There have been some recent changes in the Denver, Colorado real estate and mortgage industry, and more on the way that both lenders and realtors should keep in mind. Thought I would pass these along:

1. FHA Reform Bill should be introduced in this session. It will allow for a 100% LTV loan, new loan limits equal to FNMA ($417,000), 40 year amortization and risk based MI pricing (this would be set and administered by HUD). This bill could be passed by this summer.

2. Borrowers can now write off mortgage insurance payments for Private, FHA and VA insurance payments. The legislation allows the deduction for 2007 only (the bill maybe extended), also single borrowers cannot make over $50,000, or married $100,000 (adjusted gross income). The IRS has not ruled on the upfront MI for both VA/FHA, it will probably be written off over specified period. Your clients can be assured that this years monthly MIP's are tax deductible from Federal taxes.

3. There was an excellent article in the Rocky Mountain News regarding median price home sales 2005 vs. 2006 by county. You should be aware of these general trends. By county (median price ½ above ½ below, % change from 2005):

Adams County ($194,000) -3.0%

Arapahoe County ($219,000) +0.5%

Boulder County ($318,000) +2.6%

Denver County ($220,000) +1.9%

Douglas County ($320,000) +1.6%

Jefferson County ($235,000) -1.1%

Larimer County ($226,105) -3.4%

Weld County ($177,616) -1.3%

El Paso County ($196,000) -1.5%

Pueblo County ($121,750) +3.1%

Elbert County ($304,350) +.3%.

If you have any questions or comments, please let me know!

Regards,

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Gregory Godbey

Aspen Funding Corp

445 Union Blvd. #307

Lakewood, CO 80228

Direct: 303-854-2374

Fax: 303-989-4868

email: greg@aspenfunding.com

*Top 25 Mortgage Company, Denver Business Journal 2005-2006*