Found this on Dan Greens Blog. Dan is a past HREU Superstar….listen to the interview here.

“In a move that will stymie thousands of American home buyers and homeowners, Fannie Mae announced another round of mortgage guidelines changes last week.

Unlike past revisions in which Fannie Mae tightened debt ratio and credit scoring requirements, however, the newest underwriting updates zero in home equity and home buyer downpayments.

This is consistent with the emerging underwriting philosophy that Collateral is King.

Paraphrasing Jeff Spicoli:

No home equity, no downpayment, no dice.

Effective December 13, 2008, Fannie Mae will enforce the following single-family residence restrictions:

• Primary residence, “cash out” refinances are limited to 85% loan-to-value
• Second home, cash out refinances are limited to 75% loan-to-value
• Investment properties cannot be refinanced without a 25% equity position

Each bullet point represents a 5 percent tightening over the previous guidelines.

Now, to be clear, Fannie Mae isn’t the only source for mortgage money.  To date, the others — comprising the FHA, the VA, and an innumerable amount of portfolio lenders — have yet to announce similar loan-to-value restrictions.

But, because Fannie Mae (along with Freddie Mac) guarantees almost half of the nation’s home loans, it does swing a big stick. Historically, when Fannie Mae gets tight with its money, the other groups tend to follow.

Starting 60 days from now, qualifying for a conforming mortgage will require more home equity than at any time since 2003.

Now, there are a lot of people sitting around right now, waiting for mortgage rates to fall before buying or refinancing their home.

I’d offer a more prudent idea: Just get on with it already.

None of us can predict what where mortgage rates will go.  Recession, inflation, whatever — it’s a big mystery. But, we do know with 100% certainty that guidelines will tighten effective December 13, 2008, and it will prohibit Americans from getting access to mortgages.

We know this because Fannie Mae published it on its Web site.

If you’re buying a home or in need of a refinance, consider moving up your timeline.  If rates fall after-the-fact, you can always try to refinance into something less expensive.  But if guidelines shut you out, there’s nothing you can do about in hindsight.

If you know you need mortgage money now, just take care of it.  Great low rates don’t mean a thing if you can’t get qualified.  And starting December 13, 2008, the qualifying hurdles are going to be raised.”

(Images courtesy: Free Republic, The Wall Street Journal Online)

Ok, this post falls under the category of “Doom and Gloom”

That is, if you are not already doing (and loving) short sales….

If you are not already taking REO listings…

Reports like this one can be down right depressing.

The simple fact is that in this market there are two kinds of agents. Those who have the mindset of service and completely embrace the opportunites THIS market has to offer….

And those agents who are hiding under a rock…

House prices in 20 U.S. cities declined in July at the fastest pace on record, signaling the worst housing recession in a generation had yet to trough even before this month’s credit crisis.

The S&P/Case-Shiller home-price index dropped 16.3 percent from a year earlier, more than forecast, after a 15.9 percent decline in June. The gauge has fallen every month since January 2007, and year-over-year records began in 2001.

The housing slump is at the center of the meltdown in financial markets as declining demand pushes down property values and causes foreclosures to mount. Banks will probably stiffen lending rules even more in coming months to limit losses, indicating residential real estate will keep contracting and consumer spending will continue to falter.

“The fact that house prices quickened their slide before the worst point in credit markets hit this month does not bode well,” said Derek Holt, an economist at Scotia Capital Inc. in Toronto.

More Cities Down

Prices dropped in 13 cities month-over-month, compared with 11 in June. Las Vegas saw values fall 2.8 percent in July, the largest decline.

Economists forecast the 20-city index would fall 16 percent from a year earlier. Projections ranged from declines of 14.5 percent to 16.5 percent.

Compared with a year earlier, all 20 areas showed a decrease in prices in July, led by a 30 percent drop in Las Vegas and a 29 percent decline in Phoenix.

“While some cities did show some marginal improvement over last month’s data, there is still very little evidence of any particular region experiencing an absolute turnaround,” David Blitzer, chairman of the index committee at S&P, said in a statement.

Other Measures

Other reports show price declines continue. The National Association of Realtors said Sept. 24 that the median price of an existing home fell 9.5 percent in August from a year earlier, compared with an 8 percent drop in July. The following day, the Commerce Department said the median price of new homes fell 6.2 percent in August from a year earlier, following a 4.6 percent drop the prior month.

Sales of previously owned homes fell 2.2 percent in August from the prior month and were 32 percent below their historic high reached in September 2005.

Clearly the greatest opportunity in this market is taking knowing how to successfully listing and closing short sale listings. Get started now. Download your free 7 part Agent Short Sale Secrets crash course. Instant free download now.

Yesterday the stock market fell by nearly 800 points!

But did you notice that the price of oil fell 10 bucks?

Gasoline prices fell sharply. I mean very sharply.

In the next 30-60 days, we will experience a lot lower prices at the gas pump.

The prices of grains fell. The prices of everything fell.

So you’ll pay lower prices at the supermarket.

That’s GREAT news!!

But did the media talk about that? No. They are all about bad news bad news bad news.

The bailout failure was a triumph of democracy for a change. Great news for taxpayers.
Guess what….our representatives actually listened to us….

In an interview one Republican Senator said that he had to vote against

the bill because he has been receiving calls and emails telling him 100:1 not to vote for it.

And the measly drop in stock prices…the headlines today…hey, who cares. I own a bunch of stocks and last time I checked, they go down as well as up.

Haven’t you found that you are better off if you simply ignore the news? How about this…for the next 30 days have 100% Media Free Lives. Challenge yourself…no TV, No Radio, No Newspapers..nothing. No Media.

Think if you clear your mind of the media clutter you will have a better mindset?

Newspaper and television reporters are not the brightest people. And they are negative people by profession.

Do you know that good news doesn’t sell? Bad news sells. So we all go around the day with bad news everywhere, including what plays in our heads.

I don’t want bad news to play in my head. I want good news. I make my own news. I meditate and talk to myself with positive self-talk. And I don’t pay attention to the news headlines and take it seriously.

Prices of houses and food and gasoline and oil are falling and that means we will get back to a reasonable price level.

The media are mistaken: prices falling is good news.

The sooner prices fall, the quicker we can get on to recovering from this debacle. The bailout was a disasterous attempt by the Powers That Beto keep prices high.

Congress did one bright thing. They said “no.”

Now, you say YES and grab your free copy of the 7 part Agent Short Sale Secrets Crash course. Free Instant Download Now.

WOW….

Todays Agent REO Secrets teleconference was amazing.
Based on the feedback after the call….we helped hundreds of you learn exactly
how to cash in on the REO listings cash machine.

We received dozens of emails asking for a copy of today’s REO call. And if you
missed today’s call here is your opportunity to learn exactly how to take REOs now.

Here is the link to the replay of todays call. LISTEN NOW:

http://instantTeleseminar.com/?eventid=3319059 ←—————-LISTEN NOW.

You will hear directly from  2 agents who have become REO listing machines…

#     Mark, an agent from LA who just started listing REOs 3 months ago …
and he is now taking 4-6 new listings directly from REOs per week.
He is making more money and its taking 50% less time and effort.

#     You will hear from Nick. You won’t believe Nick’s REO experience…
He is listing 300 homes directly from ONE REO source this week.
That is not a typo…300 listings. You will learn exactly how he is doing it…
We are holding nothing back! Nick will share you the names of the REO companies
he is working with. You want this info now.

We only had 300 spots available for this teleconference.
If you couldn’t attend today or you’re locked out because all the spots were taken
..you can still learn now what you need to know about REOs.

Here is your opportunity to LISTEN NOW:

http://instantTeleseminar.com/?eventid=3319059 ←—— Go Here Now. Call REPLAY

When you listen to the replay of this event here is what you will learn:

#     How to contact the lenders…YES…we are giving out names and numbers of
the largest REO companies.
#     We will tell you exactly how to ‘present’ to the REO companies so they will
want to list their homes with you.
#     You will learn the 3 biggest mistakes you must avoid at all costs.
#     How to form your REO team.

On this 90 minute call you will learn our proven step-by-step process to becoming
a REO listing agent. We aren’t holding anything back on this call.
Get ready to take pages of great notes.

Here is the best part about these 2 agents…neither had any REO listings 90 days ago.
They applied what they learned from Agent REO Secrets and are now having their
best years ever.

Here is that link again:

http://instantTeleseminar.com/?eventid=3319059 ←—– Important link. Listen NOW

Realtor coaching, real estate coaching, coaching for real estate agents, Realtor coaching classes, Tim and Julie Harris, Harris Real Estate University, Harris Realtor Coaching, Tim and Julie Realtor coaching.

Due to popular demand (more like dozens of  demanding emails )

We are opening the doors for our Agent REO Secrets class this week.

This is a free event. We have room for about 300 agents for this call.

When you attend this call you will learn:

1) How to form your REO Team.

2) Access to our exclusive top secret list of the banks who are looking for agents to take REO listings.

3) Who to contact at the lenders…names, numbers….we are sharing it all.

4) How to present yourself to the REO departments at the lenders so they choose you over the hundreds of other agents who are looking for REO listings.

5) This is an important one….we will tell you which BPO companies assign REOs and which don’t. Thats right, you may be doing BPOs in anticipation of being assigned an REO listng..but, the company you are doing the BPOs for may not actually assign the REOs.

And loads more must know info.

Almost forgot…we are giving away our new Agent REO Secrets guide book when you go to the link below.

Here is the important link for this Wednesdays call..

AgentREOSecrets.com <—————–Important link. Go here now for the Free Book and Call info.

Get ready to take pages of great notes!

Realtor coaching, real estate coaching, coaching for real estate agents, Realtor coaching classes, Tim and Julie Harris, Harris Real Estate University, Harris Realtor Coaching, Tim and Julie Realtor coaching.

CLICK LINK TO LISTEN TO REPLAY OF TODAY’S CALL. REPLAY NOW AVAILABLE.

Hello,

Tomorrow is FRIDAY!

Like you, we LOVE Fridays…

Here’s why:

F-R-E-E Super Star Interviews.

As you will recall every Friday we interview a real estate Super Star..someone who is doing something exceptional in their real estate business. This teleconference is live.You can ask the tough questions. Really learn how a real estate Super Star thinks, acts and operates in this market.

Be ready to be blown away. Based on your feedback, past interviews (available here) have been amazing.

Tomorrows call will be no exception.

On tomorrows Super Star Interview Julie and I are doing something special..something that we haven’t done is a long time.

You will want to block off the hour and join us tomorrow morning.

Get ready to take pages of great notes.

Here are all the details that you need for tomorrows call. REPLAY NOW AVAILABLE, LISTEN NOW.

EVENT:  Super Star Interview
DATE & TIME: Friday, June 20th at 9:30am Pacific
FORMAT: Simulcast! (Attend via Phone or Webcast — it’s your choice)
TO ATTEND THIS EVENT, CLICK THIS LINK NOW…
http://instantTeleseminar.com/?eventid=3287685

Speak with you soon!

Tim and Julie Harris

P.S. Feel free to forward this to other agents….
Realtor coaching, real estate coaching, coaching for real estate agents, Realtor coaching classes, Tim and Julie Harris, Harris Real Estate University, Harris Realtor Coaching, Tim and Julie Realtor coaching.

The latest look at the national housing market shows an unexpected improvement.

Pending home sales increased in April over March to the highest reading since October, according to the National Association of Realtors. But even with the month-to-month uptick, pending home sales remain more than 13 percent below the number reported a year ago.

The NAR’s Pending Home Sales Index rose 6.3 percent to 88.2 in April from 83 in March.

The index in the South grew 4.6 percent to 88.8, but is 22.5 percent below April 2007.

Bargain hunters have entered the market en masse, especially in areas that have experienced double-digit price declines, but it’s unclear if they are investors or owner-occupants. Sharp price reductions are leading to a quicker discovery of price equilibrium points.

The NAR index said existing-home sales should climb from an annual pace of 5.05 million in the second quarter to 5.83 million in the fourth quarter. Existing-home sales are expected to total 5.4 million in 2008, and then rise 6.3 percent to 5.74 million in 2009.

The aggregate median existing-home price is likely to dip 8.4 percent in the first half of 2008. It will start to stabilize in the second half before rising 4.4 percent next year to $213,900, NAR said.

New-home sales will probably fall 31.7 percent to 529,000, before rising 12.5 percent to 595,000 next year, NAR predicted. Housing starts, including multifamily units, are projected to drop 27.2 percent to 987,000 this year, and then slip 0.6 percent to 980,000 in 2009.

Realtor coaching, real estate coaching, coaching for real estate agents, Realtor coaching classes, Tim and Julie Harris, Harris Real Estate University, Harris Realtor Coaching, Tim and Julie Realtor coaching.