What Do You want in a new home?

Owning a Home Benefits Your Children

Californians Purchase in 2013

A Fun Way to Help Children

I will make sure you are in the right loan program for you long term goals!

The results are out for Fannie Mae’s program that recognizes top performing servicers.

Known as the Servicer Total Achievement and Rewards, or STAR, the program was created to establish servicing standards and acknowledge Fannie Mae servicers that stand out for their performance, customer service, and foreclosure prevention efforts, according to a release.
Only servicers with STAR scorecard results that are at or above median levels compared to those in their peer group receive recognition. Servicers were broken down into different peer groups based on portfolio composition and size. Servicers in peer group one have more than 215,000 Fannie Mae loans, group two has more than 75,000 loans, while group three has at least 500 seriously delinquent Fannie Mae loans.
Servicers recognized for the first half of 2013 in peer group one were Green Tree Servicing, Nationstar Mortgage, Ocwen Financial, PHH Mortgage, PNC Financial Services Group, Seterus, and Wells Fargo.
In peer group two, Fannie Mae gave a nod to Fifth Third Bank and Regions Bank.

Meanwhile, servicers acknowledged in the third group were Capital One, Colonial Savings, M&T Bank, Navy Federal Credit Union, Sovereign Bank, and Third Federal Savings and Loan.
For the first time, the 2013 midyear results also included key metrics to measure servicer performance and foreclosure prevention efforts.
“Our mortgage servicers’ efforts are critical to keeping people in their homes, preventing foreclosures and stabilizing communities,” said Leslie Peeler, SVP of Fannie Mae’s national servicing organization. “With our expanded 2013 mid-year assessment, we continue to recognize servicers that are on track to meet overall performance scorecard goals while also recognizing more servicers that are top performers in specific operational areas. We are working hard to share more information regarding our STAR assessment process so the industry can more easily identify and adopt best practices for the benefit of homeowners.”
The specific metrics used to examine performance and foreclosure prevention results were ability to assist 90-plus delinquent borrowers; efficiency when helping borrowers retain their homes; and liquidation efficiency when handling short sales and deeds-in-lieu.
Among those three metrics, Fannie Mae recognized servicers who showed leading performance when compared to their peer groups.
Three servicers were recognized for their ability to handle 90-plus delinquent accounts: Seterus, Regions Bank, and Branch Banking & Trust Company.
Seterus also stood out for retention efficiency, along with OneWest Bank and Colonial Savings.
The servicers that were acknowledged for liquidation efficiency were GreenTree Servicing, Fifth Third Bank, and Navy Federal Credit Union.

Ontario, California Real Estate Loans

In This Issue           Last Week in Review: Positive economic data capped a rough week for Mortgage Bonds and home loan rates, despite tame inflation data. Forecast for the Week: Housing news and the Fed meeting minutes highlight a quiet economic calendar. View: Knowing the difference between action and activity can make a big difference in achieving your goals. The easy tips below can help.           Last Week in Review           "If you build it, they will come." And while that line from the movie Field of Dreams may have referred to a baseball field, after last week's news it could also apply to the housing market. The housing sector continues to improve despite the recent rise in home loan rates, as Housing Starts rose 5.9 percent from June to July to 896,000 on an annualized basis. This was in line with estimates. Building Permits, a sign of future construction, were up 2.7 percent, coming in above expectations. In addition, the National Association of Home Builders Housing Market Index rose to 59 in August from the 57 recorded in July. This is the best level in nearly eight years. Retails Sales for July were also positive, rising for the fourth straight month. When stripping out autos, sales surged by 0.5 percent, the fastest pace this year. And there was good news for the labor market, as Weekly Initial Jobless Claims fell to 320,000, a level not seen since October 2007. There were no apparent seasonal distortions in the numbers. In the manufacturing sector, Empire State Manufacturing came in above expectations, while the Philadelphia Fed Index came in just below expectations. What does this mean for home loan rates? Remember that the Fed has been buying $85 billion of Bonds a month to help stimulate the economy and housing market. This includes Mortgage Bonds, to which home loan rates are tied, and these purchases have helped home loan rates remain attractive. The Fed has said the rate of its purchases will continue to depend on economic data, and could be increased or decreased accordingly. Rest assured that the Fed was watching all the good economic reports from last week very closely. The data that continues to come in will be a key factor in whether the Fed begins tapering these purchases as early as its meeting in mid-September, or if it waits until later in the year or even 2014. One thing that is also important to note--inflation at both the wholesale and consumer levels remains tame, as evidenced by the Producer and Consumer Price Indexes for July. This gives the Fed cover to continue its Bond purchases if economic data takes a turn for the worse. The bottom line is that now remains a great time to consider a home purchase or refinance, as home loan rates remain attractive compared to historical levels. Let me know if I can answer any questions at all for you or your clients.           Forecast for the Week           The economic calendar is quiet this week, but the Fed meeting minutes could move the markets. Housing data is front and center, with Existing Home Sales on Wednesday and New Homes Sales on Friday. The only other report of significance is Thursday's Weekly Initial Jobless Claims. In addition, the minutes from the Fed's latest Federal Open Market Committee meeting will be released on Wednesday at 2:00 p.m. ET. If the minutes hint that the Fed may start tapering its Bond purchases after its September meeting, this could cause volatility to ramp up to an extremely high level. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond that home loan rates are based on.  When you see these Bond prices moving higher, it means home loan rates are improving -- and when they are moving lower, home loan rates are getting worse. To go one step further -- a red "candle" means that MBS worsened during the day, while a green "candle" means MBS improved during the day. Depending on how dramatic the changes were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning. As you can see in the chart below, last week was a rough one for Mortgage Bonds and home loan rates. I'll be watching the news closely to see if economic reports continue to be positive...and if there is more talk of the Fed's tapering its Bond purchases in September. Chart: Fannie Mae 3.5% Mortgage Bond (Friday Aug 16, 2013)           The Mortgage Market Guide View...             Activity or Action Do You Know the Difference? The words activity and action sound similar, and are sometimes used as synonyms. To a casual observer, there may not be any visual difference between one person's activity and another'saction. Yet when it comes to reaching goals in business or life, activity and action are two very different things. So what's the difference?  Activity is 'doing', it has no destination, it is an expense of energy. Action is 'accomplishing', it is based on a plan, it builds its own momentum. Here are a few examples to help clarify: Activity: Making a New Year's resolution. Action: Stop smoking. Activity: Planning a newsletter to clients. Action: Send a newsletter to clients. Activity: Researching gym memberships. Action: Exercise. Activity: Reading diet books. Action: Eat healthy. Is activity bad?  Absolutely not. We need to plan, and activity is an essential step in the process. This is the appropriate place to prepare, research, study, set goals, or create a vision. Still, it's a preliminary step, and that's where people tend to get stuck. (Did you ever notice how busy you feel when you're procrastinating?) In reality, activity is only preparation for the actions that will make a difference in your life and career. How to take more action: If activity has become your preferred form of procrastination, here's what to do: Schedule it. Schedule everything from working out, to writing prospecting emails, to sending newsletters. Remember, don't use this time for planning goals, use it for taking actions that move your goals ahead. Pick a date. For larger scale goals or projects requiring more planning, it's good to put your deadline in your calendar. Schedule all the pieces as they come up, but stick to your deadline. Tell somebody. Always try to build accountability into taking action. Make both your goals and your deadlines public by telling a close friend, a mentor, posting it on Facebook, or even enlisting as many people as you can. There's pressure, but it's the good kind! Don't forget to pass these helpful tips along to your clients and colleagues. Economic Calendar for the Week of August 19 - August 23 Date ET Economic Report For Estimate Actual Prior Impact Wed. August 21 10:00 Existing Home Sales Jul 5.20M   5.08M Moderate Wed. August 21 02:00 FOMC Minutes 7/31 NA   NA HIGH Thu. August 22 08:30 Jobless Claims (Initial) 8/17 337K   320K Moderate Fri. August 23 10:00 New Home Sales Jul 490K   497K Moderate

Home Values are going up!  
Tami GlassFernandes
Crossline Capital, Inc  Ontario California Branch

Last Week in Review: The housing market continues to improve, plus the tapering talk carried on. Forecast for the Week: A busy week is ahead, with important inflation, manufacturing and housing news being released. View: Staying sharp is important for today's busy professionals. Check out the simple tips below.

Last Week in Review

"Every day you make progress." Winston Churchill. And the housing market continues to progress in the right direction. Read on for details. Last week, research firm CoreLogic reported that home prices across the U.S. rose by nearly 12 percent from June 2012 to June 2013. By comparison, home prices only rose 3.76 percent from June 2011 to June 2012. In addition, research and analytics firm Clear Capital said that prices rose 9.3 percent in the year ended in July. The housing markets have turned the corner to greener pastures, but it's important to note that this pace of growth may be unsustainable. With home loan rates rising over the past several months, this rate of appreciation could slow. In labor market news, Weekly Initial Jobless Claims rose by 5,000 in the latest week to 333,000, but this was below the 340,000 expected. This followed the Jobs Report for July, which was a bit of a disappointment with less jobs created than expected. What does this mean for home loan rates? One of the biggest questions on everyone's mind is: When will the Fed start tapering their Bond purchases? Remember that the Fed has been buying $85 billion of Bonds a month to help stimulate the economy and housing market. This includes Mortgage Bonds, to which home loan rates are tied, and these purchases have helped home loan rates remain attractive. The Fed has said the rate of their purchases will continue to depend on economic data, and could be increased or decreased accordingly. Last week, several Fed members spoke out in favor of tapering these purchases as early as the Fed's meeting in mid-September. However, with our economy growing at sub 2 percent, economic data between now and September will be a key factor in this decision. The bottom line is that home loan rates remain attractive compared to historical levels and now remains a great time to consider a home purchase or refinance. Let me know if I can answer any questions at all for you or your clients.

Forecast for the Week

After last week's slow calendar, this week features a steady stream of reports. Economic data kicks off on Tuesday with Retail Sales for July. This comes after a decent reading in June. Inflation data from the wholesale-measuring Producer Price Index and the Consumer Price Index will be released on Wednesday and Thursday, respectively. In the manufacturing sector, the Empire State Index and Philadelphia Fed Index will be released on Thursday along with Weekly Initial Jobless Claims. To round out the week, Housing Starts, Building Permits and Consumer Sentiment will be disseminated on Friday. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond that home loan rates are based on. When you see these Bond prices moving higher, it means home loan rates are improving -- and when they are moving lower, home loan rates are getting worse. To go one step further -- a red "candle" means that MBS worsened during the day, while a green "candle" means MBS improved during the day. Depending on how dramatic the changes were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning. As you can see in the chart below, Bonds have improved from multi-year lows in recent weeks. I'll be watching closely to see if they can improve further. Chart: Fannie Mae 3.5% Mortgage Bond (Friday Aug 09, 2013)

The Mortgage Market Guide View...

Brain Breakthroughs Many people think intellect is a matter settled at birth, and mistakenly believe there's no way to boost their brain brilliance. But scientific studies prove just the opposite. In fact, small lifestyle adjustments combined with a few mental gymnastics can not only increase intelligence, but also improve general brain health, helping prevent aging disorders, such as Alzheimer's disease. According to most neurologists, the key is staying mentally active, whatever your age. The following tips will help boost your mental acuity and increase your intelligence. All You Have To Do Is Dream. An adequate amount of restful sleep is an important component of brain function (its effect on memory and learning is contested among scientists). Restful sleep provides energy as well as the ability to focus, both vital factors in achieving mental stimulation. Some studies have also shown the reverse to be true, that is, that more mental stimulation during the day gives you better sleep at night. Jumpin' Jack Flash Memory. Exercise brings oxygen-rich blood to the brain and regulates blood-sugar levels. Exercises such as aerobics, dance, and martial arts all require memorization and are great for promoting mental stimulation. They also help to develop the rhythm and timing circuitry that runs across multiple regions of the brain. Playing Those Mind Games Together. Crossword puzzles and Sudoku, board games and card games are all excellent for mental stimulation--now you can add video games to the list. Each type of game makes various demands on brain function such as recall, hand-eye coordination, attention, memory, logic, and pattern recognition. The key here is to keep upping the skill or level of challenge as you progress. Don't forget to pass these helpful tips along to your clients and colleagues. Economic Calendar for the Week of August 12 - August 16 Date ET Economic Report For Estimate Actual Prior Impact Tue. August 13 08:30 Retail Sales Jul NA   0.4% HIGH Tue. August 13 08:30 Retail Sales ex-auto Jul NA   0.0% HIGH Wed. August 14 08:30 Producer Price Index (PPI) Jul NA   0.8% Moderate Wed. August 14 08:30 Core Producer Price Index (PPI) Jul NA   0.2% Moderate Thu. August 15 08:30 Empire State Index Aug NA   9.4 HIGH Thu. August 15 08:30 Core Consumer Price Index (CPI) Jul NA   0.2% HIGH Thu. August 15 08:30 Consumer Price Index (CPI) Jul NA   0.5% HIGH Thu. August 15 08:30 Jobless Claims (Initial) 8/10 NA   333K Moderate Thu. August 15 10:00 Philadelphia Fed Index Aug NA   19.8 HIGH Fri. August 16 08:30 Housing Starts Jul NA   836K Moderate Fri. August 16 08:30 Building Permits Jul NA   911K Moderate Fri. August 16 08:30 Productivity Q2 NA   0.5% Moderate Fri. August 16 10:00 Consumer Sentiment Index (UoM) Aug NA   83.1 Moderate

The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is without errors. As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you. Mortgage Market Guide, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated.   Mortgage Market Guide, LLC does not grant to you a license to any content, features or materials in this email.   You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.

This is a great meeting.

Housing news dominated the headlines this morning with positive home price data hitting the wires. First up was CoreLogic reporting that its national Home Price Index on a year-over-year basis in the month ended in June rose by nearly 12% as the sector continues to improve. From May to June, prices rose by almost 2%. In addition, home prices are expected to rise by 12.5% year-over-year basis in July. However, prices are still down 19% from their peak hit back in April 2006. All of the figures include distressed sales.

To further bolster price appreciations in housing, Clear Capital reported that national home prices surged 9.3% in July 2013 from July 2012 and gained 1.6% over the last quarter. Clear Capital did say that prices remain 33.4% below peak values. For the last half of 2013, the firm sees a moderation in home price trends.

President Obama will be in Phoenix, Arizona later today speaking on the housing market and in particular, the future fate of Fannie Mae and Freddie Mac. The government bailed out the two mortgage giants to the tune of nearly $200 billion after the housing market collapsed in 2008 and the plan is for their roles to diminish and let private sector capital take on a bigger role in the mortgage market.

Positive News Today

Economic data was abundant today and the reports were slanted towards the positive side.

First up was the advanced reading for second quarter Gross Domestic Product (GDP) showing that growth in the quarter rose by a rather dismal 1.7%. That was better than the 1.1% that was registered in the first quarter and above the 1.1% expected. The 1.1% in the first quarter was revised lower from 1.8%. The 1.7% reflected an uptick in inventories and as consumer spending eased. GDP measures the market value of goods and services produced by labor and property in the United States.

Over in labor market news, ADP reported that private employers added 200,000 new jobs in July, above the 175,000 expected while the June number of 188,000 was revised higher to 198,000. The gains were seen across the board in businesses of all sizes. The ADP precedes the government's monthly jobs report that will be released on Friday morning.

The highly anticipated Federal Open Market Committee statement will be released this afternoon at 2:00pm ET and will be closely scrutinized by market watchers around the globe. In particular, players will be looking for any hints of an ease in the Bond buying program enacted by the Fed to accelerate U.S. growth and to support the labor markets and to keep interest rates low.

The National Association of Realtors (NAR) reported this morning that Pending Home Sales in June declined by 0.4% versus the -1.7% expected. The NAR said that higher home loan rates put a crimp in sales in June. The index hit a six year high in May. Pending Home Sales is a contract that has been signed, but that has not closed.

The trading week kicked off this morning and was met with quiet trading in the absence of any major economic data points other than Pending Home Sales. The rest of the week's economic calendar offers a plethora of data, which includes, Gross Domestic Product, housing data, the Federal Open Market Committee meeting and culminates on Friday with Non-farm Payrolls.

The regularly scheduled Federal Open Market Committee meeting will begin on Tuesday where members will discuss monetary policy and interest rates and ends with a policy statement on Wednesday at 2:00pm ET. There will be no press conference or economic projections associated with this meeting. The talks will most likely center around whether or not the current Quantitative Easing program will continue through this year or end before the year ends possibly sometime in the fall.

Loan Officers Wanted

We have Realtors wanting to Establish Relationships with Motivated Mortgage Originators!

If you are a Licensed Mortgage Loan Officer ready to take your career to the next level we have the tools to get you where you want to be. Sure we offer Competitive Compensation and Full Benefits but most companies do that.  What Sets Crossline Capital Inc., Ontario Branch a part from the rest? Here are just a few examples:

 Business Development Manager to help build Realtor Relationships.

Social Networking Classes with the Industry’s best.

Marketing Tools that really work.

Experienced in house Branch Processing expert and Production Assistant

Supportive company and exceptional staff looking for ways to APPROVE loans

Competitive Rates and a variety of loan Programs to provide the best for your Borrowers

If you are a Knowledgeable and Experienced Originator ready to benefit from these and the many other benefits that Crossline Capital has to offer don’t let this opportunity pass you by!

 Contact us:

Tami Glass Fernandes

Office:  909-467-2000   Fax: 909-988-4005

Email tglass@crosslinecapital.com            

Wells Fargo announced this week that it will be laying off 300 workers in its joint venture home lending unit due to new regulatory changes. Those holding student loans can breathe a sigh of relief today after the Senate passed a bill that would lower the interest rate to 3.9% from 6.8% and will be approved by the House. The regularly scheduled Federal Open Market Committee meeting will be held next week with a monetary policy statement being released at 2:00pm ET on Wednesday.

Until mortgage rates hit 10.5%, buying will still be cheaper than renting

The recent rise in mortgage rates has made buying a house a little more expensive: the increase in the 30-year fixed rate over the past month from 3.4% to 3.9% (Freddie Mac) raised the monthly payment on a $200,000 mortgage by $56, or 6%. However, because mortgage rates are still near long-term lows, and because prices fell so much after the housing bubble burst and remain low relative to rents even after recent price increases, buying is still much cheaper than renting. That means that the recent jump in rates doesn't change the rent-versus-buy math much.

Rates are likely to keep rising, but how far must rates rise before buying a home starts to look expensive relative to renting? To answer this, we updated our Rent vs. Buy analysis with the latest asking prices and rents from March, April, and May 2013. Following our standard approach, we calculated the cost of buying and renting for identical sets of properties, including maintenance, insurance, taxes, closing costs, down payment, sales proceeds, and, of course, the monthly mortgage payment on a 30-year fixed-rate loan with 20% down and monthly rent. We assume people will stay in their homes for 7 years, deduct their mortgage interest and property tax payments at the 25% tax bracket, and get modest home price appreciation (see the detailed methodology and example here). Here's what we found:

Buying remains cheaper than renting so long as mortgage rates are below 10.5%. At 3.9%, the current 30-year fixed rate according to Freddie Mac, buying is 41% cheaper than renting nationally. With a 5% mortgage rate, buying is still 34% cheaper than renting nationally. Mortgage rates would have to rise a huge amount – to 10.5% – to tip the math in favor of renting, which isn't impossible. Rates were that high throughout the 1980's, but have been consistently below 10.5% since May 1990.

Each local market, of course, has its own mortgage rate "tipping point" when renting becomes cheaper than buying a home. At 3.9%, buying is cheaper than renting in all of the 100 largest metros, which means the tipping point is above 3.9% everywhere. The tipping point is lowest in San Jose, which would tip in favor of renting if rates reach 5.2%. It's between 5% and 6% in San Francisco and Honolulu, and between 6% and 7% in New York and Orange County, CA.

Metros with the Lowest Mortgage-Rate Tipping Point
#	U.S. Metro	Mortgage rate below which buying is cheaper than renting
1	San Jose, CA	5.2%
2	San Francisco, CA	5.4%
3	Honolulu, HI	5.8%
4	New York, NY-NJ	6.8%
5	Orange County, CA	6.8%
6	Los Angeles, CA	7.5%
7	San Diego, CA	7.5%
8	Ventura County, CA	8.0%
9	Sacramento, CA	8.0%

Of course, the tipping point also depends on how long you plan to stay in your next home (we assume 7 years) and whether you itemize your deductions (we assume you do). For instance, if you don't itemize, or if the mortgage interest and property tax deductions were eliminated entirely, buying would still be 29% cheaper than renting at a mortgage rate of 3.9%, and the tipping point when renting becomes cheaper than buying would be 7.5%.

But just because buying is cheaper than renting, it doesn't mean you can buy. Lots of people who want to buy don't have the down payment or can't get a mortgage. Even people who can swing it financially might not be able to buy right away, before rates rise further, because they might not find the home they want quickly with inventory still so tight.

So if the recent increase in mortgage rates doesn't change the rent-versus-buy equation substantially, why does it matter? The main effect is to reduce the demand for refinancing. Unlike home buying, refinancing is a relatively straightforward financial decision: although refinancing has upfront costs, refinancing doesn't require finding a home, thinking hard about your lifestyle, or moving. Since rates have been low for so long, many people who were able to refinance, already have. As a result, the demand for refinancing is now dropping.

For people who haven't yet refinanced – and for people looking to buy – rising rates do make housing more expensive. Rates are now on the rise and are likely to keep rising, thanks to the strengthening economy and the Fed eventually trying less hard to keep rates low. But it will take big rate increases to turn off prospective home buyers. At today's prices and rents, rates would have to rise to levels we haven't seen in 20 years before renting is cheaper than buying a home on average across the country.

Calculate Monthly Payment

Monthly Payment Calculator

Zillow Home Loan Calculator