Time to give back!

For those of us in the mortgage industry last year was a challenge. This year we have gone from famine to feast. If you have not had a chance to share your good fortune or are one of the people that have been fortunate enough to benefit from refinancing to a lower rate, please take a look at this article and order a cake to help this woman keep her house.

Avoiding Foreclosure! It's a piece of cake.

msn.com

Or you can go straight to her website:

maccakes

July Interest Rate Update

I hope everyone had a wonderful holiday weekend! If you have a minute, please take the time to watch this short video!

Help from a different source

This article was on msn.com today. It featured comments in the last paragraphs from one of the other loan officers that works with me at Cornerstone Mortgage.


msn.com

I've been busy

Much apologies to those who have tried to follow either the mortgage industry or my views on the mortgage industry over the past 3 months. With the volume in the industry I had neither the time or the energy to sit and write. Then I had the misfortune of tearing my Achilles tendon which made getting around that much more challenging. So to reduce stress and focus away from work when I could I took up on line poker. This past weekend I entered my first live tournament and here is a link to an article about how it went:

insidestl.com

Mortgage Cramdowns

I was recently interviewed for my thoughts on the proposed legislation to allow bankruptcy judges to reduce the principal amount owed on mortgages and to change the borrowers payments. To read the complete article go to:

ibjonline.com

The article is on the first page.

Please let me know if you have any questions or comments!

We are getting farther away yet closer still

As we watch the 30 year fixed rate mortgage hover around 5.75% today and still field phone calls from people who want 4.5% or lower, we need to be aware of that the government still has not stepped to the plate and followed through with their promise. Only today did they shed some light on where they are with the purchase of mortgage backed securities:

JP Morgan article

Until they begin purchasing these securities in bulk we will continue to see rates languish between 5.5% and 6%. Even then, if they wait too long to act, there may be other forces that will not allow the rates to go lower.

Stay tuned more interesting times!

MHDC Press Release

MISSOURI HOUSING DEVELOPMENT COMMISSION

Strength, Dignity, Quality of Life

3435 Broadway, Kansas City, MO 64111

Kathryn Watts, Government Affairs, 816-759-6824; e-mail kwatts@mhdc.com

MHDC is the state's housing finance agency. The Commission is dedicated to strengthening communities and the lives of Missourians through the financing, development and preservation of affordable housing. MHDC was created by the General Assembly in 1969 and since that time it has invested $5 billion for the development of affordable rental housing and mortgages for first-time homebuyers in Missouri. MHDC functions much like a bank, providing financing directly to borrowers, developers or through a network of private lending institutions. MHDC is one of only three state housing agencies in the nation to receive an issuer credit rating of AA+ from Standard & Poor’s.

News Release/News Advisory/Request for Coverage – 01/16/09

MHDC Rolls Out Innovative New Program For First-Time Homebuyers

Starting January 14th, 2009, Missouri Housing Development Commission (MHDC) will have a new product to enable first-time homebuyers to take advantage of the $7,500 federal first-time homebuyer tax credit. This program is the first of its kind in the nation.

The federal first-time homebuyer tax credit was created by Congress this summer to encourage new homebuyers to purchase homes and thereby stimulate housing markets. However, the federal tax credit has been largely ineffective. One of the primary reasons the federal credit hasn’t worked is that the homebuyer doesn’t receive the money until he receives his federal income tax refund – which may be several months after the home is purchased.

With over 30 years experience funding mortgages for first-time homebuyers, MHDC knows that the biggest barrier faced by first-time homebuyers is acquiring money for down payment and closing costs. As a result, MHDC created a program that allows homebuyers to receive the value of the tax credit at the time of closing.

How the Federal First-Time Homebuyer Tax Credit Works:

• First-time homebuyers receive a tax credit worth 10% of their home purchase, up to $7,500. The credit is claimed on the homebuyer’s federal tax return. The credit is refundable, which means that the homebuyer receives a refund for the amount of the credit minus any federal tax liability. The credit is essentially an interest-free loan from the federal government and must be repaid through an increase in federal income taxes over a period of 15 years.

How the MHDC Tax Credit Advance Loan Program Works:

• MHDC makes a second mortgage to the homebuyer at the time of closing worth up to 6% of the home purchase price or a maximum of $6,750, which is used to cover down payment and closing costs. The tax credit advance loan is paired with MHDC financing for the first mortgage in the form of a safe 30 year, fixed rate mortgage. The homebuyer then files for the federal tax credit and uses the credit refund to pay off the MHDC tax credit advance loan. If the tax credit advance loan is paid off by the designated deadline, the homeowner pays no interest other than a modest servicing fee. If the tax credit advance loan is not paid by the deadline, principal and interest payments to repay the loan over 10 years begin automatically.

All MHDC first-time homebuyer loans are made through a statewide network of certified

lenders, and serviced by U.S. Bank. The MHDC loan programs are available for households with incomes up to $85,500. Interested first-time homebuyers can find a list of participating lenders and other information about the program on the MHDC website (www.mhdc.com).

MISSOURI HOUSING DEVELOPMENT COMMISSION

Strength, Dignity, Quality of Life

3435 Broadway, Kansas City, MO 64111

Kathryn Watts, Government Affairs, 816-759-6824; e-mail kwatts@mhdc.com

MHDC is the state's housing finance agency. The Commission is dedicated to strengthening communities and the lives of Missourians through the financing, development and preservation of affordable housing. MHDC was created by the General Assembly in 1969 and since that time it has invested $5 billion for the development of affordable rental housing and mortgages for first-time homebuyers in Missouri. MHDC functions much like a bank, providing financing directly to borrowers, developers or through a network of private lending institutions. MHDC is one of only three state housing agencies in the nation to receive an issuer credit rating of AA+ from Standard & Poor’s.

The federal tax credit and the MHDC tax credit advance loan program are both currently set to expire June 30, 2009.

###

NOTE TO EDITORS: Media representative questions can be directed to Kathryn Watts,

Government Affairs Liaison, at 816-759-6824 or kwatts@mhdc.com. All other inquiries should be directed to Gregory Spurgeon, Single Family Homeownership Administrator, at 816-759-7228 or gspurgeon@mhdc.com. If you would like to receive this release by e-mail in rich-text format, please email kwatts@mhdc.com and provide us with the appropriate e-mail address.