In Washington State, mortgage brokers and loan officers now need to be licensed. Beginning in January of 2007, loan officers needed to submit fingerprints and undergo a background check. Sometime last year they also needed to pass a competency exam and complete some continuing education.
At the end of 2006 there were approximately 18-19,000 loan officers. 13,722 applied for the license, and by the end of last year, only 5,720 had successfully completed the entire process. Part of this is due to the slowing industry, but I wonder if some are still operating without a license.
Any advertising by a loan officer must list their license number. The Department of Financial Instiutions (DFI) is advising consumers to verify the status of loan brokers or originators either online at http://dfi.wa.gov/cs/list.htm or by calling 877-746-4334.
January 24, 2008
January 23, 2008
Sellers looking for any kind of help
Sellers and their agents have been turning to St. Joseph for help in selling their homes. The Catholic saint is believed to help with home related matters. You can purchase a “real-estate kit” online for about $5, and it consists of a 3-inch statue of the saint, a prayer and burying instructions. Apparently burying the saint upside down near the for-sale sign, front or back door will help you sell your home more quickly.
Some Catholic leaders think burying St. Joseph is not terribly respectful. They also say that faith and devotion are necessary, otherwise it is simply superstition. I would also hope that the sellers’ agents are doing everything in their power to help sell the home, and not simply relying on faith.
Some Catholic leaders think burying St. Joseph is not terribly respectful. They also say that faith and devotion are necessary, otherwise it is simply superstition. I would also hope that the sellers’ agents are doing everything in their power to help sell the home, and not simply relying on faith.
January 22, 2008
The FED drops both rates again
The Federal Reserve in an unscheduled meeting today dropped both the federal funds rate and the discount rate by 3/4 of a point. The federal funds rate (the rate many credit card and home equity rates are based on) now stands at 3.5%. There is speculation that the FED will drop rates again at their normal meeting on January 30th.
It is not clear what affect this will have on mortgage lending rates. As I have mentioned previously, lending rates follow the bond market, not the rise and fall of prime. The rate drop was primarily to ease concerns about a tight credit market for business and to probably to bolster the stock market. As of 4:30 east coast time, the DOW is down 128 points, and has dropped substantially in the last few days.
I don't know that this rate drop is a wise move. The U.S. (unfortunately) depends heavily on foriegn investors to sustain our spending. Lower rates will attract fewer investors, so that spigot of cash may be shut off. Our dollar is already weak in the world market, and a weakening dollar means any investment in U.S. dollars will be worth even less.
There are also significant inflationary pressures with rising fuel and food prices. The FED would typically raise rates to fight inflation, not lower them drastically as they have done today. It seems that the rate drop was simply to stop a panic in the stock market. I don't know that it will work, or if it is worth the risk as it may create much larger problems in the near future.
It is not clear what affect this will have on mortgage lending rates. As I have mentioned previously, lending rates follow the bond market, not the rise and fall of prime. The rate drop was primarily to ease concerns about a tight credit market for business and to probably to bolster the stock market. As of 4:30 east coast time, the DOW is down 128 points, and has dropped substantially in the last few days.
I don't know that this rate drop is a wise move. The U.S. (unfortunately) depends heavily on foriegn investors to sustain our spending. Lower rates will attract fewer investors, so that spigot of cash may be shut off. Our dollar is already weak in the world market, and a weakening dollar means any investment in U.S. dollars will be worth even less.
There are also significant inflationary pressures with rising fuel and food prices. The FED would typically raise rates to fight inflation, not lower them drastically as they have done today. It seems that the rate drop was simply to stop a panic in the stock market. I don't know that it will work, or if it is worth the risk as it may create much larger problems in the near future.
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