Hi Students!
Here’s the follow up from today’s class.
This is an interesting website showing how Hellickson has been spending his time lately.
I had a question for myself: What is the current federal funds rate? Here’s a nice explanation from bankrate. The next question I asked myself was, “could the fed funds rate go lower?” I think the answer is yes. The fed could also take the FF rate negative. That would be interesting.
Here’s a blog post I wrote yesterday that answers a similar question that was asked in class about why banks don’t just slam-dunk approve short sales when the offer is lower than what they consider fair market value.
Here’s the graph showing that 96.5 percent of all loans are being backed by the government. Thanks again to CR who allows me to use his graphs in the classroom. Please use this to educate your sellers. Help them understand that underwriting guidelines need to tighten further in order to attract investors to buy residential mortgage backed securities (RMBS) again.
Here is a nice graph showing agency REO inventory and the follow up from Tom Lawler adding private label RMBS REO inventory.
CR updates the unofficial problem bank list every Friday night or Saturday. Check out the embedded excel. I wonder which WA State bank will fail next?
Here’s what we should all know by heart. Some of you probably know the concept but don’t have the phrase memorized. If I see you in Safeway, even if it’s 10 years from now, be prepared to answer the question: What does Section 8 of RESPA say?
Jillayne says the FHA Short Refi program may end up being a big nothingburger unless we can find some lenders willing to originate these loans. (Remember, FHA is not a lender, it’s an insurance program.) I put an APB out on twitter and facebook asking my peeps to tell me who’s doing short refis. I will update this post in the comment section with the answer.
Thanks to Paul Frink for carrying ALL my gear up and down the stairs today. I feel very cared-about when I teach at PNW Realty Fed Way!