This is very important information about rates and is right on with what to expect going forward.....short translation.....don't think you have the markets figured out.....rates are going to rise, they have too....there is no other place for them to go but up. Rates will start rising soon regardless of what the "experts" are saying. Here are some critical pieces outlining the increase in rates.

Our Government has been very busy over the past few months monetizing our debt. Remember, the deficit is predicted to be, depending on who you talk to, between $1 Trillion to $1.5 Trillion. Yes I said Trillion (12 zero's after the 1). The auction results tells bond traders exactly what the worlds appetite is purchasing America's debt. Yesterday, it was not too good. This is important to watch closely because as purchase of our debt goes, so goes our dollar, so goes the potential of inflation, so goes the value of Mortgage Backed Securities. Finally, the major purchaser of MBS over the past year has been the New York Fed (our government). As the government weans itself off of MBS that has to be replaced somehow with new investors entering into the market. The reason why the government committed to $1.25Trillion in MBS is because there was not a market for MBS. The Government has been trying to create a market and apparently they believe they have been successful in that endeavor. Only time will tell if that is indeed the case.

Yesterday Mortgage Bonds fell after the not-so-good auction results but were able to rally despite a rosy outlook from the Fed statement. The outlook of low rates for some time and low inflation could have been the catalyst behind the move higher. If you dig deeper into the statement it revealed that the Fed will draw out the remaining commitment of the $1.25T MBS purchase program until the end of the 1st quarter of 2010. In the 1st quarter of 2010 the New York Fed will purchase Mortgage Bonds every other week, instead of every week that is currently being done. The New York Fed also said it will start to reduce its purchases this week. There will be no additional funds added to the allotted amount but just a longer weaning off of the program - mortgage rates should gradually increase during the transition period. Today the government is auctioning $29B 7-year Notes.

So as you look deeper into this you can clearly see the Government is now starting there exit strategy. This day has always been coming....be prepared it is here.

Kevin M. Breeland

General Manager

Residential Mortgage of South Carolina, LLC

427 Johnnie Dodds Rd.

Mount Pleasant, SC 29464

breelandk@residentialmtg.com

www.residentialscdailyrates.com

Competitive by nature...the Best by choice!

On Tuesday I had something happen to me that hasn't happened in sometime. In order to do the story justice I must start from the beginning.

Upon returning from my son's baseball practice which started right at 5:00pm I was helping him get his trash out of my car. I am probably too "Monkish" about trash in my car but we all have our quirks, that one is mine. When I opened the trash can and let go of the trash I realized a second TOO LATE I let go of my Blackberry Bold and down the trash can it went into the most vile water you can imagine. Swamp Water would have been an improvement. What did I do? Well just like anyone else another split second passed while I determined whether I was going to stick my hand in that to retrieve it. I "Manned UP" and after it I went. When I pulled it from the water I thought the smell would kill me, note to self it's time to clean the trash can, I took my phone into the gargage, took the battery out, and started shaking the water out. Then I ran inside and washed my hands in water so hot I almost burned myself. Now starts the drying out process....how did it work?

So as you can see when my screen does come on I can not unlock it. So the screen is damaged and the keyboard.

I called my wireless carrier who referred me to the insurance company....yea I had insurance. However I did not know the pass code. I had to wait till someone at the main office arrived and I also emailed our company rep. He responded with the pass code, I called the insurance company again, and for $125 my new Blackberry Bold will arrive IN TWO DAYS!!!! UGH!!!! What do I do for TWO DAYS!!! No constant flow of Twits, no updates of Facebook, no CALLS!!! OMG how do I function? I remember when we did not have this stuff but I am too old to remember what we did!!!! Last night was the worse...no twitting during Dog the Bounty Hunter....somehow it just did not feel right. That was just day one.

Today, I have new outlook and that is I only have to do it today!!!! Nothing like living one day at a time!

HAVE A GREAT DAY!!!!!

Kevin M. Breeland

General Manager

Residential Mortgage of South Carolina, LLC

427 Johnnie Dodds Rd.

Mount Pleasant, SC 29464

breelandk@residentialmtg.com

www.residentialscdailyrates.com

Competitive by nature...the Best by choice!

What!?!? This is it??? Are you kidding me??? Those are just some of the reactions industry had with HUD's release of its FAQ regarding The Final RESPA Rule. In typical HUD fashion this FAQ is long in mystery short on substance. Speaking only for myself HUD continues to define Insanity, They keep doing the same thing and I keep expecting different results. Oh well...such is life.

There are so many details that I can't cover in the content of a blog but I am going to provide you with some useful links. First, HUD's FAQ 16 pages of questions is interesting, confusing, informative, and just plain substance free at times. This link, http://www.hud.gov/offices/hsg/ramh/res/faqfinalrev3.pdf, will provide you with the 16 pages of questions and answers so you yourself may decide if this helps you get prepared for the upcoming changes. The most informative question...well that is up to you to decide. The RESPA Rule has many components to it. Don't believe you can know "about it" and be prepared for the changes. Every company in the real estate industry will be effected so read and study these changes. They are no long proposed, January 1, 2010 it becomes a reality.

Washington wants mortgage reform, Washington wants financial services reform, and when Washington wants something it typically will happen. I have been involved with the RESPA Reform Debate going back to 2002 and my experience has taught me this....the Final RESPA Rule is much different that what was proposed in 2004, the Final RESPA Rule is much different that what industry proposed in the 6 round-tables held throughout the US in 2005, and The Final Rule is even different than what came out in November 2008.

In closing I want to give credit to October Research and RESPA News for the information I have used to write this blog today. RESPA News has two very good articles I recommend you read, "HUD issues FAQs on RESPA final rule" dated 08/14/2009 and written by Kelly McCarel and "HUD responds to criticism over RESPA rule FAQ issuance" dated 08/18/2009 also written by Kelly McCarel, October Research. Here is a link to RESPA News, http://www.respanews.com, and I would recommend following this publication.

HAVE A GREAT DAY!!!!

Kevin M. Breeland

General Manager

Residential Mortgage of South Carolina, LLC

427 Johnnie Dodds Rd.

Mount Pleasant, SC 29464

breelandk@residentialmtg.com

www.residentialscdailyrates.com

Competitive by nature...the Best by choice!

Rear View (West Side) Monticello and the West Lawn

Front View (East Side) of Monticello

Gravesite of Thomas Jefferson, located on the grounds of Monticello

One of the many views from Monticello.

This is a memorial dedicated to the Breland Family located at Rivers Bridge State Park, SC.....even though my last name has two E's....my great father 4 times removed is on this memorial...Abram Breland.