Released on = December 18, 2006, 10:42 am

Press Release Author = Michael Blackburn / Perfect Home Living

Industry = Financial

Press Release Summary = Consumers high debt to income ratio along with past payment
problems, that have more of America\'s home buyers squeezing into sub-prime loans.

Press Release Body = Salt Lake City, UT / December 18, 2006 / Press Release / --
Today\'s consumers are learning that they could be in real trouble when it comes to
getting out from under the financing of their home. As Adjustable Rate Mortgages
(ARMS) continue their upward spiral, consumers are fast to leave them in the dust
but with pre-payment penalties lingering overhead, getting rid of those ARMS is
proving to be costly.
But its consumers high debt to income ratio along with past payment problems, that
have more of America\'s home buyers squeezing into sub-prime loans. Loans that allow
lenders to charge high percentage points to high risk consumers, which makes the
subprime mortgage industry one of the most profitable.

Over the past few years the subprime lending market has been one of the fastest
growing markets eclipsing $625 billion up from $120 billion in 2001, according to
John Bancroft of Inside Mortgage Finance.

As the saying goes with risky borrowers comes risky loans and in the past such
profit meant healthy profits, but not anymore. \"Fraud for housing and for profit
schemes are causing consumers and \'real estate investors\' to default within the
first 30 - 90 days of the loan,\" says Sheri Fitzpatrick, Utah Real Estate Broker and
CEO of the non-profit Perfect Home Living INC. What hasn\'t been taken into account
is the long term affect this type of crime has on every day Americans,\" Fitzpatrick
added.

As Perfect Home Living previously reported the subprime market is rethinking its
strategy and for some that means exiting the business entirely.

Based on current performance 2006 is already on track to be one of the worst years
ever for subprime loans according to UBS AG. In the article \"More Borrowers With
Risky Loans Are Falling Behind\" written by by Ruth Simon and James R. Hagerty of the
Wall Street Journal, Thomas Zimmerman the head of asset backed securities research
for UBS AG states there have been roughly 80,000 subprime borrowers who took out
mortgages packaged into securities this year that are behind on their mortgage
payments.

Feeling the pressure of bad loans, Ownit Mortgage Solutions of Agoura Hills,
California, which Merrill Lynch owned a 20% stake in without notice on December 6th
closed its doors forever. According to sources within the company, Ownit Mortgage
made $5.5 billion in loans during the first half of 2006 and according to
speculation was cut off from funding by JP Morgan Chase and Company as well as
Merrill Lynch.

H&R Block INC which owns Option One says its subprime unit posted a pretax loss of
$39 million in the fiscal second quarter ending October 31, of this year and will be
closing 12 of its branch locations. H&R Block previously suggested that it may be
willing to sale off Option One via the CDO market.

Staggered by the possibility of having to repurchase its loans Sebring Capital, a
Texas based subprime lender that used warehouse lines of credit has closed its doors
last week.

KeyCorp last week sold off its subprime lending unit for approximately $130 million
far short of the $250 million expected from the sale. KeyCorp stated it was leaving
the subprime market entirely because it no longer fit the company\'s long-term
strategic priorities.

\"As more of the housing markets become saturated housing prices will drop and
consumers facing financial difficulty as the result of a subprime loan will find it
increasingly difficult to sell their home. And for those investing in the markets
that believe this doesn\'t affect them, well your wrong. Subprime mortgage-backed
securities can be found in hot ticket items like hedge funds and the CDO markets
where so much of today\'s investor dollars are spent,\" Fitzpatrick added.

About Perfect Home Living

Perfect Home Living assists in implementing programs and providing training to
financial lenders as well as educating Utah\'s consumers and licensed professionals
to red flags within Utah\'s real estate market. For more information or to request
assistance please visit us online at: http://www.PerfectHomeLiving.com


Web Site = http://www.perfecthomeliving.com/subprimemarketfailsdoorsclose.htm

Contact Details = Perfect Home Living
1905 West 4700 South #353
Salt Lake City, UT 84118
Tel: 801.502.2508
Fax: 801.528.3321
michael@perfecthomeliving.com