The average time that a home sits on the market when it is for sale is now 11 months.

So what does that mean to you and me? It means nothing. Despite what is said by the professionals, we are still facing the largest portfolio of mortgage resets from right now in May 2008 to September 2008 (Mortgage reset chart).

So what does this really mean? Now we are on to something. Until the underlining mortgage issues are resolved, meaning the homeowners with mortgage resets that become unaffordable, of which only 30% of the affected homeowners are being helped, expect further home depreciation.

CNN.com has stated within the last few weeks that even with all the programs developed by the government, only about 30% of the homeowners can be helped. The reason is obvious. Why does any, for profit banking institution, want to take on the problems of another bank?

And the math is so simple. Add the inflationary pressures of oil, energy and what they mean to consumers discretionary dollars, as well as, the volume of adjustable rate mortgages that are resetting (remember that it takes between 6 months and 12 months to foreclose on a home - every state has their foreclosure laws) and you have a formula saying that we will be having credit and housing deterioration until at least 2010.

Today’s Current Mortgage Interest Rates December 7 2007. Fixed mortgage rates are DOWN from Thursday December 6 2007, while adjustable mortgage rates are DOWN - Today’s 30 Year, is UP and 15 Year Fixed are DOWN - while as the 5/1 is DOWN the 3/1 ARM Mortgage Interest Rates are UP. The 10 year treasury bond is UP to 4.05%.

Many opponents to the Teaser Rate Freeze

Some of the biggest opponents to the teaser rate freeze are home owners and potential home owners. The Bush administration’s plan to give subprime borrowers a break on their mortgages is already catching flak from an unexpected source: other homeowners.

Treasury Secretary Henry Paulson, at a housing conference yesterday, said he is “aggressively pursuing” an agreement with lenders and investor groups to freeze rates on subprime adjustable rate mortgages at their original levels.

The proposal, aimed at helping homeowners who would fall behind in their payments at higher rates, is designed to prevent a surge in foreclosures next year. About 1.5 million subprime adjustable rate mortgages are scheduled to reset to higher rates in 2008.

As outlines of the plan become known, some homeowners are complaining that the effort isn’t fair to borrowers who didn’t overextend themselves. Others argue that the government shouldn’t be involved in perpetuating a mortgage bubble that needs to deflate.

A key question: How far should you go to help borrowers who can’t pay their bills?

“People have to be responsible for their own actions,” says Harry Lancz, a small business owner in Traverse City, Michigan. He holds a pair of fixed rate mortgages, one for his primary residence, which has been for sale for six months and one for a second home in Louisiana. “What are you going to do when their credit cards get due and they can’t pay? Are you going to bail them out on that, too?”

Good point Harry!

Can Loan Mods Keep U.S. Out of Recession?

A pickup in loan modifications could be an important factor in keeping the U.S. economy out of recession, according to Mark Zandi, chief economist of Moody’s Economy.com.

Speaking at a housing forum sponsored by the Office of Thrift Supervision, Mr. Zandi argued that the Federal Reserve Board has to be aggressive in cutting interest rates and said 20% to 30% of adjustable rate mortgages need to be modified before they reset to give the housing and mortgage markets any chance of a recovery. Countrywide Financial chairman and chief executive Angelo Mozilo said he supports the Bush administration’s effort to increase loan modifications.

However, he stressed that the lack of liquidity in the secondary market (except for Fannie Mae, Freddie Mac, and Federal Housing Administration-eligible loans) is putting downward pressure on sales and house prices.

Mr. Mozilo called on the administration to relax its grip on Fannie and Freddie so the two mortgage giants can use their resources to “jump-start” the secondary mortgage market and restore investor confidence.

Today’s Current Mortgage Interest Rates November 29 2007. Fixed mortgage rates are UNCHANGED from Wednesday November 28 2007, while adjustable mortgage rates are UNCHANGED - Today’s 30 Year, is DOWN and 15 Year Fixed are DOWN - while as the 5/1 is UNCHANGED the 3/1 ARM Mortgage Interest Rates is UNCHANGED as well . The 10 year treasury bond is DOWN 3.96%.

Today’s Current Mortgage Interest Rates November 28 2007. Fixed mortgage rates are UNCHANGED from Tuesday November 27 2007, while adjustable mortgage rates are UNCHANGED - Today’s 30 Year, is DOWN and 15 Year Fixed are DOWN - while as the 5/1 is UNCHANGED the 3/1 ARM Mortgage Interest Rates is UNCHANGED as well . The 10 year treasury bond is DOWN to 3.97%.

FHASecure Will Refinance Interest Only Mortgages and Some Option ARMs

The Federal Housing Administration is willing to refinance certain delinquent borrowers with interest-only and payment-option adjustable rate mortgage under the FHASecure program, which is designed to rescue subprime borrowers.

However, the delinquency on an IO or option ARM must be the result of an interest rate reset or the full amortization of the mortgage, according to the Department of Housing and Urban Development.

Shortly after HUD launched FHASecure on September 5, lenders began asking whether IO and option ARMs would be eligible.

Mortgage industry consultant Bud Carter pointed out the revision. “FHA will refinance almost any loan, except a conventional fixed rate mortgage that is delinquent,” he said. Mr. Carter is with Potomac Partners in Washington.

Mortgage lender Downey Financial saw its non-performing assets increase to $388 million at the end of October, a 50% jump in just three months’ time.

Downey reported that 2.74% of its $14.18 billion in assets were nonperforming at the end of October, compared with 1.77% at the end of July. (At the end of July it had reported assets of $14.66 billion.)

In a research note, Credit Suisse said, “With [tag-cat]Adjustable Rate Mortgage[tag-cat] resets looming, coupled with declining home prices, borrowers are finding it much more difficult to refinance existing loans, exacerbating Downey’s delinquency problem”.

Step 1

If you agree with this or portions of it….

Tell YOUR FRIENDS -

Please take this seriously, for your job and reputation are on the line. There is a very serious problem in America today and we are calling for proper and immediate actions.

This economic disaster is the ‘Perfect man made Storm’ and Americans Demand an Immediate man made Reform.

Those political leaders that do not address this credit/financial situation properly will be held accountable and we will vote you out. Americans will no longer let the financial special interest groups come between political financial contributions and the American Dream.

I write to today with concern of BOTH House Bill HR 3915 and any involvement you may have in endorsing it in any way as it stands. This current situation can lead to a recession or even worse a DEPRESSION. HR 3915 both over simplifies the problems and has not addressed the direct causes or core issues.

We as Americans insist that all the influencing factors below be addressed. Obviously, this problem is a ‘Top Down Problem and NOT Bottom Up’.

Wall Street, Federal Reserve, State/Federal Banking Laws, Mortgage Backed Security and Collateralized Debt Obligations Regulations, Rating Agencies, Banking Underwriting, real estate professional responsibilities and mortgage loan officers are all to blame.

Let’s start with; we do agree with capitalism and democracy, however, we do not agree with corruption and manipulation.

1) Wall Street

Americans have grown tired of bubble after bubble and the deterioration of American influence. If Wall Street makes the problems, Wall Street should both pay for these problems and better regulation should sweep over what they can offer us as Americans.

Wall Street opened up aggressive subprime mortgage financing which allowed people to buy a home that had no business buying a home because they could not truly afford it, they increased investor speculation with absurd business models and these variables allowed people to get more home than they could afford.

a) Wall Street hedge funds, mortgage backed securities and collateralized debt obligations profited incredibly from the FALSE market.

b) These aggressive aforementioned programs added 8% to 10% of new buyers to the home buying market that should not have been there. These added ”buyers” artificially inflated home values based upon supply and demand.

We support better regulation of these markets and financial responsibility to these firms. They should not be allowed to hide behind a bankruptcy, like Bear Stearns is attempting to do and they should not be allowed to hide behind the laws of other countries.

2) Moody’s, Standard and Poor and Fitch - The Rating Agencies.

Where were they? All the MBS’s and CDO’s, they all had a AA or AAA rating until recently. OBVIOUSLY, their current system failed miserably and the governmental departments that regulate their existence need to be both questioned and changed.

We support that the rating companies be not for profit organizations. This will prohibit them from be “steered” OR as an alternative, we may need government regulations and securitizations.

3) Federal Reserve.

a) The Federal Reserve has also failed miserably. Alan Greenspan both lowered rates too long and then after the mess was made he increased them too quickly, for 17 consecutive sessions. Rates went from 4% to 8.5%. This prohibited the market, especially the mortgage market, from adjusting in a timely fashion. Somehow, the volume of adjustable rate mortgages should have been taken into consideration because the adjustable rate mortgage resets has put a tremendous stress on our credit markets. But instead rates increased too fast and now make these mortgages not affordable to those with adjustable resets.

b) How do we know the Federal Reserve, a privately held corporation, has the best interest of the American public in mind? How can a privately held corporation control the monetary policies of this great country?

We support COMPLETE transparency with the Federal Reserve and their relationship the US Government or We need to go back to the United States Note, just like John F Kennedy did before he was assassinated.

4) US and Federal Banking Laws

a) Did banks underwrite all these mortgages…yes? Why are banks complaining? They saw everything that was approved! In fact, they did the underwriting! They could have turned down mortgages but please do not tell us that they were donating money for homeownership.

b) How come, under the current banking laws, do banks not have regulated loan officers? Does HR 3915 properly address this? Should all mortgage professionals be licensed, regulated and bonded - we say yes!

b) How come Federally and State Charted banks do not disclose their Yield Spread Premium (YSP)? Yield Spread Premium is merely a profit the bank makes.

When a mortgage is consummated by a mortgage professional, such as a broker, the bank just pays them that portion of their profit that the broker earned, and helps keep the costs of the loan to the borrower down. The problem is, the Federally Chartered and State regulated Banks do NOT disclose their same profit nor their Service Release Premium that is an additional income they earn as a bribe from Wall Street. This must be disclosed as well.

We support that banks and brokers offer consumers transparency as well as equal licensing standards.

5) Real Estate Professionals created FALSE appreciation.

Obviously we need professionals to sell a home, however, their commitments and responsibilities need to be with both the homeowner AND a “make sense model”.

All too often we have heard of people buying a home for $500,000 and with all these additional false buyers in the market from the aggressive mortgage programs Wall Street offered, they ended up buying that same home for $600,000 just 3 days later.

Today, take a look at the housing markets in California, Nevada and Florida as well as many other areas in the US. That same $600,000 home is now worth $450,000. Too many people bought homes at artificially influenced prices.

We support a “Purchase Cap” that limits how much above a listing price a home could be sold for. This has created Too MUCH FALSE APPRECIATION.

6) Mortgage Brokers

a) All loan officers, both in the banking industry, such as Bank of America or an independent mortgage broker should have the SAME EXACT STANDARDS.

There needs to be one standard, regardless of the state they do business in, regardless if they are a mortgage broker, a Federally Chartered Bank or a State Chartered Bank.

These individuals ALL need to be trained like a stock broker and live under one common National standard. Bank loan officers and mortgage brokers are to serve the people and homer owners of America.

b) We support licensing and improved standards for all originators - both banks and brokers ALIKE.

c) We oppose the elimination of indirect compensation and urge that it will be allowed as part of the interest rate. Consumers should be able to finance fees, costs and creditors. Investors should be able to pay such fees and costs to mortgage brokers as is currently industry practice today.

d) We do not support Title III. The standards are so strict and the liability so great that it will prohibit loans being made in the subprime market. It will act as a federal usury statute denying access to credit for deserving borrowers.

All in all this was the ‘Perfect Storm’ due to many ignorance’s from the public, political and private sectors.

All of the aforementioned NEED to be addressed to preserve our economy!

Despite who is to blame, it is now in your hands. All eyes are you now. We demand that you hear our wants and desires.

Your political careers will be influenced by your decisions, actions or lack of actions.

We will see you at the polls.

Step 2

Please below click on each and every member of the

House Committee on Financial Services.

Let them know you oppose their current positioning!

Cut and paste the above article as is, any portion

of it or your version of it.

Some may have to be faxed, sorry.

Step 3

Please below click on each and every member
of the your
States Governor, Senate and Congress.

Let them know you oppose their current positioning!

Cut and paste
the above article as is, any portion

of it or your version of it.