The 2006 drafted act requires the use of a Federal program (SAVE) to administer public benefits using a verification system. However, not all Georgia agencies that administer public benefits use the system.
Currently, only Georgia public employers and their contractors "are required" to use the Federal E-Verify system (verification of legal immigration status). Georgia House Bill HB1259 (Georgia Employer and Worker Protection Act) proposed in 2010 requires all employers to use the Federal E-Verify system to obtain or renew a business license.
Why am I writing this in a real estate blog - simple!
Jobs for Americans and legal immigrants can help strengthen our country and our real estate markets.
Does your State Representative and Senator support both SB529 and HB1259?
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Wednesday, December 29, 2010
Sunday, December 26, 2010
Mega Bank News
This BLOG post will be updated on an ongoing basis to update you on news about large US banks and their behavior. My guess is ... some of it won't be good behavior!
3-10-2012: Bank of America agrees to cut down to market value and not just down to 120% LTV in Big Bank Settlement. Source: http://www.courant.com/business/hc-bank-of-america-mortgages-deal-20120309,0,5836235.story10-20-2011: Possible plan to settle 50 US States Attorney General lawsuit over foreclosure action of many US banks would allow people underwater (owing more than home is valued) and current on monthly payments to refinance to a lower rate for only those mortgages owned by banks (about 20% of mortgages (which means about 80% are tied up in mortgage backed securities). Source: http://www.mortgagenewsdaily.com/10182011_ag_servicer_settlement.asp
9-3-2011: Federal Housing Finance Agency (FHFA) "IS" (depending on Bill Clinton's definition of IS) suing 17 major US banks over Mortgage Meltdown...Source: http://online.wsj.com/article/SB10001424053111904583204576546940630966016.html?mod=djemalertNEWS
9-2-2011: Big banks are getting sued by Federal Government; over 1 million distressed/forecloed homes coming to a market near you soon; and Bank of America is receiving more attention.
Source: http://ftalphaville.ft.com/blog/2011/09/02/667926/us-government-attempts-bank-raid/
9-2-2011: Federal Reserve asks Bank of America for contingency plans - including bankruptcy? Source: http://www.bizjournals.com/sanjose/news/2011/09/02/fed-asks-bofa-for-contingency-plans.html
7-6-2011: It may not affect just Mega Banks, but the majority of mortgage are used/held by the Mega Banks. About 20% of mortgage portfolios at Mega Banks are delinquent. Source: http://online.wsj.com/article/SB10001424052702303763404576416090501569426.html?mod=googlenews_wsj
6-18-2011: HUD claims Bank of America (BOA) hindered investigations and didn't provide access to BOA personnel or data to investigators in a "timely manner". Source: http://agentgenius.com/real-estate-news-events/bank-of-america-stonewalling-mortgage-probe-says-hud/
3-15-2011: Bank of America plans to write down mortgages on applicable loans by US soldiers on active duty. WSJ, 3-11-2011, C1.
3-11-2011: Bank of America is thinking about closing about 6,000 banking locations due from electronic banking growing in popularity. Source: Bank of America may close some locations
3-8-2011: Just to summarize - J.P. Morgan Chase bought Washington Mutual Bank; Bank of America bought Countrywide Home Loans; and Wells Fargo bought Wachovia.
3-7-2011: Wells Fargo is now controlling about 25% of the mortgage loan market and B of A share has fallen to about 20%. (WSJ, 3/5-6/2011) (My personal thoughts - the mortgage market will probably continue to fall due to higher down payment requirements, fewer qualified applicants due to credit issues, and previous bank foreclosures of their real estate.)
3-7-2011: Bank of America is leaving the reverse mortgage market (probably to focus on more profitable loans since we are in a declining value market).(WSJ, 3/5-6, 2011, B15)
1-10-2011: Bank of America is expected to buy back only about $3 Billion of home loans (from Fannie Mae/Freddie Mac) due from their acquisition of Countrywide Mortgage, but some analysts expect private investor lawsuit settlements to range from $8-35 Billion ($6 Billion repurchase requests from private investors and insurers) ...Also, Ally Financial (part of GMAC that the Federal Government owns) agreed to pay Fannie Mae $462 million to cover purchase requests related to mortgages...The relative good news is that some estimates see total losses across the mortgage industry could be limited to $33 Billion. (WSJ, 1-4-2011, C10)
12-31-2010: Bank of America (B OF A) settled with (paying $108 million to) the SEC from charges that Countrywide (who B of A acquired) improperly charged mortgage customers; settled with (paying $150 million to) the SEC due from failing to properly disclose information regarding their acquisition of Merrill Lynch; and settled with (paying $137 million to) the SEC related to steering government municipal bond sales to specific bidding agents. (WSJ 12-8-2010, C8)
12-21-2010: Wells Fargo agreed to provide $2.4 billion in loan modifications to settle claims of a California lawsuit - $33 million to reduce or prevent foreclosures and $32 million in restitution of "pick a Pay" (adjustable rate) loans. Agreements between Wells Fargo and other states are in progress. (WSJ, 12-21-2010, C9)
12-16-2010: (WSJ 12-16-2010, C1) - Bank of America (BOA) is fighting allegations from 17 investors that 167 bond deals were improperly serviced and their subsequent requests to "buy back" those mortgages. Total claims of $12.8 Billion in repurchase of mortgages.
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11-16-2010: Bank of America has already paid $9 billion
11-6: J.P. Morgan Chase plans to proceed with foreclosure filings. It's been reported that Chase has been asked to repurchase $2.92 billion of loans in 2010 and $3 billion in 2009 out of a total requested $8-9 billion in each of these two years. (WSJ)...JPM has also said they converted 29% of the temporary loan modifications into permanent modifications (WSJ 11-6/7-2010).
10-27-2010: Bank of America will focus more on retail mortgages directly to customers (22% of market last year) is exiting wholesaling of mortgage loans - might result in loss of 1,000 jobs. May mean Wells Fargo becomes biggest wholesaler and can pick up the slack..maybe. JP Morgan Chase doesn't plan to purchase loans from mortgage brokers.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Thursday, December 23, 2010
Credit Default Swaps? - Oh boy, here we go again!
Credit Default Swaps (CDS's) (i.e., quasi Insurance Contract) require seller of the CDS's to pay the buyers of them some sort of compensation if the municipality misses an interest payment or restructures the debt...That's a nice way of saying, someone's betting that a municipality is and then isn't going to default...(Almost Harrisburg, PA??)
California is about to require disclosure of all their CDS transactions from several large banks so others can see their exposure and risk.
The total muni CDS market is estimated to be about $50 billion.
Losses are more prone on development bonds and other non traditional debt.
Note: I feel a big pain in my butt developing, but I just can't put a finger on who to call to help ease my pain!
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
California is about to require disclosure of all their CDS transactions from several large banks so others can see their exposure and risk.
The total muni CDS market is estimated to be about $50 billion.
Losses are more prone on development bonds and other non traditional debt.
Note: I feel a big pain in my butt developing, but I just can't put a finger on who to call to help ease my pain!
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Tuesday, December 21, 2010
Build America Bonds (BABs) - Another scheme for more debt
These are federally subsidized bonds for local municipalities to raise money for light rail projects, sports or convention centers, or sometimes hotels...all money losers.
About $174 billion has been issued under the program...California issued about $30 billion. The Federal Government already subsidizes $450 billion in municipal bonds through income tax deductions...Wall Street firms have pocketed about $1 billion in fees.
Municipalities hold about $2.8 trillion of outstanding debt and $3 trillion in unfunded pension and health care liabilities.
Why am I writing about this?
First, municipalities going into debt is terrible - but going into debt to build projects that lose money is criminal.
Second, when will we learn not to go into debt beyond our means?
Third, who is watching this massive debt?
Our economy is more fragile than some would admit and we must not toy with massive long term debt.
Source: WSJ, 12-8-2010, A22
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
About $174 billion has been issued under the program...California issued about $30 billion. The Federal Government already subsidizes $450 billion in municipal bonds through income tax deductions...Wall Street firms have pocketed about $1 billion in fees.
Municipalities hold about $2.8 trillion of outstanding debt and $3 trillion in unfunded pension and health care liabilities.
Why am I writing about this?
First, municipalities going into debt is terrible - but going into debt to build projects that lose money is criminal.
Second, when will we learn not to go into debt beyond our means?
Third, who is watching this massive debt?
Our economy is more fragile than some would admit and we must not toy with massive long term debt.
Source: WSJ, 12-8-2010, A22
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Saturday, December 18, 2010
What's the fate of Mortgage Interest as an Itemized Deduction?
There is discussion in US Congress that the tax deduction for mortgage interest may be eliminated.
Some proposals set a threshold of a certain maximum mortgage amount above which no deductions will be allowed, but also set a declining percentage of the total mortgage interest that is deductible, eventually running to zero, or non of the mortgage interest will be deductible.
The President's Debt Reduction Panel suggested a lifetime cap of 12% of the mortgage on a primary residential property up to $500,000 balance.
No word on whether the second home mortgage interest deduction will change or be eliminated, but don't count on it to remain as it is.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Some proposals set a threshold of a certain maximum mortgage amount above which no deductions will be allowed, but also set a declining percentage of the total mortgage interest that is deductible, eventually running to zero, or non of the mortgage interest will be deductible.
The President's Debt Reduction Panel suggested a lifetime cap of 12% of the mortgage on a primary residential property up to $500,000 balance.
No word on whether the second home mortgage interest deduction will change or be eliminated, but don't count on it to remain as it is.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Wednesday, December 15, 2010
Zillow reports $9 Trillion loss in real estate values since 2006...and it ain't over yet
More sliding of values are expected in 2011...
However, I have been hearing that the bottom would hit around Summer 2011, but I have been hearing that about every past summer for 2 years....So in other words, NOBODY knows!
Source: http://www.thebradentontimes.com/news/2010/12/11/business_and_financial/zillow_puts_total_real_estate_losses_at_9_trillion_bleak_2011_forecast_for_florida_market/
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
However, I have been hearing that the bottom would hit around Summer 2011, but I have been hearing that about every past summer for 2 years....So in other words, NOBODY knows!
Source: http://www.thebradentontimes.com/news/2010/12/11/business_and_financial/zillow_puts_total_real_estate_losses_at_9_trillion_bleak_2011_forecast_for_florida_market/
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Tuesday, December 14, 2010
When can you rent a home before buying another
According to a mortgage broker on Trulia.com, you may only convert an existing home to a rental home if you have at least 30% equity. If you do have 30% equity you will need to provide a fully executed lease and the existing mortgage payment will count toward your debt-to-income ratio - unless you are paying cash for your next purchase.
Anyone have experience.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Anyone have experience.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Monday, December 13, 2010
Some States Plan to Raise Payroll Taxes in 2011
What do you get when your state is fiscally irresponsible? You pay more for their bad decisions.
Apparently, 31 states are planning to borrow almost $50 billion from the Federal government to pay for unemployment insurance benefits. To pay for this, they plan to increase state and federal payroll taxes. This increase in payroll taxes will tend to reduce future employment plans and may result in more layoffs.
41 states already increased their 2010 payroll taxes by about 34%.
In 2008-09 states collected about $30 billion and paid out about $80 billion in benefits.
I like the statement in the article that eludes to Washington DC charging employers in states that aren't repaying the Federal loans - as if the employers-employees had anything to do with causing the problem or the state's spending.
Bottom line: This will be an additional burden on states and businesses trying to come out of a recession.
Source: WSJ - 11-20/21-2010, A5
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Apparently, 31 states are planning to borrow almost $50 billion from the Federal government to pay for unemployment insurance benefits. To pay for this, they plan to increase state and federal payroll taxes. This increase in payroll taxes will tend to reduce future employment plans and may result in more layoffs.
41 states already increased their 2010 payroll taxes by about 34%.
In 2008-09 states collected about $30 billion and paid out about $80 billion in benefits.
I like the statement in the article that eludes to Washington DC charging employers in states that aren't repaying the Federal loans - as if the employers-employees had anything to do with causing the problem or the state's spending.
Bottom line: This will be an additional burden on states and businesses trying to come out of a recession.
Source: WSJ - 11-20/21-2010, A5
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Friday, December 10, 2010
Second home mortgage lenders - another fly in the ointment
More than 1/3 of all loans in the foreclosure process now have other junior liens (2nd mortgages).
Some lenders of 2nd mortgages are slow to cut deal because the loans are often current. But when they do cut deals, they ask the borrower to agree to pay it back later - which still make the debt repayable.
Note: Isn't it peculiar that many of the first lienholders agree to forgive debt and the debt is not considered income (at least not until 2013 or thereabouts) for Federal Income Tax purposes, yet 2nd lienholders (with alot smaller balances) are trying to ensure they get paid back on a debt that was pretty risky to begin with?
Over 40% of the $1 trillion in outstanding 2nd mortgages are held by the nation's largest 4 banks: Bank of America; Wells Fargo; J.P. Morgan Chase, and Citigroup.
Note: I was disappointed that the author didn't explore or expose more to the 2nd mortgages than meets the eye - For instance, some 2nd lienholders may be holding out or more in private mortgage insurance payoff than what they would get as a payoff - but that's just a guess....;)
Souce: WSJ, 11-27/28-2010, Page A5
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Some lenders of 2nd mortgages are slow to cut deal because the loans are often current. But when they do cut deals, they ask the borrower to agree to pay it back later - which still make the debt repayable.
Note: Isn't it peculiar that many of the first lienholders agree to forgive debt and the debt is not considered income (at least not until 2013 or thereabouts) for Federal Income Tax purposes, yet 2nd lienholders (with alot smaller balances) are trying to ensure they get paid back on a debt that was pretty risky to begin with?
Over 40% of the $1 trillion in outstanding 2nd mortgages are held by the nation's largest 4 banks: Bank of America; Wells Fargo; J.P. Morgan Chase, and Citigroup.
Note: I was disappointed that the author didn't explore or expose more to the 2nd mortgages than meets the eye - For instance, some 2nd lienholders may be holding out or more in private mortgage insurance payoff than what they would get as a payoff - but that's just a guess....;)
Souce: WSJ, 11-27/28-2010, Page A5
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Wednesday, December 8, 2010
Major Real Estate Company in Atlanta charged with discrimination
The US Justice Department has settled with the parties involved who agreed to pay damages and civil penalties amounting to $60,000 for allegedly discriminating against families with children.
Unfortunately, a property was advertised as having a " no-child policy" here in Atlanta where the community wasn't an over 55+ community. The local community itself is under investigation whether they have exercised policies that discriminated against families with children living or looking to purchase in the community.
This is a no-no UNLESS the community is specifically approved and designated for homeowner's over 55 years of age.
Source: MDJ, 11-11-2010, Page 2B.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Unfortunately, a property was advertised as having a " no-child policy" here in Atlanta where the community wasn't an over 55+ community. The local community itself is under investigation whether they have exercised policies that discriminated against families with children living or looking to purchase in the community.
This is a no-no UNLESS the community is specifically approved and designated for homeowner's over 55 years of age.
Source: MDJ, 11-11-2010, Page 2B.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Monday, December 6, 2010
General Service Administration (GSA) finds it harder to sell US Real Estate
The Republican members of the Transportation and Infrastructure Committee recently released a report titled "Sitting on Our Assets: The Federal Government's Misuse of Taxpayer-Owned Assets".
Apparently the report has said the GSA doesn't dispose of property in a timely manner and fails to act as a prudent property owner. Even Barack Obama directed federal agencies to accelerate the elimination of unneeded properties back in June 2010.
In all fairness, some of the properties include lighthouses and other odd properties and financing of unusual properties has dried up - so it might not be entirely fair to criticize the GSA since it's an easy target.
Source: WSJ, November 17, 2010, Page C12
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Apparently the report has said the GSA doesn't dispose of property in a timely manner and fails to act as a prudent property owner. Even Barack Obama directed federal agencies to accelerate the elimination of unneeded properties back in June 2010.
In all fairness, some of the properties include lighthouses and other odd properties and financing of unusual properties has dried up - so it might not be entirely fair to criticize the GSA since it's an easy target.
Source: WSJ, November 17, 2010, Page C12
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Thursday, December 2, 2010
HUD has a 90 day moratorium on Foreclosures in some states
Basically, as a result of the several state investigations of foreclosure activity, some states have requested the moratorium of all foreclosures including HUD (i.e., FHA mortgages). I am sure some similar moratorium provisions are effective on VA loan foreclosures (which are a very few) and quite probably, Fannie Mae and Freddie Mac foreclosures.
Official word from HUD was...
"The Department (HUD) has been advised that due to a recent change in State Laws or State mandated moratoriums, some foreclosures had to be cancelled or stopped and rescheduled to complete all of the new legislative requirements... A ninety (90) day extension to commence foreclosure is provided to those mortgagees where the initial legal action to commence foreclosure has been cancelled to comply with a new State legislation....This extension is provided under the authority of 24 CFR 203.355." And the "extension" means it's "tacked onto" the existing moratorium laws in the appropriate state.
Here is a link to some answers to questions: http://www.hud.gov/offices/hsg/sfh/nsc/faqextns.cfm
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Official word from HUD was...
"The Department (HUD) has been advised that due to a recent change in State Laws or State mandated moratoriums, some foreclosures had to be cancelled or stopped and rescheduled to complete all of the new legislative requirements... A ninety (90) day extension to commence foreclosure is provided to those mortgagees where the initial legal action to commence foreclosure has been cancelled to comply with a new State legislation....This extension is provided under the authority of 24 CFR 203.355." And the "extension" means it's "tacked onto" the existing moratorium laws in the appropriate state.
Here is a link to some answers to questions: http://www.hud.gov/offices/hsg/sfh/nsc/faqextns.cfm
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
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