Jay's Mortgage and Investors Blog

Daily Rate Lock Recommendation - 05/02/2008 10:47:00 AM CST
May 2nd, 2008 11:53 AM


Friday's bond market has opened down sharply following the release of stronger than expected employment figures. The stock markets are showing gains with the Dow up 66 points and the Nasdaq up 2 points. The bond market is currently down 23/32, which will likely push this morning's mortgage rates higher by approximately .250 - .375 of a discount point.

The Labor Department brought us today's big news with the release of April's Employment report. They said that the unemployment rate fell to 5.0% when it was expected to rise to 5.2%. The payrolls number was also bad news for bonds with a 20,000 job decline compared to the forecasted 75,000 drop. Those readings indicate that the employment sector may not be as bad as many had thought. This has hurt bond prices and led to this morning's increase in mortgage rates.

In a bit of good news though, the average hourly earnings portion of the report showed a 0.1% increase in earnings. This was well bel ow the 0.3% that was expected and should ease some concerns about wage inflation. Unfortunately, the other two headline numbers are influencing trading the most this morning.

March's Factory Orders data was also released this morning. It showed a 1.4% increase in orders that greatly exceeded forecasts of a 0.2% rise. Also worth noting was a 0.4% upward revision to February's orders. This means that combined orders for durable and non-durable goods exceeded what analysts had thought. While this is a negative for bonds, it has not had much of an influence on mortgage rates this morning as the employment figures are the driving force behind today's losses.

Next week is fairly light in terms of economic releases. There is a moderately important piece of news scheduled for release Monday in the ISM Services Index. If it varies greatly from forecasts it could influence mortgage rates. However, it likely will have little impact on rates. Look for detai ls on the rest of next week's events in Sunday's weekly preview.

If I were considering financing/refinancing a home, I would.... Float if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2008
Posted by James Mandl on May 2nd, 2008 11:53 AMPost a Comment (0)

Newsletter-June 2nd, 2008
May 30th, 2008 5:20 PM
Newsletter-June 2nd, 2008
Newsletter-June 2nd, 2008    
James "Jay" Mandl
Sr. Loan Officer
Texas Mortgage Capital Corp
13526 George Rd, Suite 106
San Antonio, TX 78230
Phone: (210)493-5300
Fax: (210)493-1211
Cell Phone: (210)633-6409
E-Mail: jay@txmortgage.com
Website: http://www.mandlmortgage.com
    
 

Market Comment

Mortgage bond prices fell pushing mortgage interest rates higher. Inflation fears were fanned by stronger than expected durable goods data. The Treasury auctions added extra supply amid terrible foreign demand. Unfortunately this pressured mortgage bonds lower and rates higher. Oil prices retreated but still remained high amid declining US reserves.

For the week, interest rates on government and conventional loans rose by about 7/8’s of a discount point.

The employment report Friday will be the most important event this week. The ADP employment release and revised productivity data will also be important. Expect oil and stocks to continue to dominate trading as inflation fears remain a concern.

LOOKING AHEAD

Economic
Indicator

Release
Date & Time

Consensus
Estimate


Analysis

Construction Spending

Monday, June 2,
10:00 am, et

Down 0.6% Low importance. An indication of economic strength. A significant decrease may lead to lower rates.
ISM Index

Monday, June 2,
10:00 am, et

48.0 Important. A measure of manufacturer sentiment. A large decline may lead to lower mortgage rates.
Factory Orders

Tuesday, June 3,
10:00 am, et

Up 0.1% Important. A measure of manufacturing sector strength. A large decrease may lead to lower rates.
ADP Employment

Wednesday, June 4,
8:30 am, et

-30k Important. A measure of private employment. A larger decrease may lead to lower rates.
Revised Q1 Productivity

Wednesday, June 4,
8:30 am, et

Up 2.5% Important. A measure of output per hour. Improvement may lead to lower mortgage rates.
Employment

Friday, June 6,
8:30 am, et

Unemp. @ 5.1%,
Payrolls -52k

Very important. An increase in unemployment or a large decrease in payrolls may bring lower rates.
Consumer Credit

Friday, June 6,
3:00 pm, et

Up $7.7 billion Low importance. A significantly larger than expected increase may lead to lower mortgage interest rates.

ISM Report

The Institute for Supply Management (ISM), formerly the National Association of Purchasing Management (NAPM), releases the "Report on Business" on the first working day of each month. Part of this report is the "diffusion index," which tracks the economy’s ups and downs fairly well.

In conducting this survey, the ISM questions purchasing executives from over 250 industrial companies compiling data on production, orders, commodity prices, inventories, vendor performance, and employment. Each of the respondents is asked to rank the categories as "up" or "down." Various weights are applied to the individual components to form the composite index.

A composite index reading of 50 can be thought of as a "swing point." A reading above 50 implies an increase in economic activity, while a reading below 50 indicates a decline. As a general rule of thumb, when the index approaches 60, investors begin to worry about an overheated economy. A slide below 40 suggests that recession is at hand.

The ISM report is difficult for economists to forecast because there is little data upon which to base an educated guess. Economists often look to regional Purchasing Managers’ reports that are released prior to the full report, in a further effort to anticipate the results of the full report.

The ISM report has a large "surprise factor" and can often prompt a significant market reaction. Be cautious heading into the data this week.

.


Copyright2008. All Rights Reserved. Mortgage Market Information Services, Inc. The information contained herein is believed to be accurate, however no representation or warranties are written or implied.

  
   MORTGAGE MARKET IN REVIEW Newsletter-June 2nd, 2008    
Posted by James Mandl on May 30th, 2008 5:20 PMPost a Comment (0)

Garbage Lawsuits
May 28th, 2008 2:14 PM

I read this from a fellow blogger and I couldnt believe it. This is just a perfect example of why our insurance costs are where they are. I feel sorry for the family but their attorney needs to get his head examined.

Family Suing Bat Maker

Tuesday, May 20, 2008, 11:26:42 AM | JLP

I saw this story in today’s Houston Chronicle.

A family is suing the maker of the Louisville Slugger TPX Platinum bat, the retailer, and Little League after their son received brain damage after he was struck by a line drive hit off that bat. They claim that the bat is dangerous and that the company knew it was dangerous.

Duh!

People need to be aware that a hard ball thrown at 55 MPH and then hit with a wooden or metal bat, has the potential to do severe damage if it is hit just right. I thought we knew all of this.

This whole lawsuit thing gets on my nerves. From the article:

The lawsuit also names Little League Baseball and Sports Authority, which sold the bat. It claims the defendants knew, or should have known, the bat was dangerous for children to use, according to the family’s attorney, Ernest Fronzuto.

It wasn’t even a Little League game! They’re suing Little League because they put their seal of approval on the bat.

Yes, it’s sad that their son now has brain damage but this is ridiculous. Baseball can be dangerous. It’s part of the game.

Posted by James Mandl on May 28th, 2008 2:14 PMPost a Comment (0)

Daily Rate Lock Recommendation - 05/27/2008 11:32:00 AM CST
May 27th, 2008 1:46 PM
 


Tuesday's bond market has opened down slightly despite a weaker than expected consumer confidence reading. The stock markets are mixed with the Dow down 10 points and the Nasdaq up 9 points. The bond market is currently down 7/32, which will likely push this morning's mortgage rates higher by approximately .125 of a discount point.

The Conference Board started this week's economic releases with their Consumer Confidence Index (CCI) May. It showed a weaker than expected level of confidence with a reading of 57.2 when it was forecasted to stand at 60.0. This was the lowest reading in 16 years, indicating that consumers are not very optimistic about their personal financial situations. This is considered good news for bonds and mortgage rates because it usually means consumers are less likely to make large purchases in the near future.

April's New Home Sales data was also released today, revealing a higher level of sales than was expected. However , today's report also revised March's sales lower. This means that sales were weaker than thought in March, but the month to month increase was fairly large. This is bad news for bonds because a weak housing sector usually translates into weaker economic conditions in general. But, this data is not considered to be of high importance to the bond market and mortgage rates, so its impact on today's pricing was fairly minimal.

Tomorrow morning we will see April's Durable Goods Orders data. This report gives us an indication of manufacturing sector strength by tracking orders at U.S. factories for big-ticket products. It is currently expected to show a decline in new orders of approximately 1.5%. If this report shows a stronger than expected reading, we should see mortgage rates rise because it indicates manufacturing growth. If it shows a larger than expected drop, we should see rates improve tomorrow morning.

If I were considering financing/refinancin g a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2008


Posted by James Mandl on May 27th, 2008 1:46 PMPost a Comment (0)

Who Is Really To Blame For High Gas Prices
May 25th, 2008 3:58 PM

Who Is Really To Blame For High Gas Prices

By Michael Reagan (eldest son of former president Ronald Reagan)

"Here we have the humiliating spectacle of a president of the United States begging an Arab potentate to increase our supply of oil while Democrats, who bear the major responsibility for the problem, scoff at him as a mendicant groveling at the feet of a foreign monarch.

As humiliating as it is for the United States to be put in a position where our economy is held hostage to foreign oil producers who can make or break our nation simply by limiting their petroleum production, thus causing the price of oil to skyrocket, it is even more shameful that we have allowed the so-called environmental movement to escape the blame for our predicament.

Make no mistake about it, you are paying exorbitant prices at the gas pump solely because the environmental terrorists and their Democrat allies in Congress have all but shut down our domestic oil production while refusing to allow the exploration and creation of new sources of this resource so vital to our economic health.

While President Bush was left with few if any alternatives to seeking help from the Saudis thanks to our inability to exploit our own untapped oil supply, it is disturbing that instead of demanding that Saudi Arabia act on our behalf by beefing up oil production, we asked them politely to do what they should do without being asked. They owe us at least that.

When my dad, Ronald Reagan, was in Berlin he did not mince words when addressing Chairman Gorbachev about what he should do about the Berlin Wall. He didn't ask, "Mr. Gorbachev, would you please be a good fellow and tear down this wall?" He demanded: "Mr. Gorbachev, tear down this wall."

Instead of politely saying to the Saudi king, "If possible, your majesty, consider what high prices [of oil] are doing to one of your largest customers," as he said he would when he met with the king, the president should have bluntly informed the king: "Hike up production, or from now on you are on your own and at the mercy of al Qaeda."

George Bush should have stood on his bully pulpit and pointed his finger at Capitol Hill and Nancy Pelosi and Harry Reid and said, "How dare you not give the nation an energy policy? Because you won't give us an energy policy I have been forced to go the Saudi Arabia, get down on my knees and beg them to give us what you refuse to give us – an adequate supply of reasonably priced oil."

George Bush should point the finger of blame at Mrs. Pelosi and Sen. Reid and their environmentalist co-conspirators for refusing to enact an energy policy that dictates drilling in ANWR and the Florida Gulf -- where the Chinese and Cubans are drilling for the huge plentiful supply of oil beneath the seas to their heart's content. We should also be harnessing nuclear power, and mining clean coal now locked up for alleged environmental reasons in well over a million acres of land in southwest Utah in the Grand Staircase-Escalante National Monument, which contains at least 7 billion tons of coal worth over $1 trillion.

To get an idea of just what using nuclear power can do for America, look at the USS Ronald Reagan. During the life of the two nuclear reactors on that carrier, the American taxpayers will be saved $579 billion in fuel costs. Nobody has died on nuclear-powered aircraft carriers or submarines, and nobody has died in the U.S. because of a nuclear accident.

We can't exploit nuclear power or drill for oil in ANWR or the Gulf because Democratic members of congress have been bought and paid for by the most dangerous terrorists in America, the radical environmentalists.

They make the Taliban and al Qaeda look like Mother Teresa's nuns. They have wreaked such havoc here in the U.S. with their terrorist tactics that the president of the United States is reduced to begging for oil, a plentiful domestic resource but, thanks to them, off-limits to the American people.

We need a surge here at home to deal with these terrorists. With the Capitol Hill Democrats, they are the American people's deadliest enemies."

Posted by James Mandl on May 25th, 2008 3:58 PMPost a Comment (0)

Daily Rate Lock Recommendation - 05/23/2008 11:20:00 AM CST
May 23rd, 2008 2:21 PM
 


Friday's bond market has opened in positive territory as stocks react negatively to rising oil prices. The stock markets are showing sizable losses with the Dow down 111 points and the Nasdaq down 27 points. The bond market is currently up 14/32, which will likely improve this morning's mortgage rates by approximately .1250 - .250 of a discount point.

The National Association of Realtors gave us today's only semi-relevant economic news with the release of April's Existing Home Sales report. It revealed a decline in sales, but not as much of a drop as expected. However, the data has not influenced bond trading enough to affect mortgage rates this morning.

The bond market will close at 2:00 PM today ahead of Monday's Memorial Day Holiday and will remain closed until Tuesday morning. The stock markets will also be closed Monday. I don't think that this will have an impact on this afternoon's mortgage rates.

Next week brings us the releas e of several pieces of important economic data. There are relevant reports scheduled for release each of the four business days, so we will likely see some volatility in rates. Look for more details on next week's events in Sunday's weekly preview.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2008


Posted by James Mandl on May 23rd, 2008 2:21 PMPost a Comment (0)

Daily Rate Lock Recommendation - 05/22/2008 10:14:00 AM CST
May 22nd, 2008 12:27 PM
 


Thursday's bond market has opened down sharply as concerns about inflation take their toll. The stock markets are showing moderate gains with the Dow up 37 points and the Nasdaq up 14 points. The bond market is currently down 27/32, which will likely push this morning's mortgage rates higher by approximately .250 - .375 of a discount point.

The Labor Department gave us today's only economic reading with the release of weekly unemployment figures. They reported that 365,000 new claims for benefits were filed last week. This was down from the previous week and lower than the 372,000 that were expected. However, this data is not considered to be of high importance and had a minimal impact on today's bond trading or mortgage rates.

Yesterday's release of the minutes from the last FOMC meeting led to some volatility in the markets late yesterday and again this morning. The minutes revealed that the vote for the last rate cut was close and that ther e are obvious concerns not only about economic growth and activity but also about inflation. This has made long-term securities such as mortgage related bonds less attractive to investors because inflation erodes the value of a bond's future fixed interest payments. Traders then need to sell them at a discount to offset that loss in order for an investor to purchase it. The result is bond prices falling while yields and mortgage rates rise.

The National Association of Realtors will give us the Existing Home Sales report tomorrow morning. This data tracks resales of homes in the U.S., giving us a measurement of housing sector strength. It is not considered to be of much importance to the bond market unless it varies greatly from forecasts. Current forecasts are calling for a decline in sales between March and April.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing w as taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2008


Posted by James Mandl on May 22nd, 2008 12:27 PMPost a Comment (0)

Daily Rate Lock Recommendation - 05/20/2008 11:05:00 AM CST
May 20th, 2008 1:10 PM


Tuesday's bond market has opened in positive despite stronger than expected inflation news. The stock markets are showing significant losses with the Dow down 179 points and the Nasdaq down 30 points. The bond market is currently up 8/32, which should improve this morning's mortgage rates by approximately .250 of a discount point.

The Labor Department gave us April's Producer Price Index (PPI) this morning, showing a 0.2% increase in the overall reading. That was below the 0.4% that was forecasted. However, the bad news came in the more important core reading that showed a 0.4% increase compared to the 0.2% that was expected. This means that excluding more volatile food and energy prices, inflationary pressures were much stronger at the producer level than analysts had thought. That is a negative for bonds because those price increases will likely trickle down to the consumer level of the economy eventually.

Tomorrow's only news is the minutes from the last FOMC meeting. Market participants will be looking for how Fed members voted during the last meeting and any comments about inflation concerns in the economy. The goal is to form a guess about what the Fed's next move will be. The minutes will be released at 2:00 PM ET, so if there is a market reaction to them it will be evident during afternoon trading.

I would not be surprised to see stock prices continue to fall over the next few days. They seem to be reacting to high oil prices. If this is true, we should see funds shift into bonds as a sage haven, leading to improvements in mortgage rates. Accordingly, I am holding the float recommendations for the time being.

If I were considering financing/refinancing a home, I would.... Float if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking pl ace over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2008


Posted by James Mandl on May 20th, 2008 1:10 PMPost a Comment (0)

Daily Rate Lock Recommendation - 05/19/2008 11:25:00 AM CST
May 19th, 2008 1:18 PM


Monday's bond market has opened fairly flat after this morning's economic news failed to show any significant surprises. The stock markets are showing early gains with the Dow up 35 points and the Nasdaq up 15 points. The bond market is currently down 1/32, which should keep this morning's mortgage rates at Friday's levels.

The Conference Board gave us this morning's data with the release of April's Leading Economic Indicators (LEI). They reported an increase of 0.1% compared to forecasts of no change, indicating that the economy may grow slightly more than was expected over the next few months. This data is considered to be moderately important and did not have much influence on today's mortgage rates.

April's Producer Price Index (PPI) will be released early tomorrow morning. This index helps us measure inflationary pressures at the producer level of the economy. If this report reveals weaker than expected readings, we should see the bond and stock markets rally. The overall index is expected to show an increase of 0.4%, while the core data that excludes food and energy prices is expected to rise 0.2%. A smaller than expected increase in the core data would be ideal for mortgage shoppers.

There is no relevant economic news scheduled for release Wednesday, but we will get to see the minutes from the last FOMC meeting. Market participants will be looking for how Fed members voted during the last meeting and any comments about inflation concerns in the economy. The goal is to form a guess about what the Fed's next move will be. The minutes will be released at 2:00 PM ET, so if there is a market reaction to them it will be evident during afternoon trading.

Overall, it may be an interesting week for mortgage rates. We could see little movement in rates if the stock markets remain calm and the week's data doesn't reveal any major surprises. Tuesday's PPI report is the single most important data o f the week, but the FOMC minutes may also lead to some volatility in the markets. Also worth noting is an early close in the bond market Friday afternoon ahead of the Memorial Day Holiday Monday. These early closes sometimes lead to additional volatility bond prices as investors prepare for the long weekend and trading thins with many traders starting the weekend early.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2008


Posted by James Mandl on May 19th, 2008 1:18 PMPost a Comment (0)

Daily Rate Lock Recommendation - 05/16/2008 9:37:00 AM CST
May 16th, 2008 1:44 PM


Friday's bond market has opened flat following the release of mixed economic data and new record oil prices. The stock markets are showing losses with the Dow down 39 points and the Nasdaq down 17 points. The bond market is currently up 1/32, but we should see an improvement in this morning's mortgage rates of approximately .375 of a discount point due to strength in bonds late yesterday.

Today's data gave us mixed results. April's Housing Starts showed stronger than expected results with an increase in starts of new homes. It was expected to reveal another decline in new home starts, indicating that the housing sector was stronger than thought. This is negative news for bonds because the weak housing sector is believed to have significantly contributed to the weakness in the overall economy.

The second report of the day was May's preliminary reading to the University of Michigan's Index of Consumer Sentiment. It showed a reading of 59.5 that w as lower than forecasts, meaning that consumers were less optimistic about their own financial situations than many had thought. This is good news for the bond market and mortgage rates because waning confidence usually means consumers are less apt to make large purchases in the near future.

Next week is light in the number of reports scheduled for release, but it does bring us a couple of important events. The first piece of data is Monday's release of the Leading Economic Indicators (LEI). It is a moderately important report but can influence bonds enough to lead to slight changes in mortgage rates. Look for more details on next week's events in Sunday's weekly preview.

If I were considering financing/refinancing a home, I would.... Float if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place ov er 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2008


Posted by James Mandl on May 16th, 2008 1:44 PMPost a Comment (0)

Daily Rate Lock Recommendation - 05/15/2008 10:30:00 AM CST
May 15th, 2008 11:37 AM


Thursday's bond market has opened in positive territory after this morning's economic data showed much weaker manufacturing activity than was expected. The stock markets are showing modest gains with the Dow up 9 points and the Nasdaq up 7 points. The bond market is currently up 5/32, which should keep this morning's mortgage rates near yesterday's levels.

April's Industrial Production report was released this morning, revealing a surprising 0.7% decline in output. It was expected to show that production at U.S. factories, mines and utilities fell 0.3%. This is good news for bonds and mortgage rates because slowing manufacturing activity is an indication of a weakening economy.

The Labor Department gave us last week's unemployment figures, saying that 371,000 new claims for benefits were filed. Since this data tracks only a week's worth of claims and it nearly matched forecasts, this data had little impact on bond trading or mortgage rates today .

There are two pieces of data due to be posted tomorrow. April's Housing Starts is the first and is the least important of the two. This data measures housing sector strength and mortgage credit demand by tracking new permits and actual starts of new home construction. It is expected to show a decline in new starts from March's readings. But, since this report is not considered to be of high importance to the bond market, it likely will have little impact on mortgage rates unless it varies greatly from forecasts.

The last report of the week is May's preliminary reading to the University of Michigan's Index of Consumer Sentiment late tomorrow morning. This index measures consumer willingness to spend and usually has a moderate impact on the financial markets. It is expected to show a reading of 62.0, which would be a small decline from last month's final reading. If it shows a decline in consumer confidence, bond prices will likely rise. This should le ad to mortgage rates moving slightly lower tomorrow.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2008


Posted by James Mandl on May 15th, 2008 11:37 AMPost a Comment (0)

He's Back - Mr Mortgage April Foreclosure Report
May 14th, 2008 4:45 PM

While this looks more at the California market it is a good resource to pay attention to. No matter where we live there are things happening that will effect us just the same. Pay attention to what he has to say about REO's.

 

Posted by James Mandl on May 14th, 2008 4:45 PMPost a Comment (0)

Don’t Overpay Property Taxes
May 14th, 2008 3:06 PM

I read this today and this is some great information no matter where you live.  

Don’t Overpay Property Taxes

May 12, 2008 | Wade Young

The tax man cometh, and it seems like he wants more every year. Fortunately, there is an easy way to pay less taxes this year than you paid last year — file a property tax appeal. According to the National Taxpayers Association, approximately 60% of taxable property in the U.S. is over-assessed. That’s the majority, folks! The majority of you — and the majority of your clients — are paying too much in property taxes. The good news is that filing an appeal is relatively easy, and 33% of appeals are successful. I just gave you a good reason to touch base with your clients.

Even though most people are overpaying when it comes to property taxes, almost no one is willing to go through the appeal process — even though it’s relatively easy. Simply contact your local county assessor’s office, and obtain the paperwork. Make sure to ask them what formula they use to do their calculation. This is important because many counties use a percentage of market value. That means that you could still be paying too much in property taxes even if your assessment is already below current market value. Also make sure to ask for a copy of your property card so that you can check it for errors. You want to make sure that the number of rooms and square footage are correct, for example.

When my wife was a young girl, she followed her father and an appraiser around the new home that her father had just built for their family. Her father is a funny guy, so he kept the appraiser amused. The appraiser allowed him to hold the opposite end of the tape measure, so he pulled it out past the edge of the house in an effort to inflate the square footage of the home. Because the appraiser was so far away, he couldn’t tell that he was being duped. This is a good example of why it’s important to check your property card for errors. Needless to say, my father-in-law isn’t totally honest. I find it sort of ironic that my father-in-law is also one of the only people I have ever known who faithfully files property tax appeals.

You may also be able to find comps in your neighborhood to support your case, although that will take a bit of digging into the public records. Also realize that one of the best times to appeal is when you have just gotten a mortgage — the reason being that you have a fresh appraisal in your hands. A lot of counties will allow you to use a recent appraisal as evidence in disputing your assessed value.

________________________________________________________________

In Texas be sure to check and make sure you are also getting your eligible exemptions. Filing a homestead exemption keeps your property taxes from being raised more than 10% in any given year. If you are a disabled veteran you have another exemption. If you would like to have someone else do the legwork in the appeals process for you try this firm. I am not making a recommendation only that they are available and do it on a contingency basis for 50% of the taxes saved. You still have the ability to do it all yourself.

Here is the link for the Bexar County Appraisal District exemption information page.

Posted by James Mandl on May 14th, 2008 3:06 PMPost a Comment (0)

Daily Rate Lock Recommendation - 05/14/2008 11:16:00 AM CST
May 14th, 2008 2:17 PM


Wednesday's bond market has opened in positive territory after this morning's economic data eased inflation concerns. The stock markets are showing gains with the Dow up 105 points and the Nasdaq up 22 points. The bond market is currently up 7/32, but we will likely still see an increase of approximately .250 of a discount point in this morning's rates as a result of weakness in bonds late yesterday.

The Labor Department reported that April's Consumer Price Index (CPI) rose 0.2% and that the core data reading rose only 0.1%. Both of those readings were 0.1% below forecasts, indicating that inflationary pressures at the consumer level of the economy were not as strong as expected. That is very good news for bonds and mortgage rates, however, limiting this morning's improvements are strong stock gains.

Tomorrow's only relevant economic news is April's Industrial Production report that gives us an indication of manufacturing sector strength by track ing production at U.S. factories, mines and utilities. It is expected to show a decline in output of 0.3%. A larger decline would be good news for bonds and mortgage pricing, but this report is considered moderately important so it will take a large variance from forecasts to cause much movement in rates.

We will also see weekly unemployment figures from the Labor Department tomorrow morning. Since this data tracks only a week's worth of claims, it likely will not have much of an influence on mortgage rates tomorrow. It is expected to show that 370,000 new claims for benefits were filed.

There are two pieces of data due to be posted Friday. April's Housing Starts is the first and is the least important of the two. This data measures housing sector strength and mortgage credit demand by tracking new permits and actual starts of new home construction. It is expected to show a decline in new starts from March's readings. But, since this report is not c onsidered to be of high importance to the bond market, it likely will have little impact on mortgage rates unless it varies greatly from forecasts.

The last report of the week is May's preliminary reading to the University of Michigan's Index of Consumer Sentiment late Friday morning. This index measures consumer willingness to spend and usually has a moderate impact on the financial markets. It is expected to show a reading of 63.0, which would be a slight increase from last month's final reading. If it shows a decline in consumer confidence, bond prices will likely rise. This should lead to mortgage rates moving slightly lower Friday.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my o pinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2008


Posted by James Mandl on May 14th, 2008 2:17 PMPost a Comment (0)

Daily Rate Lock Recommendation - 05/13/2008 11:01:00 AM CST
May 13th, 2008 2:25 PM


Tuesday's bond market has opened in negative territory following the release of this morning's only economic data. The stock markets are showing losses with the Dow down 80 points and the Nasdaq down 13 points. The bond market is currently down 13/32, which will likely push this morning's mortgage rates higher by approximately .250 - .375 of a discount point.

The Commerce Department gave us April's Retail Sales data this morning, showing a 0.2% decline in sales. That matched forecasts, however, is more volatile auto sales were excluded, sales rose 0.5%. That reading was well above forecasts of a 0.2% increase, meaning with exception to auto sales, consumers were more active than many had thought. This is bad news for bonds because consumer spending makes up two-thirds of the U.S. economy.

Tomorrow's only relevant report is April's Consumer Price Index (CPI). It measures inflationary pressures at the important consumer level of the economy. Its results will be watched closely and can lead to significant volatility in the bond market and mortgage pricing. Current forecasts are calling for increases of 0.3% and 0.2% respectively in the overall index and the core data readings. The core data is the more important of the two since it excludes more volatile food and energy prices.

There are three reports scheduled over the remaining two days of the week, but none of them are considered to be of high importance to the markets. We will see April's Industrial Production Thursday and April's Housing Starts along with May's preliminary reading to the University of Michigan's Index of Consumer Sentiment Friday morning.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 da ys from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2008


Posted by James Mandl on May 13th, 2008 2:25 PMPost a Comment (0)

Daily Rate Lock Recommendation - 05/12/2008 10:48:00 AM CST
May 12th, 2008 12:28 PM


Monday's bond market has opened up slightly despite early stock gains. The stock markets are kicking the week off in positive territory with the Dow up 75 points and the Nasdaq up 19 points. The bond market is currently up 6/32, but we will likely see a slight increase in rates as a result of weakness late Friday.

The week's first piece of data is April's Retail Sales report early tomorrow morning. This is an extremely important report for the financial markets as it measures consumer spending. Since consumer spending makes up two-thirds of the U.S. economy, this data can have a pretty significant impact on the markets. Current forecasts are calling for a drop in sales of 0.2% from March to April. A weaker than expected level of sales should push bond prices higher and mortgage rates lower tomorrow. However, a larger increase could fuel bond selling and lead to higher mortgage rates.

Wednesday's only relevant report is April's Consumer Price Inde x (CPI). It is similar to next week's PPI report, but measures inflationary pressures at the more important consumer level of the economy. Its results will be watched closely and can lead to significant volatility in the bond market and mortgage pricing. Current forecasts are calling for increases of 0.3% and 0.2% respectively in the overall index and the core data readings. The core data is the more important of the two since it excludes more volatile food and energy prices.

Overall, it likely will be a moderately active week for mortgage rates. Besides the week's important economic news, look for the stock markets to be a major influence on trading. I suspect we will see a fair amount of volatility in stocks, which should affect bond prices. Significant stock weakness should translate into bond gains and lower mortgage rates. However, if the major stock indexes rally, we could see mortgage rates move higher as a result.

If I were considering finan cing/refinancing a home, I would.... Float if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2008


Posted by James Mandl on May 12th, 2008 12:28 PMPost a Comment (0)

Daily Rate Lock Recommendation - 05/11/2008 10:42:00 PM CST
May 12th, 2008 12:23 AM


There are several important pieces of economic news scheduled to be released this week, but two stand out above the others. There are a total of five reports scheduled for release, so it can be considered a fairly active week. There is no relevant data due out tomorrow, so expect the stock markets to help drive bond trading and mortgage rates.

The first piece of data is the release of April's Retail Sales data early Tuesday morning. This is an extremely important report for the financial markets as it measures consumer spending. Since consumer spending makes up two-thirds of the U.S. economy, this data can have a pretty significant impact on the markets. Current forecasts are calling for no change in sales from March to April. A weaker than expected level of sales should push bond prices higher and mortgage rates lower Tuesday. However, a larger increase could fuel bond selling and lead to higher mortgage rates.

Wednesday's only relevant report is April's Consumer Price Index (CPI). It is similar to next week's PPI report, but measures inflationary pressures at the more important consumer level of the economy. Its results will be watched closely and can lead to significant volatility in the bond market and mortgage pricing. Current forecasts are calling for increases of 0.2% and 0.3% respectively in the overall index and the core data readings. The core data is the more important of the two since it excludes more volatile food and energy prices.

April's Industrial Production is Thursday's only relevant news. It measures manufacturing sector strength by tracking output at U.S. factories, mines and utilities. It is expected to show a 0.2% decline in production, indicating that manufacturing activity is slowing. A larger decline in output would be good news for the bond market and mortgage rates because it would indicate that the manufacturing sector is weaker than expected.

There are two pieces of data due to be posted Friday. April's Housing Starts is the first and is the least important of the two. This data measures housing sector strength and mortgage credit demand by tracking new permits and actual starts of new home construction. It is expected to show a decline in new starts from March's readings. But, since this report is not considered to be of high importance to the bond market, it likely will have little impact on mortgage rates unless it varies greatly from forecasts.





The last report of the week is May's preliminary reading to the University of Michigan's Index of Consumer Sentiment. This index measures consumer willingness to spend and usually has a moderate impact on the financial markets. It is expected to show a reading of 63.0, which would be a slight increase from last month's final reading. If it shows a decline in consumer confidence, bond prices will likely rise. This should lead to mortgage rates moving slightly lo wer Friday.

Overall, it likely will be a moderately active week for mortgage rates. Besides the week's important economic news, look for the stock markets to be a major influence on trading. I suspect we will see a fair amount of volatility in stocks, which should affect bond prices. Significant stock weakness should translate into bond gains and lower mortgage rates. However, if the major stock indexes rally, we could see mortgage rates move higher as a result.

If I were considering financing/refinancing a home, I would.... Float if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2008


Posted by James Mandl on May 12th, 2008 12:23 AMPost a Comment (0)

Newsletter-May 12th, 2008
May 12th, 2008 12:12 AM
RateLink ::
Newsletter-May 12th, 2008    
James "Jay" Mandl
Sr. Loan Officer
Texas Mortgage Capital Corp
13526 George Rd, Suite 106
San Antonio, TX 78230
Phone: (210)493-5300
Fax: (210)493-1211
E-Mail: jay@txmortgage.com
Website: http://www.mandlmortgage.com
    
 

Market Comment

Mortgage bond prices rose last week pushing mortgage interest rates lower. Stocks fell which helped bonds rally. Trading remained very volatile. Record high oil prices tempered improvements in mortgage interest rates as the fear of inflation continued to dominate the financial markets. OPEC blamed speculators and a weak dollar while some analysts expressed supply concerns associated with unrest in Nigeria. Foreign demand for US debt securities dwindled. For the week, interest rates on government and conventional loans fell by about 3/8 of a discount point.

The consumer price index data Wednesday will be the most important event this week. Retail sales, industrial production, capacity use, housing starts, and consumer sentiment data all have the potential to cause mortgage interest rate volatility.

LOOKING AHEAD

Economic
Indicator

Release
Date & Time

Consensus
Estimate


Analysis

Retail Sales

Tuesday, May 13,
8:30 am, et

Unchanged

Important. A measure of consumer demand. Weakness may lead to lower mortgage rates.
Business Inventories

Tuesday, May 13,
10:00 am, et

Up 0.5%

Low importance. An indication of stored-up capacity. A significantly larger increase may lead to lower rates.
Consumer Price Index

Wednesday, May 14,
8:30 am, et

Up 0.3%,
Core up 0.2%

Important. A measure of inflation at the consumer level. Lower than expected increases may lead to lower rates.
Industrial Production

Thursday, May 15,
9:15 am, et

Down 0.2%

Important. A measure of manufacturing sector strength. Weakness may lead to lower rates.
Capacity Utilization

Thursday, May 15,
9:15 am, et

80.2%

Important. A figure above 85% is viewed as inflationary. A decrease may lead to lower rates.
Philadelphia Fed Survey

Thursday, May 15,
10:00 am, et

None

Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates.
Housing Starts

Friday, May 16,
10:00 am, et

Down 0.7% Important. A measure of housing sector strength. Larger than expected decrease may lead to lower rates.
U of Michigan Consumer Sentiment

Friday, May 16,
10:00 am, et

63.0

Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

Market Conditions 

There is a Chinese proverb that states, "May you live in interesting times." It is often argued that the word interesting is meant to be a synonym for turbulent or dangerous. This phrase hits the bull’s-eye given the current state of the financial markets.

While stocks and bonds are swinging around wildly there is some good news. Interest rates for conforming and FHA/VA loans are still historically low by many standards.

However, low rates are not a given considering the escalating inflation fears that continue to dominate trading amid rising oil prices. Many analysts predict oil prices will continue to rise. While this doesn’t automatically equate to higher mortgage interest rates, rising energy prices are usually viewed as inflationary. Inflation erodes the value of bonds causing bond prices to fall and rates to rise. Other investors believe slowing growth and the credit crisis will eventually stem the rising prices. This scenario would generally be positive for bonds.

With so much uncertainty, a cautious approach to float lock decisions, especially heading in the inflation data this week, would be wise.


Copyright 2008. All Rights Reserved. Mortgage Market Information Services, Inc. The information contained herein is believed to be accurate, however no representation or warranties are written or implied.

  
   MORTGAGE MARKET IN REVIEW Newsletter-May 12th, 2008    
Posted by James Mandl on May 12th, 2008 12:12 AMPost a Comment (0)

The Appraisal Industry Is Caught In The Crossfire And The Cost Could Be High
May 9th, 2008 1:49 PM

Folks if you are a thrifty or even just a cost aware consumer this is something we all need to pay attention to. This would stop brokers and mortgage bankers like myself from ordering your appraisal. It would not give people in my position the oversight to choose an appraiser that can not only get things done in a timely manner so not to stall the process but it might be farmed out to appraisers that no absolutely nothing about the area in which you live potentially devaluing your home. In the end this is just another case of the government getting involved before the system has time to adjust itself and costing you more of your hard earned dollars. Read this over and then email me what you think.

From The Wall Street Journal:

Home-Appraisal Code May End Up in Court

By JAMES R. HAGERTY
May 8, 2008

“New York Attorney General Andrew Cuomo may face legal challenges to his effort to overhaul the way homes are appraised across the U.S. Such a case could help clarify how far state officials can go in setting public policy for the nation as a whole.

Earlier this year, Mr. Cuomo made an end run around federal regulators and Congress with a campaign against inflated home appraisals, which have contributed to the current wave of mortgage defaults. He threatened to sue government-sponsored mortgage investors Fannie Mae and Freddie Mac for allegedly failing to ensure that appraisers were shielded from pressure to pad their estimates. Appraisers have long maintained that many loan officers or brokers, whose pay depends on how many loans they complete, pressure them to come up with value estimates high enough to ensure approval of the loans.

In March, Fannie and Freddie, eager to avoid a legal battle, agreed with Mr. Cuomo on an appraisal code of conduct, which is due to take effect Jan. 1.

The plan has drawn fire from mortgage-industry groups and some federal regulators. Among other things, they say the code could raise costs for consumers and cause unnecessary disruption in the appraisal business.

Mr. Cuomo’s staff describes the code as an agreement between his office and the mortgage companies, backed by their main regulator, the Office of Federal Housing Enterprise Oversight. But Fannie and Freddie buy or guarantee the bulk of all U.S. home loans. So nearly all lenders would be bound by the code, making it a de facto national standard. Many people in the appraisal and mortgage industries are upset that Mr. Cuomo was able to rewrite the rules without giving Congress or federal banking regulators time to weigh in.

Unless Mr. Cuomo works with the industry to revise the code, “somebody out there is likely to file litigation,” says Steve O’Connor, a senior vice president at the Mortgage Bankers Association. Roy DeLoach, executive vice president of the National Association of Mortgage Brokers, says legal action against the planned code is “one option” his trade group will consider.

The mortgage brokers and others argue that the code of conduct is tantamount to federal regulation and so is subject to the U.S. Administrative Procedures Act. The act requires federal agencies seeking to make new rules to first publish a proposal and solicit public comments on it, says Raymond Natter, a lawyer at the Washington firm of Barnett Sivon & Natter.

After the comment period, the agency must explain its reasons for adopting the rules. It also must discuss how the proposal will affect small business and steps taken to minimize the regulatory burden, Mr. Natter says.

In an interview, Mr. Cuomo said he was “totally confident in the legal process used.” Both he and Ofheo’s director, James Lockhart, promised to consider suggestions for changes in the code.

The code would prohibit lenders and their representatives from prodding appraisers to inflate their estimates. Brokers or bank employees involved in making loans wouldn’t be able to choose appraisers, and lenders couldn’t make loans on the basis of appraisals from their employees or companies they control.

The Office of Thrift Supervision, which regulates savings-and-loan companies, said last week that requiring lenders to outsource appraisals “will not ensure appraiser independence and may make regulatory enforcement more difficult.”

What does this tell ya!

Posted by James Mandl on May 9th, 2008 1:49 PMPost a Comment (0)

Daily Rate Lock Recommendation - 05/09/2008 11:39:00 AM CST
May 9th, 2008 1:28 PM


Friday's bond market has opened in positive territory following early stock weakness. The stock markets are showing losses with the Dow down 106 points and the Nasdaq down 8 points. The bond market is currently up 9/32, which should improve this morning's mortgage rates by approximately .250 of a discount point.

March's Goods and Services Trade Balance report was today's only economic data on the calendar. It revealed a $58.2 billion trade deficit that was well below forecasts. However, this data is not considered to be of high importance to the bond market or mortgage rates and therefore has had little impact on the markets today.

This was a light week for economic releases, so I did not expect to see much fluctuation in the markets and mortgage rates. I still feel bond yields are at the upper end of a cycle and that stock prices have more room to fall. I am expecting stocks to move lower, making bonds more attractive to investors. This shou ld lead to funds shifting out of stocks and into bonds in the near future. Accordingly, I am holding the float recommendations for the time being.

Next week is busier in terms of economic reports than this week was. Generally speaking, it will be an average week with five relevant reports on tap. However, two of those are considered to be very important to the markets and mortgage rates. There is no relevant news scheduled for release Monday, but look for details on next week's event in Sunday's weekly preview.

If I were considering financing/refinancing a home, I would.... Float if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best inter est of all/any other borrowers.

©Mortgage Commentary 2008


Posted by James Mandl on May 9th, 2008 1:28 PMPost a Comment (0)

Daily Rate Lock Recommendation - 05/08/2008 11:38:00 AM CST
May 8th, 2008 7:22 PM


Thursday's bond market has up sharply, continuing yesterday's late rally. The stock markets are also in positive territory with the Dow up 56 points and the Nasdaq up 11 points. The bond market is currently up 27/32, which should improve this morning's mortgage rates by approximately .250 of a discount point.

The only economic news posted this morning were the weekly unemployment figures from the Labor Department. They said that 365,000 new claims for benefits were filed last week. This was a smaller number than was expected, but fortunately has not affected bond prices or mortgage rates.

Yesterday's 10-year Note auction was not met with a very good demand. Despite this we saw bond prices rise during afternoon trading as the stock markets faltered. This is a sign that funds were being shifted from stocks into bonds, which may indicate an expectation of weakness in stocks. If the major stock indexes do begin to fall, we should see bonds benefi t and mortgage rates move lower.

Today's 30-year Bond sale could very well have the same result as yesterday's auction did. However, it appears that investors may not be so quick to react to its results. With no important economic data on tap tomorrow, we could see further gains in bonds, especially if stocks turn south.

March's Goods and Services Trade Balance report will be released early tomorrow morning. This report gives us the size of the U.S. trade deficit but likely will not have much of an impact on the bond market or mortgage pricing. It is expected to show a $61.3 billion trade deficit.

If I were considering financing/refinancing a home, I would.... Float if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do i f I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2008


Posted by James Mandl on May 8th, 2008 7:22 PMPost a Comment (0)

Daily Rate Lock Recommendation - 05/07/2008 11:57:00 AM CST
May 7th, 2008 2:02 PM


Wednesday's bond market has opened flat despite favorable economic news. The stock markets are mixed with the Dow down 20 points and the Nasdaq up 8 points. The bond market is currently nearly unchanged form yesterday's closing level, but we will likely see a small increase in this morning's mortgage rates as a result of weakness in bonds late yesterday.

The Labor Department gave us today's only relevant economic news with the release of the 1st Quarter Productivity and Costs data. It showed a 2.2% increase in productivity, which exceeded forecasts by a fairly large margin. This is good news for bonds because higher levels of productivity allow the economy to expand with low levels of inflation.

The first of this week's two most important Treasury auctions will take place today. The Treasury Department will hold a 10-year Note sale today and a 30 Year Bond sale tomorrow. Results of the auctions will be posted at 1:30 PM ET. If they were met with a strong demand from investors, we could see bond prices rise enough during afternoon trading to cause downward revisions to mortgage rates. However, lackluster bidding could lead to higher mortgage pricing this afternoon and/or possibly tomorrow.

There is no relevant economic data scheduled for release tomorrow except the weekly unemployment figures from the Labor Department. They are expected to report that 375,000 new claims for benefits were filed last week. A significantly larger number would be good news for bonds and mortgage rates, while a sizable decline could hurt rates. If they report a figure anywhere close to the 375,000, this data will likely have little impact on the markets or mortgage rates tomorrow.

If I were considering financing/refinancing a home, I would.... Float if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 d ays... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2008


Posted by James Mandl on May 7th, 2008 2:02 PMPost a Comment (0)

Mr Mortgage Is Back - Is Now The Right Time To Buy A Home?
May 6th, 2008 6:19 PM
Posted by James Mandl on May 6th, 2008 6:19 PMPost a Comment (0)

Mortgage Lenders Vs. Credit Card Issuers - Which Is Worse?
May 6th, 2008 5:02 PM

I read this today and I couldnt believe my eyes.

I’d Rather Sell Used Cars….

Thursday, May 01, 2008, 6:48:54 PM | Gina Gardner

….than be associated with a sleazy lending practice. As I’m sure all of us would. So I kind of gagged when Ken Clayton, counsel for the American Bankers’ Association (ABA) claimed that credit card issuers are more consumer-friendly and don’t deserve the same scrutiny applied to mortgage lenders. “Credit cards are a highly regulated industry,” Ken Clayton, counsel for the ABA said. “The parallel doesn’t work.”Uh, huh. Please, Ken, don’t remotely connect mortgage lenders with you credit guys — or I’ll have to take another shower. Somehow, I think that if mortgage lenders could arbitrarily raise our clients’ rates for no apparent reason, apply rate increases retroactively, charge interest on our interest, and pull “bait and switch” scams with “pre-approved” offers, half the country would be in default on their mortgages and lending pros would be living with body guards 24/7!Mortgage borrowers are far better protected. Unbreakable agreements (at least on the lenders’ side), rate caps, and clearly spelled out terms and conditions should mean no surprises for these borrowers. And yet misguided folks are missing mortgage payments to keep thuggish credit card companies happy. And the cardholder’s reward? A rate increase when the universal default clause kicks in.

So I for one am happy to see some reform. If these proposed laws take hold and have the effect of keeping payments manageable for homeowners perhaps we’ll see less mortgage default down the road.

Some genius acctually wants you the smart educated consumer and Congress which I wish I could say was as educated as you are to believe that they, the credit card issuers, are much more regulated than the mortgage lenders and should have much less scritenty about their business practices. What a CROCK!!!! Those guys are the biggest sharks and would sell there own mothers, and grandchildren up the river for a lollypop. Dont believe me? Try being late on a credit card and see what they tell you to do to pay the bill.

Maybe you remember long before the mortgage crisis seeing all the heads of the credit card issuers sitting in front of a congressional comittee explaining how they raise the interest rates of cards of people who have never been late on their card just because they were late on another companies card. Doesnt seem real ethical does it? Congress didnt think so either. Funny how they got dragged in to explain themselves long before mortgages were even becoming a massive problem and only when it did become a problem fall off the radar due to the massive size difference. Take a real good look at who your credit cards are with and if something doesnt seem right COMPLAIN about it to anyone or any agency that will listen. They like to act like they are free from sin by casting the first stone but from the looks of things they are much much worse.

Stand up for your rights as a consumer and as the author said when your done with them take a shower to wash off the slime.

Posted by James Mandl on May 6th, 2008 5:02 PMPost a Comment (0)

Daily Rate Lock Recommendation - 05/06/2008 11:13:00 AM CST
May 6th, 2008 12:31 PM


Monday's bond market has opened in positive territory even with little news to influence trading. The stock markets are mixed with the Dow down 35 points and the Nasdaq up a couple of points. The bond market is currently up 7/32, which will likely improve this morning's mortgage rates by approximately .125 - .250 of a discount point.

There is no relevant economic news scheduled for release today. In fact there is little data scheduled to be posted this week. The Labor Department will release its 1st Quarter Productivity and Costs data early tomorrow morning. This information helps us measure employee productivity in the workplace. High levels of productivity help allow low-inflationary economic growth. If employee productivity is rising, the bond market should react favorably. However, a decrease could raise inflation concerns that cause bond prices to drop and mortgage rates to rise Wednesday morning. It is expected to show a 1.5% increase in productivity .

March's Goods and Services Trade Balance report will be released early Friday morning. This report gives us the size of the U.S. trade deficit but likely will not have much of an impact on the bond market or mortgage pricing. It is the least important of this week's data.

In addition to this week's economic data, we also have Treasury auctions that can influence bond trading and affect mortgage rates. The Treasury will hold a 10-year Note sale tomorrow and 30 Year Bond sale Thursday. Results of the auctions will be posted at 1:30 PM ET. If they were met with a strong demand from investors, we could see bond prices rise enough during afternoon trading to cause downward revisions to mortgage rates. However, lackluster bidding could lead to higher mortgage pricing those afternoons.

If I were considering financing/refinancing a home, I would.... Float if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2008
Posted by James Mandl on May 6th, 2008 12:31 PMPost a Comment (0)

Daily Rate Lock Recommendation - 05/05/2008 11:52:00 PM CST
May 5th, 2008 1:26 PM


Monday's bond market has opened fairly flat despite stock weakness. The major stock indexes are showing losses with the Dow down 53 points and the Nasdaq down 6 points. The bond market is currently down 3/32, which will likely push this morning's mortgage rates higher by approximately .125 of a discount point over Friday's rates.

This week is very light in terms of economic releases scheduled to be posted. There are actually three reports scheduled that are worthy of addressing, but none of them are considered to be highly important to bonds and mortgage rates. The Institute for Supply Management (ISM) Services Index was posted this morning and came in stronger than expected. However, the variance between the actual reading and the forecasted reading was not enough to cause much concern in the bond or mortgage markets.

The Labor Department will release its 1st Quarter Productivity and Costs data early Wednesday morning. This information helps u s measure employee productivity in the workplace. High levels of productivity help allow low-inflationary economic growth. If employee productivity is rising, the bond market should react favorably. However, a decrease could raise inflation concerns that cause bond prices to drop and mortgage rates to rise Wednesday morning. It is expected to show a 1.5% increase in productivity.

March's Goods and Services Trade Balance report will be released early Friday morning. This report gives us the size of the U.S. trade deficit but likely will not have much of an impact on the bond market or mortgage pricing. It is the least important of this week's data.

In addition to this week's economic data, we also have Treasury auctions that can influence bond trading and affect mortgage rates. The Treasury will hold a 10 year Note sale Wednesday and 30 Year Bond sale Thursday. Results of the auctions will be posted at 1:30 PM ET. If they were met with a strong demand fr om investors, we could see bond prices rise enough during afternoon trading to cause downward revisions to mortgage rates. However, lackluster bidding could lead to higher mortgage pricing those afternoons.

Overall, I am expecting to see a fairly quiet week in mortgage rates, especially compared to last week's volatility. As long as the stock markets remain fairly calm, I think the day to day changes in mortgage rates will remain relatively small.

If I were considering financing/refinancing a home, I would.... Float if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2008


Posted by James Mandl on May 5th, 2008 1:26 PMPost a Comment (0)

Daily Rate Lock Recommendation - 05/01/2008 11:39:00 PM CST
May 1st, 2008 12:56 PM


Thursday's bond market has opened in positive territory despite the release of stronger than expected economic data. The stock markets are reacting positively with the Dow up 50 points and the Nasdaq up 40 points. The bond market is currently up 8/32, which with yesterday's late gains should improve mortgage rates by approximately .375 - .500 of a discount point over yesterday's morning rates.

There were two pieces of monthly data posted this morning. The first was March's Personal Income & Outlays report that showed personal income fell short of forecasts with a 0.3% rise but that spending rose 0.4% when it was expected to rise only 0.2%. That means that consumers spent more than expected and that is considered bad news for bonds.

The Institute for Supply Management (ISM) released their manufacturing index for April late this morning. It showed a reading of 48.6, meaning that manufacturer sentiment remained unchanged from March to April. Anal ysts were expecting to see a small decline, so this report could also be taken as a negative towards bonds. However, the market seems to not be too concerned with it. Trader are probably waiting for tomorrow's data before making any moves.

The almighty Employment report will be released early tomorrow morning, giving us April's employment statistics. This is where we may see a huge rally or major sell-off in the bond market and large changes in mortgage rates. The ideal situation for the bond and mortgage markets would be an increase in the unemployment rate and fewer than expected new payrolls. Just how much of an improvement or worsening depends on how much variance there is between forecasts and actual readings. This could turn out to be a wonderful day in the mortgage market, but it also carries risks of seeing mortgage rates move higher if the Labor Department posts stronger than expected readings. Current forecasts are calli