The Home Valuation Code of Conduct has been in place for almost 2 months now and is causing frustration not only to those in the industry, but also to millions of consumers who have recently been involved in a lending transaction. Here are some FAQs…

Property Tax Reflief - http://www.chicagotitlesd.com/april09/MFNewsProp809CT2sform.pdf

Loan Modification - Is it ethical?

AB 957 - The “Buyer’s Choice” Act

The program is finally here. That’s right…many of Americans may now be eligible to refinance their existing home loan even if they are upside down. Here is the tricky part. Your loan must currently be owned by either Fannie Mae, or Freddie Mac, in order to be considered. Most people have no clue who REALLY owns their loan. Visit these two sites to determine whether your loan is owned by Fannie, or Freddie.

http://loanlookup.fanniemae.com/loanlookup/

https://ww3.freddiemac.com/corporate/

If either agency owns your mortgage than you may just be a candidate. Learn More.

Kory Kavanewsky
Mortgage Consultant
(619) 554.1327

Mortgage veteran, Bill Dallas, joined me on the show a few weeks back and shed some light on good and bad things lingering within the mortgage/real estate market. Check out the show.

Also, if you have not seen House of Cards, where CNBC correspondent David Faber investigates the origins of the global economic crisis, with first person accounts from home buyers, mortgage brokers, investment bankers and investors then I suggest you check it out. Set your DVR. Here is the re-air schedule.

The new tax credit will be a discussion topic for today’s show. Here is a link full of things that you need to know and nothing you don’t.

http://www.fgrouponline.com/client_resources/tax_credit.pdf

The 2008 stimulus package increased the reverse mortgage limit to $417,000 in effort to aid the many millions of seniors faced with the financial challenges brought on by a turbulent stock market and troubled economy.  The losses have only become more dramatic so far this year leaving many seniors in search of ways to get by financially.  Obama’s 2009 stimulus package addresses this concern for senior homeowners by increasing the limit further to match the Fannie/Freddie limit of $625K.  Here is the news as announced by the National Reverse Mortgage Lender’s Association.

NRMLA is pleased to report that the compromise package approved by the House-Senate conference committee yesterday does indeed set the HECM loan limit at 150% of the Freddie Mac limit, which would put it at $625,500 — for the balance of 2009.

Please remember that after President Obama signs the bill, HUD still must issue a Mortgagee Letter to implement the change. From our previous experience, we have learned that there is no telling exactly how long it will take for them to get this done, but with the temporary nature of this provision, we hope that they will act expeditiously.

David Iwashita, President of Iwashita Real Estate Development, joined me on the air on Monday to discuss his exciting project in Coronado. Here is a link to the units with more information.

Existing Home Sales came in a bit better than expected at 4.7M when estimates were for only 4.40M. Mortgage rates are low and with sales prices suffering it seems that many are taking advantage.

In an attempt to drive mortgage interest rates down, the Fed will buy $500 billion of mortgage-backed securities during the first 6 months of 2009. The plan (”Government Sponsored Entities Purchase Program”), originally announced on 11/25/08, will result in the government buying securities that have been guaranteed by Fannie Mae, Freddie Mac, Ginnie Mae and Federal Home Loan Banks (source: USA Today).

Linda Ferrari, author of The Big Score, will be on the show today. Don’t miss the interview and a chance to win a FREE copy her latest seller.

Not feeling so lucky? Purchase the book right here, right now.

What we do know is over the recent economic boom which started with a great injection of luquidity in 2003 our economy has finally hit a wall.  Easy loans meant easy money which injected nearly $2.3 trillion into our GDP from 2003 to 2006.  This great creation of money was in large part funny money, recklessly lent, artificially distorting the actual cash value of our economy and its assets contained within.  This means the value of our economy, stock market and homes were inflated to a level we may not see again for a very long time.      

The hang over from this drunken spending has started to hit all Americans from the wealthiest to the least privileged. The effects of our credit crisis, economic meltdown, recession, depression, financial meltdown, foreclosure epidemic, sub-prime debacle, or whatever you like to call it will escape no one.  We are all going to be effected by this financial storm we find ourselves in.  The old saying “the bottom half manages the top half” couldn’t be more true.  

Credit is being retracted, homes are dropping in value, the stock market is down more than 50% and the government is taking drastic steps to medicate the pain.  But much like a pain killer that masks the true problem these measures may just delay the inevitable.  There are countless foreclosures to still hit the market, and loan modifications are predictably defaulting at a greater than 50% clip.   

What is the silver lining and why rehash all this bad news?  Even with all this doom and gloom the Fed finally made a wise decision to start using TARP (Troubled Asset Relief Program) bail out money to buy mortgage backed securities from the “Agencies” (Fannie Mae and Freddie Mac).  This means are mortgage rates have dropped and are going to remain at a lower level for the foreseeable future.  More than likely you’ve made the right financial decisions as 90% of us have and are frustrated by all this.  Instead of fighting the inevitable use this opportunity to reevaluate your investments and lower the interest rates on your long term mortgage debt.  

As a market geek in order to form my opinions I spend a lot of time listening to the pros who also saw this problem coming.  Please follow the below link to a conference call recording from TCW Chief Investment Officer Jeffrey Gundlach that is very enlightening.  During the call Jeffrey lays out how the problem came to be with Bogadollars, what we can do to hedge our investments against it, and what the future may hold.  There is also an accompanying presentation slides that illustrate the points Jeffrey covers.  Happy listening, he has a great strategy that makes a lot of sense. 

Presentation Audio

Bogadollar

Slides   

Slides