Allied Home Mortgage Capital Corporation

MORTGAGE RATES AT RECORD LOWS

NEW YORK (Reuters) - U.S. mortgage rates reached new record lows in the latest week as economic data raised the appeal of safe-haven government debt, according to a survey released on Thursday by Freddie Mac, the second-largest U.S. mortgage finance company.

While rock-bottom rates offer a glimmer of hope for a housing market struggling to find footing in the aftermath of the expiration of popular home buyer tax credits, their impact on home loan demand has been tepid. A weak jobs market and flailing economy continue to weigh on consumer confidence.

Interest rates on U.S. 30-year fixed-rate mortgages, the most widely used loan, averaged 4.27 percent for the week ended October 7, down from the previous week's 4.32 percent and the lowest on record, according to the survey.

Rates were also below their year-ago level of 4.87 percent. Freddie Mac started the survey in April 1971.

Meanwhile, 15-year fixed-rate mortgages averaged 3.72 percent, down from 3.75 percent last week, the lowest since Freddie Mac began surveying this loan type in 1991

"The 12-month growth rate in the core price index for personal consumption, which the Federal Reserve closely tracks, has been drifting lower over the past six months ending in August and suggests inflation is running at a tepid pace at best," Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement.

"This allowed mortgage rates to ease to new or near record lows this week," he said.

Mortgage rates are linked to yields on Treasuries and yields on mortgage-backed securities.

The Mortgage Bankers Association said on Wednesday U.S. mortgage applications for home purchases rose for a second straight week, with demand at its highest level since early May as potential homeowners took advantage of record low interest rates.

CLICK HERE FOR ARTICLE:: http://reut.rs/dkiySp

Allied Home Mortgage opens new branch office in Frisco, Texas

Allied Home Mortgage Capital, a privately held mortgage banker and broker in the US, has opened a new home loan branch office in Frisco, Texas.

Allied Home said that the new office will be operated by branch manager Jay Onstott, who has more than 23 years experience in the home mortgage and lending industries.

Over the past 10 years, Onstott owned and operated National Mortgage Lenders, a full-service Texas-based mortgage broker, and in 2007, he opened a net branch of Primary Residential Mortgage.

Allied Home Mortgage CEO Jim Hodge said that Frisco Texas is a very popular community for professionals working in the Dallas-Ft Worth area and no one knows that market better than Jay.

“He’s probably trained more mortgage professionals than anyone I know. His experience and expertise are going to be a tremendous asset to his customers and our company,” Hodge said.

ALLIED HOME MORTGAGE CAPITAL CORPORATION HOME LOANS FOR YOU

At Allied Home Mortgage we provide affordable home loans for most every situation. Whether you are a first time homebuyer, looking to move up, or just refinancing your home, we have the loan products that match your needs. We pride ourselves on our knowledge and expertise that makes the home financing process run smooth and hassle free.

Take a look at some of the many types of loan offerings we have by clicking on one of the informational links below (we also offer many more). Then Contact us or Apply Online , we are here to help you through the process.

Click HERE for Types of loans we offer:

http://www.alliedhome.com/

Jim Hodge, CEO

ALLIED HOME MORTGAGE CAPITAL CORPORATION OPENS NEW BRANCH IN SCOTTSDALE

HOUSTON--(BUSINESS WIRE)--Allied Home Mortgage Capital Corporation, the nation’s largest privately held mortgage banker and broker (www.alliedhome.com), announced today it is opening a new home loan branch office in Scottsdale, Arizona. The new Allied Home Mortgage office will be operated by Co-Branch Managers JoElla Sartin and Tina McSpadden. The Allied Home Mortgage branch will be located in north Scottsdale near Pinnacle Peak and Pima roads at 8707 E. Vista Bonita Drive, Ste. 240, (480) 734-0058http://www.alliedhome.com/jsartin.

“We are proud to have JoElla and Tina join Allied Home Mortgage Capital Corporation,” said Jim Hodge, CEO of Allied Home Mortgage. “They have tremendous experience, outstanding industry knowledge, and an impressive track record of serving the needs of their clients to find successful solutions to their home lending needs. We have some very strong branches in the state, and JoElla’s and Tina’s team will be a great addition.”

Sartin has more than 20 years experience in the real estate and finance industries and has worked in home mortgage lending since 1993. She specializes in all types of residential mortgage loans and has worked closely with large homebuilders, such as Pulte Homes, DR Horton and others.

McSpadden began her career in California’s title/escrow industry during the 1980s and later moved into finance. She has a very strong operational background with experience in all phases of the home loan process. Before joining Allied Home Mortgage she managed a branch of another large mortgage banker/broker with a staff of more than 50 loan officers. She also managed a nationwide division for homebuilder DR Horton.

All of the branch’s loan officers have more than 10 years experience in the mortgage industry and focus on delivering the highest level of service to all homebuyers regardless of credit history or challenge.

“Tina and I chose to join Allied Home Mortgage because of its size and stability,” said Sartin. “Through Allied, we are able to provide our clients with competitive pricing and attentive mortgage underwriting that actually makes sense. The company provides excellent service and closes loans in a very timely manner. Plus, Allied gives our loan officers cutting-edge tools to help them find solutions for our clients. We truly believe Allied is a great example of how mortgage professionals should be supported in today’s market. The company gives us the ability to provide homebuyers and referral sources with utmost respect and outstanding service.

ALLIED BRANCH MANAGER MICHAEL BRAMBLE ATTENDS FUNDRAISER FOR DEL. JACKSON MILLER AND SHOP TALKS WITH GOVERNOR BOB MCDONNELL OF VIRGINIA

Allied Branch Manager Michael A. Bramble recently attended a fundraiser event for Del. Jackson Miller. The Republican Governor of Virginia Bob McDonnell attended and is a supporter of business, and a great leader. Michael wore the badge that he received from the Allied training in February, which he smiled as he said “Allied Home Mortgage and another Mike”. In his brief conversation with the Governor they spoke about new legislation on financial reform and "not surviving these times but thriving." The Governor has the support of boss Jim Hodge and Allied. We love the Allied proactive spirit and we really like the Gov.'s Allied Blue Tie!

http://www.delegatemiller.com/home.aspx

http://www.governor.virginia.gov/

Michael A. Bramble

mgr3017@alliedhomenet.com

NATIONAL ASSOCIATION OF REALTORS SURVEY OF HOME BUYERS AND SELLERS

From NAR, National Association of Realtors Survey of Home Buyers and Sellers

47% of all homes purchased were bought by First Time Homebuyers (FTHB).
78% of FTHB rented a home before they bought their first home.
Marital Status 49% were married couples 12% were unmarried couples 25% were single women 12% were single males
Six out of 10 buyers were under the age of 35. This group can be reached by video, creative emails, interactive website and social networking sites
FTHB moved an average of 12 miles from their previouse residence.
Over half the buyers were likely to purchase a home under $175,000.
24% - Homes Magazines 9% - TV
Length of ime the FTHB plans to stay in this home Age 18-24 - 4% olan to sell within 2-3 years after purchase Age 25-44 - 24% plan to sell within 2-3 years after purchase.
10% - $75K-$100K 16% -$125K-$150K 10% - $175K-$200K
12% - $100K-$125K 13% -$150K-$175K
Information Sources Prior to Buying a Home 94% - Internet Search 63% - Virtual Tours 43% - Open Houses
40% - Newspaper Ads
Financing Home Purchase Downpayment from own savings - 61% Down Payment from Gift - 22%
96% were fixed rate mortgages

From Allied Home Mortgage Capital Corporation Twigs & Branches

RECENT FNMA CHANGES REQUIRE MORE ATTENTION ACTIVITY TO CLOSING

Fannie Mae has been instituting new guidelines, which will affect the loan origination process. According to policies set forth in the Fannie Mae Loan Quality Initiative (LQI), Lenders are responsible for identifying and disclosing any new debts borrowers may have incurred just before closing, checking related parties against exclusionary lists, and validating Social Security numbers (SSN) throughout the origination process.

"Lenders must determine that all debts of the borrower incurred or closed up to and concurrent with the closing of the subject mortgage are disclosed on the final loan application and included in the qualification for the subject mortgage loan..."

"...Fannie Mae's updated policy requires that lenders determine that the borrower has not established additional debt on or prior to the closing date. If additional liabilities are discovered, lenders must consider any such additional debts of the borrower in the qualification."

Lender that discover new information that could impact the performance of the loan may have to resubmit the loan.

"Examples of situations in which loan casefiles should be resubmitted... if new derogatory information is detected and/or the credit score has materially changed."

Additionally, going forward, loans found by Fannie Mae to be in noncompliance are subject to repurchase by the lenders.

"if Fannie Mae determines that any debts were not adequately disclosed on the application nor included in the debt-to-income ratio such that the loan would not have met Fannie Mae eligibility requirements, the mortgage loan will be subject to repurchase by the lender."

Essentially, this means lenders are responsible for identifying and disclosing credit activity that has occurred between the time the loan is approved to the time it closes. Fannie Mae recommends a few key steps to help ensure compliance with its LQI.

Refresh credit reports just before closing to identify any new inquiries or debt obligations
Investigate new inquiries to determine whether the borrower does in fact have any additional debt to repay
Validate SSN with solutions such as ID Risk Review, Level One authentication, or SSA89 verifications
Credit Comparison report to quickly identify differences from initial report and refreshed report

I would advise everyone who is in the process of obtaining a conventional loan to make sure you are mindful of any credit or spending through out the entire loan process. Any new debt that creeps up last minute regardless of how big or small can wreck havoc on your closing. I would also be very careful of any new inquiries, and make sure not to use any of your credit cards for appliances or other home related purchases until after your loan has closed and funded. There can be times where a simple increase in credit card balance of only hundreds of dollars will jeopardize your transaction and result in a last minute denial. This can happen right up until the day of closing. I know that as far as Allied goes, we will only pull updated reports with the credit score omitted, however many other lender will pull reports with new scores. If the report has a lower score, you might be out of luck! Think about it this way, if your score is a 622 and the minimum threshold to qualify is a 620, and you get to closing and your new score is only a 619, then your entire approval is null and void and your loan can and will be denied at the table!

These challenging times continue to pose difficulties for borrowers, however if we are all diligent and proactive we avoid these issues and still close all of our transaction. We will continue to do everything possible to educate our customers to the new standards to make sure every loan closes as efficiently as possible, if you are not using Allied for your mortgage needs I would suggest you stay up on the latest changes and make sure your customers understand the new guidelines to avoid your deal crashing at the table.
Content Provided by::Steve Fingerman