain and others will follow and then we really have a mess on our hands. Our own economy shows a few signs off life with unemployment claims down, but those pesky foreclosures remain up. Stockton California became the foreclosure epicenter with Las Vegas happily giving up that title. Bonds were up slightly this morning so it appears our small amount of good news is having more effect than the big bad news in Europe.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Groundhog Day

2011-11-07T13:42:00.000-05:00

The movie playing last week was my Big Fat Greek Bailout. This week the movie is Groundhog Day. You know the movie where the guy wakes up and re-lives the same day over and over and over, and what in our movie does he do over and over? – Watches the movie My Big Fat Greek Bailout. There is a small twist to the plot this week in that the slight pressure on rates has gone the other way. There is now some soft pressure downward and the bond market is improving slightly today. Basically, one analyst said that rates should be going up because the economy is improving slightly, but right now the European situation is so bad that US bonds are the “port in the storm”. This flight to safety is keeping rates low. Buckle in, because it is probably going to be a bumpy ride.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

My Big Fat Greek Bailout Continues

2011-11-04T12:16:00.000-04:00

The movie still playing is My Big Fat Greek Bailout, and the plot keeps changing. One minute the "audience" is calm and the next they are being frightened out of their seats. This is causing daily gyrations. Today's coming attraction of the release of unemployment numbers did little to encourage anyone. The stock market is down almost 200 points as I write this, and that would lead to a bit of downward pressure on rates, but stay tuned because one never knows how My Big Fat Greek Bailout will turn out.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

All Aboard the Crazy Train

2011-11-02T10:50:00.000-04:00

Today's movie playing in all US investment houses is called My Big Fat Greek Bailout. Greece's Prime Minister suddenly got the urge to call for a referendum. Isn't that special. It sent the markets into a tailspin, but as usual whenever there is fear in the market, US treasuries look like the port in the storm and that tends to push rates downward a bit. Today everyone is finding their equilibrium and rates may drift back up slightly. That is unless the Greek Prime Minister gets any other brilliant ideas. In that case, the theme song of the movie will be sung by Ozzy Osbourne. You remember that one right, it is called Crazy Train.

Linda Mallia
President
HUNT Mortgage
NMLS #37770

Get Rates While They Are Hot!

2011-10-27T16:21:00.002-04:00

Well if you invested in the stock market in the last few days you are one happy camper. That is where the smart money is this week, and that spells upward pressure on rates. Who wants a boring old T bill when you can have the excitement of a 400+ point jump in the stock market? Rates do not look like they will be going lower any time soon, so get them while they are hot.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

10/19/11 Update

2011-10-19T17:08:00.000-04:00

The overall general direction of rates is leaning towards up. The Treasury markets remain bearish. The Fed is still promoting Operation Twist and has also increased MBS purchases. Volatility and its evil twin paranoia continue to rule the day in the markets. There appears to be an overall bias toward rates moving upward slightly, and probably slowly. I would not be floating a rate in the short term. Yesterday’s PPI was a bit stronger than expected, and that gave a whiff of inflation. Inflation is never good for rates.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Rates are rising slightly

2011-10-14T17:25:00.000-04:00

September retail sales increased 1.1% from August. This beat the consensus forecast of 0.6%. FOMC Minutes from the September Fed meeting showed that Fed Officials expect us to avoid a recession. (I hear a collective sigh of relief). All this positive news of course propels the stock market upward. So the usual trend of stocks up, rates up continued this week. There wasn’t just good news about the U.S. economy to boost the markets, there was also a lot of hopeful news out of Europe. This gave investors cover to return to some riskier investments such as stocks and out of safer, but much lower return bonds.

Will all the good news continue? That is a call I can not make, but the pressure is currently on rates to rise. There are several economic reports due out next week such as the Producer Price Index, Consumer Price Index and Industrial Production just to name a few. These reports will give us a good indicator of inflationary pressure -- which if high is very bad for rates and the overall strength of the economy. As always strength in the economy almost always means higher rates.

Some Sings of Hope

2011-10-12T10:31:00.000-04:00

For six days running there has been modest upward pressure on interest rates, but even modest pressure can start adding up. Some experts are predicting the pace of rate increases will slow down, but not the overall trend that rates are headed up. As the economy shows some signs of life and as Europe continues to look like maybe there is a glimmer of hope, there is no reason for rates to go down. The stock market usually acts in opposite fashion of rates, and of course that has been true for past few weeks. So let’s keep on eye on all of those factors. I’d rather see slightly higher rates and everything else improving. I welcome the day that we have a spike in rates because the unemployment rate spiked downward. We are not there yet, but there are some signs of hope.

Linda Mallia
President
HUNT Mortgage
NMLS #37770

Glee on Wall Street

2011-10-07T10:55:00.000-04:00

I think there is a curse that states, May you live in interesting times. Well these sure are interesting times, and there are many days I feel cursed. Markets are all over the place, making any kind of forecasting or planning more than difficult. Today’s job report was actually not awful. I didn’t say it good, but not awful is greeted with some glee on Wall Street. So we will see some courage on investors’ part to move from the safety of treasuries into the higher risk of the stock market. So bottom line, less-than-awful job news is bad for rates and we will see some slight upward pressure on rates.

Linda Mallia
President
HUNT Mortgage
NMLS #37770

10/3/11 Update

2011-10-03T16:43:00.000-04:00

I wonder what it must be like to be a trader on Wall Street during times like these. Even stocks like Johnson and Johnson fell today. How can that be since sales of Tylenol have got to be soaring? I know I took my dose today. One the positive, side crude oil is falling and we are seeing prices at the pump go down. This is really a bright spot for the average, hard working consumer. Rates will continue to act in opposite fashion to the stock market so you should see a continued slight drift downward, but continue to expect volatility to be our constant companion.

Linda Mallia
President
HUNT Mortgage
NMLS #37770

Two Positives in One Day

2011-09-29T14:34:00.000-04:00

Weekly jobless claims were expected to decline, and the stocks were pleased that they did indeed decline at a slightly better than expected rate making it the lowest claims since the beginning of April. Q2 final GDP was expected to increase to 1.2% from 1.0%, and the actual number came in slightly better at 1.3%. I can’t remember when I had two positive things to talk about in one day. I can even add a third in that NAR’s July pending home sales were also down less than expected. I guess it’s still a sad day when things being bad, just not as bad as we thought, are somehow “good.” These reports boosted the stock market, but put slight upward pressure on rates. Until we get to the day where good news is the old fashioned kind - you remember those days – we shouldn’t see any dramatic upward movement in rates.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Get Rates While They are Hot!

2011-09-27T12:05:00.000-04:00

There is some optimism in the markets now that Europe has finally woken up and understands the debt crisis needs to be dealt with. This has created two boom days in a row in the

stock market, and as always, a boom in the stock market means a bust in treasuries and pressure on rates to rise. Additionally the Case-Shiller home price index for the 20 cities reported home prices increased 0.9%. This is the fourth month that home prices have increased. A increase of 0.9% does not suggest we should be singing Happy Days Are Here Again in the real estate community, but it does point to the fact we may be closing in on the bottom. Let’s not forget that year over year prices are still down just over 4%. If this good news keeps up, and I hope it does, rates will continue to trend upward, so get ‘em while they are hot!

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Chubby Checker and the Fed

2011-09-26T09:28:00.000-04:00

It is hard to tell what direction interest rates will go this week. The European debt crisis may well hold the headlines this week, and that will put pressure on rates to tick lower. We had a tiny glimmer of light on housing last week with existing homes sales moving back over the 5 million mark, and good news at home will trump bad news in Europe, and that puts upward pressure on rates. Regardless of small ticks up or down, rates will still be historically low due to Operation Twist, the Fed’s latest move to shift its balance sheet from short term holdings to long term holdings. I tried to read as much as I can about economists predictions on the effect of Operation Twist. I read the predictions of an economist that I previously highly respected. He made some comments about Chuck Berry and the Fed. I can only assume he meant Chubby Checker, who made the Twist famous. I might have to take him off my list of folks I consult with about rates. I mean let’s get serious here, the guy might have a PhD from Harvard on economics, but it’s hard to respect someone who doesn’t know the difference between Chubby Checker and Chuck Berry.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Five Questions

2011-09-23T15:08:00.000-04:00

Not much indication in either direction, so these low rates shouldn’t move today. I guess it’s good that it’s all quiet on the western front when it comes to rates as I’m in a continuing education class all day today. I think a more accurate description of what I’m doing, because you can not call this education, is I am the poster child of silly regulations. This class that is supposed to ensure (I guess) that I am a knowledgeable mortgage banker. So here is how the class works. You read the lesson, then you take an open book “quiz”. The quiz is a maximum of five questions and if you are wrong, the system tells you what the right answer is. You then move to a quiz wherein you are on your honor to not have an open book. The exact same maximum five questions are asked and viola you pass. This goes on for 8 hours. Does anyone seriously think this is the solution to the mortgage crisis? Ask me five questions, give me the answer and then ask them again? I think a monkey could probably handle this. Fortunately I am at least as smart as a monkey and plan to pass this class so that I continue my 30+ year career in the mortgage industry. I hope Barney Frank or Chris Dodd read this before they pass another useless regulation.

Linda Mallia
President
HUNT Mortgage
NMLS #37770

Operation Twister

2011-09-22T13:32:00.000-04:00

The Dow is off about 400 points as I write this. Fear continues to rule the market. The Fed this week announced a new plan they dubbed the “Operation Twister”. I was not a fan of their last endeavor, QE II, and I think this is a mistake. I think there is evidence that QE II drove up commodity prices. Let’s hope Operation Twister doesn’t do the same. Low rates are great, makes my job easier, and every one loves a lower mortgage payment, but higher commodity prices, especially gas prices hurt everyone. Look for downward pressure on interest rates to continue as the 10 year treasury hit a new low again today.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Buffett's Plan

2011-09-20T14:17:00.000-04:00

August housing starts were expected to be down 2.4% to 590K. Instead they declined 5.0% to 571K. However, August building permits expected down 2.0% to 585K were up 3.2% to 620K. There was very little market reaction to this data as the US economic data is a second tier concern with the markets fixated on every word coming out of Europe over Greece's debt issues. There was some optimistic news released regarding the Greek debt crisis and the stock market is responding in positive fashion which puts some minor upward pressure on rates.

I wonder how long the markets will remain fixated on Europe. It is pretty clear from the President’s speech that there will be a great deal more fighting in Washington, and that spells trouble in my book. I’m not weighing in on whether Warren Buffett should pay more taxes, but I’m deeply troubled that the message is not clear. Mr. Buffett is paying less than his secretary because he doesn’t take a salary like she does. He gets paid in capital gains from his investments (and that money has already been taxed). We need more revenue in this country, of that I have no doubt. I just hope the discussion is an open and honest one, and not just re-election stump speeches that sound good. What happened to closing loop holes and simplifying the tax code?

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Fantasy Football Vs. Mortgage Rates

2011-09-16T08:55:00.000-04:00

I got stuck listening to a gentleman pontificating about football and worse it was not even real football it was Fantasy Football. I’m not a fan, so it was like torture. Since I know this gentleman very well, and he is used to me busting his chops, I said with a laugh, stop, you are not just a bore on this subject, you are a crushing bore! He thought it was impressive that he was not just a garden-variety bore, and took it as a badge of honor. We then got into a debate over whether the true term is crushing bore or crashing bore and whipped out our blackberries to Google which was the right term. Turns out both are used according to Urban Dictionary – the dictionary of slang. The dictionary said if you put crashing or crushing in front of bore, you are simply tying to emphasize the extent of the boredom. I have to say that since interest rates just go up a little and down a little and really don’t do anything exciting, it is darn hard to keep blogging on the subject. So at the risk of being a crushing, crashing bore folks rates are really doing very little. There is just a bit of pressure for some upward movement of rates, but overall expect very little. Keep an eye on the stock market, continued gains will mean continued upward pressure. Maybe I should start blogging about Fantasy Football. I know a guy who can help me, that is if he’s still speaking to me.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Waiting for Tonight

2011-09-08T11:51:00.000-04:00

The back and forth continues. One day the stock market does well and pressure is on rates to rise, the next day the opposite happens, as is the case this morning. I would not mess around today if I were considering locking in a rate as it’s anyone’s guess what the President will say this evening and how it will be received. Talk about pressure. There is a lot riding on this speech tonight. Fan or not of this President, as Americans we have to hope that it’s not just a speech this evening. We already know Obama can give a great speech. We need specifics and they need to be good.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Interest Rates "Stupidly Low"

2011-09-06T11:45:00.000-04:00

This week is light on economic news, and so not much is expected in terms of rate movements. Indications are softly lower due to Europe and the poor performance Friday and so far today of our stock market.

Luca Jellinek, head of European interest-rate strategy at Credit Agricole Corporate & Investment Bank in London said “Bond yields in developed markets, including the

U.S.

, are at stupidly low levels, and they are likely to stay low for a long time unless sentiment turns more positive. The reality is that people are pessimistic about the global outlook as economic data are looking increasingly painful.” Aside from the truth of his statement, the way he said it caught my eye. No one can accuse Mr. Jellinek of sugar-coating it. Stupidly low – that says it all. That’s how we are all going to feel if we didn’t buy or refinance to take advantage of these historically low rates

Linda Mallia
President
HUNT Mortgage
NMLS #37770

No News is Good News

2011-08-29T16:31:00.000-04:00

The markets waited for Mr. Bernanke to speak on Friday, and he did. The problem is he really didn't offer to do anything or say much. However, that might just be a good sign that he has faith that we aren't going to go back into a recession, or he would have acted. That seems to be the logical conclusion. So if Mr. Bernanke thinks we aren't going into a recession, no reason for Treasuries to continue to rally which would lead to lower interest rates. That whooshing sound we heard last week was probably the lowest of the low rates going by. Rates are still low, but not likely to go lower.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Waiting for Bernanke

2011-08-25T13:23:00.000-04:00

The slightly worse-than expected job claims numbers kept Treasuries in check, and put some slight downward pressure on rates. Claims were expected to decline 3K to 5K, as reported they increased 5K to 417K; last week's claims were revised from 408K to 412K. Trying to find some good news to talk about, you could note that continuing claims did decline to the lowest level since Sept 2008, to 3.641 mil from 3.721 mil last week. The optimist could also point out that the increase in claims isn't a serious increase, claims have been about 400K for weeks now. Then the pessimist could also point out there is no increase in employment and likely will not be any improvement for the remainder of the year. Sorry to be a broken record, but all this doesn't mean much until Bernanke speaks on Friday. Rates could go either way, so if you like what you see, I'd lock it in.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

2011-08-24T15:34:00.000-04:00

Better than expected durable good orders pushed Treasury yields higher, and that puts upward pressure on rates. I don’t expect anything dramatic. The markets will wait for the Fed Chairman speech on Friday. However, there seems to be a growing expectation that he has something magical up his sleeve. The markets won’t like it very much if they are disappointed. This is a time to be cautious.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Let's Hope for No QE3

2011-08-23T12:18:00.000-04:00

Investors are taking a wait and see approach to Treasuries, given that Bernanke is speaking on Friday from Jackson Hole, Wyoming where the Kansas City Fed has sponsored a meeting. Last year from this same event, Bernanke announced the program to purchase $600 billion in Treasuries. The program known as QE2 was supposed to be the cure for what ailed us. I didn’t get a finance degree from Harvard, so I couldn’t tell you if the dosage was wrong or the timing, but one doesn’t need a business degree to know that QE2 did not cure what ails us and some would argue made things worse. Many analysts are predicting a new scheme to extend the maturity of Treasuries. Let’s hope this new cure proves to have fewer side effects and does the trick. Look for ever so slight upward pressure on rates until at least Friday.

Linda Mallia

President

HUNT Mortgaeg

NMLS #37770

2011-08-19T14:33:00.000-04:00

The 10 year Treasury bills couldn’t break new lows this morning, and that spells short term problems for anyone wanting to bet rates will go down. Until such time as the 10 year treasury can break 2%, the analysts that we follow are telling us to advise against floating rates and to lock in. This doesn’t mean we won’t see new lower ground one of these days and perhaps even soon, but the buzz today is upward pressure and loads of volatility.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

A Dose of Charlie Brown's Optimism

2011-08-18T15:50:00.000-04:00

So it’s another crazy day for the stock market, this time down, as in way down. I’m still optimistic about the economy. I’m just changing my definition of what is optimistic. I’m taking Charlie Brown’s definition of optimism - I only dread one day at a time now. As usual when the indicators are that it’s a tough world out there, treasuries rally and that means indications are for rates to stay nice and low.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Another Reason to Love Starbucks

2011-08-17T10:44:00.000-04:00

I have a secret addiction. Well it’s not really a secret to anyone that knows me, as I have the tell tale sign of my addiction in my hand most days. I will confess that I am addicted to Starbucks coffee. So it caught my eye this morning when I saw the CEO of Starbucks announce that he is cutting off all political donations, and he is asking all fellow CEOs to do the same. His theory is if we take the money out of politics, we might just get a better “product”. I think that’s brilliant and I am in total agreement with him. He can cut off political donations, just as long as he doesn’t cut me off from my Venti extra bold coffee.

Rates pretty much flat again today. Watch out for the stock market it continues to do well. That will drain investment dollars in Treasuries and may put some pressure on rates shortly.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

don't blink

2011-08-11T16:28:00.000-04:00

Things can change rapidly. As usual a huge day in Wall Street beats the stuffing out of the bond market and that puts upward pressure on rates. I'm not expecting anything dramatic in terms of an up tick in rates but pressure built up a little today and if this rally continues so will the pressure for rates to rise.

Material For the Next 2 Years

2011-08-11T10:12:00.000-04:00

As a Mortgage Banker, many things keep me up at night. Last night I woke up and realized that since Fed Chair Ben Bernanke has announced rates will be low for two years, I’m out of material for my blog. This is supposed to be a blog about interest rates and the direction of the market. I can’t keep writing for two years every day that rates are remaining low. That would be 730 days of saying the same thing. The only things I repeat that many times are the things I yell at my kids about. So I was thinking about alternatives. Maybe I can post a good recipe. Now if I can just teach myself to cook... So until then, rates look to be same today.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Uncertainty is Still the Name of the Game

2011-08-10T10:39:00.000-04:00

Today’s market indicators point to slight downward pressure on rates. However, I must confess that I’m now just guessing. Credit downgrade and rates were supposed to go up. They didn’t. A stock rally historically causes rates to rise as investors pull their funds out of bonds. Yesterday’s rally did not. So what is a professional guesser such as me to do? Fed Chair Ben Bernanke stated yesterday that the Fed is prepared to keep rates low for the next two years. It’s interesting to look behind the scenes. The decision was nowhere near unanimous. So does that mean rates really will stay low? Your guess is as good as mine.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

No Need for QE 3

2011-08-09T12:17:00.000-04:00

The stock market is up almost 200 points as of this morning. That's very good news for 401ks, and perhaps our psyche as well. Bond yields are also up a little bit, putting some upward pressure on rates, but I doubt we will see anything dramatic one way or the other. I heard an analyst predict that Ben Bernanke may introduce another round of quantitative easing or QE 3. I hope not. QE 2 was a failure, and many economists feel it led to higher commodity prices such as oil as a direct result. I would rather see lower gas prices and some relief to the average consumer's wallet. Rates could stand to go up a little. I know that is potential heresy in my world, but I think high gas prices did more damage to our jobs and economy than extremely low rates benefited us. Don't get me wrong, I don't want a huge spike, but I don't think we need QE 3 either. I'm pretty happy to see oil prices tumbling.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

same stuff, different day

2011-08-08T10:22:00.000-04:00

The direction of interest rates has been debated hot and heavy all weekend since the down grade. Many experts predict up and some down. I’m inclined to go in the middle. I don’t see rates rising and I don’t really see them going down, just drifting a bit. While the down grade was not good by anyone’s measure, I think there are some reasons the market will for the most part shrug it off. First, this wasn’t completed unexpected and second there is the old Wall Street adage: In the land of the blind, the one-eyed man is King. America remains the “one-eyed man” in the world economy. My caveat to all of this is how our leaders react to all of this. S&P cited the dysfunction of government as one of the reasons for the down grade. How did both sides react? They came out guns a blazing and in full fingering point mode on all the Sunday talk shows. Let’s hope they all grow up this week and quickly.

The Bear Market

2011-08-04T19:10:00.000-04:00

What can anyone say about today? Dow down over 500 points, all the gains of the year wiped out. European worries, our economy weak. Fear drove the markets today. Last week President Obama said that if we didn’t reach a debt deal it would be bad for stocks. Many Republicans said something similar. However today I have to ask, gee if this was “good” for stocks, please don’t ever show me bad. When you invest in a stock and it loses value it immediately obvious and there is not a single redeeming value. When you buy a house and especially at today’s low rates, it’s no fun if it were to go down in value, but at least you can enjoy it. Look for lower rates if the market is down again tomorrow.

Why lenders (are required to) love paperwork

2011-08-02T13:44:00.000-04:00

Loan repurchases continue to plague the mortgage industry. Ally Bank is reporting an expense of $184 million dollars on its financial statement due to repurchases. Repurchases are the little love notes lenders get from Fannie, Freddie or other investors stating there was something wrong in the loan file so now write a check. The “wrong” can be something very minor such as a clerk forgot to copy all pages of the borrower’s bank statements or something major such as an underwriter miscalculated the borrower’s income. The major errors I understand. It’s the minor ones that there just should be a law against as all they do is drive everyone in the industry crazy and in turn can frustrate customers who get asked for an ever increasing amount of CLB paperwork. (That’s Cover the Lender’s Behind) On second thought I just asked for another law to be passed. I’m going to go lie down now until the thought passes.

Weak economic news continues as do the woes in Europe. Steady to lower rates still on the horizon.

It's still the economy stupid

2011-08-01T11:52:00.000-04:00

Hurray the insanity appears nearly over with the announcement that a tentative deal on raising the debt ceiling has been reached. No one is completely happy with the package but I also don't think anyone relished the thought of missing the deadline and risking default. So now all eyes are back on the really important news like will Jennifer Lopez start looking for husband number four and will our elected officials start worrying about creating jobs to fix the fragile economy. I will make a prediction that before Jennifer weds for the fourth time, rates will rise. That means I'm predicting at least one more week of stable to lower rates.

2011-07-29T13:15:00.000-04:00

Everyone is asking, what happens if they don’t raise the debt ceiling? The only thing that all economists agree on is that no one knows for sure. It’s kind of like when Columbus sailed off into the sunset. Was he going to fall off the end of the earth, or would he find the new world. We all know the story had a happy ending for him, Queen Isabella and all of us that live here now, not so good for the natives, though. We’re in the same boat today (did I really just make that horrible of a pun?) These are unchartered waters. No one knows what will happen, but there will be probably winners and losers. The majority of economists believe rates will rise. However it is not a certainty. Japan has had debt levels double what ours is and for well over a decade. The rating agencies down-graded their debt and yet the Japanese still enjoy low rates. There is another Christopher Columbus similarity to all this. He was a deal maker. He didn’t know where he was going exactly. When he got there, he didn’t really realize where he was and he did it all on borrowed money.

Linda Mallia

President

HUNT Mortgage

NMLS # 37770

2011-07-28T14:04:00.000-04:00

Out of bad news, comes some good. Continued weakness in the national housing market should force the Obama administration to back off of the desire to let the extension of the current maximum mortgage amounts for high cost areas expire. NAR is working diligently on this issue. Odds are being given at 50/50 that the temporary increase in maximum mortgage limits will be extended for another year. I agree with NAR that this is critically important to those areas of the country still experiencing high levels of foreclosure. The only “strength” in these markets has been up to the FHA loan limits. Therefore an expiration of the increase and therefore a decrease in FHA loan limits would not be good for the housing market in those areas.

All eyes are on the Obama administration to formally announce its position on the limits. Earlier statements given this year have made clear the Administration would prefer not to.

Unfortunately, it will probably be late September before we get a final decision. An immediate extension would certainly be preferable to avoid an adverse effect on the current market.

Linda Mallia
President
HUNT Mortgage
NMLS #37770

Do You Feel Lucky Punk?

2011-07-27T11:38:00.000-04:00

Should I lock my rate or float it? That’s the question we mortgage bankers get asked most frequently. Over the past few weeks with the debt crisis grabbing all the headlines, customers have pretty much stopped asking that question and simply requested that we lock them and do so ASAP. However, since rates have remained low, customers are now rightly returning to the question. In the past, my response had always been to throw in the known facts of the day and follow with the I-don’t-always-guess-right disclaimer and ultimately you decide. I’m getting bored with my standard answer, so I was considering brushing up on my Dirty Harry imitation skills, and when someone asks me if they should lock, I could say, well do you feel lucky punk? Do you? Then I came to my senses and said, hmmm maybe calling a customer a punk would send the wrong message and be very bad for business. Not to mention my imitation ends up sounding more like Shirley Temple than Clint Eastwood. I figure if I quickly came to my senses that only Clint Eastwood can really pull off those lines, perhaps there is hope for the politicians in Washington to do the same. Gee, I really do sound like Shirley Temple don’t I?

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Jersey Shore vs. The President

2011-07-26T09:45:00.000-04:00

Last night it was decisions, decisions do I watch Jersey Shore , or do I watch the President of the United States and the Speaker of the House talk about the debt ceiling crisis. It comes down to do you want to see people fight and act ridiculous, or do you want to know what Snooki is up to. I opted to go with President and the Speaker. I thought both gave a very good speech that articulated their different positions, but I also found it a bit frightening to see how far apart they remain. This could turn into a heck of a brawl that would put even the Jersey Shore gang to shame. Despite all that, rates were pretty stable yesterday, and it appears the markets will adopt the same calm position, at least initially, today. Things can change rather rapidly, and we will continue to keep an eye on the markets.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

This Week in the Market

2011-07-25T11:48:00.000-04:00

I was convinced we would see major turmoil in the markets today when a deal on the debt ceiling was not reached yesterday. I had a sign that I was wrong when the Asian markets didn’t panic, but I have to admit I was still really concerned. It appears the folks on Wall Street are way better poker players then I am, because they appear to be calling the bluff and the stock market is only off slightly and rates stable. This will be a very busy week for the financial markets with numbers on consumer confidence and new home sales being released tomorrow. This will be the first glimpse of how the second quarter shaped up. I would say that flipping a coin will be just as good an indicator as studying the markets. Quicker too!

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Don't Forget About the Magic 8 Ball

2011-07-22T13:20:00.000-04:00

Anyone remember Magic 8 balls? Those balls you would tip over ,and out of the black liquid, a little diamond shape would appear with a message on it. You asked a question and the Magic 8 ball would give you the answer. Santa brought me one in about 1962. I decided to dust it off and I asked the question that’s really been bugging me. Are all of these politicians absolutely insane? The Magic 8 responded: It is certain. It continues to be maddening to watch and listen to what is coming out of Washington. The market still perceives an increase in the debt limit is forthcoming, and therefore rates are remaining low (or maybe when they asked if we should raise rates right now, their Magic 8 balls replied: my sources say no). I am sure the Magic 8 ball was aware that forty house Republicans met with top officials from Standard and Poors, and got an earful on the need for the debt ceiling increase and the need to have a debt reduction plan. So the continued signals that a compromise will be worked out are keeping both the Magic 8 ball and Wall Street giving out positives.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Debt Ceiling: Git er done!

2011-07-20T10:07:00.000-04:00

It appears some progress has been made on the debt ceiling crisis, as the Gang of six (maybe seven) has put together a plan largely based on the Simpson Bowles plan. The plan is a mix of spending cuts and revenue increases. Unclear to me is exactly what they intend to do with mortgage interest deduction. The Simpson Bowles plan called for the elimination. This plan appears to call for a reduction in deductibility, yet when I saw one of the “gang” interviewed this morning, he seemed to back off entirely on the concept of eliminating the mortgage interest deduction. The best part of getting an increase in the debt ceiling will be that we won’t have to hear the words “kabuki theatre”, “kick the can down the road” or listen to politicians each tout themselves as “the only adult in the room”. Truly I’m on the verge of screaming when I hear these terms. It will be interesting to see how that plays out. I say forget kabuki theatre. What we really need is Larry the Cable guy – Let’s git er done!

Linda Mallia

President

HUNT Mortgage

NMLS #37770

The Press Secretary Tap Dance

2011-07-18T14:15:00.000-04:00

So here’s a question: Who can tap dance better than Gene Kelly? If you are wracking your brain, stop now because it was a trick question. The answer is any White House Press Secretary. Current guy, Jay Carney, is as good as any I’ve seen. One rarely hears a clear and concise answer from a Press Secretary and heaven forbid the American public should actually get a yes or no. Carney came pretty darn close today when asked about the debt ceiling and whether it will be raised. After some dancing, he did acknowledge that it has to be. That’s the good news. I suppose the bad news will be how they go about it and how close to the deadline they come. Expect some potential volatility in rates if they choose to take it right up to the last minute.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Betty Ford Help Us Now

2011-07-15T15:45:00.000-04:00

If you get in a fight with your neighbor and burn their house down, but in the process, you also burn your own down to the ground, you really didn't gain anything. That's the analogy I do hope our elected officials keep in mind as they contemplate how to deal with the debt ceiling. It was somewhat ironic to me that former First Lady Betty Ford passed away last week, and wanted noted during her eulogy that there was a time that politics was not this divisive. Perhaps she can use some influence up there to get reasonable heads to prevail. If I were a betting man, and I'm not, I would bet they will find a way to get it done. Rates may see some volatility as we get closer if the markets see the chances dwindle.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Happy Bastille Day!

2011-07-14T12:11:00.000-04:00

Happy Bastille Day to all! The French have more to celebrate today than just their national holiday. They were one of the few European nations not dragging on the stock market yesterday. Ben Bernacki gave it a boost with his testimony before Congress causing an initial surge, but it was a struggle to hold, and more gains were lost by the end of day. These contnued signals that all is not well in both our economy and Europe's should keep interest rates in check.

Linda Mallia
President
HUNT Mortgage
NMLS #37770

Mama Mia, That's A Lot of Debt!

2011-07-11T16:56:00.000-04:00

I've been looking into a trip to Italy. My grandmother left her small town in Italy in February 1911, and arrived a few weeks later at Ellis Island. I've been dying to visit her small town of Platania, Italy in the province of Catanzaro. In preparation, I've been trying to learn Italian. Turns out that I should be learning to say, Mama Mia, that's a lot of debt!. Last few months all the global discussion has been about Greece. Today the concern is over Italy. The national debt of Italy is 120% of their GDP. Fears over where the problems begin and end in Europe have the markets decidely unsettled. The only good news is a lower stock market also usually sends rates lower. We saw rates tick up last week and back down again today.

Linda Mallia
President
HUNT Mortgage
NMLS #37770

Own Up To Bad New

2011-07-08T10:22:00.000-04:00

Bragging is almost always a bad thing. It sets a higher expectation, and when that expectation isn’t met, people lose faith. I went for blood work this morning. For some reason, I’m a very bad subject, or so every phlebotomist that’s had the “pleasure” of taking my blood has told me. Apparently big mouths have small veins. So as I strolled into the lab this morning, I gave my up front disclaimer and owned up to my small veins. Most times, they slap my arms a couple of times and agree and switch immediatley to the smaller needles. No so this morning. The phlebotomist patted me on the shoulder and said, Honey I’ve been doing this for 16 years and I can get blood out of a rock. I went from my usual dread to elation. Oh good I thought. Well things did not go as Super Woman thought and now I know I’m a lower life form than even a rock because it took two arms, one heating pack and four veins before we had success. Seems to me maybe the powers that be should try the same thing with the economic news, own up to bad news and don’t set a higher-than-can-be-achieved expectation. The jobs number released this morning was worse than expected and the stock market was down almost 100 points as I write this. Makes me want to go crawl under that rock I’m related to.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

Market Update

2011-07-07T16:54:00.000-04:00

The job market showed a slight improvement today. Although the job market is still weak, it may be showing some signs of stability. This of course is good news for job seekers, but as with all data, there are winners and losers. The price of oil also went up slightly today. An improving economy means there will be more demand for fuel. It's always yin and yang when it comes to trying to figure out how to take advantage of any situation. This also includes the timing of purchasing or refinancing a house. Many consumers sit on the sidelines because they do not see much change and therefore no sense of urgency to jump into the real estate market. Recent data suggests that there may actually be some price improvement next year in some markets. Nothing dramatic expected, just a nice, steady 2% climb. Doesn't sound like much until you factor in that interest rates are also predicted to rise.

Linda C. Mallia
President
Hunt Mortgage
NMLS #37770

China Raises Rates

2011-07-06T12:39:00.000-04:00

China hiked interest rates for the third time this year. These rate hikes are being made despite their soft economy. Policy makers in China are mindful that the US rates are very low. If China were to raise rates too high and too fast, they could attract speculative investors. This would fuel excess liquidity and therefore inflation. I would love to sit in on the meetings where the pros and cons of these moves are discussed. Of course, I would barely understand the discussion if it were in English, so I guess I will stick to reading the tabloids for my entertainment.

Linda Mallia
President
HUNT Mortgage
NMLS #37770

Will He Stay or Will He Go?

2011-07-05T14:02:00.000-04:00

One thing the markets like more than anything is certainty. Recent rumors reported on Bloomberg that Treasury Secretary Timothy Geithner "signaled" to the Obama Administration that he might be leaving his post did not leave the markets feeling all warm and fuzzy with certainty. I just love that term "signaled" How does one signal to the President of these United States of America that one wants to leave? Geithner dismissed these reports that he would quit after the U.S. debt ceiling is raised. However if one believes the old adage, I can't hear what you're saying, because I'm too busy watching what you're doing, might want to note it has also been reported that Geithner's family is moving back to New York from the Washington area. This would not be a good time to lose another person off the bench. I would say the Captain has definitely not yet turned off the seat belt light.

Linda Mallia

President

HUNT Mortgage

NMLS # 37770

No More QE2, What Now?

2011-07-01T09:44:00.000-04:00

Well, the Federal Reserve has left the building. The Federal Reserve ended the $600 billion bond-buying program known as QE2 yesterday. What will now happen to interest rates as the market's largest buyer has officially exited the market? So far it has been a rough week for Treasuries. Most analysts predict this will cause rates to rise. The only hope for bonds would be a weaker performance in the stock market and a flight to quality.

Linda Mallia
President
HUNT Mortgage
NMLS # 37770

Rising Home Prices

2011-06-29T11:35:00.000-04:00

It’s been a while since there has been any great news on the national front for real estate, however the S&P/Case Shiller report did finally deliver some. For the first time in 8 months, home values rose across the country. Washington DC gained the most with a 4% gain. I am glad to see the rest of the country finally able to enjoy the good news that my hometown of Buffalo, NY has—some stabilized real estate prices. I am also a bit sick to my stomach to see that it’s Washington DC leading the pack. Maybe I’m reading too much into these statistics, but this tells me Washington DC feels there is job growth in their area. The largest employer of course is the Federal government, and that would be you and me the tax payers footing that bill. Ok, so I’m back to depressed.

Linda Mallia

President

HUNT Mortgage

NMLS #37770

You Heard it Here First

2011-06-27T14:00:00.000-04:00

Quick, who was the second man to walk on the moon? Yeah, the name just doesn’t come to you as quickly as the first guy. Everyone knows Neil Armstrong was the first, and said those famous words, one small step for man, and one giant leap for mankind. He was followed within minutes by Buzz Aldrin. Second place is rarely memorable. That’s why I want to be sure all of our agents and associates are talking up our Buy the Before - Live the After Program—the program that allows a buyer to roll remodeling, redecorating or revitalizing costs into their mortgage and have the house of their dreams. Rumor has it another large local bank is working on their own version of this program. Remember you heard it here first!

Linda Mallia

President

HUNT Mortgage

NMLS # 37770

The Time to Talk is Over

2011-06-24T08:34:00.000-04:00

The bipartisan group of 3 Republicans and 3 Democrats, informally known as the “Gang of Six” in the Senate, is near completing their own answer to the nation’s deficit problem. The word on the street is that the plan reduces the deficit by 4 trillion over the next decade by spreading a lot of pain all around. Some of the ideas are to raise the retirement age, charge wealthy seniors more for benefits, and close some cherished tax breaks such as the mortgage interest deduction. At first I thought wow I’m going to get hit with all of those, so where is the shared pain ? Then I realized that, as a Mortgage Banker, if the mortgage interest deduction goes away, my shot at being a wealthy senior is pretty much gone. So basically there is some good news to everything if you look hard enough. Sorry but I have to use some "gallows humor" every now and again or I will simply lose my mind. You have the Simpson-Bowles bipartisan report and now we will have another report in about a week. The time to talk will be over and it will be time to act.

Linda Mallia

President

HUNT Mortgage

NMLS # 37770

The Next Mrs. Hugh Hefner?

2011-06-21T11:46:00.000-04:00

I got stuck aboard a Jetblue flight for 6.5 hours this past Friday. First it was a computer malfunction. The captain announced they were going to shut the computer off and hope when they turned it back on, it would work. I thought hey that’s what I do with my computer and I didn’t even go to flight school. That was just the beginning of what was to come. The errant computer did come back on line, and we were off to the parking lot that is JFK airport. The captain then announced that “weather” was preventing us from taking off. Three hours later, the captain announced that per recent Federal regulations we were rolling back to gate as the new regulations require we be given the option to get off the airplane. After inquiring I discovered there was no regulation that mandated they have to let your luggage off. Myself and my fellow “sardines” were told if we did dare to get off the flight a) we wouldn’t be getting to Buffalo that night b) we’d be on our own to figure out where we were going to stay for the night and last but not least my personal favorite c) we would be charged a cancellation fee to re-book. I thought yep these are the same geniuses that are writing mortgage regulations these days too. Someone needs to find a way to re-boot the guys that think up these regulations. Back to the runaway for another 3.5 hours before take off.

The only positive of my long sad journey was that I read everything, I mean everything—the local paper, the Wall Street Journal, USA today, you name it. I’m now up to speed on national news, local news and all of the financial news. So what was the most shocking news I read? That 85 year old Hugh Hefner’s 25 year old fiancée called off the wedding. I thought for sure it was true love. But lest anyone feel sorry for Hef, the internet was updated before we landed that he has already found a new girlfriend. Fortunately she is six months older than his last. I’m sure that this more mature woman at 25 and a half will prove to be the love of his life and he hers, and I will never experience a bad flight again nor have to deal with a silly, useless Federal regulation. On second thought I think I have a better chance of being the next Mrs. Hugh Hefner.

Linda Mallia
President
HUNT Mortgage
NMLS # 37770

Gloom and Doom Sells

2011-06-16T09:06:00.000-04:00

I had the opportunity to hear Rohit Gupta, Chief Commercial Officer for Genworth speak. In his position, Mr. Gupta monitors both the overall economy and the state of the real estate and mortgage industry. He had a fairly balanced view of the state of things. Not all wine and roses, but not total gloom and doom either. When asked why there is so much gloom and doom among the "name" economist that regularly appear on the talk shows, he had a very interesting and probably very correct theory-- because it "sells" The more balanced, positive economist don't get invited back, but talk about financial Armageddon and you're invited back over and over again. Just one more way in which the media tells us what to think. Scary...

Linda Mallia

President

HUNT Mortgage

NMLS # 37770

The Beatles Said it Best

2011-06-14T16:46:00.000-04:00

Wasn’t there a Beatles song that said, I have to admit it’s getting better, a little better every day? That may be what executives at Fannie and Freddie are singing when they look at their portfolio of loans. Recent data suggests that the tougher underwriting standards have resulted in an improved performance on loans. So if the portfolio is getting better, maybe what’s already in place is working and we should think twice about making it even more stringent—so we don’t do any harm. I’m just asking…

Mortgage Brokers are singing a different tune, think the blues. A recent study also showed that Mortgage Brokers share of the mortgage pie continues to shrink. I doubt the average consumer could tell you the difference between a mortgage banker (which we are) and a mortgage broker. Inside the industry is a different story. The path of a Mortgage Broker is almost impossible these days. Expect to see continued fallout of these folks from the industry.

Linda Mallia
President
HUNT Mortgage
NMLS # 37770

The End of QE2

2011-06-09T16:58:00.000-04:00

We are a few weeks away from the end of QE2, the Federal Reserve’s program of purchasing an additional $600 billion worth of treasuries, and no one seems to know exactly what the end result of that will be on rates. I feel very much like I did at 11:59 am on New Year’s Eve many years ago. No one knew if there would be massive computer failures as dates ticked from 12/31/99 to 1/1/00. There was much gnashing of teeth and hand wringing and over all gloom and doom predictions, and in the end not much happened. Low rates and slow economic times go together like hand and glove, so if it were not for the end of QE2 I doubt there would be any speculation at all on the direction of rates.

The only other reason for rates to rise is inflation, and while we consumers feel inflation every day when we go to the pump and the grocery store, we have to remember that a long time ago; Uncle Sam decided that commodities such as gas and food should not be measured in our core inflation rate. Therefore, and repeat after me, there is no inflation. Try that and let me know if repeating it over and over makes you feel better.

Linda Mallia

President

HUNT Mortgage

NMLS # 37770

Have a Home Your Way!

2011-06-08T08:33:00.000-04:00

The more time we spend promoting our new program, Buy the Before – Live the After, the more possibilities we find in helping buyers and sellers to create a new way to look at real estate. By partnering with Lowe’s and vendors at the Realty Club, we have created a “Burger King” type solution to homeownership. Buyer’s can now have a house their way. We have all of the resources bundled together. We have the pictures and specs on the entire inventory in the markets we serve through the MLS system. We can take those, and in turn, create drawings of what a house might look like if it were redecorated or remodeled to a new buyer’s tastes and specifications. In turn, we can roll those renovations into one affordable loan. It can be anything from upgrading the appliances to major structural repairs.

With today’s low rates, the cost to borrow is less than $5.00 per thousand for the average 30 year loan. That means the a buyer can put $10,000 of repairs, renovations or remodeling on to an existing home and only spend an additional $50 a month to have a home customized to their own personal tastes.

We are continuing to improve and expand the product to reach as many consumers as possible.

Linda Mallia

President

HUNT Mortgage

NMLS # #37770

Some Good News

2011-06-02T15:41:00.000-04:00

I’ve become a real nerd over the past few years. I have to read more and more statistics and trends etc. in order to make sure I stay on top of this ever changing industry. Most of the time, reading stats causes me to reach for my every-handy bottle of aspirin. So I was very pleasantly surprised to see a headline that caught my eye, and actually made me feel pretty hopeful about the future of the real estate and mortgage industries. The headline blared that Q1 2011 showed a sharp decline in rental vacancy rates and as result the cost of renting was on the rise. That’s an easy formula to figure out – higher rents = more renters turning to homeownership as a cheaper alternative. This could help reduce the excess supply of housing in certain parts of the country. I should note that in the key markets Hunt is in, with the exception of Arizona, we don’t have enough inventory to meet demand. However, there are many markets that still do have an oversupply, and that drags on the entire economy and psyche of potential buyers everywhere. So let me really expand on my formula. Rents rise. This causes renters to turn to homeownership. This causes the price of real estate to rise. This would help stem the current tide of strategic defaults (people walking away from a house because it has devalued below the mortgage amount). Less strategic defaults helps to stop the bad press and continuing devaluation of everyone’s home. It also helps add to local coffers as real estate taxes are based on values. Add today’s low rates as icing on the cake.

Linda Mallia

President

HUNT Mortgage

NMLS # 37770

Can anyone bring back the Whig party?

2011-06-01T16:21:00.000-04:00

Ding-ding round 2: the Republicans have called Elizabeth Warren in for round 2 of questioning. It appears the Republicans are concerned that with her powers unchecked, we could have a monster on our hands of too many regulations and too many unintended consequences. They have asked Ms. Warren to clear her calendar to devote an entire day to their line of questioning. I’m sure that will be a fun day for all. Lest anyone think I’m promoting the Republican Party, let me also say that Republicans are making it clear they believe 20% down payments for housing is the way to go, and the Democrats are fighting that tooth and nail. So if you are a Mortgage Banker which party should you be supporting? Yeah, that’s the problem. Can anyone bring back the Whig party?

Linda Mallia
President
HUNT Mortgage
NMLS # 37770

Party Like it's 1999

2011-06-01T09:36:00.000-04:00

The Case-Shiller report was released Tuesday morning, and told us what folks in certain real estate markets already know, house prices fell again. In fact the report analyzed that house prices adjusted for inflation are back to 1999 levels. What no one seems to have taken into account, is that interest rates are lower than 1999 levels, more like the 1960s levels. So its bad news for home owners, but its great news if you are in the market to buy a home. Some reporters and bloggers are speculating as to how long it will take for prices to rise again. I say that’s not really what we should be focused on. Stocks aren’t exactly setting the world on fire, and at least you can live in your home, what do you do with a stock that has devalued? Use it to cover your head in a rain storm? There is some silver lining in the dark cloud; you just have to position yourself for it and then party like it's 1999.

Linda Mallia
President
HUNT Mortgage
NMLS # 37770

Elizabeth Warren Faces Some Tough Questions

2011-05-25T08:47:00.000-04:00

Elizabeth Warren got grilled today by Republican Senators. Check out our Facebook page to read the entire article. I don't really want to see anyone get "grilled", but I am glad to see a few tough questions being asked. Ms. Warren's know-before-you-owe is a noble effort. Like many noble efforts, there are sometimes unintended consequences.

I’m suffering from a good case of whiplash today. I was trying to watch the price of oil and it was up, no down, no up and then down, and thus my whiplash. Our entire economy is largely dependent on oil in one way, shape, form or another. Gas prices had crept over $4.00 a gallon, and statistics began to show the “recovery” was slowing down. I put recovery in quotes because I will take the government at its word there is one. If the price of gas goes down as quickly as it went up, will we regain the momentum? Now there is the million dollar question (just about the same amount I predict it will soon take to fill up my tank.) At least interest rates remain low, for now.

Linda Mallia
President
HUNT Mortgage
NMLS # 37770

Elizabeth Warren

2011-05-23T11:37:00.000-04:00

http://money.cnn.com/video/news/2011/05/20/n_elizabeth_warren.cnnmoney/?iid=HP_LN

The head of the newly formed Consumer Financial Protection Bureau was recently interviewed on CNN. Ms. Warren is there to tout her new idea of additional mortgage disclosures. I just love watching when a reporting fawns over the person being interviewed. Hello, were you asleep at journalism school the day they taught about asking just a few tough questions. My favorite part of the interview is when the reporter (correctly in my opinion) asks about one of the main culprits of the mortgage crisis—greed. We already have a disclosure that tells the interest rate, the APR, the monthly payment and the closing costs. Ms. Warren feels the new disclosure is the cure all, including greed. Without missing a beat, she states that if consumers knew how much they were borrowing and the costs, greed would not have been an issue. If only a disclosure could remove greed from our culture, our society and from capitalism, life would be indeed perfect. I can believe that many consumers failed to understand adjustable rates, and the dire consequences of rising rates and therefore payments. However the disclosures were always there. Personally, I don’t care, invent another disclosure and we will use it as we always do, but this is just so silly, and not to mention expensive to implement new (repetitive) disclosures. Now, just in case anyone thinks all I do is criticize Ms. Warren, I do want to mention what a lovely blue suit she is wearing.

Linda Mallia

President

HUNT Mortgage

NMLS # 37770

20 is the Magic Number

2011-05-20T16:52:00.000-04:00

You know that expression, some days you’re a bug, some days you’re a windshield? It’s hard not to feel like the bug if you a Mortgage Banker. Yesterday, Acting Comptroller of the Currency, John Walsh, said that there are as many as 20 new mortgage lending requirements in the regulatory pipeline. That’s 20 folks, count ‘em. I want to say to these people, really? I know that regulation was needed, don’t deny it. However, there have been so many changes that it’s a daily challenge to keep up, and now 20 more. My advice: buy stock in aspirin.

On a more positive note, I’m sensing our new program, Buy the Before. Live the After, is going to be big! I get really excited at all the things this product can do for us. It can help sell more houses, which is the obvious part. Even more important in my mind is the dialogue is opens up. Agents now have a reason to call buyers that may have previously rejected a house to tell them about the program. Agents can now take a listing that needs a lot of TLC and advertise it as being eligible for this product.

I have gotten some feedback not to say we are having training sessions on this product, because that sounds like hard work. Point well taken—they are informational sessions because we don’t see this as more work for our agents. That is going to be our job. Hunt Mortgage is going to coordinate the vendors and the resources with the buyer to help them envision the potential of a property.

Linda Mallia

President

HUNT Mortgage

NMLS # 37770

Why Didn't I Think of This?

2011-05-18T08:41:00.000-04:00

Stop the presses! I spend a huge chunk of my time looking for new, exciting and innovative ideas to help real estate agents sell more homes and overall bring more value to the real estate industry. I ran across what I think is a sure fire winner, at least it has been in Australia. It seems Alan John Miller and Mary Suzanne Luck, under the names of the Divine Truth, announced that they are the second coming and are reincarnated from Jesus and Mary Magdalene. This has apparently led to followers, after followers come donations and... yes here's the part I tie it to real estate... a boom in local real estate value as the followers plunk down cold hard cash for local real estate. So there you have it agents, get out there and find your very own Messiah wanna be and move him onto your block and set back and cha ching. (http://weirdnews.aol.com/2011/05/16/alan-john-miller-mary-suzanne-luck-jesus-mary-magdalene_n_862384.html?icid=main%7Cnetscape%7Cdl1%7Csec3_lnk3%7C213461)

Linda Mallia

President

HUNT Mortgage

NMLS # 37770

The Ugly Truth

2011-05-17T12:48:00.000-04:00

Well, well now that we can get the crazy thought out of head that Donald Trump might be President of the United States, we can turn our attention to other crazy thoughts. Here’s one for you: It is estimated that 6 to 7 million homes are delinquent on their mortgage payments. Let’s say the average payment is $1,000. If people are not making their payments, where is the $1,000 they should be paying going? Some observers are raising the question. Certainly if someone has lost their job the money is going to the basics. But what about the strategic defaulters—those that walk away because they are under water. Studies are showing that for the first time Americans are choosing to pay other bills before their mortgage. This is a big shift in our culture and this could get ugly. Some might say it already is.

Linda Mallia
President
HUNT Mortgage
NMLS # 37770

Fannie and Freddie

2011-05-17T08:38:00.000-04:00

There is a bill being floated that would eliminate Fannie and Freddie and instead break them up into five seperate companies. Now call me crazy but what good does that do? The bill would still allow implicit government backing, but this time only of the mortgage backed securities issued by the entities and not the entities themselves. The same regulators would monitor the five agencies. I'm just a simple person, but if this is such a good idea why don't they make these changes to Fannie and Freddie. Does anyone remember that Fannie and Freddie often were in competition for business and that often lead to who-can-have-the lower-standards game. I sure hope they look very carefully at this bill.

Linda Mallia

President

HUNT Mortgage

NMLS # 37770

The Never Ending Rate Question

2011-05-16T09:13:00.000-04:00

Pretty much every day I am asked whether I think rates will go up or down. Loads of data points to rates going up. However, my standard answer is I am fairly sure rates will not being going down. I think they will stay the same unless everyone in the government has lost their minds. Based on some of the stuff coming out of Washington, there might be some good evidence they have. A 1 percent rise in T bills on each 1 trillion in debt add 10 billion to the cost of debt service. You may recall that the politicians have been patting themselves on the back for trying to find 38 billion in cuts. A 1% rise in the T bills would wipe out that savings instantly, and then where are we. So they can't be that crazy... can they?

Linda Mallia

President

HUNT Mortgage

NMLS # 37770

The Questions in Life

2011-05-12T08:26:00.000-04:00

If I manage to live long enough, I believe all of my questions about life and all there is to it will eventually get answered. Picking up the latest issue of Rolling Stone, it turns out will answer one of my more burning here-to-for unanswered question: how does Donald Trump get that look to his hair style? Turns out the Donald tells all to Rolling Stone and it sounds rather simple: Head and Shoulders Shampoo and air drying. Well who knew? The other question that tends to keep me up at night is: what is the direction of interest rates and the overall housing market? I know it's not as important as the Donald's hair, but it is a subject I'm a bit more educated on. The stock market took a pretty good dip yesterday (down 130 points.) China relased a report that its consumer price index rose 5.3%, sparking concerns over global inflation. Raising rates is the usual persciption to fight inflation. The Fed will need to keep it's foot on the gas to keep the economy pumped up, and it's foot on the brake to make sure inflation stays in check. So far it's been foot on the gas. Look out for the brakes and try to enjoy the ride of low rates while we can.

Linda Mallia

President

HUNT Mortgage

NMLS # 37770

Looking Forward to 53

2011-05-10T09:28:00.000-04:00

According to a recent study by Harvard economist David Laibson, the age at which you are smartest about your finances is 53 years old. Wouldn’t you like to know how they determined that 53 is your peak? In case you think I’m making this up, it was published in the May 2011 edition of Money magazine. Did anyone look at what other factors went into the test, like was everyone except the 53 year old blonde?

I’m not sure that 53 is the magic number for financial brilliance, but if you have reached that milestone you’ve likely seen a great deal of different financial schemes and ideas over your lifetime. What’s old can be new again. A recent article in National Mortgage News states that contracts for deed have re-emerged as result of all of the tightening of mortgage rules. Contracts for deed are also commonly referred to as Land Contracts. Under a land contract the seller retains the legal title to the property while allowing the “buyer” to take possession of the property. The sale price is paid in periodic installments, often with a balloon payment due at the end. When the full purchase price has been received, the seller conveys legal title to the property. It’s a very good idea to have an attorney review this type of transaction as the legal status of land contracts varies from state to state. Land contracts may seem like a great way to get around today’s more stringent underwriting guidelines, but they are not without risk. But what do I know; I’m not 53 years old (until later this year anyway)

Linda Mallia

President

HUNT Mortgage

NMLS # 37770

Not so handy? Not a problem!

2011-05-09T11:54:00.000-04:00

Ok, let’s have a moment of truth. When an agent advertises a house as needing some TLC, those of us that aren’t handy, (yours truly included,) can’t pass by that ad fast enough. Your pocketbook is calling out to the house, it has got to be affordable if it needs TLC, and it’s probably a heck of a bargain. But, at the same time your head is saying forget it, you still need surgery on your thumb that you smashed the last time you tried to hang a picture. Well, we are working on putting together a program that puts all of our resources together to take what might have once been considered a nightmare, and turn it into the American Dream. We’ve got houses in our inventory that need work, and we’ve got buyers that want them. Getting the buyer from here to there is the tough part. We are creating the Dream Builder Program. We will bring together agents, consultants, contractors, plans and materials, and roll them all into one affordable loan. Stay tuned. We will be bringing training seminars to all of our agents and the home buying public very soon.

I really wanted to call it the Handy Man’s Special for the Non-Handy Man, but the PC police won’t let me. I have to admit Dream Builder does have a nice ring to it. It probably also is a better description because this isn't just for homes that absolutely need fixing up, this is also for houses that a buyer wants to customize to their own tastes.

Linda Mallia

President

HUNT Mortgage

NMLS # 37770

Did Anyone Think This Through?

2011-05-06T09:02:00.000-04:00

California Assembly Bill (AB) 935, proposed by Assemblyman Bob Blumenfield, would fine mortgage lenders or loan services $20,000 per foreclosure as a “foreclosure mitigation charge”. The theory is this will raise $16 billion over the next two years based on the high number of foreclosures expected in the state, and would “force” lenders to give loan modifications. Did anyone mention that this just might raise the cost of getting a new mortgage if lenders know the cost to foreclose is going to start at $20,000? This is a stunning move that has a very noble motive, but the potential of negative unintended consequences is high.

Linda Mallia
President
HUNT Mortgage
NMLS # 37770

Could High Credit Also Mean High Risk?

2011-05-05T14:42:00.000-04:00

Lenders are now trying to determine if a borrower is likely to become a “strategic defaulter.” A strategic defaulter is someone who could pay, but chooses not to for strategic reason(s). Generally, the strategic reason is the value of the home falls so significantly that the borrower no longer feels it makes sense to continue making mortgage payments, and that the consequences of not paying will be minimal. There is plenty of evidence that the consequences will be minimal, so in markets where prices are falling, strategic defaulting is on the rise.

FICO, those wonderful guys that brought us credit scores in the first place, have now come out with a new analytic tool to help lenders identify potential strategic defaulters. Like credit scores, it is partly a no-brainer—markets that have falling values have more strategic defaulters. The perennial clever FICO boys have of course come up with even more “markers,” and it turns out the biggest indicator is how savvy borrowers are in managing their credit. Strategic borrowers think it out like a chess game, and carefully plan each move. They are well aware that defaulting on their mortgage is going to hurt their credit, and they make sure they open new charge cards and otherwise get their financial needs in order, and then they default. Typically they have always had excellent credit. So high credit scores and high IQs are potentially explosive new risk factor. Who knew?

Linda Mallia

President

HUNT Mortgage

NMLS# 37770

Coming in June!

2011-05-04T16:40:00.000-04:00

Most younger buyers want "perfect" before they buy - this is a program that will paint the complete picture -- we can sketch up how the house will look in it's improved condition and then we can: provide someone to help them get the quotes, draw up the plans, order the materials, do the work and roll it all into one affordable loan. Maybe we want to avoid saying younger buyers and instead refer them as today's buyer...

HUNT Mortgage is getting ready to announce some exciting financing opportunites that will benefit buyers who think they cannot afford their dream home. Stay tuned for all the details!

Linda Mallia

President

HUNT Mortgage

NMLS # 37770

You Can't Escape the Regulations

2011-05-02T11:10:00.000-04:00

I stopped at a local grocery store that has a robust take-out food section to buy myself some lunch today. As always, I was busy thinking about my industry with all of the changes and the massive amount of new regulations that we have to follow, and yet, at the same time, continue to assist our customers. I moved up in line and suddenly the young kid behind the counter, about 18 years old, turned positively white as a ghost. I thought wow, I know I forgot to apply make up this morning since I was in a hurry, but I didn’t think I looked that bad. Then I turned around and saw a very stern looking woman who looked like her face would certainly crack if she ever smiled. She was holding a clip board and it said New York State Health Department. No longer did I have to wonder what our young food server was frightened by. I know this grocery store well and they are so spotless you can eat off their floor. Regulators are needed and necessary, you just don’t like them to come in on your shift. I felt his pain, and it's been a long time since I had anything in common with an 18 year old.

Gary Peters, D- Mich, issued a statement regarding winding down the GSEs “We need a housing finance system that preserves the American dream of homeownership and preserves access to affordable mortgages for middle-class families. However, we also need reforms that reduce the risk to taxpayers and that create conditions for the private sector to play a larger role in the secondary mortgage market.” Couldn’t have said it better myself, Representative Peters. I think that’s what everyone wants. It just seems to me that many are leaving out the words “reduce risk” and trying to replace them with “totally eliminate risk.” The total elimination of risk would be ideal, but very difficult to do. When you get in the car, you fasten your seat belt, you drive the speed limit and you make sure your tires are good etc, but you still have to pull the car out of the garage and incur some “risk”.

Here’s something I initially viewed as good news, National Mortgage News has an article that it will “take a decade or more to work out all the kinds in the forthcoming merger of the Truth in Lending and Real Estate Settlement Procedures Act into a single integrated disclosure. Hmmm ten years, surely I’ll be retired and collecting my social security check by then and not have to worry about this… but the next article was about the social security fund… can someone say, Rolaids? Since I may have to worry about this, I kept reading the article. My favorite quote: Rod Alba Vice President of the American Bankers Association, “although the start-up costs for lenders to comply with the forth-coming rules will be tremendously high, they will eventually lead to lower costs, at least for consumers.” I would like to know if we can get the “will eventually lead to lower costs” part in writing from someone. I’m just asking.

HUNT Mortgage's New Blog

2011-04-29T10:47:00.000-04:00

I didn’t really expect Barack Obama or any elected official to call me and ask my opinion on the state of the mortgage industry. After all, I am but a lowly Mortgage Banker, no let me catch myself, the law now requires me to tell you I am a Licensed Mortgage Banker. My license number is 37770. I have been a mortgage banker for 27 years. However, some brilliant politicians decided that I should now have to pass a test to prove that I actually know what I am doing. Wouldn’t someone have noticed if I didn’t over the past 27 years? I mean really? But nope, I was told, 27 years or 2.7 months, it doesn’t matter, I still needed to attend 20 hours of pre-licensing education initially, 11 hours of continuing education annually, and pass two tests, both Federal and State. So you might be saying ok, big deal why couldn’t you pass a test if you have been doing this so long? You should be able to take it with your eyes closed right? My response would be, oh yeah, and how many years have you been driving? Anyone want to try that three point turn again? I didn’t think so. But, with a little brush up, we could all be three-point-turning with the best of them. So it didn’t kill me, but it did annoy me. So I wrote my check to take my test (where did that money go?), and off I went to the testing center. If you think I’m going to tell you my scores, you’re crazy. Let’s just say my record of being a less-than-stellar student is unbroken, and only my pride is wounded, but I will get over it. So now that I actually have a piece of paper that tells me I know what I’m doing, I thought maybe I should start a blog, share ideas, tips and just an overall what’s going on in the Mortgage Industry.

Linda Mallia

President

HUNT Mortgage

NMLS # 37770