On September 10th, 2008 it was released that two million people who had home loans with Countrywide learned that they may have been the victim of Identity Theft.

Why - because their personal information may have been sold.

Countrywide admitted that a former employee sold unauthorized personal information to a third party over a two year period for more than $200,000.

The information included names, addresses, social security numbers and application information.

Thankfully the FBI found and arrested the employee, and reports as many as two million people may have had their data stolen. Countrywide is offering affected customers two years of free credit monitoring service.

If you have a loan with Countywide you are highly encouraged to contact them for the free credit monitoring service they are offering if they have not already contacted you.

Now the shocking news…Countrywide is only offering this service to primary borrowers on the loan!

Co-borrowers have not been notified that their information may have been sold and could be in jeopardy. Co-borrowers have not been offered the free credit monitoring service for the two year period.

If you are a co-borrower on a Countrywide loan your information is at just as much risk as primary borrowers and you need to contact them immediately and demand them to start monitoring your credit for the next two years for free.

Here is the information to contact Countrywide.

http://www.countrywidecredit.com

Countrywide Home Loans 1-800-763-1255.

http://www.creditguardhelp@experiandirect.com

Experian 1-866-369-0422

Experian Customer Care Team PO Box 19729 Irvine, CA 92623-9729

If you do not receive prompt and courteous service from a Countrywide representative you are encouraged to contact Consumer Affairs.

Conforming mortgage guidelines are the Home Loan Rule Book, delineating between applicants that approved for a mortgage and those that do not.

Effective today, the rule book just got a little bit tougher.

According to Fannie Mae, homeowners converting their primary residence into a second home or investment property will be subject to additional underwriting scrutiny. Fannie Mae is leery of lending to people that may be over-extended.

The complete underwriting update is available at the Fannie Mae Web sitebut some of the more important points are summarized below, divided into Second Home and Investment Property.

Second Home Guideline Changes

• Without 30 percent equity in the second home, mortgage applicants must have 6 months worth of PITI reserves for both properties in their bank accounts.

• With 30 percent equity, the PITI reserve can be reduced to 2 months. Previously, there was no minimum reserve requirement.

Investment Property Guideline Changes

• With 30 percent equity in an investment property, 75% of the monthly rental income can be applied toward the applicant's monthly household income.

• Without 30 percent equity, rental income may not be applied to the applicant's monthly household income and 6 months PITI is required for both properties.

Previously, 75% of the rental income was allowable regardless of equity, and minimum reserve requirements were 2 months.

Even though just a small percentage of Americans own second homes or investment properties, the conforming mortgage guideline changes impacts homeowners everywhere.

This is because more restrictive guidlines lead to two separate, but concurrent, outcomes:

1. The demand for homes reduces because fewer buyers qualify for mortgages

2. The supply of homes increases because fewer sellers can refinance into more affordable home loan

Less demand and more supply places downward pressure on home prices.

Now, remember that mortgage guidelines continuously evolve and what's accurate as August 1, 2008, may not be accurate six months down the road. In other words, confirm what you're reading about mortgages online with your loan officer before making any real estate-related decisions.