I'm getting the feeling that this is about as much as can be done to stabilize our housing/credit markets.  If taking over FNMA/FHLMC isn't enough to stabilize things, we're in for some really rough sailing.
Mortgage rates have reacted very favorably to the news so if you've got borrowers waiting for better rates, NOW is the time.  As long as your borrowers are committed and value is solid,

I suggest get those files in and lock up that rate!   Pricing always seems to swing on a pendulum with major news so I wouldn't be surprised to see rates inching back up tomorrow. 

In regards to guidelines for FNMA/FHLMC products, it looks like 95 LTV is on its way out FOR A FEW BANKS and max to 90 LTV.  As of today there is still coverage to 95, but it appears to be going away soon.  Perhaps as early as October.  Bottom line, super high LTV's are not here for long.  (with the exception of FHA)  

 
1.  Hot Products -
 
Various Conforming 30 fixed 
                   Rate             Price
                   5.500            99.632 (Chase)
5.625            100.071 (Chase)
5.750            100.555 (Countrywide)
                   5.875            101.004 (CitiMortgage)
                   6.000            101.321 (Countrywide)
                    (Purch, 417K, 80 LTV/CLTV, 720 fico, SFR, OO, 30 day, w/imps, as of 9/8/08; 2:12 pm PST)
 
Agency-Jumbo 30 fixed - Chase-FHLMC
                        Rate                 Price
                   5.625            99.859
                   5.750            100.249
                   5.875            100.589
                   6.000            100.856
                   6.125            101.210 (AmTrust-FNMA)
                   (Purch, 729K, 80 LTV/CLTV, 750 fico, SFR, OO, 30 day, w/imps, as of 9/8/08; 2:34pm PST)
        
 
Homecomings - GMAC 
Homecomings Financial bailed out of the wholesale and retail markets last week, however GMAC (homecomings parent company) is still a strong player in the correspondent side.   
 
Agency-Jumbo -
We've seen a couple investors moving to DU/DO findings for Agency-Jumbo products and it looks like everyone else will follow suit.  Keep in mind, DTI is still maxed at 45%, but we will be able to follow DU recommendations for documentation. 
CitiMortgage - now allows 2 unit properties on Agency-Jumbo product.  Primary residency only, 6 months reserves. (manually underwritten only)
 
Disclosures -
Just to make sure you're aware, DRE now requires use of the following disclosures. (and these are NOT in Point) 
·         When the loan being proposed to the borrower is a "traditional" loan product - i.e., a loan product that does not allow the borrower to defer repayment of principal or interest and the proposed loan: http://www.dre.cahwnet.gov/pdf_docs/forms/re882.pdf
 
·         When the loan being proposed to the borrower is a "nontraditional" loan product and is secured by a one to four unit residential property whether owner or non-owner occupied. Pursuant to Commissioner's Regulation 2842 a "nontraditional" loan product is "a loan that allows borrowers to defer repayment of principal or interest. http://www.dre.cahwnet.gov/pdf_docs/forms/re885.pdf
 
MI coverage -
MI companies are changing guidelines as often as lenders so order your MI certs as soon as you possibly can.   We will be happy to order the mortgage insurance coverage for you with a 1003/1008, credit & appraisal along with a written request for MI.  Please also provide the program type and the document type.  Keep in mind that if there are ANY changes to the loan terms after the initial cert is issued - The MI coverage is subject to change.
 

 
Consequences of Housing and Economic Recovery Act of 2008 - Just a few of the changes coming October 1st:
·         Effective 10/1/08, all FHA loans will pay the same upfront MI premium, 1.75%
·         Monthly MI premium: .50% up to 95 LTV; over 95 LTV = .55% 
·         Minimum borrower funds required increased to 3.5%
 
Did You Know?  Random FHA guidelines and News: 
·         Down payment assistance programs no longer allowed
·         Jumbo may exceed 31/43 DTI with AUS approval
·         TBW has been temporarily removed from available lenders; we hope to have them back soon.
·         Appraisal must show exterior pictures front and rear at opposite angles to show all sides of the dwelling.  In other words, from a diagonal so that front and side plus rear and other side of property are both shown.
·         Married borrowers may apply in only one spouses name but debt from both spouses still counts towards DTI.  
 
  Realtors, and mortgage professionals, you have a few weeks to try and close as much as you can, because it is going to get very difficult come October 1, 2008, as if it wasn't a cake walk now....

I hope this information finds you well, as this might be one of my last mortgage blogs, as I will be making a transitional change to residential real estate....