This past week was quite the roller coaster ride for the GSE’s (Government Sponsored Enterprises) – Fannie Mae and Freddie Mac. As all of us in the industry knew that there was never a doubt as to whether the Federal Reserve would step in to bail out the GSE’s - but national media certainly tried to spook the consumer. All at a time when consumer confidence remains at record low levels.

While the internals of the GSE’s may be ripe for a change – and due for a change – the outcome as to how it influences main street with respect to mortgage origination is minimal at best. So what does this mean to us here in the triangle housing market? Really nothing at this point.

However, expect to see more transparency at the corporate level for Fannie and Freddie – even making them potentially part of the Fed at some point. Given the fact that Fannie and Freddie ARE the irrigation system and fertilizer for the housing market –

As if Consumer Confidence hasn’t already been hit hard enough, the GSE (Government Sponsored Entities) stock price story this morning should really impact consumers across the board. The two main purchasers of home mortgages in the US had their stock prices hit hard today on concerns that liquidity is becoming a problem for even the most stable of entities.

Wow – if Fannie Mae and Freddie Mac are having perceived issues, then who is safe these days in the housing market? Not only is consumer confidence at risk, but institutional confidence is at risk as well – the true foundation of the capital markets and housing industry.

The good news is that the Federal Reserve will not stand by and let the GSE’s fail or be put under intense pressure for any period of time. Systemic risk aversion is of the highest priority right now – for both industry leaders and consumers alike… but it’s important to realize that we must all be

What role does your credit score play in the mortgage process today? The credit changes which have occurred over the past eighteen months or so have made your credit score even more important when having an underwriting decision made regarding your credit worthiness in the mortgage market…

First of all – what IS a credit score? And more importantly – what is YOUR credit score? How is it calculated – who has access to it? The general rule of thumb is that as a consumer, you should check your credit report at least once a year – to make certain that no one else is attempting to obtain credit in your name, as well as to keep track of where your credit score lies… so you’ll know your score when attempting to purchase products and services which require credit scores.

The three main credit repositories are Experian, Equifax and Trans Union. Each of which feeds an individual score into a database which is then used by the

In today’s volatile mortgage/housing market, it’s critical to be prepared when entering into a purchase contract with a seller. Criteria have changed considerably when applying for a mortgage and one must be ready for much more stringent underwriting/approval guidelines. For example, agency (Freddie Mac) guidelines have changed regarding overall debt to income ratios – in other words the amount of total debt has been capped regarding acceptable underwriting levels.

So here are a couple of pieces of advice when preparing to meet with your Mortgage Banker to discuss your situation…

First – have all supporting documentation together and current. Bank statements and investments statements from two years ago are not relevant. Secondly – have all outstanding liens and judgments paid if possible – this makes it easier for the approval process to proceed without delay.

And when shopping around for mortgages make

So where do we go from here? Well let’s see… Interest Rates are still very attractive – it has certainly become a buyers’ market in many areas across the triangle and country. The Federal Reserve has cooperated with us so far year to date, but now seems poised to raise rates perhaps at their August meeting in an attempt to strengthen the dollar and hold off inflation.

The European Central Bank seems to be delivering a financial model in which the Federal Reserve may be following… stay tuned for more on that story. But in the meantime, we still have a housing industry that has been battered nationally by declining prices, increased unemployment figures and a massive number of foreclosures. Another tough pill to swallow if the Fed begins making it even more difficult to buy a home by increasing the cost of money.

But then again we need a stronger dollar to fight against ascending cost of oil – and to hold off inflation. So