Aloha Friday,

Well what a difference a week makes. The rates have come back down this week. The Rolaids are on my desk as this roller coaster is getting exhausting. After an increase in rates last week, we have seen rates go back to lower levels from two weeks ago again. The 10 year treasury has gone down by about .20 basis points easing rates by about a .25% on a few programs.

The good news this week is that the government is going to allow the First Time Home Buyers credit to be used as part of the borrowers down payment. This will help as it allows borrowers an instant credit through escrow instead of waiting until the end of the year for the tax credit when their tax returns are filed. You can read more about this at

http://www.forexhound.com/article/Stocks/Stocks/Tax_Credit_as_Mortgage_Down_Payment_Now_Official_Federal_Government_Policy/132421

I don’t usually do this, but I thought I would mention a very unfortunate event that occurred today. One of my good friends and realtors is purchasing an investment property for themselves in this great buyers market. Wells Fargo declined the loan as the person purchasing the property is a realtor representing themselves in the purchase. What is this industry coming to? A realtor cannot take advantage of this great buyers market and buy a property for themselves? I am not exaggerating this issue. They were turned down simply because they were a realtor buying their own property. Incredible. Where does it stop? 

This brings up a good point. Why do business with a broker? In this unfortunate circumstance I was able to re-submit this loan within an hour; literally. We uploaded this file to another lender and we look to have an answer in a few days. If this was submitted directly to the bank they would have to re-apply and start from scratch; so, another 30 days until approval. Over the 22 years I have been in lending there have been many banks that have approached us to join their team. We remain committed to the brokerage industry so that we can serve you and your clients in a more independent manner, representing you and your client to get the deal closed. Not a bank that makes the rules up as they go.

I hope you have a great weekend planned. Please let us know if we can help in any way.

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