It seems miraculous, but on Tuesday when Senator Barack Obama called for an increase in federal deposit insurance deposit levels, no one disagreed with him. In fact the other major party political candidate Senator John McCain reiterated the need for an increase, even crediting Obama for the idea, as did President Bush. In the late afternoon Federal Deposit Insurance Corporation (FDIC) chairperson Sheila Bair also called for the increase.
The proposal would raise the level of insurance from $100,000 per depositor to $250,000. The latter amount is also the level at which the government recently agreed to insure money market accounts following runs on those funds.
The last increase in FDIC insurance limits was 28 years ago when the amount was raised from $40,000 to the current $100,000 to adjust for inflation. Before that accounts were insured for $15,000.
Source: Mortgage News Daily
dated Wednesday, October 1, 2008
To read more, go to: http://www.mortgagenewsdaily.com/10012008_fdic_increase.asp
Wednesday, October 1, 2008
Wednesday, August 13, 2008
President Signs Historic Housing Bill!!
Thank You to Everyone Who Has Worked So Hard to Increase Loan Limits!
This morning President Bush signed the "Housing and Economic Recovery Act of 2008." For the past several years, C.A.R. and the NATIONAL ASSOCIATION OF REALTORS® have aggressively lobbied for Congress to pass numerous provisions found in this historic bill. Many of you participated in these efforts by communicating with your Members of Congress.
Thank you to all of you who responded to these Calls-for-Action. Your efforts have made a difference. This federal housing bill is a significant move in the right direction for California homeowners. It will aid in stabilizing our economy and help stem foreclosures, while also providing support to first-time homeowners.
The legislation will assist an estimated 400,000 homeowners facing foreclosure, many of whom reside in California, by allowing them to refinance their current mortgages with a Federal Housing Administration (FHA)-backed loan. The bill also will permanently increase FHA, Fannie Mae, and Freddie Mac loan limits in high-cost areas.
The bill permanently increases the conforming loan limit to $625,500. C.A.R. has long advocated for higher conforming loan limits. In February, the Economic Stimulus Act of 2008 was signed, temporarily raising the conforming loan limit in high-cost areas to $729,750 from $417,000 until December 31, 2008.
Although we would have liked Congress to make permanent the current $729,750 loan limit, C.A.R. is pleased with the new permanent loan limit of $625,500. It will allow California homeowners to refinance their loans into safe affordable loan products and allow first-time home buyers to enter the market.
The new loan limits for Fannie Mae and Freddie Mac are the greater of either $417,000 or 115 percent of an area’s median home price, up to $625,500. The new FHA loan limit will be the greater of $271,050 or 115 percent of an area’s median home price, up to $625,500. Both new loan limits will be effective at the expiration of the economic stimulus limits on December 31, 2008.
C.A.R. also supports the following bill provisions:
A temporary increase in mortgage revenue bonds to refinance subprime mortgages.
New regulator for Government Sponsored Enterprises to restore investor confidence in GSE loans and help the market and economy stabilize.
First-time home buyer tax credit, which allows first-time home buyers to receive a tax refund worth up to 10 percent of a home’s purchase price, up to a maximum of $7,500. The refund serves as an interest-free loan and the homeowner is required to repay it in equal installments over 15 years.
Temporary raise in the loan limit for the Veterans Affairs home loan guarantee program to the same level as the economic stimulus limits until the end of 2008.
Adjustment to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), allowing sellers to provide the non-foreign affidavit to a qualified closing entity and not just the buyer.
The setting of minimum requirements for mortgage originators, which mandates fingerprinting of loan originators and establishes a nationwide loan originator licensing and registration system. The requirements do not apply to those only performing real estate brokerage activities unless they are compensated by a lender, mortgage broker, or other loan originator. States will have the ability to implement more stringent laws.
The creation of a National Affordable Housing Trust Fund to help cover the cost of the FHA rescue plan for the first five years and develop affordable housing in subsequent years.
Other provisions in the legislation:
The Treasury Department’s proposal to create a federal backstop program to insure the financial well-being of Fannie Mae and Freddie Mac.
The FHA’s inability to insure loans that utilize a seller-funded down-payment assistance program. Down-payment assistance from family, employers and other nonprofits is still allowed.
The Community Development Block Grant Programs’ $4 billion allotment for communities to purchase and refurbish foreclosed homes.
C.A.R. wishes to thank those California Members of Congress who supported the bill:
Senator Barbara Boxer, Senator Diane Feinstein, and Representatives Joe Baca, Xavier Becerra, Howard Berman, Mary Bono Mack, Ken Calvert, John Campbell, Lois Capps, Dennis Cardoza, Jim Costa, Susan Davis, David Dreier, Anna Esho, Sam Farr, Bob Filner, Elton Gallegly, Jane Harman, Mike Honda, Duncan Hunter, Barbara Lee, Jerry Lewis, Zoe Lofgren, Dan Lungren, Doris Matsui, Howard "Buck" McKeon, Jerry McNerney, Gary Miller, George Miller, Grace Napolitano, Nancy Pelosi, Laura Richardson, Lucille Roybal-Allard, Linda Sanchez, Loretta Sanchez, Adam Schiff, Brad Sherman, Hilda Solis, Jackie Speier, Pete Stark, Ellen Tausher, Mike Thompson, Maxine Waters, Diane Watson, Henry Waxman and Lynn Woolsey.
Thank you everyone for your efforts in support of this bill!
Source: redalerts@car.org
dated Wed, 30 Jul 2008 15:39:53 +0000
This morning President Bush signed the "Housing and Economic Recovery Act of 2008." For the past several years, C.A.R. and the NATIONAL ASSOCIATION OF REALTORS® have aggressively lobbied for Congress to pass numerous provisions found in this historic bill. Many of you participated in these efforts by communicating with your Members of Congress.
Thank you to all of you who responded to these Calls-for-Action. Your efforts have made a difference. This federal housing bill is a significant move in the right direction for California homeowners. It will aid in stabilizing our economy and help stem foreclosures, while also providing support to first-time homeowners.
The legislation will assist an estimated 400,000 homeowners facing foreclosure, many of whom reside in California, by allowing them to refinance their current mortgages with a Federal Housing Administration (FHA)-backed loan. The bill also will permanently increase FHA, Fannie Mae, and Freddie Mac loan limits in high-cost areas.
The bill permanently increases the conforming loan limit to $625,500. C.A.R. has long advocated for higher conforming loan limits. In February, the Economic Stimulus Act of 2008 was signed, temporarily raising the conforming loan limit in high-cost areas to $729,750 from $417,000 until December 31, 2008.
Although we would have liked Congress to make permanent the current $729,750 loan limit, C.A.R. is pleased with the new permanent loan limit of $625,500. It will allow California homeowners to refinance their loans into safe affordable loan products and allow first-time home buyers to enter the market.
The new loan limits for Fannie Mae and Freddie Mac are the greater of either $417,000 or 115 percent of an area’s median home price, up to $625,500. The new FHA loan limit will be the greater of $271,050 or 115 percent of an area’s median home price, up to $625,500. Both new loan limits will be effective at the expiration of the economic stimulus limits on December 31, 2008.
C.A.R. also supports the following bill provisions:
A temporary increase in mortgage revenue bonds to refinance subprime mortgages.
New regulator for Government Sponsored Enterprises to restore investor confidence in GSE loans and help the market and economy stabilize.
First-time home buyer tax credit, which allows first-time home buyers to receive a tax refund worth up to 10 percent of a home’s purchase price, up to a maximum of $7,500. The refund serves as an interest-free loan and the homeowner is required to repay it in equal installments over 15 years.
Temporary raise in the loan limit for the Veterans Affairs home loan guarantee program to the same level as the economic stimulus limits until the end of 2008.
Adjustment to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), allowing sellers to provide the non-foreign affidavit to a qualified closing entity and not just the buyer.
The setting of minimum requirements for mortgage originators, which mandates fingerprinting of loan originators and establishes a nationwide loan originator licensing and registration system. The requirements do not apply to those only performing real estate brokerage activities unless they are compensated by a lender, mortgage broker, or other loan originator. States will have the ability to implement more stringent laws.
The creation of a National Affordable Housing Trust Fund to help cover the cost of the FHA rescue plan for the first five years and develop affordable housing in subsequent years.
Other provisions in the legislation:
The Treasury Department’s proposal to create a federal backstop program to insure the financial well-being of Fannie Mae and Freddie Mac.
The FHA’s inability to insure loans that utilize a seller-funded down-payment assistance program. Down-payment assistance from family, employers and other nonprofits is still allowed.
The Community Development Block Grant Programs’ $4 billion allotment for communities to purchase and refurbish foreclosed homes.
C.A.R. wishes to thank those California Members of Congress who supported the bill:
Senator Barbara Boxer, Senator Diane Feinstein, and Representatives Joe Baca, Xavier Becerra, Howard Berman, Mary Bono Mack, Ken Calvert, John Campbell, Lois Capps, Dennis Cardoza, Jim Costa, Susan Davis, David Dreier, Anna Esho, Sam Farr, Bob Filner, Elton Gallegly, Jane Harman, Mike Honda, Duncan Hunter, Barbara Lee, Jerry Lewis, Zoe Lofgren, Dan Lungren, Doris Matsui, Howard "Buck" McKeon, Jerry McNerney, Gary Miller, George Miller, Grace Napolitano, Nancy Pelosi, Laura Richardson, Lucille Roybal-Allard, Linda Sanchez, Loretta Sanchez, Adam Schiff, Brad Sherman, Hilda Solis, Jackie Speier, Pete Stark, Ellen Tausher, Mike Thompson, Maxine Waters, Diane Watson, Henry Waxman and Lynn Woolsey.
Thank you everyone for your efforts in support of this bill!
Source: redalerts@car.org
dated Wed, 30 Jul 2008 15:39:53 +0000
C.A.R. Opposed Point-Of-Sale Bill Fails to Clear Committee
C.A.R. continues to OPPOSE AB 2204 (De La Torre), which would require county lawyers to review every deed and other related documents, like CC&Rs, and remove obsolete, illegal and unenforceable restrictions from historic title record in connection with a transfer of property. County recorders will have to charge as much as $1,000 per transaction and the bill would not protect anyone from discrimination.
Existing law already invalidates any provision in a deed of real property that restricts the right of a person to lease, rent, sell, or occupy the property based on race, color, religion, sex, marital status, national origin, ancestry, familial status, disability, source of income, or sexual orientation.
C.A.R.'s Senate Key Contacts have been working with Senators to urge them to oppose the bill.
Last Monday C.A.R. issued a Red Alert to REALTORS® living in districts of Senators serving on the Appropriations committee, where AB 2204 was scheduled for a vote Thursday.
After more than 1000 REALTORS® called their Senators to oppose the bill, and after reflecting on the enormous cost of imposing these new requirements, the committee decided to to take no action for the time being. C.A.R. learned Friday afternoon that the committee will only meet once more before the end of the month and it is not likely they will vote on the bill. If AB 2204 is not brought up, it will "die."
This is great news for REALTORS® and their clients!
We will provide another update as soon as the final fate of AB 2204 is known. For the time being, no further calls to Senators are necessary!
Thank you to everyone who participated by calling your Senator!
For More Information
Please contact DeAnn Kerr at deannk@car.org.
Source: redalerts@car.org
dated Mon, 11 Aug 2008 15:15:42 +0000
Existing law already invalidates any provision in a deed of real property that restricts the right of a person to lease, rent, sell, or occupy the property based on race, color, religion, sex, marital status, national origin, ancestry, familial status, disability, source of income, or sexual orientation.
C.A.R.'s Senate Key Contacts have been working with Senators to urge them to oppose the bill.
Last Monday C.A.R. issued a Red Alert to REALTORS® living in districts of Senators serving on the Appropriations committee, where AB 2204 was scheduled for a vote Thursday.
After more than 1000 REALTORS® called their Senators to oppose the bill, and after reflecting on the enormous cost of imposing these new requirements, the committee decided to to take no action for the time being. C.A.R. learned Friday afternoon that the committee will only meet once more before the end of the month and it is not likely they will vote on the bill. If AB 2204 is not brought up, it will "die."
This is great news for REALTORS® and their clients!
We will provide another update as soon as the final fate of AB 2204 is known. For the time being, no further calls to Senators are necessary!
Thank you to everyone who participated by calling your Senator!
For More Information
Please contact DeAnn Kerr at deannk@car.org.
Source: redalerts@car.org
dated Mon, 11 Aug 2008 15:15:42 +0000
Monday, January 14, 2008
The Economy Sucks. But Is It ’92 Redux?
For the first time since Bill Clinton took the White House, the economy could be the deciding factor
The Economy, Stupid: (Clockwise from top left) Consumer spending and unemployment are up; Wall Street is wobbly; home sales are slumping; the price of gas is sky high
Clinton makes a gritty, unexpected comeback in New Hampshire. The contentious primaries pivot from a war in Iraq to economics. Business people fret about recession. What is this, 1992?
Source--By Daniel Gross NEWSWEEK
Jan 21, 2008 Issue
To read more, go to: http://www.newsweek.com/id/91655
The Economy, Stupid: (Clockwise from top left) Consumer spending and unemployment are up; Wall Street is wobbly; home sales are slumping; the price of gas is sky high
Clinton makes a gritty, unexpected comeback in New Hampshire. The contentious primaries pivot from a war in Iraq to economics. Business people fret about recession. What is this, 1992?
Source--By Daniel Gross NEWSWEEK
Jan 21, 2008 Issue
To read more, go to: http://www.newsweek.com/id/91655
Harney: Mortgage industry failing to help distressed borrowers
The rolling tsunami of home loan delinquencies and foreclosures is exposing serious problems in the mortgage industry's capacity to quickly handle borrowers' requests for help - whether loan modifications, short sales to ward off foreclosure, or much-ballyhooed rate freezes.
It is also bringing to light impediments to quick resolutions that may surprise some borrowers, such as the presence of home equity lines or second mortgages on the property. People with popular "piggyback" combinations of first and second mortgages, and hundreds of thousands of consumers with outstanding equity lines, could face complications they never imagined.
Listen to real estate attorney Nancy Gusman of Largo, Md., who represents financially distressed homeowners seeking ways to avoid foreclosure: "It's insane," she said in an interview. "(Mortgage) servicers tell everybody, 'Call us as soon as you have problems making the monthly payment.' But then the borrowers call and are told, 'Oh no, we can't talk to you about a loan modification. Your file is in the collections department (not the loss-mitigation department where loan modifications and short sales are handled) because you're only 30 days late.' "
Source--By Kenneth Harney
The Mercury News Article Launched: 01/11/2008 10:37:39 AM PST
http://www.mercurynews.com//ci_7944204?IADID=Search-www.mercurynews.com-www.mercurynews.com
To read more, go to:
It is also bringing to light impediments to quick resolutions that may surprise some borrowers, such as the presence of home equity lines or second mortgages on the property. People with popular "piggyback" combinations of first and second mortgages, and hundreds of thousands of consumers with outstanding equity lines, could face complications they never imagined.
Listen to real estate attorney Nancy Gusman of Largo, Md., who represents financially distressed homeowners seeking ways to avoid foreclosure: "It's insane," she said in an interview. "(Mortgage) servicers tell everybody, 'Call us as soon as you have problems making the monthly payment.' But then the borrowers call and are told, 'Oh no, we can't talk to you about a loan modification. Your file is in the collections department (not the loss-mitigation department where loan modifications and short sales are handled) because you're only 30 days late.' "
Source--By Kenneth Harney
The Mercury News Article Launched: 01/11/2008 10:37:39 AM PST
http://www.mercurynews.com//ci_7944204?IADID=Search-www.mercurynews.com-www.mercurynews.com
To read more, go to:
How to play your cards
ALWAYS EMOTIONAL, MAKING DECISION BECOMING HARDER
For home sellers, right now is a tricky time to set a price. The local market is divided, with homes selling faster in some places than in others. Homes are often going for less than they would have one or two years ago, but it's not always clear how much less.
This means sellers must first clear a psychological hurdle, coming to terms with how much their home is likely worth today - a figure that may be less than they remember their neighbors getting for a similar home last year. And once sellers figure out what they can reasonably expect to get for their home, they face another decision: whether to set the asking price above, below or right at that amount.
A home is an emotional investment as well as a financial one. Sellers may be parting not only with a piece of property but with the scene of years of family memories.
"It's the home you love; you've got your sweat and blood and tears in this home," said Rick Geha, an agent with Keller Williams Realty in Fremont.
Source--By Margaret SteenFor the Mercury News
Article Launched: 01/11/2008 10:37:22 AM PST
To read more, go to: http://www.mercurynews.com/ci_7944202?IADID=Search-www.mercurynews.com-www.mercurynews.com&nclick_check=1
For home sellers, right now is a tricky time to set a price. The local market is divided, with homes selling faster in some places than in others. Homes are often going for less than they would have one or two years ago, but it's not always clear how much less.
This means sellers must first clear a psychological hurdle, coming to terms with how much their home is likely worth today - a figure that may be less than they remember their neighbors getting for a similar home last year. And once sellers figure out what they can reasonably expect to get for their home, they face another decision: whether to set the asking price above, below or right at that amount.
A home is an emotional investment as well as a financial one. Sellers may be parting not only with a piece of property but with the scene of years of family memories.
"It's the home you love; you've got your sweat and blood and tears in this home," said Rick Geha, an agent with Keller Williams Realty in Fremont.
Source--By Margaret SteenFor the Mercury News
Article Launched: 01/11/2008 10:37:22 AM PST
To read more, go to: http://www.mercurynews.com/ci_7944202?IADID=Search-www.mercurynews.com-www.mercurynews.com&nclick_check=1
Friday, January 4, 2008
Study: U.S. Home Prices Must Drop to Get Back In Sync with Rents
House prices would have to lower by a significant amount to rebalance with U.S. rents, according to a study by two current and one prior Federal Reserve economists.
Assuming rents rose 4 percent a year, home prices would need to drop 15 percent over the next five years, The Wall Street Journal reports.
The study, which tracks rents and home prices back to 1960, is by Andreas Lehnert and Robert F. Martin, staff economists at the Fed, and Morris Davis, an economist at the University of Wisconsin-Madison and a staff economist at the Fed until 2006.
Rents historically have been around 5 to 5.25 percent of home prices--until 1995, when the average annual rent hit $6,600 and the average home price settled around $134,000.
From 1996 on, home prices began to increase faster than rents; by the close of 2006, home prices had more than doubled to $282,000. However, during the same period, the average rent was up only 48 percent to $818, decreasing the rent/price ratio to 3.48 percent--roughly a third below its long-standing average.
A correction would require home prices to drop and rents to rise. The survey suggests home prices would need to decrease 3 percent a year if rents continue their current 4 percent annual growth rate.
Source--Multi-Housing News
Published: January 03, 2008
Assuming rents rose 4 percent a year, home prices would need to drop 15 percent over the next five years, The Wall Street Journal reports.
The study, which tracks rents and home prices back to 1960, is by Andreas Lehnert and Robert F. Martin, staff economists at the Fed, and Morris Davis, an economist at the University of Wisconsin-Madison and a staff economist at the Fed until 2006.
Rents historically have been around 5 to 5.25 percent of home prices--until 1995, when the average annual rent hit $6,600 and the average home price settled around $134,000.
From 1996 on, home prices began to increase faster than rents; by the close of 2006, home prices had more than doubled to $282,000. However, during the same period, the average rent was up only 48 percent to $818, decreasing the rent/price ratio to 3.48 percent--roughly a third below its long-standing average.
A correction would require home prices to drop and rents to rise. The survey suggests home prices would need to decrease 3 percent a year if rents continue their current 4 percent annual growth rate.
Source--Multi-Housing News
Published: January 03, 2008
Subscribe to:
Posts (Atom)
