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VOTE YES ON 1

December 18th, 2007 2:44 PM

Dec. 14

VOTE YES ON 1

At a press conference this morning, Gov. Charlie Crist kicked off “Yes on 1 – Save Our Homes NOW,” a campaign to pass the property tax amendment in January. “Passage of this amendment will go a long way to firing up the Florida economy and the real estate market that we all depend on,” Crist said in Orlando to a crowd of about 200 people. Following the governor’s talk, a number of Realtors who attended the conference voiced their agreement.

Will keep you posted on this one.

Posted by Vilma Lacorte, GRI on December 18th, 2007 2:44 PMPost a Comment (0)

Mortgage Forgiveness Act Signed into Law

December 27th, 2007 12:11 PM

Mortgage Forgiveness Act Signed into Law

Dec. 26, 2007

Yesterday, President Bush signed H.R. 3648, The Mortgage Forgiveness Act of 2007, into law, sparing homeowners the tax burden associated with canceled mortgage debt.

Prior to this action, forgiven mortgage debt due to foreclosure, short sale, or deed in lieu of foreclosure, was considered taxable income. The new law, however, temporarily waives these taxes for debts forgiven (as high as 35%) from the beginning of 2007 to the end of 2009. The bill also extends the tax deduction for mortgage insurance premiums through 2014.

"This is going to make a happy holiday for many homeowners," President Bush said yesterday before signing the bill in to law. During the press conference he added the following:

"When you're worried about making your payments, higher taxes are the last thing you need to worry about. So this bill will create a three-year window for homeowners to refinance their mortgage and pay no taxes on any debt forgiveness that they receive. And it's a really good piece of legislation. The provision will increase the incentive for borrowers and lenders to work together to refinance loans – and it will allow American families to secure lower mortgage payments without facing higher taxes."

"There's more work to be done," Bush added, saying that Congress needs to pass legislation to strengthen Freddie Mac and Fannie Mae, to modernize FHA, and to allow the government to issue tax-exempt bonds for refinancing existing home loans.

Posted by Vilma Lacorte, GRI on December 27th, 2007 12:11 PMPost a Comment (0)

PEACEFUL HOLIDAYS

December 26th, 2007 10:43 AM

I wish you all a wonderful and peaceful Christmas now and throughout the coming year!

Posted by Vilma Lacorte, GRI on December 26th, 2007 10:43 AMPost a Comment (0)

FLORIDA REALTORS SUPPORT 'YES ON 1'

December 21st, 2007 9:37 AM

TALLAHASSEE, Fla. – Dec. 20, 2007 – With the possibility of a tax break for businesses, some of Florida’s top real estate brokers and members of the Florida Association of Realtors (FAR) joined Gov. Charlie Crist in Tallahassee yesterday afternoon as a show of support for the property tax relief constitutional amendment voters will consider during the state’s primary election on January 29.

Among other things, Amendment 1 — the only amendment on the ballot — calls for a $25,000 tangible personal property exemption for small businesses on items such as business equipment and other tax breaks for property owners.

“The ripple effect [following passage of this amendment] of getting relief to those who have been locked in their homes will be huge and will be felt throughout the real estate industry,” said Juan Baixeras, a broker with Florida Realty of Miami.

FAR is one of several business groups that support Amendment 1. Others include the Florida Chamber of Commerce, Associated Industries of Florida, Florida Power & Light, Florida Retail Federation, The Florida Outdoor Advertising Association and the Florida Medical Association.

“I applaud Realtors for lending support to such an important issue like property tax cuts,” said Gov. Crist. “Amendment 1 will bring about much needed relief to Florida’s homeowners and will enable them to have more flexibility in purchasing a new home.”

2007 FAR President Nancy Riley helped organize the meeting between the governor and many of the state’s largest real estate brokers. At the meeting, Crist outlined how Amendment 1 would benefit Floridians, including those who want to move into a different or new home, seniors seeking to downsize and business owners facing rising property values.

“This amendment is a great start,” said Clark W. Toole, a broker with Coldwell Banker Residential. “We all want more and I know the Realtor association and governor are working hard toward additional relief.”

The brokers, who work with thousands of Realtors across the state, said they remain committed to providing grassroots support to assist in educating as many Floridians as possible about why Amendment 1 should be approved.

“With more than 150,000 members, the Florida Association of Realtors is the largest trade association in the state and we will harness all of our resources to help pass Amendment 1,” said FAR President Nancy Riley. “Floridians have been burdened long enough and a yes vote for Amendment 1 is a yes vote for Florida’s future.”

For more information about Amendment 1, go to: www.Yeson1Florida.com.

© 2007 FLORIDA ASSOCIATION OF REALTORS

Posted by Vilma Lacorte, GRI on December 21st, 2007 9:37 AMPost a Comment (0)

IS EVERYBODY HAPPY?

December 18th, 2007 2:50 PM

Despite turmoil in the mortgage market in 2007, borrowers’ overall satisfaction with the mortgage lending industry has remained steady since 2006, says J.D. Power and Associates’ 2007 Primary Mortgage Origination Study. The study measures customer satisfaction with application approval, interaction with loan representatives, closing and problem resolution. “While it’s true that borrowers with weaker credit and those seeking larger ‘jumbo’ loans experience longer approval times and requests for more documentation, satisfaction has remained steady among the 75 percent of mainstream borrowers with good credit applying for moderately sized loans,” says Tim Ryan, senior director of the mortgage practice at J.D. Power. The study concluded that consumers were more satisfied when they worked directly with the lender rather than through a broker. It also found that customers who demand clear communication from their lender are more likely to get it. And customers who supply required documentation upon application have a smoother loan process. The overall mortgage lender satisfaction ranking was based on a 1,000-point scale:

Wachovia, 827
SunTrust Mortgage, 818
Bank of America, 760
National City Mortgage, 759
CitiMortgage/Citibank, 753
Chase, 752
Industry Average, 750
Wells Fargo, 749
Countrywide Home Loans, 745
GMAC Mortgage, 744
ABN AMRO Mortgage, 740
American Home Mortgage Corp., 736
WaMu, 733
First Franklin, 595

Source: J.D. Power and Associates (12/12/2007)
© Copyright 2007 INFORMATION, INC. Bethesda, MD (301) 215-4688

Posted by Vilma Lacorte, GRI on December 18th, 2007 2:50 PMPost a Comment (0)

FED EXPECTED TO CUT INTEREST RATES AGAIN

December 12th, 2007 10:15 AM

WASHINGTON – Dec. 11, 2007 – Faced with a spreading mortgage crisis, the Federal Reserve is expected to cut interest rates today for a third straight time and hint that even more rate cuts could be forthcoming.

That is the view of private economists, who believe that Fed Chairman Ben Bernanke clearly signaled this outcome in a speech last month in which he said that the latest bout of financial market turbulence raised greater risks for the economy.

Most economists are expecting a quarter-point cut in the federal funds rate at Tuesday’s meeting, which will be the Fed’s last rate-setting discussion this year. That would push the federal funds rate down 4.25 percent and send banks’ prime lending rate, the benchmark for millions of consumer and business loans, down to 7.25 percent, the lowest level in two years.

The Fed started cutting rates in September with a bolder-than-expected half-point move and then reduced the funds rate by a quarter-point at its Oct. 31 meeting. The central bank was trying to make sure that a severe slump in housing, spreading mortgage defaults and financial market turbulence that hit with force in August did not derail the economy.

In its October announcement, the Fed indicated that its two rate cuts might well be all that would be needed to make sure the country was not pushed into a recession.

But that view has undergone a dramatic about-face in the six weeks since that time, reflecting worsening conditions in financial markets and continued sharp declines in housing as lenders tighten standards in response to rising mortgage defaults.

Many analysts believe the current quarter and the early part of next year will represent the period of maximum danger for a possible recession.

“I think a full-blown recession can be avoided but just barely,” said David Jones, chief economist at DMJ Advisors. He predicted that the Fed would follow up its expected December rate cut with three more reductions at its first three meetings of 2008.

For all of 2008, a forecasting panel of the Securities Industry and Financial Market Markets Association said Monday it believed overall economic growth, as measured by the gross domestic product, would come in at an anemic 2.1 percent as housing construction and sales continue to fall for most of the year. That would be the weakest GDP growth in six years.

Posted by Vilma Lacorte, GRI on December 12th, 2007 10:15 AMPost a Comment (0)