Archive for February, 2014

Are You Ignoring the Needs of the Majority of Tomorrows Homebuyer’$

Posted by Joel pate in Uncategorized. Tagged:

A February 2013 report by the Federal Trade Commission finds “that up to Forty Million American’s have an error on their credit report” and that will keep many of them from being able to purchase a home.

On behalf of the agency, Maneesha Mithal, Associate Director, Division of Privacy and Identity Protection, told the Subcommittee on Consumer Protection, Product Safety, and Insurance “that errors in credit reports can cause consumers to be denied credit or other benefits or pay a higher price for them. It may also lead credit issuers to make inaccurate decisions that cause them to deny credit to a potentially valuable customer or issue credit to a riskier customer than intended.”

This one fact is holding back a complete recovery of the housing market nationally but also in your local market. Errors on credit reports is harming your business, and the business of your key Realtor® and builder referral sources.

I have the privilege of being a Continuing Education Instructor for the University of Alabama Center for Real Estate (ACRE). The Department asked me to prepare a report on the impact to a local housing market caused by errors on credit reports. The numbers break down like this for Tuscaloosa Alabama:

• Metro Area: 192,000
• Profound error: 19,530 *
• Significant Error: 4,650 *
• Would be homebuyers: 20% +- **
• Avg. Sales Price: $149,450 ***
• Homes sold per month: 150 ***
• Avg. Percentage of Sellers that purchase: 20% +- **
• Long Story short: $9,728,730 lost real estate commissions per year

* FTC ** Estimate ***ACRE

Folks, the facts are simply undeniable. Values in the Tuscaloosa housing market and in markets all around the country are artificially suppressed simply because the errors on credit reports deny consumers the ability to qualify for a mortgage to purchase a home.

And of course, that translates into a tangible direct and significant loss of income to your company, your personal income, the income of your referral partners, and last but not least, the value of your own home is impacted as well.

Simply stated, you are loosing money every day because of errors on credit reports. The question on the table for you today:

Does an opportunity exist for you to engage this sector of the market and if the answer is yes, who and how?

Before I give you that answer, it is important that we deal with the elephant that is about to walk into your room.

Yes, I am talking about credit repair and yes the industry has a sullied reputation that they have worked very hard to earn. Even now, some companies continue to violate Federal Law by charging in advance, making promises that they can’t keep and of course some even have problems with simple business operations like answering their phone and returning calls. You name it. The industry has been has been its own worst enemy for years.

But now, I am glad to report, in many markets, a new breed of professional is beginning to take the place of the old school companies. These professionals can be relied upon and it’s a good time for you to take another look and meet some of them face to face.

As with any member of your team, it is critical to understand their qualifications, their commitment to customer service and their dedication to the industry. These are the basic criteria that you can use to begin your search:

• They are members of the National Association of Credit Service Organizations (NACSO)
• They are local. If not. Make sure they have the bandwidth to do business with you in your market
• Do they use advanced software platforms that allow you to monitor the activity?
• Have they earned designations like FICO® Professional from All-Regs?

If the answer to these important questions is no, keep looking. As a past owner of five mortgage company offices and a real estate broker, developer and builder since 1985, I understand your concerns when determining if it is best for your business just to give out a quick NO or to attempt to assist a family to navigate back to being mortgage ready. Whether they find themselves in this situation from their own poor behavior patterns or from errors on their credit reports caused by merged files or even Identity Theft, the fact is that they need your help and there is money to be made.

The purpose of today’s article is give you the information that you need to understand that there are hundreds if not thousands of families in your local marketplace that need your assistance. They don’t know what to do to overcome an obstacle that in many cases is not their fault. Tools and training are available to help you to determine if this market segment is right for you and your company.

To obtain a list of trained, educated and professional credit repair companies in your local market or just to call to set up a short call discuss this market segment, feel free to contact me.

Joel S. Pate is a 28-year veteran of the real estate, mortgage and credit
Industries and has founded many successful ventures. He lives in Mobile
Alabama with his wife Mitzi of 28 years, two daughters and their family.
Joel and Mitzi are proud grandparents. You can reach Joel at
Joel.Pate@ScoreInc.com or at 877-876-5921

About Scoreinc.com

Scoreinc.com, Inc., headquarter in Mayaguez Puerto Rico USA, with offices in Mobile Alabama, is a leading provider of services to the derogatory credit sector of the financial service industry through its Scoreway® Software Solution and credit report accuracy dispute services. The Scoreway® platform provides an end-to-end management solution that helps the companies that we serve manage the credit review and dispute process and to improve controls and profitability. Scoreinc.com services an ever growing list of mortgage company’s, banks, credit unions, Realtors®, builders and credit service organizations through its innovative technology and credit report accuracy service.

Contact Score for more information at 877-876-5921 or by visiting the following pages:
Credit Repair Merchant Service
Fair Debt Collection Practices-learn to earn from FDCPA
Credit Repair Business Training
Credit Repair Software
Credit Repair Solution

For more details please visit Scoreinc.com

Realtors® Rate Exterior Replacement Projects among Most Valuable Home Improvements

Posted by Joel pate in Uncategorized. Tagged:

A home’s curb appeal is crucial because it can be the first thing buyers notice about a home. That’s why Realtors® rated exterior projects among the most valuable home improvement projects in the 2014 Remodeling Cost vs. Value Report.
“Deciding what remodeling projects to undertake can be a difficult decision for homeowners,” said National Association of Realtors® President Steve Brown, co-owner of Irongate, Inc., Realtors® in Dayton, Ohio. “Realtors® know what home features are important to buyers in their area, but a home’s curb appeal is always critical since it’s the first impression for potential buyers. That’s why exterior replacement projects offer the greatest bang for the buck. Projects such as entry door, siding and window replacements can recoup homeowners more than 78 percent of costs upon resale.”
NAR’s consumer website HouseLogic.com highlights the results of the report in its “Best Bets for Remodeling Your Home in 2014” slideshow. The site also provides information and advice on various home improvement projects, including a guide to kitchen remodeling with the best payback and dozens of exterior replacement projects.
Realtors® judged a steel entry door replacement as the project expected to return the most money, with an estimated 96.6 percent of costs recouped upon resale. The steel entry door replacement is consistently the least expensive project in the annual Cost vs. Value Report, costing little more than $1,100 on average.
Eight of the top 10 most cost-effective projects nationally are exterior projects. A wood deck addition came in second with an estimated 87.4 percent of costs recouped upon resale. Two different siding replacement projects also landed in the top 10, including fiber-cement siding, expected to return 87 percent of costs, and vinyl siding, expected to return 78.2 percent of costs. Out of the top 10 projects, the fiber-cement siding replacement project improved the most since last year, with costs recouped increasing by more than 15 percent. Two garage door replacements were also in the top 10; a midrange garage door replacement is expected to return 83.7 percent while an upscale garage door replacement follows closely at 82.9 percent of costs recouped. Rounding out the top exterior remodeling projects were two window replacements; a wood window replacement is estimated to recoup 79.3 percent of costs, and a vinyl window replacement is estimated to recoup 78.7 percent of costs.
According to the report, two interior remodeling projects can recoup substantial value at resale. An attic bedroom is ranked fourth and is expected to return 84.3 percent of costs; nationally, the average cost for the project is just above $49,000. The second interior remodeling project in the top 10 is the minor kitchen remodel. The project landed at number seven and is estimated to recoup 82.7 percent of costs. Nationally, the average cost for the project is just under $19,000. The improvement project likely to return the least is the home office remodel, estimated to recoup 48.9 percent.
For the report, Realtors® provided their insights into local markets and buyer home preferences within those markets. For 2014, the national average cost-value ratio stands at 66.1 percent, a jump of 5.5 points over last year and the largest increase since 2005, when the ratio increased 6.1 points to reach a high of 86.7 percent.
For the second consecutive year, Cost vs. Value data shows that the value of remodeling is up for all 35 projects included in the survey. Additionally, for the first time in four years, improved resale value of residential housing had more of an influence in the cost-value ratio than construction costs. A modest 2.2 percent increase in average national construction costs was more than offset by an 11.5 percent improvement in average national resale value.
The 2014 Remodeling Cost vs. Value Report compares construction costs with resale values for 35 midrange and upscale remodeling projects comprising additions, remodels and replacements in 100 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. The report, which is produced by Remodeling magazine publisher Hanley Wood, LLC, was completed in cooperation with NAR.
“Every neighborhood is different, and the desirability and resale value of a particular remodeling project varies by region and metro area. Before undertaking a remodeling project, homeowners should consult a Realtor® as they are the best resource when deciding what projects will provide the most return upon resale,” said Brown. “Realtors® have a unique understanding of local markets, home features and buyer preferences and know that there are a variety of factors that affect a home’s value, such as location, condition of surrounding properties and regional economic climate.”
Seven of the nine regions covered in the report outperformed the national average, a distinct improvement over 2013, when just four regions performed better than average. Once again, the Pacific region, consisting of Alaska, California, Hawaii, Oregon and Washington, led the nation with an average cost-value ratio of 88 percent, due mainly to strong resale values. The next best performing region was West South Central with 76.4 percent, followed by three regions tied at 74.6 percent: South Atlantic, which improved from 63.7 percent in 2013, New England, which improved from 56.2 percent in 2013, and East North Central, which improved from 54.8 percent in 2013.
To read the full project descriptions and access national and regional project data, visit www.costvsvalue.com. “Cost vs. Value” is a registered trademark of Hanley Wood, LLC.

By: www.realestaterama.com

About Scoreinc.com

Scoreinc.com, Inc., headquarter in Mayaguez Puerto Rico USA, with offices in Mobile Alabama, is a leading provider of services to the derogatory credit sector of the financial service industry through its Scoreway® Software Solution and credit report accuracy dispute services. The Scoreway® platform provides an end-to-end management solution that helps the companies that we serve manage the credit review and dispute process and to improve controls and profitability. Scoreinc.com services an ever growing list of mortgage company’s, banks, credit unions, Realtors®, builders and credit service organizations through its innovative technology and credit report accuracy service.

Contact Score for more information at 877-876-5921 or by visiting the following pages:
Credit Repair Merchant Service
Fair Debt Collection Practices-learn to earn from FDCPA
Credit Repair Business Training
Credit Repair Software
Credit Repair Solution

For more details please visit Scoreinc.com

5 Habits that Ruin Your Car’s Value

Posted by Joel pate in Uncategorized. Tagged:

Buying a new — or even a new-to-you — car often is a pricey proposition. Here are some steps to avoid if you want your ride to retain its value for a longer time.
Maintaining your car’s value
A number of personal finance gurus advise against buying a brand new car — ever — but drivers are ignoring this advice. Perhaps it’s because the cost of financing a new car is so low; a recent Gobankingrates.com auto loan study found the national average for new car loans is just 3.99% APR, while some local banks and credit unions charge as little as 0.99% APR.
So if you bucked the frugal option, accepting that a new car’s value decreases by 11% on average as soon as the odometer rolls to “1,” here are a few bad habits you can avoid to mitigate any further depreciation on your new vehicle.
Riding dirty
You might not mind skipping a few washes to make up for a big car payment, but everything from the elements, to salt on the road, to good ol’ bird poop will wear away a new car’s finish and detract from its overall resale value. New car owners should be mindful of dirt and grime that can build up — both inside and out — and opt for a wash (preferably by hand) every week or two and a full detail at least four times a year.
Jon Dulin of MoneySmartGuides.com says keeping a clean engine bay immensely improves your vehicle’s resale value. “Don’t take a hose to your engine, but take a wet rag and wipe off the dirt from the hoses and plastic coverings under the hood,” advises Dulin, adding, “Buyers see a super clean car and engine bay … and will pay top dollar for the car.”
Driving hard
Some drivers are more aggressive than others, but the rush of sitting behind the driver’s seat of a brand new, powerful car is enough to give anyone a lead foot for the first few thousand miles. The problem is these first miles are when new car owners need to be most gentle. While it’s rare for most modern cars to come with specific break-in instructions, it’s always recommended that drivers go easy on the gas, avoiding redlining or hard breaking.
It’s also important to change the oil almost immediately. “That 20-mile oil, you would think, would look pretty much like fresh oil right out of the bottle. Wrong. It usually looks more like metal-flake paint, iridescent with tiny particles of metal worn off rubbing surfaces inside the new engines,” writes Mike Allen in Popular Mechanics. “After a few hours of operation, this completely normal phenomenon slows down as the rings, camshaft, lifters and bearings burnish their respective mating surfaces.”
Customizing your vehicle
Adding a body kit or exhaust system can personalize a vehicle, but will consequently reduce the pool of buyers interested in purchasing it when you’re ready to move on. Even worse, aftermarket modifications and accessories can interfere with a car’s warranty. Above all, car owners concerned with retaining value should steer clear of add-ons that alter powertrain or safety equipment.
Failing to keep records
The Car Connection recommends holding on to all of your service records, which can be especially valuable if you end up selling your car to a private buyer. By showing paperwork that proves the vehicle’s tires, oil and battery are in good condition, you have a better chance at selling the car and getting a good price.
Seeking service from a stranger
Bret Bodas, automotive expert and director of the automotive professional group at repairpal.com, says having unqualified technicians work on your car often ends up being an enormous drain on your wallet. “Though you may think you’re paying a little less, this often backfires,” Bodas says. “Untrained professionals make your vehicle’s issues a matter of trial and error, guessing which parts need to be replaced to fix that funny noise and potentially causing new problems.”
Rather than taking the chance, dedicate the same amount of time and research you did in choosing your new car to finding the person who will help repair and maintain it.

By: Casey Bond, www.money.msn.com

About Scoreinc.com

Scoreinc.com, Inc., headquarter in Mayaguez Puerto Rico USA, with offices in Mobile Alabama, is a leading provider of services to the derogatory credit sector of the financial service industry through its Scoreway® Software Solution and credit report accuracy dispute services. The Scoreway® platform provides an end-to-end management solution that helps the companies that we serve manage the credit review and dispute process and to improve controls and profitability. Scoreinc.com services an ever growing list of mortgage company’s, banks, credit unions, Realtors®, builders and credit service organizations through its innovative technology and credit report accuracy service.

Contact Score for more information at 877-876-5921 or by visiting the following pages:
Credit Repair Merchant Service
Fair Debt Collection Practices-learn to earn from FDCPA
Credit Repair Business Training
Credit Repair Software
Credit Repair Solution

For more details please visit Scoreinc.com

How to Deal With the Undercommunicator

Posted by Joel pate in Uncategorized. Tagged:

We would love it if all potential home buyers were warm, engaging, and easy to communicate with. But, in reality, wary shoppers find the home buying or home selling experience intimidating.
When the customer fears a negative environment, they often strike a self-protective pose that can be seen in any number of ways. They might seem passive, quiet, disinterested, and even mean. Does this make the shopper an unfriendly person? No! It simply makes them a normal person.
Consider how many bad experiences people have on used car lots or other high-pressure sales environments. It’s no surprise, then, that for many customers negative perceptions resurface when faced with another big-ticket sales experience. They fear they are about to be confronted by an unscrupulous salesperson whose only goal is to take advantage of them. Is this really true? Of course, not. But the fear is real, and the reaction to that fear is also very real.
I like to think of myself as a good guy. As much as possible, I like to get along with those around me. However, if you see me walk onto a used car lot, you’ll see a person who is quiet, reserved, disinterested, and unsocial. You might even read me as a bit mean. Am I a mean person? No, I’m a buyer who knows the pain of buying cars from people who have tried to take advantage of me, and I don’t want to become the victim of another manipulative smooth talker. My biases and perceptions control my actions. A great many salespeople in that business are, of course, trustworthy and ethical, but I don’t yet know that when I walk through the door. So, at this point, I often fear the worst.
Now imagine a similar response from someone who carries these same fears and also has an introverted personality. Small wonder that customers will choose to undercommunicate — it’s simply a defense mechanism.
The solution exists in one overriding mind-set: unilateral respect. Some real estate practitioners offer respect only after they receive it, but this is the wrong approach in the sales conversation. We must understand that respect is earned, not handed to us. The great agent makes a decision — before a customer walks through the door — to offer unilateral respect and appreciation to this individual. If the respect is not immediately reciprocated, the mature agent responds by saying to himself or herself, “That’s fine; I have work to do to build the trust with this customer and earn their respect, but I will not allow my respect for them to wane in the meantime.”
Respecting someone who does not (yet) respect you takes a great deal of maturity and confidence, traits that Daniel Goleman describes as “emotional intelligence” in his book of the same name. Emotionally intelligent salespeople practice unilateral respect, friendliness, and kindness. They understand that what the customer needs is an advocate who truly understands what they are going through and who will go out of their way to meet the customer’s needs.
How do we do this? Here are four suggestions:
1. Respect the Need for Control
One of the greatest fears shoppers have is the fear of losing control to a manipulative salesperson. These customers want to be in control, but they don’t always know how. They fear that if they tip their hand and share too much information, they’ll weaken their position.
Undercommunicators need to be talked to in the language of esteem. Don’t be afraid to take a submissive posture in your desire to help.
“It’s my job to give you the information you need to make an intelligent decision.”
“I promise to provide the best service I can throughout this process.”
2. Match Their Analytical Side First
Undercommunicators don’t need sales professionals who are fresh out of a motivation seminar or who desire to carry the entire transaction on their own emotional shoulders. They need a chameleon, someone who will adjust to their style and their communication preferences. Does that mean we take all the emotion out of the sale? No way! It simply means that we start with the logical and factual and then transition to the emotional when the customer reaches a comfort level that allows them to do so. Do this by sharing information early and immediately asking questions about whether you have what they are looking for. For example:
“I have a lot of listings here in Orange Park. Are you familiar with the area?”
“The average home price for this neighborhood is $350K. Is there a price range you were hoping to find?”
Once it appears that your product might fit their needs, begin transitioning to confirming statements such as, “Wow, this sounds like it meets your needs exactly!”
3. Use Your Tools
Most sales environments are full of wonderful and positive distractions that will temporarily take the focus off of the one-on-one relationship between buyer and seller and instead direct the prospect’s attention to something more tangible and analytical. Give the customers an initial overview of the home and let them get comfortable with their surroundings. All the while, you’re giving them reason not to fear you. This will encourage them to open up and share information.
4. Appeal to Their Intellectual Ego
The cynic would respond, “Do you mean I should patronize this buyer?” Well, yes — if patronizing means meeting them at their level and understanding what they are going through. Tell them that you appreciate their style and that they obviously know what they’re doing. It’s okay to say to an undercommunicator, “You’re in charge. I’ll give you information, but you’ll make the decision.”
By using the above techniques you’ll have a better experience with undercommunicators and convert more of them into sales.

By: Jeff Shore, www.realtor.org

About Scoreinc.com

Scoreinc.com, Inc., headquarter in Mayaguez Puerto Rico USA, with offices in Mobile Alabama, is a leading provider of services to the derogatory credit sector of the financial service industry through its Scoreway® Software Solution and credit report accuracy dispute services. The Scoreway® platform provides an end-to-end management solution that helps the companies that we serve manage the credit review and dispute process and to improve controls and profitability. Scoreinc.com services an ever growing list of mortgage company’s, banks, credit unions, Realtors®, builders and credit service organizations through its innovative technology and credit report accuracy service.

Contact Score for more information at 877-876-5921 or by visiting the following pages:
Credit Repair Merchant Service
Fair Debt Collection Practices-learn to earn from FDCPA
Credit Repair Business Training
Credit Repair Software
Credit Repair Solution

For more details please visit Scoreinc.com

Treasury Official Throws Cold Water on Fannie/Freddie Optimism

Posted by Joel pate in Uncategorized. Tagged:

A Treasury Department official said late last month that, despite arguments that Fannie Mae and Freddie Mac are financially flush and that with the confirmation of Mel Watt as Director of the Federal Housing Finance Agency (FHFA) the administration can now accomplish its goals without the help of Congress, it is critical to continue the pursuit of comprehensive housing finance reform.
Secretary for Housing Finance Policy Dr. Michael Stegman told a meeting of the ABS Structured Finance Industry Group many of the structural flaws of the legacy GSE-centric mortgage finance system have not been fixed. A taxpayer-backed duopoly is not sustainable or sensible public policy.
He said that recent quarterly results may “significantly overstate the true financial condition of the enterprises, especially on a go-forward basis.” Some recent income has resulted from one-time tax reversals, releases of loan loss reserves, or settlements of legacy securities litigation. Excluding these, in the first three quarters of 2013 more than 60 percent of the GSEs’ combined income was from their retained investment portfolios which they are required to steadily shrink under their agreements with Treasury. They have also benefited from strong home-price appreciation and low interest rates, both of which may moderate in future periods.
Further, he said, keeping the GSEs in a conservatorship is not the best way to operate over the long term and continued uncertainty about their future will continue to impede access to credit.
Stegman said the President has outlined his objectives for that reform: require private capital to play the dominant role in providing mortgage credit; ensure creditworthy borrowers have broad access to safe and responsible mortgages; put in place strong safeguards to protect taxpayers; and help ensure access to affordable rental options for middle class families and those who are working toward joining the middle class. The following are priorities.
Preserving a deep and liquid TBA market. A catastrophic government guarantee of qualified mortgage backed securities (MBS) standing behind substantial private capital in a first loss position is critical to maintaining market liquidity and preserving broad access to the 30-year fixed rate mortgage. GSEs’ legacy securities must have a comparable guarantee. A good first step toward this would be to reduce the price gap between Freddie Mac’s securities and Fannie Mae’s by linking them. This would reduce the cost to taxpayers and improve liquidity in the TBA market.
The holding or syndicating of credit risk should be separated from the act of securitizing mortgages. This would help prevent entities holding credit risk from becoming too important to fail because they also control the infrastructure needed to create securities. It would also lower the barriers to entry.
To attract significant private capital to take credit risk, the regulator should be able to approve various forms of first loss as long as they meet specified criteria. There are two phases of the mortgage credit cycle in which alignment of interest issues arise between the first loss-taker and the government: (1) when mortgage pools are formed; and, (2) throughout the life of the loan. The interests of the Guarantor entity and the government are powerfully aligned where a well-capitalized guarantor is responsible for paying all credit losses on a given pool and the government guarantee is triggered only when all of its capital is exhausted.
Creditworthy borrowers with varying income levels must have access to the system. Originators, guarantors, and aggregators within a government guaranteed system will be required to provide mortgage credit on an equitable and non-exclusionary basis.
The new system should include a national mortgage database. The recovery was hampered by the low quality and idiosyncratic coverage of mortgage data such as information to assess risk or to identify and link senior and junior liens. A comprehensive database covering residential loans and liens would be a significant step to improve these data failures.
The transition must be done in a way that does not disrupt liquidity and access to credit and will take time, at least five years. GSEs should ramp up their risk-sharing transactions, and make strong progress on their Common Securitization Platform, since a single securitization utility is central to the future system. The Administrations also wants to see a number of new guarantors during the transition period prior to terminating the GSEs’ authority to do new business.
A robust non-agency private label securitization market is crucial to any future system and increasing guarantee fees is necessary but not sufficient to insure the re-entry of private capital. Stegman said as he looks at the three crucial focal points of reform he sees a bipartisan commitment to reform on the part of the Senate Banking Committee, and sees “one glaring void.”
“Where can we turn to find the focal point for reforming and reinvigorating the private label securities sector? Where is the center of gravity for addressing standards around reps and warranties, trustee obligations, data and disclosure, loss mitigation, and related issues?”

By: Jann Swanson, www.mortgagenewsdaily.com

About Scoreinc.com

Scoreinc.com, Inc., headquarter in Mayaguez Puerto Rico USA, with offices in Mobile Alabama, is a leading provider of services to the derogatory credit sector of the financial service industry through its Scoreway® Software Solution and credit report accuracy dispute services. The Scoreway® platform provides an end-to-end management solution that helps the companies that we serve manage the credit review and dispute process and to improve controls and profitability. Scoreinc.com services an ever growing list of mortgage company’s, banks, credit unions, Realtors®, builders and credit service organizations through its innovative technology and credit report accuracy service.

Contact Score for more information at 877-876-5921 or by visiting the following pages:
Credit Repair Merchant Service
Fair Debt Collection Practices-learn to earn from FDCPA
Credit Repair Business Training
Credit Repair Software
Credit Repair Solution

For more details please visit Scoreinc.com

MMRecap for Feb. 3rd

Posted by Joel pate in Uncategorized. Tagged:

There was a good news/bad news scenario released early last Monday. Although new home sales in December came in 4.5% higher than a year ago, the cold fact is that sales fell 7% in December. Deep-freeze weather likely played a role in the slide. Sales plunged to an annual rate of 414,000 units versus the previous 445,000.
Stocks continued their slide, with the big three indices closing in negative territory. Some analysts believe a correction in the markets could send them down 10% after the huge gains posted in 2013. Right now prices are believed to be “slightly expensive.” The 10-year yield, which moves in the opposite direction of price, didn’t fare well either. It climbed three basis points to close at 2.77%.
The opening markets were ugly on Tuesday due to an unexpectedly weak report on December durable goods orders. The markets expected somewhat better than 2.0% after hitting a revised 2.6% increase the previous month. The actual number was -4.3% and, excluding transportation, it came in at -1.6%. That was a nasty blow, but the markets recouped when Case-Shiller reported home prices in the nation’s 20 largest cities rose 13.7%, which was close to estimates. It was noted that sales price gains are likely to slow, because home prices are nearly 20% below the peak levels reached in 2006.
And finally, consumer confidence in December beat estimates, coming in at a better-than-expected 80.7 from a revised 77.5. The positive news jump-started Wall Street. The Dow closed up 90.68 points, or 0.57%. The Nasdaq posted a gain of 14.35 points, or 0.33%, while the S&P 500 added 10.49 points, or 0.51%. The yield on the 10-year note dipped another two basis points to 2.75%.
Wednesday was another good day for the 10-year yield and a disastrous one for stocks. The FOMC whacked another $10 billion from its bond-buying stimulus program, bringing monthly payments down to $65 billion. Stocks did not take the news well, but bonds loved it. The 10-year yield dropped seven basis points to 2.68%, the lowest it’s been since November 18, 2013.
In addition, there is growing concern about the “Fragile Five,” i.e., Turkey, India, Brazil, Indonesia and South Africa, which are termed emerging markets. In order to grow, however, they need countries to invest in them. But with their currencies on a steep slide and economic growth slowing, that just isn’t happening. And China’s manufacturing output was weaker than expected.
When stocks closed, the Dow was down 189.77 points, or -1.19%. The Nasdaq fell -46.53 points, or 1.14%, and the S&P 500 dropped 18.01 points, or -1.02%.
Thursday saw a batch of reports ranging from mediocre to poor. First-time jobless claims for the week ended Jan. 25 rose to a higher-than-expected 348,000 — almost 20,000 more than the previous week. Continuing claims, those filing for a second or more week of benefits, dropped by about 16,000.
The highly anticipated 4th quarter advance GDP rose 3.2% versus the 3rd quarter final of 4.1%. It was slightly lower than some estimates, but two more adjustments are on the way. Pending home sales for December plummeted -8.7% after a loss of only -0.3% the previous month. Analysts expected a -0.1% decline.
Stocks ignored the reports and went on a late-morning rampage. By close, the Dow had added 109.82 points or 0.70%. The Nasdaq and S&P 500 did even better, posting gains of 71.70 points, or 1.77%, and 18.99 points, or 1.13%, respectively.
Déjà vu? On Friday, stocks opened down due to weak earnings reports and continuing worries about the “The Fragile Five.” Once again, the 10-year note yield benefitted, falling another two basis points to close at 2.67%.
The economic reports were weak, for the most part. Personal income in December was flat, after posting a 0.2% increase in November. And personal spending came in at 0.4%, down from the prior 0.6% reading. The PCE (personal consumption expenditures) held at 0.1%, while the 4th quarter ECI (employment cost expenditures) edged up to 0.5% from 0.4% the previous month. The Chicago PMI came in at a better-than-expected 59.6, even though it was lower than the previous 60.8.
The final report of the month, the University of Michigan’s consumer sentiment report, beat estimates, coming in at 81.2 versus the preliminary reading of 80.4. Will that bode well for the economy? We’ll find out soon enough.
Demand for both refi and purchase mortgage applications edged down 2.2% during the week ended Jan. 24, according to the Mortgage Bankers Association. The MBA reported that the seasonally adjusted index of refinancing applications slid 2.2 percent, while the gauge of loan requests for home purchases, a leading indicator of home sales, rose 1.5 percent. The average interest rate on a conventional 30-year mortgage fell to 4.52% and was down five basis points from the previous week.
This week features a dozen reports — enough to make things interesting. However, the big market mover is Friday’s January employment report. Until then, we’ll deal with January’s ISM index on manufacturing, which is due Monday. The index for December was revised down to 56.5 from the initial reading of 57. A strong upward move would be good for the economy but could move the 10-year index up a point. Construction spending for November rose 1.6%, but December data is predicted to come in flat.
Tuesday’s only report is factory orders for December, which are expected to fall as much as 2.0% after posting a 1.8% increase in November.
Wednesday will get everyone focused on the employment report because that’s when payroll giant ADP releases its data on new hires for January. Although often off the mark, the influence of this report is one that investors appear to believe. Their target for workplace hires is 177,000.
The final mid-week report is the January ISM index on the service sector, which includes hundreds of thousands of employees who work in retail, health care, restaurants and so forth. It, however, does not have the same high-powered influence as the manufacturing ISM does. It is expected to rise to 53.7 but will likely be a non-factor.
On Thursday we get a fresh look at the job market with regard to initial jobless claims for the week ended Feb. 1. Analysts are predicting 333,000 will apply for benefits. That would be 15,000 fewer than the previous week, but probably not low enough to stir up the markets.
That will be followed by the December trade balance, which has shrunk over the past few months. November’s balance was -$34.3 billion. Analysts, however, are calling for an increase to -$36.5 billion.
A preliminary look at 4th quarter productivity and costs is also slated. Productivity rose by an acceptable 3.0%, while unit labor costs should actually rise to 0.0% from the previous -1.4% decline.
Friday there is only one report, but it’s a biggie: the January employment report. In December, non-farm payrolls shocked the markets by adding only 74,000 jobs, while the unemployment rate held at 6.7%. Analysts believe this time around about 172,000 people will have found employment. They also predict unemployment will dip to 6.6% from 6.7%. While these numbers would be an improvement over those for December, they are probably not high enough to boost the economy in any significant way.

About Scoreinc.com

Scoreinc.com, Inc., headquarter in Mayaguez Puerto Rico USA, with offices in Mobile Alabama, is a leading provider of services to the derogatory credit sector of the financial service industry through its Scoreway® Software Solution and credit report accuracy dispute services. The Scoreway® platform provides an end-to-end management solution that helps the companies that we serve manage the credit review and dispute process and to improve controls and profitability. Scoreinc.com services an ever growing list of mortgage company’s, banks, credit unions, Realtors®, builders and credit service organizations through its innovative technology and credit report accuracy service.

Contact Score for more information at 877-876-5921 or by visiting the following pages:
Credit Repair Merchant Service
Fair Debt Collection Practices-learn to earn from FDCPA
Credit Repair Business Training
Credit Repair Software
Credit Repair Solution

For more details please visit Scoreinc.com