The "Stress Test" methodology from the Federal Reserve Bank

The white paper is intended to assist analysts and other interested members of the public in understanding the results of the Supervisory Capital Assessment Program, expected to be released in early May. All U.S. bank holding companies with year-end 2008 assets exceeding $100 billion were required to participate in the assessment, which began February 25. These institutions collectively hold two-thirds of the assets and more than half the loans in the U.S. banking system.

Northern Trust raising $1.25B to redeem TARP shares

Chicago’s biggest bank holding company has hired Goldman Sachs & Co. and Morgan Stanley & Co. Inc. to handle the $750-million equity portion of the deal, the bank announced Monday. It also intends to raise about $500 million in senior notes in a registered public offering. Northern Trust will use the proceeds, plus other capital, to redeem the $1.6 billion in preferred shares it sold to the federal government last year under the Troubled Asset Relief Program.

Energy upgrades at home pay off on tax return, too

Energy Provisions of the American Recovery and Reinvestment Act of 2009. From the IRS directly Good read.

Pilot program aims to halt foreclosures

Area real-estate professionals are hoping Fannie Mae continues a limited pilot program aimed at facilitating short sales, especially as local foreclosure filings continue to hit record highs. Since its January launch, the program has prevented at least a handful of homes in 11 Florida counties — including Manatee and Sarasota — from falling into foreclosure by making it easier to sell them for less than their outstanding mortgages.

Latest legislative developments in Real Estate

World Health Organization Raises Pandemic Alert to Phase 4

In the 2009 revision of the phase descriptions, WHO has retained the use of a six-phased approach for easy incorporation of new recommendations and approaches into existing national preparedness and response plans.

Reverse Mortgages Are a Good Thing For the Right Homeowner

I hear people say all the time, “Oh, a reverse mortgage? I’ve heard those are bad,” or some variation. I’d like to tell you why they can be a lifesaver for the right person.

FHA approved you can search the HUD database

The link is also archived along the left-hand side under ‘internet resources’.

Video interview of NAR’s Chief Economist.

“YOUR” Economy is what matters. Not “The” Economy.

Making Home Affordable Program/Refinance Your Mortgage

In support of the Federal Making Home Affordable Program, Freddie Mac and Fannie Mae will offer two initiatives that will help keep more families in their homes, stabilize communities and assist homebuyers during this difficult time. Under the plan, eligible homeowners can:

Refinance your mortgage to a new, potentially lower interest rate, with additional flexibility to assist many homeowners who have previously had difficulty refinancing due to declining property values. You'll need to be current on your mortgage payments to qualify for this refinance.

Obtain a modification on your mortgage that can potentially reduce your monthly payment, or offer other alternatives that can help you keep your home. This program is for homeowners who are delinquent in their mortgage payments, in the foreclosure process, or are current on their payments but have recently experienced significant hardship. Significant hardship includes circumstances that may make it difficult for you to pay your mortgage going forward.

How to Keep Your Home and Avoid Foreclosure or Simply Save Money On Their Mortgage

“Making Home Affordable” is the Obama Administration’s plan for offering aggressive refinancing and loan workout options to a wide range of America’s borrowers. This new effort is being implemented nationwide by Freddie Mac and others and is expected to help millions of borrowers refinance or modify their mortgages, avoid foreclosure, and stimulate the economy.

Milwaukee REALTORS® showed their pride at 1917 Home and Real Estate Show

In April of 1917 thousands flocked to Milwaukee Auditorium for the Home and Real Estate Show. "The show was the first of its kind ever attempted in the Northwest," the National Real Estate Journal reported. This exposition of home planning, building and outfitting...will be difficult to improve upon."

Adapting to a New Term in Real Estate

In January of 1918 the National Real Estate Journal reported on use of the new word REALTOR® and efforts to educate the public about what it meant. The word was coined by Charles N. Chadbourn, vice-president of the National Association of Real Estate Boards and former President of the Minneapolis Real Estate Board. In 1916 Chadbourn sold the rights to the word to the National Association for one dollar.

NAR Testifies on Need for Increased Capacity for FHA

J. Lennox Scott, member of NAR's Real Estate Advisory Board, testified before the Senate Appropriations Subcommittee on Transportation and Housing and Urban Development on the importance of the FHA mortgage insurance program. In his testimony Mr. Scott urged Congress to provide additional resources for FHA to increase its staffing and its investment in technology. He also urged FHA to allow the $8000 tax credit to be provided as an advance loan to be used for downpayment. The testimony also requested that the FHA loan limits be made permanent and that FHA implement the condominium changes that will ease purchasing a condominium with FHA insurance.

Copyright NATIONAL ASSOCIATION OF REALTORS®

TIPS FOR BUYERS: MORTGAGE APPLICATION 101

Bankrate.com offers tips for buyers whose first attempt at a mortgage loan might have been rejected as well as ways to improve their chances the next time around.


Tips include:

1. Reasons for rejection

2. Finding a fix

3. Alternative options

4. How to try again

“They don’t want good appraisers”

The Center for Public Integrity has posted a great report on the developments of the appraisal profession over the last few years.

The report discusses how appraisal pressure has influenced the housing market and includes this section on the Home Valuation Code of Conduct:

Appraisers who work for themselves or small businesses say the code will end their careers since mortgage brokers and other loan generation staff can no longer contact them directly. Instead, they say the code in effect directs all business to appraisal management companies, the unregulated middlemen that are often subsidiaries of lenders.
Appraisers say the management companies passed on pressure from lenders in the past, including in Cuomo’s case against eAppraiseIt, and see nothing in the new code to stop it from happening.

“It’s a bit of irony that the solution is the same thing that got us here,” said Bill Garber, director of government and external relations at the Appraisal Institute, a trade association representing appraisers.

The Home Valuation Code of Conduct, Garber added, is lip service to cleaning up the industry. Appraisal management companies “are just as capable of pressuring appraisers as anyone else.”

Appraisers also dislike the plan because some appraisal management companies take a hefty administrative fee and pay low rates to appraisers, which experienced appraisers say will force them out of the business and turn the industry over to less experienced appraisers who are more likely to make mistakes.

Pressure will still come from the management companies, said Dodd, the Virginia appraiser. “They could give a damn about the consumer. They don’t care if the consumer pays ten, twenty, or thirty thousand more than it’s worth.”

Cuomo hasn’t answered critics of the new code, and his office did not return calls from the Center for Public Integrity.


I'm somewhat surprised the Center for Public Integrity could not find one person to defend the HVCC. Not even Cuomo's folks want to talk about it?

Here's how the report concludes:

In February, Miller received a call from a different lender. This one wanted him to remove pictures of a cracked sidewalk he included in his appraisal. This would be prohibited under the Home Valuation Code of Conduct. But Miller expects lenders will figure out a way around the rules.
“They don’t want good appraisers,” he said. “They don’t want good numbers, even now.”


And again my question is, "Who is enforcing the HVCC?"

Backlog causes Cook County (Chicago) to delay some foreclosure actions.

Cook County Circuit Court is delaying foreclosure actions against some homeowners as it tries to work through an ever-growing backlog of cases. Chancery Division Presiding Judge Dorothy Kirie Kinnaird notified judges and attorneys April 1 that all mortgage default calls ? those first court appearances made by a lender when a borrower has not responded to a foreclosure action ? would be canceled for July and August

President's Perspective - First Quarter 2009

My Koenig & Strey President's Perspective for the First Quarter of 2009. I agree with the President, call or email me if you like to discuss this further.

How Bo the puppy wound up with the Obamas.

The Obamas welcome their new puppy, a Portuguese water dog named Bo.

FEDERAL, STATE PARTNERS ANNOUNCE MULTI-AGENCY CRACKDOWN TARGETING FORECLOSURE RESCUE SCAMS, LOAN MODIFICATION FRAUD

WASHINGTON - As homeowners and communities throughout the country continue to face devastating consequences from the deep contraction in the economy and the housing market, the Obama Administration today announced a new coordinated effort across federal and state government and the private sector to target mortgage loan modification fraud and foreclosure rescue scams that threaten to hurt American homeowners and prevent them from getting the help they need during these challenging times. The new effort announced today aligns responses from federal law enforcement agencies, state investigators and prosecutors, civil enforcement authorities, and the private sector to protect homeowners seeking assistance under the Administration's Making Home Affordable program from criminal actors looking to perpetrate predatory schemes.

FHA SETTLES $756 MILLION DEAL TO CONSTRUCT STATE OF THE ART HOSPITAL IN TRENTON, NEW JERSEY

WASHINGTON - In the largest single transaction of its 75 year history, the Federal Housing Administration today announced that it has finalized a deal to insure a $756 million mortgage for Capital Health of Trenton, New Jersey. The loan is made possible through the FHA's Section 242 Hospital Mortgage Insurance Program. It will allow Capital Health to construct a new 223-bed hospital in Hopewell Township to replace the existing Mercer Medical Center.

"Insurance Insider" info. Is the home vacant?

I wanted to share some "insurance" insider information regarding homes for sale where the owners have already moved and are no longer living there. Within the insurance industry the home could be considered:

1. Abandoned,
2. Vacant or
3. Unoccupied

If a house is considered "abandoned", it is almost impossible to insure - the risk is too high. If a home is abandoned, all furniture is gone, no one checks on it and it falls into disrepair.

Most insurance companies like to consider the home for sale as "vacant". It is very important for your insurance agent to talk to the company and convince them the home is NOT vacant. The company should be convinced the home is "unoccupied". If they consider it vacant, the coverages are extremely limited and the premium is increased - not at all like the coverages and cost of a regular homeowners policy.

In order to help present this "unoccupied" scenario to an insurance company, several things should be in place, such as:

a) If there is an alarm, it should still be active.
b) There should be some furniture in the home.
c) A request to the local police should be made for some extra patrols.
d) Have a friend, in addition to the real estate agent, check on the home periodically.

If these items are in place, the insurance company is more likely to continue the policy under the regular homeowners form.

Koenig & Strey Insurance Agency, LLC

Home Delivery is a monthly newsletter that contains topical, seasonal and evergreen research and consumer trends.

NAR Warns of Rental Property Scam

WASHINGTON , March 27, 2009

The National Association of Realtors®’ name is being used as part of a property rental scam in which rental property is offered to consumers, who are led to believe that NAR is functioning as an intermediary to receive rental deposits from prospective tenants.

The scam claims that on receipt of a deposit, NAR will deliver the keys to the property to the tenant. Prospective tenants are instructed to send money via Western Union to NAR’s purported agent in the United Kingdom.

Some of the listings have been posted on Craigslist, which reportedly has had difficulty in tracing the original listings. NAR does not have an escrow service, or function as an intermediary to receive rental deposits.

Some of the scam listings also refer to or propose using a “Residential Lease Package” that includes a form lease that purports to be a document prepared by or otherwise associated with NAR. NAR was not involved in creating or producing the “Residential Lease Package” or other lease form, and does not recommend, support, or encourage use of those documents.

Consumers who have encountered this scam may file a complaint with the Internet Crime Complaint Center, sponsored by the Federal Bureau of Investigation and the National White Collar Crime Center.

“Our mission is not only to protect consumers in the real estate transaction, but also guard them against fraud,” McMillan said.

Gain Seen In Pending Home Sales, Housing Affordability Sets New Record

WASHINGTON, April 01, 2009

Pending home sales have edged up, hinting at a possible pickup of sales activity in coming months, according to the National Association of Realtors®.

The Pending Home Sales Index,1 a forward-looking indicator based on contracts signed in February, rose 2.1 percent to 82.1 from a reading of 80.4 in January, but is 1.4 percent below February 2008 when it was 83.3.

For Realtors®, Every Month is Fair Housing Month

WASHINGTON, April 01, 2009

Realtors®’ ongoing commitment to remove housing discrimination and advance fair housing laws takes on added meaning in April during Fair Housing Month. This year marks the 41st anniversary of the Fair Housing Act, which establishes a policy of fair housing for all Americans.

“Realtors® build and sustain communities, and equal opportunity in housing for all Americans is a big part of that,” said National Association of Realtors®

FHA Adopts Fannie Mae 1004MC Market Conditions Addendum

Effective April 1, 2009, the Federal Housing Administration will require appraisers to use the Market Conditions Addendum (Fannie Mae 1004MC, Freddie Mac Form 71). According to Mortgagee Letter 2009-09 released on March 23, 2009, this will ensure greater transparency and accuracy of appraisals performed for FHA-insured financing. Properties located in declining markets must include at least two comparable sales that closed within 90 days of the effective date of the appraisal. A lack of available market data must be accompanied by a detailed explanation.

FHA states that a declining market is any "neighborhood, market area, or region that demonstrates a decline in prices or deterioration in other market conditions as evidenced by an oversupply of existing inventory or extended marketing times." The 1004MC form will identify a declining trend in the market. FHA reminds Direct Endorsed lenders that both the lender and the appraiser are equally responsible for the integrity, accuracy, and thoroughness of an appraisal submitted to FHA.

Fannie Mae Announces Guidelines for Loan Limits in High Cost Areas

On March 30, 2009, Fannie Mae issued Announcement 09-08, implementing the 2009 conforming loan limits for high cost areas ("high-balance" loans above $417,000). The American Recovery and Reinvestment Act (ARRA) raised loan limits for high cost areas for 2009 to the higher of the permanent limits in effect for 2009 or the temporary limits in effect for 2008. In most cases the 2008 limits are higher. The guidelines apply to loans delivered to Fannie Mae starting May 1, 2009.

The Fannie Mae announcement specifies eligibility requirements for high-balance loans, including:

—Loan must be conventional, first-lien mortgages only.

—One to four unit properties are eligible.

—Loans must be fixed-rate or adjustable rate loans (no balloons).

—Loans must meet loan-to-value (LTV) and minimum credit score requirements. For one unit properties with a fixed rate mortgage, the maximum LTV is 90% and the minimum credit score is 700 for LTVs above 75% and 660 for LTVs at or below 75%. For one unit properties with an adjustable rate mortgage, the maximum LTV is 75% and the minimum credit score is 680. For second homes and investment properties, the maximum LTV is 65% and the minimum credit score is 740. Other rules apply to other categories.

Special Tax Break Available for New Car Purchases This Year

The IRS has released IR 2009-30 to remind taxpayers of a temporary tax incentive that will be available to them for the purchase of a new car, light truck, motor home or motorcycle during 2009. The deduction is available for the cost of all state and local sales and excise taxes paid on up to $49,500 of the purchase price. The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers. The vehicle must be purchased after Feb. 16, 2009, and before Jan. 1, 2010, to qualify for the deduction. The special deduction is available regardless of whether a taxpayer itemizes deductions on their return.

The IRS reminded taxpayers the deduction may not be taken on 2008 tax returns.

Illinois Route 53 Extension Referendum Results April 7, 2009 Unofficial Results

County of Lake - Advisory Question Of Public Policy
Concerning The Possible State Of Illinois Construction
Of The Extension Of Illinois Route 53 Through Lake County
(Vote For 1)
(WITH 481 OF 481 PRECINCTS COUNTED)
YES . . . . . . . . . . . . 63,645 75.72%
NO. . . . . . . . . . . . . 20,404 24.28%
Total . . . . . . . . . 84,049
Map prepared by the Lake County Division of Transportation
Preliminary election results provided by the Lake County Clerk's Office

First-Time Homebuyers Have Several Options to Maximize New Tax Credit

WASHINGTON — As part of the Treasury Department’s consumer outreach effort and with the April 15 individual tax filing deadline approaching, the Internal Revenue Service today began a concerted effort to educate taxpayers about additional options at their disposal to claim the new $8,000 first-time homebuyer credit for 2009 home purchases. For people who recently purchased a home or are considering buying in the next few months, there are several different ways that they can get this tax credit even if they’ve already filed their tax return.

The Treasury Department encourages taxpayers to explore these options to maximize their credit and get their money back as fast as possible.

Get the Facts: --Key Housing Provisions in the American Recovery and Reinvestment Act/First Time Home Buyer Tax Credit

CHICAGO'S CONDS SOLD IN 2008

CHICAGO'S MEDIAN SALES PRICE MAP CODE FOR 2008

Breaking Health Alert. FDA bans pistachio for Salmonella Risk

FDA. Do not eat pistachio products.

Nine Common Errors Made on Tax Returns.

Errors made on tax returns may delay the processing of your return and the arrival of your refund. Avoiding the common errors, click on the link above will help ensure your refund arrives on time.