Hey There!

Until it all gets sorted out, I want you to keep one number in mind.

$417,000

Put it on your notepads, jot it on the back of your business card. Tattoo it on your forehead-- in reverse of course, so you see it in the mirror. Under that limit, the Conforming Limit, tremendous things can be done. First Time Home Buyers, 100% purchase or refi, dinged credit, manufactured on land (95 ltv). A LOT can be done within the Conforming Limit. Most importantly, there are still two market makers for these loans to be sold to, Freddie and Fannie, so the banks are still funding them.

There are signs of hope out there in the market at long last. Last week's move by the Fed, lowering the discount rate by a half, and lengthening the term of discount window loans to 30 days, gives some liquidity back to the market. Today, four big US banks, Citibank, JP Morgan Chase, B of A, and Wachovia, plus German giant Deutsche Bank, none of whom are in trouble, all took out discount window loans from the Fed in an effort to remove the stigma associated with these loans. Traditionally, a discount window loan has been seen as the last gasp of a dying bank. With this move, the Big Boys have 'given permission' to the multitude of smaller banks who could use the help, to go get it.

This afternoon, in a tremendous vote of confidence for the market, Bank of America announced it is investing $2 Billion in everybody's favorite target, Countrywide. On my blog this morning, I posted a link to an article that I think EVERYONE IN THIS INDUSTRY SHOULD READ.

Ok, well, only those of you who want to actually understand what's going on in the secondary market, why it matters to every realtor, home owner, or prospective home owner, and more importantly, get a glimpse of the road out. You can read it by clicking here. It might alarm you a bit, but take courage in the fact that there IS a path out for the market in general, and there are many solutions still available for that deal you may be struggling to get done. Remember that number. $417,000. And another number you need to write down is this: 951.544.6283. That second one won't change. When the first one does, I'll be the first to let you know...

Best Regards,

The STILL HERE Loan Officer!