Special Edition

Congratulations on a great April, I hope it was profitable for each and every one of you. The month of May promises to be a very exciting time for AMS; we have many new developments that could make life a lot easier for many of you. Our license in Michigan has finally been approved and we can now start doing Michigan loans through AMS Bank. Our new Automated Underwriting System, AMS Elite is now available online offering over 200 programs to match every borrower's mortgage needs. Our final exciting news for May is that we have obtained a new system for lead generation and are offering a great opportunity for you to purchase leads at a very reasonable cost.

Over the last year, many of you have expressed an interest for lead sources. I would like to share with you an exciting announcement; AMS Corporate has signed a national contract with Experian for their Trigger Lead Program. The Trigger Lead program includes applicants who, in the last 24 hours, have applied for a mortgage with another mortgage company and had their credit pulled displaying the fact that they are in the market for a mortgage. This lead source is unique in the fact that we know their credit score, loan amount, loan payment and credit card debt, with up to 4 phone numbers for each lead. Historically the small broker or branch officer has not been able to participate because of the minimum commitment of $18,000 a month and a 6 month contract. Because AMS has signed a national contract we are able to make the leads available at a cost that most branches can budget for, as little as $50 per day. AMS will provide a 2 tier pricing system, 24 hour old leads for $5 each and 10 day old leads at $3 each. When you compare this to the cost of web leads or direct mail which typically runs $25 - $85 per lead, this is an incredible bargain. We are currently receiving leads for the 13 states that AMS is licensed in. To give you an idea of the numbers, during the month of April there were 36,000 leads in California alone.

AMS Elite has been beta tested at the National Loan Center in conjunction with the Experian lead source and it had incredible results. Imagine talking to a client, populating point, uploading to AMS Elite, selecting the programs that meet your client's goals and then being told if they are approved and pricing the deal while still on the phone. If you are interested in being part of this exciting new program, please contact me on my cell phone at 480-201-4614.

A Word From Branch Manager, Bob Roberts

Bob Roberts Work'in It!

I moved to Phoenix in 1982 and worked in Radio with KUPD and KKFR for 15 years. My educational background was at Chandler Gilbert Community College and ASU. I believe my radio experience helped me gain a firm grasp in marketing to the metro Phoenix area. By 1996, I started to invest in check cashing stores which was my first foot into the financial industry and led me to get involved with mortgages. I was with Choice One, then American Mortgage Group, two companies that specialized in Branch operations.

My son Christopher Roberts, who now runs his own American Mortgage Branch in Gilbert, worked for Scott Powers, the founder of AMS. Christopher set me up with Scott and I was very impressed with him. This influenced me to open up the first Retail Branch with AMS.

Sondra Bialkowski came on board and things really started to grow. Sondra and Scott developed a branch system far superior to any other mortgage company in the market. Scott's plan from the beginning was to start his own bank division. Like anything else that large, there was going to be some problems getting staff, products and experience. There were a few problems in the beginning, I won't lie, but now the learning curve is over. I can attest to the fact that things are better now with corporate than ever.

I use AMS bank for all my needs. I currently run an average of 1.5 - 2 million a month in business through the AMS bank. The first month that everything started going really smoothly was December 2005. That month, my sales manager Mike Nease and I did 4 million through AMS bank with out a hitch. The best month was this past April, Mike and I did 2 million and it all closed within two weeks, start to finish, including getting a check. Now how can you beat that? The customers are thrilled and will certainly come back to me for all their future needs.

Mike and I have a system that has worked well for us. We call our BDM, Jim White and give him scenarios, he then directs us to programs that match our needs. If we have any special problems, seasoning, number of homes owned, how income is stated, we go to Jin (Loan Ninja). She helps us figure out how we can overcome those types of problems. If we need overrides or exceptions like MLS listings, TDI, etc. we go to Joe West. Then Aggie Parish and Nora Twal take care of it from there. They keep us informed on every move they make and help expedite our files. Of course, you must make sure to have a proper stacked file with all conditions met, but once you do four or five loans through AMS the system is easy. Now with the AMS Elite Automated Underwriting System, it is even better. You have everything at your finger tips. The end result is that I have more income, more time to spend with my grand daughter MCkenze and I can go deep sea fishing whenever I want.

I love the financial world of Real Estate and fortunately I have been pretty successful at it. I think it must be in my blood, when I was growing up my mother was one of the largest real estate developers in New York. The factors that have contributed to my success in this industry come from family, past experience, education and AMS. What other company out there will tell you what their marketing secrets are and how they get their business. From the receptionist to Scott Powers, they all have a true desire for all AMS branches to grow. I truly enjoy my relationship and will always remain loyal to AMS.

If I can be of help to anyone who reads this just email me at bobroberts@amsaz.com.

Emily’s Smoked Salmon with Lemon-Dill Aioli

Ingredients:
10 to 12 alder or apple wood chunks

3/4 cup mayonnaise or salad dressing

2 Tbsp. snipped fresh dill weed

1-1/2 tsp. finely shredded lemon peel

1 Tbsp. lemon juice

1/4 tsp. lemon-pepper seasoning

1 3-1/2- to 4-lb. dressed salmon

8 sprigs fresh dill weed

Lemon wedges

Directions:
1. At least 1 hour before smoke cooking, soak wood chunks in enough water to cover. Drain before using.

2. Meanwhile, for sauce, in a small bowl, combine mayonnaise, snipped dill weed, lemon peel, lemon juice, and lemon-pepper seasoning. Cover and chill until ready to serve.

3. Rinse salmon; pat dry with paper towels. Fill cavity of fish with fresh dill weed sprigs. Place salmon on an 18¿12-inch piece of greased heavy-duty foil.

4. In a smoker arrange, preheated coals, drained wood chunks, and water pan according to the manufacturer's directions. Pour water into pan. Place fish on foil on the grill rack over water pan. Cover; smoke for 2-1/2 to 3 hours or until fish flakes easily when tested with a fork. Add additional coals, wood chunks, and water as needed to maintain temperature and moisture.

5. To serve, remove skin from one side of salmon. Serve fish with sauce and lemon wedges. Makes 4 to 6 servings.

Luann’s Cinco de Mayo

Ingredients
2 1/2 oz añejo or white Tequila

1 oz Grenadine

1 oz Rose's sweetened lime juice

Directions
1. Shake well with lots of ice. Strain into glass. Garnish with fresh lime wedge if desired.

AMS disclosures that need to be in every file:
Initial TIL (bottom portion to be completed correctly)
GFE (YSP needs to appear as 'Yield Spread Premium 0% -7%' no exception)
Initial 1003
Servicing Disclosure
Notice to Applicant of Right to Receive Copy of Appraisal (NO 90 DAY TIME LIMIT!)
Acknowledgement
Agreement to Terms
4506-T
Borrower Signature Authorization
Borrower's Certification and Authorization
Patriot Act information Disclosure
Customer Identification Disclosure
Disclosure notices (4 on one page)
Credit Score Information Disclosure
Mortgage Loan Origination Agreement
ECOA (Equal Credit Opportunity Act)
Privacy Policy
Purpose of Refinance
A.R.M. Disclosure (if applicable)

If you don't know how to print the disclosures from Calyx Point please contact Patrick Marshall at patrickmarshall@amsaz.com and sign up for the 'Calyx Point 101' class on 5/22/06. Class is from 9am-12pm.

Forms:
Acknowledgement
Agreement To Terms
Purpose of Refinance Disclosure

Joke Of The Week

Pirate at a Bar

A pirate was talking to a "land-lubber" in a bar. The land-lubber noticed that, like any self-respecting pirate, this guy had a peg leg, a hook in place of one of his hands and a patch over one eye. The land-lubber just had to find out how the pirate got in such bad shape. He asked the pirate,

"How did you loose your leg?" The pirate responded,

"I lost me leg in a battle off the coast of Jamaica!" His new acquaintance was still curious so he asked,

"What about you hand. Did you loose it at the same time?"

"No," answered the pirate. "I lost it to the sharks off the Florida Keys." Finally, the land-lubber asked,

"I notice you also have an eye patch. How did you loose your eye? The pirate answered,

"I was sleeping on a beach when a seagull flew over and crapped right in me eye." The land-lubber asked,

"How could a little seagull crap make you loose your eye?" The pirate snapped,

"It was the day after I got me hook!"

Mortgage Rates, Applications, Cash Out Refinancing All Up

Fixed mortgage rates increased for the fifth straight week according to Freddie Mac's Weekly Primary Mortgage Market Survey for the week ended April 27 and adjustable rate mortgages (ARMs) logged the sixth consecutive week of increases.

The 30-year fixed rate mortgage increased from 6.53 percent during the week ended April 20 to 6.58 percent although fees and points dropped from 0.6 to 0.5. The 15-year fixed rate was up four basis points to 6.21 percent with fees and points steady at 0.5.

In the ARM corner the 5/1 ARM rate pulled even with the 15-year fixed rate at 6.21 percent, up from 6.16 the previous week while fees and points were down from 0.8 to 0.6 and the 1-year ARM increased five basis points to 5.68 percent. Fees and points dropped off from a previous recent record 0.9 to 0.7.

n a separate report Freddie Mac announced that cash-out financing of its owned loans recently hit the highest level since the third quarter of 1990.

First quarter 2006 figures show that 88 percent of Freddie Mac-owned loans that were refinanced during the quarter resulted in new mortgages that were at least five percent higher than the loans they replaced. During the fourth quarter of 2005 the share of refinanced loans that were termed "cash-out" was 81 percent. Those borrowers refinancing a mortgage at a lower amount - putting more money down at closing - was down to 4%, the lowest rate since at least the fourth quarter of 1998 - the earliest date for which information was reported.

Overall, refinancing accounted for 44 percent of all mortgage applications during the first quarter as compared to 45 percent during the last quarter of 2005. According to Frank Nothaft, Freddie Mac vice president and chief economist, "almost no one is refinancing to reduce their interest rate..." Nothaft continued to explain that the first quarter of 2006 was the first time in 20 quarters when the interest rates for new mortgages was higher than the old rate for more than half of those who were refinancing. It is possible, the report said, that increasing interest rates on many home equity loans, which tend to be tied to the prime rate, have been rising fast enough to make refinancing the first mortgage lien to pay off the equity lien feasible. The prime rate is currently at 7.75 percent with a distinct probability of rising higher. Home equity lines often put a margin of one or two points on top of that making a rate of 6.5 percent, particularly a fixed rate of 6.5 percent appear to be a bargain. The median age of the loans being refinanced was 3.0 years.

Freddie Mac estimated that $170 billion in home equity will be converted to cash through refinancing during 2006.

During the first quarter the median ratio of old-to-new interest rates was 0.98 which means that one half of borrowers who were refinancing mortgages ended up with a new loan with a rate that was two percent higher than the old rate.

The Freddie Mac report also stated that those properties that were refinanced during the first quarter experienced a median increase in home values of 30 percent since the last time a loan was closed on the property.

The Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ended April 28 also reported across-the-board rate increases. The average contract interest rate for 30 year fixed-rate mortgages increased four basis points to 6.57 percent with points, including the origination fee, increasing from 1.10 to 1.18. The 15-year fixed-rate mortgage was up slightly from 6.18 to 6.19 percent with points up 0.07 to 1.18. The one-year ARM also increased from 5.96 percent to 6.08 percent and points also increased from 0.82 to 0.85. All MBA figures are for 80 percent loan to value originations.

Mortgage application volume was up 8.8 percent on a seasonally adjusted basis and 9.6 on an unadjusted basis from the previous week but, as has been the case for some time, was down from the same week last year; this time the differential was 15.6 percent.

Refinancing as a share of all mortgage activity was down to 35.2 percent of all loan applications from 36.7 the previous week. This is the lowest share of the market claimed by refinancing since late June 2004. The ARM share of mortgage activity increased fractionally from 28.2 percent to 28.3 percent for the week.