So glad Barclay's, a reputable company, bought Lehman

The mortage broker ruined the globalo economy. I got tired of hearing that over the last several years. As we all learn from the economic diasaster that was 2007-present, it is clear to me that some things will never change. And somethings are the insatiable greed of our best and brightest in the financial world. Whether it's a $50 billion dollar ponzi scheme or trillions of dollars of loans that should never have been made. You can be sure that where there is a will there will be someone making the way. In today's case of greed and corruption - I give you pure cost of money manipulation....And huge settlements, err I mean payoffs to the government. I can guarantee you the banks made more with the fraud than with the penalties and fines they paid. So was this a good business decision? And is a business decision always good when it makes money?

http://finance.yahoo.com/news/barclays-pay-400m-plus-settle-130159247.html

What does it mean rates will stay low for the near-term

I swear the ubersmart financial prognosticators of the world have a way of stating opinions with out every being specific. A client commented to me yesterday that he was going to wait a little and try to improve his credit scores, as he said, "I think rates will stay low for a long time, so I am in no rush". It is true that rates will probably stay low for a good amount of time (see I did it there too).

The real question of course is, what is "low"?  Well everything I read means low rates are considered lower than 5%. Around 29 million people still have mortgages over 5%. Big number. So clearly many have not, or been unable to, take advantage of today's super-duper-duper low rates. These rates are artificially low, and as such, any delay in taking advantage could be foolish and just a plain bad decision financially.

The government is buying the vast majority or mortgage production and they are continued to be involved. But big changes to banking rules and the projected devaluing of residential servicing for the depositories could spell big increases in the cost of mortgages going forward. Any increased incosts for banks and non-depositories will be directly reflected in the rate and price of mortgages.

I've sold double digit mortgage rates. I've seen rates rise 4% in a year. Don't think it can't or won't happen again. I can promise you, that by the time you realize mortgage rates have risen dramtaically, you will already be too late.

A bird in the hand is worth two in the bush.

Summer Lending...happened so fast...

The beach was perfect this weekend. These are the weekends you really have to wonder why everyone doesn't live in California. Rates continue to stay low and the Fed recently announced continuation of the Operation Twist, which is basically providing funding for all you guys refiancing your mortgages. I find it ironic. Twist, implies to me, to manipulate, and I think that everyone would agree the markets are manipulated. So you want your piece of the government cheese? Then refinance your mortgage that is underwater or purchase a new primary residence with 1% down. Or buy a investor property with 10% down. Financing is out there, and the market is being manipulated to keep that borriwing as cheap as possible. Take advantage.

A real estate bottom?

Harvard Study: Bottom Has Been Reached It's one thing when special interests declare "the end" of the housing debacle, but it's another when such an august organization as the Joint Center for Housing Studies at Harvard University calls the bottom.

QEIII...doesn't look like it yet..rates are still lower today...amazing.

The U.S. economic recovery faces significant risks, including from the European sovereign debt crisis and uncertain U.S. fiscal policy, Fed Chairman Ben Bernanke said in testimony prepared for a congressional hearing on Thursday.

The Fed chairman stopped short of signaling Fed action to combat these risks, other than to say that the Fed remained “prepared to take action” to protect the U.S. economy and financial system if stresses on the financial system escalate.

HARP refinances

Very specialized. Apply on my website today. Www.michaelfoote.com ....also QEIII comments coming shortly.

HARP refinances topped 180,000 in the first quarter of this year compared to approximately 93,000 in the fourth quarter of 2011. Last fall, of course, was when several changes took place: the removal of the LTV ceiling and the elimination/lowering of fees for certain Fannie or Freddie borrowers. Per the FHFA, one in seven refinanced loans during the quarter was through HARP - in March alone, there were nearly 80,000 HARP refinances, a quarter of them on loans with LTVs greater than 105 percent. More than 4,400 loans with LTVs greater than 125% were refinanced since the beginning of the year; over half these loans were refinanced in the states of California, Florida and Arizona.

June Gloom? Not really.

Will the Fed lower rates further? Are we in a recession... again? Is Europe screwed? The answer is probably yes to all three. Rates are just ridiculous, programs are extremely liberal. Believe me, the news talks about it being hard to get a loan done, and it's not. And while it can be a slow process, there are amazing programs available today, and many of these programs can't be offered by the big banks and large direct lenders. Your mortgage broker again, can provide the best value. FHA, Conventional, Super Jumbo, VA, Portfolio, Investor Purchase and Refinance, HomePath, HomeStyle, 203K, HUD $100 down....Heck we even have a bank statements as income documentation program these days. 

Want to check out a great CPA, vist www.hayniecpa.com and ask for Mike Zurovski, a great guy and very talented.

On to personal news. The CrossFit/Paleo diet combo is starting to take hold. New record weight of 219 down from 250 two years ago, and now the weight drop is starting to pick-up speed. I have to say dieting is the hardest part. Just this morning we had donuts for Dad's day and I obtained from my free Crispy Creme deliciousness... No heart burn and wasted calories, but passing on a donut, let's be honest, is just sad.  And going out with the family for dinner and special occasions makes it hard to not "give in". Last week was a bit choppy with ball games and dinners...Definitely paying for it this week. But we are committed and staying on track, are you?

Looking for a great Real Estate firm, try California Property Resources, serving selected California markets.
Specializing in distressed situations. They like the tough stuff!