Mortgage Industry Trends

No “One and Done” for the Fed

No-One-and-done
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No-One-and-doneThey may not be one of the 68 teams that made it to the big dance for March Madness, but like each team in the NCAA tournament, the FED says it “ain’t gonna be one and done”. They want to play on…(Fed Rates).

In the December FOMC meeting, Janet Yellen, and the Fed, raised the short terms slightly. No real surprise as this was projected and expected by just about everyone. Interestingly though, the December rate hike had the effects of lowering the mortgage rates which spurred a slight resurgence in refinances.

With that increase, the Fed projected increases of at least a quarter point, four more times in 2016. The experts now forecast that the Fed will most probably hold rates at their March meeting, with a potential for maybe one more rate hike before year-end. Who knows? After all, it is an election year.

Either way, things appear to be looking pretty good for home financing. A slight rise in the short term rates should not adversely affect the mortgage rates. If anything it may tend to hold them steady, which is good for refi’s and purchase loans alike. Help to get more people into the game.

In most areas of the country property values have recovered from the problems of 2008 and home owners again have equity. This equity with relatively low home loan rates allows them to consider selling and moving up, or refinancing to restructure debt. Either is good for mortgage lenders.

Don’t get caught up in all the speculation about the markets, what the Fed might do, or not do, and where the rates are headed. Now is a good time to educate the public on the benefits of home ownership and of all the products and services available to them to either buy or refinance a home.  Although it may look like it; these low rates may not last forever.

It’s time to get your game on and compete in the “big dance”. Be a bracket buster, crash the markets and pull down more loans.

The opportunities exist for those prepared, with trained knowledgeable staff and the technology to educate and service consumers, while manufacturing quality, compliant loans.

Don’t overlook the TRIDbits; review to detect and correct defects before loans close so you can realize the biggest bang for your buck.

The game has changed. Play different. Loanlogics is here to help.

Michael Vitali

About the Author

Michael Vitali

Michael L. Vitali – Independent Consultant to the Mortgage Industry Mike Vitali is an independent consultant to the mortgage industry on matters concerning compliance and mortgage lending. He most recently served as the Senior Vice President and Chief Compliance Officer for LoanLogics, monitoring regulatory developments and their practical implications for the mortgage lending industry. His duties included research, interpretation, and analysis of existing and proposed legislation related to the industry in support of recommendations for policy and/or procedure changes to maintain continued quality and compliance with all applicable laws, rules and regulations, investor requirements, and standard mortgage practices. In his more than 40 years in the mortgage industry, in senior level management, he has gained experience in all areas of mortgage lending, risk management, and compliance. Mike is a past President of the MBA of Greater Philadelphia, is a charter member and was the second Chairman of the MBA of Pennsylvania, and a past board member and Legislative Chair of both associations. He is a recipient of the 1998 Mortgage Banker of the Year Award from the MBA of Greater Philadelphia, and the 2003 Chairman's Award from the MBA of PA, and currently serves on several compliance related task forces for MBA.
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Michael Vitali

About Michael Vitali

Michael L. Vitali – Independent Consultant to the Mortgage Industry Mike Vitali is an independent consultant to the mortgage industry on matters concerning compliance and mortgage lending. He most recently served as the Senior Vice President and Chief Compliance Officer for LoanLogics, monitoring regulatory developments and their practical implications for the mortgage lending industry. His duties included research, interpretation, and analysis of existing and proposed legislation related to the industry in support of recommendations for policy and/or procedure changes to maintain continued quality and compliance with all applicable laws, rules and regulations, investor requirements, and standard mortgage practices. In his more than 40 years in the mortgage industry, in senior level management, he has gained experience in all areas of mortgage lending, risk management, and compliance. Mike is a past President of the MBA of Greater Philadelphia, is a charter member and was the second Chairman of the MBA of Pennsylvania, and a past board member and Legislative Chair of both associations. He is a recipient of the 1998 Mortgage Banker of the Year Award from the MBA of Greater Philadelphia, and the 2003 Chairman's Award from the MBA of PA, and currently serves on several compliance related task forces for MBA.
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