They Keep Serving, We’ll Keep Sending

 Please join our staff and agents in supporting our

deployed troops by donating!

What items do they appreciate being sent to them?

Food Items:

            DO NOT SEND:

Chocolate candy bars because they melt or liquids that will leak.

            DO SEND

• Any kind of junk food that will ship well.
• Cookies
• Coffee
• Beef Jerky
• Salted Peanuts
• Cup of Noodles (The “just add hot water” kind)
• Trail Mix
• Sunflower Seeds
• Granola Bars
• Breakfast Bars
• Fruit Snacks
• Bean Dip, Salsa, and Chips
• Crackers
• Soup, Canned Chicken (Pop-open cans or send a can opener with it.)
• Sauces to liven up the taste of foods (BBQ, Ranch, Ketchup, Salsa, Soy Sauce)

CARE ITEMS:

DO NOT SEND:

Hygiene items, such as toothbrushes, soap, toothpaste, razors, etc.  Our soldiers say that because of the generosity of people sending care packages, there are more personal hygiene items stored at the military base camps than they need.

DO SEND:

• Canned-air to clean dust out of computers, weapons, and other equipment.

RECREATION:       

DO NOT SEND:

• It is against military regulations for soldiers to possess pornographic materials, and punishable under the Uniform Code of Military Justice.  It is also advised that possessing such is disrespectful to the sensitivities of the Muslim culture.

DO SEND:

• Anything that the soldiers can do on their down time that will help them relax.  They need things that will help them smile and laugh, they need a little comic relief. 
• DVD Movies (New or Used)
• Music CDs (New or Used)
• CDs containing iPOD or MP3 Music
• Video-taped Oregon State and/or University of Oregon sporting event
• Games (Small travel size games are the best)
• Books
• Current Magazines
• NEWSPAPERS!  (Especially the sports sections)

MISCELLANEOUS:

• Travel size laundry detergent
• Small Flash lights
• Batteries of different sizes
• Phone Cards (AT& T and MCI work the best)
• Photos and Calendars
• Any specific items that give them a reminder of home.

• School supplies or toys to be given to local children

You can drop off donations to RE/MAX Equity Group, Inc.

12550 SW 68^th Parkway

Portland, OR 97223

or call us for large pick-ups

503.452.6100

Click Here For More Info.

tuesdaymeetingdec2

Click the links below to access this

 weeks meeting notes.

tuesdaymeetingnov4

pmardisiplinary

tuesdaymeetingoct28

The market is the market!  We are dealing with new ways and feelings every day.  Yet in our business there are so many opportunities that will present themselves if you just CONTACT SOME PEOPLE DAILY!

In the Buffini class this week, our Brokers sent many note cards and letters to past clients and customers.

They made many phone calls to “catch up” with their favorite people and lo and behold they have created opportunities for themselves.  They will go and present information regarding the listing, selling and/or referring of real estate to these clients, and I have to tell you this activity is very exciting and will be rewarding to them as well.

Next week:        Ruth will run the Sales Meeting on Tuesday as I will be in Bend teaching Ethics classes on Tuesday and Wednesday.  I am not saying that it takes two days to teach a ½ day class in Bend.  I will be speaking in front of two different groups.  Kate Brooke will be here on Tuesday with an exciting rendition of Legal Questions and Answers for Real Estate Professionals.  You will not want to miss this sales meeting.

Thursdays Lunch and Learn we will be discussing Gary Taylor’s article in PMAR Newsletter that is titled “Top 10 Mistakes Agents Are Making in Today’s Market” and we will also discuss many other opportunities and how to succeed in this real estate market.

When you are looking in the mirror every morning and wondering how the day is going to go…

Please remember that the solution is you.  You are in control of how much business you will generate that day.

”If it’s to be…it’s up to me.”  

Warning!!  Regarding opening emails from or about Hallmark Postcards and/or Greetings be very careful.

There is a high warning about a virus attached to this.

Also I heard from one of our Brokers that “a relocation company” wanted to use her “exclusively” for buyers and sellers in the area and she only had to give $5,000 on a credit card.  BE CAREFUL !!

Have a great weekend and sell some real estate or meet someone who might want to!

Alan 

Alan B. Mehrwein, CRB, GRI

Principal Broker – Branch Manager

RE/MAX Equity Group, Inc.

Portland Executive Office

12550 SW 68th Pkwy

Portland, OR 97223

Phone:  503.495.5194

email: amehrwein@remax.net

http://joinremax.com/

30 yr conforming                              5.75

30 yr jumbo                                        6.375 to $600k

7/1 ARM                                              5.625 – 5.75

OR State Bond                                   6.00  FHA or Conventional

OR VA                                                   5.875

 We had an interesting week. Interest rates on conforming have come down. We might even be able to get 5.625%. But, Oregon State’s VA and Bond program went up. The jumbo and ARM products were flat. We have seen a lot of volatility though. These quotes are only for informational purposes – they can and do change frequently.

For this week I have included an article written by David H. McCormick, an Under Secretary in the U.S. Treasury. One of the many sources of information that I read and review comes directly from the U.S. Treasury. I found this article, although it appears rather long, to be a  clear and concise review of what we have been through and where we should be going.  This was a speech prepared for a Chinese audience but it does an excellent job in reviewing the recent events surrounding the credit crisis. If you want a broad overview of the events over the last year or two – especially over the last few weeks – take the time and read through it.

Next week, I’ll give an update on some mortgage guideline changes. Thanks and have a great week.

Under Secretary for International Affairs David H. McCormick Remarks to the Better Hong Kong Foundation

Financial Turmoil and the Global Economy

Hong Kong – These are unprecedented and difficult times for the global economy. The world’s financial market conditions are severely strained, and risks to the global growth are significant. The largest advanced economies are feeling this most acutely. In the United States, our financial markets are experiencing unprecedented challenges, and this is adding even greater pressure to our already slowing economy.

These developments are affecting the entire globe. Emerging market countries in recent years, including those in Asia, have made impressive strides in strengthening their fundamentals, accelerating their economic growth and cushioning themselves against external shocks.  Nevertheless, as the events of the past several weeks have shown, emerging markets like China are not immune from the global financial stress. Even financial markets with little direct exposure to mortgage-related assets risk becoming destabilized by diminishing market confidence and slowing export growth. Because we are all affected by this crisis, we must work together to address this instability and restore the health of the world economy.

Over the past two weeks, we have witnessed an unprecedented international response to this financial turmoil. The Group of Seven industrialized countries have announced and are implementing a coordinated action plan to stabilize financial markets and restore the flow of credit. Others around the world, from Hong Kong to Denmark, have adopted similar approaches. Together these countries are taking steps to provide liquidity to markets, strengthen financial institutions, prevent failures that pose systemic risk, protect depositors, and enhance confidence in financial institutions. While financial markets have responded positively in some ways to these unprecedented efforts, much work remains.

Today, I would like to share my views on how we arrived at this place, what the United States is doing to address the turmoil and suggest some possible early lessons for both the United States and China.

Root Causes of the Market Turmoil

How did we get to this point? The story begins with a decade of benign economic conditions marked by low interest rates, low inflation, and less volatile asset markets, leading many to ignore the “risk” half of the risk-reward equation at the heart of financial markets. Investors around the world, who in preceding years had enjoyed above-historical returns on most assets, continued reaching for ever-higher gains. In response, the financial-services industry created a variety of complicated new financial products to meet this demand, and regulators and investors alike showed a growing complacency toward risk. These factors, blended together, created underlying conditions ripe for instability.

The imbalance between risk and reward was most evident in the U.S. housing market, where lenders significantly loosened credit standards, particularly for a new generation of adjustable-rate mortgages. Last summer, these vulnerabilities in our financial system became clear, as looser credit standards in the housing market combined with an end to rapid home-price appreciation led to a significant rise in delinquent mortgages. This in turn contributed to immediate and unexpected losses for investors and a reconsideration of the risk-reward relationship–first in housing, and soon after, across all asset classes. Shaken investor confidence in housing assets had a domino effect throughout world markets, ratcheting up demand for cash and liquidity, and curtailing the pace of the new lending and investment necessary for continued growth.

Actions to Mitigate Risk and Stabilize Markets

Recognizing the risk of the housing downturn to the U.S. economy, the Bush Administration and Congress have taken a number of steps, including a $150 billion stimulus package, to help mitigate the impact on the real economy. Progress in the financial markets has been uneven, and additional challenges clearly lie ahead.

In formulating a response, we initially acted on a case-by-case basis to address deteriorating financial conditions in a number of financial institutions. In March, the Federal Reserve took unprecedented action to ensure an orderly resolution for Bear Stearns, and in September, authorities around the world took steps to mitigate the impact of the bankruptcy of Lehman Brothers, America’s fourth largest investment bank. That same week, the Federal Reserve provided funding to American International Group (AIG) to address the systemic risk that would have resulted from a sudden collapse of the firm. Several weeks later, the FDIC facilitated JPMorgan Chase’s acquisition of the banking operations of Washington Mutual, one of America’s largest retail banks.

In each of these cases, policymakers attempted to strike a careful balance of promoting market discipline while mitigating systemic risk, holding investors and management teams accountable while protecting blameless consumers from collateral damage.

We have sought to achieve a similar balance in the cases of Fannie Mae and Freddie Mac, which are of particular interest to investors around the world, including here in China. These Government Sponsored Enterprises (GSEs) are the largest sources of mortgage finance in the United States, affecting roughly 70 percent of mortgages originated. Not surprisingly, the prolonged housing correction weakened their financial condition, and both institutions faced a loss of investor confidence. Fannie Mae and Freddie Mac are so large and interwoven in our financial system that the failure of either would have far reaching effects on the U.S. and global economies.

This past summer, investors began to express growing concerns over the stability of Fannie and Freddie and the ambiguity over the scope and certainty of government support for these institutions. In response, Secretary Paulson asked Congress for certain authorities regarding Fannie Mae and Freddie Mac in order to help stabilize and support our financial and housing markets. Congressional leaders acted promptly and decisively with the needed legislation. In the days and weeks that followed, the FHFA, the government regulator responsible for overseeing these institutions – placed both of Fannie and Freddie under temporary government control to allow for needed changes at both institutions.

In a complementary step, Treasury established contractual Preferred Stock Purchase Agreements with both institutions, committing up to $100 billion per institution to ensure that each GSE maintains a positive net worth, thereby protecting debt holders. These Preferred Stock Purchase Agreements are intended to address the underlying ambiguities surrounding the GSEs by explicitly demonstrating to the holders of Fannie Mae and Freddie Mac debt that the U.S. government will stand behind and protect their investments.

A Comprehensive Policy Response

Despite the hardening of the government’s support for Fannie Mae and Freddie Mac, and the decisive resolutions of Bear Stearns, Lehman Brothers, AIG, Washington Mutual, and Wachovia, investors have become increasingly concerned over the possibility of other failing financial institutions. This has made them increasingly reluctant to extend credit and has resulted in the further tightening of our credit markets.

Sharp increases in the cost of credit for financial and non-financial companies, in the United States and globally, have increased the risk that corporations will be unable to roll over maturing debt. Given this fragile environment, U.S. authorities decided there was a need to act decisively and comprehensively to stabilize the markets and address the underlying sources of uncertainty. The four part plan rolled out by earlier this month seeks to achieve these goals.

First, central banks from around the world have acted together in recent months to provide additional liquidity for financial institutions. The Federal Reserve has established swap lines with a number of central banks to reduce pressures in global short-term U.S. dollar markets. Moreover, to further increase access to funding for businesses in all sectors of our economy, the Federal Reserve launched a Commercial Paper Funding Facility (CPFF), which provides a broad backstop for the commercial paper market by funding purchases of commercial paper of three month maturity from high-quality issuers.

Additionally, in early October, Treasury implemented a temporary guaranty program for the U.S. money market mutual fund industry, which had experienced funding problems. This temporary $50 billion guaranty program offers government insurance to address concerns about whether these money market investments are safe and accessible.

Second, we have taken steps to improve market operations and market integrity. For example, the Securities and Exchange Commission took temporary emergency action to prohibit short selling in financial companies to protect the integrity and quality of the securities market and strengthen investor confidence. The SEC’s exceptional actions were joined by regulators in the UK, France, Germany, and other countries who also imposed restrictions on short selling. In addition, the SEC is aggressively pursuing enforcement action against market manipulation that may have occurred in previous months.

Third, with the support of Treasury and the Federal Reserve, the FDIC has temporarily guaranteed the senior debt of all FDIC insured institutions and their holding companies, as well as deposits in non-interest bearing deposit transaction accounts. These actions are specifically designed to unlock interbank lending by mitigating counterparty risk. Regulators will implement an enhanced supervisory framework to assure appropriate use of this new guarantee. This important action, combined with the increase in the FDIC’s deposit insurance from $100,000 to $250,000, will provide confidence in the banking system and avert destabilizing capital flows between banks in the United States.

Finally, and perhaps most important, Treasury is acting to provide much-needed capital to address one of the root causes of the current stress in our financial system – the ongoing housing correction and the consequent buildup of illiquid mortgage-related assets. These troubled assets remain frozen on the balance sheets of banks and other financial institutions, constraining the flow of credit that is so vitally important to our economic growth. The failure to address this would mean that every aspect of our financial and funding markets, ranging from consumer credit to money market funds, would remain impaired.

On October 3, Congress passed and President Bush signed into law the bipartisan Emergency Economic Stabilization Act of 2008. The law gives the Treasury Secretary broad and flexible authority to purchase and insure mortgage assets, as well as equity securities, as needed to stabilize our financial markets. The law empowers Treasury to design and deploy numerous tools to fill the capital hole created by illiquid troubled assets.

As part of a carefully defined capital injection plan, nine major financial institutions, which comprise more than 50 percent of all U.S. deposits and assets, have already agreed to participate and will receive a combined $125 billion of capital and will grant the U.S. government minority stakes in return. These healthy institutions are taking these steps to strengthen their own positions and to enhance the overall performance of the U.S. economy. By participating in this program, these banks, along with others that will be identified in the future, will have enhanced capacity to perform their vital function of lending to U.S. consumers and businesses and promoting economic growth. These nine banks have also committed to continued aggressive actions to prevent unnecessary foreclosures and preserve homeownership.

We are also developing plans to add additional capital to reduce market uncertainty and encourage private investors by purchasing mortgage backed securities and whole loans off the balance sheets of U.S.-based financial institutions.

Together, these four steps significantly strengthen the capital positions and funding ability of U.S. financial institutions, enabling them to perform their role of underpinning overall economic growth. These actions demonstrate to market participants around the world that the United States is committed to taking all necessary steps to unlock our credit markets, minimize the impact of the current instability on the U.S. economy, and restore the health of the global financial system.

Much of this action is being coordinated internationally. The steps being undertaken in the United States are consistent with the efforts undertaken around the globe by others to provide liquidity, strengthen financial institutions, prevent failures that pose systemic risk, protect savers, and enforce investor protections. We welcome the policy decisions announced by European countries, Japan, Australia, and other nations around the world to stabilize their markets and ensure the health of their institutions.

Lessons for the Future

Since we are very much in the eye of the storm, it is difficult and premature to draw definitive lessons. Let me suggest four emerging themes that may be worth considering.

First, we have undoubtedly learned that our own financial system is in need of reform. To help rebuild the strength and confidence in our markets, the United States has worked to implement the findings of international experts in the Financial Stability Forum (FSF) and U.S. experts in the President’s Working Group on Financial Markets (PWG). These bodies concluded that we must increase transparency, prudential regulation, risk management, and market discipline. Additional reforms of our regulations, regulatory structure, and international institutions will most certainly follow.

The Financial Stability Forum recommendations are applicable to the financial markets around the world, and my country is committed to implementing them in full. China can and should benefit from the lessons the United States and other countries have learned from the challenges in our financial markets, and we are happy to share them. It would be unfortunate if, as a result of this turmoil, policymakers in China mistakenly abandon their pursuit of financial sector innovation that has been so important to supporting China’s growth in productivity and macroeconomic stability.

Second, it is clear that the current turmoil has exacerbated macroeconomic policy challenges the United States and China already faced as a result of structural imbalances in both economies. For the United States, this has made efficient management of fiscal policy an even more critical challenge. China’s extraordinary growth has relied on exports and investment to fuel the economy, but this strategy may no longer be tenable in the face of a global economic slowdown.

As China’s leaders recognize, their current growth model has created growing internal and external imbalances that need to be addressed. Strong domestic demand growth – with robust contributions from consumption and the services sector – provides the surest guarantee of both macroeconomic stability and sustained economic growth in the face of negative external shocks. Achieving strong demand-led growth is no small policy challenge. However, market-based pricing, including for interest rates and exchange rates, must play a central role in the process of allocating resources towards production for the domestic market.

Third, we have learned that our growth and prosperity is more dependent on one another than at any time in our respective histories. Openness to international trade and investment has been and will continue to be the linchpin of economic growth for the global economy. Policy makers around the world must therefore remain vigilant to guard against the inevitable short-sighted appeals for protectionism during this period of global financial stress. A central task for policymakers in both the United States and Asia is to embrace the aggregate benefits of openness to trade and investment while taking measures to ensure that opportunities to benefit from that openness are widely shared.

Finally, the recent crisis has highlighted the importance of continued cooperation among major economies through such for a as the G-20, the Financial Stability Forum, and the International Monetary Fund. As recent developments have demonstrated, the market turmoil is a global event. Governments around the world have taken actions to address financial market developments, and international cooperation and coordination has been robust. It is critical for governments to continue to take individual and collective actions to provide much-needed liquidity, strengthen financial institutions, enhance market stability, and develop a comprehensive regulatory response. We must closely coordinate our efforts within a common framework so that the action of one country does not come at the expense of others or the stability of the system as a whole.

Conclusion

Ladies and gentlemen, the interdependence of our global economy makes our current challenges more complex. It also makes our work with international counterparts to promote growth and financial stability all the more important. We should take faith from the fact that leaders in America and around the world are rising to this pressing challenge. In the United States we have faced and overcome enormous economic challenges like this before. From this crisis, too, I’m confident we will emerge stronger and wiser. “

Bob Chiodo, CFP

Equity Home Mortgage, LLC

12550 SW 68th Parkway

Portland, OR 97223

(503)670-7393

fax: (503)670-7062

bobchiodo@equityhome.com

www.ResCommLending.com

*Rates quoted are for the use of Realtors and others in the real estate/financial service industries. They are not meant to be a quote for an individual situation. Rates change daily and those above are only listed to assist market participants by keeping them informed of current interest rates.  Quotes are usually shown for a 30 day lock period and a 1% origination or discount fee.

In response to concerns about the availability for your clients to obtain financing on their real estate needs, I want to assure you that, regardless of what the media might be reporting, loans are being made. There is no question that things are more difficult than they used to be and guidelines do change daily. Since we are in a very fluid market, it is highly recommended that your clients seek the advice of a mortgage professional before planning a change in financing arrangements.

That said, Fannie Mae and Freddie Mac are still our major source of financing for conventional loans. The current loan limit is $417,000. Anything over that amount is considered jumbo. Conventional financing typically requires at least 5% down and good credit. With less than 20% down, mortgage insurance is required. This requires us to follow the mortgage insurers’ guidelines in addition to the lenders’ and Fannie Mae’s. One big change that has come about is that we need to verify income for all applicants. No longer can we just state their income. Documentation requirements are dependent upon how the client’s income is generated. The debt-to-income ratio being used has become more conservative also. As a rule of thumb we will allow the client’s total monthly debt (mortgage payment, property taxes, property insurance, credit card debt, auto loans, etc. – anything that would show up on a credit report plus spousal and/or child support) to be 45% of their stable, verifiable, gross monthly income.

Current rates are around six percent. Lower credit scores now require higher loan costs. The same applies for the lower down payment transactions.

FHA has become a major participant in the lending place today. These programs are more aggressive in credit quality – lower scores don’t necessarily require higher loan costs. Loan amounts can go to the same limit as Fannie Mae ($417,000). Down payment is only 3%, however, come January 1, it increases to 3.5%. Full income documentation has always been required.

VA loans are still a great source of financing for our veterans and are still available with no down payment to loan amounts of $417,000. VA loans can actually go above that limit, however, they do require down payment.

There are many other state and local government sponsored programs available to first time homebuyers requiring little or nothing down. There is also the USDA program for cities with populations less than 25,000. These loans have very favorable terms with no down payment required.

As for jumbo programs (over $417,000) that market is still very fragmented. Many lenders would prefer not to lend over the conforming limit and, if they do, their rates are substantially higher. We do know of a few ‘portfolio’ lenders. These lenders do not sell their loans or have them insured with any government entity. These lenders will usually keep the loans for their own investment portfolio. Most of these lenders prefer to lend on an ARM product with a fixed period of 5 -10 years. The rate on these loans are typically below the standard conforming rates. I know of one portfolio lender who still does jumbo loans on a 30 year fixed basis. These lenders typically want 10% or more down (many will only lend if there is 20% down). Full documentation and good credit is required. Although we primarily use these lenders for jumbo products, they can lend on loan amounts as small as $100,000.

Obviously, this is just an overview of our lending parameters. You can see that there are still many sources of funds available. Some of the more closely scrutinized issues today surround homeowners who will keep their existing residence, rent it, and then buy a new home to occupy. These loans are being reviewed very closely.  Refinance with cash being taken out are also on the target list. Employment in certain fields (like the mortgage business) are also on the list.

The bottom-line is that good borrowers are still getting the money and the riskier transactions are getting a lot more difficult to make. The lending process is taking a little longer due to more documentation and a greater credit/risk analysis. But, we are still closing loans.

 Bob Chiodo, CFP

Equity Home Mortgage, LLC

12550 SW 68th Parkway

Portland, OR 97223

(503)670-7393

fax: (503)670-7062

bobchiodo@equityhome.com

www.ResCommLending.com

Click Link Below to Access this Weeks Agenda and Handouts.

tuesmeetingoct07

Click link below for RMLS Monday Morning Missives

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