Bob 's Blog

Estimated Rates for the week of March 8, 2010*:

30 yr fixed:                                          4.75 - 5.00

FHA/VA:                                               4.75 - 5.00

OR VA:                                                  4.50 w/1.5 pts; 4.625 w/1.0 pt.

Jumbo (30 yr fixed):                           5.50 - 5.75

5/1 ARM:                                              conforming 3.625 - 4.000; jumbo 3.875 - 4.250

Rates are still in great shape. We remain in our narrow range and most think we'll stay this way at least through month-end. We still don't know what will happen when the Fed stops buying mortgage backed securities at the end of March. Most in the market thought that we would see a small increase in rates due to a widening spread between mortgages and U.S. Treasuries. So far, that's not happening. In fact, the spread is narrowing and that's helping to keep rates down. Economic data is coming in mixed but we are seeing signs that the overall economy seems to be improving. I keep my eye on the Consumer Credit report as a way to see if the consumer is out spending. For the first time in 12 months the report showed that consumer credit expanded. What was expected to show a contraction of approximately $6 billion, the report showed that consumer loans increased by almost $5 billion. Although credit card debt was down, personal loans jumped. This could be a sign that the American consumer is feeling more comfortable with the economy and is willing to spend. Remember, over 65% of economic activity in the U.S. is derived from consumer spending.

There has been a lot of discussion about changes in terms and costs with FHA loans. About forty percent or more of the business is going FHA so this is a much discussed topic. So far, we are being told that there will be no change in the minimum down payment requirements - it will remain at 3.5%. The mortgage insurance premiums will be increasing though. The upfront fee of 1.75% will probably be increasing to 2.25% - it's a big increase but it is still able to be included in the loan amount. The annual fee will increase too. Currently, with the minimum down payment, the fee is .55% on an annual basis, paid monthly. We are hearing that this may go to .85%. On a home sold for $200,000 the increase in the loan amount due to the financed up front premium is $965.00 and the total PIMI (principal, interest, and mortgage insurance) goes up by about $55.00 (using a 5% rate on a 30 year term). Although it will hurt a few personal budgets, I am all for it if it keeps FHA financially sound. FHA is an extremely important source of funding for us in the real estate business!

Good news on mortgage activity.....the weekly mortgage loan application report for the week ending February 26, 2010 showed that the Market Composite Index, a measure of mortgage loan application volume, increased 14.6% from one week earlier.  The Refinance Index increased 17.2% from the previous week and the seasonally adjusted Purchase Index increased 9.0% from one week earlier. The refinance share of mortgage activity increased to 69.1 percent of total applications from 68.1 percent the previous week. The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.95% from 5.03%, with points decreasing to 0.99 from 1.34 (including the origination fee) for 80% loans. The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.27% from 4.35%, with points increasing to 1.36 from 1.31 (including the origination fee) for 80% loans.

Enjoy the rest of your week!

Bob Chiodo, CFP

Equity Home Mortgage, LLC

12550 SW 68^th Parkway

Portland, OR  97223

Ofc 503.670.7393

Fax 503.670.7062

www.ResCommLending.com

Apply Here

*Rates quoted are for the use of Realtors and others in the real estate/financial service industries. They are not meant to be a quote for an individual situation. Rates change daily and those above are only listed to assist market participants by keeping them informed of current interest rates. Credit scores, down payment, and other risk related issues may change the rate. Quotes are usually shown for a 30 day lock period and a 1% origination or discount fee.

Estimated Rates for the week of February 22, 2010*:

30 yr fixed:                                          4.875 - 5.125

FHA/VA:                                             4.875 - 5.125

OR VA:                                               4.50 w/1.5 pts; 4.625 w/1.0 pt.

Jumbo (30 yr fixed):                            5.50 - 5.875

5/1 ARM:                                            conforming 3.625 - 4.000; jumbo 3.875 - 4.250

Rates moved up a little last week after the Fed announced that they increased the discount rate to 0.75%. Although the increase was expected, it did surprise the markets and we saw rates increase. Most are saying that the only way for rates to go is up but it won't be a dramatic increase. Probably a slow, steady increase as time goes on. There are no inflation concerns, unemployment is expected to remain high, the economy is slowly recovering, and the Fed will keep rates low for quite some time. Rates will be volatile, however, with an upwards long term trend. The Feds move did signify that they are removing much of the programs that were designed to help stabilize the credit markets which include ending their purchases of mortgage backed securities.

I thought it appropriate to include a rate history flyer this week in addition to the Mortgage Market in Review. This is a nice marketing piece for your clients - please feel free to use it as you wish. As you can see, it wasn't that long ago when rates were in the 6's. It clearly shows that rates are well below any historical average. With the tax credits soon set to expire, we should see a significant increase in home buying over the next two months.

The MBA released its Weekly Mortgage Applications Survey for the week ending February 12, 2010.  The Market Composite Index decreased 2.1%. The Refinance Index decreased 1.2% from the previous week and the Purchase Index decreased 4.0% from one week earlier.  The Purchase Index was 18.4% lower than the same week one year ago. The refinance share of mortgage activity decreased to 69% of total applications from 69.7% last week. The average contract interest rate for 30-year fixed-rate mortgages remained unchanged at 4.94%, with points increasing to 1.09 from 1.06 (including the origination fee) for 80% loan-to-value ratio loans.

A little more on FHA condos: when searching on FHA's web site to determine whether a complex is approved (https://entp.hud.gov/idapp/html/condlook.cfm), you will see the drop down menu that has HRAP/DELRAP or Pre HRAP/DELRAP. Check the HRAP list first to see if the complex is approved. That list also contains additional information such as the amount of exposure FHA has in the complex and when the approval expires (the complex need to be reviewed every two years). If the complex that you are searching for is not on this list, check the Pre HRAP list. Those on the "Pre' list aren't approved by FHA but should be able to without going through the entire approval process. We have had a few complexes that we were able to move from the ‘Pre' list to the current approval list with minor information such as the HOA's tax ID number and the number of units and buildings in the complex.

Have a great week!

Bob Chiodo, CFP

Equity Home Mortgage, LLC

12550 SW 68^th Parkway

Portland, OR  97223

Ofc 503.670.7393

Fax 503.670.7062

www.ResCommLending.com

Apply Here

*Rates quoted are for the use of Realtors and others in the real estate/financial service industries. They are not meant to be a quote for an individual situation. Rates change daily and those above are only listed to assist market participants by keeping them informed of current interest rates. Credit scores, down payment, and other risk related issues may change the rate. Quotes are usually shown for a 30 day lock period and a 1% origination or discount fee.

Estimated Rates for the week of February 15, 2010*:

30 yr fixed:                                         4.75 - 5.00

FHA/VA:                                             4.75 - 5.00

OR VA:                                                 4.50 w/1.5 pts; 4.625 w/1.0 pt.

Jumbo (30 yr fixed):                        5.50 - 5.75

5/1 ARM:                                             conforming 3.625 - 4.000; jumbo 3.875 - 4.250

Mortgage rates remained the same from last week. Rates still under five and holding. For all of the talk and daily volatility, things are fairly stable from week-to-week.

The MBA's application activity report for the week ending February 5, 2010 showed that the refinance index increased 1.4% from the previous week and the seasonally adjusted purchase index decreased 7.0% from one week earlier. The refinance share of mortgage activity increased to 69.7% of total applications from 69.2% the previous week. The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.94% from 5.01%, with points increasing to 1.06 from 1.04 (including the origination fee) for 80% loans. The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 4.33%, with points decreasing to 0.95 from 1.17 (including the origination fee) for 80% loans.

Thought ‘make sense' lending was gone? We just received an approval from our friends at Oregon Dept. Of Veteran Affairs on a loan that had no verifiable income. Don't get me wrong, the loan was rock solid: 800 credit scores, 40% down payment, the borrowers could have easily paid cash for the home, and a ton in reserves. But there really wasn't a verifiable source of income. Most companies said no - all of the above didn't matter. Not the ODVA; they approved it and we were able to get the borrowers a rate of 4.625%! It took a little extra time and effort in packaging the loan but nothing that today's loan originator shouldn't be doing.

We have another 2 ½ months to go until the first time homebuyer credit expires (for transactions under contract). That $8000 is certainly a big incentive for the first timers to get out there. I have talked to a few buyers who didn't realize that being a first time buyer meant that they couldn't have owned a home in the last three years - they didn't know there was a time limit. Let's make sure that all of our contacts realize that! Also note, for those with no down payment, we can use the VA program (for our veterans), the USDA (for those in smaller communities), and we can do an 80/20 in the Portland area for those in the lower-to-middle income brackets. In Portland, the Portland Housing Center can offer a 20% purchase money second in conjunction with a first mortgage supplied by your favorite broker. To qualify for any home in Multnomah and Washington counties, the borrower(s) must have household income of no more than $39,200 for singles, $44,800 for two, and for $56,000 for a family of four (other limits are applicable). For households over those limits, homes can be purchased in those counties as long as the property is located in a qualified low-to-moderate income census tract. Income limits are higher.... $49,000 for single, $56,000 for two, and $70,000 for four.  Do you have a listing that is located in a low-to-moderate census tract? It might be good to know. This web site might be able to tell you:  http://www.ffiec.gov/Geocode/default.aspx  Agents and mortgage brokers should check with their local housing authorities to see if they offer something similar.

Cheers!

Bob Chiodo, CFP

Equity Home Mortgage, LLC

12550 SW 68^th Parkway

Portland, OR  97223

Ofc 503.670.7393

Fax 503.670.7062

www.ResCommLending.com

Apply Here

*Rates quoted are for the use of Realtors and others in the real estate/financial service industries. They are not meant to be a quote for an individual situation. Rates change daily and those above are only listed to assist market participants by keeping them informed of current interest rates. Credit scores, down payment, and other risk related issues may change the rate. Quotes are usually shown for a 30 day lock period and a 1% origination or discount fee.

Estimated Rates for the week of November 16, 2009*

30 year fixed                      4.50-4.75

30 year jumbo                    5.50 to $500k; 5.75 - 5.875 above

7/1 ARM                             4.00 - 4.25 various programs are available

FHA/VA                               4.75 - 5.00

OR Vet                               4.50 w/1.50 - 4.625 w/1.00

It's been a while since my last update but it's certainly not due to a lack of news in the mortgage world. As you can see, rates are still down and doing great. We all know that these won't last forever but we should remain in a narrow range for the next month or so. And since the 1^st time homebuyer tax credit was extended, I think buyers should immediately consider taking the necessary steps to get their first home. 

I thought I would take a moment to talk about the impact foreclosures and the alternatives to foreclosure have on a consumer's credit. This is meant to be just a guideline - lenders can and will have their own rules and these rules change often.  On the research that I have done, it appears that most lenders - as well as the credit bureaus - treat a foreclosure, short sale, or deed-in-lieu of as the same in terms of the impact it has on a borrower's credit profile. After speaking with an underwriter, it appears that FHA requires that a foreclosure or the alternative to be three years before new financing can take place. For VA, it looks like it is two years. Conventional is more convoluted. Per a recent Fannie Mae announcement, foreclosures have a 5 year time frame with additional requirements up to 7 years (principal residence only, 10% down and a 680 credit score). Deed-in-lieu of's are 4 years with additional requirements up to 7 years. It appears, however, that short sales have only a two year waiting period. Most of these rules do allow exceptions for extenuating circumstances - which, of course, is very subjective. Now, of course, all of these programs require certain credit scores - conventional being higher than FHA. If the credit bureau dings a consumer's credit hard for a short sale - as I heard that they do - the loan won't be able go through with the poor scores. So we are back looking at an FHA loan with the three year wait period. I have also heard that some of the banks are going after borrowers after the short sale is completed and requiring the borrower to cover the short fall. If the credit hit is considered the same and the bank tries to collect on the short amount, it makes one wonder why a borrower would do a short sale in the first place. In any of the above circumstance, the key thing for a consumer to do after completion of a foreclosure (or alternative) is to immediately start rebuilding their credit. Getting a secured credit card would be a great start and working with someone is specializes in this area could well be worth the time and effort.

For homeowners facing foreclosure in Oregon, the state recently passed a bill that requires lenders to meet with borrowers either by phone or in person to evaluate whether the homeowner qualifies for a loan modification. Oregonians should watch their mail for the new notice. They have 30 days to act from the date of the notice to request a loan mod. Once received, they should call their lender to set up a meeting, complete the request form provided in the notice and call 1-800-SAFENET and ask for a referral to a nonprofit foreclosure counselor to help with the modification. 

There is a lot more going on then time and space warrant. Fannie and Freddie are about to tighten up on their debt ratios and FHA just published their new condo rules - spot approvals are still good through the end of January. Fannie just released their Deed-for-Lease program which will allow for homeowners to rent back their home after completing a deed-in-lieu of to Fannie. And, of course, a huge change is about to happen January 1 when the new RESPA guidelines take place. More about all of this later.

Thanks for reading and have a great week!

Bob Chiodo, CFP

Equity Home Mortgage, LLC

12550 SW 68^th Parkway

Portland, OR  97223

Ofc 503.670.7393

Fax 503.670.7062

www.ResCommLending.com

Apply Here

*Rates quoted are for the use of Realtors and others in the real estate/financial service industries. They are not meant to be a quote for an individual situation. Rates change daily and those above are only listed to assist market participants by keeping them informed of current interest rates. Credit scores, down payment, and other risk related issues may change the rate. Quotes are usually shown for a 30 day lock period and a 1% origination or discount fee.

*Estimated rates for the week of July 14, 2009

30 year conforming                         5.00 - 5.125        

30 year jumbo                                5.75 to $600k

7/1 ARM                                         4.875 - 5.125   conforming and jumbo

FHA/VA                                           5.25 - 5.50

OR VA                                            4.75 w/1.50 or 4.875 w/1.00

Rates are down a little from my last report. We even had a few days last week with rates under five! It didn't last long but we are hoping that a new range is set - rates from 5.00 to 5.50. Based on the mixed economic data of late, many analysts are thinking that we'll stay in the low five's over the next month or so. No complaints here.....of course, market sentiment can  - and does - change very quickly.

In my last report I discussed the petition that is out there to reverse HVCC. If you haven't signed it, please check the site out and add your signature. Here's the site: http://www.hvccpetition.com/  There is no question that the intention of HVCC is good but the outcome hasn't been. The process has slowed down transactions and appraisal fees have significantly increased. And, although the HVCC calls for portability of the appraisal, most lenders aren't allowing it. That places a limit on brokers being able to shop a loan.

In addition to regular 'forward' mortgages, my firm and  I originate reverse mortgages. These products have also gone through a lot of changes recently. These are great products for the right people. There is a much improved fixed rate reverse mortgage on the market now. The rate is only 5.56% - this lower rate allows for more money to the borrower. And remember, reverse mortgages can be used for purchasing a home too.

Recently, FHA has announced some major changes in their condo approval process. These changes are effective in October. Looks like the spot approval process is going away. Also, the list that we use for approved condo's is changing. It appears that anything on that list approved from October of 2008 is valid but all the others (and there is a lot of them) need to be approved again. When this occurs, we will all have to recognize the additional time and expense in getting the projects re-approved.

Speaking of changes, Freddie Mac just posted a bulletin last Friday which will significantly change some of their underwriting guidelines. Given the market that we are in, these changes aren't designed to loosen up things. Although these changes are mostly effective for applications dated October 1, 2009, lenders are recommended to begin implementing these changes immediately. I'll update you on the significant changes as we become more familiar with them. Why do I think we will see a similar memo from Fannie Mae? Thank goodness we are all adjusting very well to change. I think, in a past report, that I said that we need to embrace change instead of fighting it. Isn't it great that we have so much to embrace!

With all of the changes coming along, I would think that those buyers that are still on the sidelines would want to take advantage of the current market. Rates won't hold at this level for that long and we have just a few months until the first time buyer credit expires.

Have a great week!

Bob Chiodo, CFP

Equity Home Mortgage, LLC

12550 SW 68th Parkway

Portland, OR 97223

(503)670-7393

fax: (503)670-7062

bobchiodo@equityhome.com

www.ResCommLending.com

*Rates quoted are for the use of Realtors and others in the real estate/financial service industries. They are not meant to be a quote for an individual situation. Rates change daily and those above are only listed to assist market participants by keeping them informed of current interest rates. Credit scores, down payment, and other risk related issues may change the rate. Quotes are usually shown for a 30 day lock period and a 1% origination or discount fee.

Estimated rates for the week of April 6, 2009

30 yr conforming              4.625                    

30 yr jumbo                     5.750     (to $600,000)     

7/1 ARM                          4.875     (conforming and jumbo)                                             

VA/FHA                            5.000    

Rates are still great. Anything that starts with a four in it is fine with me! You may notice that I have removed the Oregon State Bond loan and the Oregon Veterans Loan from the rates. The Bond program has stopped taking new applications. They mentioned in an email to us that, if they went to the market to borrow more money to lend, the rates would have to be higher than the current conventional rates. Rightfully so, they didn't see much of a point in it. Although the Oregon Veteran loan has funds available, their rates are higher than the current VA rates. And since the Oregon program requires mortgage insurance as opposed to the Federal VA's funding fee, I thought it better just to list an estimate for current FHA/VA rates.

Looks like the Making Home Affordable program is just starting to get underway. This will allow a borrower to refinance an existing loan that is owned by Fannie Mae or Freddie Mac to a lower rate even if the equity position has decreased. For the most part, the costs are the same as a regular refinance but there is a lot more flexibility. For instance, if a borrower originally put 20% down but now find themselves over 80%, the new refinance will not need to have mortgage insurance. Each agency has their own rules. To find out if the loan is owned by Fannie or Freddie you can use the following web sites:

http://loanlookup.fanniemae.com/loanlookup/

https://ww3.freddiemac.com/corporate/

Most originators can refinance a  Fannie Mae owned loan.  The Freddie Mac owned loans need to go back through the mortgage servicer. However, brokers may be allowed to broker those loans back to that servicer. Since my company has a relationship with Wells Fargo, I can send both the Fannie and Freddie refinances to Wells.

I have said many times before that there is money out there to lend. But there are still some underwriting changes occurring. Debt-to-income ratios are tightening up. On loans over 80% of value, we are seeing the mortgage insurance companies and the lenders reduce the maximum debt ratio to 41-45%.  For most of our clients, this doesn't hurt at all. The vast majority of people I do business with actually qualify for a lot more than they can afford. There are those special circumstances, however, that the lower debt ratios will hurt.

One quick reminder about FHA reverse mortgages. The loan limits have been temporarily increased to $625,500. This will allow those in the higher priced homes to tap more of their equity than current limits.

To end today's report, take a look at the following paragraph. Through the course of a week I receive and read a lot of different analyst's reports. This paragraph comes from Sigma Research, it's the Shirmeyer Rate Market Report (sigmaresearch@earthlink.net). There is a very wide consensus within the market that rates will have to  increase. Pay particular attention to the last sentence....and get the word out, especially to the first time buyers.

"Today estimates from UBS, one of the 16 primary dealers, said over the coming month, the government will auction 10 securities and raise roughly $215B, more than net Treasury borrowing for all of the 2007 fiscal year. Just in the past two weeks, including the 2 auctions coming in the next two days, Treasury will have sold a total of $192B in notes---not including issues with terms less than 2 yrs. A massive hurdle for longer term rates to overcome, and likely will keep interest rates from declining much. And that isn't the end; the longer the US economy is in recession the more Treasury will borrow. Looking way out (after this recession bottoms) interest rates are going to climb rapidly as the deficits amount to unimaginable % of GDP. Now is the time to buy a home or secure long term debt rates."

Have a great week.

 Bob Chiodo, CFP

Equity Home Mortgage, LLC

12550 SW 68th Parkway

Portland, OR 97223

(503)670-7393

fax: (503)670-7062

bobchiodo@equityhome.com

www.ResCommLending.com

*Rates quoted are for the use of Realtors and others in the real estate/financial service industries. They are not meant to be a quote for an individual situation. Rates change daily and those above are only listed to assist market participants by keeping them informed of current interest rates. Credit scores, down payment, and other risk related issues will change the rate. Quotes are usually shown for a 30 day lock period and a 1% origination or discount fee.

Estimated rates for the week of March 17, 2009

Conforming 30 yr fixed                                  4.75 - 5.00           

Jumbo 30 yr fixed                                         5.75 to 600K

7/1 ARM                                                       4.75 - 5.00 jumbo and conforming

Oregon Bond                                                 4.50  conventional and FHA

Oregon VA                                                     5.25 w/1.50 or 5.375 w/1.00

Rates aren't moving much -  they are staying in a very tight range. My guess is that we will continue to see this range throughout the year. Looks like the market is thinking that the Fed likes the 3.00 (or below) rate on the 10 year Treasury. That's keeping our mortgage rates steady. Personally,  I am very happy to see the rates stay in this range. Getting a rate with a four in front of it is great. The longer it lasts the better.

We have been seeing the beginning signs of an end to this recession. Housing starts throughout most of the country were up big - here in the West they down though. Better for us to get the inventory levels lower. The stock market may have put a bottom in. We are up about 10% from the lows and hit a monthly high today. We have had a number of the 'too big to fail' banks state that, so far this year, they are profitable. That's a good sign and one that hopefully means they could start lending more. The current 'mark -to-market' policy is up for a revision. That will definitely help the banks with their profitability and their desire to increase their lending. And yesterday it was announced that as part of the Financial Stability Plan, among many other items,  there is now the ability for small business owners to carry-back their losses for up to five years, effectively allowing them a rebate on taxes paid in previous years. That could put some money into the hands of the self-employed. You add all of these together along with Mr. Bernanke's recent comments and one can see that things are starting to get better.

As for our mortgage business, it looks like most of the lenders are finally getting caught up. Transactions can be difficult but they are getting done. The Administration's Home Affordable program should be out to the masses soon and there's a good chance that it will prevent many foreclosures. Come April 1, FHA will limit cash-out refinances to 85%. There is talk about some mortgage insurance companies restricting debt-to-income ratios further for the loans that they insure. Looks like some will max it out at 41%. All the more reason to accept FHA financing - remember that FHA now goes to $417,000 in our tri-county area. As far as appraisals are concerned, it looks like the new Home Valuation Code of Conduct will be out and enforced in May. Come April 1st, all appraisals on Fannie and Freddie loans will be required to complete a Market Conditions Addendum. This form requires much greater detail on current marketing times, absorption rates and inventory analysis. Although I haven't heard from any appraisers, I wouldn't be surprised to see an increase in their fees and a small delay in the completion of the report.

That's all for this week. Please feel free to email or call if you have any questions.

Bob Chiodo, CFP

Equity Home Mortgage, LLC

12550 SW 68th Parkway

Portland, OR 97223

(503)670-7393

fax: (503)670-7062

bobchiodo@equityhome.com

www.ResCommLending.com

*Rates quoted are for the use of Realtors and others in the real estate/financial service industries. They are not meant to be a quote for an individual situation. Rates change daily and those above are only listed to assist market participants by keeping them informed of current interest rates. Credit scores, down payment, and other risk related issues may change the rate. Quotes are usually shown for a 30 day lock period and a 1% origination or discount fee (1.75% for the Oregon Bond).

Estimated mortgage rates for the week of November 17, 2009

30 yr conforming                              5.750 - 5.875

30 yr jumbo                                     6.25% to a $600k

7/1 ARM                                          5.625 - 5.750  Conforming and jumbo

OR State Bond                                 6.250  FHA and conforming

OR VA                                             5.875 + 1.00/5.750 + 1.50

As you can see, rates are holding steady. We have seen rates come down a little over the last few days. Loans are still being made. In fact, the service levels are some of the best we have seen in a long time. We were able to close a transaction - from start to finish - in 6 working days. Considering that the last day was to have the deeds record, we really did it in five days!

News in our industry has been centered on borrowers' qualification standards, in particular, debt-to-income ratios and paperwork requirements. We are all aware that stated income loans are a thing of the past. However, both Fannie and Freddie have allowed us to use limited documentation for many of our better qualified borrowers. Looks like that is changing. Both agencies have announced elimination of reduced/minimal documentation and verbal verification of employment. Standard documentation will apply come the middle of December. This shouldn't have much of an impact for most of us. Many lenders have already moved in this direction and many loan originators (myself included) have already been requesting full documentation of income and assets.

The reduction in debt-to-income ratios will cause more concern, however. Freddie is implementing a maximum of 45% debt-to-income ratio (there is no word from Fannie or FHA as of this writing). Combined with more stringent documentation requirements, we can see that some borrowers won't be able to qualify for a loan that, just a month or two ago, they would have easily qualified. Not to be repetitive but we are back to the old days...again. I remember working with many clients over a three or six month period - even longer in some cases - to get them to be in a position to qualify for a loan. Helping clients make a budget, figuring out ways for them to pay off debts - and the right debts, trying to them to save money....these are things we all used to do. Personally, I enjoy assisting people in managing their personal finances. It does take more time but, thankfully, that is something that we have plenty of.

Have a great week!

Bob Chiodo, CFP

Equity Home Mortgage, LLC

12550 SW 68th Parkway

Portland, OR 97223

(503)670-7393

fax: (503)670-7062

bobchiodo@equityhome.com

www.ResCommLending.com

*Rates quoted are for the use of Realtors and others in the real estate/financial service industries. They are not meant to be a quote for an individual situation. Rates change daily and those above are only listed to assist market participants by keeping them informed of current interest rates. Credit scores, down payment, and other risk related issues may change the rate. Quotes are usually shown for a 30 day lock period and a 1% origination or discount fee (1.75% for the Oregon Bond).

Estimated rates for the week of 10/13

30 yr conforming                              6.25-6.50

30 yr jumbo                                     6.125 to $600k

7/1 ARM                                          5.625 - 5.75  for jumbo too

OR State Bond                                  5.750  Conventional or FHA

OR VA                                              5.50 but we hear it could increase very soon

  As you can see by the above, rates have moved up. We have two competing themes for the rate markets. The first is the slowing U.S. and world economies. That should be helping to ease rates down. The opposing side is that the U.S. Treasury needs to borrow a lot of money to fund the recent legislative bills. Treasury has to come up with around a trillion dollars. Using those basic Economic 101 principles of supply and demand and that interest rates determine the price of money, rates have to go up. So far, the latter is what we are seeing. It's still extremely volatile out there but it does look like we have turned the corner on the panic in the financial world. There is still much work that needs to be done but at least the light is back on at the end of the tunnel.

 Let me assure everyone who reads my Update that we are still able to close loans. Although underwriting guidelines have gone back to the old days, we  haven't had any issues on getting the money to close transactions. None. The mortgage business is still fully operating  and "business as usual' is what we see. With the events that occurred over the weekend, many pundits are thinking that the worse is behind. Still too early to call but it definitely appears that way. It looks like all of the developed countries (and many of the less-developed countries) are all on the same page now.  There is no question that the events of the last few weeks are destined for the history books and that there will be significant changes as to how the business world will operate. With that said, I for one am done dealing with all of the stress that this has brought on. It's time to go back to business and do what we all do best! I think it's also time for us all to take a refresher class on the basics. Regardless of what business we are in, we all need to focus on those basic business principles that we first learned....good customer service, personal discipline, and hard work.

Enough of the pep talk speech. Have a great week.

Bob Chiodo, CFP

Equity Home Mortgage, LLC

12550 SW 68th Parkway

Portland, OR 97223

(503)670-7393

fax: (503)670-7062

bobchiodo@equityhome.com

www.ResCommLending.com

 *Rates quoted are for the use of Realtors and others in the real estate/financial service industries. They are not meant to be a quote for an individual situation. Rates change daily and those above are only listed to assist market participants by keeping them informed of current interest rates.  Quotes are usually shown for a 30 day lock period and a 1% origination or discount fee.

Estimated rates for the week of September 29, 2008.

30 yr conforming                                           5.750 - 5.875
30 yr jumbo                                                  6.125 to $600k  
7/1 ARM                                                       5.875 - 6.000
OR VA                                                          5.500
OR State Bond FHA                                        5.750

Obviously, most of the news today surrounds the House of Representatives failure to pass the bill that would  have re-capitalized our financial system. Investors around the globe showed their displeasure by dropping stock prices in a very dramatic fashion. Hopefully, many of those who opposed the legislation will now understand what's involved if this bill - or one similar to it - is not passed. And it needs to be sooner and not later.

I have been asked a number of times today whether we can lend money. As I mentioned last week, there is still money out there to lend and we are finding it. The recent turmoil hasn't made it easier but we - and many other lenders - are still at it. Rest assured, if the buyer/borrower is qualified, we can get them financing.

For those who want to understand the how's and why's of the recent turmoil more than the local news can give you, I have attached an article for you to read. It comes from a gentleman who has an excellent grasp of the situation. It can be a little difficult at times, but it does a great job of covering how we got here and where we are going. It's from John Mauldin, Best-Selling author and recognized financial expert, who is also editor of the free Thoughts From the Frontline that goes to over 1 million readers each week. For more information on John or his FREE weekly economic letter go to: http://www.frontlinethoughts.com/learnmore

  ****Since I can't attach the document to this blog, please email me and I will forward it directly to you. Sorry for the inconvenience.****

Of course, his isn't the only opinion of where we go from here....especially since the bill didn't pass the House. I am currently reading another analyst's opinion that states that it could be good that the bill didn't pass. Here is a quote from his letter :  "Congress would be much better advised to take the extra few days or week it would take to structure a plan that the world is going to have to live with for a very long time" (1)  Personally, I hope that Congress passes the bill and then allow the necessary regulation of Wall Street to follow.

Although the financial news is very unsettling, we will get through this. It will take some pain but we will come through it stronger and better. Don't let the financial issues of today take any more control of your life than necessary. Maintaining good personal health, keeping family relations strong, and doing the right thing for your clients and yourself is where our focus should be. Thanks for reading!

Bob Chiodo,
Equity Home Mortgage, LLC
12550 SW 68th Parkway
Portland, OR 97223
(503)670-7393
fax: (503)670-7062
bobchiodo@equityhome.com
www.ResCommLending.com

*Rates quoted are for the use of Realtors and others in the real estate/financial service industries. They are not meant to be a quote for an individual situation. Rates change daily and those above are only listed to assist market participants by keeping them informed of current interest rates.  Quotes are usually shown for a 30 day lock period and a 1% origination or discount fee.

(1) Michael Lewitt of Hegemony Capital Management. Article titled "Haste Makes Waste" as printed in John Mauldin's Outside the Box. Vol 4, Issue 48, September 29,2008.