Still, it could be a while before prices here and nationwide rebound as the economy struggles to get back on its feet after the worst recession in a generation.

"We're not really going to see a recovery before 2011 or 2012," says Sophia Koropeckyj, managing director of industry economics at Moody's Economy.com.

The West Chester, Pa.-based research firm developed its price forecast by using projections for key economic indicators, like unemployment and foreclosures, to estimate the future direction of the S&P/Case-Shiller index, a widely cited home-price survey based on repeat sales of the same properties. The study looked at 369 U.S. metro areas, focusing only on single-family homes.

Home prices nationally will fall 36.2% from their peak in the first quarter of 2006 to their trough in the fourth quarter of this year, according to the report. U.S. prices fell 21.3% through third-quarter 2008, the last quarter for which Case-Shiller numbers are available.

The Chicago market, which peaked in first-quarter 2007, ranked 261st in the country, with a projected 17.1% drop. The Parkersburg, W.Va./Marietta, Ohio-area ranked first, with no price change, while Naples, Fla., ranked last, with a forecast 70.1% decline. Moody's Economy.com predicts that price declines will exceed 20% in about 100 metro areas.

But Chicago homeowners are much better off than those in other big markets, like New York, where prices are forecast to fall 33.3%, or Los Angeles, which faces a 53% dive.

She estimates that prices in the North Shore markets she covers have fallen about 20%, enough that she's getting more calls from would-be buyers thinking about getting off the fence.

"They feel that it's bottomed enough that they're willing to go out and buy something," she says.

Still, she says some buyers are waiting for mortgage rates, which slipped below 5% in January, to drop again before acting. Other buyers are going to have a hard time qualifying for a loan.

But there are glimmers of hope, says Moody's Economy.com. Inventories of unsold homes are leveling off, sales are stabilizing and the federal government is taking more aggressive action, including the $787-billion stimulus package, to jolt the economy back to life. President Barack Obama is scheduled to outline a foreclosure-relief plan Wednesday.

"Stronger policy measures are coming that will help place a floor under the housing downturn," the Moody's Economy.com report says. "These measures will help housing directly, by lowering mortgage rates and forestalling foreclosures, and indirectly, through job-generating fiscal stimulus spending that will bolster demand."

Who is stimulating the economy?

This is very well written! Should be passed  to every one you know!

Do you ever read  something and think, "Wow! I wish I had written that!" 
....well, this is one of those. This is great and it tells it like it is!

A Boss Who Tells it Like it Is  ...

To All My Valued Employees,

There have been some rumblings around the office about the future of this company, and more specifically, your job. As you know, the economy has changed for the worse and presents  many challenges. However, the good news is this: The  economy doesn't pose a threat to your job. What does threaten your job however, is the changing political landscape in this country.

However, let me  tell you some little tidbits of fact which might help you
decide what is in your best interests.

First, while it is easy to spew rhetoric that casts  employers against employees, you have to understand that for every business owner there is a back story. This  back story is often neglected and overshadowed by what you see and hear. Sure, you see me park my Mercedes outside. You've seen my big home at last years Christmas party. I'm sure; all these flashy icons of luxury  conjure up some idealized thoughts about my life.

However, what you don't see is the back story.

I started this company 28 years ago.  At that time, I lived in a 300 square foot studio apartment for 3 years. My entire living apartment was  converted into an office so I could put forth 100% effort into building a company, which by the way, would  eventually employ you.

My diet consisted of  Ramen Pride noodles because every dollar I spent went back into this company. I drove a rusty Toyota Corolla with a defective transmission. I didn't have time to date. Often times, I stayed home on weekends, while my friends  went out drinking and partying. In fact, I was married to my business - hard work, discipline, and sacrifice.

Meanwhile, my friends got jobs. They worked 40 hours a  week and made a modest $50K a year and spent every dime  they earned. They drove flashy  cars and lived in  expensive homes and wore fancy designer clothes. Instead  of hitting the Nordstrom's for the latest hot fashion  item, I was trolling through the discount store  extracting any clothing item that didn't look like it was birthed in the 70's. My friends refinanced their mortgages and lived a life of luxury. I, however, did not. I put my time, my money, and my
life into a business with a  vision that eventually, some day, I too, will be able to  afford these luxuries my friends supposedly had.

So, while you physically arrive at the office at 9am, mentally check in at about noon, and then leave at 5pm,  I don't. There is no "off" button for me When you leave  the office, you are done and you have a weekend all to yourself. I unfortunately do not have the freedom. I eat, and  breathe this company every minute of the day. There is no rest. There is no weekend. There is no happy hour.  Every day this business is attached to my hip like a
1 year old.

You, of course, only see the fruits of that garden - the nice house, the Mercedes, the vacations ... you never realize the back story and the  sacrifices I've made.

Now, the economy is  falling apart and I, the guy that made all the right decisions and saved his money, have to bail-out all the people who didn't.
The people that overspent their paychecks suddenly feel entitled to the same luxuries that I  earned and sacrificed a decade of my life for.

Yes, business ownership has is benefits but the price  I've paid is steep and not without wounds.

Unfortunately, the cost of running this business, and  employing you, is starting to eclipse the threshold of  marginal benefit and let me tell you why:

I am being taxed to death and the government thinks I  don't pay enough. I
have state taxes. Federal taxes.  Property taxes. Sales and use taxes. Payroll taxes.  Workers compensation taxes. Unemployment taxes. Taxes on taxes. I have to hire a tax man to manage all these taxes and then  guess what? I have to pay taxes for employing him. Government mandates and regulations and all the  accounting that goes with it, now occupy most of my time. On Oct 15th, I wrote a check to the US Treasury for $288,000  for quarterly taxes. You know what my "stimulus" check  was? Zero. Nada. Zilch.

The question I have  is this: Who is stimulating the economy? Me, the guy who has provided 14 people good paying jobs and serves over 2,200,000  people per year with a flourishing business? Or, the single mother sitting at home pregnant with her fourth  child waiting for her next welfare check? Obviously,  government feels the latter is the economic stimulus of this country.

The fact is, if I  deducted (Read: Stole) 50% of your paycheck you'd quit and
you wouldn't work here. I mean, why should you?  That's nuts. Who wants to get rewarded only 50% of their  hard work? Well, I agree which is why your job is in  jeopardy.

Here is what many of you don't  understand ... to stimulate the economy you
need to  stimulate what runs the economy. Had suddenly government mandated to me that I didn't need to pay taxes, guess what?  Instead of depositing that $288,000 into the Washington  black-hole, I would have spent it, hired more employees, and generated substantial economic growth. My employees would have enjoyed the wealth of that tax cut in the form of promotions and better salaries. But you can  forget it now.
 
When you have a comatose man  on the verge of death, you don't defibrillate and shock  his thumb thinking that will bring him back to life, do you? Or, do you defibrillate his heart? Business is at the heart of America and always has been. To restart it, you must stimulate it, not kill it. Suddenly, the power brokers in Washington believe the poor of America are the essential drivers of the American economic engine. Nothing could  be further from the truth and this is the type of change you can keep.
 
So where am I going with all  this? It's quite simple.
 
If any  new taxes are levied on me, or my company,
my reaction will be swift and simple. I fire you. I fire your co-workers. 
You can then plead with the government to pay for your  mortgage, your SUV, and your child's future. Frankly, it  isn't my problem any more.
 
Then, I will  close this company down, move to another country, and retire.
You see, I'm done. I'm done with a country that  penalizes the productive and gives to the unproductive.  My motivation to work and to provide jobs will be destroyed, and with it, will be my citizenship.
  
So, if you lose your job, it won't be at the hands of  the economy; it will be at the hands of a political  hurricane that swept through this country, steamrolled  the constitution, and will have changed its landscape forever.If that happens, you can find me sitting on a beach, retired, and with no employees to worry about  ...
 
Signed,
Your Boss

Origins of Mortgage Acceleration!

WILL THE LAST MORTGAGE BROKER ON EARTH PLEASE TURN OUT THE LIGHTS?

Will there soon be a day when the last mortgage broker on earth quietly turns out the lights, sadly looks back, then joins the other victims on the growing list of economic extinction?

Are mortgage brokers being squeezed out of the business as, one by one, the nation's largest lenders move to block them from offering their loans?

You bet they are.

But here's the problem: Anytime you remove competition in the marketplace, anytime consumers lose choices? That's when service goes down and prices go up.

It is why registering a car is a pain in the asset. It is why a hamburger costs $10 inside Disneyland.

THE WAY IT WAS

Only a few years ago, the halls of the mortgage office were crawling with lender reps begging mortgage brokers to give them business. The list of lenders to whom loans could be brokered was 4 pages long.

These days, seeing a loan rep is about as rare as seeing a bald eagle fly over San Francisco. We price loans and check guidelines on the Internet.

Did I mention that I really do miss our reps? The Internet, as swell as it is, just isn't the same as a real person who shows up to offer support.

Most lenders don't answer their phones. Our list of approved lenders is short and sweet....less than one page and shrinking monthly.

Mortgage brokers are fighting for survival. They have flocked to companies (like mine) that not only broker loans, but also have their own direct lending bank.

THE WRITING ON THE WALL

Leaders in our industry think the proverbial writing is on the wall, as one by one, banks stop doing business with brokers.

Many lenders (think subprime) have just disappeared. But many more have dropped off the list because they no longer want to accept loans from mortgage brokers.

Banks argue that dropping brokers reflects more conservative business practices. The most recent example is Chase, who announced last month it would no longer process loans by brokers. 

Chase has publicly stated that the increased number of branches (from mergers and acquisitions and new branches) means they do not need to rely on brokers nearly as much. They have also said that loans originated within their branches have out performed those originated by brokers.

Is that the real reason?

BANKS GETTING RID OF BROKERS: A NASTY PUBLIC RELATIONS MESS

Some less progressive thinkers (who must be living under a rock) still believe mortgage brokers who placed subprime loans are at the root of the entire economic crisis.  Well, we all need a scapegoat, and I guess mortgage brokers are used to this line of thinking.

Could it be that banks want FEWER mortgages (as red ink gushes from all those toxic loans that have gone belly up)? Think about this: Would YOU want more business like that?

"Hmmmmm...," thinks Mr. Banker. (You know, the one who got gobs of taxpayer money to lend MORE, not less money)...

"Wouldn't admitting I want to get rid of brokers, and do fewer mortgages be a DOWNRIGHT NASTY public relations MESS?

Well, YES, it would.

WAYS TO LIMIT LOANS BESIDES GETTING RID OF BROKERS

Oh, sneaky lender, you. I almost forgot you have other ways of getting rid of mortgage business.

You can:

•   slowly raise credit requirements.
•   increase underwriting   requirements.
•   make getting an appraisal more difficult.
•   slow down the approval process.
•   raise rates.
•   fire your reps, and not answer your phones.

Oh wait. You've already done that.

Next stop? Broker, buh-bye.

And you, Mr. Mortgage Applicant? Well, now YOU can sit on hold.

Customer service expert John DiJulius recently said, "It is a fact that firms with high levels of customer service have a healthier corporate culture, lower employee turnover, higher customer retention, more referrals and ultimately make price less relevant."
 
Right now, tough economic times have resulted in corporate cost cutting, stock market crises, layoffs, and outsourcing to the lowest bidders. Mr. DiJulius declared, "Customer service is at such an all-time low that if customers experience is not horrible consumers are relieved!"
 
He said it takes "world-class customer service" to create loyalty and brand evangelism.

"Companies who adhere to the philosophy that we are the lowest price; therefore good service should not be expected' are finding in these times this strategy is not creating a following.

"The bar is set so low by people's expectations that businesses today have a truly fantastic opportunity to gain a superior competitive advantage. Whatever your business - retail, hospitality, or professional services - it has never been easier to exceed the customer's expectation by delivering a memorable experience. The companies that have realized this and make their value proposition 'service' are consistently seeing their return on income and maintaining longevity," Mr. DiJulius said.

This is exactly why everyone here at "The Universal Family of Companies" strive to make every persons experiece unique and turn them into raving fans. If we have learned one thing over the years it is that we have to have such a great appreciation for every relationship and family that allows us to help them to achieve their dreams.

If you would like an opportunity to see exactly what we can do for you and your family, please feel free to contact us for a FREE Private Consultation and we are sure you will be pleased with the results.

With everythign from securing your first home to your dream home we have you covered and better yet we will help you achieve this American Dream and turn it into a true reality by eliminating the need for any form of mortgage. Let us help you achieve your dreams...

Call us Toll FREE: 1-866-448-3874 or Email: Support@TheUniversalFamily.com