The Lists Day- Updated FTHB Programs in D/FW List, 3rd Quarter Zillow Apprec/Deprec List, Store Closing List, Market Update

You will find that today’s update is the... Lists Day. It was not intentional- just a lot of information to get out to you! We have the “new and improved” updated list for the First Time Home Buyer Programs available in Dallas/ Fort Worth; We have the 2008- 3rd Quarter Zillow Appreciation/ Depreciation List for our area; and we have the dreadful list of stores that are closing and information about gift cards that I would highly recommend that you send out to your clients (as their trusted advisor). In addition to “the lists”, you will find below the market update… and boy was it an interesting one last week. But before we start “The Lists”, I hope that you have enjoyed our continuation on The Law of The Harvest and have found it beneficial and encouraging. As we have said before, we always want to be your information source, but we also love to reap our harvest and appreciate you having us be your mortgage lender of choice. Our team is knowledgeable, experienced and all have their underwriting certifications so there are no surprises at the end- let us know when we can be of assistance to you and your buyer. We can be reached at 972-278-3400, email at ldavidson@servicefirstmtg.com or our website at www.davidsongroup.net. Top 5 Innovative Ways to Jump Start Your 2009 I will be joining North American Title on Friday, December 5th in a presentation of “Top 5 Innovative Ways to Jump Start Your 2009”. This will be a fun, fast and informative talk on how to make 2009 start strong and I am so excited to present this- I have lots of fun surprises and cant wait to share! Hope to see you at one or all of these events on 12/5. See below for more information. Note that all address below are for North American Title (NAT) Where Address Time Food Served NAT Mesquite 2424 Gus Thomasson Rd, Mesquite, TX (972) 270-2488 12/5- 9 AM- 11 AM Breakfast NAT Garland 5435 N Garland Ave, Garland, TX (214) 703-9607 12/5- 12 Noon- 2 PM Lunch NAT Rockwall 3007 Ridge Rd, Rockwall, TX (972) 771-0667 12/5- 3 PM- 5 PM Wine & Cheese LEARN The Top 5 Innovative Ways to Jump Start Your 2009, EAT lots of food, NETWORK and WIN door prizes and give aways. Come to one or come to all…..We just would love to see you there! Looking for monies for your First Time Home Buyer? Dallas County Money- $7500 towards Down payment, Closing Cost and Prepaids: These cities only: Balch Springs Cedar Hill (Dallas County Part) Cockrell Hill Coppell (Dallas County Part) Desoto Farmers Branch Glenn Heights (Dallas County Part) Hutchins Lancaster Rowlett (Dallas County Part) Sachse Seagoville Wilmer City of Dallas Money- $10,000 towards Down payment, Closing Cost and Prepaids City of Garland Money- $10,000 towards Down payment, Closing Cost and Prepaids City of Terrell Money- $10,000 towards Down payment, Closing Cost and Prepaids City of Plano Money- $5,000 towards Down payment, Closing Cost and Prepaids City of Arlington Money- $10,000 towards Down payment, Closing Cost and Prepaids City of Denton Money- up to $14,900 towards Down payment, Closing Cost and Prepaids City of Irving Money- up to $10,000 (for existing) and up to $30,000 (for new construction) towards Down payment, Closing Cost and Prepaids City of Fort Worth- up to $14,999 towards Down payment, Closing Cost and Prepaids We are still anticipating bond monies for Texas but have still not heard of the release date (most likely by the end of the year). We are also anticipating $20,000 in Fort Worth funds for foreclosed properties, but those funds will probably not be released until next year (around March (ish)). Remember that each program has their own restrictions and stipulations so it is important that you talk to a mortgage professional that understands these programs (that would be us :)). We can be reached at 972-278-3400. Zillow Real Estate Market Reports Third Quarter: July-September 2008 U.S. home values continued to slide for the seventh consecutive quarter, declining 9.7 percent from a year ago, and falling 12.8 percent since the market peak in 2006. This is also the first quarter a significant number of markets show flat or negative five-year annualized change. Additionally, one-third of homes sold in the past 12 months sold for a loss, and 14.3 percent of all homeowners have negative equity. Zillow Q3 Real Estate Market Reports track 163 metropolitan statistical areas (MSAs) throughout the U.S., identifying market trends including, but not limited to: five and 10-year annualized change, homes selling for a loss, negative equity and foreclosure transactions. We have listed below the home values (per Zillow) for the Third Quarter (July- September 2008) City +/- Allen 1.3 Arlington -2.0 Balch Springs -4.1 Bedford 0.2 Colleyville -4.6 Coppell 2.8 Dallas -3.3 Duncanville -0.7 Euless 0.8 Fairview -3.7 Farmersville 2.6 Flower Mound 2.9 Forney -9.1 Frisco -1.2 Garland -3.2 Grand Prairie -1.1 Grapevine 3.3 Highland Village 1.1 Irving -3.0 Lewisville 3.0 Mesquite -3.7 Murphy -5.1 Nevada -2.2 Plano 2.5 Princeton 3.0 Richardson -0.1 Rockwall 1.5 Rowlett 5.5 Royce City 0.6 Sachse 1.1 Seagoville -1.6 Southlake 0.0 Terrell 6.1 The Colony -1.6 Wylie 1.0 The following list was sent to me. This would be great information to forward to your clients as their trusted advisor. Note that I have verified the information against www.snoopes.com. Also see more information below from an article last Sunday in the Dallas Morning News. Watch those store money cards and gift cards.. and credit slips! Stores that informed the Security Exchange of closing plans between October 2008 and January 2009. Circuit City stores... filed BK- will be closing multiple stores Ann Taylor- 117 stores nationwide are to be shuttered Lane Bryant,, Fashion Bug ,and Catherine's to close 150 store nationwide Eddie Bauer to close stores 27 stores and more after January Cache will close 20-23 stores Talbots closing down all kids and men stores and 22 of the women stores GAP closing 85 stores Footlocker closing more stores- so far 334 stores have been closed Wickes Furniture closing down Levitz closing down remaining stores Bombay closing remaining stores Zales closing 105 stores Piercing Pagoda closing all stores Disney closing 98 stores Home Depot closing 15 stores Macys to close 9 stores after January Linens and Things closing all stores Movie Galley closing 160 stores Pacific Sunware closing 153 stores Pep Boys Closing 31 stores Sprint/ Nextel closing 125 stores JC Penney closing some stores after January Ethan Allen closing down 12 stores. Wilson Leather closing down 188 stores Sharper Image closing down 90 stores K B Toys closing 356 stores Pier 1 Imports will be closing an unspecified number of stores Friedman Jewelers will be closing an unspecified number of stores Kirkland’s to close 40-130 stores Dillard's to close some stores According to the Dallas Morning News, shoppers sent an estimated 26.3 billion on gift cards at retailers last Christmas season, compared with $24.8 billion in 2006 and $18.5 billion in 2005 (using data from the National Retail Federation). Consumers Union said that when Sharper Image filed for bankruptcy protection this year, it left an estimated $20 million on unused gift cards and maybe as much as $40 million when merchandise certificates and related promotional cards where included. In August, home-furnishing retailer Bombay Co., which closed 388 stores, won approval from a U.S. bankruptcy judge to pay off gift card holders at 25 cents on the dollar. It is said that gift card holders could lose more than $75 million just from store and restaurant closings in 2008 (per Tower Group, a consulting company). Consumer Reports offers the following tips to gift card givers and recipients: GIVERS 1) Think Twice About Bank Cards. While bank cards can generally be used at more retailers than store cards, they are often loaded with fees and restrictions. 2) Check the Merchant’s Prices. It’s annoying to get a $25 gift certificate for a store that sells little at that price. When selecting a store-issued card, find out how much things generally cost and get a card with a least that value. 3) Send Along The Receipt. Some issuers required the original receipt to replace a lost, stolen or damaged card. RECIPIENTS 1) Register It. Some cards must be registered with the issuer, especially if the card is used for purchases made online or by phone. 2) Spend It Quickly. Use the card as soon as possible, especially if it expires or has a monthly maintenance fee. 3) Spend It To The Last Penny. If the card balance gets so low that there’s nothing to buy, ask a merchant to do a split-tender transaction. That involves using the remaining card balance for part of the transaction and another form of payment for the rest. 4) Hold On To It. Don’t throw out the card when the balance is zero. Some merchants require it for returns. Market Update The material below has been prepared by an independent third-party provider- Mortgage Market Guide. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is not without errors Last Week in Review "THE IMPORTANT THING IN THIS WORLD IS NOT SO MUCH WHERE WE STAND, AS IN WHAT DIRECTION WE ARE MOVING." Oliver Wendell Holmes. And when it comes to the direction our economy may be moving, there was some surprising news from the Fed last week that the "Minutes" from their October meeting revealed. After years of being concerned about inflation, the Fed is now concerned about deflation. So what exactly is deflation? Deflation is when prices drop, which generally is due to lack of demand, and therefore lack of pricing power. With the economy slowing down, we are hearing economists forecast that we may be in for a deflationary recession. In a deflationary environment, investors flee into fixed instruments like Bonds, because the fixed payment received would actually buy them more goods and services over time as prices decline. So what does this mean for home loan rates? Remember, home loan rates improve as Bond pricing moves higher - and more demand for Bonds would mean higher prices for Bonds. In the spring of 2003, when Alan Greenspan uttered the "D" word, deflation, Bonds rallied 400bp in just a few weeks, bringing a significant drop in home loan rates. Of course, the economy is different right now, but as more money may be headed towards Bonds in a deflationary environment, we could again see a significant improvement in home loan rates down the road. On the inflation front, last week's Producer Price Index indicated that wholesale inflation plummeted last month - by the most since records began in 1947 - largely due to declines in energy prices. In addition, the Consumer Price Index showed that inflation at the consumer level fell by a record 1.0%, thanks again to lower costs of energy. When it comes to the direction the economy is heading, the week did end with some hopeful news. Federal Reserve President Jeffrey Lacker said that an economic recovery could begin in 2009 as low interest rates, low energy prices, and less drag from the housing sector may shore up spending. In the meantime, Bonds and home loan rates spent much of last week trading near a key level of technical support called the 200-Day Moving Average, finally moving and staying above this level on Friday. As a result, Bonds and home loan rates ended the week unchanged than where they began. WHEN IT COMES TO CREDIT SCORES, IT'S MORE IMPORTANT THAN EVER TO DO ALL YOU CAN TO KEEP YOUR SCORE MOVING IN THE RIGHT DIRECTION! CHECK OUT THIS WEEK'S MORTGAGE MARKET VIEW FOR HOLIDAY SHOPPING TIPS THAT WILL HELP KEEP YOUR CREDIT SCORE ON THE UP AND UP. Forecast for the Week It will be a holiday shortened week in the markets as Thanksgiving is celebrated, but there are several important reports that could determine which direction Bonds and home loan rates move. On Tuesday, the Gross Domestic Product (GDP) Report will be released, and on Wednesday we will get the details on the Fed's favorite gauge of inflation, the Core Personal Consumption Expenditure (PCE) data, from the Personal Income report. Given the Fed's recent talk of deflation, it will be important to see what these reports reveal. Also on Wednesday, we'll get a read on consumer and business consumption and buying behavior from the Durable Goods Report. Durable goods are items that are non-disposable, like cars, furniture, appliances, games, cameras, business equipment, etc. In addition, we'll get a read on the housing market with Monday's Existing Home Sales Report and Wednesday's New Home Sales Report. Stocks hit some important technical support last week, and bounced higher on Friday, with the rally being boosted by the appointment of incoming Treasury Secretary Timothy Geitner. Some follow through to the upside in Stocks could pull money out of Bonds and cause some short term worsening of home loan rates...but if deflation starts grabbing more headlines, smart money will be headed towards Bonds, which will help home loan rates improve. Keep an eye out for words from SEC Chairman Chris Cox, who must comment on some potential easing to "mark-to-market" accounting before January 2nd. If there is indeed some easing in mark-to-market accounting - which accelerated the financial crisis - it could set off a significant...perhaps very significant...rally in Stocks, which may temporarily hurt Bonds and home loan rates. The Bond market will be closed on Thursday in honor of Thanksgiving, and will also be closing early at 2:00pm ET on both Wednesday and Friday. The Mortgage Market View... (This is a Great Article to Cut and Paste for Your Clients) Save on Your Credit Score this Holiday Season With the economy slowing and holidays just around the corner, many consumers may be looking to credit cards to help them get through the heavy shopping season. While that may be a good short-term solution, you want to make sure you don't overlook the long-term impact on your credit rating. After all, the actions you take today could hang over your head for years to come--and may make it tough for you to get the home loan or car loan you want in the future. To help you make sure you manage your credit cards--and your credit score--during the upcoming holiday spending season, follow these steps: Double-check your card limits. Many credit card companies today have started lowering credit limits. That means you have less credit available, but it also may mean that your credit score is about to take a hit. That's because approximately 30% of your credit score is based on the amount you owe in relation to your available credit. So, if a credit card company cuts back your limit, you may find that you're suddenly almost maxed out. That's not a good sign for your long-term credit score rating. Ask, pay down, or move around. If some of your credit limits have changed or are nearly maxed out, you can take a few steps to help alleviate the problem. First, consider simply asking for a higher limit to your card...not necessarily to use up with spending, but to allow more unused credit line to be available and therefore boost your credit score. You can also pay more money to the cards that are near the credit limit, if you can. Or, if you have cards with little to no remaining credit line, transfer some of the larger balances onto the cards with lower balances. That'll give you a more... well... balanced financial picture. Leave home without it. One of the best tips for the holiday season is to: make a budget, identify specific items, and then leave home without your credit card. Instead, bring just enough cash to purchase the items on your list. That will help you resist the urge to impulse buy, and keep your credit card balances lower. Pick a card... not just any card. If you can't bring cash, make a credit card plan. Identify specific items that you'll pay for on specific cards. By making a plan and spreading your purchases to different cards, you won't overspend and you won't risk running up one or two cards that are near the credit limit, which will hurt your credit rating. Resist card offers at the counter. Retailers are famous for offering "savings" when you open a credit card. But those savings often don't outweigh the long- and short-term negatives. For one thing, opening a new account--or multiple accounts in a short period of time--can negatively impact your credit score. In addition, consumers often spend more than planned when a new card is suddenly available. So this holiday season, resist the temptation. Stay active. If you have older cards that you don't use, make sure you keep them active. For one thing, some of those older cards help establish a longer history of positive credit. For another, the available credit on those older cards can help keep your credit score higher because it improves your overall debt-to-credit ratio. To keep those cards active, make sure you charge one or two items on them throughout the year... like, say, when you go shopping for the holidays. Then, pay them off when the bill comes in. Always pay on time. Your payment record is a very large part of your credit score, so it's crucial that you have an idea how your holiday shopping will impact your credit card bills and that you make a plan to pay those bills on time. If you have trouble for any reason, contact your card companies right away to work out a plan that helps you pay down your debt... and save your credit rating from a huge hit. The Week's Economic Indicator Calendar Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise. Economic Calendar for the Week of November 24 – November 28 Date ET Economic Report For Estimate Actual Prior Impact Mon. November 24 10:00 Existing Home Sales Oct 5.05M 5.18M Moderate Tue. November 25 08:30 GDP Chain Deflator Q3 4.2% 4.2% Moderate Tue. November 25 08:30 Gross Domestic Product (GDP) Q3 -0.6% -0.3% Moderate Tue. November 25 10:00 Consumer Confidence Nov 39.5 38.0 Moderate Wed. November 26 10:00 Consumer Sentiment Index (UoM) Nov 58.0 57.9 Moderate Wed. November 26 09:45 Chicago PMI Nov 38.5 27.8 Moderate Wed. November 26 08:30 Personal Consumption Expenditures and Core PCE YOY NA 2.2% HIGH Wed. November 26 08:30 Personal Consumption Expenditures and Core PCE Oct NA 0.2% HIGH Wed. November 26 08:30 Personal Spending Oct -0.7% -0.3% Moderate Wed. November 26 08:30 Personal Income Oct 0.1% 0.2% Moderate Wed. November 26 08:30 Jobless Claims (Initial) 11/22 NA 542K Moderate Wed. November 26 08:30 Durable Goods Orders Oct -2.5% 0.8% Moderate Wed. November 26 10:00 New Home Sales Oct 450K 464K Moderate Wishing you and your family a Joyous and Wonderful Thanksgiving. I am so thankful for our amazing and resilient Referring Partners and I just wanted you to know how much we appreciate you. We will be available on Friday and on the weekend at 972-278-3400 or email ldavidson@servicefirstmtg.com if you need us for your clients. Happy Thanksgiving! Linda

Reflections of Beginnings, Did You Knows, Declutter Your Email Tips, Another Great Tip to Copy/Paste for Your Clients, Jump Start Your 2009!

My friend and mentor Todd Duncan spoke at the conference I was in last week and gave one of the most inspirational speeches I've ever heard. His wife is battling stage 4 cancer and is not doing well at all. She insisted that he stay the course and be at the conference (which he hosted) and practice what he teaches to his students, which is to "Finish Strong." Todd shared the following poem with the group and I would highly recommend that you take “down-time” for a moment and reflect on it. In our continuation of The Law of The Harvest, this is a great one to keep in front of you. As we have said before, we always want to be your information source, but we also love to reap our harvest and appreciate you having us be your mortgage lender of choice. Our team is knowledgeable, experienced and all have their underwriting certifications so there are no surprises at the end- let us know when we can be of assistance to you and your buyer. We can be reached at 972-278-3400, email at ldavidson@servicefirstmtg.com or our website at www.davidsongroup.net Linda "Beginnings" Endings are the seeds to beginnings Tomorrow will come in time Even in hopelessness lies a seed of hope And even a small seed can climb But the little seed has to give up its past On its voyage to the sprouting tree Didn’t you ever transcend your life, Previous visions of who you could be? Every cloud opens up to the smiling sun, And the low will soon reach high tide, Exits and entrances are at the same gate Moving through is your ticket to pride And two triangles have to surrender themselves To ever become a square And every simple discovery in life Makes you give up something you thought was there Caterpillars will butterfly off the ground Give up your past to be king. Horses run best when not looking back Let go to reach higher things. You have to give up your discomforts to ever soar in flight But isn't the end of something that's wrong The beginning of something that's right? So, you stand at the spot where endings begin, Handcuffed by the past or freed. One path will take you to where you've been, The other will set you free. So pick yourself up like the rising sun, like the wind lifting the silent sea. Plant a hope in your heart like a seedling in spring And step forward to your new destiny." Anonymous Jump Start Your 2009 I will be joining North American Title on Friday, December 5th in a presentation of “Top 5 Innovative Ways to Jump Start Your 2009”. This will be a fun, fast and informative talk on how to make 2009 start strong and I am so excited to present this- I have lots of fun surprises and cant wait to share! Note that all address below are for North American Title (NAT) Where Address Time Food Served NAT Mesquite 2424 Gus Thomasson Rd, Mesquite, TX (972) 270-2488 12/5- 9 AM- 11 AM Breakfast NAT Garland 5435 N Garland Ave, Garland, TX (214) 703-9607 12/5- 12 Noon- 2 PM Lunch NAT Rockwall 3007 Ridge Rd, Rockwall, TX (972) 771-0667 12/5- 3 PM- 5 PM Wine & Cheese LEARN The Top 5 Innovative Ways to Jump Start Your 2009, EAT lots of food, NETWORK and WIN door prizes and give aways. Come to one or come to all…..We just would love to see you there! With the auto industry looking for a hand-out, I thought you would find these numbers very interesting. Did you know….. • One out of every 10 U.S. jobs is auto-related, supporting approximately 5 million jobs across all 50 states. • Dealerships employ 740,000 people with a total payroll of $35 billion a year. • The auto industry purchases $156 billion in raw materials annually and is the largest purchaser of U.S. steel, aluminum, iron, copper, plastics, rubber and electronic and computer chips. • Autos account for $690 billion, or about 20 percent of all U.S. retail sales. • Four percent of U.S. gross domestic product is auto-related and represents 10 percent of U.S. industrial production by value. • Auto sales generate more than $10 billion dollars of annual tax revenue • The domestic auto industry has invested nearly a quarter of a trillion dollars in the United States, including $10 billion alone last year. • U.S.-based carmakers have 105 plants in 20 states, including California, Texas, Kansas, Louisiana and Maryland. • The auto companies provide pensions for 775,000 and health care benefits for 2 million. The following was written by a friend of mine who writes periodically for a number of industry magazines. I thought you would love the time saving tips! In Brief: Declutter Your E-mail By Jason W. Womack and Jodi Womack Your e-mail inbox most likely contains a collection of old and new messages of varying priorities. You may even go back and mark old e-mails “unread” or add “!” to make them urgent. The following tips will radically cut down on inbox clutter. Change the subject lines of the e-mails you receive to the action you need to take with them. To ensure you’ve chosen your very next action, use a verb to start off the new subject line. Think of the actual activity you need to do. Also, ask yourself what other relevant data you need: who, what, and by when? You can make subject line changes in Microsoft Outlook and Lotus Notes by editing the message (ALT+E in Outlook, CTRL+E in Lotus Notes), and then typing the new action steps into the subject line. If you need to, you can type in front of the original subject to keep the "search-ability" of the message. The following is a list of sample subject lines that demonstrate how to transform your e-mail inbox from a random list to an actionable To Do List: Before changing the subject line: Re: budget meeting Wilson project Seminar Newsletter After changing the subject line: Draft agenda by 11/21/08 re: budget meeting. Fax Kira (415) 236-6045 signed contract: Wilson project Call Jason (805) 640-6401 to schedule Q1 ‘09 Seminar E-mail Sales team revised edits to Newsletter by 11/14/08 Which list will help you follow through with more e-mails? When you edit the subject line you will spend much less time opening, reviewing and closing e-mails later. Warning: Watch out for verbs that are too vague to be real action tasks such as: “Make time to…,” “Set a meeting with…,” and “Follow up with…” If you get stuck with these seemingly next steps, ask yourself, “How exactly do I make time/set a meeting/follow up?” Do you need to meet with someone in person? Can you make a phone call to get the info you need? Or can you quickly create an e-mail to request the information? The key is to pick one and type that action into the subject line. When you use this technique, as you create new e-mails to your coworkers and clients, you’ll be amazed at how much faster they reply! As you look through your inbox, you are now able to tell “at-a-glance” the steps you need to take instead of opening and rereading the same messages over and over again. By appropriately identifying the action that each e-mail requires, you can purge, sort and organize much of your inbox, cleaning the clutter and making it easier to get work done. *** JASON W. WOMACK, MEd, MA and JODI WOMACK, MA founded a professional development company that enhances organizational performance through customized training and individual coaching. Another Great Article to Copy and Paste for Your Newsletters and/or to Send to your Farming Area or Clients Tips for Finding a Job in Tough Markets Finding a job during tough economic times doesn't have to be tough...if you know which strategies work. Here are some tips for beating the odds: Take Networking to the Next Level: Networking is always a great job strategy, but in the current economic climate, you need to go a step beyond letting your contacts know you are looking for a job, since many other people may be doing the same thing. Instead, develop a compelling business idea for your field or the field you would like to enter. Then, when you call or email your contacts, let them know you are researching your idea and would like to meet with industry insiders to discuss its viability. With this strategy, people will see you as someone with something to offer them, rather than as someone who needs something. And if the people you meet with like your idea, your meetings could lead to a job offer even though you never asked for a job. Focus on Sectors That Are Hiring: No matter what industry your background is in, the skills or experience you possess may qualify you for a position in a new field. For instance, sales and customer relations are skills needed in a variety of industries. To begin, make a list of your experiences and skills that could help you find a job in a sector that is currently hiring. Then, gear your resume and cover letter to focus on these particular skills and experiences. Aim for Your Dream Job: Many job seekers begin to panic and apply for any job that's available. This is a mistake for several reasons. First, passion and enthusiasm are your best weapons for succeeding in your job search. Employers can tell the difference between someone who really wants to work for them...and someone who will take any job. Second, when you are focused on finding a specific job versus any job, you make it easier for friends and colleagues to help you because they will have a clearer idea of who they could contact for you. Third, if you're in the middle of a job transition, why not use the opportunity to enter the profession you have always wanted to try? Be Creative About How You Start: During tough markets, many businesses are hesitant to add new employees and increase their level of fixed costs. You can offer to begin as an independent contractor for a period of time before receiving a review and possibly a future permanent job. This would give you a chance to earn an income while demonstrating your skills and value to the company. In turn, it lets the company evaluate your performance in a less costly way, because you would not receive benefits during this time; and with less risk for the company than having to make the decision to hire a permanent employee. You could also volunteer your way to a paid job. Many nonprofit organizations have powerful executives on their boards. By demonstrating your skills and work ethic as a volunteer, you could meet important connections that could lead to your next position. The bottom line is this: Losing a job is tough during any market, but finding a job doesn't have to be tough when you are willing to be creative and use strategies that work! Have a blessed weekend. Remember that we are open on Saturday from 12:00-5:00 PM and are also available on weekends for prequals- just call our office at 972-278-3400. Linda

A Month of Harvest; Great Change for Reverse Mortgages; Market Report; Stats for Underwater HomeOwners and Credit Card Use

With this being the first week of November (which is Thankful Month), I want to thank you for your referrals. We always want to be your information source, but we also love to reap our harvest and appreciate you having us be your mortgage lender of choice. Our team is knowledgeable, experienced and all have their underwriting certifications so there are no surprises at the end. We can be reached Monday-Saturday at 972-278-3400 (and after hours if you need us) or email us a ldavidson@servicefirstmtg.com. Thanks, Linda Another volatile week with an incredible Fed Fund cut to 1.00 and a Discount Rate cut to 1.25. We are truly in historical times. After the cuts, we saw was is the typical overreaction, especially in the mortgage bonds and rates ended with an increase of around .50 from the Friday before. My prediction on this is that it was an overreaction and so it will be interesting to see how much ground we gain back this week in the bonds (hopefully a lot :)). See market report below. Below also we have given you information on the stats of "underwater borrowers" as well as the mind blowing numbers on the increase use of credit cards. We also are sending out the exciting news about our senior buyers being able to purchase with a Reverse Mortgage (!) as of 1/1/09 and remind you of our last Training Class of the Year on This Tuesday as we continue to work to be great at communicating (as it IS Communication Week!). Interesting Numbers for those Short Sales NEW YORK (CNNMoney.com) - According to a report by First American CoreLogic, at least 7.5 million American homeowners are "underwater borrowers," meaning they owe more on their mortgages than their homes are currently worth. This is called negative equity, and the report shows an additional 2.1 million people are on the brink of falling into it. Their homes are worth less than 5 percent more than the mortgages they''re paying on them. The report''s 7.5 million estimate is a conservative number. Some organizations, including Moody''s Economy.com, estimate that as many as 12 million borrowers may be underwater. In Texas, 16.6 percent of homeowners have negative equity, caused by a recent influx of people who bought homes and did not have enough time to build up equity before prices began to fall. Nevada is home to the highest number of underwater borrowers, with 48 percent of homeowners having negative equity. Michigan follows with 39 percent. New York is faring best at 4.4 percent. Use of Credit Cards (this one is really mind blowing!) Credit Card Loans, 10 months Sep07-thru-Jul-08 ... $29.1 billion Credit Card Loans, 10 weeks Aug-08-to-mid-Oct-08 ... $32.3 billion "In other words, Commercial Bank ''exposure'' via the total amount of Credit Card ''loans'' outstanding has risen MORE in the last ten WEEKS, than it did in the previous ten MONTHS COMBINED !!! What consumer spending there is has been fueled in part by credit card. The second largest "merchant-vendor" for credit card use is now McDonalds. This suggests that many consumers are in serious distress when they need to get their $4 Big Mac and fries with a credit card. This is a problem facing the economy next year. Credit card growth like we have seen in the last few months has never been sustained at such a level, and is unlikely to be this time either. For more information on this, go to our blog at lindadavidsonmortgage.blogspot.com and go to Electing the Janitor -In-Chief editorial. Exciting New Change for Reverse Mortgages! As of January 1, 2009 buyers that are 62+ of age and older can now purchase a home using a HECM* Reverse Mortgage. What does this mean to your senior buyers? They can use the HECM* Program to purchase and never have a payment on the mortgage for as long as they occupy their property as their primary residence. We will be sending more information out in December so that you can forward this information to your senior buyers that are looking to purchase a home and would like to look at this great option. *HECM (Home Equity Conversion Mortgage) which is FHA''s version of Reverse Mortgage. Over 90% of all Reverse Mortgages are currently HECMs for refinancing so this is really big news! The terms, interest, etc is much better on HECMS than what we have had in the past for purchase Reverse Mortgages. Market Report Last Week in Review "TAKE TIME TO DELIBERATE; BUT WHEN THE TIME FOR ACTION ARRIVES...STOP THINKING AND GO IN." Napoleon Bonaparte. And taking action after deliberating was exactly what the Fed did last week, when they cut the Fed Funds Rate by .50%, lowering it to 1.00%. Why did the Fed take action last week, after it had already lowered the Fed Funds Rate by .50% on October 8 in a coordinated effort with other central banks? To continue to help ease the credit crisis, and prevent a long and severe global recession. In fact, several foreign central banks followed the Fed''s lead again last week, with Hong Kong cutting their lending rate by .50%, Taiwan cutting by .25%, and Japan cutting by .20%. This is important because cuts by other nations help stabilize the US Dollar, which typically loses ground after our Fed cuts rates, because of the lower yield offered comparatively offered in the US. Another interesting point to note: since oil is Dollar denominated, the price per barrel typically jumps after our Fed cuts rates, because of the decline in the value of the Dollar. The cuts by other central banks should keep oil...and gas prices, in turn...from skyrocketing again. Another reason the Fed took action: The Fed''s statement discounted threats of inflation, saying that slowing economic growth should lower inflation pressures over time, but added that downside risks to economic growth remain. And last week''s negative Gross Domestic Product reading is confirmation that things have slowed quite a bit. Although experts have speculated that the US may already be in a recession, the first hardcore signs appeared when the Third Quarter Advance GDP report showed that consumer spending declined at the fastest pace in 28 years. The report also reflected the largest quarterly decline since the end of the last recession in 2001. So what did all of this mean for Bonds and home loan rates last week? After worsening early in the week, Bonds and home loan rates attempted to stabilize by week end. And while it was a treat that Bonds did bounce off an important level of technical support, home loan rates still ended the week nearly .50% worse than where they began. Forecast for the Week The excitement continues, as the heavyweight Jobs Report is scheduled for release this Friday, which will show the number of jobs lost or gained in October. Remember that the Department of Labor averages their numbers, and part of each month''s report includes "revisions" to the several prior months'' numbers. Last month, the Labor Department reported that 159,000 jobs were lost in September, which was worse than the 105,000 lost jobs that economists were expecting. As of last month''s report, the US has lost 760,000 jobs so far in 2008. And the news for October is not expected to be any better. A negative report could be bad news for Stocks and good news for Bonds and Home loan rates, as bad economic news typically causes money to flow from Stocks and into Bonds. But as has been noted in recent weeks, things are anything but typical at the moment. Bottom line: count on me to be watching closely to see how the markets react to this report and all the other news of the week...and feel free to call me anytime at 972-278-3400.