Good Morning. I've been asked if it is ok to pass this on to others and the answer is yes (Paul has it plastered to his office door). Yes, it is ok to pass this on to others.

I had a few "gulps" yesterday. A couple of them were due to someone waiting on me to respond. If you have something on hold, and you believe you are waiting on me to reply, or "focus" on it - please don't. Please set time to meet with me...and be prepared for the meeting - or if you need to meet to discuss, that's good and ok. But please, do not be waiting for me to respond.

My focus, (and God could very well has a different path for me and I'm trying to pay atttention!)...as I was saying, my focus right now is primarily on...

1. bringing to a close the <580 Manual Underwrite FHA Loans

2. re-tooling our business with a focus on AUS approved loans and

3. doing both well.

Doing this well:

1. bringing to a close the <589 Manual Underwrite FHA Loans: I'm asking for wisdom and discernment in this area. There is concern, and rightly placed, of GMAC Correspondent's volitality and that by a stroke of an executive's pen they decide to stop purchasing these low credit score loans. Thus, leaving us and others with these loans on our warehouse lines. If that was to happen, we would in essence be shut down.

Yet, that would have some severe consequences to GMAC; because they've put out their announcement, and they are giving us time to close out our existing pipelines. GMAC could have followed Chase's lead and cut these loans off with barely a 24 hour notice. Because they choose this path, and because GMAC Bank is continuing to take these loans through April, by intent is to follow their lead.
You all should have received our announcement last night about these <580 loans; It has some key dates and "have-to's" in it. We'll update that as new information comes forward.
The Underwriting on these loans will continue to tighten up. At present, we are...
Denying incompletely processed loans (we will not have time to work these loans through processing)
Documenting income very very well
Writing out how income was used for qualifying
We are document files very well
all conditions met prior to drawing docs
Verbal VOEs are very thorough
we are preparing a new process for this task
4506's are being pull on all of these loans to verify income
We are running AUS on all FHA Manual Underwritten Loans <580 scores to see if we can get approval (this is also for training purposes)
2. re-tooling our business with a focus on AUS approved loans: I will be asking a lot of questions along these lines.
There are a few on this staff that have a lot of experience in this area. Now that the playing field is leveled out, we have the opportunity to achieve some really good results.
Note that this manual underwrite agenda had taken place 6 months ago, it would have been very devasting.
Because we've been able to focus more on the AUS approved files, we have around 20% more of the AUS Approved files than before.

Doing this well will take a lot of talking; a lot of asking questions; a lot of discernment; a lot of proper guidance; a lot of paying attention; a lot of listening; a lot of prayer.

A lot of prayer.

Danny