Henry “Hank” Paulson announced they are using Tarp money to target consumer loans (credit cards, car loans, Home Loans) immediately.  The Name of the entity “TALF” – Term Asset Back Loan Facility. Six Hundred Billion will be allocated to Fannie Mae, Freddie Mac, and Ginnie Mae. The auto, student, and small business loan markets will receive $200 Billion to help thaw the markets. This announcement and injection has given the FNMA 30-YR 6% a HUGE boost this morning pushing it up over 115pb this will greatly decrease the yield.  Lenders Pricing will be significantly lower than close of business yesterday.

If you are working with a broker, DO NOT yank the loan and start shopping! We have the ability to obtain float downs on massive market moves such as today’s.

If you are working with a Bank they normally do not have the flexibility to float down.

Feel Free to contact me for current day pricing.

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