Why are we always getting such conflicting “professional” opinions, comments, data and statistics? Just flip through the TV stations and you’ll get every opinion thought of thrown at you, which then, causes us to form our own opinions. Right or wrong, opinions are just your feelings of which side of the debate you decide you want to support on any subject. The news stations have invited numerous Economists on their shows these past couple of years and we find it quite entertaining. Have you noticed when listening to an Economist talk, they talk out of both sides of their mouths and are esteemed as an expert? For instance, here’s a “two handed economist” that, in 1985, Krugman’s rant on one hand was higher national debt was a real problem, which we feel has always been a serious problem. Yet today, Krugman, on the other hand, is contradicting himself by stating the national debt is not a problem. Hmmm, As President Reagan was once heard quoting, “What we need is a ‘one handed’ economist” so we don’t get so confused. After all, what does an economist do? They are paid to give their philosophical theories and opinions based on mathematics, statistics, markets and economic computational models. In other words, your best guess will do. Now we know that there’s more to it than just that, but they are never expected to be right all the time… unlike a CPA who had better be right all the time, or he’s fired.
With the downgrade to Fannie and Freddie from Moody’s and Standard and Poor’s downgrade to AA+ for our country… emotions are running high with this economy as many fear the future as seen by the DOW tanking last week and this week. The biggest fears we face as realtors, businessmen and women, and Americans is that of the “unknown.” For what we reported today were “the top 10 reasons the U.S. will not see a double dip recession” and the same day we found another report of “the top 10 reasons a double dip recession has already begun.” So who does one believe? Opinions are spewing from every direction but, the correct one.
What Mark and I know is just this; regardless of what might be ringing in your ears from whats babbled on T.V., if it’s to be, it’s up to me to make my own economy! We feel strongly about this country STILL being the best country in the world with the best opportunity in the world! So when you find yourself being frustrated, or depressed because of your circumstance, change your attitude and put yourself to work by being innovative, creative and driven! Every economy, good or bad, has created new lines of work. Jobs today were never dreamed of 20 years ago. So make your mark by doing something about it.
We believe that as Americans, most of the world can’t fathom what it’s like to have true freedom of speech. Although we see our freedoms eroding with legislation chopping away at the base of Free Speech every year. It’s a blessing to have what we have, yet in the Real Estate community, to be able to speak freely could get you in a lot of hot water. So be mindful of what and how you say things to a client when discussing houses, communities, areas and certain streets. This is one area where freedom of speech is limited, unfortunately. We just hope that the “Fairness Doctrine” gets vanquished each time it’s brought before congress. Remember, our Forefathers defected from a tyrannical government to escape the coerced silence of intellect. As we understand the pros and cons of each argument, it’s more damaging to allow government to stifle free speech. That is when tyranny defeats freedom and the voice of the people become unheard, unwanted and meaningless. Should that ever occur in this land, God so help us!
As of June 1st, Fannie Mae is requiring a credit check prior to funding. For many, this requirement is nothing new, as many lenders have been doing this for a long time. However, with the current market conditions as they are, many buyers are riding the wave just north of 620 and one small purchase on a credit card could cost them the loan. Brian and Frank from ThinkBigWorkSmall discussed this a few days ago on their ThinkBigWorkSmall daily and I thought I would post it here for your viewing pleasure.
Trent from Complete Short Sale Processors
From Moody’s: Latest US Treasury Department Shows HAMP experiencing”extremely low conversion rates” (i.e. Not helping that many people.)
Just as we feared (and knew all too well.)
Here’s a little blurb of an article that explains the situtaion:
The most recent Home Affordable Modification Program (HAMP) report released by the U.S. Treasury shows “extremely low conversion rates” from trial to permanent modifications, with success just a 50/50 gamble, according to commentary from Moody’s Investors Service.
As of the end of April, servicers participating in HAMP had converted almost 300,000 permanent modifications. However, they had also canceled 277,640 trial modifications. Moody’s says this represents approximately a 50 percent success rate. The report also shows 3,744 permanent modifications have been canceled.
You can read the rest of the article here .