John Tuggle

NEWS FLASH, Stimulus bill restores Fannie, Freddie, FHA limits John Tuggle 15. February 2009 Stimulus bill restores Fannie, Freddie, FHA limits Congress today voted on a $790 billion economic stimulus bill that includes a modest expansion of a first-time homebuyer tax credit and restores to $729,750 the upper loan limit in high-cost areas for Fannie Mae, Freddie Mac and FHA loan guarantee programs. For more info please go to www.johntuggle.edicypages.com

A proposal to provide a $15,000 tax credit to homebuyers was stripped from a $789 billion economic stimulus package that appears headed for a vote Friday, but a restoration of higher loan limits for Fannie Mae, Freddie Mac and FHA loan guarantee programs appears to have made the cut. The $15,000 homebuyer tax credit -- included in an $838 billion economic stimulus bill passed by the Senate Tuesday (see story) -- was scaled back to $8,000 and limited to first-time homebuyers as part of a compromise between Democrats and Republicans. The Congressional Budget Office estimated the larger tax credit would have cost $35.5 billion, a price tag that proved too tough to swallow in conference committee negotiations where differences between House and Senate versions of H.R. 1, The American Recovery and Reinvestment Act of 2009 were ironed out. Instead, the compromise bill falls back on language approved by the House Jan. 28 (see story), which would have eliminated the repayment requirement on an existing $7,500 tax credit that is currently available only to first-time homebuyers through July 1. According to a summary of the compromise bill released by lawmakers Thursday, the tax credit will still be available only to first-time homebuyers -- those who haven't owned a principal residence in the last three years. But they won't have to pay it back, as is currently the case, and the credit will be increased to $8,000 and be available through the end of November. The smaller tax break will cost taxpayers closer to $6.6 billion over 10 years, a savings of nearly $30 billion.

Aero Real Estate, Web http://www.aerorealestate.net/ Scott Moore, Associate Broker, Realtor, Cell 334 618-4874, Email scottm@aerorealestate.net Heritage Homes, Web www.heritagehomesga.com/ Erika Nicholson, Realtor, Cell 706 341-9056, Web www.realtorerika.com/, Email erikan@mchsi.com Vera McInnis, Realtor, Cell 706 593-9230, Web www.veramcinnis.com/, Email mcinnisv@bellsouth.net Heritage Realty, Web http://www.sellmyhousenow.biz/ Nick "Klaus" Nicholson, Realtor, Web http://www.realtornick.org/, Cell 706 568-1185, Email klaun@mchsi.com Mary Kelley Lake Harding Realty Inc, Web http://www.mkrealtylakeharding.com/ Virginia Wingard, Broker, Realtor, Cell 706 325-3582, Email vwingard@mkrealtylakeharding.net Mary Kelley Realty Inc, Web http://www.marykelleyrealtyinc.com/ Gail and Tommy Henderson, Realtor, Cell 334 298-7106, Email tgmh@mindspring.com Vicky Chapman, Realtor, Cell 706 573-8671, Email mkrealty@bellsouth.net Linda Cottom, Realtor, Cell 334 298-7186, Email alabamacottom@aol.com Dwayne Kelley, Realtor, Cell 706 681-9698, Email mkrealty@bellsouth.net Mary Kelley, Broker, Realtor, Cell 706 681-9704, Email mkrealty@bellsouth.net Rose Anne Erikson Realty, Web http://www.homeshomescolumbusga.com/ Billy Sims II, Associate Broker, Realtor, Cell 706 315-4661, Email billysims2@bellsouth.net Ricki Lynn Cook, Realtor, Cell 706 681-1823, Email rickilynns@yahoo.com Rose Anne Erikson, Broker, Realtor, Cell 706 257-1776, Email rerikson@raerealty.net Shepherd Brokers . Com GMAC Real Estate, www.shepherdbrokers.com Terry V Griffis. Cell 706 315-2779, Email terry.griffis@shepherdbrokers.com Wayne and Donna Long, Cell 706 325-5000, Email donna.long@shepherdbrokers.com Helen Crews-Edmunds, Cell 706 315-9472, helen.crewsedmunds@shepherdborkers.com Marcia Montz, Cell 334 614-0122, marcia.montz@shepherdbrokers.com Solid Source Premier Realty, Web http://www.solidsourcepremier.com/ Dana Carfrey, Realtor, Cell 706 662-9128, Email danacarfrey@bellsouth.net Mary Carney and Susan McBride, Associate Brokers, Realtors, Cell 706 888-5793. Email maryandsusan@premierrealtors.biz

8:30 economic data; weekly jobless claims were down 8K to 623K filings, about in line with forecasts. The 4 wk average, a smoother look was 607K +25K from the previous week; continuing claims, another new record at 4.81 mil people on unemployment. The surprise at 8:30 was Jan retail sales, expected to continue its 7 month decline of 0.3% was actually up 1.0%, ex auto sales up 0.9%. Overall retail sales on a year-on-year basis in January were down 9.7%, compared to down 10.5% the previous month. Excluding vehicles, the year-on-year pace improved to down 6.6% from down 6.9% in December. While up is better than down, a key point to remember about this report is that sales had become very weak, falling each of the last six months of 2008. There was an initial positive reaction to retail sales in the stock market trading, it lasted about 5 minutes before the key indexes continued to decline, pointing to a down open at 9:30. Dec business inventories, expected down 0.6%, were down 1.3%, Nov was revised lower, to -1.1% frm -0.7%. The Obama stimulus plan appears to be headed to his desk and signed, likely early next week according to current wire reports. The plan ended at $790B and according the administration will create or save 3.5 mil jobs. That is very unlikely however. Markets in general have never believed that many jobs will occur. The plan is flawed and markets realize it; even the CBO doesn't see it as a quick fix. Jobs generated from the plan will not occur rapidly, CBO says not until next year will we see any positives from it. Nevertheless it was ramroded through as a plan to turn the economy around quickly, not many believe it will do what was sold to America. The equity markets took a huge hit on Tuesday on deep disappointment in Geithner's highly anticipated announcement of his plan to get credit markets working and deal with those toxic assets sitting at banks. The administration bungled it, for two weeks leading markets to believe details would be announced, what we got was an outline. Never fool markets, you will pay a big price, the stock market dropped 382 points Tuesday (DJIA), yesterday barely held a minor 50 point gain and this morning opening down The Obama administration’s housing plan will use government money to help reduce interest rates for struggling borrowers, while asking lawmakers to approve more ways to modify mortgages, according to a person briefed on the proposal. U.S. Treasury Secretary Timothy Geithner intends to make the plan public in coming days, possibly within a week, said the person, who declined to be identified before the announcement. Some elements can begin immediately, and others must be considered by Congress. The government will subsidize interest-rate reductions by working with the servicers that handle mortgages, the person said. That way, servicers can lower monthly payments for households without shortchanging investors. The new plan, which isn’t final and could change, would be voluntary for lenders and investors, the person said. It is aimed at loan modifications that have a positive net present value, meaning that the cost of a foreclosure would be higher than that of adjusting the loan terms. (Bloomberg) At 9:45 the DJIA was off 150 points at 7785; looks very much like a coming test of the lows at the 7500 level. Since the close on Monday through 10:00 this morning the DJIA has declined 500 points. The bond markets are better this morning, ex the 30 yr which will see $14B in a new bond sale at 1:00. Mortgage markets are flat so far. At 10:00 the 10 yr note is trading about unchanged from yesterday, but is better than when it was sold yesterday at auction. The 10 yr auction went at 2.818%, at 10 this morning at 2.75%; the "old" 10 yr ended yesterday at 2.76%. Mortgage prices at 10:00 only fractionally better as mortgage rates are now confined to a very tight range. We will continue to hold rate locks to start the day. Stay close for FLASH message if we see a turn. Wholesalers are not only focusing on the markets but are adjusting their prices based on volume levels, making it more difficult to forecast how prices to the street from one lender to another will be set. -------------------------------------------------------------------------------- PRICES @ 10:00 AM 10 yr note 100.00 2.75% -1 BP * Mar 10 yr note contract 124.05 +15/32 5 yr note 100.07 +8/32 1.70% -6 BP 2 Yr note 100.00 +2/32 0.88% -3 BP 30 yr bond 118.26 -14/32 3.47% +2 BP * Mar 30 yr bond contract 128.31 +8/32 Libor Rates 1 mo 0.455%; 3 mo 1.234%; 6 mo 1.723%; 1 yr 2.018% 30 yr FNMA 4.5 Apr 100.26 +1/32 (+3/32 frm 10:00 yesterday) 15 yr FNMA 4.5 Apr 101.19 +1/32 (+3/32 frm 10:00 yesterday) 30 yr GNMA 4.5 Apr 100.25 -2/32 (+1/32 frm 10:00 yesterday) 15 yr GNMA 4.5 Apr 102.15 +2/32 (+4/32 frm 10:00 yesterday) Dollar/Yen 90.36 -0.07 yen Dollar/Euro $1.2745 -$0.0132 (dollar stronger) Gold Apr $943.70 -$0.80 Crude Oil Mar $34.53 -$1.41 Goldman-Sachs Commodity Index 335.29 +0.86 DJIA 7735.08 -204.45 NASDAQ 1501.04 -29.46 S&P 500 812.32 -21.42 Thursday, 2/12/09 10:30am John Tuggle Senior Loan Officer Freedom Mortgage Corporation 1625 Highway 42 North McDonough, Georgia 30253 Direct (Best) 706 315-2365 Office 770 957-8211 Fax 866 270-4840 Email john.tuggle@freedommortgage.com

I am working enthusiastically to create a groundswell of support in your community for H.R. 600 - FHA Seller-Financed Downpayment Reform Act of 2009 and downpayment assistance (DPA) reform. Breaking News: Down-payment aid program resurfacing In case you haven't seen the article in the February 7th edition of the Los Angeles Times, which speaks to H.R. 600's reforms that specify new standards for an effective program that will improve performance and not cost the taxpayers or the FHA insurance fund a dime. Read the entire Los Angeles Times article -------------------------------------------------------------------------------- Key Points of DPA Reform Congressional Budget Office (CBO) stated that H.R. 600 is equal to H.R. 6694 as it relates to seller-funded DPA and requires no changes to last year's estimate. Download the complete CBO Cost Estimate H.R. 600 strengthens DPA with the following reforms: Improved Loan Performance: borrowers FICO score must be above 620 to qualify for DPA Protection Against Appraisal Inflation: bill includes stiff penalties for appraisal abuse Homeownership Education: increases opportunity for sustainable homeownership and overall long term financial success Regulation for DPA Providers: ensures responsible standards for DPA processing and education Reformed DPA Costs Nothing: mortgage insurance premiums are set to ensure that DPA pays for itself. NO COST TO TAXPAYERS! Report Finds DPA Created Big Economic Benefits $38.6 billion in economic output $4.6 billion in property tax revenues $150 billion in homes sales 235,000 jobs! Download Waste/Fountain Study Summary Download Economic Impact Fact Sheet -------------------------------------------------------------------------------- Get Involved! Join the DPA Reform Movement Your Senators and Congress member need to hear from you and your associates about the importance of DPA in your area. Tell them to pass H.R. 600 or attach it to an upcoming housing bill. Top 5 Ways to Make Your Voice Heard Write a letter to your elected officials in support of H.R. 600 Contact your elected officials district office by telephone Activate network of friends/associates (spread the word) Organize and facilitate a rally in your community Contact me to discuss other grassroots campaign strategies Please feel free to forward this email to anyone that may be interested in DPA reform! James Hillman Office: 916.231.5266 Toll Free: 866.635.8171 jhillman@nehemiahcorp.org Fighting for Families - Nehemiah Corporation of America Copyright © 2009 Nehemiah Corporation of America. All Rights Reserved. info@dpagroundswell.org Site Strategy commongroundconsulting.org | Engineering www.chad-wick.com | Design ps-portfolio.com