Effective January 1, 2019, Carrington Mortgage Services, LLC (CMS) will implement the following Underwriting Fee schedule for all wholesale loan submissions:
Broker Disclosed Loans: All broker-disclosed submissions must include the updated underwriting fee listed on the broker’s initial Loan Estimate.
When Loan Setup receives a broker-disclosed submission without the underwriting fee disclosed correctly and the loan has not been locked, Setup will give the broker/AE an opportunity to pre-lock the loan with a Fee Buyout prior to rejecting the submission.
As a Nation, we pause to mourn the passing of George Herbert Walker Bush, the forty-first President of the United States, on November 30, 2018.
His storied life was filled with accomplishment. When he volunteered for duty in the Second World War, George Bush was the youngest aviator in the U.S. Navy. He flew 58 combat missions while defending our country’s freedom. After returning home and completing his education, raising a family, and starting a business, his life of public service resumed. First, as a member of Congress, then as Ambassador to the United Nations, Chief of the United States Liaison Office in China, Director of Central Intelligence, Vice President, and, finally, as President of the United States.
George Bush brought to the White House a devotion to American values and a steadfast determination to guide the United States toward becoming “a kinder, gentler nation.” In his Inaugural Address, he pledged to use American strength as “a force for good.” He was true to his word. With his steady leadership, George Bush guided our country through the successful and peaceful end of the Cold War and into the period of prosperity that followed.
In honor of his life of dedication, Wednesday, December 5, 2018, has been declared a National Day of Mourning throughout the United States. On that day, Carrington offices in the U.S. will be closed for a paid holiday, that we might ponder the remarkable legacy and pay our respects to the memory of President George H.W. Bush. We invite Carrington Associates to join the many millions of people around the world who share our grief in this solemn observance.
The Carrington Mortgage Services (CMS) Lock Desk will be closed in observance of President George H.W. Bush’s death on Wednesday, December 5, 2018 which has been designated as a National Day of Mourning. The financial markets will be closed and no rate sheets will be produced and no rate locks will be allowed. Normal Lock Desk hours will resume Thursday, December 6, 2018.
CMS will be staffed to carry out substantially all of our business functions on Wednesday, December 5, 2018; therefore, it should be treated as a normal business day as follows:
- Wednesday, December 5, 2018 will be included in the rescission period for refinance transactions.
- Wednesday, December 5, 2018 will be included in the seven (7) business day waiting period between the date the initial Loan Estimate (LE) was provided to the borrower and the consummation of the loan
- When re-disclosure of the LE is required, Wednesday, December 5, 2018 will be included in the four (4) business day waiting period between the date the revised LE was provided to the borrower and the consummation of the loan.
- When re-disclosure of the Closing Disclosure (CD) is required, Wednesday, December 5, 2018 will be included in the three (3) business day waiting period between the date the revised CD was provided to the borrower and the consummation of the loan.
- Disclosures mail fulfilled on Wednesday, December 5, 2018 will be considered “sent” on December 6, 2018 due to the Post Office being closed on December 5, 2018. Users must update Sent Date within the Disclosure Tracking Record.
Issues related to locks should be sent via email to email@example.com.
Last Week in Review:
Soothing Words Helps Rates Improve
We heard doves cry this week, when Fed Chairman Jerome Powell spoke in NYC on Wednesday. Doves are people who offer peaceful polices, so upon Mr. Powell’s soothing speech both Stocks and Bonds moved nicely higher, with home loan rates hitting their best levels in nearly two months.
Some of Mr. Powell’s market-comforting words included:
- We know that moving too fast (hiking rates) will risk expansion
- It may take a year or more to fully realize the effects of hikes
- The Fed doesn’t see “dangerous excesses” in the stock market
- The policy rate (Fed Funds Rate) is “just below” neutral
The Fed is still very likely to raise the Fed Funds Rate in December, but the markets took the speech as signs the Fed will not hike rates three times in 2019, which was the Fed’s own forecast.
Fed Fund Futures, which represent market opinion on the future of the Fed Funds Rate now suggest there will be only one rate hike in 2019.
The incoming data and more specifically, inflation, will determine whether we see more hikes in 2019.
Bottom line – the present low inflationary environment and slower global growth is helping keep home loan rates historically low.
Effective immediately, CoesterVMS will no longer be an approved AMC for new orders. Orders placed before November 27, 2018 with Coester will be accepted. For questions regarding orders, please contact firstname.lastname@example.org.
Last Week in Review:
Stocks crumble, yet rates go unchanged.
The old adage of “Stocks go down, Rates go down” didn’t work this past week.
Stocks started the week with the Dow Jones Industrial Average falling nearly 1,000 points through Tuesday.
Typically, as Stocks decline, we see home loan rates improve as the investment dollars find their way into Bonds. That was not the case this week. Bonds and home loan rates hardly moved.
Why? Despite the bad selloff in Stocks, nothing in the U.S. economy has changed, the labor market remains tight, wages are rising, and consumer confidence is high – these are headwinds to further improvement in rates. Remember, rates like bad news.
So, while we have seen home loan rates improve over the past few weeks, the gains may have reached their near-term limit.
Now we are going to watch whether Stocks enjoy a “Santa Clause Rally” to finish the year or if they continue to fall. If Stocks decline another leg lower, we will likely see some modest improvement in rates.
However, should Stocks bounce higher from here, it will likely be at the expense of Bonds and home loan rates could move higher quickly.
Bottom line: Home loan rates have improved nicely the past few weeks and while historically attractive, they are hovering at a near-term bottom.