Favorable re-pricing took place this morning in the mortgage rate department

This morning, Janet Yellen testified at her confirmation hearing to be the next Federal Chief. She expressed strong support for the Fed's bond purchase program, which lifted MBS. Weak results for the 30-year auction caused MBS prices to move lower in the middle of the session, but MBS later climbed back to the highs. Today's economic data had little impact and the Dow is up 50 points. Tomorrow Industrial Production, Empire State, and Import Prices will all be released.

Stay Tuned – you never know which way the rates will go next!

 Michelle Morris
Senior Loan Officer
Michelle@SDFunding.com
Cell: 619-850-3600
Fax: 619-821-8908

San Diego Funding
2468 Historic Decatur Road #160
San Diego, CA 92106
NMLS 264030   CA BRE 01238196

Job Gains Surge

Investors, highly focused on the economic data, had a lot to consider this week. The Economic Calendar was packed, and nearly all the major reports exceeded expectations. Stronger economic growth is negative for mortgage rates, and rates ended the week higher.
A shockingly strong Employment report caused a swift increase in mortgage rates on Friday. Against a consensus forecast of 120K, the economy added 204K jobs in October, and the figures from the prior two months were revised higher by 60K. The Unemployment Rate, however, rose from 7.2% to 7.3%. The increase in the Unemployment Rate was influenced by the government shutdown during the first half of October. The headline figure of 204K jobs is based on a survey which counts furloughed government workers as employed, while the Unemployment Rate is based on a different survey which counts them as unemployed. Before the data, most investors had expected that the Fed would begin to taper its bonds purchases in March or April. If the pace of job creation continues at this level, though, the Fed could begin to scale back sooner.
In similar fashion, the Gross Domestic Product (GDP) report, the broadest measure of economic growth, was much better than expected. Third quarter GDP rose to 2.8%, well above the consensus of 2.0%. The reaction in mortgage markets was somewhat limited, though, since the details did not quite indicate the same strength as the headline number. Part of the outperformance was due to an unexpectedly large increase in inventories, which means that some growth was "pulled forward" from the fourth quarter. The extra goods produced during the third quarter which caused inventories to expand will reduce production in the fourth quarter.

Requirements for Non-Warrantable Condos

Non-Warrantable Condos

Occupancy	LTV/CLTV	FICO	DTI	Transaction Type
Owner Occupied	80%/80%	660 Minimum	45% Maximum	Purchase, R&T Cash-Out
2nd Home (Vacation Home)	75%/75%	660 Minimum	45% Maximum	Purchase, R&T Cash-Out

(Investment properties are entertained case by case; maximum LTV/CLTV 65% - Requires reviewing of all condominium project documents to grant exception)

Litigation OK!

High Investment Property Concentration OK!

High Delinquency HOA Default Ratio OK!

Non-occupying co-borrowers OK!

·      NO SHORT-TERM RENTALS

·      NO NEW PROJECTS (ESTABLISHED PROJECTS ONLY)

·      NO LOFTS

·      NO ENTITY MAY OWN MORE THAN 10% OF PROJECT

(Exceptions granted if project is large)

·      $417,000.00 MAXIMUM LOAN AMOUNT

(Exceptions granted case by case)

Contact me today for assistance on getting difficult condo projects funded.

Thank you very much for your business and have an amazing day.

Michelle Morris & Melissa Howell

Michelle: 619-850-3600 Email: Michelle@sdfunding.com

Melissa: 619-818-1263 Emails: MelissaH@sdfunding.com                           

NMLS 264030   CalBRE 01238196

NMLS 264026   CalBRE 01477506

Don't let a Forclosure or Short Sale get you down...

Did you know that even one day out of a Foreclosure, Deed in Lieu or Short Sale, we can help you or your buyers! It's no Problem as long as you can do the below guidelines:

• Min Fico score 660
• Cannot have multiple derogatory accounts (ie: bankruptcy and short sale)
• No gifts allowed - all funds for down payment must be seasoned 60 days·     
• 20-30% down is required
• Loan amounts up to 4 Million
• 43% Debt to income ratios
• 2 appraisals required
• Only 5/1 and 7/1 programs available, no 30 year fixed loans
• IRA distributions are acceptable, but one full month is needed
• Need a minimum of 45 day escrow to close

For more information, please call Michelle.

Michelle Morris
Senior Loan Officer
Michelle@SDFunding.com
Cell: 619-850-3600
Fax: 619-821-8908

San Diego Funding
2468 Historic Decatur Road #160
San Diego, CA 92106
NMLS 264030   CA BRE 01238196

Manufacturing Activity Improves

It was a relatively quiet week for mortgage rates. A slightly more bullish economic outlook from the Fed and stronger than expected manufacturing data were the main influences this week. Good news for the economy is negative for mortgage rates, however, and rates ended the week a little higher.
As widely expected, there was no change in Fed policy at Wednesday's Fed meeting, but Fed officials slightly upgraded their outlook for the economy from the prior statement. Fed officials again stated that they intend to wait for signs of sustained improvement in the labor market before they reduce their bond purchases. The consensus view is that the Fed will begin to scale back its bond purchases in April. The statement left the door open for an earlier start of the taper if the economic data is strong enough.
Early in the week, there were few surprises in the economic data and little movement in rates. That changed, though, when stronger than expected manufacturing data pushed mortgage rates higher on Thursday and Friday. The October ISM national manufacturing index rose to the highest level since April 2011, and the October Chicago PMI regional manufacturing index jumped to the highest level since March 2011. The consensus forecasts had been for lower readings due to the government shutdown at the beginning of the month. Investors will be watching to see if other sectors of the economy were similarly unaffected by the shutdown.