Scenario / Help Desk for Prime and Subprime Loans

Rod Frye, New Sub-Prime Help Desk Manager

AMS is excited to announce its latest addition to the Mortgage Lending Division's services! Effective Wednesday, June 7, 2006 AMS will launch its Scenario / Help Desk for Prime and Subprime Loans.

The Desk will be available Monday - Friday from 8:00am - 6:00pm MST. During this time period the desk will be manned by a combination of up to 4 Account Executives or Sales Managers to assist you with Loan Scenarios, Loan Pricing, Exception Requests and Subprime Pre Quals. The Desk will be able help with ALL AMS Loan Products! These requests may be made via phone, fax or email.

As part of our development of this Team / Desk, AMS is very excited to announce the addition of Rod Frye to head up the Subprime Division of this team. Rod comes to AMS most recently from Argent's Correspondent Lending Division. With over 30 Years of experience in the Mortgage Industry, Rod brings to AMS a wealth of knowledge to be shared with all 1300 of our associates. This knowledge includes Subprime and Prime experience at all levels within our industry, from Wall Street to Main Street.

Please look for upcoming announcements during the next couple of days in regards to contact information for Rod, Jin Im and Julie Pham as they bring the next level of service to YOU!

CHUCK THE DUCK

Chuck the Duck and his mate live on a lake in the Dobson Ranch community, behind Brunello Restaurant and Macayo's.

A couple of months ago, Chuck got some fishing line wrapped around his leg. While some kind hearted folks were about to cut off the part that was dragging behind, they weren't able to get it off his leg. As a result, Chuck's leg and foot began to swell, and start turning black.

In the meantime, Chuck and his mate had a batch of chicks, which Chuck was unfortunately unable to protect due to his injury.

Concerned local citizens were able to put their heads together, and through networking out Chuck's plight, found a veterinarian who would treat Chuck at no cost.

The next challenge was catching Chuck. Luckily, a young boy caught him, and he was loaded in a cat carrier.

The next day, Chuck went to go see Dr. Todd Driggers of Foothills Mobile Exotic in Gilbert.

Dr. Driggers was able to remove the rest of the fishing line from Chuck's foot, and treated him with antibiotics, then taped the leg. His prognosis is very favorable, and his leg and foot should heal completely.

As Chuck needed to be secluded for a couple of days, Steve Bradshaw offered his garage as a temporary shelter. Chuck's health improved daily with a diet of cornflakes and corn.

On Thursday, May 25, Chuck rode in a car for the final time back to Brunello Restaurant. There, five of the people who had made all of this possible joined together for Chuck's Release Party. When Steve put the cat carrier by the lake, and opened the door, Chuck almost immediately came running out. He went to the edge of the water, and before he jumped in, he spread his wings and waved them, almost as if he was saying "Thanks." Chuck then jumped into the water, and swam off to find his mate.

Luke's Grilled Tequila Portobello

Ingredients:
• 1/4 cup tequila

• 1/8 cup unsalted butter, melted

• 2 tablespoons roasted garlic oil

• 1 lime, juiced

• 3 cloves garlic, minced

• 1 large portobello mushroom, cut into 3/4 inch slices

Directions:
1. In a small bowl, mix together tequila, melted butter, roasted garlic oil, lime juice, and minced garlic. Let stand for at least 15 minutes.

2. Preheat grill for medium heat.

3. Brush grate with vegetable oil. Brush mushroom slices with tequila mixture, and place on grill. Cook until the mushroom slices begin to wilt, then turn and brush with more of the tequila mixture. Cook for a few minutes, until mushrooms are tender. Watch carefully so they do not burn.

Steve's Beverage Recommendation

With this meal Steve recommends:

Cadillac Margarita

Ingredients:

1 1/2 oz tequila

1 oz Grand Marnier® orange liqueur

1/4 oz fresh lime juice

Directions:

Shake 100% blue agava tequila with grand marnier and lime juice, and strain into a chilled salt-rimmed cocktail glass. Serve.

We are still seeing branches disclosing 90 days on their Appraisal Disclosure. Also, remember to disclose the Yield Spread Premium on all brokered loans. You must disclose it only as “Yield Spread Premium 0-7%”. Remember to fully complete your GFE and TIL. We no longer use the Consent to Complete Blank Spaces so make sure your 1003 and other documents are fully completed.

Vicki Oania
Compliance Manager

Mortgage Rates Rise and Housing Impact on GDP Lessens

Fixed rate mortgages continued to creep up during the week ended May 25 while there was a slight easing of adjustable rate products according to the Weekly Primary Mortgage Market Survey released by Freddie Mac.

The average rate for 30-year fixed-rate mortgages ticked upward to 6.62 percent from 6.60 percent for the week ended May 18. This is the highest level for this rate since the week ending June 20, 2002. The 15-year fixed was up three basis points to 6.23 percent. However, fees and points for both products declined from 0.5 to 0.4, the lowest point we could find for this figure in Freddie Mac data going back to 1971 for the 30-year and 1991 for the 15-year.

Freddie Mac figures showed a decline in the rate for the 5/1 hybrid adjustable rate mortgage from 6.23 percent to 6.21 percent although fees and points were up 0.1 to 0.6. The 1-year ARM dropped 1 basis point to 5.61 percent with fees and points unchanged at 0.7.

On a regional basis the 30-year ranged from 6.55 in the Southeast region to 6.68 in the North Central. The range for 15-year fixed mortgages was from a low of 6.17 in the Southeast to 6.30 in the North Central. In the latter region, however, fees and points hit a low of 0.2 for both 15- and 30-year mortgages.

Frank Nothaft, vice president and chief economist for Freddie Mac commented that "...mortgage rates are roughly a half a percentage point higher than they were at the start of the year, which has led to some moderation in the housing market. Indeed, in the first quarter of 2006, the housing industry directly accounted for only seven percent of real Gross Domestic Product (GDP) compared to 19 percent in the fourth quarter of 2005."

"Total housing starts for April were the weakest since November 2004, and although new home sales in April were the strongest this year, the number of homes for sale hit a record high. Meanwhile, existing home sales declined an expected two percent, further evidence of an easing in the pace of housing."

The Mortgage Bankers Association Weekly Mortgage Application Survey for the week ending May 26 and released on May 31 showed an average interest rate for the 30-year fixed rate mortgage of 6.66 percent. This is an increase of 5 basis points from the previous week with points decreasing to 1.03 from 1.17. Points in this survey include the origination fee and include only 80 percent loan-to-value mortgages.

The 15-year fixed rate mortgage decreased to 6.22 percent from 6.23 with points rising 0.02 to 1.18.

The biggest change was recorded for one-year ARMs. The average interest rate moved from 6.02 percent to 6.09 percent while points decreased from 0.87 to 0.83.

Mortgage activity was down slightly. Applications decreased 1.9 percent on a seasonally adjusted basis from the previous week and 2.6 percent on an unadjusted basis. Activity was down 22.4 percent from the same week in 2005.

Refinancing activity, which had been up last week, retreated and now represents 34.9 percent of all mortgage applications, a -0.8 percent change. The share of new loans that were adjustable rate products increased to 30.7 percent from 30.5 percent the previous week.