Know Before You Owe: Closer to Closing — Testing, Testing ….

The Consumer Finance Protection Bureau has begun testing two new forms to replace the current HUD-1 and Final TIL, which integrate the existing forms into one consumer user friendly form.

The Bureau is seeing feedback on which of the two designs works best.  To see examples go to:  http://www.consumerfinance.gov/knowbeforeyouowe/  and share your thoughts.

Unlike previous changes that have impacted mortgage brokers and bankers, the Bureau is seeking input on the forms, the process and how functionality of disclosures.  The new forms are being tested in Birmingham Alabama.  To have your say go to:

http://www.consumerfinance.gov/knowbeforeyouowe/

• Which design works best? Why?
• Is the information presented in a consumer-friendly format?
• Could consumers easily identify key loan terms and closing costs?
• Does the disclosure cover all the important information you need?
• Is the document easy for lenders and settlement agents to use?

Columbus Day

Monday, October 10^th is Columbus Day, a federal holiday.  Stonegate Mortgage Corporation offices will be open, however bond market and most if not all banks are closed for the day. 

 As such there will be no funding of loans Monday October 10^th, and the lock desk will not be open.

Most importantly, as a federal holiday, Monday October 10^th cannot be counted as a rescission day for refinance loan closing purposes. 

Lock expirations falling on a weekend or holiday “roll” to the next business day, however we remind you to check your expiration dates to account for the non-rescission day and shorter week in your loan funding schedules.

Mortgage Market Update

Good morning,

We are seeing unprecedented trading in the MBS markets this morning and traders as well as Tier One lenders have been struggling to come up with prices to convert to mortgage rates-we will have pricing posted as soon as possible however the lock desk may be delayed slightly from the 11am ET start time to allow some consensus to be built in the markets.

MBS is trading up 24 ticks after the huge run up late yesterday so expect some improvement once pricing is established.

 

Thank you,

Mike Brown

Capital Markets

Stonegate is Peddlin’ for Pet Victims at RAGBRAI!

Stonegate’s participation in the 2011 Register’s Annual Great Bicycle Ride Across Iowa (RAGBRAI) is dedicated to the relief of pets affected by natural disasters such as the tornadoes and floods that occurred across the Midwest this year.

Prior to and during RAGBRAI, Stonegate will host a fundraiser, Peddlin’ for Pet Victims, to help provide shelter and care for animals displaced during similar natural disasters, or rescued from mass cruelty situations.

With Stonegate branches, customers and Partners located well within areas affected by the recent disasters, Peddlin’ for Pet Victims will help those communities by collecting monetary donations for RedRover Responders (formerly the Emergency Animal Rescue Service, or EARS) who:

• Offer financial assistance so pet owners can obtain urgent veterinary care
• Shelter animals who are displaced by natural disasters and other crises like criminal seizures of puppy mills and hoarding cases
• Strengthen the common bond between people and animals through a variety of programs
• Help children develop compassion and empathy through stories and discussion

The RedRover Responders Program consists of 3,000 volunteers nationwide and in Canada who are ready to respond when a natural or man-made disaster puts animals at risk.

Founded in 1987, RedRover (formerly United Animal Nations) has a 25-year track record of providing shelter, care and compassion to animal victims of disasters, reuniting them with their families or placing them in new homes.

Thank you for your support of Peddlin’ for Pet Victims. Donate now, or text ANIMAL to 85944 for an automatic $10 donation, and help RedRover Responders and Stonegate make a difference in animals’ lives.

Mortgage Market Update

After a wild week last week economic releases are light in the coming days, so focus in bond and equity markets is the world-wide recovery, or more importantly lack thereof. With 10 year treasury dabbling with the 2 handle last week, we find the yield early today at 2.99% so the safety play is still on.

Stocks appear slightly weak at the open but no 200 point drops in the works for this morning. MBS is trading close to the closing price from Friday so do not expect much excitement today-for a change.

Greece, Portugal and the growing concern of losing momentum in the US is driving yields lower-stocks still holding up after a long run from the bottom in 2009, as it appears the only place the US stimulus activity seems to have made a difference is in corporate treasuries! Now that that has run out, we shall see how the earnings look this summer.

 

Mike Brown

Capital Markets

Stonegate Mortgage Corporation