Another Great Article by Rick Soukoulis. 

FNMA Article #2

Do you remember reading Tale of Two Cities back in high school? About the only thing I
remember from it was the opening line: It was the best of times, it was the worst of time…

When I see that opening line occasionally, it sometimes seems that the book was
probably describing the world of real estate and mortgage finance.  Doesn’t it seem that
if you’re in real estate that things are never just nice and steady?

Doesn’t it always seems like boom or bust, like there are no listings or too many of
them, no buyers or too many?

Over the years I've had real estate and Loan Offices alike tell me how they'd love to
have a job that wasn't so volatile and where things were more predictable.

I can understand that but I also know that volatility makes possible unlimited financial
opportunities. All those jobs that are steady and predictable probably don’t pay very
well.

So what’s all this have to do with today’s market?

Well, it occurs to me that if we’re in a business with lots of volatility, we have to take
advantage of the good periods, and need to make hay while the sun is shining and the
government stimulate package just brought out the sun.

A perfect example is the new FNMA jumbo loan limit, the fact that buyers can get
financing FNMA rates on loans up to $729,750. 

First, this is unbelievably great news for people here in the bay area. It means that the
payments on these jumbo loans are going to be lower and that borrowers can more
easily qualify.  Much more easily.

Second, and here’s the part about making hay while the sun is shining, these limits are
just temporary.  They expire on December 31 of this year!

The message is clear.  Things couldn't be better, but they will come to an end – or at
least change dramatically – by the end of the year.  It’s quite possible that it will be hard
to get jumbo loans again, and it more than probable that it will be harder to qualify
buyers at that time.

A few short months ago it was hard to get a jumbo loan, and it was harder to qualify
deals.  There was lots of creative financing, and boy, some of these deals sure did get
complicated.

It’s a vanilla world again.  Low rates and good financing, there’s no need to spend
hours looking for a loan, and we’re back to the environment where a good loan office
will get a borrower exactly what he wants.

This is a perfect environment for Intero Mortgage and Intero Realtors to work together.

Rick Soukoulis
Chairman and CEO
Intero Mortgage

And both should be out closing as many deals as possible right now, before those  loan
limits drop back again in December.