The Fed sees some signs of life, just like all of us do, in certain parts of the economy, and inflation not being an issue. Conditions in financial markets were roughly unchanged, but activity in the housing sector has increased over recent months. “Household spending appears to be expanding but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit.”
Mortgage banking is a numbers game. Although the illustration above might remind some of their CFO, in other circles it might remind others of what some mortgage bankers imagine they are facing right now: MI rescissions. Rescissions are not new. But what is this chatter about MI companies and their rash of rescinding coverage? One well-informed person wrote to me and said, "It seems that some MI companies are employing a rescind now/appeal later approach."
− Discount points may not be included in the new mortgage amount.” They are also changing their “Net Tangible Benefit Guidelines” for refi’s so that the borrower’s total payment (PITI) must be reduced by the greater of 5% or $50, if transaction changes the loan type to a fixed rate loan from an ARM, the new the fixed rate may not be more than 2% above the existing ARM interest rate, and term reductions will no longer be eligible.