JohnsBlog (articles, news, thoughts, advice)

Sorry for the delay in posting, I've been integrating into my new position as closing coordinator while trying not to skip a beat on my customer service.  It's translated into abnormally long hours with little time for anything (which unfortunately has effected my writing)

So since last time the good ole boys at the Fed have gone and cut the rate an additional .25%, and they are now a full .75% lower than they were prior to September 18th.  Credit card holders rejoice!!!...everyone else...dont panic yet.  This could prove to be a good move, but as I said before, I'm using caution in my judgment, as inflation seems to be on the rise, with the US dollar at its lowest level compared to the Euro and Japan showing signs of a pull out from US monetary investments.  Gold is up, oil prices are WAY up, and the stock market is on a run away roller coaster ride taking casualties.  Citi and GM have been two of the most recent corporate giants showing signs of trouble.

Fortunately, with Citigroup reporting trouble, they have launched Citi Residential Lending, a new lender for those with less than perfect credit.  The programs of a year ago where anyone could get a loan are nowhere close to back, but we're seeing some light and a bit more breathing room.  Other lenders have faltered however, with programs at one major lender (I wont mention names, but Chase) being pulled back on stated income borrowers. FHA loans seem to be saving the day in many cases for those with poor credit histories or scores, and could play hero for a long time to come, we shall see.

We launched our 38 state program, and thats steadily taking hold, and our production here seems to be great in a market that isnt doing so hot right now.  Im a happy camper.

Toys for Tots campaign in Newark, DE

This was taken from the community website at www.cityofnewarkde.us.  Thought it would be a good idea to post it as there are lots of folks in need out there, and now's the time of year when giving to others should be at the forefront of our agendas.

You can also go to http://www.toysfortotsphila.org/ to check out info on toys for tots in the Philadelphia region. 

so with stocks dropping and the country seemingly headed towards a (delayed and very slowly pending) recission, mortgage bonds have been receiving friendly support, thus dropping rates.  I can currently offer a 5.625% on a 30-year fixed mortgage, which I haven't been able to do (without a client paying for it) for many months. 

Unfortunately, these low rates are not coupled with skyrocketing appreciation as they were 3-6 years ago, however if there is a good amount of equity in your home and you have decent credit, it may be well worth your while to give me a call. 

There are also programs in place which could be very beneficial to investors looking for short-term loans.  I have 3/1 ARMs with rates down to 5%, 5/1 ARMs down to 5.125%, etc.

So there is an act that was passed this morning, brought to life by a Democrat from North Carolina (and for a while there I thought I was on the Democrats' side), which will shake the housing market and mortgage industry down to its very foundation.

This act basically puts the government in control of who lenders can lend to.  I will not get into great detail (unless someone would like a full explanation, which I'll readily give upon request) but this act will destroy the way many reputable mortgage brokers do business, and will harm consumers by limiting competition in the marketplace and making it much more difficult to obtain home financing.  Yes, I believe something must be done to correct the market, but so far as government intervention, its too little too late, and they're trying to save face.  Where was the government when the many lenders now out of business were offering and funding predatory loans?  Where is the government for those in foreclosure for no good reason?  Where has the government been during this entire downfall of the housing market, leaving countless people out of work and now showing the ugly face of its economic fallout?  The government didnt care then, and it doesnt really now.  The people proposing this bill have little education on the mortgage industry, and although their bill sounds great when they describe it, its a far cry from even ok.  There is little benefit, and that little benefit is greatly overshadowed by vague language, non-sensical proposals, and an obvious "look at us trying to do something about the housing market at any cost to save face" attitude. 

I advise anyone out there who is a homeowner or who plans to be a homeowner to write to your representatives, call your representatives, picket outside of your reps offices, whatever it takes, to assure this act does not even make it to the Senate (it will officially be sent to the house based on a meeting held this morning).