Duck Video is cool to check out for Mother's Day...and borrowers should look to lock in their rate!

Check out these ducks video, very fitting for Mother’s Day….Speaking of which, Happy Mother’s Day to all you moms out there!

https://www.youtube.com/watch?v=JHy6bBKu0j4#t=13

Financial Markets

The Dow reached its all time high Friday, closing at 16,583. It seems that record highs will be somewhat of a norm until we see a noticeable correction.  Investors, for the first Friday in a while, were ok with leaving holdings in stocks despite the volatility in Eastern Europe.  The rally in stocks resulted in a rally killer in the bond market. 

The Fannie Mae 4.0 coupon improved by roughly 100 basis points over the past two weeks (equivalent to an improvement of roughly .25% in interest rate to the consumer).  The instrument traded positively in 10 of the past 13 trading sessions, and that streak ended Friday as the instrument experienced selling pressure.  Clients should be looking to lock in the rate to avoid the eventual correction.  IMO…..(I recently learned that means “In My Opinion”…LOL)

Southern Nevada Real Estate Related Data

Below is an interesting article sourcing Zillow, who states that The “:breakeven horizon”, or time it takes until owning a home becomes less expensive than renting one, has dropped to 1.5 years, which is one of the fastest rates in the nation.  This, despite one of the fastest home value appreciation percentages in the nation, is due to the rising rent rates in Southern Nevada, according to Zillow. 

http://vegasinc.com/business/real-estate/2014/apr/29/las-vegas-home-market-buying-increasingly-beats-re/?_ga=1.3410100.564569733.1395507077

The median priced home in Southern Nevada dropped 1.5% in April from the month prior, but up 15% from April 2013.  This should not be deemed as all that concerning as most real estate economists predict a “bobbing along”, and would expect to see rolling hills (as opposed to jagged cliffs)  on its way to 5% annual appreciation. 

http://vegasinc.com/business/real-estate/2014/may/08/slight-dip-las-vegas-home-prices-investors-back/?_ga=1.73483542.564569733.1395507077

For more real estate financing information, please visit my website: http://www.matthewtmaltese.com/home.html

Bad Vlad means lower US Mortgage Rates...Condo and Foreign Nat'l financing now available

PRODUCT UPDATE ALERT!!

Non-Warrantable Condo AND Condotel Financing now available through First Cal!!- Parameters as follows:

·         Minimum loan amount $100,000

·         Maximum loan amount $3,000,000

·         Primary Residence LTV up to 80%

·         Investment Property LTV up to 60%

·         Condotel LTV up to 75%

***Condo development cannot be in litigation for anything structurally related.

PRODUCT UPDATE ALERT!!

Foreign National financing now available through First Cal!!-Parameters as follows:

·         TIN or SSN required

·         50% max LTV (Can be higher if used for vacation purposes)

·         No foreign credit report required 

·         Full doc loan.  All documents must be translated to English.  Income and assets converted to U.S. dollars.

Financial Markets

The Dow Jones needle barely budged, and in the past month hasn’t moved more than 300 pts in either direction.  Friday the Dow dropped 140 pts and ended at 16,361, primarily influenced by the political volatility in the Ukraine and Vlad Putin’s even more volatile brain…

The Fannie Mae 4.0 Coupon has been equally flat relatively speaking, but rallied to go along with the stock market sell-off and improved by about 40 basis points…So always remember, a crazy Russian Prime Minister acting crazy often means lower mortgage rates in the U.S. 

Southern Nevada Real Estate Related Data

The Shops at Summerlin continue a torrid construction pace and is set to open before the 2014 holiday season.  The Shops at Summerlin is the biggest retail development in over 30 years, dating back to the Fashion Show mall that opened in 1981.  Plans were recently announced to build a luxury condo development adjacent to the mall, which is scheduled to break ground around the time the mall will be opening. 

http://www.reviewjournal.com/business/economy/mall-construction-track-holiday-season-opening

http://vegasinc.com/news/2014/apr/23/developers-building-luxury-apartments-next-shops-s/?_ga=1.95634456.564569733.1395507077

For more real estate financing information, please visit my website: http://www.matthewtmaltese.com/home.html

8.9 million jobs gained in last 6 years...This would be pretty awesome if we didn't lose 8.8 million jobs two years prior.

Take Advantage of FirstCal’s sponsorship of the Quarterly Housing Report on April 22^nd, at 8:30 Am at the Sun Coast Casino, by replying to this email stating you would like to attend, and your admission will be free!  (After Monday Admission will be $25).  Below is a you-tube video of who will be speaking at the event.  

https://www.youtube.com/watch?v=VG-jH4DLQvc&feature=em-share_video_user

Financial Markets

The Dow Jones, Nasdaq and S and P all stumbled to the finish line Friday, with the Dow dropping 160 points, and losing roughly 1% for the day.  The Dow ended trading at 16,412.  The labor report was released and is often a market mover but was not considered the catalyst for stock sell offs yesterday.  March resulted in roughly 192,000 jobs created, just shy of analysts’ expectations of 200,000 jobs and down slightly from February’s 197,000 jobs created.

 As a side note, this month’s report also signifies that the country has gained back all 8.8 million jobs lost during the Great Recession…Just took an easy breezy 6 years to do it.  This is not deemed as beacon of light for recovery because the labor force grows every year, but a milestone none the less.

Mortgage Backed Securities experienced calm trading sessions for the past two weeks and the Fannie Mae 4.0 Coupon did not swing in either direction more than 50 basis points.  (50 basis points loosely translate into .125% in interest rate to the consumer).

Southern Nevada Real Estate Related Data

Interesting article about am underground home that was recently purchased for 1.15 million…You can tell I was searching for content this morning!

http://www.vegasinc.com/news/2014/apr/04/mysterious-group-buys-underground-doomsday-house-l/

Also pretty cool, the Ivanpah Solar Plant located along I-15 south of Las Vegas opened in February, and is the largest Solar Plant in the world.  The article states it can generate enough power to light 140,000 homes. (Not sure if that means, “light” or “power” and more specifically if it includes the AC units…..)

http://www.reviewjournal.com/columns-blogs/john-l-smith/ivanpah-solar-plant-changes-nevada-s-landscape 

For more real estate financing information, please visit my website: http://www.matthewtmaltese.com/home.html

When you are in last, you have a good shot at winning "Most Improved"

Product Update:

A Brief review of ways to finance a home with little to No Down Payment:

·        Are you a veteran?  VA!

·        USDA for homes located in certain geographic locations throughout Southern Nevada.  http://www.rurdev.usda.gov/nvhousinghol.html

·        Nevada Housing Division State Bond Down Payment Assistance Program. http://housing.nv.gov/programs/Programs/

·        Neighborhood Housing Services of Southern Nevada down payment assistance programs to coincide with FHA, VA and Conventional financing.  http://nwsn.org/

Financial Markets

The Dow Jones ended the closing bell this past Friday down minimally, at 16,302, rounding out a very uneventful and unsexy month for trading.  The Dow hasn’t breached the 16,500 mark or dipped below 16,100 in the past 20 trading sessions despite the political volatility in Eastern Europe.  Mortgage backed securities had an equally uneventful month in volatility, until this past week when the Fannie Mae 4.0 coupon lost nearly 80 basis points in a single day.  This translates loosely in to .25% increase in rate to the consumer on a 30 yr fixed mortgage.  The catalyst for the MBS sell off was Fed rhetoric that they will no longer wait for unemployment to hit 6.5% before raising key interest rates. 

Southern Nevada Real Estate Related Data

The local unemployment data released this past week has local economists cautiously optimistic that the recovery is still headed in the right direction.  Nevada finally fell out of the top slot for national unemployment rate, holding firm at 8.9% while the national average has dropped to 6.6%.  Nevada did lead the nation in year over year job formation rate (3.4%) and is just shy of 1.2 million jobs.  To offer perspective, in 2007, moments before free-falling into the great recession, Nevada was experiencing year over year job formation rates of over 6%.  Experts say that a job creation rate of 6% was completely unhealthy or unsustainable, and current rates are more in line with stable growth.  The national average for job growth is 1.7%, according to the article below.  So, to summarize, Nevada is recovering at the fastest pace, but primarily because it has the most ground to make up.  In 2007, Nevada had nearly 1.3 million jobs, and 7 years later, we are still shy of that number. 

http://www.reviewjournal.com/business/nevada-leads-us-job-creation-no-longer-tops-nation-unemployment

For more real estate financing information, please visit my website: http://www.matthewtmaltese.com/home.html

Siri says "We've arrived at our destination"...I think she is right for once

Product Announcement!

Nevada State Bond has become relevant again, making wide sweeping revisions to its Down Payment Assistance Program, below the highlights for yet another nearly 100% financing option for home buyers:

·        No longer need to be a first time home buyer

·        Household income can be up to $91,140 (with household head count of 3 or higher)

·        Not restricted to geographic location

·        Lend up to 3% of sales price towards down payment and closing costs

Financial Markets

The Dow Jones ended the closing bell this past Friday topping out at 16,321, up 170 + points from two weeks ago.  Investors have been shrugging off weaker than expected economic data in recent trading sessions as many predict the soft numbers are predominantly a result of the miserable weather across much of the country for much of the winter.  Many expect a pent up demand to create for robust sales across all goods once the Polar Vortex has released its deadly grip!!  The Fannie Mae 3.5 MBS (mortgage-backed security) improved roughly 50 basis points (often equivalent to an improvement in mortgage interest rate by .125%) during the same time span. 

Southern Nevada Real Estate Related Data

Home sales for January support that Southern Nevada’s real estate market is stabilizing and giving the appearance of normalcy for the first time in nearly 15 years, as the data becomes more closely aligned with markets nationwide.  Institutional investors consisted of roughly 6.5% of sales (down from 11% in January 2013), nationwide institutional investors consisted of nearly 6% of home sales.  Cash buyers still dominate the market, with 56.7% of home buyers paying cash for homes, compared to 44% nationwide.  Zillow chief economist Stan Humphries predicts real estate to appreciate by roughly 3%, nationally for 2014, which is consistent with historical averages….

Despite how ridiculously volatile Nevada’s recent real estate market has been in the past 15 years, we are currently on pace with very boring and historically traditional value appreciation trends.  Take a look at the last link.  In 1940 the median priced home was $20,000 for homes in Nevada.  Today, the median priced home is roughly $185,000, an approximate 925% increase in values over roughly 75 years computes to about 1-2% appreciation per year….Now, stay with me here, take from 2000 to today, $142,000 to $185,000…Current prices are up 13%, or roughly 1% per year…We happened to have taken the road never traveled….Up 100%, down 60%, up 35%....But as Siri would say “ you have arrived at your destination”…..and for the first time in a very long time, prices for Las Vegas real estate are right where they need to be. 

http://www.reviewjournal.com/business/share-nevada-homes-bought-major-investors-drops-65-percent

http://www.reviewjournal.com/business/las-vegas-home-prices-defy-national-trend-show-increase

https://www.census.gov/hhes/www/housing/census/historic/values.html

For more real estate financing information, please visit my website: http://www.matthewtmaltese.com/home.html

All Aboooooard!! 100% Financing Station....Next Stop...No income no asset (Let's hope not!)

Product Announcement!

Welcome back 0-Down (almost)!  First Cal introduced its 99.5% down loan to the market 2 weeks ago, with flexible guidelines that many clients will fit into. It will be structured into 2 loans, FHA being the first mortgage and a 2^nd mortgage for 3% of the sales price.  The remaining ½% can even be gifted by a family member.  Below, the highlights:

·         Minimum 580 FICO score (with Automated Underwriting System Approval)

·         DO NOT have to be a first time home buyer

·         Income restricted to roughly $66,000 annually

·         We underwrite and fund both loans IN-HOUSE!  (very few lenders in Southern Nevada offer this product…and if they do, even fewer offer IN-HOUSE…meaning underwriting and funding in First Cal’s name)

Financial Markets

After peaking to 16,500 in late January, the Dow Jones suffered a steady 2 week sell-off, losing nearly 1,000 pts, a little over 6%, before investors steadily bought back into stocks.   The Dow closed at, 16,154, up 600 points after bottoming out in the beginning of February.  The sell-off in stocks resulted from a general macro consensus that U.S. stocks were simply over-valued, and not specifically to certain economic data or world event.  The Fannie Mae 3.5 MBS (Mortgage Backed Security) moved proportionally with the stock market.  The price of the instrument gained roughly 150 basis points during the stock market sell-off and lost 60 basis points during the recent rally, with 30 yr fixed mortgage rates to the consumer hovering in the mid 4’s. 

Southern Nevada Real Estate Related Data

Luxury home sales have kept up with median home price appreciation in Southern Nevada, according to the below article in the RJ, the luxury home market is up 30% from this time last year…and much of the credit can be attributed to California law makers.  Recent tax laws and state tax increases in California have pushed wealthy business owners to purchase luxury homes in Southern Nevada and claim it as their primary residence.  Relaxation of Jumbo financing has had a hand in the luxury home market recovery as well.  A jumbo 30 yr fixed mortgage rate hovers in the mid-to upper 4’s in many instances.  The spread between conventional pricing and jumbo pricing has become thin and in certain instances jumbo pricing is actually BETTER than conventional pricing. 
http://www.reviewjournal.com/business/business-press/new-california-taxes-boost-nevada-luxury-home-sales

Cloudy with a chance of less qualified homebuyers? Naahhhhhhh!

Product Update

ATR (Ability to Repay)/QM (Qualified Mortgages) and the Impacts on Home Buyers

January 10^th signified additional revisions to the home loan financing industry and has created high anxiety and unanswered questions as to how it will affect home buyers ability to obtain financing.  After sitting through multiple webinars, conference calls and seminars regarding this topic, I feel comfortable enough to present to you the reader’s digest version of the changes that have everyone freaking out!:

To start,  a brief definition and its origin:  ATR/QM represents a chapter in the Dodd-Frank Act, that 900 page bill that has multiple phases to it, this being the latest phase to the bill.  Essentially the lender is required to make a reasonable and good faith determination of the consumers’ ability to repay the loan according to its terms…This brings us to yet another aspect of the bill that rolls out January 18^th, Higher-Priced Mortgage Loan (“HPML”).  We’ll come back to that….

Here is what is eliminated:

·         Negative amortization (Shocker)

·         Interest Only (Say what??)

·         Balloon payments (Boooooo)

·         Anything over 30 yr amortization (You’re killin me smaaaalls!)

·         Debt-to-Income not to exceed 43% (Don’t sweat it, I will explain)

·         Total points and fees not to exceed 3% (Don’t sweat it, I will explain)

With regards to Debt-to-income ratio, this can exceed 43% if the automated underwriting system (AUS) issues an “approval” rating.  So, if DU (Fannie Mae’s AUS) or LP (Freddie Mac’s AUS) issues an approval and the DTI is 49.8%, First Cal will still approve the loan.  

With regards to “HPML”, this will not apply to investment property financing which is typically accompanied with points.  It DOES affect buyers who like to buy out the mortgage insurance and pay it upfront.  However, First Cal allows borrowers to finance the upfront mortgage insurance!

So, what does this all mean for your buyers?  It’s really “business as usual”.  Personally I haven’t originated a neg-am, interest-only, balloon or 40 yr mortgage, or a loan with a debt-to-income ratio over 50% on a CONVENTIONAL LOAN (remember FHA/VA doesn’t apply to QM), in years.  

Next week I will tell you why statistically speaking, few home buyers will be affected by FHA’s decision to lower loan amounts will have little impact on the market.   

Financial Markets 

The Dow Jones has steadily surged over 400 pts through the holidays and over the past 30 trading sessions with most of the gains coming before Christmas.  The market has bobbed along the past two weeks amidst mixed earnings reports. 

The bond market, which often trades inversely to stocks, bucked tradtional trading trends with investors acting bullish on bonds.  As always, I focus on the Fannie Mae 3.5 coupon which is most directly related to our buyers’ interest rates.  The Fannie Mae 3.5 coupon has improved roughly 100 basis points over the past month, which loosely translates into .25% in lower rate on a 30 yr fixed mortgage. 

 

Southern Nevada Real Estate Related Data

This past Tuesday, the GLVAR released fresh real estate data for 2013 and the article below is a great reference for buyers interested in understanding what the market has done.  Among the highlights, 62% of re sale homes were traditional sales….Roughly 2.8 months supply (8100 homes, townhomes and condos on the MLS as of December).   Generally speaking equilibrium occurs when there is roughly a 6 month supply of homes so the “seller” still holds the cards….

http://www.reviewjournal.com/business/las-vegas-housing-ends-2013-way-it-started-big-annual-price-gains

For more real estate financing information, please visit my website