Tuesday the Fed released an offer to lend $200B to banks for home loans. This move had a historic effect on the market! It is about a week in advance of the next regular Fed meeting in which the  Fed is expected to lower the rates between 50 and 75 basis points. Crazy, because lenders all adjsted up their rates. Next weeks move by the Fed will hopefully bring them back down. Keep your seat belts on, we are nearing the BOTTOM of this market.

Hey don't forget I am about to launch a new web site in which I will disclose a secret I have been hiding from most of the people who know me for the last two years. It has nothing to do with lending or real estate! It's about YOU and how to keep YOU at your BEST. My story is almost unbelievable. Actually, if I hadn't been there, I wouldn't believe it myself!

I have been harboring a deep secret for the last two years. Soon, I will share it with you. I hope it will help you to DODGE a BULLET like it did me!!

Fannie Mae and Freddie Mac and FHA new limits DIFFER depending on the county that the property is in. Check for max loan limits, i.e., Orange County new limit is $729,750 however, Riverside and San Bernardino limits are $500,000. NOTE: Some zip codes are now designated by lenders as being in "depressed or declining markets". This means that there are a high rate of defaults and foreclosures in these areas. The result: Lenders are restricting lending to lower percentages in these areas, 75% instead of 80%.

FANNIE AND FREDDIE AGREE TO NEW SET OF LOAN STANDARDS
Fannie Mae and Freddie Mac, along with the Office of Federal Housing Enterprise Oversight (OFHEO), have agreed to form an independent organization to launch and monitor a new set of loan appraisal standards in an effort to reduce the risk of fraud, among other issues.

The "New Home Valuation Protection Code" establishes new requirements governing appraisal selection, solicitation, compensation, conflicts of interest, and corporate independence, among other reforms. These requirements include prohibiting mortgage brokers from selecting their own appraisers, and prohibiting lenders from using "in-house" appraisers and using appraisal management companies they either own or control.

The agreement also calls for the creation of the "Independent Valuation Protection Institute," which would serve to implement and monitor the "New Home Valuation Code." The Institute will be funded by Fannie Mae and Freddie Mac and operate as a consumer contact center for complaints from both borrowers and appraisers alike.

To read comments about the new agreement by Freddie Mac Executive Vice President Robert E. Bostrom, go directly to http://www.freddiemac.com/news.