Bernanke -- Outlines coming guidelines

[Jonathan Katz]

At this time these are the current proposals:

* Outlawing No Doc loans -- Bye bye "liar loans"
* Prepayment Penalties will be no longer allowed at certain times on certain loans.
* Take away some incentives to Mortgage Brokers from putting borrowers into higher rates
* Stop some additional incentives for selling "creative loans" (usually tough terms to comply with).
* New Conflict of Interests for Loan Brokers
* New advertising legislation: All legalese must be in the same language as that loan that is being advertised.

What are your thoughts? Is this going to help.

We feel that some reform may be great but the issue is that we hope they do not go too far. Making it too difficult to qualify.

The central bank meeting is not a good sign and it seems that S&P spoke too soon. Now S&P long term status to BBB from A. Bear down on their way to 50% of theirs stocks worth from this morning their are going to be some pockets hurting. JP Morgan bailed them out in 28 days. I hope they don't go out of business because we have some great connections there!