CFPG creates incentives for consumers to pay brokers fees.

According to National Mortgage News, the compensation paid by the creditor to a mortgage brokerage firm should be included in the 3% cap under the qualified mortgage rule. In addition, any origination fee paid by the consumer to the creditor must be accounted towards the 3% cap. The CFPB said that this CAP ensures that lenders offering qualified mortgages do not charge excessive points and fees.

However the CFPB said that creditor may reduce the cost it needs to recover from origination by having the consumer pay the mortgage brokers directly. This rule comes into effect by Jan 10th, 2014. The final rule is that if the origination fees are included in the finance charge then, the origination fees paid by the consumers to the brokerage firm can be excluded. To read more click here.

PrivoCorp is a licensed mortgage processor in several states in the US.

Home Equity Buoyed by Rising Home Prices - Nice graphic by RealtyTrac

Mortgage News daily reported that the steady rise in home prices last year has pulled up an estimated 600,000 properties from the category of "deeply underwater" just since May.

Daren Blomquist, Vice President of Realty Trac said that the steadily rising home prices are lifting all boats in this housing market and should spill over into more inventory of home for sale in the coming months. " Home owners who already have ample equity are quickly building on that equity, while the 8.3 million homeowners on the fence with little or no equity are on track to regain enough equity to sell before 2015 if home prices continue to increase at the rate of 1.33 percent per month that they have since bottoming out in March 2012."

Blomquist said that homeowners in foreclosure with some equity have a better chance to avoid foreclosure without resorting to a short sale assuming they don't miss the opportunity to leverage that equity.  "Even homeowners deeply underwater have reason for hope, with about 150,000 each month rising past the 25 percent negative equity milestone - although it will certainly take years rather than months before most of those homeowners have enough equity to sell other than via short sale."

States with the highest percentage of homes with LTVs of 125 percent or higher included Nevada (46 percent), Illinois (40 percent), Florida (40 percent), Michigan (38 percent), Rhode Island (34 percent), and Ohio (31 percent).

Privocorp is a licensed mortgage processor in several states in the US.

Mortgage rates up

The average mortgage rates in the US edged up in the latest week amid signs of a stronger economic recovery and recent positive housing and manufacturing data.

Bankrates, weekly national survey shows that the 30 year fixed mortgage rate which was at 4.62 last week is now at 4.72%. The average 15 year fixed mortgage increased from 3.66 to 3.74 %. Seven year adjustable rate mortgages increased from 4% to 4.04%.

Meanwhile the popular five year adjustable rate jumped from last week's 3.61% to 3.65%. To read more click here.

PrivoCorp is a contract mortgage processor licensed in several states in the US.

Mortgage rates fall to historic lows.

Fixed mortgage rates have fallen to historic lows. That's good news for the few who can afford to buy a home or are able to refinance. But, at the same time rates have done little to lift the ailing housing market.


Freddie Mac said Thursday that the average rate for the 30-year fixed mortgage fell to 4.32 percent this week from 4.39 percent. The 30-year loan hit a record low of 4.17 percent in mid-November.

Many people can't take advantage of the low mortgage rates. Banks have been insisting on higher credit scores and larger down payments from applicants. Others have too little equity invested in their homes to qualify for loans.

Historically low rates have helped fuel another boom in refinancing. Fast growing contract mortgage processing company, PrivoCorp, expects that refinance volumes will pick up significantly in the short term."We are getting ready to provide services to meet the increased refinancing that are the direct result of low interest rates in 2011" according PrivoCorp CEO. PrivoCorp is a licensed contract processing company providing services across the country to brokers and lenders of various sizes.

Bank and Nonbank Loan Officers: 459,000 and Counting?

According to a report in Origination news,

Could there really be 459,000 U.S. loan officers plying their trade in residential finance?

The tally comes from the Nationwide Mortgage Licensing System & Registry, whose job it is to count LOs who work at federally insured banks, thrifts and credit unions. Along with nonbank funders, these depositories have registered their LOs on the system.

According to a new head count, banks and their mortgage affiliates employ 350,000 registered LOs. Nonbanks—also known as “state-licensed companies”—have registered 109,000. (Each LO receives a unique identification number with their licensing status available on the NMLS website.) If the totals are correct, that means bank LOs currently outnumber nonbank professionals 3-to-1.

If you think the LO headcount sounds a bit too high, join the club. Figures compiled by the Bureau of Labor Statistics show that the entire residential finance sector employed 239,100 full-time workers as of June 30, but those figures apparently exclude bank LOs. The BLS survey only counts full-time employees on the payrolls of nonbank mortgage firms including companies that both fund and broker loans.

What's more, the BLS numbers include managers, loan officers, back-office staff and even full-time janitors. In other words, it appears that the NMLS tally provides the first true head count of LOs in the entire residential industry.

Still, there are skeptics who believe the 350,000 number is too high for LOs.

These naysayers suspect that banks have registered LOs with little involvement in mortgage lending, particularly since it takes very little effort for bank employees to register.

LOs at state-licensed companies (nonbanks) have to pass competency tests and comply with continuing education requirements. They also have to be licensed in each state where they make loans.

LOs at national or state banks are exempt from those requirements, but must undergo criminal background checks and get fingerprinted like their state-licensed competitors.

Under the 2008 Secure and Fair Enforcement and Mortgage Licensing Act, banks and other depositories are required to register their LOs on the NMLS, which is operated by a subsidiary of the Conference of State Bank Supervisors. (Banks were required to file their registry information with NMLS no later than July 29.)

The registry is now relatively complete, according to Bill Matthews, president of the State Regulatory Registry, the CSBS subsidiary which operates the NMLS on behalf of the American Association of Residential Mortgage Regulators. AARMR is a trade association for the agencies and professionals who oversee the mortgage business within their respective borders. “All the deadlines have passed and now we can start looking at the data and trends,” Matthews told National Mortgage News.

On Aug. 2 regulators “turned on” the consumer portion of the website, which allows homebuyers and other interested parties to check on companies and individual LOs employed in the industry.

The NMLS site was first launched 18 months ago with information on state-licensed (nonbank) companies, branches and individuals, including whether their license status is active. The site even indicates whether a license was denied, withdrawn or revoked. “If someone was denied a license on the state side, the consumer will be able to see that. If they are now working for a depository, they can see that as well,” Matthews said.

In late 2012, the site will start showing disciplinary actions taken against state-licensed individuals. But each state will determine for itself the exact nature of what is displayed. Some jurisdictions may decide to show C&D orders that have been levied against an originator, while others may rule only fully adjudicated enforcements should be disclosed.

Read more visit - http://www.originationnews.com/on_features/bank-nonbank-loan-officers-1026208-1.html?ET=origination:e1670:92746a:&st=email&utm_source=editorial&utm_medium=

Mortgage Jobs Rise Ever So Slightly

According to a report in National mortgage news,

Mortgage-related employment rose every so slightly in May with residential firms adding 2,600 new jobs during the month, according to government figures released Friday morning.

However, the mortgage broker segment continued to suffer job losses with 1,600 workers leaving the business either voluntarily or through a job loss.

Overall, the mortgage sector employed 241,500 full-time workers in May, up 1% from April. Compared to the same month a year ago the sector shed 17,300 jobs. (The mortgage figures trail the national numbers by a month.)

The mortgage broker segment supported 50,200 workers in May compared to 61,000 a year ago. Broker employed peaked in April 2006 at 148,200 workers.

Jay Brinkmann, chief economist for the Mortgage Bankers Association told National Mortgage News that during the second-half lenders will focus on how to “manage and reduce capacity.”

He noted that some smaller firms may increase hiring – with an emphasis on recruiting high performance loan officers – in an attempt to gain market share. “Of course not everyone can increase market share at the same time,” he said.

Although the Bureau of Labor Statistics provides numbers on broker employment it does not segment out servicing related jobs. MBA believes the emphasis on helping delinquent borrowers has increased servicing employment somewhat but with late payments now falling hiring may not be as robust going forward.

The national employment report came in much weaker than expected with nonfarm payrolls rising only 18,000 in June, the weakest reading since September, and well below economists' expectations for an increase of 90,000 positions. The unemployment rate rose 0.1% to 9.2%, the highest level this year.

In a statement Fannie Mae chief economist Doug Duncan said, “June’s nonfarm payroll gain of 18,000 shows that May’s weakness was not an aberration. This raises doubts that the second half of the year will see much improvement in the overall economy from the anemic performance of the first two quarters.”

He added that, “The disappointing news on the labor front will only serve to further damage already depressed consumer confidence and the demand for housing. While home prices have stabilized recently going in to the spring/summer selling season, this report bodes poorly for house price expectations.”

Read more visit - http://www.nationalmortgagenews.com/dailybriefing/2010_384/mortgage-jobs-rise-1025589-1.html?ET=nationalmortgage:e1491:92746a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=NMN_Daily_Briefing_070811

Looking for Productive Brokers and LO's

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Mortgage rates tumble; 15-year average falls below 4%

NEW YORK — Fixed mortgage rates tumbled this week and 15-year loans dipped below 4% on average for the first time in three months.

Rates follow the yield on U.S. Treasury bonds, which fell as bond prices rose on worries that the crisis in Japan could slow economic growth.

Freddie Mac said Tuesday that the average rate on 15-year fixed mortgages, a popular refinance option, dropped to 3.97% from 4.15%. The last time the rate was below 4% was in mid-December. It reached 3.57% in November, lowest level on records dating back to 1991.

The average rate on 30-year fixed mortgages fell to 4.76% from 4.88% the previous week. It hit a 40-year low of 4.17% in November.

Mortgage rates tend to track the yield on 10-year Treasury notes. Those yields have tumbled as investors bid up the price, seeking safer investments. Bond prices and yields move in opposite directions.

Low mortgage rates haven’t been enough to jumpstart the housing market. Home construction last month plunged to its lowest level in almost two years, while building permits, an indicator of future housing activity, sank to a five-decade low, the government said this week.

Read more-http://www.usatoday.com/money/economy/housing/2011-03-17-mortgage-rates.htm?csp=obnetwork

What to look for in an LOS (Loan Origination Software)

Today's mortgage lenders manage complex product options, mandatory investor and regulatory compliance, information security, and the integration of multiple lending technology tools. Mortgage lenders need to understand that successful integration of technology is a requirement for meeting mortgage banking objectives. Web-Based, loan origination software that integrates with mortgage service providers, streamlines operations, and simplifies compliance would be key to managing a successful origination shop in today's climate.

Here are some things to consider while selecting an LOS

Borrower data integration ... Borrower inquiries should be received via your website or by your loan officers through an easy interview style online interface.

Credit ... instant tri-merge or full residential mortgage credit reports should be available on demand 

Data Checks: Integrated data checks should be continuously updated and monitored at various stages of loan processing.

AUS: Two way interfaces should provide users with a more efficient method of approving loans and simultaneously reduce data input or approval inconsistencies.

Status Sheets and Loan Conditions: Status items and loan conditions should be based on the characteristics of the loan data and can be customized to support the lenders' workflow.

Forms ... an extensive print form library should be readily available and bundled into groups based on the loan program and customer data. Forms should be able to be printed or emailed and automatically populated for the application, initial disclosures, closing docs, HUD/VA specific forms, investor specific forms, and various forms used for loan processing and administrative purposes.

Appraisal and Title Reports should be able to be ordered and managed directly within the LOS.

Snapshots: Lenders should be able to see data snapshots, including final values that assist with secure data collaboration and are automatically created based on the status of the loan and the lenders workflow.

Final Underwriting: Final automated underwriting should be completed to validate processed data.

Pricing and Locking: Interest rate and pricing options should be made available to originators and secondary marketing based on cost of funds and are automatically updated throughout the business day for supported loan programs.

Closing Doc Prep should be completed via the LOS' supported print forms or with securely integrated third party vendors.

Stacking & Investor Sheets ... printed directly from the loan origination system reduces the workload on the shipping department and enabling maximum delivery effectiveness.

Post Closing Tracking ...should be accomplished within the system to ensure complete delivery of loans to your investors.

The above information has been compiled by Privo Corporation (aka PrivoCorp) - the fastest contract mortgage processor - for the benefit of our clients and prospects in the US markets. The article is based on an ezinearticle.com document which can be found at http://ezinearticles.com/?Loan-Origination-Software---Maximize-Mortgage-Lending-Efficiency&id=2363478

Mortgage Loan Origination Software - 10 Functions of Mortgage Banking

Regardless of a mortgage lending organizations' size, mortgage loan software, data security solutions and automation tools and services should be able to assist with mortgage loan automation requirements. In today's chaotic mortgage lending environment origination and document security systems need to be easily configured to emphasize a company's special needs and increase efficiencies across all aspects of the loan origination process, allowing lenders to increase quality and productivity.

Technology-driven automation is the key to succeeding in the increasingly complex, deeply scrutinized mortgage industry. Web-based (Software-as-a-Service), Enterprise mortgage software that supports the ten primary functions in mortgage banking will provide lenders with the necessary competitive advantages to succeed in today's mortgage industry.

Ten Primary Functions in Mortgage Banking

1. Mortgage Web site design, implementation, and hosting to provide product, service, loan status, and company information to mortgage customers and business partners
2. Online loan applications for gathering information from borrowers and business partners that issue loan terms, disclosures, and underwriting conditions
3. Loan origination software for managing loan data, borrower data, property data, general status reporting, and calculations
4. Interface systems to send and receive data from real estate service providers, such as credit reports, flood determinations, automated underwriting, fraud detection, and closing documents
5. Internal automated underwriting system that is simple enough for originators and sophisticated enough for underwriting portfolio loan products
6. Document generation for applications, upfront disclosures, business processes, and closing documents
7. Integrated imaging that is used from loan origination to investor delivery and for file archiving
8. Interest rate and fee generation along with program qualification guidelines
9. Secondary marketing data tools to track loan revenue and investor relationships, including warehouse line management and interim servicing to complete the back-office system
10. Reporting such as loan delivery, year-end fee reporting, and HMDA reporting for loan application disposition

Web-Based, enterprise mortgage software that supports the ten primary functions of mortgage banking simplifies compliance, maximizes operational efficiencies, and increases profitability.

Article Source: http://ezinearticles.com/?Mortgage-Loan-Origination-Software---10-Functions-of-Mortgage-Banking&id=2363610

House Flipping Encouraged By FHA

If you know what you`re doing, house flipping can be a prosperous undertaking. FHA lending has become very popular in the last few years, insuring loans to credit-worthy borrowers who can`t make a large down payment. In the past, the Federal Housing Administration has discouraged house flipping but in recent years, the agency has changed a rule that now encourages it, and a flipper can now make a much quicker buck.



Greg Mayer has been flipping houses for 15 years but he refers to himself as more of a renovator, taking his time restoring a home to as close to its original character as possible.

"I don`t like buildings being torn down. I like to see what could be salvaged out of them, what can be redone with them," says Greg.

Greg has a pretty large undertaking with his new endeavor, a 1930s Mandan home. He`s not only restoring, but adding about 900 extra square feet, fit for a small family looking for their first home.

"The carpet will get pulled up. There`s hard wood flooring that will be redone," says Greg.

Greg says depending on the house, you could make a nice profit flipping but that`s not really why he does it. He simply enjoys doing the work. For those who are looking to make some quick cash, the Federal Housing Administration is making it easier. It extended a rule this year that allows an investor to buy and sell a home to a buyer using FHA financing right away, instead of having to wait 90 days, like in the past. The idea is to get rid of some extra inventory left behind from the recession.

"People got foreclosed on or people had to leave them and maybe they didn`t leave them in the best conditions. It gives investors the ability to go in and turn that house if the house just needs a little cleanup," says Joe Sheehan, a loan officer with Cornerstone Bank.

The extension also came with some clarifications. To turn a house right a way, an investor can only make up to a 20% profit. Or they can wait 90 days and make a larger profit. Greg hopes to have his latest project finished by May or June for interested families in search of possibly their first home.

Clarifications in the extension also mean a seller can get a second appraisal to try and get more value for the home. FHA lending has become the norm in North Dakota, and makes up 30% of all loans nationally.


Read more -visit http://www.kfyrtv.com/News_Stories.asp?news=46790

Modified version of Reverse Mortgages: Good option for the elderly homeowners

In October, the Federal Housing Administration that runs the reverse mortgage program known as Home Equity Conversion Mortgage, or HECM, introduced the Home Equity Conversion Mortgage Saver, or HECM Saver. HECM Saver, trims the upfront insurance premium due at closing to 0.01 percent of a property’s value, from 2 percent. But the amount that can be borrowed is also reduced, by 10 to 18 percent, compared with the standard HECM loan program.

To better understand the modified version of a reverse mortgage, we need to know what reverse mortgage is. Reverse mortgage is a type of mortgage in which homeowners can borrow money against the value of their house. Until the borrower dies or the house is sold, no repayment of interest or principal, is required. Often, the lender will require that there can be no other liens against the home. Any existing liens must be paid off with the proceeds of the reverse mortgage.
The loans don’t require a minimum credit score or have income limits. But borrowers cannot be underwater, or owe more on a current mortgage than the property is worth. Among the other restrictions is the age. Anyone who is an owner, and is listed on the title to the property, must be at least 62.

Since these reverse mortgages have large origination costs compared to other types of mortgage and since these costs become part of the initial loan balance and accrue interest, Senior citizen borrowers with good credit should carefully analyze the options of a more traditional mortgage, such as a home equity loan, against a reverse mortgage.

Consumers Union, the independent nonprofit testing organization that publishes Consumer Reports, says cash-needy homeowners should consider a home-equity loan before a reverse mortgage, because of the high closing costs and insurance fees. To read more about this click here Nytimes.com

Analysts at PrivoCorp suggest that elderly homeowners find out options from their loan officers and grab this opportunity to get a loan. PrivoCorp does not originate loans. We process loans.

Rise in mortgage rates have dampened refinancing

The rising mortgage rates have snuffed out a refinancing boom which began earlier this year. According to the government backed mortgage firm,Freddie Mac's survey, the rate of a 30 year fixed rate mortgage averaged 4.61% this week which is the highest since June24th.

The Wall Street Journal says that a host of factors have helped drive rates higher, most recently including this week's tax compromise between President Obama and congressional Republicans. The package includes some measures to stimulate the economy and will likely result in higher budget deficits—both of which are anathema to bond investors.

Since the increase in mortgage prices, refinancing has become unattractive to more than 5 million borrowers. Mortgage Bankers Association said earlier this week that its index for refinancing activity fell last week to its lowest level since the early June. Refinancing activity surged between April and the early fall, as Treasury yields tumbled from 4% to less than 2.5% and mortgage rates fell from more than 5%. After the surge in rates, refi activity is down 42% from its peak in August.

However the good news is that the rise in rates have not effected the steady increase in home purchase activity. According to the MBA, new mortgage origination rose last week, but its still down more than 12% from a year ago. The team of analysts at PrivoCorp suggests that this steady increase in home purchase is a sure indicator that the economy is slowly improving. PrivoCorp processes loans and we do not originate loans.

Practice of default on second homes and its aftermath

There is an increase in the number of homeowners who are walking away from a second home or investment property that is worth less than what is owed on the mortgage, even though they can afford to make the payments. But this practice of dumping a beach condo- called as "strategic default" is not the same as discarding a poorly performing stock or bond. This trend of strategic default is on the rise and is accounted for 35.6% of all foreclosures this year compared to a 23.6% from last year.

The after effects of strategic default is a wrecked credit as it stays on the credit report for 7 years and will disqualify the homeowner from getting a loan for the next 7 to 10 years. There is also the question whether the lender can go after the homeowner who has defaulted. The answer depends on the location of the property. If the property is in recourse states, then the lender can come after you and other primary assets to get the full loan amount back. In"non-recourse" states, the lender cannot sue for the full loan amount and will get only the amount what the property fetches at a short sale, foreclosure sale, or a deed in lieu, in which the property is taken back and not formally foreclosed on.Florida, Connecticut and Arizona are among the nonrecourse states, while Colorado, Maine, New Jersey and Hawaii are recourse states.

There is a third category of state, called “single-action” or “one-action,” which allows the lender either to foreclose on the owner or file a civil lawsuit for the full loan amount. New York, California and Idaho are in that category.

Even in a nonrecourse state, however, those homeowners who opt for a strategic default on a previously refinanced property may not be protected from lenders, because the mortgage in such a case was not accorded for a first purchase, said Philip Faranda, a mortgage broker for J. Philip Real Estate, in Briarcliff Manor, N.Y.

Though not illegal, strategic defaults are controversial, because they are viewed in some circles as unethical. The practice is common among property developers. For homeowners under water, experts say, it can make economic sense. “It’s a business cash-flow decision,” Mr. Faranda said, “but the risk is that you’re rolling dice with your future credit.” Panel of advisers at PrivoCorp suggests that homeowners should take advice from their loan officers before they take loans on a second mortgage and should be well informed as to the location of their property and the rules of the particular states before they buy a property. PrivoCorp does not originate loans. We are a processing company.
For more information regarding this blog, check out Nytimes

Mortgage lending in family - The up and down side of it.

According to the NewYork TimesIn cases like Matt Rado, who is in the market for his first home is getting a loan not from a bank but from his retired parents. Mr Rado who is preapproved for a 30 year fixed mortgage at about 4.75 percent from a commercial lender, will get at least as favorable a rate from his parents along with lower closing costs. At the same time, his parents will get a higher rate of return than is offered by a traditional savings vehicle like a savings account.

With credit tight and interest rates at historic lows, such intrafamily loans can be a win-win for parents and children. “It’s an absolutely terrific time to make an intrafamily loan,” said Carol G. Kroch, head of wealth planning for Wilmington Trust. Rick Kahler, a financial adviser in Rapid City, S.D., said, the intrafamily loans are much riskier than other investments. With an intrafamily loan, parents are betting that their children and their children’s significant others will have the income to repay the loan. And even if the children have excellent credit scores now, their status could change drastically — much faster than a corporation’s — if a job loss or illness were to occur. To help lessen these risks, financial planners have specific recommendations about who should make and get such loans.

• Most financial planners recommend that parents make such loans only to children who would receive a loan on their own from a commercial lender.A loan to a child unable to get a bank loan, planners say, is more likely to be a bad investment with a greater chance of default. In such circumstances, gifts are a better idea.
• Intrafamily loans probably aren’t right for parents who “have a lot of opinions about the lifestyle of their children” because a loan could make them become overly critical of the grown child’s spending habits and potentially damage the parent-child relationship, said Lauren Locker, a certified financial planner at Locker Financial Services in Little Falls,

• To avoid tax consequences, the parents will need to charge an interest rate for loans with a set term that is at least what the government’s applicable federal rates are at the time the loan is created.
• To make sure the money is considered a loan and not a gift for tax purposes, experts also recommend that the loans be documented as formal promissory notes that state the terms of the loan, including repayments, the interest rates and what will happen if the loan is not repaid.

• To get the loan documentation drawn up, lenders can consult with lawyers willing to do the work for a lump sum, or check out companies like National Family Mortgage, which will help create notes for intrafamily loans. For $599, National Family Mortgage, which focuses on intrafamily mortgages specifically, will help families structure a promissory note, including penalty terms, and will also file the loan with the appropriate government authority.

Privocorp processes loans. We do not originate loans.

Three reasons to pay off the mortgage.

Reason #1--It Provides Peace of Mind: Peace of mind is worth a lot, and those who know that they would feel a lot better about their futures if they didn't have a monthly mortgage payment.

Reason #2--It Reduces Costs of Living. To obtain financial independence very early in life, we must reduce our cost of living and by paying off the mortgage, we achieve it.

Reason #3--It Diminishes the Fear of Job Loss. Job loss is the biggest fear that torments many families. But once mortgage is paid off then there is less worry in case of a job loss.

Privocorp is a mortgage processing company and we do not originate loans. Origination of loans is done by our clients and other loan officers.

Home loan demand rises due to low interest rates.

U.S. mortgage applications rose last week as there is an increase in demand for new loan purchase and refinance. More and more people are trying to take advantage of the low interest rates and lock in on them before it increases. Mortgage Bankers Association says there is an 5.8 % increase in the mortgage applications, which includes both purchase and refinance loans.

Michael Fratantoni, the MBA's vice president of research and economics, said in a statement that the increases in purchase application coincide with the October's employment report which indicates some improvement in the economic growth.

However this increase in home loans is very little, as the lending standards have become very tight thereby preventing many homeowners from taking advantage of the low interest rates. Cameron Findlay, chief economist at LendingTree.com in Charlotte, North Carolina, says "underwater mortgage" -- where the amount owed on the mortgage exceeds the home's value -- "are one of the biggest banes of the homeowners who want to refinance.This negative equity makes many homeowners unqualified for refinancing and prevents some from selling." Despite the slow progress, the very fact that there is an increase in the demand for mortgage application is an indicator of some positive activity in the housing sector and the team at PrivoCorp hope that this trend continues and the economy keeps on improving. To read more on this, check out msnbc.com

Rates fall to record low : Good time to lock in on these low rates.

According to Bankrate.com, the bench mark 30 year fixed rate mortgage fell 9 point, from a 4.45 last week to 4.42 this week. Rates haven't been lower since 1953, according to the National Bureau of Economic Research's statistics on FHA-insured loans.

The benchmark 15-year fixed-rate mortgage fell 9 basis points, to 3.81 percent. The benchmark 5/1 adjustable-rate mortgage fell 10 basis points, to 3.57 percent, and the 30-year, fixed-rate jumbo fell 6 basis points, to 5.04 percent. All of those are record lows in Bankrate's weekly survey.

The team at PrivoCorp, suggests to all borrowers to consult with their loan officers and lock in on these low rates. If the rates do dip further down, there is no need to be concerned as you can always refinance.

PrivoCorp is loan processing company and does not originate loans. This activity is performed by our clients - brokers or lenders.

Bankrate.com : Mortgage rates chug along

According to bankrate.com, mortgage rates have settled into a groove since last Thursday. Yields on mortgage bonds have chugged along at more or less the same level since then, and that implies that mortgage rates haven't moved much, either. Today is the day when Bankrate conducts its weekly rate survey; I predict that it will say that the benchmark 30-year fixed is 4.98 percent this week, up from 4.92 percent last week.

The Mortgage Bankers Association says there aren't many people applying for mortgages to buy homes; most customers are applying to refinance their current loans. Purchase applications are at their lowest level since April 1997, according to the MBA.

It's easy to figure out why home sales are down so much. The home buyer tax credits stole home sales from the future. We might come to regret this policy choice, because we will discover that some homeowners bought a few months too early, with an insufficient financial cushion. Some people will lose their homes because they bought in March instead of saving more money and waiting until the end of the year.

The above article appeared on bankrate.com

Biz Journals - Existing home sales jump 7.6%

The business Journals quoting the National association of Realtors said that the sales of existing homes in April were up 7.6 percent in March, led not only by the homebuyer tax credit, but by improving consumer confidence and favorable affordability conditions.

This is great news for processing companies like PrivoCorp who are on the verge of getting licensed  throughout the country to be able to process loans in accordance with the recent NMLS and SAFE guidelines. For more information on PrivoCorp - check our website at www.privocorp.com, and for more information on the article, check the Washington Journal here