Is Portland A “declining Market”

Something new has permeated the mortgage industry, and how loans are underwritten. Fannie Mae (FNMA), and the Mortgage Insurance industry at large have begun to treat properties in so called designated "declining marketplaces" differently. Properties that receive this designation have required higher downpayments, and better credit. Portland Oregon has flirted with this designation, and by their numbers we are officially a "declining marketplace". However, speaking only of my business, this hasn't effected any of my clientel who are looking to make low or no downpayment purchases so far. I think the areas that were hardest hit by this new scrutiny have been the southern California region, phoenix AZ region, Florida.... The usual suspects. But I just came across this article detailing how FNMA is scrapping this regulation, in accordance with the new government mandate to help support the American real estate sector.

http://biz.yahoo.com/ap/080516/fannie_mae_downpayments.html

This is a very good sign indeed. This new regulation would have created a kind of downward spiral where the very places that need the most activity were the ones that had more restrictive financing options, thereby reducing the already diminishing marketplace of qualified buyers... which would in turn drive prices down even further ....etc. etc. until it could never normalize.