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Recently From Reuters: On Fannie Mae

Dean Davidson ABR/CSP (Keller Williams Realty) — Mon, 30 Nov 2009 08:39:55 -0600

WASHINGTON (Reuters) - Fannie Mae plans to raise minimum credit score requirements next month and limit the amount of overall debt that borrowers can carry relative to their incomes, The Washington Post reported on Thursday.
Starting December 12, the automated system that the government-controlled mortgage finance company uses to approve loans will reject borrowers who have at least a 20 percent down payment but whose credit scores fall below 620 out of 850, the newspaper reported. Previously, the cut-off was 580.
Also, for borrowers with a 20 percent down payment, no more than 45 percent of their gross monthly income can go toward paying debts, the newspaper said.
A Fannie Mae spokesman told the newspaper that the limits reflect the company's recent experience.
Loans to people with credit scores below 620 fell seriously behind at a rate approximately nine times higher than other loans purchased in the same period, Fannie Mae spokesman Brian Faith said. Loans taken out by borrowers with lots of debt also suffer higher levels of serious delinquency, he said.
"It's not enough to help borrowers buy a home -- we must also ensure that they can stay in the home over the long term," Faith said in a statement to The Washington Post.

Home Sales Rising

Dean Davidson ABR/CSP (Keller Williams Realty) — Fri, 13 Nov 2009 12:45:39 -0600

The good news is that home sales, pending contracts, and closings are on the rise. As I said before we hope this is a light at the end of the tunnel, and I don't mean a freight train. Our Market Center has had two very good months, for both gross commissions earned and profitability.

One of the things I have become aware of is the increased building activity among homebuilders in the Waxhaw, NC and Weddington, NC areas, as well as the areas of Lancaster and York Counties just next door to Charlotte. This is going to be a key factor in getting the economy rolling again, and some relief to the unemployment numbers.

One area that you, if you are a near future buyer, should be investgating is Waxhaw NC. Waxhwaw is located at the south end of Hwy 16, due south of Charlotte. It is 6 miles south of Weddington, at Hwy 84, and just 9 miles south of the I-485 loop. Check you map for reference.

Waxhaw is an old, historic, little railroad communtity with an original landmark footbridge over the rails, in between N. Main and S. Main Streets. There are several antique shops in Waxhaw, and it is becoming home to artist and craftsmen of all sorts, and has several small festivals every year to celebrate its heritage, and put its wares on display. There is even an annual Highland Games, with a gathering of the Clans.

Some of the most attractive land positions in Union County are located around Waxhaw, featuring planned communities with wonderful amenities, and surrounded by the best schools in the State of North Carolina. I know because I live down there, and my wife is an education professional in the Union County School System.

If you are surfing the internet and you come across neighborhoods in Waxhaw, Weddington, Marvin and Wesley Chapel, take pause. You may be home. Communties like Lawson, Millbridge, Edenmoor, Skyecroft, Weddington Chase are those you will want to visit.

All of this quaint, near-country living is within 10 miles of I-485 and 15 miles of some of the most desired shopping venues in the Charlotte and Ballantyne Area. There are also several equestrian and golf communities if those activities have special appeal to your family. And because the area is growing, so are the entertainment venues, like excellent restaurants and food finds of all kinds.

You owe it to yourself to meet this area personally, and I am one of its own.

Tax Credit Extension Legislaton

Dean Davidson ABR/CSP (Keller Williams Realty) — Fri, 30 Oct 2009 09:07:51 -0500

POSTED BY THE WALL STREET JOURNAL TODAY 10/29/2009

Wall Street Journal 10/29/09

WASHINGTON -- Senate negotiators reached a tentative deal to extend a tax credit for first-time home buyers, but its passage remains uncertain.

The agreement would extend the existing credit for first-time home buyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners, Senate aides said. The reduced credit would be available to all home buyers who have been in their current residence for a consecutive five-year period in the past eight years.

The new provisions are aimed at broadening availability of the credit beyond first-time buyers and giving the weakened real-estate market a bigger boost while preventing real-estate investors from benefiting.

Many property experts have cited the credit as a reason for signs of recovery in the housing market in recent months. But that recovery was somewhat undercut by the September drop in new-home sales reported Wednesday.

The credit would be extended from its current expiration date of Dec. 1 to all contracts entered into by April 30, and closed before July 1. It is expected that income limits on people claiming the credit would be increased to $125,000 for singles and $250,000 for couples, from the current $75,000 and $150,000, aides said. The credit phases out for people making more than those amounts.

____________________________________________________________________________

I will continue to update my postings on this issue until resolution has been achieved or the legislation has died.

Representative Mortgage Rates 10/24/09

Dean Davidson ABR/CSP (Keller Williams Realty) — Sat, 24 Oct 2009 11:00:41 -0500

Representative Mortgage Rates 10-23-09

30 Year Fixed Conv. 4.875% 5.02% APR

15 Year Fixed Conv. 4.250% 4.48% APR

5/1 Conv. ARM 3.625% 3.87% APR

7/1 Conv. ARM 4.125% 4.35% APR

10/1 Conv. ARM 4.500% 4.74% APR

30 Year Fixed FHA 5.000% 5.17% APR

5/1 FHA ARM 4.000% 4.18% APR

30 Year Fixed USDA 5.000% 5.21% APR

5/1 Jumbo ARM 4.625% 4.92% APR

The above rates are from a sampling of rates available as of the post date. It does not imply the actual rate you may obtain from any specific lender on any given day.

Homebuyer Tax Credit Expiration Coming....Unless.....

Dean Davidson ABR/CSP (Keller Williams Realty) — Fri, 18 Sep 2009 09:01:29 -0500

On November 30 the $8,000. Federal Tax Credit for first time homebuyers will expire. This stimulus has helped the real estate and building industries the last several months, as it has allowed markets to reduce some of their inventories, and brought action to buy from many who were sitting on the fence to see what happens with interest rates and prices. The problem was the limited scope of the program.

I've written previously that this stimulus should have been offered to any buyers regardless of of their status, and the price range of the home purchase (as long as it primary residence, or home used by a family member, such as inlaw or dependent in college). This would have relieved much more inventory and at fairer prices to the sellers, allowed people who wish, or need, to relocate to sell their homes, and created a demand once more for new construction, putting many layed off construction and related trade workers back on the payrolls, reducing the growth of unemployment overall.

This still may happen, and that should be good news. There has been legislation introduced in several forms, which extends the current program another 6 monthe to a year, and more importantly, broadens its scope to include the homebuyers who are not first timers, and are looking to move up or move out. If this legislation does not pass, and the current program expires as scheduled, the gains made over the last several months will be eclipsed by growing unemployment, which is already dangerously close to the 10% mark.

If you are reading this post, please be pro-active and contact your Representatives and urge the passing of this legislation. It has more long reaching effect on the nations economy right now than anything else that can be on the table. Our voice, whether raised with pen or phone, is the most powerful tool the average citizen has at their disposal. Let's use it.

Has the Home Buying Market Really Turned?

Dean Davidson ABR/CSP (Keller Williams Realty) — Mon, 31 Aug 2009 14:49:09 -0500

I bet most of you are like me and a little conflicted over the mixed messages regarding the home real estate market conditions. I stated not long ago that we are supposed to be in a super buyers market, and that, literally, should be the case. However, it is not really a buyer's market unless buyers are buying.

It is true we have seen an upturn in sales contracts (pendings) and closings the last couple of months. This was to be expected due to the tax incentives passed down by the Fed for "first time homebuyers". These were defined as anyone who has not owned a home in three years or more. They have made up the bulk of the gains the market has made this year.

Smoke and mirrors? Possibly. The tax incentive could have been extended to anyone buying a home in the year 2009, regardless of price point, or residency status. In other words, investors could have been incentivised to buy as well, thereby relieving the market of more of the previously foreclosed properties. With that inventory reduced, more people that were desiring to move up, could have sold there existing homes a lot faster, and made that next purchase possible. This would have really helped the home builders who have had to lay a lot, if not most, of their labor force off.

As I said earlier, indicators say we are bottoming out of this real estate recession. Maybe. My concern is that the stimulus measures are not going to work fast enough to turn the tide of rising unemployment, and this recovery will begin to reverse itself before it really has solidly begun.

Let's hope the administration is not sandbagging these stimulus funds until it can serve them in 2011-12 to assure re-election.

Feel free to email me or post your comments to this site.

Interest Rates Creeping Upwards

Dean Davidson ABR/CSP (Keller Williams Realty) — Sun, 31 May 2009 07:34:46 -0500

Fence sitters may be dealing with an opportunity lost by trying to time the market in hopes of a "better deal". The following demonstrates that which we have been saying for months.

As the pressure for higher mortgage rates has increased in recent weeks, investors have speculated that the Fed would step in to "defend" certain interest rate levels, but that hasn't happened. This week, Fed officials explained that their mortgage-backed securities (MBS) purchases are designed to support the mortgage market and not to set rates. The Fed's MBS purchases of $25.5 billion this week were similar to levels seen in recent weeks. Disappointed that the Fed hasn't increased its quantity of asset purchases, investors sold MBS this week, and mortgage rates moved higher.

A number of factors have been developing which typically push interest rates higher. The coming supply of debt needed to pay for government programs will compete for investor funds. Despite strong demand for this week's large Treasury auctions, investors are concerned that higher rates will be required in the future. In addition, an improved economic outlook has made investors more willing to move funds to riskier assets and away from safer assets such as bonds. It also means that higher inflation may be a concern sooner than previously expected.

Info courtesy of Jeff Cook, Bradford Mortgage Company.

This afternoon investors decided the selloff of MBS was overdone and favorable re-pricing took place.

Rates are still EXCELLENT!

Here's a sample of Primary Home Purchase money rates today, up to 0+1, with escrows for a borrower with median credit of 720-760. These are subject to vary based on loan amount, occupancy, LTV, credit quality and other factors.

Conforming (using 250K as amt)

30 yr fixed 4.875%

15 yr fixed 4.5%

5/1 ARM, 30 yr am 4.00%

Jumbo (using 650K as amt)

30 yr fixed 6.00%

15 yr fixed 5.00%

5/1 ARM, 30yr am 4.375%

Super Jumbo (using 1M amt)

30 yr fixed 6.125%

15 yr fixed 5.00%

5/1 ARM, 30 yr am 4.375%

Complements of Ashleigh Sumlin, Bradford Mortgage Company, 704-307-9908

Recovery Near?

Dean Davidson ABR/CSP (Keller Williams Realty) — Tue, 26 May 2009 13:17:32 -0500

Market Conditions Improving....

The North Carolina Association of Realtors has reported in the May/June issue of "For The Record" that foreclosures fell 42% in North Carolina in the 1st Quarter, while filings rose 24% nationally, as compared to the same period last year, 2008.

Nationally, the United States median home price rose 4.2%, considerably higher than the normal seasonally adjusted increases of 1.8%. Over 55,000,000 US households can now afford to purchase median priced homes of approximately $200,000. And of course, due to the first-time homebuyer tax credit, that segment accounted for 53% of all home transactions in March.

In Addition.......

According to Forbes Magazine, six cities in North Carolina - Raleigh, Durham, Asheville, Wilmington, Winston-Salem and Charlotte, are among the top 20 "Best Metros" in the country for careers and business climate.

Chief Executive Magazine calls North Carolina the 2nd best state in the US to conduct business.

Maybe, just maybe, we are seeing the bottom of our recession in North Carolina.

Market Conditions Improving

Dean Davidson ABR/CSP (Keller Williams Realty) — Tue, 26 May 2009 13:01:41 -0500

In Addition.......

Chief Executive Magazine calls North Carolina the 2nd best state in the US to conduct business.

Maybe, just maybe, we are seeing the bottom of our recession in North Carolina.

Buyer's Still Trying to Time the Market?

Dean Davidson ABR/CSP (Keller Williams Realty) — Mon, 13 Apr 2009 14:17:40 -0500

We are closing in on almost 4 months since the benefits of the Stimulus Package for home buyers was announced. Unfortunately, the incentives have not yet spurned an appreciable amount of buying activity, though some markets have reported some modest upswings in the past 3 months.

So, why haven't the results been more dramatic. To begin with, the stimulus package didn't reach deep enough into the population to benefit all buyers at all levels of the economic scale. Anyone that is not a classified "first time buyer" does not get the $8,000. Federal tax credit that is promised the first time buyer. They are also the ones who can afford in many cases to wait and try to time the market, hoping for a better deal. They are not likely to be that smart, and will not benefit by waiting near as much as they would by buying now, and do their share to restimulate the economy.

The first time buyer, on the other hand, is the one most likely to be timid about making their investment in a new home during a period of uncertainty, and when jobs are being lost everyday. They are influenced by watching their family members and neighbors come home with their pink slips, and scared they may be next. Understandable, and totally a part of our human nature.

Both of these groups of potential home buyers could do a lot very quickly to jump start the economy, the stock market, and the general feeling of well-being across the land by doing what they already want to do. They could stop the bleeding in the employment numbers, reducing the risk of losing their own jobs, open the home building businesses, and all those that support it with the products they sell, and send a clear and message to the world that it is the consumer that leads out of recessions, not governments.

The only thing that the government can do, is provide the atmosphere for that buying activity, and it has fallen sadly short of creating that incentive. Spending on it's favorite programs is not the answer, and I believe the economic indicators, after 4-5 months now, has told us just that. The question still remains, will the public take the bull by the horns, or wait for mother Govco to solve it's problem?

Mortgage Rate Update

Dean Davidson ABR/CSP (Keller Williams Realty) — Fri, 13 Mar 2009 13:01:30 -0500

TARP funds must be finally in play now- check out our LOW Jumbo and Super Jumbo 30 yr fixed rates!

Conforming (using 250K as amt)

30 yr fixed 4.75%

15 yr fixed 4.375%

5/1 ARM, 30 yr am 4.125%

Jumbo (using 650K as amt)

30 yr fixed 5.875%

15 yr fixed 5.25%

5/1 ARM, 30yr am 4.875%

Super Jumbo (using 1M amt)

30 yr fixed 5.875%

15 yr fixed 5.25%

5/1 ARM, 30 yr am 4.75%

Compliments of Asleigh Sumlin, Bradford Mortgage Company, Charlotte 704-307-9908

The Stimulus and You

Dean Davidson ABR/CSP (Keller Williams Realty) — Sat, 07 Mar 2009 13:41:34 -0600

It's been longer than I like between posts, but I have been watching with interest the effects decisions in Washington are having on our futures, and what is being done or promised with our money. Some of the measures I advocated last August in the wake of Fannie Mae and Freddie Mac failing, are finally being done. Maybe not as far reaching as it could to get the real estate market turned around, but enough to benefit a lot of home buyers and, consequentially, sellers.

The American Recovery and Reinvestment Act of 2009 is providing tax credits for home buyers that have not owned a home as a primary residence for 3 years, otherwise referred to as first time buyers. This is not a permanent program, but offers a generous short term window of opportunity to take advantage of three things that enhance their purchase decision. 1) They get the tax credit 2) They take advantage of very low interest rates, and 3) They can still capitalize on some very handsome seller incentives either on new homes or resales. There is no reason to delay. Any speculation that prices will fall further can result in an offsetting rise in interest rates, as inflation is sure to be a bi-product of all the other spending.

For sellers who have been waiting for the market to turn to put their homes on the market, this is a good time to be in the market. Buyers are going to take advantage of the new incentives, and your home needs to be in the product mix for these buyers to consider, especially if you have a desire to move up or away from your present home.

Check with your lender, or competent real estate broker about your best opportunity to cash in on this brief window of assistance. It won't last forever, and you will want to be able to say, "I'm glad I did," instead of, "I wish I had."

Mortgage Market Update

Dean Davidson ABR/CSP (Keller Williams Realty) — Sat, 31 Jan 2009 11:05:26 -0600

January 31, 2009

Friends in Real Estate,

Mortgage rates continue to stay low due to the government purchase of mortgage backed bonds.

Expect slow underwriting due to the huge numbers of refinances. Plan on 45-60 day closings and be happily surprised if your lender can close sooner. If your contract is on a short sale, closing 4-6 months is not uncommon because banks are swamped with short sale requests.

Appraisals are getting even closer scrutiny. This week I had one with 5 excellent comps, all within the 6-12 month sale requirement. The underwriter requested a 6^th comp sold within the last 3 months. Underwriters are paying very close attention to the CURRENT market, not so much to what happened 6-12 months ago.

Conforming (using 250K as amt)

30 yr fixed 5.00%

15 yr fixed 4.75%

5/1 ARM, 30 yr am 4.625%

Jumbo (using 650K as amt)

30 yr fixed 6.875%

15 yr fixed 5.25%

5/1 ARM, 30yr am 4.75%

Super Jumbo (using 1M amt)

30 yr fixed 7.125%

15 yr fixed 5.25%

5/1 ARM, 30 yr am 4.875%

Compliments of Ashleigh Sumlin, Bradford Mortgage Company 704-373-2289

Year End Mortgage Rates

Dean Davidson ABR/CSP (Keller Williams Realty) — Tue, 30 Dec 2008 14:16:18 -0600

What a way to end the year, or better yet begin a new year for the housing industry.

Conforming (using 250K as amt)

30 yr fixed 5.00%

15 yr fixed 4.625%

5/1 ARM, 30 yr am 5.00%

Jumbo (using 650K as amt)

30 yr fixed 7.00%

15 yr fixed 5.25%

5/1 ARM, 30yr am 4.875%

Super Jumbo (using 1M amt)

30 yr fixed 7.25%

15 yr fixed 5.25%

5/1 ARM, 30 yr am 4.875%

Compliments of Ashleigh Sumlin, Braddford Mortgage Company, 704-373-2289

Setting the Record Straight

Dean Davidson ABR/CSP (Keller Williams Realty) — Tue, 30 Dec 2008 14:09:32 -0600

The longer this business downturn runs on, the uglier it is getting. It is affecting so many different aspects of our economy now, it is going to take longer to work our way out of it. And too many are getting the idea that they can get a piece of the bail out pie, just because it's there.

The most shameful of it all is that the entities and people involved with them that created this mess are acting like they are inocent bystanders, and that it is the Bush Administration's doing. Let's make this perfectly clear...nothing is farther from the truth. President Bush warned Fannie Mae, Freddie Mac, and the Congress in 2001 that Fannie Mae and Freddie Mac needed regulating. No one wanted to listen because they were either getting fat of the loan packages being sold, or they just didn't have a clue in the first place about how the mortgage industry worked. Some that I mentioned that were getting fat and didn't want to see regulation were, Barney Frank, Chris Dodd, Charles Schummer, Barrack Obama, to name a few, as well as the heads of those two government sponsored entities.

How Fannie Mae and Freddie Mac got into trouble was due to the subprime loans being forced down lenders throats by the Clinton Administration, who believed home ownership is a right rather than privilege, and was dead set in seeing more people buy homes that were not ready for that responsibility.

Builders, as well jumped on that bandwagon because it helped them relieve themselves of their number one asset, their land/lots. They relieved that asset by building and selling homes with them. It was a snowball out of control. And let me remind those that read my blog, your current President warned the mortgage markets, and Fannie Mae & Freddie Mac in particular, that they were headed for a fall.

Ah, you say, why did the Bush Administration go along with bailing out Fannie Mae and Freddie Mac? Because it is a government sponsored entity, holding over 50% of the mortgages at any time. This is not a private enterprise, and the government, who we are all a part of, was compelled 'to bite the bullet.'

Before all this came down, the economy was generally strong. People had not started losing jobs as we now are, due to the numbers of people employed in the construction/supply businesses. The stock market was stable, and the only real negative, daily, was the cost of gasoline, which brings me to my last point about our situation and current leadership.

Crude oil and our gasoline prices have been steadily dropping since President Bush just mentioned lifting the ban on offshore drilling, back in July. Check it out. I suggest he knew very well the pain the nation had to suffer, before the public outcry to expand our own search for fossil fuels right here at home, began to be heard.

As you look back at the last few months, it hasn't been the President elect, or this very impotent Congress we have in Washington, that has been leading us through the tough choices, and necessary action. It has been your current President.

I hate to think where we would be today if the 72% of the public who disapproves of his leadership, had been making the decisions. History, I believe will treat him better.

To solve problems, you first must understand them.

All the best for 2009.

Mortgage Update - Nov 13, 2008

Dean Davidson ABR/CSP (Keller Williams Realty) — Fri, 14 Nov 2008 11:34:34 -0600

November 13, 2008

Friends in Real Estate,

2009 Conforming Loan limits will remain at $417,000, the 4^th consecutive year at this level. What is a Conforming loan? A loan that "conforms" to Fannie Mae or Freddie Mac guidelines.

The stock market rally drew funds away from mortgage backed bonds and we had a late day rate increase. Volatility is still the rule.

Conforming (using 250K as amt)

30 yr fixed 6.00%

15 yr fixed 5.625%

5/1 ARM, 30 yr am 5.375%

Jumbo (using 650K as amt)

30 yr fixed 7.5%

15 yr fixed 5.625%

5/1 ARM, 30yr am 5.25%

Super Jumbo (using 1M amt)

30 yr fixed 7.875%

15 yr fixed 5.625%

5/1 ARM, 30 yr am 5.25%

Compliments of Ashleigh Sumlin, Bradford Mortgage Company, 704-307-9908

How Will We Get Out of This Crisis

Dean Davidson ABR/CSP (Keller Williams Realty) — Wed, 12 Nov 2008 14:16:19 -0600

After almost a year of declining home prices, incredible buyer incentives on home purchases, and for the most part, stable or falling mortgage interest rates, we still have large inventories, pent up buyer demand, and not appreciable movement in the market. Buyers are not taking advantage of a buyers market.

Due to the lackluster activity, if not buyer apathy, we have thrown the entire US economy in a tailspin, where every industry and trade associated with home building is suffering. Unemployment continues to rise, and businesses that once supplied the industry are in deep trouble, some already closed.

The public, the average consumer, particularly those that are in the market for a home, must realize they are the only force that is going to lead us out of this recession. It's the way it's always been, since WWII. When we stop buying what our neighbor is making or selling, we risk depression. Many think the longer they wait, the better the deal they will get. Wrong!! Unless you have a crystal ball, catching any market at the bottom of its curve is difficult for the professional speculator, much less the average homebuyer.

The reality is that the longer you wait, the more costly your purchase is likely to be. An increase of .5% in mortgage interest rates can equate to several thousand dollors in a homes comparable purchase price. Let's all hope that buyers will soon get off the fence and start the recovery of the real estate markets, and all the jobs, income, and purchasing power it creates for other businesses, like cars.

Mortgage Update October 23, 2008

Dean Davidson ABR/CSP (Keller Williams Realty) — Fri, 24 Oct 2008 09:58:05 -0500

October 23, 2008

In the mortgage world a self employed borrower is one who receives income from a business they have 25% or more ownership interest. This can be the only source of income or a supplement to another job. The self employed borrower should expect a request for the most recent 2 years personal and business tax returns. Does this mean self employed borrowers cannot get a mortgage loan? NO! Just expect a full documentation process like everyone else is experiencing these days. Rates are the same for self employed borrowers as for salaried borrowers, but credit score requirements may be higher for the self employed depending on the loan product. Call me when you have a self employed client to discuss specific details.

Conforming (using 250K as amt)

30 yr fixed 5.875%

15 yr fixed 5.375%

5/1 ARM, 30 yr am 5.25%

Jumbo (using 650K as amt)

30 yr fixed 7.375%

15 yr fixed 6.000%

5/1 ARM, 30yr am 5.5%

Super Jumbo (using 1M amt)

30 yr fixed 7.5%

15 yr fixed 6.00%

5/1 ARM, 30 yr am 5.625%

Compliments of Ashleigh Sumlin, Bradford Mortgage Company 704-373-2289

Mortgage Update 10/09/2008

Dean Davidson ABR/CSP (Keller Williams Realty) — Fri, 10 Oct 2008 09:49:05 -0500

October 9, 2008

Friends in Real Estate,

For the 2^nd straight day both mortgage backed securities and stocks fell significantly. Usually they move in opposite directions, but due to margin calls and investor redemptions, many investment funds are forced to sell assets to reduce their leverage. So MBS and stocks moved lower and rates have bumped up. Keep in mind the historical average for a 30 yr fixed loan is somewhere between 7 to 9%, so we are still in a low priced environment that is great for buyers!!

Government loans used to be the exception but are quickly becoming common. At this week's Home Builder's Association the director of FHA in NC reminded us that FHA is much more user friendly - closing costs are similar to conforming, no extra inspections on stick built homes (just a copy of the certificate of occupancy), no more long repair checklists, no income restrictions, no reserve requirements and best of all a minimum 3% downpayment (changing to 3.5% January 1, 2009). The greater Charlotte area maximum FHA loan is approximately $303,000.

Here's a sample of today's Primary Home Purchase money rates, up to 0+1, with escrows for a borrower with median credit of 720. These are subject to vary based on loan amount, occupancy, LTV, credit quality and other factors.

Conforming (using 250K as amt)

30 yr fixed 6.00% 15 yr fixed 5.75% 5/1 ARM, 30 yr am 5.875%

Jumbo (using 650K as amt)

30 yr fixed 7.375% 15 yr fixed 6.125% 5/1 ARM, 30yr am 5.875%

Super Jumbo (using 1M amt)

30 yr fixed 7.5% 15 yr fixed 6.125%

Compliments of Ashleigh Sumlin, Bradford Mortgage Company, 704-307-9908 / 704-373-2289

Public's Ignorance of the Facts

Dean Davidson ABR/CSP (Keller Williams Realty) — Mon, 06 Oct 2008 14:33:43 -0500

We as a nation are close to making the wrong decisions at the ballott box next month due to lack of knowledge, understanding, and in many cases just ignoring historical facts. The recent collapse of the financial markets was not, in great part, of this administrations doing. President Bush is far from the fiscal conservative that Ronald Reagan was, but he is not to blame for the failing of Fannie Mae and Freddie Mac. Both have been overseen by the Democrats since their inception. But President Bush did call for a tightening oversight of Fannie Mae and Freddie Mac his first year in office.

Both of these organizations were founded as governmnet sponsored entities, GSE's. So, they are far from the free enterprise status many believe. The government helped get them in the mess they are in, and that is why I said on August 8th, that it would be the right thing to do for the government to back them up and steady our economy, and try to prevent as many foreclosures as possible.

What got us here was the Clinton Administrations insistence on providing more home ownership among minorities, regardless of income or credit standing. Pressure came upon Fannie Mae and Freddie Mac to back the loans financial institutions were being encouraged to write. All the time, and against the warnings of Senator John McCain, the Democrat power brokers close to these institutions were telling investors that both were financially stable and had no problems. All the while, Frank Raines, CEO of Freddie Mac was amassing over $100 million dollars in compensation, while Democrats, Maxine Waters, Barney Frank, Charles Schummer, and the Charlottes own Mell Watt were insisting there need not be any reform of these two institutions. Barney Frank has resisted reform since 1992.

Rep. Richard Baker, R-Louisiana, in a Government Sponsored Enterprises Subcomittee, redicted the collapse of Fannie Mae if nothing was done to reform its practices. Former President, Bill Clinton even stated on Good Morning America, September 25, 2008 that his party (Democrats) responsibility may rest more on their resisting efforts of Republicans in Congress, or by him when he was president, to put those standards in place to tighten up on Fannie Mae and Freddie Mac.

Another interesting fact in all this is who in Congress has benefitted from the lobby of these entities. The top four are Sen. Christopher Dodd, D-CT, #2 Barack Hussein Obama (and the activist organization ACORN which he used to lead) D-IL, #3 Sen. Charles Schummer, D-NY, and #4 Rep. Barney Frank, D-MA. This is why there was so much reluctance to reform.

Can you imagine how they were all scrambling to fix the problem last week, and try to side-track a full investigation into their activities. That shoe is yet to drop.

The Federal Housing Enterprise Reform Act was sponsored by Senator John McCain, R-AZ, was not supported by any of the four Congressmen above, was basically blocked by Democrats, and never made it out of committee. None of the politicians return any of the money which is very possibly tainted by fraud. At least two of the leaders and primary financial benefactors of Fannie Mae and Freddie Mac are key finacial advisors of Presidential Candidate Barack Hussein Obama.

We are getting ready to put the fox in the hen house.

Fannie Mae / Freddie Mac takeover affect on rates

Dean Davidson ABR/CSP (Keller Williams Realty) — Thu, 11 Sep 2008 10:08:35 -0500

The government bailout of Fannie and Freddie had a great impact on Conforming Fixed rates today. Conforming Fixed Rates dropped by .25 to .5 depending on the loan size and type of loan quoted. Many experts are predicting they will continue to drop in the next few weeks. This is great news for well qualified clients wanting fixed rate loans of $417,000 or less.

The tightening of guidelines is expected to continue however. So although rates are great, prospective buyers will pass an even higher bar of standards to qualify.

This improvement on the fixed rate loans had no effect on ARMs which are funded entirely differently. In fact I saw some Conforming ARM rates increase.

It is my hope that the lower Conforming and Jumbo rates we've seen this week will help your clients realize NOW is the time to buy a home. Let me know when your client is thinking about making an offer and needs a loan pre-approval.

Ashleigh Sumlin Bradford Mortgage Company 6000 Fairview Rd, Ste 1410 Charlotte, NC 28210 704-373-2289 office (if you get the automated attendant, choose #1 then #5) 704-307-9908 cell v

Good News from the National Association of Realtors

Dean Davidson ABR/CSP (Keller Williams Realty) — Fri, 08 Aug 2008 13:45:44 -0500

Had to get this in today.

The National Association of Realtors has released some statistics regarding pending home sales for the month of June. Pending home sales are homes under contract that are on the way to closing. Predictions for June were to be a decline of 1.0% in June. As it turns out June actually spiked to a 5.3% rebound.

The four regions of the United States all posted gains in June, and expectations are now raised for July. the Midwest rose 1.3%, the Northeast 3.4%, the West 4.6%, and the South 9.3%. This is a good indication that the pendulum is beginning to swing for the housing market.

Buyers who have been rolling the dice on the market dropping farther to maximize their opportunity need to be thinking about NOW!! As inventories reduce, prices will begin to rise again, favoring the sellers. If interest rates continue to creep upward, as well, the gains anticipated will shrink or be lost.

Put some "Do it Now" in your everyday.

Mortgage Lending Undate

Dean Davidson ABR/CSP (Keller Williams Realty) — Fri, 08 Aug 2008 10:26:22 -0500

August 7, 2008

Friends,

Expect higher conforming (<417K) loan rates in October 2008, no matter what happens to mortgage bonds. Fannie Mae revised its' pricing AGAIN and the change affects EVERYONE no matter what the borrower's credit score or loan to value is. Lower credit scores/higher LTVs will continue to have higher rates with this new model. My mantra has always been "no surprises," so let your clients know I ask a lot of questions before offering any rates.

Tax change in the recent housing bill: The old 250k/500k capital gains exemption for a home lived in for 2 of the last 5 years will be a percentage ratio instead of a flat amount. If you have a client planning to sell an investment property encourage him/her to sell by December 31! Here is a Wall Street Journal article explaining it: http://online.wsj.com/article/SB121798585043615583.html?mod=residential_real_estate&rejpartner=mod=hpp_us_real_estate

Conforming (using 250K as amt)

30 yr fixed 6.5%

15 yr fixed 5.875%

5/1 ARM, 30 yr am 5.625%

Jumbo (using 650K as amt)

30 yr fixed 8.00%

15 yr fixed 6.00%

5/1 ARM, 30yr am 5.625%

Super Jumbo (using 1M amt)

30 yr fixed 8.00%

15 yr fixed 6.00%

5/1 ARM, 30 yr am 5.625%

My last 3 loans were approved and to the attorney within 3 weeks of application.

For smooth closings call me at 704-307-9908

Compliments of Ashleigh Sumlin, Bradford Mortgage Co., Charlotte NC

Freddie Mac - Fannie Mae Bail-out?

Dean Davidson ABR/CSP (Keller Williams Realty) — Wed, 16 Jul 2008 15:57:17 -0500

There are a lot of mixed feelings at present about the Feds decision to standbehind the two largest mortgage holders in the secondary market. Secondary market refers to the business entities which purchase mortgage paper from primary lenders, like your bank. Purchasing these mortgages, usually bundled, from your bank, frees up capital for the banks to continue making loans in their local marketswithout carrying that paper for 15 to 30 years and overburdening that portfolio. Fannie Mae, begun by FDR was the first, and Freddie Mac the second of the government sponsored lenders, though set up as private enterprises.

No one who believes in our system of free enterprise, risk vs. opportunity in business, likes to see the Federal Government intercede and financially aid in any way a private concern. But in this case, I believe it was the right thing to do.

Part of the reasoning lies in the first paragraph above. The health of the secondary mortgage market and its attractiveness to new investment is imperative to see the country through the real estate downturn we are now experiencing all over the country. The real estate industry, home building, and all the suppliers, employment account for such a chunk of our economy, we can't afford to have it fail.

Some say this should not be done at the expense of the taxpayer. On the surface, that is the way it appears. I'd like for you to consider this: the government created this situation in the ‘90s when it decided every American "had the right" to home ownership. Consequently, the FHA issued new lending guidelines which included relaxed personal credit standards for borrowers, down paymnent assistance programs which allowed buyers to own homes without any personal funds at risk (equity), and created an influx of new lenders and mortgage brokers into the market that weren't regulated.

The result? We, and when I say we, all that benefitted directly or indirectly from the building boom which ensued in the mid ‘90s and for many markets extended into 2007, placed people into home ownership that were not ready for the responsibility. We effectively borrowed from the next generation of home buyers. We are now sharing in whatever backlash has been caused by the glut we helped create.

Only 1 in 110 homes, nationwide are in foreclosure at this time. You probably have heard it in much scarier terms. It will take a little time, but with the help of the Fed, not only to the backers of outstanding loans, but also some relief to homeowners in the way of restructured loans, we will dig out of this hole.

You will probably never see the relaxed lending standards of the last ten years again, nor the velocity of home building and sales that came with it. What we should evolve to in the next cycle, is a more savy, and credit conscious consumer. They will have to be if they are to realize the American dream.

Mortgage Mess vs. Real Estate Mess

Dean Davidson ABR/CSP (Keller Williams Realty) — Wed, 16 Jul 2008 15:28:12 -0500

This blog entry was originated by Lenn Harley of Rockville, Maryland, and she gave me permission to post it here today. I thought it a worthwhile read. I am following shortly with my own reflections and take on the backing that Freddie Mac and Fannie Mae have been assured by their sponsor, the Federal Government.

____________________________________________________________________________

Thanks to the Mortgage Pro Week in Revew: 6/30/2008 throught 07/06/2008 by Alan 'AJ' Nisen, I found some very good reading material by ActiveRain members from the mortgage loan industry.

One of the featured articles includes real estate agents in the group responsible for the mortgage mess. Including real estate agents in the blame game for the mortgage mess appears to be a knee jerk reaction. However, the writer doesn't say how the real estate agents were responsible for the mortgage mess. We know how mortgage loan officers can be responsible for approving loans for unqualified buyers. I have yet to hear how a real estate agent can be responsible for a loan officer approving an unqualified prospective borrower.

"Get pre-approved before selecting a real estate agent" is the advice from mortgage loan officers and HUD. If mortgage loan officers can pre-qualify a prospective home buyer before the consumer has selected a real estate agent, how does the real estate agent become responsible for the actions of the loan officers approving loans for consumers once the consumer has an agent???

The mortgage loan officer is not responsible for the institutional creation of the Alt-A, the Neg. Am, etc. loan instruments. Those loans were created at a much higher level than the mortgage loan officer. In fact, Fannie Mae and Freddie Mac guidelines approved many loans that were doomed to failure. Surely, the mortgage companies that employ loan officers have Policies and Procedures for their employees.

On Tuesday, Fannie Mae (nyse: FNM - news - people ) executives told analysts that 43.0%, or $946 million, of the $2.2 billion in losses incurred during the first quarter involved Alt-A loans. They also said that the company's "Alt-A book will continue to drive an outsize portion of our overall credit losses." Fannie also reported $344.6 billion current Alt-A exposure and a limited strategy for stemming future losses. Forbes, May 6, 2008.

REAL ESTATE AGENTS ARE AT THE BOTTOM OF THE FOOD CHAIN. I've read the license law in both states in which I practice real estate brokerage. Neither have any duty on the part of the broker or agent to advise or have any knowledge of mortgage lending, rates, terms or conditions. How can real estate agents be held responsible to police the actions of mortgage loan officers?? Not only are they not trained in the intricacies of mortgage loans, they have no authority to police the application and approval process or criteria for mortgage loan approval.

Why does everyone try to suck the agents into this mortgage mess? Agents have their job and loan officers have their job.

Does the agent blame the mortgage loan officer when the agent fails to provide required disclosures?
Does the agent blame the loan officer when a buyer closes on a home without the HOA docs?
Does the agent blame the loan officer when the agent practices undisclosed dual agency?
Does the agent blame the loan officer when the agent provides an inaccurate CMA?

Real estate agents and brokers do have many duties for which they bear responsibility. Mortgage loan approval is not a duty of the real estate agent. There are many levels of knowledge and exprience of real estate agents. However, mortgage lending is not a required competency for real estate agents. I have always been of the opinion that it takes about 100 transactions before a real estate agent really has an understanding of real estate brokerage. If agents are responsible for mortgage loan failures, you'll have to add a few years experience for competency. Few agents even attend or participate in mortgage loan applications. If we are responsible, we would have to have been involved in the approval process. Real estate brokerages have published Policies and Procedures for their real estate agents. Those guidelines do not include mortgage loan approval authority.

Loan officers often say that they wouldn't approve bad loans for buyers if the agent didn't "pressure" them to do so. This statement astounds me. Pressure from an agent is hardly an excuse for failing to follow the law or guidelines for a mortgage loan.

All the mortgage loan officer has to do is "SAY NO"!

The blame game has to stop when one sector of the real estate industry tries to suck everyone into the mess and refuses to police themselves and accept responsibility for the causes.

If the mortgage loan industry is not going to accept the responsibility for making mortgage loans to consumers who didn't meet the guidelines, the persons making those loans will continue to perpetuate this problem and the consumer will continue to be badly served.

Consumers do not understand mortgage loans even when they shake their heads up and down and say that they understand.

Many real estate agents do not understand mortgage loans, even when they shake their heads and say that they understand.

Mortgage loan officers DO understand mortgage loans and if they approve a loan for an known unqualified home buyer, they may bear responsibility for their actions. FHA and VA have "charge back" features that go a long way to prevent unqualified buyers being approved. Loan officers know when a buyers is qualified and when they are not.

In all the years I've been selling real estate, I've never known a loan officer who couldn't say "NO".