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Friday, December 9, 2016

Friday Rate Update


Mortgage Rates Reach 2016 Highs
The rate for a 30-year fixed-rate mortgage averaged 4.13 percent this week, up from the previous week's 4.08 percent rate, Freddie Mac said yesterday. At this time last year, the 30-year FRM rate averaged 3.95 percent.

This week's 15-year FRM averaged 3.36 percent, up from last week's 3.34 percent rate. A year ago, the 15-year FRM averaged 3.19 percent. ---ABA Daily Newsbytes

Tuesday, December 6, 2016

E-signs of the times: How e-signatures, e-notarization confound mortgage lending
by Jeanne Pinder

You use electronic signatures these days just about everywhere: when you scrawl with your fingernail on a coffee shop tablet, click to accept an online contract, even when you type your PIN at the ATM. So different forms of e-signing are commonly accepted everywhere, right?

Not so fast. In the banking world, e-signatures occupy a dark, mysterious thicket of state and local regulations. Rules on acceptances vary from bank to bank and transaction to transaction. A welter of different methods exist: Click to sign? Type in your name? Or is a full “wet” signature required with a raised notary seal? Which is right when and where? How can I know?

For all the finality signing on the dotted line represents, e-signatures raise a flurry of questions that lack universal answers. And as with so many things involving digital speed, it’s largely an issue of technology outpacing reality.

Electronic signatures came quickly with the rise of the web, but a patchwork of state regulations and company practices led to conflicts and inconsistencies. The Clinton administration regularized the mess, to a certain degree, with two e-signature laws: The federal Electronic Signatures in Global and National Commerce Act (ESIGN) and Uniform Electronic Transactions Act (UETA) both date to 2000.

Read more here.....

Monday, November 28, 2016

Loan Limits Raised


FHFA Raises 2017 Conforming Loan Limits for Fannie, Freddie

The Federal Housing Finance Agency increased the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2017. The limit for one-unit properties will rise to $424,100 from $417,000 in most of the country, the first increase in the baseline loan limit since 2006.

The Housing and Economic Recovery Act of 2008 (HERA) established the baseline loan limit of $417,000 and requires this limit to be adjusted each year once the average U.S. home price returned to its pre-decline level. The FHFA’s House Price Index for the third quarter rose 1.5 percent from the previous quarter and registered a 1.7 percent rise from the third quarter of 2007.

ICBA recognizes that while an increase in the conforming loan amount will help make conforming mortgage financing more widely available, it remains concerned that Fannie and Freddie are severely undercapitalized. The association is calling on FHFA Director Mel Watt to require the GSEs to develop and implement a capital restoration plan as required by HERA. 

--ABA Daily Newsbytes

Friday, November 18, 2016

Friday Rate Update

Mortgage rates see biggest spike in over 3 years

Parents cooking with their children |
Mortgage rates took a significant one-week jump following Donald Trump's victory.
The benchmark 30-year fixed-rate mortgage rose this week to 4.01 percent from 3.73 percent, according to Bankrate's weekly survey of large lenders. It was the biggest one-week increase in more than three years and the 20th largest one-week increase in the 31-year history of Bankrate's weekly mortgage survey.
SEARCH RATES: Need a mortgage anyway? Find a mortgage deal today.

Mortgage advice

"I'm telling people to lock" their rates, says Elizabeth Rose, branch manager for Movement Mortgage, in Dallas. "If I was in the process of buying a home right now, I would not roll the dice. Let's face it, rates are still unbelievably awesome. So lock your rate and be happy with it."
Awesome? Be happy with it? That's a difficult message to hear if you're a first-time homebuyer or you never got a mortgage before 2010.
For those of us with long memories, 4 percent is an excellent mortgage rate:
  • Until May 2010, a 30-year fixed mortgage rate below 5 percent was unheard of, unless the borrower aggressively paid discount points. (OK, "unheard of" is an overstatement. Remember when Elvis appeared on "The Ed Sullivan Show" for the first time, in the fall of 1956? If so, you recall the last time -- until May 2010 -- when people were getting mortgages for under 5 percent.)
  • Twenty years ago, around the time I bought my first house, people were happy getting 7.5 percent.
  • This week 30 years ago, the average rate on the 30-year fixed was 10 percent.
SEARCH RATES: You can still get a good deal today. Shop mortgage rates today.

Thursday, November 17, 2016

Survey: Regional, Community Banks Lead in Customer Satisfaction 

Regional and community banks notched the highest customer satisfaction scores in the retail banking industry, besting credit unions and others with a score of 83 out of a 100, according to the latest American Customer Satisfaction Index released on Tuesday. Overall, the banking industry saw a 5.3 percent jump in customer satisfaction over last year, moving from 76 to 80 points.

“Super-regional” banks earned a score of 79 points, while nationwide banks landed at 77, up from 72 points the previous year. Among nationwide banks, Citibank saw the highest jump in overall customer satisfaction, with its score improving 12 percent year-on-year. Most improved among super-regional institutions were Citizens Bank, Fifth Third Bank and SunTrust Banks.

Of the survey’s ten customer experience categories, regional and community banks led the way in all but two -- number and location of branches and ATMs. They earned the highest scores for courtesy and helpfulness of tellers and staff (91 points), the speed of in-branch financial transactions (88 points) and website satisfaction (88 points). Respondents also said they found it easier to add or change accounts at smaller institutions, and were more satisfied with the call center experience they had at regional or community banks.

--ABA Daily Newsbytes

Monday, November 14, 2016

Mortgage Rates Climb Again 

The rate for a 30-year fixed-rate mortgage averaged 3.57 percent this week, up from the previous week's 3.54 percent rate, Freddie Mac said on Thursday. At this time last year, the 30-year FRM rate averaged 3.98 percent.

This week's 15-year FRM averaged 2.88 percent, up from last week's 2.84 percent rate. A year ago, the 15-year FRM averaged 3.2 percent.

---ABA Daily Newsbytes