Mortgage rules put recovery at risk

A plan to jump-start housing
By Jack Guttentag
Inman News™

This Editor's note: This is the first in a three-part series.

Policy proposals for dealing with our current depressed economy are largely at an impasse. Monetary policy has gone about as far as it can go, while fiscal policy is hamstrung by political constraints on any measures that enlarge the federal debt.

Housing policy, in contrast, has enormous expansionary potential that can be released merely by revising or eliminating some of the many unproductive rules governing how home loans are granted.
These rules originate from Fannie Mae, Freddie Mac and in some cases from the Federal Housing Administration (FHA). In combination, these agencies touch the vast majority of all home loans being written today.

Most of the rules apply to who is and who isn't qualified to borrow and, for those who are, how much extra they have to pay for deviations from pristine status. The liberalized rule changes would reduce expected losses to the agencies because the additional housing demand that resulted from them would stabilize home prices.

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International buyers "gobbling up" U.S. real estate

The Real Estate Roundabout
By Mary Umberger
Inman News™


International buyers of residential properties are an increasing presence in U.S. markets, according to numerous reports.

They're a big driver in a slightly revived luxury market across the country, according to Barron's. Although Russians, Indians and Europeans continue to have a strong presence, Chinese and Brazilians are the newest on the scene, it said. Wealthy Chinese investors are looking for a place to put their money, while the Brazilians are enjoying a surge in the exchange rate and are here looking for "mega-homes," according to the report, which quoted one executive at Halstead Properties in New York: "They're gobbling up New York, Miami and Nevada."

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Jennifer Lopez takes on real estate agent role

The Real Estate Roundabout
By Mary Umberger
Inman News™

This J.Lo takes on role as real estate agent

Picturing Jennifer Lopez as a real estate agent is admittedly a bit of a stretch. But as a "matronly" one? Apparently so, according to several celebrity websites commenting on her character's costume (some used the word "frumpy") during the recent filming of "Parker," a thriller in which "J.Lo" portrays a real estate agent who partners with a thief who steals from the wealthy. Photos of the actress on the set show her clad in what to most mere mortals would appear to be simple business attire -- a long-sleeved, tailored blouse and A-line skirt.
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Better credit score doesn't guarantee cheaper loan

By Jack Guttentag
Inman News™



One of the unusual features of the U.S. mortgage market is that borrowers are obliged to select a lender before they know the price. They have a price quote from the lender they select, and the quote may be instrumental in their selection decision, but the price is preliminary. It is not final until it is locked by the lender.
Before the crisis, it was common to lock on the spot, which meant locking the quoted price. Today, that is the exception, reflecting tighter underwriting requirements and the increased risk to lenders of closing a loan that does not conform exactly to the rules. Locks are usually delayed for some days, sometimes for weeks.

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Financial Incentives for Solar Electric Systems: Federal Tax Credits, Utility Rebates and More

By Dan Chiras
July 2011 Web

 Solar electric systems are a great source of clean, reliable electricity. Solar electricity can be stored in battery banks for use at night or on cloudy days. Or it can be “stored” on the electrical grid. Remember, even though initial costs may be high — from $5,000 to $40,000 or more, depending on the size and the type of system — the fuel (sunlight) is free, abundant, and clean, and it’s not under the control of some powerful multinational corporation. Financial incentives discussed (see below) and good net metering laws help make this venture more cost-effective, too.

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Builders of Hope: Rescued Homes Build Solid Communities

By Wanda Urbanska
January/February 2010
 
Americans demolish some 250,000 homes annually, according to the Environmental Protection Agency, and many of them are more solidly built than the new structures that replace them. Though in recent years developers have increased efforts to salvage reusable items such as bathtubs, light fixtures and mantels, mountains of demolition debris still clog our nation’s landfills.
 
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Salvaged Homes: Renovating Old Buildings into Unique Houses in Reno, Nevada - Green Homes

By Jessica Kellner
September/October 2011
 
In Reno, Nevada, HabeRae Homes is the brainchild of Kelly Rae and Pam Haberman, two home renovators and landlords who became fascinated with the idea of living better with fewer resources when they built a rural getaway home for themselves. “The impetus for building small and sustainable came to us when we bought a remote lot,” Rae says. “The builder who built our little cabin—we were living in New Mexico at the time, near Mammoth—said, ‘You have to go off the grid.’ I said, ‘What is that?’ This was in 1994.” Their builder, Don Berenati of Sweetwater Building, was experienced in off-the-grid, sustainable living, and he explained how the couple’s home could generate its own resources. “He said, ‘You can power it with solar panels; it works! And there’s a spring we can tap into with a line that goes to the cistern.’ So I said, ‘OK, I have to see that,’” Rae says.
 
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