If you have a client or you are a buyer getting a mortgage loan today, count your lucky stars. Mortgage loan lenders are continuing to choke the housing market to the point that even those with good credit are having a tough time getting funds.

And there's lots of evidence.

The Beige Book, a report of economic conditions across the 12 Federal Reserve districts, just released its findings from businesses reporting before April 7, 2008. The book says that "widespread tightening in credit standards was reported, especially on residential and commercial real estate loans. From New York to Dallas to San Francisco, it's tougher to get a loan.

Banks, which ignored consumer credit worthiness during the housing boom, are now piously holding borrowers to credit scores, loan to debt ratios, and property appraisals that haven't been this strict since the 70s. Keep in mind these are the same forward-thinking folks who hook kids early to rely on credit cards by drowning them in applications while they're in college and not self-supporting.

Loan apps are the new Camel cigarettes.

Now loan unavailability is contributing to the housing problem. Sales activity was generally reported to be declining in the Boston, New York, Philadelphia, Atlanta, St. Louis, Minneapolis, Dallas and San Francisco Districts, while Kansas City and Chicago noted slack demand and excess inventories. On the other hand, the Cleveland District saw some pickup in activity, while Richmond and Atlanta reported some pockets of improvement; Boston, Atlanta, and Chicago cited some recent pickup in traffic or buyer inquiries.

However, price pressures continue in Boston, New York, Philadelphia, Richmond, Atlanta, Chicago, Minneapolis, Kansas City, and the San Francisco Districts. Only the Cleveland District reported some stabilization in home prices.

The main reason prices are falling today is not lack of demand. Homes aren't selling because buyers can't get loans.

Delinquencies are increasing, causing lenders to tighten standards. The tighter the standards, the more delinquencies.

It's a vicious circle resulting in some ugly numbers.

RealtyTrac's May report says that foreclosures filings - and let's get that straight -- filings, not foreclosed properties -- increased seven percent from April, and are up 48 percent over last year.

It's the third straight month of foreclosure filing increases, with one out of every 483 households in delinquency.

To help ease the pileup of foreclosed homes, the Federal Housing Administration (FHA) says it will insure foreclosed properties marketed and sold by property disposition firms on behalf of lenders. The properties, which be must purchased by owner-occupants, will no longer be subject to the customary 90-day waiting period and can be purchased for immediate occupancy.

That's great news -- if your client or you can get a loan, that is.

Published: June 16, 2008

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.