“A man who dares to waste one hour of life has not discovered the value of life.”

– Charles Darwin, British Naturalist

Strong demand and a tight supply is making for a competitive rental market in San Francisco. And experts say it will be January before we know the full impact of the mortgage crisis on the rental market here. Stacey Delo reports.

Lawrence J. White, professor of economics at NYU Stern School of Business, analyzes the newest housing data and drop in new home sales. Paul Lin reports.

Recent economic studies paint an alarming picture for American consumers.

National Financial Awareness Network President John Janney expressed concerns over recent studies showing that minorities, women and low income workers are paying the price of credit card deregulation and that the student loan market is riddled with questionable relationships between lenders and school financial aid personnel.

An August 1 report published by research center Demos exposes the negative impact of deregulation on consumers. The report shows that even though the cost of funds decreased, banks continued to increase the interest and fees they charge consumers. For example, the highest APR rose from 11.88 percent in 1990 to 41 percent in 2004.

Countrywide Savings Bank Pulls in $50 Million of Deposits a Day, According to Wall Street Journal; Countrywide COO Sambol Tells WSJ that Deposits Will Fund Mortgage Loans; Moody’s Reduced Servicing Rating on Countrywide Financial; CEO Mozilo Lined Up $12 Billion in Financing Earlier This Month; Portales Partners’ Peabody Says “Countrywide Will Be Survivor”

Interview with CEO Larry Goldstone: July Events Undermined Mortgage Investor Confidence; Mortgage Security Pullback Affected TMA’s Balance Sheet; Investors Avoiding CDOs, Asset-Backed Securities, Thornburg Has to Undertake Series of Asset Sales; Markets Have Stabilized on Prime Side of Business; Still Concerns in Subprime Will See Continued Problems

If successful, the FHA Reform Act, FHA Modernization and FHASecure could provide much needed relief to many “families with strong credit histories who had been making timely mortgage payments before their loans reset but are now in default to qualify for refinancing”.

Unfortunately, after further review, it appears the mortgage bond market may not agree with the FHA security plan behind it.

In a FHA press release, FHA states “the Government National Mortgage Association (Ginnie Mae), which has the full faith and credit of the U.S. government. This guarantee makes Ginnie Mae’s mortgage backed securities the safest on the market and helps to channel greater capital into the housing market, benefiting U.S. homeowners”.

Many Wall Street insiders have expressed ‘no interest in taking over another banks problems’. This perceived lack of interest has some saying that instead of the 250,000 families it was suppose to assist - we may now be looking at assisting only 25% of the original 250,000 or 65,000 families.

Only Wall Street and time will tell us the real truth about the effectiveness of these proposed plans.

The currently volatile mortgage market is in for a permanent change with the proposed FHA Reform act. If passed, this bill will create greater protection for American homeowners by providing alternatives to the sub prime loans and other undesirable financing options. Importantly, undeserved markets, first time homebuyers, and those with a credit history tarnished by market fluctuations, will now become eligible for manageable and favorable financing options that are tailored to their personal needs.

The National Association of Mortgage Processors (NAMP) constantly looks toward positive change in the mortgage market, and are pleased to focus on the recently approved FHA Reform, or FHA Modernization. Approved on May 3, 2007 by the U.S. House Financial Services Committee, the new bill now awaits a vote by the full House of Representatives. Adoption of this bill provides exciting opportunity for mortgage professionals to safeguard borrowers from high interest rates and excessive fees, as well as open the doors open for Adjustable rate mortgages. The FHA Reform may become a competitive alternative in the market, moving to replace sub prime and other similar mortgage products that were less solid and desirable financing options for homeownership.

As you are aware, the liquidity crisis in the mortgage lending industry has adversely impacted nearly every major mortgage originator, mortgage investor, and warehouse lender. SCME is no exception. We have spent a great deal of time analyzing the market and SCME’s role in the future of mortgage banking. There is every indication that the liquidity crisis will continue for the foreseeable future, causing significant challenges to our organization.

We would like you to know that SCME has valued our relationships over the past 24 years, resulting in strong partnerships and lasting friendships. Thus, our decision has not been made lightly, nor has it come easily. Effective the close of business today, September 28th, 2007, SCME will no longer accept wholesale business. Any loan that is not funded as of today will be returned to our customers.

This has been a very difficult business decision to make. We understand the impact this decision will be for our valued customers as well as our loyal and appreciated employees. Over the past 24 years, we have met and have had the honor of working with some of the best people in this industry. We pray that each of you will find your way through these tumultuous times. Thank you for your business and for your understanding.

Good luck and God Bless . . . .

“Nobody talks of entrepreneurship as survival, but that’s exactly what it is and what nurtures creative thinking.”

– Anita Roddick, Entrepreneur and Activist

Today’s Current Mortgage Interest Rates September 28 2007. Fixed mortgage rates are UP from Thursday September 27 2007, while adjustable mortgage rates are DOWN - Today’s 30 Year, 15 Year Fixed are UP while as the 5/1, the 3/1 ARM Mortgage Interest Rates are DOWN. The 10 year bond is DOWN slightly to 4.54%.