Some Good News!
 
Economists Call for Bernanke to Stay, Say Recession Is Over
Wall Street Journal (08/12/09) P. A2; Izzo, Phil
A Wall Street Journal survey of 47 economists reveals overwhelming support for another four-year term as Federal Reserve Chairman for Ben Bernanke. "He deserves a lot of credit for stabilizing the financial markets," says Joseph Carson of AllianceBernstein. "Confidence in recovery would be damaged if he was not reappointed." Poll respondents believe Bernanke has more than a 70 percent chance of being asked by President Barack Obama to remain at the helm of the central bank. Most of the economists surveyed also agree that the nearly two-year-old recession has ended.

The more information like this that people begin to see the more and more they will begin to believe that the worse is behind us! From economics 101 class this means that they will begin to buy houses,cars and other consumer goods. These actions are how the wheels get back on the cart!
 
I think this could signal a beginning to a loosening in the lending sector.  Many small to mid size lenders have encountered growing difficulty doing business because they are short on funds to lend. (The warehouse lenders are the people that lend the lenders money during the early process of a loan) .As more and more Warehouse lenders come on line you will see more and more competition to create new loan programs. 

Citigroup Uses Government Funds to Re-Enter Warehouse Lending
Bloomberg (08/12/09) Moore, Michael J.; Keoun, Bradley
Like GMAC LLC and Wells Fargo & Co. before it, Citigroup Inc. is returning to the warehouse lending business, which all but dried up over the past couple of years. It plans to use economic stimulus funds from the U.S. Treasury to lend as much as $2 billion to independent mortgage firms, which depend on warehousers to make loans and then retain the mortgages until they are sold. "This $2 billion will definitely be welcome, because the market right now is very tight for warehouse credit," says Glen Corso of the Warehouse Lending Project, which estimates that the number of warehouse lenders is down to fewer than 30 this year from as many as 115 in 2005

Have a great day and Please pass this information along!

Rob Pinion

First Alliance Mortgage

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