Febuary 6th 2009

LA MORTGAGE INC. a Rodeo Realty company
15300 Ventura Bl. #101 Sherman Oaks, CA 91403
Jeffrey Fink Email: jefffink@lamortg.com
Mobile: 818-723-1638 Office: 818-986-7300 ext 120 E Fax: 206-203-4720
http://www.youtube.com/watch?v=DfjIxFfkVgs&feature=channel_page



CONFORMING, JUMBO,BRIDGE AND REHAB LOANS


Conforming Limits: $100,000 to $417,000 February 6, 2009
Rates
5.5% 30-Year Fixed


NEW CONFORMING



Conforming Jumbo: $417,001-$625,500
Rate: 6% 30 Year Fixed
Rate
JUMBO LOANS

LOAN AMOUNTS $729,751-$2,000,000
5 Year Fixed 5.75 %
7 Year Fixed 6.00%
Interest only available

FHA LOANS 3.5% DOWN

30 Year Fixed $100,000-$ 362,000 5.5%
30 Year Fixed $ 362,001-$625,500 6.0%

Rates are based on a 1 point origination and are subject to fico scores and dwelling type. Rates are constantly changing so call me for updates

There are a lot of changes taking place every day and clients have a lot of questions so please do not hesitate to have your clients call me.

Remember that LA Mortgage is a mortgage broker and we do refinancing as well as purchase money loans.

Must read news for Feb 5th

Mortgage rates hit six week high
The 30-year fixed rate jumped to 5.70%, and more volatility is expected as Senate debates the economic stimulus package.

- Mortgage rates rose over the past week, pushing the cost of borrowing to its highest level since Christmas. And volatility is expected to continue as the debate over the economic stimulus plan continues.
The average 30-year fixed mortgage rate rose to 5.70% from 5.48% for the week ended Feb. 4, according to Bankrate.com.
The average 15-year fixed rate mortgage increased to 5.31% from 5.10%, and the average jumbo 30-year fixed rate jumped to 7.12% from 7.06%.
Adjustable rate mortgages were mixed over the past week, with the average 1-year ARM falling to 5.73% from 5.87% and the 5/1 ARM increasing to 5.5% from 5.41%.
The increase in mortgage rates makes borrowing more expensive for many would-be home buyers.
Last week, when the average 30-year fixed mortgage rate was 5.48%, a $200,000 loan would have carried a monthly payment of $1,133.07, according to Bankrate.com.
With the average rate now 5.70%, the monthly payment for the same size loan would be $1,160.80, a difference of nearly $28 per month.
LA MORTGAGE INC. a Rodeo Realty company
15300 Ventura Bl. #101 Sherman Oaks, CA 91403
Jeffrey Fink Email: jefffink@lamortg.com
Mobile: 818-723-1638 Office: 818-986-7300 ext 120 E Fax: 206-203-4720
CONFORMING, CONFORMING JUMBO, FHA, SUPER JUMBO LOANS


Conforming Limits: $100,000 to $417,000 February 5, 2009
Rates
5.00% 10-Year Fixed

5.5% 30-Year Fixed


NEW CONFORMING



Conforming Jumbo: $417,001-$625,500
Rate: 6.25% 30 Year Fixed
Rate
JUMBO LOANS

LOAN AMOUNTS $625,5001 -$10,000,000
5/1 Year Fixed 5.75 %
10/1 Year Fixed 6.125%
Interest only available

FHA LOANS LOAN AMOUNTS TO 96.5% LOAN TO VALUE30


30 Year Fixed $100,000-$ 362,500 5.5%
362.501 $625,000- 6.25%

Rates are based on a 1 point origination and are subject to change without notice ,in addition fico scores and dwelling type can affect the rate.

There are a lot of changes taking place every day and clients have a lot of questions so please do not hesitate to have your clients call me.

Remember that LA Mortgage is a mortgage broker and we do refinancing as well as purchase money loans.

4.5% QUIT WAITING FOR IT!!!!!!

Important note to originators with borrowers in the “waiting” mode: If you have borrowers who are waiting around for the much-touted 4.5% mortgage that the media is slobbering all over, you need to get them locked and closed now. Look at what is being purchased by the Fed - - mostly 5.0%’s and 5.5%’s. To-date, their actions represent about 15% of their targeted purchases, which by now represents enough to get a read on whether it will work. And have rates come down dramatically since they started? No. In fact, they’ve gone the other way (read today’s post on the Freddie Mac survey). Just because the media heard 4.5% as a target doesn’t mean it will necessarily happen anytime soon. Also you have to look at the larger view. As mentioned above the Treasury’s refunding efforts (redeeming bonds with proceeds received from issuing lower-cost debt obligations with ranking equal to or superior to the debt to be redeemed) are now at record levels and will continue – the Obama $900B spending plan will only add to that. This staggering amount of debt supply will need higher yields to attract buyers. The yield curve is steepening already to accommodate supply, and will continue to do so. Higher Treasury yields will put downward pressure on MBS prices, and mortgage rates will climb. Some analysts now think that as the 10-year moves above 3% the Fed will have to step in and buy long-term Treasury debt. Government agencies buying debt from other government agencies. Sound a bit like Madoff? Any way you look at it, the weather vane is pointing to higher rates, not lower ones. If your borrower can be bettered now, better to act now.
Mortgage Market Minute: After the open we are up slightly on worse-than-expected news from the Labor Department about initial jobless claims. The FNMA 4.5% is up +0.06 to 100.66, the 5.0% is up similarly to 101.69, and the 5.5% is up +.03 to 102.28. The stock market opened in negative territory and has clawed its way back to roughly even with yesterday’s close. Yesterday the Treasury Department announced the quarterly refunding would total a sizeable $67 billion. This pushed Treasury yields higher, but mortgage rates roughly held, because cheaper MBS prices again welcomed day trading bargain buyers; to some degree this behavior is keeping mortgage rates in a sideways pattern as the yield curve gets steeper. Trading is light, as it should be, the day before the big jobs report comes out. Friday’s non-farm payroll report (expect -500K after last month’s -524K) is the one that usually moves markets. Initial jobless claims hit all-time high, exceed forecast. The U.S. Department of Labor reported that initial claims for unemployment benefits rose to a whopping 626,000 in the week ending January 31, following an upwardly revised 591,000 claims in the prior week. The expectation was for a figure of 580,000. The four-week moving average for initial claims rose to 582,250, up from 543,250 in the week prior. The figure also exceeds the 16-year high of 589,000 that was set during the week ending December 20. Continuing claims rose to 4.79 million in the week ending January 24, just a tad below the expected 4.80 million, but still above the prior week’s revised 4.77 million. This marks the 10th week that continuing claims have been above the four-million mark. Mortgage rates climb for second week in a row.The average rate on a 30-year fixed rate mortgage rose this week from 5.10% to 5.25%, according to the latest Freddie Mac survey released today, showing that the Fed’s efforts to reduce rates on home loans is less efficacious than hoped. The average 15-year fixed rate mortgage rose from 4.8% to 4.92%. Rates have risen for two consecutive weeks after falling to a more than three-decade low in mid January, when the 30-year fixed rate average hit 4.96%, the lowest on record (data back to 1971). “Investors are growing a little bit nervous about all the Treasury bonds they’re going to be asked to buy to finance the government’s response to the financial crisis,” said Mark Zandi, chief economist of Economy.com. The Senate yesterday unanimously approved a Republican amendment to the stimulus bill they are debating that would temporarily offer homebuyers a tax credit worth $15,000 or 10 percent of a home’s purchase price, whichever is less.Obama administration now promotes limited-size Bad Bank conceptThe Obama administration plans Monday to announce a new “smaller” aid plan for the financial services industry, including a bad bank component. The new plan will be focused on government guarantees and insurance of troubled assets, what's called a "ring fence" concept. The latest round of discussions also appear to have addressed the controversial pricing issues by having the government buy toxic assets below the banks "carrying value," which is basically market value, but not at fire sale levels, the source said. However, it could trigger an accounting problem for the banks, presumably because the institutions will have to report a loss on the transactions. The administration is evaluating a temporary suspension of certain accounting rules in order to address that. On today’s date: February 5…1816: Rossini's Opera "Barber of Seville," premieres in Rome1870: 1st motion picture shown to a theater audience, Philadelphia1922: Reader's Digest magazine 1st published1945: U.S. troops under General Douglas MacArthur enter ManillaThe last word:“Profit in business comes from repeat customers, customers that boast about your project or service, and that bring friends with them.” --W. Edwards Deming

RATES & INFO FOR FEB 4th 2009

http://youtube.com/watch?v=QaJeJKxDWOg&feature=channel_page

LA MORTGAGE INC. a Rodeo Realty company
15300 Ventura Bl. #101 Sherman Oaks, CA 91403
Jeffrey Fink Email: jefffink@lamortg.com
Mobile: 818-723-1638 Office: 818-986-7300 ext 120 E Fax: 206-203-4720
CONFORMING, CONFORMING JUMBO, FHA, SUPER JUMBO LOANS


Conforming Limits: $100,000 to $417,000 February 4, 2009
Rates
5.00% 10-Year Fixed

5.375% 30-Year Fixed


NEW CONFORMING



Conforming Jumbo: $417,001-$625,500
Rate: 6% 30 Year Fixed
Rate
JUMBO LOANS

LOAN AMOUNTS $625,5001 -$10,000,000
5/1 Year Fixed 5.625 %
10/1 Year Fixed 6.125%
Interest only available

FHA LOANS LOAN AMOUNTS TO 96.5% LOAN TO VALUE30


30 Year Fixed $100,000-$ 362,500 5.5%
362,501- 625,000 6.0%

Rates are based on a 1 point origination and are subject to change without notice ,in addition fico scores and dwelling type can affect the rate.

There are a lot of changes taking place every day and clients have a lot of questions so please do not hesitate to have your clients call me.

Remember that LA Mortgage is a mortgage broker and we do refinancing as well as purchase money loans.

Bad Bank What Does It Mean??

The Obama administration is reportedly developing a plan to buy from U.S. banks some of their "toxic" assets -- troubled debt securities backed by subprime mortgages or complex derivatives. Many commentators agree that banks will not ramp up their lending until these assets are taken off their balance sheets.
However, the purchase of these securities faces a major challenge -- no one really knows how they should be priced since most have not traded for six months, a long time. Although the Treasury department could hire experts to estimate their prices by methods like discounted cash flow, these estimates would be educated guesses with considerable margin for error.
The pricing challenge is politically explosive. If Treasury pays too much for these assets, Congress and taxpayers will protest. If the prices offered by the Treasury are too low, the banks won't sell.
Here's a practical solution: After making its best estimate of an asset's current value, Treasury should offer the bank a cash payment equal to 80% of that value. For the remaining 20%, Treasury should provide the bank with a capital certificate, which would count as common stock in determining whether the bank meets its capital requirement.
The certificate will also entitle the bank to 80% of the actual price at which the asset is later sold by the government -- but only to the extent that the actual price exceeds the initial cash payment.
For example, suppose the Treasury estimates that a toxic asset is worth $700,000. It would pay the bank $560,000 in cash plus a capital certificate for $140,000.
If the government later sold that security for $660,000, the bank would receive an additional cash payment of $80,000 (80% of $100,000, the excess of $660,000 over $560,000). The Treasury would receive the remaining $20,000 of the excess.
On the other hand, if the government later sold the security for $550,000, the bank would receive nothing more. The Treasury would absorb a loss of $10,000.
This pricing plan should stimulate more lending by banks since they will immediately have cash on hand, instead of an illiquid toxic asset. Banks will also have the chance to receive more cash in the future if the toxic asset is sold at a price above the initial cash payment. In the interim, the capital certificate will help prevent the bank from becoming insolvent, since it will preserve the bank's capital for regulatory purposes.
The plan should also help banks sell new stock to institutional investors, instead of relying entirely on capital infusions from the Treasury. Institutional investors will not buy a bank's stock if they are worried that it will later announce large write-downs of its toxic assets. Now Treasury would effectively be setting a floor on the price of the asset equal to 80% of its estimated value.

Bad Bank What Does It Mean??

The Obama administration is reportedly developing a plan to buy from U.S. banks some of their "toxic" assets -- troubled debt securities backed by subprime mortgages or complex derivatives. Many commentators agree that banks will not ramp up their lending until these assets are taken off their balance sheets.
However, the purchase of these securities faces a major challenge -- no one really knows how they should be priced since most have not traded for six months, a long time. Although the Treasury department could hire experts to estimate their prices by methods like discounted cash flow, these estimates would be educated guesses with considerable margin for error.
The pricing challenge is politically explosive. If Treasury pays too much for these assets, Congress and taxpayers will protest. If the prices offered by the Treasury are too low, the banks won't sell.
Here's a practical solution: After making its best estimate of an asset's current value, Treasury should offer the bank a cash payment equal to 80% of that value. For the remaining 20%, Treasury should provide the bank with a capital certificate, which would count as common stock in determining whether the bank meets its capital requirement.
The certificate will also entitle the bank to 80% of the actual price at which the asset is later sold by the government -- but only to the extent that the actual price exceeds the initial cash payment.
For example, suppose the Treasury estimates that a toxic asset is worth $700,000. It would pay the bank $560,000 in cash plus a capital certificate for $140,000.
If the government later sold that security for $660,000, the bank would receive an additional cash payment of $80,000 (80% of $100,000, the excess of $660,000 over $560,000). The Treasury would receive the remaining $20,000 of the excess.
On the other hand, if the government later sold the security for $550,000, the bank would receive nothing more. The Treasury would absorb a loss of $10,000.
This pricing plan should stimulate more lending by banks since they will immediately have cash on hand, instead of an illiquid toxic asset. Banks will also have the chance to receive more cash in the future if the toxic asset is sold at a price above the initial cash payment. In the interim, the capital certificate will help prevent the bank from becoming insolvent, since it will preserve the bank's capital for regulatory purposes.
The plan should also help banks sell new stock to institutional investors, instead of relying entirely on capital infusions from the Treasury. Institutional investors will not buy a bank's stock if they are worried that it will later announce large write-downs of its toxic assets. Now Treasury would effectively be setting a floor on the price of the asset equal to 80% of its estimated value.

RATES & INFO FOR FEB 2ND 2009

LA MORTGAGE INC. a Rodeo Realty company
15300 Ventura Bl. #101 Sherman Oaks, CA 91403
Jeffrey Fink Email: jefffink@lamortg.com
Mobile: 818-723-1638 Office: 818-986-7300 ext 120 E Fax: 206-203-4720
CONFORMING, CONFORMING JUMBO, FHA, SUPER JUMBO LOANS


Conforming Limits: $100,000 to $417,000 February 2, 2009
Rates

5.375% 30-Year Fixed


NEW CONFORMING



Conforming Jumbo: $417,001-$625,500
Rate: 6% 30 Year Fixed
Rate
JUMBO LOANS

LOAN AMOUNTS $625,5001 -$10,000,000
5/1 Year Fixed 5.125 %
10/1 Year Fixed 6.125%
Interest only available

FHA LOANS LOAN AMOUNTS TO 96.5% LOAN TO VALUE30


30 Year Fixed $100,000-$ 417,000
5.5%
417,001-625,500
6%

Rates are based on a 1 point origination and are subject to change without notice ,in addition fico scores ltvs and condos can effect rates.

There are a lot of changes taking place every day and clients have a lot of questions so please do not hesitate to have your clients call me.

Remember that LA Mortgage is a mortgage broker and we do refinancing as well as purchase money loans.