bankers (19)

Blast BPOs - Dumb and Dumber

Earlier this year I had a scare when my 3yr old daughter started sneezing and later coughing up blood. I did my best to keep my cool, but I inside I was freaked out. What I needed as I drove to Kaiser was an accurate diagnosis of what was wrong so we could make the best decisions possible.

Later this got me thinking about blast BPO companies (don’t ask me why). These blast BPO companies are paid by their client to compile the most accurate information possible, but instead send the order to the first person that raises their hand. What if instead of going to a qualified pediatrician for my daughter, I sent out a blast message to anyone who had taken a science class? What if I didn’t choose the person with the most experience, or the person that had performed well in this area in the past, but rather I chose the first person to respond??

That would be STUPID!! I’d probably end up with some college dropout who took a semester of biology instead of a trained physician. Isn’t it just as STUPID though when we’re talking about a family’s home? This BPO can decide whether that family gets a needed loan mod or gets rejected; whether they successfully short sale their home or go to foreclosure? Whether the underling investor loses 150k or 225k?

Just a thought, who do you think is more likely to be sitting in front of their computer all day fondling the refresh button hoping to capture an order? The successful broker who has sold tons in the area, or rather the lame-brain agent who last sold a home when Reagan was in office?

Anyone else have a different take on this? Which BPO companies have you had the worst experiences with?

 

 

http://agentacceleration.com/blast-bpo-companies-%E2%80%93-are-you-really-surprised-your-bpos-are-crap/

 
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Mortgage Bankers Association for the week of 08/11/2010

Market Composite Index: (loan application volume) increased 0.6 percent on a seaso
nally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 0.4 percent compared with the previous week.

Refinance Index: increased 0.6 percent from the previous week and the seasonally adjusted Purchase Index increased 0.3 percent from one week earlier.

Purchase Index: decreased 0.3 percent compared with the previous week and was 34.1 percent lower than the same week one year ago.

Refinance Share of Mortgage Activity: increased to 78.1 percent of total applications from 78.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.9 percent from 5.4 percent of total applications from the previous week.

Arm Share: increased to 5.9 percent from 5.4 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

Federal Reserve policymakers have been increasingly clear that they will keep their target rate at exceptionally low levels for an extended perio d. They have also made no moves to this point in terms of asset sales from their trillion dollar portfolio of mortgage backed securities. Fannie Mae and Freddie Macs large buyouts of delinquent loans from MBS have substantially been completed by this point, so there are no longer large-scale purchases of MBS by unconventional buyers artificially constraining mortgage rates. However, continued financial turmoil appears to have led many investors, including international buyers, to favor MBS, and new issuance remains quite low.

We predict that mortgage originations will fall to $1.48 trillion in 2010 from an estimated $2.1 trillion in 2009. Purchase originations will decrease 7 percent to $686 billion, as home prices continue to fall and the boost from the homebuyer tax credits wane. Refinance originations will fall by about 42 percent to $797 billion in 2010. We continue to mark up our refinance origination forecast given that mortgage rates have continued to remain close to historical lows.

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Mortgage Bankers Association for the week of 07/07/2010

Market Composite Index: (loan application volume) increased 6.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 6.5 percent compared with the previous week.

Refinance Index: increased 9.2 percent from the previous week and is the highest Refinance Index observed in the survey since the week ending May 15, 2009

Purchase Index: has decreased eight of the last nine weeks

Refinance Share of Mortgage Activity: increased to 78.7 percent of total applications from 76.8 percent the previous week, which is the highest refinance share observed in the survey since April 2009.

Arm Share: increased to 5.4 percent from 4.7 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

Mortgage rates remained near record lows last week, as incoming data on the job and housing markets were weaker than anticipated. As more homeowners locked in to these low rates, the level of refinance applications increased to a new 13-month high, said Michael Fratantoni, MBAs Vice President of Research and Economics. For the month of June, purchase applications declined almost 15% relative to the prior month, and were down more than 30% compared to April, the last month in which buyers were eligible for the tax credit.

We predict that mortgage originations will fall to $1.4 trillion in 2010 from an estimated $2.1 trillion in 2009. Purchase originations will fall slightly to $725 billion, as home prices continue to fall and the effect from the homebuyer tax credits wane. Refinance originations will fall to $717 billion in 2010 from $1.4 trillion in 2009, but we continue to mark up our refinance origination forecast given the sharp drop in mortgage rates.

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Mortgage Bankers Association for the week of 07/07/2010

Market Composite Index: (loan application volume) increased 6.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 6.5 percent compared with the previous week.

Refinance Index: increased 9.2 percent from the previous week and is the highest Refinance Index observed in the survey since the week ending May 15, 2009

Purchase Index: has decreased eight of the last nine weeks

Refinance Share of Mortgage Activity: increased to 78.7 percent of total applications from 76.8 percent the previous week, which is the highest refinance share observed in the survey since April 2009.

Arm Share: increased to 5.4 percent from 4.7 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

Mortgage rates remained near record lows last week, as incoming data on the job and housing markets were weaker than anticipated. As more homeowners locked in to these low rates, the level of refinance applications increased to a new 13-month high, said Michael Fratantoni, MBA’s Vice President of Research and Economics. For the month of June, purchase applications declined almost 15% relative to the prior month, and were down more than 30% compared to April, the last month in which buyers were eligible for the tax credit.

We predict that mortgage originations will fall to $1.4 trillion in 2010 from an estimated $2.1 trillion in 2009. Purchase originations will fall slightly to $725 billion, as home prices continue to fall and the effect from the homebuyer tax credits wane. Refinance originations will fall to $717 billion in 2010 from $1.4 trillion in 2009, but we continue to mark up our refinance origination forecast given the sharp drop in mortgage rates.

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Market Composite Index: (loan application volume) increased 8.8 percent on a seasonally adjusted basis from one week earlier.

Refinance Index: increased 12.6 percent from the previous week and is the highest Refinance Index observed in the survey since the week ending May 22, 2009.

Purchase Index: decreased 3.3 percent from one week earlier.

Refinance Share of Mortgage Activity: increased to 76.8 percent of total applications from 73.8 percent the previous week, which is the highest refinance share observed in the survey since April 2009.

Arm Share: decreased to 4.7 percent from 4.9 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

We predict that mortgage originations will fall to $1.4 trillion in 2010 from an estimated $2.1 trillion in 2009. Purchase originations will fall slightly to $725 billion, as home prices continue to fall and the effect from the homebuyer tax credits wane. Refinance originations will fall to $717 billion in 2010 from $1.4 trillion in 2009, but we continue to mark up our refinance origination forecast given the sharp drop in mortgage rates.

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Mortgage Bankers Association for the week of 6/23/2010

Market Composite Index: (loan application volume) decreased 5.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 6.0 percent compared with the previous week

Refinance Index: decreased 7.3 percent from the previous week and the seasonally adjusted Purchase Index decreased 1.2 percent from one week earlier.
Purchase Index: decreased to 73.8 percent of total applications from 74.8 percent the previous week.

Refinance Share of Mortgage Activity: increased to 74.8 percent of total applications from 72.2 percent the previous week, which is the highest refinance share observed in the survey since the week ending December 18, 2009

Arm Share: decreased to 4.9 percent from 5.2 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

We predict that mortgage originations will fall to $1.4 trillion in 2010 from an estimated $2.1 trillion in 2009. Purchase originations will fall slightly to $725 billion, as home prices continue to fall and the effect from the homebuyer tax credits wane. Refinance originations will fall to $717 billion in 2010 from $1.4 trillion in 2009, but we continue to mark up our refinance origination forecast given the sharp drop in mortgage rates

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Market Composite Index: (loan application volume) decreased 12.2 percent on a seasonally adjusted basis from one week earlier. This week's results include an adjustment to account for the Memorial Day holiday

Refinance Index: decreased 14.3 percent from the previous week and the seasonally adjusted Purchase Index decreased 5.7 percent from one week earlier

Purchase Index: decreased 16.3 percent compared with the previous week and was 30.4 percent lower than Memorial Day week last year.

Refinance Share of Mortgage Activity: decreased to 72.2 percent of total applications from 73.8 percent the previous week. This is the first decline in the refinance share in five weeks

Arm Share: decreased to 5.1 percent from 5.2 percent of total applications from the previous week, which is the third consecutive weekly decrease.

MBA outlook: (Excerpted from mbaa.org)

We predict that mortgage originations will fall to $1.37 trillion in 2010 from an estimated $2.1 trillion in 2009, a 35 percent decline. Purchase originations will decline very slightly by around 3 percent to $717 billion, as home prices stabilize, and home sales increase. Refinance originations will fall by about 52 percent to $656 billion in 2010 as mortgage rates are expected to rise through the year. Refinance volumes in the first half of the year are likely to be somewhat higher than anticipated in prior forecasts as rates decreased sharply in recent weeks due to the crisis in Europe. We have adjusted our refinance forecast upwards in response.

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Mortgage Bankers Association for the week of 5/12/2010

Market Composite Index: (loan application volume) increased 3.9 percent on a seasonally adjusted basis from one week earlier

Refinance Index: increased 14.8 percent from the previous week and the seasonally adjusted Purchase Index decreased 9.5 percent from one week earlier.

Purchase Index: decreased 8.9 percent compared with the previous week and was 0.6 percent lower than the same week one year ago.

Refinance Share of Mortgage Activity: increased to 57.7 percent of total applications from 51.9 percent the previous week

Arm Share: remained unchanged at 6.3 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

The recent plunge in rates on US Treasury securities, due to a flight to quality as investors worldwide sought shelter from the Greek debt crisis, benefited US mortgage borrowers last week. Rates on 30 year mortgages dropped to their lowest level since mid-March. As a result, refinance applications for conventional loans jumped, hitting their highest level in six weeks, said Michael Fratantoni, MBAs Vice President of Research and Economics. In contrast, purchase applications fell almost 10 percent in the first week following the expiration of the homebuyer tax credit, as the tax credit likely pulled some sales into April that would otherwise have occurred in May or later

Projections
We predict that mortgage originations will fall to $1.37 trillion in 2010 from an estimated $2.1 trillion in 2009, a 35 percent decline. Purchase originations will decline very slightly by around 3 percent to $717 billion, as home prices stabilize, and home sales increase. Refinance originations will fall by about 52 percent to $656 billion in 2010 as mortgage rates are expected to rise through the year. Refinance volumes in the first half of the year are likely to be somewhat higher than anticipated in prior forecasts as rates decreased sharply in recent weeks due to the crisis in Europe. We have adjusted our refinance forecast upwards in response.

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Market Composite Index: (loan application volume) increased 13.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 13.9 percent compared with the previous week.
Treasury rates fell last week causing a decline in mortgage rates. As a result, refinance applications picked up over the week, as some borrowers took advantage of this recent rate volatility to lock in a low fixed-rate loan said Michael Fratantoni, MBA Vice President of Research and Economics.

Refinance Index: increased 15.8 percent from the previous week and the seasonally adjusted Purchase Index increased 10.1 percent from one week earlier.

Purchase Index: increased 11.0 percent compared with the previous week and was 5.2 percent lower than the same week one year ago.

Refinance Share of Mortgage Activity: increased to 60.0 percent of total applications from 58.9 percent the previous week.

Arm Share: decreased to 6.0 percent from 6.3 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

Economic growth and a recovering job market are good news for housing, but we certainly have not seen any significant improvement in housing activity to date. Existing home sales declined in February, and new home sales actually reached a new record low that month. Additionally, the number of existing homes on the market increased, as sellers began to list their properties in anticipation of the spring. Rising inventories on top of weak demand continues to put pressure on prices, with most measures showing either declines or weak gains over the winter.

Fourth quarter real GDP growth was revised down a bit to a 5.6% annual rate, a revision too small to be significant. Data coming in during the past month suggest a real GDP growth rate of around 3% or a little less in the first quarter of 2010, well below the fourth quarter pace. The outlook for inflation remains unusually favorable. During the past year, both headline and core inflation rates have fallen.

The dramatic turnaround in the economy during the past year, from a 5.4% annual rate of decline in real GDP in the fourth quarter of 2009 to a 5.6% increase a year later, attests to the remarkable resiliency of the U.S. economy to withstand shocks.

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Mortgage Bankers Weekly Update


Mortgage Bankers Association for the week of 4/14/2010

Market Composite Index: (loan application volume) decreased 9.6 percent on a seasonally adjusted basis from one week earlier. This is the third lowest Market Index recorded in the survey since the end of June 2009.

Refinance Index: decreased 9.0 percent from the previous week, marking the index’s fifth consecutive decline

Purchase Index: decreased 10.0 percent compared with the previous week and was 17.5 percent lower than the same week one year ago. The decline in purchase applications was driven by government purchase applications, which decreased 19.1 percent from last week, compared to a decrease of 2.0 percent in conventional purchase applications.

Refinance Share of Mortgage Activity: increased to 58.9 percent of total applications from 58.7 percent the previous week.
increased to 6.3 percent from 6.2 percent of total applications from the previous week.

Arm Share: increased to 6.2 percent from 5.2 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

Economic growth and a recovering job market are good news for housing, but we certainly have not seen any significant improvement in housing activity to date. Existing home sales declined in February, and new home sales actually reached a new record low that month. Additionally, the number of existing homes on the market increased, as sellers began to list their properties in anticipation of the spring. Rising inventories on top of weak demand continues to put pressure on prices, with most measures showing either declines or weak gains over the winter.

We predict that mortgage originations will fall by about 38 percent to $1.3 trillion in 2010 from an estimated $2.1 trillion in 2009. Purchase originations will fall by around 2 percent to $726 billion, as home prices stabilize, and home sales increase. Refinance originations will fall by about 126 percent to $604 billion in 2010 as mortgage rates are expected to rise through the year.

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Mortgage Bankers Association: Purchases Up!

Mortgage Bankers Association for the week of 3/31/2010

Market Composite Index:
(loan application volume) increased 1.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 1.5 percent compared with the previous week.

Refinance Index: decreased 1.3 percent from the previous week and the seasonally adjusted Purchase Index increased 6.8 percent from one week earlier. This is the highest Purchase Index since the week ending October 30, 2009.

Purchase Index: increased 6.8 percent compared with the previous week and was 9.3 percent lower than the same week one year ago.

Refinance Share of Mortgage Activity: decreased to 63.2 percent of total applications from 65.0 percent the previous week. This is the lowest refinance share recorded in the survey since the week ending October 23, 2009.

Arm Share: increased to 5.2 percent from 4.8 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

Purchase applications have increased over the past month, and are now at their highest level since last October when many homebuyers were rushing to get loans closed before the expected expiration of the homebuyer tax credit, said Michael Fratantoni, MBAs Vice President of Research and Economics. We may be seeing a similar pattern now, as the extended version of the tax credit ends next month.


The housing industry faces another challenge during the spring building season stemming from the end on March 31 of the Federal Reserve’s program of buying mortgage-backed securities. The impact on mortgage interest rates that follows is not expected to be dramatic, but it will certainly act as a damper on home buying. The inventory of unsold homes has declined but remains well above normal levels, and will likely remain relatively high given pending foreclosures

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Mortgage Bankers Weekly Update



Mortgage Bankers Association for the week of 3/17/2010

Market Composite Index: (loan application volume) decreased 1.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1.7 percent compared with the previous week. .

Refinance Index: decreased 1.7 percent from the previous week and the seasonally adjusted Purchase Index decreased 2.3 percent from one week earlier.

Purchase Index: decreased 1.8 percent compared with the previous week and was 13.9 percent lower than the same week one year ago.

Refinance Share of Mortgage Activity: increased to 67.3 percent of total applications from 67.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 4.6 percent from 5.1 percent of total applications from the previous week.

Arm Share: decreased to 4.6 percent from 5.1 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

The most recent data on the housing market continues to show profound weakness .

Inventories of unsold homes have declined, but remain elevated. Expect further additions to the supply of homes on the market due to the still growing number of homes in or potentially in foreclosure. We expect that home prices may stabilize in 2010, but wont begin to grow appreciably until late 2011 or early 2012.

Although the Fed has reaffirmed plans to end the MBS purchase program by the end of March, mortgage rates havent budged to this point. We still anticipate that mortgage rates will likely rise by about half a percentage point in the second quarter, and then another half a percentage point through the remainder of the year, as the economic recovery continues. Mortgage rates at 6 percent should significantly slow refinance activity, but should not slow the modest housing market recovery we are forecasting.

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Mortgage Bankers Weekly Update



Mortgage Bankers Association for the week of 3/17/2010

Market Composite Index: (loan application volume) decreased 1.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1.7 percent compared with the previous week. .

Refinance Index: decreased 1.7 percent from the previous week and the seasonally adjusted Purchase Index decreased 2.3 percent from one week earlier.

Purchase Index: decreased 1.8 percent compared with the previous week and was 13.9 percent lower than the same week one year ago.

Refinance Share of Mortgage Activity: increased to 67.3 percent of total applications from 67.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 4.6 percent from 5.1 percent of total applications from the previous week.

Arm Share: decreased to 4.6 percent from 5.1 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

The most recent data on the housing market continues to show profound weakness .

Inventories of unsold homes have declined, but remain elevated. Expect further additions to the supply of homes on the market due to the still growing number of homes in or potentially in foreclosure. We expect that home prices may stabilize in 2010, but wont begin to grow appreciably until late 2011 or early 2012.

Although the Fed has reaffirmed plans to end the MBS purchase program by the end of March, mortgage rates havent budged to this point. We still anticipate that mortgage rates will likely rise by about half a percentage point in the second quarter, and then another half a percentage point through the remainder of the year, as the economic recovery continues. Mortgage rates at 6 percent should significantly slow refinance activity, but should not slow the modest housing market recovery we are forecasting.

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Market Composite Index: (loan application volume) increased 0.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 1.2 percent compared with the previous week.

Refinance Index: decreased 1.5 percent the previous week and the seasonally adjusted Purchase Index increased 5.7 percent from one week earlier.

Purchase Index: increased 7.2 percent compared with the previous week and was 10.7 percent lower than the same week one year ago.

Refinance Share of Mortgage Activity: decreased to 67.2 percent of total applications from 69.1 percent the previous week. The refinance share is at its lowest level since it was 66.1 percent in October 2009.

Arm Share: increased to 4.8 percent from 4.7 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

The economy is growing again. 4Q growth of 2009 exceeded expectations due to strong growth in business inventories. However inventory replacement is a short lived spurt, unless consumers buy. Weakness in the job market and a fragile recovery are likely to keep consumers from spending on big ticket items like houses and cars.

Existing home sales fell back in December and new home builders are not upbeat. The Fed remains unlikely to raise rates, however, they are going to end their MBS purchase program. This will certainly cause a rise in interest rates as the marketplace demands higher rates to compensate for risk.

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Mortgage Bankers Association Weekly Update


Mortgage Bankers Association for the week of 2/24/2010

Market Composite Index: (loan application volume) decreased 8.5 percent on a seasonally adjusted basis from one week earlier

Refinance Index: decreased 8.9 percent from the previous week. The seasonally adjusted Purchase Index decreased 7.3 percent from one week earlier, putting the index at its lowest level since May 1997.

Purchase Index: decreased 3.6 percent compared with the previous week and was 13.4 percent lower than the same week one year ago.

Refinance Share of Mortgage Activity: decreased to 68.1 percent of total applications from 69.3 percent the previous week.

Arm Share: increased to 4.7 percent from 4.4 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

The economy is growing again. 4Q growth of 2009 exceeded expectations due to strong growth in business inventories. However inventory replacement is a short lived spurt, unless consumers buy. Weakness in the job market and a fragile recovery are likely to keep consumers from spending on big ticket items like houses and cars.

Existing home sales fell back in December and new home builders are not upbeat. The Fed remains unlikely to raise rates, however, they are going to end their MBS purchase program. This will certainly cause a rise in interest rates as the marketplace demands higher rates to compensate for risk.

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Market Composite Index: (loan application volume) increased 14.3 percent on a seasonally adjusted basis from one week earlierRefinance Index: increased 21.8 percent from last week’s holiday adjusted index and increased 73.9 percent from last week’s unadjusted indexPurchase Index: increased 0.8 percent from one week earlier.Refinance Share of Mortgage Activity: increased to 71.5 percent of total applications from 68.2 percent the previous week unchanged at 4.0 percent of total applications from the previous week.Arm Share:: unchanged at 4.0 percent of total applications from the previous week.MBA outlook: (Excerpted from mbaa.org)The December jobs report was indicates a slow recovery. 85,000 jobs lost and an unemployment holding at 10 percent.Bloated inventories of unsold homes, buoyed by continued inflows of foreclosed properties, will keep a lid on home prices for some time. We do not expect more typical rates of home price appreciation until 2012. The Federal Reserve is unlikely to raise rates in 2010, but they will meet their commitment to purchase $1.25 trillion in agency MBS by the end of the first quarter.The MBAA anticipates that mortgage rates will rise by about a percentage point through the year, to end at 6.1 percent. Eye-popping federal budget deficits and positive economic growth will put upward pressure on Treasuries. Yields on mortgage securities will need to increase to get private investors back into the market once the Fed stops its purchases.Thanks for Readingwww.yourpropertypath.comRelated ArticlesThe Coming Mortgage Debt Reduction Programs FHA and Fannie Mae Propose Rule ChangeCitigroup Suggests Mortgage Debt Forgiveness
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Market Composite Index: (loan application volume) decreased 22.8 percent on a seasonally adjusted basis from the prior week.Refinance Index: decreased 30.5 percent from the previous week and the seasonally adjusted Purchase Index decreased 4.0 percent from one week earlier. The following week, the Refinance Index decreased 1.6 percent and the seasonally adjusted Purchase Index increased 3.6 percent.Purchase Index: decreased 33.1 percent the week of Christmas and increased 5.0 percent the week following. This measure was 26.2 percent and 28.2 percent lower, respectively, than the same period a year ago.Refinance Share of Mortgage Activity: mortgage activity for the week ending January 1, 2010 is 68.2 percent, a decrease from 69.6 percent for the week ending December 25, 2009.MBA outlook: (Excerpted from mbaa.org)In summary the MBAA sees another year of high employment, rising home sales and prices beginning to stabilize. But continued weakness in the job market and excess supply and shadow inventory will slow any recovery in the housing market.The MBAA sees unemployment rate at about 10% at the end of 2010, and core inflation rates of below 2%. Fed rate is expected to remain at its current level throughout 2010.But, property values will not recover until unsold inventory returns to normal levels. Affordability is at record levels, yet there is no strong indication that the demand recovering. People do not yet seem to trust the recovery and many do not have the necessary down payment or can clear tighter loan qualificationsThe MBAA site economic report indicates a fragile recovery, but makes note that without credit the recovery remains tepid at best. The site makes note: Smaller businesses and consumers are heavily dependent on banks for obtaining credit, and there is little evidence that, as yet, banks have loosened the purse strings.Bank loans to businesses and consumers are still falling with few signs of stopping or slowing down. Part of the decline is declining demand, but the fall is too large to be explained by weakness in demand alone. The banks are simply not yet stepping up to fill the vacuum.Thanks for Readingwww.yourpropertypath.comRelated ArticlesFHA and Fannie Mae Propose Rule ChangeFHA Losses: What it MeansFHA Has New Rules
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Mortgage Bankers Weekly Update: Loan Apps Decline

Mortgage Bankers Association for the week of 12/23/2009Market Composite Index: (loan application volume) decreased 10.7 percent on a seasonally adjusted basis from one week earlierRefinance Index: decreased 10.1 percent from the previous week and the seasonally adjusted Purchase Index decreased 11.6 percent from one week earlier.Purchase Index: decreased 13.4 percent compared with the previous week and was 32.7 percent lower than the same week one year agoRefinance Share of Mortgage Activity: increased to 75.9 percent of total applications from 75.2 percent the previous week.ARM Refinance Activity: decreased to 3.8 percent from 4.1 percent of total applications the previous week.MBA outlook: (Excerpted from mbaa.org)In summary the MBAA sees another year of high employment, rising home sales and prices beginning to stabilize. But continued weakness in the job market and excess supply and shadow inventory will slow any recovery in the housing market.The MBAA sees unemployment rate at about 10% at the end of 2010, and core inflation rates of below 2%. Fed rate is expected to remain at its current level throughout 2010.But, property values will not recover until unsold inventory returns to normal levels. Affordability is at record levels, yet there is no strong indication that the demand recovering. People do not yet seem to trust the recovery and many do not have the necessary down payment or can clear tighter loan qualificationsThe MBAA site economic report indicates a fragile recovery, but makes note that without credit the recovery remains tepid at best. The site makes note: Smaller businesses and consumers are heavily dependent on banks for obtaining credit, and there is little evidence that, as yet, banks have loosened the purse strings.Bank loans to businesses and consumers are still falling with few signs of stopping or slowing down. Part of the decline is declining demand, but the fall is too large to be explained by weakness in demand alone. The banks are simply not yet stepping up to fill the vacuum.Thanks for Readingwww.yourpropertypath.comRelated ArticlesFreddie Mac Weekly Mortgage Update: Still Below 5 PercentARM's - How Do They Work?The Coming Mortgage Debt Reduction Programs
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Mortgage Bankers Weekly Update

Mortgage Bankers Association for the week of November 18, 2009Market Composite Index: (loan application volume) decreased 2.5 percent on a seasonally adjusted basis from one week earlier. .Refinance Index: decreased 1.4 percent from the previous weekPurchase Index: decreased 7.9 percent compared with the previous week and was 14.7 percent lower than the same week one year ago.Refinance Share of Mortgage Activity: increased to 72.9 percent of total applications from 71.5 percent the previous week. This refinance share is the highest share since the week ending May 15, 2009ARM Refinance Activity: decreased to 5.4 percent from 5.5 percent of total applications from the previous week.MBA outlook: (Excerpted from mbaa.org) The delinquency rate for mortgage loans on one-to-four-unit residential properties rose to a seasonally adjusted rate of 9.64 percent of all loans outstanding as of the end of the third quarter of 2009.Its job loss that is now hurting people. Job losses continue to increase and drive up delinquencies and foreclosures because mortgages are paid with paychecks, not percentage point increases in GDP. A perfect observation by Jay Brinkmann, MBAs Chief Economist.According to the MBAA.org site: T he outlook is that delinquency rates and foreclosure rates will continue to worsen before they improve. First, it is unlikely the employment picture will get better until sometime next year and even then jobs will increase at a very slow pace. Perhaps more importantly, there is no reason to expect that when the economy begins to add more jobs, those jobs will be in areas with the biggest excess housing inventory and the highest delinquency rates.Thanks for Readingwww.yourpropertypath.comRelated ArticlesFHA Losses: What it MeansFHA Has New RulesLoan Modification: A Primer
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