This is a message I am sending to my clients at WJ Bradley, but this information will apply to most all blowers who may be in the process of any type of a loan or mortgage. The effects of Hurricane Sandy are creating difficulty in our funding process, which we need to communicate to our borrowers.
- The bond market remains closed.
- Fannie Mae and Freddie Mac have communicated a closure to last the next 2-3 days, and Morgan Stanley, UBS, Bank of New York
- Banks that support our warehouse lines and our ability to fund — are either closed or functioning on limited staff based on their own disaster recovery/business resumption plans.
- In addition, Fedex and UPS deliveries, nation-wide, have been delayed or stopped outright due to the effects of the storm, which is causing delays in our receiving final docs and loan collateral to support fundings.
While we continue to fund loans, our capability to do so has been strained due to these factors.
Fundings for today and tomorrow will be managed as follows:
We are working aggressively with our warehouse lenders to ensure we minimize the storm’s impact; however there will be a number of refinance transactions that get pushed into next month. While we’re certain that this will cause difficulties with your clients and closing agents, the Company will roll lock expirations and will protect customer / originator / branch pricing from the impacts of the increased G-Fee as a result of the delays over these next few days.
As for locks – The Company was proactive with its hedging and will continue to accept lock requests even with the market closed.* However, to the extent the markets remain closed for longer than expected or if lock volume exceeds expectations, we may be forced to suspend locks until the market re-opens. We’ll keep you informed as we progress through today and tomorrow.
We understand the stress this causes, and we are thankful that these delays represent the extent of our difficulties. We extend our best wishes and prayers for those directly affected by this disaster.
If you have any questions regarding this, please don’t hesitate to ask.
Stand by for the jobs report coming out late this week to see how interest rates will be impacted. I believe that interest rates will hit all time lows again late this week and early next. If you haven’t locked in your interest rate, now might just be the time!