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.

FAQs for the 100% Conventional Financing +Marketing Material to Swipe and Adapt, This Friday is the Halloween Breakfast (and flu shots), Market Report

The first part of last week turned out to be better for the bonds although we lost almost everything Friday we gained earlier in the week. For more on the market report, see below. Don't forget our Halloween Breakfast (with or without the flu shot :)) from 8-9 AM this Friday 10/31. Also, we have had a lot of calls since Friday's announcement of the 100% Conventional Financing so I have given you below the Frequently Asked Questions as well as Marketing Material that you can "Swipe and Adapt" to use for your buyers and database (and could use on your listing material also!). Let us know when we can be of assistance to you and your buyers. Linda Reminder: Halloween Breakfast and Flu Shots- THIS FRIDAY!!!!!!!! It is fitting that we will hold our annual flu shot clinic here at the office (3200 Broadway Blvd in Garland) on Halloween morning- I think that they are pretty scary- don't you :) although I do get one every year myself. We will have a nurse at our office from 8-9 AM for flu shots on October 31 if you would like one. I do need an RSVP for the flu shots by 10/29 so that the nurse knows how many shots to bring. The flu shot cost is $25 per person. So, to make it fun (and we are always looking for a reason to throw a party), we will be serving breakfast at the same time (Friday morning, October 31 from 8:00-9:00 AM). We will have scrambled "brains" :) (eggs) with tortillas with all the trimmings and homemade pico made by Chef David (my husband) who most of you know is an excellent cook. So whether or not you are getting a shot, come on by for food, fun and prizes. We look forward to seeing you here! Did you know....... Did you know that this week is Hero Awareness Week? Let someone in your life that you admire and look up to know how much they mean to you. It will make their day (and they probably need to hear it also!). Frequently Asked Questions on the 100% Conventional Financing How does the 100% Financing Work? The loan is 100% financing with no Down Payment required. We can work the program on a 97/3* however we would typically find that the 95/5* would work better in interest rate pricing and PMI factors. *The first lien (in the case of the 95/5) is a standard conventional loan and the 5% is financing is paid by a Community Second that we have available and ready! Because the Community Second is NOT set to a bond program, we don't have to wait until "funds are available"- they are ready now. In addition, we do not have to ask the seller for the 5%- it comes directly from us through a Community Second lien. What is the seller allowed to pay? The seller is allowed (not required :)) to pay up to 3% of the sales price toward the buyer's closing cost and prepaids (i.e., if the sales price is $100,000, then the seller can pay $3000). Is there a minimum out of pocket for the buyer No, there is no minimum out of pocket for the buyer. However, keep in mind that although there is no down payment, the seller is allowed to only pay 3% of the sales price towards the buyers cost. If the 3% does not cover the closing cost and prepaids, the buyer will need to be out of pocket the remaining (or get a gift- restrictions apply- ask us for details) Is there PMI on the loan? Depending on Sales Price and Credit Score, there is possibly no Private Mortgage Insurance (PMI)! Ask us for details on this. Make certain that you do not promise your buyer that there is no PMI until we have talked to them and know the specifics. We will let you know if we can offer this option to your client. Is this a First Time Home Buyer Program? No, this is not a First Time Homebuyer Program. However, the buyer cannot own a home at time of closing. Note: They can do a simultaneous close in which they sell their current (and only) property and purchase another one and still use this program. What do the Credit Scores need to be? Credit scores must be 620+ (and must run through automation underwriting, i.e., DU or LP). We will take the lowest middle score of the buyer(s). For example, if the buyer has a 620, 640 and 660 and the co-borrower has a 680, 690 and 700- we will use 640 as the lowest middle score. Note that there are NO exceptions on the 620+ credit score. It is important also to note again that the loan must run through automation in order to qualify. How high can the household income be and still qualify for this program? Buyer's income can go up to $90,000. Note also (unlike many other programs), if we don't put a specific buyer on the loan, we do not have to count their income in the max household income limitations. So for example, if the husband makes $50,000 per year and the wife makes $60000 per year, if only the wife is on the loan, only her income is counted in the max household income (but obviously she must qualify for the house payment + her debt vs. her income). What is the minimum and maximum sales price on this program? There is not a minimum or maximum sales price on the program; however, it is important to remember that the qualifying income cannot be more than $90,000. Note that a $90,000 income would qualify for approximately a $250,000 home (assuming low revolving and installment debt). What are the terms of the loan with the program? This is a primary residence, single family or duplex (buyer must be living on at least one side), full doc, 30 year fixed mortgage. It cannot be used for investment properties and/or with stated income and it also must be a Conventional loan. What do I need to do if I have a buyer that I think would qualify for this program? Great question :). Give us a call at 972-278-3400 or email us at ldavidson@serviefirstmtg.com and we will be glad to speak to the buyer to see if they qualify. We will also discuss other options (i.e., FHA, Freddie/Fannie and possible USDA and/or VA if applicable) so that the buyer understands all their options and the pro/cons of each loan. It is our goal to look at the short and long term needs and goals of the buyer to determine what mortgage product is best for them. What happens if a buyer cannot purchase a home right now due to credit or other issues? Another great question! We have a detailed "Don't Give Up (DGU) - Get Mortgage Ready" program that we will put the buyer on giving them specific action plans and time table. In addition, we will stay in touch with the buyer over the course of the time needed to qualify as part of our exclusive DGU program. Once the buyer is "Mortgage Ready" then we will complete the loan approval and refer the buyer back to you. Marketing Material to "Swipe and Adapt" for Your Clients and Database A lot of potential buyers are now feeling as if they can't buy a home until they save money for a large down payment. This is not always the case and if buyers want to purchase a primary home, there are ways that are still available to get 0-3% down financing. These programs do require that the buyer qualify for the house, which is a good thing as it won't put people in homes that they can't afford. The credit history does not have to have been perfect; financing for homes can be obtained for people with credit scores of 580 and higher, as long as they can show a good rental payment history. It is important to understand also that a buyer does not have to be a first-time homebuyer to get 100% financing. However, as a first-time buyer (haven't owned real estate for the last 3 years), they may qualify for a $7,500 tax credit on the Federal Tax Returns this year (made possible by the Housing Bill 3221), making purchasing now even more attractive with interest rates low and inventory high. I can give you further information on the $7500 Tax Credit if you would like- just give us a call. In the meantime, here are some ways to purchase a primary home with 0-3% down: I have access to a 100% (no money down) Conventional loan with a credit score of 620+. This is an exclusive program and possibly could be without PMI (depending on the credit score and sales price). The lender that I work with is only one of three lenders in this area that has this select program and I am excited to be able to offer it to my clients. FHA mortgage allows a gift or loan from a family member - A family member can loan or gift the 3% down payment required (also note that there are actually 22 ways in which FHA allows a buyer to come up with the 3% down payment required!). FHA loan limit has increased to $271,050 making it a very attractive loan in Dallas/Fort Worth. There are First Time Home Buyer Bond Programs available. Many of these programs are getting their new allotment of funds this month, so it is a great time to look at this. Zero down VA loans are available for those who have eligibility for having served in the military. In addition, using the VA in conjunction with the Texas Veterans Land Board program (TVLB) could give a buyer a 30 year fixed interest rate down to 4.75 fixed (restrictions apply)! USDA Rural Housing loan - this program actually has the ability to include closing costs in the mortgage as well as no down payment and no monthly mortgage insurance! There are income and location limitations but many people are surprised to see exactly what areas do qualify (i.e., Rockwall, Wylie, Forney, Little Elm and Azle, just to name a few). Interest rates are still low, and buyers can purchase a home with a lower payment. It is a great time to purchase a home. Training Class in November- "Rescuing the American Dream" Due to a lot of calls, we are going to teach one last class in November which is "Rescuing the American Dream". This will be a 90 minute class with quick overviews of what type of financing can be done now, how to market the changes to your clients, as well as a quick overview of short sales and foreclosures and the new housing bill HR 3221. It will be fast, fun and will equip you with knowledge that you can use to market this knowledge to your clients. The class will be held in my office (3200 Broadway Blvd, Suite 120, Garland) on Tuesday, November 4 from 1 PM- 2:30 PM. This will be the last class of the year that we will hold here at the office. Note, however, that I am available for classes in individual offices/ meetings. To RSVP for the 11/4 class, simply call 972-278-3400 or email us at ldavidson@servicefirstmtg.com.

Happy Halloween! Great Talking Points, Weekend Hours, Move Your Clocks, New Change for VA Refis, Reminder FHA Downpayment moves to 3.5 as of 1/1/09

Happy Halloween! Hope that your day is blessed with lots of treats and no tricks :). As you know, the Feds cut the Fed Funds* and Discount** Rate on Wednesday. So what does it mean? Well, it depends (sounds like mom doesn’t it). Depending on the reaction of the market will depend on whether we see interest rates go up or down. We always first see an over-reaction (it always happens :)), which is what we are seeing where bonds are falling (not good for long term mortgage rates) and stocks are rallying (good for your 401K) and then visa versa, but we will need to give it a few days in order to see the true effect. Stay tune to Monday’s report for more information. Fed Funds and Discount Funds (the two factors that were cut Wednesday) are 1) Fed Funds*- The rate in which the banks borrow from each other over night and 2) Discount Rate**- The rate in which the banks borrow overnight from the Fed. In putting Wednesday in historical numbers, the Fed Fund has only been 1.00% only one other time for the past 20 years, so this is pretty big. This weekend is the end of Daylight Savings time. On November 1st be sure you change your clocks back an hour before you go to bed. Daylight Savings ends on November 2nd at 2:00 AM. Week End Hours…….Did You Know We Are Available? Did you know that we are available on the weekend? Our office is open Saturday from 12:00 noon- 5:00 PM. In addition, if you have an urgent need (like a prequal J), then our office number gives out the phone number to the Underwriter on the Team who is on call. Our office can be reached at 972-278-3400. Linda Did You Know- Great Talking Points · The annual gift exclusion rises to $13,000 in calendar year 2009, an increase of $1,000 from this year. All US citizens can make gifts of cash or other property worth up to $13,000 in 2009 to an unlimited number of people without gift tax consequences (source: IRS). · There are 14 individuals on the official presidential ballot other than Republican John McCain and Democrat Barack Obama (source: Official Ballot for General Election). · The national average price of gasoline peaked on 7/16/08 at $4.11 a gallon. By last Friday (10/24/08), the national average price of gasoline had fallen to $2.78, a drop of $1.33 a gallon. Since every 1 cent reduction in the price of gasoline saves Americans $3.4 million a day, a drop of $1.33 a gallon equates to a $447 million daily savings for US consumers (source: AAA, Wall Street Journal, Fortune). VA Guideline Change- Good News! Did you know that VA will now allow an LTV of up to 100% on a VA Refi based on the current appraised value? This is a 10% increase from the previous threshold of 90%. So what does this mean? If you or one of your clients have a VA or FHA or Conventional loan that you would like to refinance to a VA loan (must be a veteran), we can refi it with the loan amount equal to the appraisal. In the past the loan could not be more than 90% of the appraised value. Reminder of FHA Down Payment going to 3.5 (from 2.25%) as of January 1 2009. A great marketing piece and/or reminder to send out to your buyers is that FHA’s required down payment requirement will go from 2.25% to 3.5% as of 1/1/09. On a $150,000 house, this is an additional $1875 in total funds needed. Until 1/1/08, FHA’s required down payment is 2.25% + .75% of their closing cost (for a total of 3% total required investment). After 1/1/09, the buyer will need a minimum of 3.5% required investment. Remember that there are 22 ways in which a buyer can obtain their funds to close. If you would like a copy of that list, send us an email and we will be glad to forward it to you. Words of Wisdom I attended a conference the end of last week. The venue was religious in nature and the subject was “Prosperity with a Purpose”. I wanted to share some of “nuggets” that I walked away with…. It was an awesome conference and I came away with assurance that despite our economy, God is in control! Note that it is not my intent to offend anyone with different religious views, but for those whose faith has wavered in this time, this is from my heart: · God does not change His purpose because of the economy. · An expert woodcarver always sharpens his axe before he starts on a masterpiece. A wise person does not feel as though he is wasting time sharpening his axe. What do we need to do to make certain that we are purposely sharpening our axe? · Two ways to get wisdom- Mistakes or mentors. If you want to be better than you are, then there is a wisdom shortage. Question: What, where, is there a wisdom shortage in my life and business and what do I need to do about it? The difference between winners and losers is information and acting on that information. · During times of down economy it is especially important to remain spiritually sensitive and listen for God’s direction. What He is speaking now may not be the same as in the past. He is the God of the now. Be careful that I do not box God in and limit God. God is bigger than my box. · The greatest danger will be the temptation and tendency to fall away from God’s guidance. We have the tendency to device our own plans and not wait or listen to God and the Holy Spirit for guidance. Don’t make moves out of fear. Don’t be fearful that God will not come through for us and make bad decisions and have wrong actions. In addition, don’t compromise biblical principles. · We must be consistent with our sowing because we cannot reap if we do not sow. · Call clients personally and ask for business. Leverage relationships and stay in touch. · Pray for favor (Proverbs 4:7)- Wisdom is the principal thing. 8 Points to Remember 1) God first! 2) Don’t Give Up- Proverbs 21:5 Never quit. 3) Watch the attitude- Stay positive, but be transparent. 4) Watch Your Confession- Make it positive with team and partners- Proverbs 18:21- Death and Life are in the power of the tongue. Our tongue is creative or destructive. Speak blessings over your business every day. Realize the power of the tongue. 5) Be a good steward. Don’t let money control me- I need to control it. Pray for wisdom in efficiencies in personal and business. Be a good example to those I lead in managing money. Work to be out of debt. 6) Stay with your gifting. The temptation will be to go outside my gifting but don’t do that. 7) Think bigger! Romans 12:2- Lord give me a bigger vision and direct me on how to make it happen! 8) Sow seeds- don’t let the economy direct my giving. · Anytime fear is tolerated, faith is contaminated. · Find the wisdom in my difference. What sets me apart? · At some point, we are going to have to do something, take some action, step out, and get serious about exercising our faith. Batteries not included. Some obedience is required! · Prepare and work like it all depends on me. Pray like it all depends on God. Have a blessed weekend. When we can be of assistance to you and your buyers, call us at 972-278-3400. Linda

Exclusive 100% Conventional Loan rolls out today!, Halloween and Flu Shots and last Training Class of 2008 on 11/4

As promised, we are excited about rolling out our exclusive 100% Conventional loan. When we can be of assistance to you and your buyers, call us at 972-278-3400. Here are the details: · 95/5 Financing (the 5% down payment is paid by a Community Second that we have available and ready)! · Seller is allowed to pay up to 3% toward buyer’s closing cost and pre-paids. · No minimum out of pocket required for buyer! · Depending on Sales Price and Credit Score, possibly no Private Mortgage Insurance (PMI)! · Not a First Time Homebuyer Program (but buyer cannot own a home at time of closing- can do a simultaneous close). · Credit scores must be 620+ (and must run through automation underwriting, i.e., DU or LP). · Household income can go up to $90,000. · Max DTI (Debt to Income) is 45%. Call us at 972-278-3400 to talk to your buyers to see if it is the right mortgage for them! Reminder of other 100% Loans Still Available: · VA (No down payment, No Monthly MI, Seller is allowed to pay all reasonable and customary cost) · USDA (No down payment, No Monthly MI, Seller is allowed to pay all reasonable and customary cost). Area and Income Specific- call or email us for details. Reminder of 97% Loans (3% Requirement) Still Available: · FHA (2.25* Down payment + .75 in Closing Cost; Seller is allowed to pay closing cost and pre-paids up to 6% of sales price provided that buyer has 3%** contribution into the home) · Freddie/Fannie Conventional Loans- 3% Down payment; Seller is allowed to pay closing cost and pre-paids up to 3% of the sales price) *Downpayment on FHA changes to 3.5% as a 1/1/09 **There are 22 Ways in which a buyer can obtain their funds to close- ask us if you have any questions. Make a Difference Day- Did you know that today is “Make a Difference Day”? Let’s do it! Reminder: Halloween Breakfast and Flu Shots- It is fitting that we will hold our annual flu shot clinic here at the office (3200 Broadway Blvd in Garland) on Halloween morning- I think that they are pretty scary- don't you :) although I do get one every year myself. We will have a nurse at our office from 8-9 AM for flu shots on October 31 if you would like one. I do need an RSVP for the flu shots by 10/29 so that the nurse knows how many shots to bring. The flu shot cost is $25 per person. So, to make it fun (and we are always looking for a reason to throw a party), we will be serving breakfast at the same time (Friday morning, October 31 from 8:00-9:00 AM). We will have scrambled "brains" :) (eggs) with tortillas with all the trimmings and homemade pico made by Chef David (my husband) who most of you know is an excellent cook. So whether or not you are getting a shot, come on by for food, fun and prizes. We look forward to seeing you here! Training Class in November- "Rescuing the American Dream" Due to a lot of calls, we are going to teach one last class in November which is "Rescuing the American Dream". This will be a 90 minute class with quick overviews of what type of financing can be done now, how to market the changes to your clients, as well as a quick overview of short sales and foreclosures and the new housing bill HR 3221. It will be fast, fun and will equip you with knowledge that you can use to market this knowledge to your clients. The class will be held in my office (3200 Broadway Blvd, Suite 120, Garland) on Tuesday, November 4 from 1 PM- 2:30 PM. This will be the last class of the year that we will hold here at the office. Note, however, that I am available for classes in individual offices/ meetings. To RSVP for the 11/4 class, simply call 972-278-3400 or email us at ldavidson@servicefirstmtg.com. Have a blessed weekend. When we can be of assistance to you and your buyers, please call us at 972-278-3400 or email us at ldavidson@servicefirstmtg.com. Linda Davidson, Senior Loan Officer, DE Underwriter Service First Mortgage 972-278-3400 office 972-497-6452 fax 1-866-963-3777 Toll Free www.davidsongroup.net Check out our blog: http://lindadavidsonmortgage.blogspot.com

Market Conditions- October 2008

Market Conditions-October 2008 By CJ Winchester Current credit crunch and liquidity of financial institutions has rippled fear across our nation and beyond. Started with 4 specific instances- 1. 1997 Community Reinvestment act forcing reduction of lending standard. 2. Tax Payer Relief act of 1997 which made home ownership the best tax free investment in America. (No taxes on profits up to $500,000 when home is sold) 3. 9/11 terrorist act which resulted in artificially low interest rates to stimulate the economy (to dodge a recession) 4. Innovation in mortgages in order to comply with the reinvestment act—just happened to be extremely profitable for everyone in the Real Estate Industry. Home ownership in America soared to 69.2% of all households in 2004. Should 7 out of 10 people be homeowners? Homeownership may be more responsibility than some people can manage. Were we all participants? Because of lower rates, did we take on more debt? Perhaps a home loan with an interest only feature. Did we stretch our income to buy a larger home? Did we borrow money to start a business? The previous generation worked to pay off their mortgage as soon as possible. They operated their businesses without appreciable debt. They understood that the lack of debt is an important part of freedom. Recently we have seen problems with mortgage-backed securities as market conditions have changed. This has forced banks to tighten their lending standards ultimately reducing access to credit. This was created by lax lending standards and providing loans to people who could not afford the homes thru adjustable rate mortgages or other programs that were not sustainable. Compound this with deceptive lending practices and overconfident investors wanting higher yields –and the deck of cards comes tumbling down. No one likes the Government bailout –especially how it was rushed thru and passed as an emergency measure. But if the government had allowed Bear Stearns, FHLMC, and FNMA to go into bankruptcy---almost every money market fund in the US and almost 25% of pension funds would have spiraled downward. 401 K plans could have become worthless. Of the 9000 commercial banks, 98% of them could have gone into receivership if their capital was gone. There is a real chance that City; County, State, and Federal governments could have failed. We can wring our hands and complain about the government stepping in but it was the best thing that could have happened in the circumstances. Do not blame the politicians alone—we were all at risk. Lets hope that the funds put into the Economic stimulus act to buy mortgage related assets from troubled firms and hold them until a stabilized market can effectively determine their true value which will then allow them to be sold on the Open market. Ten years ago, Chrysler was given an assistance package and it has been paid back in full. Let’s hope a profit can be made and taxpayers will be paid back. Let’s talk about a Bear Market-a natural occurring event about every 5 years. It is an extended period of time when people sometimes panic and sell all of their stock. Bear market is a temporary interruption of a market upward trend. Dow Jones averages 1. Oldest US market index 2. Way of measuring stock values. Snapshot of how the market is trading. 3. Started with 12 major companies. It is now 30 big US companies 4. 3M, Alcoa, American Express, AT&T, Bank of America,Boeing,Caterpillar, Chevron, Citigroup, Coca-Cola, Dupont, ExxonMobile, General Electric, General Motors, Hewlett-Packard, Home Depot, IBM, Intel, Johnson & Johnson, JP Morgan Chase, Kraft Foods, McDonald’s, Merck, Microsoft, Pfizer, Proctor & Gamble, United Technologies, Verizon Communications,Wal-Mart, and Walt Disney Everyone knows that we have had a global financial breakdown with banks unwilling to lend to other banks but what about mortgage and Real Estate. There is no shortage available for home loans. No freezing of credit to purchase or refinance- 90% of loans are made thru FHA, FHLMC, or FNMA. All three are now run by US government and the new mortgage backed securities are backed by the Federal government therefore there will be a global market for these securities. Loan terms and credit requirements have strengthened but you can still get in a home with 3% downpayment and mortgage rates are still low. Why are rates not lower? In order to fund the rescue, the government is guaranteeing the Treasury securities and in order to raise money, the Treasury has had to offer higher interest rates to sell the bonds. The rate is always higher than the FNMA 60 day price as delinquency and prepayment has to be factored in . Since the bonds are guaranteed, it is more attractive to investors but all of this increases the interest rate for home loans. It is also a common practice now to price loans according to risk which is determined by FICO score and amount of downpayment. Money is clearly available and long as the client can qualify for it. Getting back to basics, doesn’t this make sense to determine if someone can truly afford to make the mortgage payment? On a positive note—Sunday Dallas Morning News business section shows the real estate market in this area is stabilizing. Average days on market is about 80 days. Not bad. We are fortunate to be in a growing community with people who are willing to understand that “This too shall pass”. Let’s make each day count as we reach out with a smile and a willingness to lift up our neighbor and face the future together.

$10,000 First Time Home Buyer Monies Now Available in Dallas, Rescuing the American Dream Training, Halloween Fun+ Flu Shots, Market Report for the W

So this week was a little bit quieter (or is it that we are getting too use to the volatility?). Rates came down between .125-.25 so that helped a little bit. For more market news, see below. We are still hearing from buyers that still believe that they need perfect credit and 20% down to purchase, so keep getting the word out that there is still $0 down and 3% down loans with out perfect credit (if you need our marketing material for this let me know and we will be glad to forward it to you). This Friday, we are rolling out a Conventional loan that is No Down AND The Buyer can roll into the loan 3% for closing cost AND the seller can pay 3% additional for closing cost AND possibly NO monthly PMI (depending on credit score and sales price). Stay tune for the details on this loan. We are only one of three companies in the area asked to roll out this Conventional loan because of our expertise in the market and I am excited about offering this to your clients. Be sure to read the Friday market updates for more details! And speaking of monies to close, The City of Dallas have just released their funds up to $10,000(!) towards buyer’s down payment, closing costs and prepaids. See Below for information. Reminder also that The City of Garland also has funds for First Time Home Buyers…. If you need any information on that give us a call at 972-278-3400. Food for thought- Did you know that this week is Food Bank Week (so don’t forget your local charity) and National Businesswomen Week. So to all my fellow businesswomen who keep excellence at work and at home and are superwomen (are at least expected to be :))….. I salute you! Reminder that we post all our past emails and updates on our blog at lindadavidsonmortgage.blogspot.com for your convenience. Also check out our blog this week which includes a Ken Harvey articles titled: Surrounded by Ruins, Mortgage Market Remains Intact. This article is a great perspective of the Market Industry right now and a good one to share with your clients. The City of Dallas have released funds to assist First Time Home Buyers in purchasing a home! $10,000 maximum subsidy for qualified first time homebuyers House must be located in the City of Dallas Cannot earn over 80% of Dallas median family income based on family size (see below) Homeowner education required Must not have owned a home in 3 years (unless it was a mobile home) All existing homes must pass an inspection by an approved MAP inspector All repairs must be completed and inspected prior to MAP approval MAP will reimburse seller up to 1500.00 for MAP required repairs 8 year recapture provision (the second lien is forgiven at a rate of 1/8 per year) 1 2 3 4 5 6+ 37240 42560 47880 53200 57456 61712 Family Size Household Income Reminder: Halloween Breakfast and Flu Shots- It is fitting that we will hold our annual flu shot clinic here at the office (3200 Broadway Blvd in Garland) on Halloween morning- I think that they are pretty scary- don’t you :) although I do get one every year myself. We will have a nurse at our office from 8-9 AM for flu shots on October 31 if you would like one. I do need an RSVP for the flu shots by 10/29 so that the nurse knows how many shots to bring. The cost is $25 per person. So, to make it fun (and we are always looking for a reason to throw a party), we will be serving breakfast at the same time (Friday morning, October 31 from 8:00-9:00 AM). We will have scrambled "brains" :) (eggs) with tortillas with all the trimmings and homemade pico made by Chef David (my husband) who most of you know is an excellent cook. So whether or not you are getting a shot, come on by for food, fun and prizes. We look forward to seeing you here! Training Class in November- "Rescuing the American Dream" Due to a lot of calls, we are going to teach one last class in November which is "Rescuing the American Dream". This will be a 90 minute class with quick overviews of what type of financing can be done now, how to market the changes to your clients, as well as a quick overview of short sales and foreclosures and the new housing bill HR 3221. It will be fast, fun and will equip you with knowledge that you can use to market this knowledge to your clients. The class will be held in my office (3200 Broadway Blvd, Suite 120, Garland) on Tuesday, November 4 from 1 PM- 2:30 PM. This will be be the last class of the year that we will hold here at the office. Note, however, that I am available for classes in individual offices/ meetings. To RSVP for the 11/4 class, simply call 972-278-3400 or email us at ldavidson@servicefirstmtg.com. Market Report Last Week in Review "I'm always making a comeback but nobody ever tells me where I've been." Billie Holiday. Making a comeback was exactly what Bonds and home loan rates attempted last week, after approaching some of their worst levels this year. While the Bond market was closed last Monday in Observance of Columbus Day, the early part of the week wasn't short of market-impacting news. On Tuesday, the Bush Administration, including Treasury Secretary Henry Paulson, Federal Chairman Ben Bernanke, and FDIC Chairman Sheila Bair announced a plan to use $250 billion of the $700 billion financial rescue bill recently passed by Congress to buy directly into American banks. The government will begin by buying stock in nine of the largest banks including Bank of America, JPMorgan Chase, and Citigroup. Why did the government do this? Because the financial crisis is due to over-leverage...that means the ratio of outstanding loans to capital is too high. If left unchecked, this can lead to the failure of institutions. And it has already taken a great toll. The only way to repair this is by reducing the leverage ratio, or "de-leveraging". That means sell off loans or increase capital. The Fed's plan helps this on both sides as they can be a buyer of some loans as well as an investor in some banks. Another result of the current financial crisis is that economic reports are taking a back seat to market dynamics in ways that have never been seen before. In the past, fund managers or institutional traders would typically contemplate which direction would best favor the market, and position their portfolio in Stocks if the outlook was favorable, or Bonds if the outlook was cloudy. So we have come to expect Bond prices to move in the opposite direction from Stock prices much of the time, as money flows out of one and into the other. But the pressure to "de-leverage" has all but removed the thought process, and forced selling of all types of securities to raise capital. And while this situation should stabilize and return to normal (which we saw some evidence of on Friday as Stocks and Bonds alternated going up and down), it is one I will continue to monitor as the weeks and months progress. And after all the ups and downs of the week, Bonds and home loan rates did manage a comeback, ending the week a bit better than where they began. HAVING A MEDICARE CLAIM DENIED IN WHOLE OR IN PART DOESN'T MEAN YOU CAN'T COMEBACK AND ACHIEVE A DIFFERENT OUTCOME! CHECK OUT THIS WEEK'S MARKET VIEW FOR SOME GREAT SUGGESTIONS FOR APPEALING A DENIAL. Forecast for the Week Fighting Medicare Claim Denials When an insurance company denies a claim in whole or in part, it is possible to appeal their decision. The same is true with Medicare claims...and in fact more than half of Medicare appeals are successful. If you, a family member, or a friend have had a Medicare claim denied, the following information can help you successfully appeal the decision: Time Frame: If your Medicare claim is denied for less than the full amount, you can ask for a "redetermination" but you must do so within 120 days. Download the Medicare Redetermination Request form at http://www.cms.hhs.gov/cmsforms/downloads/cms20027.pdf, or call 800-633-4227 to receive a copy. Common Denials: The denial you received will include an explanation, which you will need to contest in your appeal. Ask your doctor to write a letter addressing the reasons in the denial and include this letter with your appeals form. Common denials include: The treatment, prescription, or medical service is unlikely to cause your health condition to improve: Fight this by having your doctor write a letter explaining why the care is necessary. Medicare is required to look at your total condition, not just your chance for a full or partial recovery. You are likely to require care for a very long time: Medicare coverage is not limited to treatments that work quickly, so ask your doctor to write a letter explaining that the treatment is making some positive difference or is expected to. The prescription dosage level is greater than what is normally prescribed, or the drug prescribed is not normally prescribed for your health problem: Have your doctor write a letter explaining why the unusual drug or dosage is medically necessary. For instance, you may be allergic to the medicine normally prescribed. You do not qualify for Medicare-covered home care because you are not homebound: Under Medicare rules, homebound does not mean that you are completely unable to leave your home or that you are confined to a bed. It does mean that you require assistance and that it takes considerable effort for you to leave your home. Ask your doctor to write a letter describing in detail how difficult it is for you to leave your home. Be Persistent: If your first appeal is denied, you can file as many as four more appeals. And the more appeals you file, the greater your odds of success. While your first appeal is made to the same group that denied your initial claim, subsequent appeals are made to independent arbiters. For more information, visit www.medicareadvocacy.org. 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 October 20 – October 24 Date ET Economic Report For Estimate Actual Prior Impact Mon. October 20 10:00 Index of Leading Econ Ind (LEI) Sept -0.3% -0.5% Low Wed. October 22 10:30 Crude Inventories 10/18 NA 5611K Moderate Thu. October 23 08:30 Jobless Claims (Initial) 10/18 NA 461K Moderate Fri. October 24 10:00 Existing Home Sales Sept 4.93M 4.91M Moderate Have a blessed week. When we can be of assistance to you and your buyers, simply call us at 972-278-3400. Linda Linda Davidson, Senior Loan Officer, DE Underwriter Service First Mortgage 972-278-3400 office 972-497-6452 fax 1-866-963-3777 Toll Free www.davidsongroup.net Check out our blog: http://lindadavidsonmortgage.blogspot.com The Davidson Mortgage Group Ranking 6th Nationally in FHA/VA Purchase Units Closed! Ranking 33rd Team in the Nation in Total Purchase Units Closed! Ranking #69th Team in the Industry for Total Units! Voted #1 Area Mortgage Team For The Past 10 Years We ARE The Mortgage Experts! Your Lender for Purchase, Refinances, Reverse Mortgages and Commercial Lending!!

Surrounded by Ruins, Mortgage Market Remains Intact

From: TAMB [mailto:TAMB@tamb.org] Sent: Friday, October 17, 2008 5:46 PMTo: TAMB@TAMB.orgSubject: Ken Harney's Saturday Article Surrounded by Ruins, Mortgage Market Remains Intact By Kenneth R. HarneySaturday, October 18, 2008; F01 Everybody knows how severe and painful the global financial breakdown has been, with banks unwilling to lend even to other banks. But what about mortgages and real estate? Can you still get a home loan with less than 20 percent or 30 percent down? Or with a credit score below 720? Absolutely. It would be a big stretch to label housing the sunny side of the market at the moment, but there's a lot more light there than in most other financial sectors. Consider: · There is no shortage of money available for home mortgages, no freezing of credit to purchase or refinance a house. Why? Because the American mortgage market effectively has been federalized -- at least for the time being. More than 90 percent of new loans now are being made through the Federal Housing Administration insurance program, plus Fannie Mae and Freddie Mac. The FHA is owned by the federal government, and Fannie and Freddie are operating under federal conservatorship. All three have unfettered access to global capital markets at rock-bottom costs because their borrowings are fully guaranteed by the Treasury.Ginnie Mae, which is the FHA's pipeline to the bond market, recorded an all-time high of $29 billion in new mortgage-backed securities issued in August. · Loan terms and credit underwriting standards have been toughened up, but you can still put down 3 percent (3.5 percent after Jan. 1) on an FHA-insured mortgage and 5 percent on certain Fannie Mae and Freddie Mac loan programs with private mortgage insurance. The FHA's credit standards are generous and forgiving -- the agency exists to help people with less-than-spotless credit histories. Fannie Mae and Freddie Mac have raised their credit score requirements over the past year, but buyers and refinancers with scores in the upper 600s can still qualify for loans carrying reasonable rates and fees. · Despite the global financial system's quakes, mortgage rates remain low by historical standards. According to Freddie Mac, 30-year rates this week stood at 6.46 percent. · Maximum loan amounts through the FHA, Fannie and Freddie in high-cost markets on the West and East coasts continue to be $729,750 through December. In January, the high-cost maximum is projected to dip to approximately $625,000. · Home prices -- pushed by foreclosures and short sales -- have rolled back to 2003 and 2004 levels or lower in many of the former boom markets. As a result, growing numbers of buyers are coming off the sidelines, making offers and writing contracts. The pending home sales index jumped by 7.4 percent based on purchase contracts signed in August, according to the National Association of Realtors. The heaviest increases -- pointing to higher closed sales in the coming two to three months -- were in California, Florida, Nevada and the Washington metropolitan area. Housing and mortgage leaders say consumer worries about the stock market have obscured positive developments in real estate, where pricing pain and downsizing have been facts of life for two and a half years. David G. Kittle, president and chief executive of Principle Wholesale Lending and incoming chairman of the Mortgage Bankers Association, said "the mortgage market has never shut down" despite the global financial crisis. Money is "clearly available as long as you can qualify for it," with at least a modest down payment and decent credit history. Matt Vernon, a national retail mortgage sales executive for Bank of America, said, "we've got more than enough liquidity" to handle mortgage demand. "We are open for business." Most of the bank's production is now funded through the FHA, Fannie and Freddie. On the front lines, mortgage company owner Jeff Lipes, president of Family Choice Mortgage near Hartford, Conn., said, "I don't think consumers really know how free-flowing capital is right now in the residential mortgage market. There are no shortages, no breakdowns. People ought to be aware of that." Bottom line: Scary as the news has been about stocks and banks, this is not the case for mortgages. Besides shopping at large national lenders, check in with local banks and credit unions that may be originating loans for their own portfolios -- not for Fannie, Freddie or the FHA. Many of them are healthy, have plenty of cash to lend, and may be surprisingly competitive on terms and rates compared with the big boys.

Rescuing the American Dream- Last Training Class This Year, Investment Properies go to 20% down, Reference Guide for Loans Now Available, Early Votin

Training Class in November- "Rescuing the American Dream" Due to a lot of calls, we are going to teach one last class in November which is "Rescuing the American Dream". This will be a 90 minute class with quick overviews of what type of financing can be done now, how to market the changes to your clients, as well as a quick overview of short sales and foreclosures and the new housing bill HR 3221. It will be fast, fun and will equip you with knowledge that you can use to market this knowledge to your clients. The class will be held in my office (3200 Broadway Blvd, Suite 120, Garland) on Tuesday, November 4 from 1:00-2:30 PM (snacks will be served). This will be be the last class of the year that we will hold here at the office. Note, however, that I am available for classes in individual offices/ meetings. To RSVP for the 11/4 class, simply call 972-278-3400 or email us at ldavidson@servicefirstmtg.com. Just a reminder that Investment Property financing goes to 20% down through Fannie/Freddie as of 11/01/08 as the PMI companies have discontinued the issuance of Private Mortgage Insurance on those loans. In light of that, I have given you below the types of financing currently available and "Things to Remember" about each one. You may want to print this out and keep it for future reference. Check out our blog for a great article from the Barron’s Report- Are We There Yet? which talks about have we reached bottom and ready to go up in our market. lindadavidsonmortgage.blogspot.com Also just a reminder that we post all our weekly emails here in the event that you miss one. You will find below the Financing that is available in the mainstream market (as of today :). You may want to print this out for future reference. When we can be of assistance to you and your buyers on these, please don’t hesitate to contact us. Owner Occupied-Also known as Primary Residence-Eligible for homestead exemption-This is the home where the borrower lives-Co-borrower can be non owner occupant on FHA but program restrictions apply. -Financing Available is FHA, VA, USDA, Conventional (Freddie and Fannie). Note that there are still some "niche" type loans available, but very limited and costly. -Zero Down Loans- VA, USDA and limited "Special Programs" for Conventional. -Three Percent Down Loans- FHA and Conventional (Freddie and Fannie) Seller Contribution Allowed for Owner Occupied: FHA- 6% provided that buyer has in 3% contribution (see our 22 ways that buyers can obtain their funds to close). VA- All reasonable and customary charges. USDA- All reasonable and customary charges. Can also be rolled into the note without increasing the sales price provided the appraised value supports the new loan amount. Conventional (Freddie/Fannie)- 3% if buyer puts down 3.00-9.99 down; 6% if buyer puts down 10% or more; 9% if buyer puts down 20% or more. Non Owner Occupied-Borrower does not live in this home-Property can be rented-also known as investment property-Is not eligible for the homestead exemption-Must do a Conventional loan with at least 20 down*-Must have strong cash reserves remaining after loan closes-Must count full payment and cannot offset with a new lease (exceptions apply)-Rate is higher than owner occupied-Seller contribution is maximum of 2% of sales price *Cut off for obtaining PMI on Investment Property is 11/01/08. Second liens are almost impossible to obtain.Second Home-Typically in a vacation area-Property cannot be rented-Can be purchased if borrower stays in the home on a part time basis -Rate and downpayment may be higher than the Primary home-Not eligible for the homestead exemption -Conventional (Freddie/Fannie) loan only -Seller contribution- 3% if buyer puts down 5.00-9.99 down; 6% if buyer puts down 10% or more; 9% if buyer puts down 20% or more. Halloween Breakfast and Flu Shots- It is fitting that we will hold our annual flu shot clinic here at the office (3200 Broadway Blvd in Garland) on Halloween morning- I think that they are pretty scary- don’t you :) although I do get one every year myself. We will have a nurse at our office from 8-9 AM for flu shots on October 31 if you would like one. I do need an RSVP for the flu shots by 10/29 so that the nurse knows how many shots to bring. The cost is $25 per person. So, to make it fun (and we are always looking for a reason to throw a party), we will be serving breakfast at the same time (Friday morning, October 31 from 8:00-9:00 AM). We will have scrambled "brains" :) (eggs) with tortillas with all the trimmings and homemade pico made by Chef David (my husband) who most of you know is an excellent cook. So whether or not you are getting a shot, come on by for food, fun and prizes. We look forward to seeing you here! Let's all get out there and vote!!! Early voting starts Monday, October 20, 2008 thru Friday, October 31, 2008for the November 4, 2008 election. Listed below are links to Dallas,Collin, Rockwall, Tarrant & Denton county early voting location sites.Dallas County Early Voting Locationshttp://www.dalcoelections.org/nov42008/EVLocations.htmCollin County Early Voting Locationshttp://www.co.collin.tx.us/elections/election_information/2008/110408/EV110408.htmlRockwall County Early Voting Locationshttp://www.rockwallcountytexas.com/elecadm/2008/nov4th/GENERAL-Early%20Voting%20Locations-November%20%204%202008-FATE.pdfTarrant County Early Voting Locationshttp://www.tarrantcounty.com/evote/lib/evote/2008/11042008/ev/SCHD_Nov08.pdfDenton County Early Voting Locationshttp://elections.dentoncounty.com/go.asp?Dept=82&Link=1013 Have a blessed weekend. We are here for you and your clients…. Simply call us at 972-278-3400. Linda Linda Davidson, Senior Loan Officer, DE Underwriter Service First Mortgage 972-278-3400 office 972-497-6452 fax 1-866-963-3777 Toll Free www.davidsongroup.net Check out our blog: http://lindadavidsonmortgage.blogspot.com The Davidson Mortgage Group Ranking 6th Nationally in FHA/VA Purchase Units Closed! Ranking 33rd Team in the Nation in Total Purchase Units Closed! Ranking #69th Team in the Industry for Total Units! Voted #1 Area Mortgage Team For The Past 10 Years We ARE The Mortgage Experts! Your Lender for Purchase, Refinances, Reverse Mortgages and Commercial Lending!!

Are We There Yet? Have We Reached The Market Bottom?

Closer to the Bottom By JACQUELINE DOHERTY There's reason to believe that the stock ­market averages will hit bottom sometime in the next few months, even if the economy is still in the middle of a recession. The buy­ and ­hold approach still applies. FOR THE TENS OF MILLIONS OF INVESTORS WHO HAVE been nervously watching the U.S. stock market's 40% decline in the past 12 months, and it's 18% drop in the past week alone, history holds some solace: There is a case to be made that the averages will hit bottom sometime in the next few months, even if the economy is in the middle of a recession. Indeed, stocks showed some signs of finding a bottom late Friday, with the Dow Jones industrial average closing down just 128 points on the day, after having plummeted about 700 points earlier in the session. The Nasdaq Composite even managed a small gain on the day. Investors will be watching for a possible market bounce that could occur early this week, especially if any new measures to ease the global economic crisis emerge from the weekend's meeting in Washington of the finance ministers of the so­ called G­7 industrial nations. The lesson of history is this: The average U.S. recession since the late 1940s has lasted 10 months, and stocks typically hit their low point about three months before the recession ends. So, if the U.S. entered a recession on July 1, as many economists now suggest, and the recession was to last until April 2009, a typical bottom for stocks would occur some time in the next few months. Granted, much depends on the ability of the Federal Reserve and the U.S. Treasury to put rescue measures in place that will unlock today's frozen capital markets. And there are nagging concerns that the next disaster may lurk in the unregulated $60 trillion market for credit­ default swaps. But the fear that sent the market down so sharply last week may have driven stocks close to their ultimate lows. "I don't think this is the end of America as we know it," says Byron Wien, chief investment strategist at Pequot Capital Management. "I think it's conceivable that the markets will bottom before year end." Wien cites a number of positive events in recent weeks. The Treasury now has the ability, through the $700 billion Troubled Asset Relief Program (TARP), to start buying distressed assets from banks. There is speculation the federal government will come up with yet another program to help the housing market. Oil prices have fallen below $80 a barrel from levels above $140, a slide that on its own should boost economic growth. And smart investors have started buying at what they hope are good prices. Barclays (ticker: BCS) purchased Lehman Brothers' investment banking operations in the U.S. Warren Buffett took stakes in General Electric (GE) and Goldman Sachs (GS). Citigroup (C) and Wells Fargo (WFC) actually fought over the right to buy Wachovia (WB). Recessions certainly have been both shorter and longer than the 10­month average. On a positive note, five recent recessions were shorter. The 1980 recession lasted a mere six months, and there were four recessions that lasted only eight months, according to data from Bespoke Investment Group. But a mild recession wasn't what the market feared last week.Investors were worried the current economic slump will be"different" from those in the past. American consumers are carryingmore debt this time around, and the banking system is in much more fragile shape. THOUGH A TYPICAL RECESSION would end by next spring, economists are paying increasing attention to longer downturns, specifically the two recessions since 1940 that each lasted 16months. The November 1973 to August 1975 downdraft was sparked by the Arab oil embargo, while the July 1981 to November 1982 recession was triggered by the Federal Reserve hiking interest rates dramatically to curtail runaway inflation. In each case stocks bottomed about three months before the recession ended. The good news today is that stocks appear to have gotten out ahead of any recession, falling so sharply that they might already have priced in pretty horrible times ahead. The Dow is down almost as much in the past year as the 45% it fell in the 1973­1975 recession, and its 12­month decline far exceeds the 24% it lost in the period leading up to and during the 1981­1982 recession, according to Birinyi Associates. Today's 40% drop also far surpasses the average bear market slide of 30% since 1940. Markets that decline for more than a year average a loss of 42%, says Paul Desmond, President of Lowry Research Corp. The Dow has fallen by more than 40% 10 other times, with all but one such drop occurring between 1900 and 1930. It slid by more than 50% only once, between 1929 and 1932, when it shed 89%. That bear was bracketed by the Great Depression, which lasted for 44 months. A recession is labeled a depression when economic activity shrinks by 10% or more. From August 1929 to March 1933 U.S. economic output contracted by more than 30%. That's what made it "Great." But back in the 'Thirties, the financial markets lacked many of today's safety nets, like deposit insurance, and the Federal Reserve didn't loosen the purse strings quickly, as the Fed lately has done. Also, the stock­ market rally leading up to the Depression was much more frenzied. From 1921 to 1929, the market rose almost 500%. In the rally from 1987 to 2000, stocks jumped 574%, but did so over a much longer period. From 2002 to the market's peak in October 2007, the Dow rose 94%. Given stocks' swoon in the past 12 months, prices look much more reasonable today. The companies in the Standard & Poor's 500 trade for an average of 11.6 times the profits that analysts expect them to earn next year. And the index trades at 17.1 times the companies' most recent earnings. That's only slightly below the market's 60­year average price/earnings multiple of 17.8, according to Birinyi Associates. The current P/E is still high compared to the low P/Es of previous major recessions. During the '74, '80 and '82 recessions, the S&P's trailing P/E dropped to between 6.8 and 7.2. But in the '70, '90 and '01 economic downturns, the P/E ranged from 12.9 to 23.5. One person who fears further market declines is Wayne Nordberg, chairman of Hollow Brook Associates. "This is the end of the great credit supercycle," he says. "It takes a very long time to unwind." Or, as Doug Cliggott, manager of the Dover Management Long­ Short Sector Fund, put it with regard to the TARP, "we're fighting a forest fire with a garden hose." But such gloomy sentiments aren't a reason to get out of the stock market. It could be quite the opposite, in fact. Consider that $1 invested in stocks from February 1966 through May 2007 would have grown to $16.58 in that period. That's a 7% annual return. By contrast, investors who were out of the market in the five best days each year during that span were left with only 11 cents. That's a pretty good case for the buy and hold philosophy, or, if you're out of the market, for getting back in soon.