Adults were asked how the recent changes in the economy has affected their purchasing of “green” products or services such as non-toxic or biodegradable cleaning products and restaurants that serve locally sourced food.

Among the 73% of those who reported buying “green”:

-67% reported buying the same;
-26% bought more;
-8% bought less

Asked how knowing that a store or restaurant focused on being “green” as part of their business would impact their likelihood to visit, 49% said they would be equally as likely to visit, regardless of extra distance or effort. Another 26% said they would be more likely to visit if it involved no extra distance/effort, and 8% would be more likely to “go green” and visit even if it required extra distance/ effort.

“The overall results of this survey highlight the staying power of green among consumers even during the toughest of economic times,” said Mike Kapalko, environmental and tork services manager, SCA Tissue North America.

Methodology
This survey was conducted online within the United States by Harris Interactive via its QuickQuery(SM) online omnibus service on behalf of SCA Tissue North America between March 27 and 31, 2009, among 2,014 U.S. adults aged 18 years and older. Results were weighted as needed for region, age within gender, education, household income and race/ethnicity.

For more information, visit www.sca.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Currently, 56% of Americans say they are hearing a mix of good and bad economic news, up from 46% in March and just 19% last December. The proportion saying they are hearing mostly bad news has fallen dramatically over this period - from 80% in December and 51% in March to 39% currently. Very few Americans - just 4% continue to say they are hearing mostly good economic news.

The latest weekly News Interest Index survey, conducted April 9-13 by the Pew Research Center for the People & the Press, finds that the share saying they are hearing a mix of economic news has increased.

When asked about perceptions of news about their local economy, the public is narrowly divided. Still, people in states struggling to manage their finances are more likely than people in other states to say they are hearing mostly bad news about the economy in their area.

Last week, the public continued to track economic news more closely than other major stories. More than three-in-ten (31%) say they followed reports about the condition of the economy most closely. Economic news took up 13% of the newshole (counting stories about state and local budget troubles separately).

The change in perceptions on the tone of economic news comes amid signs that the worst decline in decades may be slowing. When asked about news concerning the economy in their local area, the public expresses fairly similar views about national economic news. Nearly half (49%) say they are hearing a mix of good and bad news, while 44% say they are hearing mostly bad news. Another 5% say they are hearing mostly good news.

However, people who say they have been following news about state and local budget problems very closely are more likely than those paying less attention to say the news they’ve been hearing about the local economy is mostly bad. A majority (52%) of those who followed the week’s state and local budget news very closely report that what they’ve been hearing about their local economy is mostly bad; that compares with 41% of those who were less attentive to news about state and local budget troubles.

The balance of good and bad news that people are hearing about their local economy may be related to how well their states are managing state finances. In those states receiving below-average grades for fiscal management in an analysis by the Pew Center on the States, half (50%) of the public reports hearing mostly bad news about the economy in their area; while 44% say they are hearing a mix of good and bad news. By contrast, those who live in states whose financial health is rated above average, a majority (53%) say they are hearing a mix of good and bad news about their local economy and fewer (38%) report hearing mostly bad news.

There is some difference in perceptions of national economic news however. Six-in-ten of those in the better performing states say they are hearing a mix of good and bad news about the broader economy, while 52% of those in the lowest rated states say the same.

In addition, there is somewhat greater interest in state and local budget problems in states that get lower ratings for fiscal management. A third (34%) of those living in states graded below average say they are following news about state and local budget problems very closely, compared to one-in-four (24%) in states ranked average or above average.

For more information, visit http://people-press.org/.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

This is according to survey results released by SunTrust Banks, Inc. Yet, despite this acknowledgement, almost 40% of small businesses do not offer retirement plan options to employees - citing affordability (90%), ease of use once the program is implemented (89%), ease of setting up a program (87%), fee transparency (87%) and quality and range of investment alternatives available (87%)as the main barriers.

The online survey, conducted independently for SunTrust in February 2009, asked 1,000 small business owners throughout the United States to identify the biggest challenges they face regarding retirement plans - both for employees and for themselves, personally.

According to the survey, 85% of business owners believe that a retirement plan is an important benefit to their employees, second only to healthcare coverage. A majority of small business owners (61%) agree that it is an employer’s responsibility to offer retirement benefits and 75% say it positively affects attracting and retaining high-quality employees. However, despite their beliefs about the importance of having and offering a retirement plan, only six out of 10 of those owners currently offer a retirement plan to their employees.

Other key findings of the study include:

The current economy is posing new challenges to small businesses’ personal and company retirement planning: 81% of owners agree that the current economic climate has changed the way they think about their own retirement with 41% of them citing that it has made planning for retirement more important.

Additionally, 67% say that the current economic climate has changed the way they think about their company-sponsored retirement plans.

Almost nine in 10 owners of small businesses have a personal retirement plan, with 401(k) being the most popular of the plans.

Small business owners recognize the importance and desirability of 401(k) retirement plans in particular, as they overwhelmingly believe that having a 401(k) allows employees to better manage their retirement plans (86%). Small business owners who have a personal 401(k) plan are significantly more likely to be satisfied than those who do not (86% vs. 68%).

Eight in ten say having a 401(k) plan to participate in for their own retirement savings would give them greater peace of mind.

“The survey reinforced to us that in this economy, retirement plans are essential to the health of businesses, families and communities,” said Brenda Seliga, senior vice president and head of Employee Benefit Solutions at SunTrust. “While we certainly understand the apprehension that exists as part of the current economic climate, we find it unfortunate that so many small businesses feel unable to offer retirement plans that can help their employees build solid futures.

For more information, visit http://www.suntrust.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

The FHFA report details the actions Fannie Mae and Freddie Mac have taken to prevent foreclosures and keep people in their homes. It analyzes data provided by the companies with adjustments to account for the impact of the foreclosure suspension. The suspension, originally set to end Jan. 9, 2009, was later extended to Jan. 31, 2009.

“Fewer homeowners are losing their homes as a result of the foreclosure prevention efforts,” said Director Lockhart. “We expect the numbers of those getting relief to grow further as the Making Home Affordable program picks up speed in coming months.”

The foreclosure prevention options include forbearance plans, payment plans, delinquency advances and loan modifications. Workout options that led to resolution of delinquent accounts, which means the account was either reinstated or removed from the portfolio, increased 15% in the last quarter of 2008.

The report shows that as of Dec. 31, 2008, of the Enterprises’ 30.7 million residential mortgages:

• Modifications represented 34.0% of fourth quarter loss mitigation actions up from 22.2% of the third quarter.
• Completed payment plans represented 19.0% of fourth quarter loss mitigation actions compared to 24.2% of the third quarter.
• Short sales represented 8.9% of fourth quarter loss mitigation actions compared to 7.7% of third quarter.
• Deeds in lieu represented 0.8% of fourth quarter loss mitigation actions compared to 0.7% in the third quarter.

As a result of increased loss mitigation efforts and the foreclosure suspensions, the overall loss mitigation performance ratio (loss mitigation actions as a percentage of mortgages for which foreclosure was likely) for mortgages serviced on behalf of Fannie Mae and Freddie Mac, increased from 55% during the third quarter of 2008 to 65.7% in the fourth quarter. For prime loans, the ratio increased from 45.1% to 54.2%, and for nonprime loans from 64.7% in the third quarter to 75.3% in the fourth quarter.

Suspensions gave servicers more time to work with borrowers in foreclosure who were eligible for the Streamlined Modification Program introduced in early November 2008. The impact of the suspensions caused December 2008 numbers for completed foreclosure and third-party sales to decline and for total loans, 60-plus, and 90-plus-days delinquent loans to increase.

When adjusted to account for foreclosure suspensions, the month-over-month change in the delinquency rates decreased. The month-over-month change in the 60-plus-days delinquency rate from October 2008 to November 2008 was an increase of 14.39%. The month-over-month change from November 2008 to December 2008 was an increase of 9.31%.

For more information, visit www.fanniemae.com or www.freddiemac.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Now is the time to separate general economic anxiety from personal financial reality. “Given all of the negative economic news of the past six months and our society’s newfound frugality, some otherwise well-off consumers are feeling a little awkward or uneasy about leisure travel this year,” said Doug Bower, vice president of AAA Travel and Financial Services. “For this reason, AAA wants to remind consumers there may never be a better time to travel than this summer.

By carefully assessing our individual economic circumstances and personal travel situation, many of us may realize traveling this year should not be seen as a guilty pleasure, but as something we should get out and enjoy. By going now, we also will be doing our part to get America’s economy moving again.”

AAA’s recommends a quick financial check and a companion “travel needs assessment” before deciding whether to take an extended vacation this summer.

Consumers should consider whether they are:
-One of the estimated 90% of homeowners who are consistently on-time with their mortgage payments, or are always on-time with their rent;
-Among those who have access to some emergency cash to protect against an unexpected financial setback;
-A borrower with a responsible credit history;
-Steadily working on other life-time financial goals, such as student tuitions and/or retirement savings;
-Have a history of steady employment with fairly predictable earnings or have a reliable fixed income;
-Have been able to afford and pay for leisure travel experiences with little difficulty in the past

AAA believes millions of Americans can positively answer these questions, providing reasonable assurance that a vacation trip - even an overseas journey, extended cruise or adventurous package tour - is definitely within reach this year.

Travel decisions are not always about dollars and cents
AAA further suggests travelers may want to self-evaluate their emotional need to travel this year.

The Association’s “Travel Needs Assessment” asks about recent or upcoming life experiences and travel patterns, including:

-Has it been more than 18 months since my last significant vacation?
-When I traveled last, did I bring work or family pressures with me?
-Have my recent travel experiences been to predictable and familiar destinations?
-Have I experienced a loss or other major change in my life that challenged my emotions?
-Am I about to mark a major milestone such as a birthday, graduation, anniversary or career change?
-Have I missed significant occasions when I should have celebrated or rewarded myself?
-Is there a family member or friend that is owed a long-overdue visit?

“Would-be travelers that answer ‘yes’ to any or several of these questions should make travel a high priority budget item this year,” Bower said. “We all need to refresh and renew our emotional well-being from time to time. A trip that is all about relaxation, expanding personal horizons, marking a special or significant occasion or time with family and friends is an excellent method of doing so.

For more information, visit http://www.aaa.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

It’s also the right time for refund recipients to consider meeting with a financial professional who can help establish financial priorities and goals.

“If you have outstanding bills or debts, take care of those matters first,” says Allstate Regional Financial Sales Leader Dan Mattingly. “But if you find you have money left over from your tax refund or have the full amount, don’t be scared of your options - be smart in your decisions.”

If you want your tax refund to work for you, consider the following options:

Set up an emergency savings fund. Simply essential. The old conventional wisdom advised saving enough money to cover three to six months of unemployment. Many financial professionals now recommend keeping enough money stashed away to cover six months to one year of unemployment.

Buy life insurance. Many people have only the life insurance plans offered by their employer, but your family needs protection whether you’re working or between jobs. There are two basic types of life insurance: term and permanent. A financial professional can help you determine the type and amount of protection you may need.

Contribute to or open an IRA. Yes, the market is unstable, but pulling out of a retirement plan altogether is not the answer. Both the traditional and Roth IRAs are great ways to save for retirement, although each offers different advantages. If you’re employed and have an IRA, continue contributing. If you’ve become unemployed, you might want to do a rollover from your retirement plan to a qualified IRA.

Purchase a CD. If you don’t need immediate access to your funds, you may benefit from the fixed interest rates available with a Certificate of Deposit (CD). You can buy a CD with a maturity or holding period as short as 30 days or as long as five years.

Start or add to a college fund. Pay for the present, or save for your child’s education? That’s the agonizing decision faced by many parents considering a 529 College Savings Plan. But what many parents may not know is that the plan portfolio has different investment allocations based on the age of your child.

For more information, visit http://www.myallstatefinancial.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Don’t miss these headlines on RISMedia.com:

• Has the Housing Slump Cut the Demand for New Real Estate Agents, Training?
  Cost-Effective Tips to Sell a Home
   

March retail sales released by the U.S. Commerce Department show total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) decreased 1.1% seasonally adjusted over February and decreased 10.6% unadjusted year-over-year. Retail industry sales for February were revised upward, increasing 0.3% instead of dipping 0.1% as originally reported.

“A chilly start to spring and a late Easter combined for dreary March sales,” said Rosalind Wells, chief economist for NRF. “To compensate for the Easter shift, retailers typically look at March and April together to get a better look at how their stores performed. Easter should give a much-needed boost to April sales.”

One of the only bright spots in March came from health and personal care stores, whose sales increased 0.4%t seasonally adjusted over last month and 3.5% unadjusted over last year. Food and beverage stores sales also increased 0.5% seasonally adjusted month-to-month but decreased 1.8% unadjusted year-over-year.

The shift in Easter sales also played a role in consumer purchases of clothing and clothing accessories. Sales at those stores decreased 1.8% seasonally adjusted from February and decreased 8.7% unadjusted over March 2008.

Electronics and appliance stores sales decreased 5.9% seasonally adjusted month-to-month and decreased 10.0% unadjusted year-over-year. Sales at sporting goods, hobby, book and music stores also decreased 0.9% seasonally adjusted over last month and decreased 3.0% unadjusted over last year.

For more information, visit www.nrf.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Like a lingering cold you can’t shake off, the economy’s blues just hang on. It’s not just our bottom line that’s been battered, but our psyches, too. And even if you haven’t lost your job or aren’t facing foreclosure, it’s often hard to feel good.

We can’t change the market’s ricocheting ride nor can we instantly Botox our bank accounts. But we can change how we take it all in. Here’s how:

Be grateful
If your paycheck’s been pinched or your job’s disappeared, it’s hard to feel thankful, but look around: The market popped up again last week for the fifth week in a row, U.S. jobless numbers were bad, but not worse than expected and California banking behemoth Wells Fargo reported a profit. Mortgage rates have fallen to historic lows as well.

Maybe these aren’t reasons to rejoice, but they’re hints that a recovery could be coming. Someday.

Let it go
It’s easy to get mired in mourning what we’ve lost, whether it’s a job or retirement savings.

Eventually, it’s time to move on. “Let go of the anger, the anxiety, the resentment, the baggage,” says Maureen White, a human resources veteran who runs a support group for laid-off Sacramento professionals. “Let go of your 2 a.m. ruminating: the ‘coulda,’ ‘shoulda,’ what-if scenarios that run through your head.”

White recommends talking it out with family, a friend, a counselor, or a support group. Use those conversations to assess what you learned and what you can take with you to your next endeavor.

Get out the door
Fight the tendency to hunker down and burrow under the covers. “Force yourself to take a break from thinking about the bad,” said professor Kimberly Elsbach, an organizational behavior expert at the University of California, Davis, Graduate School of Management.

Other ways to improve your mood, she said, are: “Exercise, don’t listen to TV news. Treat yourself to a sandwich with a friend or take a coffee break to lift your spirits.”

And if a furlough or layoff has knocked you out of work, Elsbach recommends this no-cost emotional boost: volunteering. “It gives you a sense of purpose, self-worth, self-fulfillment. Just because you’re not getting paid for work,” Elsbach said, “doesn’t mean you can’t be doing work that’s important.”

And there’s an added benefit to volunteering, she noted. “It’s a good place to network: You never know who you’ll meet.”

Reality check
Amid all the economic bad-news barometers, it’s challenging to keep perspective, especially for those immersed in it daily.

Fox News anchor Neil Cavuto says a dose of reality helps. “People have to realize it’s never as bad as the media reports on the downside or as wonderful on the upside. You have to have your own inner compass to relate to what’s out there.”

Take stock
And we don’t mean your shares of GE or Procter & Gamble. Instead, take note of bigger things in life than your 401(k) numbers. “If we define our existence by money, it can be a fairly shallow existence,” notes Cavuto.

It takes work
Staying sunny amid financial gloom can be daunting. “We’re human. It doesn’t come to us naturally,” said Cynthia Meyers, a Sacramento, Calif., certified financial planner. “We all have down periods where we don’t feel good about the world.”

© 2009, The Sacramento Bee (Sacramento, Calif.).
Distributed by McClatchy-Tribune Information Services.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

In a statement, the agency confirmed that certain life insurers are eligible to receive an unspecified amount of the money that remains from October’s $700 billion Wall Street rescue program.

“There are a number of life insurers who met the requirements for the Capital Purchase Program because of their thrift or bank holding company status. These companies applied within the appropriate deadline,” Andrew Williams, a Treasury spokesman, said in a statement. “These are among the hundreds of financial institutions in the pipeline that will be reviewed and funded as appropriate on a rolling basis.”

The $218 billion program was created as part of October’s bailout and is designed to help bolster the balance sheets of financial institutions. In exchange for receiving capital, participating companies provide senior preferred shares to the Treasury Department, paying a dividend of 5% annually for five years and 9% if the money hasn’t been repaid after that.

At the end of 2007, before the economy’s steep swoon, life insurers had assets under management exceeding $5.1 trillion, half of which was in corporate bonds. Life insurers are the largest buyers of corporate bonds, which mature over a long period. Insurers try to match these long-term investments to the risks they’re assuming as they guarantee retirees annuities that are dispersed over similarly long periods of 15 or 20 years.

The only insurer to date to receive bailout money is American International Group (AIG), which was brought to the verge of collapse by problems in its Financial Products division, not in its insurance business. The Federal Reserve rescued AIG on Sept. 15 with an $85 billion bailout that’s grown since to about $180 billion.

In order to receive the funds, life insurers must own a regulated bank or thrift. Companies that met this qualification and sought funds include the Hartford Financial Services Group and Lincoln National.

Prudential Financial already owned a thrift and has also applied for taxpayer funds. Two other insurers, Genworth Financial and MetLife, qualify for funds but hadn’t indicated whether they’ve sought rescue money or would in the future.

The American Council of Life Insurers, a trade group, welcomed the confirmation by Treasury that government funds are forthcoming.

“As we have argued all along, allowing life insurers to participate in the (program) would be consistent with the stated goals of the program to increase the flow of financing to U.S. businesses and stabilize the credit markets,” Frank Keating, the council’s president and a former Oklahoma governor, said in a statement.

Many life insurers offer consumers variable annuities that pay a guaranteed return, regardless of whether bulls or bears are running the stock market. Although the obligations require payment years off, the financial markets are in such turmoil that life insurers are being forced into protective strategies that make it hard to offset the risks they’ve assumed.

The money from the Treasury Department program will allow life insurers to wade back into the corporate bond market without significantly affecting their operating capital.

The life insurers’ council said the bailout was for a broader good. Keating said that the goal of the program “is to provide capital to the marketplace in order to unclog credit and financing that corporations rely on to grow and in turn hire new workers. “Providing this funding to life insurers would clearly be in line with this goal,” he said, acknowledging the unusual nature of Treasury’s decision, “particularly concerning an industry that does not have a federal regulatory presence.”

© 2009, McClatchy-Tribune Information Services.
www.mcclatchydc.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

“Every year, thousands of working taxpayers don’t file tax returns because their income levels don’t require it and they may not realize they are due a refund,” said Mark Steber, vice president of tax resources at Jackson Hewitt. “With the tough economic conditions, it makes sense this year, more than ever, for individuals who have not previously filed to consider whether they may be missing out on cash that they’re entitled to.”

Individuals who did file a 2005 individual income tax return should be mindful of the deadline, too, Steber added. Taxpayers have three years to claim a refund or amend a return for a given tax year. So a taxpayer who itemized deductions for 2005 and later realized he or she qualified for a deduction or credit that was missed, still has time to claim it. But after April 15, 2009, the IRS will no longer provide refunds for individuals who file a tax year 2005 income tax return and are deserving of a refund.

One credit both filers and non-filers may have missed is the Earned Income Tax Credit (EITC). Generally, unmarried individuals qualified for the EITC if in 2005 they earned less than $35,263 and had more than one qualifying child living with them, earned less than $31,030 with one qualifying child or earned less than $11,750 and had no qualifying child. Married individuals who file jointly had slightly higher income limits.

Other commonly overlooked credits and deductions include:

-Interest paid on a student loan
-Mileage incurred performing charitable activities
-Select home office expenses (if the home is your primary place of business)
-Alimony payments, but not child support
-Half of self-employment tax paid
-Points paid on a mortgage or refinancing
-Payments made for health insurance by the self-employed
-Contributions to a retirement savings account like an IRA
-Required uniforms and work clothes that are otherwise not suitable for street wear

Steber notes that there is no penalty for filing late when a refund is owed. However, refund checks for 2005 may be held if an individual also did not file a return for 2006 or 2007. Taxpayers who did not file returns for 2006 and 2007 also should determine whether they are due a refund for those years, too, he added. Refund amounts will be reduced by any debt owed to the IRS or to the federal government.

“The best way to be sure you’re not leaving money on the table is to consult with a tax preparer who is knowledgeable about all of the deductions and credits and who can help determine the ones that apply to you,” Steber said.

For more information, visit http://www.jacksonhewitt.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

“I’ve been through about four refinance crazes in my career, and this is the most significant I’ve seen,” said Marshall Boyd, co-president of Southwest Bank Mortgage and a founding and managing partner of Williams Trew Real Estate Services.

“The No. 1 reason is that rates are lower this time,” Boyd said. “I never dreamed we would be refinancing people with loans in the 5’s to loans in the 4’s.”

Linda and Jeff Hochster watched rates for several months before refinancing their home in Fort Worth’s Mira Vista neighborhood. “We started doing research and reaching out to brokers. We just kept watching as the rate was falling over the last 45 days,” said Linda Hochster, a retired public relations manager for Southwest Airlines.

Rates took another step down in March when the Federal Reserve committed to buy up to $1.2 trillion in mortgage-backed securities and $300 billion in government debt.

“It was like the perfect storm,” Linda Hochster said. “Everything was lining up. We put the deal together in two days.” They refinanced their 15-year, 5.5% loan to 4.38% on a 10-year note. Their costs were about $3,400. “They rolled everything in (to the new loan), and it cost us basically nothing out of pocket,” Linda Hochster said.

Jim Gaines, research economist at the Real Estate Center at Texas A&M University, calls it an unusual opportunity.

“Most of us are old enough to remember 8 and 9 percent rates. It limited your housing choices. That’s why people are jumping on this,” Gaines said.

But the low rates aren’t available to everyone. You need a strong credit rating, a low debt ratio and at least 20% equity in your home to qualify.

“Things are different now,” said Troy A. Fore Jr. of Fort Worth-based Intrust Mortgage Inc. “At one time, just about anybody with a pulse could get a loan. These rates are for people with strong credit scores and fully documented incomes and home equity.”

Fore said applicants must have a credit score of 620 or higher, and are likely to pay higher costs if their score is below 740. “There is more discussion about credit and credit quality than we’ve had in many, many years,” he said.

There are unavoidable costs to refinancing, including loan origination fees, title fees and lender fees. In general, Fore and Motley agreed, a borrower can expect to pay between 2.5% and 3% of the loan value in refinancing fees.

Robin Smith, vice president of Cornerstone Mortgage Co. in Colleyville, Texas, says a major factor to consider is how long you plan to stay in your home. “We are telling people that the general rule to recoup costs in refinancing is 18 to 24 months. We’ve lived by that forever,” Smith said.

Generally, you need to lower your rate at least a full percentage point to make refinancing pay off, Smith said

Fore also believes that the market is now testing the bottom. “Only more really bad news will lower the rate. And I don’t think we want that,” he said. “Good news will turn the rates back pretty quick.”

Gaines predicts that rates will stay low through early 2010. “This is a guess,” he said. “But in five years, this might be viewed as the most opportune time to refinance a house in our lifetime.”

Should you refinance?
-Consider it if your interest rate is above 6%.
-Expect to pay 2.5% to 3% of your loan total for closing costs.
-As a rule, you should recoup the cost of a loan in 18 to 24 months.
-To get a low rate, lenders will expect a strong credit report and at least 20% home equity.

© 2009, Fort Worth Star-Telegram.
Distributed by McClatchy-Tribune Information Services.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Results of the Index’s March 2009 survey indicate that less than a quarter (22%) of Americans who put money into short-term savings last month are extremely or very stressed about the current economy. In contrast, about one third (34%) of Americans who did not save in March felt stressed.

“The practice of saving increases financial optimism,” said Scott Spiker, CEO of First Command. “The March results reveal that in a time of great economic turmoil and uncertainty, saving even as little as $5 can reduce feelings of stress.

Financial optimism isn’t dependent on how much one has accumulated in savings. Rather, it’s the practice of saving that creates an emotional lift.”

Many respondents indicated they feel unsure about increasing their savings. More than one-third (35%) agree that they feel uncertain about whether they should use their money to increase savings or pay down debt. This hesitancy is unfortunate as First Command’s ongoing research reveals that an individual or family can have some debt and still feel optimistic and financially secure-as long as they’re disciplined in their approach to savings and diligent in paying down debt.

“As the ratio of savings to debt increases, so do feelings of financial security,” Spiker said. “The savings-to-debt ratio is perhaps the most significant contributor to feelings of financial optimism, for as one’s savings-to-debt ratio increases-meaning more savings, less debt-feelings of financial security increase, and feelings of being financially stretched decrease.”

The survey indicated that Americans are continuing to tighten their belts. They are reducing spending on leisure activities (56%), clothing purchases (52%) and household goods consumption (42%. At the same time, they may be slightly more optimistic about the length of time they’ll need to continue these cost-cutting behaviors. In March, 28% of respondents indicated that they would continue to cut back on spending for one year or less compared to only 22% in February. News reports suggesting that the recession may be over by the end of the year, combined with an uptick in the stock market, may have contributed to the heightened sense of optimism.

On a promising note, 10% of Americans said they cut back in the past year by working with a financial planner. These individuals and families are less likely to feel extremely stressed about the current economic situation than those without a financial planner. Just seven percent of Americans with a financial planner are extremely stressed about the economy compared to 10% of Americans without a financial planner.

“A great way to combat stress is by working with a financial planner,” Spiker said. “The assistance of a knowledgeable professional can encourage disciplined, lifelong behaviors that enhance financial well-being and long-term security for oneself and one’s family.”

For more information, visit www.firstcommand.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Sixty-six percent of consumers are “very confident” in their primary bank at this time - an increase from the 61% low recorded in January 2009. This uptick follows months of steady declines which saw confidence fall from 71% in September 2008 to its low point in January 2009.

“Consumers are noticing the roll out of federal programs designed to strengthen the banking system,” said Tom Hartley, vice president of Satisfaction and Loyalty at Morpace. “After months of declining confidence, this increase may signal a return to the high levels of confidence that we normally see. It was very unusual for consumers to doubt their own institution, so the increase in confidence is very reassuring,” Hartley added.

Confidence in the “financial strength of banks in general” has also risen, with 36% now saying they are “very confident” - up significantly from January’s bottom of 32%. Confidence in banks in general had previously declined steadily from 44% in September 2008.

Morpace Omnibus Study interviews were completed between March 24-27 with 1,015 consumers selected from an Internet panel of adults aged 18 and over.

About Morpace Inc.
Morpace is a full-service survey research and consulting organization specializing in automotive, financial services, health care, retail and technology.

For more information, www.morpace.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

KPMG’s third annual Global Consumers and Convergence survey of more than 4,000 people in 19 countries worldwide, which examines trends in the use of mobile technology, revealed that 85% of U.S. respondents believe mobile banking is important but they do not want to pay for it. The overwhelming majority of U.S. respondents said they had never tried banking through a mobile device (91%).

Of those respondents who have not conducted banking through a mobile device, 48% cited security and privacy as the primary reason.

“Mobile banking is another vehicle banks can utilize to make banking more accessible to customers,” said Carl Carande, a principal in KPMG LLP’s Advisory and Banking and Finance practices. “Consumers value banking services that make their lives simpler and more manageable and mobile banking affords this convenience, so banks that address concerns over security, privacy, and costs may be better able to retain existing customers and attract new ones.”

Some 68% of U.S. respondents also said that their current bank does not offer banking through a mobile device and only nine percent said they had tried mobile banking.

“The fact that the majority of U.S. consumers are not aware that their current banks offer mobile banking is clearly more perception than reality,” added Carande. “Banks will need to work harder to increase customer awareness of the availability of mobile banking and clearly articulate the value proposition of the service before consumers are willing to pay for it - especially in this economic environment.”

Despite the pricing, privacy, and security concerns, 19% of U.S. respondents said they are at least “somewhat likely” to use their mobile device for online banking in the next 12 months. In addition, seven percent said they are willing to pay at least a nominal fee to access online banking services from their mobile device.

Mobile Payments and Financial Transactions Findings
According to the survey, the majority of U.S. consumers also are not comfortable with using their mobile device for financial transactions (66%).

With regards to payments, 95% of U.S. respondents said they never made a purchase from a vending machine using their mobile device and 95% said they never made a purchase using a mobile device through a retailer’s mobile website, further suggesting an unfamiliarity or lack of comfort in using a mobile device for transactions and payments.

“U.S. consumers - as well as worldwide - need to be convinced that new payment methods and banking vehicles are safe and secure for them to succeed,” said Mitch Siegel, director of payment advisory services in KPMG LLP’s Financial Services practice. “Once these concerns are addressed, consumer confidence can grow and adoption could potentially increase.”

“With high mobile device penetration rates, U.S. consumers are accustomed to using the mobile channel to access data,” added Siegel. “And it may only be a matter of time before they grow comfortable with using - and potentially paying a premium to use - the mobile device for browser-based and point-of-sale, ‘contactless’ financial transactions.”

“Banks that include the mobile channel as a component of their payment strategy - including a roadmap of products and a tactical plan - will position themselves well for the future,” concluded Siegel. “As part of this effort, banks will need to address complex arrangements for account ownership and revenue sharing between device manufacturers, carriers, merchants and application/network providers. The navigation of these complex arrangements may help drive consumers’ eventual adoption of the mobile device as a ‘virtual wallet’ and the culmination of a channel that could represent the ultimate convergence of payment instruments.”

For more information, visit http://www.us.kpmg.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Results from both polls are sure to be welcome news to President Barack Obama and his Treasury Department, which has spent the past two months working round the clock in an effort to reverse the worst economic crisis since the Great Depression.

The Ipsos/McClatchy tracking poll found that 52% of Americans now think the U.S. economy has stabilized. That’s well up from the 35% who felt that just four weeks earlier. “That’s a 17-point bump. It’s congruent with what were kind of seeing … people are feeling at least that the bottom has bottomed out I guess, and at least were stabilizing,” said Clifford Young, an Ipsos spokesman.

Only one in three Americans thought the worst of the economic crisis is still to come, compared to 57% last month.

And in another bit of good news, 72% of poll respondents expected the $787 billion economic stimulus package to show results in a period beyond six months. It suggests that the Obama administration’s plea for patience seems to have created expectations for a recovery over a longer horizon.

“I think that would be consistent with the reports we are seeing out of the economy that are now popularly called these ‘green shoots.’ There is no doubt that there is less bad news around, unemployment aside, that would be consistent with consumers thinking things are not going to get worse,” said James Dunigan, managing director of investment for PNC Wealth Management in Pittsburgh.

Among the “green shoots” of a recovery are lower mortgage rates, which have prompted new refinancing and some growth in new home purchases. Other boosts to consumer confidence include lower gasoline prices, some reduction of payroll taxes as part of the economic stimulus plan passed by Congress and tax rebates going out ahead of the April 15 filing deadline.

That’s not to say that there aren’t risks ahead, not the least of which is that credit markets remain tight and lending restrained. The Treasury Department by month’s end will have completed stress tests on the country’s 19 largest banks, and the results could lead to new concern about the banking sector.

And in the coming weeks, the Obama administration will implement its program to co-invest in the so-called toxic assets. If that doesn’t go well, it could lead to more uncertainty.

There’s been a steady stream of bad news since last September, and month-by-month through March, when the RBC Cash Index set new lows for consumer confidence.

“However, either through the efforts of government and business to correct the situation or from consumers’ own weary acceptance of their new, diminished, circumstances - consumer confidence has shown a significant improvement for the first time in half a year,” the survey’s authors concluded. “This increase is also bolstered by the continuing improvements in confidence in real estate and hopefully marks the start of a trend marking improved consumer confidence.”

© 2009, McClatchy-Tribune Information Services.
www.mcclatchydc.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

The Refinance Index increased 3.2% to 6,813.5 from 6,600.1 the previous week and the seasonally adjusted Purchase Index increased 11.1% to 297.7 from 268.0 one week earlier. The Conventional Purchase Index increased 7.7% while the Government Purchase Index (largely FHA) increased 17.1%.

The four week moving average for the seasonally adjusted Market Index is up 13.3%. The four week moving average is up 4.2% for the seasonally adjusted Purchase Index, while this average is up 16.0% for the Refinance Index.

The refinance share of mortgage activity decreased to 77.9% of total applications from 79.1% the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 1.5% of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages increased to 4.73% from 4.61%, with points remaining unchanged at 1.03 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages increased to 4.49% from 4.45%, with points decreasing to 0.93 from 1.04 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year ARMs increased to 6.23% from 6.20%, with points remaining unchanged at 0.14 (including the origination fee) for 80 percent LTV loans.

For more information, visit www.mortgagebankers.org.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Sick of being stuck with a dozen mutual funds in his workplace retirement plan, Tim Olson rolled over his 401(k) to a self-directed IRA and is building townhouses in Wells, Minn. A self-described “hands-on” kind of guy, Olson likes to keep his IRA money in town, using local contractors and investing in CDs from a local bank. A self-directed IRA lets him do that. “The biggest appeal is the options; I’m not limited to mutual funds.”

Both Fafinski and Olson are part of a growing number of investors turning to self-directed IRAs. “The worse the stock market does, the more business I get,” said Todd Grill, principal of Entrust Midwest, a company that administers self-directed IRAs.

Investors with self-directed IRAs go out and find the asset to invest in rather than relying on the universe of mutual funds and other investments available through companies such as Charles Schwab or T. Rowe Price.

Like traditional individual retirement accounts, self-directed IRAs have the same contribution limits and rules for withdrawing money. The difference is what’s inside these accounts - real estate, gold or shares of a privately held business, to name some examples. Grill tells clients they can be like Buffett. “Warren Buffett invests in private companies. Warren Buffett invests in real estate. Warren Buffett invests in precious metals. Warren Buffett does foreign currency trading. Now you can do exactly the same thing, but on a smaller scale.”

In a nutshell, here’s how a self-directed IRA works. You open an IRA through a company such as Entrust, Equity Trust, Guidant Financial or Pensco Trust. The company then acts as the trustee of your account and facilitates investments on your behalf. But you find the investment opportunity and do the due diligence.

Grill has clients invested in ethanol, wind energy, real estate in Mexico, even movies. Clients can also use money to finance a business start-up, which Grill thinks could be a popular option for laid-off workers.

Grill’s average client is 50 years old and financially sophisticated with assets available to put to work. Many are buying foreclosed properties in north Minneapolis, using IRA money to make improvements, and selling the properties for a profit. The profit goes back into the IRA to be taxed as ordinary income once the client makes distributions in retirement.

But these IRAs aren’t for everyone. You need expertise as well as money.

Todd Terhorst, a certified financial planner with Diversified Wealth Management in St. Louis Park, Minn., suggests clients have around $50,000 to dedicate to self-directed investments and to keep the rest in more traditional, stocks, bonds and cash. But what’s most important is a willingness to be hands-on and do the research. Otherwise, there are other options for diversification.

“Nowadays, at smaller dollar values, we can get exposure to very unique asset classes, whether it’s precious metals or real estate or managed futures or currency, in more traded vehicles,” said Terhorst. These assets are a lot easier to sell than are physical assets such as gold or property.

You also need to think about why you’re making an investment. Clients needing more cash flow today would not want an asset locked up in a retirement plan for years - or decades. Then there are taxes. Terhorst says, for instance, that owning a rental property within an IRA can change the tax treatment of current rental income and future profits from selling the property. On the other hand, you’re using pretax money to make the investment and tapping what may be the only funds you have to make the purchase.

Investors must follow IRS rules exactly or be hit with full distribution of your retirement plan plus penalties. Some no-nos: No self-dealing, or doing anything that benefits you before you retire. No buying or selling assets from close relatives. No buying a vacation property for your family to use. No hiring your own remodeling company or the company of a close relative to fix up real estate owned in your IRA. There are some exceptions, so it pays to work with an adviser familiar with these IRAs and their rules.

If you don’t have enough money in your IRA, you can pool funds from different IRAs. For example, Fafinski bought the townhouse using money in his IRA and Education IRAs for his kids. You can also take out a loan to buy property, but that’s a complicated technique that needs professional hand-holding.

Then there are the restrictions for what you can buy inside an IRA. No life insurance, S corporations or collectibles.

As for fees, companies such as Entrust can be paid based on the value of an asset, or based on how many assets you own inside a portfolio. Grill said it costs $50 to open an account and his average client pays a $250 to $300 annual fee. There are also small charges for investment transactions, check writing and wire fees.

Like any investment, assets owned in your self-directed IRA can go down.

© 2009, Star Tribune (Minneapolis)
Distributed by McClatchy-Tribune Information Services.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

The study was developed by OfficeTeam and the International Association of Administrative Professionals (IAAP) and includes responses from 549 administrative professionals in the United States and Canada and 300 managers in the United States.

The top forms of recognition valued most by administrative professionals, as ranked by managers and support staff are as follows:

The research also revealed how instrumental recognition is in attracting and retaining professionals, even in a soft economy. Two out of three (66%) administrative employees polled said they would likely leave their jobs if they did not feel appreciated by their manager. And seven out of 10 (70%) support professionals said the company’s recognition program would factor into their decision to accept a job with a potential employer.

“While financial rewards should not be overlooked, the research shows there are other ways to effectively recognize someone’s commitment and dedication,” said Robert Hosking, executive director of OfficeTeam. “Administrative professionals are working harder than ever, but their accomplishments usually occur behind the scenes. Therefore, praise from supervisors or colleagues that is specific, immediate and genuine can go a long way toward keeping these employees motivated and loyal.”

Managers also should recognize the value administrative personnel place on professional development. “When support staff receive association memberships or registration to a seminar or conference, both the employee and company benefit,” said Barbara Horton, IAAP’s 2008-09 international president, who holds the Certified Administrative Professional designation. “The small investment in education pays big rewards when administrative staff share new skills with colleagues and increase efficiencies at their organizations.”

Hosking noted that with Administrative Professionals Week around the corner, it’s an opportune time for managers to sit down with their office support staff and discuss which rewards they find most meaningful. “Many people view Administrative Professionals Week as a time to show appreciation to their assistant with lunch or flowers, but it may be more meaningful to discuss his or her career path and growth potential,” he said.

For more information, visit www.officeteam.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Striking a Balance between Home and Office

To advance the process, employers are helping workers set up home offices and are securing virtual office locations for them to use instead of heading to the main office. As a result, companies are able to shed costly office space and employees are realizing substantial savings on commuting costs and improved productivity.

In addition to basic, but necessary, office equipment like fax machines and copiers, virtual office users have access to furnished offices, meeting rooms, business lounges and videoconferencing studios. They also have the opportunity to network with other professionals in a business environment quelling the fear of isolation as they adjust to a new work style.

Based on Regus calculations, companies can save up to 60% to 80% on their real estate costs by implementing flexible workplace strategies. Virtual offices are playing a major role in how businesses support employee needs. Consequently, Regus reports a trend of increasing month-on-month demand for the product.

Virtually There - Businesses Test Markets with Minimal Risk

While virtual offices benefit companies looking to trim property expenses, they also serve as a resource for businesses interested in testing new markets without taking on additional costs and risk.

CAPCO Health Group, Inc. a provider of healthcare services in the North American medical insurance community has been a Toronto-based Regus client since 2000 and is using virtual offices to pursue new business opportunities.

“For as little as a few hundred dollars a month, virtual offices allow us to move into additional markets such as Mexico and Central America,” said Ernie Gershon, President and COO of CAPCO.

“The services, along with the office and meeting space we use, vary depending on the market and our ever-changing needs.

Establishing a presence with virtual offices allows businesses to avoid costly upfront capital expenditures and minimize their risk.

“Second to payroll, real estate is a company’s second largest fixed expense. Increasingly, real estate expenses will come down for businesses who adopt flexible working practices. This newly-saved capital can be re-directed back into the business,” said Dixon.

For more information, visit www.regus.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

The study, based on an in-depth national survey of 1,001 Americans, is being released in conjunction with “Planet Forward,” (www.planetforward.org) an innovative Web-to-television-to-Web initiative produced by the Public Affairs Project of The George Washington University, designed to advance the discussion on energy and climate change with both citizens and leaders submitting their ideas.

The public’s interest in energy alternatives is broad and not necessarily dependent on its worries about gas prices, according to the survey. Three quarters of the public (73%) disagrees with the statement that “if we get gas prices to drop and stay low, we don’t need to be worried about finding alternative sources of energy,” and 53% “strongly disagree.” While the survey found consensus on many aspects of the energy challenge, there are also significant barriers in building public support for change.

“Perhaps no challenge facing the United States today is more dependent on public support and consumer action than energy,” according to Daniel Yankelovich, Public Agenda’s chairman and social scientist, who developed the Learning Curve concept of public understanding. Citizens typically move through distinct stages, from first, initial consciousness of the problem to a second stage of “working through” the tradeoffs in different options and then finally, to resolution about solutions. “The challenges involved in solving our energy problems and getting public support for those solutions are difficult but far from insurmountable. Given what’s at stake, it’s essential that progress up this learning curve accelerate as quickly as possible,” Yankelovich said.

As part of the Learning Curve analysis, Public Agenda identified four broad clusters of public opinion based on their attitudes, values and knowledge; the Anxious (40%), the Greens (24%), the Disengaged (19%) and the Climate Change Doubters (17%). The steep learning curve required for all four groups poses challenges for policy makers.

Common Ground on Alternative Energy and Taxes

Despite the many differences in public attitudes and gaps in knowledge, there is widespread public support on a number of policies that the nation could pursue, particularly around alternative energy, conservation, and incentives to become more efficient. A number of proposals have more than two-thirds support:

- 86% agree that investing in alternative energy will create many new jobs (45% believe this strongly)
- 84% support more investment in fuel-efficient railways (47% strongly)
- 81% support tax rebates to individuals who reduce energy use (44% strongly)
- 79% support tax rebates to businesses (41% strongly) who reduce energy use
- 78% want higher gas-mileage requirements for cars (50% strongly)
- 74% say developers should be required to build more energy-efficient homes (32% strongly)
- 73% support tax credits to purchasers of hybrid automobiles (38% strongly)
- 72% want to reward businesses that reduce carbon emissions and penalize those that don’t (37% strongly)
- 71% agree that more tax money should be spent on public transportation (33% strongly)
- 68% want the nation to take steps to gain energy independence even if it raises energy costs (24% strongly)

By contrast, majorities oppose measures that would force change by increasing the cost of driving, such as setting a “floor” on gasoline prices (72%, with 58% strongly opposed), congestion pricing (61%, 41% strongly) and higher gas taxes.

Some 57% reject a gas tax even when it would be used to achieve energy independence, with 37% strongly opposed.

“Very often politicians and the media focus on the deep divisions in our society, and those divisions are real enough. Yet despite many differences among citizens, there is important common ground on a range of solutions to the energy challenge. The Energy Learning Curve(TM) survey is proof that people can have very different starting points and end up at the same place,” said Scott Bittle, Public Agenda executive vice president and director of public issues analysis.

Four ‘Clusters’ of the Public

Public Agenda’s study found four clusters of people with distinctive values, beliefs and knowledge. While they come at this problem from very different perspectives, they sometimes end up with similar views on solutions. The groups include: the largest group, the Anxious, account for 40% of Americans. Worried about energy costs, oil scarcity and global warming, they favor conservation, regulation and development of alternative energy sources. They tend to be younger, lower income and have less knowledge about energy issues.

The second largest cluster, the Greens, represent 24% of the public, strongly favor conservation and developing renewable energy over drilling for oil. They are willing to pay more to develop renewable energy. Politically moderate, they tend to be higher income and more knowledgeable about energy issues.

The Disengaged group comprises 19% of the public and can be described as politically moderate, lower income and disproportionately older and female, with limited knowledge and concern about energy issues.

Finally, 17% are Climate Change Doubters, who do not consider global warming a problem. They are politically conservative and support more nuclear power and expanded domestic oil drilling.

Public Primarily Troubled by Energy Prices and Oil Dependence

Right now, the majority of the public sees the price of energy and the problem of oil dependence as deeply troubling problems. Climate change is a lesser concern.

Overwhelming majorities worry about increases in the price of gas and fuel (89% overall, with 57% saying they worry “a lot”).

Concern about dependence on foreign oil is almost as high at 83% (with 47% worrying “a lot”).

Concern about climate change is much less intense. While 71% say they’re at least “somewhat” worried about global warming, only 32% say they worry “a lot.”

Barriers to Public Engagement

The study found most Americans tend to focus on one or two aspects of the “energy problem,” such as prices or climate change, not recognizing their connection to other issues.

Despite consensus on certain solutions, misconceptions and lack of knowledge hinder informed judgment and create a disconnect between the public and policy makers. For example, half of all Americans could not identify a renewable energy source, nearly 4 in 10 cannot name a fossil fuel, two-thirds overestimate U.S. dependence on Middle Eastern oil, and more than half think that by reducing smog, the United States has gone “a long way” in addressing global warming.

“Better information, by itself, isn’t enough,” Yankelovich said. “It would be a terrible mistake to assume that if and when the knowledge gap is filled, the public will then be ready to support sound policies. People can absorb factual information much faster than they can overcome wishful thinking and denial or accept far-reaching changes in habits and lifestyles.”

As Yankelovich says: “This is a unique challenge to policy makers: the combination of a fast-moving, complex problem and a comparatively slow-moving public trying to come to grips with it. While the challenges are significant, and the hurdles extensive, there’s nothing in our research to suggest that they’re insurmountable. The American public has grappled with complex challenges.

Given committed leadership and the right conditions, the public can come to firm, sound conclusions. Energy is the next big challenge, and given the right circumstances, can be the next success.”

For more information, visit www.planetforward.org and www.publicagenda.org.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.