How would you like to process and underwrite loans in Israel ? Their Minister of Development recently said that, “…low mortgage rates will help residents of the Qassam-ridden region afford to fortify their own homes in lieu of government funding.” In lieu of sufficient government funding toward the expansion of the fortification works, the Minister of Development “suggested offering the residents of the Qassam–ridden region low mortgage rates so they will be able to afford to fortify their own homes in light of the renewed rocket attacks on Israel ’s southern region.” The proposal came after some objected to a request for an additional $132 million toward the outright construction of secure rooms in some 8,000 Gaza-vicinity housing units. Nice to live in the US …

Not wanting to be the last on the block to do this, Citigroup, who is known to service a loan or two, plans to stem foreclosures as the firm modifies about $20 billion in mortgages. Citigroup will “reach out” (there’s that mortgage term) to 500,000 homeowners in the next six months who may be at risk of falling behind on mortgage payments. JPMorgan Chase and Bank of America/Countrywide are doing something similar.

One suggestion about how mortgage products can help the market, and loan originators, can be found at The Denver Post.  The plan, put forth by the president of a Colorado mortgage banker, is an attempt to put homeowners on loan terms that are easier and more affordable, and allows 2nd mortgages.  To read the entire proposal click here.

Wells Fargo ’s wholesale group proclaimed that “to protect borrowers and make the mortgage lending business a safe environment for all parties involved. In our ongoing efforts to aggressively mitigate fraud, a 4506-T will be processed for all loan files, effective immediately.”

Hopefully you took a look at yesterday’s commentary, which had several attachments. To sum it up, the conforming loan limit will remain $417,000 for 2009 for most areas in the U.S. but specified higher limits in certain cities and counties. The conforming loan limit is the maximum size of loans that Fannie Mae and Freddie Mac can purchase in 2009, and investors will follow.  The national loan limit is set based on changes in average home prices over the previous year, but cannot decline from year to year, so limits for two-, three-, and four-unit properties in 2009 will remain at 2008 levels as well: $533,850, $645,300, and $801,950 respectively, for homes in the continental U.S. Following the provisions of HERA, FHFA has set loan limits for “high-cost” areas in 2009 equal to 115% of local median house prices and cannot exceed 150% of the standard limit, which is $625,500 for one-unit homes in the continental U.S. They’re not accepting appeals to the loan limits, but rather to the average price estimates. And one person quipped, “They may accept them, but they sure don’t read them.”

Due to market circumstances, Franklin American Mortgage Company has discontinued its Conventional Conforming Fixed Rate Interest-Only Products effective today, November 10, 2008.

In spite of all of the money that they have received, banks seem to be hoarding a good percentage of it. Holding it for future losses? Many believe the stimulus packages the government is announcing will not be effective because you can’t force consumers to spend, just like you can’t force banks to lend. Even the lower rates, so far, are not helping in the short-term. The overall economy is feeling the pinch as it is obvious that is was impossible to contain to just a few sectors.

Many experts believe that it will likely be another 2-3 years of tough sledding, which puts us into 2010. Typically this would lead to lower rates, but the US has increased its current account and trade deficits by record amounts, requiring us to raise large amounts of capital through the issuance of debt, like this week’s auction. And when one issues debt, whether it is a corporation or a government, buyers of this debt must be found, and as the rest of the world slows down with us this is not occurring. Thus the relatively high rates, given the state of the economy.

German-owned shipper DHL will not only close its 300-employee West Coast hub in Riverside County , but will exit the US domestic market entirely and eliminate 9,500 jobs nationwide. Deutsche Post, the parent of DHL, blamed the move on heavy competition from United Parcel Service Inc. and FedEx Corp. as well as severe financial losses stemming from the weak U.S. economy. It follows 5,400 U.S. job cuts the company had made earlier this year and will leave DHL with 3,000 to 4,000 workers in its U.S. express business

This guy was lonely and so he decided life would be more fun if he had a pet. So he went to the pet store and told the owner that he wanted to buy an unusual pet. After some discussion he finally bought a centipede, (100 leg bug), which came in a little white box to use for his house.

He took the box home, found a good location for the box, and decided he would start off by taking his new pet to the bar for a drink. So he asked the centipede in the box, “Would you like to go to Frank’s place with me and have a beer?”

But there was no answer from his new Pet. This bothered him a bit, but he waited a few minutes and then asked him again, “How about going to the bar and having a drink with me?”

But again there was no answer from his new friend and pet. So he waited a few minutes more, thinking about the situation. He decided to ask him one more time.

This time putting his face up against the centipede’s house and shouting, “Hey, in there! Would you like to go to Frank’s place and have a drink with me?”

A little voice came out of the box: “I heard you the first time! I’m putting on my —— shoes!”

Rob