- Appraisal chaos due to new ordering rules and short sales

- High, and still increasing unemployment. Mortgage aid for unemployed

- Collapsing commercial market. Commercial paper falls most ever

- Slow implementation by lenders of loan modification iniatives. Articles

- Lack of ability or willingness to lend. What to do with the Fed

- The Case-Shiller index continues to point towards further declining markets.

What this means in practical terms

- Appraised values as much as 30-40%(!) low, especially for refi’s

- Restrictive lending environment, and tightening up more

- Construction loans virtually unavailable (unless hard money)

- Hard money lenders are raising lending criteria and pricing

- Conventional financing maximum is 90%ltv

- PMI requires 680 Fico

- Higher lending standards and erratic pricing for commercial loans

Good news, opportunities

- Investments with good cash on cash returns available

- Affordable price levels – especially for first time home buyers

- First Time Homebuyer tax credit (must close by Nov 30th!)

- Rehab homes (foreclosures) can be bought with 203(k) loans

- FHA loans, including FHA rehab loans (203k), readily available

- Fannie Mae REO opps with Prospect Mortgage Homepath (rehab) loans

- Higher Fico’s get lower rates

- Rates are not likely to increase (I think)

Available

- Direct lender for FHA, Fannie, Freddy, VA, USDA, Jumbo, and other loans

- Same day loan decision (pre-approvals)
- 30-day closes (45-days for FHA)
- Condo (conversion) financing services. Information