Archive for the 'Economy' Category

Freddie Mac: Mortgage rates fall to new lows

July 22nd, 2010

Written by Frost Mortgage

Long-term mortgage rates fell again this week, with both 30-year and 15-year fixed-rate mortgages at the lowest levels since McLean, Va.-based Freddie Mac began keeping track.

The average rate on a 30-year fixed-rate mortgage in the week ending July 22 was 4.56 percent, down from 4.57 percent last week, the lowest since at least 1971. A 15-year fixed-rate mortgage averaged 4.03 percent, the lowest since at least 1991.

A one-year, adjustable-rate mortgage averaged 3.70 percent, down from 3.74 percent last week.

“The decline in mortgage rates over the past few weeks echoes the recent signs of weakening confidence in the strength of the economy, particularly the housing and consumer sectors,” said Freddie Mac (OTC: FMCC) chief economist Frank Nothaft.

Read more: Freddie Mac: Mortgage rates fall to new lows – New Mexico Business Weekly

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Dodd-Frank Wall Street Reform passes Senate and heads to White House

July 15th, 2010

Written by Frost Mortgage

“The U.S. Senate has announced the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act (HR 4173) by a vote of 60-39. The 2,300-plus-page bill, HR 4173, is intended to address the problems that led to our nation’s economic collapse, will add new regulators to analyze any potential economic crisis situations in the future; create a federal bureau in charge of consumer protection; and adopt new regulations designed to end the practices that contributed to the American economic downturn.”

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Rates are even lower and tax credits may be extended

July 1st, 2010

Written by Frost Mortgage

It’s a busy week in the news for potential homebuyers.

First, both 15-year and 30-year loans hit record lows for the second week in a row.

Second, as Reuters reports, the tax credit extension has passed a key hurdle:

The House backed by a vote of 409-5 a measure to extend the closing deadline to September 30 for buyers who already met the April 30 deadline to have a signed contract. The current deadline requires those buyers to close the transaction by June 30 to receive the $8,000 tax credit for first-time homebuyers.

The measure must also go before the Senate for approval.

Rates are dropping and home sales are also down.

What this means is an exceptional window of opportunity for those looking for a new home. Please contact one of our loan officers today and allow us to help you find out what is available to you. We think you’ll be glad you did.

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FHA: A range of creative options for borrowers

June 30th, 2010

Written by Frost Mortgage

The Federal Housing Administration (FHA) helps prospective borrowers in a wide range of ways. Frost Mortgage is a huge fan of the FHA program; in 2009, for instance, we were named No. 2 in America for FHA fundings by Mortgage Originator Magazine, and we’ve consistently been the top FHA lender in our home state of New Mexico.

CreditLoan.com has a great article on some of FHA’s main programs, including loans for

• First homes,
• Fixer-uppers,
• Reverse mortgages,
• Energy efficiency, and
• Manufactured or mobile housing.

We can help you with any of these needs–we’re FHA experts. Please call one of our experienced loan officers today for more information on how FHA programs can help you fund your next move.

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Great news for FHA lenders from Congress

June 29th, 2010

Written by Frost Mortgage

Federal Housing Administration (FHA) lenders will be exempted from new “risk retention” rules, which is great news for companies who issue loans insured by the government.

National Mortgage News reports that

[t]he legislation finalized by the conference committee late last week would require originators to retain at least 5% of the credit risk in loans they securitize unless the assets meet a “qualified mortgage” test. All loans backed by the FHA, the Department of Veterans Affairs or the Rural Housing Service will automatically meet that test.

This is a complex time to be in the FHA-backed mortgage business, but the opportunities are huge for those who are eager to learn to succeed as branch partners or loan officers.

Frost Mortgage has been a leader in FHA lending since 1991. If you’re looking to step up, take a look at our mortgage partner offering–we think you’ll find it’s the best in the business.

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#Albuquerque among MSAs removed from “distressed” list

June 22nd, 2010

Written by Frost Mortgage

Good news for the Duke City: Albuquerque is one of 105 metropolitan statistical areas (MSAs) to be taken off the PMI Distressed Markets List.

As MortgageDaily.com reports (subscription required), the change is part of a spate of positive news:

“Mortgage insurance companies are easing guidelines, increasing loan amounts and eliminating declining market status for many metropolitan areas. The relaxed standards are emerging as the sector is seeing improved conditions.”

Other areas removed from the list included Chicago, Los Angeles, New York City, Boston, Seattle and Washington, D.C.

The Federal Reserve Bank of San Francisco describes Private Mortgage Insurance (PMI) as “extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home’s value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI.”

Here at Frost, we’re happy to see positive changes in the market that will make it easier for qualified buyers to access this invaluable resource.

If you are looking for a home loan for your next life move, please call us today and let us help you.

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Greg Frost Sr.: Training industry leaders, planning for the future

June 21st, 2010

Written by Greg Frost

Things are always cooking here at Frost Mortgage, and last week was no exception. I wanted to share a couple of experiences in particular that I’m excited about.

Last week, I was the guest speaker at the Casa Latino National Franchisee meeting held in Orlando, Florida. We shared current mortgage industry information and conducted my Productivity Sales Training based on the 6 Scientific Principals of Ethical Influence.

This week I am in the airport and on the way to meet with the Primary Residential Mortgage, Inc. executive team for a 2-day Master Mind conference in Salt Lake City on Monday and Tuesday. Strategizing for continued industry leadership is the meeting goal, which includes design work on a new 580 FICO score FHA product that will be originated and serviced by Primary. I believe that a manually underwritten, common sense FHA product, without the severe FICO score overlays that are currently being imposed by the big Banks, is essential to simulating mortgage production and home sales. During the first 65 of the 77 years FHA has been in existence there was no FICO score a and no automated underwriting. Loans were manually underwritten to the FHA credit manual, and still should be.

Coming weeks are no less packed. What’s on your agenda?

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Money Market Recap & Forecast from the Daily Communicator: June 21, 2010

June 21st, 2010

Written by Frost Mortgage

Last week was mixed for U.S. Treasuries. A combination of friendly economic reports, lingering questions about the global economy and mixed messages regarding Spain’s financial situation kept buying in government debt steady to strong.
But there were a few bumps. On Monday a big rise in the euro took its toll on Treasuries.

On Tuesday the NY Empire State index of June manufacturing conditions rose to 19.57 from 19.11, but analysts expected 20. Separately, the sentiment survey of residential homebuilders in June fell to 17 from 22 — the lowest since March. These reports should have helped Treasuries, but a massive rally on Wall Street due to the increase in the euro left Treasuries in the dust.

Treasuries turned it around on Wednesday. It began with a huge drop in May housing starts. They fell 10% to an annual rate of 593,000 units from 659,000, and building permits slipped 5.9% from April.

If you’re interested in reading the entire report, published every day and packed with valuable information you can use in your business from mortgage industry leader Greg Frost, please visit The Daily Communicator: http://www.thedailycommunicator.com/

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More light at the end of the tunnel

June 16th, 2010

Written by Frost Mortgage

It has been a long, hard slog, but we’re seeing increased confidence that the worst may be over. This week, for instance, Reuters reported, “A strong global economic recovery is under way, and is unlikely to be thrown off course by European debt woes or the improbable event of the bursting of an asset bubble in China, a top Federal Reserve official said on Monday.” That followed earlier remarks from Federal Reserve Chairman Ben Bernanke, who said European debt would probably only impact the U.S. economy in a “modest” way.

Another report this week found that “U.S. home prices were trending up in 155 out of 384 metro areas” thanks to “optimism that a sustainable economic recovery is underway.” And as our President, Greg Frost Sr., noted recently, “Over time, home prices across all states have risen at average annual appreciation rates ranging from the high 3’s to over 7.5%.”

We never recommend trying to “time the market.” It’s just too unpredictable for that. Instead, we have to look at sound financial practices with a long-term view in mind. We’re glad to see signs that the national mood is returning to normal.

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National Home Values

June 15th, 2010

Written by Greg Frost

The housing market continues to do battle with strong headwinds. Unemployment hovering at the double digit levels, disruptive appraisal requirements, more challenging loan underwriting and in many areas, foreclosure or distress sales exerting their negative influence. On the bright side, for buyers, lower prices combined with historically low interest rates have pushed true affordability to record levels. Here are a few other points to consider:

1. While falling values predominate across the country, there are only six states where values fell by more than 10% over the last year.
2. Unlike other investments, housing puts a roof over your head. That has always been its primary function. Yet, along with that benefit it is still an investment and in comparison to most others, it has compared favorably. Over the last 5 years, the vast majority of states still show positive appreciation with half even showing double digits. The same can not be said for the stock markets.
3. Over time, home prices across all states have risen at average annual appreciation rates ranging from the high 3’s to over 7.5%.

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