Washington Report: $8,000 Home Buyer Tax Credit
by Kenneth R. Harney
Quick passage by the House last week of a bill extending the $8,000 home buyer tax credit next year for military, diplomatic and intelligence personnel serving overseas increases the odds that Congress will agree to an extension, maybe even an expansion, of the entire credit program well into 2010.
The White House is also signaling that it sees the overall tax credit program -- currently set to expire November 30 -- as an important element in cutting the unemployment rolls and stimulating new jobs next year.
After an economic policy strategy meeting last week in the Oval Office involving President Obama, House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid, congressional aides said Democrats generally support an extension of the housing credit.
Reid already has made clear he wants an extension. He is co-sponsoring a Senate bill that would do so for six months.
Congressman Charles Rangel, chairman of the tax-writing House Ways and Means Committee, sponsored the one-year extension of the credit for military and other personnel serving overseas, and is reported by aides as favoring an extension for the entire program.
The White House has not publicly committed to an extension, but has confirmed that the President is seriously examining that option.
An unexpected development that emerged following last week's White House meeting was the possibility of opening up the credit to a broader group of buyers next year - people who sell their current homes and buy a replacement home.
Though details were scanty, Capitol Hill sources said one option on the table would be to provide a tax credit -- most likely at the $8,000 level -- to replacement home buyers whose incomes do not exceed some limit.
The current credit phases out for single taxpayers with incomes above $75,000, and married purchasers earning $150,000.
A politically sensitive issue hovering over the entire debate on extending the housing tax credit is its cost - what it would add to the federal budgetary deficit. Mark Zandi, chief economist of Moody's Economy.com, estimates that widening the credit to all buyers through next August could cost the government upwards of $30 billion.
Rangel's 12-month extension of the credit for service personnel is estimated to cost more than $300 million, but it's mainly being paid for through an increase in penalties levied by the IRS on taxpayers who fail to file corporate or partnership returns.
The New York Times reported that one possible solution to the cost problem would be to divert money not yet spent out of 2009's $800 billion stimulus legislation.
Published: October 12, 2009
Use of this article without permission is a violation of federal copyright laws.
Monday, October 12, 2009
Monday, September 14, 2009
Economic impacts of NAHB's "Revive Housing" campaign goals
Economic impacts of NAHB's "Revive Housing" campaign goals are highlighted in new research from our Economics and Housing Policy Group. This analysis, which includes estimates of the number of jobs to be gained from each of our proposals, should help convince lawmakers that bolstering housing is key to reviving the national economy.
Following are the four primary advocacy goals of the Revive Housing, Restore America campaign that NAHB initiated in August and continues to push with all its might: 1) Extend the $8,000 tax credit for another year and make it available to all income-eligible buyers. Research by NAHB's tax analysts indicates that this action would spur 383,000 additional home sales – including 80,000 housing starts – and create nearly 350,000 jobs and an additional $16 billion in wages and salaries over the coming year. Approximately one-third of those jobs would be in the construction sector. Small business income would increase by $6.5 billion, while corporate profits would increase by $5.5 billion. 2) Reform the appraisals process. Doing this would boost home sales by increasing the flow of credit to home buyers and stimulating housing demand. Our economists estimate that the result of such activity would be an increase in home sales by nearly 100,000 during the first 12 months, which in turn would create more than 63,000 jobs (as measured on a full-time equivalent basis). These jobs would be in the construction sector and other parts of the economy. 3) Resolve the credit crunch for housing production loans.
Encouraging lenders to provide leeway for residential acquisition, development and construction (AD&C) borrowers who have loans in good standing would strengthen balance sheets for the nation's home builders, thereby saving thousands of businesses and creating more than 82,000 jobs in the residential construction sector.
4) Expand the tax code's Net Operating Loss carryback period for businesses.
Eliminating the current $15 million cap on average annual gross receipts and allowing 2009 losses to be eligible for the expanded carryback would help many businesses and provide relief to taxpayers who have been hit by the Alternative Minimum Tax. NAHB analysis shows that such tax relief would result in more than 53,000 jobs in the construction sector and more than 200,000 jobs throughout the rest of the economy.
Following are the four primary advocacy goals of the Revive Housing, Restore America campaign that NAHB initiated in August and continues to push with all its might: 1) Extend the $8,000 tax credit for another year and make it available to all income-eligible buyers. Research by NAHB's tax analysts indicates that this action would spur 383,000 additional home sales – including 80,000 housing starts – and create nearly 350,000 jobs and an additional $16 billion in wages and salaries over the coming year. Approximately one-third of those jobs would be in the construction sector. Small business income would increase by $6.5 billion, while corporate profits would increase by $5.5 billion. 2) Reform the appraisals process. Doing this would boost home sales by increasing the flow of credit to home buyers and stimulating housing demand. Our economists estimate that the result of such activity would be an increase in home sales by nearly 100,000 during the first 12 months, which in turn would create more than 63,000 jobs (as measured on a full-time equivalent basis). These jobs would be in the construction sector and other parts of the economy. 3) Resolve the credit crunch for housing production loans.
Encouraging lenders to provide leeway for residential acquisition, development and construction (AD&C) borrowers who have loans in good standing would strengthen balance sheets for the nation's home builders, thereby saving thousands of businesses and creating more than 82,000 jobs in the residential construction sector.
4) Expand the tax code's Net Operating Loss carryback period for businesses.
Eliminating the current $15 million cap on average annual gross receipts and allowing 2009 losses to be eligible for the expanded carryback would help many businesses and provide relief to taxpayers who have been hit by the Alternative Minimum Tax. NAHB analysis shows that such tax relief would result in more than 53,000 jobs in the construction sector and more than 200,000 jobs throughout the rest of the economy.
Friday, July 31, 2009
Avoid Corrosive Influences!
Topic: Avoid Corrosive Influences!
"Visit any bar and what will you hear?
Gossip. Complaining . Bitterness. Negativity.
Visit any lunch room in any big company and what will you hear?
Gossip. Complaining. Bitterness. Negativity.
Eavesdrop on any family gathering around dinner time and what will you hear?
Gossip. Complaining. Bitterness. Negativity.
I could go on. " The point is that the vast majority of humanity is stuck in this
level of consciousness. It's the level of the popular media. It's the level of most
conversations. It's the level of low energy. And this very same level keeps people
exactly where they are. " So writes Joe Vitale in The Attractor Factor.
Be Careful! Avoid corrosive influences!
Many of the people closet to you will discourage your growth. The reason is simple they see you the way
you were.
A friend who lost 35 pounds told me that along the way he felt resistance from
people around him, even though he had more weight to lose. They were used to
seeing him over weight and unconsciously resisted his efforts to become thin.
It is always this way, for one reason- people who know you see the way you were.
They will not see you differently until they seen the new results for awhile.
That's just the way it is. Get over it. Don't look to the people who know you best to encourage you.
They can't see a different you until they see different results.
Instead, spend extra time with people who have been successful in your Red Bucket area! ( the area you are trying to change) Spend time with people who know you
can achieve it.
Avoid corrosive influences! And keep moving forward!
"Visit any bar and what will you hear?
Gossip. Complaining . Bitterness. Negativity.
Visit any lunch room in any big company and what will you hear?
Gossip. Complaining. Bitterness. Negativity.
Eavesdrop on any family gathering around dinner time and what will you hear?
Gossip. Complaining. Bitterness. Negativity.
I could go on. " The point is that the vast majority of humanity is stuck in this
level of consciousness. It's the level of the popular media. It's the level of most
conversations. It's the level of low energy. And this very same level keeps people
exactly where they are. " So writes Joe Vitale in The Attractor Factor.
Be Careful! Avoid corrosive influences!
Many of the people closet to you will discourage your growth. The reason is simple they see you the way
you were.
A friend who lost 35 pounds told me that along the way he felt resistance from
people around him, even though he had more weight to lose. They were used to
seeing him over weight and unconsciously resisted his efforts to become thin.
It is always this way, for one reason- people who know you see the way you were.
They will not see you differently until they seen the new results for awhile.
That's just the way it is. Get over it. Don't look to the people who know you best to encourage you.
They can't see a different you until they see different results.
Instead, spend extra time with people who have been successful in your Red Bucket area! ( the area you are trying to change) Spend time with people who know you
can achieve it.
Avoid corrosive influences! And keep moving forward!
Tuesday, July 14, 2009
Tankless Water Heaters..Are they worth it?
Tank, Tankless or Thankless
by PJ Wade
Is going "tankless" as liberating as it sounds? Is owning a tankless water heater a solid indication that you're saving money while reducing environmental damage?
Your answer to these questions may depend on whether you own or are buying a newly-constructed home versus living in or purchasing an existing, decades-old property.
Conventional water heaters heat litres of stored water which is kept hot 24/7, even when there is no demand. Tankless units are heaters which heat water on demand, then stop.
First of all, don't get sanctimonious if your tankless water heater was part of the features of the new home you bought or had built. Starting from scratch and incorporating energy-efficient, environmentally-friendly systems during construction is always easier, and usually less expensive, than retrofitting, or adding a modern system to an older home.
The benefits and cost-considerations of tankless water heaters in new homes can make this installation a feasible if not a preferred alternative to conventional tank-style heaters. New home construction standards are normally higher than those that existed for homes built in the last century or earlier. New plumbing, electrical, sound-proofing and other systems favour optimum installation and operation of tankless water heaters and other modern technologies.
If you own or want to buy an existing property, your commitment to reducing "your footprint" and saving energy may not be enough to make tankless water heaters the right way to achieve your environmental and financial goals. You can still have an energy-efficient, green home with a conventional water heater, but you'll just have to go about it differently.
One of the most important lessons to learn about the current rush toward "green" is that there are just as many inappropriate applications of good ideas and over-sold environmental or energy-efficient solutions as there are "right fits."
Don Fugler, Senior Researcher in Policy and Research at Canada's national housing agency, Canada Mortgage and Housing Corporation (CMHC), is currently managing CMHC's initial tankless field project designed to determine the actual savings gained when converting from a well-functioning conventional water heater to a tankless unit.
"Basically, what we hear is that tankless water heaters do save energy in a lot of cases, but what is not necessarily established so far, is what people should expect," said Fugler. "It is probably different from the theoretical savings—that you just calculate based on efficiencies. What house usage is unlikely to get significant savings? The fact [is] that water heater usage or homeowner draws on hot water are a lot different in reality than they are modelled in standards. This makes a difference because the way they are modelled in standards actually benefits tankless water heaters. I don't think they set it up this way, it just does."
Tankless water heaters are not a new idea, just relatively new to Canadians. In retrofit situations, they may not always be practical, cost-effective or feasible. Fugler offered a few issues to consider in evaluating whether tankless is right for you:
Net result may not be a gain "Part of the problem, or part of the solution, is tank heaters lose their heat to the house....So even though a conventional water heater does lose heat, it is seen to be heating your house and that is an asset for two thirds of the year.... In Canada, which is more a heating than a cooling climate, tankless is only going to have a third of the advantage that it may have in a cooling climate." Fugler explains that expected savings from converting to tankless may not materialize because, while fuel consumption by the water heater may go down, fuel consumption to replace heat to the house may increase. This has been found for shifts to high-efficiency furnace fans and CFL light bulbs.
Billing disappointment The quoted percent of savings should be applied to the portin of the gas or electric bill represented by the water heater. With all the charges piled confusingly on a gas bill, an absolute savings may not be visible. If you expect to save significant amounts, you may be disappointed.
Pay back clarity For the two reasons above, the quoted pay back time may be hard to calculate or much longer than stated. Sales representations would normally include best case scenarios. Where hot water bills are high, savings could be more noticeable. With low or conservationist usage, the savings may be small and the pay back much longer.
Hot water delivery How long does it take hot water to arrive at the tap? Since home designs usually locate heaters in an otherwise unused corner of the basement, second-floor and higher bathrooms may be a long way off. Having to run water as long as 5 minutes to get the hot may result in wasted water. Low-flow shower heads increase delivery time. Anti-scald valves like those required in new homes may also interfere with hot water availability. Recirculation pumps may help this problem, but that's another cost to consider.
Heating differential Municipal water may be very cold, requiring considerable fuel to heat it to the desired temperature. Drain water heat recovery installations recycle hot wastewater to heat up incoming cold water to warm by spiralling the wastewater piping around the intake pipe. However, this approach is only practical for those who regularly take long hot showers, not baths.
Flow limits and use patterns Tankless heaters have minimum flow limits, so they don't heat water for small draws like rinsing your hands. Some users turn on a second tap to reach the flow threshold for hot water at the tap where they want low flow hot water. It is this type of water-waste pattern and other use changes that are of interest to Fugler in the current research project. To achieve maximum desired flow, particularly to have two or more simultaneous uses with lots of hot water, intake pipes may need to be increased to 3/4 inch from the conventional ½ inch. In large, high-usage homes, more than one unit may be advisable.
Adequate fuel supply Gas supply input may need increasing to 3/4 inch pipe to achieve desired hot water flow. A comparable cost may be required to upgrade to a larger service panel for an electric tankless unit.
Venting and noise The exhaust gases and moisture from gas tankless water heaters are vented outside, not into a chimney, in a manner dictated by bylaws and codes. Proximity to neighbours may cause complaints about noise and condensation, or it may make the installation impossible. Decks and patios may also restrict venting choices. More expensive and higher efficiency condensing units may offer more venting flexibility, but installation costs may increase. If venting is not possible, an electric unit may be the only tankless alternative.
Tankless water heaters are expensive to purchase and installation in Canada. Fugler predicts that these and other issues will be resolved through technological advances and government regulation. Tankless water heaters will become the new normal in the decades ahead.
For now, invest in knowledge in advance of a purchase, or regret in hindsight...your choice. Don't rely on salespeople or installers to make decisions for you. Buyer beware is the law. Buyer be aware is the solution.
Wednesday, June 24, 2009
What will Interest Rates do?
Finally the MBA lowered their market projections, which are in line with what we had been thinking for the rest of the year.
Washington, DC (June 22, 2009) — The Mortgage Bankers Association today lowered its forecast of mortgage originations in 2009 to $2.03 trillion, a drop of over $700 billion from its March forecast. $84 billion of the drop is due to lower purchase originations and the rest is due to lower rate/term refinancings and very low volumes in the Fannie Mae and Freddie Mac Home Affordable Refinance Program (HARP). MBA is now forecasting $737 billion in purchase originations and $1,297 billion in refinance originations.
In announcing the drop in the forecast, MBA’s Chief Economist Jay Brinkmann issued the following statement:
“In March we boosted our forecast of mortgage originations by over $800 billion following the drop in interest rates associated with the Federal Reserve’s announcement on the Treasury bond and mortgage-backed securities (MBS) purchases programs as well as the implementation of HARP. We warned at the time that with the billions in Treasury securities that would be issued to finance record budget deficits and with the Fed expected to purchase only a portion of those Treasury securities, how long rates stayed low would depend on whether other investors stayed in the market. If other investors shied away from Treasuries due to expectations of future inflation and the declining value of the dollar, the effect on rates would be more short-lived and our mortgage originations forecast would prove too optimistic. That has proven to be the case.
“While the Fed has been successful in reducing the spread between conforming mortgage and Treasury rates through its purchase of agency MBS, it has not been successful in maintaining lower Treasury yields. Since March, the Federal Reserve purchases have equaled approximately 85% of new MBS issuance for Fannie Mae, Freddie Mac and Ginnie Mae combined. In contrast, Federal Reserve purchases of long-term Treasuries equaled about 50% on new issuance during that same three month period. Given the high issuance volume of Treasuries in June, the Fed is likely approaching its self-imposed ceiling of $300 billion and may be reluctant to increase its current commitment to purchase long-term Treasuries for two reasons. First, Fed officials have made public statements about their outlook for an improving economy. Second, the Fed may have decided that its purchases may not be efficacious in maintaining lower long-term Treasury rates and may not be worth the risks entailed in building up a large Fed balance sheet that will need to be reduced at some future point.
“The March increase in refinance originations was driven by two factors. The first factor was the drop in interest rates. The subsequent increase in interest rates, however, began to choke off the refinance wave in May, much earlier than anticipated in the March forecast. The second factor was the large volume of loans expected from HARP. While generally accepted estimates were that around 1.5 to 2 million borrowers might avail themselves of this program, with many more potentially eligible, to date only about 13,000 loans have been completed according to press reports. While the number of loans completed under this program is likely to increase, it is difficult to craft a scenario under which origination volumes would come anywhere close to reaching the numbers originally envisioned for the program, particularly under our higher rate environment.
“MBA had estimated that purchase mortgage originations in 2009 would be $821 billion. We have now lowered this to $737 billion for several reasons. First, while home sales have been higher than expected, home prices have fallen more than expected leading to smaller loans. Second, the large share of distressed sales or homes purchased by investors has resulted in the share of all cash home purchases being higher than normal. Therefore, even with higher projected home sales for all of 2009, the projected lower average home price and higher cash share have combined to lower projected volume of purchase originations.
“MBA now projects that total existing home sales for 2009 will be 4.8 million units, a drop of 1.2 percent from 2008. MBA projects new home sales will be 352,000 units, a decline of about 27 percent from 2008. Median home prices for new and existing homes will likely continue to fall, dropping by about ten percent from 2008 levels, but leveling off in 2010 as the economy improves.
“There are several schools of thought about where long-term interest rates are headed. One school holds that continued anemic growth and high unemployment will combine to hold down inflation and the demand for debt. The increase in government debt has been partially offset by declines in other forms of debt, especially mortgage and other consumer debt. The result will be long-term interest rates at approximately current levels through the end of 2010. Another school of thought holds that the large increases in federal debt will put tremendous pressure on domestic and international investors to absorb this debt, and that the large increases in the money supply and declines in the dollar could trigger inflation, all leading to higher rates. The MBA forecast is for increasing rates through the end of the year and through 2010. Adding to the pressure for higher long-term Treasury yields is the notion that, at some point, the Fed has to withdraw the substantial liquidity it has injected into the financial markets to keep a lid on expected inflation. On the other hand, a resumption of a flight to quality, induced by political unrests around the globe or a renewed financial crisis, could cause long-term Treasury yields to reverse their course.”
Washington, DC (June 22, 2009) — The Mortgage Bankers Association today lowered its forecast of mortgage originations in 2009 to $2.03 trillion, a drop of over $700 billion from its March forecast. $84 billion of the drop is due to lower purchase originations and the rest is due to lower rate/term refinancings and very low volumes in the Fannie Mae and Freddie Mac Home Affordable Refinance Program (HARP). MBA is now forecasting $737 billion in purchase originations and $1,297 billion in refinance originations.
In announcing the drop in the forecast, MBA’s Chief Economist Jay Brinkmann issued the following statement:
“In March we boosted our forecast of mortgage originations by over $800 billion following the drop in interest rates associated with the Federal Reserve’s announcement on the Treasury bond and mortgage-backed securities (MBS) purchases programs as well as the implementation of HARP. We warned at the time that with the billions in Treasury securities that would be issued to finance record budget deficits and with the Fed expected to purchase only a portion of those Treasury securities, how long rates stayed low would depend on whether other investors stayed in the market. If other investors shied away from Treasuries due to expectations of future inflation and the declining value of the dollar, the effect on rates would be more short-lived and our mortgage originations forecast would prove too optimistic. That has proven to be the case.
“While the Fed has been successful in reducing the spread between conforming mortgage and Treasury rates through its purchase of agency MBS, it has not been successful in maintaining lower Treasury yields. Since March, the Federal Reserve purchases have equaled approximately 85% of new MBS issuance for Fannie Mae, Freddie Mac and Ginnie Mae combined. In contrast, Federal Reserve purchases of long-term Treasuries equaled about 50% on new issuance during that same three month period. Given the high issuance volume of Treasuries in June, the Fed is likely approaching its self-imposed ceiling of $300 billion and may be reluctant to increase its current commitment to purchase long-term Treasuries for two reasons. First, Fed officials have made public statements about their outlook for an improving economy. Second, the Fed may have decided that its purchases may not be efficacious in maintaining lower long-term Treasury rates and may not be worth the risks entailed in building up a large Fed balance sheet that will need to be reduced at some future point.
“The March increase in refinance originations was driven by two factors. The first factor was the drop in interest rates. The subsequent increase in interest rates, however, began to choke off the refinance wave in May, much earlier than anticipated in the March forecast. The second factor was the large volume of loans expected from HARP. While generally accepted estimates were that around 1.5 to 2 million borrowers might avail themselves of this program, with many more potentially eligible, to date only about 13,000 loans have been completed according to press reports. While the number of loans completed under this program is likely to increase, it is difficult to craft a scenario under which origination volumes would come anywhere close to reaching the numbers originally envisioned for the program, particularly under our higher rate environment.
“MBA had estimated that purchase mortgage originations in 2009 would be $821 billion. We have now lowered this to $737 billion for several reasons. First, while home sales have been higher than expected, home prices have fallen more than expected leading to smaller loans. Second, the large share of distressed sales or homes purchased by investors has resulted in the share of all cash home purchases being higher than normal. Therefore, even with higher projected home sales for all of 2009, the projected lower average home price and higher cash share have combined to lower projected volume of purchase originations.
“MBA now projects that total existing home sales for 2009 will be 4.8 million units, a drop of 1.2 percent from 2008. MBA projects new home sales will be 352,000 units, a decline of about 27 percent from 2008. Median home prices for new and existing homes will likely continue to fall, dropping by about ten percent from 2008 levels, but leveling off in 2010 as the economy improves.
“There are several schools of thought about where long-term interest rates are headed. One school holds that continued anemic growth and high unemployment will combine to hold down inflation and the demand for debt. The increase in government debt has been partially offset by declines in other forms of debt, especially mortgage and other consumer debt. The result will be long-term interest rates at approximately current levels through the end of 2010. Another school of thought holds that the large increases in federal debt will put tremendous pressure on domestic and international investors to absorb this debt, and that the large increases in the money supply and declines in the dollar could trigger inflation, all leading to higher rates. The MBA forecast is for increasing rates through the end of the year and through 2010. Adding to the pressure for higher long-term Treasury yields is the notion that, at some point, the Fed has to withdraw the substantial liquidity it has injected into the financial markets to keep a lid on expected inflation. On the other hand, a resumption of a flight to quality, induced by political unrests around the globe or a renewed financial crisis, could cause long-term Treasury yields to reverse their course.”
Wednesday, June 17, 2009
Petition against New Law for Appraisals!
Request For Reconsideration of HVCC
View Current Signatures Sign the Petition
We the undersigned understand that the intentions of the Home Valuation Code of Conduct ("HVCC") were to help curb the potential for fraud with respect to the valuation of residential properties. We must however bring to your attention the reality of the situation that HVCC has already caused.
Since "Appraisal Management Companies (AMC’s)" are taking up to 40% of the total appraisal fee, and are not being regulated to ensure that their appraisers are licensed and competent, we are seeing unlicensed and inexperienced individuals performing property inspections with grave data entry errors. These inferior appraisals are then being “signed-off” by other parties that NEVER INSPECTED THE PROPERTY and are creating unnecessary financial hardship for buyers and sellers.
With mortgage loans being denied due to inaccurate appraisals, borrowers are being forced to apply with other lenders who in turn have to charge the consumer ANOTHER APPRAISAL FEE to proceed with the transaction. This vicious cycle can go on endlessly costing well intended clients a great deal of money and time.
Under HVCC, no one involved in the transaction is allowed to communicate these major issues (EVEN LICENSED LOAN ORIGINATORS) directly to their appraisers. So countless real estate transactions that would have otherwise closed are now failing, resulting in continued property devaluation and offering NO stimulus to our economy with the exception of the unregulated AMC’s who are making unjustified profits at the expense of home loan applicants and licensed, qualified appraisers.
Licensed appraisers have legal and ethical standards in place already. The emphasis should be on making appraisers abide by these, rather than frustrating the ordering and communication process. This well intended legislation is severely misguided. Although HVCC has good intentions, its flaws are severely hurting our housing industry, the consumer and our economy. We are requesting that HVCC be discontinued or thought through thoroughly and retooled in order to stop the devastation it has caused and will continue to cause on our housing industry and our economy. Sincerely, The Undersigned
Click here to sign http://www.hvccpetition.com/SignPetition.aspx
View Current Signatures Sign the Petition
We the undersigned understand that the intentions of the Home Valuation Code of Conduct ("HVCC") were to help curb the potential for fraud with respect to the valuation of residential properties. We must however bring to your attention the reality of the situation that HVCC has already caused.
Since "Appraisal Management Companies (AMC’s)" are taking up to 40% of the total appraisal fee, and are not being regulated to ensure that their appraisers are licensed and competent, we are seeing unlicensed and inexperienced individuals performing property inspections with grave data entry errors. These inferior appraisals are then being “signed-off” by other parties that NEVER INSPECTED THE PROPERTY and are creating unnecessary financial hardship for buyers and sellers.
With mortgage loans being denied due to inaccurate appraisals, borrowers are being forced to apply with other lenders who in turn have to charge the consumer ANOTHER APPRAISAL FEE to proceed with the transaction. This vicious cycle can go on endlessly costing well intended clients a great deal of money and time.
Under HVCC, no one involved in the transaction is allowed to communicate these major issues (EVEN LICENSED LOAN ORIGINATORS) directly to their appraisers. So countless real estate transactions that would have otherwise closed are now failing, resulting in continued property devaluation and offering NO stimulus to our economy with the exception of the unregulated AMC’s who are making unjustified profits at the expense of home loan applicants and licensed, qualified appraisers.
Licensed appraisers have legal and ethical standards in place already. The emphasis should be on making appraisers abide by these, rather than frustrating the ordering and communication process. This well intended legislation is severely misguided. Although HVCC has good intentions, its flaws are severely hurting our housing industry, the consumer and our economy. We are requesting that HVCC be discontinued or thought through thoroughly and retooled in order to stop the devastation it has caused and will continue to cause on our housing industry and our economy. Sincerely, The Undersigned
Click here to sign http://www.hvccpetition.com/SignPetition.aspx
Friday, June 12, 2009
Local Sales up but Values are down
Local Business
Local home sales up, but values down
$210,000 was median price in May, 16.3% less than last year
Thursday, June 11 5:35 p.m.
BY CAMI JONERCOLUMBIAN STAFF WRITER
Sales of new and pre-owned homes in Clark County inched up from April to May, but the still-sluggish market and a spike in local foreclosures are dragging down home values.The median price of all new and pre-owned homes sold in May was $210,000, according to benchmarks, a service of Riley & Marks appraisal firm. In May 2008, Clark County's median was $251,000. That represents a 16.3 percent year-over-year decline.Shrinking sales prices are due in part to the county's rising number of short sale listings, said Sharry McNeel, a Realtor and sales associate with Coldwell Banker Barbara Sue Seal Properties in Vancouver. Time-consuming short-sale transactions — in which homeowners negotiate to get their lenders to take less than is owed on the mortgage — can cause deal-killing backups as buyers wait for months to hear whether the bank has accepted their offer."Until they can get some of these short sales off the market or moved, it's tough. There's a big clog in the drain," McNeel said.410 homes sold in May
Countywide, 410 homes were sold in May, a 17.7 percent decline from the May 2008 total of 498. Median price of pre-owned homes sold last month was $208,750, down from $246,000 in the same month last year. The median price of a new home was $248,212, down from $279,900 a year ago. It's hard to tell whether the free fall in prices is nearing bottom, said Dick Riley, a Riley & Marks co-owner."If we haven't, it's scary. When you look at a median of $210,000, that's really low," he said. Riley blamed job insecurity and the county's rising unemployment rate at 13.4 percent in April for slow home sales that have kept many buyers sidelined since 2007."When in doubt, what do people do? They don't do anything," Riley said. "They hunker down."He pointed out the market's positives, such as the county's high inventory of homes listed for sale, softening prices and mortgage interest rates that remain below 6 percent, despite inching upward. The average rate for a 30-year fixed mortgage was 5.59 percent this week, up from 5.29 percent last week, according to Freddie Mac. The last time the average 30-year mortgage was higher was the week of Nov. 26, when it averaged 5.97 percent.Low loan rates
Low loan rates could be one reason May saw an uptick in the new-home sales category, as home builders worked to clear their backlog of inventory.For the month, 77 new homes were sold, compared with 48 new homes in April and 53 new homes in March."The builders pay higher interest rates," McNeel said.That has cut the profits of new-home builders over the past year, said Michael Shanaberger, sales and marketing director for Manor Homes in Vancouver."We're not really taking a loss, we're just not making any money," he said.Other home builders say they are scrambling to sell off "spec" houses, homes that were built without a buyer in hand.Kevin Wann, president of Vancouver-based Pacific Lifestyle Homes, said he sees the market stablizing."I am encouraged that people are out there," Wann said. "It doesn't feel like it's continuing to drop."
Local home sales up, but values down
$210,000 was median price in May, 16.3% less than last year
Thursday, June 11 5:35 p.m.
BY CAMI JONERCOLUMBIAN STAFF WRITER
Sales of new and pre-owned homes in Clark County inched up from April to May, but the still-sluggish market and a spike in local foreclosures are dragging down home values.The median price of all new and pre-owned homes sold in May was $210,000, according to benchmarks, a service of Riley & Marks appraisal firm. In May 2008, Clark County's median was $251,000. That represents a 16.3 percent year-over-year decline.Shrinking sales prices are due in part to the county's rising number of short sale listings, said Sharry McNeel, a Realtor and sales associate with Coldwell Banker Barbara Sue Seal Properties in Vancouver. Time-consuming short-sale transactions — in which homeowners negotiate to get their lenders to take less than is owed on the mortgage — can cause deal-killing backups as buyers wait for months to hear whether the bank has accepted their offer."Until they can get some of these short sales off the market or moved, it's tough. There's a big clog in the drain," McNeel said.410 homes sold in May
Countywide, 410 homes were sold in May, a 17.7 percent decline from the May 2008 total of 498. Median price of pre-owned homes sold last month was $208,750, down from $246,000 in the same month last year. The median price of a new home was $248,212, down from $279,900 a year ago. It's hard to tell whether the free fall in prices is nearing bottom, said Dick Riley, a Riley & Marks co-owner."If we haven't, it's scary. When you look at a median of $210,000, that's really low," he said. Riley blamed job insecurity and the county's rising unemployment rate at 13.4 percent in April for slow home sales that have kept many buyers sidelined since 2007."When in doubt, what do people do? They don't do anything," Riley said. "They hunker down."He pointed out the market's positives, such as the county's high inventory of homes listed for sale, softening prices and mortgage interest rates that remain below 6 percent, despite inching upward. The average rate for a 30-year fixed mortgage was 5.59 percent this week, up from 5.29 percent last week, according to Freddie Mac. The last time the average 30-year mortgage was higher was the week of Nov. 26, when it averaged 5.97 percent.Low loan rates
Low loan rates could be one reason May saw an uptick in the new-home sales category, as home builders worked to clear their backlog of inventory.For the month, 77 new homes were sold, compared with 48 new homes in April and 53 new homes in March."The builders pay higher interest rates," McNeel said.That has cut the profits of new-home builders over the past year, said Michael Shanaberger, sales and marketing director for Manor Homes in Vancouver."We're not really taking a loss, we're just not making any money," he said.Other home builders say they are scrambling to sell off "spec" houses, homes that were built without a buyer in hand.Kevin Wann, president of Vancouver-based Pacific Lifestyle Homes, said he sees the market stablizing."I am encouraged that people are out there," Wann said. "It doesn't feel like it's continuing to drop."
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