Moore Mortgage Solutions

    This morning, President Bush signed the “Housing and Economic Recovery Act of 2008.”

    The main part of the bill to me is the new program created at FHA to help families facing foreclosures called “HOPE for Homeowners Act of 2008.”

    This program is an attempt to stem the tide of foreclosures for homeowners by refinancing loans into FHA loans while at the same time, the FHA will share in the future appreciation of the home.

    The other component of the “Housing and Economic Recovery Act of 2008” is raising the loan limit that Fannie Mac and Freddie Mac can serve to $625,000 in the high cost areas. The Seattle/Tacoma area is considered a high cost area.

    And last but not least, the bill will assist our returning soldiers if they have gone into foreclosure as well as with improvements and structural alternations to their homes for service-connected disabilities.

    To learn more about the “Housing and Economic Recovery Act of 2008”, the Senate has published a four page summary.

    As parts of this bill becomes more readily available to the public and as more banks embrace this, I will, of course, be updating you.

    In the meantime, if you should have any questions about your mortgage, the mortgage industry or would like to chat more, please feel free to contact me.

    And make each day an inspired one!

Betsy Moore

206-331-2749

www.mooremortgagesolutions.com

betsy@mooremortgagesolutions.com

    Covered bonds may soon be the new buzz word whereas mortgage backed securities have become the bad boys of the mortgage industry.

    Why the buzz?

    Yesterday, Treasury Secretary Henry Paulson announced that the Treasury along with the country’s four largest banks will attempt to jump-start covered bonds in the U.S.

    Covered bonds first appeared in Germany in 1770 and are called Pfandbriefe. Other countries followed each with their own guidelines. Then in 1988, European Union set up guidelines for these covered bonds to unify the various covered bond systems.

    Covered bonds (can be a pool of mortgages) are similar to mortgage back securities except the banks keep them on their books. They can borrow against them to free up money. And if the bank fails, the lender has preferential claim to them.

    Whereas mortgage back securities (also a pool of mortgages) are assets that a bank can sell. It is typically an off-balance sheet transaction and the risk associated with them is also eliminated to that bank. The bank sells it and gets cash for it.

    The problem has become that these mortgage back securities’ value has gone down. The banks can’t sell them for what they were worth to get them off their books. Without getting them off their books, the banks can’t lend more money for mortgages.

    What does this mean to you and me?

    Without infusing more available money into the market, banks are having a hard time finding ways to raise cash to lend money for mortgages. And without money to lend, the housing market will only get worse.

    The above is a very simplistic explanation. To learn more, go to these links: Covered Bond Can Rebuild America,and What is a Covered Bond.

    In the meantime, please feel free to contact me with your mortgage questions and needs.

    And make each day an inspired one!

Betsy Moore

206-331-2749

www.mortgagesolutions.com

    These past months have been one of volatility for the markets and the months ahead will be more of the same. Coupled with this is the constant barrage from the news media about the high foreclosure rate across our country.

    And yes, there is a high foreclosure rate but in certain areas around the country. In some areas, the value of homes are going up while in other areas, the values of homes have only slipped slightly-not the double digits you hear day in and day out.

    Business Week had a good article this past Thursday titled “Things Aren’t Tough All Over.” It stated that “With the median home prices down 14% nationwide...it’s easy to forget that real estate is highly localized.” And even within a metropolitan area, it can and sometimes is localized even further with the outer areas being hit harder than the metro area.

    Talking to a reputable realtor about the area you in live or the area you want to live in is important. They can give you a clearer picture of what is happening. I have several reputable realtors in My Business Directory. They will be more than happy to talk to you about your area.

    The important economic news that could move the markets are sprinkled throughout this week. Today, we start with Secretary Paulson speaking about the mortgage market at 2:30pm EST ending with the US Employment Rate on Friday. This last report is one of most important monthly reports as it tells us how many jobs were added to the economy and the average hourly earnings.

    And to top this all off, Congress has passed and the President will likely sign one of the most sweeping mortgage and housing legislation in decades. As more news filter out as to what this bill exactly entails, I will be updating you.

    In the meantime, please feel free to contact me with your concerns or questions about mortgage industry. And make each day an inspired one!

Betsy Moore

206-331-2749

www.mooremortgagesolutions.com

    This past year has been one of volatility for the financial and credit markets. And as much as I respect the media's right to free press, their main job is to get us to watch their news. One of their ways to do that is to give us snippets of one or two liners that are basically negative to capture our attention. Unfortunately as consumers, we are busy living our lives so we tend to only hear those one or two snippets.

    And over time if we listen long enough to the media, it seems like the sky is falling. But is it really?

    Yes, it is not a pretty picture out there at the moment but no, I don’t think the sky is falling. But we should always protect ourselves regardless of the economic situation.

    To help you, I have a program called, Ready, Set, Go.

    The program is quite simple in that in Ready, we review your present credit situation and go over your short and long term goals. If there are problems, we Set a plan of action for us to take. Because we have a plan to follow, we know when it would be the right time for you to refinance, buy-up or purchase. This is also the time I actively watch the market for you. And Go is simply the time is right for you to re-finance, buy-up or purchase a new home.

    To learn more about this unique program and to contact me, click Ready, Set, Go.

    Until next time, make each day an inspired one!

Betsy Moore

betsy@mooremortgagesolutions.com

206-331-2749