Financial Update

· TSX +231.58pts (Reuters) as the key resource and financial sectors were lifted by commodity prices and a rally by Canadian banks. All the major banks rose as the heavy hitters release their quarterly results this week, culminating in reports from 3 institutions, including Royal Bank of Canada , which rose 2.7%
· Dow +89.64pts
· Dollar +.15c to $95.53US
· Oil +$1.88to $118.15US per barrel -3rd day of gains as Tropical Storm Gustav was expected to intensify into a hurricane that could threaten U.S. oil and natural gas production in the Gulf of Mexico.
· Gold +5.90to $834.00US per ounce

Often a mortgage originator with integrity and honesty, will question the need to verify documents that seem legitimate. Please see article below from the National Post which emphasizes the severity of fraud in our industry and the amount of damage just two people can cause.

Two charged in $30-million real estate fraud

VANCOUVER -- A marathon investigation into one of the biggest financial frauds in B.C. history has led to multiple criminal charges being filed against former Vancouver lawyer Martin Wirick and Vancouver real-estate developer Tarsem Singh Gill.

Both men were arrested Tuesday after a six-year investigation.

Messrs. Wirick and Gill are charged with two counts of fraud and theft against 77 different homeowners, and two counts of fraud and theft against lenders in 30 different loan transactions. Mr. Wirick is also charged with two counts of uttering false documents and Mr. Gill with one count of possession of stolen property.

The total amount of money alleged to have been unlawfully taken from homeowners and lenders exceeds $30-million.

Three Fannie Mae execs out

NEW YORK (Reuters) - Fannie Mae the biggest U.S. mortgage finance company, on Wednesday announced a shake-up of top executives, including the exit of its chief financial officer, in an effort to better implement a plan to preserve capital and cut losses.

Fannie Mae announced management changes amid a storm of controversy over its ability to survive a wave of mortgage defaults that have caused four straight quarters of losses and recent speculation a government bail-out was near. But the board is "firmly committed" to Chief Executive Officer Daniel Mudd, Chairman Stephen Ashley said in a statement .

Stephen Swad, who was CFO since early 2007 and helped Fannie return to timely filing of financial statements following a major accounting scandal, was replaced by Fannie Mae Controller David Hisey, the company said. Peter Niculescu, head of capital markets, will replace Robert Levin as chief business officer. Fannie Mae's chief risk officer, Enrico Dallavecchia, will also leave.

The changes "signal they are trying to correct some problems," said David Dreman, chairman of Jersey City, New Jersey-based Dreman Value Management, LLC, a Fannie Mae and Freddie Mac shareholder. "When you change risk management people, it has to be viewed as recognizing problems, so it is mildly positive."