Here you will find the information pertaining the First Time Home Buys Savings Account.

This link will take you to the actual form.

http://mt.gov/revenue/formsandresources/93-99forms/99-FTB.pdf

I have include theactualdocument in case you have questions which can be answer at the bottum paragragh.  In these hard times now is the time to take advantageofmoney saving opertunities for your clients.

FIRST-TIME HOME BUYER SAVINGS ACCOUNT

Name______________________________Social Security Number___________________

Account Information

Financial Institution where account is located_____________________________________

Address of Financial Institution________________________________________________

Complete the table below for the current year. Additional information regarding first-time

home buyer savings account is provided on the back of this form. If you made withdrawals

from your first-time home buyer savings account that were not used to pay qualifying expenses,

you must complete Form FTB-P. To order this form call 1-406-444-6900.

A B C D

Date Deposits Interest Withdrawals Withdrawals Balance

Earned Used for Used for Columns A+B

Eligible Noneligible Less Columns

Expenses Expenses C+D

Enter balance of accounts as 12-31-98

Your allowable reduction is the total of column A or $3,000 whichever is less, plus the total of column B.

Attach this form to your Montana income tax return.

homebuyers, please access our website at http://www.montana.edu/wwwpb/pubs/mt9918.html

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Form FTB

Rev. 8/99

MONTANA

158

MONTANA FIRST-TIME HOME BUYER SAVINGS ACCOUNT

Beginning with tax year 1998, qualifying taxpayers may exclude contributions made to accounts established

specifically to pay eligible costs associated with the purchase of a taxpayer's first home. A

qualifying taxpayer (first-time home buyer) is "an individual who has never owned or purchased under

contract for deed, either individually or jointly, a single-family residence in Montana or out-of-state".

Eligible costs include "the down payment and allowable closing costs for the purchase of a single-family

residence in Montana by a first-time home buyer".

The maximum exclusion per year per individual is $3,000. Contributions in excess of $3,000 may be

claimed as a reduction from Montana adjusted gross income in subsequent tax years, however, the

maximum contribution deduction allowed in any one tax year is $3,000.

Married couples may each claim a first-time home buyer savings account reduction of up to $3,000 if they

maintain separate accounts. Jointly held accounts do not qualify as first-time home buyer accounts

unless husband and wife file jointly (both using the same column of the tax return) for Montana tax

purposes.

In addition to deducting up to $3,000 in contributions to a first-time home buyer savings account, interest

earned on an account is excludable from Montana adjusted gross income.

No first-time home buyer reductions are allowed after a home is purchased. Any funds remaining in an

account after home is purchased must be included in Montana adjusted gross income in the year the home

is purchased. Funds remaining in an account after the purchase of a home are not includable in Montana

adjusted gross income if the funds were not claimed as a first-time home buyer reduction.

First-time home buyer savings accounts are self-administered and can be established with any financial

or investment institution. The account must be a new account established in the first year the reduction

is claimed. The account cannot be used for any purpose other than for paying qualifying expenses related

to the purchase of a first home do qualify for the first-time home buyer provision.

If, after 10 years of making contributions to an account, a taxpayer has not purchased a home, funds in

a first-time home buyer savings account will become subject to Montana income tax as ordinary income.

Withdrawals from first-time home buyer savings accounts used for purposes other than qualifying firsttime

home purchase expenses are subject to state taxation as ordinary income and are also subject to a

10% withdrawal penalty. Money withdrawn from an account on the last business day of the tax year is

not subject to the 10% penalty, however it is subject to state taxation.

Taxpayers claiming this exclusion must attach to their return each year:

n Copies of all account statements (monthly, quarterly, annual) from the financial or investment

institution where the account is maintained.

n A completed Form FTB.

For the year in which a home is purchased, taxpayers claiming the first-time home buyer savings account

reductions must also attach to their tax return copies of the buy/sell agreement and the closing statement

for the home purchased.

Additionally, upon the Department of Revenue's request, account holders must be able to provide verification

that all withdrawals from an account were used to pay qualifying expenses associated with the

purchase of a first home.

Home Valuation Code of Conduct

A uniform code for appraiser that requires them to go through a clearinghouse orders and to get paid.  The code would require an independent appraiser to go and join an AMC  to get orders and work.  This will eliminate independent appraisers overnight.

I am interested in any ones thoughts on this topic and how they think it will effect there business.

Rates are great but not much purchase action mostly refi's. After the refi boom is done what is next...

Just my thoughts here...

The gov't can't keep buying bonds and paper, they run FNMA and FMAC so not only are they buying the paper but they are guaranteeing it.

It seems like they are burning the candle at both ends and the one who will get burnt is you and I.

At some point they will have to turn over control back to the private market and when they do this do you really think the investors will be ok making 4.5%...?

Answer: No!

At that point the market will start risk based pricing and the risk is huge so at this point rates will go up when the Treasury runs out of money...

Anyone feel free to comment or correct.

I was watching a special on WW1last night and it kind of triggered me to think about this whole financial mess were in...I am not an economist but I have definitely been paying attention.  What caught my eye specifically in the special about WW1was the type of economy Germany had after the first war when they were forced to pay6 back reparations to the Allied powers for the cost of the war.  Well the result was Germany did not have the funds so in order to comply they just printed money for the reparations and handed it over the the Allied powers...While the result was catastrophic the economy tanked and the famous pictures we all saw after the Soviet Union was dismantled were actually preceded by the German ones although no one was paying much attention because WW2 was right around the corner.  The picture I speak of in both cases is the one where citizens have to cart a whole wheel barrel of cash just to buy a loaf of bread.  You may ask by now what is my point?  The point is that all this bailout money were are injecting into the economy has no backing just like Germanies' currency after WW1...So will our fate be the same, will the dollar plummet and loss value?  I hope not but given what is going on in Washington how can it not...  The deflation and liquidity crisis is mostly looked at as a bad problem.  But a simple illistration points out that if you can survive the crisis your money will be worth more.  For a simplified example consider this; the US economy runs on $10 of cash, the crisis hits and now we only have 5$ in the system.  The people with the remaining 5$ of money now will have less but it will be worth more.  $5 of cash in the system is gone so the remaining is still servicing the same people but with only less cash thus making the remaining $5 in the long and short worth more.  Less money in the system equals more value for the money still in the system.  So after all the deflation and liquidity issues the money you can hang on to will ultimately be worth more...

It may not be scientific but it seemed to make sense to me...

As usual I welcome all comments and criticism...

This has been a deep thought by:

Mack Handy

This chart shows why rates are going to go up and possible where they are headed.  If rates are cyclical then this chart should provide some clarity as to where rates are head in the short term.  The one thing this chart doesn't reflect is that I believe that 30yr rates will start to act on there own away from the prime rate.  In the future the 30 yr rate will not pair itself with the prime rate.  This is due to factors effecting 30 yr rates that do not have a sever and direct effect on the prime rate.  There will still be some correlation but the exact movement of both will not follow such a definite path.  I put this blog out not to doom and gloom but to educate people to not be surprised by higher rates in the short term future of the housing market.  I know as much as anybody that the effect of rising rates will be a detriment to our industry but once the public is used to the idea of higher rates it will be business as usual.  A silver lining may just be that the higher rates will kick some of these people on the fence in to gear to purchase a home before the rate goes to high... 

FHA @ 7% today

30 YR Fixed just priced one out @ 6.75 and the credit was excellent

A little forwarning trying and warm your clients up to the idea that rates are going to get worse and will continue to for some unkown amount of time.  This idea of low rates spurring growth is way to late in the game to make a difference so the long postiton on rates is that once we realize growth will no longer be fueled by low rates, they will begin to rise as the market starts to stabilize the right way...Rewarding risk with return on investment is the only model for mortgages that will be left after the collapse of the 2ndary market.  I just want people to warm up to the idea of higher rates now so it is not a shock later.  For anyone who thinks that rates will not go up to 14% read some history.  After a crisis half as bad as this one in the late seventies 30 years mortgage rates shot up in two years 5%, this will not likely happen in todays market; it will definatly happen.  Just remeber this:  You heard is here first...

America stay strong there are rough waters ahead...

Unsustainable Debt

As noted earlier, the Government must borrow from the public to finance any gaps between expenditures and

revenues. Increased borrowing leads to higher debt service (net interest) which in turn can make it more difficult to

balance expenditures and revenues in the future. Chart J shows that by 2030, public debt is projected to rise to 68

percent of GDP, surpassing the non-wartime peak of 49 percent in 1993. By 2040, public debt is projected to be 128

percent of GDP, well above the

World War II peak of 109 percent,

and by 2080, debt is projected to

approach 600 percent of GDP.

At some point before the debt

reaches such unprecedented levels,

the world's financial markets

would likely cease lending to the

United States. Although the

precise point at which this would

occur is unknown, these projected

debt levels cannot be sustained

indefinitely. Many economists

believe that persistent debt / GDP

levels over 100% are unhealthy.

The U.S. is projected to surpass

that mark within the next 30 years,

with the debt/GDP ratio at that

point on a continually and dramatically rising trajectory (more than 10 percentage points per decade through 2080).

Avoiding the catastrophic consequences of this fiscal path will require action to bring program expenditures in line

with available resources. How soon those actions are taken will greatly influence their ultimate impact on the

Nation.

I wish the chart showed up but pretty sovering facts here...hope we as a country are listen to what they are saying...

10/02/2008 - "This morning, FHA Commissioner Brian Montgomery announced that the new HECM nationwide loan limit (maximum claim amount) will be $417,000. The target effective date is November 1"
This is a target date right now, not a set deadline. We still expect FHA to increase the "floor" on the origination fee from $2,000 to $2,500. A mortgagee letter will be published shortly that provides additional details.

There was some debate within HUD to consider area limits at 115% of area median home value, with a floor of $417,000 and a cap of $625,500. Ultimately, the interpretation was determined that the new legislation will be a $417,000 loan limit. As many of you recall, this was the original limit embraced by the industry.
As NRMLA requested a more liberal interpretation to $625,500 in high cost areas, the complexity of the bill's language created much debate and ultimately this final decision. Nonetheless, we are pleased with this major milestone for the industry.

A majority of U.S. counties have lending limits at the existing floor (currently $200,162), which has drastically reduced the amount of equity that seniors living in higher-valued homes could access. We believe these new limits will have a significant impact on the quality of life and provide more relief to those seniors who need the help especially in today's turbulent economic environment.
These are all positive developments for the reverse mortgage industry and the clients we serve. And as HUD moves toward the implementation of many other important aspects of the housing bill including the new purchase product and co-op lending, we look forward to continuing to report on additional developments in these areas in the near future."
Announcement comes from NRMLA (National reverse Mortgage Lenders Association) 10/02/2008
Press Release from NRMLA

Look for these mergers/consolidations to occur soon...
1. Hale Business Systems, Mary Kay Cosmetics, Fuller Brush, and W. R. Grace Co. will merge and become: Hale, Mary, Fuller, Grace.
2. PolyGram Records, Warner Bros., and Zesta Crackers join forces and become: Poly, Warner Cracker.
3. 3M will merge with Goodyear and become: MMMGood
4. Zippo Manufacturing, Audi Motors, Dofasco, and Dakota Mining will merge and become: ZipAudiDoDa .
5. FedEx is expected to join its competitor, UPS, and become: FedUP.
6. Fairchild Electronics and Honeywell Computers will become: Fairwell Honeychild.
7. Grey Poupon and Docker Pants are expected to become: PouponPants.
8. Knotts Berry Farm and the National Organization of Women will become: Knott NOW!
And finally...
9. Victoria 's Secret and Smith & Wesson will merge under the new name: Titty Titty Bang Bang


I couldn't resist...

Good morning.

I have some rather sad news to share today. There is no more accurate was to say it.

Later this afternoon you should be receiving some formal communication from CitiMortgage of their intent to dramatically change their way of doing business. This change will eliminate my position and all of the other account executive for the CitiMortgage Wholesale (broker) channel. Citi will be taking the 9,500 brokers it does business with today and reducing that number to the neighborhood of 1,000. They will then support those customers with an inside sales team going forward. I received this news minutes ago and I feel it my duty and privilege to relay it to you as I have managed our relationship.

It is not my intent as to explain why Citi is making this change. More so what I would like to cover is what will happen next so you can prepare for loans that are already in the pipeline and any deadlines that have been determined on submitting/locking and funding. I will do everything in my power to make this period as painless and seamless as possible. Expect complete details later this afternoon and in the days to come.

Here is what I know. The last day to lock and submit any loans to Citi Wholesale will be Friday. There has been no communication of any sort as to when loans would need to be funded by OR as to which customers will be retained going forward. I know that they are looking at the top customers, but outside of that...I know nothing more.

My final day of employment at Citi Mortgage will be this Friday. Over the last few weeks I have been evaluating my options and am just about certain (as certain as one can be in this situation) of my intent to stay in this industry as a wholesale account executive.



-from my CITI rep...minutes ago!

THis is forshadowing the inevitable, the credit market has shrunk and is only getting worse...Governemnt will be the only one buying mortgages for a long while...