Lynne Pope

Doing “something” about the financial situation is needed. Now that more news is out there they are saying they will fine tune areas. It makes sense. The story of Chrysler Corporation and that they already paid back the loan they received within one year made sense to me.

Cooler heads and calmer minds are working in the midst of a media flurry that tears down the ideas before the bud even opens. Several points bear note. Think of this as a fire wall, and by putting it up now will restore the ability of recovery of homes in this market.

Really Really and truly….the forclosures are worse than Katrina, worse than 911 and we need to recognize the numbers of families in America losing their homes! Bail out, wall street are just the wrong words. Somebody needs to get in there and do something. To jockey in politics and posturing is not right but it is going along. Each party trying to get their “Man” in. The fact is that the American people have been harmed on many fronts. I won’t list the harm because we already know.

The lobbying has got to stop paying and playing with leaders. The leader that does that will make a difference. McCain is right to go to Washington and Obama should go to. They were invited. They will be involved in the future of leadership and should be there.

The media is becoming so loud that many of us are just turning it off.

Job losses are followed by home losses are followed by more losses. The time is now to act. Sure last week would be good, week before that better but all we have is now. Lets start by calling it what it should be. Government working for the people to assure a calm, an anchor, a firewall, a group of leaders with a true desire for the good of all mankind.

Trying to figure out what the “bailout means” in regular terms? The power struggle in Washington gives us a clue: differing point of views. Here are the bullet points to review

“The Senate plan, led by Dodd, calls for five key provisions to be added to the Treasury proposal. They would:

• Give the government an equity stake in the companies it helps
• Change the bankruptcy law so that judges can modify the mortgages of filers’ primary residence
• Curb executive compensation on the companies participating in the bailout
• Impose oversight of the Treasury program
• Require the government to promote sustainable homeownership through loan modifications and use of the new HOPE for Homeowners Program on the mortgages underlying the assets it buys in the bailout.

The House version, drafted by House Financial Services Chairman Barney Frank, D-Mass., includes only the last three provisions.”

I like Dodds view. He is protecting the homeowner, being a watchdog of CEO take home

pay. (they pay for the lobbiest). Finally saying if the Government is paying for all this they should get a share. If they get a share there- and if it becomes profitable they could make some money and use it to help our country.

Over simplified it looks like the government is Daddy-and the teens went out charged up the credit cards and wrecked the car and want a new credit card and a new car. Dad is just saying he owns the car.  

Jitters…first time home buyers and that magic word…Confidence!

The US Government is the headless horseman in charge of home ownership.

Did you ever jump rope at school? The 2 people holding the rope swing it around and around and you jump in. It takes practice. The first few times you get hit by the rope.
You watch others and it looks so easy. They show you that it is possible. But you think, how do I learn to do this without really hurting myself and embarrassment?

All this is to say -the neophyte is aware of the danger. The jitters of the bridegroom! It takes a lot of partying to slip on the collar…married.

Is the Realtor your party planner? “Trust us” and the purchase will work smoothly. The lender walks the bride down the aisle. A technical give away but we own your DNA. Escrow and Title are the legal entity - preacher - judge- just tying the knot! Feeling confident?

Is using a full service Realtor like going to the best schools, being in the best places, meeting the best people? Is using the discount company like going to Vegas- getting drunk and finding yourself married? It was so quick, you saved 2000 dollars but you felt it was not that special planned wedding, with the photo album and all the lovely memories.

Then, there is the investor. The guy who has been around a few times. This one only wants a good deal. He or she wants the house, that has been around. How long has it been on the market? Give me the old gal over there in the corner- she looks like some good bones! Yep- she is bank owned now, way past the short sale. Nobody wants her on the books anymore. The investor takes and rents it out. Where is the love?

What in the world is going to happen to the good old days? Those days when the plantation was humming along smoothly. The slaves worked for food and the landowner -was, is currently the USA. Financial crisis, world power, POWER = energy, influence whatever, is making some corrections. The Global war-ning. We are all working for food. Getting back to basics, leaving baby formula, leaving beef, leaving lead based paint, leaving carbon fuels, leaving DDT.

Remember the line in Joni Mitchell’s song..Give me spots on my apples…and they put up a parking lot!

Jitters…first time home buyers and that magic word…Confidence!

Headline…you are not dreaming. The affordable loan is back to help the sinking real estate markets in USA. Home Sweet Home when your loan is 5.5% 30 year fixed rate.

That is the best news- its early Christmas to a summer that was full of inventory and buyers holding out for better deals. There is a pick up. Don’t you feel it? This interest rate will not last..it can’t. We need to get the people into homes and into this loan window. They will have 30 years of peace in the pocketbook. The adjustable arm…is sinking in my opinion. If you have a job, a pay stub, and pay your bills on time use this 5.5% 30 year loan window to settle your stomach. RE-FI if it is possible -out of your arm….and for those of us with stated income…hang in there….something may come up for us.
Remember my Frozen heloc warning…It was 3 ms in advance of the actual wave of freezing.
This is my warning to everyone…Go out there and get this 5.5% deal.

Background to the Seizure of the GOV on Freddie and Fannie. What is your thought?

Not much news about who the stockholders were that owned the max of those loans- People told me CHINA. That they were the ones that owned the major share in loans.

So without the stockholders to answer to…and I am sure USA made some gift, trade off, deal to keep them from all out war over losing the money Countries invested in our repackaged loans.

Do you wonder what the California Association of Realtors tell us what this historic change means?   The newspapers will never give you a complete view such as this.

Feel free to take this and inform  and educate everyone on the future example shown to us here..Those with the 30 year fixed…I congratulate you..

I think we should all go get one…if we can. 

Monday, September 08, 2008 
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
Sept. 8, 2008

Dear C.A.R. Member:

This weekend, the U.S. Dept. of the Treasury placed Fannie Mae and Freddie Mac, government sponsored enterprises (GSEs), into a conservatorship. The federal government is authorized to take up to an 80 percent stake in the companies, and, as part of its duties under the conservatorship, will review both Fannie’s and Freddie’s financial condition quarterly, as well as inject money into the operations as needed.

Under the conservatorship, both GSEs will be allowed to increase their mortgage funding over the next year and a half, then, beginning in 2010, the plan calls for a reduction in their portfolios of 10 per cent a year until they have been reduced to $250 billion. As part of this weekend’s action, both CEOs were relieved of their duties and Herbert Allison, former Merrill Lynch vice chairman, and David Moffett, former U.S. Bancorp CFO, were selected to lead Fannie Mae and Freddie Mac, respectively.

In light of the U.S. Dept. of the Treasury’s action, C.A.R. today reaffirmed its support for Fannie Mae and Freddie Mac and their countercyclical roles.

While the short-term impact of the Treasury’s actions over the weekend served to calm the markets and restore confidence, in the longer term these entities need to be able to fulfill their historic mission. A privatized Fannie and Freddie will short-circuit the countercyclical role the GSEs have played during precarious times in real estate markets.

Without an institutionalized mortgage-backed securities market, mortgage capital eventually will be less predictable and more expensive, and adjustable-rate mortgages could become the standard loan for home buyers, as could higher down payment requirements. The 30-year, fixed-rate mortgage as we know it will no longer be readily available for most home buyers and may effectively disappear. The result could be a dramatic decline in homeownership rates in California and across the nation.

C.A.R. is concerned that the Treasury, and Fannie Mae’s and Freddie Mac’s new CEOs, will overreact and change the mission and role of the GSEs. Wall Street and investors are understandably reluctant to buy mortgage backed securities (MBS) that are not either originated from or guaranteed by Fannie or Freddie.

The GSEs hold or have securitized nearly half — roughly $5 trillion — of all mortgages in the U.S., and in the current environment with private lender constraints, they account for the vast majority of all new mortgages in California.

We have just recently begun to see an increase in home sales, currently at nearly 490,000 units on an annualized basis, up from 284,000 in the fourth quarter of last year. The most significant, reliable source of home loans in California today are financed by either Fannie Mae or Freddie Mac. California’s and the nation’s housing markets simply cannot withstand the financial rug being pulled out from beneath them. Additionally, the repercussions this could have on the already weak economy could be devastating.

C.A.R. is urging lawmakers to support continued government involvement in supporting the institutional secondary market and its role in creating homeownership opportunities.  While we applaud the U.S. Dept. of the Treasury for increasing the GSEs portfolio limits, we will be asking Congress to enact legislation to ensure the two companies continue to fulfill their mission.

To help your clients understand the role of the GSEs, please take a look at a new video featuring C.A.R. Executive Vice President Joel Singer at http://www.car.org/newsstand/video-js-gse. In “Fannie and Freddie: Why They Matter to You,” Joel explains the often confusing but critical role Fannie Mae and Freddie Mac play in the housing market in clear and concise terms. I’m also featured in a new video developed especially for our members about the GSEs. You can find “Understanding Fannie and Freddie” on the car.org home page at www.car.org. I hope you find them useful. We’ll also be tracking the story for you as it develops in Wednesday’s “C.A.R. Newsline,” and will have additional information to help you make sense of the story for consumers in this Thursday’s edition of “Market Matters.”

Sincerely,

William E. Brown
2008 President
CALIFORNIA ASSOCIATION OF REALTORS®

Thank God for the safe Exodus of so many people in New Orleans. 

Six degrees of separation…and so many people I know were in harms way over the last several days. The surreal experience is to be in Los Angeles with our family so safe over this holiday weekend. We attend church together every Sunday with our family including grand children. I had an open house after and family beach plans for Monday.

However- we joined so many of you for prayer for New Orleans families. Everyone prays differently, in so many languages, so many customs, so many beliefs. I used to pray in a childlike way, hopeful, sometimes scared and like tossing a ball out into the sky. I grew to greater confidence over the years and started with being grateful for the connection with “Our Father which art in heaven. ” I also work in prayer from a standpoint of strength. With God all things are possible. The lifting of thought and alliance with certain connection changed my experience completely. “We walk in the direction we look” is a quote that has helped me realize the importance of my part in any situation. I will be looking for the good, the best in every situation.

To read a first hand report from a wonderful blogger this is her story of the exodus from New Orleans and Hurricane Gustov. It is amazing, detailed and will also introduce you to her organization Professional Story tellers online. She sent me this email. It is her invitation to everyone to know the story. If you know any storytellers that should know her story…She wants you to invite them and include them.

Dianne de Las Casas, Author, Award-Winning Storyteller has sent you a message on Professional Storyteller.

Friends:

Here in the New Orleans area where I live, a mandatory evacuation order has been issued by 8am tomorrow (August 31, 2008). The airport is closed and my oldest daughter (Soleil, age is in Houston, visiting her boyfriend. Her flight home was canceled so we have her rerouted to Birmingham, AL, where my family and I are heading. We have a hotel room and hope they don’t give it away. That happened to us during Katrina.

It’s hard to believe it’s happening again! But we are focused on keeping our family safe and out of harm’s way. My heart goes out to all the residents of the Gulf Coast who, like us, have to evacuate and prepare for the worst. Storm surge is predicted to be 15-24 feet. They say our area will receive more water than we have ever seen in our lifetime. I am frightened but hopeful.

My website will have live updates via Twitter. <a href=”http://www.storyconnection.net”>http://www.storyconnection.net</a>. I will be blogging on the road (I can do that from my phone as long as my cell phone works). If you would like to follow, my blog is <a href=”http://www.storyconnection.net/blog”>http://www.storyconnection.net/blog</a>. I will also be checking my email as often as possible from my phone. If you need to reach me urgently, email my webmaster, Heidi Hafner, at hafnerdesigns@gmail.com.

I am evacuating with my husband, my daughter, Eliana (8), my stepdad, my mom, and my brother’s four children. My brother is a police officer and had to stay behind as emergency personnel. He will be keeping us apprised on the situation in the New Orleans area as long as we do not lose communication with him. My mother-in-law is in Baton Rouge with my sister-in-law. My family and I are evacuating in four vehicles. We will keep in touch via 2 way radios. We have food, water, first aid provisions, and other necessary items.

Thank you all for your prayers and your well-wishes. To all my friends in the hurricane danger zone (Louisiana and the Gulf Coast), Godspeed and safe travels. I will be praying for all of us…

Warmly,
Dianne

To reply to this message, click here: http://professionalstoryteller.ning.com/profile/DiannedeLasCasasAuthorAwardWinningStoryteller/?xgp=messages