Here is the Roundup from this month’s Roundtable. If you’d like to see what was discussed, you can watch the Roundtable on the Counsel Mortgage YouTube channel at https://www.youtube.com/watch?v=h-qMkasMBJ8
- Market Update – a leading indicator for mortgage rates is the yield on the US 10-Year Treasury Note. The yield broke under 4%. This is significant as it may signal that mortgage rates will be coming down. We’ll be watching. The government shutdown has not affected the underwriting and closing of loans. We have not experienced any delays due to the government shutdown.
- Divorce – keep the same rate – in a divorce, if one spouse is awarded the house, the other spouse will have to come off of the Note. Typically, this is done by refinancing the home. Unfortunately, this means the spouse who is awarded the home would have to refinance at current rates, which may be much higher than the existing rate on the home. We have recently heard of mortgage servicers allowing the residing spouse to keep the existing rate on the home, without a refinance, if they are provided the divorce decree. If the servicer accepts this, then you may be able to assume the mortgage on the home at the low rate.
- Low appraisal – if the appraisal comes in low, the lender will use the lesser of the appraised value or contract price for the loan. For example, if the contract price is $800,000, and the appraisal comes in at $750,000, and you are putting 20% down, the lender will base the 20% down payment off of the lower appraised value of $750,000. Many contracts allow the buyer to cancel and get a return of their earnest deposit if the appraisal comes in low. Many buyers and sellers will use this as an opportunity to renegotiate the price. If the buyer wants to continue to purchase the home at the $800,000 price, they would have to come out of pocket for the difference between the appraised value and purchase price, which is $50,000 in this example.
- Easier to get a mortgage today – there are many different types of loan programs available today thereby making it easier to get a mortgage. Here are some loan products which provide alternatives to get a loan:
- No income/no employment verification mortgages
- Debt Service Coverage Ratio loans
- Private money
- Distribution from a retirement account
- Asset depletion
- Bank statement deposits as income for self-employed individuals
- Income based on pension, disability, social security
- Residual income calculations for VA and reverse mortgages
- Factors that go into a mortgage rate – there are many factors that go into a mortgage rate. When you hear a friend quoting their rate, it may be different than your rate because the factors for your rate are different than your friend’s. To see a list of factors, click here: https://counselmortgagegroup.com/factors-that-influnce-a-mortgage-rate-quote/
- Shut down of CFPB – According to an article in the Scotsman Guide on October 16, 2025, the acting director of the CFPB, Russel Vought, believes the Administration will close the agency with the next two to three months. There will likely be litigation as to whether the Executive branch can close an agency without Congress’ approval. If the CFPB is shut down, it does not mean the rules passed in Dodd-Frank in 2007 – 2008 will go away. It’s just that the enforcement arm for these rules will go away. If there is no one to enforce the rules, will the rules be followed? We’ll see how this plays out. Here is the link to the article: https://www.scotsmanguide.com/news/white-house-budget-director-aims-to-shut-down-the-cfpb-entirely/
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Looking forward to seeing you at next month’s Roundtable!
If you are considering purchasing a home, or refinancing, either residential or commercial, give us a call. This is what we do everyday, and can help find the right loan for you.