Napa Mortgage News

Trending Credit Data...easier qualifying.....low rates & market news

April 3rd, 2016 1:36 PM by Dale DiGennaro

Qualifying for your home loan is getting easier!

Dear Gena,

I hope you all escaped the office pranksters or family tricksters on April Fools Day!

I told everyone in my office that rates had worsened drastically overnight!

Ok....so I guess they didn't find it as amusing as I did!

In all seriousness though......I am very pleased with the direction our industry is moving and one of the biggest changes expected by mid 2016 is the move to

"trending credit data".

Fannie Mae will require lenders to use trending credit data when underwriting single family borrowers in their automated loan system. This data allows a smarter, more thorough analysis of a borrowers credit history. Currently, credit reports used in mortgage lending only indicate the outstanding balance and whether a borrower has been on time or delinquent on existing credit accounts such as credit cards, mortgages or student loans. With trended credit data, lenders will have access to the monthly payment amounts that a consumer has made on these accounts over time.

Among other benefits, this will allow lenders to determine if the borrower tends to pay off revolving credit lines such as credit cards each month, or if the borrower tends to carry a balance from month-to-month while making minimum or other payments.

In addition...Fannie Mae is building out a new capability in their automated underwriting system to help lenders more efficiently serve borrowers who do not have a traditional credit history. Currently, Fannie Mae requires lenders to use a manual process to underwrite loans made to non-traditional credit borrowers. With the simplicity and the additional certainty that Desktop Underwriter provides to lenders, more borrowers will have access to affordable, sustainable mortgage credit.

We will see how this ends up working out, but we are hoping this means we will see more of our communities realizing the dream of home ownership!

DAILY RATE LOCK

Wednesday, March 23th | Get Full Report

	6/32

BONDS

30 yr - 1.92%

	16

DOW

17,565

	21

NASDAQ

4,799

A few factors potentially impacting mortgage rates right now include:

New Home Sales
Durable Goods Orders
Weekly Unemployment Claims (every Thursday)

CLICK HERE to sign up and Get the full report (daily or weekly) on how these factors could influence your personal mortgage rate and receive suggestions on when to lock.

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Dovish Speech from Yellen

Despite the release of a wide range of major economic data, a speech from Fed Chair Yellen had the biggest influence on mortgage rates over the past week. Her comments were favorable for both stocks and bonds, and mortgage rates ended the week lower.

Since the March 16 Fed meeting, several Fed officials have expressed support for tightening monetary policy at a more rapid pace. In Tuesday's speech, Yellen laid out reasons that the Fed should take a very gradual approach to tightening monetary policy. According to Yellen, economic troubles in other countries pose downside risks to the U.S. economy. She also said that it is unclear if the recent pickup in core inflation will be sustained or whether it was due to temporary factors. Yellen's message about an outlook for low inflation and a longer expected timeline for tightening by the Fed was good news for mortgage rates.

There were few surprises in the important monthly employment report released on Friday, and it caused little reaction. Against a consensus forecast of 210K, the economy added 215K jobs in March. This is close to the average monthly pace seen over the past year.

The unemployment rate edged up from 4.9% to 5.0%. The higher rate was mostly due to people entering the workforce, which is a sign of strength. Average hourly earnings, an indicator of wage growth, rose 0.3% from February, matching expectations. The vast majority of the job gains came in the service sector, while manufacturing continued to shed jobs.

Looking ahead, Factory Orders will be released on Monday. The ISM national services index and the JOLTS report will come out Tuesday. JOLTS measures job openings and labor turnover rates. The Fed minutes from the March 16 meeting will be released on Wednesday. These detailed minutes provide additional insight into the debate between Fed officials and have the potential to significantly move markets.

Got my Continuing Education Hours in with Trainer David Luna at an event sponsored by the North Bay Chapter of The California Association of Mortgage Professionals!

And...

Enjoyed the East Bay Chapter's annual crab feed!

Thank you for always trusting in us to do the best for you and your family and please feel free to call me anytime with your questions. I will be happy to share with you whatever information you may need!