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Ann Heinz Of Kensington Mortgage-Looming "Credit Crisis" News Needs To Go

BrokerIPTV : Today we are talking with Ann Heinz, President of Kensington Mortgage. Ann thanks for being with us. Good to have you.

Ann Heinz: Thank you.

BrokerIPTV : The whole crises in mortgage, homes, dropping in values, over correction, correction, what ever, you want a call it, was it over due?

Ann Heinz: Yes, I think that, we were just getting too deep in with the appreciation that happened. It forgives a lot of sins and so then the products started to loosen up and credit standards, we really went too far and so I think the correction is good and I think it was time.

BrokerIPTV : Wall Street likes to say, it was that most home values were over priced by at least 10% and then we had hit 10% correction in the summer, is that about right?

Ann Heinz: I think that's true.

BrokerIPTV : When we talk about the "summer crash." Are we talking about over valved homes, bad mortgages, bad lenders, unqualified customers or all the above?

Ann Heinz: All of the above. I think that initially the products that were offered. The products that would put out on the self, so to speak, some of those products should never have come to the market place. Pay-Option Arms is not a good product and you have basically people paying, what I think as low interest rate and then you are not paying the true interest rate. The difference between let us say 1% and 8%, or that 7% is getting added on to the back of your mortgage.

BrokerIPTV : Since you brought up those rates, President Bush made an announcement with Secretary Paulson, they going to make an attempt to bring the parties together, may be freeze some of those it adjusting Arms. Good plan, bad plan any different?

Ann Heinz: Well it is hard to say. I think that what is difficult is that there is also some backlash that coming into play from people who have play by rules and they are able to make their payments and they are saying, "why are we being panelized, because we did was right," yet these people are going to able to have their interest rates frozen, I think some times we just have to do what good for the whole and in this case, I think we have to have a plan like this.

BrokerIPTV : And if you are in the credit counseling business, you got a lot of the work?

Ann Heinz: [laugh] Yes, we do.

BrokerIPTV : lower interest rate. I mean we talk the little bit about this, we seen three quarters of the point a last three months. Is this good?

Ann Heinz: I think it is good, I think that, It will help a little bit. It help some of the people how maybe sitting on the fence, that they would look forward perhaps I think what really has to be resolved, however, is this feeling that is living credit crises is constantly coming.

BrokerIPTV : It seems like FHA is back in style.

Ann Heinz: Yes, yes it is.

BrokerIPTV : It had never gone way?

Ann Heinz: No, but it is back in style. We are people who have VA eligibility as well as well using that, which before they would not. So, all those things were coming back in, 3-2-1 buy downs, that I have not seen for 20 years. They are coming back.

BrokerIPTV : Yeah, [Inaudible].

Ann Heinz: That is right.

BrokerIPTV : They are now, thanks so much, great information,

Ann Heinz: Well, thank you.

BrokerIPTV : Appreciate it. Ann Heinz: Appreciate your interview, thanks.