New Buyers in Tulsa?? Can it be?? Of course it Can. This is a hot summer and a hot time for deals in real estate in Tulsa and Metro area market. Sellers with a marketable property have a very good chance of getting that deal made and there are only a few things to be aware of ahead of time.
Like what you ask? Most of the starter homes or first time home buyers are going to go strictly FHA. What that means for sellers is that you will have to pay a portion of their closing costs. Do sellers like paying closing costs? No. Generally as a rule most people who sell homes think that when looking for a home you should be able to put enough down to qualify for a conventional loan. Unfortunately for a buyer, it might just make sense to go for an FHA loan.
A rule of thumb I use to sell homes is that when you are speaking with a seller you must put them in the place of the buyer. How does your home look to a buyer? So why not in the area of finance? Of course you want your seller to understand the whys and why not of accepting an FHA offer. Sometimes it makes sense to pay some closing costs and seal the deal than to continue to make utility payments and insurance payments on a home that they can move and move on more importantly.
Does it make sense for everyone. No certainly not. Most sellers now are looking to strike why the iron is hot and move their home so that they can either downsize get out of a mortgage they may have been able to afford earlier but not now, or simply upgrade to a larger home for less money. So review all the aspects of the buyers options so you better understand what is possible when marketing a home today.
Now all that being said, is it taking long for homes to sell in the Tulsa area? No. Not if that home is move in ready and lots of times that home is staged if a vacant home. Some people cant see themselves in a home if it is vacant. Plus all the blemishes of a home can be seen if there is no one living in it. If a sellers home is updated and clean 8 times out 10 it will sell and sell fast. Buyers are now ready to buy and of course that is the right time to market your home.
So for more info on Tulsa and the surrounding metro contact a realtor today! And make it personal! Call me 9186197309!
Sunday, June 19, 2011
Thursday, August 12, 2010
Here's a snippet I found :
Government to Spend $3 Billion to Help HomeownersBy Jeffry BartashRISMEDIA, August 12, 2010--(MCT)--The White House on Wednesday said it would spend an additional $3 billion to help distressed homeowners in the states with the highest jobless rates to pay their mortgages.The latest round of funding pushes the total federal commitment up to $4.1 billion. The government already runs two other programs to help homeowners modify existing mortgages or make their monthly payments. The White House is authorized to spend up to $50 billion to help homeowners under the Troubled Asset Relief Program originally created by the Bush administration to bail out Wall Street.So far, existing government programs designed to help people to stay in their homes have met with little success. The rate of property foreclosures climbed 8 percent to 1.65 million in the first six months of 2010 compared to the prior year, according to RealtyTrac.The new program is meant to prevent further home foreclosures in 17 states plus the District of Columbia. Most of those states have experienced a rash of foreclosures that have depressed the housing market and local economy.Eligible homeowners could receive no-interest loans up to $50,000 for as long as 24 months. They would have to show a good record of mortgage payment before their employment or medical condition changed. They would also have to demonstrate a "reasonable likelihood" of resuming mortgage payments within two years.The states with the highest foreclosure rates are Nevada, Florida and Arizona. Nevada and Florida would quality for fresh government assistance but not Arizona, which has slightly lower unemployment rate compared to the national average.Other states eligible for assistance are: Alabama, California, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, New Jersey, North Carolina, Ohio, Oregon, Rhode Island, South Carolina and Tennessee.The federal Housing Finance Agency would distribute $2 billion through the so-called Hardest Hit Fund set up earlier this year. The Housing and Urban Development Department would also make $1 billion available via a new emergency program authorized by the recently signed Dodd-Frank law regulating the finance industry.The money would be given to homeowners who lost their jobs or cannot find enough work and are in danger of losing their homes. People whose medical conditions have also reduced their ability to work would also qualify under guidelines set by the Dodd-Frank law.Homeowners would apply for relief through their state housing agencies.Herb Allison, a senior Treasury official, said the goal of the program is to "stabilize a fragile housing market and allows responsible homeowners the chance to reduce their monthly mortgage payments to affordable levels."Critics say the relief programs are unfair to homeowners who are current on their mortgage payments. They also argue that much of the money is wasted because distressed homeowners usually default even after getting government help.The latest Treasury report shows that about 10 percent of distressed homeowners who received modified loans in the fourth quarter of 2009 are delinquent in their payments."The default rates are far better than most experts predicted," Allison said.The modification program, known as HAMP, helps homeowners to renegotiate with banks to reduce the size of their original mortgages, most of which are much higher than the current value of their homes.But only 39,000 homeowners were able to qualify for permanent modifications in June and just 400,000 have benefited since the program was enacted, according to government data. And a report by Fitch Ratings Ltd. suggests as many as three-quarters of the modified loans could end up in default once again.(c) 2010, MarketWatch.com Inc.Distributed by McClatchy-Tribune Information Services.
Now its fantastic that the government is going to continue to help homeowners but what does that mean if you arent in a state where the situation is absolutely dire enough to meet the governments criteria? You do it the old fashioned way- Save your money. Look at your local market and speak with local lenders. No one is more knowledgable than a local lender on what they can loan. You might take a risk and look at foreclosures but again, there is risk involved with any foreclosure where you have no idea what disclosures should be made to a potential buyer. When looking at these situations CALL the experts. Markets can seem soft in certain dollar amounts but in others may have remained stable. If you dont know exactly what the numbers are you need to contact someone who can give them to you. Then after arming yourself with just exactly you need for your situation you can go and purchase that home you have always wanted.
Keep in mind there will always be homes for sale it is just a matter of timing and of course knowing what you are doing to get a good deal and a safe deal. If it is too good to be true then it most likely is too good. Whenever you make a deal in any market climate always be prepared to walk away from that deal if you go over your limit or feel that the situation has changed drastically from what you wanted to live with. This is a gut sign telling you that you are over your head. Now when looking at programs to help yourself get in a home there is no magical goverment site that can do it. Just pull out the phonebook at look up community groups and more than likely other than these stop gap measures that have been put in place to stem blood flow in other areas most hardest hit you can find programs that have been in place for years that will help educate you for a couple of hours and help you up to a certain percentage with a down payment on a home. Remember, the best thing you can do is to educate yourself on what you are about to do. Markets will fluctutate and the smart buyer will always know what the interest rate is and how his credit and savings will affect his buying power no matter what the current economic situation is around him.
Homes are a relationship that usually outlast marriages- so make sure you are ready for that commitment and understand the big picture, ie. not just the loan process, the closing process but responsibilities of a homeowner- repairs, maintenance and upkeep. And of course if you need help with any of these processes I will be happy to help! SO give me a call or shoot me an email and let s get you started to better educating yourself on being a homeowner in the best time in the real estate market- NOW.
Government to Spend $3 Billion to Help HomeownersBy Jeffry BartashRISMEDIA, August 12, 2010--(MCT)--The White House on Wednesday said it would spend an additional $3 billion to help distressed homeowners in the states with the highest jobless rates to pay their mortgages.The latest round of funding pushes the total federal commitment up to $4.1 billion. The government already runs two other programs to help homeowners modify existing mortgages or make their monthly payments. The White House is authorized to spend up to $50 billion to help homeowners under the Troubled Asset Relief Program originally created by the Bush administration to bail out Wall Street.So far, existing government programs designed to help people to stay in their homes have met with little success. The rate of property foreclosures climbed 8 percent to 1.65 million in the first six months of 2010 compared to the prior year, according to RealtyTrac.The new program is meant to prevent further home foreclosures in 17 states plus the District of Columbia. Most of those states have experienced a rash of foreclosures that have depressed the housing market and local economy.Eligible homeowners could receive no-interest loans up to $50,000 for as long as 24 months. They would have to show a good record of mortgage payment before their employment or medical condition changed. They would also have to demonstrate a "reasonable likelihood" of resuming mortgage payments within two years.The states with the highest foreclosure rates are Nevada, Florida and Arizona. Nevada and Florida would quality for fresh government assistance but not Arizona, which has slightly lower unemployment rate compared to the national average.Other states eligible for assistance are: Alabama, California, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, New Jersey, North Carolina, Ohio, Oregon, Rhode Island, South Carolina and Tennessee.The federal Housing Finance Agency would distribute $2 billion through the so-called Hardest Hit Fund set up earlier this year. The Housing and Urban Development Department would also make $1 billion available via a new emergency program authorized by the recently signed Dodd-Frank law regulating the finance industry.The money would be given to homeowners who lost their jobs or cannot find enough work and are in danger of losing their homes. People whose medical conditions have also reduced their ability to work would also qualify under guidelines set by the Dodd-Frank law.Homeowners would apply for relief through their state housing agencies.Herb Allison, a senior Treasury official, said the goal of the program is to "stabilize a fragile housing market and allows responsible homeowners the chance to reduce their monthly mortgage payments to affordable levels."Critics say the relief programs are unfair to homeowners who are current on their mortgage payments. They also argue that much of the money is wasted because distressed homeowners usually default even after getting government help.The latest Treasury report shows that about 10 percent of distressed homeowners who received modified loans in the fourth quarter of 2009 are delinquent in their payments."The default rates are far better than most experts predicted," Allison said.The modification program, known as HAMP, helps homeowners to renegotiate with banks to reduce the size of their original mortgages, most of which are much higher than the current value of their homes.But only 39,000 homeowners were able to qualify for permanent modifications in June and just 400,000 have benefited since the program was enacted, according to government data. And a report by Fitch Ratings Ltd. suggests as many as three-quarters of the modified loans could end up in default once again.(c) 2010, MarketWatch.com Inc.Distributed by McClatchy-Tribune Information Services.
Now its fantastic that the government is going to continue to help homeowners but what does that mean if you arent in a state where the situation is absolutely dire enough to meet the governments criteria? You do it the old fashioned way- Save your money. Look at your local market and speak with local lenders. No one is more knowledgable than a local lender on what they can loan. You might take a risk and look at foreclosures but again, there is risk involved with any foreclosure where you have no idea what disclosures should be made to a potential buyer. When looking at these situations CALL the experts. Markets can seem soft in certain dollar amounts but in others may have remained stable. If you dont know exactly what the numbers are you need to contact someone who can give them to you. Then after arming yourself with just exactly you need for your situation you can go and purchase that home you have always wanted.
Keep in mind there will always be homes for sale it is just a matter of timing and of course knowing what you are doing to get a good deal and a safe deal. If it is too good to be true then it most likely is too good. Whenever you make a deal in any market climate always be prepared to walk away from that deal if you go over your limit or feel that the situation has changed drastically from what you wanted to live with. This is a gut sign telling you that you are over your head. Now when looking at programs to help yourself get in a home there is no magical goverment site that can do it. Just pull out the phonebook at look up community groups and more than likely other than these stop gap measures that have been put in place to stem blood flow in other areas most hardest hit you can find programs that have been in place for years that will help educate you for a couple of hours and help you up to a certain percentage with a down payment on a home. Remember, the best thing you can do is to educate yourself on what you are about to do. Markets will fluctutate and the smart buyer will always know what the interest rate is and how his credit and savings will affect his buying power no matter what the current economic situation is around him.
Homes are a relationship that usually outlast marriages- so make sure you are ready for that commitment and understand the big picture, ie. not just the loan process, the closing process but responsibilities of a homeowner- repairs, maintenance and upkeep. And of course if you need help with any of these processes I will be happy to help! SO give me a call or shoot me an email and let s get you started to better educating yourself on being a homeowner in the best time in the real estate market- NOW.
Tuesday, August 3, 2010
Short Sales and Foreclosures
Short Sales and Foreclosures are now more than ever in Tulsa and the surrounding areas becoming an increasing situation. Since our market is more stable than the national~ we dont see the huge increases and decreases that everyone else does all over the country, and therefore we tend to have steady increases with little decline. Of course that is not to say that our economy is not touched by the recession, layoffs or furloughs- that being said the number of short sales and foreclosures is significantly smaller than in other areas of the country. Oklahoma tends to not experience the effects of national issues for atleast a year or so behind. Are you one of those homeowners who possibly had your house listed right before all the craziness happened and then unfortunately could not get whomever held your mortgage to make a decision which then in turn made you a short sale possibility? Having had several clients that found themselves in this situation- you cant panic. Take copious notes and try to remain calm when calling the 1-800 numbers to talk to someone to try and work things out. Always recruit a realtor or talk plainly with your realtor so that they can help you get things rolling. Here are a few facts regarding short sales that might help you decide if this is the right option for you. As always you must check out your particular case with you mortgage company to see what policies they will follow in working with you to solve your housing dilemma.
A short sale is a lender approved solution designed to assist a home owner who is financially burdened to get out from under their mortgage debt. A short sale is negotiated through the mortgage holder of an owners home where by the mortgage holder agrees to take less than what home owner owes on their property. For instance, a short sale would be if a home owner owes $600,000 on their current mortgage and their home is only worth $550,000. The lender in this example would agree to take a short fall of $50,000 at closing.
In some cases the mortgage holder may completely wipe out the debt and the home owner does not have to repay the 50,000. Many lenders may require a seller to sign a note and repay the debt over a certain amount of time. Typically the debt will be reduced and the owner may receive favorable repayment terms of the short fall. Also you may qualify for other programs that your lender has that may not hurt your credit as bad as a short sale or foreclosure so it is always important to ask about all your options with your lender.
Many consumers make extremely poor choices by getting behind and not picking up the phone to contact, or email - snailmail their mortage holder. You must be aware of the huge penalties involved when not facing the realities of the short sale/foreclosure world. Here are a couple of specific items related to short sales that you should be aware of if you find yourself in the short sale position.
Should I stop making payments on the loan when I am in a short sale situation?
Whether or not a home owner should continue to make mortgage payments is a common question that many sellers want to know when considering a short sale. The most common answer to this question is YES, however it really depends on the lender! Find out from your lender Before you stop making payments to ensure that this will not adversly affect you and the outcome of the short sale.
Picking the Right Realtor to Help You
Picking a Realtor to work with in a short sale is very different than a traditional transaction. You want to work with an agent that has experience successfully closing this type of transaction. Remember as a seller you could potentially be facing a foreclosure. There are many mistakes that are made by agents handling short sales. If you are not sure whether or not your broker/agent understands the short sale or foreclosure then STOP. Check with other brokers to ensure that the agent you pick is qualified to help you with your situation. And every situation is different when it comes to short sales.
Acceptable hardships for a short sale
Most of the time lenders will ask the homeowner to fill out a hardship letter detailing the reason for the hardship and supporting documentation as to why you cant make the payments. Short sale hardships however, have become less rigid recently and some lenders are becoming more concerned strictkly on whether the short sale would benefit them more than a foreclosure sale.
Short sale tax consequences
Understanding the tax consequences in a short sale is one of the most important considerations for a home seller. Whether the short sale home was a primary residence or an investment property can have different tax implications.
Releasing the Debt on a Short Sale
Getting the debt released on a short sale is obviously a very big deal. Many Realtors that are working with short sales don't have any knowledge of how to get the debt released. A seller needs to pay particular attention to this detail as you can expect to be hearing from a collection agency without it! This is probably one of the most important issues when completing a short sale.
Short sale home inspection
This topic is important to understand from both a buyer's and seller's perspective. A home inspection should be done before short sale approval and NOT after. It is a huge benefit to both buyer and seller.
Strategic default vs short sale
There are many home owners who are deciding just to walk away from their homes. Fannie Mae has started to crack down on this practice and is now penalizing borrowers from getting a mortgage for up to seven years! A perfect alternative to a strategic default is a short sale. So as always check out your options before leaping without all the facts. By educating yourself on what the different avenues are you can save yourself a whole of time and possibly your credit.
Foreclosures
Remember that whenever you check out a foreclosed property the bank usually cant disclose any repairs or issues that the property may have since they have never occupied the house. You have to do more investigation when choosing this avenue of reduced price properties. You must also check to see if there are any notices/issues from the City or the Neighborhood Association as you may not be aware. If you can go inside and eyeball the property possibly do an inspection so that you know ahead of time what this property is going to take to bring up to normal working order.
Foreclosures are also properties that people have usually walked off and left in disrepair. How long it has been vacant and if the utilities have been maintained will depend on whether or not you will be able to walk in or if it will take some TLC to get things back to normal. Be careful how you choose these properties as they are case by case basis as to if the homeowner really did care about the home or if he was just counting the days to eviction.
Please remember to check with a knowledgeable agent/broker on the ins and outs of purchasing foreclosure or short sale properties. There is alot to know about both.
Happy Hunting!!
A short sale is a lender approved solution designed to assist a home owner who is financially burdened to get out from under their mortgage debt. A short sale is negotiated through the mortgage holder of an owners home where by the mortgage holder agrees to take less than what home owner owes on their property. For instance, a short sale would be if a home owner owes $600,000 on their current mortgage and their home is only worth $550,000. The lender in this example would agree to take a short fall of $50,000 at closing.
In some cases the mortgage holder may completely wipe out the debt and the home owner does not have to repay the 50,000. Many lenders may require a seller to sign a note and repay the debt over a certain amount of time. Typically the debt will be reduced and the owner may receive favorable repayment terms of the short fall. Also you may qualify for other programs that your lender has that may not hurt your credit as bad as a short sale or foreclosure so it is always important to ask about all your options with your lender.
Many consumers make extremely poor choices by getting behind and not picking up the phone to contact, or email - snailmail their mortage holder. You must be aware of the huge penalties involved when not facing the realities of the short sale/foreclosure world. Here are a couple of specific items related to short sales that you should be aware of if you find yourself in the short sale position.
Should I stop making payments on the loan when I am in a short sale situation?
Whether or not a home owner should continue to make mortgage payments is a common question that many sellers want to know when considering a short sale. The most common answer to this question is YES, however it really depends on the lender! Find out from your lender Before you stop making payments to ensure that this will not adversly affect you and the outcome of the short sale.
Picking the Right Realtor to Help You
Picking a Realtor to work with in a short sale is very different than a traditional transaction. You want to work with an agent that has experience successfully closing this type of transaction. Remember as a seller you could potentially be facing a foreclosure. There are many mistakes that are made by agents handling short sales. If you are not sure whether or not your broker/agent understands the short sale or foreclosure then STOP. Check with other brokers to ensure that the agent you pick is qualified to help you with your situation. And every situation is different when it comes to short sales.
Acceptable hardships for a short sale
Most of the time lenders will ask the homeowner to fill out a hardship letter detailing the reason for the hardship and supporting documentation as to why you cant make the payments. Short sale hardships however, have become less rigid recently and some lenders are becoming more concerned strictkly on whether the short sale would benefit them more than a foreclosure sale.
Short sale tax consequences
Understanding the tax consequences in a short sale is one of the most important considerations for a home seller. Whether the short sale home was a primary residence or an investment property can have different tax implications.
Releasing the Debt on a Short Sale
Getting the debt released on a short sale is obviously a very big deal. Many Realtors that are working with short sales don't have any knowledge of how to get the debt released. A seller needs to pay particular attention to this detail as you can expect to be hearing from a collection agency without it! This is probably one of the most important issues when completing a short sale.
Short sale home inspection
This topic is important to understand from both a buyer's and seller's perspective. A home inspection should be done before short sale approval and NOT after. It is a huge benefit to both buyer and seller.
Strategic default vs short sale
There are many home owners who are deciding just to walk away from their homes. Fannie Mae has started to crack down on this practice and is now penalizing borrowers from getting a mortgage for up to seven years! A perfect alternative to a strategic default is a short sale. So as always check out your options before leaping without all the facts. By educating yourself on what the different avenues are you can save yourself a whole of time and possibly your credit.
Foreclosures
Remember that whenever you check out a foreclosed property the bank usually cant disclose any repairs or issues that the property may have since they have never occupied the house. You have to do more investigation when choosing this avenue of reduced price properties. You must also check to see if there are any notices/issues from the City or the Neighborhood Association as you may not be aware. If you can go inside and eyeball the property possibly do an inspection so that you know ahead of time what this property is going to take to bring up to normal working order.
Foreclosures are also properties that people have usually walked off and left in disrepair. How long it has been vacant and if the utilities have been maintained will depend on whether or not you will be able to walk in or if it will take some TLC to get things back to normal. Be careful how you choose these properties as they are case by case basis as to if the homeowner really did care about the home or if he was just counting the days to eviction.
Please remember to check with a knowledgeable agent/broker on the ins and outs of purchasing foreclosure or short sale properties. There is alot to know about both.
Happy Hunting!!
Sunday, May 30, 2010
What a Wonderful Ride
It seems that with all the help we received for first time home buyers we did make a small dent in the market but we have to look at those new home buyers that werent really ready to purchase a home that received funds and consequently put us into this market mess. We had three notes from utilites and a letter vouching for your character and usually a little money to put down and no clue as to how to budget or how to make things happen if something goes wrong. This is the story of what we have to fix and stop throwing money at the problem and look at how to actually take personal responsibility and make things better through action.
A first time home buyer should educate themselves on ALL the programs out there for down payments or grants. It is akin to the college student needing money. It is out there you just have to look for it. Many states and counties have programs that grant money to educated and by that I mean a person who takes their course and finds out what purchasing a home means. Entirely. Just the payment but insurances and maintaining properties and appliances. Value for value.
Look at todays buyers. Most want everything right now. Spend every dime I can get because I can. Is that realistic. No. Usually not. Look at how long they live in those homes. Not usually over three to five years. Is that a realistic option now? Probably not. It seems that most people have enslaved themselves to keeping up with the Jones. Look at history everytime someone has tried to make success their entire focus it fails. You must learn from where you have been and remember that yes your home is an extension of yourself... but if it is paid for and in good shape that means so much more than I have the credit now to purchase the home and hanging on by my fingernails and mailox to keep it!
People get yourself a good education on what your housing market is doing and find a good realtor that understands what it means to stay in business not just this sale. A good realtor is going to tell you the downs and the ups of each property. Resale is a reality these days and knowing what and when to sell or even when to purchase makes all the difference. If you need to find a good place to start give me a call and we can talk reality. Real Estate Reality.
A first time home buyer should educate themselves on ALL the programs out there for down payments or grants. It is akin to the college student needing money. It is out there you just have to look for it. Many states and counties have programs that grant money to educated and by that I mean a person who takes their course and finds out what purchasing a home means. Entirely. Just the payment but insurances and maintaining properties and appliances. Value for value.
Look at todays buyers. Most want everything right now. Spend every dime I can get because I can. Is that realistic. No. Usually not. Look at how long they live in those homes. Not usually over three to five years. Is that a realistic option now? Probably not. It seems that most people have enslaved themselves to keeping up with the Jones. Look at history everytime someone has tried to make success their entire focus it fails. You must learn from where you have been and remember that yes your home is an extension of yourself... but if it is paid for and in good shape that means so much more than I have the credit now to purchase the home and hanging on by my fingernails and mailox to keep it!
People get yourself a good education on what your housing market is doing and find a good realtor that understands what it means to stay in business not just this sale. A good realtor is going to tell you the downs and the ups of each property. Resale is a reality these days and knowing what and when to sell or even when to purchase makes all the difference. If you need to find a good place to start give me a call and we can talk reality. Real Estate Reality.
Monday, January 25, 2010
Monday, November 2, 2009
Looking for a good deal!!??
Oklahoma is a great place to come and find a good deal on a home... our prices haven't flagged. Our values are stable... we have beautiful customs, and fantastic mature homes in glorious landscaped areas... Tulsa is known for it beautiful canopy of trees and green rolling hills. Come and explore what we have to offer!
Latest News and Market Trends
Vote on tax credit expected this week; Inman News
Congress has approved a one-year extension of higher loan limits for mortgages backed by the Federal Housing Administration, Fannie Mae or Freddie Mac, and an amendment that would extend the first-time homebuyer tax credit has been incorporated into a Senate bill to prolong unemployment benefits. A procedural vote on the unemployment benefit legislation, HR 3548, is expected today, Congressional Quarterly reported, with final passage by the end of the week.
CAR Reports September Home Sales Increased 2.1 Percent; Median Home Price Declined 7.3 Percent; RIS Media
Home sales increased 2.1% in September 2009 in
Top 3 Real Estate Mortgage Scams: What You Need to Know; RIS Media
Being a homeowner is one of the biggest dreams for the American people. Due to record numbers of homeownership and cheap mortgage rates, individuals who did not own a home previously are now looking for mortgages for financing their ambitions. On certain occasions, the dream of homeownership is associated with a cost that exceeds the mortgage.
World Risks Depression if Stimulus Is Pulled: Economist; CNBC.com
The world will slump into a depression similar to that in the 1930s if stimulus measures are pulled out too soon, Roger Nightingale, economist at Pointon York, told CNBC Monday. But stock markets are likely to ride the tough times without major problems, as economic activity is better than it was six months or a year ago, Charles Lemonides, Chief Investment Officer at Valueworks LLC, said.
CIT files for bankruptcy protection; Market Watch
CIT /quotes/comstock/13*!cit/quotes/nls/cit (CIT 0.38, -0.34, -47.22%) has struggled to avoid collapse since the recession triggered billions of dollars in loan losses and the financial crisis cut the company off from its main source of financing. "The decision to proceed with our plan of reorganization will allow CIT to continue to provide funding to our small business and middle market customers, two sectors that remain vitally important to the U.S. economy," Chairman and CEO Jeffrey M. Peek said in a statement.
U.S. Stocks May Be Starting ‘Correction,’ CLSA Says (Update1); Bloomberg
Home Equity Loan Market Remains Very Tight;
The overall housing sector is showing signs of improvement, but the market for home equity loans remains tight. Big losses on home equity loans prompted banks to freeze credit lines starting early last year, and solid-credit borrowers who apply for credit lines today likely will pay well above two points over the prime rate. National Mortgage News reports that the dollar amount of home equity credit lines and home equity loans plunged 75 percent from the second quarter of 2008 compared with the same period of this year.
Personal Income, Expenditures Drop; MBA
The Bureau of Economic Analysis reported Friday that personal income decreased by less than 0.1 percent in September. Disposable personal income also decreased by less than 0.1 percent. Real disposable income decreased 0.1 percent in September, compared to a decrease of 0.2 percent in August. Despite flat personal income, wage compensation fell by 0.1 percent and personal income on assets was down 0.8 percent, while transfer payments from the government was up about 0.8 percent. So overall, households are essentially maintaining their income by depending on government payments.
MBA Advocacy Update; MBA
Congress moved briskly on several MBA priorities last week, with the Senate and House tackling loan limits, the home buyer tax credit and regulatory reform. On Oct. 29, both chambers passed a one-year extension of the high-cost loan limits for Fannie Mae, Freddie Mac and FHA, sending the bill to President Obama's desk. The legislation came about after an intense week of advocacy by MBA, which had urged Congress not to wait until the end of the year to renew the higher limits. Also last week, a week-long effort to renew the first-time home buyer tax credit went through numerous fits and starts in the Senate, with a final vote on the provision spilling over into next week. Finally, the House Financial Services Committee continued its march toward passage of financial regulatory reform, turning its attention to the regulation of systemic risk among large financial firms and credit rating agency reform.
FBOP's Subsidiaries Closed, Sold to U.S. Bank; American Banker
Over a year after being hit hard by the takeover of Fannie Mae and Freddie Mac, FBOP Corp.'s nine banks totaling $19 billion in assets were closed by the government Friday night. The Federal Deposit Insurance Corp. announced a complex deal with Minneapolis-based US Bancorp, which will take over the operations of all nine institutions of the
Workout Guidance for CRE Lenders; American Banker
Federal and state banking regulators have issued a 33-page guidance for judicious workouts of troubled commercial property loans. The guidelines not only outline scenarios where modifications of such loans should occur, it also gives detailed examples of model workouts and clarifies that institutions will not be penalized by examiners for sensible workouts even if a restructured loans still has deficiencies. The guidance was released after a number of bank failures were attributed to high concentrations of commercial real estate loan delinquencies.
Infographic: Mortgage Market Watch; American Banker
Geithner: Economy Growing, Jobs Lag; Wall Street Journal
Treasury Secretary Timothy Geithner acknowledges the federal budget deficit is too high, but that the priorities now are economic growth and job creation. Asked repeatedly on NBC's "Meet the Press" whether this means taxes will rise, Mr. Geithner avoided giving specifics. He did say President Barack Obama is committed to dealing with deficit in a way that will not add to the tax burden of people making less than $250,000 a year. The White House has not decided how to reduce the red ink, Mr. Geithner said in an interview broadcast Sunday. "Right now we're focused on getting growth back on track," he said. "And we're not at the point yet where we have to decide exactly what it's going to take."
Fed's Path to Higher Interest Rates Begins to Take Shape; Wall Street Journal
An economic recovery seems to have begun, and Federal Reserve officials are thinking mostly these days about how to unwind the unprecedented stimulus they've pumped into the economy. Eventually that will mean raising interest rates. What will a Fed tightening cycle look like? When will it begin? Fed officials don't have answers to either question yet, and investors would be wrong to think they do. But the contours of what a rate-boost cycle could look like are beginning to come into focus as the Fed's next policy meeting approaches Tuesday and Wednesday.
Landlords Offer Incentives to Stay Put; Wall Street Journal
Reis Inc. reports that high jobless figures -- coupled with more apartment residents seeking roommates, moving in with family or trading down to cheaper rental units -- propelled the U.S. apartment vacancy rate to 7.8 percent in the third quarter, a 23-year high. More owners are attracting new residents and keeping existing ones by offering incentives and slashing monthly rent. Owners are focused on retaining residents because when apartments become empty, they can stay that way for months and often require such expenses as painting and even brokerage commissions to attract new occupants
Goldman Looks to Buy Fannie Tax Credits; Wall Street Journal
Goldman Sachs Group is interested in buying millions of dollars in tax credits from Fannie Mae. It is offering to buy the low-income credits at a discount, which would enable the Wall Street firm to use them to offset some taxes on profits. Selling the credits would help Fannie Mae financially, but the Treasury Department is scrutinizing the plan because it could be viewed as a bad deal for taxpayers and due to the perception that the
Fed's Path to Higher Interest Rates Begins to Take Shape; Wall Street Journal
In the coming weeks, Federal Reserve officials will be taking a closer look at inflation and signs of an economic recovery to determine how much and how fast to raise the short-term interest rate. However, observers say the high unemployment rate and low inflation rate give the central bank plenty of time to make a move. While experts predict the Fed will signal to investors that an interest rate shift is pending by retreating from policy statements that call for low rates over the long term, they add that the Fed will favor some market uncertainty so that investors are discouraged from making speculative investments.
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