The Federal Reserve has positioned as a buyer in secondary mortgage markets that had seized up but are vital to enabling lenders to make new home loans. Mortgage lenders sell many of their loans to institutional investors, and higher rates charged by these investors to hold pooled bad credit mortgages make it more difficult for loan officers and mortgage brokers to offer lower rates on new mortgage loans. Conventional and FHA mortgage rates were both slightly lower than the previous week.
The gap has narrowed in just a few months between Treasuries and the mortgage rates that the agencies and mortgage lenders have to carry to make them attractive. Read the original article > Mortgage Interest Rates Drop.
Colorado adopted an emergency rule formalizing initial and continuing education requirements for mortgage brokers required to be licensed under the Mortgage Broker Licensing Act (MBLA). Under the rule, mortgage brokers must complete a 40-hour education course and pass an examination prior to initial licensure. Mortgage brokers currently licensed under the MBLA have until January 1, 2009 to complete the initial education course and examination. Mortgage brokers must also complete 9 credit hours of continuing education during each 3-year renewal cycle. The 9-hour continuing education requirement is not required until after the mortgage broker’s first 3-year renewal cycle. Colorado mortgage lenders are not subject to the same laws and restrictions as mortgage brokers and this continues to fuel controversy. Why should mortgage brokers be required to disclose “yield spread premium” if lenders in the same state do not. Most mortgage professionals believe that yield spread premium also known as “rebate”, should not be a required in the disclosures like the “Good Faith Estimate.”
