Aid to homeowners may double under Bush-backed loan initiative

The mortgage-industry effort to stem foreclosures aims to double the number of borrowers getting help next year, as Democrats call for using taxpayer money to address the crisis. The Hope Now Alliance, a group created at the behest of Treasury Secretary Henry Paulson last year, expects to modify about 2 million mortgages next year, according to a report to be released today in Washington. The group, which includes JPMorgan Chase & Co., Citigroup Inc. and Bank of America Corp., also plans a new campaign to boost participation in the program.

Hope Now projects 950,000 loan modifications for 2008, including 208,000 for the month of November. Including repayment plans and other assistance, the group estimates that about 2.2 million foreclosures will have been prevented this year, bringing to 3 million the total averted since the program began in 2007.

Source: Bloomberg.com

REAL Trends Comment: While modification of troubled mortgages may be good social policy it is evident that loans being modified are becoming delinquent at much higher rates than predicted. (See article below). While it may be that policy makers and large mortgage lenders who are participating in the Hope Now Alliance are merely trying to engineer a 'soft"

Brokers see declining inventory, more pending sales

In comparison to six months ago, over half of member brokers responding to a recent Leading Real Estate Companies of the World® 'Housing Beat' survey are reporting one bit of good news with declining housing inventory in their markets. And while only 9 percent are seeing an increase in closings, 26 percent are experiencing more pending sales (homes under contract but not yet closed), although many of those contracts are for foreclosure properties.

Meanwhile, nearly a third of brokers are seeing more open house and Web site activity, and 54 percent are seeing much more flexibility from banks in responding to short-sale inquiries. With more affordable prices, it's no surprise that nearly 90 percent of brokers are experiencing more activity with first-time buyers, with only 22 percent reporting the same for move-up buyers and 14 percent for high-end buyers. In many markets, there are rising sales to investors who are taking advantage of opportunities by buying at bargain-basement prices.

Some 72 percent of LeadingRE respondents believe that the original allocation of government funds to provide credit relief to banks was necessary, although most qualified their responses with a strong tone of frustration by noting that the disposition of the funds has bee"

30-year fixed rate falls to 37-year low

The 30-year fixed-rate mortgage averaged 5.19 percent with an average 0.7 point for the week ending December 18, 2008-a 37-year low- according to Freddie Mac's Primary Mortgage Market Survey. It was down from last week when it averaged 5.47 percent. Last year at this time, the 30-year FRM averaged 6.14 percent. The 30-year FRM has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971.

The 15-year FRM this week averaged 4.92 percent with an average 0.7 point, down from last week when it averaged 5.20 percent. A year ago at this time, the 15-year FRM averaged 5.79 percent. The 15-year FRM has not been lower since April 1, 2004, when it averaged 4.84 percent.

REAL Trends Comment: As we first noted in September, lower rates combined with higher affordability would significantly stimulate sales. And despite direct Federal intervention in lowering mortgage rates these two factors are having a positive affect on housing.

While housing markets overall will remain sluggish through next year, recovery depends on low mortgage rates, strong affordability and job/income growth. Unfortunately for optimists, the general economic slowdown will mute any increase in sales in the short term."

Surprise! Some areas have had price increases

U.S. Home values declined an average of 8.4 percent in the first three periods of 2008, down $2 trillion in total value, according to a recent Zillow.com Real Estate Market Report. Thirty of the 163 metropolitan statistical areas covered by Zillow, either showed gains in the median value of homes in the area or values stabilized.

Here are the 10 areas where values increased:
* Ithaca, N.Y., 5.6%
* State College, Pa., 4%
* Jacksonville, N.C., 3.9%
* Winston-Salem, N.C., 3.4%
* Bay City, Mi., 3.2%
* Rochester, N.Y. 3.1%
* Greenville, S. C., 2.8%
* Anderson, S.C. 2.7%
* Burlington, N.C., 2.6%
* Spartanburg, S.C., 2.0%"

Green Homes! Villas at Winecoff

Villas at Winecoff

The Villas at Wincoff is located just over 1 mile east of I-85 off Hwy 73 in Cabarrus County, North Carolina just minutes north of the Charlotte Metropolitan Area. The Villas at Winecoff is an ideal location for the active adult surrounded by Concord, Kannapolis and Charlotte shopping, dining, entertainment venues, the Charlotte Douglas International airport, and award winning medical facilities.

The Villas at Winecoff is a picturesque blend of exquisite European-style villas and rustic farmhouses like those that have been a retreat for aristocrats for generations. European style is simple yet elegant. Relax in a private courtyard or entertain friends in your state-of-the-art custom kitchen. Rich, earth tones and textures, natural stone, wood and stucco blends with lush landscape… all found in the Villas at Winecoff.

The first community of homes in North Carolina to strive for LEED (green) certification, the Villas at Winecoff features all custom built homes designed for those who enjoy the luxury of a majestic estate but on a smaller scale.

The Villas at Winecoff is the third development of successful developers – Minter Properties. Minter Properties is a family of developers, architects, builders, suppliers and craftsmen who share one vision, not of building houses, but building communities.

2 years later: Water fight continues on

CONCORD — Nearly two years after the cities of Concord and Kannapolis received a state license to draw water from neighboring water basins, the fight over the matter goes on.
Two lawsuits were filed over the matter.
Neither was against the Cabarrus cities.
In January 2007, the state awarded Concord and Kannapolis a certificate to draw up to 10 million gallons a day from both the Catawba and Yadkin river basins.
The Catawba portion of the certificate found great opposition from jurisdictions and groups along the Catawba River — including South Carolina.
South Carolina sued North Carolina for what it claims are insufficient Catawba water levels reaching the state boarder. While the City of Charlotte joined North Carolina in that litigation, Concord and Kannapolis did not.
And a group called the Protect the Catawba Coalition — made of several Catawba river basin jurisdictions — appealed the decision of the N.C. Environmental Management Commission to grant the certificate to Concord and Kannapolis. And Concord has joined the litigation, which is in the 'discovery phase,' said Concord city attorney Al Benshoff.
'It's quite lengthy reviewing a six-year process with lots and lots of documents,' Benshoff said.
The discovery phase, in which both parties produce relevant documents for the case, has gone o"

Final decision on land-use plan for East Cabarrus falls to commissioners

CONCORD — The final component of a massive land-use plan for Concord's eastern growth area will fall to a decision from the Cabarrus County Board of Commissioners in January.

The down-zoning decision for 24,500 acres was tabled by the Cabarrus Planning and Zoning Commissioner in September and failed to garner the super majority vote in November, putting the zoning decision in the hands of commissioners.

N.C. looks at taxing drivers by the mile | CharlotteObserver.com

Idea for road-use tax is expected to hinge on odometer readings, then GPS tracking, to replace revenue lost to fuel efficiency.

With gas-tax revenues plummeting, the state of North Carolina is looking seriously at taxing motorists for how far they drive.

Buyers Want Steep Discount on Foreclosed Properties

A new study conducted for Trulia.com and RealtyTrac by Harris Interactive shows that three-quarters of respondents expected a discount of at least 25 percent on a foreclosure purchase. In the previous survey conducted seven months ago, 54 percent of all U.S. adults surveyed said they would consider buying a foreclosed home, whereas now 47 percent of U.S. adults would consider buying a foreclosure."

Pennsylvania, Carolinas have year's healthiest regions

Good news for at least 30 of the 163 metropolitan statistical areas (MSAs) covered in the Zillow Real Estate Market Reports as the areas showed gains in median value of all homes in the area. The best performing metropolitan area was Jacksonville, N.C., where home values rose 4.9% year-over-year to $139,261 in the first three quarters of the year. Winston-Salem, N.C., also registered a gain, of 4.1% to $136,854. Anderson, S.C., prices climbed 3.5% to $101,816 and State College, Pa., went up by 3.4% to $206,995.

In addition, some markets-particularly those hit hardest in the downturn-showed smaller year-over-year declines than in the prior quarter. 'Our optimism here, though, must be tempered by the knowledge that the larger economic problems that emerged in the fourth quarter will likely further challenge the real estate market,' says Dr. Stan Humphries, Zillow's vice president of data and analytics.

Overall, news wasn't so good. According to Zillow market reports, U.S. homes are set to lose well over $2 trillion in value during 2008. Home values declined 8.4 percent year-over-year during the first three quarters of this year, compared to the same period in 2007. 'This year marked the acceleration of the market correction, and is likely to end with the eight"

NAR Pushes for Mortgage Interest Buy-Down

"NAR Pushes for Mortgage Interest Buy-Down
A federal mortgage interest buy-down program would help spark the housing market, the NATIONAL ASSOCIATION OF REALTORS® said in a letter sent today to James B. Lockhart, chairman of the Oversight Board of the Federal Housing Finance Agency.

NAR seeks a 4.5 percent mortgage interest rate buy-down program financed through the U.S. Treasury Department’s Troubled Asset Relief Program."

Business Picks Up Where Prices Have Tumbled

Sales are picking up in markets where prices are deflated, but the business is different than it was before the bubble burst, observers say.

The housing market in deflated markets--like Arizona, California, Florida, and Nebraska--are beginning to show signs of a rebound. Analysts say that prices have fallen to the point that those with average salaries can afford to buy once again.

'The buyers are returning,' says Lawrence Yun, National Association of Realtors chief economist. 'And in such a strong way that, now, we are hearing in some cases there is multiple bidding, which hints that maybe pricing is reaching a bottom point. But inventory remains high.

Fed rate falls to historic depth

"By cutting its benchmark lending rate to historic lows and promising to combat the recession head on, the Federal Reserve served notice Tuesday that more unconventional actions probably are ahead."

Federal Reserve slashes key interest rate to record low

"The Federal Reserve has cut its target for a key interest rate to the lowest level on record and pledged to use 'all available tools' to combat a severe financial crisis and prolonged recession."

Home sales price, closings plunge in region

"Home sale prices and the number of closings continued to tumble in the Charlotte region, data released this morning show.

The average listing price of homes that sold last month fell by nearly 13 percent over the same time last year. Those prices were $213,548 in November and $245,237 in November 2007."

Countrywide to refund 4,800 N.C. homeowners

"Mortgage lender Countrywide Financial Corp. will refund $11.5 million to 4,800 N.C. homeowners under a settlement with the state banking commissioner, the commissioner's office announced today."

Treasury's new plan - 4.5% mortgage rates

Homeowners may soon enjoy mortgage rates as low as 4.5 percent if the Treasury Department has its way. According to The Wall Street Journal's on-line addition, the department is discussing a plan that would use Freddie Mac and Fannie Mae to push banks to make mortgages available at more than a full percentage point below the current levels for a 30 year fixed rate mortgage.

The plan under review might lower rates to the 4.5 percent range and would be in addition to a program announced last week wherein the Federal Reserve will purchase up to $600 billion of debt either issued or backed by Freddie Mac, Fannie Mae, Ginnie Mae, and the Federal Home Loan Banks. That program is already having an effect on mortgage rates, which have dropped and caused investors to pay more attention to the stocks of banks and homebuilders.

Probably in response to the earlier new program and the lower rates, mortgage applications jumped a record 112.1 percent as seasonally adjusted over the previous week, according to the Mortgage Bankers Association. The Journal reported that the government would encourage banks to issue new mortgage loans at lower rates by offering to purchase securities backed by the loans at a price equivalent to the 4.5 percent

HUGE RATE CHANGE!

I have previously written about the impact of the Mortgage Backed Securities Market (MBS) on rates. This morning, Henry Paulson announced that the Fed will be providing upwards of $800M to free up credit markets; a portion of this money will be used for the purchase of mortgage backed securities. This purchasing will drive bond prices up and rates down. In fact, today's rate for a 30- year fixed is 5.5% with 0 points and FHA 5.99% with 0 points.

Throughout my career these past few months rank among the highest in mortgage rate volatility. However, these rate changes are a big catalyst to getting more people in homes and helping you generate more personal income.

Fannie Mae's Holiday Present: Suspended Foreclosure Sales

Fannie Mae announced that they are suspending foreclosure sales on occupied single-family properties as well as the completion of evictions from occupied single-family properties scheduled to occur from November 26, 2008 until January 9, 2009.

The temporary suspension of foreclosures is designed to allow affected borrowers facing foreclosure to retain their homes while Fannie Mae works with mortgage servicers to implement the streamlined modification program scheduled to launch December 15.

Exit 49 in Cabarrus expected to grow in international status

Concord tourism officials are talking about Exit 49 blossoming into a major tourist destination, complete with a variety of tourist attractions and hotels for every budget.

New UNC chancellor reconfirms NCRC commitment

KANNAPOLIS - Drumming up support - financial and otherwise - the new chancellor of UNC-Chapel Hill reconfirmed his institution's commitment to the North Carolina Research Campus.

Cabarrus officials mull sales tax hike

Concord - As the state prepares to hand over more road infrastructure responsibilities to its counties and municipalities, the Cabarrus County Board of Commissioners will seek legislation to raise the county's sales tax as a means to pay for road construction.

Realtors® Tell Congress Increased Housing Demand Will Stabilize the Market

In a statement to the House Financial Services Committee today, the National Association of Realtors® recommended a four-point plan to stimulate home sales and stabilize housing valuations."

Economic Slowdown Stalls Remodeling Activity

The residential remodeling market continued its slump during the third quarter of 2008, according to the National Association of Home Builders' (NAHB) Remodeling Market Index (RMI). The current market conditions indicator declined to 33.5, from 41.8 in the last quarter. Future expectations of remodeling work also slid to 27.7 (from 38.0 in the second quarter). Both these indices rest at historic lows since the start of the RMI in 2001.

'Remodelers reported another drop in major home improvements and expectations for future work have also declined,' said NAHB Remodelers Chairman Lonny Rutherford, CGR, CAPS, CGP, a remodeler from Farmington, N.M. 'A slight increase in minor remodeling projects for owner-occupied home suggests customers are cutting back on home improvement spending.' Nationally, current activity for major additions and alterations shrank to 29.38 (from 43.18 in the second quarter) during the third quarter, while minor additions and alterations slowed to 38.51 (from 42.89). Maintenance and repair dropped to 30.92 (from 39.06). The remodeling market is tightening due to more home builders taking on remodeling work, creating a more competitive marketplace and flattening out calls for bids and appointments for proposals."

Rise in First-Time Homebuyers with Long Term Plans

"The latest consumer survey of homebuyers and sellers shows first-time buyers have risen in market share and plan to own their homes longer than buyers in the past. The 2008 National Association of Realtors® Profile of Home Buyers and Sellers is the latest in a series of large national NAR surveys evaluating demographics, marketing, preferences and experiences of homebuyers and sellers.

Lawrence Yun, NAR chief economist, said a higher share of first-time buyers makes perfect sense, and it's a trend he expects to grow. 'First-time buyers are much more flexible in entering the market because they aren't concerned about selling an existing home,' he said. 'Given low home prices, plentiful supply and affordable interest rates, it's been an optimal time for entry-level buyers with a long-term view.

'Considering the temporary first-time buyer tax credit and improvements to the FHA loan program, we expect stronger entry-level activity as the flow of credit improves-that, in turn, should free more existing owners to make a trade in 2009.'

The number of first-time buyers rose to 41 percent from 39 percent of transactions in last year's survey and 36 percent in 2006. 'Although modest, this is a meaningful gain for the 12-month period ending at the close of June, and more recent independent da"

Mortgage Rates Move Downwards

After several weeks of off-the-charts volatility, mortgage rates moved modestly lower last week, according to Bankrate.com. The benchmark 30-year fixed-rate mortgage fell 5 basis points, to 6.39 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week's survey had an average total of 0.39 discount and origination points. One year ago, the mortgage index was 6.32 percent; four weeks ago, it was 6.74 percent.

The benchmark 15-year fixed-rate mortgage slid 13 basis points, to 6.08 percent. The benchmark 5/1 adjustable-rate mortgage declined 4 basis points, to 6.42 percent."

NAR Presents the 2008 Home Buyers/Sellers Survey for Charlotte Market

NAR Presents the 2008 Home Buyers/Sellers Survey for Charlotte Market

NAR Manager of Research Marketing T.J. Doyle will present this study from the NAR research team on the characteristics of local home buyers and sellers. This study is customized with data for the Charlotte market and will include a comparison of local information with national trends in homebuying and selling.

Rent-to-own is an option for those who need one.

Like so many people, Kris Weber, 37, never imagined she'd be in this prickly place at this time in her life."

Military Job Fair Dec. 4 at Speedway

A job fair for veterans, service members and their spouses will be Dec.4 in The Speedway Club at Lowe's Motor Speedway in Concord.

Event organizers with RecruitMilitary said they are expecting more than 300 people and at least 20 to 25 companies at the job fair. Admission is free, and the fair is from 11 a.m. to 3 p.m.

There will be national, regional and local employers at the event.

RecruitMilitary is a private, for-profit, veteran-owned company based in Cincinnati."

These Cities Are In Line for a Rebound!

Have we reached bottom? In many cities, knowledgeable observers say yes.

In October 2005 at the peak of the boom, the median sales price for a U.S. home reached 7.3 times per capita income. By this May it was 5.7 times, just about the historical norm. Home inventories have flattened. The decline in sales has ended – and in some places sales have expedited.

'The indicators are starting to look better,' says Adam York, an economic analyst with Wachovia.

Here are seven markets that SmartMoney magazine says are in line for a rebound:

* Seattle
* Raleigh
* Des Moines
* Philadelphia
* Denver
* Birmingham, Ala.
* Salt Lake City"

Cabarrus County Leaf Collecting Schedule

The 2008-2009 leaf collection program is currently underway. The following information is designed to assist our customers and employees to ensure this process is successful and not problematic.
See full article at: www.ci.concord.nc.us

Borrowers wanted: Banks have cash but few clients

"Billions of federal bailout dollars are flooding the financial system, credit markets are loosening and many banks say they are ready to lend. But a crucial piece needed to solve the credit crisis is still missing: borrowers."

Philip Morris gives a date on possible layoffs

"Philip Morris USA has told 180 employees at its Cabarrus plant that they may be laid off by the end of January.

The layoffs would be the first in the company's plan to eliminate 2,500 jobs from the Cabarrus plant, which it intends to close by the end of 2010. The company has already had more than 530 workers transfer to its Richmond plant, and another 500 workers have left or plan to leave the company."

State might ask cities to maintain more roads

Shifting burden of upkeep on 5,000 miles poses questions.
http://www.rebic.com/library/North%20Carolina/2008/110308%20CO%20State%20might.pdf>

Stop Worrying About Stock Market Losses

If you're worried about how much money you lost from your retirement account over the past few months, it’s time to refocus your thoughts.

The stock market will regain strength and your investments will grow over time, certified financial planner Chris Bird told a packed audience Thursday at the 2008 REALTORS® Conference & Expo in Orlando. Getting caught up in short-term fluctuations will only cause distress.

Selling Green? Practice What You Preach

“If you’re not doing green at some point, it will effect your profits,” energetic instructor Terry Watson told REALTORS® attending NAR’s first-ever GREEN designation course in Orlando Thursday."

Obama Will Support Housing, Says NAR

"President-elect Barack Obama is likely to make a housing market recovery a central part of his economic revival plan.

That was the assessment of NAR leaders, speaking to a packed audience Thursday at the Peabody Hotel during the opening forum of the REALTORS® Conference."

Stalled Uptown Condo Project gets a Buyer!

There's a buyer for The Park condos, the stalled uptown tower, with the beginnings of a deal emerging Tuesday from a topsy-turvy three-hour court hearing.

Fed slashes key interest rate a half-point

The Federal Reserve today slashed a key interest rate by half a percentage point as it seeks to revive an economy hit by a long list of maladies stemming from the most severe financial crisis in decades.

Fed slashes key interest rate a half-point

The Federal Reserve today slashed a key interest rate by half a percentage point as it seeks to revive an economy hit by the most severe financial crisis in decades.

Credit markets improve gradually

"The government's efforts to crank open the credit markets have led to some mild improvements in lending rates and Treasury bill yields. But it will probably take months, and perhaps a few years, before lending returns to healthier levels."

Wells Fargo wins Wachovia

"In a dramatic showdown over the future of Wachovia, Wells Fargo prevailed Thursday evening, saying it will move forward with its purchase of the Charlotte bank after Citigroup stepped aside."

Final touches on the Metropolitan (w/ a Trader Joes!)

Metropolitan, conceived more than eight years ago, is on its way to becoming a Next Big Thing
for uptown dwellers and residents of neighborhoods that ring Interstate 277. It's got a Trader oe's Too!

HomeArama at The Palisades!

Three lavish, multi-million-dollar homes are the focus of this year's
HomeArama.

N.C. 3 Study: Cabarrus provided planning options

A regional study of how best to expand N.C. 3 and foster development along the
highway has garnered different opinions from Cabarrus County and Kannapolis.

http://www.rebic.com/library/Cabarrus/2008/100708%20IT%20NC%203.pdf

What an interest rate cut is supposed to do

"Will U.S. consumers benefit from the interest rate cuts announced Wednesday by the Federal Reserve and several other countries' central banks?"

Two encouraging bits of real estate news brightened my morning today.

First, pending home sales, based on contracts signed in August, jumped unexpectedly to the highest level since June 2007. According to Lawrence Yun, chief economist for the National Association of Realtors, this improvement was a result of improved affordability and lower interest rates.

In addition, the Mortgage Bankers Association reported that mortgage applications increased 2.2 percent last week due to lower home loan rates.

More pending home sales and loan applications mean more closed business. Paired with the expectation of freer credit moving forward and the $7,500 buyer tax credit, this is all promising news for the real estate industry."

Attendees at N.C. Association of Realtors convention in Charlotte are mostly upbeat about prospects, sales.

"Mary Davenport, a real estate agent in Kitty Hawk, said Monday a falling stock market has brought a wave of second-home clients to her business."

Senate approves financial rescue plan

The U.S. Senate passed the $700 billion financial industry bailout last night by a wide margin, 74-25. Keeping the core of the original plan intact-buying up troubled mortgage assets-the Senate version adds in several new provisions, including a number of tax breaks and credits, temporarily raising the insured deposit limit to $250,000, and allowing the Federal Deposit Insurance Corporation (FDIC) to borrow from the Treasury Department to cover any losses.

Commenting on Congress' revival of EESA, the Securities Industry and Financial Markets Association's (SIFMA) president and CEO, Tim Ryan, said, 'This legislation wisely provides the Treasury Department maximum flexibility to restore the health of our credit markets which will ensure all Americans continue to have access to loans for homes, cars and education. It also guarantees the necessary government oversight and accountability, while building in a series of important protections for taxpayers.'

Officials believe that Republican opposition has now softened and are hoping to push the legislation to a House vote by soon."

2.3 million foreclosures prevented in past 14 months

2.3 million foreclosures prevented in past 14 months

HOPE NOW, the private sector alliance of mortgage servicers, counselors, and investors that has been working aggressively to prevent foreclosures, today announced that nearly 2.3 million homeowners have avoided foreclosure and have been able to stay in their homes due to the continuing efforts of HOPE NOW and the broader mortgage industry.

In August 2008, mortgage servicers helped homeowners avoid foreclosure by completing more than 189,000 mortgage workouts. Workouts include both modifications to the terms of existing mortgages and repayment plans. Barring a life event such as a job loss, death, or illness, all workouts are intended to enable a homeowner to remain in that home as long as he or she wishes to do so.

The HOPE NOW report estimates that on an industry-wide basis:

● Mortgage servicers have helped 2.26 million homeowners avoid foreclosure since July 2007.
● Mortgage servicers provided loan workouts for approximately 189,000 borrowers in August 2008.
● In August, approximately 110,000 homeowners received repayment plans; approximately 79,000 received loan modifications."

Down payment assistance ban takes effect

A ban on seller-financed downpayment assistance went into affect Oct. 1. according to Nehemiah Corporation of America, a report issued by the Congressional Budget Office (CBO) this week confirms that The FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008 (H.R. 6694) would not cost the federal government any money for the next five years. This is due largely to the self-funding mechanism that sets premiums based on an individual's credit scores.

According to Nehemiah Corp. of America, a DPA provision within the bailout to reinstate DPA could help ensure continued liquidity in the stagnating housing market by providing aid to an estimated 600,000 working-class people for home purchases next year, generating $150 billion in home sales."

New Hope for Fmailies Facing Foreclosure!

Struggling families facing foreclosure will find one more avenue to take-mortgage assistance through a program called HOPE for Homeowners program, which will refinance mortgages for borrowers who are having difficulty making their payments, but can afford a new loan insured by HUD's Federal Housing Administration (FHA).

The HOPE for Homeowners program begins today and ends September 30, 2011. The program is available only to owner occupants and will offer 30-year fixed rate mortgages, so the borrower's last payment will be the same as the first payment. In many cases, to avoid what would be an even costlier foreclosure, banks will have to write down the existing mortgage to 90 percent of the new appraised value of the home."

Charlott's Official "Extreme Makeover: Home Edition" Viewing Party

Join the CRRA Housing Opportunity Foundation (HOF) Oct. 19, 6:30-9:30 p.m., at The Mint Museum of Craft+Design for cocktails, music, hors d’oeuvres and the national television broadcast of Charlotte’s “Extreme Makeover: Home Edition.” All proceeds benefit HOF. Buy tickets at www.CarolinaRealtors.com.

NCREC Compensation Rule Requires Disclosure of Fees and Compensation Effective Oct. 1

NCREC says that brokers must disclose to their buyers and sellers all compensation the broker expects to receive from the transaction, including bonuses. NCAR created Form 770 to assist Realtors® with making the disclosure. There were changes to the Exclusive Right to Sell Listing and Exclusive Right to Represent Buyer agreements, too. For more information, click here to view NCAR’s webinar that aired Sept. 16. The new forms are now available at www.ncrealtor.org/ in the forms library, and will be available in the Realtor® Store next week. The forms will be available on Realfast and other form software packages by Oct. 1.

House defeats $700B financial markets bailout

The House on Monday defeated a $700 billion emergency rescue for the nation's financial system, ignoring urgent warnings from President Bush and congressional leaders of both parties that the economy could nosedive into recession without it."

McColl: Wachovia sale is 'body blow' to Charlotte

"Charlotte-based Wachovia Corp., saddled with bad loans and a loss of investor confidence that escalated on Friday, said today it is selling its retail bank, wealth management unit and corporate and investment bank to Citigroup Inc."

Beazer settles federal probe

"Beazer Homes, once a major Charlotte-area homebuilder, said Wednesday it settled one of several federal investigations admitting no wrongdoing and paying no fine."

BofA names new head of mortgage sales

"Bank of America Corp., the nation's second-largest bank, named Craig Buffie as its top mortgage-sales executive, displacing former Countrywide Financial Corp. executive Drew Gissinger."

No Exceptions for Short Sales

"Increasingly, sellers seeking short sales are encountering a new twist. Lenders are agreeing to let some short sales go through, but they want the home owners to sign a note promising to pay some or all of the balance due - debts that could burden borrowers for the rest of their lives. Moody's Economy.com estimates that about 10 million homeowners have negative equity, a condition known colloquially as being upside down or underwater. By next June, the forecasting company expects the total to rise to 12.7 million-a quarter of all homeowners who have mortgages.

'The first wave of foreclosures involved a lot of investors who just disappeared,' says Lance Churchill of Frontline Seminars, which teaches real estate practitioners how to negotiate with lenders on short sales. 'Now, homeowners with jobs and assets are underwater and want to sell. The banks want as much as they can get, today or in the future, and the owners want to get away clean.'

If the lender does a short sale without extracting anything from the seller, everyone in the country who is upside down could try to wiggle out from under and banks will take a fresh wave of hits. But if the lender pushes too hard, the borrower will default, leaving the bank in worse shape.

Source: The New York Times, David Streitfeld (09/18/08)"

REAL Trends Comment on: $700 Billion Bailout!

REAL Trends Comment: The proposed bailout was brought on by several factors. High levels of liquidity in world capital pools and extremely low interest rates for too long a period of time created an environment where debt became too attractive a means for investment; both regulated and unregulated mortgage conduits lowered or removed any restraints as to historical underwriting standards; the "mark-to-market" provisions of recent financial re-regulation forced firms to write down and write off bad investments and the affordability crisis hit housing sales hard enough to drop units and prices hard.

Whether a bailout of the proportions estimated by the Treasury will actually diminish the declines in prices and units is unknown at the time of this writing. We do believe that the last thing that Federal regulators should do at this time is reduce liquidity or raise interest rates.

$700 Billion Bailout!

The Bush administration's proposed $700 billion financial rescue began to take shape today with lawmakers debating whether to add provisions to protect taxpayers, according to CNNMoney.com. Banks and other companies called for expanding its scope beyond mortgages. CNNMoney reports that Democrats want independent oversight, homeowner protections and limits on executive pay.

Jerry Howard, executive vice president and CEO of the National Association of Home Builders (NAHB), says "The National Association of Home Builders applauds the Bush Administration, Federal Reserve and Congress for moving quickly to stem the ongoing financial crisis. Policymakers realize the root causes-falling home prices, mounting foreclosures and a frozen credit market-must be addressed now.

John A. Courson, Chief Operating Officer of the Mortgage Bankers Association (MBA) agrees. "The broader steps outlined by Treasury are aimed at ending the further meltdown in the financial markets and are designed to minimize the resulting impact of the market turmoil on the broader economy. It's another step in the long-term process of restoring a balance between the supply and demand for housing in a number of markets and thus addressing the continuing problem of mortgage delinquencies and foreclosures.

However, The Center for Responsible Lending's President Mike Calhoun says that the bailout won't stop foreclosures that push down property values. "The government plan announced by Treasury Secretary Paulson and Fed Chairman Bernanke fails to deal with the root cause of the crisis- families in foreclosure-and instead is purely and simply a bailout of the lenders who created this disaster. The bailout will not solve our economic problems because it will do virtually nothing to stop the foreclosure epidemic.

VA Loans still don't need down payment

"The U.S. Department of Veterans Affairs, whose loans remain one of the few no-down-payment options in this tight market, have made more than 162,000 home loan guaranties this year, an increase of more than 31 percent over the same period last year.

The VA has tried to streamline the loan process by allowing veterans to apply for a loan before they obtain a VA Certificate of Eligibility. Once the borrowers have demonstrated that they are otherwise eligible, lenders can access the program's Web portal to use VA's online Automated Certificate of Eligibility (ACE) system and obtain the certificate for the veteran. Many times, lenders can receive the certificate within seconds. The VA can process the application in less than 24 hours.

VA-guaranteed home loans are made to eligible veterans, service members, and surviving spouses through private mortgage lenders throughout the United States."

BofA claims success in halting foreclosures

A Bank of America official testified Wednesday that the company helped save 52,000 homes from foreclosure in the two months following its purchase of Countrywide, the troubled mortgage lender.

UNCC economist: Charlotte economy ‘robust'

"The economy's worst may be behind us, but don't expect things to improve anytime soon."

Agent killer found guilty

Being a REALTOR can be a serious safety situation. Our office teaches us many aspects of safety and the story below will make you believe how important it is.

(EL CAJON, Calif.) - A man who shot and killed his listing agent in a dispute over the sale of a condominium has been found guilty of second-degree murder.
A jury said Michael Ray Jennison killed agent James Magot on Feb. 1, 2007.
Testimony indicated that Jennison became angry with the agent because the agent wanted to purchase Jennison's condo for himself, rather than sell it to another person who had put in a bid. The two men fought at the condo, then Jennison went to another room, retrieved a gun, and fired twice into Magot's head. Evidence in the trial indicated Jennison was distraught over the death of his mother who had owned the condo."

REALTOR Safety is REAL!

(WASHINGTON) - NAR has declared this week (Sept. 14-20) as Realtor Safety Week and is urging members to take advantage of courses that teach them how to remain safe in their daily meetings with strangers.

The association is offering a safety training course online at: http://www.Realtor.org/RealtorUniversity
It also is offering these basic tips:
-- Follow clients while touring potential homes instead of leading.
-- Always take your own car for showings.
-- Meet potential new clients for the first time in your office.
-- Carry pepper spray.
-- Check in with your office often."

NAR - Home Sales to Sold is Steady

The level of home sales is expected to show little movement in the months ahead, according to the latest projections by the National Association of Realtors®.

The Pending Home Sales Index (PHSI), a forward-looking indicator based on contracts signed in July, fell 3.2 percent to 86.5.

"Overly stringent lending criteria imposed by Fannie Mae and Freddie Mac in the past month no doubt held back contract signings," says Lawrence Yun, NAR chief economist. Looking at middle-ground assumptions, existing-home sales are projected to total 5.01 million this year before rising 6.9 percent in 2009 to 5.35 million. After declining an average of 4 to 7 percent this year, home prices are forecast to rise by 2 to 4 percent next year.

Here's how the PHSI fared across the United States:
* Midwest: rose 2.8 percent to 81.6 in July but remains 2.4 percent below a year ago.
* South: unchanged, holding at 93.7, but is 13.4 percent below July 2007.
* Northeast: fell 7.5 percent to 73.6 in July and is 13.2 percent below a year ago.
* West: dropped 10.6 percent to 90.3 but is 6.5 percent higher than July 2007.

While the South is holding steady, a bright spot in Florida is Osceola County (near Orlando) where nearly 9 percent more home sales took place in that county during August 2008 than during August 2007.

REAL Trends Comment: Initial results from REAL Trends Housing Report show that housing closings for August 2008 were ahead of August 2007 in over 10 states including California, Nevada, Arizona and Florida. More soon from the REAL Trends Housing Report.

Mortgage rates ease on news indicting consumer spending may be slow

Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 6.35 percent with an average 0.7 point for the week ending September 04, 2008, down from last week when it averaged 6.40 percent. Last year at this time, the 30-year FRM averaged 6.46 percent.

'Mortgage rates eased a bit over the holiday-shortened week following release of economic data that suggest consumer spending may slow,' says Frank Nothaft, Freddie Mac vice president and chief economist. 'The economy grew at an upwardly revised 3.3 percent pace in the second quarter, boosted by the smallest trade deficit in eight years, and residential fixed investment slowed growth by 0.6 percent, the least amount since the same period a year ago. 'However, personal income fell 0.7 percent in July, the first decline since August 2005 and will likely slow consumer spending in the third quarter.'"

Home sales plummet 34.5% | www.charlotteobserver.com

"The number of Charlotte-area houses, townhouses and condos sold last month through the Carolina Multiple Listing Services dropped 34.5 percent compared with August 2007, the steepest plunge yet in more than a year of declines."

Buy or rent college nest?

"Rising college costs are causing some parents to consider an alternate housing plan for their students: They're bypassing the dorm and off-campus apartments in favor of purchasing a condominium or single-family home. In some cases, it might not be a bad idea."

Markets embrace Fannie, Freddie takeover

"Bank stocks jumped this morning as investors embraced the federal government's takeover of Fannie Mae and Freddie Mac as a step toward stabilizing the floundering mortgage market."

NAR's Newest Designation Is Green

REALTOR® Magazine-Daily News-NAR's Newest Designation Is Green
In response to growing consumer demand for green homes and eco-friendly building practices, the NATIONAL ASSOCIATION OF REALTORS® has introduced a new Green designation for real estate practitioners.

Positive Sign in Real Estate Outlook

REAL Trends : "Signs of an improving housing market are beginning to appear, and should become apparent in 2009 in the majority of housing markets, says Housing Predictor."

End in Sight for Seller-Funded Down Payments

REALTOR® Magazine-Daily News-End in Sight for Seller-Funded Down Payments:
"Prospective homeowners have until Oct. 1, 2008, to use down payment assistance from a seller to purchase a house."

Charlotte is one of the Top 5 American Cities Where Home Prices Are Likely To Rise!

Where U.S. home prices are likely to rise - Buy a House: MLS Listings & Home Buying Tips - MSN Real Estate:
1.Albuquerque, N.M.
2.Charlotte, N.C.
3.San Antonio
4.Portland, Ore.
5.Austin, Texas"

Observer cutting 9 percent of workforce | www.charlotteobserver.com

Observer cutting 9 percent of workforce www.charlotteobserver.com

So I know this isn't "Real Estate specific" exactly but I wanted to point this out as a reference to how newspapers and all forms of print media are dying a slow death. Real Estate agents spend a ton of cash on print advertising, mostly at their clients request. And we do so to make them happy. But the truth is that it doesn't work. Not anymore at least. So take this as a sign and get yourself situated online. It's gonna be a frustrating road if you don't.

REALTOR Shoes!

Got to love the new Reebok Reverse Jam - Monopoly Edition Shoes! Wear these with a suit and the office will love ya! The conventions will be envious!

Another condo project stalls

Another condo project stalls | www.charlotteobserver.com:
"Add a Fourth Ward project to the number of stalled condo tower projects in uptown Charlotte."

Davidson master plan lures developer | www.charlotteobserver.com

Davidson master plan lures developer | www.charlotteobserver.com

More commercial and residential development is ahead for Davidson's 125-acre mixed-use hub at Interstate 77 Exit 30.

Davidson Commons East, the latest project to be announced, is planned off Griffith Street near the Children's Community School and a Harris Teeter supermarket.

Trulia launches iPhone house finder

You can take it with you! With just a few clicks on an iPhone, users can find nearby homes for sale, announced Trulia.com, a real estate search engine. The free application uses navigation technology to find properties that match the user's location; then provides detailed property searches, color photos and open house information.

In addition, Trulia's phone application delivers homes for sale and open house information directly to a smartphone, whether it's BlackBerry, Blackjack, Sony Ericsson or Nokia.
According to an article on businessweek.com, Trulia is not alone. FrontDoor.com says it will introduce an iPhone application later this year that not only searches nearby listings, but also integrates video and information about what it's like to live in a given neighborhood. And, says Business Week, StreetEasy.com's iPhone application provides location-based for-sale listing information for New York City.

REAL Trends Comment: For some time true mobility for sales professionals has been a dream. With these announcements it appears that we get closer. Now if we can just get a complete data base of ALL that is truly available then we have something.

County readies to send notifications to residents for central

By Eric C. Deines
edeines@independenttribune.com
Thursday, August 28, 2008
CABARRUS - Landowners in the unincorporated part of the county included in a recent, major landuse plan can expect rezoning notifications from Cabarrus County. And judging from phone calls to
the county office Wednesday, officials said letters began arriving this week.
Jonathan Marshall, the county’s commerce director, said he expects even more public comment
and queries to come from the notifications than were given during the land-use planning process,
which received significant community participation.
“We’re going to get a good volume of comments from people with questions,” Marshall predicted.
“We’re going to get folks who may not have heard about the land-use plan.”
He said about 1,900 mailings have been prepared for landowners in the unincorporated area in the
south and west of Concord city limits. Landowners with more than one parcel of land are sent only
one letter.
Approximately 2,895 parcels are being rezoned across approximately 24,548 acres.
The Cabarrus Planning and Zoning Commission will host a public hearing on Sept. 18 for the
rezoning before consideration of the plan.
Marshall said most of the down-zonings included in the plan generally see land zoned for lowdensity
residential changed to agricultural/open space zoning. The latter zoning prohibits extension
of water and sewer utilities and allows for less residential density.
“We’re not rezoning in any areas where the city will be extending water and sewer,” Marshall said.
During two months of community input sessions in May and June, many residents in the 39,200-
acre focus area said they wanted most of the area to be preserved as open space, with little to no
new development - leading to the proposed down-zoning.
Officials have said the land-use plan will help control the rapid growth and strain on the county’s
public services.
Because the land-use plan includes parts of Concord’s future growth area, the Concord Planning
and Zoning Commission will consider the plan and its concepts in September, said Concord City
Manager Brian Hiatt.
Concord City Council and Cabarrus County Board of Commissioners entered into a zoning and
utilities agreement in June directly related to the land-use plan.
“Really, the agreement that’s already entered into is the main agreement,” Hiatt said. “It didn’t
specifically talk about density, but it pretty much dictates what we can do.”
The June agreement set a boundary for Concord utilities across which the city may not extend
utilities - or allow developers to tap onto utilities - unless approved by commissioners.
And if an area is annexed, the city must retain the zoning as indicated in the proposed plan.
If the land-use plan is approved by Concord’s planning board, City Council will give it a final
consideration, Hiatt said.
• Contact Eric C. Deines: 704-789-9141

Area home prices are showing signs of life | www.charlotteobserver.com

Area home prices are showing signs of life | www.charlotteobserver.com
Charlotte-area home prices show signs of strengthening even as a popular measure of home appreciation on Tuesday registered a third consecutive decline.

Consumer outlook up, housing bottom may be near | www.charlotteobserver.com

Consumer outlook up, housing bottom may be near | www.charlotteobserver.com:

Americans felt better about the economy in August, as a barometer of sentiment posted the biggest boost in two years amid falling gas prices. Two reports suggested that a bottom could be nearing for the housing market, but economists caution it's too early to proclaim that the worst is over.

The Conference Board, a private research group, said Tuesday that its consumer confidence index rose to 56.9, up from a revised 51.9 in July. That's the largest gain since August 2006, and is ahead of the 53 expected by economists surveyed by Thomson/IFR.

It's also the second month in a row that sentiment improved, after a six-month slide since January - but it remains about half what it was a year ago, and worries about the job market persisted.

'It's still too early to call a bottom' on both confidence and housing, said Gary Thayer, senior economist at Wachovia Securities.

The Standard & Poor's/Case-Shiller U.S. National Home Price Index released Tuesday showed home prices dropped a record 15.4 percent during the second quarter. However, the rate of single-family home price declines slowed from May to June, a possible silver lining.

Sales of new homes rose in July, but still fell short of economists' expectations, and home prices continued to sink. Still, the July increase foll"

Fannie Mae, Freddie Mac shares climb | www.charlotteobserver.com

Fannie Mae, Freddie Mac shares climb | www.charlotteobserver.com

July Existing-Home Sales Show Gain

Existing-home sales rose in July to the highest level in five months, although sales have hovered in a relatively narrow range over the past 11 months, according to the National Association of Realtors®. Existing-home sales-including single-family, townhomes, condominiums and co-ops- increased 3.1 percent to a seasonally adjusted annual rate of 5.00 million units in July from a downwardly revised level of 4.85 million in June, but are 13.2 percent lower than the 5.76 million-unit pace in July 2007. NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said the up-and-down pattern may break soon. "We hope the new tools in the hands of homebuyers from the recently enacted housing stimulus package will spark a sustained sales uptrend in the months ahead," he said. "Buyers who've been on the sidelines should take a closer look at what's available to them now in terms of financing and incentives. Given some of the inventory on the market, we also strongly encourage buyers to get a professional home inspection." The national median existing-home price for all housing types was $212,400 in July, down 7.1 percent from a year ago when the median was $228,600. "Sales have picked up significantly in several Florida and California markets. Home prices generally follow sales trends after a few months of lag time," says Lawrence Yun, NAR chief economist. "Still, inventory remains high in many parts of the country and will require time to fully absorb." Source: National Association of Realtors® REAL Trends Comment: As we saw in the July REAL Trends Housing Market Report, sales have increased in five states and leveled off in three other major states. We think the market is improving in terms of unit sales. And the NAR median price figure is almost exactly in line with the average price indicator that the Housing Market Report indicated. All signs of slow but steady progress, at least on the unit sales level.

Five most typical flaws discovered in new homes

The home inspection company Pillar to Post is urging buyers of new homes to have them inspected before closing the transactions, saying that many buyers erroneously believe new homes are problem free.
According to the company, many new homes have poor workmanship that ultimately can cost a buyer thousands of dollars.
The company said the five most typical flaws discovered in new homes are:
-- Improperly connected air condition pipes that will cause central air conditioning units not to work.
-- Incorrect framing that could force plumbers to cut through the framing to install pipes.
-- Poor grading in the basement, causing leaking and poor ventilation.
-- Poor roof flashing that could lead to leaks.
-- Inattention to detail that could lead to look ductwork, mismatched joints, cabinet doors that don't close and non-level floors.

Tax credit Web site receiving 10,000 visitor per day

(WASHINGTON) - The National Association of Home Builders is boasting that more than 100,000 visitors have hit a new Web site that gives consumers information about how to receive the Bush administration's housing tax credit.
The NAHB says the site, www.federalhousingtaxcredit.com, has received 116,000 unique visitors - roughly 10,000 per day.
The site is dedicated to informing consumers how to take advantage of the temporary $7,500 tax credit for the purchase of a first home.
The Web site contains information on how the tax credit works, including eligibility requirements.

First Time Home Buyers Want More

Fixer uppers may hold a lot of promise, but first time homebuyers aren't biting. In fact, they want the whole kit and caboodle-a house like their parents' at a price they can afford. According to a recent Coldwell Banker® Survey, first-time homebuyers are primarily concerned with affordability when choosing a new home, but their expectations may be too high relative to their current financial buying power. While nearly half of the Coldwell Banker broker respondents reported that affordability was the No. 1 concern for this group, 81 percent said today's first-time homebuyers consider move-in conditions to be very important when searching for homes. In contrast, only 7 percent are looking to buy fixer-upper homes at a lower price [than good condition homes] and renovate themselves. "In the past, first-time homebuyers were willing to purchase older, more basic houses in an effort to save money and break into homeownership," says Jim Gillespie, president and chief executive officer, Coldwell Banker Real Estate LLC. "Today, this group has greater home expectations because they've grown up more accustomed to their parents' lifestyles. It's important to remember that by considering a 'fixer-upper' for their first home purchase, they can build equity over time and move up and into a second-stage home that better reflects their expectations."

Steve Murray, Publisher Tracey Velt, Editor REAL Trends, Inc.

Housing starts down, letting inventory drain off

(WASHINGTON) - The Commerce Department reports single-family housing starts dipped again in July, which is a good news for brokers and agents who hope to see overall inventories decline.
Starts fell by 3 percent from June and are currently on a pace to add only 641,000 new homes this year - the lowest rate since 1991.
National Association of Home Builders President Sandy Dunn congratulated builders on their restraint.
"The actions that home builders are taking right now to keep a lid on new production are slowly but surely helping to bring supply and demand back into balance and put us on the road to a much healthier housing market," she said.

Weichert Charlotte Office Growing to Statesville and Mooresville

Charlotte-based Weichert, Realtors-Rebhan & Associates has expanded into Statesville with the acquisition of Weichert franchise at 300 E. Broad St., Suite 103.

The office is the firm's third in the Charlotte area and will be followed this fall by the opening of an office in Mooresville, said Kathleen Rebhan, broker/owner.

The Statesville franchise, started in August 2005 by Harry Tsumas and partners, will include Tsumas' working “hand in hand with us,” she said.

He will focus from the Statesville office on new home construction, building and development under the Tsumas Development name. Phil Dishman remains as broker in charge, and the Statesville sales staff will stay on as well.

The Charlotte headquartered agency, which opened four year ago, was identified as one of the six top producing franchises in 36 states at of the end of 2007. It opened its second office, located in the Ballantyne area, in March 2007.

Fannie Mae, Freddie Mac shares rise

By MARCY GORDON and ALAN ZIBEL
AP Business Writers

Posted: Monday, Aug. 25, 2008

WASHINGTON Shares of Fannie Mae and Freddie Mac soared Monday in a respite from their battering in recent days, while some regional banks saw their stocks sink on worries they could be swept up in the turmoil surrounding the mortgage finance giants.

Freddie completed a $2 billion debt sale, and a Wall Street analyst said a government bailout of the mortgage finance giants may not be inevitable.

But a few regional banks with significant holdings in Fannie and Freddie preferred stocks followed the rest of the market down amid questions over whether federal regulators would step in to rescue the two government-sponsored companies.

Shares of Freddie jumped 48 cents, or 17.1 percent, to $3.29 Monday, while Fannie climbed 19 cents, or 3.8 percent, to $5.19.

Citigroup analyst Bradley Ball said in a research note that federal bailouts "don't necessarily wipe out all" company shareholders, and that Fannie and Freddie still have options despite their steep stock declines in recent weeks.

"We are not convinced that (the government) needs to take any action over the near term," Ball wrote.

But Len Blum, managing director and partner at investment bank Westwood Capital in New York, said Monday's rebound is likely to be temporary, as the companies' ability to raise capital on their own appears uncertain.

"The market thinks they're going to be nationalized," Blum said. "People have confidence in the debt, not the equity."

Freddie's sale of $2 billion in short-term debt was well received on Wall Street, but the company had to sweeten terms of the offer to lure demand, investors said. "We saw very good demand for today's deals," said Freddie Mac spokesman Michael Cosgrove.

In the coming weeks, Wall Street will be watching the results of several such auctions by the two companies. Sean Egan, manager of the ratings desk at Egan-Jones Rating Co., estimates the two companies have a combined $295 billion in debt coming due by year-end.

"It's becoming increasingly expensive for both Fannie and Freddie to fund their business," he said. "If that's not addressed fairly soon, the companies will continue to be under stress."

A government rescue of Fannie and Freddie - whose share prices have plunged in recent weeks as they struggle with billions of dollars in losses from bad mortgages - could be costly for scores of investment, banking and insurance companies that hold billions in their preferred shares.

The two companies had nearly $36 billion in preferred shares outstanding as of June 30, according to filings with the Securities and Exchange Commission.

Preferred shares usually pay a fixed dividend and have priority over common stock when it comes to dividends and bankruptcy liquidation. While slightly riskier than bonds, which have the highest priority in times of trouble, companies often invest in preferred shares for certain tax advantages.

JPMorgan Chase & Co. disclosed Monday that it held about $1.2 billion of Fannie and Freddie preferred shares. It estimated the shares have lost about $600 million since the start of the quarter on July 1, based on their current market values.

Shares of JPMorgan fell $1.54, or 4.1 percent, to $36.13 Monday, while the major Wall Street indexes lost about 2 percent. The Dow Jones industrial average fell 241.81 to 11,386.25, while the Standard & Poor's 500 index declined 25.36 to 1,266.84, and the Nasdaq composite index fell 49.12 to 2,365.59.

Regional banks with the largest exposure to Fannie and Freddie preferred stock as a proportion of their capital include Sovereign Bancorp Inc., Westamerica Bancorp, Gateway Financial Holdings Inc. and Midwest Banc Holdings Inc., according to a research note from Samuel Caldwell at Keefe, Bruyette & Woods. Of those four banks, only Westamerica shares rose on Monday.

Caldwell estimated that 38 regional banks together hold about $1.3 billion in preferred stock of Fannie and Freddie.

Banks in general are permitted to hold preferred shares as "core capital," which they use to guard against losses, said David Barr, a spokesman for the Federal Deposit Insurance Corp.

The FDIC does not make public data on such holdings, or their concentration among banks. Companies are required to recalculate the value of those holdings every quarter, and the FDIC's bank examiners are likely watching such holdings closely.

With a total of $4 billion worth of Fannie and Freddie's preferred stock, U.S. insurance companies also are among the largest holders, according to A.M. Best Co. Inc. But that still represents less than 1 percent of the insurance industry's cushion against losses.

Still, on Wall Street, Fannie and Freddie's existing preferred shares are trading like junk bonds, yielding around 17 percent to 19 percent instead of around their 6 percent dividend levels. The higher yield is an inducement to investors to accept the higher level of risk that the dividends won't be paid.

Harrisburg plans land-use agreement with Cabarrus

Harrisburg plans land-use agreement with Cabarrus
By Eric C. Deines
edeines@independenttribune.com
Thursday, August 14, 2008

HARRISBURG - Like the City of Concord before it, Harrisburg is at the cusp of a land-use
agreement with Cabarrus County that will determine where and how the city will grow.
“Our (land-use plan) is several years old, and we’ve been talking about it for a while to do it,” said
Josh Watkins, Harrisburg’s town planner.
Harrisburg and Cabarrus County would share in the cost of the study, which would include several
community input sessions.
In the current budget, Harrisburg has set aside $10,000 for a land-use plan update.
In its agreement with Concord, Cabarrus County down-zoned development densities for several
areas as a means of managing growth to keep up with public services, such as schools, and
preserve open space.
In the proposed agreement between Cabarrus and Concord that will serve as a template for the
county’s agreement with Harrisburg, it is stated that Concord will not extend utilities to
developers or allow developers to tap onto utilities without the consent of commissioners.
It also states that Concord must maintain the applied zoning of an area when it is annexed into the
city.
Officials have said the agreement is a first in the state for a county and a municipality.
“When you make rezoning decisions, you have to base them in part on what your zoning is,” said
Harrisburg Attorney Rich Koch, who also serves as attorney for Cabarrus County and is the author
of the land-use agreement between the county and Concord.
Officials said the proposed agreement between Harrisburg and Cabarrus would stand for 15 years.
Harrisburg Town Council lightly discussed how the land-use study would be paid for, with Cabarrus
and Harrisburg splitting the cost based on population and the area studied in the plan.
Mayor Tim Hagler said that because the area Harrisburg will study is much smaller than that
included in the Concord plan, the cost should be far less.
Hagler said Harrisburg is limited as to where it can grow, with Concord’s limits to the north and
east and the Mecklenburg county line to the west.
“The only way we have to grow is south into the county,” Hagler said.
Next week, the Cabarrus County Board of Commissioners plans to consider the land-use plan for
the Concord growth area, which will subsequently go before Concord City Council for approval.
• Contact Eric C. Deines: 704-789-9141

Positioning Properties to Sell

With absorption (the amount of time it takes a property to sell based on no new additions to inventory) rates of 11 months, this "Buyer's Market" can be a little overwhelming to sellers and agents. For our inventory relocation properties, we are now required to do a new Broker Price Opinion WEEKLY. Corporate owners of these properties want them SOLD. As a result, if there are no offers on a property they are making continuing price improvements (reductions) to make their properties stand out and hopefully attract attention from potential purchasers.

Real Estate is cyclical in nature and prices will rebound and recover. When? you ask. We are beginning to see more buyers shopping. that is a good sign. Most people looking for housing are still interested in location and value. If your property is priced more attractive than the competition and offers value, the chances are it will sell before the others.

This is true for all properties, not just those owned by Relocation companies. This is a different market than 12 months ago and a different market than 24 months ago. Housing purchases are for the long haul and significant consideration should be given for being a place to live in and not just an investment. Long term trends prove that real estate has been and will continue to be a great investment, but not necessarily so for the buyer who expects to "flip" the property in a year or less.

The "Gotta Have" price that sellers want, that's above market, will take a long, long time to be realized. Those days have gone the same road as $1 a gallon gasoline. And while people may not like it, they are going to have to get used to it. They are going to have to be happy enjoying the tax benefits of home ownership and if they achieve something higher than what they paid for their property they should c ount themselves fortunate.

Agents who agree to list properties above the market price will be akin to Professional golfers who can't putt or dogs that chase cars, they will be short-lived. Those agents that engage in this practice have been contributors to the housing crisis we have been in. If these properties were removed from the market, our market would be a more normalized market with an absorption rate of approximately 5 months which is doable.

For those sellers who sell for less than they could have sold for in previous markets, the reward is that they can move up at a discounted price as well. Ask your Buyer's Agent to go over procong for you dso that you can understand the process better.

Our company has been a leader in the real estate business for 30 years and we have built our reputation on service. Now, each of our agents are QSC (Quality Service Certified) trained and certified. this is something that our office does and is not normal in the market we are in. We put down in writing what you can expect from us and ask that you provide a candid report card on our service at the conclusion of the transaction. Every agent and company should aspire to such a goals and hopefully more will in the future.

So what's the Bottom Line of this musing? Price your property correctly and it will sell. How do you know what price that is? Engage one of our agents to prepare a Broker Price Opinion and let them explain the process. A lot of people think that all we do is put a sign in the yard and make a million dollars. Oh, if that were so! Reality is that if your house isn't priced correctly, it will be a long, long time before the house will have any interest at all. And, time is money. If you need to sell, price it right. Let our trained professionals walk you through the process. you'll be glad you did.

ABC’s EXTREME MAKEOVER: HOME EDITION is searching for heroic families!

Do you know someone whose home deserves an Extreme Makeover? If so, the
producers of ABC’s Extreme Makeover: Home Edition want to hear from you! Ty
Pennington and his crew have been all across the map and they are ready to drive
that famous bus into your neighborhood.

What does it take to be picked for an Extreme Makeover?
We are in search of real Heroes - people that have amazing strength and who have
put their own needs aside to help someone else. In addition to Heroics, the
producers are looking for families whose homes are in dire need of help. We don’t
want to tear down a nice looking house. We want to see houses that look like they
might fall down on their own!

To be eligible:
A family must own their own single family home and be able to
show producers how a makeover will make a huge difference in their lives.
Interested families should: e-mail a short description of their family story to –
castingnorthcarolina@gmail.com

Nominations must include:
1. The names and ages of each member of the household
2. A description of the major challenges within the home.
3. Explanation of why this family is deserving, Heroic, or a positive role model in
their community.
4. Photos of the family and a photo of the home
5. Don’t forget to include a contact phone number.

The deadline:
for nominations is March 17th, 2008. Don’t Delay!

PLEASE SEND STORY SUBMISSIONS AS SOON AS POSSIBLE!
For more information on how to apply please visit our website at:
http://abc.go.com/primetime/xtremehome/index?pn=apply

2008 REALTOR EXPO

This year we're back – and bigger and better than ever! Great guest speakers are lined up to offer a variety of educational sessions throughout the day. Attend any or all of the informative seminars, and peruse the trade-show floor where hundreds of vendors will be on hand to offer information about their products and services.

The trade show will open at 9 a.m. Members will be treated to a continental breakfast sponsored by Lennar and Precision Inspections. Stop by our "Wireless Cyber Café," sponsored by Bank of America Mortgage and GS Carolina, to check your e-mail, relax, refresh and even get a massage! Educational sessions begin at 10 a.m. and will continue throughout the day according to the schedule below.

Lunch, sponsored by CP Morgan and DR Horton, will be available on the trade-show floor, 11:45 a.m.-12:45 p.m. Next, head upstairs to the main ballroom to attend the keynote session with Alison Levine. Levine will speak at 1 p.m., and those who attend are in for an amazing treat! We are thrilled to welcome Levine to Charlotte to share her stories and leave us with great insight on how to ride out life's storms. You must register separately for this session (see below). For more information on Alison Levine, click here.

A closing reception, sponsored by The Palisades and The Coves, will begin at 3 p.m. Don't miss out. Register today for this free member event!

Bank of America to buy Country Wide

CHARLOTTE, N.C. --
Bank of America said Friday it will buy Countrywide Financial for $4.1 billion in stock, a deal that rescues the country's biggest mortgage lender and expands the financial services empire of the nation's largest consumer bank.

The acquisition will make Charlotte-based Bank of America Corp. the nation's biggest mortgage lender and loan servicer.

Bank of America said it initially plans to operate Countrywide separately under the Countrywide brand, with integration occurring no sooner than 2009.

The transaction represents a 7.5 percent discount to where Countrywide shares ended Thursday after they soared on news that a rescue plan was in the works. It also effectively leaves Bank of America with a big loss on its $2 billion August investment in Countrywide Financial Corp. during the height of the summer's global credit crisis.

An aggressive dealmaker who has already snapped up behemoths FleetBoston Financial and MBNA, Bank of America chief executive Ken Lewis this time isn't buying a financial winner. Delinquencies and loans in pending foreclosure are rising in Countrywide's loan portfolio, and Lewis said Friday "there are near-term challenges" in the nation's housing market.

But Countrywide's troubles have allowed Lewis to sweep in and add a major business line to his supermarket of financial products on the cheap.

"Countrywide presents a rare opportunity for Bank of America to add what we believe is the best domestic mortgage platform at an attractive price and to affirm our position as the nation's premier lender to consumers," Lewis said in a statement.

It also places Lewis in the position of a market savior. By buying Countrywide, he's keeping the industry and regulators from the messy task of figuring out who would take on the responsibility of collecting payments for the 9 million U.S. home loans serviced by the Calabasas, Calif.-based lender. Lewis said Friday there was no government support for Countrywide's loan portfolio.

"There's still plenty of risk involved," said Bart Narter, senior analyst at Celent, a Boston-based financial research and consulting firm. "He's brave to do it. But I think that it's very likely down the road to be profitable, maybe not immediately, but long-term."

There was no immediate work on job cuts, but analysts said they expect some among the ranks of Countrywide's 15,000 employees. Lewis said he would like Countrywide chairman and chief executive Angelo R. Mozilo to stay with the combined companies until the deal is done.

"Angelo has told me that he will do anything that we want him to do," Lewis said. "I would guess that he'll want to go have some fun. I will talk with him next week about his personal desires. Many of the senior people will have big operating roles in this company."

Shareholders of Countrywide will receive 0.1822 of a share of Bank of America stock in exchange for each share of Countrywide. The deal is expected to close in the third quarter and to be neutral to Bank of America earnings per share in 2008 and lift earnings per share in 2009, excluding buyout and restructuring costs.

Bank of America expects $670 million in after-tax cost savings in the transaction, or 11 percent of the expense base of the two companies' mortgage operations.

The agreement has been approved by both companies' boards and is subject to regulatory and Countrywide's shareholders approval.

Shares in Countrywide hit record lows in recent days on persistent rumors that a bankruptcy was imminent, a condition brought on by the widespread spike in mortgage defaults and foreclosures, especially in subprime loans - those made to borrowers with weak credit.

Countrywide shares plummeted more than 13 percent, or $1.04, to $6.71 at the open of trading Friday. Bank of America shares fell 19 cents to $39.11.

Countrywide shares have fallen 57 percent since Bank of America made its $2 billion deal in August at $18 per share. That purchase of preferred stock was convertible into a common shares of Countrywide at $18 per share, for roughly a 16 percent stake in the company.

Along with the $2 billion investment from Bank of America, Countrywide was forced to draw on an $11.5 billion line of credit to steady itself in August. It also tightened its credit guidelines and stopped selling some types of adjustable rate loans. But analysts said it wasn't enough, with one noting this week that Countrywide needed an infusion of $4 billion in capital within the next two weeks to save itself.

Lewis' bank holds $1.5 trillion in assets and is the nation's largest bank by market capitalization

"Their balance sheet can take a shock much better than Countrywide," said CreditSights senior analyst David Hendler. "When you take the shocks at Countrywide, they have a big, busting consequence that's negative."

While Lewis downplayed the prospect of a major deal last month, it fits with an established pattern of building Bank of America through acquisition. In the past few years, Lewis has expanded the bank's retail operation with multibillion purchases of FleetBoston Financial Corp., bolted on a credit card business by adding MBNA Corp., and grabbed a wealth-management business in U.S. Trust Co.

The result of all the dealmaking is a widely diversified financial services company that does business with nearly one out of every two American households.

In the past year, Bank of America has boosted its market share of prime mortgages, or those offered to borrowers with a solid credit history, and was the top retail mortgage originator in the U.S. during the first nine months of 2007.

"We are aware of the issues within the housing and mortgage industries," Lewis said. "The transaction reflects those challenges. Mortgages will continue to be an important relationship product, and we now will have an opportunity to better serve our customers and to enhance future profitability."

In Countrywide, Lewis gets the "best, total mortgage-banking company in the U.S. by far," Hendler said. Countrywide's sophisticated back office is a valuable asset that makes Bank of America a much bigger competitor with Wells Fargo & Co., Washington Mutual Inc. and others, he said. In 2007, Countrywide had $408 billion in mortgage originations and has a servicing portfolio of about $1.5 trillion with 9 million loans.

"The technology platform, the people who run it, the hedging, the facilities, the mortgage servicing rights, the origination platform, you know, they are all state of the art," Hendler said.

While there are some regulator hurdles to close the deal, they are hardly insurmountable. The buyout would require approval from the Federal Reserve, and possibly other agencies, but analysts believe regulators are more concerned about a Countrywide collapse than industry consolidation.

A Countrywide failure would be a huge blow to government-sponsored mortgage finance companies Fannie Mae and Freddie Mac, which are major buyers of Countrywide's loans.

Federal law also bars banks from acquisitions that would increase market share above 10 percent of U.S. deposits, a limit that Bank of America is nearing. Bank of America chief financial officer Joe Price said because Countrywide Bank us a federally regulated thrift, it "doesn't play into the deposit cap."

In addition, banking industry experts say Bank of America could easily lower the total amount of money held in deposits by decreasing interest rates and shedding deposits.

Mortgages rates drop to low last seen in 2005

The benchmark 30-year fixed-rate mortgage plunged 26 basis points, to 5.88 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week's survey had an average total of 0.35 discount and origination points. One year ago, the mortgage index was 6.24 percent; four weeks ago, it was 6.17 percent.

The benchmark 15-year fixed-rate mortgage fell 31 basis points, to 5.45 percent. The benchmark 5/1 adjustable-rate mortgage fell 33 basis points, to 5.81 percent. The benchmark 30-year, fixed-rate jumbo mortgage, for home loans greater than $417,000, fell 17 basis points, to 7.03 percent.

The 30-year fixed hasn't been this low since Sept. 21, 2005, when it was 5.88 percent. You have to go all the way back to June of 2000 to find the last time the rate on the 30-year fixed tumbled more in one week. In the second week of that month, the 30-year fixed fell from 8.56 percent to 8.28 percent in one week.

This week's drop in rates can be traced to the release Friday of the employment report for December. According to the Labor Department, the economy produced a net new 18,000 jobs in December. That was a lot worse than expected. Local, state and federal governments added 31,000 jobs, meaning that private employment actually shrank during the height of holiday shopping season.

The unemployment rate climbed to 5 percent from the previous month's 4.7 percent. At 5 percent, the unemployment rate was higher than the average rate in the last 10 years (4.9 percent). Over that 10-year period, the unemployment rate was below 4.7 percent half the time. Five percent isn't horrible, but it's not benign, either.

Rates lower, hoops to qualify higher
The prospect of a slowing economy sent mortgage rates lower. Normally, you would think that the lowest mortgage rates since September 2005 would goad people into mortgage offices to refinance their loans. Some of that is happening, but not in big numbers. The Mortgage Bankers Association says applications were up slightly last week, but it's difficult to make comparisons this time of year because of shortened holiday weeks.

Anecdotally, loan officers and brokers say business is down not only because of slow home sales, but because borrowers aren't paying attention to rates, or they don't think they'll qualify.

"Sixty percent of people who got mortgages last year can't get them this year," says Bob Moulton, president of Americana Mortgage Group of Melville, N.Y.

Moulton cites the example of a potential borrower who walked into his office early this week. She owed $700,000 on a house in Cape Coral, Fla., that had been appraised recently at $500,000. She couldn't afford to sell it, couldn't afford to refinance it, and couldn't afford the payments after a rate adjustment. Moulton says he recommended that she talk to a lawyer about negotiating a short sale, in which she would sell the house for less than the loan balance and the lender would forgive the shortfall.

Tread carefully
Loan officers and mortgage brokers say they're plagued by lenders that change the rules after a mortgage has been approved but before it has been funded. Some borrowers are getting all the way to the closing table before they find out that the loan approval has been withdrawn, or they have more paperwork to submit or more financial hoops to jump through.

"Even if they go through contract, they might not be able to get financing," Moulton says. Now he tells customers: "Make sure you have your house sold before you buy this house. Make sure it's priced right. You've got to be really conservative right now. You don't want to be caught with two houses" and two mortgage payments.

As the mortgage industry imploded last year, thousands of loan officers and brokers lost their jobs. They're not around to tell their customers that rates have dropped so low.

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