Federal Reserve Halts Purchase Of Bonds.
For the first time in 37 years, the Federal Reserve halted purchase of bonds on Wednesday, October 29. This came as no surprise to many, as the Fed has been steadily cutting purchase of mortgage-backed securities for the entirety of 2014, but it certainly is jarring to see the program finally come to a halt.
What does this mean for you the borrower and client? It means that there is potential for government debt prices to be pushed down in potential declining demand. This also means that this action could raise yields simultaneously.
The process that central banks began after the recession, called quantitative easing (QE), is a method used to stimulate monetary value when an economy suffers to do so itself. When the Fed began the program, the intention was never to last forever, but just long enough to see the market stabilize on its own, at which point the “easing” would begin. This works by the central banks buying financial assets from commercial banks, which lowers yields and increases monetary base at the same time.
Although tapering didn’t begin for the Fed until last December, the 10-year Treasury yield had already climbed to almost 3 percent. This is generally seen as a good sign by economists; while this is not a high number, it is higher than the previous percentage which was below 2 percent. The higher the treasury yield, the better the economic outlook. With the purchase of bonds being halted, experts believe that the economy and monetary value could continue to see a boost, bettering both the market and the economy.
Stay up-to-date on the bond market and treasury yields at Forbes.com or mortgagewatchdaily.com.
Why should you use a Las Vegas Mortgage Broker instead of going to a bank?
Las Vegas, Nv
Below is an excerpt from a letter to President Obama. This letter was sent to him by the National Association of Mortgage Professionals (NAMB) of which, we are a proud member.
" The Georgetown University study stated that Mortgage Brokers saved borrowers thousands of dollars when it came to their mortgage needs. And the obvious differences on using a broker for your mortgage is that Mortgage Brokers are licensed by their state and the NMLS, take continuing education, take a national and state to be able to be licensed, have a criminal background check with fingerprints, and have their redit checked. Mortgage Originators that work for these banks failed to pass some of these items, test, background checks, etc., and that really sets Mortgage Brokers apart from those depository institutions.
There are thousands of good honest Mortgage Brokers in America that have never participated in sub prime loans or have used any of the exotic products that Wall Street or the Mega Banks created. And most of these companies that did these loans were not mortgage brokers.You consistently use the term Mortgage Broker to relay information having to do with the Housing industry and that is not fair. Let me give you an example. When a drug creates a problem in the medical industry, the FDA goes and contacts the maker of the drug and deals with the company. They don't go to Walgreens or CVS and shut them down, making them the scapegoat for selling the drug. The same is with the Mortgage business. We only sell what is out there from the banks and wholesale lenders. We have never developed or created any of these products. We do not underwrite them or approve them. Yet it seems that every time something comes out about the mortgage industry, it is a Mortgage Broker that did it."
In short, Mortgage Brokers provide a valuable service and save their clients' money over going to a Mortgage Bank or Depository Bank. Let's put this in plain english. We sell the Ice Cream. Not make it.
Loan Officers should always give you Contact Information
Weither you are a First Time Home buyer or an experienced Home Buyer, Dealing with a Local Mortgage Broker can be frustrating at times. Your point of contact with a Mortgage Company like Valley West Mortgage is always going to be through the Loan Officer. Loan Officers are defiantly a breed of their own, in a good way. We can vouch for that. Having a solid line of communication with that loan officer is the key ingredient when you apply for a home mortgage loan. Whether you use Email, Cell Phones, or the good old fashions Fax Line, A loan officer should always be able to communicate.
When you talk to a Loan Officer with any company, you should always ask for a few minor details. All should be answered with out hesitation if they are in fact a real loan officer. It's like asking someone for their ID at a bar. Very simple task for anyone over the age of 21. The same rules apply to Loan Officers.
SO what do you ask for?
When talking with your professional loan officer you may ask for a few certain details to prove the L.O.'s authenticity and the same for their company. Here is a short list of some of the things you could ask a loan officer for. Our Very Own Senoir Loan Officer, Jeff Gonzalez provided us with this list.
- A copy of the loan officers License
- A copy of the loan officers Company License
- The Loan Officer NMLS and State License Number
- A Link to the MLD.NV.GOV website.
- A link to the NMLS website.
All of these items are very easy for a loan officer to obtain and provide at a clients simple request. A failure to provide the following information should result in you or anyone else shopping around for another Mortgage Company like Valley West Mortgage.
Valley West Mortgage wants all of our clients to provide all of the information needed to start a loan with our company. The same goes with any one of our professional Loan Officers providing any client with the information they need to make the best choices possible. Contact Valley West Mortgage today to talk with Senior Loan Officer J. Anthony Romero, or any of other Qualified Loan Officers. Tel: (702) 696-9900 | FAXL (702) 436-2400.