Where R Rates / MBS Market Update
IT’S FED DAY
Fed Day is always a fun day to find out what the Fed is thinking and planning. There are no expectations for a rate cut today but they will be guiding us on the outlook for the rest of the year. Right now the guesstimate is 2 – 3 by end of year and they will confirm or update this today.
They will also be giving us their summary of economic projections which involve inflation, unemployment, GDP, Tariffs and everything else you can think of that impacts our economy.
The press conference starts at 2:30 PM Eastern. Click this link to watch The Fed – Live Video.
The average 30 year fixed rate went from 6.67% to 6.72% week over week. Boooooo.
Mortgage applications overall were down 6.2% week over week. Applications to purchase were pretty much unchanged and refinance applications were down 13% week over week which is normal when we see an increase in rates.
Other than waiting on the Fed announcement not much else happening today.
| YESTERDAY CONV 5.5% – UP 6 CONV 6.0% – UP 10 GOVT 5.5% – UP 0 GOVT 6.0% – UP 7 10 YR NOTE – DOWN 2 TO 4.28 DOW JONES – DOWN 260 |
| SO FAR TODAY CONV 5.5% – DOWN 9 CONV 6.0% – DOWN 7 GOVT 5.5% – DOWN 7 GOVT 6.0% – DOWN 6 10 YR NOTE – UP 2 TO 4.30 DOW JONES – UP 97 |
GREEN is GOOD for Rates – RED is BAD for Rates
Product & Guideline Highlights Ad Mortgage Products
NON-PERMANENT RESIDENT GUIDES
I created this email to send to clients when they mention the words Visa or EAD or Foreign National. These can be quite confusing and I thought I would share this with everyone who is in the same boat.
This is for AD Mortgage and does not include FHA, VA or USDA. Just Conventional and Non-QM. Govt loans will be added after April 1.
If you want an email version of this just hit reply to this email and ask for it and I will send it right over. You don’t have to be a client to get it. I will send to anyone.
PERMANENT RESIDENT ALIENS – GOOD TO GO!
Permanent Residents carry a GREEN CARD and no Visa.
If they have a valid GREEN CARD then they qualify for all products.
Note: If they leave the U.S. for more than 12 months they may have a returning resident Visa.
FOREIGN NATIONALS – Non-QM Only
FOREIGN NATIONAL ELIGIBLE VISA TYPES – CLICK TO OPEN
Allowed on DSCR products only.
- EAD Card is not required if Visa is active.
- If closing purchase in Florida made to foreign principals, persons and entities must have signed buyer’s affidavit published by Florida Land Title Association.
NON-PERMANENT RESIDENT ALIENS
NON-QM – NON-PERMANENT ELIGIBLE VISA TYPES – CLICK TO OPEN
CONVENTIONAL – NON-PERMANENT ELIGIBLE VISA TYPES – CLICK TO OPEN
NEEDED ITEMS
- Valid SS# & Acceptable Visa (See above link)
- If Visa is expired must have I-797A with I-94 and EAD Card.
- If EAD expires within 6 months must prove evidence of extension request or letter from employer, they will continue sponsorship.
- If EAD expires within 120 days must prove they have applied for an extension or letter from employer, they will continue to sponsor.
- Non-QM Only – Cannot be expired as of Note date.
- If expired on Note date must have acceptable proof of application for renewal documented by receiving agency (e.g. Filing receipt, letter with case receipt confirmation).
- VISA WAIVER PROGRAM AND CANADA & BERMUDA CITIZENS – NON-QM
- Visa is not required if verified through the U.S. Dept of State Website. – CLICK HERE
- Must have 60 days authorization remaining on application date from ESTA Authorization from U.S. Customs Border and Protection – CLICK THIS LINK
- ESTA not required for Canada and Bermuda Citizens.
- ITIN (Individual Taxpayer Identification Number) – Allowed on Non-QM Super Prime and DSCR Only.
- Must have valid unexpired Govt Photo ID.
- Max DTI = 50%.
- Borrower must contribute 5% of own funds on Primary and 2nd Home.
- Borrower must contribute 20% on Investment. If >80% LTV/CLTV no gifts allowed.
- No Power of Atty allowed.
INELIGIBLE BORROWERS
- Conventional – Foreign Nationals.
- Conventional & Non-QM – Non-U.S. Citizen with no lawful residency status.
- Conventional & Non-QM – Anyone with diplomatic immunity or other exclusions from U.S. jurisdictions.
NON-QM ELIGIBLE PRODUCTS
- Super Prime
- Prime
- DSCR
CREDIT HISTORY
Conventional –
- May have less than 2-year credit history if meets AUS requirements and receive approve findings.
- No credit is not an option for conventional financing.
Non-QM
- Credit report required on all files for borrowers with a SS number. Ok not to have credit but one must be pulled to confirm.
- For no scores, the lowest score eligible for product will be used for pricing.
- In addition, a 2-year full housing history is required.
- ITIN number allowed for borrowers with no SS number.
- ITIN must be for the purpose of reporting passive income sources and is not employed in the U.S.
- QUALIFYING U.S. CREDIT REPORT
- Must have one active tradeline opened for 24 months with no derog. If do not meet minimum must have bank reference letter.
- Bank reference letter requirements. CLICK HERE
- QUALIFYING FOREIGN CREDIT REPORT
- If borrower has U.S. credit with one score it will be used for product and pricing eligibility.
- If no U.S. credit it will be priced as a no score.
- Must have 3rd party verification of residence where borrower lives.
- CPA or tax preparer letter.
- Utility or third-party bill, tax notice, govt or verifiable letter specifying borrower primary address (dated within 90 days of Note date).
- We will only include the PITI of residence abroad if listed on 1003. If not listed, it will not be included in DTI.
INCOME REQUIREMENTS – Foreign National Full Doc Investment Properties
Word of Advice – Just go DSCR.
FULL DOC? – CLICK HERE
ASSETS – NON-QM
- Must be seasoned 30 days.
- Must be verified in U.S. dollar at the current exchange rate via www.xe.com or the Wall Street Journal conversion table.
- Can use overseas business funds transferred to personal account. Must have signed CPA letter stating where overseas business is from and nature of the business.
- FOREIGN NATIONAL BORROWERS must have 12 months PITIA reserves for the subject property.
Got questions? Just ask.
Jackism of the Day
TAKE AN INCH
We have all heard the phrase give them an inch and they will take a mile.
That is usually where we give in to our child just a little bit and they take it as lenience to do much more. Or if we give a client a little something they decide they want a whole lot more since you were able to give a little.
Let’s flip that on it’s side this morning and see how we can take advantage of that ourself.
As they say an inch of action is far greater than a mile of intention.
I do not tell you guys anything new on any given day. My only hope is to remind you of what you already know on a daily basis. Sometimes all it takes is that one phrase that is heard on the right day at the right time to kick start something new in our life.
My hope today is that will happen to someone today. I say this because it happened to me this morning.
I have been thinking about doing something specific on Wednesdays and have had good intentions to do so but just have not pulled the trigger. Today, I am pulling that trigger to act on something I have been intending to do for quite some time.
If you take an inch today, you may find yourself a mile down the road from where you were is the point.
Nothing in this world happens without first acting on something.
Newton’s Third Law of Motion or should I say Action. For every force (action) exerted, there is an equal and opposite force (action) exerted.
If you do something. Something will happen in return. If you do nothing, nothing will happen in return.
What have you been wanting to act on for some time? Well, go act on it : )
