The Elite Mortgage Daily Blog

Coping with Debt | Consumer Information

noreply@blogger.com (Unknown) — Sun, 09 Jun 2013 04:35:00 +0000

Coping with Debt | Consumer Information

Feasting on American Homes

noreply@blogger.com (Unknown) — Wed, 14 Mar 2012 01:53:00 +0000

Conforming Loan Limits

noreply@blogger.com (Unknown) — Thu, 17 Nov 2011 05:57:00 +0000

Conforming Loan Limits

Focus: Senate Repeals Onerous 1099 Requirement in Health Care Law

noreply@blogger.com (Unknown) — Fri, 04 Feb 2011 05:50:00 +0000

NAM Capital Briefing.....Excerpt

Although the Senate failed on Wednesday, February 2, to repeal the 2010 Patient Protection and Affordable Care Act, senators voted 81-17 to repeal the burdensome 1099 provision in the health care law. Under the new IRS reporting requirement, beginning in 2012, all businesses will have to file a 1099 form with the IRS for all purchases of property and services that cost over \$600. Previously, businesses have only reported purchases of services from non-corporate businesses. This costly and burdensome requirement would represent a significant compliance problem for businesses of all sizes, and the NAM has been steadfast in its opposition to this onerous rule.

In a statement following the vote, NAM Senior Vice President for Policy and Government Relations Aric Newhouse said, “Manufacturers are pleased that the Senate has voted to wisely lift one of the many regulatory and policy burdens imposed on employers as part of the health care bill. This is an important first step and, we hope that the House will soon follow suit so that full repeal of the 1099 burden can be signed into law.”
The larger vote to repeal both the Patient Protection and Affordable Care Act and health care-related provisions in the 2010 budget reconciliation law, introduced by Senator McConnell (R-KY), was defeated along party lines, 47-51. The NAM notified senators that all votes on Senate Amendment 13 would be designated for consideration as Key Manufacturing Votes in the 112th Congress.
Additionally, on January 31, U.S. District Judge Roger Vinson ruled that the legislation is unconstitutional because its “individual mandate” that requires individuals to purchase insurance by 2014 violates the Commerce Clause.
The U.S. Department of Justice will appeal the ruling to the 11th Circuit Court of Appeals, and will likely ask the court to stay the effects of the ruling pending appeal. According to the Wall Street Journal, the 26 states that are party to the lawsuit are now considering whether ask the Supreme Court to step in a make a ruling now, rather than let the matter work its way through the lower courts.
The ruling has thrown into flux the process of implementing the health care law at the state level. Some states, such as Florida, have decided that they can immediately stop implementing the law, while others are continuing to move forward with implementation.
Some two dozen lawsuits have been filed in federal courts since the law was passed last March. Prior rulings have deemed the individual mandate unconstitutional but have let the rest of the law stand. If the Vinson case is not heard by the U.S. Supreme Court, one or more of these other cases is expected to be.

“Health care legislation passed in 2010 will drive up manufacturers’ health care costs and force many companies to consider abandoning the generous benefits they currently offer. Our nation can and must do much better at finding a health care solution, and the 2010 legislation must be repealed,” said Newhouse in a letter to all senators.

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H.R. 4646 - Summary: Debt Free America Act (GovTrack.us)

noreply@blogger.com (Unknown) — Fri, 05 Nov 2010 02:41:00 +0000

H.R. 4646 - Summary: Debt Free America Act (GovTrack.us)

Key Differences Between Home Loan Delinquency and Home Loan Default

noreply@blogger.com (Unknown) — Mon, 10 Aug 2009 19:40:00 +0000

By [http://ezinearticles.com/?expert=Kevin_Sandridge]Kevin Sandridge

ith foreclosures taking up so much space in the headlines these days, we've been conditioned to think of it as the first and final step in a mortgage loan gone bad scenario. However, there are two steps that come before the foreclosure process begins - namely: mortgage delinquency and mortgage default. Here are the differences between the two:

Delinquency

A mortgage borrower becomes delinquent on payment of their loan when they fail to pay their mortgage payment on the due date. Even if we're talking one day late, your mortgage becomes delinquent as soon as your actual payable due date is passed. Now, your lender likely allows you a set period, which can be between as many as 15 to 30 days out, before they assess any sort of late payment fee. But... Go up to or beyond the 30 day late mark, and your lender will send a friendly little note to at least one of the 3 major credit bureaus - letting them know you've been very, very naughty.

Should this happen to you, don't worry too much. As long as you get back on track and make nice nice with your lender, you should be in good shape. Sure, you'll have that 30 day late ding on your credit report, but steady payments over time from this point forward will get you back in good standing.

Should, for some reason, you fall behind in your mortgage payment beyond the 30 day period, and then on into an extended period, your mortgage will then move into default territory.

Default

Normally, when you fail to make as many as three or more of your home loan payments, your mortgage will normally move into default status.

Folks, this isn't pretty. Once your home loan moves into default, the Legal Team of Dewey, Cheat'em, and Howe get the nod.

They'll likely begin foreclosure proceedings, and you'll be required to get caught up completely on your mortgage loan if you want to avoid moving into the full foreclosure process. Oh, and there's also a chance that you'll be charged fees to pay back your lender for whatever they paid their legal firm. Yeah, I know. You can almost hear that cash register bell ringing.

Was this article helpful? If so, then please visit my [http://www.floridahomeloansspecialist.com]Florida Mortgage website for more useful tips and advice.

About the Author

Kevin Sandridge is a [http://www.floridahomeloansspecialist.com]Florida Home Loans Specialist who provides his clients with customized, well-reasoned, Florida home loan finance solutions.

Article Source: http://EzineArticles.com/?expert=Kevin_Sandridge http://EzineArticles.com/?Key-Differences-Between-Home-Loan-Delinquency-and-Home-Loan-Default&id=2727130

HUD SECRETARY DONOVAN ANNOUNCES EXPANDED ELIGIBILITY FOR MAKING HOME AFFORDABLE REFINANCING

noreply@blogger.com (Unknown) — Wed, 01 Jul 2009 21:34:00 +0000

Announces eligibility for borrowers up to 125% underwater in Las Vegas with Senate Majority Leader Harry Reid and Congresswoman Dina Titus

WASHINGTON - U.S. Housing and Urban Development Secretary Shaun Donovan today announced an expansion of the Obama Administration's Home Affordable Refinance Program to include participation by borrowers who are current but up to 125 percent underwater on their mortgage. Under authorization provided by the Federal Housing Finance Agency, borrowers whose mortgages are currently owned or guaranteed by Fannie Mae and Freddie Mac will now be allowed to refinance those loans according to the terms of the Home Affordable Refinance program established earlier this year.

Secretary Donovan made the announcement while touring a neighborhood in Las Vegas with Senate Majority Leader Harry Reid (D-NV) and Congresswoman Dina Titus. Las Vegas leads the nation in foreclosures and approximately 67 percent of the current mortgage holders have mortgages that are higher than the worth of their homes.

"I am here in Las Vegas because it is ground zero of the foreclosure crisis," Secretary Donovan said. "I am pleased to join Senator Reid and Congresswoman Titus to make this announcement today, which I believe will make a critical difference in our ability to help many more Americans, particularly those here in Nevada, to stay in their homes. The president's Making Home Affordable plan is already helping far more families than any previous foreclosure initiative and with today's announcement we will extend its reach still further."

"I am pleased Secretary Donovan accepted my invitation to come to Nevada and see firsthand the challenges homeowners here are facing," Senator Reid said. "His announcement that the loan-to-value requirement for the Administration's refinance program has been raised to 125 percent is good news for Nevadans fighting to stay in their homes. The neighborhood we visited today represents the hardships caused by the housing crisis and the hope that is being restored through the neighborhood stabilization program and the Home Affordable refinance program."

"I am pleased to welcome Secretary Donovan to Las Vegas and thank him for coming. This is an opportunity to show him firsthand the magnitude of the foreclosure crisis in Southern Nevada," Congresswoman Titus said. "His announcement that the Making Home Affordable program will be expanded to help those further underwater, something I have advocated for, is welcome news that will help thousands of Nevadans stay in their home. I will continue working with Senator Reid, Secretary Donovan, and the rest of the Administration to find more ways to help the hardest hit areas like Southern Nevada, as every new foreclosure prolongs the housing crisis and hampers our country's ability to move out of the current recession."

"This decision is part of our ongoing efforts to maximize the effectiveness of the Making Home Affordable program and adapt to an ever-changing housing market," said Treasury Secretary Tim Geithner. "By expanding refinance eligibility, we can bring relief to more struggling homeowners more quickly. It's a crucial step in our broader efforts to get America's housing market and economy on the path to recovery."

Currently, only those borrowers whose first mortgage does not exceed 105 percent of the current market value of the property are eligible for the Obama Administration's Home Affordable Refinance Program. For example if the property is worth $200,000, the borrower must owe $210,000 or less. Today's announcement will allow more homeowners to become eligible for the program, by increasing the eligibility to 125 percent.

Making Home Affordable, a comprehensive plan to stabilize the U.S. housing market, was first announced by the Administration on February 18. In just a few months, more than 200,000 borrowers have received offers for trial loan modifications, tens of thousands of refinances and trial modifications are under way, and informational mailings about the program have been sent to more than one million borrowers who may be eligible.

Donovan toured a neighborhood that has experienced several foreclosures in recent years, negatively impacting the property values of surrounding homes. The neighborhood has been targeted for Clark County's Neighborhood Stabilization Program, which will use funds to purchase and rehab foreclosed homes, provide downpayment and closing cost assistance to those purchasing foreclosed homes, and provide housing counseling to potential buyers.

Donovan also announced his plans to deploy HUD Foreclosure Rapid Response Teams to assess the areas hardest hit by foreclosure, starting in Las Vegas. The Las Vegas team will consist of two senior-level HUD Field staff with experience in Single Family Housing and in community outreach. Their task in the next two weeks will be to determine the needs in Nevada and in surrounding areas based on delinquency rate data at the zip code level, as well as listening sessions with local stakeholders such as housing counseling agencies, lenders, and members of the public. Based on the Foreclosure Rapid Response Team's assessment, HUD will commit two full-time employees to implement their recommendations. Additionally, HUD plans to deploy two Fair Housing equal opportunity specialists to the Las Vegas HUD office, which will provide the opportunity to conduct outreach and education locally, receive discrimination complaints and more readily conduct full investigations.

HUD receives about 100 complaints of housing discrimination every year from residents of Nevada, well over double what was received as recently as 2005. With a local presence, HUD's Fair Housing & Equal Opportunity office should make it easier for Nevada residents to obtain justice and relief, to educate housing consumers about predatory lending, and to conduct program compliance and monitoring in the over 3000 public housing units and over 8500 Section 8 vouchers.

###

HUD is the nation's housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

U.S. Department of Housing and Urban Development
451 7th Street, S.W., Washington, DC 20410
Telephone: (202) 708-1112 Find the address of a HUD office near you

Small Business Economic Stimulus Survey

noreply@blogger.com (Unknown) — Sat, 28 Feb 2009 18:18:00 +0000

Here are the results of our survey conducted from a pool of 700,000 local business owners spanning all 50 states from 2/19/09 to 2/22/09.

A LIttle Tuesday Politics: Daschle Out - Got Pork?

noreply@blogger.com (Unknown) — Tue, 03 Feb 2009 21:04:00 +0000

I have to say good riddens to Daschle. If you or I forgot to pay taxes for "errors that included failing to report $15,000 in charitable donations, unreported car service and more than $80,000 in unreported income from consulting" we would probably be listed on a state website for delinquencies - no mercy. I guess he got things straightened out, "Daschle recently filed amended tax returns and paid more than $140,000 in back taxes and interest for 2005-2007." - CNN Online. I still find it precarious and I'd rather not see government being run by folks that don't follow the rules.

On to something more stimulating, today the GOP divulged what it described as "wasteful" in the stimulus bill. In case you are not up on the bill, here are a few of my personal favorites!

• $75 million for "smoking cessation activities."
• $150 million for Smithsonian museum facilities.
• A $246 million tax break for Hollywood movie producers to buy motion picture film.
• $650 million for the digital television converter box coupon program.
• $248 million for furniture at the new Homeland Security headquarters.
• $600 million to buy hybrid vehicles for federal employees.
• $400 million for the Centers for Disease Control to screen and prevent STD's.
• $1.4 billion for rural waste disposal programs.
• $2 billion earmark to re-start FutureGen, a near-zero emissions coal power plant in Illinois that the Department of Energy defunded last year because it said the project was inefficient.
• $6 billion to turn federal buildings into "green" buildings.
$160 million for "paid volunteers" at the Corporation for National and Community Service.

There actually more but I think I made my point. This stimulus is full of questionable, slow spending, non-job creating crap.

Unkind cuts Here's what to do if your home-equity line is slashed

noreply@blogger.com (Unknown) — Fri, 09 Jan 2009 01:45:00 +0000

If your credit line has recently been slashed like many american's, you will find this Marketwatch article interesting.

Excerpt:

By Lew Sichelman

WASHINGTON (MarketWatch) -- Question: I had my line of credit cut in half and am having a very difficult time getting it reinstated. My facts are as follows: Appraised value at time the line was issued was $1.2 million, first mortgage of $960,000 (80%). My credit line was originally for $120,000 (10%).

I asked my lender to tell me what they believe the value of my house is or if they ordered an appraisal and they would not share this information. They said I could have the line re-instated if I paid for an appraiser that they select (they would not allow the appraiser that they had approved when the loan was originated). I guess the frustrating part of this is that they won't share the information.

Flashback 1999: Clinton Admin Pressures GSE

noreply@blogger.com (Unknown) — Fri, 10 Oct 2008 20:11:00 +0000

A colleague of mine recently passed an interesting old New York Times article on to me. Here are two very interesting and telling excerpts. Foreshadowing!!

Excerpt:
Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

Excerpt:
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.

''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''

Anyone think that the risks were unknown? Talk about self-fulfilling prophesy - this is classic.

WHEDA stops issuing new mortgages

noreply@blogger.com (Unknown) — Mon, 06 Oct 2008 19:47:00 +0000

The Capital Times — 10/03/2008 9:55 am

The financial meltdown on Wall Street is hitting the state's biggest low-income mortgage lender.

The Wisconsin Housing and Economic Development Authority, or WHEDA, has suspended issuing new mortgages because it's having a hard time selling tax-exempt bonds to investors.

The income from the bonds is the source of money that the state loans out as mortgages to first-time homebuyers of low- to moderate-income status. WHEDA made $522 million in mortgages in 2007.

I Smell Something: It's the Pork in The New Bailout!

noreply@blogger.com (Unknown) — Thu, 02 Oct 2008 16:22:00 +0000

Bacon

- $6 million for the makers of kids' wooden arrows
- $192 million for the rum producers of Puerto Rico and Virgin Islands
- $128 million for car racing tracks
- $33 million for corporations operating in American Samoa
- $10 million for small film and television productions

I guess this is how they bought some more votes.

Bailout Stalls, Republicans dig in

noreply@blogger.com (Unknown) — Mon, 29 Sep 2008 18:00:00 +0000

Mon 1:45pm ET- Briefing.com
The House of Represenatives falied to pass the Emergency Economic Stabilization Act., getting 202 votes compared to the 218 needed.

2 million troubled borrowers avoid foreclosure

noreply@blogger.com (Unknown) — Wed, 27 Aug 2008 17:54:00 +0000

The Hope Now coalition reports that it completed a record number of mortgage workouts in July - but that was outpaced by the increasing rate of foreclosures.

By Les Christie, CNNMoney.com staff writer

August 27, 2008: 11:11 AM EDT

NEW YORK (CNNMoney.com) -- Hope Now has helped more than 2 million at-risk borrowers stay in their homes during the past 13 months, according to numbers released by the coalition on Wednesday.

The alliance of mortgage servicers, counselors, and investors assembled to combat foreclosures fixed more than 192,000 problem loans during July, a one-month record that represents a 6% increase over June.

Fannie & Freddie Update

noreply@blogger.com (Unknown) — Thu, 21 Aug 2008 20:37:00 +0000

Excerpt for an article I came across today:

Posted on: August 19, 2008

Adam Brown

While on vacation this previous week, I had the opportunity to take a hike with a current employee of Freddie Mac. As much as I could tell she wasn’t looking to have a conversation about work in the middle of Vermont’s green mountains, I could not help but push the subject. As we chatted, she filled me in on some of the details of the past few months. While she didn’t cover much I did not already know, one thing did surprise me. Finishing our conversation, the woman looked at me and said, “I’m not sure I’m going to have a job in six months.” She then continued up the mountain unperturbed, as if the information was nothing new to her. I was left to ponder this incident for the remainder of my vacation only to return home on Monday and see Fannie and Freddie back in the headlines.

Snapshot: Housing and Economic Recovery Act of 2008 - 1st Time Homebuyer Tax Credit Info

noreply@blogger.com (Unknown) — Thu, 14 Aug 2008 20:31:00 +0000

Let's start with the basics. The who, when, & what!

Who's Eligible?

1st-time Home-buyers only. This means that neither the purchaser nor the purchaser's spouse may have owned a principal residence in three years prior to the purchase.

When Is It Effective?

Purchases on or after April 9, 2008 until the feature terminates before July 1, 2009. Thus, it doesn't matter if you signed the offer to purchase in February as long as the closing(simply put the transfer of title) occurs on or after 4/9/08 you'd be eligible to take the credit.

What Does the Refund Do?

Refund reduces income tax liability for the year of the home purchase and will be claimed on the tax return for that year.

What Properties are Eligible?

Eligible property includes any single-family residence that will be used as a principal residnence. No condos or co-ops allowed.

How Much of a Credit Can I Get?

Ten percent of the cost of the home, not to exceed $7500.

Are There Income Limits?

You are eligible for the full amount of credit as long as your adjusted gross income is $75000 or less ($150000 if filing joint return). Their are credit phase outs above those caps and individual with incomes at $95000 for individuals and $170000 for those filing jointly will not be eligible for any tax credit.

Now let's get down to business and look at the fine print. The government is not simply giving you a $7500 tax break!

Do I Have To Pay This Credit Back?

Recapture! Yes, that's what I said. A portion of the credit - 6.67% - is to be repaid each year for 15 years. If you sell your home before you've reached 15 years the remainder of the credit will be recaptured upon the sale. This feature is why you may have heard this tax credit referred to as an interest free loan. Home-buyer pays 6.67% of whatever credit they receive($7500 or less) for the next 15 years with no interest. So, if you qualify for the full $7500 credit you will repay $502.50 each year for 15 years.

One caveat here is that if you sell your house before the 15 years and there isn't enough proceeds to pay back the loan the remainder will be forgiven. You will not owe the IRS if the proceeds fail to cover the full repayment amount.

What About The Alternative Minimum Tax?

The credit can be used against the AMT so that it will not push individual into the AMT.

Item of note:

There's no application. Just claim the credit on the appropriate tax form if you wish to take it.

Disclaimer: Nothing in this article shall constitute either legal or tax advice. Consult with your tax advisor regarding the use of this provision.

Shannon Luscher VP Elite Mortgage Solutions, Inc. Visit the Elite Mortgage Daily Blog for Mortgage News & Insights at http://elitemortgagesolutionsdailyblog.com/ Wisconsin borrowers can find more information about rates and products by visiting my comprehensive website - http://www.elitemortgagesolutions.com/

Article Source: http://EzineArticles.com/?expert=Shannon_Luscher

Sen. Charles Schumer and the IndyMac debacle

noreply@blogger.com (Unknown) — Fri, 25 Jul 2008 17:50:00 +0000

11 business days that followed Schumer's letter, over a billion dollars was withdrawn from Indymac

I found this comment by drainedpool over at the Huffingtonpost.com to be interesting:

The reporting on this has been abysmal. Shumer acts like he had to point out the IndyMac situation to the regulators, who were "asleep at the switch." According to my source (my Pasadena neighbor who was a senior executive of IndyMac), the OTS was quietly on-site at IndyMac since January, working with the executive team to turn things around to avoid having to take the bank under conservatorship. Those involved felt they had a very good chance to avert this disaster.

Schumer's letter undid all that behind the scenes work and proved fatal because (1) it further encouraged hedge fund short sellers and (2) it directly caused a $1.3 B run on deposits. With typical capital ratios (4-8%), loss of $1.3 B in capital uncovers $16-32 B in assets.

Also misunderstood is the root of IndyMacs problems. Their retained loan portfolio was not particularly toxic (it was Alt-A, not sub-prime). Their business model, before it broke, was to generate loans and them sell them through securitization. With the credit crisis, they have been unable to sell their loan portfolio. They had a fundamental mis-match between their current cost of capital (branch deposits and brokered deposits) and the yield on the unsold loan portfolio. Their recent restructuring was intended to correct these issues. Unfortunately, we will never know what would have happened in the absence of Schumer's letter

I guess we'll never know if Indymac could have turned things around. Did Schumer yell fire!! or Was he just stating the obvious? Debatable

Snapshot Congress

noreply@blogger.com (Unknown) — Fri, 25 Jul 2008 02:25:00 +0000

H.R. 6254: Temporary FHA Direct Endorsement Lender Participation Act of 2008

To authorize the temporary participation of mortgage brokers and lenders under the FHA single-family housing mortgage insurance program.

Jun 12, 2008: Referred to the House Committee on Financial Services.

H.R. 3221: The Foreclosure Prevention Act of 2008
By a vote of 272-152 the House passed H.R. 3221: The Foreclosure Prevention Act of 2008.

Excerpt: From Article on fhaloanpros.com by Peter G. Miller
July 23rd, 2008

Next, the bill goes back to the Senate for final approval. However, while passage by the Senate is expected, the final vote is unlikely until Friday at the earliest. The reason? A number of senators, including Sen. Jim DeMint (R-SC), Sen. Tom Coburn (R-OK) and Sen. Jim Bunning (R-KY) oppose the authority given to the Treasury Department to invest in and loan to Fannie Mae and Freddie Mac.

Major Provisions

The major provisions of the bill, according to the Mortgage Bankers Association, include the following elements:

___FHA Modernization: Authorizes a $25 million appropriation to improve technology, processes, program performance, eliminate fraud and provide appropriate staffing. Effective January 1, 2009, it also increases the FHA loan limit to the lesser of 115 percent of the local median home price or $625,500 with a floor for lower priced markets of $271,000, establishes a 12-month stay on FHA’s proposal for risk-based premiums, sets the down payment requirement at 3.5 percent and prohibits seller-funded down payment assistance (both direct or through a third party).

___GSE Oversight Reform: Creates a new regulator (five-year term, appointed by the President, confirmed by the Senate) with oversight authority similar bank regulators, establishes a new affordable housing fund and capital magnet fund to be funded by a 4.2 basis point fee on all new loans, significantly changes the affordable housing goals and raises the conforming loan limit to the higher of $417,000 or 115 percent of the local median home price, not to exceed $625,500 (the stimulus limits remain in effect until January 1, 2009).

___FHA Rescue: Creates a voluntary program for lenders to write down the loan balance in exchange for an FHA guaranteed loan not to exceed 90 percent of the newly appraised value of home. The lender would pay a 3 percent FHA loan origination fee. To qualify, the borrower must have a debt-to-income ratio above 31 percent on the original loan. The program is capped at $300 billion.

___Tax Incentives: Creates a $7,500 refundable tax credit for first-time home buyers, expands the volume cap for the low income housing tax credit, allows for tax-exempt treatment of bonds guaranteed by the Federal Home Loan Banks and exempts the low income housing tax credit from the alternative minimum tax.

___Low Income and Affordable Housing: Encourages the development of low-income and affordable housing by harmonizing multi-family FHA mortgage insurance programs with the low income housing tax credit. Allowing these two programs to work together will result in more effective uses of both programs.

___GSE Backstop: Authorizes the Treasury Secretary to temporarily increase the GSEs’ line of credit and to, if necessary, buy equity in the GSEs in order to provide confidence to credit markets. Also provides a role for Treasury and the Federal Reserve in GSE oversight to ensure safety and soundness.

___Truth in Lending Reform: Requires TILA disclosures to be delivered seven days prior to loan origination, requires that disclosures include examples of how payments would change based on rate adjustments in addition to disclosing the maximum possible payment under the loan terms and mandates that the consumer receive early disclosures before paying anything more than a nominal fee that covers the cost of a credit report.

___Empowering States: Raises the cap by $11 billion on tax-free bonds that state housing finance agencies may use to help at-risk homeowners by refinancing troubled loans and appropriates $4 billion for states to purchase and renovate abandoned and foreclosed properties.

___Licensing: Encourages state officials to create a national licensing system for residential loan originators, allows HUD to create a licensing system for those states that fail to enact their own, establishes minimum qualifications for all loan originators and requires federal regulators to create a registry for banks and thrift employees who originate loans.

The Coming Assault on Small Businesses

noreply@blogger.com (Unknown) — Thu, 24 Jul 2008 17:34:00 +0000

The Coming Assault on Small Businesses

By Thomas J. Donohue, President and CEO, U.S. Chamber of Commerce
July 22, 2008

You can't say today's union leaders don't appreciate irony. Last week, one of the nation's largest unions held a global rally protesting our system of free enterprise and capital investment. The union called it the "Take Back Our Economy" rally. Well, if it manages to push through its radical agenda, what it will do is "Take Down Our Economy."

In fact, the agenda of a handful of national unions represents a direct assault on America's small businesses. Their top priority is passage of the deceptively name Employee Free Choice Act, commonly referred to as "card check." The bill would make it cost effective for unions to go after Main Street businesses and small retail establishments.

That's because the legislation would eliminate the expense and worker protection of secret ballot elections. It would give union organizers free rein to pressure workers into signing authorization cards. Once enough workers are persuaded to sign, the union would automatically be certified, and it would be illegal for workers to have a secret ballot election. Then the bill would implement a compressed schedule for employers to bargain with their new union. If an agreement isn't reached in time, a government-mandated arbitrator would dictate the terms and conditions of employment and hand the employer a contract—and even the workers wouldn't get a chance to vote on it.

But there's more. Also high on these unions' agenda is allowing the establishment of mini-unions. For example, organizers could go in and just sign up two or three people--not even a majority--and then you've got a union! Big labor also wants to mandate employer-paid leave and health care regardless of ability to pay, criminalize OSHA violations, nationalize health care, and increase taxes and the size of government.

How do these unions hope to implement their agenda? They are betting the house that their path to renewed power--the way to get everything on their wish list--is to elect a pro-union Congress and administration in 2008.

Can they do it? It's possible. Collectively, unions could spend $400 million to $500 million this election cycle. Of course, unions have a right to participate in the political process, but so does the American business community--and we must if we hope to maintain a free and open economy.

2008 will be a watershed year for the future of organized labor. These unions are not playing around, and neither can we. To help stop big labor's anti-small business agenda, visit VoteForBusiness and sign our petition against card check."

Commentary: The Employee Free Choice Act H.R. 800 an Assault on Small Business?

noreply@blogger.com (Unknown) — Tue, 22 Jul 2008 22:00:00 +0000

H.R. 800 (Employee Free Choice Act of 2007 ) Measure Title: A bill to amend the National Labor Relations Act to establish an efficient system to enable employees to form, join, or assist labor organizations, to provide for mandatory injunctions for unfair labor practices during organizing efforts, and for other purposes.

Just came across this:

An exerpt from an article by Thomas J. Donohue, President and CEO, U.S. Chamber of Commerce
July 22, 2008

Employee Free Choice Act, commonly referred to as "card check." The bill would make it cost effective for unions to go after Main Street businesses and small retail establishments.

Ah, there are many reasons that one might be skeptical of such legislation. Here's just a few off the top of my head!

Consider the auto industry, which is notably struggling, in part, due to the fact that it can't compete with it's foreign counterparts.
Employee Free Choice? Huh? No secret ballots! Compressed schedules!
Mini unions – what the #$@%? Let the inmates run the asylum!

This bill would seemingly wreak havoc on small business and I for one do not want to see this thing come to fruition.

Points Versus No Points

noreply@blogger.com (Unknown) — Wed, 16 Jul 2008 21:40:00 +0000

By James Hussher

"Points" are, for many first-time homebuyers and even for homeowners thinking about refinancing, often misunderstood. Points are nothing more than interest paid up-front at closing in order to obtain from the lender a lower interest rate on the mortgage. This article shall examine why this is something you may wish to do.

First, let us define "point" as 1% of the amount of the loan, the amount you are borrowing. If you are borrowing $200,000, one point on that loan is $2,000. And paying that 1 point up front as "pre-paid interest" can usually reduce the interest rate on the loan by .25 to .375%, depending on the lender and what type of loan you are getting.

It can make good sense to pay points to reduce your loan's interest rate if you plan to keep the loan for a longer period of time. Over a few years, having a lower interest rate will off-set the points paid up front. Notice I did not say, "keep the property", but "keep the loan" for a longer period of time. You may very well own that property for many years but you may currently be contemplating a loan product which you will want or need to refinance out of in a few years. Maybe there is a balloon payment, or it is an adjustable-rate mortgage (ARM) with an initial 3 or 5-year "honeymoon" low interest rate that will recast upwards eventually. Basically, you want to be in the loan long enough to recoup the points you paid up front and see some advantage from the lower interest rate thus obtained.

And as pre-paid interest, if the loan is for your primary residence, the points are tax-deductible as mortgage interest. Consult your CPA for what value that translates into for you in your particular tax bracket.

Let's work through an example. You are borrowing $200,000. You choose to pay one point at closing, $2,000, and that saves you $100 per month on your monthly mortgage payments. It will take you 20 months to off-set that $2,000 paid at closing. If you sell or refinance before then you will have wasted money. But from month 21 onwards, you are now enjoying the lower interest rate and putting $100 in your pocket every month that would otherwise have to go to a higher monthly payment.

Look as well at where interest rates are at when you take the loan. If interest rates are high and may head downwards in the next few years, paying points to get an artificially lower rate now may not make sense, because 2 years down the road you will be re-financing again to obtain a loan at the then-current and lower rates. If interest rates right now are about as low as you believe they will be for a few years, then lock in as low a rate as you can get with points.

In this matter, it is advisable to seek the counsel of a good mortgage planner who can educate you on your options and interest rate trends.

James Hussher is a Certified Mortgage Planner and licensed in all 50 states. Please visit James at http://ezmortgages123.com for all of your residential and commercial mortgage needs. Apply online, check current offered rates and loan programs and more! Many free articles and educational resources may be accessed at http://swifthussherrealestate.com which James also runs!

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Is WAMU the Next Bank to Collapse?

noreply@blogger.com (Unknown) — Mon, 14 Jul 2008 19:21:00 +0000

Are other big banks in-line to tumble the way Indy Mac has? Don't believe the hype according to some:

From CNNOnline.com

At the time of collapse, IndyMac's debt was 140% of its tangible capital and reserves, but both WaMu and national city have a debt level of less than 50% of its assets, Cassidy said.

"It's bad and it's not over yet, but investors are throwing out the baby with the bath water," he added. "The prospect of one of these banks failing is far-fetched: both have ample liquidity."

Either way, this is a sticky situation. Hopefully, investors can batten down the hatches a bit and put some of this instability aside.

A Brief History of IndyMac Stock

noreply@blogger.com (Unknown) — Wed, 09 Jul 2008 19:08:00 +0000

I used a cool little tool called “Crappy Graphs” that is super fun. Hat tip to the Phoenix Real Estate Guy for pointing it out to me.

Return to: A Brief History of IndyMac Stock

BOA completes CWC aquisition

noreply@blogger.com (Unknown) — Tue, 01 Jul 2008 20:15:00 +0000

By now this is probably old news. Good thing I bought BAC at what I'd thought was the bottom. Oops. How low is this thing gonna go? On a mortgage note - will CWC continue to do wholesale?
The upcoming changes will be interesting to say the least.