2009 In Review

  Well this has been the wildest year we have ever seen in terms of banking and the Government.  Rates, guidelines, mortgage insurance, Fannie Mae, Freddie Mac, FHA, HVCC, bailouts, Czars and even Obama have all impacted the mortgage industry.  The Country is now trillions of dollars in debt and most of us have very little money in our pockets.          

  • We have seen interest rates for a 30 fixed mortgage range from 6.5% to 4.375%. 
  •  We have seen mortgage guidelines tighten up and the all most elimination on mortgage insurance for convention mortgages.
  •  We have seen the HVCC appraisal process forced upon us. 
  •  We have seen FHA raise is minimum down payment requirements.
  •  We have seen Fannie Mae & Freddie Mac raise their guidelines to the point that they are no longer serious about first time or average home buyers.
  •  We have seen over 100 banks fail or taken over by the FDIC.
  •  We have seen billions of dollars given out to banks in TARP funds.
  •  We have seen record interest rates on credit cards.
  •  We have seen record unemployment.
  •  We have seen record foreclosures.
  •  We have seen the Obama administration speed us into a record deficit.
  •  We are currently watching one of the largest taxes being imposed upon us in a Trojan Horse call “Health Care.”
  •  And it was all done to protect us, the people of the United States. 

   I do hpoe that someone sends to everyone in the Obama Adinistration a Sim City game so that they can see the impact of what he is doing.  The free market system is not perfect but if left alone it will correct it self.  I am tired of all of this political involvement in the Mortgage Industry.  Real Estate is an investment.  Yes we do live in our homes but when we bought them it was helping to build our future as an investment.  No one wants to have to move.  I moved 12 times before I was 18 years old due to my Mother’s financial hardship.  Three kids and little money, I understand the emotion impact of a forced move.  But we have to face facts, we all have to cut back at some point in our lives. 

  As I said earlier the free market is not perfect, the flees come with the dog.  But the free market system will and does punish those that try to take advantage of it.  Yes some will profit for a while but in the end they will take a huge hit.  The issue today is we all want things to remain steady.  This is possible in a socialist or class society.  Be careful what you ask for as you might be stuck in a job that the some day the Government says you can not leave.     

  Currently the Congress is discussing the Health Care bill.  This bill sounds great and smells like a giant road apple!  It does not mater which side is doing it but the complete bill is not available for anyone to see.  What I have seen that bothers me the most is this.  If I am an employer and I choice not to insure my employees then I will be hit with a tax for failure to supply employee health coverage.  In most cases this tax is less than the cost of an employee health plan.  So which expense do you think an employer will pay?  That’s right whichever bill is less.  Also keep in mind that this tax is not tax deductable.  So how makes out?  The Feds make out big with this. 

  Also keep in mind that the procedures that you might need will be decided on by a committee and your age is also a factor in their decision making.  Older people will be faced with the death panels as they will be considered to old for the expense of some procedures.  This is unbelievable.  This Health Care reform will prove to be the biggest rip off of the American People ever.  Understand that you could be giving up some of your freedoms. 

  One last thing, today if you are in need of medical attention you are taken to the nearest hospital and they treat you.  The bill is worked out later.  We also have Medicare, Medical and many county hospitals.  So how can the case be made that we have no national medical coverage? 

  I look forward to not seeing so much Government interference in the Mortgage Industry and just day to day life in 2010.  Enjoy your Christmas, I will be back after the New Year.

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