mary taylor

Mary Taylor Sales Manager/Mortgage Consultant National City Mortgage Phone: (503) 261-7334 Fax: 503-255-8924 mary.e.taylor@ncmc.com www.ncmc.com/marytaylor

Tips to Avoid Identity Theft Identity theft is now passing drug trafficking as the number one crime in the nation-with more than 15 million victims every year. Rather than lie awake at night worrying and wondering if your identity has been stolen, you can actually take a simple step to protect yourself...it's called a credit freeze (or, sometimes, a security freeze). According to the U.S. Department of Justice, about 1.6 million households have experienced some form of theft when it comes to their financial accounts. Here are some important tips for keeping your information safe and sound: Just the Facts. Don't give unnecessary information like your date of birth and income level when you're filling out things like warranty cards or supermarket club cards. Share only what's really necessary in every situation. Navigating the Net. Never post your address or your full date of birth on any social networking sites because both are pieces of information needed to steal your identity. Searching for a Job? Never give a potential employer your Social Security number on an Internet job site. Also, thoroughly read the privacy policies of any online job boards to make sure they won't sell your information. Safe Keeping. Never keep your Social Security number in your wallet, glove compartment, or any other easy-to-access place. Also, never have it printed on your checks or use it as your password. Shred 'Em. Remember, when you're ready to get rid of old documents that contain important information, shred them with a cross cut shredder. Protect Your Mail. If you have to mail something that contains sensitive information, use a secure mailbox (not the one at the end of your driveway). The bottom line is this: When it comes to your personal information, share it on a need-to-know basis only!

Mortgage Interest Rates*

Rates as of Friday, 17th April, 2009:

Conforming APR Payment per $1,000 Jumbo APR Payment per $1,000 30-Yr. Fixed 4.875% 5.005% $5.29 % 0.000% $0.00 15-Yr. Fixed 4.375% 4.598% $7.59 % 0.000% $0.00 30-Yr FHA 4.75% 4.879% $5.22 % 0.000% $0.00 30-Yr VA 4.75% 4.879% $5.22 % 0.000% $0.00

*Rates are subject to change due to market fluctuations and borrower's eligibility.

All loans subject to credit approval and property appraisal. Programs, rates, and terms subject to change without notice. For ARM loans, rate may increase after settlement. Prequalification is not a commitment to lend, a condition of loan approval, or an application for credit. Pre-approvals will result in a loan decision subject to conditions. Consult a tax advisor regarding the deductibility of interest.-- a Division of National City Bank

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Mary Taylor
National City Mortgage
10011 SE Division Street, Suite 200
Portland, OR 97266

© Copyright 2009. All About News, Inc.

FHA Responds To Declining Markets

This update from Mortgagee Letter 2009-09 establishes appraisal requirements for declining markets.

Here are the 10 things your appraiser must do or provide for all FHA appraisals done after April 1st, 2009:

1. The Market Conditions Addendum (Fannie Form 1004MC/Freddie Form 71)

2. At least 2 comparable sales within 90 days of appraisal date

3. A minimum of 2 active listings or pending sales in addition to the 3 closed comparables

4. Bracketed listings using both dwelling size and sales price when possible

5. Adjust active listings to reflect the List To Sales Price Ratio

6. Adjust pending sales to reflect contract sales price when possible

7. Include original list price and any revised list prices

8. Reconciliation of adjusted values of active or pending sales with adjusted values of closed comparable sales

9. Absorption Rate Analysis

10. Known or reported sales concessions on active and pending sales

This update includes an often stated warning that..."Direct Endorsement Lenders are reminded that if the appraiser they selected provides a poor or fraudulent appraisal that leads FHA to insure a mortgage at an inflated amount, the lender is held responsible equally with the appraiser for the integrity, accuracy and thoroughness of an appraisal submitted to FHA."

If the above appraisal guidelines look foreign to you, that's okay, because this update is intended for Appraisers and Underwriters. I sent this to you so you can make yourself an FHA resource in your market.

Go FHA!
Jeff Mifsud
Founder
Mortgage Seminars
Become An FHA Expert

Good morning!

I hope that you had a great weekend! This week has started off well in the markets, which hopefully will hold for a bit. I wanted to share some encouraging news and other bits of info.

First off, it looks like we may see some action by both the FASB and the SEC to deal with "Mark-to-Market". As I have mentioned before, mark to market is considered one of the main culprits in driving our markets (equities, housing, etc) into this current mess. For a better definition than I can offer (in 20 words or less), I have attached a link to one from the folks at Motley Fool. Warning: it's a lot more than 20 words, but does a good job of explaining MTM.

http://www.fool.com/investing/dividends-income/2008/10/02/mark-to-market-accounting-what-you-should-know.aspx

The stock market reacted well to the news about MTM last week, as well as to word that Citigroup will not need more TARP money from the government. We'll have to wait and see if this holds true. Locally, the U of O Index of Economic Indicators showed the health of Oregon's economy improved in January. Our local recession is expected to continue through 2009, but is expected to recover more quickly than in other areas of the country. To cap things off, Fed Chair Bernanke stated that he feels that the recession would be over by year-end if the banking situation is stabilized. Again, some very "market friendly" news.

OK, now for some other stuff.

Rates have been in a "holding pattern" for the last 5-6 weeks and are expected to stay fairly low for a while longer. That being said, the Fed is planning to cease their purchases of MBS (Mortgage Backed Securities) in June. Once this happens, rates will most likely begin to climb. Also, during an interview this weekend, Mr. Bernanke indicated that once the economy begins to recover, the Fed will have to raise rates to fight off inflation. So, the moral of this story is that rates are low, but won't stay that way forever.

Copied below are some commentaries that I have gathered from a few of my sources this week -

MMG Update - Friday, February 20, 2009 9:55am ET

Risks favor: Bias towards Locking

Mortgage Bonds are trading higher, as Stocks remain under selling pressure. And yesterday, the Dow fell to a six year low, below a level it had first surpassed back in 1997. Wow - not accounting for dividends, the Dow is at a level equal to what it was twelve years ago. You'd have to go back to 2002 for the lowest intraday level on the Dow of 7197 to find a potential floor of support. We'll be watching this level closely, as it's very possible to be tested today. And if Stock prices bounce higher off this level of support, it could ignite an overdue rally. However, that would be problematic for Bond prices, as dollars will flow into Stocks to chase the rally.

The Overall Consumer Price Index rose 0.3% in January, meeting expectations and leaving the year-over-year Overall Consumer Price Index (CPI) unchanged, the weakest reading since August 1955. The Core CPI, which strips out volatile food and energy, came in at 0.2%, versus expectations of 0.1%. Over the past 12 months, the Core CPI is up 1.7%, the lowest year over year inflation reading since mid-2004. But if inflation is so low - why is Gold at $1000/oz? Gold, the typical hedge against inflation has been skyrocketing - therefore, somebody appears worried that all this stimulus in a low interest rate environment will eventually lead to inflation.

Continuing with its purchase program, the NY Fed bought $19.9B of Mortgage Backed Securities between Feb. 12 and Feb. 18 bringing the total year-to-date to $135B - or about a third of the way through their stated budget of $500B.

The strong ceiling of resistance overhead continues to keep a lid on Bond pricing gains. Even weak Stocks haven't helped Bond prices break above resistance. This doesn't mean that prices can't improve down the road, but it still may be prudent to lock transactions and protect any modest gains, especially with the aforementioned dynamic in Stocks.

CONTINUING SLOW ECONOMIC SIGNALS SEE MORTGAGE RATES FALL FOR ALL PRODUCTS THIS WEEK

McLean, VA - Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.04 percent for the week ending February 19, 2009, down from last week when it averaged 5.16 percent. Last year at this time, the 30-year FRM averaged 6.04 percent.

The 15-year FRM this week averaged 4.68 percent down from last week when it averaged 4.81 percent. A year ago at this time, the 15-year FRM averaged 5.64 percent.

"Mortgage rates followed bond yields lower this week as recent economic reports suggest the economy is still slowing, which reduces the future threat of inflation," said Frank Nothaft, Freddie Mac vice president and chief economist. "And consumer sentiment fell in February for the first time in three months to near its lowest level since May 1980, while industrial production slowed in January by more than the market consensus. In addition, the Federal Reserve lowered its growth forecasts for this year during its policy-setting meeting on January 27-28, noting a deeper contraction in the economy as the credit crunch tightens.

"Meanwhile, the housing market is not doing any better. New housing construction slowed to an all-time record low of 466,000 homes (annualized) in January since records began in January 1959. And although homebuilder confidence ticked up in February from a record low, builder expectations of sales over the next six months hit a record low since it was first published in January 1985."

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

Inside Story: False Illusions and What You Need to Know

Last Updated February 4, 2009

The Fed's been at it again, offering words that sound encouraging at first blush, confirming that their buying program of Mortgage Backed Securities is in full swing and will continue as needed. Of course, the media will pick this up and offer their own interpretation, saying "Good news, the Fed's words on continuing their purchasing program mean that rates will continue to drop lower, and remain low into the summer..." But is this really what that means? Not so.

Here's the truth.

Yes, the Fed has been buying Mortgage Bonds, but if you look at what they are purchasing, they are buying a lot of FNMA 30-yr 5.5% and 5.0% Bonds...which won't have much of an impact on present interest rates. Why? First, see the Fed's purchases for yourself by hitting this link: Direct Link to View Fed Mortgage Bond Buying - http://www.newyorkfed.org/markets/mbs/index.html.

So why is the Fed buying these Bonds? Well if you think about it, it's very smart of the Fed...and maybe even a little sneaky...because 5.5% Bonds actually represent outstanding mortgages with rates of 6 - 6.50%, which are precisely the loans being refinanced at today's great interest rates.

Stay with me here...

With rates at present low levels, many of the mortgages in these FNMA 5.5% pools being bought up by the Fed will be refinanced and paid, thus giving the Fed a quick recoup on some of their investment. And this is likely a big reason why the Fed said they could continue this purchasing program beyond June, if necessary. Bottom line, the Fed buying these higher rate coupons will not necessarily help rates to move lower, as their actions do not impact the loans being originated at today's low rates.

Here's the most important part.

Sometimes I talk to clients who are in a situation where it makes sense to refinance right now, and save $250 per month for example. But when they hear the media throwing around teases of lower rates ahead, they decide to hold off on making the decision to save the $250 per month right now, in the hopes of gaining another $30 per month in additional savings with a lower rate than where we stand presently. Now clearly, rates could turn higher, and this window of opportunity could pass them by entirely.

The clincher is this:

Even if those clients ultimately are correct in timing the market, and eventually grab that lower rate and save another $30 per month - think of what they have lost by waiting. While they delayed, they lost the savings they could have gained by taking action sooner - or in the example used, $250 - for every single month they waited. So even if they got lucky and obtained the rate they were looking for, it could take years to make up what they lost by waiting.

I don't want anyone to miss an opportunity by either waiting, or not understanding what is at stake. Let's talk further on this - call or email me and let's discuss what this might mean for you.