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Blog

12 Apr

Welcome to Spring – Home Buying Time!!

With Spring upon us, and new buyers out looking for houses, we thought today might be a good time to review the basics of what lenders look for as they decide to approve (or deny) mortgage applications. For at least the last two decades we have heard them called “The 4 C’s of Underwriting”- Capacity, Credit, Cash, and Collateral. Guidelines and risk tolerances change, but the core criteria do not.CAPACITYCAPACITY is the analysis of comparing a borrower’s income to their proposed debt. It considers the borrower’s ability to repay the mortgage. Lenders look at two calculations (we call ratios). The...

17 Jan

How to ensure your home isn’t under-insured

For many of our clients, the following information is view similarly to going to the dentist. That said, it's mission critical that your family review the following and please get with one of our agents for a policy review.Fact is, most homeowners have insurance. All homeowners who have a mortgage must have insurance. The question is: do you have enough insurance? Will your policy cover you if the worst happens – if your house is totally destroyed and you need to rebuild? According to the Insurance Information Institute’s 2011 Insurance Pulse Survey, nearly half (48 percent) of all homeowners in...

13 Dec

Securities Lending – Share Hypothecation

For the last several months, Efinity Finanical has quietly grown in the Dallas Fort Worth market. Those clients already presently working with our advisors are well aware of the weekly commentary we publish. Last week's was so good we felt it should repost here on the Efinity Report. Enjoy.Securities Lending – Share HypothecationOne of the main issues facing the financial world today is the difficulty investors have estimating the effect that a specific financial issue, such as a 50% haircut on Greek bonds, may have on the global or domestic financial and banking system. So why can’t the people who...

03 Nov

Damn’d if you Do and Damn’d if you Don’t

A state court judge has ruled that Illinois can move forward with a lawsuit alleging that Wells Fargo & Co. steered minority borrowers into risky mortgages at the height of the housing bubble. Important to note the court DID NOT find that Wells Fargo engaged in discriminatory lending but the Illinois action is the first fair-lending lawsuit brought by a state attorney general against a national bank to reach discovery, attorneys familiar with the case said. After discovery, Illinois may be able to bring the case to trial. We believe this is a poor decision. Here are the underlying issues...

14 Oct

Creative planning but …

There are new developments between the Obama administration and a federal housing regulators who are considering a program to draw private investment back into the government-dominated residential mortgage market by having Fannie Mae and Freddie Mac sell slices of securities that wouldn't carry a federal guarantee but would pay a higher interest rate than current mortgage-backed bonds.No decisions have been made, but officials believe a small pilot program could be rolled out sometime next year, according to people familiar with the matter.Officials see it as a step toward reducing the $10.4 trillion U.S. mortgage market's dependence on government-controlled mortgage companies...

02 Jul

You can lead an Economy to Water, but can you make it Create Jobs?

You can lead an Economy to Water, but can you make it Create Jobs? So it‟s now official, the U.S. Economy is going through a “soft spot”. According to the U.S. Federal Reserve Chairman Ben S. Bernanke, speaking last week at an International Monetary Conference in Atlanta: • "The U.S. economy is recovering from both the worst financial crisis and the most severe housing bust since the Great Depression, and it faces additional headwinds ranging from the effects of the Japanese disaster to global pressures in commodity markets. In this context, monetary policy cannot be a panacea." • …the economic...

31 May

As we called it, Double Dip Housing has arrived

Here are latest from S&P/Case Shiller report out this morning. • 4.2 percent decline in Q1 of 2011, 2.9 percent from one year ago. • The 10 cities fell .6 percent in March• Top 20 cities fell .8 percent in MarchWhat's probably most concerning and begs to question, what happened to the home buyer tax credits which were supposed to stimulate the economy and housing market (not necessarily in that order)?Perhaps the best news to come out of this will be evidence that mortgage rates will remain low as yields become subject to basic economic supply and demand. With new...

16 Apr

Someone else seems to “get it”

Rising food, gas prices lift U.S. consumer inflation http://www.msnbc.msn.com/id/42605692/ns/business-eye_on_the_economy/By CHRISTOPHER S. RUGABERWASHINGTON— Americans are paying more for food and gas, a trend that could slow economic growth in the months ahead. The Consumer Price Index rose 0.5 percent in March, the Labor Department said Friday. That matched February's increase, the largest since the recession ended in June 2009. In the past 12 months, the index has increased 2.7 percent, the biggest rise since December 2009. Excluding the volatile food and gas categories, the so-called core index rose 0.1 percent and it is up only 1.2 percent in the past year.Consumers...

07 Apr

Who can you trust?

Here's a question I would like to pose for the loyal Efinity audience. Is the economic environment in this country really improving or are we all being fed a stream of special interest commentary which want us to think things are getting better? I have two separate examples for your collective review which point to the latter. I for one have a HUGE problem with this. It's important to note that I include our government included as one of the special interest groups. Example #1As reported by the Wall Street Journal, Federal Reserve Chairman Ben Bernanke Monday downplayed inflation fears...

11 Feb

If you won’t listen to us… perhaps the writers with the AP will sway you

Era of super-low mortgage rates is OVER30-year benchmark rises to 5.05 percent from 4.81 percent The average rate for a 30-year home loan rose above 5 percent this week for the first time since last April — just as Americans are feeling more secure in their jobs and confident about the economy, and just before the big spring home-buying rush. Freddie Mac said Thursday that the average rate was 5.05 percent, almost a full percentage point higher than in November, when it hit a 40-year low. Economic signals suggest the recovery is gaining momentum. New claims for jobless benefits came...