Inside Lending Newsletter - For the week of August 27, 2012 – Vol. 10, Issue 35

Market Update  QUOTE OF THE WEEK... "Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down." --Warren Buffett, American business magnate, investor, and philanthropist INFO THAT HITS US WHERE WE LIVE... Home prices have certainly been marked down from their highs of a few years ago, and buyers seem to be finally realizing there are some very nice homes out there at some very nice prices. The latest evidence came when Existing Home Sales shot UP 2.3% in July to a 4.47 million unit annual rate. Sales of these homes are now UP 10.4% from a year ago. But those contemplating a purchase should not dally. The median price of an existing home is UP 9.4% over a year ago, the largest gain since the peak in early 2006! July New Home Sales are UP 3.6% for the month, to a 372,000 annual rate, and are UP 25.3% over a year ago. The months' supply is now down to 4.6. The median price is also down slightly (2.5%) from a year ago, but some analysts put this to the fact that new homes can have a tough time competing against existing homes, many of which are less than 10 years old. The FHFA index of prices for homes financed by conforming mortgages is UP 3.6% from a year ago, up at a 9.8% annual rate the last five months. BUSINESS TIP OF THE WEEK... When you decide on a goal, take action immediately. Don't try to do it all at once, but make your first step a big one. Block out critical dates. Get delivery commitments from others. Write a first draft of a proposal.  >> Review of Last Week THE RUN IS DONE... The Dow and the S&P 500 stock indexes were up six weeks in a row and the Nasdaq five, but the run was done last week, as they all slid a tad. With four down days, the dip would have been worse had it not been for the 100+ point gain on Friday. This was motivated by a letter released from Fed Chairman Bernanke in which he said the central bank has the means to take further steps to bolster the economy. Clarification of this may come when he speaks this Friday at the annual confab in Jackson Hole, Wyoming. FOMC Minutes from the last Fed meeting July 31 also indicated they could provide additional easing if general economic conditions deteriorate further. Those messages continue to be mixed. Durable Goods Orders were up 4.2% in July, but when you take out airplanes and autos, they were down 0.4%, way worse than expected. Initial Weekly Jobless Claims headed up again, this time by 4,000, to 372,000, while the four-week moving average is now at 368,000. Continuing Unemployment Claims grew to 3.32 million.  For the week, the Dow ended down 0.9%, to 13158; the S&P 500 was down 0.5%, to 1411; and the Nasdaq was down 0.2%, to 3070.  Bond prices moved higher as stocks lost their footing until the Fed Chairman's letter on Friday gave hopes for the quantitative easing some economists think may help. The FNMA 3.5% bond we watch ended the week UP .89, at $105.13. Average mortgage rates nationally edged up for the fourth week in a row, although they're well below year-ago levels. Buyers appear to be coming off the fence, as purchase loan applications were UP 0.9% for the week. DID YOU KNOW?... Deflation, the opposite of inflation, is a decline in price levels, often caused by a reduction in the money supply or credit. It can have the side effect of increasing unemployment. Quantitative easing is intended to prevent deflation. >> This Week’s Forecast GDP, PENDING HOME SALES, INFLATION AND THE CONSUMER MINDSET... The week features the 2nd Estimate of Q2 GDP, with economic growth forecast well under 2%. July Pending Home Sales are expected flat coming off June's decline. That means Existing Home Sales still won't be booming a couple of months out. Inflation should remain tame for July as measured by the Fed's favorite Core PCE Prices. But the consumer's outlook doesn't seem to be improving in August, with both Consumer Confidence and Michigan Consumer Sentiment expected to remain right where they've been. >> The Week’s Economic Indicator Calendar Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates. Economic Calendar for the Week of Aug 27 – Aug 31  Date Time (ET) Release For Consensus Prior Impact Tu Aug 28 10:00 Consumer Confidence Aug 65.5 65.9 Moderate W Aug 29 08:30 GDP–2nd Estimate Q2 1.6% 1.5% Moderate W Aug 29 08:30 GDP Deflator–2nd Est. Q2 1.6% 1.6% HIGH W Aug 29 10:00 Pending Home Sales Jul 0.0% –1.4% Moderate W Aug 29 10:30 Crude Inventories 08/25 NA –5.412M Moderate W Aug 29 14:00 Fed's Beige Book Aug NA NA Moderate Th Aug 30 08:30 Initial Unemployment Claims 08/25 370K 372K Moderate Th Aug 30 08:30 Continuing Unemployment Claims 08/18 3.300M 3.317M Moderate Th Aug 30 08:30 Personal Income Jul 0.3% 0.5% Moderate Th Aug 30 08:30 Personal Spending Jul 0.5% 0.0% HIGH Th Aug 30 08:30 PCE Prices–Core Jul 0.1% 0.2% HIGH F Aug 31 09:45 Chicago PMI Aug 53.8 53.7 HIGH F Aug 31 09:55 U. of Michigan Consumer Sentiment–Final Aug 73.6 73.6 Moderate >> Federal Reserve Watch    Forecasting Federal Reserve policy changes in coming months... With another round of quantitative easing looming, economists do not expect a rise in the Funds Rate any time soon. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same. Current Fed Funds Rate: 0%–0.25% After FOMC meeting on: Consensus Sep 13 0%–0.25% Oct 24 0%–0.25% Dec 12 0%–0.25% Probability of change from current policy: After FOMC meeting on: Consensus Sep 13      <1> Oct 24      <1> Dec 12      <1> UIE

The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice, or a commitment to lend. Although the material is deemed to be accurate and reliable, there is no guarantee of its accuracy. The material contained in the newsletter is the property of PrimeLending, A PlainsCapital Company and cannot be reproduced for any use without prior written consent. It is designed for real estate and other financial professionals only. It is not intended for consumer distribution. The material does not represent the opinion of PrimeLending, A PlainsCapital Company. © 2012 PrimeLending, A PlainsCapital Company. Trade/service marks are the property of PlainsCapital Corporation, PlainsCapital Bank, or their respective affiliates and/or subsidiaries. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply. All rights reserved. PrimeLending, A PlainsCapital Company (NMLS no: 13649) is a wholly-owned subsidiary of a state-chartered bank and is an exempt lender in the following states: AK, AR, CO, DE, FL, GA, HI, ID, IA, KS, KY, LA, MN, MS, MO, MT, NE, NV, NY, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI, WY. Licensed by: AL State Banking Dept.- consumer credit lic no. MC21004; AZ Dept. of Financial Institutions- mortgage banker lic no. BK 0907334; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act- lender lic no. 4130996; CT Dept. of Banking- lender lic no. ML-13649; D.C. Dept. of Insurance, Securities and Banking- dual authority lic no. MLO13649; IL Dept. of Financial and Professional Regulation- lender lic no. MB.6760635; IN Dept. of Financial Institutions- sub lien lender lic no. 11169; ME Dept. of Professional & Financial Regulation- supervised lender lic no. SLM8285; MD Dept. of Labor, Licensing & Regulation- lender lic no. 11058; Massachusetts Division of Banking– lender & broker license nos. MC5404, MC5406, MC5414, MC5450, MC5405; MI Dept. of Labor & Economic Growth- broker/lender lic nos. FR 0010163 and SR 0012527; Licensed by the New Hampshire Banking Department- lender lic no. 14553-MB; NJ Dept. of Banking and Insurance-lender lic no. 0803658; NM Regulation and Licensing Dept. Financial Institutions Division- lender license no. 01890; ND Dept. of Financial Institutions- money broker lic no. MB101786; RI Division of Banking- lender lic no. 20102678LL and broker lic no. 20102677LB; TX OCCC Reg. Loan License- lic no. 7293; VT Dept. of Banking, Insurance, Securities and Health Care Administration- lender lic no. 6127 and broker lic no. 0964MB; WA Dept. of Financial Institutions-consumer lender lic no. 520-CL-49075; WV Div. of Financial Institutions- lender license ML31704 and broker license MB-31703. PrimeLending, A PlainsCapital Company is an Equal Housing Opportunity Lender. NMLS# 10331

Inside Lending Newsletter - For the week of August 20, 2012 – Vol. 10, Issue 34

Market Update  QUOTE OF THE WEEK... "Nothing can be done without hope and confidence." --Helen Keller, American lecturer and author INFO THAT HITS US WHERE WE LIVE... Home builders last week showed plenty of evidence they are both hopeful and confident. July new Building Permits came in UP 6.8%, to an 812,000 annual rate. In fact, July saw the most single-family building permits filed since August 2008, the month before the Lehman collapse and the financial market meltdown. Versus a year ago, permits for single-family homes are now UP 23.0%. Housing starts did slip a scant 1.1% from June to July, but they're still UP 14.2% year-over-year. Housing starts have been rising on an annual basis since September 2011 and are now 56% above their April 2009 low point. No wonder builder confidence in the market for new single-family homes rose in August to its highest level in more than five years, as builders expect the housing recovery to continue. We're not yet in positive territory above 50, but we're getting there, with four straight upbeat months. BUSINESS TIP OF THE WEEK... Successful people set concrete goals with a specific completion date: "I will contact 10 new prospects in the next 5 days." Not: "I will make more new business calls when I get the chance." >>Review of Last Week QUIETLY BULLISH... Stocks ended up again in a week marked by low volume and low volatility, as many traders were off on vacation, Europe's debt crisis cooled down and our own economic data improved some. The net result had the Dow and the S&P 500 up for the sixth week in a row and the Nasdaq heading higher for its fifth week. The first news of the week was the best, with Retail Sales UP 0.8% in July after dropping three months in a row. At the same time, consumer prices stayed flat in July as measured by the CPI Consumer Price Index. This good news that inflation remained in check was followed by overall industrial output growing 0.6% for the month. But manufacturing in the New York and Philadelphia regions were in negative territory, indicating contraction. Mixed messages also came with Initial Weekly Jobless Claims heading up to 366,000, but Continuing Claims declining to 3.05 million. Preliminary Michigan Consumer Sentiment for August surprised to the upside at 73.6, while the July Leading Economic Indicators index went up a better-than-expected 0.4%. For the week, the Dow ended UP 0.5%, to 13275; the S&P 500 was UP 0.9%, to 1418; and the Nasdaq was UP 1.8%, to 3077.  Economic data that came in better than had been feared, plus the lull in bad news from Europe kept investors comfortable with riskier stocks. This sent bond prices down. The FNMA 3.5% bond we watch ended the week off .88, at $104.24. Average mortgage rates nationally were mostly higher, with fixed rates edging up for the third week in a row. Rates are still well below levels of a year ago. DID YOU KNOW?... Leading indicators change before the economy does and include things like building permits, inventory changes, money supply, production workweek, stock prices, and unemployment claims. The Fed keeps an eye on many of these. >>This Week’s Forecast JULY HOME SALES, FOMC MINUTES... We now get a full read on July home sales, with Existing Home Sales on Wednesday expected to be up a bit and New Home Sales on Thursday also inching ahead. Tuesday we'll get a look at FOMC Minutes from the Fed's last meeting on July 31. These will be closely parsed to see if anyone can tell when the central bank will be cranking up the printing presses for the next round of quantitative easing. >>The Week’s Economic Indicator Calendar Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates. Economic Calendar for the Week of Aug 20 – Aug 24  Date Time (ET) Release For Consensus Prior Impact Tu Aug 21 14:00 FOMC Minutes 07/31 NA NA HIGH W Aug 22 10:00 Existing Home Sales Jul 4.55M 4.37M Moderate W Aug 22 10:30 Crude Inventories 08/18 NA –3.699M Moderate Th Aug 23 08:30 Initial Unemployment Claims 08/18 365K 366K Moderate Th Aug 23 08:30 Continuing Unemployment Claims 08/11 3.298M 3.305M Moderate Th Aug 23 10:00 New Home Sales Jul 368K 350K Moderate F Aug 24 08:30 Durable Goods Orders Jul 2.5% 1.3% Moderate >> Federal Reserve Watch    Forecasting Federal Reserve policy changes in coming months... Economists do not believe the Fed will raise the Funds Rate until their stated goal of late 2014. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same. Current Fed Funds Rate: 0%–0.25% After FOMC meeting on: Consensus Sep 13 0%–0.25% Oct 24 0%–0.25% Dec 12 0%–0.25% Probability of change from current policy: After FOMC meeting on: Consensus Sep 13      <1> Oct 24      <1> Dec 12      <1> UIE

The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice, or a commitment to lend. Although the material is deemed to be accurate and reliable, there is no guarantee of its accuracy. The material contained in the newsletter is the property of PrimeLending, A PlainsCapital Company and cannot be reproduced for any use without prior written consent. It is designed for real estate and other financial professionals only. It is not intended for consumer distribution. The material does not represent the opinion of PrimeLending, A PlainsCapital Company. © 2012 PrimeLending, A PlainsCapital Company. Trade/service marks are the property of PlainsCapital Corporation, PlainsCapital Bank, or their respective affiliates and/or subsidiaries. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply. All rights reserved. PrimeLending, A PlainsCapital Company (NMLS no: 13649) is a wholly-owned subsidiary of a state-chartered bank and is an exempt lender in the following states: AK, AR, CO, DE, FL, GA, HI, ID, IA, KS, KY, LA, MN, MS, MO, MT, NE, NV, NY, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI, WY. Licensed by: AL State Banking Dept.- consumer credit lic no. MC21004; AZ Dept. of Financial Institutions- mortgage banker lic no. BK 0907334; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act- lender lic no. 4130996; CT Dept. of Banking- lender lic no. ML-13649; D.C. Dept. of Insurance, Securities and Banking- dual authority lic no. MLO13649; IL Dept. of Financial and Professional Regulation- lender lic no. MB.6760635; IN Dept. of Financial Institutions- sub lien lender lic no. 11169; ME Dept. of Professional & Financial Regulation- supervised lender lic no. SLM8285; MD Dept. of Labor, Licensing & Regulation- lender lic no. 11058; Massachusetts Division of Banking– lender & broker license nos. MC5404, MC5406, MC5414, MC5450, MC5405; MI Dept. of Labor & Economic Growth- broker/lender lic nos. FR 0010163 and SR 0012527; Licensed by the New Hampshire Banking Department- lender lic no. 14553-MB; NJ Dept. of Banking and Insurance-lender lic no. 0803658; NM Regulation and Licensing Dept. Financial Institutions Division- lender license no. 01890; ND Dept. of Financial Institutions- money broker lic no. MB101786; RI Division of Banking- lender lic no. 20102678LL and broker lic no. 20102677LB; TX OCCC Reg. Loan License- lic no. 7293; VT Dept. of Banking, Insurance, Securities and Health Care Administration- lender lic no. 6127 and broker lic no. 0964MB; WA Dept. of Financial Institutions-consumer lender lic no. 520-CL-49075; WV Div. of Financial Institutions- lender license ML31704 and broker license MB-31703. PrimeLending, A PlainsCapital Company is an Equal Housing Opportunity Lender. NMLS# 10331

Power Tools Newsletter - 6 Tips to Writing a Press Release That Gets Placed!

Maybe you're announcing a new service, a special event you're hosting, or a great staff member you've added. Wouldn't it be terrific to publicize that announcement with some well-placed positive news stories in the media your target audience uses?

The challenge is getting a story placed. Social media has changed how we interact with the news media; however, the best approach when you want them to run your story is with a traditional press release. This time-honored tool generates interest with journalists and gives them the info they need to go with your story. Here's the structure to make sure you cover all the bases, plus a few ideas to help your release stand out.

1. Hook them with the headline
This is the first thing the media sees, so give them something that gets them to read on. A headline is your story in one sentence, but it has to be compelling. Feature the most exciting part of what you have to say. Spend time on this -- try a few options out on other people.

2. Open smartly
Always start the copy with your city and state and the date of the release, in all capital letters. Then begin your story with a one-sentence summary of what you're announcing. Typically, the opening contains similar information to what's in the headline with a few more facts to draw the reader further into the story. Just keep it simple.

3. Go into the details
This is where you cover the 5 W's: who, what, where, when and why. Put the most important points first. Make this section three to five paragraphs long, but keep each paragraph short. It's great to include a quote from someone in your organization or even an outside expert. This gives you an opportunity to hit your main points again, while putting a human touch on the announcement. A quote can also be a great way to end the story.

4. Time for some boilerplate
Now that you've written everything about your announcement, end with your boilerplate. This is a standardized piece of text you'll add to all your press releases. It's one paragraph that describes your business, so journalists can quickly get familiar with your brand. Boilerplate is typically three to five sentences long and features key facts you want to highlight. These could include your marketing area, the number of clients you've worked with and awards and distinctions you've won. Put "About" with your business name in bold above this copy to make it clear it's the boilerplate. You can also set the boilerplate in italics.

5. Finish with your contacts
Here's where to tack on the name and contact details of the person the media can get in touch with to answer any questions about the release. This could be you, a colleague, an in-house public relations person or an outside agency. Just make sure that whoever it is has been prepped to answer the media's questions on your behalf.

6. Stand out from the crowd
Press releases may have been around forever, but they don't have to be boring! Here's how to catch the media's attention:

• Photos -- Include photos that show what you're announcing, even screen shots. Nothing tells a story like a picture.
• Video Links -- Link the journalist to a video of someone talking about the announcement, or testimonials from clients (with their permission) who are thrilled with what you're launching.
• Stats -- The media loves statistics because they lend credibility to what they're reporting. Try to come up with numbers and percentages that relate to your story. Perhaps calculate the size of your market or its rate of growth.

Above all, check that the details and facts in your press release are accurate and reflect well on your company. Then send the release off to your key media outlets and follow up in a few days to see if they have questions. One or two good media placements can really help your business.... Enjoy a great month!

 

This e-mail is an advertisement for Dan Davidson. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice, or a commitment to lend. Although the material is deemed to be accurate and reliable, there is no guarantee of its accuracy. The material contained in the newsletter is the property of PrimeLending, A PlainsCapital Company and cannot be reproduced for any use without prior written consent. It is designed for real estate and other financial professionals only. The material does not represent the opinion of PrimeLending, A PlainsCapital Company. © 2012 PrimeLending, A PlainsCapital Company. Trade/service marks are the property of PlainsCapital Corporation, PlainsCapital Bank, or their respective affiliates and/or subsidiaries. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply. All rights reserved. PrimeLending, A PlainsCapital Company (NMLS no: 13649) is a wholly-owned subsidiary of a state-chartered bank and is an exempt lender in the following states: AK, AR, CO, DE, FL, GA, HI, ID, IA, KS, KY, LA, MN, MS, MO, MT, NE, NV, NY, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI, WY. Licensed by: AL State Banking Dept.- consumer credit lic no. MC21004; AZ Dept. of Financial Institutions- mortgage banker lic no. BK 0907334; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act- lender lic no. 4130996; CT Dept. of Banking- lender lic no. ML-13649; D.C. Dept. of Insurance, Securities and Banking- dual authority lic no. MLO13649; IL Dept. of Financial and Professional Regulation- lender lic no. MB.6760635; IN Dept. of Financial Institutions- sub lien lender lic no. 11169; ME Dept. of Professional & Financial Regulation- supervised lender lic no. SLM8285; MD Dept. of Labor, Licensing & Regulation- lender lic no. 11058; Massachusetts Division of Banking– lender & broker license nos. MC5404, MC5406, MC5414, MC5450, MC5405; MI Dept. of Labor & Economic Growth- broker/lender lic nos. FR 0010163 and SR 0012527; Licensed by the New Hampshire Banking Department- lender lic no. 14553-MB; NJ Dept. of Banking and Insurance-lender lic no. 0803658; NM Regulation and Licensing Dept. Financial Institutions Division- lender license no. 01890; ND Dept. of Financial Institutions- money broker lic no. MB101786; RI Division of Banking- lender lic no. 20102678LL and broker lic no. 20102677LB; TX OCCC Reg. Loan License- lic no. 7293; VT Dept. of Banking, Insurance, Securities and Health Care Administration- lender lic no. 6127 and broker lic no. 0964MB; WA Dept. of Financial Institutions-consumer lender lic no. 520-CL-49075; WV Div. of Financial Institutions- lender license ML31704 and broker license MB-31703. PrimeLending, A PlainsCapital Company is an Equal Housing Opportunity Lender. NMLS# 10331

Home and Wealth Newsletter - 10 low-cost home staging tips – PLUS 6 ways to boost your smartphone's battery life

Research shows that staged homes sell quicker. You don't need to hire a professional stager, though; just get a second opinion of your work from a friend with a good eye for how things look. Here are 10 self-staging tips:

1. Freshen the Paint. Put a fresh coat of paint on walls and trim. Use neutral colors and think about painting the exterior too if you think it needs it.

2. Fill Empty Wall Space. Bare walls make your home feel cold. Put up framed artwork, mirrors or photography. Be creative -- hang plates, driftwood or interesting found objects!

3. Treat the TV like Art. A flat-screen TV on the wall can be a piece of art. Connect it to a DVD player or computer and play a silent slide show of scenes from nature. Remove TVs from bedrooms.

4. Furnish All Rooms. Buyers have trouble seeing themselves living in a space that's empty. Don't use a lot of furniture and avoid bold patterns. Add pillows and throws for pops of color.

5. Install Window Treatments. Blank windows feel sterile. Put up a simple curtain rod and solid color drapes for a cozy feeling and a nicely framed view outside.

6. Tidy Up the Bookshelves. Get rid of clutter on shelves and remove book jackets to create a decorative focal point.

7. Add Flowers. Fresh-cut flowers and plants add life. Avoid using pastic flowers and trees-- they look dated.

8. Make Bedrooms Gender-neutral. Keep colors neutral, with simple white bedding for a fresh look.

9. De-clutter everywhere. Remove personal items from rooms -- family photos, collectibles, mail, magazines, and toys. Tidy up closets. In the kitchen, take small appliances off counter tops; organize food and dishes in cupboards.

10. Keep Up the Yard. Make sure your yard looks neat and well taken care of. Cut the grass before the buyer visits.

BATTERY BOOSTERS FOR SMARTPHONES

Streaming movies and video chats on smartphones are great, but not for their batteries. Here's how to get more from each charge.

1. Check Settings. Anything constantly getting data drains the battery. Go to settings and turn off apps' access to GPS and automatic checking for emails. Turn off WiFi when not in a place where you want to use it. Look for advanced battery-saving modes that adjust brightness and other power-draining factors.

2. Use WiFi Wherever You Can. When WiFi is available, turn on the WiFi setting. WiFi saves data charges and power, especially when downloading large files or watching videos. Faster and stronger WiFi connections use less power.

3. Keep It Charged. For your first few charges on a new phone, let the battery drain almost completely to condition it for a fuller charge. But after that, charge the phone nightly no matter how much power is left.

4. Try a Portable Booster. Portable spare batteries are available to charge phones, tablets and other mobile devices when away from a power source. 

5. Use a Powered Case. These are protective phone cases with backup batteries. Unfortunately, they increase the size and weight of the phone, cost more than standard cases and you do have to charge them.

6. Turn off 4G. Don't enable 4G unless you're in a known 4G area. 4G networks are not yet widely available, so the phone drains power looking for a connection.

Would you like to know more about financing or refinancing your home or about funding home improvements? Please call or email us – we're always here to help.... Have a great day!

PS  Each month shows more evidence the housing market is recovering in many areas. But prices are still very affordable and mortgage rates remain near record lows. But it's a good idea to get the financing process started early. So if you're thinking about buying or refinancing, please call or email us now to talk about your situation.

This was sent to you because of your relationship with Dan Davidson. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice or a commitment to lend. Although the material is deemed to be accurate and reliable, there is no guarantee of its accuracy. The material contained in the newsletter is the property of PrimeLending, A PlainsCapital Company and cannot be reproduced for any use without prior written consent. PrimeLending, A PlainsCapital Company is an Equal Housing Lender. © 2012 PrimeLending, A PlainsCapital Company. Trade/service marks are the property of PlainsCapital Corporation, PlainsCapital Bank, or their respective affiliates and/or subsidiaries. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply. All rights reserved. PrimeLending, A PlainsCapital Company (NMLS no: 13649) is a wholly-owned subsidiary of a state-chartered bank and is an exempt lender in the following states: AK, AR, CO, DE, FL, GA, HI, ID, IA, KS, KY, LA, MN, MS, MO, MT, NE, NV, NY, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI, WY. Licensed by: AL State Banking Dept.- consumer credit lic no. MC21004; AZ Dept. of Financial Institutions- mortgage banker lic no. BK 0907334; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act- lender lic no. 4130996; CT Dept. of Banking- lender lic no. ML-13649; D.C. Dept. of Insurance, Securities and Banking- dual authority lic no. MLO13649; IL Dept. of Financial and Professional Regulation- lender lic no. MB.6760635; IN Dept. of Financial Institutions- sub lien lender lic no. 11169; ME Dept. of Professional & Financial Regulation- supervised lender lic no. SLM8285; MD Dept. of Labor, Licensing & Regulation- lender lic no. 11058; Massachusetts Division of Banking– lender & broker license nos. MC5404, MC5406, MC5414, MC5450, MC5405; MI Dept. of Labor & Economic Growth- broker/lender lic nos. FR 0010163 and SR 0012527; Licensed by the New Hampshire Banking Department- lender lic no. 14553-MB; NJ Dept. of Banking and Insurance-lender lic no. 0803658; NM Regulation and Licensing Dept. Financial Institutions Division- lender license no. 01890; ND Dept. of Financial Institutions- money broker lic no. MB101786; RI Division of Banking- lender lic no. 20102678LL and broker lic no. 20102677LB; TX OCCC Reg. Loan License- lic no. 7293; VT Dept. of Banking, Insurance, Securities and Health Care Administration- lender lic no. 6127 and broker lic no. 0964MB; WA Dept. of Financial Institutions-consumer lender lic no. 520-CL-49075; WV Div. of Financial Institutions- lender license ML31704 and broker license MB-31703. PrimeLending, A PlainsCapital Company is an Equal Housing Opportunity Lender. NMLS# 10331

Inside Lending Newsletter - For the week of August 13, 2012 – Vol. 10, Issue 33

Market Update  QUOTE OF THE WEEK... "Actions are the seed of fate. Deeds grow into destiny." --Harry S. Truman, 33rd President of the United States INFO THAT HITS US WHERE WE LIVE... Some of the actions we're seeing in the housing market should lead us to a better destiny. The National Association of Realtors (NAR) reported median sale prices for single-family homes posted year-over-year gains in Q2 in 110 of 147 markets. This is up from 74 markets showing annual price appreciation in Q1. The national median sale price of existing single-family homes in Q2 was up 7.3% over a year ago, the biggest annual increase in six years! Total existing home sales in Q2 came in at a seasonally adjusted annual rate of 4.54 million. Many indicators point to a bottom forming -- new home inventories are at historic lows, home builder sentiment has turned around and home prices have gone up, seasonally adjusted, 4 months in a row. But some economists still aren't convinced we have momentum, the #1 driver of home prices. That's because the #2 driver, the unemployment rate, is still up at 8.3%. BUSINESS TIP OF THE WEEK... Always share the credit. When you do, co-workers and clients feel a sense of ownership in the idea or effort and a closer relationship with you. >> Review of Last Week CREEPING BULL MARKET... It certainly wasn't a raging bull market -- creeping is a more apt description of last week's bullish move --  yet stocks scored their fifth straight weekly gain. All three market indexes ended above psychologically important levels -- the Dow above 13,000, the S&P 500 north of 1400 and the Nasdaq over 3,000! The equity market is seen as a leading indicator for the economy, so it's good to see both currently going in the proper direction, albeit at a very slow and painful pace. Europe stayed quiet, but China disappointed with industrial output growth at a three-year low. Over here, we had our now familiar you-win-some, you-lose-some economic readings. Initial Weekly Jobless Claims were down to 361,000, but Continuing Claims rose to 3.33 million. The June Trade Deficit came in lower than expected at $42.9 billion, but May was revised upward to $48.0 billion. Preliminary Q2 Nonfarm Productivity was at a 1.6% annual rate, not exactly booming, up only 1.1% over last year. Manufacturing Productivity was up at just a 0.2% annual rate, way lower than Q1. Oh, and the Federal Deficit? $69.6 billion for July! For the week, the Dow ended UP 0.9%, to 13208; the S&P 500 was UP 1.1%, to 1406; and the Nasdaq was UP 1.8%, to 3021.  Treasuries, and bond prices in general, were under pressure last week, as the European debt melodrama delivered no big news, so investors headed back to riskier stocks. The FNMA 3.5% bond we watch didn't do too badly, ending the week down just .14, at $105.12. National average mortgage rates were up slightly again, but still well below rates of a year ago.  DID YOU KNOW?... First-time home buyers, who have historically accounted for 40% of home purchases, bought 34% of all homes in Q2, up from 33% in Q1. >> This Week’s Forecast RETAIL SALES, INFLATION, MANUFACTURING, HOME BUILDING... This week features a little bit of everything economic including the monthly look at homebuilding. Thursday's July Housing Starts and Building Permits should continue their upward slog. Retail Sales are expected back in growth territory for July, showing the consumer is still in the game. Inflation, forecast at 0.2% for both wholesale (PPI) and consumer (CPI) prices, is a little hot but still within Fed guidelines. There are a slew of manufacturing reads -- for August, the NY Empire Index is forecast down and the Philadelphia Fed Index looks to be negative, but overall Industrial Production for July is expected to show modest growth. >> The Week’s Economic Indicator Calendar Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates. Economic Calendar for the Week of Aug 13 – Aug 17  Date Time (ET) Release For Consensus Prior Impact Tu Aug 14 08:30 Retail Sales Jul 0.2% –0.5% HIGH Tu Aug 14 08:30 Retail Sales ex-auto Jul 0.3% –0.4% HIGH Tu Aug 14 08:30 Producer Price Index (PPI) Jul 0.2% 0.1% Moderate Tu Aug 14 08:30 Core PPI Jul 0.2% 0.2% Moderate Tu Aug 14 10:00 Business Inventories Jun 0.2% 0.3% Moderate W Aug 15 08:30 Consumer Price Index (CPI) Jul 0.2% 0.0% HIGH W Aug 15 08:30 Core CPI Jul 0.2% 0.2% HIGH W Aug 15 08:30 NY Empire Manufacturing Index Aug 5.0 7.4 Moderate W Aug 15 09:15 Industrial Production Jul 0.6% 0.4% Moderate W Aug 15 09:15 Capacity Utilization Jul 79.3% 78.9% Moderate W Aug 15 10:30 Crude Inventories 08/11 NA –3.729M Moderate Th Aug 16 08:30 Initial Unemployment Claims 08/11 368K 361K Moderate Th Aug 16 08:30 Continuing Unemployment Claims 08/04 3.300M 3.332M Moderate Th Aug 16 08:30 Housing Starts Jul 763K 760K Moderate Th Aug 16 08:30 Building Permits Jul 770K 755K Moderate Th Aug 16 10:00 Philadelphia Fed Manufacturing Index Aug –5.0 –12.9 HIGH F Aug 17 09:55 Univ. of Michigan Consumer Sentiment Aug 72.2 72.3 Moderate F Aug 17 10:00 Leading Economic Indicators (LEI) Index Jul 0.2% –0.3% Moderate >> Federal Reserve Watch    Forecasting Federal Reserve policy changes in coming months... The Fed does not expect to raise the Funds Rate until late 2014. Economists don't believe they'll have to. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same. Current Fed Funds Rate: 0%–0.25% After FOMC meeting on: Consensus Sep 13 0%–0.25% Oct 24 0%–0.25% Dec 12 0%–0.25% Probability of change from current policy: After FOMC meeting on: Consensus Sep 13      <1 span="span"> Oct 24      <1 span="span"> Dec 12      <1 span="span"> UIE

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