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Secretary of the Treasury makes the announcement

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Mortgage and Lending with Osceola Mortgage

It's official,  there will be a RTC type entity created to take bad mortgage paper off  the books and balance sheets of the banks so that banks will have access to capital and be able ot loan more again. Also he announced that the GSE's(Freddie and Fannie) will buy more openly.

Markets rallied on the news in fact this week after having nearly 1000 points of loss on the DOW,we ended up essentially where we started. Jim Cramer from CNBC claims we were very close to a full blown financial meltdown and a possible 1929 style depression. I certainly don't claim to have Mr Cramer's expertise but I would concur. Banks have been unable to sell of paper for over 18 months now and that had backed the credit markets up to where it was too hard for people ot get a loan. The pendulum had swung too far to conservative.

Now the new entity will buy the loans at huge discounts, the banks can lend again and more homeowners can get loans modified. This is ALL GREAT NEWS for us. Rates will be volatilefor awhile longer. Today even with all the changes this week, we could write USDA Guarantee 100% mortgage for 6.5%. Not bad for a product that gives 100% and NO PMI!!!!

Anyway, we feel this was a historic day and in the end will be good for all of us, the American people, homeowners, buyers and sellers.

Remember only two things you ever really control, your attitude and your actions.

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