“Guideline Changes for the Mortgage Industry”

To continue with our theme for 2008 “Guideline Changes for the Mortgage Industry” we have another update!

FHA loan limits will be decreasing to $355,350 for the County of Riverside for all loans that have an approval dated after Jan 1, 2009.

There will no longer be a classification of Jumbo Gov 30, just Gov 30.

Yesterday was the last day to lock loans Agency or FHA Jumbo between $417,000 to $500,000.

Conventional loans will also be lowering their loan limits in Riverside County back to $417,000 down from $500,000. Call me with questions and make it a great weekend!

Mortgage Bonds are soaring higher

Mortgage Bonds are soaring higher on this weekend’s announcement that Fannie Mae and Freddie Mac will come under control of the government.

The government’s move to create a line of $200 billion to back all Fannie Mae and Freddie Mac loans at all costs is great news for homeowners. First, it ensures the continued liquidity of conforming loans nationwide and, second, it ensures that buyers of this type of Bond have a safe investment going forward. There’s no doubt that this will help the US housing market move through the current crunch that we’re in.

So far this morning, the news has lead to a nice rally in pricing. When combined with the break above the 200-Day Moving Average, this may lead to attractive rates. Therefore, I recommend floating for now.

Market Update

Market Update:

Rates are ending stable this week. With mortgage back securities at the highest levels of the year. This is good for mortgage pricing.

GE annouced today that 1st quarter earnings are lower than expected and that future earnings will be lower than previously expected.

I recommend to float interest rates until next week to see what the stock market does in reaction to the GE reports.

***Do you know someone who wants a mortgage at less than 5%? Call me for details.***

***100% financing to $500,000? Ask me how.***

FRANKLIN LOAN CENTER IS NOW FHA APPROVED!!

FRANKLIN LOAN CENTER IS NOW FHA APPROVED!! This means great things to come when you have clients who are in need of NO and LOW down payment assistance.

Wow, I hope you’ve had an exciting week like I have! Yesterday we got the announcement that the conforming loan limit / FHA limit for Riverside County has increase to $500,000 for single family homes. We are still waiting to be able to lock loans at the new limits. You’ll notice on my rate sheet (attached) that I am still using the conforming loan limit of $417,000 until I am able to lock. Also, there are specifics we are verifying regarding these new limits! As I get more information I’ll pass it along.

This week I’ve attached two articles you should read.

DO YOU HAVE CLIENTS WAITING FOR ANOTHER FED RATE CUT? Read the first article, “Fed Cuts Mortgage Rates Go Up?” to knock them off the fence as mortgage rates will most likely go up after a cut! PRINT COPIES TO PASS OUT!

DO YOU HAVE CLIENTS WAITING FOR PRICING TO COME DOWN? Read the second article, “Ignore All the Headlines” to encourage them to take advantage of low interest rates. PRINT COPIES TO PASS OUT!

Attached is my weekly rate sheet! I’m NEVER too busy for ANY of your referrals! Make it a great week.

FHA Mortgage Limits List – FHA Forward

Message: MORTGAGE LIMITS SUCCESSFULLY COMPLETED

Mortgage maximums as of Wednesday March 05, 2008
(1 records were selected, 1 records displayed.)
MSA Name
MSA Code
Division
County Name
County
Code
State
One-Family
Two-Family
Three-Family
Four-Family
Last Revised
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA (MSA)
40140

RIVERSIDE
065
CA
$500,000
$640,100
$773,700
$961,550
03/05/2008

FHA Mortgage Limits List – Fannie/Freddie

Message: MORTGAGE LIMITS SUCCESSFULLY COMPLETED

Mortgage maximums as of Wednesday March 05, 2008
(1 records were selected, 1 records displayed.)
MSA Name
MSA Code
Division
County Name
County
Code
State
One-Family
Two-Family
Three-Family
Four-Family
Last Revised
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA (MSA)
40140

RIVERSIDE
065
CA
$500,000
$640,100
$773,700
$961,550
03/05/2008



***Canadian / Foreign National Financing***

In the market this week it remains volatile with large gains and losses in mortgage bonds. Last week Bush approved the Economic Stimulus Plan and HUD has up to 30 days to determine the new conforming loan limits. I expect to hear next week or the week after. I’ll keep you informed as soon as that information comes out.

***Canadian / Foreign National Financing*** 30% down!! It’s so easy! Call me for details!

Oh by the way, I’m NEVER too busy for your referrals! Make it a great week!

Conforming loan limits are still being reviewed

Attached is my weekly rate sheet.

The market remains volatile again this week and looks like there will be no end in sight. This is a result of Richard “Loose Lips” Fisher speaking on inflation and apparently it’s giving all of us a RUN for our money. Since January 22nd, mortgage bonds are down about 175bps, giving up most ground we got in early January.

Today the 30 year fixed conforming rate is at 5.875%. No, rates aren’t terrible, remind your clients of this!! With favorable housing prices, interest rates, and maximum selection now is certainly the time to buy. Could it be a little better?? Could it be A LOT worse?? Think about it.

Conforming loan limits are still being reviewed as I have no news of where HUD will finally call the loan limit home. I will continue to keep you informed as I get more information.

Want to help your buyers get more bang for their buck? With 10% down or more many banks will allow up to a 6% sellers concession for closing costs. Think rates are good now? How would you like to have you or your client locked in at 5.00% on a 30 year fixed? I was able to do this for one of my clients and I can help you and yours as well.

Oh by the way, I’m NEVER too busy for ANY of your purchase and refinance referrals!!

Make it a great President’s Day Weekend!

Economic Stimulus Plan

Good Afternoon!

Attached is my weekly rate update.

Yesterday, the Senate approved, 81-16, an amended version of the Economic Stimulus Plan, which you can read by clicking the link below. Dallas Fed President Richard “Loose Lips” Fisher was speaking in Mexico City and mentioned inflation rising. Remember, if inflation is an issue, mortgage pricing will respond by increasing rates. As a result, this week interest rates are up about a .125%. The good news… we are still at 40 year interest lows!!

Part of the Economic Stimulus Plan is for to increase conforming loan amounts from $417,000. What’s this mean? For places like Coachella Valley, who have large inventory over the $417,000 price threshold, and for loan amounts between $417,000 and $625,000 now will be considered conforming loans and will decrease by 1.25%!! On a $625,000 loan amount that means a decrease by $505.06 per month on a 30 year fixed and $585.94 per month for a 5 year interest only!! THAT’S A BMW PAYMENT!! Check it out, do the math!! Now’s the time to get buyers off the fence so show them the money! Higher-end homes will be selling and I WANT to be doing your loans!!

Call me to find out how I can help your clients buy or refinance their home. I’m NEVER too busy for ANY of your referrals!! Make it a great weekend!

Click to see the Economic Stimulus Plan http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.05140: