Daily Mortgage Rate Commentary

Wow, got here today fired up to work and tightened up some "business bolts", and submitted some refinance files, all the while checking on my always reliable Mortgage Interest Commentary Site for advice, and I'm thinking now here at 10:47am, he took off early for New Years. Maybe I should be home with the family...except they have stomach viruses and I better enjoy my coming hours because with a 3 year old and a 1 year old, it's gonna pass it's way to me for sure and only in time will I be on bed rest too. YUCK!
So here is today's commentary, straight from the horse's (Brad's) mouth.
At the time that I looked at our stock market ticker, the DOW was up 140.5 and the NASDAQ was also up 31.39. Typically that would mean that Bonds are probably not as strong at first blush. On the other hand, I would have expected the stock market to be very shaky today with the December Consumer Confidence Index report coming back so poorly. Read it here on Forbes...it's well written and you don't have to be a stock broker to understand it here, so do it. You'll be glad you took the extra 1.5 mintues. The expectations were much worse than expected. Yesterday, Moving.com said, "Current forecasts are calling for a minor increase confidence from November's reading of 44.9. Analysts are expecting tomorrow's release to show a reading of 45.2," but instead of a small rise, it sank to 29.4. Friends, as I continue to read these reports and stay close to the market conditions in hopes to better advise my clients, I become more and more afraid of what our country and it's economy is running into.
Rates worsened a little bit today and the 30 year fixed conventional is sitting at 5.125% today, while the FHA 30 year fixed is at an even 5%.
If you are looking to close on a home loan in 1 week to 60 or even 90 days, DON'T BE GREEDY, lock your loan and be done with it...is my advice. If you have further to wait, make today's mark a note on your calendar to refer back to and if you get .375% better between now and the next 90 days, figure a way out to lock it.

2009 Economic Forecast

Over a week ago, I was able to make it to the Ted Jones 2009 Economic Forecast. Ted is the Cheif Economist for Stewart Title. There are many great points he made, and in this Blog, I want to just touch one that made the most since to me as I have been thinking similarly throughout the past year. If you would like to read more about Ted's forecasting and thoughts, you can go to Ted's Blog.

The title of the portion I wanted to share is, "Loan Modifications Do Not Work".

In the forecast Ted revealed the statistics, "Data from banks show that more than half of loans modified during the first three months of the year were delinquent by 30 days just six months after the terms of the loans were changed, John C. Dugan, the comptroller of the currency, said at a conference in Washington. After eight months, 58 percent were delinquent again."
Ted went on to explain that our country spent money in an area of the economy that has a proven track record of failure and lack of responsibility. The sub prime break down and alternative lending catagories made loans available to people that had less than perfect credit history. Drug abusers are fare game in this illustration. Yeah, spending money above your means is not quite like sticking a needle in your arm and going to rehab for months to just come out and begin sticking needles in your arm again. On the other hand, these comparisons are congruent with the fact that history proves that humans are creatures of habit, and a person's character develops life's habits. In the end, changing one's own character is a very hefty goal to take on and few are able to take on such a challenge. Changing is hard.

Now, Ted didn't use the above to illustrate his points...they are all mine and I own these thoughts myself. In conclusion, is it right to put the major focus and control of getting our country out of this holewe are in into the hands of the same people who got us here in the first place? They have a track record of not planning and budgeting, and making rash emotional decisions when making purchases that eventually bring their lives and families into bankruptcy and foreclosure. Within the list of failed families and foreclosures, there is a large number that had little to no roll in the doom that they encountered because their jobs were lost and the income they had went away. I know that all families within this foreclosure group weren't led by an undisciplined person and some were a product of the economic environment. Lets not on the other hand, focus our efforts and put the control in the hands of the folks who previously failed. The above statistics show that this is exactly what has begun to happen. The failed mortgages that were modified are failing again.

What should we have done? Sometimes the experts and leaders of our country have to make decisions that don't necessarily feel right to the masses like a father does to his child. I'm not an economist, so I can't very well reflect on this subject in a concluding statement and offer the answer to our economic wows. It just doesn't sound right though to continue "putting the ball in the quarterback's hands that has a history of fumbling the ball".

Greed or Good Hope Drive Strategies In Refinancing Game

Refinancing in today's market for the Dallas, Frisco, and surrounding cities can be a time for a mortgage consultants where the consultant may have to decide in deciding what the near future may bring in market changes whether to advise a prospective borrower to lock and realize what the market has brought, or to float (hold of on the lock for the time being) in hopes for the even better rate. My concern is, are there too many people striving for the ever "impossible deal". Working in a refinance boom brings out the shifty character that is embedded in man...in general. This thought brings me back to a trophy fish that has not, and will not ever be caught by "The Sons of the Sacred Shrimp".

As a kid, my father and some of his fishing buddies organized a small amateur fishing "club" that was only made up of about 5-6 people w/in their tight nit buddy group. Their club names were derived by using a coastal fishing name that started with the same letter as their last name...Lighthouse Lynch was my families club name, and there were names like, Gaftop Godfrey, Redfish Robinson. The motivation that was set in the goals of the club was a single fish by the the name of Freddy Fish. Freddy Fish was the ever elusive largest fish one could catch of any such fish species. You can't catch it, I did. ha ha




It might be the one that got away" that all fishermen have come across. This thought is one that comes to mind in the mortgage world. I have witnessed clients chase the one interest rate that can never be "caught", and I'm going to call it, Iden (pronounced with a long i) interest rate. Iden is an Anglo name meaning wealthy.

It seems like the lower a rate lock I secure for a client, the more I'm pushed to find the next lower. I don't see this as hope as much as I see it as greed. Iden the Interest rate will not be "caught" by the masses. There is only one owner of the record size bass caught in the world, yet every angler fishes in hopes to catch that next record. Obviously, the angler has nothing to lose by fishing for Freddy Fish, but let me advise to you prospective borrowers and buyers, YOU DO HAVE SOMETHING TO LOSE BY CHASING IDEN THE INTEREST RATE. Only a very small few will stumble upon Iden, and the rest will ultimately settle for a lesser rate after you've passed on Iden's not so bad cousin (a better one) hoping to catch Iden.

In the last week, I had 4-5 past clients that became prospective borrowers in the refinance market. They all mentioned to me that "if I could just get 5% flat or ANYTHING UNDER 5%, I would jump on it". Well, "the tide receded" lower than ever expected in recent years and I had the opportunity to lock them all at .25% or better than they thought possible. I was very excited to deliver the message to all of them about exceeding their expectations, and not a one of them responded with excitement as their innate drive for Iden the Interest rate set in.

I read Christian literature, and this morning I came across some reading that was written by a Christian Author, but is probably written in numerous publications in all genres of readings that made good since. The basic thought that I pulled from this is that every leading world power that has ever been throned in the history of mankind has been dethroned, whether it be the unimaginable dynasties in China, or the crushing power of Caesar and the Romans, or the vast reaching power that had such an abrupt ending of Hitler's Germany. You may ask what this has to do with this Blog? America the beautiful has been the so called world power for some time now, and if history defines the future as it has for years, we Americans may need to realize that we aren't necessarily "world beaters" by default. We bleed the same color as the guy living in the Siberian Mountains that still survives from hunting and gathering. Our countries foundation is breakable only when the economy to support it is broken. In a 2009 economic forecast by an industry leading economist I listened to yesterday, he mentioned of Japans struggle through my lifetime to pull from a depression and/or recession, just as they appeared to break free, they fell back into it. America could very well be on a drawn out fall with the rest of the worlds economy that may lead to unforeseen and expected economic times that no man can forecast...I'm not speaking Biblically here.

Economists do not have crystal balls, and the mortgage forecasts are gambles. I use the name economist and optomist synonamously, because it seems like economist never fail to deliver a positive hope accompanied by their report of our failing economy.

In the concluding statement here, I'll let you draw your own conclusion for an answer to the question, "Brad, I know rates are unbelievably low right now. But, we didn't think they would get this low. DO YOU THINK WE SHOULD REALLY LOCK MY LOAN RIGHT NOW?"

Unbelievably Super Low Rates Today, but What About The Rest of the Week

Ultimately, yesterdays economic news was GREAT for today's rates, but there was some major volatile "others" that gave us a mid day worsening. In the end, we saw better rates today still, thanks to Bond gains like I haven't seen in a long time.
This morning the bond market was currently up 45/32, and usually we see it up on average of around 15/32 or so, so you can imagine how well it started today.
Tomorrow morning brings us the release of weekly unemployment figures from the Labor Department.
Moving.com, my favorite mortgage rate commentary site said the following. This data is not usually of much importance to the markets because it tracks only a week's worth of new claims. However, the second report of the day is only moderately important so if this data varies greatly from forecasts it could influence bonds enough to affect mortgage pricing. It is expected to show that 55 the week's last piece of economic news will be posted tomorrow morning with the release of the Conference Board's Leading Economic Indicators (LEI) for the month of November. This 10:00 AM release attempts to measure economic activity over the next three to six months. It is expected to show a sizable decline in activity, meaning that it predicts slower economic activity over the next several months. This probably will not have much of an impact on bond prices or affect mortgage rates unless it exceeds current forecasts of a 0.5% decline from October's reading. If it shows a larger decline, the bond market may move slightly higher, improving mortgage rates slightly.
8,000 new claims for benefits were filed last week.
In the end, this just means that they don't expect rates to sit this low for long, but there may be economic news in the coming weeks that return it to this rate low again soon.
My advice on your lock decision, DON'T BE GREEDY. Lock your loan now.

Builders In House Mortgage Relationships Soon To Be Changed

Builders have been a big problem over the years with dangling incentives for potential buyers to use their affiliated mortgage company. Nothing was more aggervating than to lose a loan after I have been working with a buyer for months, because some builder claims to be giving some sort of incentive to use thier affilated mortgage company. We all know what was going on behind the scenes within the mortgage industry. I have been saying for years that builders need more regulation. Looks like it finally happened.


Ken Harney made note of some changes to come, and said the following.

One of the less-discussed provisions of the Department of Housing and Urban Development's controversial rule on mortgage fees and disclosures is expected to profoundly change lenders' relationships with builders next year.
The rule, which HUD finalized last month after years of revisions, stops, and starts, will overhaul how the Real Estate Settlement Procedures Act is enforced.
Most of the debate about the 86-page rule has focused on the standardized good-faith estimate lenders will have to start providing mortgage applicants in 2010. The industry is expected to spend millions next year preparing for that part of the rule.
Several other provisions will take effect Jan. 16. What many observers called the most significant one would bar builders from offering homebuyers discounts that require them to use an affiliated mortgage, title, or settlement company. The ban will remove a competitive advantage for the joint ventures many builders have with lenders like Wells Fargo & Co., JPMorgan Chase & Co., and Countrywide Financial Corp., now a unit of Bank of America Corp. Some observers said the rule could spell the end of such partnerships.
Also on Jan. 16, lenders will be allowed to charge borrowers the average fee for certain types of settlement services purchased on their behalf, rather than the actual fee the lender paid the service provider. Some consumer advocates said this provision could help lenders skirt other consumer protection laws.
One thing that is clear: a good deal of compliance work lies ahead. "The industry has been digesting this huge, complicated, massive rule, and we're only now coming to the stage of implementation," said Sue Johnson, the president of the Real Estate Services Providers Council Inc.
Mitchel Kider, a managing member at Weiner Brodsky Sidman Kider PC, said builder-affiliated mortgage entities "worked off the synergy that exists" because discounts and incentives are available. "What this rule does is make it difficult from a business perspective to run your operation. It changes the business model of affiliations."
Brian Levy, a senior vice president and general counsel at the $1.5 billion-asset Guaranty Bank in Milwaukee, whose Shelter Mortgage Co. LLC has partnerships with builders, said, "We're going to see less production from that source and lower revenue."
It will be hard to gauge how much of the drop will come from the rule and how much will come from the recession and housing slump, Mr. Levy said. (In October, the most recent month for which data is available, sales of new homes dropped 5.3% from September and 40% from a year earlier, to an annual rate of 433,000, according to the Census Bureau.)
After mid-January, Mr. Levy said, lenders will monitor capture rates - how much of a builder's business their joint ventures get - to measure the rule's effect.
Gina Harris, the president of Builder's Affiliated Mortgage Services, a Tampa correspondent lender, said she expects to gain more business after being shut out from competing for the business of home builders that had ventures with mortgage companies.
"The joint ventures with builders may not be as profitable anymore, and they may decide that they don't want to have them," she said. "And that's probably going to be a decision that the large mortgage companies doing the joint ventures are going to have to make."
Lenders that have mortgage officers working at builders' offices may continue to work with the builders but probably will bring their loan officers in-house as part of their retail staff, Ms. Harris said.
David Stevens, a former executive at Wells and Freddie Mac and now the president and chief operating officer of the Chantilly, Va., real estate brokerage Long & Foster Cos., said the real estate law does not prohibit companies from offering "a bona fide discount," but it must be one that any competitor could match. The problem is when "the only way you get the discount to the home is to use the affiliated business."
At the peak of the housing market, builders typically told customers that they could get $10,000 of upgrades or a bigger lot if they used a mortgage or title company affiliated with the builder, he said. "They basically cross-subsidized it" with revenue from the affiliate.
William Renner, the director of single-family finance at the National Association of Home Builders, said some builder-affiliated mortgage companies may still maintain "fairly high capture rates" next year, because not all builders offered incentives in exchange for using a certain service. But he conceded that the builders with affiliated mortgage companies "would in many cases have to change their marketing agreements."
Debora Blume, a spokeswoman for Wells' home mortgage unit, said many of the builders that have ventures with the lender "do not offer financing incentives, which have actually been a recent phenomenon."
Builders form such ventures because they "want to feel confident their customers are connected with a strong, stable mortgage provider able to make sure deals close on time and meet customers' expectations," Ms. Blume said. "And customers want the convenience of one-stop shopping with mortgage, title, and insurance services under one roof."
The right to charge an average fee at closing for things like credit reports, appraisals, and recordings is meant to make it easier for lenders to adhere to the three-page good-faith estimate they will have to provide beginning in 2010. Under the rule, actual charges at the closing table will not be allowed to exceed 10% of the estimate.
(Lenders currently must provide some sort of good-faith estimate to applicants, but there is no standard form for doing so. Many lenders use a one-page document. Charges at closing can vary widely from the estimate, creating the potential for unpleasant surprises for consumers and making it harder for them to compare loan offers.)
Rebecca Borne, a policy counsel at the Center for Responsible Lending, said settlement fees "are used to calculate the finance charge under the Truth-in-Lending Act and to determine if a loan has 'high-cost' loan status, which often subjects it to more protective standards under federal and many state laws."
Allowing lenders to charge average fees creates the danger that the triggers under those laws will be hit less frequently, Ms. Borne said.
The rule forbids the use of average charges for fees that are based on the loan amount or property value, such as transfer taxes, daily interest, reserves, escrow, and insurance.
Though full Respa reform implementation is more than a year off, some lenders are anticipating the impact of the expanded good-faith estimate, which will include details about whether the interest rate can change, the existence of prepayment penalties, and total closing costs.
The new disclosures "are all going to require extensive systems work, and you have to completely reprogram your settlement systems and up-front disclosure systems, which will affect lenders, third-party service providers, and settlement companies," Mr. Stevens said. "There are definitely costs involved."
Mr. Levy said wholesale lenders are concerned about shouldering the liability of a binding good-faith estimate submitted by mortgage brokers.
Often a borrower will change the details of a loan "as they're headed towards closing" - switching from a fixed rate to an adjustable one, for example, he said.
Whether lenders will be held to their original estimate in such cases is unclear, Mr. Levy said. "Almost every loan on average has a change where it needs to be locked in a second time, and that's normal for a loan to be changed, so would you run the risk that your original GFE is wrong? Will regulators be looking at GFEs and hold ... [lenders] accountable on a compliance issue?"

Refinance Boom Becoming More Real w/ Rates Below 5% Today

Short and sweet! Junk mail has been hitting my inbox for about a week now talking about an expected "refi boom". Well, that looks more and more likely.
Today, the 30 year fixed rate has officially dropped below 5% and made itself available at 4.75% at Service First Mortgage.Speculations are that expectations for the short term, 2-3 months, rates will be moving up above what we have seen in the recent 10 years. If you are looking to refinance your ARM, or even a 6.5% or higher fixed rate, don't get caught on your heels. The experts were right when they said we'd see rates below 5% in the coming months, as today's rates prove their hypothesis correctly.

Get Your Dugome Money TODAY, Before It's Too Late (Fiction Writing Ahead)

In recent loan appointments with new clients, I have received comments on the different Blog posts these clients have read of mine. Many times they mentioned that they enjoyed reading them and liked the sparing humor I sprinkle into them. That is my goal after all. I know reading mortgage "jargon" is not always the most interesting read to everyone else like it is to me. So, that is the twist I throw into it. See what I do for my readers? Goooooooosh! ha ha
In a recent email to my friends outside the mortgage world that I have stayed in touch with through Middle School, High School, and College, we joked around about the recent Shuttle event. (Two of them are brothers that work for BAE Systems and Lockheed Martin...Google those companies and see their purpose and you'll know why we got into an email about such Shuttle talk). I made a mortgage joke that I thought my Blog readers might enjoy. I would like to have just jumped in and wrote this Blog AS IF I was really advertising for a real scenario, but I am consistently surprised at the serious stand so many random Blog readers take on everything they read. So, my preface here is to announce that this is ALL A JOKE!

Home Owners in Frisco and the surrounding Collin County area have received hard evidence through undisclosed sources that life as we know it on Earth will soon change, as reports from the undisclosed source reveals from research and findings recently brought to Earth on the yesterday's return trip from the moon by Shuttle Astronauts. Global warming will soon be termed Global Burning as to it's now realized inevitable affect on our planet, and the demand for underground living has only recently become real in Collin County. Residence have begun cashing out the equity in their homes to afford the cost of digging and moving all personal belongings including pets into their new underground homes. Residence who have invested in rental properties are even finding that they have enough money after cashing out the equity in their investment homes to put sky lights in their Dugomes (term used when you put Homes and Dugouts together)that just pierce the Earth's surface to allow natural light in. (See, I tell all my clients to invest in rentals and nobody listens...no natural light for you in your Dugome)
Before the banks realize what is real in the future and decide to "cashout" on this themselves, please call Brad Lynch for your Dugome moneys today. Disclosure in small writing: you must have at least 40% equity in your home to get exclusive dugome cashout rates.

Picture below of recently found Mars Alien from recent shuttle trip...or maybe it's just a picture of My Little Alien that love pancakes and Carebears.

Home Investor Group/Club/Networking

During the past couple years as loan programs for investor loans began to diminish, numerous investor clients have called a halt to the hustle and bustle of buying new investment homes and cashing out current ones to buy new ones. In the meanwhile, I can just picture them in my head sitting around twiddling their thumbs and because so many of them are high energy people by nature, I figure they have learned to twiddle thumbs at back breaking speeds...if you know exactly the personality that comes with the "get'r done" type I am familiar with. (:

I would like to get involved in a Home Investor Group or Club and understand that there are some spread out through the DFW. If anyone is familiar with an Investor Club/Group/Networking organization, please let me know so I can refer my "thumb twiddlers" there until they figure out what to do next.

Best wishes to all for the Holidays and may God help play a part in it. Lets keep Christ in Christmas.

Best Interest Rates for FHA, Conventional, and VA

WOW! If there was ever anything that I thought could help the buyers market pick up, I would think it would be super low interest rates. The bond market staggers after stocks throw a "straight left" followed by a "right cross", and then bonds unleash a "body blow" that sets up a "right hook, left hand upper cut" that sends stocks to the mat for an 8 count. Take that analogy, wash/rinse/repeat over a months time and you see why interest rates go up for two days and then for the next 5-6 business days they drop, followed by the rinse, lather, and repeat method, and you get interest rates on a 30 year fixed loan as low as 5% today.
If you are waiting for the right time to buy and you truly are ready, this is the time. You can't couple the buying while it's low and while the interest rates are low timing better than now. Mortgage guru's expect that we'll see a small spike in rates on the short term followed by a stalactite drop deep into the 4%range before rates eventually shoot up into the 8's or higher. Remember, this is the mortgage business, and everything is a hypothesis or theoretical in nature when it comes to forecasting.
It is just a great of a buyer's market now than it was a couple years ago. There are less seller's than before, but there are far less buyers too. As a local mortgage consultant with numerous referring Realtor alliances, I hear daily how many listings my Realtor alliances have compared to the number of active buyers. There is no shortage of Realtors with 4-5 listings with sellers that continue to drop their listing price because they can't find buyers. This means that the sellers are aggressively ready to drop their price to get moved on to what ever it is they have planned after they sell their home. Go get that dream home before someone else does, or you will look back in 3-5 years and wish you had.

Interest Rates In Relation with Bond and Stocks This Week

Moving.com reported some good news to start the week off if you are looking to refinance your home or buy a home for the short term. The report went like this, "Monday's bond market has opened in positive despite early stock gains. The stock markets are starting the week off strong with the Dow up 276 points and the Nasdaq up 45 points. The bond market is currently up 7/32, but we will still see an increase in this morning's mortgage rates of approximately .500 of a discount due to weakness late Friday."This means that we can expect this weeks rates to start off on a positive, but for the remainder of the week and month there are other "targets" to watch to see where they will go from here.
The closing commentary at Moving.com followed up to give us the best expectations if you were unsure what might come of interest rates for the remainder of they week. They said, "This week is moderately busy in terms of the number of economic releases scheduled for release. There are four on the agenda but two of them are considered to be very important that can heavily influence the markets and mortgage pricing. In addition, there is a 10-year Treasury Note auction Thursday that may hurt or help boost bond prices, depending on how strong of a demand there is in the sale. Since all of the data is scheduled for release Thursday and Friday, the most movement in rates will likely be the latter part of the week.

There is no relevant economic news scheduled for release today, tomorrow or Wednesday. The first data is October's Goods and Services Trade Balance report early Thursday morning. This report gives the size of the U.S. trade deficit, but it is the week's least important release. It is expected to show a $54.0 billion trade deficit. Unless it varies greatly from forecasts, I don't expect it to affect mortgage pricing.

Overall, expect to see a pretty volatile week in the financial markets and mortgage pricing with the most movement Thursday and Friday. Friday's Retail Sales and PPI reports can cause a great deal of movement in rates. Due to the expected volatility, I am holding the current lock recommendations. However, please maintain constant contact with your mortgage professional if you have not locked an interest rate yet."

The Lynch Theorems...Title Inspired by Matt Stigliano of Exit Realty San Antonio

Geometry is a very under rated mathematical style that is not used enough in the Real Estate industry. It can show "proof" that it's make up and natural understanding can be the utmost variable when deciding between the given. Are you math enthusiasts following me here? snicker snicker

With the given example here you may be able to decide what is the best option when deciding where to move in reference to commute diffence and priorty between 3 locations...Home, Work, Weekend Home, and family.

Option #1

Drive distance from work to home is EQUALLY important as the drive distance from home to your family, and not as important as it is from home to your weekend home. This scenario would be most accurately realized in an isosceles triangle where two of it's sides are equal giving you angles of 45, 45, and 90 degrees.

Option #2

Drive distance from work to home is more important than the drive distance from home to weekend home and home to family. This scenario would be most accurate realized in an right triangle where one of it's sides is shortest, the next is a comfortable middle length between the shortest and longest, and then you have of course the longest...this would be illustrated when the triangle angles measure 30, 60, and 90 degrees.

Option #3

If it is important to you that all driving distances be equal because you are having emotional struggles in determining priority in one drive over the other, you might settle for the equilateral triangle used by most Americans that can't very well execute the ever important, executive decisions. In an equilateral triangle, all sides measure the same and all angles are 60 degrees.
Once you've drawn your triangle, list your three givens (work, weekend home, family) at the three corners, and the deepest middle space inside the triangle will be where you want to move in your next home.

This geometrical use in deciding your perfect home buying location has the power to drive America out of this recession and mortgage downward spiral all on it's own.

Hope you have enjoyed this read as much as I did in writing it. (:

What Are Mortgage Rates Going to do In the Short Term

In a report yesterday, mortgage guru at Mortgagerate.com wrote the following.
The recent bond rally has driven bond prices higher and mortgage rates lower, however, I am concerned that we may see an increase in rates before they fall much further. The rally creates a situation where bond traders may sell holdings to capture profits from it. If there is a concern in the market whether bonds can improve much more, that move may happen sooner than later and can lead to a spike in mortgage rates. Therefore, I strongly recommend that you maintain contact with your mortgage professional if still floating an interest rate because rate usually move higher much quicker than they improve.

If I were considering financing/refinancing a home, I would....
Lock if my closing were taking place within 7 days...
Lock if my closing were taking place between 8 and 20 days...
Lock if my closing were taking place between 21 and 60 days...
Float if my closing were taking place over 60 days from now...
This is only my opinion of what I would do if I was financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.