Lender Update

As you know Bank of America purchased Countrywide on July 1st, 2008. As a result the most powerful bank in the United States is now our new employer. When Bank of America purchased Countrywide it inherited a string of pending lawsuits surrounding the origination of sub-prime loans. On 10/6 Bank of America created a proactive home retention program that will systematically modify troubled mortgages with up to $8.4 billion in interest rate and principle reductions for nearly 400,000 Countrywide Financial Corp customers nationwide. Bragg and I are pleased with Bank of America's quick response to solve this issue for Countrywide customers and believe it is a true indicator of their commitment to "DO THE RIGHT THING". They moved swiftly and decisively toward a solution that other lenders will emulate.

We have already received a number of inquires from agents. Here are a few points of clarification about the agreement:

1) This is NOT part of the $700M bailout structured by the federal government
2) This is targeted to assist Countrywide customers in need of relief that are likely to become seriously delinquent as a result of specific loan features
3) The relief effort starts on 12/1/08 and runs through June 30,2012
4) I believe this must be on primary residences only
5) FINALLY- the phone number Countrywide customers can call is :1-800-669-6607

The purpose of this communication is the inform you so you can provide HOPE to some of the people you serve or come into contact with on a daily basis. Encourage those Countrywide customers you know to contact the 800 number above to inquire about what they may (or may not) be entitled to based on this agreement. Be sure to remind them to be patient. Bank of America expects this agreement to benefit over 400,000 clients so if you thought the recent lines to get gas in the car was long............

Thank you and know we are both eager and available all weekend to speak with your client(s).

Senior Home Loan Consultants

Kathy Vitali Bragg Boyd
770-540-5566 Cell 770-315-3644 Cell
kathy_vitali@countrywide.com bragg_boyd@countrywide.com

Rates Shaved Lower by Fannie-Freddie News

For the week of Sep 15, 2008

"THERE IS NOTHING WRONG WITH CHANGE, IF IT IS IN THE RIGHT DIRECTION."
Winston Churchill.

And the housing and mortgage industries experienced a great change in the right direction last week, as the Federal government moved to support Fannie Mae and Freddie Mac, causing Bonds and home loan rates to improve significantly and end the week around .25 percent better than where they began. So why did the Federal government take action? Fannie Mae and Freddie Mac both have issued many Bonds which over time mature, and Fannie and Freddie need to pay back the principal on the maturing Bonds. The way they raise capital to pay these maturing Bonds is to issue new Bonds, which happens every month. And as long as Fannie and Freddie can sell new Bonds this system works well. But the problems in the mortgage industry have reduced investor appetite to purchase these Bonds. Without the ability to sell new Bonds, Fannie and Freddie are less able to meet the capital requirements to pay off the maturing Bonds. And if Fannie and Freddie were to default and become insolvent, the mortgage and housing industries...and homeowners across our nation... would face even more struggles than we are seeing now. So the government's decision to back Fannie Mae and Freddie Mac is great news for homeowners, because it ensures the continued liquidity of conforming loans nationwide and it ensures that buyers of this type of Bond have a safe investment going forward. In other Bond-friendly news, we saw good news on the inflation front last week. Overall Import Prices declined for the first time since December, thanks in part to the recent plunge in oil and gas prices. And Wholesale Prices, which help measure inflation, fell in August for the first time this year. Overall, the good inflation news and the Fed's decision about Fannie and Freddie should lead to improving Bond prices and home loan rates in the long-term. With home loan rates at such low levels, it's a great time to review your mortgage situation and make sure you have the rate and program that best suits your current financial needs. I'd be glad to do a quick review for you - and your friends, family members, neighbors or coworkers as well - so just give me a call or email, I'll look forward to hearing from you! MAKING SURE YOUR CREDIT CARDS ARE SAFE IS AN IMPORTANT STEP IN THE RIGHT DIRECTION TOO, SO CHECK OUT THIS WEEK'S MORTGAGE MARKET VIEW TO MAKE SURE YOU KNOW HOW TO PROTECT YOURSELF AGAINST A NEW CREDIT CARD SCAM.

Buyers Checklist - Contract to Close

Hey everyone,
One of the items that everyone asks after signing a contract is "WHAT COMES NEXT?" The To Do list is below for you to reference. It is critical to get everything done in a timely fashion prior to set deadlines in the contract. Most important is to have a Certified Home Inspector check out your house!!! This will give you peace of mind in knowing exactly what you are buying ~ or in some cases what you might wish to RUN AWAY FROM!!!! (in cases of extreme structural issues for instance)
I hope this helps you all out ~ Stay in Touch!!!


BUYER checklist of the activities that will need to be completed prior to closing:

Set up inspection:
Call an “ASHI” or “CABO” certified inspector and schedule an inspection ASAP. Call agent with date & time of
inspection----You will want to be there for the inspection if at all possible (plan on 1 ½-3 hours depending uponthe size and age of the home). Set up any other inspections that may be applicable (pool, septic, termite, radon, etc.)

Lender Related Items:
Call lender and inform them that you are now under contract! (Work with them to get everything they need.) Ask your lender if a closing termite letter is needed. Ask your lender if a new survey is required to secure loan. Sometimes the homeowner has a current survey which will suffice. Ask lender about Homeowners Title Insurance –it is recommended. Ask lender for a Good Faith Estimate which should give you a good idea of the amount of Certified Funds you will need to have at the closing table.

Miscellaneous Items:
Secure Homeowners Insurance (Hazard Insurance)--your agent has a list of reputable insurance agents if needed. Transfer Utilities to your name for date of closing. Agent may assist in getting the names and phone numbers if needed. Arrange for the Final Walk Thru prior to closing—usually w/in 5 days of closing date. Your agent will schedule it w/ all parties.

New Construction (If Applicable)
Please be certain that any change orders, selections orders, Amendments, & /or additional Earnest monies are sent to agent’s office for filing. All important communications w/ builder or designer should be ‘copied’ to agent as well for file.

2 Days Prior to Closing
Confirm w/ lender approximate amount needed for closing—the HUD statement is usually not ready until the day of or 1 day prior to closing. Have the certified check for closing made out in your name—at closing endorse it. You will also need your driver’s license at closing. Make certain you have Original Homeowners Insurance Policy ready for closing. Closing cannot take place without this Original Policy in hand!!!!! Make certain you have adequate directions to the closing attorney’s office!