Important Video From Our MMG Analyst, Berry Habib

Hello!
Most of you know that J. Allston Mortgage uses very progressive and advanced market/mortgage analysis tools. Berry Habib is one of our MBS Market/Bond analyst's. Click on the link to see what he said about the market and mortgage rates. This aired on Fox Business yesterday. (Video Link)

New Government Web Site For Troubled Homeowners

The Obama administration introduced a Web site on Thursday to help troubled homeowners find out if they're eligible for any relief under its loan modification or refinancing programs. Here is the link: Making Home's Affordable

Federal Reserve Expand's MBS Purchase Program To 1.25 Trillion

Hello Gang!
Hope you are all doing well. Some great news today, the Federal Reserve announced today that the Fed would expand there MBS Purchase Program by 750 Billion; increasing it from 500 Billion to 1.25 Trillion. (300 Billion has already been spent) That is good news for mortgage rates; it should keep them low and stable for a longer period of time that we first expected. Here is a link to one of the many articles that were released today. Article Link. Now, nothing is a guarantee; there is a lot that could happen that could have rates going the other direction; however, the news in encouraging. Make sure that if you are thinking about refinancing that you are getting all of the things done that need to be done in order to refinance. (updated application, appraisal, disclosures, and income and asset documentation) If you have any questions, or need a list of the items that you will need in order to refinance, please email me at james@jallston.com. Have a great week, and I will let you know if anything changes.

Turn Times

Hello Everyone!
Just wanted to let everyone know that we are structuring, setting up, processing and closing your loans as quickly as we can; thank you all for your patience. The whole industry is have capacity issues, so turn-times are not where we would like them to be, but trust me, we are going as fast as we can. ALL loans are taking longer, however, loan's that have or require a 2nd Mortgage or Equity Line Of Credit are talking the longest. Loans with tight values and credit issues are taking longer too. As the Managing Principal of J. Allston Mortgage; if you ever have any questions, I am always available to talk to you. Please call me direct at 303-805-0335 or email me at james@jallston.com. If you get my voicemail, please leave a very detailed message and the best times to reach you, and I will call you back. Thanks again for your patience and support.

Article About Rate's In The Denver Post

Hello! Thought this was interesting, this article talks about the capacity issues that the industry is facing. This is one of many reason's most experts and analyst's do not believe that mortgage rates are headed down.

Letter To Clients

Dear JAM Clients,

I know you may be a little bit overwhelmed and frustrated right now with all the NOISE and confusion about all the new government interventions in the mortgage and housing markets. As a Certified Mortgage Planning Specialist™, I make it a priority to stay updated on developments in the mortgage markets that may impact my clients. I have spent a lot of time reviewing the latest Making Home Affordable government program, and here are some of my observations. If you think this information is useful, please pass it along. Feel free to forward my Blog link to anyone you know that may be impacted!

The Making Home Affordable government program is divided into two parts:
· Modification Program
· Refinance Program

Part 1 - Modification Program
Believe it or not, the details of this program are still being worked out. Despite all the hoopla and fanfare surrounding this program, it remains 100% VOLUNTARY, and mortgage servicers (the companies that actually collect borrowers’ mortgage payments) are not obligated by law to follow these rules and guidelines...YET. Oddly enough, if a financial institution has already received government funding, they are NOT obligated to participate. However, if a financial institution receives new or more government funding in the FUTURE, they WILL be obligated to participate.

In other words, the rules are still a bit sketchy and nobody really knows who will participate and how it will all work from a practical perspective. Most of what you read and hear about in the media will most likely be speculation at this point. In a nutshell, the program has three elements:

• The government is offering financial incentives to mortgage servicers who modify loans for borrowers.
• The government is offering financial reimbursement to investors if they allow servicers to modify loans and then take a hit on the borrower's re-default if the property declines in value after the loan modification.
• The government is offering financial incentives to borrowers who modify their loans and make their new payments on time.

Vacation homes and investment properties don’t qualify for the program; only primary residences are eligible. Only borrowers who have experienced some type of financial hardship can qualify. In other words, you will need to document that your financial situation is worse now than it was at the time that you originally got the loan. Your income needs to have gone down, and/or your expenses need to have gone up. Click on this link if you want to see if you qualify for at least the minimum requirements and also a Q&A document:

Minimum Requirements

Q & A

Remember, even if you do qualify under these minimum requirements, your servicer (the company where you send your payments) might not be participating in the program just yet.

Part 2 - Refinance Program
Here’s how it works:

• You need to be current on your mortgage payments (no late payments in the last 12 months).
• Your mortgage balance cannot exceed 105% of the current value of your home.
• Your mortgage needs to be owned or guaranteed by Fannie Mae or Freddie Mac.

Based on current market conditions, this might make sense for you if:

• You have an adjustable rate, interest only, or balloon mortgage that you want to convert into a fixed rate; or,
• You have a fixed rate mortgage where the interest rate is greater than 6%. In fact, contact me even if your rate is as low as 5.5%. I’ll put you into my rate watch program and let you know when rates get to the point where you would benefit by refinancing.

Other Recent Developments
There have been many other recent developments in the markets, as well as new government legislation. Here are just a few recent items that may impact you or someone you know:

• Home improvement tax credit
• First-time home buyer tax credit
• Reverse mortgages for home purchase transactions (age 62 or older)
• Suspension of required minimum distributions for certain retirement accounts (age 70 ½ or older)

Let me know if you’d like to discuss any of these items in further detail.

Conclusion
I know that all the NOISE you are hearing about the mortgage industry and government interventions can be distracting and confusing. That’s why I’m here for you! As a Certified Mortgage Planning Specialist™, my role is to help you make sense of all the chaos and confusion in the market, so that you can make smarter mortgage and home buying choices. Please send me an email or give me a call so that we can discuss how these and other recent developments may impact you and your situation!

James Allston Bonner, CMPS

Fed Expands Use Of Tools To Support Mortgage Bonds

This could be good news for Mortgage Rates. This will help keep rates low and stable. Read on!

Financial Stability Plan: Link To Information

Also, here is link to the press release from the Department Of Treasury about Loan Modification. Press Release