This week was an exercise in perspective, stocks versus bonds and mortgages, and here versus over there. In a week with little new U.S. data (apartments hot, single-family not), bonds and mortgages stayed the same — which is remarkable, given the performance of stocks. The 10-year T-note could not break below 2.00 percent, mortgages just under 4.00 percent, but unchanged all through October while the Dow rocketed 500 points in the last two days.
Private mortgage insurance (PMI) provider Arch Mortgage Insurance Co., announced this week that it will move beyond the conventional rate sheets used for decades in the industry and introduce a new, risk-based model for pricing coverage. The company’s new program, called RateStar, offers a more targeted approach and uses a combination of loan characteristics and other risk factors to determine the most precise premium rate for each loan. Instead of loans being grouped in large risk buckets, each loan will be priced based on its individual risk attributes.
If your brokerage makes use of “preferred vendor lists,” you could be extending a welcome mat to regulators, according to many compliance experts — another potential regulatory minefield for real estate brokers to avoid.
Quicken Loans has joined forces with Freddie Mac to offer low-down-payment mortgages and other services to some underserved borrowers. The partnership expands upon Freddie Mac’s existing Home Possible and Home Possible Advantage programs, which allows eligible borrowers to finance homes with down payments of as low as 3 percent.