Blog - JVM Lending

Putting the “Median Home Price” Nonsense to Bed – Once and For All

March 24, 2023/in Homebuying, Our Blog

MEDIAN PIZZA PRICE PLUMMETED AT JVM! We are in a literal state of panic here at JVM because the median price of pizza has dropped like a rock over the last year – and we are pretty sure it is a sign of a total meltdown in the pizza market! In 2021, we only ordered […]Read More

Fed Raises Rates; Mortgage Rates PLUMMET; Why? JVM’s Here to Stay!

March 23, 2023/in Interest Rates, Mortgage Industry, Our Blog

JVM’S HERE TO STAY; BACKUP FOR BANKS PULLING OUT JVM was officially founded in 2006, and effectively founded in 1999 under another name by my wife, Heejin – with much of her operation carrying over to JVM in 2006. All this is to say that we are definitely here to stay, as we have ridden […]Read More

Please Do NOT File Your Taxes IF…

March 22, 2023/in Interest Rates, Our Blog

TODAY’S “FED DAY” & POWELL’S PICKLE The Fed announced a 0.25% hike Fed Funds Rate today, and the markets are digesting the news (focusing heavily on Powell’s comments). Powell’s pickle was this: raising rates might exacerbate the still looming banking crisis, but not raising rates could exacerbate inflation. We should expect market volatility (movement in […]Read More

100% Financing With CalHFA’s Dream for All Program – Coming Soon!

March 20, 2023/in Homebuying, Mortgage Industry, Our Blog

On March 27th, CalHFA will launch its most aggressive effort yet to help first-time homebuyers – with true 100% LTV Financing! It is called the CalHFA Dream for All Program, and this is how it works. 80 LTV 1st Mortgage: JVM provides the 80% Loan-to-Value (LTV) 1st Mortgage. 20% LTV 2nd Mortgage: CalHFA provides the […]Read More

Europe Raised Rates by 1/2%, and Rates FELL

March 17, 2023/in Interest Rates, Mortgage Industry, Our Blog

The European Central Bank (ECB) raised its short-term rate (its equivalent to the Fed Funds Rate that the Fed raises here in the U.S.) by a full 1/2% yesterday. It shocked many observers because Europe is facing a banking crisis that is potentially much worse than what we face here in the U.S. (for reasons […]Read More

Jumbo Loans In Peril Because Of Commercial Bank Issues

March 16, 2023/in FHA, Interest Rates, Mortgage Industry, Our Blog

EVERYTHING IS FINE…UNTIL IT ISN’T The former owner of RPM Mortgage (now merged with Cross Country) told me about a particularly harrowing ordeal he went through in 2008. His company had locked tens of millions of dollars of loans with the intention of selling them to particular investors when they closed. RPM underwrote and funded […]Read More

Uh Oh… 2023 Financial Crisis? 2008 All Over Again? Maybe Yes, and Definitely No

March 15, 2023/in Interest Rates, Our Blog

Rates fell sharply again today as inflation news was very good (PPI fell sharply), retail sales were down, and a key manufacturing index (Empire) was frighteningly weak. This is all playing out exactly as Jeff Snider has been predicting, and it is proving him correct once again – making his series of tweets last night […]Read More

Silicon Valley Bank Failure – Effect on the Mortgage Industry

March 13, 2023/in Mortgage Industry, Our Blog

Silicon Valley Bank’s (SVB’s) failure dominated headlines and social media all day Friday and over the weekend. Investors worldwide were very concerned because they were not sure if this was the start of an overall banking system meltdown or a one-off scenario. No economy can function without an effective banking system, so the initial […]Read More

Rates Plummet! Barry Was RIGHT! THIS IS HUGE!

March 10, 2023/in Interest Rates, Our Blog

WHO THE HELL IS BARRY? Barry Habib is the founder of MBS Highway, a subscription service that thousands of mortgage industry insiders subscribe to at a cost of $120 to $170 per month – and it is worth it! Barry and his team go way out of their way to provide value on every front […]Read More

Why Is The Fed SO DETERMINED To Push Rates Higher? (Not What You Think)

March 9, 2023/in Interest Rates, Our Blog

WHAT IS THE UNITED STATES’ MOST POWERFUL WEAPON? 1. It’s Ohio-class nuclear-powered submarines? 2. It’s B83 nuclear bombs? 3. It’s Tomahawk cruise missile? 4. It’s AC-130U gunships? Or 5. It’s Ford-class supercarriers? ANSWER: None of the above. The United States’ most powerful weapon is… the dollar. This is because the bulk of international trade is […]Read More

Picking Up Free Money – & Why I Am Amazed So Many Agents Still Step Over It!

March 8, 2023/in Our Blog

WHY COMMERCIAL BANKS BUILT ORNATE PALACES FOR BRANCHES For almost two centuries, American commercial banks built grandiose branches with marble columns, soaring ceilings, and ridiculously ornate décor. They did this for a few reasons: (1) to show the world that they were a solid and well-established business, as depositors would lose their money back in […]Read More

FHA Rates Even Lower! I Hope Buyers Stay Home :)

March 6, 2023/in FHA, Our Blog

BOOMER ERROR! On Friday, I pointed out how FHA rates are now often far better (by over 1%) than Fannie Mae Rates in this blog: FHA Keeps Beating Fannie Mae! And, I tried to impress everyone with an FHA rate quote – that I got wrong! I quoted 6.125% for a no-points loan, but the […]Read More

FHA Keeps BEATING Fannie Mae! This Is SHOCKING!

March 3, 2023/in FHA, Homebuying, Our Blog

Today’s FHA rate for a $1.1 million purchase with only 3.5% down is 6.125%* at no points. To paraphrase MC Hammer: Fannie Mae Can’t Touch That – not even close. FHA has been the redheaded stepchild of the mortgage world pretty much forever. This is because of misconceptions about FHA and because Fannie Mae’s […]Read More

Rates Climbed 1% in February! Great Opportunity For Buyers!

March 2, 2023/in Interest Rates, Our Blog

WHY IS MY CLIENT’S RATE SO HIGH? That is a question we have heard from several agents over the last week. The primary reason is usually just a misunderstanding of just how much rates have risen over the last month – almost 1%! I have included a screenshot of The 30-Year Fixed-Rate Mortgage Chart from […]Read More

Mortgage Banks (Like JVM) Can Broker Loans Too!

March 1, 2023/in Mortgage Industry, Our Blog

A Few Quick Reminders: FHA Rates Are 1% Lower – in some cases: This is a quick reminder that FHA’s interest rates can be as much as 1% lower than Fannie Mae’s conforming rates – particularly for borrowers with large loan amounts, small down payments and/or lower credit scores. Hot Markets/14-Day Closes: Despite all the […]Read More

Fannie Mae Is Raising Rates for STRONG Borrowers

February 27, 2023/in Interest Rates, Our Blog

Approximately 85% of FHA loans are for first-time homebuyers. In contrast, about 50% of Fannie Mae’s and Freddie Mac’s “conforming loans” are for first-time homebuyers. As a quick reminder, FHA loans only require 3.5% down – and they are much more flexible with respect to debt ratios, credit, and other underwriting criteria. Fannie Mae and […]Read More

FHA Just Got Even MORE AMAZING! (MIP Cut By 30 Basis Points!!)

February 24, 2023/in FHA, Our Blog

I used to blog quite often about how advantageous FHA loans are for a variety of reasons – In Defense of FHA/Misconceptions Persist. The reasons include: 1. Rates much lower than Fannie Mae rates; 2. Fast closes – only 14 calendar days; 3. Don’t need clear pest inspections; 4. Can get large lender credits for […]Read More

MBA “Purchase Index” Falls to Lowest Level Since 1995! Panic Time?

February 23, 2023/in Interest Rates, Our Blog

Rates have climbed almost a full 1% point since early February, as this Mortgage News Daily Chart indicates. In direct response to this increase in rates, purchase money mortgage applications plummeted – showing once again how sensitive buyers are to interest rates. And – the Mortgage Bankers Association “Purchase Index” (based largely on mortgage applications) […]Read More

Declining Markets Force Banks To Increase Down Payment Requirements; What To Do?

February 22, 2023/in Homebuying, Our Blog

In January, I blogged about appraisers checking “The Dreaded Declining Markets” box on appraisals. I highly recommend re-reading that blog, as the issue is much more prominent now – particularly with commercial banks offering jumbo loans. Here are some of the key points I made: (1) it is appraisers who make the designation and not […]Read More

1.9 Million Household Formations; 1.4 Million New Homes Coming Online

February 20, 2023/in Our Blog, Real Estate

In 2023, 1.9 million new households will be formed as young people leave college, leave their parents’ homes, get married, etc. But – only 1.4 million new homes will come online. This data was reported by Barry Habib last week, and it is one more HUGE reminder of why 2023 is so different from 2007 […]Read More

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