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!