Some Good News For A Change!

I was amazed today to pull up the news online today and I found a lead story that was POSITIVE! 2nd Quarter Gross Domestic Product (GDP) was revised today and it showed that our economy had much better growth during the quarter than previously thought. GDP is the broadest measure of our economic activity and it stood at 3.3%. Growth between 2.5-3.5% is typically seen as healthy. This is way above expectations! This growth was helped in part by the economic stimulus that was pumped into the economy and by solid demand for U.S. Exports.

It has also been mentioned that inflation is in check for the most part. It is just slightly higher than what the FED typically likes to see. Hopefully we can keep it this way.

How does all of this impact the real estate world? Well not much at this point, but it is still positive information. However, these types of stories greatly impact traders like or dislike for mortgage bonds. This does impact the mortgage world in the form of mortgage rate changes!
I for one would like to see items like this focused on a bit more than the gloom and doom stories we typically see. We hate relaying all the bad news to our readers, but lately it seems like that is all there is. To say the least, this was a breath of fresh air. Even though it isn't like it is monumental news.
Lets just take this positivity into the Holiday Weekend. PMG wishes everyone a fun and safe Holiday! Oh and GO TIGERS!

Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"

Mark Your Calendars Wednesday September 24th

Professional Mortgage Group, Inc. and Archer Title Company have teamed up to co-sponsor a Happy Hour at D. Rowe's Restaurant in Columbia, MO. This will be by invite only, but we are very excited about the potential turn out between our business partners and Archer Title's.

This will be a good time to bounce ideas of fellow real estate agents in the Mid-Missouri market, meet the faces from PMG and Archer Title, and enjoy some cocktails! We are all well aware of the negativity surrounding today's market and the challenges we will face going forward. We hope this Happy Hour will spark some business ideas, networking opportunities, and simply help blow off some steam associated with today's volatility.

Invitations should be coming out within the next two weeks and we hope to see everyone there!
If you are interested in joining us, please email us and we will be sure that you are on the list!

Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker

Important Information If You Are Shopping Around!

If you are one someone who is in the market for a mortgage, you have come to the right place. Some people have a current relationship with a lender, some go by who their friends refer, and others shop around. It seems most people fall into the latter 2 categories. Checking around and getting a few recommendations seems to be the best way to do it. In today's market you want to find someone who has proven themselves time and time again. What better way to do this that check with past clients. For those that are avid shoppers, this post is for you.
What are the key components you are looking for when shopping?
Rate?
Closing Costs?
Customer Service?
Knowledge?
Expertise?
Experience?

These are all important. The rate and closing costs that are quoted should be the easiest to compare, as long as everyone discloses them properly. (this could be another article in itself)
The others are a bit harder to judge. I am sure anyone you talk to can talk the game and act like they are on the ball. You just have to be able to judge who is for real and who is not.
Here are a few questions you can ask each loan officer as you shop around in today's volatile market. These questions can serve 2 purposes. They will give you valuable rate information to go with the rate they are quoting and will help expose loan officers that don't know the simple but important answers.

Here they are:

1. What are mortgage rates based on?
2. What is the next economic report or event that could cause interest rate movement?
3. When the FED changes rates, what does this mean and what impact does it have on mortgage rates?
4. Do you have access to live , real time, mortgage bond quotes?

These are some very basic questions with simple answers. If any lender is not able to give you quick answers that make sense, BEWARE! In today's market it is crucial they know this stuff. What good is a low rate quote if they do not know what influences the rate they gave you? They need to know when to Lock and when to Float. They could quote you 6% and not pay attention to the market and the next day it is 6.5%. Now that time you took to shop around is wasted!
I did not list the answers to these questions. If you are someone who is shopping around, please send us an email (eric.hemmer@pmg-inc.net or shawnvt@pmg-inc.net)
and we will be happy to provide you with the ammo to shop. We of course would like you to use PMG. However, with this information you should be able to feel more comfortable with your final choice, no matter who you choose.

Note:
As some of you have experienced, PMG has used a similar set of questions in the past. However, we have improved on this idea with the help of the Mortgage Market Guide. This is a great service and one of a couple sources that we use to monitor the market. We want to thank them for providing the tips to expand on this idea! It is truly a wonderul tip for consumers.

Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"

Lease Purchase Tips

With lending guidelines tightening and more and more Americans struggling to make ends meet the lease with an option to purchase as grown in popularity. Both from a seller's/builders standpoint; trying to unload inventory and the lessee's standpoint trying to find a nice place for his/her family without the down falls of renting. The growing e-mails and questions I receive regarding this method has prompted me to lend (pun intended) some insight on the subject and perhaps give my audience a couple of pointers.

1) Have an attorney draw up the lease with an option agreement or have a real estate attorney review it. This will help both sides set-up the agreement from the very beginning and will also diminish confusion in the end. Not to mention it protects both the lessor and lessee.

2) Have the lease agreement recorded at the county courthouse. This is probably one you have not heard of but believe me it truly helps when you want to actually purchase the home as it solidifies your position with the lender.

3) Make sure you pay by check and once the check you have written clears the bank get a copy (front & back) of the cleared check. Do this for 12 consecutive months or more and again this solidifies our position with the lender.

4) If the lessor will allow I would suggest getting you added to title along with the current owner's. Again this will help with the lending angle when it does become time to purchase and close on the transaction.

5) Make sure you keep a log of any and all improvements that you do between the time the lease is executed and the closing of the transaction. Keeping receipts and verification for these items will definitely help with additional value and will solidify your equity position with the property.

Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker

Saving Tips. Anyone Interested?

I wanted to take just a moment and shift gears a bit. We typically try to relay what is going on in today's market. Sometimes this means national news and sometimes it is local. I want to talk briefly and provide you with a link to a different type of story that I think is important. The topic is SAVING! As mortgage professionals we take many applications. One common thread with many applicants today is a bit disturbing. There are a lot of people out there with very little money put away for a rainy day. Very little cash in checking or savings and little to no investments! It is no surprise that there are numerous people out there that live check to check. This trend is no doubt getting worse as inflation worsens. The price of goods are going up, the dollar is weak, and our incomes are not increasing to compensate! Not a good recipe to say the least. I don't bring this up to beat people up that are in this situation. If you are reading this I hope this doesn't apply to you. I bring this up for the ones it does apply to and to show you there are solutions out there.
Aside from switching jobs or careers to gain a larger paycheck, there are little things people can do each month to cut their expenses and save. There are 2 groups out there that fall in to a category that needs some help. The first is one is for whatever reason your household income is low and you have a large family to support. It is just flat out tough to make ends meet in today's economy. The second type are people that make good money, but blow it. This is the frustrating one. It makes no sense to spend every penny you make to try to and portray a certain image! This gets you nowhere and guess what? Most people could care less. Yeah I drive around and think to myself "Nice Car" if I see one, but after I drive a few blocks I have already forgotten about it. Nobody really cares when it comes down to it. I think you get my point. If you are someone living check to check or someone who just wants to put more money away for retirement, then this link is for you. No matter what your situation is, there is probably something on this list that can help. There are also many other helpful articles on the Internet. All you have to do is Google them. Just search for saving tips, budgeting help, etc.

Here is the link I mentioned above. 25 Ways to Save More Each Month!

I am not advocating a lifestyle that doesn't allow you to "live" a little. I for one don't want to be old, sitting at home thinking "What did I do with my life"? These are just some basic saving ideas. I know everyone can look at their budget and expenses and find ways to cut back. More than likely these items will hardly be missed. After you master some of these quick tips, if you want to take it to the next level you may want to get with a Financial Planner. A good advisor can plan out your financial future and help you reach your financial goals.

As prices increase nationwide and mortgage programs continue to be cut, more cash reserves are going to be critical. Gone are the 100% programs that allow someone to buy a home with little to no money. There are a few of these out there, but they are much tougher to get. Hopefully this article can give you just the little "umpf" you need to get moving in the right direction! It will open up more doors for you and will make your life a little less stressful!

Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"

Sellers Abundant and Buyers are Scarce

Mortgage Professionals are truly intertwined with the real estate community, which provides us with insight that others are typically not privy too. Over the course of this week I have spoken to numerous real estate agents, title company owners, appraisers, and account executives. All have concurred one thing; that sellers are very abundant and buyers are very scarce. I have broken this down the last two and half days to hopefully lend (pun intended) insight as to why this is the case.

We all know by now that the real estate market is going through a major transition right now. We have had huge lending cut-backs, increased inventory, heightened foreclosures, and delinquencies. This coupled with the overall un-willingness by large wholesale and retail banks to lend money in order to hoard their cash to improve their balance sheets. However, given all the negativity is this the real reason why the market is challenged? (especially in Boone County Missouri) I will offer a couple of "real" ideas at least from my vantage point as to why the market is still struggling to make the turn.

First, the bottom has not hit us yet. Yes that's right it is my belief that we are not at the bottom and perhaps will not see the bottom until the second quarter of 2009 at the earliest. I know this is a tough pill to swallow especially given the two plus years that we have battled through, however it's the truth! Look at the numbers, talk to the experts and speak to the individuals in the market and you would tend to believe this is the case. Second, since we are not at the bottom the buyer's that are out there are hesitant to pull the trigger until the bottom is reached. Why? Because they do not want to buy an already depreciating asset if they can hold out and buy at the homes lowest level. That puts them in the driver's seat and here's the kicker. They (the buyer) know they are in the drivers seat from the word go and patience is a virtue! Third, the buyers that are ready to act now, have something to sell. That's right we have a plethora of buyers that are ready and willing to take advantage of the market as it stands today. However, they cannot get their home sold and off the market. This is why I have seen agents turn down listings in order to keep their marketing overhead low. If it's a home that they know will take some time, needs some work, or a lot of advertising to sell they are simply turning down the listing and who can blame them. Lastly, the market as a whole simply has too much of an inventory of high-end homes. If you have looked at the labor market numbers then you have seen unemployment numbers steadily increase, weekly jobless claims rise, continued layoffs and firings, and big business consolidation. Individuals that could or can afford to buy some of these properties are waiting for the dust to settle to see whether or not they have a job and whether or not their pay is cut.

Please don't kill the messenger but I have always given you honest, candid, and unwavering reality to the market and this is the truth. Time will tell whether or not we can summon more vigor, strength, and optimism to weather the continued storm.

Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker

Tips on Buying Foreclosed Properties

With such a plethora of foreclosed homes on the market and the number continues to grow each and every week I thought it would be beneficial to know what to look out for when purchasing one of these homes both from a lending perspective and a consumer perspective. Obviously from a lending perspective we can give some insight on things to consider however, we have also been on the back end of some consumer/buyer issues that have arisen from these homes.

1) Get a home inspection: I cannot say enough about how important it is to pay the extra $200-$400 and get some piece of mind. Foreclosed properties usually have been vacant for quite some time and hence are subject to neglect unlike a normal owner occupied or new construction residence. It is not uncommon for the real estate agents listing these properties to winterize the home which means they shut off the water and electricity and rarely visit the property again. Also most of these homes have suffered some kind of deferred maintenance with issues such as, lawn care, foundation, cracking and chipped paint, etc. Most people searching for foreclosed homes want some sort of a deal, however make sure you do not use your "deal" money and re-invest it in an issue that could have been caught with a home inspection.

2) Get title insurance: The last thing you want after you have purchased the property are issues arising from title such as, tax liens, unknown easements, mechanics liens, etc. Get a reputable title company involved early so you can review the title commitment and make sure there are no surprises awaiting you after closing.

3) Look into the ownership history: How many times over the last two to three years has this property changed ownership. Most lenders ask for at least a twelve month chain of title concerning today's foreclosure transactions to guard themselves against a continued "flipping" routine. They want to make sure that the buyer/client is not getting a property that has continually changed ownership and hence "profit taking" and is left carrying the bag. There are specific Fannie Mae and Freddie Mac guidelines for "flipped" properties and you need to make sure that you are with a reputable and knowledgeable lender that can help guide you through this issue.

4) Is the property in livable condition?: Most lenders will not lend on something that isn't livable. A few minor or even perhaps medium issues will be OK, however if the home is missing cabinets, toilets, lighting fixtures, etc. that could be a problem. Again there are always exceptions to every rule but I at least want to make you aware of some things to consider when your shopping.

5) Use a Real Estate Agent: The right agent can save you time, money and lend some valuable insight on the above tips. Agents are the resource behind the local real estate market. They possess the knowledge and education to guide you through the items you should consider and can point you in the right direction for a contract, the terms, home inspection contacts, title company contacts, etc. The right agent is a must!

These are just a few items to consider when your out looking for foreclosed or distressed properties. Not every item can be a deal killer however you want to be well versed on the issues that could arise and how to handle them. The more knowledge and perspective you have on these properties the more efficient the transaction will go and the happier you will be!

Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker

Future FED Action. Will it be good or bad for us?

I don't know how many times during the week we field calls from people checking on mortgage rates. Obviously this is the business we are in, but lately the callers are asking a few more questions. This is a good sign in that these consumers are following the market and our economy more closely than in the past. The more educated consumers that are out there the better! Now back to the questions. These typically circle around the topic of today's rates and how future changes in the economy will affect them. They are mostly referring to the FED and the cuts or hikes they make from time to time. "Why did rates go up when the FED cut rates?" is a very common question we hear. It is a very good question and one we have addressed in our blog several times. The FED is not adjusting mortgage rates. They are making changes to the Federal Funds Rate or the discount rate. These are rates that affect what banks can borrow money at and more closely affects short term items like car and home equity loans. Mortgages are long term products and Mortgage rates are tied to how Mortgage Backed Securities (MBS's) perform. MBS's are bonds which are fixed assets, therefore inflation plays a key role on how bond traders value them. If inflation is deemed to be a problem in the future then MBS's are a bad investment and they pull their money out. By doing this, mortgage rates go up! Make sense?
This is a concept that has been very hard to grasp from some people and it is frustrating because it is expensive to track how MBS's are performing on a daily basis. People feel like they don't have much control when they are shopping around and want to monitor rates. This is even more of a reason to use a solid mortgage professional who monitors these indicators daily! Your mortgage is a lot of money and locking at the appropriate time is very important.

We have now come to a point where inflation is becoming more and more of a problem. Just today inflation surged 5.6%. With this being the case, the FED is no longer discussing rate cuts. They are talking about keeping the rate where it is or increasing it. A rate hike definitely seems likely and is probably overdue. Now based on what we just discussed, what do you think could happen to mortgage rates with a rate hike? If a rate hike is done it will be to fight off the effects of inflation which is good news for MBS's! What happens when MBS's come more into favor? That's right, mortgage rates improve! Will we soon see rates that were as low as they were a few years ago, I highly doubt it. However, I think we can all agree that fighting inflation and lower interest rates will be a GREAT sign! I tried to keep this explanation in very simple terms since this topic can get very complicated. I know when I study up and do research on the topic I get dizzy! I hope this information was helpful to some. If you are a realtor that that doesn't currently get a copy of our weekly newsletter and would like to, please email eric.hemmer@pmg-inc.net or shawnvt@pmg-inc.net. We will gladly put you on this list. With this tool we try to keep everyone up to speed on what is going on locally and nationally.

Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"

It's Official The Lending Integrity Seal is Here!

The time has arrived Professional Mortgage Group, Inc. and in particular Eric Hemmer & Shawn Von Talge have been recognized by the National Association of Mortgage Brokers (NAMB) as professionals with a higher level of education and integrity. You can visit their website to see who has earned this seal in the Columbia, Missouri area.

This seal certifies that we have completed at least six hours of continuing education with two of those hours in ethics training, we abide by a higher and strict code set by the NAMB, we have received recommendation letters from our peers and business partners, and we have passed the necessary test to achieve this honor. I have been an outspoken advocate for continuing education and testing for mortgage brokers for a very long time and I applaud the NAMB for taking the necessary steps to try and curb the unethical practices that have been highlighted in our industry the past couple of years. Hopefully the heightened awareness and competitive advantage that comes with having this seal will promote its use by more mortgage professionals.

Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker

FED Survey Says....Credit Is Tougher To Get.

The Federal Reserve reported the credit squeeze only got worse during the past 3 months and that most banks plan to stay very conservative for at least another year!
So even after all of the massive cutbacks and changes that our industry as undergone over the past 2 years, either more changes seem to be on the way or at the very least we will continue with the current environment. This doesn't really come as a surprise, but nevertheless these are the results the survey produced.

58% of Banks tightened lending standards for commercial and industrial loans to large and medium firms. 65% tightened lending standards for small firms.

81% of Banks tightened standards on commercial real estate, while 50% of banks said demand for these products was weakening.

74% of banks said they tightened lending standards for prime mortgages. At the same time 53% said they saw reduced demand.

86% of banks tightened lending standards for subprime mortgages. The total number of banks who offer such loans declined to 14% of all banks from 30% two years ago.

84% tightened lending standards on non traditional mortgages while 63% reported reduced demand in these products.

36% of banks were less willing to extend credit in the form of consumer installment loans.
Only 2% were more willing.

80% tightened lending standards on home-equity lines of credit.

67% tightened lending standards on credit cards. This was done mostly by refusing new loans to consumers without good credit.

When they refer to tighter lending standards they are refrring to the following:
Higher credit score requirements, more documentation is required, more collateral is required, and higher interest rate spreads are offered. It is also becoming more common for banks to ask for co-signers.

So from these results we can see that the credit crunch is still very much upon us. Tighter credit standards will hurt the economy and slow spending. There are less avenues for people to consolidate debt and they will lean more heavily on credit cards. I really think it is only a matter of time before these credit cards companies get pinched hard. It just makes sense for this to happen. Just look at one piece of the puzzle that makes up credit card consumers, the foreclosure market. All of these people who are foreclosing on their homes no doubt have credit cards. They probably have been relying on them heavily in the recent months trying to make thing work. When they finally run out of options and are forced to walk from their homes they surely leave credit card companies hanging too. Bankruptcy is the common alternative at this point for most people. If this pinch takes place I just hope it isn't as severe as the mortgage meltdown! That would be a mess!

While this information isn't very positive, I thought the survey results were very interesting to see and wanted to pass it along.

Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"

Climbing the Ladder

Now more than ever our industry needs true professionals to take the bull by the horns and step up and make a name for themselves. So in light of this I wanted to share with our readers some of the highlights and educational designations I have achieved over the past couple of months.

1) Lending Integrity Seal of Approval: I recently completed the requirements for this designation and hopefully any day now will be recognized by the NAMB (National Association of Mortgage Brokers) as an individual with a higher ethics and educational standard.

2) Nominated for the MAMB (Missouri Association of Mortgage Brokers) Board of Directors: Ken Louks the former President of MAMB has nominated myself as a future board member. I am greatly looking forward to getting involved in the governmental affair issues facing Missouri mortgage brokers and will do my best to represent us well.

3) Started preparing for my CMC (Certified Mortgage Consultant) designation: I am in the very early stages of the paperwork associated with this but am very much excited about furthering my educational background.

4) Mortgage News Daily Blog Contributor: Some of you may have actually used this free service and I must say the gentlemen behind the insight (whom I will not name) is extremely knowledgeable on the mortgage rate environment. At times I help lend some perspective on what I see in the mortgage rate market and my opinion on the avenues affecting them.

5) Scotsman Guide Author To Be: I recently wrote an article that will be published, hopefully sometime in October by the Scotsman Guide. I will give you further details as they become available but as of last Friday I did sign my Authors Contract for this publication.

Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker

Exciting Time For Columbia On The Horizon!

I know, I know this title probably made you say "Yeah Right" if you are in the Real Estate/Mortgage Industry. However, it is an exciting time on some fronts. Which ones?
Well summer is winding down and I would imagine most people are putting the finishing touches on their summer plans or vacations. I know I just got back from a quick trip that was long overdue! It is always refreshing to take a break! Another exciting topic is the fact that the highly ranked Missouri Tiger Football teams season is nearing! There is a lot of buzz floating around about this season and everyone seems to have high expectations. It should be awesome! The upcoming school year is also right around the corner. With the expected increase in the incoming class, the rental market in Columbia should be booming. With Football home games and the students back, more money will be pumped in the community! We all know that the local economy will benefit from this! Anytime this happens there should naturally be a ripple effect that will benefit most people in a positive way. I hope our industry will benefit a little bit from this!

We wish everyone a prosperous coming months in the real estate world and hopefully we will have the pleasure of working with you. If not, hopefully we will see you at some home football games rooting on the Tigers! It should be fun!

Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"

The Freddie Mac Bomb!

Well it shouldn't have come as a surprise but Freddie Mac the world's 2nd largest buyer of mortgages lost $821M in the second quarter 08 compared to a profit of $729M a year ago. The news shocked Wall Street as most analysts were only figuring a loss of .38 cents a share but in reality received $1.63 a share. Hence, Freddie's stock has lost 20% already this morning. The reality of this financial news will hit the real estate community hard as Freddie's results have shaken investors confidence and as a result MBS (Mortgage Backed Securities) have sold off big time and are currently down 45 basis points. What does this mean? Higher rates will be a certainty this morning.

Fannie Mae the world's largest buyer of mortgages will release their second quarter results on Friday so we could be in for more bad news. Not that this comes as a big surprise but I think investors are looking for the bottom in this mess in order to instill confidence in their (Fannie & Freddie) financials. Certainly the moves made by the government toward the end of last month gave some creditability to the government sponsored agencies but the fact remains that the companies poor performance, concern over capital requirements, the ability to raise capital and the struggling sector for which they must profit on have really hit these companies in a big way. The bottom line when deciding to invest dollars in a company is it's ability to make money and right now there are big concerns whether or not this is possible in the near term future.

Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker

Does Your Broker Fight for You!

In today's volatile market changes are coming in bunches. It comes as no shocker that programs are being cut and underwriting guidelines are tightening! With this comes a very important point I would like to focus on. Does your broker or loan officer fight for you and your loan. I am not talking about trying to quote you a low rate to get the deal. This is after you have done your comparison shopping and picked your lender. If you don't know the answer to this, you should do your homework to find out if the lender you are working with has the experience and work ethic to get the job done.
Number 1, the broker should discuss with you ahead of time what potential issues your loan will have. By doing this, you know exactly what to expect and this is critical. Why is it critical? With today's super tight underwriting guidelines your broker can run into several road blocks throughout the loan process. If your broker doesn't know how to deal with these situations, your loan could be turned down for a silly reason! Believe me it happens. I would like to think an underwriter knows their stuff, but this isn't always the case. I have run into several underwriters that give you an answer or decision and they are just winging it rather than doing their homework or asking a supervisor. You are not doing your job as a broker if you aren't keeping them honest! Just this week we encountered 2 cases where we fought for our borrower and got an issue resolved after the underwriter had declined the loan. They see so many files and they are not in tune with the file like we are. You simply cannot just give up and go with whatever the underwriter says. If it makes sense that the file gets turned down, then fine. Not to make light of the foreclosure problem, but it is obvious that many loans over the past few years should have been turned down! However, if it doesn't make sense you better believe we will fight it! Underwriters are not taught to think outside the box and frankly this isn't their job. As a broker you have to point out the obvious and many times this is all it takes. At PMG we have been handed many files that failed at other lenders. On numerous cases we have been able to close the loans after working hard to fight through a few bumps in the road. An experienced broker should be able to do this for you!

Brought to you by:
Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"

Revised Bill Concerning FHA Down Payment Assistance

Hopefully by now, especially given our latest blog post you understand the impact of H.R. 3221. A bill signed into law by President Bush last week revamping the mortgage industry and more significantly Fannie, Freddie and the FHA lending program. One of the key components of the FHA legislation was the removal of DPA (Down Payment Assistance) from the program. Basically this was a fairly unique program in which the sellers actually made the down payment for the buyers typically built into the sales contract and resulting in an inflated sales price. This was fine as long as the home appraised for the necessary value and has operated pretty well given today's environment.

In my opinion the removal of the program was far more significant than what many people think. Not only do the buyers have to come up with the money out of their own pocket but instead of 3% it is now 3.5%. In a market already starving for buyers this action simply adds fuel to the fire in the ever growing struggle of some normalcy in the housing market. The NAMB (National Association of Mortgage Brokers) and now a couple of U.S. Representatives agree that this change is a mistake. On Thursday July 31st H.R. 6694 was introduced by Al Green (D-TX), Maxine Waters (D-CA), Gary Miller (R-CA) and Christopher Shays (R-CT). This bill aims to reverse or revise the requirements for the seller-financed down payment assistance. NAMB will work in conjunction with Congress to reinstate this vital program that has helped so many Americans achieve the dream of home ownership. Only time will tell whether or not this battle can be won as FHA has experienced significant losses as a result of this particular program.

Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker