real estate: Rate future...scary! - 01/13/09 08:55 AM
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 … (2 comments)

real estate: Historical Chart of 30 yr fixed and Prime Rate going back to 1963 - For all those who think rates are not going up, think again... - 10/29/08 03:16 AM

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 … (4 comments)

real estate: Rates are going up... - 10/27/08 09:32 AM
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 … (7 comments)

real estate: From the report on the fianncial condition of the US Governemnt - 10/23/08 08:56 AM
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

real estate: FHA loan limit is going to be raised to 417k... - 10/09/08 03:14 AM
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 … (1 comments)

real estate: Some humor on a day when it may be hard to find some... - 10/07/08 09:04 AM
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. … (9 comments)

real estate: Citi...Letter received from rep - 10/07/08 06:30 AM
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 … (3 comments)

real estate: FHA the real story... - 10/02/08 09:01 AM
I have received from the HUD office all the item pertaining to condo developments and the guidelines at every possible stage. Whether it is new, existing, annexation, or additional phases different rules apply to the different types. I believe on common misconception realtors have is that once your project is FHA approved that that also means that your Borrower is FHA approved for financing. Which is not the case. The FHA condo approval has two parts. First the Condo development itself must be approved and then each individual borrower must meet the FHA condo requirements. This is a separate set of … (4 comments)

real estate: DPA - alive again...? - 10/01/08 07:52 AM
For Immediate Release: October 1, 2008CONTACT: Henry Fawell (410) 545-5830CBO report: downpayment assistance could generatenew revenue for U.S. TreasuryAmeriDream urges Congress to preserve DPA to stabilize housing marketGAITHERSBURG, MD - Downpayment assistance programs that expire today could generate sorely-needed revenues for the federal government if Congress preserves them by passing H.R. 6694, according to a new report from the Congressional Budget Office (CBO). Downpayment assistance programs funded in part by sellers (DPA) were eliminated, effective today, as part of the housing stimulus package signed into law in July. "At a time when Congress considers saving Wall Street, we must not lose … (1 comments)

real estate: A better solution than the bailout... - 09/30/08 08:23 AM
Hi Folks, I'm against the $85,000,000,000.00 bailout of AIG. Instead, I'm in favor of giving $85,000,000,000 to America in a WeDeserve It Dividend.To make the math simple, let's assume there are 200,000,000bonafide U.S. Citizens 18+.Our population is about 301,000,000 +/- counting every man,woman and child. So 200,000,000 might be a fair stab at adults 18 andup.. So divide 200 million adults 18+ into $85 billion that equals$425,000.00.My plan is to give $425,000 to every person 18+ as a WeDeserve It Dividend.Of course, it would NOT be tax free. So let's assume a taxrate of 30%.Every individual 18+ has to pay $127,500.00 … (1 comments)

real estate: The future of lending... - 09/30/08 08:20 AM
Many wholesale lenders as well as brokers are likely tobe closing down before the end of the year and into 2009as the Great Credit Crunch continues and the recession deepens.Futher than that, the falling home prices and furthur declingvalues in California in particular will leave very little roomfor undercapitalized wholesale lenders and high fixed costs brokers.Only the largest national lenders like Wells, Countrywide Bank,HSBC, Citi, Flagstar, B of A, etc. will survive as they do havetheir own in-house portfolio products that give them a betterprofit margin than selling Agency products. As you can see,most brokers prefer to work with these tier-one … (0 comments)

real estate: Bridger Bowl - 09/30/08 05:50 AM
Bridger Bowl received a new ski lift over the summer and it looks to be awesome.  The lift will provide access to the Slushmans area, which can be dangerous but also a lot of fun.  Hopefully no ones dies over there because the avalanche danger is extremely high in that region.  The mountain should see the lift lines go down but I am sure we will see a run over o the new lift every powder day because that lift access snow is the farthest out so people will undoubtedly ski it first...

real estate: Moon Light Basin - 09/30/08 05:31 AM
I was informed by a source close to moon light that they will not be doing any further mountain development until further notice.  They had a loan with Lehman Brothers that was due and payment was missed so the Mountain expansion has been suspended no new lifts or bathrooms, and the real estate side of things has also been put on hold...More as story develops...

real estate: Bailout why act now? - 09/30/08 05:11 AM
I believe that getting front of the financial crisis will only drag the Federal Government further into the red.  Historically the givernemnt is a reactive measure to combat private sector issues when the free market was unable to solve the problem.  I fear that this time we are only stepping out in front of a speeding train that is eventually going to wreck.  Accept this time the Federal Governemnt is a passanger instead of a on looker of the finacial tradgy.  The plan can stop the enevatible so just let it happen rather than dely it until the winter or early … (4 comments)

real estate: Just so everybody knows no longer GSE's... - 09/09/08 06:09 AM
The proper name is GOE...This will be the new acronym for the two with them now being Governemnt Owned Entities...