Shortly after Fannie Mae and Freddie Mac were nationalized, there was a lot of "Mission Accomplished"-like chatter on TV; as if suddenly-low mortgage rates were the answer to a national housing problem. 

Look, low mortgage rates don't matter if you can't qualify for them and, on that front, it's been more like Mission Impossible than Mission Accomplished.  And with mortgage money scarce -- in a bit of irony -- mortgage default rates are rising, causing the dollar spigot to tighten further.

This is how foreclosures happen.  This is what we're seeing in the market today.

No, the answers to the mortgage market riddles are not in the rates but the guidelines. The stick-figure video above explains why.  Originally "filmed" in January 2008, it's a 5-minute piece that clearly and succinctly explains why mortgage rates are irrelevant and guidelines are paramount.

Dan Green is an active loan officer. Email or call 513-443-2020. Dan is on Twitter at @mortgagereports.