FHFA Nominates Anthony Calabria As Director

The White House has nominated Anthony Calabria to be the new Director of the Federal Housing Finance Agency (FHFA) to succeed Melvin Whatt who has served as the head of the agency for the last 5 years. Prior to this, Calabria was the Chief Economist to the Vice President. He’ll run an agency in a time of potential transition in which some law makers would like to see the government separate it’s self from the two mortgage giants; Fannie Mae and Freddie Mac. It’s not expected that the Senate will be able to confirm him prior to Mr. Whatt’s term ending so the agency will likely have to appoint a temporary director while Mr. Calabria goes through the nomination process and Senate hearings. The nomination had no significant affect on the Mortgage Backed Securities (MBS) market as they were essentially unchanged just after the announcement. 

The nomination has been somewhat well received so far however it is not absent of those who think he’s the wrong choice. Mr. Calabria has been involved in the housing and finance industries as he was an aide to the Senate Banking Committee and helped draft the Housing and Economic Recovery Act of 2008 (HERA). His qualifications continue beyond that as he’s worked for the National Association of Home Builders, the National Association of Realtors, and Harvard’s Center For Housing Studies. Those that will oppose the nomination point to his previous statements in which he advocates for liquidating the two mortgage giants, the abolishment of the mortgage interest deduction for homeowners and he’s also advocated for lowering the conforming loan limits. This limits were just recently raised by FHFA to $484,350.00.

Robert Broeksmit, President of the Mortgage Bankers Association (MBA) issued the following statement: “He has a deep background in housing finance issues and we have enjoyed a good working relationship with him in his current and past roles. We look forward to working with him on a wide variety of housing finance issues, not the least of which is resolving the now-decade long conservatorship of Fannie Mae and Freddie Mac in a way that best serves borrowers, protects taxpayers and ensures equal access to stable and liquid secondary mortgage markets for a wide variety of single- and multifamily lenders, regardless of size or business model.”

Fannie Mae Loan Guidelines Update December 2018

On December 8th, 2018 the mortgage giant Fannie Mae will be updating its Automated Underwriting System which will adopt some new guidelines for conforming mortgages. Significant changes will come to loan programs that deal with borrower’s that have “debt-to-income” ratios that are looking to take cash out from their property. All conforming loans go through either the Fannie Mae Desktop Underwriter or Freddie Mac’s Loan Prospector before an underwriter approves a loan application. Generally speaking (stress generally); if a lender obtains an approval from either the Fannie Mae or the Freddie Mac Automated Underwriting System your loan will be approved Fannie Mae mortgage solutions(provided there is not a single change the data inputted upon the approval).

The main changes coming on December 8th will be for borrower’s who have high 
Debt To Income (DTI) ratios and what they’ll have to show to be able to get their loan approved under Fannie Mae’ Automated Underwriting System (AUS). Currently borrower’s with a DTI above 45% have the same requirements for loan approval as those who have a DTI below 45%. After December 8th, 2018 a borrower with a DTI above 45% will now have to show 6 months of liquid reserves to be able to obtain a Fannie Mae AUS approval.  The good news is that you can still get a great mortgage rate even if your DTI is above that 45% level. The bad news is that you’ll have to prove you have enough reserves (cash in the bank, stocks, 401k etc) to cover 6 months of mortgage payments (they also factor property and homeowners insurance into that calculation even if you’re not impounding the mortgage payment. For borrower’s with a DTI above 50% it’s unlikely they’ll be able to get a conforming mortgage and will have to look at some alternative solutions.  

Another significant change came to the mortgage industry last week and that was the increase in the conforming loan amounts for loans in California and across the country. Starting Jan 1, 2019 the conforming loan amount will be increasing to $484,350.00 for 1-unit properties, $620,000.00 for 2-unit properties, $749,650.00 for 3-unit properties and $931,600.00 for 4-unit properties.

If you have any additional questions about current Fannie Mae guidelines or questions about the up coming changes please be sure to let us know. You can contact us directly at 1-800-550-5538, email or catch up with us on twitter: @Rates01. Not only do we offer low mortgage rates but we also offer one-on-one personal service to each and every client. That means from application to closing you’ll work directly with Kevin O’Connor – you won’t be passed off to 3 or 4 other departments like most mortgage companies. 

November 2018 Mortgage Company

In November 2018 you have hundreds if not thousands of choices when it comes to choosing a mortgage company in the state of California.  Low mortgage rates, reputable company, great customer service, and cutting edge technology so it’s a quick close are all things that should factor into your decision making.

What makes Kevin O’Connor at JB Mortgage Capital, Inc. different and unique? Simply putA+ Rating – we offer low mortgage rates AND top notch service. In addition to that we’re one of the few mortgage companies that has an “A+” rating with the Better Business Bureau, “AAA” rating with the Business Consumers Alliance, a “Five Star” rating with Mortgage101 and a “Five Star” rating with Zillow.

We’re different than those big box internet lenders and we’re different from those small banks that just offer great service.  Some might say we’re a combination of the two since we offer great mortgage rates and great customer service! We don’t have a call center for one thing; second we don’t have processors and secretaries nor do we have different departments that handle the different stages of your loan. That means when you work with Kevin O’Connor at JB Mortgage Capital Inc., you work with one person from application to closing.  And since we don’t have secretaries and processors you’ll always have direct access to Kevin via phone, email or fax.

We utilize the latest technology to ensure your loan closes smoothly and quickly. We cover all of California (Northern, Central or Southern) and allow our clients to complete a loan application online, over the phone or a hardcopy.  As for collecting docs; no problem – clients can either upload them to our secure server, email, fax or Fed Ex their supporting documentation. Disclosures can be signed electronically and you’ll always be kept up-to-date with the status of your refinance or purchase mortgage transaction. Ready to close? Great; an independent notary will meet you at a time and location that most convenient for you.

California Mortgage Company

Mortgage Rates November 23, 2018

Happy Black Friday! Enjoy the next few days with your family; here are current terms heading into the weekend:


Mortgage Rates 11-16-18

Mortgage rates for November 16th, 2018 are heading into the weekend at their best levels of the month. The 10y yield is trading below 3.10% (as low as 3.081% this morning) and mortgage bonds are also showing signs of strength. The economic calendar today is absent of any significant reports and next is the housing data and the Durable Goods report. Thanksgiving holiday is fast approaching and most lenders will be closing early Wednesday, and won’t reopen until Monday. Bond markets are closed for the holiday.  The next FOMC (the Fed) meeting is December 18th – 19th. Many analyst and investors expect the Fed to raise rates again.

Currently we’re seeing 30 year fixed mortgage rates below 5.00%. 20 year fixed mortgage rates below 4.875% and 15 year fixed rates below 4.00%.  Mortgage rates adjust daily; sometimes they adjust multiple times in a day when the bond market is volatile. At JB Mortgage Capital, Inc. we offer residential mortgage loans on 1-4 unit properties for both purchase and the refinance of a current mortgage. We have loan programs for both fixed rate mortgages and adjustable rate mortgages.  Call us today for a no cost – no obligation quote at 1-800-550-5538.  We offer industry low mortgage rates, the latest technology and have a top rating with the Better Business Bureau.

Mortgage Rates


“Kevin was the most tangible person I’ve dealt with in home mortgages. Anytime we had a question posed to Kevin, Kevin was available via phone and via email PROMPTLY. Kevin was able to handle ALL of our questions and concerns with out any doubt. I would like to Thank Kevin for a wonderful experience and best I’ve had to date. I WILL be referring Kevin to all co-workers, friends and family in the business of buying a home. Thank you.” Michele and Mark S. – Simi Valley, CA