On this date in history...
Great fire of London occurred in 1666.
1st US lighthouse was built in Boston in 1716.
Women's Right's Convention met in NYC in 1853.
Carnation processed its 1st can of evaporated milk in 1899.
William McKinley, the 25th US President was shot by anarchist Leon Czolgosz at the New York Buffalo Pan-American Exposition in New York in 1901. He died 8 days later on September 14th.
The Harlem Globetrotters were organized 1927.
All Jews over the age of 6 in German territories ordered to wear a star in 1941.
WINS NYC began playing rock n roll with Alan Freed Show in 1954.
Mortgages & Closings
The Federal Reserve issued its economic update yesterday. It reported that credit problems in the U.S. have impacted housing, but haven’t hurt the general economy. I don't see how this can be so. Now, granted, the only reason that I can see for them to report this is because they are not wishing to reduce the rate again at the Sept. 18th meeting as many have anticipated.
Additionally, look at all the layoffs in the mortgage industry. Just yesterday & today, there were over 3000 layoffs announced and this doesn't include all of the previous ones mentioned, including the firms that have either closed or been disbanned. Add on top of that all of the mortgage brokers out there that are either being laid off and can't even procur a loan for a client.
A mortgage broker that I deal with has said to me that loan programs are being eliminated daily. Additionally, it was noted in an AP news story that a third of home loans failed to close in August. According to the article it was noted that three years ago only 4% of loans failed to close.
By the way, this information was obtained from a survey of 1700 mortgage brokers. "The survey also found that nearly half of borrowers with adjustable rate mortgages were not able to refinance their loans." It was also noted that 2.5 million ARM mortgages are set to adjust to higher rates this year and a great deal of these loans will most likely be foreclosed on.
On another note, even though the house & senate want to try to ease the present crisis, there does not appear to be any agreeement on how to do this. You may have also read about banking regulators and The Fed urging loan service companies to work with defaulting borrowers, but these are only suggestions and nothing is mandatory.
So, yes, they say that the mortgage and housing debacle are not making an impact on the general economy. Maybe this is so from the current statistics that they are utilizing, but wait until the next ones are recorded. This has stretched way beyond just the industry itself. It is affecting people across the board.
There was an article in yesterday's USA Today about the majority of calls to company helplines are about finances and foreclosure. Also, it was stated that how this will definitely affect productivity, etc. So, let's get realistic. This is a widespread epidemic of sorts.
Til next time...Marc It Sold!
Thursday, September 6, 2007
Wednesday, September 5, 2007
On This Date in History...
Russia's Peter the Great imposed a tax on beards in 1698.
The 1st Continental Congress assembled in Philadelphia in 1774.
1st gasoline pump is delivered to a gasoline dealer in Ft Wayne, Ind in 1885.
The National Association of Professional Baseball Leagues formed in 1901.
FDR declared US neutrality at the start of WW II in Europe in 1939.
"Mad Tuesday" 65,000 Dutch nazi collaborators fleed to Germany in 1944.
JFK signed a law against hijacking (the sentence would be the death penalty) in 1961.
21 killed by hijackers aboard a Pan Am jet in Karachi Pakistan in 1968.
11 Israeli athletes are slain at Munich Olympics by Black Sept. in 1972.
Lynette "Squeaky" Fromme attempted to assassinate President Gerald Ford in Sacramento 1975.
Anwar Sadat, Menachim Begin & Jimmy Carter began a peace conference at Camp David, MD in 1978.
Karachi Pakistan army stormed a hijacked US Boeing-747 in 1986. 19 were killed.
Today is Fight Procrastination Day, which is observed on the first Wednesday in September. So do tomorrow what you can do today. OK, so I'll try to work on that, tomorrow!
Have a great day! Will try to write more tomorrow when I'm home, but unfortunately do not have the time today.
Til then...Marc It Sold!
The 1st Continental Congress assembled in Philadelphia in 1774.
1st gasoline pump is delivered to a gasoline dealer in Ft Wayne, Ind in 1885.
The National Association of Professional Baseball Leagues formed in 1901.
FDR declared US neutrality at the start of WW II in Europe in 1939.
"Mad Tuesday" 65,000 Dutch nazi collaborators fleed to Germany in 1944.
JFK signed a law against hijacking (the sentence would be the death penalty) in 1961.
21 killed by hijackers aboard a Pan Am jet in Karachi Pakistan in 1968.
11 Israeli athletes are slain at Munich Olympics by Black Sept. in 1972.
Lynette "Squeaky" Fromme attempted to assassinate President Gerald Ford in Sacramento 1975.
Anwar Sadat, Menachim Begin & Jimmy Carter began a peace conference at Camp David, MD in 1978.
Karachi Pakistan army stormed a hijacked US Boeing-747 in 1986. 19 were killed.
Today is Fight Procrastination Day, which is observed on the first Wednesday in September. So do tomorrow what you can do today. OK, so I'll try to work on that, tomorrow!
Have a great day! Will try to write more tomorrow when I'm home, but unfortunately do not have the time today.
Til then...Marc It Sold!
Tuesday, September 4, 2007
Mortgages - Imagine That!!
On this date in history...
English astronomer Edmund Halley sees his namesake comet in 1682.
Robert Fulton began operating his steamboat in 1807.
General Robert E. Lee invaded the North with 50,000 Confederate troops in 1862.
George Eastman patented thefirst roll-film camera and registered the name "Kodak" in 1888.
1st transcontinental TV broadcast by President Harry S. Truman addressing the opening of Japanese Peace Treaty Conference in 1951.
Mark Spitz became the first athlete to win seven Olympic gold medals in the 1972 Summer Olympics in Munich, Germany.
Palestinians hijack KLM DC-9 to Cyprus in 1976.
Today is Newpaper Carrier Day - Barney Flaherty became the 1st newsboy (10 years old for the NY Sun) in 1933.
Mortgages
There are definitely mortgages to be had out there and some very good ones at that. You just won't be able to find the easy no documentation, low down payment & stated income mortgages of the past.
The reasoning is quite obvious. Goodness knows we've heard the news. And this is all understandably so. People need to properly qualify for mortgages. This is a major part of the breakdown of the mortgage industry. In the recent past, people with borderline credit were afforded mortgages. Some of these were low down payments; some ARM's in which they were only able to qualify at the initial rate not the fully indexed rate. This should have been common sense all along, but 20/20 hindsight does not prove anything. Hopefully, the lesson will be learned from this and we will not see a repeat of such.
Don't get me wrong, I am all for helping someone achieve homeownership. I consider that the crux of my job. I get such a thrill out of helping people achieve this goal - the supposed American Dream. But I can not in all good consciousness afford someone this fully knowing that they will probably have an issue repaying this debt and putting them in a position of possibly losing their investment, savings & home. The thought of that is abhorrent to me.
But there are some very good loan products out there. Yes, most of these are for people with good credit. But then this might be a wake up call for someone with marginal credit to try to work on improving that. This can be done, but let me warn you about credit counseling services. Firstly, the use of these usually ruins your credit to begin with. Secondly, what they are doing, you should be able to do yourself.
It's called discipline.
Til next time...Marc It Sold!
English astronomer Edmund Halley sees his namesake comet in 1682.
Robert Fulton began operating his steamboat in 1807.
General Robert E. Lee invaded the North with 50,000 Confederate troops in 1862.
George Eastman patented thefirst roll-film camera and registered the name "Kodak" in 1888.
1st transcontinental TV broadcast by President Harry S. Truman addressing the opening of Japanese Peace Treaty Conference in 1951.
Mark Spitz became the first athlete to win seven Olympic gold medals in the 1972 Summer Olympics in Munich, Germany.
Palestinians hijack KLM DC-9 to Cyprus in 1976.
Today is Newpaper Carrier Day - Barney Flaherty became the 1st newsboy (10 years old for the NY Sun) in 1933.
Mortgages
There are definitely mortgages to be had out there and some very good ones at that. You just won't be able to find the easy no documentation, low down payment & stated income mortgages of the past.
The reasoning is quite obvious. Goodness knows we've heard the news. And this is all understandably so. People need to properly qualify for mortgages. This is a major part of the breakdown of the mortgage industry. In the recent past, people with borderline credit were afforded mortgages. Some of these were low down payments; some ARM's in which they were only able to qualify at the initial rate not the fully indexed rate. This should have been common sense all along, but 20/20 hindsight does not prove anything. Hopefully, the lesson will be learned from this and we will not see a repeat of such.
Don't get me wrong, I am all for helping someone achieve homeownership. I consider that the crux of my job. I get such a thrill out of helping people achieve this goal - the supposed American Dream. But I can not in all good consciousness afford someone this fully knowing that they will probably have an issue repaying this debt and putting them in a position of possibly losing their investment, savings & home. The thought of that is abhorrent to me.
But there are some very good loan products out there. Yes, most of these are for people with good credit. But then this might be a wake up call for someone with marginal credit to try to work on improving that. This can be done, but let me warn you about credit counseling services. Firstly, the use of these usually ruins your credit to begin with. Secondly, what they are doing, you should be able to do yourself.
It's called discipline.
Til next time...Marc It Sold!
Monday, September 3, 2007
Labor Day
On this date in history....
Treaty of Paris that ended the Revolutionary War was signed in 1783.
Labor Day was celebrated as a legal holiday for the first time in 1894.
First professional football game was played in Latrobe, PA in 1895.
The First U.S. bowling league was established in 1921.
In 1939 World War was II declared when England and France declare war on Germany.
Labor Day
Labor Day differs from other holidays in that it celebrates the working man. Unfortunately, now a days, the meaning of this holiday has been greatly lost. It used to be that it was generally a day off for workers. It was to be a celebration with parades and picnics. Today, our commercial society has morphed this holiday into a sales extravaganza and the people that this holiday was to honor are now forced to work. Years ago you would not find a store open, but today...
Unfortunately, this is somewhat a sad testament to our society and how we treat our workers.
Anyway, enough of that. The founding father of Labor Day is a little murky, but it appears that the Central Labor Union in New York adopted a proposal for such. The first Labor Day was celebrated on Tuesday, September 5, 1882, in New York City. In 1884 the first Monday in September was selected as the holiday.
The first state to pass legislation making Labor Day a legally recognized holiday was Oregon on February 21, 1887. They were followed that same year by Colorado, Massachusetts, New York & New Jersey. It became a national holiday June 28, 1984 when Congress passed an act making the first Monday in September of each year a legal holiday.
Happy Labor Day to all & may yours be Safe & Fun!
Til tomorrow...Marc It Sold!
Treaty of Paris that ended the Revolutionary War was signed in 1783.
Labor Day was celebrated as a legal holiday for the first time in 1894.
First professional football game was played in Latrobe, PA in 1895.
The First U.S. bowling league was established in 1921.
In 1939 World War was II declared when England and France declare war on Germany.
Labor Day
Labor Day differs from other holidays in that it celebrates the working man. Unfortunately, now a days, the meaning of this holiday has been greatly lost. It used to be that it was generally a day off for workers. It was to be a celebration with parades and picnics. Today, our commercial society has morphed this holiday into a sales extravaganza and the people that this holiday was to honor are now forced to work. Years ago you would not find a store open, but today...
Unfortunately, this is somewhat a sad testament to our society and how we treat our workers.
Anyway, enough of that. The founding father of Labor Day is a little murky, but it appears that the Central Labor Union in New York adopted a proposal for such. The first Labor Day was celebrated on Tuesday, September 5, 1882, in New York City. In 1884 the first Monday in September was selected as the holiday.
The first state to pass legislation making Labor Day a legally recognized holiday was Oregon on February 21, 1887. They were followed that same year by Colorado, Massachusetts, New York & New Jersey. It became a national holiday June 28, 1984 when Congress passed an act making the first Monday in September of each year a legal holiday.
Happy Labor Day to all & may yours be Safe & Fun!
Til tomorrow...Marc It Sold!
Sunday, September 2, 2007
On This Day in History...
On this date in history....
The Great Fire in London destroys 13,000 houses & kills 8 in 1666.
Last day of the Julian calender in US & England (no Sept 3-Sept 13th) in 1752.
US Treasury Department established by Congress in 1789.
Machine gun 1st used in battle in 1898.
National Commission recommends a best-of-9 World Series in 1919.
1st non-stop airplane flight from Europe to US (37 hrs) in 1930.
Holocaust diarist Anne Frank was sent to Auschwitz in 1944.
V-J Day - Japan signed a formal surrender in 1945.
Alabama Gov. George C. Wallace prevents integration of Tuskegee HS in 1963.
Philips introduces CD-video in 1987.
Til tomorrow where we will have more on this date in history....Marc It Sold!
The Great Fire in London destroys 13,000 houses & kills 8 in 1666.
Last day of the Julian calender in US & England (no Sept 3-Sept 13th) in 1752.
US Treasury Department established by Congress in 1789.
Machine gun 1st used in battle in 1898.
National Commission recommends a best-of-9 World Series in 1919.
1st non-stop airplane flight from Europe to US (37 hrs) in 1930.
Holocaust diarist Anne Frank was sent to Auschwitz in 1944.
V-J Day - Japan signed a formal surrender in 1945.
Alabama Gov. George C. Wallace prevents integration of Tuskegee HS in 1963.
Philips introduces CD-video in 1987.
Til tomorrow where we will have more on this date in history....Marc It Sold!
Saturday, September 1, 2007
The Mortgage Debacle, The Market & The Fallout!
Today on this date in history...
First federal tax was levied on tobacco in 1862.
Emma M. Nutt Day, she was the first woman telephone operator in 1878.
Labor Day was declared a U S national holiday by Congress in 1894.
World World II began when German troops invade Poland in 1939 at 5:30AM.
Lead in paint is declared illegal in 1977.
The Mortgage Debacle, The Market & The Fallout!
Several things have been in the news. Yesterday, I touched briefly on the possible expanded role of the FHA in helping people to be able to refinance before they lose their home to foreclosure. I think that this is a necessary step by the government to help people and especially our economy, but my concern comes down to part of the criteria.
To qualify, homeowners would have to prove they paid their loan on time before it reset to a higher rate and must have at least 3 percent equity in the home. That is fine and also the fact that Pres. Bush is asking Congress to raise the present loan limits. But part of the criteria for one of these loans is that to compensate for the added risk, the borrowers would have to pay higher premiums on the loans and also some of the closing costs. Right then and there you are going to eliminate a lot of people who might be in dire need of help. They are already tapped to the limit. If they can't afford their present loan, how might they afford one with a higher interest rate & possibly having to come up with some of the closing costs, nevermind 3% if they do not have enough equity.
I agree that help is needed, but have to be concerned about the repercussions of this. There was an article in USA today in which Peter Wallison of the American Enterprise Institute said, “If you’re going to help someone to refinance, you’re going to bail out the person who financed him in the first place.... This will only cause the problem to arise again.” Yes, this may be true and is a concern, but that all depends on how the government handles the whole situation.
Another major group of foreclosures is coming from the investor group. We've all heard about the investors trying to grab a piece of the pie/cake. Unfortunately, this cake didn't rise as anticipated. The numbers are quite large in comparison. Nevada leads the pack of investor defaults followed by Arizona, Florida & California. Yes, all four of these states have been in the news quite a bit due to the change in real estate market conditions. They all have had incredible growth, but with that growth also comes some fallout as we are seeing now.
It was recently noted that even though Florida has shown a year over year price decline of almost 1%; the overall 5 year stats show a price gain of over 95%. Granted, this bodes well for most of us. The people that are obviously being negatively affected at this point are the sellers, especially those who've purchased within the past two years; those with ARM's that are being adjusted to higher rated; those with 100% financing, which I've always tried to dissaude people from getting involved in; and, especially investors.
Now, there is another group of people that are feeling the brunt of all this, and that's renters. According to another article that I've recently read, rents are projected to rise about 4 percent this year and next. This is being affected on many levels. Many previous owners that are finding themselves in foreclosure are turning into renters again. Additionally, more renters are also renewing their leases because they can no longer qualify for mortgages.
The only good part of this, is that some landlords are renting for less than their present mortgage on their investment properties, basically looking to just cut their loses. These people are avoiding foreclosure by doing such and because they have the present ability to afford it as well.
Anyway, till next time...Marc It Sold!
First federal tax was levied on tobacco in 1862.
Emma M. Nutt Day, she was the first woman telephone operator in 1878.
Labor Day was declared a U S national holiday by Congress in 1894.
World World II began when German troops invade Poland in 1939 at 5:30AM.
Lead in paint is declared illegal in 1977.
The Mortgage Debacle, The Market & The Fallout!
Several things have been in the news. Yesterday, I touched briefly on the possible expanded role of the FHA in helping people to be able to refinance before they lose their home to foreclosure. I think that this is a necessary step by the government to help people and especially our economy, but my concern comes down to part of the criteria.
To qualify, homeowners would have to prove they paid their loan on time before it reset to a higher rate and must have at least 3 percent equity in the home. That is fine and also the fact that Pres. Bush is asking Congress to raise the present loan limits. But part of the criteria for one of these loans is that to compensate for the added risk, the borrowers would have to pay higher premiums on the loans and also some of the closing costs. Right then and there you are going to eliminate a lot of people who might be in dire need of help. They are already tapped to the limit. If they can't afford their present loan, how might they afford one with a higher interest rate & possibly having to come up with some of the closing costs, nevermind 3% if they do not have enough equity.
I agree that help is needed, but have to be concerned about the repercussions of this. There was an article in USA today in which Peter Wallison of the American Enterprise Institute said, “If you’re going to help someone to refinance, you’re going to bail out the person who financed him in the first place.... This will only cause the problem to arise again.” Yes, this may be true and is a concern, but that all depends on how the government handles the whole situation.
Another major group of foreclosures is coming from the investor group. We've all heard about the investors trying to grab a piece of the pie/cake. Unfortunately, this cake didn't rise as anticipated. The numbers are quite large in comparison. Nevada leads the pack of investor defaults followed by Arizona, Florida & California. Yes, all four of these states have been in the news quite a bit due to the change in real estate market conditions. They all have had incredible growth, but with that growth also comes some fallout as we are seeing now.
It was recently noted that even though Florida has shown a year over year price decline of almost 1%; the overall 5 year stats show a price gain of over 95%. Granted, this bodes well for most of us. The people that are obviously being negatively affected at this point are the sellers, especially those who've purchased within the past two years; those with ARM's that are being adjusted to higher rated; those with 100% financing, which I've always tried to dissaude people from getting involved in; and, especially investors.
Now, there is another group of people that are feeling the brunt of all this, and that's renters. According to another article that I've recently read, rents are projected to rise about 4 percent this year and next. This is being affected on many levels. Many previous owners that are finding themselves in foreclosure are turning into renters again. Additionally, more renters are also renewing their leases because they can no longer qualify for mortgages.
The only good part of this, is that some landlords are renting for less than their present mortgage on their investment properties, basically looking to just cut their loses. These people are avoiding foreclosure by doing such and because they have the present ability to afford it as well.
Anyway, till next time...Marc It Sold!
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