Rates & Updates March 30, 2009

The Government is not going to bail out GM at this time; they may come back later if a bankruptcy has been filed so that they can be in a better position. Here is how the market reacted: The DOW is down almost 300 points and we are seeing a flight to quality into MBS and treasuries this morning, improving rates and recovering most of the losses from the Friday afternoon attempt to sell off both equities and MBS.

The rest of this week will bring more volatility as the calendar is packed...tomorrow is quarter end and the jobs report is on Friday.

CREDIT SCORES-This is a BIG change FHA, VA, USDA and most conventional loans now require a 620 credit score. It is more important than ever for borrowers to be pre-approved and credit reports pulled.

REFINANCES-As of April 4, 2009 current Fannie Mae loans with old loan to values under 80% can refinance into another Fannie Mae loan without mortgage insurance. This will work well with properties that have lost value but the borrowers want to take advantage of the lower rates. Mortgage brokers will be able to go online and find out if your loan is a Fannie loan. Freddie Mac will allow this through your current lender.

OREGON BOND-Oregon Bond is about out of money - they will take reservations but will not guarantee funds. This money will be replenished but no date for when that will happen has been set yet.

MANUFACTURED HOMES- Are not restricted on FHA/VA loans to homes that are newer than 15 years old.

APPRAISALS- Possible changes effective May 1, 2009 regarding the ordering of appraisal. The idea is to limit contact between the Brokers/Realtors and appraisers. Evidently it is felt that Brokers/Realtors have too much influence on the appraisers and the values given. This is supposed to be a major change and could affect closing times.

I have worked with several mortgage brokers in Yamhill County, if you would like to contact a good broker, give me a call and I would be happy to supply you with the names of a few quality brokers.

Sandy Mitchell: sandy@thekellygroup.net or 503-502-6408