Monday, January 30, 2012


Last Week in Review

If at first you don't succeed, try, try again. Last week, that popular idiom could
have applied to the Gross Domestic Product (GDP) Report. Read on to learn why...
and how all the week's news impacted Bonds and home loan rates.
The Advanced
GDP reading
- or first of 
three readings
- for the 4th
Quarter of 2011
came in at 
2.8%, a bit 
below 
expectations
of 3.2%. This 
number will be 
revised two more
times, but if the
final GDP 
remains at 
2.8%...then the 
overall GDP for 2011 would be a scanty 1.57%. That is certainly a "Gross" Domestic
Product, whenyou consider that the government has underwritten more than half of 
that economic growth with the Payroll Tax benefit. 

Also in the news last week, the Fed's Policy Statement after its regularly scheduled
Federal Open Market Committee meeting was pretty much the same story as 
recent Statements, including stable long-term inflation expectations, a tepid economic
recovery, and fragile job market. But there was one big exception to their norm.
The Policy Statement said there will be "exceptionally low levels for the Federal 
Funds Rate at least through late 2014." This is a huge change from the previous 
statements of "low rates until mid-2013." 

On the surface, extending the zero interest policy until 2015 tells us the Fed thinks 
the economy will just be slogging along, and accommodative monetary policy
will be required to keep the economy growing at least at a modest pace. One could
argue that recent economic data is better of late and that all this loose monetary 
policy is unnecessary. But the Fed has spoken, and as the old adage goes: "Don't
fight the Fed." 

In news out of Europe, yields in European Bonds have come down…and by quite
a bit. This sparked some optimism that Europe's Long-term Refinance Operation
(LTRO) has helped alleviate some pressure in the peripheral countries in the
Eurozone, like Spain and Italy. So what's the takeaway? In honor of the upcoming 
Super Bowl, here's a football analogy: think of the LTRO as a super punt or 
"kick of the can" down the road. Europe needs to play a serious offensive line by 
creating a tighter fiscal union, implementing austerity measures, and developing 
growth strategies to help pay down the enormous debt. 

The bottom line is that Bonds and home loan rates remain at historic best 
levels, which means now is still a great time to purchase or refinance a 
home. Let me know if I can answer any questions at all for you or your clients.
Forecast for the Week

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Jan 27, 2012)
Japanese Candlestick ChartEconomic reports will be plentiful - and important - this week:
  • The week kicks off Monday with the Core Personal Consumption Expenditure (PCE), which is the Fed's favored gauge of inflation. This report will be closely watched, since any hint of an uptick in inflation could push Bond prices lower and, in turn, move home loan rates higher.
  • Manufacturing will also be in the spotlight with the Chicago PMI on Tuesday, followed by the ISM Index on Wednesday.
  • Consumer Confidence will also be delivered on Tuesday.
  • The ADP Private Employment Report will be released on Wednesday and comes before the government's total job's report on Friday.
  • As usual, Initial Jobless Claims will be released on Thursday. This week's report comes after an uptick of 21,000 last week.
  • Finally, on Friday the government's monthly Employment Report will be released. The Employment Report consists of Non-farm Payrolls, the Unemployment Rate, Average Workweek and Hourly Earnings. This is an important report that can have a big impact on the markets. So I'll be watching it closely.
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.
As you can see in the chart below, Bonds and home loan rates remain near their historic bests. I'll be watching closely to see which way they move next.
The Mortgage Market Guide View...


Share This Site…And Try it Yourself
Every once in a while, you come across a website that's just plain fun. This is one of those sites.
We've all seen websites that provide stats about what happened the year you were born. The website whathappenedinmybirthyear.com/ takes it a step further. It doesn't just offer stats and facts. Instead, it provides a picture of the world you grew up in - including what it looked like and how it was different than the world we live in today.
But it's more than just a fun website.
For one thing, it provides you with a light-hearted reason to connect with your clients on a personal level. You can share the site with them on social media or in one of your outreach pieces (such as a newsletter or email).
In addition, this site offers you a unique way to better understand your clients. If you know when a client was born, you can simply type in the year. In return, you'll get a picture of that client's social influences that have helped shape him or her. And that's exactly the kind of information you need to put yourself in your clients' shoes and understand them a little better. Of course, it doesn't hurt that it's entertaining too!
Try the site today…and consider sharing it with your clients as a way to connect with them on a more personal level.
Economic Calendar for the Week of January 30 - February 03
Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. January 30
08:30
Personal Income
Dec
0.4%

0.1%
Moderate
Mon. January 30
08:30
Personal Spending
Dec
0.2%

0.1%
Moderate
Mon. January 30
08:30
Personal Consumption Expenditures and Core PCE
Dec
0.1%

0.1%
HIGH
Mon. January 30
08:30
Personal Consumption Expenditures and Core PCE
YOY
NA

1.7%
HIGH
Tue. January 31
08:30
Employment Cost Index (ECI)
Q4
NA

0.3%
HIGH
Tue. January 31
09:45
Chicago PMI
Jan
61.0

62.5
HIGH
Tue. January 31
10:00
Consumer Confidence
Jan
67.0

64.5
Moderate
Wed. February 01
10:00
ISM Index
Jan
55.0

53.9
HIGH
Wed. February 01
08:15
ADP National Employment Report
Jan
250K

325K
HIGH
Thu. February 02
08:30
Jobless Claims (Initial)
1/28
375K

377K
Moderate
Thu. February 02
08:30
Productivity
Q4
2.0%

2.3%
Moderate
Fri. February 03
08:30
Non-farm Payrolls
Jan
225K

200K
HIGH
Fri. February 03
08:30
Unemployment Rate
Jan
8.4%

8.5%
HIGH
Fri. February 03
08:30
Hourly Earnings
Jan
0.2%

0.2%
HIGH
Fri. February 03
08:30
Average Work Week
Jan
34.4

34.4
HIGH
Fri. February 03
10:00
ISM Services Index
Jan
53.0

52.6
Moderate

Monday, January 23, 2012

Credit Restoration Company Questions

A lot of people have asked me about Credit Restoration Companies.  Hopefully, the attached form will answer your questions.  Feel free to ask my any additional questions on here anytime:


REPAIRING YOUR CREDIT LEGALLY

Why credit repair?
In the United States court system, you are presumed innocent until proven guilty. However, it seems like in the credit system, you are guilty until you prove your innocence.  The credit companies collect and distribute your private information without your knowledge at times and without your permission. 

So if credit bureaus are going to collect and sell information about you, they should also have the responsibility to make sure it is accurate and up-to-date.

Shouldn’t they?  The sad truth is that “NO” they don’t have to make sure it is accurate.  With that in mind, here are some questions many people ask regarding their credit. 

Do I need an attorney?  Can’t I do this myself?
Yes, you can. It is possible to fix your own credit, be your own attorney, be your own CPA or build your own home. With the right amount of time and energy you can learn to do anything.  So yes, you can do this on your own.  But just as you might not choose to repair you own vehicle, it isn't necessary to tackle credit repair alone.

Working with a credit attorney is best. They work day and night, to protect your rights, according to the applicable consumer protection laws. And because they are professionals, they can do it faster and more efficiently than you as a layperson would. So the question is - how valuable is your time, aptitude and inclination to learn this work?

Is it legal to repair my credit?
Of course it is!  Licensed lawyers could not engage in credit repair if it were illegal. The credit companies are the ones who have spread the misconception that credit repair isn’t legal. 

The Fair Credit Reporting Act (FCRA) gives you the right to accurate credit reporting.  Exercise that right by having your questionable credit listings either verified as accurate or removed from your credit reports according to the law.  

I though credit bureaus were official governmental agencies and that I didn’t have much say in what was on my report.

Nothing could be further from the truth.  There isn't anything governmental or official about the credit bureaus at all. In fact, the major consumer reporting agencies -- Equifax, Experian, and TransUnion -- are just three large publicly operated companies. 

Sadly, many creditors have perpetuated the belief that the credit bureaus are official, quasi-governmental agencies and will somehow punish consumers who dare to fight back. Such creditors want consumers to believe that challenging a credit report item is like questioning a courthouse record. Thankfully, that is not how it is.

Are accurate items required by law to stay on my credit report for seven years?
Not at all. The law limits the length of time that negative items can remain on your report to a maximum of 7 years. But the credit bureaus are able to delete these negative items any time they deem fit.

Am I required to know all the details of my credit report before I seek help?
Nope. Most of my clients were not even aware of all the negative things on their reports until they were denied credit. Our team can let you know right away what items need to be taken care of.

How much time will it take before my credit is restored?
No one can predict how long a case may take.  Every single case differs substantially. It would not be right for any company to state just how long any one case would take.

But, if you properly forward your credit reports in a timely manner, you are likely to see marked progress in the first two months. After that, advancement will be at a pretty steady pace.

On average, it takes about 6 months to complete the credit repair process.  Occasionally though, more complex cases take longer.   A lot of your progress will depend on how quickly you forward the information you receive, the specifics of your case, and the cooperation from the credit bureau(s).
  
Must I pay off negative items (like collections) before they can be removed from my credit report?
Absolutely, not. Paying off a negative item doesn’t affect whether or not it's shown on your report. But please realize that erasing an item from your report does NOT excuse you from payment of your debt.

It just means that it will not appear on your report when a potential credit grantor is viewing it. If you choose not to settle an unpaid item it may put you at risk for the creditor taking additional action that can again destroy the credit you have just worked so hard to repair.

Will paying off all of my bills return my credit to good standing?
Although this is a very logical assumption to make, unfortunately it is not true. There is nothing logical about the credit reporting system. An item will actually appear on your credit report longer if you pay it than if it goes unpaid.

This is because any activity causes the seven-year time clock to reset and begin again.  In the majority of cases, when you don't utilize professional help, you will not get too far by paying off the old debts. Regrettably you may sink even further.

Will deleted items go back on my credit report?
When an item has been deleted, occasionally, verification comes in later on behalf of the creditor. The Fair Credit Reporting Act recently modified its language to keep items from being re-reported on your report.

Also, you must be informed before an item that was taken off before can be reported again. Once removed, it is quite unusual for a listing to show up again. If an item is re-reported, it is a simple matter to challenge the listing again and press for permanent deletion.

Will I establish a new Social Security or Tax ID number, or receive a new credit line?
Absolutely not!  These methods risk loss of freedom, income, and community standing. If you see an advertisement for "NEW CREDIT FILE OVERNIGHT," steer clear!!! 

Is there any guarantee with credit restoration?
As with any legal work, no specific outcome is promised. No lawyer could ever promise a client that a judge would find them innocent.  However, the company I have chosen to work with is backed by a refund policy which entitles you to some or all of your money back if enough questionable items are not removed.

Will I be approved for credit if I sign up for credit repair?
As long as you have a clean credit report and meet the other requirements of the credit grantor, you should be approved for credit.  In many cases, we can help you establish some new credit as well.

What’s the process when I sign up?
You will receive credit reports from each of the three primary credit-reporting agencies on a regular basis. You should forward these to the company that is helping you if you have chosen one.  You should see items being removed from your report as you receive them.

It won't happen all at once- like losing weight; each time you weigh yourself you see that you're a little bit closer to your goal, and with patience you reach it.

What do I have to do?
Call my office and let’s talk about the credit repair companies I recommend.  We can decide which one is best for you.  Then I will help you get the ball rolling by making sure they have a recent credit report, an application from you and your contact information.  I look forward to hearing from you!

Jeff Porter
801-302-9180
Credit Repair site: http://640orfree.com/16372846