From The Ground Up

Homebuyer Tax Credit Extended

2009-11-07T06:36:00.003-05:00

Congress just passed an extended and expanded tax credit for homebuyers. For more information see http://www.irs.gov/newsroom/article/0,,id=204671,00.html

Please give us a call at Keystone Mortgage for more details on the new legislation.

(865) 909-0211

How to Claim the First-Time Homebuyer Tax Credit

2009-11-07T06:28:00.004-05:00

The quick answer on how to claim the first-time homebuyer tax credit (up to $8,000) is to file IRS Form 5405 with you 2009 tax return or your amended 2008 tax return. If you bought the home in 2009 and want the credit prior to filing you 2009 taxes, you will need to file an amended 2008 return with Form 5405. Once filed, you should expect a check within 6 to 8 weeks.

If you have further questions, please give us a call at (865) 909-0211.

$8,000 Tax Credit for First Time Home Buyers

2009-06-17T20:34:00.003-04:00

Traditionally in a housing market recovery, first time home buyers fuel the engine for growth and today’s market is no different. A first time home buyer is someone who has not had ownership in a home in the last three years. Like most prospective buyers, first time buyers have been very cautious about stepping into today’s market.

Although there are risks associated with the purchase of a home, the Economic Reinvestment and Recovery Act of 2009 has provided an incentive that frankly, is too good to pass up. The $8,000 refundable tax credit is available to first time home buyers making less then $75,000 per year for an individual and $150,000 per couple. This credit does NOT have to be paid back.

In simple terms, the government is going to give you, the first time buyer, $8,000. It’s an amazingly strong incentive and at Keystone Mortgage, we are encouraging first time buyers that have been on the fence to take advantage of a "once in lifetime" opportunity!

Refinancing activity continues...

2009-01-12T15:46:00.003-05:00

We're seeing a consistent stream of home refinancing. Many of our past customers have called to discuss the low interest rates and ask us to calculate their potential savings with the reduced rates. It's always a great feeling when we can save our customers money. We're also seeing an increase in web traffic at www.KeystoneMortgageGroup.net. We've had the opportunity to meet many new customers over the past couple of months and look forward to meeting many more in the near future. Hopefully interest rates will remain at historical lows.

Experts Say... Refinance NOW

2008-12-22T13:43:00.003-05:00

Interest rates are at their lowest level in over 35 years. Many experts are advising homeowners to refinance now. Follow the link below for more...

http://www.cnbc.com/id/28316084

Will rates continue to fall or are we at the bottom now?

Mortgage Rates Are Falling

2008-12-01T10:58:00.003-05:00

Mortgage rates are back to historical lows after recent government action. The Fed pumped approximately $800 Billion into the financial system over the past two weeks and rates quickly decreased to levels not seen since 2003. The government has three main objectives here: 1) show Wall Street that it's serious about helping the slow economy, 2) give people incentive to buy houses, and 3) help out the people with adjustable rates and those who need to refinance.

It looks like this latest move by the Fed has provided some relief. It's hard to say if rates will stay this low. It should be interesting to watch over the next few months.

Deja Vu?

2008-01-17T20:53:00.000-05:00

Is it deja vu or is 2008 shaping up to look extremely similar to 2001? If you'll recall, in 2001, we'd just gone through the bursting of the Tech Bubble and the economy was sliding into recession. The Federal Reserve started lowering interest rates and the number of home refinances soared. Are we going to see this cycle again?

Well, it's anyone's guess but one thing's for sure, interest rates have been steadily falling over the past two months. Most borrowers with good credit can expect to get a 30-year fixed rate in the mid 5%s. And, as the Fed lowers short-term rates, it's my guess that long-term rates will follow (probably not at the rate we saw in '01, however).

Not to mention that the 5 years after '01 were some of the best years on record for home purchases. If history is any indication, we should start seeing an increase in purchases by the end of 2008.

The real estate industry has been turned upside down over the past 12 months and it's been an interesting ride. I look for 2008 to be just as fun as we deal with the potential recession and I'm interested to see how the government handles it this time.

No Place for "Irrational Pessimism"

2007-10-08T12:11:00.000-04:00

No Place for “Irrational Pessimism”
Experts say outlook good for local real estate market

FOR IMMEDATE RELEASE:

Contact: Matt Padgett
President, Keystone Mortgage Group
Phone: 865.909.0211

(Knoxville, TN) The real estate bubble has burst… We’re in for a long hard ride in the real estate market… The credit crunch has destroyed real estate values… These are some of the phrases you’ve heard over the past couple of months. And, they are true for certain pockets of the country, not for East Tennessee.

“It is important for East Tennesseans to understand that real estate is local. We’ve seen a steady appreciation in our area at around 6% for the past 10 years,” said Matt Padgett, President of Knoxville’s Keystone Mortgage Group.

Areas of Florida, California and Nevada have seen huge home inventory levels and are starting to see prices drop. Real estate was appreciating in these areas by 25-50% annually for the past 3 to 5 years. Common sense says this can’t continue and anyone who is thinking rationally knows that. As for comparison, in 2006 the median household income to median home value in California was $65k/$548k compared to the Knoxville area of $49k/$151k.

However, it is true that houses in the Knoxville market are taking longer to sell than in the past.

“This is primarily due to the national media being “irrationally pessimistic”. The national media loves to make news and all of us know that bad news is good business. They will continue to sing the doom-and-gloom song as long as real estate in Florida and California are suffering,” adds Padgett.

When wages are good and jobs are plentiful it’s only a matter of time before the local real estate market starts to gain steam. We have new businesses moving to the area and many people are choosing to retire here. The local job market is so tight that business owners are having trouble finding good talent.

John Sharpe, President of ARG Financial Staffing in Knoxville says, “The job market in this area is the strongest it’s been in years and there’s a strong hiring forecast for the next two quarters”.

For those of us in beautiful East Tennessee, there are deals to be had.

Keystone Mortgage Group is committed to “Providing the BEST mortgage experience”. For more information visit www.KeystoneMortgageGroup.net or call a mortgage professional at 865.909.0211. Now you have a friend in the mortgage business…
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Mortgage Rates...

2007-09-20T18:14:00.000-04:00

I'm sure everyone has now heard the Federal Reserve lowered the Federal Funds Rate by 50 basis points this past Tuesday. This means the Prime Rate now stands at 7.75%. What most people don't realize is that long-term mortgage rates have not changed dramatically. The Prime Rate does affect home equity lines of credit and other consumer debt. However, long-term rates generally change with the 10yr Treasury Note. Since Tuesday, the 10yr note has increased by over 20 basis points.

The great news is the Federal Reserve appears ready to act on any further turmoil in the credit markets. Hopefully their willingness to address these issues will help individuals and businesses feel more comfortable making financial decisions. I don't think this rate cut alone will spur the housing market to rebound but I believe it's a good start.

Mortgage rates are still low compared to historical standards and people are still qualifying for great mortgage programs. I urge anyone looking to purchase a home to talk with a mortgage professional early on in the process to avoid any surprises.

Home foreclosures are on the rise

2007-09-06T14:43:00.000-04:00

See the attached article from Yahoo Finance on the increase in home foreclosures.

http://biz.yahoo.com/ap/070906/late_mortgages.html?.v=10

From what I'm hearing, West Tennessee (especially Memphis) is seeing their fair share of foreclosures. Hopefully this end of the state will not experience the same problems.

Beating the mortgage squeeze

2007-09-06T09:09:00.000-04:00

Beating the mortgage squeeze
Local mortgage group helps homeowners avoid mortgage woes

FOR IMMEDATE RELEASE:
September 5, 2007
Contact: Matt Padgett
President, Keystone Mortgage Group
Phone:
865.909.0211

(Knoxville, TN) Unless you’ve been on a deserted island over the past month, you know the financial markets are experiencing mortgage chaos. Historically, Knoxville fares quite well during turbulent times in the housing industry. However, tightening in the credit markets has resulted in lenders offering fewer loan programs. Mortgage professionals are advising current home owners and potential buyers to contact a local mortgage advisor well before they look to refinance their current mortgage or buy a new home.

“There are an alarming number of foreclosures throughout the country and East Tennessee has seen its fair share”, says Matt Padgett, President of Knoxville’s Keystone Mortgage Group.

As home prices soared across most of the country in the last few years, banks and lending institutions took risks that home prices would continue to increase, and home buyers did the same. Adjustable Rate Mortgages (ARM) were offered to people with less than perfect credit histories and many times these borrowers were buying homes with no money down.
“Keystone recently helped a customer whose ARM adjusted resulting in an increase of $250 in their monthly payment. After putting them in a fixed rate program, they were able to save an additional $75 per month over the $250 increase”, Padgett said.

ARM’s are adjusting and home prices are not increasing at the rates they once were. People are finding they owe more than their home is worth, and the property market has slowed, so selling the house before an ARM adjusts isn't a good - or often even a viable option anymore. People are sitting in houses they can no longer afford and foreclosures are increasing.

“As more homes go into foreclosure, the credit markets continue to tighten up the amount of credit it makes available to lenders, this results in fewer home loan options”, adds Padgett.
People who wish to refinance and get out of their ARM's are finding that they are no longer eligible for more conventional mortgage loans because the lending institutions are clamping down on who gets approved.

All of the foreclosures lead the credit markets to tighten - driving up interest rates, and causing loan programs to disappear which limits who can get a mortgage. It is a true vicious cycle.

There is good news for Knoxville.

“The local housing prices have not been slowing down at the rate seen in much of the country, nor have we experienced the depth of job cuts seen elsewhere,” Padgett adds.

However, mortgage professionals are seeing a general tightening of mortgage loan guidelines for local customers, along with more foreclosures. Padgett cautions homebuyers that larger down payments and higher credit scores could be required to get you into your next home.

The industry went overboard with relaxations of mortgage requirements over the last five years - the reverse tightening of regulations is seen as a necessary correction by many in the industry.

“Prudent steps you take now to secure your finances and prepare for a refinance or home purchase will make the mortgage process smoother and more successful for you in the future.”

Padgett offers the following advice to homebuyers:

ü Get pre-qualified, reach out to a mortgage professional early. It's possible you will need the extra time to work on improving your credit score and save up a down payment.
ü Remember many people who qualified 6-9 months ago for a 100% mortgage are not even close to meeting the guidelines for 100% mortgages today.
ü If you have an adjustable rate mortgage, read your loan documents and talk with a mortgage advisor well before your rate is set to adjust.

Keystone Mortgage Group is committed to “Providing the BEST mortgage experience”. For more information visit http://www.KeystoneMortgageGroup.net/ or call a mortgage professional at 865.909.0211. Now you have a friend in the mortgage business…

Uncertainty continues...

2007-08-21T08:51:00.000-04:00

The mortgage problems we've seen in the sub-prime sector have now spilled over into the prime or conforming market. All of this is due to the tightening of the credit markets and investors lack of interest in mortgage backed securities. Major players in the industry are having trouble finding liquidity to fund new loans which is creating anxiety on Wall Street.

Several major companies have decided to close their doors over the past week and this will continue until investors can accurately assess the risks associated with mortgage backed securities.

I don't think we're seeing the soft landing that many financial analyst were predicting for the housing industry. In the past month, due to lack of liquidity in the market, we've seen many of the major players in the industry frantically trying to stay afloat. If this continues, we could see major fallout which will have a lasting impact on the home financing industry.

Managing Expectations

2007-08-01T08:22:00.000-04:00

Interest rates have increased over the past 6 months and this is catching many potential homebuyers by surprise. As interest rates increase, purchasing power decreases. Why are rates increasing?

Well, if you've been following the mortgage industry you know that several large lenders have filed for bankruptcy. Most lenders take out large lines of credit with international investment companies in order to fund their loans. These investment companies then take these loans and bundle them into mortgage backed bonds and sell them in the open market. When the home owner defaults on these loans the bonds become virtually worthless and the investment company takes a loss. So, it only makes sense that these investment companies are becoming a little "gun shy" when extending lines of credit to lenders. With less money available to the lenders and the investment companies expecting a higher return on their money to cover potential losses the lenders are having to increase rates in order to satisfy their investors (investment companies).

What does all of this mean for the homebuyer? It's simple, you're not going to get an interest rate as low as you could 6 months ago. As long as the problems in the industry continue, rates will stay at an elevated level. This translates into less home for the same monthly payment. We've all been spoiled over the past 5 years with historically low interest rates and unusually high home appreciation.

Thankfully, there is good news! Interest rates are still far lower than they were in the 1980's and 1990's. People were buying homes then and they still are now.

The Sub-Prime Mess Continues...

2007-07-18T13:11:00.000-04:00

All of the problems we've seen in subprime mortgages over the past 9 months are finally starting to show-up in the overall economy. Bear Stearns recently reported that two of their hedge funds are essentially worthless due to bad bets on subprime loans. Ben Bernanke said today during his congressional briefing that economic growth will be slower than expected due to the subprime fiasco. Over the past 6-months neither Bernanke or former Fed Chairman Greenspan thought the subprime problems would filter into the overall economy.

We hope to see a bottom to the housing market during the final two quarter of 2007. In order for this to happen, the mortgage lenders must first get over the shell-shock of the past 6-months. Most lenders were late to see the problems and will probably be late to see the opportunities that now exist.

Mortgage Rates Continue to Rise...

2007-06-14T11:52:00.000-04:00

We're now seeing interest rates hit their 11-month high. Where will they go from here? Anybody's guess. It's a tough housing environment with all of the Sub-Prime mess, high level of home inventory and now rising interest rates. Check out the link below for an article published on Yahoo Finance today.

http://biz.yahoo.com/ap/070614/mortgage_rates.html?.v=1

Interest Rates at Highest Level in 10-Months

2007-06-05T08:51:00.001-04:00

Mortgage interest rates have increased steadily over the past 3-months as the 10-Year Treasury Note has increased. The Federal Reserve Chairman Ben Bernanke spoke via tele-conference today and said the economy should bounce back from its first quarter lull. This statement doesn't give those looking for a short-term cut in the Federal Funds Rate much hope.

See Bernanke's comments: http://biz.yahoo.com/ap/070605/bernanke.html?.v=14

On The Right Path

2007-05-16T10:53:00.000-04:00

The past several weeks have been relatively quiet on the housing front. The major market news has been related to several large mergers and acquisitions. Mortgage interest rates have increased slightly as the yield on the 10-year Treasury Note has increased.

Today, the April numbers on applications for housing permits was released. As I discussed in one of my March posts, this is a good indicator of builder confidence (or lack of). Applications for these permits decreased by their largest amount in 17 years.

You may find the title to this post interesting, "On The Right Path". I believe the housing market is now on the path to recovery. Why? It's as simple as supply and demand. If job growth stays steady and wages increase at their current rate, a lower supply of houses will spur a recovery in home prices. I'm not saying we're in for a quick recovery. However, I think we will start seeing more positive housing numbers by late 2007. As the saying goes, "once you hit bottom there's only one way to go, up".

Helpful Hints for Homebuyers

2007-04-17T09:07:00.000-04:00

Looking to purchase a home? Here are some tips that will ensure you have a great buying experience.

1) Get pre-qualified before searching for a home. This way you will know how much of a home you can afford.

2) Make all debt payments on-time (home, car, credit cards, etc).

3) Keep credit card balances below half the maximum limit.

4) Pay off all small bills and/or collection accounts.

5) Lenders like to see borrowers with some cash reserves in the bank. Start saving now!

6) Don’t buy a new car before buying a house. The car payment will raise your debt-to-income ratio and may prevent you from qualifying for a home mortgage.

7) Most lenders like to see two (2) years of consistent job history. If you’re thinking about changing jobs, wait until after you’ve purchased a home.

8) Deposit ALL of your paychecks into your checking account. If you need cash, take it out in a separate transaction. Lenders will use your bank statements to see how much money you have coming in each month.

9) Keep all records! This includes bank statements, divorce papers, bankruptcy discharge papers, etc.

10) Call Keystone at 865.909.0211 for a FREE credit analysis and pre-qualification. Or, visit us online at http://www.KeystoneMortgageGroup.net/ and complete a 60-second quick application.

Housing Market....Hold on...

2007-04-17T08:13:00.000-04:00

By now you've heard the news about the troubled housing market. The main problems are increasing interest rates and decreasing home prices. The combination of these two factors typically result in an increase in foreclosures. Check out the attached article as I think it does a pretty good job explaining the current situation.

http://biz.yahoo.com/brn/070416/21069.html?.v=1&.pf=loans

Based on this article and opinions from many analysts, we're still at the front end of what may turn out to be a long and difficult road in the real estate market.

What People Want

2007-04-09T13:01:00.000-04:00

What I'm about to say may sound like common sense. "People want to be treated fairly and told the truth". Doesn't that sound simple?

Unfortunately, some people in the mortgage industry forgot to apply these basic principles of good business. All of the problems we're currently seeing in the industry could have been avoided if the customers' best interests had been considered.

At Keystone Mortgage Group, we look at things a little differently than most. We believe customer service means being honest, treating each customer fairly, and doing our best to keep our customers informed. So far this has worked beautifully!

Mixed Signals in Housing

2007-03-20T14:35:00.000-04:00

New home construction numbers were released today by the Commerce Department. February housing starts improved over the steep decline in January. However, just like we've seen over the past few months, there were mixed signals. Building permits which are an indicator of builder confidence declined. Permits have now declined 12 out of the past 13 months.

What does all this mean? There are a ton of houses currently on the market. The theory of supply and demand dictates that an over supply of houses will push prices down therefore cutting into the profit margins of the builders. With the shake-up we've seen in sub-prime lending, builders are afraid the demand will continue to decrease causing an even greater supply of houses on the market.

Hopefully a decrease in home construction will allow for the houses currently on the market to sell and decrease the supply of homes available. There will always be people entering the housing market and as long as there are not too many homes being built then supply and demand should stay in balance.

Sub-Prime Mortgage Industry Implodes

2007-03-06T18:24:00.000-05:00

Wow! The past two weeks in the mortgage industry have been wild. Sub-prime lenders are scared to death. Several more companies have gone out of business. All of the others are quickly tightening their guidelines. Stock prices have plummeted and employees are scrambling.

I honestly believe most people saw this coming. We certainly did.

What's in store for the mortgage industry going forward?
1) more sub-prime lenders will go under
2) mortgage brokers will begin closing their doors
3) there will be record numbers of foreclosures
4) federal and state regulators will begin rigorous investigations
5) fewer borrowers will qualify for home financing
6) mortgage insurance premiums will increase
7) ethical and compliant mortgage companies will have more business than ever

This will be a year in the mortgage industry that is talked about for some time. Changes were needed and I'm glad to see them being made. The real winners in this shake-up are the consumers who've long been treated unfairly.

Subprime lenders are in trouble

2007-02-13T15:36:00.000-05:00

I wrote about the state of subprime lending during the last few days of 2006. As expected, many subprime lenders have filed bankruptcy or closed operations during the first 45 days of 2007. Most of these lenders are having to buy back loans from the investors who purchased the loans. The main reason for the buybacks are first payment defaults.

In my opinion, we will continue to see a shakeout on the subprime side of this business. I don't see this as anything other than a correction in the market. Lenders were providing 100% financing on loans that shouldn't have been made.

The real estate market over the past 5 years was much like the dot com market of the late 1990's when companies had huge market values without ever producing a profit. Lenders have been providing loans to borrowers with bad credit just hoping that home prices would continue rising at double digit rates. I believe Alan Greenspan referred to this type of thinking as "irrational exuberance".

Hopefully this market correction will force the bad lenders out of the business and make the strong lenders even stronger. The stock market has bounced back from the correction of the late 1990's and now investors require companies to make profits. Maybe the same will happen with the real estate market.

Interest rates are rising...

2007-01-30T12:21:00.000-05:00

It's amazing how fast interest rates are increasing. Less than two months ago, rates were one-quarter to one-half point (percentage point) lower than they are today. The yield on the ten year treasury note has increased from around 4.5% to 4.9%.

I would guess the main reason for the increase is the uncertainty surrounding inflation. In November of last year, many analysts were predicting the Federal Reserve Board would begin lowering the Federal Funds Rate in early 2007 (the rate at which banks lend to other banks). Based on current economic news it doesn't appear this rate will decrease anytime soon.

The Federal Reserve Board has a scheduled meeting the last two days of January and hopefully some clear indicators on the economy and inflation will come from their statements. However, it's often hard to interpret what they have to say.

First Time Home Buyer Tips

2007-01-24T16:45:00.000-05:00

As I 've discussed in a recent posting, I believe this will be a great year for first time homebuyers. With so many houses on the market I think buyers can find great deals. Here are a couple of tips:

1) Talk with a loan officer from a local mortgage company or bank and get pre-qualified before searching for a home. The home search process is much more efficient when you know what you can afford.

2) Find a trusted realtor who will work on your behalf. This is a free service to buyers and can be extremely beneficial. We work with several realtor that we trust and who we refer customers to.

Purchasing a home is the largest financial decision you can make. Work with people you trust and who have a reputation of providing great service.

Tips to Improve Your Credit Score

2007-01-15T12:45:00.000-05:00

Everyday we talk with customers who don't qualify for a mortgage due to their credit scores. Here is an article that gives some great tips on how to improve those scores.

http://articles.moneycentral.msn.com/Banking/YourCreditRating/7FastFixesForYourCreditScore.aspx

Things you should know before looking to refinance your mortgage

2007-01-09T19:02:00.000-05:00

We talk with many homeowners who need to refinance their existing mortgage due to an adjusting interest rate (also known as an Adjustable Rate Mortgage or ARM). More often than not these customers need to act quickly as their payments are about to increase substantially due to the higher rate.

Many times these customers are taken advantage of by "questionable" mortgage brokers who know the borrower must act quickly. Before talking with a mortgage professional, here are several things you should know.

1) Your credit score
2) The current balance of your original mortgage
3) The expiration date of any prepayment penalty

Tell the broker your credit score (you can get this through www.annualcreditreport.com ) and ask them to run a loan analysis based on the score you give them (you can even fax the broker your report to look at). This cuts down on the number of times your credit is pulled if you're "shopping" with several different brokers or lenders. By having your credit score it shows that you're on top of your situation and you're much less likely to be taken advantage of.

If you know the current balance of your existing mortgage it will help the broker determine the best type of loan for you. It will give them a better idea of the loan-to-value (LTV) for the new mortgage.

Not all loans have a prepayment penalty. Typically, sub-prime loans (loans for borrowers with less than perfect credit) have a prepayment penalty ranging from 1-5 years. This penalty must be paid when the original loan is paid off.

Most adjustable rates mortgages (ARMs) will not adjust until the penalty expires. However, there are several lenders that have funded ARMs where the prepayment penalty doesn't expire until years after the first adjustment. I don't believe these lenders have the customer's best interest in mind when making these type of loans and I believe this practice should be stopped.

By knowing if your loan has a prepayment penalty, you and a reputable broker can determine the best course of action.

Three things lenders look at when qualifying you for a mortgage

2007-01-05T09:15:00.000-05:00

Qualifying for a home purchase….

At Keystone, we take applications everyday from people looking to purchase a home. There are several major factors that go into a lender's decision to lend money. They are:

1. Credit history and credit score
2. Job history or other income
3. Residential history

Although this list is not all inclusive, these are the three most important items looked at by lenders.

Researching a mortgage online

2007-01-02T16:42:00.000-05:00

I read a statistic the other day that nearly 75% of consumers research products and services online before making a purchase. That started me thinking about researching mortgages online.

It’s a great way to ‘shop smart’ but I recommend you keep a couple things in mind as you go cyber sleuthing for a loan.

1. Know your credit score. Your credit score and credit history will determine if you qualify as a conforming borrower or sub-prime borrower. Sub-prime borrowers typically have less than perfect credit and usually don't qualify for interest rates as low as conforming borrowers. Most of the rate quotes you will find online are for conforming borrowers.

2. If a deal sounds too good to be true, it probably is. The old saying holds true for the mortgage industry – the industry has changed over the past 20 years and there are all types of loan programs out there. Many allow a borrower to make small monthly payments during the first part of their loan term but then you face escalating payments as time goes on.

3. Interest rates change daily. If you conduct your research over a period of weeks or months you’ll notice that rates will change. Mortgage interest rates are closely tied to changes in the 10-Year Treasury Bond which changes daily based on market news.

Online research will help you become a more informed buyer regardless of the product. The key is to understand the options available to you. It’s always a good idea to speak with a loan officer from a local company if you have specific questions regarding your situation.

Thoughts on the mortgage industry for 2007

2006-12-29T07:50:00.000-05:00

Over the past two weeks mortgage rates have increased steadily. Is this a trend that will continue in 2007? It's really anyone's guess. Mortgage rates are tied closely to the 10-year treasury bond which changes daily based on market news. Many economists believe rates will increase throughout the year.

I think most of the mortgage news we'll see in 2007 will revolve around sub-prime financing (borrowers with less than perfect credit). The default rate on sub-prime loans has increased to record levels and several sub-prime lenders have gone out of business during the final months of 2006.

Based on what we're seeing at Keystone, sub-prime lender are tightening their guildelines which make it more difficult for sub-prime borrowers to qualify for a mortgage. I expect this tightening will become more wide spread as we go through 2007.

With so many adjustable rate mortgages (ARMs) adjusting in 2007, I expect the rate of default on both conforming and sub-prime loans will increase since many of these borrowers will not have enough equity in their homes to refinance to fixed rates.

On a more positive note, I believe 2007 will be the year of the "first time homebuyer". Although rates are above their lowest levels, they are still historicaly low and with so many houses currently on the market I believe buyers will be able to negotiate great deals. It's a great time for first-timers to get on the property ladder.

A Little Background

2006-12-28T20:58:00.000-05:00

I’ve always wanted to build a world-class company that focuses on helping people. My first job was serving people in my father’s restaurant in Knoxville. I remember serving biscuits when I was barely able to see over the counter. My family taught me the importance of hard work and serving people.

I also learned the importance of working hard towards a goal. I went on to play college basketball and juggled the demands of practice while earning an MBA. I focused on becoming a CPA and succeeded, spending 5 years working at PricewaterhouseCoopers in Atlanta. I traveled the country consulting with business owners and leaders. I spent time with top executives and gained an understanding of business from their perspective. I quickly realized the difference between a good company and a great company.

I noticed the great leaders had a passion for their businesses and built an entrepreneurial atmosphere their employees embraced. They also had an unbelievable desire to provide superior customer service. They accomplished this while still being humble but having total confidence in their ability to lead.

After 5 years, I decided it was time to come home and put my passion and skills to work for the people of East Tennessee. I began working for Ruby Tuesday in Maryville, TN, in the Investor Relations and Planning departments. I had the honor to learn from top management, including Sandy Beall, Chairman and CEO of Ruby Tuesday. He has an amazing business mind and his accomplishments speak for themselves. I could quickly see that he had all the traits of a great business leader.

After two years at Ruby Tuesday I started Keystone Mortgage Group.

We’re doing things at Keystone Mortgage Group to make a difference. We’re building a world-class mortgage company and we’re focusing on one main thing – the best customer service in the mortgage industry.

While we’re growing to be quite a force in the mortgage industry, our core principles will not change. We focus on providing superior customer service and being the most compliant mortgage company in the industry.

So now you know why I say, "Now you have a friend in the mortgage business."