TAOS REAL ESTATE MORTGAGE MARKET UPDATE: Week Ending 04/11/2008
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Market Direction: Interest Rate Trends: YEP, FAREWELL TO STATED INCOME LOANS... Does this mean there are no Stated Income loan products available? Not if you're working with us. TLT has access to a Stated Income loan product, although it isn't considered conforming and you can expect a higher rate to accompany it. How long will it be around? That's anybody's guess. Washington Mutual, the nation's sixth largest mortgage company, announced it will no longer make loans via Brokers (wholesale channel distributors), laid off 3,000 workers and received $7 billion in a capital infusion after it lost 74% of it's market value last week. Wachovia released similar news also. It's unclear at this time if their infusion of capital will require the same exit from wholesale banking operations as with Washington Mutual. So what does the rest of the world think about the current state of affairs in our credit markets? They're concerned. The IMF and the G7 both met during the past week, and neither had good things to say. The head of the International Monetary Fund (IMF) said that "there was only a limited amount of time to repair the financial system after the worst crisis since the Great Depression." A report they released last week said losses could approach a staggering $1 trillion before this is over. What does the Treasury Secretary have to say? "Expect more bumps ahead." He outlined a proposal to overhaul the U.S. financial system by transforming the Federal Reserve into a "market stability regulator" instead of the nation's banking and money source. Based on his proposal, the new Fed would become the manager of national economic wealth with the duty of supporting confidence in the proper functioning of the U.S. marketplace. What does this mean? There's a case to be argued that our government is taking the first steps to allow the International Society of Bankers direct control over the U.S. economy, under the auspices of financial stability... Eyes wide open, people... Have a prospersous week. Jason Leach |
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| Mortgage Interest Rates* | ||||||||||||||||||||||||||||||||||||
| Rates as of 04/13/2008: | ||||||||||||||||||||||||||||||||||||
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| *Rates are subject to change due to market fluctuations and borrower's eligibility. | ||||||||||||||||||||||||||||||||||||
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