Mr. Paulson says No to helping Fannie and Freddie

The U.S. Tresury Secretary, Henry Paulson, stated on Sunday's Meet the Press that he has no plans to bail out mortgage companies Fannie Mae and Freddie Mac, as they both struggle with their earnings.

A plan was established last month by Congress and the Tresury Department to help support Fannie Mae and Freddie Mac. The plan would allow the Treasury to buy the companies shares. Many analyst have thought that Mr. Paulson would have to act, as the housing crisis worsens. But it seems that Mr. Paulson thinks otherwise.

Effects of the New Housing Bill

A new bill set to be signed by the President later this week will allow the federal government to step in and help the collapsing housing market. The bill will grant the Treasury Department the ability to safeguard two of the nations largest mortgage finance giants (Fannie Mae and Freddie Mac) from collapsing. It is said to be the boldest attempt to aide troubled borrowers since the New Deals Home Owners’ Loan Corporation in 1933.

As the government moves in to offer relief the banks will have the opportunity to supply the homeowner with refinanced loans and loan modifications, and keep the foreclosure rates from sky rocketing further than they have already.

If all goes as planned at risk borrowers will be able to get a handle on their unbearable mortgages with a fixed rate loan insured by the FHA. All in all it is a good move forward for the state of the country. It may even be a good deal for mortgage brokers who are assisting homeowners on closing deals with a refinance or loan modification.

Viva LeadsCon!

We're off to the first annual LeadsCon show in fabulous Las Vegas. Check back next week for a recap of the event. Looking forward to hanging with all the buyers, sellers and service providers who make lead gen such a fun space.

Time for a Refresher Course?

It could be time for mortgage brokers to hit the books. New compliance and licensing standards may be on the horizon.

Today, Treasury Secretary Henry Paulson proposed that imposing tougher standards on mortgage brokers could help us dig out of this current credit mess. He's asking for "strong nationwide licensing standards" for mortgage brokers in order to instill confidence back into the market.

"Regulations needs to catch up with innovation and help restore investor confidence but not go so far as to create new problems, make our markets less efficient or cut off credit to those who need it," Paulson said.

How do you feel about nationwide licensing standards? In one respect, a nationwide plan could help brokers do more business across a variety of states and also cut down on redundant paperwork and compliance issues that arise up from doing business in multiple states. On the other hand, would turning over licensing to the Feds cause more problems by installing a one-size-fits-all policy that discounts local differences in real estate markets? I guess we'll have to wait and see exactly what the "tougher standards" are before making a decision. In the meantime, it might not be a bad idea to dig out your Real Estate Principals textbook.

On a side note, is anyone else distracted by Paulson's resemblance to 2-time AL MVP Cal Ripken Jr.?

Will the real Treasury Secretary please stand up?

The Fed Steps In

Today, the Fed moved to add liquidity to the credit markets. To make a long story short, they are allowing investment houses and banks to buy ultra-safe US Treasury Bonds in in exchange for debt that includes risky and out-of-favor mortgage-backed securities.

"Pressures in some of these markets have recently increased again," the Fed said in a statement. "We all continue to work together and will take appropriate steps to address those liquidity pressures." The other banks involved are the Bank of Canada, the Bank of England, the European Central Bank and the Swiss National Bank.

How will this affect brokers? With the Fed's move today and the recent increases in the FHA and Conventional loan amounts there is definitely an ability to do more deals than there was just a few weeks ago.

Now is the time to work on increasing your business. Get out there and close more loans!

FHA Loan Limits Increase! Governator Wants You to Close More Loans.

Yesterday, the FHA raised the limits on mortgages it guarantees. In a move that could help thousands of homeowners out here in California, the cap was increased from a former limit of $362,790, to a new high of $729,750 in certain parts of the state.

What does this mean to mortgage lead buyers? First off, it means that your pool of potential loans just got much larger. It also means that you can exercise some flexibility in your LTV cap, loan amounts and credit grades. Quite simply, it means that a lot of leads which were "no good" yesterday suddenly look very attractive!

Today is a great day to re-visit any borderline borrowers who you were unable to help over the past several months. Thanks to the new FHA programs, you may now be able to help them.

With our March-Mega Lead Madness promotion in full swing, it's also a great time to jump back into working leads in a big way. There is a ton of opportunity out there with the new FHA limits.

Even the Governator agrees! As Gov. Arnold Schwarzenegger said in prepared remarks, the new FHA limits “will help more working Californians achieve the American dream of homeownership through less expensive and more secure loans.”

Homeowners need your help. Now get out there and close more loans!

March Mega-Lead Madness is Back!

It's March! That means it's time for college hoops and BigMortgageLeads's annual March Mega-Lead Madness promotion. During March Mega-Lead Madness new customers can Receive 10 Free Leads with the purchase of 100. There's never been a better time to try our fresh, real-time Internet mortgage leads. Fill out our form and a representative will contact you within 24 hours to set up your account, or call us at 800-873-3066 to get started sooner. Act now, before the shot clock expires on this great deal!