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Is It Worth Living in South Florida?
2008-03-15 16:13:00
There is plenty of bad things to say about Florida these days, but there are also good things as well.  After all, Florida leads the nation, or at least ranks high, on a wide variety of lists. In recent news, there has been plenty of bad news for Floridians, particularly those in South Florida.  We were ...
More About: Living , Real Estate Investing , Worth

I have a Confession to Make
2008-03-14 16:01:00
With Eliot Spitzer being busted for leading a prostitution ring, leading to tons and tons of flak and talk of his hypocrisy, I felt I better come clean. In looking at the long tail of searches that people found the Florida Mortgage Report from a while back, “Florida Mortgage Sex” was one of the ways people ...
More About: Confession , Make

Does the CPI Need a Reality Check?
2008-03-14 14:37:00
This morning’s CPI (Consumer Price Index) data, one gauge on inflation, came in much lower than expectations which surprised the heck out of everyone, probably even those making the report.  But is reality different than what the numbers present? That’s a good question, and one that may not be answered in “data” for a while, but ...
More About: Reality , Check

Paulson’s Planned Policy Protects Future Problems
2008-03-13 14:34:00
Treasury Secretary Henry Paulson is planning to unveil the broadest blueprint to avoid the reoccurrence of the credit crunch.  The recommendations cover just about everyone involved in the mortgage process, from mortgage brokers to loan packagers to credit rating firms to regulators. “We aren’t singling out any group of market participants, because…there were mistakes made by all,” including regulators, Treasury Secretary Henry Paulson said in an interview yesterday, a day in which the stock market’s euphoria over the Federal Reserve’s latest initiative to free up the flow of credit gave way to some caution.  “Regulation needs to catch up with innovation and help restore investor confidence,” Mr. Paulson is planning to say today in a speech at the National Press Club, “but not go so far as to create new problems, make our markets less efficient or cut off credit to those who need it.”  (Source Wall Street Jo...
More About: Future , Policy , Problems

Don’t Lend to Gisele Bundchen, or Any Other Supermodel
2008-03-12 18:22:00
There is an interesting study presented by Enrichetta Ravina that studied an online lending market in which 7,321 borrowers posted 11,957 loan requests that included verifiable financial information, photos, an offered interest rate, and related context.  The study examined the interest rates and default rates based on appearances of the borrowers. Borrowers whose appearance is rated above average are 1.41 percentage points more likely to get a loan and, given a loan, pay 81 basis points less than an average-looking borrower with the same credentials. Black borrowers pay between 139 and 146 basis points more than otherwise similar White borrowers. However, in my sample such personal characteristics are not, all else equal, significantly related to subsequent delinquency rates - with the exception of beauty, which is associated with substantially higher delinquency rates. It certainly aids the argument that black borrowers are discriminated against.  It then raises the arg...
More About: Gisele Bundchen , Gisele , Supermodel , Lend

401k Withdrawal or Foreclosure: Which is Better?
2008-03-12 14:31:00
Many Americans are finding themselves facing potential foreclosure and lack any reasonable means to tap into money besides their 401k funds.  That presents a major dilemma, not just for current finances, but for the long-term financial picture as well.  Rather than debate whether or not these homeowners should have even been in the house in the first place, let’s just look at the choices they have remaining, neither of which are good. On the one hand, they can just stop making those mortgage payments and set whatever money aside in preparation for the inevitable foreclosure.  Believe it or not, this may make more sense than their other option.  While foreclosure is not a good outcome, their finances may not be totally destroyed in the process.  They may even keep enough liquidity in their control so they can survive in the longer term.  In many states, such as Florida, foreclosures take a long time and if the homeowner is able to live mortgage fr...
More About: Foreclosure , Withdrawal

Fed TAF Adds TSLF (Term Securities Lending Facility) for Further Bailouts
2008-03-12 00:07:00
The Fed’s Term Auction Facility, or TAF, has not done enough to bail banks out, so now they are adding a new bailout vehicle, the Term Securities Lending Facility, or TSLF.  With this new vehicle, the Fed can now dump another $200B into the banking system with the only requirement being securities that don’t amount ...

Banks Enjoy "Liquidity" Infusion by Fed, Refuse to Lend
2008-03-11 03:19:00
The Fed has been dumping money into the banking system through its TAF (Term Auction Facility) in an effort to spur more lending and ease the liquidity crisis.  Banks , however, are sucking up the cash and keeping it to themselves. Banks have already borrowed a total of $160 billion since the Fed started holding these auctions ...
More About: Enjoy , Infusion , Lend

Florida is in a Recession, But Not the Entire State
2008-03-11 02:55:00
There was an interesting take on individual states’ economies being in recession versus growth in the USA Today.  Florida was one of the states indicating being in a recession, but when you move over the state on the interactive chart, you can see that there are some parts of the state that are experiencing expansion ...
More About: Entire , State , Recession

Zillow Mortgage and the Zoriginator
2008-03-10 17:38:00
I am sure all of you have heard of Zillow by now and their Zestimate of what your home’s value is.  Now, they are entering into the mortgage arena and offering loan originators the opportunity to get “leads” from Zillow for $25 and Zillow runs a background check on the originator.  The question to be ...
More About: Mortgage

Is the Fed?s Term Auction Facility (TAF) Really an Equity Building Program
2008-03-09 00:47:00
The blogosphere is ripe with rumors and discussions of what the Fed’s TAF is really doing, or rather what it is, a bailout program in disguise.  Many varied thoughts and analysis can lead one to some very interesting conclusions. Steve Waldman’s theory is that the Fed’s TAF is basically designed to provide liquidity to banks until ...
More About: Building , Auction , Program , Term , Equity

My Crystal Ball Did Show the Future
2008-03-08 22:59:00
In my post back on December 28, I succumbed to the whims of a few whom wanted to know my outlook on 2008 and what predictions I had for the new year.  Well, several of those predictions have already come and gone. Here are the predictions that came true already… The dollar will see a rally before ...
More About: Future , Show , The Future , Crystal , Ball

Humorous Post of the Day?
2008-03-08 22:42:00
This post would probably be quite laughable if it weren’t true.  Treasury Secretary Paulson continues to talk about a strong dollar policy and its benefits, even while the dollar is breaking through to new lows.  Does he really think that his talking about a strong dollar will create a strong dollar?  “The strong dollar is ...
More About: Post , Humorous

Countrywide Under FBI Investigation
2008-03-08 22:26:00
As if Countrywide , and his leader weren’t in the spotlight enough for their troubles, the FBI is apparently investigating Countrywide for fraudulent lending practices and financial reporting.  The mortgage company is suspected of widespread fraud, which may have contributed to the subprime mortgage crisis that has rocked the U.S. economy. The investigation will examine underwriting and ...
More About: Investigation

A Lot of Things Happening?
2008-03-08 02:40:00
You may have noticed I have been quiet today, despite all the information I could be writing about.  There is a reason, actually a few. One, I am reviewing business taxes as they need to be filed by the 15th of March and I have 2 businesses I am already running (actually 3).  I am also ...
More About: Things

Did You Lose a Lot of Money On Your Mortgage Today?
2008-03-07 00:23:00
You have probably already heard my warnings on ensuring you are  dealing with a mortgage professional and not a mortgage idiot.  Can’t tell the difference?  Let me give you a clue. Mortgage idiots, despite knowing better (or not) focus on today’s headlines, last week’s data, yesterday’s data, and even the 10-year Treasury Note.  They have no ...
More About: Money , Today

Foreclosures Set New Records While Net Worth Drops
2008-03-06 20:44:00
News crossing the airwaves, or just cyberspace, talk about foreclosures reaching new heights as the net worth of America ns dropped for the first time since 2002.  With the stock market and real estate values plummeting, Americans are not worth as much at the end of 2007 as they were at the end of the third ...
More About: Foreclosures , Real Estate Investing , Net worth , Worth

My Dollar is Worth What?
2008-03-06 19:42:00
Just when you thought that the little piece of paper couldn’t lose any more value, it drops to new lows.  While it’s value continues to go down the toilet, it’s saving grace is it is too rough to wipe your butt with it. Yesterday saw the dollar devalued even more, setting new lows against the euro ...
More About: Dollar , Worth

FHA Limits for Florida Counties (March 5, 2008)
2008-03-06 17:40:00
Below is a breakdown of the new FHA Forward limits for every county in Florida as part of the foreclosure prevention/homeowner bailout program.  Green represents less than $300K, Blue is $300-400K, Orange is $400-500K and red is greater than $500K.  See the table for more specifics. County SFR Duplex Tri-Plex Quad ALACHUA $271,050 $347,000 $419,400 $521,250 BAKER 387,500 496,050 599,600 745,200 BAY 396,250 507,250 613,150 762,000 BRADFORD 271,050 347,000 419,400 521,250 BREVARD 291,250 372,850 450,700 560,100 BROWARD 423,750 542,450 655,700 814,900 CALHOUN 271,050 347,000 419,400 521,250 CHARLOTTE 296,250 379,250 458,400 569,700 CITRUS 271,050 347,000 419,400 521,250 CLAY 387,500 496,050 599,600 745,200 COLLIER 531,250 680,100 822,050 1,021,650 COLUMBIA 271,050 347,000 419,400 521,250 DE SOTO 271,050 347,000 419,400 521,250 DIXIE 271,050 347,000 419,400 521,250 DUVAL 387,500 496,050 599,600 745,200 ESCAMBIA 271,050 347,000 419,400 521,2...
More About: Limits , March , 2008

Florida Homeowners Foreclosure-Proof?
2008-03-05 20:19:00
There is an interesting dilemma occurring in South Florida , namely Miami-Dade and Broward Counties, and that is that it takes a long time to foreclose on properties, all the while the homeowner gets a “free ride”.  This includes multi-million dollar beachfront properties that could have a homeowner “squatting” in for as much as two years ...
More About: Foreclosure , Proof , Homeowners

Fools? Headlines Again
2008-03-05 18:43:00
If you have been paying attention to the news online, on blogs, almost everywhere, you would be thinking that mortgage applications are up because rates are falling.  Do these people follow current events? That news is old news, last week’s data.  Reality is quite a bit different.  In fact, since the beginning of the week, mortgage ...
More About: Real Estate Investing , Headlines

If the Fed Can?t Figure it Out?
2008-03-05 04:46:00
Sometimes you just have to wonder if anyone knows what is going on.  Case in point is the Fed heads blabbing away, with some concerned about inflation and others saying inflation isn’t the issue, recession is.  Any wonder why the markets are all headed lower and the dollar keeps going down the toilet? Yesterday, Bernanke was ...
More About: Figure

Bernanke Wants to Bailout Lenders at Taxpayer Expense
2008-03-05 04:34:00
Bernanke’s speech today at the Independent Community Bankers of America Annual Convention, Orlando, Florida discussed the same failed ideas about helping “homeowners”, but he did add a new one.  Over the past year and a half, mortgage delinquencies have increased sharply, especially among riskier loans.  This development has triggered a substantial and broad-based reassessment of ...
More About: Bernanke , Lenders , Bailout

Can Adding Debt Actually Help You Become Debt Free?
2008-03-04 01:52:00
Could there be a better way to achieve financial freedom?  Could adding debt be the best thing to assist those trying to obtain financial freedom?  Well, there are times that I recommend adding debt to your balance sheet in order to obtain that freedom. Many of my clients find that utilizing their mortgage as a ...
More About: America , Real Estate Investing , Free , Debt

Big Bank Owned Property Auction in South Florida
2008-03-02 04:05:00
In case you haven’t already heard about it, Kennedy Wilson is having a huge auction of bank-owned properties (REO).  You can find more information about the properties at www.flapropertyauction.com.  There are around 100 properties throughout Miami-Dade, Broward and Palm Beach counties, many appear to be in reasonable shape, though some definitely require some work. Prices on ...
More About: Real Estate Investing , Property , Auction , Florida , South