Fed Leaders Move Markets

Over the past week, offsetting comments from top Fed officials caused some volatility for mortgage rates but little net change. Tame inflation data was favorable, however, and mortgage rates ended the week a little lower.

Late Friday afternoon, Fed Chair Yellen surprised investors with an idea for a new spin for U.S. monetary policy. Yellen said that Fed officials were researching whether a “high-pressure economy” may be the best way to realize and sustain improved levels of economic activity. Under this approach, the Fed would keep rates low longer than usual, and would do so without concern that inflation may rise above its 2% target level. Global long-term bond yields, including U.S. mortgage-backed securities, rose late Friday as investors saw a risk of higher inflation if the Fed became more focused on economic growth and less on controlling inflation.

Mortgage rates then reversed direction on Monday when Fed Vice Chair Fischer warned of the risks of keeping rates low for too long. Without specifically referring to Yellen’s comments, he suggested that low rates can lengthen recessions and can threaten the stability of financial markets. Since his statements contrasted with those of Yellen, they had the opposite effect on mortgage rates.

Tuesday’s release of the consumer price index (CPI) contained favorable news for mortgage rates. Core inflation in September came in below the consensus forecast at an annual rate of 2.2%. It has held steady close to this level all year.

Source: MBS Quoteline

Prospect Mortgage Ranks No. 1 in 203(k) for 2016 by HUD

The U.S. Department of Housing and Urban Development (HUD) recently released its year-end 203(k) endorsement summary report and Prospect Mortgage ranks No. 1 in 203(k) loans for 2016!

With its year ending September 30, HUD reported that Prospect had 962 endorsements for 2016, which was 129 more than any other lender. Once a 203(k) loan is funded, it is sent to HUD for an FHA insurance endorsement. HUD reviews the file for completion and provides the Mortgage Insurance Certificate, which deems the file endorsed.

“One of our goals has been to be the best renovation lender and make it crystal clear to our customers and agent relationships that a renovation loan can help buyers obtain a dream home while helping to move more inventory,” said John Adams, Prospect’s National Renovation Manager. “Our status as the No. 1 renovation lender in the nation is due to a team effort from Sales, Operations and Management. Together we work tirelessly to grow our renovation business and that kept us in the No. 1 spot.”

Other keys to Prospect’s success have been hiring top-tier renovation talent and creating a dedicated renovation Operations team, which gives more attention and specialized experience to every renovation loan entering the pipeline.

“Our goal four years ago was to become the No. 1 renovation lender in America,” said Doug Long, Prospect’s President of National Lending. “I am very proud of our leadership and team members who helped make this goal a reality.”

Contact me if you would like to learn more about Prospect’s renovation financing programs!

Informational materials for Real Estate Professionals only. Materials are not intended for use by or distribution to consumers as defined by Section 1026.2 of Regulation Z, which implements the Truth-in-Lending Act.

Prospect Mortgage Ranks No. 1 in 203(k) for 2016 by HUD

The U.S. Department of Housing and Urban Development (HUD) recently released its year-end 203(k) endorsement summary report and Prospect Mortgage ranks No. 1 in 203(k) loans for 2016!

With its year ending September 30, HUD reported that Prospect had 962 endorsements for 2016, which was 129 more than any other lender. Once a 203(k) loan is funded, it is sent to HUD for an FHA insurance endorsement. HUD reviews the file for completion and provides the Mortgage Insurance Certificate, which deems the file endorsed.

“One of our goals has been to be the best renovation lender and make it crystal clear to our customers and agent relationships that a renovation loan can help buyers obtain a dream home while helping to move more inventory,” said John Adams, Prospect’s National Renovation Manager. “Our status as the No. 1 renovation lender in the nation is due to a team effort from Sales, Operations and Management. Together we work tirelessly to grow our renovation business and that kept us in the No. 1 spot.”

Other keys to Prospect’s success have been hiring top-tier renovation talent and creating a dedicated renovation Operations team, which gives more attention and specialized experience to every renovation loan entering the pipeline.

“Our goal four years ago was to become the No. 1 renovation lender in America,” said Doug Long, Prospect’s President of National Lending. “I am very proud of our leadership and team members who helped make this goal a reality.”

Contact me if you would like to learn more about Prospect’s renovation financing programs!

Informational materials for Real Estate Professionals only. Materials are not intended for use by or distribution to consumers as defined by Section 1026.2 of Regulation Z, which implements the Truth-in-Lending Act.

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