http://click.icptrack.com/icp/relay.php?r=1038407015&msgid=5389323&act=3JU7&c=44698&admin=0&destination=http%3A%2F%2Fwww.builditgreen.org%2F
Green Retrofitting and Remodeling for Existing Homes

Do you know 70% of existing homes in California were built before the Title 24 requirements?  Want to deepen your knowledge on energy efficiency upgrades and green remodeling for this market?

Learn step-by-step how to effectively upgrade and remodel.  Participants will be guided through the details of comprehensive green home analysis, then the solutions to energy and water conservation, improved indoor air quality, moisture management, water heating, energy performance testing, HVAC, lighting, insulation and weatherization, mechanical ventilation, siding, roofing, finishes, landscape and homeowner operations.

For a complete course description and to register:
Green Retrofitting and Remodeling for Existing Homes

Prerequisite:  Must have completed Certified Green Building Professional (CGBP) or equivalent training.  Course includes 16 continuing education units for CGBP recertification and GreenPoint Rater-New Home certifications.

The move will not affect many individuals who receive government assistance. Low-income people, the elderly and the disabled will receive their regular checks on schedule. Schools, state workers, Medi-Cal providers, pension funds and In-Home Supportive Services are all protected by law from receiving an IOU in lieu of a real check.

But thousands of vendors who provide goods and services to the state will be given IOUs instead of cash. From a company that sells french fries for prisoners to a firm that pumps out latrines in state parks, many businesses are trying to save cash and hoping their banks will accept the IOUs.

Meanwhile, the University of California has not yet decided whether it will front the money for educational Cal Grants, another program that will get IOUs.

State Controller John Chiang expects to disburse $3.36 billion in IOUs and $10.9 billion in regular payments this month.

After officials decide this morning how much interest they’ll pay on the IOUs and when they can be redeemed, the controller’s printing presses will churn out the first batch of IOUs for 28,742 state tax refunds totaling $53.3 million, said Garin Casaleggio, a spokesman for the controller.

The IOUs probably won’t be cashed by the state for 90 days - and then only if the treasury has the money to cover them.

Business impact

Bank of America said it will accept IOUs from existing customers until July 10, with no dollar limits. Wells Fargo and Bank of the West have not yet decided whether to accept them. About 19 California credit unions will accept the IOUs, including Chabot in Dublin, Contra Costa in Martinez, SRI in Menlo Park, Provident in Redwood City, San Francisco in San Francisco and Kaiperm Diablo in Walnut Creek.

Many companies said they will simply tighten their belt and wait to redeem their IOUs.

Ken Jackson, owner of Vallejo’s Ktek Products and Systems, sells office supplies, computer accessories and janitorial supplies to the state.

“The key is to have cash flow to weather the storm,” he said. “My cash flow is about 60 days out. If it goes beyond that, I’m in trouble.”

American Transit Supply in Hayward does about three quarters of its business with the state, providing air filters, oil filters and hydraulic filters for state vehicles such as CHP cars and fire service trucks.

“We figure we’ve got about $50,000 to $70,000 in accounts receivable with California,” said Brian Beery, vice president. His firm has stockpiled cash to make it through and will temporarily transfer its 10 employees to a sister firm.

Thompson’s PortaSeptic Services in Fort Bragg, a self-described “mom and pop shop,” expects to receive IOUs for pumping out septic tanks in Mendocino County state parks, said owner Melissa Berman.

“It would be a hardship,” she said. “We can handle it but we will have to scramble to cover all of our standard expenses. But a couple of months (of IOUs) would not put us in jeopardy.”

At French Fry Xpress in Milpitas, owner Art McCoy said he expects to get IOUs for his french fry deliveries to state prisons.

“It’s just two of us, my son and myself, so we don’t have any payroll,” he said. “We’ll just have to wait until the budget is settled.”

Other costs

Some of the IOUs’ impact will not trickle down to Californians because of backfilling from the federal government, counties and colleges.

For instance, cash assistance for aged, blind and disabled people will be paid in full by the federal Social Security Administration during July and August. As part of a February agreement, counties already plan to cover CalWorks temporary assistance in July and August.

The controller will issue IOUs to the California Student Aid Commission, which administers Cal Grants, the state-funded financial aid that helps about 143,000 students attend college. Grants top out at $7,788 for a state college and $9,708 for a private one.

“If I’m not able to get it, I might have to take a leave of absence from school to work and pay for tuition,” said UC Santa Cruz senior Tommy Le, who works two jobs on campus and helps support his family. “Our state is divesting from students. It’s heartbreaking.”

In the past when state budgets have been late, UC and CSU have advanced the grant money to students, interest-free.

UC spokesman Ricardo Vazquez said the university has not yet decided whether it will do so this year. CSU students “will definitely be covered,” said spokeswoman Claudia Keith.

NEW FEDERAL LAW AFFECTING DISTRESSED PROPERTIES

This week, President Barack Obama signed into law the Helping Families Save Their Homes Act of 2009 to help homeowners and lenders avoid foreclosure.  Previously included in this bill was a measure to allow bankruptcy judges to modify mortgage loans for principal residences, but the U.S. Senate did not pass this “cram-down” legislation.

The Helping Families Save Their Homes Act of 2009 contains various new laws to address the national foreclosure crisis.  Major provisions that may affect California REALTORS® and your clients include the following:

• HOPE FOR HOMEOWNERS (H4H) REVAMPED: The new law loosens the H4H program requirements to help homeowners refinance out of their troubled mortgages and into more affordable, fixed-rate FHA-insured loans.  Originally launched in October 2008, the H4H program intended to help 400,000 distressed homeowners, but in the program’s first seven months, it only helped one family stay in its home.  The maximum loan-to-value ratio for an FHA refinance is 96.5% of the appraised value.  If refinance proceeds are insufficient to pay off existing liens, the existing lienholders must voluntarily agree to a short payoff, but a new inducement is an opportunity for them to share in the homeowner’s equity.  Other changes to the H4H program include monetary incentives for both the participating servicers of the existing loans and originators of the FHA refinance.  Millionaire borrowers (with net worth over $1 million) are now excluded from the program.  HUD will establish the requirements and standards to implement the H4H program as revised.
• LONGER STAY FOR TENANTS OF FORECLOSED HOMES: Effective immediately, an REO lender or buyer who acquires title through a foreclosure sale must give at least a 90-day notice to terminate a bona fide tenant as defined.  A 90-day notice to terminate is sufficient for a month-to-month tenant or if a new owner will occupy the property as a primary residence at the end of the 90 days.  Otherwise, a tenant with a one year or other fixed-term lease with a remaining lease term exceeding 90 days can stay in the premises until the remaining lease term ends.  This new 90-day notice requirement applies to foreclosures of a federally-related mortgage loan or residential real property, except for properties under rent control, rent-subsidized programs (such as Section 8), or other state laws that provide additional protections for tenants.  This law expires on December 31, 2012.
• NOTIFICATION OF TRANSFER OF MORTGAGE LOANS: The Truth in Lending Act now requires a lender to whom a mortgage loan is sold or otherwise transferred to notify the borrower in writing of such transfer within 30 days.  The notice must include the new lender’s identity, address, telephone number, authorized representative’s contact information, and other relevant information.  This measure should help alleviate the problem borrowers often face in determining who owns their mortgage loans.

Other provisions of the Helping Families Save Their Homes Act include a 4-year extension of the $250,000 FDIC deposit insurance to December 31, 2013, protection for loan servicers who establish qualified loss mitigation plans from liability for an alleged breach of duty to maximize mortgage values for their investors, $130 million for foreclosure prevention counseling and education, and $2.2 billion to strengthen homeless programs.

President Obama has also signed into law the Fraud Enforcement and Recovery Act (FERA) which authorizes the Department of Justice to prosecute mortgage fraud crimes against private mortgage brokers and companies that previously were not regulated by the federal government.  FERA also earmarks almost $500 million for federal enforcement agencies to investigate and prosecute mortgage fraud and other fraud crimes.

Realegal® is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide.

Edited by: Stella Ling

In-Depth: 2009 First-Time Home Buyer Tax Credit

The homebuyer tax credit is one of 10 key provisions of the American Recovery and Reinvestment Act signed by President Obama into law on Feb. 17, 2009.

The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.  The credit does not require repayment.  Most of the mechanics of the credit will be the same as under the 2008 rules:  the credit will be claimed on a tax return to reduce the purchaser’s income tax liability.  If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

Breaking News: HUD: Home Buyer Tax Credit Loans Still on Track
REALTOR® Magazine
More news>

The Basics>
Who qualifies, which properties are eligible, how much will the credit be, etc.

First-Time Homebuyer Tax Credit Brochure> (PDF: 596K)

Chart Highlighting the Major Modifications to the First-Time Homebuyer Tax Credit> (PDF: 309K)

Current Price of FNMA 4.0% Bond: $98.72, -19bp
Today the Conforming 30 Year Fixed Rate is at 5.00% at 1% point cost, the High Balance Conforming Fixed Rate is at 5.25% at 1% point cost, the FHA Fixed Rate is at 5.375% at 1% point cost, the Non Owner Occupied Fixed Rate is at 5.375% at 2% points cost, the Jumbo 5/1 Interest Only ARM is at 5.375% at 1% point cost, and the Jumbo Fixed Rate is at 6.375% at 1% point cost.
Mortgage Bonds are trading lower and quite a bit lower from the opening highs. Since breaking support a few days ago, prices have gotten significantly worse. A look at the chart shows how the sell-off accelerated once all the Moving Averages were violated, and prices have worsened by 165bps in just the past few days.
Stocks enjoyed a good day yesterday on the heels of a better than expected Consumer Confidence Report, and in turn this was obviously not Bond friendly. So far today, Stocks are treading water, hampered by talk of General Motors headed for bankruptcy, as deals to restructure the company look to be falling through.
Existing Home Sales were reported at 4.68M, which was actually higher than expectations of 4.65M. Inventory of unsold home rose to a 10.2 month level from April’s reading of 9.6, but well below the 11 month reading seen in November. Of interest, is the huge supply of homes above $750,000, which now stands at a 40-month supply. It’s a shame that this area of the market has not received any attention by helping to improve the costs and availability of jumbo loans. The market didn’t react much to this news.
Some good news on the economic front, as The National Association for Business Economics (NABE) said that the end of the recession is in sight. A spokesman from NABE said, “While the overall tone remains soft, there are emerging signs that the economy is stabilizing.” It went on to say that a modest second-half rebound in real GDP is still expected. An improvement in the economy will likely push interest rates higher over time - yet another reason to get your clients lined up to take action during this opportunity of low interest rates.
The Summer driving season is upon us, and Crude Oil continues to push higher hitting nearly $63 a barrel in trading, a 6 month high buoyed by a rising stock market and economic optimism. This has pushed gas prices to $2.42 a gallon for regular and has increased 18.4% in the last 28 days.
At 1:00pm ET there will be a $35B auction of 5-year Notes and while yesterday’s 2-year auction results were good, it will be more interesting to see how the market absorbs the longer maturities set to be auctioned today and tomorrow. Longer-term maturities come with interest rate risk and if investors feel rates are moving higher they may not have an appetite to buy aggressively at these auctions.
As mentioned Mortgage Bonds have fallen through multiple floors of support and prices appear destined to visit the next clear floor which lies at $98.43 - so a continued locking bias appears prudent at this time.

Hello all,

I am providing the 2008 sales with the 2009 same period for some contemplation. I wrote the summary for a client and attached two pages of MLS reports on the numbers. If you have questions, just email or call. I am here, yes here working.
The attached reports I created today from the MLS system we use shows that last year 2008 same period there were 48 homes sold in the Sonoma Coast area. the total dollar amount was $38,950,330  the average sales price was $861,989 and the median price $799,000 that mean the mid point price (half were higher and half were lower)

2009 shows that 17 homes have sold.  That is a volume of 64% drop of sales.  The total market dollar of solds $12,829,650.   That means we are off 67.1% in dollar volume transfers. The average selling price YTD is $754,685  with the median price of $777,150.  That translates to a median price drop of only 2.8%.

Bottom line is the buyers are not coming in numbers but they are coming, shopping and shopping, and look for bargains. But in general our prices are not plummeting. The lower priced homes are selling to those who have waited for a good value. Some of the high end homes have not sold because buyers with $1 million + to spend don’t have too. Seller are not going to drop their price 35% just to sell unless they have too and then it is a foreclosure.  Yes there has been some of those too.

If you would like more or specific information on anything else just let me know.

Best to you,

Thera
CRB, CRS, CLHMS, RSPS &
EcoGreen Certified Broker

Sonoma Coast Living
707-875-2500 ext.14
efax 1-707-324-6096
www.sonomacoastliving.com

General Manager’s Corner

Hello Homeowners,

The 2009-2010 budget was passed at the Board meeting on April 18, 2009, while there was no increase based on operational needs, the board opted to impose a 20 percent raise in quarterly assessments to cover funds to bring the Clubhouse up to ADA compliance. The Board had promised earlier in the fiscal  year to make the ADA improvements and now it is time to gather the funds. After the ADA improvements have been made, the quarterly assessments will reduce, the dues are expected to stay at the 20 percent increase for 2-3 years, effective July 1st 2009.

President Rooney and myself had a meeting with the Sonoma County Supervisor, Efren Carrille, regarding a number of items, 1. being the abandoned boat at the Yacht Club. 2. Trying to reduce the speed on Hwy. 1 infront of the Harour. 3. getting the permits for the ADA compliant elevator at the Yacht Club moved along. All these issues are being addressed and we are confident that Mr. Carrillo can help in resolving them.

Wed, April 22 was Earth Day. Demper Sports announced it’s “Green to a Tee” incentive to make all Kemper Sports properties, nationwide, enviornmentally friendly courses. We are very exited about this, it is the first incentive in Kemper Sports history that this has been done Natinwide.

GM - Harchut

MMG Update + By The Numbers - Monday, March 23, 2009 10:22am ET

Current Trend Direction: Trying to Stabilize

Risks favor: Carefully Floating

Current Price of FNMA 4.5% Bond: $102.00, +6bp

Stocks are trading higher so far today on the heels of another big announcement affecting the banking world.  Beleaguered Treasury Secretary Timothy Geithner unveiled the Public Private Investment Program - a private investment fund designed to remove toxic assets from financial institutions.  Mr. Geithner said the plan is for the Fed and FDIC to buy these tainted assets by tapping the $700B bank bailout fund.  In order to mitigate risk, the government is trying to lure private investors, including big hedge funds, to participate in the program by offering billions of dollars in low-interest loans to finance the purchases.  The government will share the risks if the assets continue to move lower in price.

We think Mr. Geithner, who has been under heavy fire, missed an opportunity to help himself.  Again, he is being knocked for not providing details of the plan - more specifically, how exactly to price the assets being purchased by the government.  We feel this was a wonderful opportunity for the Treasury Secretary to have mentioned the single most important item presently affecting the financial world…mark-to-market accounting.  The upcoming FASB vote on April 2nd may result in allowing the use of a cash flow basis for valuation, which would help clarify how these toxic assets can be more accurately priced.  In turn, this would give private investors a greater degree of certainty and confidence in the program.

China has had a change of heart…last week China was saying they were concerned over the value of Treasuries, but today, top Chinese officials said that they will continue to purchase our debt.  This news gave a boost to the US Dollar so far this morning.

Some good news on housing - Existing Home Sales came in stronger than expected at a 4.72 million pace, versus prior estimates of 4.45 million.  Inventory of unsold homes rose just slightly from a 9.6 month supply to a 9.7 month supply.

Mortgage Bonds have lost some pricing since last week’s Fed announcement, but are attempting to stabilize this morning.  We will carefully Float here, but be ready to Lock should sentiment change.

Today the Conforming 30 Year Fixed Rate is at 4.5% at 1.5% points cost, the High Balance 30 Year Fixed is at 4.875% at 1.25% points cost, the FHA Fixed is at 5% at 1% point cost, the Non Owner Occupied Fixed is at 5.125% at 2% points cost, and the Jumbo 5/1 ARM Interest Only is at 5.375% at 1% point cost.

Release Date: March 18, 2009

For immediate release

Information received since the Federal Open Market Committee met in January indicates that the economy continues to contract.  Job losses, declining equity and housing wealth, and tight credit conditions have weighed on consumer sentiment and spending.  Weaker sales prospects and difficulties in obtaining credit have led businesses to cut back on inventories and fixed investment.  U.S. exports have slumped as a number of major trading partners have also fallen into recession.  Although the near-term economic outlook is weak, the Committee anticipates that policy actions to stabilize financial markets and institutions, together with fiscal and monetary stimulus, will contribute to a gradual resumption of sustainable economic growth.

In light of increasing economic slack here and abroad, the Committee expects that inflation will remain subdued.  Moreover, the Committee sees some risk that inflation could persist for a time below rates that best foster economic growth and price stability in the longer term.

In these circumstances, the Federal Reserve will employ all available tools to promote economic recovery and to preserve price stability.  The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and anticipates that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.  To provide greater support to mortgage lending and housing markets, the Committee decided today to increase the size of the Federal Reserve’s balance sheet further by purchasing up to an additional $750 billion of agency mortgage-backed securities, bringing its total purchases of these securities to up to $1.25 trillion this year, and to increase its purchases of agency debt this year by up to $100 billion to a total of up to $200 billion.  Moreover, to help improve conditions in private credit markets, the Committee decided to purchase up to $300 billion of longer-term Treasury securities over the next six months.  The Federal Reserve has launched the Term Asset-Backed Securities Loan Facility to facilitate the extension of credit to households and small businesses and anticipates that the range of eligible collateral for this facility is likely to be expanded to include other financial assets.  The Committee will continue to carefully monitor the size and composition of the Federal Reserve’s balance sheet in light of evolving financial and economic developments.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Donald L. Kohn; Jeffrey M. Lacker; Dennis P. Lockhart; Daniel K. Tarullo; Kevin M. Warsh; and Janet L. Yellen.

Protect long-standing national policy
The U.S. economy depends on a strong real estate market and a healthy banking industry. Therefore, REALTORS® are concerned about market disruptions, especially those that would affect both banking and real estate.

Real estate is a commercial enterprise
Banking is financial in nature. Real estate is commercial. Throughout the years Congress has defended its Depression-era policy that the two should not be mixed.

Most recently, in the Gramm-Leach-Bliley Act, Congress explicitly declared what functions were financial in nature and therefore permissible for banks. Real estate was not one of them. While debating this legislation, Congress repeatedly voted to uphold our national policy against mixing banking and commerce.

Banks are trying to change the definition of real estate
Despite Congressional policy, regulators are slowly blurring the line separating banking and commerce:

* Banks in Real Estate: On March 11, 2009, President Obama signed into law the FY2009 Omnibus Appropriations Act that permanently prohibits banks from entering the real estate brokerage and management businesses.
* Bank Rulings by the Office of the Comptroller of the Currency (OCC): The OCC expanded the authority of national banks to engage in real estate development and ownership, despite national policy against mixing banking and commerce.
* Ownership of Industrial Loan Companies (ILCs) by Commercial Firms: By exploiting a loophole, commercial firms like Home Depot seek to own federally insured banks. NAR urges Congress to close this loophole.

Why should REALTORS® care?
Banks should be impartial providers of credit, not powerful, concentrated conglomerates that grow bigger to the detriment of small businesses and consumers. The success of real estate agents is determined by how well he or she meets consumers’ needs.

If banks had been allowed to engage in real estate brokerage, it would have created anti-competitive and anti-consumer concentrations of power within the financial services sector, which would have ultimately increased costs for homebuyers.