The Loan which is secured through the real property is called as Mortgage Loan. Any person, a home buyer or builder can have this loan to secure against its property. In the Past legislation, the mortgage loan cannot be obtained anymore without having Social Security number. The Social security Number is a 9 digit number, also called as an SSN number. However the ITIN (Individuals Taxpayer identification number), is now being used as basic need for providing the loans to the public to avoid any chances of frauds and culprits intervention.

Significance of ITIN Number and ACORN Program

If someone lacks his SSN number but keeps his ITIN Number then this ITIN number makes him eligible for ACORN Program (Association of Community organization for reform). This Program offers thirty years of fixed rate financing with minimal interests rates.

This ITIN number enables individual house purchasers to buy their home by getting loan without Social security number. This Program in collaboration with the Citibank and few other organizations let the first time buyers to get the loan even without the SSN number. The Procedure need to be followed to get qualified for the loan is as below;

Attending Seminars

The very initial step for the first time buyers is to attend the seminars to get all the relevant details and information about the ITIN loan qualification and purchasing. In these seminars the relevant procedure details for the loan are also explained. These seminars can be quite useful to guide the person about the main outlines of the loan qualifications.

Meeting the Counselor

The second step towards your loan qualification is holding a person-person meeting with the ACORN counselor. In this meeting, your two year tax returns, good credit history and a sure job status is assured.

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There is very much possibility that Mortgage rates will go up from the start of the year 2010.There was very mix trend occurred during whole December 2009. We saw it once at 4.49% level and also saw it on 5.35% level in December.

“Rapid change in December will assist the output to rise further in the coming months, and it `ll bring more weight to the view that the U.K. exited recession by the end of 2009,” said by  A senior economic advisor to the Ernst & Young ITEM Club.

Interest rates for home loans have already begun growing upward.  Many experts and market observers expect them to head even higher as the Federal Reserve winds down its program to buy $1.25 trillion in mortgage-backed securities before first quarter of 2010 end. Two factors are to be considered while estimating mortgage rate, Treasury bills and Economy of U.S.

So If you want to refinance your loan then go ahead immediately. If you continue to wait for at least March of 2010 then there is a very good chance that mortgage rates will be much more in settled conditions. Obviously exact level is not confirm that where mortgage rates will go but all signs are pointing that mortgage rates are going to head somewhat higher.

According to a recent news story in Associated Press, It is highly unlikely that Federal Reserve Bank will change the key interest rates any time soon. Since the interest rates are currently at historic low for some time now and practically this is as low as Fed can keep them to kick start the jammed US economy. Despite the faint signs of improvement in economic activity, Fed is not likely to touch the rates at least not for next two quarters.

After spending more than a year in deep recession, US economy finally started to grow in the last quarter. The rate of growth is very minimal and no one knows if the growth can sustain itself over next few quarters or not. So far the economy is running on essential life support system provided by federal government.  It is yet to be seen how it performs without oxygen mask.

The Core policy making team at Federal Reserve Bank of America resumed its meeting on Wednesday morning. They are likely to discuss and analyze available economic and financial data over the period of next two days.

Although their is some data that indicates the recovery but still the rising un-employment and non-availability of easy credit to individuals and small business owners are some of the factors that are putting a drag on faster recovery from recession. Commercial and residential real estate markets have yet to coup with the impact from loans that went bad and took along them many a banks.

Mortgage rates are still very high. In September, when the key policy makers of Fed met, the team outlined  a very pragmatic plan to bring the mortgage rates down for the main street consumers and try to kick start the housing sector. It is very likely that we will see some positive movement in the same direction at end of current meeting.

Since the inflationary effect of recent stimulus packages is almost none, Fed might try to take some drastic measures to keep Prime Mortgage Rates at or around 3.25 percent. These measures, that would seem stupid if seen out of context, include pushing the target rate for it bank lending further down and keep it between zero percent and 0.25 percent. This will impact all aspects of economy as the commercial bank’s prime lending rate is used as a yard stick to determine interest rates  for home equity loans, credit cards and other types of consumer finance products.

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After world crisis, US federal reserve create a complete plan to fight against such recession problems in future. The moral of the Plan is to avoid the losses in the economy. New York Fed president William Dudley gives the statement that The plan will go according to the expectations.

In the case of liquidity problems in the economy, A proper structure is introduced in the concerned Emergency Plan. Kohn said Special facilities will be provided to the economy. Losses will also be avoided in selling the mortgage-backed securities. It should be very important plan to reassurance of the market.

Recent financial crisis ,which hit the whole world badly, produce great Aftershock like situation in the benches of leaders. And they are serious about these things and want that never happen again. Higher authorities took grand steps at local level in the United States. Donald Kohn said that proper global regulations should be made to avoid these situations.

Federal Reserve Vice Chairman Donald Kohn said “ Problems must be set aside with the neighbors , and gaps between countries should be filled now. and all procedures should be applied with great effectiveness”

Source

If we look into history of different countries we will find that different countries faced the financial crises at different times. As the world is facing now financial crisis now also, the question comes in mind that who are those who run this finance horse, what are the reasons which leads to financial crises? Or is there is someone who is holding all the strings and keep them pulling? So many questions come in mind when mind starts thinking about it.

Well I had searched about this and compiled these ten nasty crises. Check out these ten dramatic crises.

1 – Argentine economic crisis (1999 – 2002)

Argentinean economy was destabilized in 1980s when Latin American Crisis struck it. Argentine was an import dependent country where people usually convert their peso into dollars to feel secure. The high inflation rate leads its currency to lose the confidence and adding oil to fire the government that time spent generously on itself while ignoring the country’s crumbling industrial infrastructure.

Mexico and Brazil were the major trade partners of the Argentine in 1980s both countries suffered the economic crises which spread out in Latin America. Brazil’s currency was devalued in 1999 that damaged a lot Argentinean exports and adding fuel to fire the dollar was revalued giving a harsh blow to Argentinean Peso.

Till 1999 the country was having 3^rd consistent year of economic decline but the government haven’t devalued the peso, which made the crisis worse. In such conditions the investors ran on banks for dollars to send abroad for safety. Meanwhile the government freezes everyone’s bank accounts. This step of the government raised violence amongst citizens and protests through out country were started. The government was collapsed in 2001. While in crisis the people were bartering for goods because lack of cash, many people eked out a living by scavenging cardboard for recycling plants.

The new government 1^st tried to setup a third currency between dollar and peso but that failed. Then it instructed the banks to convert all dollars into pesos. That step worked and peso was lead to diminish in value. Because of that exports got higher and in meanwhile the government tightened its tax policies, improves social welfare, encourages business growth and put the reserve dollars up for sale in market. The country got the surplus trade because of its agricultural products anyhow its still struggling with inflation.

Lesson

Freezing bank accounts leads the crises to get worst. It can’t be a smart step to tackle the crisis.

2 – Russian Financial Crisis (1998)

The Russian government in 1993 introduced inflation-free short-term treasury bills known as GKOs to finance the country’s deficit. GKOs were traded on currency exchanges. Most of it was state owning while only 1/3 of funding came from foreign speculators who were attracted by high interest rates. Like a classic Ponzi scheme the government used proceeds from sales of new GKOs to payoff interest on matured bills.

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Mortgage rates went down sharply last week. It is the sharpest decline we have seen over a peed of past few weeks. Home mortgage rates have come down intensively from the peak in June 2009. The most obvious reason for this is that world economy in general and US economy in particular is showing signs of late recovery. Some economic pundits are even saying that we have not seen the bottom yet!

Week Economic Outlook

Amidst of all this week economic data, and poor financial outlook, U.S. Treasury rates have declined significantly. Federal Reserve Bank is in no mood to touch the interest rate in near future. This situation is likely to keep Fed fund’s target rates between zero percent and one quarter of a percentage. U.S. economy is very less likely to rebound swiftly. Even European Union has also moved it forecast for economic recovery to late 2010 or early 2011.

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