At Select Real Estate we care about the Mount Washington Valley community. Each week we will present a a few events that educate, assist or entertain everyone living in or visiting the beautiful North Conway, NH area. This entry covers November 21st, 22nd and 23rd, 2008.

Friday 21

Drawing with the Eyes of an Artist. 
A two-day drawing workshop will be held today from 6:30 to 8:30 p.m. and tomorrow from 10 a.m. to 4 p.m. at the Tamworth Town House in Tamworth. The workshop will be led by Janina Lamb. All are welcome. Recommended for ages 14 and older. Reserve soon as space is limited to ten participants. Cost of the workshop is $75 per person. For more information or to register, call Janina at 323-7539. Sponsored by the Tamworth Recreation Department.

Friday Painters’ Group. 
The new Open Studio sessions will meet Fridays from 9 a.m. until noon at the MWVAA’s office, located next to the RSN studios on the lower level of Norcross Place in North Conway village. Artists should bring their own supplies and are also welcome to bring a brown bag lunch. The Friday Painters group is free for members and a $5 donation is suggested for non-members.

Story Time in Denmark, Maine. 
The Denmark Library will host story time on Fridays from 9:30 to 11:30 a.m. For more information call 207-452-2200.

Story Time in Effingham. 
The Effingham Public Library hosts infant and toddler story time from 11 to 11:30 a.m. For more information call 603-539-1537.

Story Time at MWV Children’s Museum. 
The MWV Children’s Museum presents its weekly half-hour story time at 10 a.m. at the museum in North Conway. Children from ages birth to six years old are the focal audience for this fun and informative story time. Call 603-356-2992 for more information.

Saturday 22

Bartlett Historical Society Hours. 
The Bartlett Historical Society will suspend their hours through the winter. Anyone wishing to tour the Historical Society may do so by appointment. For more information call 603-383-4110.

Brownfield Lions Club Dance. 
The Brownfield Lions Club will hold a dance at the Lions Den located on Routes 5 and 113 from 8:30 p.m. to 12:30 a.m. This is an adult dance. Music is by Linwood Cash and the Ridge Riders. Admission is $10 for single and $20 for couples. The dance is BYOB. A 50/50 and bottle raffle will also be held. Proceeds to benefit community projects and building fund. For more information call Earl at 207-935-2911.

Captain Enoch Remick House Hearthside Dinner. 
Join us for a hearthside dinner at the Captain Enoch Remick House in Tamworth from 5 to 7 p.m. The menu for each meal varies depending upon the season. The fee for the dinner is $35 per person. Call 603-323-8002 to reserve your space.

Chinese Auction. 
The annual Chinese Auction for Special Olympics will be held at the Kennett Middle School in Conway. Viewing of sale items and buying tickets begins at 5 p.m. The drawing will begin at 6:30 p.m. and you must be present to win. For more information or to make a donation, contact Emma McNally at 447-6280 or Tammy Shaw at 603-356-6921 ext. 1045.

Church Fair. 
A church fair will be held at the Bradley Memorial United Methodist Church in Fryeburg Harbor, Maine from 10 a.m. to 1 p.m. Follow signs from Route 5 between Fryeburg and Lovell. Many crafts, baked goods, white elephant table and raffle table. Free coffee and fruit punch. Come join us for a good time.

First Annual Must-Go Fundraiser. 
The Tamworth Historical Society will hold a Must Go Fundraiser from 9 a.m. to 3 p.m. at the Brass Heart Inn. Items for sale will include antiques, furniture, gift items and much more. For information call Don Harte at 603-323-7766.

Freedom Food Pantry. 
Open every Saturday from 10 a.m. to noon for residents of Freedom, Effingham and Ossipee at the First Christian Church in Freedom Village. For more information call 603-539-2637.

Holiday Fair. 
The North Conway Community Center in North Conway Village will hold their Holiday Fair from 9 a.m. to 4 p.m. Stop by for early holiday shopping. Several local crafters will be attending.

K.A. Brett School Auction. 
The Tamworth PTA will sponsor the K.A. Brett Auction at 1 p.m. at the Brett School in Tamworth. The Troon Family is donating their services so that 100 percent of the auction proceeds goes towards field trips and in school enrichment programs. Doors open at 12 p.m. For information on donating goods or gift certificates call 603-323-7271.

Rediscovering Afghanistan. 
The Cook Memorial Library in Tamworth will hold an illustrated talk on “Rediscovering Afghanistan: Lessons from the Home,” at 2 p.m. The talk is free and open to the public. For additional information about the program call the library at 323-8510 or to register for the workshop call the Arts Alliance at 603-323-7302.

Puppy Playgroup. 
At Four Your Paws Only on Main Street in North Conway from 11 a.m. to noon. All puppies must be on a leash and up to date on vaccines. No aggressive dogs please! For more information call 603-356-7297.

Sunday 23

Argentine Tango Classes. 
Isabel Costa, a native of Argentina is teaching Argentine tango classes every Sunday at the Christmas Farm Inn in Jackson. Beginner-Intermediate classes are from 1 to 2 p.m. Beginner level classes are from 2 to 3 p.m. Cost of the class is $10 per person. Please contact Jessyca Keeler at 603-662-6800 for more information or to sign up.

Yoga Classes. 
An eclectic style of Kripalu Yoga is offered every day except Fridays by Carlene of Symmetree Yoga. The groups will practice Hatha yoga postures paired with breath, meditation and relaxation. Classes are $13 per person. Times and locations vary throughout the Valley. For more information or to schedule a class, contact Carlene at 603-662-8664

Option 1

Continue making your payments on time and ride out the storm

• Your lender cannot take your home away as long as you make your payments on time. Therefore, if you want to keep your home and you can afford your payments, you should do whatever it takes to continue making your payments on time. Although it is a hard pill to swallow, this is likely to be your best option because it is the most responsible thing to do and it protects your credit rating.
• Even if you are experiencing other financial difficulties and you are faced with declaring bankruptcy, you are not required to include your home in the bankruptcy. For more information, check with an attorney who is familiar with the laws of your state.

Option 2

Stop making your payments and go into foreclosure
This is probably the worst decision you could make, but depending on your circumstances, you may have no other choice. Foreclosure laws vary from state to state, but here are a few things to keep in mind:

• Foreclosures reflect very negatively on your credit rating and could preclude you from borrowing money through credit cards and car loans. In fact, if you become delinquent on your mortgage, this will likely have an immediate negative impact on the interest rates and terms of all your credit cards. Credit card companies typically have the right to increase your interest rates, close your accounts and/or reduce your credit limit as soon as you default on any other debt (including your mortgage).
• Fannie Mae, which is very influential in setting the mortgage guidelines, has recently updated their lending rules to state that individuals who have gone through foreclosure need to wait anywhere from 3-5 years before qualifying for a new mortgage. This means that it will be very difficult, if not impossible, for you to buy a home and qualify for a new mortgage for at least 3-5 years.

Option 3

Try to modify the terms of your mortgage

Option 4

Try to sell the home on the open market as part of a “Short Sale”

• A short sale is where a property owner sells property for less than what is owed on the mortgage. The mortgage lender is asked to approve the sale and forgive the difference between the sales price of the property and the remaining balance of the mortgage. Consider this example:
  $200,000 sales price
  $250,000 mortgage balance
  $50,000 difference that is forgiven by the mortgage lender
• Understand the impact on your credit rating — a short sale has virtually the same negative impact on your credit rating as a foreclosure. Both short sales and foreclosures are treated as “settled accounts.” In other words, the lender is settling with you and agreeing to be paid less than what they are legally entitled to receive. Therefore, you are developing a reputation for paying back to your lenders less than what you originally agreed to pay them, and this reflects negatively on your credit rating.
• Understand the new Fannie Mae rules — beginning August 1, 2008, an individual who has sold a home as part of a short sale will not be able to qualify for a new mortgage for another 2 years!
• Understand the tax impact — depending on the type of mortgage and property you have, you may be subject to income taxes on the portion of the mortgage that is being forgiven by the mortgage lender! There is only one case where income taxes do not apply: if the forgiven debt is attached to your primary home and the mortgage balance itself was originally used to buy, build or improve your home. In other words, forgiven mortgage debt on second homes and investment property is taxed, as well as all forgiven debt where cash-out loan proceeds were not used for home improvement.

Option 5

Consider a sale-leaseback or rent-to-own strategy

• A sale-leaseback is where you sell your property to an investor (as part of either a short sale or traditional sale), and then you lease it back from the investor. This allows you to remain in your home without the trauma of having to move away and find new housing. The thing to be cautious of is that some variations of the sale-leaseback strategy are centerpieces in some of the so-called “foreclosure rescue” scams that prey on unsuspecting home owners. Before engaging in sale-leasebacks, consider the laws of your state, and make sure the transaction is properly and ethically structured to protect the interests of all the parties involved.
• A rent-to-own strategy allows you to find a new home now and rent it from an investor with the option of buying the home at a pre-determined price at some point over the next two to three years. You would do the house shopping and find a home where you would like to live. The investor then buys the home, preferably getting a good deal by buying a home that is being sold short or through a foreclosure. You then sign two agreements with the investor:
• Lease agreement that spells out the terms of the rent payments Option agreement that spells out the predetermined price and terms under which you can buy the home from the investor at some point within two to three years

Conclusion:

It is always advisable to consult with a Certified Mortgage Planning Specialist TM (CMPS®) when navigating today’s turbulent mortgage and real estate marketplace. As a CMPS® professional, I am committed, qualified and equipped to help you evaluate your options!

Standardizing the mortgage planning process through participation with the CMPS community of experts.

A big thanks to Wendy Olson for providing this information

Wendy Olson, CMPS ®
MetLife Home Loans
66 Main Street
Conway, NH 03818
603-447-6670 direct
603-662-6106 alternate
603-452-0232 fax
wsolson@metlifehomeloans.com
http://www.wendysmortgages.com

How long will the turmoil in the housing markets last?
This is the first time in our country’s history where home values have declined nationally without a corresponding large rise in unemployment. During the Great Depression, the unemployment rate was around 25% compared to approximately 5.5% today! Therefore, the challenges being faced today are different than the challenges that were faced in the 1930s.

Today, states like Michigan and Ohio have high rates of unemployment, and this is causing many people in those markets to default on their loans and go into foreclosure. Those markets will not likely rebound until the employment situation improves. On the other hand, states like Florida, Arizona and California have stronger employment. Home prices in those states have declined largely due to unsustainable speculation on the part of investors who over-extended themselves by betting that housing prices would always rise. Those markets have a large glut of investor-owned properties that are going through foreclosure. The downward pressure on housing values due to foreclosures will likely last in most markets across the country throughout 2009, and in some markets, perhaps even through 2010. This does not necessarily mean that home prices will decline for another 12-24 months. This simply means that home values are not likely to recover very quickly due to the downward pressure on home prices.

How long will the turmoil in the mortgage markets last? 
The sub-prime market has virtually evaporated and lending guidelines have tightened significantly. Interest rates on jumbo mortgages and loans for borrowers with unique situations are considerably higher than loans for borrowers who have smaller mortgage balances, high credit scores, large down payments, and long, steady job histories. There are two factors necessary for lending guidelines to loosen back up:

• Housing market recovery - lending guidelines are likely to remain very tight until housing prices at least find a bottom. This is because lenders, mortgage insurance companies and Wall Street investors don’t want to assume the risk that homeowners will walk away from their mortgage if the home declines in value.
• Clear rules and regulations - lenders and Wall Street investors today are very hesitant to be flexible in their guidelines as long as the rules of the game are still undefined. There is a very large fear in the marketplace among lenders that they will be faced with large legal liability if they extend loans to people who may not be able to afford the payments at some point in the future. On July 14, 2008, the Federal Reserve issued new guidelines that clarify the rules that lenders must follow when evaluating a borrower’s ability to repay. This was the first time since the credit crisis began in July 2007 that lenders have clear guidance on the rules of the game. This should give lenders a larger comfort level in creating new loan programs and becoming more flexible in their guidelines. Obviously, “flexible” guidelines in the coming months will be defined differently than the reckless “flexible” of the past. Regulators are also considering new rules for Wall Street financial institutions and investors, and these rules should also help in jumpstarting the mortgage lending industry once again. Therefore, lending guidelines will likely become more flexible sometime in 2009. As a participant in the CMPS Institute, I have been very active in helping to shape some of the new rules by commenting on various government proposals and participating in dialogue with Congress, the Fed, HUD and other government agencies.

Is this a good time to buy a home?
This is definitely a buyer’s market! Your negotiating power in this market is greater than at any point in the last several years. If you are interested in buying a home for the long-term, this is a great time to do so. However, if you are a novice looking to speculate in the real estate markets, now is the worst time to do so because this market is more dangerous than ever. Only the truly savvy investors will be able to navigate the market today, but they need to act quickly. There is so much panic selling in the marketplace right now that the deals that are available today will not likely be around in the future. Of course, there will always be deals available, but the types of deals available today are not going to last forever. Everyone talks about buying low and selling high, but hardly anyone actually does it! Once the market stabilizes, everyone will want to jump in again and the best deals will have disappeared. 

As long as your timeframe is greater than two years, now is probably the best real estate buying opportunity in over two decades. The best thing for you to do is work with a team of professionals to help you structure your home purchase transaction in ways where you could save the most money. Strategies for you to consider include seller-paid closing costs, maximizing acquisition indebtedness to create tax benefits, structuring the down payment in the proper way and other useful strategies.

Conclusion:
It is always advisable to consult with a Certified Mortgage Planning Specialist TM (CMPS®) when navigating today’s turbulent mortgage and real estate marketplace. 

This series has been provided by:

Wendy Olson, CMPS ®
MetLife Home Loans
66 Main Street
Conway, NH 03818
603-447-6670 direct
603-662-6106 alternate
603-452-0232 fax

wsolson@metlifehomeloans.com

http://www.wendysmortgages.com

Friday 14

Friday Painters’ Group. 
The new Open Studio sessions will meet Fridays from 9 a.m. until noon at the MWVAA’s office, located next to the RSN studios on the lower level of Norcross Place in North Conway village. Artists should bring their own supplies and are also welcome to bring a brown bag lunch. The Friday Painters group is free for members and a $5 donation is suggested for non-members.

Harvest Supper and Pie Auction. 
The St. Andrews in the Valley Church in Tamworth will hold a harvest supper and pie auction. The supper will begin at 6 p.m. and features hearty beef stew as well as vegetarian alternatives. The cost is $7.50 per person. The pie auction will begin at 7 p.m. For more information call the church at 603-323-8515.

Psychic Boot Camp. 
Dr. Lisa Halpin will present a “Psychic Boot Camp” at the White Mountain Hypnosis Center in Madison today through Sunday. This is an intensive interactive workshop. The workshop will be held on Friday from 11 a.m. to 7 p.m., Saturday from 8 a.m. to 6 p.m. and Sunday from 8 a.m. to 3 p.m. Cost of the workshop is $425 per person.

Saturday 15

Bake Sale & Local Produce. 
The Effingham Preservation Society is serving home-made treats every Saturday from 9 a.m. to 1 p.m. at the Grange Building on Route 153 in the Center Effingham Historic District. Folks are welcome to sit down and enjoy coffee, conversation, and the historic setting. Proceeds are used to maintain and renovate this historic landmark.

Bartlett Historical Society Hours. 
The Bartlett Historical Society will suspend their hours through the winter. Anyone wishing to tour the Historical Society may do so by appointment. For more information call 603-383-4110.

Charm Making for Teens Workshop. 
The Mount Washington Valley Arts Association will hold a charm making workshop with Lori Badger from 1 to 4 p.m. The class is suited for teens age 13 through 18. The class will be held at the MWVAA office at Norcross Place in North Conway. The class is $40 for members and $50 for non-members. For more information or to register call 603-356-2787.

Family Comics Workshop. 
The Madison Library will host a Family Comics Workshop with artist Marek Bennett from 10 a.m. to 3 p.m. in the library’s Chick Room. Learn the basics of comic creation. Designed for children ages 7 to 11 accompanied by an adult. Space is limited and pre-registration is required. Registration fee is $5 per person which covers cost of lunch and supplies. For more information or to register call the library at 603-367-8545.

Freedom Food Pantry. 
Open every Saturday from 10 a.m. to noon for residents of Freedom, Effingham and Ossipee at the First Christian Church in Freedom Village. For more information call 603-539-2637.

Mohla Family Benefit. 
The Madison preschool and the Brass Heart Inn will hold a special benefit dinner for the Mohla family of Madison at 5:30 p.m. at the Brass Heart Inn in Tamworth. A delicious three course meal followed by Jonathan Sarty and the White Mountain Boys at 7 p.m. Tickets are $25 per couple. All proceeds will benefit the Mohla family, who’s daughter was recently diagnosed with leukemia. For more information or to purchase tickets, call 603-323-7766.

Silk Painting Workshop. 
The Tamworth Recreation Department will sponsor a silk painting workshop, taught by Jay Rancourt from 10 a.m. to 3:30 p.m. at the Tamworth Town House on Main Street in Tamworth. The all day workshop is open to adults and children over 10 years old. The cost of the workshop is $7 per scarf painted. Wear old clothes and bring a bag lunch. Space is limited. Call 323-8510 for more information or to register.

Sunday 16

Argentine Tango Classes. 
Isabel Costa, a native of Argentina is teaching Argentine tango classes every Sunday at the Christmas Farm Inn in Jackson. Beginner-Intermediate classes are from 1 to 2 p.m. Beginner level classes are from 2 to 3 p.m. Cost of the class is $10 per person. Please contact Jessyca Keeler at 662-6800 for more information or to sign up.

Square Dance. 
The Mount Washington Valley Squares will hold a square dance at the Conway American Legion on Tasker Hill Road in Conway from 2 to 4:30 p.m. Early rounds begin at 1:30 p.m. Ray Hilton will be the caller and John Heign will be the cuer. For more information call 603-569-3962.

Yoga Classes. 
An eclectic style of Kripalu Yoga is offered every day except Fridays by Carlene of Symmetree Yoga. The groups will practice Hatha yoga postures paired with breath, meditation and relaxation. Classes are $13 per person. Times and locations vary throughout the Valley. For more information or to schedule a class, contact Carlene at 662-8664 or on the web at www.symmetreeyoga.com.

Friday 7

Eastern Slope Ski Club Sale and Swap. 
The Eastern Slope Ski Club will hold their annual ski sale and swap at the North Conway Community center in North Conway Village from 3 to 9 p.m. and Saturday from 9 a.m. to 3 p.m. Anyone selling skis should drop off on Wedneday, Nov. 5 and Thursday, Nov. 6 from 6 to 9 p.m. at the Community Center. Purchase your tags in advance at Bob and Terry’s Ski Shop.

Friday Painters’ Group. 
The new Open Studio sessions will meet Fridays from 9 a.m. until noon at the MWVAA’s office, located next to the RSN studios on the lower level of Norcross Place in North Conway village. Artists should bring their own supplies and are also welcome to bring a brown bag lunch. The Friday Painters group is free for members and a $5 donation is suggested for non-members.

Gallery Rreading. 
Popular Spiritualist medium Megan Crawford will offer a gallery reading starting at 6:30 p.m. at the White Mountain Hypnosis Center in Madison. $20 fee. Call 603-367-8851 for reservations.

Story Time in Denmark, Maine. 
The Denmark Library will host story time on Fridays from 9:30 to 11:30 a.m. For more information call 207-452-2200.

Story Time in Effingham. 
The Effingham Public Library hosts infant and toddler story time from 11 to 11:30 a.m. For more information call 603-539-1537.

Story Time at MWV Children’s Museum. 
The MWV Children’s Museum presents its weekly half-hour story time at 10 a.m. at the museum in North Conway. Children from ages birth to six years old are the focal audience for this fun and informative story time. Call 603-356-2992 for more information.

TGIF Book Group.
The Friday morning book group meets at the North Conway Library at 10:30 a.m. The group will discuss Greg Mortenson’s highly acclaimed book, “Three Cups of Tea.” Everyone is welcome. Copies of the book are available at the library. Contact the library at 603-356-2961 for more information or to reserve a copy of the current selection.

Saturday 8

$1 A Bag Sale. 
The Thrift shop of Lovell United Church of Christ on Route 5 in Center Lovell will have a $1 a Bag Sale from now through Nov. 8. Also free toys and puzzles. The thrift shop is open Mondays, Wednesdays and Saturdays from 10 a.m. to 2 p.m.

Abstract Arts Workshop for Children. 
The Mount Washington Valley Arts Association will present an abstract art workshop with Melanie Leavitt from 11 a.m. to 3 p.m. The workshop is designed for children ages 7 through 15. The workshop will take place at the MWVAA office at Norcross Place in North Conway. The class is $65 for members and $75 for non-members. For more information call 603-256-2787.

Bartlett Historical Society Hours. 
The Bartlett Historical Society will suspend their hours through the winter. Anyone wishing to tour the Historical Society may do so by appointment. For more information call 603-383-4110.

Dinner and Dance. 
The White Mountain Swing Band comes to the Brass Heart Inn in Tamworth for an evening of dinner and dancing. Call 603-323-6776 for ticket information and reservations.

Eco Art Workshop. 
The Arts Council of Tamworth presents an Eco Art workshop for kids ages seven to 14, led by instructor Cynthia Robinson from 1 to 3 p.m. at the Remick Country Doctor Museum and Farm in Tamworth. Cost is $3 per child, and space is limited. Contact Carolyn Hemingway to register at 323-8263.

Freedom Food Pantry. 
Open every Saturday from 10 a.m. to noon for residents of Freedom, Effingham and Ossipee at the First Christian Church in Freedom Village. For more information call 603-539-2637.

Porky Gulch Classic. 
The Porky Gulch Classic, held today and tomorrow features three unique stages: The Toughest Two—a two-mile hillclimb up the Mt. Washington Auto Road, the Storyland Criterium—a non-traditional criterium through the amusement park, and the Rockpile Rampage—cyclocross at Great Glen Trails. The winner of the Porky Gulch Classic can claim the title of best allaround cyclist in New England. Complete information and registration is available at www.porkygulchclassic.com.

Puppy Playgroup. 
At Four Your Paws Only on Main Street in North Conway from 11 a.m. to noon. All puppies must be on a leash and up to date on vaccines. No aggressive dogs please! For more information call 603-356-7297.

Ski Swap. 
The Jackson Ski Touring Foundation will hold their annual ski swap from 9 a.m. to 2 p.m. Proceeds to benefit junior skiing programs. For more information call 603-383-9355.

Sunday 9

Argentine Tango Classes. 
Isabel Costa, a native of Argentina is teaching Argentine tango classes every Sunday at the Christmas Farm Inn in Jackson. Beginner-Intermediate classes are from 1 to 2 p.m. Beginner level classes are from 2 to 3p.m. Cost of the class is $10 per person. Please contact Jessyca Keeler at 603-662-6800 for more information or to sign up.

Yoga Classes. 
An eclectic style of Kripalu Yoga is offered every day except Fridays by Carlene of Symmetree Yoga. The groups will practice Hatha yoga postures paired with breath, meditation and relaxation. Classes are $13 per person. Times and locations vary throughout the Valley. For more information or to schedule a class, contact Carlene at 603-662-8664 or on the web at www.symmetreeyoga.com.

Fannie Mae was created in 1938 as a government agency with a mission to buy mortgages from banks and issue bonds on the bond market using the pool of mortgages as collateral for the bonds. This process was designed to add liquidity to the mortgage marketplace and supply banks with extra funds that could be used to allow more Americans to buy and own homes. Fannie Mae became so successful and profitable that in 1968, the government decided to spin it off into a private, shareholder-owned company. In 1970, the government chartered Freddie Mac as another shareholder-owned company to provide some competition to Fannie Mae and further provide liquidity, stability and affordability to the housing market. Since then, the companies have grown so large that they own or guarantee roughly half of all mortgages in the United States.

Recently, Fannie Mae and Freddie Mac have been experiencing a crisis of confidence in the financial markets. The main fear right now is that Fannie and Freddie will be unable to continue to access short term funding that is required for them to continue their normal business operations. Financial institutions count on short term loans and lines of credit to engage in their business activities – please reference the article in this series entitled ” What exactly is the problem today with banks, financial institutions and the financial markets?”

In other words, there is a fear that Fannie and Freddie will experience a “run” on their business similar to what happened with Bear Stearns in March 2008. With this in mind, the Fed and US Treasury Department are proposing that Congress officially give them the authority to step in and rescue Fannie and Freddie if they can no longer get funding from the open market. The main argument in favor of this strategy is that it would cause the market to relax and resume doing business with Fannie and Freddie as normal because of the unlimited express backing of the US government. If Fannie and Freddie have an unlimited line of credit with the government, doing business with them would be equivalent to doing business with the US government. They might never need to tap the government line of credit because its mere existence would inspire confidence among the other players who do business with them. It’s kind of like a school boy who brings his daddy to the playground with him on every school day – no one would dare mess with him!

The main concern with this scenario is that it is not a sustainable long-term strategy to have US taxpayers support the risky business practices of for-profit companies like Fannie Mae and Freddie Mac. Interestingly enough, Fannie and Freddie do not wish to be completely privatized. Their preferred status and ties to the government has resulted in record corporate profits when times are good and a taxpayer-funded safety net when times are bad. However, just because the companies engage in business that benefits the public doesn’t mean that they deserve to be fully backed by taxpayers and the federal government. After all, many other businesses also benefit the public such as food service companies, energy companies, auto and transportation businesses, etc. It is not the mission of the government to rescue for-profit businesses whenthey run into financial problems.

With that in mind, many individuals and institutions have called for completely privatizing Fannie and Freddie and eliminating their ties to the government. Breaking up the companies and completely privatizing them may very well be a viable long-term solution and prevent a crisis of this magnitude from occurring in the future. Nevertheless, it is also important to prevent the current credit crisis from creating a full-scale meltdown of the US housing market and financial system - which is exactly what would happen if Fannie and Freddie were to blow up. The key is to weather the current crisis without sowing the seeds of the next one.

Conclusion:

It is always advisable to consult with a Certified Mortgage Planning Specialist TM (CMPS®) when navigating today’s turbulent mortgage and real estate marketplace. As a CMPS® professional, I am committed, qualified and equipped to help you evaluate your options!

Quick facts about Fannie Mae and Freddie Mac

• Spent over $170mm on government lobbying activities since 1998
• Current market share is 68% of all new US home mortgages compared to 45% one year ago
• Own or guarantee nearly half of all US home mortgages outstanding - this represents approximately $5 trillion worth of home loans

Friday 31

Friday Painters’ Group.
The new Open Studio sessions will meet Fridays from 9 a.m. until noon at the MWVAA’s office, located next to the RSN studios on the lower level of Norcross Place in North Conway village. Artists should bring their own supplies and are also welcome to bring a brown bag lunch. The Friday Painters group is free for members and a $5 donation is suggested for non-members.

Ghoullog Halloween Haunted Chairlift Rides.
Cranmore Mountain in North Conway will host their annual Ghoullog Halloween Haunted Chairlift Ride tonight through Sunday at 7 p.m. Visitors board the quad chairlift for a nighttime ride to the summit for this haunted mountain top tour.

Halloween Hoots.
The Tin Mountain Conservation Center in Albany will hold Halloween Hoots at the Nature Learning Center from 6 to 8:30 p.m. Come see who’s out and about in the fields and forests. Come follow the jack-olantern lit trail and enjoy nature skits along the way. For adults and families with children age five and older. Cost is $10 per family. Call 603-447-6991 for reservations.

Story Time in Denmark, Maine.
The Denmark Library will host story time on Fridays from 9:30 to 11:30 a.m. For more information call 207-452-2200.

Story Time in Effingham.
The Effingham Public Library hosts infant and toddler story time from 11 to 11:30 a.m. For more information call 603-539-1537.

Story Time at MWV Children’s Museum.
The MWV Children’s Museum presents its weekly half-hour story time at 10 a.m. at the museum in North Conway. Children from ages birth to six years old are the focal audience for this fun and informative story time. Call 603-356-2992 for more information.

Saturday 1

Bake Sale & Local Produce.
The Effingham Preservation Society is serving home-made treats every Saturday from 9 a.m. to 1 p.m. at the Grange Building on Route 153 in the Center Effingham Historic District. Folks are welcome to sit down and enjoy coffee, conversation, and the historic setting. Proceeds are used to maintain and renovate this historic landmark.

Baba Yaga Workshop.
The Madison Library will hold a Baba Yaga Tradition in Russian Folk Art workshop at 1 p.m. Designed for children ages five and older. The unique program combines storytelling, Russian music and painting of authentic Baba Yaga images on wood. The program is free, although there is a charge of $20 for people who wish to paint a wooden Baba Yaga figure. Call the library at 603-367-8545 for more information.

Basic for Landowners.
Tin Mountain Conservation Center located on Bald Hill in Albany will present Basics for Landowners: Woodlot Management Plans in Action with director Michael Cline from 1 to 5 p.m. at the Nature Learning Center. Cline will discuss the rationale in marking timber, putting a harvest out to bid and understanding stumpage prices. The cost of the course is $15 for members and $20 for non-members. For more information or to make a reservation call Tin Mountain at 603-447-6991.

Bartlett Historical Society Hours.
The Bartlett Historical Society will suspend their hours through the winter. Anyone wishing to tour the Historical Society may do so by appointment. For more information call 383-4110. Freedom Food Pantry. Open every Saturday from 10 a.m. to noon for residents of Freedom, Effingham and Ossipee at the First Christian Church in Freedom Village. For more information call 603-539-2637.

Rubber Stamping Workshop.
The Mount Washington Valley Arts Association will present two 3-hour workshops on rubber stamping facilitated by Debbie Eastman. Session one will be from 9 a.m. to 12 p.m. and session two will be held from 1 to 4 p.m. The class will take place at the MWVAA office in North Conway Village at Norcross Place, next to the RSN studios. The class is $35 for members and $45 for non-members. All materials will be included. For more information call 603-356-2787.

Turkey Processing Workshop.
The Remick Country Doctor and Farm Museum in Tamworth will hold a turkey processing workshop from 10 a.m. to 12 p.m. Learn to correctly “dress” a turkey from slaughtering to cooking. Workshops are designed for adults but children age 16 and older may participate with adult supervision. For more information or to make a reservation, call the museum at 603-323-7591.

Sunday November 2

Argentine Tango Classes.
Isabel Costa, a native of Argentina is teaching Argentine tango classes every Sunday at the Christmas Farm Inn in Jackson. Beginner-Intermediate classes are from 1 to 2 p.m. Beginner level classes are from 2 to 3 p.m. Cost of the class is $10 per person. Please contact Jessyca Keeler at 603-662-6800 for more information or to sign up.

Yoga Classes.
An eclectic style of Kripalu Yoga is offered every day except Fridays by Carlene of Symmetree Yoga. The groups will practice Hatha yoga postures paired with breath, meditation and relaxation. Classes are $13 per person. Times and locations vary throughout the Valley. For more information or to schedule a class, contact Carlene at 603-662-8664

What exactly is the problem today with banks, financial institutions and the financial markets?

Problem #1 – Over-Leverage

During the last several years, financial institutions borrowed more money to engage in their business activities than at any point in the history of the United States banking industry.

If asset prices fall by just 3% the financial institution’s equity in the investment asset is wiped out and they need to raise more funds to restore their 30:1 leverage ratio! When you hear about “capital requirements”, that is exactly what it means. In other words, financial institutions need to raise more funds in order to meet their minimum capital requirements of having $1 of equity for every $29 of leverage. Every time asset prices fall, financial institutions need to raise more money to maintain their minimum capital requirements. Now here’s the billion dollar question: where are the financial institutions going to get the money from?!

Yep. You guessed it! They are forced to sell even more of their investment assets!! If they sell off their investment assets, prices decline even further due to supply and demand. After all, prices always decline when there are more sellers than buyers in any marketplace. This creates a downward spiral in prices, causing the financial institution to sell even more assets into an already depressed market. A bad situation quickly becomes even worse and that is exactly what has been happening among financial institutions since July 2007.

There are two other ways for financial institutions to raise funds:

• Sell stock in their company or merge with a larger institution
• Borrow more money

Problem #2 – Lack of Liquidity

Financial institutions will continue to try and raise funds to meet their obligations and continue running their businesses. Although it is scary to think of the various doomsday scenarios that could result from the high leverage and the lack of liquidity, these worst case scenarios are unlikely to occur for two main reasons:

Foreign investors and governments, sovereign wealth funds and other large investors have too much invested already in the US to allow the US financial markets to collapse. If the financial markets and institutions collapse, these investors would lose enormous amounts of capital. Not only that, but their own economies would crumble because US consumers would no longer be able to afford to purchase their products. Therefore, foreign investors are likely to continue being an important source of funding for US corporations and banking institutions.

The Federal Reserve has been very active in providing liquidity to financial institutions throughout this crisis and will likely continue to do so.

Problem #3 – Ineffective Regulation

The financial industry regulatory structure in the United States is, to a large degree, over 100 years old! Various government officials have proposed certain reforms that are currently in the process of being considered and debated. Although the reform process has started, it will take several years to fully reform the regulatory structure of the US financial markets. As a participant in the CMPS Institute I have been very active in helping to reform and shape the future of the US financial regulatory structure.

Conclusion:

It is always advisable to consult with a Certified Mortgage Planning Specialist TM (CMPS®) when navigating today’s turbulent mortgage and real estate marketplace. 

This article was presented by:

Wendy Olson, CMPS ®

MetLife Home Loans
66 Main Street
Conway, NH 03818
603-447-6670 direct
603-662-6106 alternate
603-452-0232 fax
wsolson@metlifehomeloans.com
http://www.wendysmortgages.com

Friday 24

A.A. Meetings.

There are several AA Meetings held daily throughout Carroll County. Call 1-800-593-3330 or go to www.nhaa.net to find one near you.

Friday Painters’ Group.

The new Open Studio sessions will meet Fridays from 9 a.m. until noon at the MWVAA’s office, located next to the RSN studios on the lower level of Norcross Place in North Conway village. Artists should bring their own supplies and are also welcome to bring a brown bag lunch. The Friday Painters group is free for members and a $5 donation is suggested for non-members.

Ghoullog Halloween Haunted Chairlift Rides.

Cranmore Mountain in North Conway will host their annual Ghoullog Halloween Haunted Chairlift Ride tonight through Sunday at 7 p.m. Visitors board the quad chairlift for a nighttime ride to the summit for this haunted mountain top tour. 

‘Intro “2” Fusion’ Workshop.

The Mt. Washington Valley Arts Association will offer a two-part glass workshop with Stephanie Demme today from 5 to 9 p.m. and will continue tomorrow from 9:30 a.m. to 1:30 p.m. The class will take place at the MWVAA office in North Conway Village at Norcross Place, next to RSN. The class is $110 for members and $1230 for non-members and all materials will be included. For more information or to sign up for the workshop, call 603-356-2787.

Monthly Supper.

The Knights of Columbus will hold their monthly supper at Our Lady of the Mountains Church in North Conway. This month will feature the Famous Portuguese Dinner. The menu includes lean beef roasted with linguica and served with mashed potatoes and green beans. Also included will be bread, garden salad, homemade desserts and beverages. Adults $8 and children $4.

Return of the Pumpkin People Festival.

The Festival is the grand finale of this three week event where winning pumpkins will be announced and prizes awarded in Jackson Village Park from 12 Noon to 6 p.m. Partake in the ‘Taste of Something Pumpkin’ Contest, ‘Many Faces of Jack O’Lantern’ Contest, take a ride on the ‘Pumpkin Surprise Hay Ride, Toast marshmallows and make S’mores and let the kids have fun at the ‘Kids’ Pumpkin Patch’. Call 603-383-9356 or visit www.jacksonnh.com.

Pumpkin Patch Run at Conway Scenic Railroad.

Travel by train to the “Pumpkin Patch,” where each child will receive a small pumpkin and a special Halloween treat, today through Sunday, Oct. 26. Costumes are encouraged. For more information, call 603-356-5251 or visit www.conway scenic.com.

TGIF Book Group.

The Friday morning book group meets at the North Conway Library at 10:30 a.m. The group will discuss Greg Mortenson’s highly acclaimed book, “Three Cups of Tea.” Everyone is welcome. Copies of the book are available at the library. Contact the library at 356-2961 for more information or to reserve a copy of the current selection.

Saturday 25

Bake Sale & Local Produce.

The Effingham Preservation Society is serving home-made treats every Saturday from 9 a.m. to 1 p.m. at the Grange Building on Route 153 in the Center Effingham Historic District. Folks are welcome to sit down and enjoy coffee, conversation, and the historic setting. Proceeds are used to maintain and renovate this historic landmark.

Bartlett Historical Society Hours.

The Bartlett Historical Society will suspend their hours through the winter. Anyone wishing to tour the Historical Society may do so by appointment. For more information call 603-383-4110.

Brownfield Lions Club Dance.

The Brownfield Lions Club will hold a dance at the Brownfield Lions Den, on Routes 5 and 113 in Brownfield, Maine from 8:30 p.m. to 12:30 a.m. Adults 21 & older. Music will be by Linwood Cash and “The Ridge Riders.” Admission is singles/$10, couples/$20. We will hold a bottle and a 50/50 raffle. The dances are ‘Bring your own beverages.’ Proceeds benefit the Lions Community Projects Fund. For more information call Earl at 207- 935-2911.

Freedom Food Pantry.

Open every Saturday from 10 a.m. to noon for residents of Freedom, Effingham and Ossipee at the First Christian Church in Freedom Village. For more information call 603-539-2637.

Lovell Pond Paddle.

Join naturalist Joshua Potter from Tin Mountain Conservation Center for a crisp fall paddle on Lovewell Pond in Fryeburg from 9 a.m. to noon. Participants should meet at the Fryeburg Academy parking lot. Bring your own canoe or kayak or borrow one of ours. Call 603-447-6991 to make your reservation.

Puppy Playgroup.

At Four Your Paws Only on Main Street in North Conway from 11 a.m. to noon. All puppies must be on a leash and up to date on vaccines. No aggressive dogs please! For more information call 603-356-7297.

Rummage Sale.

The Union Hall Association of South Tamworth will hold a benefit Rummage Sale on from 9 a.m. to 1 p.m. at Union Hall in South Tamworth. A light lunch of hot dogs and chili will be available. Used clothing in good condition may be dropped off at Union Hall in advance of the sale.

Steel Drum Workshop.

On four up-coming Saturdays, AJAJA Music and Mountain Top Music Center team up to offer free workshops on pan playing. The workshops will be held at 12 p.m. at Ajaja Music on the West Side Road today, Oct. 18, Oct. 25, and Nov. 1. This is your chance to come and try out and learn about this fascinating instrument. Everyone from nine to ninety is welcome and no previous musical experience is needed. For more information contact Eric Rollnick at 447-5107 or Ellen Schwindt at 603-447-4737.

Tamworth Farmers’ Market.

The Tamworth Farmers’ Market will run every Saturday through Columbus Day weekend from 9 a.m. to noon, rain or shine. The market is held at the Unitarian Church parking lot at the intersection of Route 113 and Main Street in Tamworth Village. Anyone wishing to participate in the farmers’ market can contact Bob at 603323-2392 or Peg at 603-323-2368.

Sunday 26

Argentine Tango Classes.

Isabel Costa, a native of Argentina is teaching Argentine tango classes every Sunday at the Christmas Farm Inn in Jackson. Beginner-Intermediate classes are from 1 to 2 p.m. Beginner level classes are from 2 to 3 p.m. Cost of the class is $10 per person. Please contact Jessyca Keeler at 603-662-6800 for more information or to sign up.

Orchestra Concert.

Mountain Top Music Center in Conway will present an evening of Orchestral colors of Fall at the Loynd Auditorium at Kennett High School at 3 p.m. Donations are $8 for adults and $5 for children. For more information, call 603-447-4737.

Yoga Classes.

An eclectic style of Kripalu Yoga is offered every day except Fridays by Carlene of Symmetree Yoga. The groups will practice Hatha yoga postures paired with breath, meditation and relaxation. Classes are $13 per person. Times and locations vary throughout the Valley. For more informationor to schedule a class, contact Carlene at 603-662-8664 or on the web at www.symmetreeyoga.com.

Saturday 18

Bake Sale & Local Produce.

The Effingham Preservation Society is serving home-made treats every Saturday from 9 a.m. to 1 p.m. at the Grange Building on Route 153 in the Center Effingham Historic District. Folks are welcome to sit down and enjoy coffee, conversation, and the historic setting. Proceeds are used to maintain and renovate this historic landmark.

Bartlett Historical Society Hours.

The Bartlett Historical Society will suspend their hours through the winter. Anyone wishing to tour the Historical Society may do so by appointment. For more information call 603-383-4110.

Constructing Forest Roads and Trails.

Tin Mountain Conservation Center in Albany will present a hands on demonstration with Russ Lanoie on building forest roads and trails from 1 to 4 p.m. at the Nature Learning Center. For more information or to make a reservation call Tin Mountain at 603-447-6991.

Conway Contra Dance.

The Conway Contra Dance will be held at Tin Mountain Learning Center, 1245 Bald Hill Road in Albany from 7:30 to 10:30 p.m. Music by Fish of a Feather. Calling by Eric Rollnick. Beginners welcome – All dances taught $7/adult, $3/child under 12, or $15/family. Contact Dexter at 603-383-8946.

Foliage Hike to the Chatham Boulder.

Tin Mountain Conservation Center will hold a foliage hike to the Chatham Boulder from 9 a.m. to 12 p.m. with Sue and Bob Crowley. Come enjoy the most colorful time of the year. Participants should meet at the Upper Kimball Pond parking area.Wear sturdy shoes and bring water and a snack. For more information call Tin Mountain at 603-447-6991.

Freedom Food Pantry.

Open every Saturday from 10 a.m. to noon for residents of Freedom, Effingham and Ossipee at the First Christian Church in Freedom Village. For more information call 603-539-2637.

Leaf Peeper’s Craft Show.

The annual Leaf Peepers Craft Show will be held at the North Conway Community Center in North Conway Village today and tomorrow from 10 a.m. to 5p.m. Over 75 exhibitors with beautiful handcrafts and art! Rain or Shine under canopy. Food will be available. Free Admission – Preview Online www.joycescraftshows.com. For more information contact Joyce at 603-528-4014.

Nature Sketching for Children.

Tin Mountain Conservation Center located on Bald Hill Road in Albany will present artist Andrea Kennett at the Nature Learning Center from 9 a.m. to noon. The program is designed for children ages 9 through 14. Join Andrea as she covers the basics of sketching plants and wildlife. For more information or to register for the workshop, call Tin Mountain at 603-447-6991.

Sunday 19

Evening of Musical Praise.

All are welcome to join the worship team of First Congregational Church of Ossipee (50 Route 16B in Center Ossipee) for an evening of contemporary praise music at 6:30 p.m. in the Family Life Center. A time of visiting around food will follow the singing so bring a favorite dessert to share! For more information, call Cindy in the church office, Monday through Friday from 9 a.m. to 4 p.m., at 603-539 - 6003) or visit www.firstossipee.org.

Making Strides Against Breast Cancer.

The American Cancer Society’s Making Strides Against Breast Cancer event will take place in North Conway at the Staples Parking Lot at Settlers’ Green. Registration will open at 9 a.m.; opening ceremonies at 10 a.m. and the walk will begin at 10:30 a.m. Teams and individual walkers are welcome. To register or for more information go to www.cancer.org/stridesonline or call Kathy Metz at 603-356-3719.

Pancake Breakfast.

The Masons of North Conway will hold a pancake breakfast from 8 to 11 a.m. to benefit Jen’s Friends Cancer Foundation. This event will be held at the Masonic Lodge on Main Street in North Conway, across the street from Schouler Park. The entrance to the lodge (which is above North Conway Cinema) is next to the Village Cigar Emporium.

Yoga Classes.

An eclectic style of Kripalu Yoga is offered every day except Fridays by Carlene of Symmetree Yoga. The groups will practice Hatha yoga postures paired with breath, meditation and relaxation. Classes are $13 per person. Times and locations vary throughout the Valley. For more information or to schedule a class, contact Carlene at 603-662-8664 or on the web at www.symmetreeyoga.com.