Tag Archives: banks

Should builders and banks receive an excise tax exemption as WA State faces a budget deficit?

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House Bill 1495 has been introduced into the legislature and is now in committee.  In these times filled with hope, I am hoping this bill dies or at least comes out looking substantially different.  Let’s take a look.

AN ACT Relating to real estate excise tax exemptions to stabilize neighborhoods…

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
The legislature finds that there is a substantial inventory of unsold or foreclosed vacant homes on the market that is driving property values down and destabilizing neighborhoods. These homes also present an opportunity to provide affordable homes to low-income families, addressing some of the unmet need for affordable housing in the state of Washington. The legislature also finds that providing targeted incentives to housing developers will stimulate the sale of these vacant homes to low-income buyers now and stabilize neighborhoods affected by this growing inventory. The legislature intends to provide such incentives through excise tax relief on sales of homes to low-income first-time homebuyers.

I’ve been asking Realtors in all my classes to begin watching the percentage of financially distressed sellers with homes for sale in their market area.  Agents can do an MLS keyword search using terms such as “short sale,

Will the U.S. Now Begin to Take Ownership Positions in Banks?

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From the NY Times: U.S. May Take Ownership Stake in Banks

Having tried without success to unlock frozen credit markets, the Treasury Department is considering taking ownership stakes in many United States banks to try to restore confidence in the financial system …

Treasury officials say the just-passed $700 billion bailout bill gives them the authority to inject cash directly into banks that request it. Such a move would quickly strengthen banks’ balance sheets and, officials hope, persuade them to resume lending. In return, the law gives the Treasury the right to take ownership positions in banks, including healthy ones.

Hat tip CR who says, “The proposal resembles one announced on Wednesday in Britain.”

Sounds like the Treasury is trying to work as fast as they can.

Licensed to Loan

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This New Year brought significant changes to the mortgage industry. Loan Originators who provide residential loans in Washington State are now required to be licensed. This legislature applies primarily to Mortgage Brokers and not LOs who are employed by banks or credit unions. As I am employed by a Mortgage Broker (technically, we are a Correspondent Lender…I’ll save that for a later article), I thought I would share some tidbits of what I’ve found so far during the first two weeks into the licensing period.

I completed my online application with DFI, submitted my MU4 forms and 2 sets of fingerprints all prior to the due dates so that my background check to determine that I am not a felon and do not have any gross-misdemeanors can be performed. DFI is inundated with applications and they are posting the list of licensed loan originators on line. I’ve been checking the list daily for my name and license number. As of Tuesday, DFI is showing 9,913 licensees from 123 Cash to Zippy Cash. Loan Originators must display their license number on their business cards, loan applications, marketing and websites. This seems kind of odd to me. Realtors and Escrow Officer’s (L.P.O.) do not have to attach their number to their name for the public to see…don’t they trust us?

Currently, Loan Originators who have completed the required steps of the online application, MU4 and fingerprints are operating under an “interim license

Interest Rates are Down

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[photopress:rates.jpg,thumb,alignright]I’ve been working on listings more than buyers for a bit until recently. I had two offers to write yesterday, and was surprised to see the 30 year conforming at 6.125 and the jumbo at 6.375.

My perception was that interest rates were climbing, but looks like they are back down. Would love to hear from some lender types on this board with regard to what’s happening with rates. Last I heard the prediction was they are going up, up and up again. So I was surprised to see them so low. Anyone have any news about what’s happening with rates generally?