To all my friends in the mortgage industry...

[kks01r1]

VERY IMPORTANT GUIDELINE CHANGES EFFECTIVE 8/8/07

· All borrowers must have one blue eye and one brown eye to qualify
· LTV > 65% SIVA required minimum credit score of 849
· For all LTV > 65%, 360 months of payment reserves are now required
· Borrowers must have no previous bankruptcies in their family history going back 3 generations
· A minimum of 25 years self employment history now required for all NIV programs (at same location)
· Minimum credit score for subprime loans raised to 720
· All non-arms length transaction borrowers (mortgage, real estate professionals, family members) will be required to provide full documentation, subject to criminal background checks, wire tapping, strip-searches, and a minimum of 12 hours of interrogation by the department of homeland security

Please note that these changes will go into effect within the next 5 minutes. So please lock your existing loan immediately. All existing loans in your pipeline must fund by noon tomorrow.

We apologize for the inconvenience. We realize these are tough times in the mortgage industry for all of us. Be assured that we have a commitment to remaining strong and weathering out the storm. We ask for your understanding and cooperation.

[dapper]

· All borrowers must have one blue eye and one brown eye to qualify

So we only have to be 'half-full' of crap?

[Clovis]

Hahaha. It's getting that way... We've had 8 or so now "sub prime guideline changes" and just had the first prime changes last week. Its getting rough!

[pilot]

No kidding. I've a bud in the biz and he was set to do a close and the funder went belly up the afternoon before. Go explain that one to your client! It is getting real hard out there.

Pay no attention to the man behind the curtain. All is well, nothing to see here--move along. Economy is great, low unemployment, now get back to your second (night) job as a janitor. And on it goes.

[Clovis]

Working for Countrywide we fund our own loans but the bank had to access a combination of emergancy credit lines totalling $11.5B from 40 different banks to maintain its funding operations =/

We're now on Sub Prime guideline change #12 and Prime Guideline change #3. As I've told my borrowers who are on the fence and whatnot we've had 6 guideline changes just in August alone, or one every 4 days. These guideline changes are nessisary however if we want to remain in business all though I was sad to see 100% financing go away as I've done quite a few 80/20s for people who's home has depreciated and/or they have a neg am ARM and we're taking them to a traditional 30 year fixed. Oh well, I helped as many as I could while we had it.

Its times like this that I'm thankful Countrywide provides a salary in addition to our commission but even in these tough times I'm still funding 6 loans for the month of August and 6 to 9 loans in September. We're seeing a lot of our competition (namely the brokers) disappear.

If we can make it till 2009 when the housing market is expected to turn around we'll be in an even stronger position.