Money Matters – Yelling for Yellen!

Good Morning. After being grilled for two hours yesterday from the Senate Banking Committee, Janet Yellen has passed her first hurdle in becoming the next and first female to lead the Federal Reserve.

In her prepared remarks, she stated that “the US economy is performing far short of its potential.” She continued with a similar tone in the questioning session by stating a very similar line to Chairman Bernanke…No asset bubbles, weak demand, continued unemployment and a fragile recovery, all of which was music to the markets ears!

Given the recent testimony, it’s apparent that market fears of eminent tapering are overstated as it’s fairly certain that nothing will be done until after she’s sworn in regardless of all the political noise and non-sense. I am still of the opinion that Fed easing will not start in a substantial manner for some time to come.

Lastly, the recent unemployment report while much better is still far short of a full recovery. I expect the numbers will be adjusted downwards in the coming months as they are greatly skewed by the Government shut down. Digging in to the numbers, its also clear that the types of jobs being created are not what the economy needs for long term sustained growth.

Rates are currently very attractive and it’s a great time to commence the loan process as lenders will have full allocations for the first of the year and eager to close your loan which gives us tremendous leverage in negotiating the best terms.

Deal of the Month:
A client was referred to us and our conversation started with…”I have checked with multiple sources and no one is willing to give me a loan of 75.00% of the purchase price which is what I really need to buy a $5,750,000 home.” Not only were we able to deliver but the terms and pricing were more competitive than most lenders were quoting at lower leverage ratios. “Thank you for helping us buy our dream home” Is how it ended!

P. Jacob Yadegar

Empyrean Funding Inc.
Your Mortgage Loan Specialist
Commercial and Residential
310-571-3681 fax

Your Referrals are the lifeblood of our business!