Kurt Satchfield

We in the housing industry have a great opportunity to work toward the "Green Agenda". Since I had a first hand experience with Katrina, building homes that withstand higher winds, insulating features that both strengthen a home and lower the use of heating/cooling are a necessity. We can help to stimulate our economy and make a mark on saving the "Earth" for future generations. I hope this article gives positive food for thought.

By Andy Serwer, managing editor Fortune Investor Daily

NEW YORK (Fortune) -- I was thinking about the financial mess the other day and I came up with this theory. I'm wary of it because it's comforting, even uplifting, and by definition any economic supposition that has a happy ending is suspect. So with that caveat here goes:

I remember talking to a wise man at the end of the last decade who was pointing out to me how much the market had gone up during the 1990s and how stocks couldn't possibly continue to go up at that rate. The market's historical annual mean gain is about 8%, and yet between 1990 and 2000 the market had climbed some 15% per annum.

There is only one way to revert to the mean, the wise man pointed out, and that is for the market to go up less than that for quite some time. So we were looking at low single digit gains - or worse - for years.

But how could that be, I asked? Remember, the world looked pretty damn good back then. Sure tech stock prices were ridiculous, but other than that, what could possibly make the market tank? I have no idea, the wise man said, it's just very likely to happen.

And of course it did happen. First tech stocks crashed - and for sure, a few people saw that coming. But who envisioned the horror of 9/11 and its fallout? Who saw Enron, Worldcom and the wave of corporate scandals? Who saw Hurricane Katrina? And who saw this current financial meltdown. No one did. Back then our big concern was Y2K.

At the end of 1999 the Dow was around 11,400. Today the Dow is at 8,400, which means the index has fallen some 26%, a decline of almost 3% per year. With just one year left in this decade - even if 2009 is a humdinger - it is increasingly likely that first 10 years of this century will be one big washout for investors. A lost decade. (Just fyi, if the Dow had climbed up 8% a year from 11,400, the index would be over 22,000 now.) As for the Dow since 1990 - the entire 19-year period - the market has climbed on average some 6% per year.

The next big thing: Green tech?

So what does this mean for us going forward? Well, we don't really know, but we can make assumptions. First, at some point the carnage will end. The government and the markets will somehow figure a way out of this mess. Stabilization and confidence will return, and the economy will recover.

Second, at some point stock price returns will revert back up to the mean. In fact, to revert to the mean, stocks will at some point have to exceed the mean, in other words go up more than 8%. I know it could be years off, but you see my logic. It's just math.

And there's the rub. I believe that in order for the market to achieve a sustainable advance that is above the mean, we are due for some unforeseen positive event or events. Think about it. In the 1990s stocks went way up because of an unanticipated revolution in technology, i.e., networking and the Internet. In this decade we had a slew of unexpected negative events - bookended by 9/11 and this current meltdown. At some point, and it may be a few years from now, we will likely be subjected to an unforeseen positive.

What will it be? Of course no one knows. If we did, it would be priced in. But you could see how something like this might work. Take, for example, the discovery of a sustainable energy source or sources. You can see the incredible boost this would be to our economy and our markets. Imagine the geopolitical benefits. (And how it might defang our enemies.) Imagine the boost to our national psyche. And on and on.

I know you might think this is wishful thinking. And, of course, it is. Right now we are in for the toughest slog we've had in decades. We are going to have to sacrifice in unimaginable ways. It's probably even true that George Soros is right and that we are at the end of the era of American dominance. (That's okay. Who wants to dominate anyway?)

The bigger point is this: Somewhere over the horizon is an unrealized economic benefit that will lift us up in a way that right now, in the gloom, we can't even imagine. We have much work to do in the meantime, but some day it will come

MORE AND MORE REASONS.... TO PURCHASE YOUR FIRST HOME TODAY!

Congress Enacts Bigger and Better
Home Buyer Tax Credit

A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid...

$8,000 Home Buyer Tax Credit at a Glance

• The tax credit is for first-time home buyers only. - note, YOU are considered a first time home buyer if you have not owned a primary residence in the last three years.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000.
• The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

You can visit the website directly to get all needed infomation, find out how you can qualify for the credit and when you can benifit from it.... click on the following link:

http://www.federalhousingtaxcredit.com/2009/faq.php

CALL SUNNY MORTGAGE GROUP TODAY TO GET PREQUALIFIED AND BE ON YOUR WAY TO OWN YOUR FIRST HOME. WE ARE VERY COMPETETIVE WITH THE LOWEST LENDER FEES ON THE COAST! WHAT ARE YOU WAITING FOR?? CALL NOW! 228-385-0551, ASK FOR KURT OR APRIL

Congressional Desk March 05, 2009 Making Home Affordable Program Will Offer Help to Up to 9 Million Homeowners

Washington, DC - Congressman Wm. Lacy Clay (D) Missouri, praised the Obama Administration´s announcement of detailed guidelines for the "Making Home Affordable" program. The President´s new initiative will help bring relief to responsible homeowners struggling to make their mortgage payments, while preventing neighborhoods and communities from suffering the negative spillover effects of foreclosure such as lower housing prices, increased crime and higher taxes.

"This plan will help keep more Americans in their homes. Some homeowners having difficulty will be able to modify their mortgages and make their monthly payments more affordable. Others who have little or no equity in their homes will have a chance to refinance at favorable rates," said the Congressman. "We´re making a direct investment to help up to nine million families and I urge homeowners who are having difficulty to contact their lender or servicing agent as soon as possible."

SUMMARY OF PROGRAM GUIDELINES

(As prepared by the U.S. Department of the Treasury)

The Home Affordable Refinance program will be available to 4 to 5 million homeowners who have a solid payment history on an existing mortgage owned by Fannie Mae or Freddie Mac. Normally, these borrowers would be unable to refinance because their homes have lost value, pushing their current loan-to-value ratios above 80%. Under the Home Affordable Refinance program, many of them will now be eligible to refinance their loan to take advantage of today´s lower mortgage rates or to refinance an adjustable-rate mortgage into a more stable mortgage, such as a 30-year fixed rate loan. The Home Affordable Refinance program ends in June 2010.

The Home Affordable Modification program will help up to 3 to 4 million at-risk homeowners avoid foreclosure by reducing monthly mortgage payments. Working with the banking and credit union regulators, the FHA, the VA, the USDA and the Federal Housing Finance Agency, these program guidelines are expected to become standard industry practice in pursuing affordable and sustainable mortgage modifications. This program will work in tandem with an expanded and improved Hope for Homeowners program.

With the information now available, servicers can begin immediately to modify eligible mortgages under the Modification program so that at-risk borrowers can better afford their payments.

Eligibility and Verification

Loans originated on or before January 1, 2009.

First-lien loans on owner-occupied properties with unpaid principal balance up to $729,750. Higher limits allowed for owner-occupied properties with 2-4 units.

All borrowers must fully document income, including signed IRS 4506-T, two most recent pay stubs, and most recent tax return, and must sign an affidavit of financial hardship.

Property owner occupancy status will be verified through borrower credit report and other documentation; no investor-owned, vacant, or condemned properties.

Incentives to lenders and servicers to modify at risk borrowers who have not yet missed payments when the servicer determines that the borrower is at imminent risk of default.

Modifications can start from now until December 31, 2012; loans can be modified only once under the program.

Loan Modification Terms and Procedures

Participating servicers are required to service all eligible loans under the rules of the program unless explicitly prohibited by contract; servicers are required to use reasonable efforts to obtain waivers of limits on participation.

Participating loan servicers will be required to use a net present value (NPV) test on each loan that is at risk of imminent default or at least 60 days delinquent. The NPV test will compare the net present value of cash flows with modification and without modification. If the test is positive - meaning that the net present value of expected cash flow is greater in the modification scenario - the servicer must modify absent fraud or a contract prohibition.

Parameters of the NPV test are spelled out in the guidelines, including acceptable discount rates, property valuation methodologies, home price appreciation assumptions, foreclosure costs and timelines, and borrower cure and redefault rate assumptions.

Servicers will follow a specified sequence of steps in order to reduce the monthly payment to no more than 31% of gross monthly income (DTI).

The modification sequence requires first reducing the interest rate (subject to a rate floor of 2%), then if necessary extending the term or amortization of the loan up to a maximum of 40 years, and then if necessary forbearing principal. Principal forgiveness or a Hope for Homeowners refinancing are acceptable alternatives.

The monthly payment includes principal, interest, taxes, insurance, flood insurance, homeowner´s association and/or condominium fees. Monthly income includes wages, salary, overtime, fees, commissions, tips, social security, pensions, and all other income.

Payments to Servicers, Lenders, and Responsible Borrowers

The program will share with the lender/investor the cost of reductions in monthly payments from 38% DTI to 31% DTI.

Servicers that modify loans according to the guidelines will receive an up-front fee of $1,000 for each modification, plus "pay for success" fees on still-performing loans of $1,000 per year.

Homeowners who make their payments on time are eligible for up to $1,000 of principal reduction payments each year for up to five years.

The program will provide one-time bonus incentive payments of $1,500 to lender/investors and $500 to servicers for modifications made while a borrower is still current on mortgage payments.

The program will include incentives for extinguishing second liens on loans modified under this program.

No payments will be made under the program to the lender/investor, servicer, or borrower unless and until the servicer has first entered into the program agreements with Treasury´s financial agent.

Similar incentives will be paid for Hope for Homeowner refinances.

Transparency and Accountability

Measures to prevent and detect fraud, such as documentation and audit requirements, will be central to the program.

Servicers will be required to collect, maintain and transmit records for verification and compliance review, including borrower eligibility, underwriting, incentive payments, property verification, and other documentation.

Freddie Mac will audit compliance.

For more information about the Making Home Affordable Program, we recommend that you visit two excellent websites which can answer most questions about eligibility. Please go to www.financialstability.gov or www.hud.gov

This website and its affiliates have no responsibility for the views, opinions and information communicated here. The contributor(s) and news providers are fully responsible for their content. In addition, the views and opinions expressed here are not necessarily those of the American Chronicle or its affiliates. All services and information provided on this website are provided as general information only. Any medical advice, home remedies and all other medical information on this website should not be treated as a substitute for the medical advice of your own doctor. We not responsible for any diagnosis of treatment made by anyone based on any of the content of this website. Always consult your own doctor if you are in any way concerned about your health.

More and more lenders are making it a requirement for home buyers to attend a buyers education class, to help ensure that they fully understand the steps they are about to take. Purchasing a home is a major change in your life and we want to help prepare you for what's to come. Before, during and after the purchase of your home.

Your mortgage payment will be the most important expense you incur monthly, and you will need to ensure that you make your payments promptly and accurately.

In many cases you are going to be unable to make it to the scheduled classes due to your daily schedules but now you can learn and get your Home Buyer education achievement certificate on-line! for FREE! and the certificate will be forwarded directly to your lender!

To ensure that you go into the home-buying process with your eyes wide open, MGIC offers a website where you can learn what to expect when preparing to purchase your home. It offers resources from start to finish.

Once you have reviewed the resources on their website you can take a test to see what you have learned. The test is only 18 questions long and you will not be faulted if you don't pass the test, you can take it again! Once you have completed the test it will tell you what you scored in each section what questions were answered incorrectly so you can go back and review the materials and become more knowledgeable.

When you are prepared to take the test click

You will be prompted complete information about yourself and asked to provide a buyers ed code, please enter this code exactly as follows:(best if you copy and past code) april@sunnymtg.net, a copy of your certification will be automatically forwarded to us and put in your file.

Click here to see an example of the certification you will receive English(.pdf)

Getting YOU one step closer to owning your own home!

Call us today to make an application and become prequalified for your mortgage!

MOST BUYERS CAN STILL QUALIFY FOR A MORTGAGE LOAN WITH 580 CREDIT SCORE!

Credit applicants with lower scores generally must have more bank reserves and lenders still look at debt ratios -- the percentage of income a person spends on debt each month.

FHA lending guidelines allow for some buyers with 580 credit scores to purchase homes for as little as *3 percent down and are still allowed to use down payment assistance programs, gifts and secured loans. * 3.5% required down payment goes into effect Januaray 1 2009, keep in mind the assistance can still be used so little money out of pocket for the buyer is still avaliable.

By combining a Federal Housing Authority first mortgage with a Mississippi Housing Finance Authority second mortgage( MHC), banks can finance purchases up to $250,000 with no money down with low interest rates with credit scores of 580 or higher.

Not every applicant with a 580 will qualify, but some will. As the credit score climbs, so does the applicant's chances of getting the loan. We can help get them to that point.

Once the credit score reaches the 650 neighborhood, the majority of applicants will be approved, given the exception of documenting the income.

No one knows where Mortgages will be a year from now but today conforming financing is still avalioable and with good deals out there,

"Now is a good time to buy," . "Now, you can qualify."

The national focus on the credit crunch doesn't reflect the situation in a lot of areas in the US and may be causing some people to be surprised by the financing that is available.

Most FHA, VA and RD borrowers are still getting into homes with little to no money down.

Now is a good time for borrowers because interest rates remain well below the long-term average.