Mortgage Forecast for the Week

The ride isn't over...the coming week may see more wild movement in the markets, as the financial sector responds to all the recent action, along with several reports due in the latter part of the week. We'll get a read on the housing market with Wednesday's Existing Home Sales Report and Thursday's New Home Sales Report. And we will get a read on the economy with Friday's Gross Domestic Product Report (GDP is the broadest measure of economic activity) and Thursday's Durable Goods Report.

What are "durable goods"? Simply put, they are items that are durable (i.e. cars, furniture, appliances, games, cameras, business equipment, etc), and are made to last longer than three years. This report shows a good measure of consumer and business consumption and buying behavior, and depending on the health of the report, could add to the volatility we have seen.
Remember when Bond prices move higher, home loan rates move lower...and vice versa. Bonds and home loan rates are still much improved from several weeks ago, despite giving up some recent gains. This could be a great time to take a close look at your home loan financing needs, as rates remain at historic lows. As always, I will be watching closely to see how Bonds and home loan rates continue to respond in these volatile times.

Ernest Tepman
President
The OCD Group Inc.
Los Angeles: 800-963-4623
San Diego: 877-863-4623
E-Mail: mmg@theocdgroup.com

Five Fantastic Freebies

These days, many people are looking for new ways to cut costs and save money. Here are five great ideas from the editors of Kiplinger:

Free TV & Movies: Full episodes of more than 300 shows from NBC Universal and Fox stations are available on www.hulu.com. The site also offers over 165 free full-length movies in a variety of genres. In addition, other networks like ABC and CBS are also starting to post full episodes of various shows on their Web sites.

Free College Savings: Sign up at www.Upromise.com and you can turn everyday purchases into college savings. You'll earn cash rewards for eligible purchases of groceries, gas, dining out, travel, and online shopping. The money is then automatically transferred to your child's 529 account. In addition, your family and friends can help, too, by linking their rewards to your Upromise account.

Free Directory Assistance: The next time you need to call 411, dial 1-800-FREE-411 instead for free directory assistance for both residential and business listings. While you may have to listen to a short advertisement after the voice prompts, you will still save a few dollars.

Free Credit Report: By law, you can receive one free credit report once a year from each of the three main credit bureaus. Visit www.annualcreditreport.com to request your report.

Free Recipes: Need some inspiration in the kitchen? Check out www.allrecipes.com and www.Epicurious.com where you can access over 100,000 recipes for all kinds of meals...no matter your level of expertise. You can search by meal, occasion, or ingredient, and there are plenty of user reviews and cooking demonstration videos to help.

For twenty-five more great freebies, visit www.kiplinger.com/features/archives/2007/08/free.html.

Ernest Tepman
President
The OCD Group Inc.
Los Angeles: 800-963-4623
San Diego: 877-863-4623
E-Mail: mmg@theocdgroup.com

Stated Home Loan for 5.5% - 30 yrs FIXED - only for our valuable clients

BEST HOLLYWOOD HOMES TEAM WORKS WITH MORTGAGE BROKERS THAT CAN HELP YOU WITHOUT COMPROMISING THEIR INTEGRITY.

Call Best Hollywood Homes Team at 310-499-1305 to discuss your real estate needs first with our real estate consultants. After we mutually agree to work together on your next real estate purchase, we will put you in touch with a mortgage specialist for you to discuss your financial situation with them.

These are the best that I've seen rates in months. The market responded very favorably to the nationalization of Fannie and Freddie. These programs have barely been affected by the changes in the marketplace.

Here are some real loan options for "Stated" income borrowers:

--5.5% 30 year FIXED STATED!!
Available to $417,000 (small combo 2nds also available)
Will lend to 90% LTV (for employees, 80% for Self Employed) same rate up to 90%.
Owner Occupied and Second Home
PURCHASE, CASH OUT or REFI
Minimum 700 FICO
No reserve requirement
2.0 points + $995 broker fees (for 5.5%)
5.875% available at 1.0 point +$995
No points available at 6.25%


--INVESTOR 30 year fixed at 6.375% STATED!
Available to $417,000
Will lend up to 80% LTV
Maximum 4 financed properties, including primary
Purchase, Refi, and Cash Out
1 unit ONLY
2 months reserves
Seller can credit up to 2.0% towards closing costs
700 Minimum FICO, 720 preferred
6.375% Rate based on 75% LTV. At 80% it is 6.75%.
1.25 Point + $995 broker fees


--INVESTOR 30 year fixed at 6.375% STATED!
Available to 729,500 in high cost counties or county limit
Minimum 720 FICO required
will lend to 80% on Purchases and Rate and Term ONLY
--NO Cash out loans
1.0 point + $995
Only 2 months reserves


To qualify a buyer for a "Stated" loan a credit must be pulled and have a complete loan application.

***These programs are designed to help those who normally would be well qualified borrowers who now have a difficult time meeting lender requirements. OUR MORTGAGE SPECIALISTS WILL NOT DO A LOAN that compromises their integrity and challenges a borrower's ability to repay. 90% Stated loan will be only done for those borrowers who have another source of income that cannot documented.

Proposal to permanently end the current mortgage crisis by using the free market system aka “The RC Stabilization Act"

All Freddie Mac and Fanny Mae Mortgages originated between Jan 1, 2002 thru Dec. of 2007 that are interest only or arm loans will be placed into a separate category bundle.

1) Their original teaser rate will not change. It will last for the life of the note.
2) All these loans will be converted to 40 yr loans
3) All these loans will have a call feature at 30yrs by the US Government at current market value at the time of exercise of the call feature, but no greater than 100% of the balance of the loan on the note that is left.
4) At the end of 20 years the note may increase 1% point above the original teaser rate.
5)All of these loans will be fully assumable by any buyer based on the original loan requirements.
6) All the interest paid on these notes will be federal tax free to the note holder be it a private individual or any entity or any US Corp.
7) States that agree to making these notes state tax free by a simple majority of their legislator may participate in this program.
8) The interest on these note will also be state tax free to the holder of these notes.
9) All these notes can be bought and sold at any time by any Private individual or entity.
10) All these notes must be serviced by a note service co. on an approved list by the federal gov’t. no exception.
11) All participating states must approve their participation no longer than 45 days after this program is enacted by the federal gov’t.
12) All these Loans may be paid off at any time without any prepayment penalty.
13) The original sale of these notes must be done on an auction basis thru the top 40 stock and bond dealers on the US stock markets and by the top 40 US banks and The US Treasury in the US. Consequent trading may only be done thru all the same licensed and noted companies on the NYSE, NASD and US Chartered Banks . All Trades must be fully disclosed and reported to the NYSE, NASD within 20 minutes of a transaction.
14) The US gov’t must sell thru all the above entities at a minimum, increments of $25,000. Pieces of these bundles to private US Citizens, or individuals just like treasuries. No fee in excess of typical US Treasury fees may be charged to buyers at the initial auction of every bundle.
15) The US federal gov’t must guarantee the right by private individual public participation in the auction by individual US Citizens’ up to a 25 % priority on every bundle sold.
16)Existing note holders may hold on to their notes under all the above terms and must notify the payees of the change in the note rate back to its original rate within 30 days of the passing of the stabilization Act.
17) Existing note holders may transfer the ownership only under a sale thru the existing trading scenario as described above.
18) Mtortgage Service companies will manage, service and foreclose on properties that are in default should the mortgage payee still not be able to perform on the original teaser rate of each note. Starting 90 days after the Stabilization Act is implemented. The Mtge. Service Co.’s may appoint, and hire the necessary individuals to sell the properties as they always do. All mortgages on every property even in foreclosure can be assumed by any buyer under the original rates and terms and fees. A maximum transfer fee of 1% of the balance of mortgage will be allowed.
19) This proposal was originated in order to Stabilize the mortgage loan market. It is designed to encourage foreign and domestic investors to invest in mortgage backed securities by stopping all foreclosures in one move. All foreclosures will be halted for a 60 day time period to implement the above plan and notify all mortgage payees and all mortgage holders.

Proposal to permanently end the current mortgage crisis by using the free market system aka “The RC Stabilization Act"

All Freddie Mac and Fanny Mae Mortgages originated between Jan 1, 2002 thru Dec. of 2007 that are interest only or arm loans will be placed into a separate category bundle.

1) Their original teaser rate will not change. It will last for the life of the note.
2) All these loans will be converted to 40 yr loans
3) All these loans will have a call feature at 30yrs by the US Government at current market value at the time of exercise of the call feature, but no greater than 100% of the balance of the loan on the note that is left.
4) At the end of 20 years the note may increase 1% point above the original teaser rate.
5)All of these loans will be fully assumable by any buyer based on the original loan requirements.
6) All the interest paid on these notes will be federal tax free to the note holder be it a private individual or any entity or any US Corp.
7) States that agree to making these notes state tax free by a simple majority of their legislator may participate in this program.
8) The interest on these note will also be state tax free to the holder of these notes.
9) All these notes can be bought and sold at any time by any Private individual or entity.
10) All these notes must be serviced by a note service co. on an approved list by the federal gov’t. no exception.
11) All participating states must approve their participation no longer than 45 days after this program is enacted by the federal gov’t.
12) All these Loans may be paid off at any time without any prepayment penalty.
13) The original sale of these notes must be done on an auction basis thru the top 40 stock and bond dealers on the US stock markets and by the top 40 US banks and The US Treasury in the US. Consequent trading may only be done thru all the same licensed and noted companies on the NYSE, NASD and US Chartered Banks . All Trades must be fully disclosed and reported to the NYSE, NASD within 20 minutes of a transaction.
14) The US gov’t must sell thru all the above entities at a minimum, increments of $25,000. Pieces of these bundles to private US Citizens, or individuals just like treasuries. No fee in excess of typical US Treasury fees may be charged to buyers at the initial auction of every bundle.
15) The US federal gov’t must guarantee the right by private individual public participation in the auction by individual US Citizens’ up to a 25 % priority on every bundle sold.
16)Existing note holders may hold on to their notes under all the above terms and must notify the payees of the change in the note rate back to its original rate within 30 days of the passing of the stabilization Act.
17) Existing note holders may transfer the ownership only under a sale thru the existing trading scenario as described above.
18) Mtortgage Service companies will manage, service and foreclose on properties that are in default should the mortgage payee still not be able to perform on the original teaser rate of each note. Starting 90 days after the Stabilization Act is implemented. The Mtge. Service Co.’s may appoint, and hire the necessary individuals to sell the properties as they always do. All mortgages on every property even in foreclosure can be assumed by any buyer under the original rates and terms and fees. A maximum transfer fee of 1% of the balance of mortgage will be allowed.
19) This proposal was originated in order to Stabilize the mortgage loan market. It is designed to encourage foreign and domestic investors to invest in mortgage backed securities by stopping all foreclosures in one move. All foreclosures will be halted for a 60 day time period to implement the above plan and notify all mortgage payees and all mortgage holders.

STATEMENT about Fannie Mae and Freddie Mac

This weekend, the U.S. Dept. of the Treasury placed Fannie Mae and Freddie Mac, government sponsored enterprises (GSEs), into a conservatorship. The federal government is authorized to take up to an 80 percent stake in the companies, and, as part of its duties under the conservatorship, will review both Fannie’s and Freddie’s financial condition quarterly, as well as inject money into the operations as needed. Under the conservatorship, both GSEs will be allowed to increase their mortgage funding over the next year and a half, then, beginning in 2010, the plan calls for a reduction in their portfolios of 10 per cent a year until they have been reduced to $250 billion. As part of this weekend’s action, both CEOs were relieved of their duties and Herbert Allison, former Merrill Lynch vice chairman, and David Moffett, former U.S. Bancorp CFO, were selected to lead Fannie Mae and Freddie Mac, respectively.In light of the U.S. Dept. of the Treasury’s action, C.A.R. today reaffirmed its support for Fannie Mae and Freddie Mac and their countercyclical roles.While the short-term impact of the Treasury’s actions over the weekend served to calm the markets and restore confidence, in the longer term these entities need to be able to fulfill their historic mission. A privatized Fannie and Freddie will short-circuit the countercyclical role the GSEs have played during precarious times in real estate markets.Without an institutionalized mortgage-backed securities market, mortgage capital eventually will be less predictable and more expensive, and adjustable-rate mortgages could become the standard loan for home buyers, as could higher down payment requirements. The 30-year, fixed-rate mortgage as we know it will no longer be readily available for most home buyers and may effectively disappear. The result could be a dramatic decline in homeownership rates in California and across the nation.C.A.R. is concerned that the Treasury, and Fannie Mae’s and Freddie Mac’s new CEOs, will overreact and change the mission and role of the GSEs. Wall Street and investors are understandably reluctant to buy mortgage backed securities (MBS) that are not either originated from or guaranteed by Fannie or Freddie.The GSEs hold or have securitized nearly half -- roughly $5 trillion -- of all mortgages in the U.S., and in the current environment with private lender constraints, they account for the vast majority of all new mortgages in California.We have just recently begun to see an increase in home sales, currently at nearly 490,000 units on an annualized basis, up from 284,000 in the fourth quarter of last year. The most significant, reliable source of home loans in California today are financed by either Fannie Mae or Freddie Mac. California’s and the nation’s housing markets simply cannot withstand the financial rug being pulled out from beneath them. Additionally, the repercussions this could have on the already weak economy could be devastating. Full Article

Grocery Shopping Tips

With food prices still soaring, supermarkets are offering many deals and specials to lure in food shoppers. But sometimes, these good deals can actually cause people to spend more than they would have otherwise. Phil Lempert, author of Being the Shopper: Understanding the Buyer's Choice, offers these smart-shopping tips:

Limit Four Per Person: Scarcity can have a powerful impact on shoppers. A buying restriction can tempt people to buy more than they need, which could cause items to either spoil or sit in your pantry for a long time. Tip: In the long run, when you factor in the amount of products that spoil or are eventually thrown away, you will usually be better off financially if you only buy the amount you reasonably need and can use.

End of Aisle or Freestanding Displays: Often the "specials" displayed on the end caps of each aisle or on an island display aren't really the best deals that the store currently offers. These displays may also lead to impulse buys that you weren't intending to make. For instance, a display with graham crackers, chocolate, and marshmallows could make you think, "I'll make s'mores for dessert." Tip: While the location of these items is convenient, especially during busy shopping hours, you should only buy these items if they really are good deals.

Buy One, Get One Free: While these deals can make you feel like you are getting something for half price, if the cost is more than that of a similar item...or if you don't need a large quantity...than this may be one special worth passing on. Tip: Ask the manager if you can buy one item for half the price instead of buy one get one free. While stores don't always advertise this alternative, they often allow it.

Pre-Sliced Produce: While pre-sliced produce can feel like an easy choice, it can cost twice as much as whole produce, and can spoil faster than whole produce. Tip: Pay extra for prepared meals and produce only if the time and effort they save you is significant and really worth it.For more great grocery shopping tips, visit www.supermarketguru.com

Are you a State of California Employee?

Are you a State of California Employee (example: Cal Highway Patrol, CalTrans, State Prisons, State Hospitals, DMV, Franchise Tax Board), County Employees (examples: City Parks & Recreation, City Mayors Office, City Fire Department, City Libraries, City Clerk Office), Municipal Employees (examples: City Utilities workers, LA DWP, Calif Legislature Employees, including Judges, Court reporters, School Employees, Cafeteria, Administration, Custodians Yard Maintenance, California State University System Employees

Rates for conforming loans up to $417,000
and JUMBO loans up to $1,668,000.00 !!!!!!.


Check out these benefits for CalPERS Members:

• Competitive Interest Rates on Purchases & Refinances

• 100% Financing Options*

• Controlled Closing Costs

• 30, 60 or 90-Day Rate Lock with 2 float down Opportunities*

• Reduced Mortgage Insurance Rates*

• Reduced Escrow & Title Fees*
• Closing Cost Assistance*
• Real Estate Assistance with Cash Rebate*
• Program Available Nationwide!

Please call me if you have any questions regarding this program!

Todd DwyerLet me be the Mortgage Professional you Deservetodd@todddwyer.comwww.USFHMTG.com
Direct 310-500-7801* subject to approval