Seadragon – Microsoft iPhone App

Microsoft Seadragon iPhone App

Microsoft Seadragon iPhone App

“Seadragon Mobile comes with around 50 sample images that users can play with and Photosynth users will also be able to browse their synths, in 2D at least.”

See more at The Boy Genius…which is a very good site to add to your daily read.

Read more on Seadragon at the Micrsoft Live Labs site.

Cold weather tips for keeping your home safe

With temperatures dropping into ranges we aren’t accustomed to around here it’s time to review what should be done when it gets below freezing:

If you can, turn the main water supply to the house off and drain the  system from the lowest point and flush the toilets. Leave the cabinet doors open on any sink that is on an exterior wall. Remove any attached hose pipes from exterior bibs, etc.  Also, to put insulation around an exterior faucet you can improvise using a towel wrapped around and secured with a plastic bag and either tape or a heavy duty rubber band.

Also, here for our wood burning fireplace property owner readers, posted with permission from the Puget Sound Clean Air Agency, are tips and issues to know about burn bans:

New law prompts significant change to residential burn bans Where there’s chimney smoke, there’s fire — and fines

November 24, 2008 — A new burn ban season is upon us and this one will be different from those in past falls and winters.

  • The Puget Sound Clean Air Agency will be calling both Stage 1 and Stage 2 burn bans, often in sequence.
  • Stage 2 burn bans are more restrictive than the more familiar Stage 1 burn bans and ban ALL wood burning, even from certified wood stoves and pellet stoves.
  • Our Puget Sound region will likely have longer burn bans, and perhaps more of them.
  • And more fines may be issued for people violating the bans.

What is prompting this change?

First, in late 2006, the US Environmental Protection Agency (EPA) tightened the 24-hour health standard for fine particle pollution, also known as PM2.5. And earlier this year, our Washington State Legislature lowered the air-quality trigger for calling a burn ban to align with this new EPA standard.

The reason for these actions is to better protect public health because the soot and smoke that makes up these fine particles are associated with serious health effects. The tiny size of these pollutants allows them to be easily inhaled, bypassing the immune system and proceeding deep into the lungs, where they can cause respiratory and cardiovascular problems, including premature death.

So what’s this mean if you heat your home with wood or pellet fuel?

During a burn ban, we’re basically asking people to rely on their home’s other, cleaner source of heat (such as their furnace or electric baseboard heaters) for a few days until air quality improves, the risk to public health is diminished and a ban is cancelled.

If agency inspectors observe a burn ban violation, they will issue a Notice of Violation to the property owner and recommend a $1,000 penalty.

The rules for a Stage 1 burn ban are the same as in the past:

  • No burning is allowed in wood-burning fireplaces, uncertified wood stoves or fireplace inserts, unless this is your only adequate source of heat.
  • No visible smoke is allowed from any wood stove or fireplace, certified or not, beyond a 20-minute start-up period.
  • All outdoor burning is prohibited, even in areas where outdoor burning is not permanently banned.

When a burn ban goes to Stage 2:

  • NO burning is allowed in ANY wood-burning fireplaces, wood stoves or fireplace inserts (certified or uncertified) or pellet stoves, unless this is your only adequate source of heat. Natural gas and propane stoves or inserts ARE allowed.
  • All outdoor burning is prohibited, even in areas where outdoor burning is not permanently banned.
  • If our agency inspectors see any smoke being emitted from a chimney during a Stage 2 burn ban, they can assume a fireplace, wood or pellet stove is in use and a penalty is warranted.

Maybe you’re wondering what “adequate source of heat means.

Loan Modification Salesmen in WA State Must Be Licensed LOs, Mortgage Brokers, or Work at Consumer Loan Companies

From the Washington State Department of Financial Institutions:

DFI Advises Homeowners To Verify The Licenses Of Anyone Offering Loan Modification Services Before Hiring Them

OLYMPIA – The Washington State Department of Financial Institution’s Consumer Services Division advises homeowners who are delinquent on their mortgage to be cautious about using the services of someone offering to help them work with their lender to modify the terms of their home loan.

The Department of Financial Institutions (DFI) has received a number of inquiries regarding the legality of providing this service in this state. While there is nothing inherently illegal about this business, those providing this service in the State of Washington must be licensed as loan originators, mortgage brokers, or consumer loan companies and be overseen by the Department of Financial Institutions. Additionally, under applicable law, the loan modification provider associated with mortgage brokers have a fiduciary relationship with the borrower and must act in their best interest.

“DFI is concerned that homeowners in desperate situations may pay substantial fees for loan modification services and not take advantage of the HUD-approved counseling services offered for free by numerous non-profits,

30 Year Fixed Under 5%

Conforming mortgage rates for the 30 year fixed are at a 4 year low.  I’m providing live rate quotes on Twitter which you can see without leaving Rain City Guide–just click on the Mortgage Info tab to view.   This will bring on a “refi boom” which means that if you are interested in a mortgage, you should be prepared for the process to take longer and provide your mortgage professional as much information as possible.  There are fewer loan originators in today’s market (which, overall, is a good thing). 

Last words of “wisdom” or advice for those considering taking advantage of these rates is to work with a loan originator who has the ability to renegotiate your rate after locking should rates improve.  You must ask your LO this upfront (before engaging into a transaction) since not all lenders can do this.

I’ll do a follow up post when I have more time…I’m a little busy right now quoting rates and locking loans.  😉

November Home Sales – Is Seattle Bubble Overly Optimistic?

When I did my stats for King County for the month of November, my numbers were actually worse than those reported on Seattle Bubble.  I have come to rely on Seattle Bubble as being the place where I can find the worst possible news about the housing market.  But I have double, triple and quadruple checked my numbers, and I still come up with only 768 sales of single family homes in the month of November.

This from The Tim at Seattle Bubble: “What immediately jumped out to me was Closed Sales, which were down a whopping 43% YOY, coming in at just 869 SFH sales county-wide.”

My figures show a drop YOY of just over 46% from 1,427 sold in November of 2007 to 768 sold in November of 2008 for Residential Property in King County.  While that is only a modest difference, when I look at condo sales YOY, the numbers are even worse and down 58% from 555 sales in November of 2007 to 230 sales in November of 2008.

A more significant factor is the % down from peak volume for any month of November.  For Single Family Homes, that would be November of 2004.  For condos that would be November of 2005.  Based on my previous research, that variance is due to the fact that by November of 2005, many people were priced out of the single family home market, which pushed the peak sales into 2005 for condos.

For single family homes, November of 2008 sales are almost 70% lower than peak volume for the month of November.

For condos, November sales are slightly more than 70% lower than peak volume for any month of November.

The Tim correctly points out that “For comparison, that is lower than any month on record (post-2000).”  However, I think it is more currently relevant to point out the relationship of November 2008 sales volume to a most recent lowest volume, that being January of 2008,  I have shown this figure as a dot on the graph below, green for condos and purple for SFH. 

Conclusion: Both single family and condo sales in Novmeber of 2008 are approximately 70% under peak volume, and 20% under the previous, recent low point of January of 2008.

Seattle Area Home Sales Volume

Seattle Area Home Sales Volume

I think we can all agree on one thing…for the first time in a long time I think we can all be confident that 2009 WILL be better than November of 2008, as to volume of property sold, since it’s hard to imagine that it could get any worse, even for the most pessimistic among us.  Well, maybe not Sniglet 🙂
If November sales volume is not AT BOTTOM…we may have to start looking at an “exit strategy”.
(required disclosure) All stats in this post (and graphs) compiled by ARDELL and not compiled, verified or posted by the NWMLS.

Q&A with the Banker Panel at the National Auctioneers Association

Here are my notes from yesterday’s Mortgage Industry Panel from the National Auctioneers Association’s Convention in Denver.  When known, the name of the panelist answering the question is noted.

Panelists
A. Wesley Schuneman
Founder, Ultimate Funding Group Mortgage Brokerage

Kevin Feakes
Mortgage Banker, First National Bank; Residential Mortgage Lending

Ken West
VP Commercial Lending Mountain Plains Farm Credit Services

Q: Are lending standards currently too tight or not tight enough compared to 1985?
A: (Kevin) Contrary to what you’re hearing in the media, it’s still relatively easy to get a mortgage loan right now.
A: (Wes) Underwriting guidelines will continue to get tighter. We have a few more years of tightening.  The industry will overcorrect before the pendulum will swing back the other way.
A: (Ken) Agriculture loans are underwritten in a much different way than residential. Loans are still widely available for agricultural buyers.   

Q: What is your firm doing to prepare for another significant drop in home values?
A: (Ken) Requiring more downpayment.  The lenders I work with learned from the S&L bailout.
A: (Wes) We’re close to the bottom here in Denver. We have a decent market. I’m not expecting further, drastic price declines.
A: (Kevin) We’re preparing for more LTV changes from lenders.

Q for Wes: What does the future look like for the mortgage broker?
A: from Wes: Higher standards and raising the barrier to entry will be good for the industry. The mortgage brokerage industry needs a cleansing.  I anticipate further erosion in the number of licensed mortgage loan originators.
A: from Kevin: I’m more hopeful than Wes. Competition is good for the industry. Fewer players isn’t necessarily a good thing for the consumer. You may see some former brokers shifting to a bank during these times, and then back to being a broker in the future.

Q: On short sales, Kevin, why are banks taking so long approving short sales and is there any hope for getting answers faster from loan servicing?
A: Loan servicing does not have an efficient system in place to process the overwhelming number of requests for a short sale.  It’s going to take time to work out all the short sales and foreclosures. 
A: It would be better if all the foreclosures right now were HUD REOs because HUD has a good system of disposing of their REOs.

Q: Why haven’t banks embraced auctions as a way to dispose of their REO inventory?
A: The systems in place right now are for the banks/asset management companies to reach for a Realtor first, and to try and sell REOs using systems that are already in place (MLS) to reach potential buyers.

Follow up Q: Why aren’t banks wanting to move their REOs? Why list the home for month after month? Why are banks holding on to their REOS?
Panelists did not know. Jillayne’s answer:  It is possible that the banks are trying like mad to spread out their losses over many months/quarters. It is also possible that if a bank quickly disposed of their REO inventory and had to claim the losses, that a bank’s insolvency would become more transparent to regulators.  It is also possible that there is such a huge backlog of inventory, that it’s a time/resource backlog issue. 

Q: Should FICO scores be completely tossed out, returning us to a world where real humans touch each file?
A: (Wes) The idea of using any kind of scoring system at all isn’t inherently “bad.

Vive Tanta

A blogger larger than life has died after a two year battle with ovarian cancer. We will miss you, Tanta. 

Tanta, who blogged at Calculated Risk, taught me quite a bit about the other side of mortgage lending; securitization, the secondary market, auditing, and mortgage humor.  I asked Tanta once if I could distribute something she wrote to my students.  She gave me carte blanche to distribute anything she had written, for educational purposes. Tanta was widely read and quoted by people such as Dr. Paul Krugman and the Federal Reserve. From CR:

Even researchers at the Federal Reserve referenced Tanta’s work: From Adam Ashcraft and Til Schuermann: Understanding the Securitization of Subprime Mortgage Credit, credit on page 13:

Several point raised in this section were first raised in a 20 February 2007 post on the blog http://calculatedrisk.blogspot.com/ entitled “Mortgage Servicing for Ubernerds.