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713 S Lee Street Old - Town Alexandria

Kristie Zimmerman

The Impact of the Job Market on the Housing Market

Being unemployed, under-employed, or afraid of losing a job is never easy. One of the first things many people do in these situations is batten down the hatches and minimize their spending. Certainly, the last thing on their minds is making a major purchase like a house. It’s just not a commitment that most people are willing to make when they lack confidence in their financial stability.

Although such decisions are made based on an individual’s job prospects, they have a ripple effect that impacts the broader economy, including the housing industry. Here are three key points that shed light on specific ways that the labor market influences the housing market.

Home Prices: A more secure employment market can help home prices stabilize, as fewer people are at risk of losing their homes to foreclosure. In addition, improvements in the labor market often open the door for more first-time homebuyers to join the ranks of homeowners. This can eventually help home prices improve.

Home Size: If you are running a business and need to hire someone, during a good healthy labor market you may need to entice your top pick. How will you do that? Perhaps by paying them a competitive salary. And when someone is paid a good salary, one of the things they often think about doing is purchasing a larger home.

Home Location: When the labor market is thriving, an employer may even have to lure in people who live outside the local area to take a job. This is one of the reasons housing markets are so localized. One state, city, or community might have a much better job market than a neighboring one. That’s why it’s very important to understand the labor
situation in your own state and city in order to really get a feel for the health of the housing market there.

The bottom line to remember in 2012 is that all real estate markets are local…and that means that there can be enormous variations across the country. In areas where employment is struggling, the housing market may continue to struggle as well. But employment is improving in many parts of the country, which also means the housing market in those areas will follow suit.

If you have any questions about your situation or the housing market in the area where you live, contact me if I can be of any help.

Forecasting What May Be Ahead for Home Loan Rates

Fairfax, VA – The good news–despite what the Mayan calendar may say–is that the world probably won’t be coming to an end in 2012. But like 2011, this coming year may bring some significant challenges here in the US and around the world. Read on to learn more about what could be ahead for home loan rates.

First, let’s take a minute to recap 2011. While home loan rates finished the year at historically low levels, the housing market did not see a major improvement in the second half of the year as some experts expected. The labor market did make some modest improvements, but it is still persistently weak and this is one area of the economy in particular that we need to see consistent improvement in to help our long-term economic outlook.

Also weighing on consumer confidence and thus the economy in 2011 was the first downgrade of US Debt in history, thanks in part to our very divisive government body. Finally, the worsening and spreading debt crisis in Europe capped a year filled with financial and political uncertainty. The situation in Europe is the perfect place to begin a 2012 outlook.

Eurozone Debt Crisis
What may happen with the US economy and home loan rates in 2012–not to mention with inflation, the housing market, the job market, and even the Presidential election–may be dramatically influenced by how the Eurozone handles their debt crisis. In the simplest of terms, the issue is that like much of the developed economies around the world, Europe has way too much debt. And a lot of this debt sits on the books of the banking sector throughout the Eurozone.

In good economic times, banks could potentially “grow” their way out of their recapitalization problem by doing a lot of business and writing a bunch of loans. But that is not likely to happen with the Eurozone slipping into a recession in the first half of 2012.

Ultimately, Europe needs to provide a large financial backstop for their banks and sovereign debt in order to fix their problems longer-term. And this is something that Germany, who holds the cards in this negotiation, strongly opposes. Germany prefers to have each country shore up their own individual finances, act responsibly, and pay down their debt. Yet, Greece, Italy and other highly indebted countries have struggled to invoke tough austerity measures that would help them do so.

The situation in Europe is definitely a wild card headed into 2012. The bottom line is that as long as the uncertainty continues, the US Dollar and US Bonds should benefit, as investors will see our Bonds (including Mortgage Bonds, upon which home loan rates are based) as a safe haven for their money. This could help keep our home loan rates relatively low in 2012.

Inflation
One factor that we can’t ignore when it comes to home loan rates is inflation. Why? Inflation is the arch enemy of Bonds and home loan rates, because if inflation rises, investors in Bonds demand a higher yield to offset the lost buying power inflation imposes on a fixed payment. And as home loan rates are tied to Mortgage Bonds, this would mean home loan rates move higher. That’s why sometimes even hints or whispers that inflation is on the rise causes Bonds and home loan rates to worsen.

So what’s ahead for inflation in 2012? In the Fed’s Policy Statement from the December 13, 2011 meeting of the Federal Open Market Committee (FOMC), the Fed stated that inflation is moderating…which would be good news for home loan rates. However, it’s important to note that core consumer level inflation actually inched higher in 2011.

Last year, consumer inflation and the expectation of inflation rose as the Fed embarked on a second round of Quantitative Easing (QE2) in the fall of 2010, whereby they bought Mortgage Bonds to help boost the economy and the housing market. If inflation remains at current levels or pulls back a little, the Fed may just do another round of QE3 in the spring. Also paving the way for another round of QE is the change of guard at the Fed. Several hawkish (i.e., tough on inflation) voting members are being replaced by more dovish (i.e., softer on inflation) voting members in 2012.

The bottom line is that if the Fed does another round of QE, this could cause inflation to rise. And if inflation does rise in 2012, it could have a negative impact on home loan rates. However, if the uncertainty out of Europe continues to lead to a safe haven trade in our Bond markets–and remember, this helps Mortgage Bonds and therefore home loan rates–this could essentially balance out the negative impact inflation usually has on Bonds and home loan rates. Only time will tell whether inflation or the events in Europe have a bigger impact on the markets and home loan rates.

The Big Picture
In many ways, 2012 may feel a lot like 2011. Inflation and events in Europe will continue to play a big part in the direction home loan rates move in 2012. What’s more, history has shown that Bonds move higher (which means home loan rates move lower) in anticipation of QE, but then selloff once the official announcement is made…think “buy on the rumor and sell on the news.”

If that does happen, the first half of 2012 could be an especially great time to purchase or refinance a home. But even if the Fed does not move forward with QE3, we begin 2012 with home loan rates near historic lows, which already makes this year a great time to purchase or refinance a home. If you have any questions about how you can benefit from this situation, give me a call at
703-830-9808 or email me at jeff@lendingsolutions.net

Bankruptcy – FHA will allow origination of an FHA insured loan after your bankruptcy has been discharged for two years with a Chapter 7 Bankruptcy.

A Chapter 13 bankruptcy must discharged for at least one year before you can apply for an FHA insured loan.

Foreclosure - You need to wait three years to apply for an FHA insured loan after the sale/deed transfer date.

Short Sale / Notice of Default – You need to wait three years to apply for an FHA insured loan after the sale date of your foreclosure. As of right now, FHA treats a short sale and a foreclosure the same.

New Credit must be re-established your score should be in the 640 range, the higher the score the better.

2011 VA Waiting Guidelines

Bankruptcy - You need to wait two years from your bankruptcy discharge to apply for a VA guaranteed loan. 
Foreclosure - You need to wait two years from your foreclosure before you may apply for a VA guaranteed loan. 

Short Sale - If the short sale loan was a conventional loan you may apply for a VA guaranteed loan two years. If the short sale loan was a VA loan then restrictions apply. If the VA lost money on the short sale, this loss will most likely have to be cured before a new VA loan will be guaranteed.

New Credit must be re-established your score should be in the 620 range, the higher the score the better.2011 Conventional Waiting Guidelines (Fannie Mae)

Bankruptcy – For a Conventional Fannie Mae / Freddie Mac loan, you currently must wait four years from your bankruptcy discharge date.

Foreclosure - Conventional loans, Fannie Mae / Freddie Mac loans require seven years after the sale date of your foreclosure.  Additional qualifying requirements may apply,

Short Sale / Notice of Default – Currently treated the same as a foreclosure with a waiting time of seven years before you can buy again using a Fannie Mae conventional home loan.

New Credit must be re-established your score should be in the 660 range, the higher the score the better. Fannie Mae and Freddie Mac currently like scores over 740 for all of their loan products.Fannie Mae has reduced waiting periods in cases of extenuating circumstances – The death of a primary wage earner seems to be the only one I have been able to identify up to this point.

Fairfax, VA – When the property in question is an FHA flip. Seller has been on title for less than 90 days.

If the sales price is 20% or more above seller’s acquisition cost and the increase in value is due to improvements/renovation to the property: 

1. The appraiser is required to verify the repairs or work to the property in order to substantiate the increase in value.
 
2. The seller must supply a list of improvements made to the property and the appraiser adds the list to the appraisal along with comments to justify the increase.

3. Before and after pictures are welcome.

4. Although not required on FHA flips, most lenders will automatically order a second appraisal to help justify the value.

If the appraiser cannot warrant that legitimate work was done to the property to substantiate the increase in value:

1. Then a second appraisal will be required.
  
2. This part could cause issues: The lower of the two appraisals will be used for the appraised value.

3.  A second appraisal will be required.

If the increase in value is not due to any significant improvements:

1. The appraiser will be required to provide explanations for the increase in
property value.

2. The appraiser must provide sales comparables to support that value increase since the prior title transfer.

3. OR, if the appraiser cannot justify the increase in value, a second appraisal will be required.

4. The lower of the two appraisal values will be used for the appraised value.

Forecasts for the Economy and Employment – Their Impact on the Housing Market

Fairfax, VA – The economy and housing markets have seen some rough times the last couple of years. But the good news is last year we saw some stabilization in 2010 – and 2011 should continue on the road to recovery.

To help you prepare for the coming year, YOU Magazine has put together a two-part overview of what to look for in 2011. In part one, we look at the big picture and discuss the outlook for the overall economy, the stock market, and the all-important employment market.

Then next month, we’ll dig into what to look for in terms of the housing market, including home prices, the foreclosure crisis, new legislation that impacts the housing industry, and the direction of home loan rates in 2011.

Economic Outlook

Overall, the economy looks to have stabilized from the crisis situation a couple of years ago. Although there are still some global economic concerns in Europe, the U.S. economy appears positioned for continued growth and strengthening.

We see the United States’ Gross Domestic Product (GDP) to finish the year up about 2.5% to 3% from where it ended 2010. This growth won’t happen overnight, however, but instead will start out slow in the first half of the year and pickup steam in the second half.

Much of that growth should come from demand in other countries. Currently, the U.S. only derives about 12% of its GDP from exports. While that equates to a lot of money, it means that the U.S. relies less on exports than many other countries – and it means that there’s room to grow. Already we’ve seen U.S. exports get back on track and they’re primed for growth to countries in places like Asia and Latin America.

This is good news for the U.S. economy as a whole, as well as individuals because it sets the stage for growth while still allowing U.S. consumers to catch their breath. After all, the tough economic climate over the last couple of years has hit U.S. consumers hard and has forced many Americans to reprioritize their family budgets to focus more on their savings.

Stocks Make Their Mark

The stock market had a good year and saw some strong earnings in 2010, continuing its climb out of the financial crisis that began a couple of years ago. With the strong finish to last year, the stage is set for another good year – and we could see the S&P 500 grow another 7% to 10% over the next twelve months.

That said, the corporate earnings may look like they’ve slowed. That’s because of the way that experts compare year-over-year earnings. For example, corporate earnings showed strong improvement coming out of the recession because they were compared to the extreme lows of the year before. However after a strong 2010, the increase in earnings won’t be nearly as dramatic. So while the year-over-year increase may appear to flatten out, the important thing to focus on is that corporate earnings should show solid, steady improvement.

The segments of the market that can look for a strong showing in 2011 include energy stocks, global companies that specialize in high-tech equipment, and even steel producers which should benefit from global sales. Those segments should benefit from strong business spending around the world as the economy improves and companies start to reinvest and expand.

Labor Looks Ahead

The big economic picture is important, but millions of Americans are really focused on the labor market. Will they find a job? Will they keep their job? Those are some of the most important questions families face. And the good news is that for many families the outlook should be better in 2011.

Here’s why. The good news for the overall economy and for corporate earnings in 2010 and heading into 2011 should help the labor market improve. Let’s look at two of the factors that should influence employment in the coming months.

First, many companies have seen higher earnings over the last year but those earnings haven’t translated into more hiring. Instead, companies have been cautiously waiting for signs that the economy was stable – after all, we heard a lot of talk in the past about the possibility of a double-dip recession. In other words, full-time employment was held back by insecurity and fears of the future. Now that most economic reports appear to be on a steady climb out of the recession and confidence is increasing, many companies will be more willing to hire.

Second, during the last couple of years, companies were trying to keep their operations lean and efficient. That means that manufacturing companies worked hard to get the highest level of production possible out of their current work forces or by only hiring temporary or part-time employees. While that may have been a good move when the economy was questionable, it means that production has hit a ceiling.

But now that many retail companies are beginning to restock their shelves, manufacturing companies are seeing higher demand for their products. In order to satisfy that demand and increase manufacturing production, companies will need more people on the factory floor to satisfy demand, which will lead to an uptick in full-time employment.

Based on those factors, watch for the labor market to continue looking better in the coming months, with more noticeable improvements coming in the latter part of the year.

Unfortunately, we’re not completely out of the woods yet in terms of the overall unemployment rate. While hiring will pick up, we need to see a net growth of 200,000 jobs each month just to absorb all of the new people entering the job market – and that’s just to hold steady, so we’ll need to see even better numbers for the unemployment rate to actually drop. Based on that, we won’t see a noticeable drop in the unemployment rate until some time in 2012…and even then it will take a handful of years to bring us back to the lower unemployment rates seen before the recession.

The point is the job market is a work in progress and will take some time, but we will see hiring improve in the coming months – and that should help ease the burden for millions of Americans.

What Does All That Mean to Housing and Home Loan Rates?

Although people tend to talk about the economy, the stock market, and employment separately in the news, the reality is they’re all related. For example, an improving economy leads to better corporate earnings and increased manufacturing demand, which in turn leads to increased hiring.

In addition, all of the aspects discussed above influence the housing market and home loan rates. One of the biggest influences is employment, so improvements in employment will be good for the housing industry. After all, people who are unemployed, under-employed, or are afraid of losing their jobs are less likely to purchase a new home.

In terms of home prices, a more secure employment market can help home prices stabilize, as fewer people are at risk of losing their homes to foreclosure. In addition, as we’ll discuss next month, the improvements in the labor market should open the door for more first-time homebuyers to join the ranks of homeowners.

That said, it’s important to remember that all real estate markets are local…and that means that there can be enormous variations across the country. In areas where employment is struggling, the housing market will continue to struggle as well. However, in many parts of the country where the bottom has been tested and employment is improving, we’ll see the housing market on the mend in 2011.

But home prices and homebuyers aren’t the only aspects of the housing market impacted by the direction of the economy.

As stated above, 2011 should look better than 2010 in many respects. But, good economic news is a double-edged sword, as it can lead to higher rates. That’s right, good economic news can be bad news for home loans rates.

There’s actually a pretty simple explanation for this seemingly strange phenomenon. But, you first need to understand two important financial concepts:

1. Big money managers – who are always in search of higher returns – avoid holding onto cash. So they invest in both Stocks and Bonds.
2. Home loan rates are actually based on the performance of Mortgage Backed Securities (MBS), which are a type of Bond.

When we put those two facts together, we begin to understand the relationship between good economic news and higher home loan rates.

Here’s why: Whenever the economy is on fire and there are good economic reports along with positive economic news, investors tend to put more money into Stocks. That’s because Stocks are more risky, but they generally offer higher returns. To do this, however, investors must remove some of their money from less-risky Bonds. This decreased demand in Bonds causes Bond prices to worsen, which causes home loan rates to rise.

The good news is that home loan rates are still extremely attractive and are still near historic lows…for now. So, if you or someone you know has been thinking about purchasing or refinancing a home, now is the time to get started as we head into 2011.

Last Friday in thin trading the bond and mortgage markets had a nice end of the year with good price gains (lower interest rates), this morning with the new year under way the bond and mortgage markets started with selling taking most all of Friday’s rally back (higher interest rates).  Now that the holidays are behind us the markets are working back to normal with most all investors and traders back on the job. The last two weeks of December were marked with high volatility in the rate markets, after all was done the bond market was about unchanged in the period.

The equity (stock) markets started strong this morning continuing the increasing view that 2011 will be economically better than 2010. At 8:45 the Dow Jones Industrial Average DJIA index traded +84 with the other two key indexes also strong. Stocks also rose on Europe’s benchmark gauge to its biggest advance in almost two weeks. European manufacturing expanded more than initially estimated in December. China’s purchasing managers’ index fell for the first time in five months, suggesting efforts to, cool the economy are working.  Markets in Australia, Japan, New Zealand, Thailand, China and Vietnam were closed today.

Two economic reports at 10:00 this morning; November construction spending expected up 0.2% increased 0.4%. The December  ISM manufacturing index hit at 57.0 from 56.6, expected at 57.3. The sub components were mixed; new orders increased to 60.9 from 56.6, prices paid increased to 72.5 from 69.5 and employment declined to 55.7 from 57.5. The initial reaction wasn’t much but the bond and mortgage markets got a minor boost while the DJIA dipped a couple of points; both markets were little impacted. On the indexes any reading over 50 is considered expansion, under 50 contraction; the higher the index the stronger.

This week’s economic calendar:

         Tuesday;

                 10:00 am Nov factory orders (-0.2%)
                 2:00 pm FOMC minutes from Dec 15th meeting
                 3:00 pm Dec auto and truck sales (3.7 mil autos, 5.3 mil trucks)

       Wednesday;

                7:00 am weekly MBA mortgage applications
                 8:15 am ADP private jobs report for Dec (+100K)
                 10:00 am Dec ISM services sector index (55.7 from 55.0 in Nov)

       Thursday;

              8:30 am weekly jobless claims (+17K to 405K; con’t claims 4.07 mil from 4.128 mil)

       Friday;

              8:30 am December employment report (non-farm jobs +132K, private non-farm jobs +142K,      unemployment rate 9.8% unchanged
             3:00 pm November consumer credit (-$2.5B)

The overwhelming consensus as the year begins is that the equity markets will have strong gains, commodity prices will continue to increase with some talk that crude oil will climb over $100.00, and money will continue to exit fixed income treasuries in favor of stocks. As noted previously we are more skeptical about the economic outlook than the consensus. The economy will do OK but we expect consumers won’t meet the lofty expectations on spending with the housing sector remaining soft and unemployment staying high through most of the year. Every year at the start the outlook is optimistic; let’s wait and see what consumers do in January and February. Consumers will more likely save than spend, the demographic changes with 10K baby boomers a day turning 65, a trend that will continue for the next 10+ years and spending by the huge population of boomers won’t meet the expectations currently out there.

The Republicans are now in control of the House and have more strength in the Senateop. How the two political parties get along and confront health care, the federal debt limit, spending cuts in the next couple of months will set the tone for the next couple of years.

Bank Of America resolved disputes with Freddie Mac and Fannie Mae by agreeing to pay more than $2.6B to settle claims that it sold loans based on faulty information. The fourth-quarter results would include a $2B impairment charge and a $3B provision. The bank faced $12.9B in unresolved put back demands on soured mortgages, with about half related to government-sponsored entities. The stock is rallying this morning in the settlement

The 10 yr note overnight it 3.39% +7 basis points from Friday’s close, a little improvement by 9:00, at 3.36%. Mortgage prices at 9:00 down 6/32 (.18 basis points) from Friday’s close. Looks more and more likely that the 10 yr may eventually drive to 3.50%. The exit from fixed income investments at those low yields is not over although we believe the near term remains excessively overdone. Still looking for a bounce but it is clear now that to see that it is going to take some kind of disappointment in the economic data being reported this week, meanwhile the trend is firmly higher for rates and it is not appropriate to bet on when a bounce will occur.  

The biggest news of the week will be tomorrow’s Fed Meeting, which will include the Interest Rate Decision and Policy Statement. The statement and sentiment that is revealed tomorrow most likely will determine the movement of interest rates in the next quarter. The research that I have read, indicates a very small chance of any rate change by the Federal Reserve.   

The Federal Reserve is likely to issue comments for the continuation for Quantitative Easing Part 2, as there are signs the economy is still fragile. 

The unknown is the Federal Reserve’s view on the fast rise in interest rates over the past month. The Federal Reserve has to be concerned if rates rise too much too quickly, as this could spell another fall in the housing market. It seems it is time for the Federal Reserve to provide the Bond traders and investors, through some language in the Policy Statement; with warm and fuzzy feelings about the increase in US debt.

No economic releases today but the rest of the week has a lot to consider. Today the Federal Open Market Committee FOMC meeting begins with the statement coming tomorrow afternoon at 2:15. No supply this week from Treasury; today the Federal Reserve is scheduled to buy Treasuries dated 06/30/16 – 11/30/17. China did not increase interest rates as many were fearful they would based on inflation fears . China is making efforts to slow their inflation rate which is now at 6.0%, that and the Fed’s desire to get the US inflation higher is dealing a blow to US rates. Inflation fears and the increasingly better economic outlook with tax cuts, payroll tax cuts, tuition credits and the extension of emergency unemployment benefits are combining to paint a smiley face on the economic future. A huge leap of faith, nevertheless it is what investors are increasingly expecting. The Senate is sure to pass the bill put together by Obama and Republicans, the House however is fighting it with many Democrats resisting the plan because it keeps the tax cuts for “the wealthy”. Over the weekend the House was decorating the Tree, and not the National Christmas Tree, adding pork to the bill to bribe some of the dissenters. Subsidies for ethanol, wind farms and a few other ornaments; it isn’t possible for Congress to pass a bill on its merits without hanging pork on it.

Fairfax-VA.  The ML 2010-24 is guidance for Combined Loan To Value (CLTV) refinance transactions – only. The new policy and guidelines are more restrictive than the old FHA policies guidelines.  In the past FHA policies did not have a restriction on minimum equity limits (LTV and CLTV in loan talk), but Wall Street and the big banks added their own restrictions that allowed an FHA loan to be underwater by only 25% of the appraised value.  Essentially in the past,  FHA didn’t care how far underwater a borrower was, the loan request was able to be approved if the loan circumstances met FHA guidelines. But the companies that funded FHA loans do care how much equity a homeowner has. In the end,  investors (Wall Street and the big banks) did and do care how far a homeowner is underwater so they set the max at 125% of the home’s value as the limit.  Just as in the past, he who has the gold sets the rules. Wall Street and the big banks have the money and clout, so they set the rules to try and limit their exposure to potentially bad loans which could result in large losses.

An explanation of three different FHA programs is below:

Homeowners are now restricted to a 97.75% LTV (2.25% remaining equity) on rate and term refinance, 85% LTV (15% remaining equity) on cash out refinance and 125% CLTV (underwater by 25%, so ZERO equity) for an FHA streamline refinance.  The refinance for borrowers in negative equity positions (underwater) is only available if the current servicer is willing to give up 10% of the current loan balance and that loan must not be a FHA insured plus many other restrictions.  The LTV limit is 97.75% and the CLTV limit is 115%, you should not get excited about this product since it will be more difficult than getting a short sale approved.  This is based on the ML2010-24: Combined Loan-to-Value Requirements for Refinance Transactions (8/6/10).

Fairfax, VA – The House of Representatives approved the Federal Housing Administration Reform Act.   The purpose of FHAR is to bring stability to the FHA lending program. Currently, FHA loans make up about 30 percent of the loans originated in the US. This is a far cry from early to mid 2000’s when real estate agents frowned on any government loan of any type.
 
The FHAR Act is a two-step process which was designed to shore up the crumbling foundation of FHA’s capital reserve account.  The first step to increasing the reserve account occurred in April of 2010 as the up-front MIP (mortgage insurance premium) premiums collected from the borrower was increased from 1.75 percent to 2.25 percent of the loan amount.  But the bigger plan was for FHA to increase the monthly mortgage insurance premium which is currently .55 percent for purchase loans with less than 5 percent down payment or refinance loans with at least 5 percent equity to .50% for homes or loans with at least 5 percent or more equity.  Under the law passed today, the agency will be allowed to increase its annual premium to 1.55 percent of the unpaid balance of the loan. The change or increase is expected to be a two part process. The first change is expected to increase annual MIP to from .55 percent to between .85 percent and .90 percent, then increase the annual MIP to the full 1.55 percent later in the year.  The thought from FHA and Capital Hill is that the increase in the annual MIP will allow for FHA’s capital reserves to increase, but with less impact to the consumer since the annual MIP is paid over the life of the loan instead of a lump sum addition to the loan amount at the time of closing. But this is incorrect.

The FHA reserves were getting hammered by homes going into foreclosure or just plain scammers at work with straw buyers or however mortgage fraud is perpetrated.  This is fact. What I am not sure is taken into account is the effect of the higher monthly mortgage insurance will have on the home buying public. How can tripling the monthly mortgage insurance have no impact to the consumer or to the nation’s housing market?  I read a Freddie Mac article in the early 1990’s that stated for every .25 percent increase in interest rates 250,000 home buyers are priced out of the market. To show this is not true see the example below. Using a $300,000 loan amount as the example, the numbers don’t look good for home buyers after September 7^th.   This date can change, call me if you have any questions.