Mike Berrios CMPS, CMA, CLA

Did you know if a Veteran has served 90 days of any part in 2009 active overseas they qualify for the extended tax credit? Their extension is until May 2011 and if they get relocated and have to sell the home, they do not get penalized for selling sooner than 3 years!

Call or email me for more information

(909) 945-8155

mberrios@ihfinance.com

Close your Home Loan with Integrity Home Finance,.. if you lose your job...Your payment is covered for 6 Months! At NO ADDITIONAL COST*

We are proud to offer you our Homeowner Education and Loan Protection service (HELP).

There are many homeowners who during their first few years of home ownership encounter short-term financial difficulties. These challenges often lead to missed mortgage payments and maybe foreclosure. Suddenly the dream of homeownership is not as fulfilling as once thought.

This is where our HELP program comes in to play. This service is provided our Charitable Foundation and is a safety net for homeowners who need protection from the unexpected.

Mortgage Protection Program - (Job Loss Insurance) Program covers up to 6 months of mortgage payments; should the homeowner become involuntarily unemployed during the first 12 or 24 months of homeownership. (length of policy varies on eligibility of program)

Emergency Assistance Program - During the first year or so of homeownership, you may have available an emergency pool of funds to assist homebuyers in keeping current or making them current on their mortgage payments.

Post-closing Communication and Education - The program also includes 24 months of financial and educational resources in an effort to assist in maintaining timely mortgage payments and tools to maintain financial wellness.

Click HERE for More Information

Article from Larry Kudlow.

In a monetary version of shock-and-awe, the Federal Reserve unleashed a massive easing move with its FOMC policy announcement Tuesday - one that represents a sea change in central-bank operations.

For starters, Bernanke & Co. established a new target range for the federal funds rate of zero-to-one-quarter percent. That's right: zero-to-one-quarter percent. In doing so, the Fed is abandoning its fed funds target and essentially following Treasury bill rates in the open market, which have been trading close to zero for many weeks. The Fed also signaled the near-zero funds rate could last for "some time."

However, the really big news is not the fed funds target. It's this sentence:

"The focus of the Committee's policy going forward will be to support the functioning of financial markets and stimulate the economy through open market operations and other measures that sustain the size of the Federal Reserve's balance sheet at a high level." (Italics mine.)

The Fed goes on to say it will purchase large quantities of agency debt - meaning Fannie and Freddie - and more mortgage-backed securities (quite possibly toxic assets). In other words, it wants to drive mortgage rates down. What's more, the Fed may buy long-term Treasury securities, also to drive bond yields lower. And it will purchase the Term Asset Backed Securities Loan Facility in order to finance consumer-related bonds and pump liquidity to consumer lenders.

The message here is that Bernanke & Co. is locked and loaded, ready to shoot every last bullet to help credit markets and the economy. In particular, the Fed is formally adopting a Milton Friedman-type approach that is directed at expanding its balance sheet and stimulating the economy.

The Fed's balance sheet already has more than doubled from roughly $900 billion to $2.2 trillion. For all we know it may soon double again. Money-supply measures are already growing at 7 to 8 percent.

And while some economists worry about higher future inflation from all this money-creation, Tuesday's consumer price report actually showed deflation of 10 percent annually over the past three months. That gives the central bank ammunition to ignore inflation and aim instead for a massive monetary easing.

Will it all work? In the short-run it may. But is a near-zero interest rate, and even more pump-priming, really the best longer-term solution? It's still troubling that Fed policy lacks a true anchor or compass. In the past, targeting the economy alone has resulted in higher inflation. That's why many conservatives wish the central bank would keep a sharp eye on the value of the dollar and commodity prices (including gold).

While energy and other commodity prices have experienced a wicked plunge since the summer, in recent days - ahead of the Fed's new policy decision - the dollar has fallen and commodities have rebounded. But the question is this: In the future, will the Fed be able to unwind its huge cash-liquidity injections? The same can be asked about government bailouts for banks and quite possibly Detroit. Yes, this is an emergency. But it's also unprecedented government intervention in the economy. How we restore traditional free-market capitalism remains unsaid and unknown. That is worrisome.

Stocks cheered the Fed's move by rallying nearly 400 points on Tuesday. Savvy investors Ken Heebner and Robert Doll - two financial and political conservatives - strongly endorsed the Fed moves on CNBC. This massive easing almost certainly underscores the likelihood that stocks bottomed on November 20. Both the monetary surge and the upturn in equities are pointing to economic recovery next spring or summer.

Meanwhile, on the fiscal policy front, everyone has been focusing on Obama's huge big-government-spending infrastructure play. But Team Obama is also drawing up plans for a massive purchase of mortgages in order to get long-term borrowing rates down to 4.5 percent - a full percentage-point drop. The specifics are sketchy, but there's no question the Obama Treasury, led by Tim Geithner, will be working hand-in-glove with Geithner's former Fed boss Ben Bernanke to drive down mortgage rates and stop the housing slump.

Perhaps Bernanke himself scored a few points with his historic shock-and-awe easing move. It's as though Bernanke is telling the new president: Hey, I'm on your team.

But I still believe the best economic stimulus would be a move to cut tax rates across-the-board for individuals and businesses. No matter how much money the Fed prints, or how many roads or mortgages Uncle Sam buys, none of it creates new incentives for private enterprise, risk-taking, and investment.

To complement the Fed's easy money, permanent tax cuts would increase the production and investment that would soak up the excess money and create non-inflationary growth. Alas, supply-side tax cuts are nowhere to be found right now.

In response to the passing of HR 3221, this update announces FHA's new Mortgage Insurance Premiums for the period of October 1st, 2008 through September 30th, 2009. FHA's Risk Based Premiums that went into effect on July 14th, 2008 will be on hold till October 1st, 2009. Here are the 6 things you need to know about these changes... 1. Upfront Mortgage Insurance Premiums:

A. Purchase Money Mortgages and Full-Credit Qualifying Refinances = 1.75 % B. Streamline Refinances (all types) = 1.50 % C. FHASecure (Delinquent Mortgagors) = 3.00 %

2. Monthly Mortgage Insurance Premiums:

A. For 30 year loans with LTV > 95 %, monthly will be .55% B. For 30 year loans with LTV < 95%, monthly will be .50% C. For 15 year loans with LTV > 90%, monthly will be .25% D. For 15 year loans with LTV < 90%, monthly will not be required E. For FHA Secure loans with LTV > 95%, monthly will be .55% F. For FHA Secure loans with LTV < 95%, monthly will be .50%

3. Mortgages with FHA case number assignments made on July 14,2008, through and including September 30,2008, shall maintain the risk-based premium structure for the life of the mortgage 4. FHA will issue another notice that will formally advise when the moratorium is concluded and the premium pricing structure that should be followed once the moratorium ends 5. Credit Scores

A. Borrowers with credit scores below 500 will require an LTV of 90% or less B. Borrowers with 3 scores, the middle score is used C. Borrowers with 2 scores, the lowest score is used

6. These premium changes apply to the folllowing FHA loan programs: 203b (standard 1-4 unit property), 203k (rehab loan), and 234c (condominiums) and do not apply to FHA reverse mortgages We are still awaiting more changes in response to HR 3221 so watch for future updates.

Mike Berrios

Hello Everyone,

We received notice from the City of Rancho Cucamonga they have been awarded additional funding for this fiscal year July 08 to July 09. Please contact us if you have any questions. Please note that these funds are first come first serve. Homes must be in the attached area and must be REO or Foreclosed. I've also attached information on the $7500 credit they would receive in addition to this assistance. Please feel free to forward this to anyone who may have use.

Mike Berrios

Integrity Home Finance

(909) 945-8155

www.IntegrityHomeFinance.com