QE3 on the way?

27 06 2011

The Federal Reserve stated that they may buy an additional $300 Billion of US Treasury bonds after the QE2 program ends this week.  Here is the article in Bloomberg.  

Mortgage rates are low now for three reasons: an economy that is artificially stimulated (ie QE1 and QE2), fear and greed.  And all these reasons are shaky at best.   

So if you are considering buying a home, do it now. 

If you are considering refinancing a home, do it now.

If you’d like a professional during this all-important transaction, please reach out to me.  I’d be happy to help lead you through this, so you can become one of the Oklahomans who saves over $20 Million on their homes this year.

Here to serve,

 

Wilhelm Koenig

 

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LO Comp plan appeal denied

5 04 2011

The US court of appeals denied the NAMB’s and the NAIHP’s LO Comp plan appeal today. So the new regulations go into effect tomorrow. It will be an interesting day tomorrow.

What do you think will be the biggest hidden benefit of the LO comp plan?





New Regulations delayed

1 04 2011

At the 11th hour, the courts delayed implementation of the new TILA “LO Comp Plan” regulations. This is not an April Fool’s Day joke.

For more info, click on the link HERE:





LO Comp Changes and How They Affect You

21 03 2011

Once again, the rules of mortgage lending are changing.  Effective April 1st, 2011, the Fed’s Loan Officer Compensation Plan will change how much a mortgage will cost and will reduce the available options for you.

The Fed wanted to benefit consumers by limiting unethical steering practices and limiting the amount that loan officers could make and the ways they were compensated.  They did this with the LO Comp Plan.

Benefits for you:

  1. LOs can only be paid by you or by the lender, but not both.
  2. LOs can only be paid based on the loan amount, not your credit score or other terms of the financing.
  3. LOs are prohibited from steering you to lenders that would pay more money.

Drawbacks:

  1. Expect delays and added paperwork in the loan process.  The Fed is still clarifying parts of its comp plan, and many of the street-level implementations of these new requirements are still being written and revised by lenders.  In short, the Fed is still trying to figure it out, as are all the lenders.
  2. Rates and fees are both likely to increase.  The added legal and regulatory burdens raise costs for lenders, which indirectly raise the cost of mortgages for the customer.
  3. Some loan programs will disappear or change.  Certain mortgage programs, like bond money programs, will be noncompliant under the new regulations and must be changed or halted.

These are just the beginning of many changes in the industry.  The Dodd-Frank Act, which will be enacted in the future, will further change the role of mortgage lending.  It’s more important than ever to have someone you trust who is looking out for you during these turbulent times.  For honest answers and guidance through the coming changes, please reach out to me.

As always, here to serve.