What is Happening in the Mortgage Market

First-time home buyers still have time to take advantage of the $8,000 tax credit, but time is running out.

To qualify for the tax credit, a home sale must close before December 1, 2009.  The last week of November will be extremely busy for title companies. With Thursday, November 26th and Friday the 27th being Thanksgiving holidays, that entire week and Monday the 30th may be grid-locked with last minute closings.

Many loans now take a minimum of 30 days to process because of new lending requirements and appraisal issues, and some can take longer. This means first-time buyers wanting the $8,000 tax credit must have applied for their loan, finalized their contract, and have it at the title company by the last week in October to ensure enough time to process and close their transaction before the deadline.

If you would like to take advantage of the tax credit or know someone who may be interested in a first-time purchase, encourage them to act soon.

The next six weeks will pass quickly - don’t miss out! Call me today and ask about our $250 discount offer.

Click here for First-Time Homebuyer Credit Questions and Answers: Basic Information

The end of Fed supported Mortgage Backed Security Purchase Program draws near.

The Fed does begin their two day Federal Open Market Committee meeting today, ending with the release of their formal Policy Statement and Interest Rate Decision at 2:15pm ET tomorrow. I feel that there will be no change in interest rates - the Federal Funds Rate currently stands at 0.25%. However, the Policy Statement from the Fed is extremely important as always…will they hint at any inflation concerns? Will they reiterate Bernanke's words from last week saying that the current recession is most likely over? Will they comment as to the future of their stimulus programs, such as their Mortgage Backed Security purchase plan? The wording they use is always carefully crafted as the market looks for clues - and while the Fed doesn't like to deliver surprises, the wording of this statement will be very interesting to hear.

The Fed must be very careful how it deals with the Mortgage Backed Security purchase program. Fed members know that they can't pull the rug out from under their purchases, which would cause home loan rates to rise quickly under the reduced demand for Bonds…but on the other hand, the program can't continue forever, and is currently set to expire near the end of this year. The Fed has purchased approximately $870B - or about 70% of the $1.25T committed to, and if they stay on course with their plan, home loan rates will indeed rise as the purchasing slows and stops. There truly is an opportunity at hand to purchase or refinance a home with historically low financing rates right now, and it won't last forever. In the future, many will look back and wish they had acted now.

Apply online, call or come to the office for a free pre-approval today.

Richard Woodward

Banker / Senior Branch Manager

17311 Dallas Parkway Suite 173 Dallas, TX 75248

Visit Us Online - www.Envoy-Mtg.com

Tougher Lending Environment Ahead

Benjamin Franklin once said, "Time is money." And that great truth is especially important to remember these days as changes continue to unfold in today's housing market. In an effort to protect consumers, the government continues to create new guidelines surrounding the home loan process. Fannie Mae recently made changes in Announcement 09-19 regarding Miscellaneous Underwriting, Eligibility, and Property Related Updates. These changes are in effect on loan applications dated September 1, 2009 and later.

While consumer protection is definitely important, these guidelines have made the mortgage process tougher. It's crucial as a Realtor that you prepare your clients for these tougher requirements and explain to them how important it is for them to provide good, timely documentation. Let your clients know that you always stay informed and up-to-date on the latest regulatory changes. Reassure them that you have systems in place to help them achieve their short and long-term goals with ease.

Envoy is in complete control of the loan process and has many advantages others do not.

To learn more about these changes, visit https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0919.pdf.

Sincerely,

Richard Woodward
Envoy Mortgage
972-661-5136
Rwoodward@Envoymtg.com