12/03/2007

Not a Bad Idea, Arnie!

Hello;

Last week, we indicated that we would not be surprised if other states and/or the Federal Government emulated Governor Schwartzengger's plan to extend the term of the teaser rates for many adjustable rate mortgages. Naysayers complained that the mortgage lenders, and subsequent collectors, would resist any changes in the original mortgage agreement. Those arguments went by the wayside when lenders realized that they would rather receive a continuation of the lower payments as opposed to no payment at all.

Treasury Secretary Henry Paulson said that the administration "is putting forward a new proposal to allow state and local governments more authority to temporarily broaden their tax-exempt bond programs to include mortgage refinancing". This might move mortgage risk from the lender to the tax payer. An interesting bailout concept, but we are not convinced it will be as popular as the California Governor's plan.

Stay tuned for more updates on the 900 pound mortgage gorilla.

Do your donors have large losses or gains from their business or real estate holdings? Please have themcontact their tax advisor, and then contact us so that we may work as a team to help reduce your tax burden. Perhaps a significant donation to your organization before year end deserves serious consideration!

Terri G. Millson, CIMA, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager