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Solid, ultra low interest rate jumbo mortgage loans are being actively funded by remembering the lending philosophy we relied on before the risk could be passed onto some unsuspecting pension fund via a CDO created by a trader at a Wall St Bank. With trillions in mortgage loan losses across the nation, major changes were needed. Regulatory reform passed Congress last week, but it wasn’t hard for the jumbo mortgage market to fix our own problems.

Normalcy has returned. The jumbo loan environment has settled into a prove it, we double verify it, and we fund it environment for well qualified borrowers. The recent national statistics show about 14% loans with a principal balance of 1m+ are at least 60 days late. This is up sharply in the last six months from the 9.78% figure that we ended 2009. Hopefully these default figures will flatten out and fall as the better jumbo loans of 09-10 perform much better than the loans closed in 04-08.

Against this backdrop jumbo loans are being funded only on a portfolio basis (Wall ST jumbo loan packaging is dead) to solid clients under the philosophy that the borrower and the amount of equity in the property should have an ample margin for the known/unknown risks a borrower/lender may face down the road. With regulators, taxpayers, shareholders and all stakeholders demanding sound lending the industry has delivered. I believe this only benefits the luxury market although it pushes out the marginal borrower and may result in some property value declines as the available buyers have thinned out a bit.

Sound lending has returned and borrowers are being ‘rewarded’ for their financial strength and prudence. Remember it’s a ‘prove it’ to us world now.

First and foremost, lenders are pulling copies of your tax returns directly from Uncle Sam. The idea here is to make sure that you haven't altered the copy of your last two years' tax returns that you provided when you signed your loan application. Lenders want to know if you might have exaggerated how much you earned.

Lenders also are going to great lengths to verify employment and liquid assets. We are seeking confirmation in writing from your H.R. department about what you earn, your position and how long you've worked there.


It's the same for your bank or brokerage accounts. Rather than being satisfied solely with the copies of the statements you provided, lenders are going directly to your financial services company to secure another set of those statements to make sure the numbers line up or that you just lost 200k betting that the latest iPhone signal problem would crush Apple’s stock price.

Lenders are no longer taking the appraiser's word for how much the property you want to buy or refinance is worth, either. Now, we are employing automated valuation models as well as an additional appraisal from a separate vendor to be certain the value estimate is on the money. This is especially true in highly distress markets or for very unique custom homes. After all, the bank is ‘buying’ the home and the borrower is signing to pay it back over 15-30 years.

Next in the line of close scrutiny is your credit score, but not just the score pulled when you applied for the loan. Now, our industry is pulling a second score shortly before closing to make sure that you haven't taken out a luxury car lease/loan, bought a houseful of furniture on credit or done something else that might change your ability to make your house payments.

Having passed all these double checks, a well qualified client with 20%+ equity, a 740 FICO or better, borrowing $1m on a primary residence could lock in the following jumbo loan rates in the majority of states:

5/1 ARM 3.625%
7/1 ARM 4.50%
10/1 ARM 4.90%
15Y Fixed 4.50%
30Y Fixed 5.125%

With a bit more equity and a higher FICO score these jumbo loan rates are even lower. I think people need to strongly consider locking in the lowest fixed jumbo mortgage rates we have ever seen. Most client’s refinancing are saving 1-2 thousand dollars a month because they are dropping their interest rates over 1%. The majority of jumbo mortgage loans funded over the last quarter were 30Y fixed. Maybe running with the herd is right once in awhile. The latest chart should really demonstrate how much money is on sale for SOLID borrowers.

And above all please get a jumbo loan that makes sense for your short and long term financial plans. As always, have a prosperous day.

Ten's of millions of luxury homeowners have adjusted from an ARM with a fixed rate period into a fully adjustable jumbo loan. Following the large drop in LIBOR rates since 2007, floating with the 6-month or 1 year LIBOR index has been an excellent risk homeowners took the last few years. Even if they were not aware of the relationship of their mortgage payment and the workings of the global short-term money market.

In the last few weeks it has become crystal clear that Europe is having a massive government debt crisis which started in Greece and is spreading throughout the European Union. This crisis is causing major moves in all the various LIBOR indexes and the action in Europe will translate into higher mortgage payments in the US whenever someone reaches their semi-annual adjustment period.


The underlying rate trend in these indexes in the last few weeks is a steady march higher as governments, banks and corporations are going to market to borrow hundred of billions of Euros. This is pushing LIBOR rates up for the 6- month and 1 year about .25% within the last two weeks. All the LIBOR indexes are at the highest levels in over a year despite massive liquidity being pumped into the system by the EU Central Bank and the FED.

Now we aren’t in the danger zone yet for US based jumbo mortgage loans that are floating considering that the average margin to the 1Y LIBOR is 2.50% arriving at a current floating rate of 3.25%. But a plausible scenario of a consistent flow of gov/corp borrowers, an improving global economy over the next year could push LIBOR rates consistently higher. Any real growth in the economy will be meet with higher interest rates and this will be reflected on the hundreds of billions of dollars worth of jumbo loan mortgages that are sitting with rates of about 3.25-4% now.

We think homeowners that are floating against the LIBOR indexes without a plan to sell soon or get another ARM this year or a fixed jumbo mortgage are gambling with their mortgage payment. Not having a solid plan is a very dangerous proposition given the huge debt crisis that continues to unfold around the world. I am a firm believer in having full coverage auto insurance given the cost of coverage vs the financial risk of an accident. Millions of American’s are just waiting for a financial accident when they get their new rate increase notice. Most ARMs adjust every six months with a 30-60 day notice of the new interest rate and payment. The jumbo loan trend has only been down for the last few years as the world almost fell into a financial black hole during the 07-08 meltdown.


I think with the economic recovery gaining speed that it is only prudent to lock in another ARM or a fixed jumbo mortgage while we are at the lowest rates in history. Avoiding an interest rate increase that for millions would come as a nasty surprise. If you need to refinance your jumbo mortgage within the next few years it’s prudent to explore your jumbo loan options now. As always, have a prosperous day.

The enormous social pressure and the expectations that come with it lead to misunderstandings and confusion. Here's my advice to someone in the market:

• In an era where house prices rise reliably (which was 1963 to 2007), it was almost impossible to overpay for a house. It was an efficient market, and rising prices cover many mistakes. Investing in houses in the USA was a no-brainer. More leverage and more at stake just paid off more in the end. In 2006 many subprime and ALT-A lenders would allow nothing down up to a 1m jumbo loan with a 720 FICO score. Needless to say these loans defaulted at a 40%+ rate as people walked away when values dropped. The old mantra of buying as much house as possible with as little down payment as you could doesn’t work if values fall in the future.
• A house is not just an investment, it's a place to live. This is the only significant financial investment that has two functions.
• The psychology of down markets is irrational. Rising house prices might be efficient (many bidders for a single item lead to higher prices), but when there aren't so many bidders, irrational sellers (see #2) don't lower their prices accordingly. So, inventories get longer and it's easy for the prospective buyer to think that a certain price is the 'right' price because so many people are offering houses at that price. Just because someone offers a price, though, doesn't mean it's fair in a given market.
• Along the same lines, anchoring has a huge impact on housing prices. If someone offers a house for $1.7m and you think it's worth $1.2m, you don't offer that. No, of course not. The price is a mental and emotional anchor, and you're likely to offer far more because you are falling in love with a view, a certain floor plan or a special neighborhood.
• The social power of a luxury home is huge. When you buy a luxury home or a country estate, you are making a statement to your in-laws, your family, your neighbors and your business/social contacts. Nothing wrong with that, but the question you must ask yourself is, "how big a statement can I afford?" How much are you willing to spend on personal marketing and temporary self-esteem? This is a big social pressure faced by newly-wed couples, lawyers and doctors as they come out of school landing that deep six figure position.
• If buying a bigger house (or even a house with an extra living room or a 4 car garage) is going to keep you in stuck in the office 90 hours a week till the end of time, is it really worth it?
• By the time you buy a house, you probably have a family or have plans to bring some little owns into your life. Which means that this is a joint decision, a group decision, a decision made under stress by at least two people, probably people that don't have a lot of practice talking rationally about significant financial decisions that also have emotional and social underpinnings.
• If you have a steady career, matching your mortgage to your income isn't dumb. Given the recent environment with bonus money being cut and profit sharing taking a dip having a jumbo mortgage payment that is less than ¼ to 1/3 of take home pay can bring about a lot of piece of mind.
• Real estate brokers, by law, work for the seller (unless otherwise noted). And yet buyers often try to please the broker. You'll never see her again, don't worry about it. [Let me be really clear about what I wrote here, just in case you'd like to misinterpret it: When a prospect sees an ad or goes to an open house, she is about to interact with a broker. That broker, in almost every case, is hired by the seller and has a fiduciary responsibility to the seller to get the very best price for the house. There are exceptions, like buyer's brokers, but those brokers, as I said, note that they are representing the buyer--how can you represent someone without telling them? Many brokers like to pretend to themselves that they are representing both sides, and while that's a nice concept, that's not the law.
• You're probably not going to be able to flip your house in two years for a big profit. Maybe not even ten years. So revisit #2 and imagine that there is no financial investment, just a house you love. And spend accordingly.

I'm optimistic about the power of a house to change your finances, increase your net worth, to provide a foundation for a family and our communities. I'm just not sure you should buy more house than you can COMFORTABLY afford merely because houses have such good marketing.

And above all please get a jumbo loan that makes sense for your short and long term financial plans. As always, have a prosperous day.

Cross-Posted with www.freerateupdate.com. The source for mortgage rate news.
Ten's of Millions of homeowners have adjusted from an ARM with a fixed rate period into a fully adjustable jumbo loan. Following the large drop in LIBOR rates since 2007, floating with the 6-month or 1 year LIBOR index has been an excellent risk home owners took the last few years. Of course now we hear solid information that job losses have stopped and we are in the midst of an economic recovery. The underlying rate trend in these indexes is a push higher on each piece of good news around the world regrading the stabilization of consumer retail sales, auto sales, and the home purchase market. Any real growth in the economy will be meet with higher interest rates and this will be reflected on the hundreds of billions of dollars worth of jumbo loan mortgages that are sitting with rates of about 3.50-4% now.

We think home owners that are floating against the LIBOR indexes without a plan to sell soon or get another ARM or better yet a fixed jumbo loan are living without interest rate insurance. I am a firm believer in having full coverage auto insurance given the cost of coverage vs the financial risk of an accident. They are just waiting for a financial accident when they get the new rate increase notice. Most ARMs adjust every six months with a 30-60 day notice of the new interest rate and payment. The jumbo loan rate trend has only been down for the last few years as the world almost fell off a cliff during the 07-08 meltdown. I think with the economic recovery gaining speed that it is only prudent to get some jumbo mortgage interest rate insurance and lock the lowest rates in history. Avoid an interest rate increase that for millions would come as a nasty surprise. If you need to refinance your jumbo mortgage within the next few years it’s prudent to explore your jumbo loan options now. As always, have a prosperous day.

Cross-Posted with www.freerateupdate.com. The source for mortgage rate news.

The value of luxury homes has been declining for 3-4 years now depending on the particular city. We won’t go into specific markets here as that is better explained on a granular level by the Case-Shiller Research and individual neighborhood analysis of 750k-4m luxury homes by your local luxury realtor. Above 4m is rarified air and is declining but has much different dynamics such as what the NFL/NBA/MLB contracts will look like in 2012 and if the hedge fund industry will continue to pay the large performance bonus numbers of the recent past. You get the idea.

Luxury home prices shouldn’t be declining some could say because:

• Financial markets the world over have recovered nicely from the March 2009 lows.
• Unemployment is running less than 4% for seasoned, highly skilled, well educated professionals (doctors, engineers, lawyers, etc). The rest of the working economy is running north of 10% unemployment if you believe the official stats.
• Jumbo loan borrowers didn’t do the crazy exotic financing that imploded in subprime and pay option ARMs weren’t very common in the 1-4m market.

I agree in theory but what is often misunderstood by jumbo mortgage borrowers is the crazy lending that was done during the bubble years of the last decade that pushed values up almost daily. They don’t know the huge impact on luxury home prices of removing the steroid juiced lending of Bear Stearns, Lehman et al. The thousands of banks/brokers that sold their ultimately toxic/destructive jumbo loan programs that ended up in bundled securities that investors curse the day they bought.

Everybody knows we have had massive government bailouts and are in a recession. But they didn’t know that their home was appreciating rapidly during the bubble because everything was being bid up in their neighborhood, city and nationally with juiced money from casino like investment banks. Most clients I speak to thought their neighbors had better paying careers or had been better investors/savers. No, they were outbidding and buying on the juice of Wall St casino money. Also the move up buyers with equity in their starter home that are ready to buy in the gated community are on the endangered species list in most cities.

With the steroids that powered crazy out of your mind lending removed, the puffed up and totally juiced real estate market of 10-30% annual price gains in some markets is gone and never to return. Hopefully. The inventory of homes for sale priced at $750,000 to $1 million is now 20 months, vs. 11 months for homes in the $100,000 to $250,000 range, the National Association of Realtors reports. With all these forces at work the body of luxury real estate is shrinking back to normal based on the fundamentals of ability to pay and put a healthy down payment of hard earned money into a home purchase.

Did you know that at the height of the insanity most people could borrower a million dollars with a strong FICO score and a reasonably believable stated income?  No money down and little document verification! Those are the luxury foreclosures that litter Florida, Arizona, Nevada, California etc.

The return to sanity with the jumbo loan lending of the banks and credit unions left standing has resulted in substantial equity requirements, fully documented income, a verified chunk of savings/investment assets and a requirement of 1-2 full appraisal reports of what the home is worth now based on sales of similar properties in the last 30-60 days.

I feel for the luxury homeowners that have “…lost hundreds of thousands of my equity.” But the money wasn’t real unless they cashed it out at the top via a refinance/HELOC or a sale. The casino lending is gone and hopefully won’t return again. The most critical element in getting the best and most competitive jumbo mortgage rate is EQUITY.

My crystal ball is in for repair so don’t be mad if I am not perfectly correct on this prediction but we believe that jumbo loan rates will be higher within the next year and luxury home values will continue to slowly decline in most cities across the country as the effect of steroid lending wears off and return to the stability of real local economic fundamentals. If you need to refinance your jumbo mortgage within the next few years it’s prudent to explore your jumbo loan options now. As always, have a prosperous day.

Cross-Posted with www.freerateupdate.com

Over the years, I have had countless conversations with home buyers about their jumbo mortgages. From 2003 to 2008, a typical a cocktail party or a BBQ invariably went something like this:

Home-Buyer: We got a great deal on our new mortgage.
Me: Did you do a 30 year fixed jumbo loan or something more exotic?
HB: 30 year fixed jumbo mortgage— at 4.5% !
Me:  Sorry, but that’s not 30 year fixed — rates are 6.5% today. That’s probably a 2/28, with a reset in 200X.
HB: No, we definitely asked for a 30 year fixed.
Me:  Well, that’s not what you got — its impossible to get that loan at that rate today.
HB: We’re good negotiators.
Me: Jumbo Mortgage rates are set by the bond market. Banks charge a mark up ABOVE the rates that they can borrow money. They can’t get 30 year money at 4.5%, so you can’t get 4.5%.  There is only so much negotiating you can do with the bond market.
HB: Well, its definitely a 30 year fixed.
Me: Please make the pain stop . . .

And so on.

Huge swaths of people, did not understand what they were buying, what it cost them, what their other options were, whether they could afford it or not.

I am not saying this to exonerate their ignorance — it is inexcusable in my opinion. Adults must take responsibility for their decision making, regardless of how foolish it may have been. That home buyers cannot figure out a basic financing document is beyond my comprehension. However, that is the way it is. We must acknowledge the simple reality, if we wish to avoid this problem in the future. That’s why we need to insure consumers understand what they are purchasing.

We are happy to see clients take a serious look at their current loan and the pros/cons of their various jumbo loan ARM refinance options vs the certainty of a refinance into a fixed jumbo mortgage. I think this a great change from the days of simply selecting the “cheapest” option of “no-points, no fees” on a jumbo 5/1 Interest Only ARM. Home owners realize their risks and are trying to make the most informed decision possible.  The prudent behavior by lenders and borrowers will result in much better jumbo loan performance and better lending standards in the future.

Now for the meat and potatos of jumbo mortgage rates this week. The trend was largely sideways action for products that aren’t deposit based. Our portfolio products dropped by .125-.25% across the product spectrum  for money good credits. Here is a sampling

30Y Fixed Jumbo Mortgage 5.625% paying 1 discount point

7Y ARM Jumbo Loan 4.50% paying 1 discount point

*In order to help customers compare similar jumbo loans, we use the following parameters in conducting our rate survey: A jumbo loan amount of $1m, sales price $1.3m. Each loan is a purchase transaction, 720 credit score, 30 day rate lock, taxes and insurance being escrowed, single family primary residence with fully documented income and verified assets(savings/investments).

Cross post.

Los Angeles Feb 24th (Freerateupdate.com)

Warning: A little technical.This is the Whole Wheat 8 Grain Variety of our ongoing commentary on the jumbo mortgage market.







As the top chart shows, 30-year fixed rate jumbo mortgage rates are going for a post-crisis low, a rate not seen since 2005. With a few scattered exceptions, the rate you get today is about as low as it has ever been in history. Conforming rates are still very close to all-time lows.

As the second chart shows, the Federal Reserve has put on the books about $1.25T of mortgage securities(tan section) which completes the program as announced. Anything could change as the conforming mortgage market tries to stand on its own. If rates skyrocket(unlikely) expect FED action as a stable housing market is a distinct policy of the Obama Administration and the too big to fail banks. The TBTF are sitting on north of 4m homes that they will need to short sale or foreclose on this year per various estimates being thrown around the industry.



The fundamentals driving the jumbo mortgage rates (i.e., 10-year Treasury yields and the spread between MBS and Treasury yields that investors demand in order to compensate them for the prepayment risk of mortgage-backed securities) suggest that we are very unlikely to see rates go lower than they are now. Treasury yields are quite low from a historical perspective, and spreads are about as tight as they have ever been.

One other interesting fact that shows up in the first chart is that the difference between jumbo and conforming mortgage rates is still quite large given that a conforming 30Y fixed is at 4.75% currently. That means that even if conforming rates move higher, it will likely take awhile before jumbo rates move much higher; the spread between them could compress by another 25-50 bps for the absolute Super Prime Credits with 30-40% equity and substantial investment assets. aka Money Good Credits.

However, I should also point out that the declining spread between jumbo and conforming loan rates is a very good sign that private capital is returning to the jumbo mortgage market in general. The Fed is only buying conforming mortgages, not jumbos, so jumbos have been outperforming conforming MBS, which in turn suggests that private capital has been actively seeking out the higher yields on jumbos. That is also an indication that when the Fed stops buying MBS at the end of March, there is no reason to expect jumbo mortgage rates to move significantly higher. A lot of pressure is building because of the RECORD default rate of 9.6% which prevents investors such as pension funds, insurance companies and mutual funds from aggressively buying jumbo mortgage bonds. These twin forces lead us to believe we will see rates in the 5.75-6.50% range on the 30Y Fixed Jumbo Loan throughout the year.

We continue to believe that prospective homebuyers and most long term homeowners would be well-served to choose a 30-year fixed jumbo mortgage instead of an adjustable rate. But, one size fits all advice never works as you well know.  Fixed rates are very low from a historical perspective, while the short-term rates that drive ARMs are very likely to rise significantly in coming years. With the fixed rate you get the certainty of locking in a historically low jumbo loan rate, but with adjustable rates you are exposed to considerable uncertainty down the road, because no one knows today how high short-term rates will be in the future. We always advise matching the loan term with personal and financial plans.

Have a prosperous day.

I don't want to be too quick to judge 2010. But the readings I am seeing point to a very tough year economically. I learned a long time ago to watch behavior and action above all else. I do the action test when out in the real world. I will watch the number of shopping bags in the mall, car dealership parking lots, traffic at the Starbucks, store traffic and cart composition at the Costco or grocery store. I have been wondering if the anecdotal evidence I had been hearing was really speaking to a real sustainable economic recovery.

With this question on my mind and back at the house, I gazed into the crystal ball and saw two troubling charts. These charts are the actual Google US search volume for real estate and mortgage related terms. Google has roughly 70% of the search market. The action points to a very tough start to 2010. I am not counting this year out in terms of economic growth entirely. Until unemployment really improves, I expect to see falling home prices, retailers constantly having huge promos, auto makers pushing crazy deals and people putting the financial house in order after the meltdown.

It is so rough that even the luxury goods index is down 6.90% YoY. How are the wealthy even getting by these days? May God Bless them and keep them in 1000 thread count sheets while they drift off to never never land.
CLICK Pics for larger view.
-13% vs 09
-29% vs 08
Mortgage Index. This includes all mortgage terms and not just jumbo loans.
-44% vs 09
-43% vs 08

You can also find other indexes for Autos, Furniture, Travel etc. Go to Google Index Tool Here.

BTW, look at the Blue Moon Tonight. They only occur once every 19 years.



Below is from Dr. Oz via www.huffingtonpost.com:

Mehmet Oz, M.D.

Vice-Chair and Professor of Surgery at Columbia University, author, radio and TV show host

 Here are my suggested resolutions for 2010: Have more sex, get more sleep, and never let yourself feel hungry. Sound hedonistic? These three resolutions will save and lengthen your life, and they are very realistic and noble goals. New Year's resolutions were never so much fun -- it's all in how you see it. Let's think about it for a minute, shall we?

Like millions of others, you are waking up on New Year's Day with the best of intentions. It's a new year and time for a clean slate. Resolutions come in all shapes and sizes and they are as varied as the people who make them. I get very excited about New Year's resolutions -- not because I have a long list, but because New Year's is a teachable moment. Everyone is looking themselves in the mirror in a rare, private moment of honest reflection. I was being purposely provocative instructing you to have more sex in 2010, but the act of making a resolution isn't flippant or funny -- it's actually sacred. Unlike any other time of year, I can have a heart-to-heart with my family, my friends, my patients, my audience and most importantly myself (I am right there with you!) and decide what needs to be changed for the better. Like all of you, I make a list. And like all of you, each year I fail at a considerable portion of that list. But over time I have seen the success column grow longer than the failure column. You can too.

I believe resolutions are so important that I devoted my show for the entire first week of January to creatively incite a revolution in your resolutions. The first salvo is that changing your life doesn't have to be a painful effort leaving us demoralized and depressed. Food, sex and sleep, three critical components of a healthy life, are a solid starting point for any resolution list.

The most common intention that we wake up with on January first is to lose weight. That's appropriate since a whopping 60 percent of us need to! What if I told you the best way to lose weight is to make sure you never let yourself feel hungry? Sound counterintuitive? It is. But you have a hormone named Ghrelin made in our intestines and stomach that lets you know when it's time to eat. It's the nasty hormone that makes your stomach growl and overwhelms your willpower. If Grhelin starts growling, you are going to overeat and likely eat the wrong foods. You have to always keep your Grhelin levels in check by lightly snacking on nuts, apples or other sensible foods. Keep the lion in its cage by feeling full and you will lose weight because you don't have an uncontrolled urge to overeat.

On our January fourth episode we'll show you exactly how to lose weight, but we will also caution you that your waist size is the better indicator of your health. If you aren't sure whether you need to lose waist, here is an equation you can use: your waist must be half your height or roughly between 32.5 and 37 inches for a woman and between 35 and 40 inches for a man. For years I bet you have focused on the scale. Now, focus on the waist size - it's all in how you see it.

Now, instead of seeing your New Year's resolution as a diet, what if we broke it down into specific steps and played with the language a little bit? For instance: "My New Year's Resolution is to never have anything in the house with these five items listed as the first five ingredients on the label: simple sugars, syrups, enriched flours, saturated fats, or trans fats. If you make your resolution about dumping out the bad food and bringing in the great substitutions that we show you on January fourth, you'll feel you have a bit more control of the situation and you'll forget the D word (Diet! Ahem.) See it differently and it will feel different. For a list of tips, recipes and a 14-day-plan visit www.doctoroz.com.

Still want to hear about that resolution to have more sex? Let's save the best for last and talk about sleep first. I want you to go into your bathroom at home, shut the door and have a conversation with yourself in the mirror. Take a good look at that person staring back at you and tell her that she is worth nurturing with seven hours of sleep per night. I am adamant about this. Sleep is one of the most important and most overlooked health drivers. You simply must give your brain time to re-organize its files and your tissues time to repair themselves. I do understand the pressures of parenting and working - I have four children and I have worked many long hours in the hospital over the years. I empathize with the stress life brings -- and I feel infinitely more prepared to handle it when I am well rested. I have more energy. I think more clearly, my mood is better and my appetite stays in check. The benefits of sleep are too numerous to list and it comes down to a question you've heard me ask before: Are you willing to admit that your life is so far out of your control that you can't get enough sleep each night? If, after proper planning, you aren't able to fall asleep it could signify a serious illness that mandates a consult with your doctor. I want you to stop seeing sleep as a luxury where you can cut corners. It's all in how you see it -- so see it differently and put it on your resolution list!

Now for the other resolution that involves your bedroom: sex. Stop seeing sex as something that is only for younger people or budding romances or those with enough time. I really need you to see this one differently because it's a hugely important part of being healthy. I want you to make a New Year's resolution that you will have sex several times a week with your partner. Believe it or not, that's actually a lot of work for many people out there. It's a lot of work because right now we are in the middle of a sexual famine in America. We simply aren't having enough. Why is this an issue? Because a loving, healthy sexual relationship is an indicator that things are great all over, and a lack of one means the opposite. Sex is an indicator of many things, and if you aren't having it at least once (and ideally more) a week for 30 minutes, it could mean something is dangerously wrong. Physical issues that get in the way of a healthy sex life are depression, heart disease, diabetes, and obesity to name a few. All of these can pose grave threats to your overall health. If none of these factors apply to you but you and your mate still aren't wearing out the lock on the bedroom door then it's time to examine your relationship. Sex is an expression of intimacy and is often a valuable indicator of the health of your relationship. Looking at the reasons you are struck by a sexual famine can be painful, but they will be well worth it, and may just save your life or relationship. So make a resolution to have more sex, and embrace all the obstacles along the way - the outcome will be blissful.

So join me in the resolution revolution - I bet you didn't think that food, sleep and sex could make up such a great resolution list. It's up to you in what order you want to start, and it probably depends what time of day you read this. Tune in the week of January 4 and we can go over each one in more detail. Happy New Year. Now if you'll excuse me, I have a resolution to keep, and I am not saying which one....

article link here. 

The information below is consistent with the large bank risk profile for jumbo mortgage lending in most states. As an example the standard down payment has moved to 30% from 20-25% just this summer in a lot of markets. This also is related to the Strategic Default problem. Most jumbo mortgage holders are on-time and won't default but the economics of the business change when defaults move from historic 1% levels to3-5%.

Moody's Investors Service has revised its loss projections for US prime jumbo residential mortgage backed securities (RMBS) issued between 2005 and 2008. On average, Moody's is now projecting cumulative losses of 3.8% for 2005 securitizations, 8.0% for 2006 securitizations, 10.9% for 2007 securitizations and 12.3% for 2008 securitizations, reported as a percentage of original balance. As a result of the revision, Moody's has now placed 4474 tranches of jumbo RMBS with an original balance of $234 billion and current outstanding balance of $143 billion, on review for possible downgrade.

To estimate losses, Moody's first projected delinquencies through the second half of 2010. Moody's estimated that the proportion of contractually current or 30-day delinquent loans today that will become seriously delinquent by the second half of 2010 will be 3.7%, 7.0%, 8.4%, and 9.4% for the 2005, 2006, 2007 and 2008 vintages, respectively.

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New York, December 17, 2009 -- Moody's Investors Service has revised its loss projections for US prime jumbo residential mortgage backed securities (RMBS) issued between 2005 and 2008. On average, Moody's is now projecting cumulative losses of 3.8% for 2005 securitizations, 8.0% for 2006 securitizations, 10.9% for 2007 securitizations and 12.3% for 2008 securitizations, reported as a percentage of original balance. As a result of the revision, Moody's has now placed 4474 tranches of jumbo RMBS with an original balance of $234 billion and current outstanding balance of $143 billion, on review for possible downgrade.